Corona City Council
December 7, 2022

ANNUAL COMPREHENSIVE FINANCIAL REPORT

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City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
i
Page
INTRODUCTORY SECTION (Unaudited)
GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................ v Letter of Transmittal ............................................................................................................................................. vii Elected Officials and Executive Management ...................................................................................................... xv Organization Chart ............................................................................................................................................... xvi

FINANCIAL SECTION
Independent Auditors’ Report on the Audit of the Financial Statements ....................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................................ 26 Statement of Activities ............................................................................................................................. 28 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .................................................................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................... 37 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................ 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities and Changes in Net Position .................................. 41 Proprietary Fund Financial Statements:

Statement of Net Position .................................................................................................................. 44 Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 48 Statement of Cash Flows ................................................................................................................... 50 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .................................................................................................. 57 Statement of Changes in Fiduciary Net Position ............................................................................... 58 Notes to the Basic Financial Statements ..................................................................................................... 63 City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule:

General Fund .......................................................................................................................................... 123 Development Special Revenue Funds .................................................................................................... 124 Notes to the Budgetary Comparison Schedule ........................................................................................... 125 Modified Approach for Reporting Infrastructure ...................................................................................... 127 Schedule of Changes in Net Pension Liability and Related Ratios California Public Employees’ Retirement System Defined Pension Plan – Miscellaneous Plan .......... 129 California Public Employees’ Retirement System Defined Pension Plan – Safety Police Plan ............ 131 Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios California Public Employees’ Retirement System Defined Pension Plan – Safety Fire Plan................ 133 Schedule of Contributions – Pensions:

CalPERS Miscellaneous ........................................................................................................................ 135 CalPERS Safety Plan – Police ............................................................................................................... 137 CalPERS Safety Plan – Fire ................................................................................................................... 139 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios:

Other Postemployment Benefits (“OPEB”) Plan ................................................................................... 141 Schedule of Contributions – Other Postemployment Benefits (“OPEB”) Plan ........................................ 143

Supplementary Information:

Schedule of Revenues, Expenditure, and Changes in Fund Balance – Budget and Actual:

Low Mod Income Housing Asset Capital Projects Fund ....................................................................... 147 Nonmajor Governmental Funds:

Combining Balance Sheet ...................................................................................................................... 150 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 153 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Gas Tax Special Revenue Fund ....................................................................................................... 157 Measure A Special Revenue Fund ................................................................................................... 158 Trip Reduction Special Revenue Fund ............................................................................................ 159 Asset Forfeiture Special Revenue Fund .......................................................................................... 160 Special Tax District Special Revenue Fund .................................................................................... 161 Other Grants & Endowments Special Revenue Fund ...................................................................... 162 Residential Refuse Special Revenue Fund ...................................................................................... 163 Public Facility Project Capital Projects Fund .................................................................................. 164 HUD Grants Capital Projects Fund ................................................................................................. 165 Planned Local Drainage Capital Projects Fund ............................................................................... 166 Other Grants Capital Projects Fund ................................................................................................. 167

City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (Continued)
iii
Page
Supplementary Information (Continued):

Nonmajor Enterprise Funds:

Combining Statement of Net Position.................................................................................................... 171 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................ 172 Combining Statement of Cash Flows ..................................................................................................... 173 Internal Service Funds:

Combining Statement of Net Position.................................................................................................... 176 Combining Statement of Revenues, Expenses and Changes in Net Position ........................................ 178 Combining Statement of Cash Flows ..................................................................................................... 180 Custodial Fund:

Combining Statement of Fiduciary Net Position ................................................................................... 185 Combining Statement of Changes in Fiduciary Net Position ................................................................ 186 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ......................................................................................................... 189 Financial Trends:

Net Position by Component .......................................................................................................................... 190 Changes in Net Position ............................................................................................................................... 192 Fund Balances – Governmental Funds ......................................................................................................... 196 Changes in Fund Balances – Governmental Funds ...................................................................................... 198 Revenue Capacity:

Water Sales by User Type ............................................................................................................................ 200 Assessed Valuation and Actual Value of Taxable Property ......................................................................... 201 Potable Water Rates ..................................................................................................................................... 203 Reclaimed Water Rates ................................................................................................................................ 204 Direct and Overlapping Property Tax Rates ................................................................................................. 205 Principal Water Customers ........................................................................................................................... 206 Principal Property Tax Payers ...................................................................................................................... 207 Property Tax Levies and Collections ............................................................................................................ 209 Debt Capacity:

Ratios of Outstanding Debt by Type ............................................................................................................ 210 Ratios of Net General Bonded Debt Outstanding ........................................................................................ 213 Direct and Overlapping Governmental Activities Debt ............................................................................... 214 Legal Debt Margin Information ................................................................................................................... 216 Pledged Revenue Coverage .......................................................................................................................... 218 Demographic and Economic Information:

Demographic and Economic Statistics ......................................................................................................... 221 Principal Employers ..................................................................................................................................... 222 Operating Information:

Full-Time Equivalent City Governmental Employees by Function/Program .............................................. 223 Operating Indicators by Function/Program .................................................................................................. 224 Capital Asset Statistics by Function/Program .............................................................................................. 226 iv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Corona
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
v
vi
December 7, 2022
To the Honorable Mayor, City Council, and Citizens of the City of Corona, California:

It is with great pleasure that we present to you the City of Corona’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The ACFR is published to serve two purposes. First, it outlines accountability for public tax dollars and the services that are funded by these resources. Second, it communicates the results of operations and the City’s financial position to its constituents and provides a vital framework for future decisions about programs and services.

In order to ensure the reliability of the information in this financial report, the City contracted an independent audit firm, The Pun Group, LLP, to perform an annual audit. The goal of the audit is to provide reasonable assurance that the City’s financial statements are free from material misstatement. The Pun Group, LLP issued an unmodified opinion for the City’s financial statements for the fiscal year ended June 30, 2022. An “unmodified opinion” is defined as follows: The auditor concludes that the financial statements of a given entity are presented fairly, in all material respects, in accordance with generally accepted accounting principles.

Management is responsible for both the accuracy of the financial report and the completeness and fairness of the presentation. To the best of our knowledge, the information presented is accurate in all material aspects and includes all disclosures necessary to enable the reader to gain a reasonable understanding of the City’s financial activities. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft or misuse, and to compile sufficient reliable information for the preparation of the ACFR.

Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements are free from material misstatement.

The ACFR is prepared using the financial reporting requirements outlined by the Governmental Accounting Standards Board (GASB) statements. Three sections are presented: the Introductory Section, the Financial Section, and the Statistical Section. This transmittal letter is included in the Introductory Section and is designed to complement and should be read in conjunction with the Management’s Discussion and Analysis (MD&A), which is included in the Financial Section. The MD&A provides an overview of the City’s operations and how we performed financially. The auditor’s opinion letter and a complete set of financial statements are presented in the Financial Section. The Statistical Section presents historical information about the City’s finances and operations, as well as demographic and economic data.

The independent audit of the financial statements of the City of Corona is part of a broader, federally mandated audit of state and local governments (“Single Audit”) designed to meet the special needs of YLL
City of Corona Letter of Transmittal
federal granting agencies. The standards governing Single Audit require the auditor to report not only on the fair presentation of the financial statements, but also on the City’s internal controls and compliance with legal requirements. These reports are available in the City of Corona’s separately issued Single Audit Report.

The ACFR is a required component of continuing disclosure to the bond holders as covenanted by certain bond issues.

Community Profile
The City of Corona is a vibrant and culturally diverse community located in the heart of Southern California at the critical juncture between Riverside, Orange, Los Angeles, and San Bernardino Counties. It is served by two major freeways, Interstates 91 and 15, and has two major airports within 25 miles. Per data provided by the California State Department of Finance, the City’s population was 159,749 as of January 2022, and ranked 35th largest among all cities in California. City limits cover approximately 39.2 square miles.

The City of Corona was established in 1886 and incorporated in 1896 under the general laws of the State of California. The City operates under a Council-Manager form of government. Five Corona citizens make up the Corona City Council and each is elected by district to a four-year term of office. The Mayor is appointed annually by and from the City Council. The City’s first District Election which impacted Districts 1, 4 and 5, was held in November 2018. Districts 2 and 3 held their first elections in November 2020.

A Full-Service City
The City provides full services to its citizens, including essential services such as: public safety (police and fire), streets, electric, public library, parks, community center and other public facilities, planning and zoning, public transportation (Dial-A-Ride and Corona Cruiser programs), housing and economic development programs. Water and water reclamation services are provided through the legally separate Corona Utility Authority, which functions as a department of the City of Corona. The Corona Housing Authority and the Corona Public Financing Authority are component units of the primary City government and are financially accountable to the City. Additional information on all of these legally separated entities can be found in the Notes to the Basic Financial Statements, under the Description of Reporting Entity section.

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriation approved by the City Council. Each year, a proposed budget is submitted to the City Council and a public meeting is conducted to receive taxpayer and stakeholder feedback. In recent years, the City has conducted multiple budget workshops to encourage additional public input. The budget is subsequently adopted by the City Council through passage of resolutions at a normally agendized meeting of the full City Council. The legal level of budgetary control is at the department level. The City Council may amend the budget to add or delete appropriations or move appropriations between funds at any time during the fiscal year.

Demographic and Economic Information
Demographically, Corona benefits from a young median age, higher education levels, higher median incomes, and higher home values compared with Riverside county and the state. As a thriving inland community, Corona is home to young families comprised of 48,905 households averaging 3.25 persons each, YLLL
City of Corona Letter of Transmittal
with a median age of 38.3. Annual median household income is $92,606, and 76% of the population age 25 and up possess a high school diploma or higher according to U.S. Census data. Median home price continues to improve with median values in excess of $620,600.

The city of Corona continues to maintain its position as the premier location for businesses looking to relocate and expand. Corona’s geographic position attracts a highly educated and sought-after labor force.

Vacancy rates in industrial, commercial, and office properties all declined in 2022, with many companies returning to in-person work. Industrial vacancy rates dropped even lower to 1.0%, retail vacancy dropped to 5.2%, and office vacancy rates steadily declined to 7.5%.

New industrial development, business expansions, and relocations to Corona have helped to stabilize Corona’s job market, despite economic impacts related to the global pandemic. Job growth in Corona reported a 10% increase with employment numbers increasing to 86,700 in the first quarter of 2022. Major contributors to local economic growth are the construction, health care, and financial industries, in addition to the fast growing professional, management and technology sectors in previous years. Job growth will continue to be fueled by the more than 1.8 million square feet of industrial development recently completed or under construction and the recent completion of 147,000 square feet of Class A office. The strong local job market keeps the unemployment rate in Corona at 3%, which is approximately 1% below the Riverside County average.

Fiscal Year 2022 continued to see an expanding housing market with increased median home prices and average rents for multi-family communities. New single-family housing developments include Sierra Bella, a new family community consisting of 237 single family homes and Bedford South Corona, which will add more than 1,500 single family units once complete along with Corona’s newest retail development, Bedford Marketplace. Both developments are under construction, with some homes completed and occupied by new homeowners. A number of proposed condominium developments are in various stages of plan check or construction including 109 attached units on the east side of Temescal Canyon Road and Dos Lagos Drive.

With limited opportunities for large-scale new development, Corona continues looking for opportunities to redevelop and expand currently underutilized properties. Through its ongoing commitment to stimulate the local economy, maintain essential services, and expand its labor force, the City of Corona will continue to be the premier inland Southern California city to live, work and play.

Financial Condition of the City
Nationwide, the economy has continued to show strong recovery from early COVID-19 pandemic shutdowns. The national unemployment rate was 3.6% at the end of Fiscal Year 2022. However, improving national economic performance does not directly translate to improved financial condition for local governments, nor opportunities to fund more services. As an example, a rise in home prices does not directly correlate to the City collecting more in property taxes. With Proposition 13, property tax is capped at 1.0%, and the property’s taxable value cannot increase more than 2.0% per year. At the same time, increase in fixed cost for operating city government has outpaced its revenue growth. In December 2016, CalPERS announced the reduction of the discount rate from 7.5% to 7.0% over three years, effective Fiscal Year 2019. Also, the CalPERS Board of Administration adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortened the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removed the 5-year ramp-up and ramp-down on the unfunded accrued liability L[
City of Corona Letter of Transmittal
(UAL) bases attributable to assumption changes and non-investment gains/losses. These changes have been applied to new UAL bases established on or after June 30, 2019.

The steep increase in non-discretionary costs places significant pressure on the City’s revenue generating capabilities, amid other state policies that continue to shift responsibilities to cities, without the necessary funding, increasing costs to law enforcement and public safety, and making it more difficult to maintain the expected levels of essential services for our residents. Revenue must grow at the same rate, or faster, as expenses to create fiscal sustainability and maintain service levels the community demands.

Sales tax was previously the second largest revenue source for the City. With the addition of Measure X, the 1% sales tax measure effective in July 2021, sales tax has moved to the largest General Fund revenue source. Taxable retail sales totaled $4.9 billion in Calendar Year 2021, an increase of 9.7% from the previous year. Consumer spending increased in Fiscal Year 2022, as the local economy was recovering from the COVID-19 pandemic. Much of this consumer spending is best seen in the general consumer goods, automobile purchases, building construction related industries, and State and County pool allocations.

Increased automobile sales and a strong housing market are key indicators of improved consumer confidence. The diversification of the City’s sales tax base is enviable, with the building and construction sector and general consumer goods as the largest categories.

Source: HdL Companies
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City of Corona Letter of Transmittal
Note: Beginning FY 2022, includes Measure X, 1% sales tax measure effective July 2021 Historically, property tax was the largest General Fund revenue source for the City. In Fiscal Year 2022, it moves to the second largest category. Total taxable assessed valuation in Corona for the year was $24.0 billion, representing an increase of 4.2% from the previous year.

Source: HdL Coren & Cone; Riverside County Assessor combined tax rolls [L
City of Corona Letter of Transmittal
Long Term Financial Planning
Escalating pension costs are presenting a serious threat to the City’s financial sustainability. The burden of funding current pension obligations, amid continued state takeaways and the state shifting responsibilities, without the necessary funding is taking priority over spending on essential services and adding significant demands for additional locally-controlled revenue.

The City has been consistently demonstrating strong fiscal stewardship by proactively responding to the impact of the broader state-wide pension situation that is often times described as grim. This proactive stewardship includes contributing additional funds toward the City’s unfunded pension liability with CalPERS. In October 2021, the City issued Pension Obligation Bonds (POB) which are estimated to save $166 million over the next 20 years. In addition, the City Council adopted a Pension Management Policy and established an irrevocable Section 115 Trust, with an initial contribution of $30 million. Future contributions will be reviewed and discussed on an annual basis.

The City continues to explore and fund new technology to improve overall operational efficiency. In addition to cutting costs, the City adopted new revenue streams by establishing City-wide community facilities districts for services. The City also established the guidelines and process for approving Cannabis businesses to operate within the City limits. The City started accepting applications in early 2021, with the first businesses to be operational in Fiscal Year 2023. In November 2020, a majority of voters in Corona approved a 1% sales tax measure, Measure X, effective July 1, 2021. This additional revenue stream was originally estimated to generate $30 million in recurring funds. Measure X revenues for FY 2022 were $40 million, greatly surpassing the initial estimates. The City maintains a healthy General Fund reserve level, following best practices established by the Government Finance Officers Association (GFOA).

This commitment to fiscal stewardship did not go unnoticed by the rating agencies. In September 2021, the most recent credit review performed by Standard and Poor’s Financial Services (S&P), the City’s appropriation debt rating was raised from “AA-“ to “AA”, and the City’s POB was rated at “AA+”, among the positive factors the City was acknowledged for were “very strong budgetary flexibility,” “very strong liquidity,” and “adequate budgetary performance.” S&P viewed the City’s management as “strong, with good financial policies and practices” under its Financial Management Assessment methodology. In the current climate of instability at local and regional levels of government, we are exceptionally pleased about this recognition and proud to have attained this strong rating. [LL
City of Corona Letter of Transmittal
Financial Policies and Practices
The City has adopted various critical financial policies and practices with the goal of building a fiscally resilient government over the long-term, improving financial sustainability, all while increasing transparency and encouraging public engagement every step of the way.

Fund Balance Policy for the General Fund
The City established its reserves policy for the General Fund in June 2010. In June 2016, the City updated its Fund Balance Policy for the General Fund to increase the emergency contingency reserve balance to three-months of regular General Fund operating expenses. The purpose of the revised policy is to protect our community against service disruption in the event of unexpected temporary revenue shortfalls or unpredicted one-time expenditures, as well as the enhanced credit worthiness of the City. As of June 30, 2022, the Emergency Contingency Reserve balance was $41.7 million.

Zero-Based Budgeting
The City launched zero-based budgeting in Fiscal Year 2017, following 23 years of the General Fund Expenditure Control Budget (ECB) model. Zero-based budgeting is an effective process that organizations use to review every dollar in the annual budget, continuously manage financial performance, measure return on investment, and build a culture of cost management among all departments. It is based on developing visibility into actual cost drivers and using that data visualization to set budget targets that use predictive analytics to generate successful outcomes to the bottom line. The annual budgeting process starts from zero and is very detailed, structured, and interactive to facilitate meaningful financial discussion among all departments and establish priorities with all stakeholders within the community as presented by the City Council. Our goal is to achieve significant and sustainable savings, while delivering productivity and service level improvements through actionable data generation at all levels within the budget.

Implementation of this budget practice has helped leadership evaluate and balance the competing demands for enhanced services/facilities versus the increased costs of operating, building and maintaining those additional services and/or facilities.

This practice has allowed us to effectively analyze and identify budget variances during the budget process in a way that helps us more effectively program and leverage actual budget dollars. To drill down to an even more precise zero-based budget, we have continued to include an employee position vacancy factor to account for savings caused by the actual time necessary for current hiring processes and onboarding. The factor was based on a five-year look-back period for departments and classifications (safety and non-safety personnel). We will continue to identify, monitor and adjust variance factors in future budgets.

Debt Policy and Procedures
Following the best practice guidelines for debt management published by the GFOA, the City develops and maintains a formal Debt Policy and Procedures to ensure that debt is issued and managed prudently. The purpose of this policy is to standardize the parameters for debt issuance and management, improve the quality of decisions, provide guidance for the structure of debt issuance to ensure the most prudent, equitable, and cost-effective method of financing is chosen, and demonstrate a commitment to long-term capital and financial planning. The current policy was approved by the City Council in August 2020 and is reviewed on an annual basis.
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City of Corona Letter of Transmittal
Investment Policy
The City’s Investment Policy outlines the guidelines and practices to be used in effectively managing the City’s available cash and investment portfolio. All available funds are to be invested in compliance with the California Government Code and other governing provisions of law. The policy lists in detail the authorized investments, as well as the percentage of portfolio limitations and the required rating for each investment type. The Investment Policy is reviewed, updated and adopted annually.

Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Corona for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the 32nd consecutive year that the City has received this prestigious award. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the award program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of the ACFR on a timely basis was made possible by the efficient and dedicated service of the staff in Finance. Staff members have our sincere appreciation for their contributions to this report. We also acknowledge the assistance of The Pun Group, LLP, in completing the ACFR.

We thank the Mayor, City Council, and the City’s executive management team for their strong leadership and support of the financial operations of the City and for maintaining the highest standards of professionalism in managing the City’s finances for the best interest of the citizens of Corona.

Respectfully submitted,
_____________________________ ________________________________________ Jacob Ellis Kim Sitton
City Manager Finance Director
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xv
Elected Officials
Executive Management

CITY OF CORONA
Elected Officials and Executive Management
WES SPEAKE ................................................................................................... Mayor TONY DADDARIO .................................................................................... Vice Mayor JACQUE CASILLAS .......................................................................... Councilmember TOM RICHINS ................................................................................... Councilmember JIM STEINER ..................................................................................... Councilmember CHAD WILLARDSON .......................................................................... City Treasurer JACOB ELLIS ....................................................................................... City Manager ROGER BRADLEY ................................................................ Assistant City Manager JOANNE COLETTA. .............................................Planning and Development Director DEAN DERLETH.......................... City Attorney & Legal/Risk Management Director JESSICA GONZALES ............................................Economic Development Director ROBERT NEWMAN ............................................................................. Chief of Police SAVAT KHAMPHOU ..................................................... ............Public Works Director CHRIS MCMASTERS ........................................................ Chief Information Officer SHAUGHN HULL ........................................................ Chief Communications Officer ANNE TURNER .............................................................. Community Services Director TOM MOODY........................................................................................ Utilities Director ANGELA RIVERA ........................................................................ Chief Talent Officer KIM SITTON ........................................................................................Finance Director BRIAN YOUNG ........................................................................................... Fire Chief Citizens of Corona
City Treasurer
Chad Willardson,
City Treasurer
City Council
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dŽŶLJĂĚĚĂƌŝŽ, Vice Mayor
:ĂĐƋƵĞĂƐŝůůĂƐ, Council Member
Tom Richins, Council Member
Jim Steiner, Council Member
Legal & Risk
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Dean Derleth͕
City AttorneyͬLRM Director
City ManagerΖƐKĨĨŝĐĞ
Jacob Ellis,
City Manager
Police Department
Robert Newman,
Chief of Police
Fire Department
Brian Young,
Fire Chief
Planning and
Development
Joanne Coletta,
Planning Θ Development Director
Community Services
Dr. Anne Turner,
Community Services Director
Finance Department
Kim Sitton,
Finance Director
Public Works
Savat Khamphou,
Public Works Director
Economic
Development
Jessica Gonzales,
Economic Development Director
Utilities
Tom Moody,
Director of Utilities
Information
Technology
Chris McMasters,
Chief Information Officer
Human Resources
Angela Rivera,
Chief Talent Officer
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xvi
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor, City Council, and Citizens
of the City of Corona
Corona, 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 Corona, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof 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 (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our 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 these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

To the Honorable Mayor, City Council, and Citizens
of the City of Corona
Corona, California

2 Auditors’ Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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 generally accepted auditing standards 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Modified Approach for City Streets Infrastructure Capital Assets, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits on pages 5 through 22 and 123 through 144 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

To the Honorable Mayor, City Council, and Citizens
of the City of Corona
Corona, California

3 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 Financial Statements 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 Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2022, 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.

Santa Ana, California
November 29, 2022
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4 5
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2022
The City of Corona’s Finance team has prepared this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022, to assist users of this report to gain a better understanding of the City’s financial health and history. The information presented here should be considered in conjunction with additional information furnished in the letter of transmittal and the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
The City of Corona’s financial statements prepared for the fiscal year ended June 30, 2022 comply with all applicable statements issued by the Governmental Accounting Standards Board (GASB). GASB Statement No. 87, Leases, was implemented by the City during the fiscal year ended June 30, 2022. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. The implementation of GASB 87 increases the usefulness of the City’s financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about the City’s leasing activities.

Government-Wide
 The City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2022 by $1,277 million (net position).  The overall City’s net position increased by $86.2 million from the previous fiscal year, primarily due to revenues exceeding expenses by $83.1 million. Total assets increased by $100.8 million, total liabilities increased by $177.5 million, combined with an increase in deferred outflows in the amount of $261.2 million, and an increase in deferred inflows in the amount of $98.5 million, primarily due to the issuance of pension obligation bonds in addition to other pension and OPEB related items, net position of the City saw an increase of 7.2% from the prior year.  Total expenses for governmental activities were $178.8 million for Fiscal Year 2022. The sources for these expenses came from program revenues of $91.4 million, taxes in the amount of $157.9 million, and other general revenue of $6.1 million. For the current year, revenues from governmental activities exceeded expenses by $76.7 million, together with a transfer in of $0.1million, and a beginning balance restatement of $3.2 million, net position for governmental activities increased by $79.9 million from the previous year.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
6  For business-type activities, total revenues exceeded expenses by $6.4 million. Among the total program revenue of $124.2 million, $117.2 million was from charges for services, $5.1 million from operating contributions and grants, and the remaining $1.9 million represents capital contributions and grants. Combined with a transfer out of $0.1 million, the net position for business-type activities increased by $6.3 million from the previous year.

Fund Based
 The City’s governmental funds reported a combined ending fund balance of $426.3 million, an increase of $201.8 million from the previous year. The net increase was due to the combination of current year’s revenues exceeding expenditures of $29.2 million, and a beginning balance restatement of $172.6 million. Among the total fund balance, $330.5 million, or 77.5% are either non-spendable or restricted for specific purposes. In addition, $48.1 million was committed by the City Council, including $41.7 million as an emergency contingency, and $6.4 million as designated revenues. There was $55.8 million assigned to specific City programs and projects. Please refer to Note 15 for additional information on the classification of fund balances for governmental funds.

OVERVIEW OF THE FINANCIAL STATEMENTS
Government-Wide Financial Statements
The government-wide financial statements are designed to give users a broad overview of the City’s finances, similar to a private-sector business. They present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting.

There are two statements in the government-wide financial statements, the statement of net position, and the statement of activities. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The net difference between the total of assets and deferred outflows and the total of liabilities and deferred inflows is reported as net position. Increases or decreases in net position over time may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. Other factors to consider are changes in the City’s property tax base and the condition of the City’s infrastructure assets. The statement of activities shows how the City’s net position changed during the fiscal year.

Both government-wide financial statements distinguish between functions that are primarily supported by taxes and intergovernmental revenues, and functions that are intended to recover all or a significant portion of their costs through user fees and charges. The first function is identified in the statements as governmental activities, while the latter is reported as business-type activities.

Most of the City’s basic services are reported in the governmental activities category, including the General Government, Fire, Police, Public Works and Maintenance Services, Community Services, Planning and Development, and Economic Development. Property and sales taxes, franchise fees, transient occupancy tax, business tax, investment income, and state and federal grants finance these activities. The City operates its Water and Water Reclamation utilities through its component unit, the Corona Utility Authority. These activities are reported in the business-type activities category along with Electric, Transit and Airport services.

The government-wide financial statements can be found on the pages immediately following this discussion in the Basic Financial Statements section.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
7 Fund Financial Statements
A fund is a set of related accounts that is used to control resources that have been segregated to carry on specific activities or to attain certain objectives in accordance with special regulations, restrictions, or limitations. The City, like the state and other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All City funds are divided into one of three categories: governmental funds, proprietary funds, or fiduciary funds.

The governmental fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary and fiduciary activities are prepared using the economic resources measurement focus and the accrual basis of accounting.

The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds to help manage and report money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

Governmental funds
Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides.

Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the governmental fund financial statements to those in the government-wide financial statements are explained in a reconciliation schedule following each governmental fund financial statement. The governmental fund financial statements can be found in the Basic Financial Statements section of this report.

Proprietary funds
When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the statement of net position and the statement of revenues, expenses and changes in fund net position. The City’s enterprise funds are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities – such as the City’s self-insurance, information technology and fleet operations funds. The internal service funds are reported with governmental activities in the government-wide financial statements. The proprietary fund financial statements can be found in the Basic Financial Statements section of this report.

Fiduciary funds
The City is the trustee, or fiduciary, for certain funds held to account for activities reported in this category which includes the Successor Agency, the AB109 PACT Fund, and the special taxes and assessments districts. The City’s fiduciary activities are reported in separate statements of fiduciary net position, statement of changes in fiduciary net position (trust fund and custodial funds).

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
8 Notes to Basic Financial Statements
Notes to basic financial statements provide additional information that is essential to fully understand the data provided in the government-wide and fund financial statements. They are presented immediately following the Basic Financial Statements section of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information on the City’s budget process and the General Fund and major special revenue fund budgetary comparison schedules, the modified approach for the City’s Street infrastructure assets, the City’s progress in funding its obligation to provide pension benefits to its employees, and the City’s obligation for post-employment benefits.

Combining and individual statements for non-major governmental and proprietary funds, internal service funds and custodial funds are presented in the Supplementary Information section of this report.

GOVERNMENT- WIDE FINANCIAL ANALYSIS
The government-wide financial analysis focus on the City’s net position and changes in net position of the governmental and business-type activities during the fiscal year.

As noted earlier, the City’s net position increased by $86.2 million from the previous year. The increase in financial position was primarily due to positive operating results where revenues exceeded expenses by $83 million. Among the total net position, $1,139.7 million were invested in capital assets, net of related debt.

These capital assets are essential for City operations, which include land, buildings, machinery and equipment, water and water reclamation rights, and infrastructure. Net position invested in capital assets is not available for spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated to pay for the liabilities.

The remaining $137.3 million of total government-wide net position are composed of $150.9 million restricted funds and ($13.6) million unrestricted. Net position may be restricted for capital projects, debt payments, and/or special programs such as transportation and special assessment district improvements.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
9 The graph below illustrates the various components of the City’s net position at fiscal year ended June 30, 2022.

Net Investment in
Capital Assets

87.2%
Restricted for Capital
Project

2.9%
Restricted for Pension

2.4%
Restricted for Special
Assessment Districts

2.2%
Restricted for Community
Development Projects

0.5%
Restricted for Transportation
and Public Works 2.3%
Restricted for
Development Projects

1.4% Restricted for Other
Purposes

1.2%
City of Corona Net Position
June 30, 2022
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
10 The schedule below is a condensed version of the City’s statement of net position for fiscal year ended June 30, 2022 with comparative data from the previous fiscal year:

Governmental activities Business-type activities Total
2022 2021 2022 2021 2022 2021
Current and other assets $ 374.1 294.9$ $ 169.8 $ 169.7 $ 543.9 $ 464.6 Internal balances 174.7 176.5 (174.7) (176.5) - -
Capital assets 805.6 784.9 422.2 421.4 1,227.8 1,206.3
Total assets 1,354.4 1,256.3 417.3 414.6 1,771.7 1,670.9 Deferred charges on refunding 0.4 0.4 - - 0.4 0.4
Deferred pension related items 265.6 46.5 36.5 5.1 302.1 51.6 Deferred OPEB related items 23.9 14.3 3.4 2.2 27.3 16.5 Total deferred outflows 289.9 61.2 39.9 7.3 329.8 68.5
Long-term debt 258.2 64.5 87.6 62.8 345.8 127.3
Net pension liability 143.5 224.9 20.5 36.1 164.0 261.0 Net OPEB liability 74.4 79.9 10.6 12.3 85.0 92.2
Other liabilities 86.7 30.6 21.5 14.4 108.2 45.0
Total liabilities 562.8 399.9 140.2 125.6 703.0 525.5
Deferred pension related items 67.4 4.7 8.9 - 76.3 4.7
Deferred OPEB related items 24.8 15.7 3.5 2.6 28.3 18.3 Lease 12.5 - 4.4 - 16.9 -
Total deferred inflows 104.7 20.4 16.8 2.6 121.5 23.0
Net investment in capital assets 774.6 751.0 365.1 362.6 1,139.7 1,113.6 Restricted 149.3 107.1 1.6 1.7 150.9 108.8
Unrestricted 53.0 38.9 (66.6) (70.5) (13.6) (31.6)
Total net position $ 976.9 897.0$ $ 300.1 $ 293.8 $ 1,277.0 $ 1,190.8 City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
11 Below are condensed financial data with comparative amounts on revenues and expenses for the current and prior year.

Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Revenues:

Program Revenues:

Charges for Services 34.0 $ 31.9 $ 117.2 $ 117.2 $ 151.2 $ 149.1 $ Operating Contributions and Grants 37.5 33.4 5.1 2.2 42.6 35.6 Capital Contributions and Grants 19.9 19.3 1.9 4.1 21.8 23.4 General Revenues:

Taxes:

Property Taxes 55.4 52.6 - - 55.4 52.6
Sales and Use Taxes 89.9 44.8 - - 89.9 44.8
Other Taxes 12.6 11.2 - - 12.6 11.2
Gain on sale of capital assets 0.1 0.2 - - 0.1 0.2
Investment Earnings (1.5) 1.0 (3.5) 0.7 (5.0) 1.7
Other Income 7.5 12.1 - - 7.5 12.1
206.5 255.4 120.7 124.2 376.1 330.7
Expenses:

General Government 35.1 37.6 - - 35.1 37.6
Public Safety - Fire 32.0 32.6 - - 32.0 32.6
Public Safety - Police 46.4 49.7 - - 46.4 49.7
Public Works & Maintenance Services 51.1 42.9 - - 51.1 42.9 Community Services 4.0 3.9 - - 4.0 3.9
Planning and Development 5.1 6.4 - - 5.1 6.4
Economic Development 1.2 0.7 - - 1.2 0.7
Interest and Fiscal Charges 3.9 1.1 - - 3.9 1.1
Water - - 63.4 61.4 63.4 61.4
Water Reclamation - - 31.9 27.6 31.9 27.6
Electric - - 15.6 14.6 15.6 14.6
Transit Services - - 2.9 2.6 2.9 2.6
Airport - - 0.5 0.2 0.5 0.2
Total Expenses 178.8 174.9 114.3 106.4 293.1 281.3
Excess (Deficiency) of Revenues
Over (Under) Expenditures 76.6 31.6 6.4 17.8 83.0 49.4
Transfers 0.1 (0.1) (0.1) 0.1 - -
Special Items - - - - - -
Change in Net Position 76.7 31.5 6.3 17.9 83.0 49.4
Net Position - Beginning of Year 897.0 863.3 293.8 276.2 1,190.8 1,139.5 Restatement 3.2 2.2 - (0.3) 3.2 1.9
Net Position - End of Year 976.9 $ 897.0 $ 300.1 $ 293.8 $ 1,277.0 $ 1,190.8 $ Total Revenues
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
12 Governmental Activities
Total resources available during the year to finance governmental operations were $1,155.6 million. This amount consists of the beginning net position of $900.2 million, which includes a restatement of $3.2 million, program revenues of $91.4 million, general revenues of $164.0 million, and transfer of $0.1 million. Total uses in governmental activities during the year totaled $178.8 million. The net position for governmental activities increased by $79.9 million to $976.9 million as of June 30, 2022.

The chart below presents governmental activity revenues and expenses for the past five years:
$-
$50
$100
$150
$200
$250
2018 2019 2020 2021 2022
Amount (in millions)
Fiscal Year
Revenues and Expenses ‐ Five‐Year Trend
Governmental Activities
Revenues Expenses
The following graph shows the expenses of each governmental function compared to the program revenues generated specifically from its operations.
$0
$10
$20
$30
$40
$50
$60
Amount (in millions)
Program Revenues andExpenses ‐Governmental Activities
Year EndedJune 30, 2022
Expenses Program Revenues
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
13 General government support services (administration, legal, human resources and financial) are primarily funded by charges to the direct operating functions they support through a cost allocation program. The public safety function (police and fire) generates program revenues as well, but property taxes, sales tax and other general revenues fund a majority of the cost. The public works and maintenance services program is responsible for maintenance and construction of the transportation system, with funding provided by gas tax, Measure A, various federal, state and local grants, special assessments, as well as other general revenues. The funding source for community services is primarily general revenues and some program fees.

Planning and Development and Economic Development functions are funded by development related revenues as well as general revenues such as taxes, fees and investment income.

The cost of all governmental activities for fiscal year ended June 30, 2022 was $178.8 million. As shown in the statement of activities, the amount the taxpayers ultimately funded for these activities was $157.9 million, $6.1million funded by other income, the remaining $91.4 million was paid by various program revenues, including $34.0 million by those who directly benefited from the programs, $37.5 million from other governments and organizations that subsidized certain programs with operating grants and contributions, and $19.9 million from capital contributions and grants.

The following two charts illustrate the total revenue and expense for the governmental activities, excluding transfers and extraordinary items for the fiscal years ended June 30, 2022 and June 30, 2021, respectively. $(20)
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
Taxes Charges for
Services
Operating
Contributions &
Grants
Capital
Contributions &
Grants
Investment
Earnings
Other
Amount (in millions)
Revenue Sources - Two-Year Comparison
Governmental Activities
2022 2021
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
14 $-
$10
$20
$30
$40
$50
$60
$70
$80
$90
General
Government
Public Safety Public Works and
Maintenance
Services
Community Services Planning and
Development
Economic
Development
Interest on LongTerm Debt
Amount (in millions)
Expenses - Two-Year Comparison
Governmental Activities
2022 2021
Highlights of the major revenue sources and expenses are listed below:
 Program revenues represent 35.8% of total revenues generated by governmental activities. Total program revenues for governmental activities in the current year were $91.40 million, an increase of $6.8 million from the previous year, primarily due to an increase of $4.1 million in operating contributions and grants, and an increase of $2.1 million in charges for services compared to the prior year.
 Total tax revenues were $157.9 million for the current year, showing an increase of $49.3 million from the previous year. Taxes comprised 61.8% of the total revenues from governmental activities, Sales and use tax revenue represents 56.9% of total taxes, where property tax revenue ranked second sharing

35.1% of total tax revenue. The remaining 8% were comprised of franchise fee, business license tax, transient occupancy tax, and dwelling development fee.
 Property tax revenues increased by $2.8 million compared to prior year. Sales and use tax revenues increased by $45.1 million in comparison to the prior year, driven by recovery of the economy from the impact of COVID-19 and new Measure X enactment.
 Overall governmental expenses increased by $4.1 million from the prior year, primarily due to the interest expense of $2.1 million for the new pension obligation bond, and an increase in professional and contract services of $1.8 million.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
15 Business-Type Activities
The City’s net position in the business-type activities increased by $6.3 million. The primary contributor to the increase was excess revenues over expenses in the amount of $6.4 million, offset by a transfer out of $0.1 million. The overall net position reported in the business-type activities was $300.1 million as of June 30, 2022.

The chart below presents revenues and expenses in the business-type activities for the past five years.

The following graph shows the expenses of each business-type function compared to the program revenues generated specifically from its operations.
$-
$20
$40
$60
$80
$100
$120
$140
2018 2019 2020 2021 2022
Amount (in millions)
Fiscal Year
Revenues and Expenses ‐ Five‐Year Trend
Business‐Type Activities
Revenues Expenses
$0
$10
$20
$30
$40
$50
$60
$70
$80
Millions
Program Revenues and Expenses ‐ Business‐Type Activities Year Ended June 30, 2022
Expenses Program Revenues
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
16 Total expenses of all business-type activities for the fiscal year ended June 30, 2022 was $114.3 million, representing an increase of $7.9 million from the previous year. Total program revenue reported for the year was $124.1 million. As shown in the statement of activities, the amount paid by users of the systems was $117.2 million, reported as charge for services. Revenues from operating grants and contributions were $5.0 million, and capital grants and contributions were $1.9 million.

Total resources available during the year to finance business type activities were $414.3 million. This amount consists of the beginning net position of $293.8 million, combined with total program revenues of $124.1 million, investment loss of $3.5 million, and a transfer out of $0.1 million. After funding total expenses of $114.3 million, net position for business-type activities increased by $6.3 million to $300.1 million at June 30, 2022.

Comparing to the prior year, expenses increased by $7.9 million, primarily due to an increase in water reclamation expenses of $4.3 million, and increases in water and electric expenses of $2.0 million and $1.0 million, respectively. Revenues decreased by $3.6 million, primarily due to GASB 31 book entry of $3.5 million loss to mark investment to market.

FUND FINANCIAL ANALYSIS
General Fund
The General Fund is the primary operating fund of the City. Fund balance increased by $198.4 million for the fiscal year ended June 30, 2022, with an ending balance of $321.2 million, primarily due to GASB 87 implementation resulting a restatement of beginning fund balance by $172.6 million, and sales tax revenues from Measure X contributed the additional $25.2 million.

Below is a three-year trend analysis on the fund balance of the General Fund. For additional information, please refer to Note 15 in the accompanying financial statements.

FY 2022 FY 2021 FY 2020
Fund Balances:

Nonspendable 187.6 $ 19.8$ 22.8$
Restricted 30.1 - -
Committed 48.1 42.9 42.0
Assigned 55.2 60.1 62.4
Unassigned 0.2 - -
Total Fund Balance $ 321.2 $ 122.8 $ 127.2
Fund Balance - Beginning $ 122.8 $ 127.2 $ 121.9
Excess Revenues over Expenditures 24.8 (5.4) 3.9
Transfers 1.0 1.0 1.4
Capital Leases - - -
Restatement - 172.6 -
Fund Balance - Ending $ 321.2 $ 122.8 $ 127.2
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
17 The graph below illustrates General Fund revenues by major sources:

Property Taxes

28.8%
Sales and Use Tax
Other Taxes 46.8%

6.9%
License, Fees and
Permits

1.3%
Fines, Penalties &
Forfeitures

0.6%
Intergovernmental

2.3%
Current Services

6.7%
Payment in Lieu of
Services

3.2%
Other

3.4%
General Fund Revenues
Year Ended June 30, 2022

A two-year comparison of each General Fund revenue source for the fiscal years ended June 30, 2022 and June 30, 2021 is presented below:
$(10)
$10
$30
$50
$70
$90
$110
Amount (in millions)
General Fund Revenues - Two-Year Comparison
2022 2021

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
18 The graph below illustrates General Fund expenditures by category:

General
Government

14.5%
Public Safety

64.0%
Public Works and
Maintenance
Services

6.9%
Community
Services

3.7%
Planning and
Development

3.0%
Economic
Development

0.6%
Capital Outlay

2.1%
Debt Service

5.2%
General Fund Expenditures
Year Ended June 30, 2022
A two-year comparison of each General Fund expenditure category for the fiscal years ended June 30, 2022 and June 30, 2021 is presented below:
$0
$50
$100
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$250
$300
Amount(inmillions)
2022 2021
General FundExpenditures ‐ Two Year Comparison
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
19 Overall General Fund revenues increased by $42.9 million or 28.85%, compared to the previous year. Sales and use tax are the largest revenue source of the General Fund and increased by 100.7% in the current year due to Measure X enactment. Property taxes is the second largest revenue source of the General Fund and increased by 5.3%. As shown in the General Fund Revenues graph, revenues increased in most of the revenue sources. Other tax revenues increased by 17.9%, current service charges increased by 13.2%, partially offset by decreases in licenses and fees, permits revenue and investment loss.

Overall General Fund expenditures increased by $236.8 million compared to the previous year. A majority of the increase is due to the issuance of pension obligation bond to pay the unfunded accrued pension liabilities to CALPERS in the amount of $223.9 million and related principal and interest payment of over $13 million during the year.

Other Major Governmental Funds
The Development Special Revenue Fund reported a fund balance of $17.4 million, an increase of $1.1 million from the prior year. Revenues exceeded expenditures in the current year by $1.1 million. Primarily due to an increase of development impact fees of $0.5 million and park dedication fees of $0.6 million in the current year.

The Low/Mod Income Housing Asset Capital Project Fund reported a fund balance of $37.6 million, an increase of $7.7 million from the previous year. The fund balance includes $18.5 million in cash and investments, $2.0 million in land held for resale, $7.1 million loan receivables, and long-term receivables in the amount of $9.9 million from various developers.

CAPITAL ASSETS
The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. At June 30, 2022, net capital assets totaled $805.6 million for the governmental activities, and $422.2 million for the business-type activities respectively. Depreciation on capital assets is recognized in the government-wide financial statements. Please refer to Note 9 of the accompanying financial statements for additional information.

The City has elected to use the “modified approach” as defined by GASB Statement No. 34 for infrastructure reporting for its street pavement system. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
 The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) condition assessments and summary of the results using a measurement scale; and (3) estimation of the annual amount to maintain and preserve at the established condition assessment level.
 The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
20 The City policy is to achieve an average rating of 71, or “Good” condition for all streets. The average rating for the City’s streets at June 30, 2022 was 71, the same as the previous assessment result. The City is continuously taking action to prevent deterioration through an on-going street rehabilitation program funded in the Capital Improvement Program. The program is formulated based on deficiencies identified as part of the City’s Pavement Management System (PMS). It includes short-term maintenance activities such as pothole patching, street sweeping, and crack sealing. The City expended $21.3 million on street maintenance during the current fiscal year. These expenditures delayed deterioration and maintained the street condition from the previous assessment. The City has estimated that the amount of annual expenditures required maintaining the current average PCI rating of 71 through the year 2023 is a minimum of $6.0 million. Please refer to the Required Supplementary Information section of the accompanying financial statement for additional information on the City’s Pavement Management Program.

The table below presents comparative summary information on the City’s capital assets:

Governmental
Activities
Business-type
Activities Total
2022 2021 2022 2021 2022 2021
Land 85.6 $ 80.5 $ 5.7 $ 5.7$ 91.3$ 86.2$
Streets 221.1 223.7 - - 223.7 221.1
Buildings and improvements 105.4 107.0 52.4 54.2 157.8 161.2 Machinery and equipment 15.3 16.5 43.4 42.0 58.7 58.5
Infrastructure 191.6 274.9 208.1 272.4 483.0 464.0
Construction in progress 166.2 168.2 26.0 27.5 192.2 195.7 Intangible assets - 19.8 1.2 19.6 21.0 19.6
Total Capital Assets $ 784.8$ 422.2$ 421.4$ 805.5 1,227.7$ $ 1,206.2

DEBT ADMINISTRATION
The City is committed to fiscal stewardship and continued its efforts to reduce its long-term debt obligation.

In the most recent credit review performed by Standard and Poor’s Financial Services (S&P), Corona Utility Authorities’ Wastewater Revenue Bonds was upgraded from “AA” to “AA+” and Water Revenue Bond was affirmed at “AA” rating. For additional information on City’s long-term obligation, please refer to Note 11 of the accompanying financial statements.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
21 The schedule of outstanding long-term debt with comparative amounts for the previous fiscal year is presented below.

Governmental
Activities
Business-type
Activities Total
2022 2021 2022 2021 2022 2021
Loans and Agreement Payable - $ - $ 24.1 $ 26.6 $ 24.1 $ 26.6 $ Lease Payable 9.8 11.5 - - 9.8 11.5
Capital Leases Payable 0.5 0.7 - - 0.5 0.7
Revenue Bonds 18.2 19.6 31.5 33.7 49.7 53.3
Pension Obligation Bonds 221.9 - 37.5 - 259.4 -
Unamortized Bond Premium 2.1 2.2 1.2 1.3 3.3 3.5
Total Outstanding Debt 252.5 $ 34.0 $ 94.3 $ 61.6 $ 346.8 $ 95.6 $

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund appropriations and transfers out were originally adopted at $162.1 million for Fiscal Year 2022. Final appropriations were increased by $255.9 million to $418.0 million. Among the budgetary increase, $11.4 million was due to continuing appropriations from the prior year’s capital projects and grant funded activities, and $2.3 million was for prior year committed purchases (encumbrances).

There was $242.2 million in supplemental funding and transfers approved by the City Council subsequent to the budget adoption due to the following reasons: (1) The personnel budget increased by $215.7 million in Fiscal Year 2022. In October 2021, the City issued pension obligation bonds totaling $272.0 million.

To record the bond issuance, the General Fund budget was increased by $210.6 million. In early 2022, negotiations were completed with the various labor groups. The General Fund budget was increased by $5.1 million to account for the respective salary and benefit changes approved by the City Council. (2) The operating budget increased by a total of $18.1 million. The primary increase is related to the issuance of the pension obligation bonds. The General Fund debt service principal and interest expense increased by $16.0 million. The Economic Development Department budget was increased by $0.5 million for a budget correction related to two purchase orders. The Police and Fire departments were increased by $0.5 million for grant related activity. (3) The capital outlay budget was increased by a net total of $8.5 million. There was $5.1 million approved for a property acquisition. An appropriation of $1.1 million was added for the purchase of an urban Search and Rescue Fire Apparatus. In addition, $1.5 million was appropriated for the Harrison Street Shelter Project and $715,000 for the Green Alleys Project. There were budgetary reductions for other projects that were completed or no longer needed.

Below is a summary of changes made to the adopted budget:

Original Budget 162,140,866 $
Continued Appropriations 11,361,568
Encumbrances 2,331,782
Supplemental Changes 242,199,180
Final Budget 418,033,395 $
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2022
22 At June 30, 2022, the General Fund expenditure and transfers out budget concluded the fiscal year with a net favorable variance of $27.0 million.

Included in the $27.0 million savings, $21.5 million was unspent funding for ongoing capital improvement projects. These funds will be carried over to the next fiscal year to complete the projects. Additionally, a total of $1.1 million will be carried forward from the operating budget for grants and other activity approved by the City Council. Encumbered purchase orders totaling $2.1 million will also be carried forward for activity that crosses fiscal years. After considering the noted items that will carry forward to the new fiscal year, there is a net savings of $2.3 million. Please refer to the Required Supplementary Information section of the accompanying financial statements for additional information.

Final Budget $ 418,033,395
Actual Expenditures 390,754,562
Transfers Out 269,916
Favorable Budget Variance $ 27,008,917
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need any additional financial information, please contact the City of Corona’s Finance Department at 400 South Vicentia Ave., Corona, California, 92882, phone number 951-279-3500 or e-mail [email protected].

BASIC FINANCIAL STATEMENTS
23 24

GOVERNMENT-WIDE FINANCIAL STATEMENTS
25 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 131,125,608 244,799,766 $ 375,925,374 $ Accounts receivable 14,990,285 3,606,259 18,596,544
Interest receivable 942,762 390,470 1,333,232
Due from other government 42,340,465 735,466 43,075,931 Lease receivable - due within one year 467,872 293,589 761,461 Inventories and prepaid items 537,034 2,958,168 3,495,202 Deposits - 149,338 149,338
Land held for resale 3,459,648 - 3,459,648
Restricted cash and investments 38,867,314 1,155,920 40,023,234 Total current assets 335,021,120 151,798,844 486,819,964 Noncurrent assets:

Restricted cash and investments - 509,441 509,441
Internal balances 174,731,905 (174,731,905) -
Lease receivable, due in more than one year 12,239,490 16,495,161 4,255,671 Long-term receivables - 26,872,408 26,872,408
Investment in joint venture - 13,211,515 13,211,515
Capital assets:

Non-depreciable 475,512,659 51,337,257 526,849,916
Depreciable, net 328,897,172 370,752,259 699,649,431
Intangible asset net 1,171,284 160,271 1,331,555
Total capital assets, net 805,581,115 422,249,787 1,227,830,902 Total noncurrent assets 1,019,424,918 265,494,509 1,284,919,427 Total assets 1,354,446,038 417,293,353 1,771,739,391

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 265,523,781 36,543,694 302,067,475 Other postemployment benefits related items 23,927,849 3,425,581 27,353,430 Deferred charges on refunding 417,968 - 417,968
Total deferred outflows of resources 289,869,598 39,969,275 329,838,873 City of Corona
Primary Government
June 30, 2022
Statement of Net Position
See accompanying Notes to the Basic Financial Statements. 26 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 9,417,949 18,191,724 27,609,673 Retention payable 702,777 806,972 1,509,749
Accrued interest payable 1,159,100 927,740 2,086,840
Unearned revenue 1,445,299 26,025,650 27,470,949
Deposits payable 692,930 13,461,696 14,154,626
Long-term debt - due within one year 27,287,342 8,124,972 35,412,314 Total current liabilities 86,701,124 21,543,027 108,244,151 Noncurrent liabilities:

Long-term liabilities - due in more than one year 87,552,799 258,239,202 345,792,001 Net pension liability 20,520,827 143,466,412 163,987,239 Net other postemployment benefits liability 10,647,773 74,375,221 85,022,994 Total noncurrent liabilities 476,080,835 118,721,399 594,802,234 Total liabilities 140,264,426 562,781,959 703,046,385

DEFERRED INFLOWS OF RESOURCES
Pension related items 8,856,631 67,374,119 76,230,750
Other postemployment benefits related items 3,546,157 24,770,080 28,316,237 Lease 4,446,314 12,485,459 16,931,773
Total deferred inflows of resources 16,849,102 104,629,658 121,478,760

NET POSITION
Net investment in capital assets 774,605,309 365,081,077 1,139,686,386 Restricted:

Capital projects - 37,622,892 37,622,892
Pension - 30,102,382 30,102,382
Debt service 509,441 124 509,565
Special projects and programs:

Community development projects - 6,012,278 6,012,278
Transportation and public works 255,544 28,902,625 29,158,169 Special assessment district projects - 28,773,861 28,773,861 Development projects 855,624 17,413,190 18,268,814
Other - 540,572 540,572
Total restricted 149,367,924 1,620,609 150,988,533
Unrestricted (deficit) 52,930,786 (66,552,586) (13,621,800) Total net position $ 300,149,100 976,904,019 $ 1,277,053,119 $ Primary Government
June 30, 2022
Statement of Net Position (Continued)
City of Corona
See accompanying Notes to the Basic Financial Statements. 27 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General government $ 6,179,740 35,184,855 $ 1,525,700 $ - $ Public safety - fire 31,961,693 3,952,023 2,116,648 -
Public safety - police 46,544,729 2,402,592 1,961,344 3,812,901 Public works and maintenance services 51,021,619 14,764,111 23,275,585 16,012,179 Community services 3,969,626 2,190,731 207,114 36,014
Planning and development 5,081,650 4,592,172 8,434,810 - Economic development 1,200,606 - - -
Interest and fiscal charges 3,857,494 - - -
Total governmental activities 178,822,272 34,081,369 37,521,201 19,861,094 Business-type Activities:

Water 63,431,423 64,960,384 1,975,850 1,162,535
Water reclamation 31,913,449 34,027,929 754,832 731,472 Electric 15,553,202 17,554,503 236,744 -
Transit services 2,906,505 246,155 2,055,243 -
Airport 458,143 434,761 40,119 -
Total business-type activities 114,262,722 117,223,732 5,062,788 1,894,007 Total primary government $ 151,305,101 293,084,994 $ 42,583,989 $ 21,755,101 $ Program Revenues
City of Corona
Statement of Activities
For the Year Ended June 30, 2022
28 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government $ - (27,479,415) $ (27,479,415) $
Public safety - fire (25,893,022) - (25,893,022)
Public safety - police (38,367,892) - (38,367,892)
Public works and maintenance services 3,030,256 - 3,030,256 Library and recreation services (1,535,767) - (1,535,767) Planning and development 7,945,332 - 7,945,332
Economic development - (1,200,606) (1,200,606)
Interest and fiscal charges (3,857,494) - (3,857,494)
Total governmental activities - (87,358,608) (87,358,608) Business-type Activities:

Water 4,667,346 - 4,667,346
Water reclamation 3,600,784 - 3,600,784
Electric 2,238,045 - 2,238,045
Transit services - (605,107) (605,107)
Airport 16,737 - 16,737
Total business-type activities 9,917,805 - 9,917,805
Total primary government 9,917,805 (87,358,608) (77,440,803) General revenues and transfers:

General revenues:

Taxes:

Property taxes, levied for general purpose 55,400,381 - 55,400,381 Transient occupancy taxes 3,204,109 - 3,204,109
Sales and use taxes 89,912,163 - 89,912,163
Franchise taxes 6,911,392 - 6,911,392
Business license taxes 2,446,841 - 2,446,841
Total taxes - 157,874,886 157,874,886
Investment loss (1,537,234) (3,486,908) (5,024,142)
Other income 7,519,310 - 7,519,310
Gain on sale of capital asset - 120,753 120,753
Total general revenues (3,486,908) 163,977,715 160,490,807 Transfers (109,748) 109,748 -
Changes in net position 6,321,149 76,728,855 83,050,004 Net position - beginning of year, as restate (Note 18) 293,827,951 900,175,164 1,194,003,115 Net position - end of year $ 300,149,100 976,904,019 $ 1,277,053,119 $ Net (Expenses) Revenues and
Changes in Net Position
City of Corona
Statement of Activities (Continued)
For the Year Ended June 30, 2022
29 30

FUND FINANCIAL STATEMENTS
31 32

GOVERNMENTAL FUND FINANCIAL STATEMENTS
33 Low Mod
Income Housing
Asset Development
General Capital Projects Special Revenue
Fund Fund Funds
ASSETS
Cash and investments $ 86,874,072 $ 18,510,312 $ 27,341,363 Accounts receivable 1,982,090 - -
Interest receivable 625,651 69,804 70,039
Due from other governments 22,957,291 - -
Due from other funds 14,711,627 - -
Long-term receivables 9,942,191 2,099,041 1,189,660
Lease receivable - 12,707,362 -
Loans receivable - 7,047,242 328,332
Advance to other funds 185,155,991 - -
Inventories and prepaid items 328,497 - -
Land held for resale - 1,998,648 -
Restricted assets:

Cash and investments with fiscal agents 30,000,124 8,064,885 58,059 Total assets $ 357,441,746 $ 45,633,082 $ 28,987,453

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 10,523,427 $ 4,292 $ 252,398 Retention payable 28,630 - 41,926
Due to other funds - - -
Advance from other funds - - 7,478,374
Deposit payable 9,594,467 5,898 3,801,565
Unearned revenue 2,129,412 8,000,000 -
Total liabilities 22,275,936 8,010,190 11,574,263

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,510,330 - -
Leases 12,485,459 - -
Total deferred inflows of resources 13,995,789 - -
Fund Balances:

Nonspendable 187,583,529 - -
Restricted 30,102,506 37,622,892 17,413,190
Committed 48,121,481 - -
Assigned 55,140,510 - -
Unassigned (deficit) 221,995 - -
Total fund balances 321,170,021 37,622,892 17,413,190
Total liabilities, deferred inflows of
resources, and fund balances $ 357,441,746 $ 45,633,082 $ 28,987,453 (Continued)
City of Corona
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 34 Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments $ 200,846,969 68,121,222 $
Accounts receivable 3,532,408 1,550,318
Interest receivable 942,762 177,268
Due from other governments 42,340,465 19,383,174
Due from other funds 14,711,627 -
Long-term receivables 14,948,297 1,717,405
Lease receivable 12,707,362 -
Loans receivable 11,924,111 4,548,537
Advance to other funds 185,155,991 -
Inventories and prepaid items 328,497 -
Land held for resale 3,459,648 1,461,000
Restricted assets:

Cash and investments with fiscal agents 38,867,314 744,246 Total assets $ 529,765,451 97,703,170 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 15,180,498 4,400,381 $ Retention payable 806,972 736,416
Due to other funds 14,711,627 14,711,627
Advance from other funds 9,075,037 1,596,663
Deposit payable 13,461,696 59,766
Unearned revenue 26,025,650 15,896,238
Total liabilities 79,261,480 37,401,091

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 11,724,986 10,214,656
Leases 12,485,459 -
Total deferred inflows of resources 24,210,445 10,214,656 Fund Balances:

Nonspendable 187,583,529 -
Restricted 142,891,511 57,752,923
Committed 48,121,481 -
Assigned 55,779,157 638,647
Unassigned (deficit) (8,304,147) (8,082,152)
Total fund balances 426,293,526 50,087,423
Total liabilities, deferred inflows of
resources, and fund balances $ 529,765,451 97,703,170 $ (Concluded)
City of Corona
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 35 36
Total Fund Balances - Total Governmental Funds $ 426,293,526 Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets, net of $30,428 reported in Internal Service Funds 475,482,231 $ Depreciable assets, net of $3,012,017 reported in Internal Service Funds 325,885,155 Lease asset, net of $1,084,937 reported in Internal Service Funds 86,347 801,453,733 11,724,986
254,680,251
Net pension liability, net of $(6,089,100) reported in Internal Service Funds (137,377,312) (64,746,109)
22,866,687
Net OPEB liabilities, net of $(3,298,425) reported under Internal Service Funds (71,076,796) (23,671,566)
9,674,228
(896,546)
Unamortized deferred charges on refunding 417,968
Long-term debt, net of $(10,550,252) reported under Internal Service Funds (239,898,885) Unamortized bond premium (2,082,196)
(10,457,950)
Net position of governmental activities $ 976,904,019
Compensated absences, net of $(425,890) reported under Internal Service Funds Some of the City's receivables for property taxes, operating and capital grant reimbursements will be collected after year end, but are not available soon enough to pay for current-period expenditures, and therefore, are reported as unavailable revenues in the governmental funds.

Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension related deferred outflows of resources, net of $10,843,530 reported in Internal Service Funds Pension related deferred inflows of resources, net of $2,628,010 reported in Internal Service Funds Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

OPEB related deferred outflows of resources, net of $1,061,162 reported under Internal Service Funds OPEB related deferred inflows of resources, net of $(1,098,514) reported under Internal Service Funds Internal service funds are used by the City to charge the cost of materials and supplies, maintenance and repair of vehicles and equipment and printing services provided to the various departments of the City. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. Internal Service funds net position, net of $1,349,049 reported in Business-type activities.

Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds.

Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly are not reported as fund liabilities. All liabilities, both current and long-term are reported in the Statement of Net Position. Those liabilities consist of:

Amount reported in government-wide statement of position:

City of Corona
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:

See accompanying Notes to the Basic Financial Statements. 37 Low Mod
Income Housing
Asset Development
General Capital Projects Special Revenue
Fund Fund Funds
REVENUES:

Taxes $ 157,874,886 $ - $ -
Licenses, and permits 2,521,625 - 3,271,580
Intergovernmental 4,027,178 - -
Special assessments 573,201 - -
Investment earnings (5,693,460) 3,684,213 (950,844)
Fines and penalties 1,135,619 - -
Current services 12,903,009 - -
Payment in lieu of services 6,060,819 - 151,680
Other revenues 12,219,443 4,117,244 -
Total revenues 191,622,320 7,801,457 2,472,416
EXPENDITURES:

Current:

General government 56,625,834 - -
Public safety- fire 88,959,047 - 7,185
Public safety- police 161,286,250 - 651
Public works and maintenance services 26,826,604 - 45,531 Community services 14,273,997 - 1,188
Planning and development 12,003,036 335,571 -
Economic development 2,369,713 - -
Capital outlay 8,054,361 - 1,308,197
Debt service:

Principal retirement 17,048,744 13,920 -
Interest and fiscal charges 3,306,976 2,238 -
Total expenditures 390,754,562 351,729 1,362,752

REVENUES OVER
(UNDER) EXPENDITURES (199,132,242) 7,449,728 1,109,664
OTHER FINANCING SOURCES (USES):

Transfers in 1,197,681 - -
Transfers out (269,916) - -
Proceeds from Long term debt 223,947,991 227,697 -
Total other financing sources (uses) 224,875,756 227,697 - NET CHANGE IN FUND BALANCES 25,743,514 7,677,425 1,109,664 FUND BALANCES:

Beginning of year, as restated (Note 18) 295,426,507 29,945,467 16,303,526 End of year $ 321,170,021 $ 37,622,892 $ 17,413,190
(Continued)
For the Year Ended June 30, 2022
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Corona
See accompanying Notes to the Basic Financial Statements. 38 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:

Taxes $ 157,874,886 - $
Licenses, and permits 6,577,476 784,271
Intergovernmental 32,729,863 28,702,685
Special assessments 9,432,946 8,859,745
Investment earnings (5,003,021) (2,042,930)
Fines and penalties 1,181,815 46,196
Current services 23,562,912 10,659,903
Payment in lieu of services 6,212,499 -
Other revenues 17,116,969 780,282
Total revenues 249,686,345 47,790,152
EXPENDITURES:

Current:

General government 56,625,834 -
Public safety- fire 88,966,232 -
Public safety- police 161,926,977 640,076
Public works and maintenance services 22,115,936 48,988,071 Community services 14,401,529 126,344
Planning and development 12,786,610 448,003
Economic development 2,369,713 -
Capital outlay 39,909,543 30,546,985
Debt service:

Principal retirement 17,173,832 111,168
Interest and fiscal charges 3,338,137 28,923
Total expenditures 446,486,478 54,017,435

REVENUES OVER
(UNDER) EXPENDITURES (196,800,133) (6,227,283)
OTHER FINANCING SOURCES (USES):

Transfers in 1,467,597 269,916
Transfers out (1,467,597) (1,197,681)
Proceeds from Long term debt 225,994,225 1,818,537
Total other financing sources (uses) 225,994,225 890,772 NET CHANGE IN FUND BALANCES 29,194,092 (5,336,511)
FUND BALANCES:

Beginning of year, as restated (Note 18) 55,423,934 397,099,434 End of year $ 426,293,526 50,087,423 $
(Concluded)
City of Corona
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 39 40
Net change in fund balances - total governmental funds: $ 29,194,092 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay expenditures, net of $793,564 reported in Internal Service Funds 32,814,878 $ Capital contribution from developer 829,631
Transfer from business-type activities 109,748
Depreciation and amortization expense, net of $1,306,774 reported in Internal Service Funds (12,505,912) 21,248,345 4,082,323
Change in compensated absences, net of $(106,025) reported in internal service funds (1,693,029) Pension expense, net of pension contribution made after measurement date 227,222,538 OPEB expense, net of OPEB contribution made after measurement date 6,044,702 Accrued interest for long-term debt (638,230)
Deferred charges amortization (29,855)
Issuance of long-term debt, net of $(10,656,635) reported in Internal Service Funds (225,994,225) Principal repayment of long-term debt, net of $1,100,282 reported in Internal Service Funds 17,173,832 Bond premium amortization 148,728
(30,366)
Change in net position of governmental activities $ 76,728,855 Some 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:

Internal service funds are used by management to charge the costs of certain activities, such as workers' compensation self-insurance, general liability self-insurance, vehicles, and technology to individual funds. The net revenue (expense) of these internal service funds are reported as governmental activities (net of $920,433) allocated to business-type activities).

City of Corona
in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2022
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those capital assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period:

Certain accrued revenues such as grants do not provide current financial resources and therefore, are not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during the current period.

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes See accompanying Notes to the Basic Financial Statements. 41 42

PROPRIETARY FUND FINANCIAL STATEMENTS
43 Water
Water Reclamation Electric
ASSETS
Current assets:

Cash and investments $ 75,008,149 29,379,363 $ 24,582,387 $ Accounts receivable 4,197,207 8,660,116 2,109,590
Interest receivable 121,177 196,931 66,029
Due from other governments 256,308 40,008 -
Lease receivable 293,589 - -
Inventories and prepaid items 2,958,168 - -
Deposits - - 149,338
Restricted cash and investments 312,725 10,897 576,754
Total current assets 41,981,446 79,453,192 27,484,098
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable 4,255,671 - -
Advances to other funds - 3,614,688 1,596,663
Investment in joint venture - 13,211,515 -
Capital assets:

Capital assets, not being depreciated 39,079,747 10,402,637 1,854,873 Capital assets, being depreciated, net 231,004,522 128,772,174 8,497,881 Intangible asset, net 96,359 63,912 -
Total capital assets 270,180,628 139,238,723 10,352,754 Total noncurrent assets 156,574,367 274,436,299 11,949,417 Total assets 236,027,559 316,417,745 39,433,515

DEFERRED OUTFLOW OF RESOURCES
Pension related items 19,540,145 12,544,510 3,898,501
OPEB related items 1,868,516 1,195,344 302,757
Total deferred outflow of resources $ 13,739,854 21,408,661 $ 4,201,258 $ (Continued)
Business-Type Activities
Enterprise Funds
Corona Utility Authority
City of Corona
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 44 Water
Water reclamation Electric

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 2,592,004 4,840,807 $ 1,218,781 $ Retention payable 248,043 454,734 -
Accrued interest 328,947 684,963 142,250
Unearned revenue 40,371 664,402 -
Deposits payable 20,000 94,336 578,214
Claims and judgments, due within one year - - -
Compensated absences, due within one year 311,636 562,634 121,061 Lease payable, due within one year - 3,317 -
Bonds and loan payable, due within one year 1,679,486 5,095,281 283,659 Total current liabilities 12,400,474 5,220,487 2,343,965 Noncurrent liabilities:

Advance from other funds 65,808,682 110,434,350 5,049,273 Claims and judgments, due in more than one year - - -
Compensated absences, due in more than one year 139,327 152,281 - Lease payable, due in more than one year - - -
Bonds and loan payable, due in more than one year 28,411,651 53,607,157 4,304,482 Net pension liability 7,044,272 10,972,616 2,189,173
Net other postemployment benefits liability 3,715,501 5,807,930 941,064 Total noncurrent liabilities 180,974,334 105,119,433 12,483,992 Total liabilities 110,339,920 193,374,808 14,827,957

DEFERRED INFLOWS OF RESOURCES
Pension related items 4,735,697 3,040,254 944,830
Other postemployment benefits related items 1,934,286 1,237,418 313,414 Lease - 4,446,314 -
Total deferred inflows of resources 4,277,672 11,116,297 1,258,244

NET POSITION
Net investment in capital assets 231,832,147 120,418,494 10,352,754 Restricted:

Debt service 509,441 - -
Transportation and public works - - -
Development projects 840,304 15,320 -
Unrestricted (deficit) 13,381,582 (98,512,166) 17,195,818 Total net position $ 135,149,821 133,335,301 $ 27,548,572 $ (Continued)
Corona Utility Authority
June 30, 2022
Business-Type Activities
Enterprise Funds
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 45 Governmental
Activities
Total Enterprise Internal
Nonmajor Funds Service Funds
ASSETS
Current assets:

Cash and investments $ 131,125,608 2,155,709 $ 43,952,797 $ Accounts receivable 23,372 14,990,285 73,851
Interest receivable 6,333 390,470 -
Due from other governments 439,150 735,466 -
Lease receivable - 293,589 -
Inventories and prepaid items - 2,958,168 208,537
Deposits - 149,338 -
Restricted cash and investments 255,544 1,155,920 -
Total current assets 2,880,108 151,798,844 44,235,185
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable - 4,255,671 -
Advances to other funds - 5,211,351 -
Investment in joint venture - 13,211,515 -
Capital assets:

Capital assets, not being depreciated - 51,337,257 30,428 Capital assets, being depreciated, net 2,477,682 370,752,259 3,012,017 Intangible asset, net - 160,271 1,084,937
Total capital assets 2,477,682 422,249,787 4,127,382
Total noncurrent assets 445,437,765 2,477,682 4,127,382 Total assets 597,236,609 5,357,790 48,362,567

DEFERRED OUTFLOW OF RESOURCES
Pension related items 560,538 36,543,694 10,843,530
OPEB related items 58,964 3,425,581 1,061,162
Total deferred outflow of resources $ 619,502 $ 39,969,275 $ 11,904,692 (Continued)
Enterprise Funds
Business-Type Activities
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 46 Governmental
Activities
Total Enterprise Internal
Nonmajor Funds Service Funds

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 9,417,949 766,357 $ 3,011,226 $ Retention payable 702,777 - -
Accrued interest 1,159,100 2,940 31,194
Unearned revenue 1,445,299 740,526 -
Deposits payable 692,930 380 -
Claims and judgments, due within one year - - 3,332,678 Compensated absences, due within one year 1,004,936 9,605 287,264 Lease payable, due within one year 3,317 - 228,772
Bonds and loan payable, due within one year 7,116,719 58,293 618,570 Total current liabilities 1,578,101 21,543,027 7,509,704 Noncurrent liabilities:

Advance from other funds 181,292,305 - -
Claims and judgments, due in more than one year - - 18,778,693 Compensated absences, due in more than one year 344,919 53,311 138,626 Lease payable, due in more than one year - - 316,245
Bonds and loan payable, due in more than one year 87,207,880 884,590 9,386,665 Net pension liability 20,520,827 314,766 6,089,100
Net other postemployment benefits liability 10,647,773 183,278 3,298,425 Total noncurrent liabilities 1,435,945 300,013,704 38,007,754 Total liabilities 321,556,731 3,014,046 45,517,458

DEFERRED INFLOWS OF RESOURCES
Pension related items 135,850 8,856,631 2,628,010
Other postemployment benefits related items 61,039 3,546,157 1,098,514 Lease 4,446,314 - -
Total deferred inflows of resources 16,849,102 196,889 3,726,524

NET POSITION
Net investment in capital assets 2,477,682 365,081,077 3,582,365 Restricted:

Debt service 509,441 - -
Transportation and public works 255,544 255,544 -
Development projects 855,624 - -
Unrestricted (deficit) (67,901,635) 33,131 7,440,912
Total net position $ 298,800,051 2,766,357 $ 11,023,277 $ Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds 1,349,049 Net position of business-type activities $ 300,149,100
(Concluded)
June 30, 2022
Business-Type Activities
Enterprise Funds
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 47 Water
Water Reclamation Electric
OPERATING REVENUES:

Service charges $ 31,610,482 60,025,405 $ 16,292,045 $
Intergovernmental - - -
Fees and permits 3,761,147 1,886,696 -
Fines and penalties 231,125 129,884 19,823
Other revenues 942,707 400,867 1,242,635
Total operating revenues 64,960,384 34,027,929 17,554,503 OPERATING EXPENSES:

Personnel services 8,819,933 4,069,158 2,272,264
Contractual services 4,490,407 2,142,722 563,575
Materials and supplies 31,321,630 15,532,558 2,295,610
Utilities 6,037,175 2,185,013 9,852,188
Depreciation and amortization 8,954,288 5,859,874 399,433 Claim expense - - -
Total operating expenses 59,623,433 29,789,325 15,383,070 OPERATING INCOME (LOSS) 5,336,951 4,238,604 2,171,433
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 1,975,850 754,832 236,744
Investment loss (833,872) (2,731,404) (870,917)
Interest expense (4,393,518) (2,447,012) (229,491)
Gain on sale of capital assets - - -
Gain on investment in joint venture - 1,046,197 -
Total nonoperating revenues (expenses) (3,251,540) (3,377,387) (863,664) CAPITAL CONTRIBUTIONS:

Capital grants and contributions 1,162,535 731,472 -
Capital contributions (109,748) - -
Total capital contributions 1,052,787 731,472 -
CHANGE IN NET POSITION 3,138,198 1,592,689 1,307,769
NET POSITION:

Beginning of year, as restated (Note 18) 130,197,103 133,557,132 26,240,803 End of year $ 133,335,301 $ 135,149,821 $ 27,548,572
Enterprise Funds
Corona Utility Authority
For the Year Ended June 30, 2022
Business-Type Activities
City of Corona
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 48 Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds
OPERATING REVENUES:

Service charges $ 107,927,932 - $ 22,375,706 $
Intergovernmental 2,055,243 2,055,243 -
Fees and permits 5,686,233 38,390 -
Fines and penalties 403,982 23,150 -
Other revenues 3,205,585 619,376 722,327
Total operating revenues 119,278,975 2,736,159 23,098,033 OPERATING EXPENSES:

Personnel services 15,412,493 251,138 4,564,907
Contractual services 8,995,739 1,799,035 4,599,578
Materials and supplies 49,607,666 457,868 3,183,428
Utilities 18,241,935 167,559 1,685,917
Depreciation 15,889,833 676,238 1,306,774
Claim expense - - 6,780,657
Total operating expenses 108,147,666 3,351,838 22,121,261 OPERATING INCOME (LOSS) 11,131,309 (615,679) 976,772
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 40,119 3,007,545 -
Investment earnings (96,912) (4,533,105) -
Interest expense (12,810) (7,082,831) (160,116)
Gain on sale of capital assets - - 120,753
Gain on investment in joint venture - 1,046,197 -
Total nonoperating revenues (expenses) (7,562,194) (69,603) (39,363) TRANSFERS AND CAPITAL CONTRIBUTIONS:

Capital grants and contributions 1,894,007 - -
Capital contributions (109,748) - -
Total capital contributions and transfers 1,784,259 - - CHANGE IN NET POSITION 5,353,374 (685,282) 937,409
NET POSITION:

Beginning of year 3,451,639 293,446,677 10,085,868
End of year 2,766,357 $ 298,800,051 $ 11,023,277 $
Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds 967,775 Changes in net position of business-type activities $ 6,321,149 Business-Type Activities
Enterprise Funds
For the Year Ended June 30, 2022
City of Corona
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 49 Water
Water reclamation Electric
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 64,204,444 $ 34,205,610 $ 17,304,475 $ Cash paid to suppliers for goods and services (42,555,347) (18,797,579) (13,101,096) Cash paid to employees for services (30,108,330) (17,675,774) (6,587,514) Cash paid for insurance or claims - - -
Net cash (used in) operating activities (8,459,233) (2,267,743) (2,384,135)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental grant received 2,156,876 775,275 236,744 Proceed from pension obligation bonds 21,833,912 12,257,298 4,886,857 Principal paid on pension obligation bonds (1,334,629) (749,244) (298,716) Interest paid on pension obligation bonds (214,584) (120,465) (48,028) Net cash provided by noncapital financing activities 22,441,575 12,162,864 4,776,857

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (8,620,756) (6,236,165) (70,280) Proceed from sale of capital assets - - -
Repayment of capital advances from other funds - - (1,020,217) Receipt of repayment for advances to other funds - - 260,948 Principal paid on long-term debt (3,720,679) (936,773) - Interest paid on long-term debt (4,264,200) (2,323,256) (194,589) Net cash (used in) capital and related financing activities (9,496,194) (16,605,635) (1,024,138) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment loss (2,691,985) (865,659) (865,078)
Investment in joint venture - (1,903,190) -
Net cash (used in) investing activities (4,595,175) (865,659) (865,078) Net increase (decrease) in cash and cash equivalents (3,488,952) (4,196,248) 503,506 CASH AND CASH EQUIVALENTS:

Beginning of year 33,181,040 79,724,735 24,655,635
End of year $ 29,692,088 $ 75,528,487 $ 25,159,141
CASH AND CASH EQUIVALENTS:

Cash and investment 29,379,363 $ 75,008,149 $ 24,582,387 $ Restricted cash and investment, current 312,725 10,897 576,754 Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 75,528,487 29,692,088 $ 25,159,141 $ NONCASH ITEMS:

Capital contribution (109,748) $ - $ $ -
(Continued)
City of Corona
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
Enterprise Funds
Corona Utility Authority
See accompanying Notes to the Basic Financial Statements. 50 Water
Water reclamation Electric

INCOME (LOSS) TO NET CASH (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) 5,336,951 $ 4,238,604 $ 2,171,433 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 5,859,874 8,954,288 399,433
Change in assets and liabilities:
(Increase) decrease in accounts receivable (280,094) 177,681 (265,067) (Increase) decrease in due from other government - - -
(Increase) decrease in inventories and prepaid items 87,234 - 21 (Increase) decrease in deposits - - 9,028
(Increase) decrease in lease receivable 316,012 - -
(Increase) decrease in deferred outflows
of resources related to pension (16,807,409) (10,829,917) (3,342,999) (Increase) decrease in deferred outflows
of resources related to OPEB (657,283) (417,560) (104,184) Increase (decrease) in accounts payable and accrued liabilities (773,252) 805,422 (450,092) Increase (decrease) in deposits payable (372,900) - 15,039 Increase (decrease) in unearned revenue - - -
Increase (decrease) in compensated absences (4,007) 60,373 58,287 Increase (decrease) in claims payable - - -
Increase (decrease) in net pension liabilities (8,264,221) (5,025,442) (1,721,228) Increase (decrease) in OPEB liabilities (861,440) (487,495) (213,606) Increase (decrease) in deferred inflows
of resources related to pension 4,735,697 3,040,254 944,830 Increase (decrease) in deferred inflows
of resources related to OPEB 550,149 310,463 114,970
Increase (decrease) in deferred inflows
of resources related to leases (418,958) - -
Total adjustment (13,796,184) (6,506,347) (4,555,568)
Net cash (used in) operating activities $ (2,267,743) (8,459,233) $ (2,384,135) $ (Continued)
Enterprise Funds
Corona Utility Authority
Proprietary Funds
Business-Type Activities
City of Corona
Statement of Cash Flows (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 51 Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 3,124,467 $ 118,838,996 $ 23,090,634 $ Cash paid to suppliers for goods and services (2,785,552) (77,239,574) (7,036,696) Cash paid to employees for services (1,260,965) (55,632,583) (15,164,805) Cash paid for insurance or claims - - (5,992,027)
Net cash (used in) operating activities (14,033,161) (922,050) (5,102,894)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Intergovernmental grant received 5,224 3,174,119 644
Proceed from pension obligation bonds 1,004,270 39,982,337 10,656,635 Principal paid on pension obligation bonds (61,387) (2,443,976) (651,400) Interest paid on pension obligation bonds (9,870) (392,947) (106,435) Net cash provided by noncapital financing activities 40,319,533 938,237 9,899,444

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (38,081) (14,965,282) (547,540) Proceed from sale of capital assets - - 129,657
Repayment of capital advances from other funds - (1,020,217) - Repayment of advances to other funds - 260,948 -
Principal paid on long-term debt - (4,657,452) (448,882) Interest paid on long-term debt - (6,782,045) (22,487)
Net cash (used in) capital and related financing activities (27,164,048) (38,081) (889,252) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment loss (95,704) (4,518,426) -
Investment in joint venture - (1,903,190) -
Net cash (used in) investing activities (6,421,616) (95,704) - Net increase (decrease) in cash and cash equivalents (7,299,292) (117,598) 3,907,298 CASH AND CASH EQUIVALENTS:

Beginning of year 2,528,851 140,090,261 40,045,499
End of year $ 132,790,969 2,411,253 $ 43,952,797 $
CASH AND CASH EQUIVALENTS:

Cash and investment 2,155,709 $ 131,125,608 $ 43,952,797 $ Restricted cash and investment, current 255,544 1,155,920 - Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 132,790,969 2,411,253 $ 43,952,797 $ NONCASH ITEMS:

Capital contribution $ (109,748) - $ - $
(Continued)
City of Corona
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 52 Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds

INCOME (LOSS) TO NET CASH (USED IN)
OPERATING ACTIVITIES:

Operating income (loss) (615,679) $ 11,131,309 $ 976,772 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 15,889,833 676,238 1,306,774
Change in assets and liabilities:
(Increase) decrease in accounts receivable (16,018) (383,498) (7,399) (Increase) decrease in due from other government 238,968 238,968 - (Increase) decrease in inventories and prepaid items - 87,255 752,659 (Increase) decrease in deposits - 9,028 -
(Increase) decrease in lease receivable - 316,012 -
(Increase) decrease in deferred outflows
of resources related to pension (426,223) (31,406,548) (9,430,732) (Increase) decrease in deferred outflows
of resources related to OPEB (10,997) (1,190,024) (451,847) Increase (decrease) in accounts payable and accrued liabilities (361,491) (779,413) 1,708,503 Increase (decrease) in deposits payable - (357,861) -
Increase (decrease) in unearned revenue 165,358 165,358 - Increase (decrease) in compensated absences (1,285) 113,368 106,025 Increase (decrease) in claims payable - - 788,630
Increase (decrease) in net pension liabilities (630,734) (15,641,625) (3,856,158) Increase (decrease) in OPEB liabilities (84,605) (1,647,146) (27,022) Increase (decrease) in deferred inflows
of resources related to pension 135,850 8,856,631 2,628,010 Increase (decrease) in deferred inflows
of resources related to OPEB 8,568 984,150 402,891
Increase (decrease) in deferred inflows
of resources related to leases - (418,958) -
Total adjustment (306,371) (25,164,470) (6,079,666)
Net cash (used in) operating activities $ (14,033,161) (922,050) $ (5,102,894) $ (Concluded)
Enterprise Funds
Proprietary Funds
Business-Type Activities
City of Corona
Statement of Cash Flows (Continued)
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 53 54

FIDUCIARY FUND FINANCIAL STATEMENTS
55 56
Private-Purpose
Trust Fund
Successor
Agency Trust Custodial
Fund Funds
ASSETS
Cash and investments $ 2,722,262 4,841,812 $
Interest receivable 7,151 -
Due from other governments 191,648 -
Restricted:

Cash and investments with fiscal agent 11,967,986 6,457,864 Total assets 14,889,047 11,299,676

DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 69,413
OPEB related items - 49,704
Total deferred outflows of resources - 119,117

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 268 701
Retention payable - 3,203
Interest payable 608,932 -
Deposits payable 62,059 -
Due to other governments - 924,790
Bonds payable, due within one year - 3,954,458
Noncurrent liabilities:

Bonds payable, due in more than one year 34,624,944 -
Net pension liability - 38,978
Net OPEB liability - 154,495
Total liabilities 62,327 40,310,501

DEFERRED INFLOWS OF RESOURCES
Pension related 16,823
OPEB related items - 51,453
Total deferred inflows of resources - 68,276

NET POSITION
Held for:

Held in trust - (28,959,984)
Organization and other governments 14,826,720 -
Total net position (deficit) $ 14,826,720 (28,959,984) $ City of Corona
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 57 Private-Purpose
Trust Fund
Successor
Agency Trust Custodial
Fund Funds
ADDITIONS:

Redevelopment property tax trust fund $ 9,183,265 $ -
Assessment revenue - 7,222,042
Investment earning 6,488 (78,753)
Other revenue 90 -
Total additions 7,143,289 9,189,843
DEDUCTIONS:

Administrative expenses 13,259 -
Developer payments 1,617,107 46,921
Payments for district expenses - 385,638
Payments for district debt service 2,511,897 6,474,808
Total deductions 4,142,263 6,907,367
Change in net position 235,922 5,047,580
NET POSITION :

Beginning of year (34,007,564) 14,590,798
End of year $ (28,959,984) $ 14,826,720
City of Corona
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 58 59

NOTES TO THE BASIC FINANCIAL STATEMENTS
60 City of Corona
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
61 Note 1 – Summary of Significant Accounting Policies ...................................................................................... 63 A. Financial Reporting Entity .................................................................................................................. 63 B. Basis of Accounting and Measurement Focus .................................................................................... 64 C. Cash, Cash Equivalents and Investments ............................................................................................ 67 D. Cash and Investments with Fiscal Agents ........................................................................................... 68 E. Fair Value Measurement ..................................................................................................................... 68 F. Interfund Transactions......................................................................................................................... 68 G. Inventories and Prepaid Items ............................................................................................................. 69 H. Lease Receivables ............................................................................................................................... 69 I. Capital Assets ...................................................................................................................................... 69 J. Deferred Outflows and Inflows of Resources ..................................................................................... 71 K. Unearned and Unavailable Revenue ................................................................................................... 71 L. Compensated Absences ....................................................................................................................... 71 M. Claims Payable .................................................................................................................................... 71 N. Lease Liabilities .................................................................................................................................. 72 O. Long-Term Debt .................................................................................................................................. 72 P. Pensions............................................................................................................................................... 72 Q. Other Postemployment Benefits (“OPEB”) ........................................................................................ 73 R. Property Taxes .................................................................................................................................... 73 S. Net Position and Fund Balances .......................................................................................................... 74 T. Spending Policy .................................................................................................................................. 75 U. Use of Estimates .................................................................................................................................. 76 V. Implementation of New GASB Pronouncement ................................................................................. 76 Note 2 – Stewardship, Compliance and Accountability .................................................................................... 76 Note 3 – Cash and Investments ............................................................................................................................ 76 A. Deposits ............................................................................................................................................... 77 B. Investments ......................................................................................................................................... 78 C. Local Agency Investment Fund (“LAIF”) .......................................................................................... 78 D. Fair Value Measurement ..................................................................................................................... 79 E. Risk Disclosures .................................................................................................................................. 79 Note 4 – Investment in Joint Venture ................................................................................................................. 81 Note 5 – Land Held for Resale ............................................................................................................................. 82 Note 6 – Long-Term Receivables ......................................................................................................................... 82 Note 7 – Lease Receivables ................................................................................................................................... 83 Note 8 – Interfund Transactions .......................................................................................................................... 84 A. Government-Wide Financial Statements ............................................................................................ 84 B. Fund Financial Statements .................................................................................................................. 87 City of Corona
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
62 Note 9 – Capital Assets ......................................................................................................................................... 89 A. Governmental Activities ..................................................................................................................... 89 B. Business-Type Activities .................................................................................................................... 90 C. Infrastructure Assets ............................................................................................................................ 91 D. Construction in Progress and Capital Project Commitments .............................................................. 91 Note 10 – Compensated Absences ....................................................................................................................... 92 Note 11 – Long-Term Liabilities .......................................................................................................................... 92 A. Governmental Activities ..................................................................................................................... 92 B. Business-Type Activities..................................................................................................................... 95 C. Fiduciary Funds ................................................................................................................................... 99 D. Non-City Obligations .......................................................................................................................... 101 E. Conduit Debt Obligations.................................................................................................................... 103 F. Bond Requirement .............................................................................................................................. 103 Note 12 – Risk Management ................................................................................................................................ 103 A. Workers’ Compensation Insurance ..................................................................................................... 103 B. General Liability Insurance ................................................................................................................. 104 C. Property Losses (Excluding Earthquake or Flood) ............................................................................. 104 D. Adequacy of Coverage ........................................................................................................................ 104 Note 13 – Pension Plan ......................................................................................................................................... 104 A. General Information about the Pension Plan ....................................................................................... 104 B. Net Pension Liability ........................................................................................................................... 106 C. Changes in the Net Pension Liability .................................................................................................. 108 D. Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................ 110 Note 14 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 112 A. General Information about the OPEB Plan ......................................................................................... 112 B. Net OPEB Liability ............................................................................................................................. 113 C. Changes in the Net OPEB Liability .................................................................................................... 114 Note 15 – Classification of Fund Balances .......................................................................................................... 116 Note 16 – Commitments and Contingencies ....................................................................................................... 116 Note 17 – Tax Abatement ..................................................................................................................................... 117 Note 18 – Restatement of Beginning Net Position and Fund Balance .............................................................. 118 Note 19 – Net Investment in Capital Assets ........................................................................................................ 119 City of Corona
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
63 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Corona, California, (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies:

A. Financial Reporting Entity
The City of Corona was incorporated in 1896 under the general laws of the State of California. The City operates under a Council-Manager form of government. Five Corona citizens make up the Corona City Council and each is elected to a four-year term of office. The Mayor is appointed annually by and from the City Council. The City provides full services to its citizens, including: public safety (police and fire), streets, electric, public library, recreation, parks and other public facilities, planning and zoning, public transportation (Dial-A-Ride and Corona Cruiser programs), housing and economic development programs. Water and water reclamation services are provided through the legally separate Corona Utility Authority, which functions as a department of the City of Corona.

The financial statements include the financial activities of the City of Corona, the primary government, and its component units, which are the Corona Public Financing Authority (the “CPFA”), the Corona Utility Authority (the “Authority”), and the Corona Housing Authority (the “CHA”). Financial information for the City and these component units are accounted for in the accompanying financial statements in accordance with principles defining the governmental reporting entity adopted by the Governmental Accounting Standards Board. The City Council members, in separate session, serve as the governing board of the CPFA, the Authority, and the CHA, as such, these entities are presented on a blended basis.

Blended Component Unit
Management determined that the following component unit should be blended based on the criteria above:

Although the following is legally separate from the City, it has been “blended” as though it is part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

The Corona Public Financing Authority (the “CPFA”) is a joint powers authority organized under Section 6500 et seq. of the California Government Code on June 21, 1989, between the City and the former Corona Redevelopment Agency (the “Agency”) for the purpose of acting as a vehicle for various financing activities of the City and the Agency. Upon dissolution of the former Corona Redevelopment Agency, the Authority becomes a public body duly organized and existing under the Amended and Restated Join Exercise of Powers Agreement, dated February 6, 2013, by and among the City, the Corona Housing Authority and the Successor Agency to the Corona Redevelopment Agency, and under the Constitution and laws of the State. The Authority was formed for the purpose of assisting the City in the financing and refinancing of public capital improvements by exercising the powers referred to in the JPA Agreement, including the power to issue bonds to pay the costs pf public improvements. The CPFA's Board of Directors is the Corona City Council. The funds of the CPFA have been included in the governmental activities in the financial statements. Funds related to debt issued for proprietary activities are included in the business-type activities. Separate financial statements are not prepared.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
The Corona Utility Authority (the “CUA”) is a joint powers authority which was established on February 6, 2002 pursuant to a Joint Exercise of Powers Agreement between the City and the Agency in accordance with the Joint Powers Law (Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the California Government Code) for the purpose of assisting the City in the leasing of the water and water reclamation utility systems. The Authority's Officers are the Corona City Council and the City's executive management.

The funds of the Authority have been included in the business-type activities in the financial statements.

Separate financial statements are not prepared.

The Corona Housing Authority (the “CHA”) was established on February 16, 2011, pursuant to the California Housing Authority Law codified under State of California Health and Safety Code, Section 34200 et seq.

The City Council became the commissioners of governing board of the CHA. The CHA was formed for purposes of providing sanitary and safe housing for people of very low, low or moderate income within the City's territorial jurisdiction. This is achieved by building, acquiring, managing and maintaining residential rental units and providing financial assistance for rentals or ownership in the private real estate market. City staff provides management assistance to the CHA. Upon the dissolution of the former Corona Redevelopment Agency pursuant to Assembly Bill X1 26, the CHA elected to become the successor agency to the former Corona Redevelopment Agency's housing functions (the “Housing Successor”). Pursuant to Senate Bill 341, the CHA oversees the Low- and Moderate-Income Housing Asset fund. The funds of the CHA have been included in the governmental activities in the financial statements. Separate financial statements are not prepared.

The City had no discretely presented component units.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City 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.

Government-Wide Financial Statements
The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government-Wide Financial Statements (Continued)
Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards 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 eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Advances to and from other funds
 Transfers in and out
Governmental Fund Financial Statements
A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances are presented for all major governmental funds and aggregated nonmajor funds. Accompanying schedules are presented to reconcile and explain the differences in fund balances as presented in these statements, to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period.

Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) are recognized when due, However, the City has adopted a 12-month recognition period for sales tax and grant revenues. Also, the City accrued AQMD funds received after the 60-day accrual period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales taxes, federal and state grants. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The City reports the following major governmental funds:
 The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.  The Low Mod Income Housing Asset (Housing Successor) Capital Projects Fund accounts for the transactions related to low- and moderate-income housing activities pursuant to SB 341 and as prescribed in the Housing Element of the City's General Plan.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
 The Development Special Revenue Funds are used to account for Quimby and various development impact fees (DIF) received. The use of DIF funds is governed by Section 66006 of the Government Code.

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water, Water Reclamation, Electric, Transit, and Airport funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs 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.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities and business-type activities in the Government-Wide Financial Statements. The City’s internal service funds include five individual funds which provide services directly to other City funds. These areas of service include fleet operations, workers’ compensation, liability risk, warehouse, and information technology. These funds provide service to other City departments on a cost reimbursement basis.

The City reports the following major proprietary funds:
 Water Enterprise Fund - accounts for the operation and maintenance of the City's water utility, a selfsupporting activity which provides services on a user charge basis to residents and businesses located in the City.
 Water Reclamation Enterprise Fund - accounts for the operation and maintenance of the City's water reclamation utility, a self-supporting activity which provides services on a user charge basis to residents and businesses located in the City.
 Electric Enterprise Fund - account for the operation of the City's electric utility distribution system, a self-supporting activity which renders services on a user charge basis to businesses as well as residents located in the City.

Both the Water and the Water Reclamation utilities are owned by the Authority. The Authority operates both the Water and Water Reclamation systems pursuant to separate management agreements with the City.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City has Fleet Operation, Workers’ Compensation, Liability Risk, Warehouse, Information Technology Internal Service Funds that provide services directly to other City funds.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following two types of fiduciary funds:

Private-Purpose Trust Fund - The Successor Agency Trust for the former Corona Redevelopment Agency (Successor Agency) was established on February 1, 2012 in accordance to the Assembly Bill X1 26 that provides for the dissolution of all redevelopment agencies in the State of California. The establishment of the Successor Agency was approved by the City Council on January 11, 2012 through City Resolution No. 2012- 004. Effective February 1, 2012, successor agencies in California will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The activities of the Successor Agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Custodial Funds - To account for assets for the benefit of organizations or other governments that are not part of the City. In addition, the assets are not derived from the City’s provision of goods or services to those individuals, organizations, or other governments. Two funds are reported under the custodial fund type, the AD/CFD Fund and the AB109 PACT Fund. The AD/CFD Fund was established to account for receipt of special taxes and assessments used to pay principal and interest on related bonds that are not direct City liabilities, as well as receipt and disbursement of capital project bond proceeds related to bonds that are not direct obligations of the City. The AB109 PACT Fund was created on December 16, 2015 to account for activities of the Riverside County Post-Release Accountability and Compliance Team (PACT). The City of Corona is one of the seven member agencies of PACT, and serves as the trustee for PACT. Funding for PACT comes from the State of California in accordance with AB 109, Public Safety Realignment Act of 2011.

C. Cash, Cash Equivalents and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. The City pools cash resources of its various funds, including the Successor Agency Private Purpose Trust Fund to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City's intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds each month based on ending cash and investment balances of each fund.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments (Continued)
All cash and investments of proprietary funds are held in the City's investment pool as well. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for Statement of Cash Flows purposes.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining the amount, the City uses the market approach, one of the three acceptable valuation techniques. Market approach uses prices generated for identical or similar assets or liabilities.

The City participates in the Local Agency Investment Fund (“LAIF”), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in structured notes and asset-backed securities.

LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as a result of changes in interest rates. All investments in LAIF were reported at amortized cost, which approximates fair value.

D. Cash and Investments with Fiscal Agents
Cash and investments with fiscal agents are restricted for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

F. Interfund Transactions
Outstanding short-term borrowing between funds are reported to as “due from/to other funds”. Interfund loans are reported as advances to and from other funds and are eliminated upon consolidation. Advances to other funds are presented as nonspendable in General Fund’s fund balance to indicate that they are not in a spendable form.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Interfund services provided are treated as revenues and expenses. Administrative overhead charges included with centralized expenses charged by the General Fund are included in the direct expenses of enterprise activities.

Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or between proprietary funds are eliminated as part of the reconciliation to the government-wide financial statements.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 1 – Summary of Significant Accounting Policies (Continued) G. Inventories and Prepaid Items
Inventories within the various fund types consist of materials and supplies which are valued at cost on a first-in, first-out basis. Reported expenditures reflect the consumption method of recognizing inventory-related expenditures.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements by using purchase method.

A nonspendable fund balance has been reported in the governmental funds to show that inventories and prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

H. Lease Receivable
The City is a lessor for leases of land and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $200,000 for lease receivables.

Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

I. Capital Assets
In the Government-Wide Financial Statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. City policy has set the capitalization threshold for reporting capital assets at $25,000 for non-infrastructure items and $100,000 for infrastructure.

The City defines infrastructure assets as the basic physical assets that allow the City to function. The assets include the street system, water purification and distribution system, sewer collection and treatment system, park and recreation lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 1 – Summary of Significant Accounting Policies (Continued) I. Capital Assets (Continued)
Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets acquired under capital lease are capitalized at the net present value of the total lease payments.

The City elected to use the "modified approach" as defined by GASB Statement No. 34 for infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned the most recent physical assessment of its street pavement condition in October 2017. The Citywide condition assessments are performed every three years, with each year focusing on specific regions of the City. Each homogeneous segment of City owned street was assigned a physical condition based on 17 potential defects. A Pavement Condition Index (PCI) was assigned to each street segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the physical characteristics of a new street. The City's policy relative to maintaining the street assets is to achieve an average rating of 71 for all street segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. Please refer to the Required Supplementary Information section of this report for additional information on the modified approach.

For all other infrastructure systems, the City elected to use the "basic approach" as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 1999 and has completed an internal update for June 30, 2019. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Assets Years
Buildings and improvements 20-50
Computer Software 5
Equipment 3-20
Improvements 20
Infrastructure 25-65
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 1 – Summary of Significant Accounting Policies (Continued) I. Capital Assets (Continued)
The City has a policy to recognize a right‐to‐use lease asset (lease asset) in the government‐wide financial statements and proprietary fund financial statements for lease asset over $100,000. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

J. Deferred Outflows and Inflows of Resources
The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent a consumption of net position that apply to future periods.

Deferred Inflows of Resources represent an acquisition of net position that apply to future periods.

K. Unearned and Unavailable Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are grant revenues received in advance.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available.

L. Compensated Absences
Under certain circumstances and according to the negotiated labor agreements, employees of the City are allowed to accumulate annual leave. This amount is accrued in the government-wide and proprietary fund statements.

These amounts for annual leave are expected to be paid in future years from future resources.

M. Claims Payable
Claims payable in the Internal Service Fund represents estimates of claims against the City. The estimated claims payable represents the City’s best estimate of the amount to be paid on workers’ compensation and general liability claims. Losses for claims incurred but not reported are also recorded if the probable amount of loss can be reasonably estimated. The City is self-insured for general liability and workers’ compensation in the amounts of $500,000 and $1,000,000 per claim, respectively. Excess coverage is provided by Public Risk Innovation, Solutions, and Management (“PRISM”).

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 1 – Summary of Significant Accounting Policies (Continued) N. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $100,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the State generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

O. Long-Term Debt
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond.

The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

P. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

General Fund, Low Mod Income Housing Asset Capital Projects Fund, Residential Refuse Special Revenue Fund, HUD Grants Capital Projects Fund, Planned Local Drainage Capital Projects Fund are typically used to liquidate pension liabilities for governmental funds.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 1 – Summary of Significant Accounting Policies (Continued) P. Pensions (Continued)
The following timeframes are used for pension reporting:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

Q. Other Postemployment Benefits (“OPEB”)
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

General Fund is typically used to liquidate OPEB liabilities for governmental funds.

The following timeframes are reported OPEB reporting:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

R. Property Taxes
Under California law, property taxes are assessed and collected by the counties for up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas. Property taxes are assessed, collected and allocated by Riverside County throughout the fiscal year. The following are key dates pertaining to property taxes:

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 1 – Summary of Significant Accounting Policies (Continued) R. Property Taxes (Continued)
January 1
July 1 to June 30
November 1 and February 1
December 11 and April 11
Lien Date
Levy Date
Due Dates
Delinquent Dates
Property taxes receivable for the governmental fund types, which have been remitted within 60 days subsequent to year end, are considered measurable and available and recognized as revenues. All other property taxes are offset by deferred property tax inflows of resources and, accordingly, have not been recorded as revenue. Taxes are considered past due on the above delinquent dates, at which time the applicable property is subject to lien, and penalties and interest are assessed.

The County of Riverside collects an administration fee from the City and the former Redevelopment Agency for its services. The City receives a percentage of the basic 1% ad valorem tax rate allowed on property within the City of Corona. Property tax rates for the City's general obligation debt are set by the City Council based on assessed valuations and debt service requirements. The assessed valuation is at "full cash value".

S. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 1 – Summary of Significant Accounting Policies (Continued) S. Net Position and Fund Balances (Continued)
 General Fund Emergency Contingency – The City’s General Fund balance committed for emergency contingencies has been set by resolution and is for specific uses listed as the declaration of a state or federal state of emergency or a local emergency as defined in Corona Municipal Code Section

2.52.020. A state of emergency is the existence of conditions of disasters which may result in property damage, death and or/ injuries to the community. An emergency may also result from natural events that did not result in a request for state or federal assistance.  Designated Revenues – Designated Revenues are committed by minute action of the City Council.

Upon receipt of the revenues and at the request of the specific department, funds may be appropriated for departmental use with the recommendation of the Administrative Services Director, or with approval of City Council, depending on the amount of request.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

T. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 1 – Summary of Significant Accounting Policies (Continued) U. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

V. Implementation of New GASB Pronouncement
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.

This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible rightto-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The effective date of GASB Statement No. 87 (as amended by GASB Statement No. 95) is for fiscal years beginning after June 15, 2021. Implementation of this Statement resulted in restatement of beginning balance of lease assets (Note 9) and lease liabilities (Note 11) at July 1, 2021.

Note 2 – Stewardship, Compliance and Accountability
Deficit Net Position
At June 30, 2022, Public Facility Project Capital Projects Funds and Other Grants Special Revenue Funds had deficit fund balances of $3,301,897 and $5,002,250. The deficits will be eliminated when reimbursements are received in the future year. The Successor Agency Trust Fund had a deficit net position in the amount of $28,959,984 and will be eliminated with future redevelopment property trust fund revenue.

Note 3 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.

Certain restricted funds which are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investments with fiscal agents.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 3 – Cash and Investments (Continued)
The City had the following cash and investments at June 30, 2022:

Fiduciary
Fund
Governmental Business-Type Statement of
Activities Activities Net Position Total
Cash and investments 244,799,766 $ 131,125,608 $ 7,564,074 $ 383,489,448 $ Restricted cash and investments 38,867,314 1,665,361 18,425,850 58,958,525 Total cash and investments $ 132,790,969 283,667,080 $ 25,989,924 $ 442,447,973 $ Government-Wide
Statement of Net Position
The City’s cash and investments at June 30, 2022, in more detail:

Deposits with financial institution 3,736,051 $
Petty cash 9,449
Custodial cash 30,000,000
Total cash 33,745,500
Investments 389,952,877
Investments with fiscal agent 18,749,596
Total investments 408,702,473
Total cash and investments $ 442,447,973
A. Deposits
The carrying amounts of the City’s demand deposits were $3,736,051 at June 30, 2022. Bank balances at that date were $6,176,051, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 3 – Cash and Investments (Continued)
B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Percentage Investments in
Authorized Investment Type Maturity Allowed One Issuer
United States Treasury Bills, Bonds and Notes 5 Years None None United States Government Sponsored Agency Securities 5 Years 75% None Negotiable Certificates of Deposit 3 Years 20% None
Banker's Acceptance Notes 180 days 20% 25%
Corporate Notes 5 Years 30% None
Commercial Paper 270 days 25% 10% of the issuer outstanding paper Local Agency Investment Fund (LAIF) N/A None $65 million per account Repurchasement Agreement 14 days 10% None
Mutual Funds N/A 20% None
Bonds N/A 25% None
Diversified management companies N/A 10% None
Non-Government issued Mortgage-backed pass-through
securities, collateralized Mortgage obligations and Asset-backed securities
5 years
15% of
investing
agency's
surplus
None
Supernational 5 years 10%
N/A - Not Applicable
C. Local Agency Investment Fund (“LAIF”)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities:

Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $91,797,429 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities. The fair value of the City’s portion in the pool is the same as the value of the pool shares and reported at amortized cost.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 3 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2022, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022:

Quoted Prices in Active Significant
Market for Identical Other Observable
Investment Type Assets (Level 1) Inputs (Level 2) Uncategorized Total Local Agency Investment Fund - $ - $ 91,797,429 $ 91,797,429 $ Money Market Funds - - 3,825,330 3,825,330
United States Government Sponsored
Enterprise Securities - 69,692,653 - 69,692,653
US Treasury bills 72,015,403 - - 72,015,403
Collateralized Mortgage obligation - 18,951,429 - 18,951,429 Asset Backed Securities - 39,959,410 - 39,959,410
Corporate Notes - 78,239,088 - 78,239,088
Negotiable Certificates of Deposit - 494,257 - 494,257
Municipal Bonds - 3,318,045 - 3,318,045
Supernational Obligations - 11,659,833 - 11,659,833
Held by Bond Trustee:

Money Market Funds - - 18,749,596 18,749,596
Total $ 222,314,715 72,015,403 $ 114,372,355 $ 408,702,473 $ Measurement Input
E. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2022, the City had the following investment maturities:
12 Months 13-24 25-60
Investment Type or Less Months Months Total
Local Agency Investment Fund 91,797,429 $ - $ - $ 91,797,429 $ Money Market Funds 3,825,330 3,825,330
United States Government Sponsored
Enterprise Securities - 13,965,789 55,726,864 69,692,653 US Treasury bills - 17,963,623 54,051,780 72,015,403
Collateralized Mortgage obligation 548,810 13,983,060 4,419,559 18,951,429 Asset Backed Securities - 3,622,531 36,336,879 39,959,410 Corporate Notes - 11,563,588 66,675,500 78,239,088
Negotiable Certificates of Deposit 494,257 - - 494,257
Municipal Bonds - - 3,318,045 3,318,045
Supernational Obligations - - 11,659,833 11,659,833
Held by Bond Trustee:

Money Market Funds 18,749,596 - - 18,749,596
Total $ 61,098,591 115,415,422 $ 232,188,460 $ 408,702,473 $ Remaining Maturity (In Months)
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 3 – Cash and Investments (Continued)
E. Risk Disclosures (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 and Poor’s and Moody’s at June 30, 2022 for each investment type:

Fair Value Minimum Not Required
at Legal to be
Investment Type June 30, 2022 Rating AAA Other Rated
Local Agency Investment Fund $ 91,797,429 Not Rated $ - $ 91,797,429 - $ Money Market Funds 3,825,330 N/A - 3,825,330 -
United States Government Sponsored
Enterprise Securities 69,692,653 N/A 69,692,653 - -
US Treasury bills 72,015,403 N/A 72,015,403 - -
Collateralized Mortgage obligation 18,951,429 AA 18,951,429 - - Asset Backed Securities 39,959,410 AA 39,959,410 - -
Corporate Notes 78,239,088 A 5,615,000 72,624,088 -
Negotiable Certificates of Deposit 494,257 A1/P1 - 494,257 - Municipal Bonds 3,318,045 A 3,318,045 - -
Supernational Obligations 11,659,833 AA 11,659,833 - -
Held by Bond Trustee: -
Money Market Funds 18,749,596 N/A - 18,749,596 -
Total $ 408,702,473 $ 217,893,728 $ 76,436,390 $ 114,372,355 N/A - Not Required
The actual rating for the “Other” Category above as follows:

Investment Type AA+ AA AA- A+ A A- Total
Corporate Notes $ 9,971,844 5,142,990$ $ 9,624,393 $ 17,527,326 12,622,090 $ 23,350,445 $ 78,239,088 $ Concentration of Credit Risk
The City’s investment policy states that the City operates its investment pool with many state and self-imposed constraints. It does not buy stocks and it does not speculate. Assets shall be diversified to eliminate the risk of loss resulting from over concentration of assets in specific maturity, a specific issuer, or a specific class of securities.

The City will diversify its investment by security type, institution and maturity/call dates. The City’s investment policy states that no more than 50% of the City’s total investment portfolio shall be invested in a single security type or with a single financial institution. The only exception to these maturity limits shall be the investment in U.S. Treasury and authorized pools. Unless matched to a specific cash flow, the City shall not directly invest in securities maturing more than five years from the date of purchase.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 3 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Concentration of Credit Risk (Continued
At June 30, 2022, investment subject to portfolio restriction in any one issue that represent 5% or more of total City investments is as follows:

Issuers Investment Type Amount Percentage
Federal Home Loan Bank US Government Sponsored Enterprise Securities 22,040,523 $ 6% Federal Home Loan Mortgage Corporation US Government Sponsored Enterprise Securities 17,921,290 5% Federal National Mortgage Association US Government Sponsored Enterprise Securities 29,730,840 8% 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 a third 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 the third party. At June 30, 2022, none of the City’s deposits or investments were exposed to custodial credit risk.

Note 4 – Investment in Joint Venture
In July 2012, the City entered into an agreement with the Western Riverside County Regional Wastewater Authority (the “WRCRWA”) and became a voting member of the WRCRWA. The WRCRWA was formed in 1992 pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California relating to the joint exercise of powers common to public agencies, for the purpose of constructing, maintaining, operating, and managing facilities for the collection, transmission, treatment and disposal of wastewater, the reclamation of wastewater, and the use of reclaimed wastewater for any beneficial purpose.

WRCRWA is composed of five member agencies: City of Corona, Jurupa Community Services District, Western Municipal Water District, Home Gardens Sanitary District, and the City of Norco. The member agencies support the operating costs and capital costs through fixed and variable rates established by WRCRWA's Board of Directors.

The governing body of WRCRWA is a Board of Directors, which consists of ten individuals, two appointed by each member.

WRCRWA owns and operates a 14 Million Gallons per Day (MGD) tertiary wastewater treatment plant. The plant capacity owned by its member agencies are shown as follows:

Current
Member Agencies MGD
City of Corona 2.62
Jurupa Community Services District 6.00
City of Norco 2.70
Western Municipal Water District 1.93
Home Gardena Sanitary District 0.75
Total 14.00
The City’s investment in WRCRWA for the fiscal year ended June 30, 2022 was $13,211,515.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 4 – Investment in Joint Venture (Continued)
Unaudited financial information of the Authority for the fiscal year ended June 30, 2022, was summarized as follows:

Total assets $ 115,874,464
Total liabilities (61,483,001)
Deferred Inflow of resources (350,000)
Total net position (deficit) $ 54,041,463
Western Riverside County Regional Wastewater Authority Net Position:

Operating revenues $ 9,141,794
Operating expenses (8,718,665)
Operating revenue before depreciation 423,129
Depreciation (3,978,612)
Operating loss (3,555,483)
Nonoperating revenue 9,145,851
Change in net position 5,590,368
Beginning net position 48,451,095
Ending net position $ 54,041,463
Western Riverside County Regional Wastewater Authority Changes in Net Position:

Financial statements of the Authority can be obtained from the WRCRWA office at 450 Alessandro Boulevard, Riverside, California 92517, for audited financial information.

Note 5 – Land Held for Resale
Land held for resale consists of real property acquired by the City and held for resale to private developers. The amount recorded as land held for resale and the corresponding fund balance classified as restricted as of June 30, 2022 was $1,998,648 in the Low Mod Income Housing Asset Capital Projects Fund and $1,461,000 in the HUD Grants Capital Projects Fund.

Note 6 – Long-Term Receivables
At June 30, 2022, the balances of the long-term receivables were as follows:

Long-Term Loans
Governmental Funds Receivable Receivable Total
General Fund 2,099,041 $ - $ $ 2,099,041
Low Mod Income Housing Assets Capital Projects Fund 9,942,191 7,047,242 16,989,433 Development Special Revenue Funds 1,189,660 328,332 1,517,992 Nonmajor Governmental Funds 1,717,405 4,548,537 6,265,942 Total $ 14,948,297 $ 11,924,111 $ 26,872,408
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 6 – Long-Term Receivables (Continued)
General Fund
 Various City/former Corona Redevelopment Agency loans totaled $924,789 as of June 30, 2022. The loans were approved by the Oversight Board on May 30, 2013. Finding of Completion was issued by the California Department of Finance on April 8, 2013. Repayments of these City loans from the Successor Agency were scheduled to commence after Fiscal Year 2014-15 after the SERAF Loan was paid in full.  Reimbursement receivables from developers for the Temescal Canyon Communications Tower totaling $229,687.
 Reimbursement receivables from developers for South Corona area Community Facilities Plan totaling $169,565.
 Notes receivables from developers for the sale of land totaling $775,000.

Low Mod Income Housing Asset Capital Projects Fund
 Long-term receivables from developers totaling $9,942,191.  Loans receivables from developers and homeowners for home improvement loan and first-time home buyer programs totaling $7,047,242.

Development Special Revenue Funds
 Long-term receivables for deferred fees from developers totaling $1,189,660.  Loans receivable from the developers totaling $328,332.

Nonmajor Governmental Funds
 The nonmajor governmental funds (HUD Grants Capital Projects Fund) reported long-term receivables from developers in the amount of $1,717,405 for development of low-income housing.  The nonmajor governmental funds (HUD Grants Capital Projects Fund) reported loans receivable in the amount of $2,248,537 for residential rehabilitation, home improvement, and first-time home buyer programs.  The nonmajor governmental funds (Other Grants Capital Projects Funds) reported $2,300,000 loans receivable from developers for building affordable housing.

Note 7 – Lease Receivables
Lease receivables consist of agreements with others for the right–to–use of the underlying assets for land owned by the City at various locations. The remaining terms of the agreements range from 1 to 25 years. The incremental borrowing rate used was 2.98%. For the year ended June 30, 2022, the City recognized $786,213 and $418,958 in lease revenue and $176,086 and $93,585 in interest revenue for General Fund and Water Enterprise Fund, respectively. The outstanding receivables are in the amounts of $12,707,362 and $4,549,260 for General Fund and Water Enterprise Fund, respectively.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 7 – Lease Receivables (Continued)
The future required payments for these leases, including interest, are as follows:

Year Ending
June 30, Principal Interest Total Principal Interest Total 2023 $ 467,872 $ 347,432 $ 815,304 $ 293,589 $ 130,511 $ 424,100 2024 421,187 360,439 781,626 317,309 121,818 439,127
2025 437,760 348,350 786,110 322,186 112,133 434,319
2026 481,733 334,563 816,296 311,781 102,911 414,692
2027 473,722 320,299 794,021 334,423 93,454 427,877
2028-2032 3,004,073 1,360,632 4,364,705 1,264,077 337,587 1,601,664 2033-2037 3,455,411 860,336 4,315,747 885,113 196,184 1,081,297 2038-2042 2,695,982 399,820 3,095,802 523,899 84,901 608,800 2034-2047 1,269,622 84,118 1,353,740 296,883 17,509 314,392 Total $ 12,707,362 $ 4,415,989 $ 17,123,351 $ 4,549,260 $ 1,197,008 $ 5,746,268 Governmental Activities Business-type Activities
Note 8 – Interfund Transactions
A. Government-Wide Financial Statements
Internal Balances - At June 30, 2022, the City had the following internal receivable and payable, which represents internal service charges between the governmental activities and business-type activities:

Internal Payable
Business-Type Activities
Internal Receivable
Governmental Activities
$ 174,731,905
Included in the internal balances are net advances to/from other funds within governmental funds in the amount of $3,452,610, net of internal services fund activities related to business-type activities in the amount of $(1,349,049), and the following advances with CUA:

In February 2002, in the year when CUA was formed (See Note 1A), the CUA entered into finance purchase agreement with the City to acquire the City's Water and Water Reclamation facilities (the “Agreements”). The terms of the Agreement are 55 years. The Agreements will terminate on February 6, 2056, at which time the CUA could renew the Agreements of the Water and Water Reclamation facilities. The finance purchased assets of the Water and Water Reclamation facilities were recorded at the City's historical cost, net of accumulated depreciation. The related debt has been recorded accordingly resulting in a principal payable for an amount equal to the net capital assets recorded on the City's financial statements.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 8 – Interfund Transactions (Continued)
A. Government-Wide Financial Statements (Continued)
Per the Agreements, maximum repayments are calculated with a discount rate of 6.0%. The original payments since Fiscal Year 2001-02 through Fiscal Year 2007-08 were established as 5.0% to 8.0% of the corresponding utility sales revenues of that year, equivalent to discounting the principal amounts by a range from 1.2% to 3.0%.

Starting Fiscal Year 2008-09 and continued to the next fiscal year, the payments were calculated with a 3.5% to

4.0% growth factor over the previous fiscal year, equivalent to discounting the principal amounts by 3.2% for Water Utilities and 2.8% for Water Reclamation Utilities. In Fiscal Year 2011-12, the annual payment for Water Utility was calculated with a discount rate of 6.0% with a catch-up payment for the prior years in the amount of $311,015, and the Water Reclamation Utility's payment was discounted at 5.7% of the principal amount. For fiscal years 2013-14 and 2014-15, the payments for Water and Water Reclamation utilities were calculated with a discount rate of 5.0% and 4.4%, respectively. For fiscal year ended June 30, 2022, the payments for Water and Water Reclamation utilities were calculated with a discount rate of 6%.

Per the Agreements, all payments are considered interest payments toward the debt obligation. The CUA's obligations under the Agreements will cease, discharged and excused upon the date the aggregate amount of payments made by the CUA to the City equals the amount of the principal amount of the debt obligation.

The following internal balances – advance from other funds and to other funds were outstanding at June 30, 2022:

Advances from Other Fund
Water Utility Enterprise Fund
Water Reclamation Utilities
Enterprise Fund
Total
$ 106,819,662
65,808,682
$ 172,628,344
Advance to Other Funds
Governmental Activities
During the year ended June 30, 2022, the following interfund transactions were paid by the CUA to the City:

Advances from Other Fund Interest
Water Utility Enterprise Fund 2,571,803 $
Water Reclamation Utilities
Enterprise Fund 1,730,689
Total 4,302,492 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 8 – Interfund Transactions (Continued)
A. Government-Wide Financial Statements (Continued)
At June 30, 2022, the future debt service payments required under the Agreement for the Water Utility are presented below:

Year Ending June 30, Principal Interest
2023 $ - 2,430,513 $
2024 - 2,296,287
2025 - 2,168,773
2026 - 2,047,634
2027 - 1,932,553
2028-2032 - 8,128,159
2033-2037 - 6,002,115
2038-2042 - 4,357,024
2043-2047 - 3,084,084
2048-2052 - 1,779,440
2053-2056 106,819,662 464,538
Total Future Repayments $ 106,819,662 $ 34,691,120
At June 30, 2022, the future debt service payments required under the Agreement for the Water Reclamation utility advances are presented below:

Year Ending June 30, Principal Interest
2023 $ - 1,637,405 $
2024 - 1,548,785
2025 - 1,464,595
2026 - 1,384,616
2027 - 1,308,635
2028-2032 - 5,529,976
2033-2037 - 4,126,293
2038-2042 - 3,040,150
2043-2047 - 2,199,711
2048-2052 - 1,614,844
2053-2056 65,808,682 1,159,387
Total Future Payments $ 65,808,682 $ 25,014,397
Transfers – For the year ended June 30, 2022, the business-type activities transferred capital assets to the governmental activities with net book value in the amount of $109,748.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 8 – Interfund Transactions (Continued)
B. Fund Financial Statements
Due From/To Other Funds - At June 30, 2022, the City had the following due from/to other funds:

Due From Other Funds
Governmental Fund:

General Fund 14,711,627 $
Governmental Funds
Due To Other Funds
Nonmajor Governmental Funds
The above amounts resulted from temporary reclassifications made at June 30, 2022 to cover cash shortfalls.

Advances To/From Other Funds – At June 30, 2022, the City had the following advances:

Governmental
Funds Proprietary Fund
Water Reclamation Electric
General Enterprise Enterprise
Advances from Other Funds Fund Fund Fund Total
Governmental Fund:

Development Special Revenue Fund 7,478,374 $ - $ - $ 7,478,374 $ Nonmajor Governmental Funds - - 1,596,663 1,596,663
Proprietary Fund:

Water Enterprise Fund 106,819,662 3,614,688 - 110,434,350 Water Reclamation Enterprise Fund 65,808,682 - - 65,808,682 Electric Enterprise Fund 5,049,273 - - 5,049,273
Total 185,155,991 $ 3,614,688 $ 1,596,663 $ 190,367,342 $ Advances to Other Funds
The General Fund made cash advances to the Development Special Revenue Fund (Park Development “Quimby”) over the years to help the fund to repay its outstanding 2001 Lease Revenue Bonds. These bonds were issued to refund the 1989 and 1993 Lease Revenue Bonds issued by the then Corona Public Improvement Corporation. Bond proceeds were used to acquire park land throughout the City. Repayment to the General Fund will continue to be made from development impact fees collected with future development. At June 30, 2022, the outstanding balance of the interfund loan was $7,464,511. The General Fund also has another interfund loan with Development Special Revenue Fund (Temescal Canyon Fire Facility Fee Fund) in the amount of $13,863. Also see advances to Water and Water Reclamation Enterprise Funds at page 82 and 83.

A loan was made from the General Fund to the Electric Enterprise Fund to pay for certain capital improvement projects, and to call the outstanding 2005 Clearwater Cogeneration Projects Certificates of Participation. At June 30, 2022, the outstanding balance payable from the Electric Enterprise Fund to the General Fund was in the amount of $5,049,273.

In September 2017, the Electric Enterprise Fund made a loan to the Special Tax Districts Special Revenue Funds to advance funding for the LED street and safety light retrofit project. Repayment is expected to be made over a 10-year period, the available revenue. At June 30, 2022, the outstanding balance was in the amount of $1,596,663.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 8 – Interfund Transactions (Continued)
B. Fund Financial Statements (Continued)
During the years ended June 30, 2018 and 2019, Water Reclamation Enterprise Fund advanced total of $3,614,688 to the Water Enterprise Fund. The interfund loan and repayment agreement was executed during the year ended June 30, 2022 with interest rate based on LAIF quarterly apportionment rate for the fiscal year but no greater than 2%. The principal is due when there is sufficient working capital to repay the advance. There is no fixed repayment schedule on the principal amount owed. At June 30, 2022, the outstanding balance was in the amount of $3,614,688.

Transfers In/Out – During the year ended June 30, 2022, the City had the following transfers in/out:

Nonmajor
Governmental
Transfers In General Fund Funds Total
Governmental Fund:

General Fund - $ 1,197,681 $ 1,197,681 $
Nonmajor Governmental Funds 269,916 - 269,916
Total $ 269,916 $ 1,197,681 $ 1,467,597
Transfers Out
Administratively, resources may be transferred from one City fund to another. The purpose of the majority of transfers was to provide funding for other funds with the City Council’s approvals. Included in the Nonmajor Governmental Funds transfer was $1,116,081 from Gas Tax Special Revenue Fund to the General Fund for the engineering and project support.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 9 – Capital Assets
A. Governmental Activities
A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance
(As Restated) Transfers Additions Deletions June 30, 2022 Capital assets, not being depreciated:

Land 80,457,389 $ 5,102,845 $ - $ - $ 85,560,234 $
Streets 221,098,411 1,807,625 829,631 - 223,735,667
Construction in progress 168,178,715 (31,779,429) 29,817,472 - 166,216,758 Total capital assets, not being depreciated (24,868,959) 469,734,515 30,647,103 - 475,512,659 Capital assets, being depreciated:

Buildings and improvements 236,280,294 3,552,718 - - 239,833,012 Machinery and equipment 44,495,173 2,523,868 112,045 (2,035,967) 45,095,119 Computer software 959,782 - - - 959,782
Infrastructure 338,854,056 18,977,222 3,287,902 - 361,119,180 Total capital assets, being depreciated 25,053,808 620,589,305 3,399,947 (2,035,967) 647,007,093 Less accumulated depreciation for:

Buildings and improvements (129,306,524) (75,101) (5,025,484) - (134,407,109) Machinery and equipment (29,001,260) - (2,800,240) 2,027,063 (29,774,437) Computer software (944,865) - (4,972) - (949,837)
Infrastructure (147,242,600) - (5,735,938) - (152,978,538) Total accumulated depreciation (75,101) (306,495,249) (13,566,634) 2,027,063 (318,109,921) Total capital assets, being depreciated, net 24,978,707 314,094,056 (10,166,687) (8,904) 328,897,172 Lease assets, being amortized:

Intangible asset - right of use 1,373,205 - 391,023 - 1,764,228 Accumulated amortization (346,892) - (246,052) - (592,944) Total lease assets, being amortized, net - 1,026,313 144,971 - 1,171,284 Governmental activities capital assets, net $ 109,748 784,854,884 $ 20,625,387 $ (8,904) $ 805,581,115 $ Depreciation and amortization expense was charged to functions of the governmental activities for the year ended June 30, 2022 as follows:

General government 2,969,031 $
Public safety - fire 704,168
Public safety - police 461,203
Public works 770,323
Maintenance service 7,509,225
Community services 91,962
Internal service 1,306,774
Total depreciation expense - governmental activities $ 13,812,686 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 9 – Capital Assets (Continued)
B. Business-Type Activities
A summary of changes in the capital assets for the business-type activities for the year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance
(As Restated) Transfers Additions Deletions June 30, 2022 Capital assets, not being depreciated:

Land 5,716,877 $ - $ $ - $ - $ 5,716,877
Water and pumping rights 19,644,651 - - - 19,644,651
Construction in progress 27,446,364 (16,758,179) 15,287,544 - 25,975,729 Total capital assets, not being depreciated 52,807,892 (16,758,179) 15,287,544 - 51,337,257 Capital assets, being depreciated:

Buildings and improvements 106,065,448 518,017 - 106,583,465 - Machinery and equipment 119,532,824 6,707,709 1,201,886 (108,494) 127,333,925 Computer software 1,770,193 - - 1,770,193 -
Infrastructure 392,738,906 9,347,604 321,466 - 402,407,976 Total capital assets, being depreciated 620,107,371 16,573,330 1,523,352 (108,494) 638,095,559 Less accumulated depreciation for:

Buildings and improvements (51,909,999) 75,101 (2,335,822) - (54,170,720) Machinery and equipment (78,075,133) - (6,047,542) 108,494 (84,014,181) Computer software (1,347,108) - (323,887) - (1,670,995) Infrastructure (120,321,035) - (7,166,369) - (127,487,404) Total accumulated depreciation (251,653,275) (15,873,620) 75,101 (267,343,300) 108,494 Total capital assets, being depreciated, net 368,454,096 16,648,431 (14,350,268) - 370,752,259 Lease assets, being amortized:

Intangible asset - right of use 217,306 - - 217,306 -
Accumulated amortization (40,822) - (16,213) - (57,035) Total lease assets, being amortized, net 176,484 - (16,213) - 160,271 Business-type activities capital assets, net $ 421,438,472 $ (109,748) $ 921,063 $ 422,249,787 - $ Depreciation and amortization expense was charged to functions of the business-type activities for the year ended June 30, 2022 as follows:

Water $ 8,954,288
Water Reclamation 5,859,874
Electric 399,433
Transit Service 661,942
Airport 14,296
Total depreciation expense - business-type activities $ 15,889,833 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 9 – Capital Assets (Continued)
C. Infrastructure Assets
Below is a summary of infrastructure assets of the City as of June 30, 2022:

Accumulated
Description Historical Cost Depreciation Net Cost
Governmental activities:

Modified approach
Street pavement system 223,735,667 $ - $ 223,735,667 $
Basic approach
Curbing 82,220,356 (42,540,172) 39,680,184
Sidewalks 104,926,058 (46,096,786) 58,829,272
Signs and lights 48,286,143 (17,793,600) 30,492,543
Storm drains 117,684,421 (43,568,989) 74,115,432
Fiberoptics 5,899,801 (2,880,976) 3,018,825
Electric 2,085,986 (96,374) 1,989,612
Water reclamation 16,415 (1,641) 14,774
Subtotal basic approach 361,119,180 (152,978,538) 208,140,642 Total governmental activities $ (152,978,538) 584,854,847 $ 431,876,309 $ Business-type activities:

Basic approach
Fiberoptics 235,951 $ (197,070) $ 38,881 $
Curbing 200 (31) 169
Sidewalks 252,556 (13,192) 239,364
Electric 6,150,749 (1,844,895) 4,305,854
Signs and lights 361,508 (71,063) 290,445
Storm drains 191,468 (13,193) 178,275
Water 273,915,213 (90,347,396) 183,567,817
Water reclamation 121,300,331 (35,000,564) 86,299,767
Total business-type activities $ (127,487,404) 402,407,976 $ 274,920,572 $ D. Construction in Progress and Capital Project Commitments The City has active construction projects as of June 30, 2022. These projects include street construction in areas of newly developed housing, pavement rehabilitation, and various water and water reclamation upgrades and replacements. At year end, the City's construction in progress totaled $192,192,487.

The following material construction commitments existed at June 30, 2022:

Expenditures
Contract to date as of Remaining
Project Name Amount June 30, 2022 Commitments
Governmental activities:

McKinley Street Grade Separation 69,054,308 $ $ 19,005,865 50,048,443 $ Magnolia Avenue Widening 1,515,088 1,157,722 357,366
Ontario Avenue Widening 1,075,654 710,072 365,582
Homeless shelter Rehab 2,368,282 1,395,954 972,328
Business-type activities:

Mangular Blending Facility 5,056,457 3,893,731 1,162,726 Cottonwood Court Well Replacement 1,350,915 21,718 1,329,197 WRF #3 Decommission Pumping 7,589,826 5,557,794 2,032,032 Total material construction commitments $ 31,742,856 88,010,530 $ 56,267,674 $ City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 10 – Compensated Absences
Under certain circumstances and accordingly to the negotiated labor agreements, City employees are allowed to accumulate annual leave. The annual leave amount is accrued and accounted for as compensated absences in the government-wide and proprietary fund statements.

The following is a summary of compensated absences payable transactions for the year ended June 30 2022:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Governmental activities:

Compensated absences 9,084,786 $ $ 8,236,139 $ (6,437,085) $ 10,883,840 $ 6,437,654 $ 4,446,186 Business-type activities
Compensated absences 1,236,487 $ $ 1,179,201 $ (1,065,833) $ 1,349,855 $ 1,004,936 $ 344,919 The General Fund and Internal Service Funds are used to liquidate the compensated absences for governmental activities. The Enterprise Funds are used to liquidate the compensated absences for business-type activities.

Note 11 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Governmental Activities:

Public Offering:
2016 Lease Revenue Refunding Bonds 19,560,000 $ - $ $ (1,355,000) $ 18,205,000 $ 1,415,000 $ 16,790,000 Unamortized bond premium 2,230,924 - (148,728) 2,082,196 - 2,082,196 2021 Pension Obligation Bond 236,650,860 - (14,706,329) 221,944,531 14,049,750 207,894,781 Total Public Offering 21,790,924 236,650,860 (16,210,057) 242,231,727 15,464,750 226,766,977 Direct Borrowing:
2012 Refunding Lease 11,518,492 - (1,763,903) 9,754,589 1,823,488 7,931,101 Lease Payable:

Computer network equipment lease 210,938 - (210,938) - - - Vehicle leases 536,937 246,024 (237,944) 545,017 228,772 316,245 Total Lease Payable 747,875 246,024 (448,882) 545,017 228,772 316,245 Compensated absences 9,084,786 8,236,139 (6,437,085) 10,883,840 6,437,654 4,446,186 Claims and judgments 21,322,741 2,832,557 (2,043,927) 22,111,371 3,332,678 18,778,693 Total governmental activities $ 64,464,818 $ (26,903,854) 247,965,580 $ 285,526,544 $ 27,287,342 $ $ 258,239,202 2016 Lease Revenue Refunding Bonds
On July 7, 2016, the CPFA issued the 2016 Lease Revenue Refunding Bonds in the amount of $24,520,000 to refund the CPFA 2006 Lease Revenue Bonds Series C, which were issued to pay the costs of the Corporate Yard Expansion project. The bonds issued at a premium of $2,974,564 and bear interest rates from 2.000% to 5.000% per annum. Interest is paid semiannually on May 1 and November 1 of each year, commencing May 1, 2017.

Annual installments ranging from $880,000 to $1,590,000 are due through November 1, 2036. The bonds are payable from the revenues to be received by the CPFA from the City as lease payments for the right to use certain real property.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2016 Lease Revenue Refunding Bonds (Continued)
The future annual debt service requirements for the 2016 Lease Revenue Refunding Bonds are listed below:

Year Ending
June 30, Principal Interest Total
2023 1,415,000 $ 697,750 $ 2,112,750 $
2024 1,475,000 639,950 2,114,950
2025 1,530,000 579,850 2,109,850
2026 1,590,000 517,450 2,107,450
2027 880,000 463,650 1,343,650
2028-2032 5,110,000 1,594,500 6,704,500
2033-2037 6,205,000 476,175 6,681,175
Total 18,205,000 $ 4,969,325 $ 23,174,325 $
2021 Taxable Pension Obligation Bonds
On October 1, 2021, The City issued 2021 Taxable Pension Obligation bonds in the amount of $276,710,000 to pay all the City’s currently unamortized, unfunded accrued actuarial liability to the California Public Employees Retirement System with respect to the City’s defined benefit retirement plans for City employees and pay costs of issuance of the bonds. The bond bears interest rate from 0.249% to 2.702% per annum. Interest is paid semiannually on May 1 and November 1 of each year commencing May 1, 2022. Annual installments ranging from $16,375,000 to $28,835,000 are due through May 1, 2034.

The future annual debt service requirements for the 2021 Taxable Pension Obligation Bonds are listed below:

Year Ending
June 30, Principal Interest Principal Interest
2023 14,049,750 $ 4,180,098 $ 2,320,792 $ 711,991 $
2024 15,247,466 4,122,635 2,532,669 702,499
2025 16,159,424 4,014,378 2,685,418 684,517
2026 17,116,508 3,831,615 2,848,021 654,145
2027 17,868,150 3,598,659 2,976,133 615,383
2028-2032 98,385,712 12,597,150 16,437,713 2,179,932
2033-2034 43,117,521 1,728,035 7,737,616 311,390
Total $ 34,072,570 221,944,531 $ 37,538,362 $ 5,859,857 $ Governmental Activities Business-type Activities
Year Ending
June 30, Principal Interest Principal Interest Total
2023 4,458 $ 1,368 $ 16,375,000 $ 4,893,457 $ 21,268,457 $ 2024 4,865 1,349 17,785,000 4,826,483 22,611,483
2025 5,158 1,315 18,850,000 4,700,210 23,550,210
2026 5,471 1,257 19,970,000 4,487,017 24,457,017
2027 5,717 1,182 20,850,000 4,215,224 25,065,224
2028-2032 31,575 4,187 114,855,000 14,781,269 129,636,269 2033-2034 14,863 598 50,870,000 2,040,023 52,910,023
Total 72,107 $ 11,256 $ 259,555,000 $ 39,943,683 $ 299,498,683 $ Fiduciary Activities Total
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2012 Refunding Lease
On June 1, 2012, the City entered into the 2012 Refunding Lease financing agreement with Compass Mortgage Corporation, a private lender, in the amount of $25,265,511 to refund the CPFA Lease Revenue 2002 Series B bonds originally issued in the amount of $35,000,000 to pay the costs of the design, construction and acquisition of the City Hall facility. The 2002 Series B bonds were refunded in its entirety in September 2012. The 2012 Refunding Lease is payable over a fifteen-year period.

As of June 30, 2022, the net present value of future minimum lease payments required under the capital lease was $9,754,589. The future minimum lease payments are presented below:

Year Ending
June 30, Principal Interest Total
2023 1,823,488 $ 311,634 $ $ 2,135,122
2024 1,885,087 250,035 2,135,122
2025 1,948,766 186,356 2,135,122
2026 2,014,597 120,526 2,135,123
2027 2,082,651 52,471 2,135,122
Total $ 9,754,589 $ 921,022 $ 10,675,611
Computer Network Equipment Lease Payable
On October 20, 2017, the City entered into a lease agreement with Key Government Finance, a private lender, in the amount of $1,403,261 for Cisco Networking equipment. The lease is payable over a five-year period and was paid off during the year ending June 30, 2022.

Vehicle Lease Payable
The City has entered into leases for vehicle uses. The terms of the agreements are 60 months with implicit rate of 3.96%. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2023 228,772 $ 14,092 $ $ 242,864
2024 130,758 9,687 140,445
2025 107,622 6,310 113,932
2026 64,117 2,304 66,421
2027 13,748 145 13,893
$ 545,017 $ 32,538 $ 577,555
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Compensated Absences
The balance at June 30, 2022, was $10,883,840. See Note 10 for more detailed information.

Claims and Judgments
The balance at June 30, 2022, was $22,111,371. See Note 12 for more details.

B. Business-Type Activities
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2022:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Business-Type activities
Public Offering:
2012 Water Revenue Bonds 24,860,000 $ - $ (1,595,000) $ 23,265,000 $ 1,655,000 $ 21,610,000 $ 2013 Wastewater Revenue Bonds 8,855,000 - (640,000) 8,215,000 665,000 7,550,000 Total Revenue Bonds 33,715,000 - (2,235,000) 31,480,000 2,320,000 29,160,000 Bond Premium - Water 1,062,900 - (88,575) 974,325 - 974,325 Bond Premium - Wastewater 208,234 - (18,931) 189,303 - 189,303 Total Premium 1,271,134 - (107,506) 1,163,628 - 1,163,628 2021 Pension Obligation Bond - 39,982,338 (2,443,976) 37,538,362 2,320,792 35,217,570 Total Public Offering 34,986,134 39,982,338 (4,786,482) 70,181,990 4,640,792 65,541,198 Direct Borrowing:

Brine Line Installment Agreement 6,703,812 - (398,886) 6,304,926 410,852 5,894,074 WMWD Contract Payable 690,390 - - 690,390 - 690,390
State Loan C-06-4802-110 9,036,114 - (1,719,092) 7,317,022 1,762,070 5,554,952 State Loan C-06-7834-110 10,127,044 - (296,773) 9,830,271 303,005 9,527,266 Total Direct Borrowing 26,557,360 - (2,414,751) 24,142,609 2,475,927 21,666,682 Lease Payable 11,018 - (7,701) 3,317 3,317 -
Compensated absences 1,236,487 1,179,201 (1,065,833) 1,349,855 1,004,936 344,919 Total business-Type activities $ 41,161,539 62,790,999 $ (8,274,767) $ 95,677,771 $ 8,124,972 $ 87,552,799 $ 2012 Corona Utility Authority Water Revenue Bonds
On August 1, 2012, the Corona Utility Authority issued the 2012 Water Revenue bonds in the amount of $35,880,000 (plus a net original issue premium of $5.8 million) with interest rates ranging from 1.0% to 5.0% to refund several outstanding City debts and to fund certain capital improvement projects for the Water Utility. The CUA 2012 Water Revenue bonds possessed an underlying credit rating of "AA" from Standard & Poor's.

The refunded debts were the CPFA 1998 Water Revenue bonds and the recycled water portion of the 2003 Certificates of Participation (Clearwater Cogen/Recycled Water Project). Of the total proceeds, $12.3 million was to fund for the construction of certain reservoir and blending facilities.

The outstanding bonds bear interest rates from 2.0% to 5.0% and are due in annual installments ranging from $1,165,000 to $2,395,000 through 2030 with term bonds in the amount of $5,155,000 due on September 1, 2032.

The bonds are considered a liability of the Water Utility Enterprise Fund.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2012 Corona Utility Authority Water Revenue Bonds (Continued) The future annual debt service requirements for the 2012 CUA Water Revenue bonds are presented below:

Year Ending
June 30, Principal Interest Total
2023 1,655,000 $ 1,070,725 $ 2,725,725 $
2024 1,740,000 985,850 2,725,850
2025 1,830,000 896,600 2,726,600
2026 1,915,000 812,550 2,727,550
2027 1,990,000 724,500 2,714,500
2028-2032 11,495,000 2,090,625 13,585,625
2033 2,640,000 66,000 2,706,000
Total $ 23,265,000 $ 6,646,850 $ 29,911,850
2013 Corona Utility Authority Wastewater Revenue Bonds
On June 26, 2013, the Corona Utility Authority issued the 2013 Wastewater Revenue bonds in the amount of 20,890,000 (plus a net original issue premium of $2.1 million) with interest rates ranging from 2.0% to 5.0%, to refund several outstanding City debts, and to fund certain capital improvement projects for the Water Reclamation Utility. The CUA 2013 Wastewater Revenue bonds possessed an underlying credit rating of "AA" from Standard & Poor's.

The refunded debts included the Biosolids Project portion of the 2003 Certificates of Participation (Clearwater Cogen/Recycled Water Project), the outstanding CPIC 1997 Certificates of Participation (Sunkist Plant), and the State Water Resources Control Board loan contract # 6-807- 5850-0 (WWTP#1). Of the total proceeds, $3.9 million was to fund the improvement of certain influent screening, aeration and centrifuge facilities at Water Reclamation Facility No. 1.

The outstanding bonds bear interest rates from 2.0% to 5.0% and are due in annual installments ranging from $590,000 to $2,400,000 through 2028 with term bonds in the amount of $2,860,000 due on September 1, 2031.

The bonds are considered a liability of the Water Reclamation Utility fund. The future annual debt service requirements for the 2013 CUA Wastewater Revenue Bonds are presented below:

Year Ending
June 30, Principal Interest Total
2023 $ 665,000 $ 353,800 $ 1,018,800
2024 690,000 323,250 1,013,250
2025 725,000 287,875 1,012,875
2026 760,000 250,750 1,010,750
2027 800,000 211,750 1,011,750
2028-2032 4,575,000 485,625 5,060,625
Total $ 1,913,050 8,215,000 $ 10,128,050 $
2021 Taxable Pension Obligation Bonds
See Note 11A at page 91 for more detail.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
97 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Brine Line System Discharge Right Agreement
On November 5, 2014, the City Council and the Corona Utility Authority Board authorized an agreement for the assignment of California Rehabilitation Center's wastewater discharge rights by and among the City of Corona, the Western Municipal Water District of Riverside County, the California Department of Corrections and Rehabilitation, and the City of Norco. The City of Corona purchased 750,000 gallons per day wastewater disposal right from the City of Norco through the Santa Ana Regional Interceptor (SARI) or Inland Empire Brine Line for a total amount of $9,864,651. Initial principal payment of $1,000,000 was made in June 2015, and the remaining balance was to be amortized at an interest rate of 3.00% over 20 years through 2035. Annual payment is $600,000. As of June 30, 2022, outstanding balance on the debt was $6,304,926. The future annual debt service requirements per the agreement are presented below:

Year Ending
June 30, Principal Interest Total
2023 410,852 $ 189,148 $ 600,000 $
2024 423,178 176,822 600,000
2025 435,873 164,127 600,000
2026 448,949 151,051 600,000
2027 462,418 137,582 600,000
2028-2032 2,528,690 471,310 3,000,000
2033-2035 1,594,966 93,356 1,688,322
Total 6,304,926 $ 1,383,396 $ 7,688,322 $
Western Municipal Water District Contracts Payable
Contracts payable arise from the acquisition of certain water and water reclamation facilities and represent amounts due to Western Municipal Water District payable from future water and water reclamation connection fees associated with the acquired facilities. Future connections are provided as needed in the area and as such cannot be scheduled. When connection fees are received, the amounts attributable to the cost of physical connection are recognized as revenue and any additional amounts are credited to the contributed capital account.

The amount outstanding at June 30, 2022 was $690,390, with 50% of the obligation attributable to the Water Utility and 50% attributable to Water Reclamation Utility. There is no debt service payment schedule for the contract payable.

State Revolving Fund Loan Contract No. C-06-4802-110
On June 10, 2003, the City and the State Water Resources Control Board of the State of California entered into a State Revolving Fund Loan Contract No. C-06-4802-110 for a maximum amount of $30,228,817, for construction of facilities at the Water Reclamation Facility No. 1. These facilities will provide recycled water to existing and future customers within the City. The loan is payable over a period of 20 years at an interest rate of

2.50% in equal annual installments of $1,944,995 through 2026. The amount outstanding at June 30, 2022 was $7,317,022. Annual future debt service requirements for the loan are presented below:

Year Ending
June 30, Principal Interest Total
2023 1,762,070 $ 182,926 $ 1,944,996 $
2024 1,806,121 138,874 1,944,995
2025 1,851,275 93,721 1,944,996
2026 1,897,556 47,439 1,944,995
Total 7,317,022 $ 462,960 $ 7,779,982 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
98 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
State Revolving Fund Loan Contract No. C-06-7834-110
On February 1, 2014, the City and the State Water Resources Control Board of the State of California entered into a State Revolving Fund Loan Contract No. C-06-7834-110 for a maximum amount of $11,259,585, for the construction of the tertiary filtration project at the Water Reclamation Facility No. 2. The construction of the tertiary filtration process will allow for the production of 3.67 million gallons per day of peak capacity of Title 22 reclaimed water. The loan is payable over a period of 30 years at an interest rate of 2.10% in equal annual installments of $509,441 through 2046. The amount outstanding at June 30, 2022 is $9,830,271. Annual future debt service requirements for the loan are presented below:

Year Ending
June 30, Principal Interest Total
2023 303,005 $ 206,436 $ 509,441 $
2024 309,369 200,073 509,442
2025 315,865 193,576 509,441
2026 322,498 186,943 509,441
2027 329,271 180,170 509,441
2028-2032 1,753,025 794,180 2,547,205
2033-2037 1,944,988 602,218 2,547,206
2038-2042 2,157,973 389,234 2,547,207
2043-2047 2,394,277 152,929 2,547,206
Total $ 9,830,271 $ 2,905,759 $ 12,736,030
Water Enterprise Fund Vehicle Lease Payable
The City entered into a lease agreement with Enterprise FM Trust, a private lender, in the amount of $34,653 for right to use of vehicles. The lease is payable over a five-year period. Principal and interest to maturity are as follows.

Year Ending
June 30, Principal Interest Total
2023 3,317 $ $ 3,322 5 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
99 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Pledged Revenues
The City has pledged, as security for its water revenue bonds and term loans, a portion of the utility customer revenues, net of specified operating expenses, to repay $48,627,291 in outstanding debts as of June 30, 2022.

These debts were to provide financing for various capital projects of the City, including the construction of certain water system and wastewater treatment facilities. The bonds and loans are payable solely from the City's utility customer net revenues. Annual principal and interest payments on these bonds are expected to require less than

21.79% of net revenues subject to the pledge. The total remaining debt service including interest to be paid on these obligations are $60,555,912. Principal and interest paid for the current year was $6,213,336, and total customer net revenue subject to pledge was $28,516,437.

Compensated Absences
The balance at June 30, 2022, was $1,349,855. See Note 10 for more detailed information.

C. Fiduciary Funds
The following long-term obligations were approved by California State Department of Finance as enforceable obligations and were considered as accounting liabilities in accordance with GAAP.

Balance Balance Due within Due in More
July 01, 2021 Additions Deletions June 30, 2022 One Year Than One Year Fiduciary Activities:

Public Offering
2021 Pension Obligation Bond - $ 76,802 $ (4,695) $ 72,107 $ 4,458 $ 67,649 $ 2007 Temescal Canyon Project Area
Tax Allocation 12,790,000 - (880,000) 11,910,000 890,000 11,020,000 2007 Project Area "A" Taxable Tax
Allocation Bonds 22,025,000 - (685,000) 21,340,000 730,000 20,610,000 2015 Tax allocation refunding bonds,
Series "A" 7,575,000 - (2,800,000) 4,775,000 2,330,000 2,445,000 Unamortized Bond Premium 723,443 - (241,148) 482,295 - 482,295 Total fiduciary activities $ 76,802 43,113,443 $ (4,610,843) $ 38,579,402 $ 3,954,458 $ 34,624,944 $ City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
100
Note 11 – Long-Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
The Successor Agency's outstanding bonds from public offerings of $42,390,000, contain a provision that if any event of default should occur, the trustee shall at the written direction of the Bond Owners of a majority in aggregate principal amount outstanding, and upon receipt of the prior written consent of the Bond Insurer, declare the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately.
2007 Temescal Canyon Project Area Tax Allocation Bonds
The $22,155,000 of Temescal Canyon Project Area 2007 Tax Allocation Bonds were issued to facilitate the transformation of a former mining facility and blighted area into developed backbone infrastructure improvements within the project area. The bonds bore interest from 4.00% to 4.50% and were due in annual installments ranging from $495,000 to $735,000, with term bonds of $1,475,000 due November 1, 2022, $1,515,000 due November 1, 2024, $1,650,000 due November 1, 2026, $2,760,000 due November 1, 2029 and $3,155,000 due November 1, 2032. The escrow term bonds in the amount of $3,465,000 bore interest at 4.50% and is due November 1, 2032.

The annual debt service requirements for the 2007 Temescal Canyon Tax Allocation Bonds are presented below:

Year Ending
June 30, Principal Interest Total
2023 890,000 $ 511,506 $ 1,401,506 $
2024 900,000 472,156 1,372,156
2025 940,000 431,703 1,371,703
2026 975,000 389,603 1,364,603
2027 1,025,000 345,634 1,370,634
2028-2032 5,845,000 981,338 6,826,338
2033 1,335,000 30,038 1,365,038
Total $ 3,161,978 11,910,000 $ 15,071,978 $
2007 Project Area "A" Taxable Tax Allocation Bonds
The $29,550,000 of Project Area "A" 2007 Taxable Tax Allocation Bonds were issued on a parity basis with the 2004 Tax Allocation Bonds to further facilitate the rehabilitation of a retail center and the development of mixed used commercial, hotel, office, and light industrial projects within the Merged Downtown project area. The bonds bore interest from 4.69% to 6.25% and were due in annual installments ranging from $315,000 to $1,140,000, with term bonds of $23,850,000 due September 1, 2027. The annual debt service requirements for the 2007 Project Area "A" Tax Allocation Bonds are presented below:

Year Ending
June 30, Principal Interest Total
2023 $ 730,000 $ 1,311,777 $ 2,041,777
2024 785,000 1,264,402 2,049,402
2025 3,760,000 1,122,280 4,882,280
2026 4,145,000 875,091 5,020,091
2027 5,450,000 575,055 6,025,055
2028 6,470,000 202,317 6,672,317
Total $ 5,350,922 21,340,000 $ 26,690,922 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
101
Note 11 – Long-Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
2015 Tax Allocation Refunding Bonds Series A
The $16,895,000 of the Subordinate Tax Allocation Refunding Bonds Series A were issued to refund a portion of the 1996 Set-Aside Tax Allocation Bonds and 2004 Project Area "A" Tax Allocation Bonds. The bonds bore interest from 3.00% to 5.00% and were due in annual installments ranging from $1,635,000 to $2,800,000, with term bonds of $2,445,000 due September 1, 2023.

The annual debt service requirements for the 2015 Tax Allocation Refunding Bonds Series A are presented below:

Year Ending
June 30, Principal Interest Total
2023 2,330,000 $ 180,500 $ 2,510,500 $
2024 2,445,000 61,125 2,506,125
Total $ 241,625 4,775,000 $ 5,016,625 $
2021 Taxable Pension Obligation Bonds
See Note 11A at page 91 for more detail.

Pledged Revenue
Due to the dissolution of the former Corona Redevelopment Agency, the tax increment funds that were pledged to the bondholders were no longer received in full by the Agency. AB X1 26 restructured the former redevelopment agencies' revenue from tax increment to Redevelopment Property Tax Trust Fund (“RPTTF”).

RPTTF funds are distributed semi-annually to the Successor Agency to pay enforceable obligations approved by the DOF on the Recognized Obligations Payment Schedule (“ROPS”). The total principal and interest remaining on the Successor Agency debt obligations were $46,779,525 with annual debt service requirements as listed above. For the current year, the total RPTTF funds available to the Successor Agency for the payment of these indebtedness was $9,183,265 and the debt service payments on the bonds was $6,580,183.

D. Non-City Obligation
Special Assessment District Bonds (Non-City Obligation) The payment of these bonds is secured by valid assessment liens upon certain lands in each district and is not a direct liability of the City. Reserves have been established from the bond proceeds to meet delinquencies should they occur. Neither the faith and credit nor taxing power of the City of Corona is pledged to the payment of the bonds. If delinquencies occur beyond the amounts held in those reserves, the City has no duty to pay those delinquencies out of any other available funds. The City acts solely as an agent for those paying the assessments and the bondholders.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
102
Note 11 – Long-Term Liabilities (Continued)
D. Non-City Obligation (Continued)
As of June 30, 2022, the special assessment district bonds' balances outstanding were:

Balance at
June 30, 2022
Assessment Districts:

AD 96-1, Series 1997 A 20,000 $
AD 96-1, Series 1997 B 60,000
AD 96-1, Series 1999 A 460,000
Total Assessment Districts $ 540,000
Community Facilities District Bonds (Non-City Obligation) These bonds are authorized pursuant to the Mello-Roos Community Facilities Act of 1982 as amended and are payable from special taxes levied on property within the Community Facilities Districts according to a methodology approved by the voters within the District and by the City Council. Neither the faith and credit nor taxing power of the City is pledged to the payment of the bonds. Reserves have been established from the bond proceeds to meet delinquencies should they occur. If delinquencies occur beyond the amounts held in those reserves, the City has no duty to pay the delinquency out of any available funds of the City. The City acts solely as an agent for those paying taxes levied and the bondholders.

The following Community Facilities Districts Bonds are currently active:

Balance at
June 30, 2022
Community Facilities Districts
$ CFD 97-2, Refunding 2014 Series A Bonds 2,350,000 9,525,000 $ CFD 2002-1 Dos Lagos 2017 Special Tax Refunding 10,855,000 13,455,000 CFD 2002-1 Dos Lagos 2017 IA Special Tax Refunding 5,930,000 7,125,000 CFD 2002-4 2017 Special Tax Refunding Bond 5,565,000 7,010,000 CFD 2016-2 2018 Special Tax Bonds 5,140,000 5,475,000
CFD 2018-1 Bedford IA1, 2018 Special Tax Bonds 8,910,000 9,000,000 CFD 2017-2 Valencia/Seville 2018 Special Tax Bonds 3,510,000 3,650,000 CFD 2000-1, 2020 Special Tax Refunding Bond 3,415,000 4,175,000 CFD 2001-2, 2020 Special Tax Refunding Bond 1,785,000 2,150,000 CFD 2003-2, 2020 Special Tax Refunding Bond 4,450,000 5,200,000 CFD 2004-1, 2020 Special Tax Refunding Bond 2,200,000 2,505,000 CFD 2018-1 Bedford IA1, 2020 Special Tax Bonds 10,240,000 10,240,000 Total Community Facilities Districts $ 64,350,000
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
103
Note 11 – Long-Term Liabilities (Continued)
E. Conduit Debt Obligations
Not included in the accompanying financial statements are various conduit debt obligations issued under the name of the City and/or the Agency. The Bonds are not secured by or payable from revenues or assets of the City or Agency. Neither the faith and credit nor the taxing power of the City, the Agency, the State of California or any political subdivision thereof is pledged to the payment of the principal of and interest on the Bonds nor is the City or the Agency in any manner obligated to make any appropriations for payments on these bonds. At June 30, 2022, the aggregate principal amount of Conduit Debt Obligations outstanding totaled $59,316.

F. Bond Requirement
The City adopted an Administrative Policy No. 300.22, City Bond Compliance, on July 23, 2012. The purpose of the policy is to ensure all requirements of the federal and state law necessary to preserve the tax advantages of the City bonds are continuously complied with for the requisite periods. The policy covers the investment and expenditure of bond proceeds, the use of bond-financed facilities and other administrative requirements including continuing disclosure, arbitrage calculation and records retention.

At June 30, 2022, management believes the City and its component units are in compliance with all covenants of the various debt indentures.

Note 12 – Risk Management
A. Workers' Compensation Insurance
The City's self-insured retention is $1,000,000 with an excess policy insuring claims over $4,000,000 up to a limit of $45,000,000. Departments are charged a percentage of the total estimated insurance, claims expense and premiums based on payroll costs. The actuarial estimated liability for pending and incurred, but not reported claims at June 30, 2022 has been included in the Claims Payable amount for the same reporting period. As of June 30, 2022, the City's workers' compensation self-insurance program was funded at a confidence level of 80%.

The following table presents claims and judgments payable for the City's workers' compensation self-insurance program for the year ended June 30, 2022, and its two preceding years:

Current Year Current Year
Balance at Claims and Changes Claim Balance at
Year Ended July 1 in Estimates Payments June 30
June 30, 2020 19,745,716 $ 1,267,601 $ (1,332,648) $ 19,680,669 $ June 30, 2021 19,680,669 2,964,991 (2,612,001) 20,033,659 June 30, 2022 20,033,659 2,592,172 (1,901,270) 20,724,561 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
104
Note 12 – Risk Management (Continued)
B. General Liability Insurance
The City's self-insured retention is $500,000 with an excess policy insuring claims over $500,000 up to a limit of $10,000,000. A third-party administrator administers claims. The actuarial estimated liability for pending and incurred, but not reported claims at June 30, 2022 has been included in the Claims Payable amount for the same reporting period. These liabilities are recognized on government-wide statements. As of June 30, 2022 , the City's General Liability self-insurance program was funded above the confidence level of 90%.

The following table presents claims and judgments payable for the general liability self-insurance program, including property losses, for the year ended June 30, 2022, and its two preceding years:

Current Year Current Year
Balance at Claims and Changes Claim Balance at
Year Ended July 1 in Estimates Payments June 30
June 30, 2020 2,452,638 $ $ (748,391) $ (185,755) $ 1,518,492 June 30, 2021 1,518,492 (106,890) (122,520) 1,289,082
June 30, 2022 1,289,082 240,385 (142,657) 1,386,810
C. Property Losses (Excluding Earthquake or Flood)
The City's property losses are covered by insurance policies for covered value of $100,000,000 with deductibles ranging from $2,500 to $50,000. The estimated liability for pending and incurred but not reported claims at June 30, 2022 has been incorporated in the financial statements as claims and judgement payable in the Liability Risk Internal Service Fund and are based on history only.

D. Adequacy of Coverage
There have been no significant changes in insurance coverage as compared to last year and settlements have not exceeded coverage in each of the past three fiscal years.

Note 13 – Pension Plan
A. General Information about the Pension Plan
Plan Description
The City contribution to the California Public Employees Retirement System (“CalPERS”), an agent multipleemployer defined benefit pension plan for miscellaneous employees and safety police employees and a costsharing multiple-employer defined benefit plan for safety fire employees. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statue and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2020 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
105
Note 13 – Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows:

Classic PEPRA Classic PEPRA Classic PEPRA
Prior to On or after Prior to After Prior to After
Hire date January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 62 3.0% @ 50 2.7% @ 57 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 yrs 52 yrs 50 yrs 50 yrs 50 yrs 50 yrs

2.0%-2.7%,
50 yrs -55 yrs,
respectively

1.0%-2.5%,
52 yrs - 62 yrs,
respectively

3.0%, 50 yrs 2.0% - 2.7%,
50 yrs -57 yrs,
respectively

3.0%, 50 yrs 2.0% - 2.7%,
50 yrs -57 yrs,
respectively
Required Contribution Rates:

Employee (Measurement Period) 8.00% 5.75% 9.00% 12.50% 9.00% 13.75% Employee (FY21-22) 8.00% 6.50% 9.00% 13.25% 9.00% 13.75% Employer (Measurement Period) 11.703% 11.703% 23.749% 23.749% 25.540% 13.884% Employer (FY21-22) 11.390% 11.390% 24.240% 24.240% 25.590% 13.980% Miscellaneous Agent Plan Safety - Police Agent Plan Safety - Fire Cost-Sharing Plan Monthly benefits, as a % of eligible
compensation
Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service years.

Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefits to safety employees only. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation.

An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six month’s salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis up to 2 percent.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
106
Note 13 – Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms
At June 30, 2020, the valuation date, the following employees were covered by the benefit terms:

Miscellaneous Safety - Police Classic PEPRA
Active employees 355 143 71 17
Transferred and terminated employees 652 33 59 7
Retired employees and beneficiaries 774 192 129 -
Total 1,781 368 259 24
Plans
Safety - Fire
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The required contribution rates are shown in the Benefit Provided Section on page 103.

B. Net Pension Liability
Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Payroll Growth 2.750%
Investment Rate of Return
Retirement Age
Mortality Rate Table(1) Derived using CalPERS’ Membership Data for all Funds. (1)The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

The probabilities of Retirement are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015 Entry Age Normal

7.15%

2.50%
Varies by Entry Age and Service
7% net of pension plan investment and administrative
expense; includes inflation.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
107
Note 13 – Pension Plan (Continued)
B. Net Pension Liability (Continued)
Change of Assumptions
In 2021, there were no changes of assumptions.

Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Assumed Asset Real Return Real Return
Asset Class(1) Allocation Years 1 - 102 Years 11+3
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
2 An expected inflation rate of 2.00% used
3 An expected inflation rate of 2.92% used
(1) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
108
Note 13 – Pension Plan (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City’s Miscellaneous Plan recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 381,800,134 $ 265,071,755 $ 116,728,379 $ Changes Recognized for the Measurement Period:

Service cost 4,403,881 - 4,403,881
Interest on the total pension liability 26,674,374 - 26,674,374 Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience (944,320) - (944,320) Net plan to plan resource movement - (53,189) 53,189
Contributions from the employer - 13,698,657 (13,698,657) Contributions from employees - 2,009,054 (2,009,054)
Net investment income - 60,189,073 (60,189,073)
Benefit payments, including refunds
of employee contributions (19,979,193) (19,979,193) -
Administrative expense - (264,791) 264,791
Other - - -
Net Changes during July 1, 2020 to June 30, 2021 10,154,742 55,599,611 (45,444,869) Balance at June 30, 2021 (Measurement Date) 391,954,876 $ 320,671,366 $ 71,283,510 $ Increase (Decrease)
The following table shows the changes in net pension liability for the City’s Safety Police Plan recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 283,735,836 $ 192,119,500 $ 91,616,336 $ Changes Recognized for the Measurement Period:

Service cost 5,647,902 - 5,647,902
Interest on the total pension liability 20,210,480 - 20,210,480 Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience 2,604,970 - 2,604,970 Net plan to plan resource movement - - -
Contributions from the employer - 13,995,784 (13,995,784) Contributions from employees - 1,715,846 (1,715,846)
Net investment income - 44,733,798 (44,733,798)
Benefit payments, including refunds of employee
contributions (13,001,364) (13,001,364) -
Administrative expense - (191,916) 191,916
Other - - -
Net Changes during July 1, 2020 to June 30, 2021 15,461,988 47,252,148 (31,790,160) Balance at June 30, 2021 (Measurement Date) 299,197,824 $ 239,371,648 $ 59,826,176 $ Increase (Decrease)
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
109
Note 13 – Pension Plan (Continued)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability and Pension Expense The following table shows the City’s Safety Fire Plan’s proportionate share of the risk pool collective net pension liability over the measure period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 188,753,382 $ 135,930,043 $ 52,823,339 $ Balance at June 30, 2021 (Measurement Date) 196,176,593 163,260,062 32,916,531 Net changes during 2020-21 7,423,211 27,330,019 (19,906,808) Safety Plan - Fire
Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2020). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2021). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2021 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2020-21). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the measurement date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the measurement date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the measurement date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on the City’s share of net pension liability at the end of measurement date.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
110
Note 13 – Pension Plan (Continued)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The City’s proportionate share of the net pension liability was as follows:

Safety Plan
Fire
June 30, 2020 0.4855%
June 30, 2021 0.6086%
Change - Increase (Decrease) 0.1231%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan 124,555,575 $ 71,283,510 $ 27,636,807 $ Safety Plan - Police 102,880,279 $ 59,826,176 $ 24,749,345 $ Safety Plan - Fire 59,323,593 $ 32,916,531 $ 11,226,391 $ Plan's Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized aggregated pension expense in the amount of $14,920,167 ($1,686,782, $7,456,000 and $5,777,385 for the Miscellaneous, Safety Police, and Safety Fire Plans, respectively).

As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 126,731,631 $ - $ Changes of assumptions - -
Difference between expected and actual experience 210,760 (533,746) Net difference between projected and actual earning
on pension plan investments - (30,231,673)
Total 126,942,391 $ (30,765,419) $
Miscellaneous Plan
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
111
Note 13 – Pension Plan (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 103,659,698 $ - $ Changes of assumptions - (76,116)
Difference between expected and actual experience 3,332,169 - Net difference between projected and actual earning
on pension plan investments - (22,630,127)
Total 106,991,867 $ (22,706,243) $
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 60,685,514 $ - $ Changes of assumptions - -
Difference between expected and actual experience 5,623,758 - Net difference between projected and actual earning
on pension plan investments - (19,591,660)
Adjustment due to differences in proportions 1,893,358 - Difference between City's contribution and
proportionate share of contribution: - (3,184,251)
Total 68,202,630 $ (22,775,911) $
Safety Plan - Police
Safety Plan - Fire
The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Miscellaneous Plan, Safety Police Plan and the Safety Fire Plan risk pool for the 2020-21 measurement period is 2.3, 3.8, and

3.7 years, which was obtained by dividing the total service years of 4,082, 1,392 and 561,622 (the sum of remaining service lifetimes of the active employees) by 1,781, 368 and 150,648 (the total number of participants:
active, inactive, and retired), respectively.
$126,731,631, $103,659,698, and $60,685,514 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2023.

Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:

Measurement Period
Ending June 30 Miscellaneous Safety Police Safety Fire
2022 (7,840,176) $ (3,973,382) $ (2,584,300) $
2023 (7,186,151) (4,326,641) (3,138,735)
2024 (7,236,784) (4,892,057) (4,144,409)
2025 (8,291,548) (6,181,994) (5,391,351)
Total (30,554,659) $ (19,374,074) $ (15,258,795) $
Deferred Outflows/(Inflows) of Resources
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
112
Note 14 – Other Postemployment Benefits (“OPEB”)
A. General Information about the OPEB Plan
Plan Description
The City's OPEB includes retiree medical and life insurance benefits, or, in some cases, an HRA contribution toward medical coverage of the retiree's choosing.

In October 2007, the City Council executed the City of Corona Retirement Benefits Plan, a single-employer plan, for funding the Other Post-Employment Benefits (OPEB). In March 2008, the City Council passed a resolution authorizing the City to prefund its OPEB obligation through the California Employers' Retiree Benefit Trust Program (CERBT), an IRC Section 115 trust fund dedicated to prefunding OPEB for all eligible California public agencies. CERBT is administered by the California Public Employees' Retirement System (CalPERS) Board of Administration.

The City's funding policy affects the calculation of liabilities by impacting the discount rate that is used to develop the plan liability and expense. "Prefunding" is the term used when an agency consistently contributes an amount based on an actuarially determined contribution (ADC) each year. GASB 75 allows prefunded plans to use a discount rate that reflects the expected earnings on trust assets.

The City has been and continues to prefund its OPEB liability, contributing 100% or more of the Actuarially Determined Contributions each year. Therefore, with the City's approval, the discount rate used in this valuation is 6.05%, the long-term expected return on trust assets.

Eligibility and Membership Covered by Benefit Terms
Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS, which requires either (a) attainment of age 50 (age 52, if a miscellaneous member new to PERS on or after January 1, 2013) with 5 years of State or public agency service or (b) an approved disability retirement.

The employee must begin his or her retirement warrant within 120 days of terminating employment with the City to be eligible to continue medical coverage through the City and be entitled to the employer subsidy. If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement or during any future open enrollment period. Coverage may be continued at the retiree's option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage.

At June 30, 2021 measurement date, the following numbers of participants were covered by the benefit terms:

Active plan members 640
Inactive plan members currently receiving benefits 609
Inactive plan members entitled to but not receiving benefits 136 Total 1,385
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
113
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) A. General Information about the OPEB Plan (Continued)
Contributions
The plan and its contribution requirements are established by Memorandum of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the measurement date ended June 30, 2021, the City's cash contributions were $ 10,744,736 in total payments, which were recognized as a reduction to the OPEB liability.

B. Net OPEB Liability
The OPEB liability was measured as of June 30, 2021, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021.

Significant Actuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2021, was determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Asset Valuation Method
Long Term return on Assets
Discount Rate
Inflation
Salary Increases
Mortality Improvement
Healthcare Trend
CalPERS 2017 Experience Study; Project with MW Scale

5.6% in 2023, decrease until reaches 3.9% in 2076 and
thereafter.
3% per year, since benefits do not depend on salary, this is used only to allocate the cost of benefits between service years
Entry Age Normal
Market value of assets

6.05% as of June 30, 2021 and 6.8% as of June 30, 2020 net of plan investment expense

6.05% as of June 30, 2021 and 6.8% as of June 30, 2020

2.50%
Change in assumptions
In 2021, there were no changes in assumptions.

Discount Rate
The discount rate used to measure the total OPEB liability was 6.05%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
114
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liability (Continued)
Expected Long-Term Rates of Return
Long-term
Target Real Return Real Return
Asset Class Allocation Years 1 - 5* Years 5+*
Global Equity 49.00% 4.40% 4.50%
Fixed Income 23.00% -1.50% 0.40%
Global Real Estate (REITs)(1) 20.00% 3.00% 3.70%
Treasury Inflation Protected Securities 5.00% -1.80% 0.50% Commodities 3.00% 0.80% 1.10%
100.00%
* Preliminary estimate, pending confirmation by CalPERS C. Changes in Net OPEB Liability
The following presents the changes in the net OPEB liability for the governmental activities’ Retiree Health Plan:

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 $ 144,144,989 $ 51,771,433 $ 92,373,556 Changes Recognized for the Measurement Period:

Service Cost 1,087,703 - 1,087,703
Interest on the total OPEB liability 9,588,461 - 9,588,461 Expected investment income - 3,589,076 (3,589,076)
Employer contribution - 10,489,894 (10,489,894)
Changes of benefit terms - - -
Administrative expenses - (19,869) 19,869
Benefit payments (8,451,822) (8,451,822) -
Assumption changes 15,474,651 - 15,474,651
Plan experience (8,434,702) - (8,434,702)
Investment experience - 10,853,079 (10,853,079)
Contributions from the employer - - -
Net Changes during July 1, 2020 to June 30, 2021 9,264,291 16,460,358 (7,196,067) Balance at June 30, 2021 (Measurement Date) $ 153,409,280 $ 68,231,791 $ 85,177,489 Increase (Decrease)
Sensitivity of the Net OPEB Liability to Change in the Discount Rate 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 a discount rate that is 1 percentage-point lower (5.05 percent) or 1percentage- point higher (7.05 percent) than the current discount rate:

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
115
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) C. Changes in Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Change in the Discount Rate (Continued) Discount Rate Current Discount Discount Rate
-1% (5.05%) Rate (6.05%) +1 % (7.05%)
$ 85,177,489 105,242,629 $ 68,709,503 $
Plan's Net OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates 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 1 percentage-point lower or 1 percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost Healthcare Cost Healthcare Cost
Trend Rate - 1% Trend Rate Trend Rate + 1%
$ 85,177,489 68,585,271 $ 105,260,530 $
Plan's Net OPEB Liability
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the measurement period ended June 30, 2021, the City recognized OPEB expense of $2,745,056. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 10,744,736 $ - $ Changes in assumptions 16,658,398 (1,037,904)
Difference between expected and actual experience - (19,630,079) Net difference between projected and actual earning on
OPEB plan investments - (7,699,707)
Total 27,403,134 $ (28,367,690) $
The $10,744,736 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows:

Deferred
Measurement Period Outflows/(Inflows)
Ending June 30 of Resources
2023 (4,167,055) $
2024 (4,130,240)
2025 (3,874,479)
2026 (1,068,902)
2027 1,101,713
Thereafter 429,671
Total (11,709,292) $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
116
Note 15 – Classification of Fund Balances
At June 30, 2022, fund balances are classified in the governmental funds as follows:

Low Mod Income Development
Housing Assets Special Nonmajor Total
General Capital Projects Revenue Governmental Governmental Fund Fund Funds Funds Funds
Fund Balances:

Nonspendable:

Inventories and prepaid items 328,497 $ - $ - $ - $ 328,497 $ Long-term receivable 2,099,041 - - - 2,099,041
Advance to other funds 185,155,991 - - - 185,155,991
Total nonspendable - 187,583,529 - - 187,583,529
Restricted:

Pension 30,102,382 - - - 30,102,382
Housing and community
development - 37,622,892 - 6,012,278 43,635,170
Development projects - - 17,413,190 - 17,413,190
Street maintenance - - - 26,970,745 26,970,745
Trip reduction - - - 1,465,940 1,465,940
Asset forfeiture - - - 265,607 265,607
Special tax districts - - - 22,297,448 22,297,448
Other grants - - - 274,965 274,965
Residential refuse - - - 465,940 465,940
Debt service 124 - - - 124
Total restricted 37,622,892 30,102,506 17,413,190 57,752,923 142,891,511 Committed:

Emergency contingency 41,699,024 - - 41,699,024 -
Designated revenues 6,422,457 - - 6,422,457 -
Total committed 48,121,481 - - 48,121,481 -
Assigned:

Budget balancing measures 3,922,049 - - 3,922,049 -
Continuing appropriations 24,739,494 - - 24,739,494 -
Measure X reserve 23,327,465 - - 23,327,465 -
Other purposes 3,151,502 - 638,647 - 3,790,149
Total assigned 55,140,510 - 638,647 - 55,779,157
Unassigned 221,995 - (8,304,147) - (8,082,152)
Total Fund Balance $ 321,170,021 $ 37,622,892 $ 17,413,190 $ 50,087,423 $ 426,293,526 Note 16 – Commitments and Contingencies
The City has entered into several operating lease agreements in the conduct of its day-to-day operations to provide for facilities and/or services. None of these operating leases are considered to be significant commitments.

The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have material adverse effect on the financial position of the City.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
117
Note 16 – Commitments and Contingencies (Continued)
On September 28, 1995, the California Supreme Court reversed a Court of Appeals decision which reinstated provisions of Proposition 62 which was a 1986 voter initiative that required all general taxes to be approved by simple majority vote of the electorate. The Supreme Court provided very little detail on a number of issues surrounding their decision but the only possible exposure, if any, to the decision for the City would be its transient occupancy tax which was increased by 2% in 1989. It remains unclear what, if any, liability the City may have.

On July 18, 2012, the City Council and the Corona Utility Authority Board approved addendum No. 6 to the Joint Exercise of Powers Agreement creating the Western Riverside County Regional Wastewater Authority (WRCRWA) admitted the City of Corona as a voting member of the WRCRWA. WRCRWA was formed as a joint powers authority in 1992 to construct and operate a regional wastewater conveyance, treatment and disposal system to serve its member agencies. Other member agencies include Home Gardens Sanitary District, Jurupa Community Services District, City of Norco, and Western Municipal Water District of Riverside County. To become a voting member of WRCRWA, the City was required to pay $4 million as buy-in which represented membership and the WRCRWA's construction loan reserve requirement. The construction loan amount on the State Revolving Fund (SRF) loan for the WRCRWA Treatment Plan Expansion project was $74,110,619. The current participants and their obligated contribution on this loan through June 30, 2022, were as follows:

Percent
City of Corona 42.42%
Jurupa Community Services District 46.02%
City of Norco 9.10%
Home Gardens Sanitary District 1.58%
Western Municipal Water District 0.88%
Total 100.00%
On February 13, 2016, an incident occurred at the Water Reclamation Facility No. 1 causing 4.1 million gallons of fully treated water with chlorine residual released into a nearby creek. All necessary regulatory notifications were addressed in a timely manner, however, there might be a mandatory fine as well as an administrative fine assessed by the State Water Resources Control Board. The amount of the fine could not be reasonably estimated as of the financial statement date and would be solely determined by the State. As of date, the City has not received any notices of violation from the State.

As of June 30, 2022, in the opinion of City Administration, there were no additional outstanding matters that would have a significant effect on the financial position of the City.

Note 17 – Tax Abatement
In prior years, the City entered into various tax abatement agreements with local businesses. The abatements may be granted to any business located within or promising to relocate to the City. For the fiscal year ended June 30, 2022, the City abated taxes totaling $6,863,651. Under this program, the City has the following tax abatement agreements:
 A sales tax abatement to a commercial fueling and energy operation facility for expanding operations within the City of Corona, resulting in significant new local sales tax revenues. Per the agreement, the City shall pay an amount equal to 50% of sales tax revenues received in excess of $250,000.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
118
Note 17 – Tax Abatement (Continued)
 A sales tax reduction for a material production and construction company for creating employment opportunities and revenues within the City. Per the agreement, if during any fiscal year, sales tax revenues exceed $1,000,000 the amount abated shall be a sum equal to 50% of the sales tax revenues in excess of $250,000. If during any fiscal year, sales tax revenues are no less than $500,000 and no more than $1,000,000 the amount abated shall be a sum equal to 25% of the sales tax revenues in excess of $250,000. If during any fiscal year, sales tax revenues are less than $500,000 the City shall not pay the business.  A sales tax reduction for construction and operation of an automotive dealership within the City. Per the agreement, the City shall make annual payments for 15 years in an amount equal to 50% of the sales tax revenues received in excess of $200,000 annually, up to a maximum of $6,000,000.  A sales tax reduction for a warehouse wholesaler for building and operating a new store within the City. Per the agreement, sales tax revenues shall be allocated each year to the City from the first $200,000 of revenues, the next $200,000 to the developer and the balance allocated 50% to the City and 50% to the developer.  A sales tax reduction for a commercial business involving the retail sale of construction materials for generating significant new tax revenues and maintaining sales office operations within the City. Per the agreement, the City shall pay quarterly in an amount equal to 50% of the sales tax revenues received.  A sales tax reduction for a wholesale apparel retailer, for locating a new regional sales office within the City. Per the agreement, the City shall pay quarterly in an amount equal to 50% of the sales tax revenues received. Covenant Payments shall be equal to 60% of taxable sales if sales tax revenue exceeds $2,500,000, the Owner hires 150 new employees and Owner invests at least $51,500,000 into the City.

Note 18 – Restatement of Beginning Net Position and Fund Balance The beginning net position and fund balance were restated as follows:

Governmental
Fund
Governmental Water Enterprise Water Reclamation
Activities General Fund Fund Enterprise Fund
Net Position/Fund Balance, as previously reported $ 122,798,163 897,012,061 $ 133,811,791 $ 129,942,444 $ Unavailable revenue 3,163,103 - - -
Interfund loan - 172,628,344 (3,614,688) 3,614,688
Net Position/Fund Balance, as restated $ 295,426,507 900,175,164 $ 130,197,103 $ 133,557,132 $ Proprietary Fund
Net Position/Fund Balance
The beginning net position of governmental activities was restated to recognize the unbilled receivable for expenditures incurred in prior year.

The beginning fund balance of General Fund was restated due to the implementation of GASB Statement No. 87 and to report the interfund advances to Water and Water Reclamation Enterprise Funds in the amount total to $172,628,344 for the purchase financed enterprise utilities. See Note 8A for more detail.

Beginning net position of the Water Enterprise Fund and Water Reclamation Enterprise Fund was restated to report interfund loan between these two funds for advances in the amount total to $3,614,688 occurred prior to the year ended June 30, 2022. See Note 8B for more detail.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
119
Note 19 – Net Investment in Capital Assets
The net investment in capital assets for the governmental activities, business-type activities, and enterprise funds is calculated as follows:

Governmental Business-Type
Activities Activities
Total capital assets, net 805,581,115 $ 422,249,787 $
Unspent capital debt proceed - 323,622
Capital related deferred inflows of resources 417,968 - Retention payable (806,972) (702,777)
Capital related debt (30,586,802) (56,789,555)
Net investment in capital assets $ 774,605,309 $ 365,081,077 Water
Water
Reclamation Electric Transit Airport
Total capital assets, net 270,180,628 $ 139,238,723 $ 10,352,754 $ $ 2,444,031 $ 33,651 Unspent capital debt proceed 312,725 10,897 - - -
Retention payable (454,734) (248,043) - - -
Capital related debt (38,206,472) (18,583,083) - - -
Net investment in capital assets $ 231,832,147 $ 120,418,494 $ 10,352,754 $ 2,444,031 $ 33,651 Enterprise Funds
120

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
121
122
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 139,962,406 $ 151,310,723 $ 157,874,886 $ 6,564,163 Licenses and permits 1,928,400 2,087,500 2,521,625 434,125 Intergovernmental 1,791,265 3,329,943 4,027,178 697,235 Special assessments 497,332 570,746 573,201 2,455
Investment earnings 2,477,625 2,485,306 (5,693,460) (8,178,766) Fines and penalties 569,250 839,472 1,135,619 296,147
Current services 10,619,079 11,314,688 12,903,009 1,588,321 Payment in lieu of services 6,086,383 6,086,383 6,060,819 (25,564) Other revenues 11,534,124 11,633,818 12,219,443 585,625 Total revenues 175,465,864 189,658,579 191,622,320 1,963,741 EXPENDITURES:

Current:

General government:

City council 142,125 339,035 321,491 17,544
City attorney 1,761,315 5,607,740 5,607,740 -
City manager 4,333,045 10,090,137 9,110,492 979,645
City treasurer 15,682 25,494 25,494 -
Human resources 2,310,616 5,753,762 5,175,995 577,767
Finance 4,511,176 12,725,383 12,031,353 694,030
Non departmental 24,176,162 21,478,492 24,329,001 (2,850,509) Information technology - 131,010 24,268 106,742
Public safety- fire 30,621,029 90,050,587 88,959,047 1,091,540 Public safety- police 51,413,864 162,334,346 1,048,096 161,286,250 Public works and maintenance services 15,882,529 28,742,787 26,826,604 1,916,183 Community services 6,251,538 15,400,334 14,273,997 1,126,337 Planning and development 5,661,301 12,624,385 12,003,036 621,349 Economic development 1,019,827 2,535,387 2,369,713 165,674 Capital outlay 9,355,827 29,535,686 8,054,361 21,481,325 Debt service:

Principal retirement 4,243,273 18,053,818 17,048,744 1,005,074 Interest and fiscal charges - 2,163,455 3,306,976 (1,143,521) Total expenditures 161,699,309 417,591,838 390,754,562 26,837,276

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 13,766,555 (227,933,259) (199,132,242) 28,801,017 OTHER FINANCING SOURCES (USES):

Transfers in 1,281,600 1,200,000 1,197,681 (83,919)
Transfers out (441,557) (441,557) (269,916) 171,641
Issuance of debt - 222,013,459 223,947,991 1,934,532
Total other financing sources (uses) 758,443 222,853,502 224,875,756 2,022,254 NET CHANGE IN FUND BALANCE $ 14,524,998 $ (5,079,757) 25,743,514 $ 30,823,271 FUND BALANCE:

Beginning of year, as restated (Note 18) 295,426,507
End of year $ 321,170,021
City of Corona
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2022
123
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits $ 3,649,000 $ 3,046,732 $ 3,271,580 $ 224,848 Investment earnings 445,169 342,374 (950,844) (1,293,218) Payment in lieu of services - - 151,680 151,680
Other revenues - 11,903 - (11,903)
Total revenues 4,094,169 3,401,009 2,472,416 (928,593)
EXPENDITURES:

Current:

Public safety- fire 7,185 7,185 7,185 -
Public safety- police 651 651 651 -
Public works and maintenance services 45,531 45,531 45,531 - Community services 1,188 1,188 1,188 -
Capital outlay 2,348,074 20,196,498 1,308,197 18,888,301 Total expenditures 2,402,629 20,251,053 1,362,752 18,888,301 NET CHANGE IN FUND BALANCE $ 1,691,540 $ (16,850,044) 1,109,664 $ 17,959,708 FUND BALANCE:

Beginning of year 16,303,526
End of year $ 17,413,190
City of Corona
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Development Special Revenue Funds For the Year Ended June 30, 2022
124
The City collects and records revenue and expenditures within the following categories Business-type Activities
Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1 Before the beginning of the fiscal year the City Manager submits to the City Council a proposed budget for the year commencing July 1. 2 Public meetings are conducted to obtain taxpayer comments. 3 The budget is subsequently adopted through passage of a resolution and is not included herein but is published separately. 4 5 Continuing appropriations are re-budgeted by the City Council as part of the adoption of subsequent year's budget. 6 Legally adopted budget appropriations are set for the General Fund, Special Revenue , Debt service and Capital Projects funds.

The governmental funds include the General Fund, special revenue, debt service and capital projects funds. All funding sources are kept separate for both reporting and use of the money. The General Fund funds most of the City services including public safety, recreation, and community development. In Fiscal Year 2022, the City was in the sixth year of a ‘zero-based’ budget procedure, which is a rigorous, structured approach in evaluating each dollar that is appropriated to fund critical City services and programs. Prior to that change, the City utilized an ‘expenditure control budget’ (ECB) procedure for 23 years, as outlined in previously adopted budget resolutions. The ‘zero-based’ budget approach is more responsive to service needs which may expand and contract over time.

The budget process begins as a team effort in January of each year. The Finance Department works in cooperation with all City departments to formulate revenue projections for the upcoming fiscal year. From this, the individual departments use the projected revenues to prioritize and recommend the next fiscal year’s objectives. The City Manager’s Office and the Finance Department jointly review each budget proposal, revenue assumptions, and all current financial obligations, before preparing the proposed document for the City Council. The City Council reviews the budget at multiple budget workshops, with the final adoption scheduled in June.

All appropriations are as originally adopted or as amended by the City Council and all unencumbered budgeted amounts lapse at year-end.

However, grants may carry forward (continuing appropriation) to the next fiscal year as determined by the grant funding time period.

City of Corona
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
Through the budget process, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The annual budget establishes the foundation of effective financial management by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance in all of its functional areas. It assures the efficient and effective uses of the City's economic resources, as well as ensuring the highest priorities are accomplished for the fiscal year. It also serves as a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies.

The City’s budget cycle is on an annual basis, which serves a fiscal period from July 1 to June 30. The City’s budgets are developed consistent with generally accepted principles and procedures. There are no significant non-budgeted financial activities. For governmental funds, revenues are budgeted by entitlements, grants, and estimates of future development and economic growth. Expenditures and transfers are budgeted based upon available financial resources.

Budgetary Information
The City of Corona’s budget is prepared and based on five expense categories; personnel, non-personnel (such as supplies and services), capital outlay, debt service and capital improvement projects. The first two listed are considered operational in nature and are known as recurring costs.

Capital outlays refer to minor equipment purchases which are generally infrequent and valued at less than $50,000. Capital outlays are paid for out of the operating fund. Debt service refers to principal and interest payments on borrowed funds (such as bonds or long-term loans). Capital improvement projects (CIP) are asset acquisitions and/or major facilities, systems, and infrastructure improvements which cost over $50,000. These reside “outside” of the operational budget and are an example of a one-time cost.

Governmental Activities
125
7 8
General Fund
 The capital outlay budget was increased by a net total of $8.5 million. There was $5.1 million approved for a property acquisition. An appropriation of $1.1 million was added for the purchase of an Urban Search and Rescue Fire Apparatus. In addition, $1.2 million was appropriated for the Harrison Street Shelter Project and $715,000 for the Green Alleys Project. There were budgetary reductions for other projects that were completed or no longer needed.

Revenues and transfers in received in Fiscal Year 2022 had a favorable variance of $2.4 million, due to the following reasons:
 The Taxes category accounts for the majority of the variance for Revenue and Transfers. Property taxes were higher than estimated by $1.7 million, Sales tax was higher than estimated by $3.9 million, and Other Taxes were higher than estimated by $0.9 million. All of these areas outperformed the final budget estimates for the fiscal year.  The current services category was also higher than budgeted by $1.6 million. Approximately $1.0 million of the variances is related to building activities such as planning application fees, plan check, and engineering/inspection fees. There is a variance of $0.2 million for fire department related activity, including emergency medical services and various inspection services. Additionally, there is a variance of $0.1 million for activities related to Community Services, including passport revenues, recreation activities, and facility rentals.  The Intergovernmental category has a variance of $0.7 million, related to Federal grant activity. This category primarily accounts for grants and funding agreements with other governmental agencies.  Investment earnings has a negative variance of $8.2 million which includes book entries ($8.3 million) for investment gains and losses.

The expenditures and transfers out in FY 2022 had a favorable variance of $27.0 million. Included in the savings, $21.5 million is unspent funding for ongoing capital improvement projects. These funds will be carried over to the next fiscal year to complete the projects. Additionally, a total of $1.1 million will carry forward in the operating budget, as approved by the City Council. Of the $1.1 million carryover funds, there is $0.2 million for the homeless program operations and a total of $0.8 million for grants in the Fire Department, Police Department, and Community Services. In addition, purchase orders totaling $2.1 million encumbered in Fiscal Year 2022 will also be carried forward for activity that crosses fiscal years.

After considering the budgets carrying forward into Fiscal Year 2023 as noted above, the net savings for Fiscal Year 2022 is $2.3 million. The savings is primarily from the personnel budget due to vacancies throughout the year. There were 61 new positions included in Fiscal Year 2022, largely due to the passage of Measure X. With the additional positions, there was an increase in the vacancy savings for Fiscal Year 2022. Public Works/Maintenance Services had a positive variance of $1.1 million in the personnel budget. The Police Department personnel budget experienced a savings of $0.7 million, Community Services had $0.9 million, Finance had $0.6 million, and Fire finished the year with a savings of $0.3 million.

Required Supplementary Information (Unaudited)
 The operating budget was increased by a total of $18.1 million. The primary increase is related to the issuance of the pension obligation bonds. The General Fund debt service principal and interest expense budget increased by $16.0 million. The Economic Development Department budget was increased by $0.5 million to for a budget correction related to two purchase orders. The Police and Fire departments were increased by $0.4 million for grant related activity.

City of Corona
Notes to the Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2022
General Fund appropriations and transfers out were originally adopted at $161.7 million for Fiscal Year 2022. Final appropriations were increased by $255.9 million to $418.0 million. Among the budgetary increase, $11.4 million was due to continuing appropriations from the prior year’s capital projects and grant funded activities and $2.3 million was for prior year committed purchases (encumbrances). There was $242.2 million in supplemental funding and transfers approved by the City Council subsequent to the budget adoption due to the following reasons:

The legal level of budgetary control is at the department level. A Department Director may transfer appropriations within the department.

Expenditures may exceed appropriations at this level in the General Fund to the extent provided for in the annual budget resolution adopted by the City Council. The City Council, by the affirmative vote of three members, may amend the budget to add or delete appropriations, transfer between appropriations within a fund or change appropriation transfers between funds. Departments consolidated and presented under the General Government category are managerial and support departments that include City Council, City Treasurer, Management Services, Finance, Human Resources, Legal and Risk Management, and General Government (non-departmental).

Budgets for General Fund, Special Revenue, Debt Service and Capital Projects funds are adopted on a basis consisted with generally accepted accounting principles.
 The personnel budget increased by $215.7 million in Fiscal Year 2022. In October 2021, the City issued pension obligation bonds totaling $272.0 million. To record the bond issuance, the General Fund budget was increased by $210.6 million. In early 2022, negotiations were completed with the various labor groups. The General Fund budget was increased by $5.1 million to account for the respective salary and benefit changes approved by the City Council.
126
•
•
Assessment Date PCI Rating
September 2018 73
October 2019 72
October 2020 71
November 2021 71
September 2022 71
The following conditions were defined with the corresponding rating:

Condition Rating
Good to Excellent 71-100
Fair 51-70
Poor 26-50
Very Poor 0-25
City of Corona
Required Supplementary Information (Unaudited)
Modified Approach for City Streets Infrastructure Capital Assets For the Year Ended June 30, 2022
The City accounts for and reports its infrastructure capital assets in accordance with GASB Statement No. 34. Infrastructure assets are defined as the basic physical systems including street, water purification and distribution system, water reclamation collection and treatment facilities, park and recreation lands and improvement; stormwater conveyance system, and buildings combined with site amenities such as parking and landscaped areas used by the City in the conduct of City business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems in its core financial systems.

The City has elected to use the "modified approach" as defined by GASB Statement No. 34 for infrastructure reporting for its concrete and asphalt pavement system. Under the modified approach, eligible infrastructure capital assets are not required to be depreciated under the following requirements:

The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) condition assessments and summary of results using a measurement scale; and (3) estimation of annual amount needed to maintain and preserve the assets at the established condition assessment level.

The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level.

The City commissioned a study to update the physical condition assessment of the streets within three regions of the City annually. The prior assessment study was completed in March 2019. The most recent assessments were performed using the StreetSaver software. The results from the assessments are shown below:

The streets, primarily Portland Cement Concrete (PCC) and Asphalt Concrete (AC) pavement, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. City-owned streets are classified based on land use, access, and traffic utilization, into the following three classifications: arterial/major, collector, and local. The Citywide condition assessment will be performed every three years, with each year focusing on specific regions of the City. Each street was assigned a physical condition based on 17 potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. 127
Condition % of Streets
Good to Excellent 48%
Fair 42%
Poor 8%
Very Poor 2%
Fiscal Year Requirement Expenditures Rating
2017-2018 $ 4,800,000 $ 20,576,034 71
2018-2019 4,800,000 36,631,051 73
2019-2020 4,800,000 37,286,497 72
2020-2021 6,000,000 28,349,295 71
2021-2022 6,000,000 21,336,640 71
Required Supplementary Information (Unaudited)
City of Corona
Modified Approach for City Streets Infrastructure Capital Assets (Continued) For the Year Ended June 30, 2022
The City's policy is to maintain an average rating of 71, or "Good" condition, for all streets. This rating level allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of September 2022, the City's street system was rated at a PCI index of 71 on the average for the entire network. A breakdown by condition is as follows:

The City’s streets are constantly deteriorating resulting from the following four factors: (1) traffic using the streets; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development interest trenching operations; and (4) water damage from natural precipitation and other urban runoff. The City is continuously taking actions to prevent deterioration through an on-going street rehabilitation program funded in the Capital Improvement Program. The program is formulated based on deficiencies identified as a part of the City’s Pavement Management System (PMS). It includes short-term maintenance activities such as pothole patching, street sweeping, and crack sealing. The City expended $21,336,640 on street maintenance for the fiscal year ended June 30, 2022. These expenditures delayed deterioration and maintained the street condition from the previous assessment. The condition of the streets is rated at 71 in the current year, the same as it was in the prior year. A majority of the current year expenditures were incurred by the McKinley Grade Separation project. The City has estimated that the amount of annual expenditures required to maintain the current average PCI rating of 71 through the year 2023 is a minimum of $6,000,000. A schedule of the estimated annual amount required to maintain and preserve the City’s streets at the current level compared to actual expenditures for street maintenance for the last five years is presented below:

As of June 30, 2022, approximately 52% of the City's streets were rated below the average policy standard of 71. In the most recent physical condition assessment of all City streets, it was estimated that in addition to the minimum annual maintenance requirement of $6.0 million, the total deferred work to rehabilitate all roads amounted to $39.3 million as of June 30, 2022. 128
Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 5,035,483 $ 4,563,432 $ 4,295,676 $ 4,540,608 $ 4,516,596 $ Interest 21,435,216 22,262,610 23,066,815 23,517,716 24,208,803 Differences between expected and actual experience - (1,751,061) (1,961,004) (5,673,578) (536,160) Changes of assumptions - (5,796,569) - 20,736,400 (1,534,054) Benefit payments, including refunds of employee
contributions (13,231,513) (13,719,331) (14,718,032) (15,593,323) (17,027,780) Net change in total pension liability 5,559,081 13,239,186 10,683,455 27,527,823 9,627,405 Total pension liability - beginning 303,140,097 289,900,911 308,699,178 319,382,633 346,910,456 Total pension liability - ending (a) $ 308,699,178 303,140,097 $ 319,382,633 $ 346,910,456 $ 356,537,861 $ Pension fiduciary net position
Contributions - employer 7,535,692 $ 8,615,040 $ 8,408,391 $ 10,548,137 $ 20,944,590 $ Contributions - employee 2,168,466 2,099,982 1,975,493 1,875,784 1,905,754 Net investment income 29,675,543 4,430,161 1,044,158 22,406,369 18,381,353 Benefit payments, including refunds of employee
contributions (13,231,513) (13,719,331) (14,718,032) (15,593,323) (17,027,780) Net plan to plan resources movement - - - - (531)
Administrative expense - (224,286) (121,423) (289,120) (334,672) Other miscellaneous income/expense - - - - (635,548)
Net change in plan fiduciary net position 1,201,566 26,148,188 (3,411,413) 18,947,847 23,233,166 Plan fiduciary net position - beginning2 198,032,887 171,884,699 199,234,453 195,823,040 214,770,887 Plan fiduciary net position - ending (b) $ 199,234,453 198,032,887 $ 195,823,040 $ 214,770,887 $ 238,004,053 $ Plan net pension liability - ending (a) - (b) $ 109,464,725 105,107,210 $ 123,559,593 $ 132,139,569 $ 118,533,808 $ Plan fiduciary net position as a percentage 65.33% 64.54% 61.31% 61.91% 66.75% of the total pension liability
Covered payroll
3 $ 26,820,056 27,891,234 $ 25,968,300 $ 24,590,351 $ 24,554,723 $ Plan net pension liability as a percentage of
covered payroll 376.85% 408.15% 475.81% 537.36% 482.73% 1 Notes to Schedule:

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

Benefit Changes: There were no changes in benefits.

Changes of Assumptions: In 2020 and 2021 there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 129
Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost $ 4,466,642 4,280,881 $ 4,403,881 $
Interest 25,962,850 25,059,830 26,674,374
Differences between expected and actual experience 715,766 1,615,820 (944,320) Changes of assumptions - - -
Benefit payments, including refunds of employee
contributions (17,813,858) (19,025,658) (19,979,193)
Net change in total pension liability 12,242,619 13,019,654 10,154,742 Total pension liability - beginning 356,537,861 368,780,480 381,800,134 Total pension liability - ending (a) $ 381,800,134 368,780,480 $ 391,954,876 $ Pension fiduciary net position
Contributions - employer 17,933,587 $ 13,255,939 $ 13,698,657 $ Contributions - employee 1,990,044 2,223,117 2,009,054
Net investment income 16,183,603 12,851,320 60,189,073
Benefit payments, including refunds of employee
contributions (19,025,658) (17,813,858) (19,979,193)
Net plan to plan resources movement - - (53,189)
Administrative expense (169,845) (361,078) (264,791)
Other miscellaneous income/expense 531 - -
Net change in plan fiduciary net position 18,124,062 8,943,640 55,599,611 Plan fiduciary net position - beginning 238,004,053 256,128,115 265,071,755 Plan fiduciary net position - ending (b) $ 265,071,755 256,128,115 $ 320,671,366 $ Plan net pension liability - ending (a) - (b) $ 116,728,379 112,652,365 $ 71,283,510 $ Plan fiduciary net position as a percentage 69.45% 69.43% 81.81% of the total pension liability
Covered payroll $ 24,461,346 23,197,580 $ 26,963,410 $
Plan net pension liability as a percentage of
covered payroll 485.62% 477.20% 264.37%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 130
Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 4,618,139 $ 4,735,543 $ 4,874,596 $ 5,711,294 $ 5,925,006 $ Interest 13,684,244 14,549,722 15,292,872 16,152,688 17,126,542 Differences between expected and actual experience - 642,707 (1,847,830) (1,030,480) 1,568,431 Changes of assumptions - (3,951,003) - 14,785,639 (583,544) Benefit payments, including refunds of employee
contributions (7,151,132) (7,482,701) (8,102,489) (8,569,669) (10,101,119) Net change in total pension liability 8,494,268 11,151,251 10,217,149 27,049,472 13,935,316 Total pension liability - beginning 194,874,330 183,723,079 203,368,598 213,585,747 240,635,219 Total pension liability - ending (a) $ 203,368,598 194,874,330 $ 213,585,747 $ 240,635,219 $ 254,570,535 $ Pension fiduciary net position
Contributions - employer 5,431,639 $ 6,390,487 $ 7,032,238 $ 7,414,869 $ 7,944,109 $ Contributions - employee 1,462,671 1,517,507 1,599,970 1,841,663 1,706,509 Net investment income 19,983,092 2,973,078 707,298 16,030,928 13,353,137 Benefit payments, including refunds of employee
contributions (7,151,132) (7,482,701) (8,102,489) (8,569,669) (10,101,119) Net plan to plan resources movement - - - - (390)
Administrative expense - (155,162) (84,027) (205,265) (242,374) Other miscellaneous income/expense - - - - (460,273)
Net change in plan fiduciary net position 3,243,209 19,726,270 1,152,990 16,512,526 12,199,599 Plan fiduciary net position - beginning 134,631,354 114,905,084 137,874,563 139,027,553 155,540,079 Plan fiduciary net position - ending (b) $ 137,874,563 134,631,354 $ 139,027,553 $ 155,540,079 $ 167,739,678 $ Plan net pension liability - ending (a) - (b) $ 65,494,035 60,242,976 $ 74,558,194 $ 85,095,140 $ 86,830,857 $ Plan fiduciary net position as a percentage 69.09% 67.80% 65.09% 64.64% 65.89% of the total pension liability
Covered payroll $ 16,848,270 15,848,108 $ 17,276,613 $ 17,998,531 $ 18,658,498 $ Plan net pension liability as a percentage of
covered payroll 380.13% 388.73% 431.56% 472.79% 465.37% 1 Notes to Schedule:

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

Benefit Changes: There were no changes in benefits.

Changes of Assumptions: In 2020 and 2021, there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 131
Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost $ 5,552,558 5,440,494 $ 5,647,902 $
Interest 19,147,726 18,247,956 20,210,480
Differences between expected and actual experience 3,515,370 418,217 2,604,970 Changes of assumptions - - -
Benefit payments, including refunds of employee
contributions (11,179,964) (11,977,056) (13,001,364)
Net change in total pension liability 16,023,856 13,141,445 15,461,988 Total pension liability - beginning 254,570,535 270,594,391 283,735,836 Total pension liability - ending (a) $ 283,735,836 270,594,391 $ 299,197,824 $ Pension fiduciary net position
Contributions - employer 8,647,659 $ 15,780,216 $ 13,995,784 $ Contributions - employee 1,554,430 1,611,310 1,715,846
Net investment income 11,128,659 9,184,495 44,733,798
Benefit payments, including refunds of employee
contributions (11,977,056) (11,179,964) (13,001,364)
Net plan to plan move - - -
Administrative expense (119,703) (250,614) (191,916)
Other miscellaneous income/expense 390 - -
Net change in plan fiduciary net position 10,031,471 14,348,351 47,252,148 Plan fiduciary net position - beginning 167,739,678 177,771,149 192,119,500 Plan fiduciary net position - ending (b) $ 192,119,500 177,771,149 $ 239,371,648 $ Plan net pension liability - ending (a) - (b) $ 91,616,336 92,823,242 $ 59,826,176 $ Plan fiduciary net position as a percentage 65.70% 67.71% 80.00% of the total pension liability
Covered payroll $ 17,137,525 17,096,107 $ 17,699,772 $
Plan net pension liability as a percentage of
covered payroll 542.95% 534.59% 338.01%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 132
Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 City's proportion of the net pension liability 0.460390% 0.463050% 0.454250% 0.440050% 0.469000% City's proportionate share of the net pension liability 28,647,492 $ 31,783,428 $ 39,306,263 $ 43,640,517 $ 44,243,817 $ City's covered payroll 9,308,854 $ 9,624,801 $ 9,885,314 $ 10,511,383 $ 10,100,596 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 307.74% 330.22% 397.62% 415.17% 438.03% Plan fiduciary net position as a percentage of
the total pension liability 78.83% 77.78% 73.76% 73.61% 74.38% 1 Notes to Schedule:

For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan City of Corona
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios Benefit Changes: There were no changes in benefits.

Changes of Assumptions: In 2020 and 2021, there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available. 133
Measurement period 2018-19 2019-20 2020-21
City's proportion of the net pension liability 0.440950% 0.485490% 0.608630% City's proportionate share of the net pension liability 48,071,798 $ 52,823,339 $ 32,916,531 $ City's covered payroll 9,911,459 $ 9,614,463 $ 10,418,921 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 485.01% 549.42% 315.93% Plan fiduciary net position as a percentage of
the total pension liability 73.40% 72.01% 83.22%
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan City of Corona
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) 134
Fiscal year 2014 2015 2016 2017 2018
Actuarially determined contribution 7,535,692 $ 8,615,040 $ 8,408,391 $ 10,548,137 $ 10,844,590 $ Contributions in relation to the
actuarially determined contribution (7,535,692) (8,615,040) (8,408,391) (10,548,137) (20,944,590) Contribution deficiency (excess) - $ - $ - $ - $ (10,100,000) $ Covered payroll2 $ 26,820,056 27,891,234 $ 25,968,300 $ 24,590,351 $ 24,554,723 $ Contributions as a percentage of covered
payroll 27.02% 32.12% 32.38% 42.90% 85.30%
1 2
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method 15 year smoothed market
Inflation 2.500%
Salary increases varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

Includes on year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-2022; 3 percent payroll growth assumption for fiscal years ended June 30, 2014-2017.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 135
Fiscal year 2019 2020 2021 2022
Actuarially determined contribution 11,933,587 $ 13,255,939 $ 13,698,657 $ 126,731,631 $ Contributions in relation to the
actuarially determined contribution (17,933,587) (13,255,939) (13,698,657) (126,731,631) Contribution deficiency (excess) $ (6,000,000) $ - $ - $ - Covered payroll2 $ 24,461,346 23,197,580 $ 26,963,410 $ 27,704,904 $ Contributions as a percentage of covered payroll. 77.31% 54.19% 50.80% 457.43% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 136
Fiscal year 2014 2015 2016 2017 2018
Actuarially determined contribution 5,431,639 $ 6,390,487 $ 7,032,238 $ 7,414,869 $ 7,944,109 $ Contributions in relation to the
actuarially determined contribution (5,431,639) (6,390,487) (7,032,238) (7,414,869) (7,944,109) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll 15,848,108 $ 16,848,270 $ 17,276,613 $ 17,998,531 $ 18,658,498 $ Contributions as a percentage of covered payroll. 34.27% 37.93% 40.70% 41.20% 42.58% 1 2
Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method 15 year smoothed market
Inflation 2.500%
Salary increases varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
Mortality
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.

Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
7% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 137
Fiscal year 2019 2020 2021 2022
Actuarially determined contribution 8,647,659 $ 9,780,216 $ 13,995,784 $ 103,659,698 $ Contributions in relation to the
actuarially determined contribution (8,647,659) (15,780,216) (13,995,784) (103,659,698) Contribution deficiency (excess) $ (6,000,000) - $ $ - $ - Covered payroll2 $ 17,137,525 17,096,107 $ 17,699,772 $ 18,186,516 $ Contributions as a percentage of covered payroll. 50.58% 92.08% 79.07% 76.96% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 138
Fiscal year 2014 2015 2016 2017 2018
Actuarially determined contribution 4,045,566 $ 4,239,757 $ 4,648,267 $ 3,537,799 $ 3,772,862 $ Contributions in relation to the
actuarially determined contribution (4,045,566) (4,239,757) (4,648,267) (3,537,799) (3,772,862) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll2 $ 9,624,801 9,308,854 $ 9,885,314 $ 10,511,383 $ 10,100,596 $ Contributions as a percentage of covered payroll 43.46% 44.05% 47.02% 33.66% 37.35% 1 2
Notes to Schedule:

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions: In 2021 and 2020, there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

For the Year Ended June 30, 2022
139
Fiscal year 2019 2020 2021 2022
Actuarially determined contribution $ 4,307,750 4,869,618 6,225,062 60,685,514 Contributions in relation to the
actuarially determined contribution (4,307,750) (4,869,618) (6,225,062) (60,685,514) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll2 $ 9,911,459 $ 9,614,463 $ 10,418,921 $ 10,705,441 Contributions as a percentage of covered payroll 43.46% 50.65% 59.75% 566.87% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan 140
Measurement period 2016-171 2017-18 2018-19 2019-20
Total OPEB liability
Service cost 1,391,792 $ 1,437,025 $ 1,674,724 $ 1,053,465 $ Interest 10,487,715 10,832,995 11,059,411 9,441,454
Changes of benefit terms - - - -
Differences between expected and actual experience - - (25,689,430) - Changes of assumptions - 8,986,849 (2,130,435) -
Benefit payments, including refunds of employee contributions (6,931,922) (7,431,858) (7,890,228) (8,282,764) Net change in total pension liability 13,825,011 4,947,585 (22,975,958) 2,212,155 Total OPEB liability - beginning 151,083,781 146,136,196 164,908,792 141,932,834 Total OPEB liability - ending (a) $ 164,908,792 151,083,781 $ 141,932,834 $ 144,144,989 $ OPEB fiduciary net position
Contributions - employer 10,000,838 $ 10,445,297 $ 10,006,129 $ 11,847,476 $ Net investment income 3,235,963 2,899,746 2,770,796 1,676,639 Benefit payments, including refunds of employee contributions (6,931,922) (7,431,858) (7,890,228) (8,282,764) Administrative expense (16,420) (19,731) (9,161) (23,600) Other expenses - (47,396) - -
Net change in plan fiduciary net position 5,846,058 6,288,459 4,877,536 5,217,751 Plan fiduciary net position - beginning 35,830,088 29,541,629 41,676,146 46,553,682 Plan fiduciary net position - ending (b) $ 41,676,146 35,830,088 $ 46,553,682 $ 51,771,433 $ Plan net OPEB liability - ending (a) - (b) $ 123,232,646 115,253,693 $ 95,379,152 $ 92,373,556 $ Plan fiduciary net position as a percentage 23.72% 25.27% 32.80% 35.92% of the total OPEB liability
Covered-employee payroll $ 63,618,121 65,624,320 $ 62,361,582 $ 67,841,626 $ Plan net OPEB liability as a percentage of
covered-employee payroll 175.63% 193.71% 152.95% 136.16% 1 Historical information is presented only for measurement periods after GASB 75 implementation in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available.

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years1
Other Postemployment Benefits ("OPEB") Plan
141
Measurement period 2020-21
Total OPEB liability
Service cost $ 1,087,703
Interest 9,588,461
Changes of benefit terms -
Differences between expected and actual experience (8,434,702) Changes of assumptions 15,474,651
Benefit payments, including refunds of employee contributions (8,451,822) Net change in total pension liability 9,264,291
Total OPEB liability - beginning 144,144,989
Total OPEB liability - ending (a) $ 153,409,280
OPEB fiduciary net position
Contributions - employer $ 10,489,894
Net investment income 14,442,155
Benefit payments, including refunds of employee contributions (8,451,822) Administrative expense (19,869)
Other expenses -
Net change in plan fiduciary net position 16,460,358
Plan fiduciary net position - beginning 51,771,433
Plan fiduciary net position - ending (b) $ 68,231,791
Plan net OPEB liability - ending (a) - (b) $ 85,177,489 Plan fiduciary net position as a percentage 44.48%
of the total OPEB liability
Covered-employee payroll $ 68,613,350
Plan net OPEB liability as a percentage of
covered-employee payroll 124.14%
Other Postemployment Benefits ("OPEB") Plan
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years1
142
Fiscal year 2017 2018 2019 2020 2021
Actuarially determined contribution 10,000,838 $ 10,443,091 $ 10,760,239 $ 11,087,025 $ 10,481,185 $ Contributions in relation to the
actuarially determined contribution (10,000,838) (10,445,297) (10,006,129) (11,847,476) (10,489,894) Contribution deficiency (excess) - $ (2,206) $ 754,110 $ (760,451) $ (8,709) $ Covered-employee payroll $ 63,618,121 65,624,320 $ 62,361,582 $ 67,841,626 $ 68,613,350 $ Contributions as a percentage of covered-employee payroll. 2 15.24% 16.42% 16.05% 17.46% 15.29%
1 Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market valuation of assets
Discount Rate 6.05%
Payroll Growth 3.00%
General Inflation Rate 2.5% per year
Health Trend 5.6 in FY2023, step down 0.5% per year to 3.9% by 2076 City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2022
Last Ten Fiscal Years1
Other Postemployment Benefits ("OPEB") Plan
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2021 funding valuation report.

Historical information is presented only for measurement periods after GASB 75 implementation in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available. 143
Fiscal year 2022
Actuarially determined contribution $ 10,744,736
Contributions in relation to the
actuarially determined contribution (10,744,736)
Contribution deficiency (excess) $ -
Covered-employee payroll $ 74,680,408
Contributions as a percentage of covered-employee payroll. 2 14.39%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years1
Other Postemployment Benefits ("OPEB") Plan
144

SUPPLEMENTARY INFORMATION
145
146
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment earnings 154,408 $ 297,233 $ 3,684,213 $ 3,386,980 $ Current services 25,000 220,000 - (220,000)
Other revenues 669,945 1,297,390 4,117,244 2,819,854
Total revenues 1,814,623 849,353 7,801,457 5,986,834
EXPENDITURES:

Current:

Planning and development 175,335 483,407 335,571 147,836 Debt service:

Principal retirement - 13,920 13,920 -
Interest and fiscal charges - 2,238 2,238 -
Total expenditures 499,565 175,335 351,729 147,836
OTHER FINANCING SOURCES:

Proceeds from long term debt 227,697 227,697 227,697 -
Total other financing sources 227,697 227,697 227,697 - NET CHANGE IN FUND BALANCE $ 1,542,755 901,715 $ 7,677,425 6,134,670 $ FUND BALANCE:

Beginning of year 29,945,467
End of year $ 37,622,892
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Low Mod Income Housing Asset Capital Projects Fund
For the Year Ended June 30, 2022
147
148

NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds:

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Gas Tax Fund – accounts for receipts and expenditures of money apportioned under Street and Highway Code Section 2105, 2106, 2107,and 2107.5 of the State of California.

Measure A Fund - accounts for money generated by a half percent sales tax approved by the voters in 1989. This money is used to maintain and construct local streets and roads.

Trip Reduction Fund - accounts for allocations made by AB 2766 known as the Clean Air Act. The money is used to provide means and incentives for ridesharing in order to reduce traffic and air pollution.

Asset Forfeiture Fund - accounts for asset seizures and forfeitures resulting from police investigations and court decisions Special Tax District Fund - accounts for revenues derived from annual assessments which are used to pay the cost incurred by the city for landscape maintenance, street light maintenance, and the City's Business Improvement District.

Other Grants and Endowments Fund - accounts for receipts and expenditures of money received from various governmental grants and various library grants.

Residential Refuse Fund - accounts for receipts from refuse billings and collections to pay for vendor services and impact roadways.

Nonmajor Capital Project Fund:

Public Facility Project Fund- accounts for transactions related to proceeds from debt and other resources and their use to acquire and construct certain capital facilities.

HUD Grants Fund - accounts for grants from the department of Housing and Urban Development (HUD) and expenditures for the block grant programs as approved by the City Council.

Planned Local Drainage Fund - accounts for storm water drainage fees developers as a result of City ordinance 1279. The money is used to construct water drainage facilities within a drainage area. 149
Trip Asset
Gas Tax Measure A Reduction Forfeiture
Cash and investments 7,783,766 $ 17,898,748 $ 1,462,102 $ 450,463 $ Accounts receivable 166 7,430 - -
Interest receivable 21,442 46,987 3,840 1,183
Due from other governments 577,706 1,772,423 55,733 -
Long term receivables - - - -
Loans receivable, net - - - -
Land held for resale - - - -
Restricted cash and investments - - - -
Total assets $ 19,725,588 8,383,080 $ 1,521,675 $ 451,646 $ Liabilities:

Accounts payable and accrued liabilities 181,968 $ 99,587 $ 2 $ 136 $ Retention payable 178,681 158,280 - -
Due to other funds - - - -
Advance from other funds - - - -
Deposit payable - - - -
Unearned revenue - - - 185,903
Total liabilities 257,867 360,649 2 186,039

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 519,407 55,733 -
Total deferred inflows of resources 519,407 - 55,733 -
Fund Balances (Deficits):

Restricted 8,022,431 18,948,314 1,465,940 265,607
Assigned - - - -
Unassigned (deficits) - - - -
Total fund balances (deficits) 18,948,314 8,022,431 1,465,940 265,607 Total liabilities, deferred inflows of
resources and fund balances $ 19,725,588 8,383,080 $ 1,521,675 $ 451,646 $ (Continued)
Combining Balance Sheet
City of Corona
June 30, 2022
Nonmajor Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
ASSETS
150
Capital Projects
Funds
Other Grants
Special Tax & Residential Public Facility
Districts Endowments Refuse Project
Cash and investments 23,949,265 $ 15,101,254 $ 126,263 $ - $ Accounts receivable 73,720 436 1,450,182 -
Interest receivable 62,802 39,666 590 -
Due from other governments 141,814 236,875 36,691 4,134,486 Long term receivables - - - -
Loans receivable, net - - - -
Land held for resale - - - -
Restricted cash and investments 17,272 - 98,422 -
Total assets $ 15,378,231 24,244,873 $ 1,712,148 $ 4,134,486 $ Liabilities:

Accounts payable and accrued liabilities 279,431 $ 37,295 $ 949,699 $ - $ Retention payable - - - -
Due to other funds 57,168 34,119 - 4,273,280
Advance from other funds 1,596,663 - - -
Deposit payable 1,550 - - -
Unearned revenue 12,613 15,031,852 296,509 -
Total liabilities 15,103,266 1,947,425 1,246,208 4,273,280

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 3,163,103
Total deferred inflows of resources - - - 3,163,103
Fund Balances (Deficits):

Restricted 22,297,448 274,965 465,940 -
Assigned - - - -
Unassigned (deficits) - - - (3,301,897)
Total fund balances (deficits) 274,965 22,297,448 465,940 (3,301,897) Total liabilities, deferred inflows of
resources and fund balances $ 15,378,231 24,244,873 $ 1,712,148 $ 4,134,486 $ (Continued)
Combining Balance Sheet (Continued)
City of Corona
June 30, 2022
Nonmajor Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
ASSETS
151
Total
Nonmajor
HUD Planned Local Governmental
Grants Drainage Other Grants Funds
Cash and investments 717,174 $ 343,840 $ $ 288,347 68,121,222 Accounts receivable 18,273 111 - 1,550,318
Interest receivable - - 758 177,268
Due from other governments 570,757 311,287 11,545,402 19,383,174 Long term receivables 1,717,405 - - 1,717,405
Loans receivable, net 2,248,537 - 2,300,000 4,548,537
Land held for resale 1,461,000 - - 1,461,000
Restricted cash and investments - - 628,552 744,246
Total assets $ 655,238 6,733,146 $ 14,763,059 $ 97,703,170 $ Liabilities:

Accounts payable and accrued liabilities 105,265 $ 16,591 $ $ 2,730,407 $ 4,400,381 Retention payable 24,276 - 375,179 736,416
Due to other funds 494,147 - 9,852,913 14,711,627
Advance from other funds - - - 1,596,663
Deposit payable 3,500 - 54,716 59,766
Unearned revenue 93,680 - 275,681 15,896,238
Total liabilities 16,591 720,868 13,288,896 37,401,091

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 6,476,413 10,214,656
Total deferred inflows of resources - - 6,476,413 10,214,656 Fund Balances (Deficits):

Restricted 6,012,278 - - 57,752,923
Assigned - 638,647 - 638,647
Unassigned (deficits) - - (5,002,250) (8,304,147)
Total fund balances (deficits) 638,647 6,012,278 (5,002,250) 50,087,423 Total liabilities, deferred inflows of
resources and fund balances $ 655,238 6,733,146 $ 14,763,059 $ 97,703,170 $ (Concluded)
Combining Balance Sheet (Continued)
City of Corona
June 30, 2022
Nonmajor Governmental Funds
Capital Projects Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
ASSETS
152
Trip Asset
Gas Tax Measure A Reduction Forfeiture
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines and Penalties - - - -
Intergovernmental 7,325,323 5,768,921 163,100 65,384
Special assessments - - - -
Investment earnings (280,048) (648,395) (51,179) (20,517) Current services - - - -
Other revenues 22,266 9,687 - -
Total revenues 5,130,213 7,067,541 111,921 44,867
EXPENDITURES:

Current:

Public safety- Police - - - 192,868
Public works & maintenance services 1,165,268 115,757 25,540 - Community services - - - -
Community development - - - -
Capital outlay 4,760,681 5,492,357 - -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - 646
Total expenditures 5,608,114 5,925,949 25,540 193,514

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (477,901) 1,141,592 86,381 (148,647) OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (1,116,081) - - -
Issuance of debt - - - -
Total other financing sources (uses) - (1,116,081) - -
NET CHANGES IN FUND BALANCES (477,901) 25,511 86,381 (148,647) FUND BALANCES (DEFICITS):

Beginning of year 7,996,920 19,426,215 1,379,559 414,254 End of year $ 18,948,314 8,022,431 $ 1,465,940 $ 265,607 $ (Continued)
City of Corona
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
153
Capital Projects
Funds
Other Grants
Special Tax & Residential Public Facility
Districts Endowments Refuse Project
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines and Penalties - - 45,946 -
Intergovernmental - 963,980 141,962 -
Special assessments 8,859,745 - - -
Investment earnings (740,699) (287,055) (6,055) -
Current services 57,163 52,750 10,549,990 -
Other revenues 91,751 35,844 - -
Total revenues 765,519 8,267,960 10,731,843 -
EXPENDITURES:

Current:

Public safety- Police - 447,208 - -
Public works & maintenance services 7,432,896 - 11,127,092 - Community services - 58,136 20,534 -
Community development - 75,753 - -
Capital outlay 110,560 208,072 41,752 -
Debt service:

Principal retirement - - 19,069 -
Interest and fiscal charges 10,403 - 3,066 -
Total expenditures 789,169 7,553,859 11,211,513 -

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (23,650) 714,101 (479,670) -
OTHER FINANCING SOURCES (USES):

Transfers in - 229,101 40,815 -
Transfers out - (81,600) - -
Issuance of debt - - 311,913 -
Total other financing sources (uses) 147,501 - 352,728 - NET CHANGES IN FUND BALANCES 123,851 714,101 (126,942) - FUND BALANCES (DEFICITS):

Beginning of year 21,583,347 151,114 592,882 (3,301,897) End of year $ 274,965 22,297,448 $ 465,940 $ (3,301,897) $ (Continued)
City of Corona
Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
154
Total
Nonmajor
HUD Planned Local Governmental
Grants Drainage Other Grants Funds
REVENUES:

Licenses and permits - $ 784,271 $ - $ 784,271
Fines and Penalties 250 - - 46,196
Intergovernmental 424,859 - 13,849,156 28,702,685
Special assessments - - - 8,859,745
Investment earnings - 404 (9,386) (2,042,930)
Current services - - - 10,659,903
Other revenues 26,449 286,221 308,064 780,282
Total revenues 1,070,896 451,558 14,147,834 47,790,152
EXPENDITURES:

Current:

Public safety- Police - - - 640,076
Public works & maintenance services - 2,249,383 - 22,115,936 Community services - - 47,674 126,344
Community development 372,250 - - 448,003
Capital outlay 392,981 9,936 19,530,646 30,546,985
Debt service:

Principal retirement 83,469 8,630 - 111,168
Interest and fiscal charges 1,388 13,420 - 28,923
Total expenditures 2,356,208 775,249 19,578,320 54,017,435

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,285,312) (323,691) (5,430,486) (6,227,283) OTHER FINANCING SOURCES (USES):

Transfers in - - - 269,916
Transfers out - - - (1,197,681)
Issuance of debt 141,170 1,365,454 - 1,818,537
Total other financing sources (uses) 1,365,454 141,170 - 890,772 NET CHANGES IN FUND BALANCES 80,142 (182,521) (5,430,486) (5,336,511) FUND BALANCES (DEFICITS):

Beginning of year 6,194,799 558,505 428,236 55,423,934
End of year $ 638,647 6,012,278 $ (5,002,250) $ 50,087,423 $ (Concluded)
City of Corona
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Capital Projects Funds
155
156
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 7,395,482 $ 7,285,482 $ 7,325,323 $ 39,841 $ Investment earnings 98,330 105,395 (280,048) (385,443)
Other revenues - 9,372 22,266 12,894
Total revenues 7,400,249 7,493,812 7,067,541 (332,708)
EXPENDITURES:

Current:

Public works & maintenance services 1,577,374 3,472,569 1,165,268 2,307,301 Capital outlay 4,150,482 9,775,874 4,760,681 5,015,193
Debt service:

Principal retirement 119,293 - - 119,293
Interest and fiscal charges - 19,180 - 19,180
Total expenditures 13,386,916 5,727,856 5,925,949 7,460,967

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (5,986,667) 1,765,956 1,141,592 7,128,259 OTHER FINANCING (USES):

Transfers out (1,200,000) (1,200,000) (1,116,081) 83,919 Total other financing (uses) (1,200,000) (1,200,000) (1,116,081) 83,919 NET CHANGE IN FUND BALANCE $ (7,186,667) 565,956 $ 25,511 7,212,178 $ FUND BALANCE:

Beginning of year 7,996,920
End of year $ 8,022,431
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
157
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 4,378,000 $ 4,378,000 $ 5,768,921 $ 1,390,921 $ Investment earnings 292,250 241,771 (648,395) (890,166) Other revenues - 9,687 9,687 -
Total revenues 4,629,458 4,670,250 5,130,213 500,755
EXPENDITURES:

Current:

Public works & maintenance services 115,759 115,759 115,757 2 Capital outlay 7,090,316 22,951,631 5,492,357 17,459,274 Total expenditures 23,067,390 7,206,075 5,608,114 17,459,276 NET CHANGE IN FUND BALANCE $ (18,437,932) (2,535,825) $ (477,901) 17,960,031 $ FUND BALANCE:

Beginning of year 19,426,215
End of year $ 18,948,314
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure A Special Revenue Fund
For the Year Ended June 30, 2022
158
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ 200,000 $ 163,100 $ (36,900) $
Investment earnings 18,072 18,145 (51,179) (69,324)
Total revenues 218,145 18,072 111,921 (106,224)
EXPENDITURES:

Current:

Public works & maintenance services 100 29,550 25,540 4,010 Capital Outlay - 76,500 - 76,500
Total expenditures 106,050 100 25,540 80,510
NET CHANGE IN FUND BALANCE $ 112,095 17,972 $ 86,381 (25,714) $ FUND BALANCE:

Beginning of year 1,379,559
End of year $ 1,465,940
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Trip Reduction Special Revenue Fund
For the Year Ended June 30, 2022
159
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ 55,725 $ 65,384 $ 9,659 $
Investment earnings 6,634 7,096 (20,517) (27,613)
Total revenues 62,821 6,634 44,867 (17,954)
EXPENDITURES:

Current:

Public safety - police 161,200 218,505 192,868 25,637
Debt service:

Interest and fiscal charges 500 500 646 (146)
Total expenditures 219,005 161,700 193,514 25,491
NET CHANGE IN FUND BALANCE $ (156,184) (155,066) $ (148,647) 7,537 $ FUND BALANCE:

Beginning of year 414,254
End of year $ 265,607
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2022
160
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Special assessments 8,689,964 $ 8,725,287 $ 8,859,745 $ 134,458 $ Investment earnings 329,862 423,879 (740,699) (1,164,578) Current services 69,776 69,776 57,163 (12,613)
Other revenues 29,487 51,351 91,751 40,400
Total revenues 9,270,293 9,119,089 8,267,960 (1,002,333) EXPENDITURES:

Current:

Public works & maintenance services 7,852,570 8,644,982 7,432,896 1,212,086 Capital outlay - 1,565,602 110,560 1,455,042
Debt service:

Interest and fiscal charges 3,530 3,530 10,403 (6,873)
Total expenditures 10,214,114 7,856,100 7,553,859 2,660,255 NET CHANGE IN FUND BALANCE $ (943,821) 1,262,989 $ 714,101 1,657,922 $ FUND BALANCE:

Beginning of year 21,583,347
End of year $ 22,297,448
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Tax District Special Revenue Fund
For the Year Ended June 30, 2022
161
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 612,521 $ 15,403,964 $ 963,980 $ (14,439,984) $ Investment earnings 13,064 209,473 (287,055) (496,528)
Current services 55,000 40,000 52,750 12,750
Other revenue - - 35,844 35,844
Total revenues 15,653,437 680,585 765,519 (14,887,918)
EXPENDITURES:

Current:

Public safety - police 545,217 676,486 447,208 229,278
Community services - 101,159 58,136 43,023
Planning and development 99,047 1,597,975 75,753 1,522,222 Capital outlay - 29,130,448 208,072 28,922,376
Total expenditures 31,506,068 644,264 789,169 30,716,899

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (15,852,631) 36,321 (23,650) 15,828,981 OTHER FINANCING SOURCES:

Transfers in - 229,101 229,101 -
Transfer out - (81,600) (81,600) -
Total other financing sources 147,501 - 147,501 -
NET CHANGE IN FUND BALANCE $ (15,705,130) 36,321 $ 123,851 15,828,981 $ FUND BALANCE:

Beginning of year 151,114
End of year $ 274,965
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Other Grants & Endowments Special Revenue Fund
For the Year Ended June 30, 2022
162
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 111,600 $ 124,256 $ 141,962 $ 17,706 $ Investment earnings (400) 184 (6,055) (6,239)
Fines and penalties 135,500 19,574 45,946 26,372
Current services 10,876,486 10,500,639 10,549,990 49,351 Total revenues 10,644,653 11,123,186 10,731,843 87,190
EXPENDITURES:

Current:

Public works & maintenance services 11,584,042 11,972,285 11,127,092 845,193 Community services - 139,766 20,534 119,232
Capital outlay - 239,839 41,752 198,087
Debt service:

Principal retirement 19,069 - 19,069 -
Interest and fiscal charges - 3,066 3,066 -
Total expenditures 12,374,025 11,584,042 11,211,513 1,162,512

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,729,372) (460,856) (479,670) 1,249,702 OTHER FINANCING SOURCES:

Issuance of debt - - 311,913 311,913
Transfers in - 40,815 40,815 -
Total other financing sources 40,815 - 352,728 311,913
NET CHANGE IN FUND BALANCE $ (1,688,557) (460,856) $ (126,942) 1,561,615 $ FUND BALANCE:

Beginning of year 592,882
End of year $ 465,940
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Residential Refuse Special Revenue Fund
For the Year Ended June 30, 2022
163
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

Capital outlay - $ 668,839 $ - $ 668,839 $
Total expenditures 668,839 - - 668,839
NET CHANGE IN FUND BALANCE $ (668,839) - $ - 668,839 $
FUND BALANCE (DEFICIT):

Beginning of year (3,301,897)
End of year $ (3,301,897)
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Facility Project Capital Projects Fund
For the Year Ended June 30, 2022
164
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Fines and penalties - $ - $ 250 $ 250 $
Intergovernmental 1,646,500 1,646,500 424,859 (1,221,641) Current services - 83,677 - (83,677)
Other revenues - 76,179 26,449 (49,730)
Total revenues 1,806,356 1,646,500 451,558 (1,354,798)
EXPENDITURES:

Current:

Planning and development 204,226 422,035 372,250 49,785 Capital outlay 1,440,260 5,223,203 392,981 4,830,222
Debt service:

Principal retirement 8,630 - 8,630 -
Interest and fiscal charges - 1,388 1,388 -
Total expenditures 5,655,256 1,644,486 775,249 4,880,007

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (3,848,900) 2,014 (323,691) (6,234,805) OTHER FINANCING SOURCES:

Issuance of debt - - 141,170 141,170
Total other financing sources - - 141,170 141,170
NET CHANGE IN FUND BALANCE $ (3,848,900) 2,014 $ (182,521) (6,093,635) $ FUND BALANCE (DEFICIT):

Beginning of year 6,194,799
End of year $ 6,012,278
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HUD Grants Capital Projects Fund
For the Year Ended June 30, 2022
165
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 762,863 $ 762,863 $ 784,271 $ 21,408 $ Investment earnings - - 404 404
Other Revenues 286,165 286,165 286,221 56
Total revenues 1,049,028 1,049,028 1,070,896 21,868
EXPENDITURES:

Current:

Public works & maintenance services 1,090,286 2,407,557 2,249,383 158,174 Capital outlay 160,775 283,076 9,936 273,140
Debt service:

Principal retirement 83,469 83,469 - -
Interest and fiscal charges - 13,420 13,420 -
Total expenditures 2,787,522 1,251,061 2,356,208 431,314

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,738,494) (202,033) (1,285,312) 453,182 OTHER FINANCING SOURCES:

Issuance of debt - - 1,365,454 1,365,454
Total other financing sources - - 1,365,454 1,365,454
NET CHANGE IN FUND BALANCE $ (1,738,494) (202,033) $ 80,142 1,818,636 $ FUND BALANCE:

Beginning of year 558,505
End of year $ 638,647
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Planned Local Drainage Capital Projects Fund
For the Year Ended June 30, 2022
166
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ 35,523,983 $ 13,849,156 $ (21,674,827) $ Investment earnings 742 737 (9,386) (10,123)
Other revenues - 935,754 308,064 (627,690)
Total revenues 36,460,474 742 14,147,834 (22,312,640)
EXPENDITURES:

Current:

Community services - 318,510 47,674 270,836
Capital outlay - 110,618,126 19,530,646 91,087,480
Total expenditures 110,936,636 - 19,578,320 91,358,316
NET CHANGE IN FUND BALANCE $ (74,476,162) 742 $ (5,430,486) 69,045,676 $ FUND BALANCE:

Beginning of year 428,236
End of year $ (5,002,250)
City of Corona
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Other Grants Capital Projects Fund
For the Year Ended June 30, 2022
167
168

NONMAJOR ENTERPRISE FUNDS
Transit Service Enterprise Fund – This fund is used to account for the operations of the City's transportation system for a fixed route and demand response service (Corona Cruiser and Dial-A-Ride) which, along with farebox revenues, and grants from the Transportation Development Act (TDA).

Airport Enterprise Fund – This fund is used to account for the operations of the City's municipal airport. The airport provides services to general aviation aircraft for recreation purposes only. It is a self-supporting activity based on rental charges and state grants.
169
170
Transit
Services Airport Total
ASSETS
Current assets:

Cash and investments 765,278 $ 1,390,431 $ 2,155,709 $
Accounts receivable 4,018 19,354 23,372
Interest receivable 2,681 3,652 6,333
Due from other government 404,315 34,835 439,150
Restricted cash and investments 255,544 - 255,544
Total current assets 1,431,836 1,448,272 2,880,108
Noncurrent assets:

Capital assets:

Capital assets, being depreciated, net 2,444,031 33,651 2,477,682 Total noncurrent assets 2,444,031 33,651 2,477,682
Total assets 3,875,867 1,481,923 5,357,790

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 560,538 - 560,538
OPEB related items 58,964 - 58,964
Total deferred outflows of resources 619,502 - 619,502

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 515,395 250,962 766,357 Accrued interest payable 2,940 - 2,940
Unearned revenue 740,136 390 740,526
Deposit payable - 380 380
Compensated absences, due within one year 9,605 - 9,605 Long-term debt - due within one year 58,293 - 58,293
Total current liabilities 1,326,369 251,732 1,578,101
Noncurrent liabilities:

Long term liabilities, due in more than one year 884,590 - 884,590 Compensated absences, due in more than one year 53,311 - 53,311 Net pension liability 314,766 - 314,766
Net OPEB liability 183,278 - 183,278
Total non-current liabilities 1,435,945 - 1,435,945
Total liabilities 2,762,314 251,732 3,014,046

DEFERRED INFLOWS OF RESOURCES
Pension related items 135,850 - 135,850
OPEB related items 61,039 - 61,039
Total deferred inflows of resources 196,889 - 196,889

NET POSITION
Investment in capital assets 2,444,031 33,651 2,477,682 Restricted 255,544 - 255,544
Unrestricted (deficit) (1,163,409) 1,196,540 33,131
Total net position $ 1,230,191 1,536,166 $ 2,766,357 $
City of Corona
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2022
171
Transit
Services Airport Total
OPERATING REVENUES:
$ - 2,055,243 $ 2,055,243 $
Fees and permits - 38,390 38,390
Fines and permits 23,150 - 23,150
Other revenues 223,005 396,371 619,376
Total operating revenues 2,301,398 434,761 2,736,159
OPERATING EXPENSES:

Personnel services 226,297 24,841 251,138
Contractual services 1,728,739 70,296 1,799,035
Materials and supplies 121,803 336,065 457,868
Utilities 154,914 12,645 167,559
Depreciation 661,942 14,296 676,238
Total operating expenses 2,893,695 458,143 3,351,838
OPERATING INCOME (LOSS) (592,297) (23,382) (615,679)
NONOPERATING REVENUES (EXPENSES):

Intergovernmental - 40,119 40,119
Investment earnings (49,165) (47,747) (96,912)
Interest expense (12,810) - (12,810)
Total nonoperating revenues (expenses) (61,975) (7,628) (69,603) CHANGE IN NET POSITION (654,272) (31,010) (685,282)
NET POSITION:

Beginning of the year 2,190,438 1,261,201 3,451,639
End of the year $ 1,230,191 1,536,166 $ 2,766,357 $
City of Corona
Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
For the Year Ended June 30, 2022
172
Transit
Service Airport Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users $ 2,704,384 $ 420,083 $ 3,124,467 Cash paid to suppliers for goods and services (2,611,892) (173,660) (2,785,552) Cash paid to employees for services (1,236,124) (24,841) (1,260,965) Net cash provided by (used in) operating activities (1,143,632) 221,582 (922,050) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grant received - 5,224 5,224
Proceed from pension obligation bonds 1,004,270 - 1,004,270 Principal paid on pension obligation bonds (61,387) - (61,387) Interest paid on pension obligation bonds (9,870) - (9,870) Net cash provided by noncapital financing activities 933,013 5,224 938,237

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets (38,081) - (38,081)
Net cash (used in) capital and related financing activities (38,081) - (38,081) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment loss (47,919) (47,785) (95,704)
Net cash (used in) investing activities (47,919) (47,785) (95,704) Net increase (decrease) in cash and cash equivalents (296,619) 179,021 (117,598) CASH AND CASH EQUIVALENTS:

Beginning of year 1,317,441 1,211,410 2,528,851
End of year $ 1,390,431 1,020,822 $ 2,411,253 $
CASH AND CASH EQUIVALENTS:

Cash and investments 765,278 $ 1,390,431 $ 2,155,709 $
Restricted cash and investments 255,544 - 255,544
Total cash and cash equivalents $ 1,390,431 1,020,822 $ 2,411,253

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) (592,297) $ (23,382) $ (615,679) $ Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation 14,296 661,942 676,238
Change in assets and liabilities:
(Increase) decrease in accounts receivable (1,340) (14,678) (16,018) (Increase) decrease in due from other government - 238,968 238,968 (Increase) decrease in deferred outflows of resources related to pension (426,223) - (426,223) (Increase) decrease in deferred outflows of resources related to OPEB (10,997) - (10,997) Increase (decrease) in accounts payable and accrued liabilities (606,837) 245,346 (361,491) Increase (decrease) in compensated absences (1,285) - (1,285) Increase (decrease) in unearned revenue 165,358 - 165,358 Increase (decrease) in net pension liability (630,734) - (630,734) Increase (decrease) in net OPEB liability (84,605) - (84,605) Increase (decrease) in deferred inflows of resources related to pension 135,850 - 135,850 Increase (decrease) in deferred inflows of resources related to OPEB 8,568 - 8,568 Total adjustments (551,335) 244,964 (306,371)
Net cash provided by (used in) operating activities $ 221,582 (1,143,632) $ (922,050) $ City of Corona
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2022
173
174

INTERNAL SERVICE FUNDS
Fleet Operations Fund – This fund is used to account for lease of equipment to City departments as the equipment is used.

Rental charges include amounts accumulated in the fund to pay for equipment replacements as needed Workers' Compensation Self-Insurance Fund – This fund was established on December 1, 1974 at which time the City became self-insured. Claims and administrative expense are charged to this fund. Reserves are held by this fund to buffer the impact of unknown but potential losses.

Liability Risk Self-Insurance Fund – This fund is used to account for expenses in payment of claims, administrator's expense (including legal fees) and to establish reserves against future claims.

Warehouse Fund – This fund is used to account for expenses regarding distribution of inventory.

Information Technology Fund – This fund is used to account for software subscriptions, licenses, equipment, and administrative costs of the information Technology Department on behalf of the other funds. 175
Fleet Workers' Liability
Operations Compensation Risk
ASSETS
Current assets:

Cash and investments $ 7,120,097 $ 24,933,954 $ 3,141,273 Accounts receivable 4,910 46,541 -
Inventories and prepaid items 208,537 - -
Total current assets 7,333,544 24,980,495 3,141,273
Noncurrent assets:

Capital assets, not depreciated 30,299 - -
Capital assets, being depreciated, net 2,722,806 - -
Intangible assets, net 1,084,937 - -
Total noncurrent assets 3,838,042 - -
Total assets 11,171,586 24,980,495 3,141,273

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 1,984,242 - -
OPEB related items 361,910 - -
Total deferred outflows of resources 2,346,152 - -

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 777,979 224,517 1,754,463 Accrued interest payable 7,366 - -
Claim payable, due within one year - 2,977,607 355,071
Compensated absences, due within one year 53,250 - -
Long-term debt - due within one year 146,069 - -
Lease payable, due within one year 228,772 - -
Total current liabilities 1,213,436 3,202,124 2,109,534 Noncurrent liabilities:

Compensated absences, due more than one year - - -
Long term liabilities, due in more than one year 2,216,567 - - Lease payable, due more than one year 316,245 - -
Claim payable, due more than one year - 17,746,954 1,031,739 Net pension liability - 1,114,236 -
Net OPEB liability 1,124,930 - -
Total noncurrent liabilities 4,771,978 17,746,954 1,031,739 Total liabilities 5,985,414 20,949,078 3,141,273

DEFERRED INFLOWS OF RESOURCES
Pension related items 480,896 - -
OPEB related items 374,649 - -
Total deferred inflows of resources 855,545 - -

NET POSITION
Net investment in capital assets 3,293,025 - -
Unrestricted (deficit) 3,383,754 4,031,417 -
Total net position $ 4,031,417 6,676,779 $ - $
(Continued)
Self-Insurance
City of Corona
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
176
Information
Warehouse Technology Total
ASSETS
Current assets:

Cash and investments 623,113 $ 8,134,360 $ 43,952,797 $ Accounts receivable - 22,400 73,851
Inventories and prepaid items - - 208,537
Total current assets 623,113 8,156,760 44,235,185
Noncurrent assets:

Capital assets, not depreciated - 129 30,428
Capital assets, being depreciated net - 289,211 3,012,017 Intangible assets, net - - 1,084,937
Total noncurrent assets - 289,340 4,127,382
Total assets 623,113 8,446,100 48,362,567

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 280,258 8,579,030 10,843,530
OPEB related items 37,797 661,455 1,061,162
Total deferred outflows of resources 318,055 9,240,485 11,904,692

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 6,647 247,620 3,011,226 Accrued interest payable 1,077 22,751 31,194
Claim payable, due within one year - - 3,332,678
Compensated absences, due within one year 1,348 232,666 287,264 Long-term debt - due within one year 21,365 451,136 618,570 Lease payable, due within one year - - 228,772
Total current liabilities 30,437 954,173 7,509,704
Noncurrent liabilities:

Compensated absences, due more than one year - 138,626 138,626 Long term liabilities, due in more than one year 324,203 6,845,895 9,386,665 Lease payable, due more than one year - - 316,245
Claim payable, due more than one year - 18,778,693 -
Net pension liability 157,377 4,817,487 6,089,100
Net OPEB liability 117,487 2,056,008 3,298,425
Total noncurrent liabilities 599,067 13,858,016 38,007,754 Total liabilities 629,504 14,812,189 45,517,458

DEFERRED INFLOWS OF RESOURCES
Pension related items 67,923 2,079,191 2,628,010
OPEB related items 39,128 684,737 1,098,514
Total deferred inflows of resources 107,051 2,763,928 3,726,524

NET POSITION
Net investment in capital assets - 289,340 3,582,365
Unrestricted (deficit) 204,613 (178,872) 7,440,912
Total net position $ 110,468 204,613 $ 11,023,277 $
(Concluded)
City of Corona
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2022
177
Fleet Workers' Liability
Operations Compensation Risk
OPERATING REVENUES:

Service charges 4,176,211 $ 2,234,027 $ 2,822,608 $
Other revenues 719,226 1,966 -
Total operating revenues 2,235,993 4,895,437 2,822,608
OPERATING EXPENSES:

Personnel services 1,098,706 - -
Contractual services 19,670 - 64,049
Materials and supplies 2,089,325 72,084 -
Utilities 1,321,657 - -
Depreciation and amortization expense 1,025,428 - -
Claims and premium - 3,109,097 3,671,560
Total operating expenses 5,554,786 3,181,181 3,735,609
NET OPERATING INCOME (LOSS) (659,349) (945,188) (913,001) NONOPERATING REVENUE (EXPENSES):

Interest expense (56,285) - -
Gain on sale of capital assets 120,270 - -
Total nonoperating expenses 63,985 - -
CHANGE IN NET POSITION (595,364) (945,188) (913,001)
NET POSITION:

Beginning of the year 7,272,143 4,976,605 913,001
End of the year $ 4,031,417 6,676,779 $ - $
(Continued)
Self-Insurance
City of Corona
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2022
178
Information
Warehouse Technology Total
OPERATING REVENUES:

Service charges 433,128 $ 12,709,732 $ 22,375,706 $
Other revenues - 1,135 722,327
Total operating revenues 433,128 12,710,867 23,098,033
OPERATING EXPENSES:

Personnel services 49,216 3,416,985 4,564,907
Contractual services 52,835 4,463,024 4,599,578
Materials and supplies 66,465 955,554 3,183,428
Utilities 1,142 363,118 1,685,917
Depreciation expense - 281,346 1,306,774
Claims and premium - - 6,780,657
Total operating expenses 169,658 9,480,027 22,121,261
NET OPERATING INCOME (LOSS) 263,470 3,230,840 976,772
NONOPERATING REVENUE (EXPENSES):

Interest expense (4,695) (99,136) (160,116)
Gain on sale of capital assets - 483 120,753
Total nonoperating expenses (4,695) (98,653) (39,363)
CHANGE IN NET POSITION 258,775 3,132,187 937,409
NET POSITION:

Beginning of the year (54,162) (3,021,719) 10,085,868
End of the year $ 110,468 204,613 $ 11,023,277 $
(Concluded)
City of Corona
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2022
179
Workers' Liability
Fleet Compensation Risk
Operations Self-Insurance Self-Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users $ 4,901,162 $ 2,240,285 $ 2,822,608 Cash paid to suppliers for goods and services (2,978,278) (20,268) 1,679,216 Cash paid to employees for services (3,364,717) - -
Cash paid for insurance or claims - (2,418,195) (3,573,832) Net cash provided by (used in) operating activities (1,441,833) (198,178) 927,992 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grants received 644 - -
Proceed from pension obligation bonds 2,516,458 - -
Principal paid on pension obligation bonds (153,822) - - Interest paid on pension obligation bonds (32,696) - -
Net cash provided by noncapital financing activities 2,330,584 - -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (547,411) - -
Proceed from sale of capital assets 129,174 - -
Principal paid on lease payables (237,944) - -
Interest paid on lease payables (16,223) - -
Net cash (used in) capital and related financing activities (672,404) - - Net increase (decrease) in cash and cash equivalents 216,347 (198,178) 927,992 CASH AND CASH EQUIVALENTS:

Beginning of year 6,903,750 25,132,132 2,213,281
End of year $ 24,933,954 7,120,097 $ 3,141,273 $

RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating loss $ (659,349) $ (945,188) $ (913,001)
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:

Depreciation 1,025,428 - -
Change in assets and liabilities:
(Increase) decrease in accounts receivable 5,725 4,292 - (Increase) decrease in inventories and prepaid items (23,799) - 776,458 (Increase) decrease in pension related deferred outflows of resources (1,694,056) - - (Increase) decrease in OPEB related deferred outflows of resources (134,834) - - Increase (decrease) in accounts payable and accrued liabilities 484,375 51,816 966,807 Increase (decrease) in claims payable - 690,902 97,728
Increase (decrease) in compensated absences 9,907 - -
Increase (decrease) in net pension liability (928,511) - - Increase (decrease) in net OPEB liability (122,113) - - Increase (decrease) in pension related deferred inflows of resources 480,896 - - Increase (decrease) in OPEB related deferred inflows of resources 114,498 - - Total adjustments (782,484) 747,010 1,840,993
Net cash provided by (used in) operating activities $ (1,441,833) $ (198,178) $ 927,992 Governmental Activities - Internal Service Funds
City of Corona
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
180
Information
Warehouse Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users $ 433,128 $ 12,693,451 $ 23,090,634 Cash paid to suppliers for goods and services (116,668) (5,600,698) (7,036,696) Cash paid to employees for services (497,557) (11,302,531) (15,164,805) Cash paid for insurance or claims - (5,992,027) -
Net cash provided by (used in) operating activities (181,097) (4,209,778) (5,102,894) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grants received - - 644
Proceed from pension obligation bonds 368,066 7,772,111 10,656,635 Principal paid on pension obligation bonds (22,498) (475,080) (651,400) Interest paid on pension obligation bonds (3,618) (70,121) (106,435) Net cash provided by noncapital financing activities 341,950 7,226,910 9,899,444

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (129) (547,540)
Proceed from sale of capital assets - 483 129,657
Principal paid on lease payables - (210,938) (448,882)
Interest paid on lease payables - (6,264) (22,487)
Net cash (used in) capital and related financing activities - (216,848) (889,252) Net increase (decrease) in cash and cash equivalents 160,853 2,800,284 3,907,298 CASH AND CASH EQUIVALENTS:

Beginning of year 462,260 5,334,076 40,045,499
End of year $ 8,134,360 623,113 $ 43,952,797 $

RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating loss $ 263,470 $ 3,230,840 $ 976,772
Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:

Depreciation - 281,346 1,306,774
Change in assets and liabilities:
(Increase) decrease in accounts receivable - (17,416) (7,399) (Increase) decrease in inventories and prepaid items - - 752,659 (Increase) decrease in pension related deferred outflows of resources (228,852) (7,507,824) (9,430,732) (Increase) decrease in OPEB related deferred outflows of resources (1,802) (315,211) (451,847) Increase (decrease) in accounts payable and accrued liabilities 1,928 203,577 1,708,503 Increase (decrease) in claims payable - - 788,630
Increase (decrease) in compensated absences (20) 96,138 106,025 Increase (decrease) in net pension liability (204,481) (2,723,166) (3,856,158) Increase (decrease) in net OPEB liability (76,498) 171,589 (27,022) Increase (decrease) in pension related deferred inflows of resources 67,923 2,079,191 2,628,010 Increase (decrease) in OPEB related deferred inflows of resources (2,765) 291,158 402,891 Total adjustments (444,567) (7,440,618) (6,079,666)
Net cash provided by (used in) operating activities $ (181,097) $ (4,209,778) $ (5,102,894) Governmental Activities - Internal Service Funds
City of Corona
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2022
181
182

CUSTODIAL FUNDS
Custodial Funds are used to account for assets for the benefit of organizations or other governments that are not part of the City. In addition, the assets are not derived from the City’s provision of goods or services to those individuals, organizations, or other governments.

Assessment District and Community Facility District (AD/CFD) Funds - These funds are used to account for receipt of special taxes and assessments used to pay principal and interest on related bonds that are not direct City liabilities, as well as receipt and disbursement of capital project bond proceeds related to the bonds that are not direct obligations of the City.

AB109 PACT Fund - This fund is used to account for resources accumulated for the Riverside County Post-Release Accountability and Compliance Team ("PACT"). The AB 109 PACT was created on December 16, 2015. The City of Corona is one of the seven member agencies of PACT, and serve a the trustee of PACT. Funding for PACT comes from the State of California in accordance with AB109, Public Safety Realignment Act of 2011. 183
184
AD/CFD Fund AB109 PACT Total
ASSETS
Cash and investments 2,697,999 $ 24,263 $ 2,722,262 $
Restricted cash and investments 11,967,986 - 11,967,986 Interest receivable 7,087 64 7,151
Due from other governments 119,038 72,610 191,648
Total assets 14,792,110 96,937 14,889,047

LIABILITIES
Accounts payable 268 - 268
Deposits payable 62,059 - 62,059
Total liabilities 62,327 - 62,327

NET POSITION
Restricted for:

Organizations and other governments $ 14,729,783 $ 96,937 $ 14,826,720 City of Corona
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
185
AD/CFD Fund AB109 PACT Total
ADDITIONS:

Assessment revenue 7,222,042 $ - $ 7,222,042 $
Investment earnings (77,864) (889) (78,753)
Total additions 7,144,178 (889) 7,143,289
DEDUCTIONS:

Developer payments 46,921 - 46,921
Payments for district expenses 385,638 - 385,638
Payments for district debt service 6,474,808 - 6,474,808 Total deductions - 6,907,367 6,907,367
Change in net position (889) 236,811 235,922
NET POSITION:

Beginning of year, as restated (Note 18) 14,492,972 97,826 14,590,798 End of year $ 96,937 14,729,783 $ 14,826,720 $
City of Corona
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2022
186

STATISTICAL SECTION
187
188
Contents Page
1 Net Position by Component 190
2 Changes in Net Position 192
3 Fund Balances - Governmental Funds 196
4 Changes in Fund Balances - Governmental Funds 198
5a Water Sales By User Type 200
5b Assessed Value and Actual Value of Taxable Property 201 6a Potable Water Rates 203
6b Reclaimed Water Rates 204
6c Direct and Overlapping Property Tax Rates 205
7a Principal Water Customers 206
7b Principal Property Tax Payers 207
8 Property Tax Levies and Collections 209
9 Ratios of Outstanding Debt by Type 210
10 Ratios of Net General Bonded Debt Outstanding 213
11 Direct and Overlapping Governmental Activities Debt 214 12 Legal Debt Margin Information 216
13 Pledged-Revenue Coverage 218
14 Demographic and Economic Statistics 221
15 Principal Employers 222
16 Full-time Equivalent City Government Employees by Function/Program 223 17 Operating Indicators by Function/Program 224
18 Capital Assets Statistics by Function/Program 226
These schedules contain service and infrastructure data to help readers understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

City of Corona
Statistical Section Overview
(Unaudited)
This part of the City of Corona's comprehensive annual 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.

These schedules contain information to help the reader to understand how the City's financial performance and well-being have changed over time.

Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
These schedules contain information to help the reader assess the City's most significant own-source revenue.

These schedules contain information to help readers to assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help readers to understand the environment within which the City's financial activities take place.
189
2022 2021 2020 2019 2018
Governmental Activities
Net Investment in Capital Assets 774,605,309 $ 751,014,897 $ 715,567,718 $ 690,776,881 $ 661,445,807 $ Restricted for:

Capital Projects 37,622,892 30,373,703 30,073,897 34,034,394 35,250,894 Pension 30,102,382 - - - -
Debt Service 124 6 8,627,925 6,490,959 5,100,103
Transportation and Public Works 28,902,625 29,395,576 21,690,954 22,272,787 18,493,153 Special Assessment District 28,773,861 24,246,859 11,617,840 12,625,790 11,114,013 Development Projects 17,413,190 16,303,526 23,608,622 21,365,909 9,137,699 Community Development Projects 6,012,278 6,194,799 6,594,350 Other Purposes 540,572 565,368 350,132 382,770 309,562
Total Restricted 149,367,924 107,079,837 102,563,720 97,172,609 79,405,424 Unrestricted 52,930,786 38,917,327 45,153,818 34,147,614 23,749,730 Total Governmental Activities Net Position 976,904,019 $ 897,012,061 $ 863,285,256 $ 822,097,104 $ 764,600,961 $ Business-Type Activities
Net Investment in Capital Assets 365,081,077 $ 362,609,521 $ 348,173,650 $ 346,111,296 $ 334,581,059 $ Restricted for:

Capital Projects - - 6,735,454 6,735,454 6,735,454
Debt Service 509,441 509,441 - - -
Transportation and Public Works 255,544 366,440 377,421 369,860 261,195 Development Projects 855,624 855,624 792,804 792,804
Total Restricted 1,620,609 1,731,505 7,905,679 7,898,118 6,996,649 Unrestricted (66,552,586) (70,513,075) (79,890,157) (95,417,283) (111,330,380) Total Business-Type Activities Net Position 300,149,100 $ 293,827,951 $ 276,189,172 $ 258,592,131 $ 230,247,328 $ Primary Government
Net Investment in Capital Assets 1,139,686,386 $ 1,113,624,418 $ 1,063,741,368 $ 1,036,888,177 $ 996,026,866 $ Restricted 150,988,533 108,811,342 110,469,399 105,070,727 86,402,073 Unrestricted (13,621,800) (31,595,748) (34,736,339) (61,269,669) (87,580,650) Total Primary Government Net Position 1,277,053,119 $ 1,190,840,012 $ 1,139,474,428 $ 1,080,689,235 $ 994,848,289 $ Fiscal Year
City of Corona
Schedule 1
Net Position by Component
Last Ten Fiscal Years (accrual basis of accounting)
190
2017 2016 2015 2014 2013
Governmental Activities
Net Investment in Capital Assets $ 638,468,424 $ 618,953,633 $ 587,861,831 $ 557,314,076 $ 542,474,178 Restricted for:

Capital Projects 26,832,918 24,440,919 23,435,434 31,326,722 87,678,260 Pension - - - - -
Debt Service 3,439,357 2,416,841 2,653,417 2,770,292 2,772,671 Transportation and Public Works 16,363,749 15,401,285 19,206,895 19,224,575 16,083,567 Special Assessment District 14,377,296 17,074,793 15,602,868 13,862,186 12,404,874 Development Projects 5,276,971 8,866,182 5,939,085 1,934,349 4,703,812 Community Development Projects
Other Purposes 725,421 514,174 560,289 803,053 1,173,375 Total Restricted 67,015,712 68,714,194 67,397,988 69,921,177 124,816,559 Unrestricted 106,765,363 96,234,263 90,173,729 270,365,217 265,060,487 Total Governmental Activities Net Position 812,249,499 $ $ 783,902,090 $ 745,433,548 $ 897,600,470 $ 932,351,224 Business-Type Activities
Net Investment in Capital Assets $ 324,512,188 $ 312,540,296 $ 286,045,985 $ 275,218,430 $ 281,276,333 Restricted for:

Capital Projects 6,735,454 7,205,941 6,898,174 10,780,901 - Debt Service - - 6,061,277 6,813,257 8,435,288
Transportation and Public Works 697,391 611,272 830,088 1,317,690 130,390 Development Projects
Total Restricted 7,432,845 7,817,213 13,789,539 18,911,848 8,565,678 Unrestricted (86,423,631) (96,745,399) (92,820,840) (91,326,475) (100,444,897) Total Business-Type Activities Net Position 245,521,402 $ $ 223,612,110 $ 207,014,684 $ 202,803,803 $ 189,397,114 Primary Government
Net Investment in Capital Assets $ 962,980,612 $ 931,493,929 $ 873,907,816 $ 832,532,506 $ 823,750,511 Restricted 74,448,557 76,531,407 81,187,527 88,833,025 133,382,237 Unrestricted 20,341,732 (511,136) (2,647,111) 179,038,742 164,615,590 Total Primary Government Net Position 1,057,770,901 $ $ 1,007,514,200 $ 952,448,232 $ 1,100,404,273 $ 1,121,748,338 Fiscal Year
City of Corona
Schedule 1
Net Position by Component (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
191
2022 2021 2020 2019 2018
Expenses
Governmental Activities:

General Government 35,184,855 $ 37,567,629 $ 35,158,626 $ 33,591,975 $ 21,282,982 $ Public Safety - Fire 31,961,693 32,592,271 29,429,998 29,004,569 29,892,569 Public Safety - Police 46,544,729 49,673,632 45,363,320 51,665,087 52,237,558 Public Works & Maintenance Services 51,021,619 42,862,546 47,417,239 41,082,525 38,699,371 Communiy Services (**) 3,969,626 3,863,503 3,720,964 4,301,828 3,815,661 Planning and Development (**) 5,081,650 6,404,617 5,179,409 4,666,834 3,691,471 Economic Development 1,200,606 651,741 219,500 391,110 329,276 Interest and Fiscal Charges 3,857,494 1,125,253 1,239,678 1,347,268 1,398,132 Total Governmental Activities Expenses 178,822,272 $ 174,741,192 $ 167,728,734 $ 166,051,196 $ 151,347,020 $ Business-Type Activities:

Water 63,431,423 61,436,086 59,032,333 54,241,684 66,216,277 Water Reclamation 31,913,449 27,651,867 28,852,053 28,218,102 31,543,999 Electric 15,553,202 14,557,426 15,159,666 15,597,164 16,913,151 Transit Services 2,906,505 2,563,422 2,972,289 3,153,161 3,391,384 Airport 458,143 187,251 150,703 180,033 146,287
Total Business-Type Activities Expenses 114,262,722 106,396,052 106,167,044 101,390,144 118,211,098 Total Primary Government Expenses 293,084,994 $ 281,137,244 $ 273,895,778 $ 267,441,340 $ 269,558,118 $ Program Revenues
Governmental Activities:

Charges for Services:

General Government (*) 6,179,740 5,908,573 4,942,880 7,377,481 10,394,661 Public Safety - Fire 3,952,023 3,889,503 4,048,936 4,914,360 5,076,947 Public Safety - Police 2,402,592 2,112,639 2,274,242 2,282,448 2,172,690 Public Works & Maintenance Services 14,764,111 13,536,491 14,552,360 17,033,637 15,271,111 Communiy Services (**) 2,190,731 867,243 1,919,806 2,882,270 2,582,847 Planning and Development (**) 4,592,172 5,605,810 4,084,790 4,868,485 3,718,706 Economic Development - - - - -
Operating Grants and Contributions 37,521,201 33,382,020 17,568,917 17,177,545 15,235,243 Capital Grants and Contributions 19,861,094 19,254,389 36,780,592 46,130,203 32,940,776 Total Governmental Activities Program Revenues 91,463,664 84,556,668 86,172,523 102,666,429 87,392,981 Business-Type activities:

Charges for Services:

Water 64,960,384 65,486,307 55,238,024 56,486,220 56,153,664 Water Reclamation 34,027,929 34,562,829 30,984,409 31,394,607 31,114,187 Electric 17,554,503 16,484,158 16,346,238 16,971,319 17,772,585 Transit Services 246,155 63,382 297,111 364,025 359,652 Airport 434,761 591,652 398,281 341,505 265,996
Operating Grants and Contributions 5,062,788 2,226,923 2,185,674 1,813,204 3,195,967 Capital Grants and Contributions 1,894,007 4,146,239 6,004,436 6,915,473 4,992,185 Total Business-Type Activities Program Revenues 124,180,527 123,561,490 111,454,173 114,286,353 113,854,236 Total Primary Government Program Revenues 215,644,191 $ 208,118,158 $ 197,626,696 $ 216,952,782 $ 201,247,217 $ City of Corona
Schedule 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
192
2017 2016 2015 2014 2013
Expenses
Governmental Activities:

General Government $ 28,273,481 $ 27,435,359 $ 24,481,334 $ 23,974,508 $ 22,853,992 Public Safety - Fire 26,004,329 24,447,062 24,052,304 23,062,147 22,702,313 Public Safety - Police 47,773,812 44,341,895 42,939,535 40,779,963 40,357,283 Public Works & Maintenance Services 35,763,511 39,647,786 33,544,227 39,591,302 43,533,983 Communiy Services (**) 5,281,168 6,463,940 6,559,251 4,417,913 2,825,606 Planning and Development (**) 4,736,871 5,933,581 3,806,766 3,453,020 - Economic Development 4,927,998 4,422,141 3,107,755 5,344,121 6,877,725 Interest and Fiscal Charges 1,034,468 1,910,542 2,016,105 2,172,050 2,953,366 Total Governmental Activities Expenses $ 153,795,638 $ 154,602,306 $ 140,507,277 $ 142,795,024 $ 142,104,268 Business-Type Activities:

Water 52,922,440 51,177,312 55,714,372 58,165,289 57,605,446 Water Reclamation 24,258,766 25,004,508 26,500,708 29,160,167 29,060,647 Electric 15,559,948 20,082,535 15,192,888 13,373,418 14,675,785 Transit Services 2,826,701 2,732,394 2,477,893 2,355,405 2,286,292 Airport 166,860 197,702 282,969 281,771 301,454
Total Business-Type Activities Expenses 95,734,715 99,194,451 100,168,830 103,336,050 103,929,624 Total Primary Government Expenses $ 249,530,353 $ 253,796,757 $ 240,676,107 $ 246,131,074 $ 246,033,892 Program Revenues
Governmental Activities:

Charges for Services:

General Government (*) 18,216,829 18,556,870 20,774,890 16,938,527 19,341,407 Public Safety - Fire 4,087,577 3,679,300 3,142,720 4,264,876 4,242,725 Public Safety - Police 1,090,884 1,082,045 1,065,181 2,070,221 3,011,565 Public Works & Maintenance Services 15,757,571 15,708,292 20,011,693 20,068,114 20,993,799 Communiy Services (**) 1,690,619 1,481,845 1,014,872 319,806 318,831 Planning and Development (**) 2,112,169 2,116,832 2,420,301 3,316,624 - Economic Development - - - 666,394 707,126
Operating Grants and Contributions 13,607,731 13,468,867 11,780,932 12,555,412 13,760,057 Capital Grants and Contributions 23,356,504 40,508,675 27,197,609 20,783,935 5,620,168 Total Governmental Activities Program Revenues 79,919,884 96,602,726 87,408,198 80,983,909 67,995,678 Business-Type activities:

Charges for Services:

Water 51,435,658 48,753,278 52,620,052 55,937,613 53,906,208 Water Reclamation 31,271,134 30,755,583 30,735,952 30,626,667 30,620,212 Electric 16,789,626 17,057,728 16,760,206 17,182,310 17,138,240 Transit Services 445,604 427,417 432,281 406,202 415,615 Airport 298,868 272,217 288,820 316,402 280,915
Operating Grants and Contributions 2,876,392 5,116,662 4,160,035 1,640,359 1,635,598 Capital Grants and Contributions 13,061,722 6,954,812 13,485,750 4,225,256 3,453,420 Total Business-Type Activities Program Revenues 116,179,004 109,337,697 118,483,096 110,334,809 107,450,208 Total Primary Government Program Revenues 196,098,888 $ $ 205,940,423 $ 205,891,294 $ 191,318,718 $ 175,445,886 (Continued)
* For 2016 and prior, General Government's program revenue was restated to reclassify Lease and Rental Income from General Revenues to Program Revenues ** The City had reorganization in fiscal year 2021-22, Community Development became Planning and Development while Library and Recreation Services became Community Services.

City of Corona
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
193
2022 2021 2020 2019 2018
Net (Expense)/Revenue
Governmental Activities (87,358,608) $ (90,184,524) $ (81,556,211) $ (63,384,767) $ (63,954,039) $ Business-Type Activities 9,917,805 17,165,438 5,287,129 12,896,209 (4,356,862) Total Primary Government Net Expense (77,440,803) $ (73,019,086) $ (76,269,082) $ (50,488,558) $ (68,310,901) $ General Revenues and
Other Changes in Net Position
Governmental Activities:

Taxes
Property Taxes 55,400,381 $ 52,583,004 $ 50,397,965 $ 48,123,700 $ 45,646,490 $ Sales and Use Tax 89,912,163 44,752,843 39,657,924 44,125,758 38,118,548 Other Taxes 12,562,342 11,213,308 10,369,076 11,640,957 10,490,863 Total taxes 157,874,886 108,549,155 100,424,965 103,890,415 94,255,901 Investment Earnings (1,537,234) 972,402 10,810,066 9,042,370 540,824 Miscellaneous 7,519,310 12,065,796 12,544,603 11,764,807 13,123,627 Unrestricted Grants and Contributions - - - - -
Gain/(Loss) on Sale of Capital Asset 120,753 158,800 - - - Extraordinary Items - - - - -
Transfers 109,748 (52,902) (706,869) (1,896,122) (2,744,512) Special Items - - - - 3,037,670
Total Governmental Activities 164,087,463 121,693,251 123,072,765 122,801,470 108,213,510 Business-Type Activities:

Investment Earnings (3,486,908) 684,844 6,237,118 5,010,211 334,927 Other Income - - 4,001,432 8,542,261 4,887,538
Gain/(Loss) on Sale of Capital Asset - - - - -
Transfers (109,748) 52,902 706,869 1,896,122 2,744,512
- - 2,052,000 - -
Total Business-Type Activities (3,596,656) 737,746 12,997,419 15,448,594 7,966,977 Total Primary Government 160,490,807 $ 122,430,997 $ 136,070,184 $ 138,250,064 $ 116,180,487 $ Change in Net Position
Governmental Activities 76,728,855 $ 31,508,727 $ 41,516,554 $ 59,416,703 $ 44,259,471 $ Business-Type Activities 6,321,149 17,903,184 18,284,548 28,344,803 3,610,115 Total Primary Government 83,050,004 $ 49,411,911 $ 59,801,102 $ 87,761,506 $ 47,869,586 $ (Continued)
Extraordinary Item - Impairment of
Capital Asset
City of Corona
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
194
2017 2016 2015 2014 2013
Net (Expense)/Revenue
Governmental Activities $ (73,875,754) $ (57,999,580) $ (53,099,079) $ (71,620,834) $ (74,108,590) Business-Type Activities 20,444,289 10,143,246 18,314,266 6,998,759 (3,520,584) Total Primary Government Net Expense $ (53,431,465) $ (47,856,334) $ (34,784,813) $ (64,622,075) $ (77,629,174) General Revenues and
Other Changes in Net Position
Governmental Activities:

Taxes
Property Taxes $ 43,059,232 $ 42,156,726 $ 38,656,150 $ 36,462,210 $ 41,238,344 Sales and Use Tax 41,145,616 39,663,795 36,608,600 35,623,651 32,969,847 Other Taxes 9,565,580 9,349,800 10,566,662 9,099,819 8,249,945 Total taxes 93,770,428 91,170,321 85,831,412 81,185,680 82,458,136 Investment Earnings 623,227 3,172,905 1,988,557 2,296,081 470,023 Miscellaneous 6,892,170 4,765,043 3,686,771 2,096,681 2,355,179 Unrestricted Grants and Contributions - - - 407 145,742 Gain/(Loss) on Sale of Capital Asset - - - - -
Extraordinary Items - - 5,054,583 (56,854,230) (8,033,621) Transfers 44,970 14,540 (916,819) (547,690)
Special Items - - - - -
Total Governmental Activities 101,330,795 99,122,809 96,561,323 27,807,800 76,847,769 Business-Type Activities:

Investment Earnings 199,758 1,839,114 862,948 1,189,440 2,450,042 Other Income 479,465 45,168 493 1,996,793 3,890,307
Gain/(Loss) on Sale of Capital Asset - - (10,207) 2,497,251 - Transfers (44,970) (14,540) - 916,819 547,690
- - - - -
Total Business-Type Activities 634,253 1,869,742 853,234 6,600,303 6,888,039 Total Primary Government $ 101,965,048 $ 100,992,551 $ 97,414,557 $ 34,408,103 $ 83,735,808 Change in Net Position
Governmental Activities $ 27,455,041 $ 41,123,229 $ 43,462,244 $ (43,813,034) $ 2,739,179 Business-Type Activities 21,078,542 12,012,988 19,167,500 13,599,062 3,367,455 Total Primary Government $ 48,533,583 $ 53,136,217 $ 62,629,744 $ (30,213,972) $ 6,106,634 (Concluded)
Extraordinary Item - Impairment of
Capital Asset
City of Corona
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
195
2022 2021 2020 2019 2018
General Fund
Nonspendable 187,583,529 $ 19,804,579 $ 22,787,534 $ 26,492,072 $ 31,465,340 $ Restricted 30,102,506 6 - - -
Committed 48,121,481 42,939,942 41,987,810 39,899,272 36,247,833 Assigned 55,140,510 60,053,636 62,449,057 55,495,036 40,855,061 Unassigned 221,995 - - - -
Total General Fund 321,170,021 $ 122,798,163 $ 127,224,401 $ 121,886,380 $ 108,568,234 $ All Other Governmental Funds
Nonspendable - $ - $ - $ - $ - $
Restricted 112,789,005 104,416,319 102,563,720 97,172,609 79,405,424 Assigned 638,647 558,505 493,812 396,813 389,356
Unassigned (8,304,147) (3,301,897) (192,005) (48,500) (48,501) Total all other Govermental Funds 105,123,505 $ 101,672,927 $ 102,865,527 $ 97,520,922 $ 79,746,279 $ Fiscal Year
City of Corona
Schedule 3
Fund Balances, Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting) 196
2017 2016 2015 2014 2013
General Fund
Nonspendable $ 33,241,909 $ 34,124,977 $ 24,378,784 $ 23,595,803 $ 22,797,277 Restricted - - - - -
Committed 33,898,271 33,511,464 23,815,795 23,494,027 22,804,343 Assigned 41,979,112 33,141,625 50,696,555 44,748,578 41,298,885 Unassigned - - - - -
Total General Fund $ 109,119,292 $ 100,778,066 $ 98,891,134 $ 91,838,408 $ 86,900,505 All Other Governmental Funds
Nonspendable $ - $ 18,926,818 - $ $ 3,615,772 $ 61,512,775 Restricted 66,631,585 59,493,942 42,982,365 41,755,471 22,103,295 Assigned 432,652 9,428,541 5,825,674 1,299,482 17,604,929 Unassigned (48,525) (85,423) (151,869) - -
Total all other Govermental Funds $ 67,015,712 $ 68,837,060 $ 67,582,988 $ 46,670,725 $ 101,220,999 Fiscal Year
City of Corona
Schedule 3
Fund Balances, Governmental Funds (Continued)
Last Ten Fiscal Years (modified accrual basis of accounting) 197
2022 2021 2020 2019 2018
Revenues:

Property Taxes 55,400,381 $ 52,583,004 $ 49,470,941 $ 47,994,974 $ 45,775,246 $ Sales Taxes 89,912,163 44,752,843 39,657,924 44,125,758 38,118,548 Other Taxes 12,562,342 11,213,308 10,369,076 10,806,717 10,443,823 Licenses, Fees and Permits 6,577,476 5,469,660 4,459,005 14,334,965 6,530,878 Fines and Penalties 1,181,815 790,144 1,183,944 1,260,265 1,243,873 Special Assessments 9,432,946 9,203,891 8,906,312 8,599,669 8,518,569 Investment Earnings (5,003,021) 1,490,406 10,810,066 9,042,370 540,761 Intergovernmental Revenues 32,729,863 38,145,769 27,400,952 23,459,273 19,642,952 Current Services 23,562,912 21,619,934 21,047,563 21,810,063 21,536,206 Payments in Lieu of Services 6,212,499 5,796,335 4,734,340 7,732,356 9,973,782 Other Revenues 17,116,969 13,735,817 30,985,010 38,087,702 35,312,655 Total Revenues 249,686,345 204,801,111 209,025,133 227,254,112 197,637,293 Expenditures:

General Government 56,625,834 37,706,387 34,223,230 32,612,219 33,897,611 Public Safety - Fire 88,966,232 29,921,638 25,727,486 25,393,135 26,668,495 Public Safety - Police 161,926,977 48,530,984 47,307,419 45,914,260 47,426,516 Public Works & Maintenance Services 48,988,071 34,447,957 38,963,202 33,876,327 32,492,756 Community Services (*) 14,401,529 4,537,236 5,058,205 5,140,160 5,153,298 Planning and Development (*) 12,786,610 6,572,646 5,703,942 5,249,767 4,807,968 Economic Development 2,369,713 689,231 264,656 444,925 421,117 Capital Outlay 39,909,543 43,682,940 35,810,526 38,969,422 35,320,776 Debt Service
Principal 17,173,832 3,006,263 2,905,509 2,814,099 3,324,719 Interest and Fiscal Charges 3,338,137 1,271,765 1,343,061 1,445,283 1,533,230 Total Expenditures 446,486,478 210,367,047 197,307,236 191,859,597 191,046,486 Excess of Revenues Over/(Under) Expenditures (196,800,133) (5,565,936) 11,717,897 35,394,515 6,590,807 Other Financing Sources/(Uses)
Issuance of Debt 225,994,225 - - - -
Principal Retirement - - - - -
Bond Premium - - - - -
Issuance of Leases - - - - 1,403,261
Transfers In 1,467,597 1,274,306 2,508,422 1,382,903 5,533,474 Transfers Out (1,467,597) (1,327,208) (3,215,291) (3,764,070) (6,296,428) Total Other Financing Sources/(Uses) 225,994,225 (52,902) (706,869) (2,381,167) 640,307 Extraordinary Items - - - - -
Special Items - - - - 3,037,670
Net Change in Fund Balances 29,194,092 $ (5,618,838) $ 11,011,028 $ 33,013,348 $ 10,268,784 $ Debt Service as a Percentage of
Non-capital Expenditures 5.0% 2.6% 2.6% 2.8% 3.1%
* The City had reorganization in fiscal year 2021-22, Community Development became Planning and Development while Library and Recreation Services became Community Services.

Fiscal Year
City of Corona
Schedule 4
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting) 198
2017 2016 2015 2014 2013
Revenues:

Property Taxes $ 43,170,396 $ 42,175,687 $ 38,896,950 $ 36,721,899 $ 39,447,422 Sales Taxes 41,145,616 39,663,796 38,565,868 37,430,489 34,529,611 Other Taxes 9,421,375 9,255,961 7,598,684 6,835,935 6,370,589 Licenses, Fees and Permits 5,682,991 7,947,593 9,599,549 2,777,719 2,462,107 Fines and Penalties 1,467,593 1,338,341 1,041,887 1,068,778 1,717,820 Special Assessments 8,281,089 8,801,035 9,438,713 9,439,079 9,477,719 Investment Earnings 623,227 3,169,381 1,988,557 2,296,081 470,023 Intergovernmental Revenues 26,038,928 41,588,677 27,601,255 29,487,199 15,312,882 Current Services 19,260,514 18,375,839 17,276,984 17,287,466 16,003,725 Payments in Lieu of Services 10,113,191 10,202,448 12,638,674 10,644,539 8,999,739 Other Revenues 14,111,953 13,314,649 15,300,761 14,900,407 18,919,899 Total Revenues 179,316,873 195,833,407 179,947,882 168,889,591 153,711,536 Expenditures:

General Government 25,520,135 25,200,855 21,735,399 23,938,276 23,088,936 Public Safety - Fire 25,855,247 25,894,695 24,874,714 24,247,894 22,965,971 Public Safety - Police 46,885,033 45,080,687 41,966,882 41,161,796 39,770,719 Public Works & Maintenance Services 27,172,763 33,621,625 27,777,052 35,125,462 37,909,062 Community Services (*) 5,197,923 4,669,898 4,677,992 4,440,588 2,758,037 Planning and Development (*) 4,816,552 5,953,143 3,829,120 3,422,846 3,019,174 Economic Development 4,930,642 4,422,141 3,107,755 2,529,859 816,342 Capital Outlay 30,579,173 43,444,050 34,342,416 23,609,928 7,769,015 Debt Service
Principal 2,853,939 2,800,122 3,672,900 3,545,895 3,654,332 Interest and Fiscal Charges 1,408,493 1,953,345 2,064,757 2,210,669 2,719,421 Total Expenditures 175,219,900 193,040,561 168,048,987 164,233,213 144,471,009 Excess of Revenues Over/(Under) Expenditures 4,096,973 2,792,846 11,898,895 4,656,378 9,240,527 Other Financing Sources/(Uses)
Issuance of Debt 24,520,000 - - - -
Principal Retirement (27,212,450) - - - -
Bond Premium 2,974,564 - - - -
Issuance of Leases - -
Transfers In 6,291,621 2,588,851 2,315,815 3,767,587 3,771,227 Transfers Out (5,677,217) (1,987,900) (1,739,145) (1,124,534) (1,250,885) Total Other Financing Sources/(Uses) 896,518 600,951 576,670 2,643,053 2,520,342 Extraordinary Items - - - (56,854,230) (8,033,621)
Special Items - - - - -
Net Change in Fund Balances $ 4,993,491 $ 3,393,797 $ 12,475,565 $ (49,554,799) $ 3,727,248 Debt Service as a Percentage of
Non-capital Expenditures 2.9% 3.2% 4.3% 4.1% 4.6%
* The City had reorganization in fiscal year 2021-22, Community Development became Planning and Development while Library and Recreation Services became Community Services.

Fiscal Year
City of Corona
Schedule 4
Changes in Fund Balances, Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) 199
Fiscal
Year Agricultural,
Ended Irrigation
June 30 and Other
Acre % of Acre % of Acre % of Acre % of Acre % of Acre Feet % Feet Total Feet Total Feet Total Feet Total Feet Total Total Total 2013 23,283 64.8 3,480 9.7 1,225 3.4 3,711 10.3 4,243 11.8 35,942 100.0 2014 23,979 66.8 3,188 10.8 1,254 4.7 597 1.9 8,077 15.8 37,095 100.0 2015 21,621 63.0 3,024 8.8 1,090 3.2 510 1.5 8,061 23.5 34,306 100.0 2016 18,876 62.9 2,726 9.1 958 3.2 391 1.3 7,054 23.5 30,005 100.0 2017 19,668 65.0 2,814 9.3 998 3.3 383 1.3 6,412 21.2 30,275 100.0 2018 21,703 63.6 2,884 8.5 1,092 3.2 400 1.2 8,020 23.5 34,099 100.0 2019 19,981 63.6 2,711 8.6 1,031 3.3 353 1.1 7,324 23.3 31,400 100.0 2020 21,340 65.5 2,645 8.1 1,012 3.1 361 1.1 7,246 22.2 32,604 100.0 2021 22,864 65.8 2,630 7.6 1,054 3.0 362 1.0 7,856 22.6 34,766 100.0 2022 22,125 65.2 2,773 8.2 1,005 3.0 399 1.2 7,625 22.4 33,927 100.0 Note: 1) Amounts include reclaimed water sales.

Source: Corona Department of Water and Power
Residential Commercial Industrial Public Agency Total
City of Corona
Schedule 5a
Water Sales By User Type
1 Last Ten Fiscal Years
200
Fiscal Year Less: Total Taxable Total
Ended Residential Commercial Industrial Tax Exempt Assessed Direct Tax June 30 Property Property Property Other Property Value Rate 2013 10,441,897 2,124,926 2,121,234 1,500,847 264,187 15,924,717 1.0000 2014 10,909,040 2,126,622 2,142,615 1,462,220 279,902 16,360,595 1.0000 2015 11,717,313 2,165,931 2,215,181 1,501,930 301,090 17,299,265 1.0000 2016 12,263,772 2,245,287 2,304,917 1,589,670 354,324 18,049,322 1.0000 2017 12,889,324 2,271,239 2,344,708 1,626,588 335,878 18,795,981 1.0000 2018 13,784,933 2,348,687 2,457,625 1,681,325 360,006 19,912,564 1.0000 2019 14,411,691 2,617,996 2,620,278 1,680,616 359,344 20,971,237 1.0000 2020 15,133,389 2,736,983 2,708,635 1,764,358 481,982 21,861,383 1.0000 2021 15,997,437 2,826,228 2,952,503 1,794,076 486,611 23,083,633 1.0000 2022 16,890,158 2,810,127 3,093,455 1,736,378 486,557 24,043,561 1.0000 Source: HdL Coren & Cone, Riverside County Assessor Combined Tax Rolls Note: Property in the City is reassessed each year. Property is assessed at actual value; therefore, the assessed values are equal to the actual value. Tax rates are per $1,000 of assessed value.

City of Corona
Schedule 5b
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years (in thousands of dollars)
201
202
Monthly Base Rates
Ready-To-Serve Charge
Fiscal Year12 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
2013 2.04 6 18.88 24.76 35.42 61.73 90.09 153.98 236.53 434.39 638.90 2014 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2015 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2016 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2017 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2018 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2019 2.10 7 19.23 25.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2020 1.57 7 22.28 29.98 45.38 83.88 130.08 276.38 491.98 1,238.88 2,162.88 2021 1.65 7 23.40 31.48 47.65 88.08 136.59 290.20 516.58 1,300.83 2,271.03 2022 1.74 7 24.57 33.06 50.04 92.49 143.42 304.71 542.41 1,365.88 2,384.59 Structure adopted with Ordinance No. 3025, effective March 19, 2010. per 100 C.F. adopted with Ordinance No. 3005, effective September 4, 2009. 4) For Fiscal Year 2010-11, the quantity rate included a pass-through charge form WMWD of $0.04 per 100 C.F. for Tier 1 rates. 5) For Fiscal Year 2011-12, the quantity rate includes a pass-through charge from WMWD of $0.03 per 100 C.F. for Tier 1 rates. 6) For Fiscal Year 2012-13, the quantity rate includes a pass-through charge from WMWD of $0.08 per 100 C.F. for Tier 1 rates. 7) For Fiscal Year 2013-14, the quantity rate included a pass-through charge from WMWD of $0.03 per 100 C.F. for Tier 1 rates Source: Corona Department of Water and Power
Quantity
Rate per
100 C.F.
1) There are instances where the rates were changed during the fiscal year. 2) For Fiscal Year 2009-10 and forward, the stated rate per 100 C.F. is for Residential Tier 1 of the Budget Based Water Rate 3) For Fiscal Year 2009-10 rate includes a pass-through charge from Western Municipal Water District (WMWD) of $0.29 City of Corona
Schedule 6a
Potable Water Rates
Last Ten Fiscal Years
203
Monthly Base Rates
Ready-To-Serve Charge
Fiscal Year12 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
2013 1.48 $ 18.53 $ 24.30 $ 34.76 $ 60.58 $ 88.41 $ 151.10 $ 232.12 $ 426.29 $ 626.98 $ 2014 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2015 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2016 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2017 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2018 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2019 1.51 18.90 24.79 35.46 61.79 90.18 154.12 236.76 434.82 639.52 2020 1.65 18.12 23.74 34.97 63.06 96.77 203.51 360.81 905.74 1,579.89 2021 1.79 19.75 25.88 38.12 68.74 105.48 221.83 393.28 987.26 1,722.08 2022 1.94 21.33 27.95 41.17 74.23 113.92 239.57 424.75 1,066.24 1,859.85 1) There are instances where the rates were changed during the fiscal year.

Source: Corona Department of Water and Power
Quantity
Rate per
100 C.F.
2) Rates for Reclaimed Water were established July 2, 2006 by Ordinance 2854. 3) For Fiscal Year 2009-10 and forward, the stated rate per 100 C.F. is for Tier 1 of the Budget Based Water Rate Structure adopted with Ordinance No. 3025, effective March 19, 2010.

City of Corona
Schedule 6b
Reclaimed Water Rates
Last Ten Fiscal Years
204
General Corona/Norco Alvord Metropolitan Riverside City Basic Obligation Total School School Water Community
Year Rate1 Debt Service Direct District District District College 2013 1.0000 0.0000 1.0000 0.0654 0.1184 0.0035 0.0170
2014 1.0000 0.0000 1.0000 0.0684 0.1757 0.0035 0.0177
2015 1.0000 0.0000 1.0000 0.0647 0.1723 0.0035 0.0179
2016 1.0000 0.0000 1.0000 0.0854 0.1534 0.0035 0.0173
2017 1.0000 0.0000 1.0000 0.0942 0.1530 0.0035 0.0165
2018 1.0000 0.0000 1.0000 0.0831 0.1500 0.0035 0.0162
2019 1.0000 0.0000 1.0000 0.0903 0.1506 0.0035 0.0148
2020 1.0000 0.0000 1.0000 0.0939 0.1445 0.0035 0.0148
2021 1.0000 0.0000 1.0000 0.0982 0.1371 0.0035 0.0147
2022 1.0000 0.0000 1.0000 0.0982 0.1371 0.0035 0.0147
Notes:

Source: HdL Coren & Cone, Riverside County Assessor 2012/13-2021/22 Tax Rate Table City Direct Rates Overlapping Rates 2
1) The City's basic property tax rate may only be increased by a majority vote of the City's residents. Rates for debt service are set based on each year's requirements.
2) Overlapping rates are those of local and county governments that apply to property owners within the City of Corona. Not all overlapping rates apply to all Corona property owners.

City of Corona
Schedule 6c
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (rate per $100 of assessed value) 205
Percent of Percent of
Water Customer
Water
Charges Rank
Total Water
Revenues
Water
Charges Rank
Total Water
Revenues
City of Corona 3,797,709 $ 1 6.45% 3,435,777 $ 1 6.96%
Corona-Norco USD 996,029 2 1.69% 1,037,738 2 2.10%
CLI Atlas LLC 486,237 3 0.83%
Eagle Glen Master HOA 379,862 4 0.64% 185,849 7 0.38%
Raintree Corona Pointe, LLC. 378,675 5 0.64%
Eagle Glen Country Club, LLC 320,208 6 0.54%
Aseptic Solutions USA 318,655 7 0.54%
Breit MF Promonade Terrace LLC 177,884 8 0.30%
Cal Trans D-8 (CRNA) 160,539 9 0.27%
MM Meadowood Holdings, LLC 159,649 10 0.27%
MG Properties 3 0.94% 464,028
Integrated Protein Tech 226,903 4 0.46%
Waterstone at Corona Pointe 196,397 5 0.40%
Hunter Contracting 188,026 6 0.38%
EWR, Inc. 8 0.36% 177,299
Marquessa Apartments 170,808 9 0.35%
Watson Laboratories 162,272 10 0.33%
$ 12.17% 6,245,097 7,175,447 $ 12.66%
Source: Corona Department of Water and Power
2022 2013
City of Corona
Schedule 7a
Principal Water Customers
Current Year and Nine Years Ago
206
Percentage of Percentage of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
SCG Atlas Ashton LLC $ 293,219,933 1 1.22%
Castle and Cooke Corona Inc. 199,702,432 2 0.83% 172,018,751 2 1.08% Raintree Corona Pointe LLC 144,473,407 3 0.60%
Corona North Retail Development 127,379,794 4 0.53%
Rexco 125,588,918 5 0.52%
Breit MF Promenade Terrace LLC 102,221,087 6 0.43%
Artisan Corona Apartments LLC 101,828,615 7 0.42%
Costco Wholesale Corporation 96,425,449 8 0.40% 67,104,844 8 0.42% TC Palisades LLC 94,261,226 9 0.39%
AMFP V Country Hills 94,060,880 10 0.39%
Watson Laboratories Inc 179,326,609 1 1.13%
Kaiser Foundation Health Plan Inc 140,780,868 3 0.88%
Waterstone Apartments NF 88,052,250 4 0.55%
Dart Container Corporation of Calif 72,961,649 7 0.46%
223 1 DL Holdings 73,365,106 6 0.46%
Dix Leasing Corporation 60,295,252 9 0.38%
IBM Credit LLC 45,538,494 10 0.29%
Rexco Magnolia 80,249,439 5 0.50%
Total $ 1,379,161,741 5.73% $ 979,693,262 6.15%
Source: HdL Coren & Cone, Riverside County Assessor 2021/22 & 2012/13 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2022 2013
City of Corona
Schedule 7b
Principal Property Tax Payers
Current Year and Nine Years Ago
207
208
Fiscal Year Taxes Levied Delinquent
Ended for the Percentage Tax Percentage
June 30, Fiscal Year1 Amount of Levy Collections2 Amount of Levy 2013 22,560,351 $ 21,235,423 $ 94.13% 979,403 $ 22,214,826 $ 98.47% 2014 23,176,657 22,171,735 95.66% 808,121 22,979,856 99.15% 2015 24,628,905 23,778,058 96.55% 695,420 24,473,478 99.37% 2016 25,563,557 24,694,504 96.60% 585,598 25,280,102 98.89% 2017 26,689,890 26,019,467 97.49% 528,723 26,548,190 99.47% 2018 28,136,170 27,463,023 97.61% 514,039 27,977,062 99.43% 2019 29,448,060 28,882,342 98.08% 411,473 29,293,815 99.48% 2020 31,140,439 30,216,472 97.03% 394,599 30,611,071 98.30% 2021 31,992,547 30,787,935 96.23% 830,154 31,618,089 98.83% 2022 33,590,104 32,634,424 97.15% 645,671 33,280,095 99.08% Notes:
1) Amounts exclude debt service levies and former Redevelopment property tax increment. 2) Amounts excluded interest and penalties.

Source: Corona Finance Department, Riverside County Auditor-Controller's Office Collected within the
Fiscal Year of the Levy Total Collections to Date
City of Corona
Schedule 8
Property Tax Levies and Collections
Last Ten Fiscal Years
209
General Pension Lease Unamortized Refunding Long-Term Special Fiscal Obligation Obligation Revenue Bond Lease Lease Agreement Assessment Year Bonds Bonds Bonds Premium Payable Payable Payable Bonds 2013 - $ - $ 33,270 $ $ - $ 23,719 - $ - $ 515 $
2014 - - 31,250 - 22,353 - - 355
2015 - - 29,145 - 20,955 - - 185
2016 - - 27,975 - 19,510 - - -
2017 - - 24,520 2,826 18,016 - - -
2018 - - 23,335 2,677 16,472 1,047 - -
2019 - - 22,115 2,528 14,875 1,062 - -
2020 - - 20,860 2,379 13,225 905 - -
2021 - - 19,560 2,231 11,518 748 - -
2022 - 221,944 18,205 2,082 9,755 545 - -
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statement.

Source: Corona Finance Department
Governmental Activities
City of Corona
Schedule 9
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years (dollars in thousands, except per capita) 210
Percent
Installment Long-Term Term Certificates Unamortized Pension Total of Agreement Installment Loan of Revenue Bond Lease Contracts Obligation Primary Personal Per Payable Payable Payable Participation Bonds Premium Payable Payable Bonds Government Income Capita 1,299$ -$ 21,362 $ $ 60,791 64,380 $ - $ -$ 690$ -$ 206,026 $ 4.9% 1,314 $ 1,104 - 19,951 24,480 57,630 - - 690 - 157,813 3.8% 992$ 9,766 - 19,142 23,785 54,067 - - 690 - 157,735 3.8% 991$ 9,221 - 26,111 - 50,294 - - 690 - 133,801 3.1% 813$
8,656 - 26,729 - 44,710 1,701 - 690 - 127,848 2.9% 762$ 8,072 - 24,927 - 41,380 1,594 - 690 - 120,194 2.6% 713$ 7,467 - 23,052 - 37,935 1,486 24 690 - 111,210 2.3% 662$ 7,091 - 21,131 - 35,860 1,379 17 690 - 103,520 2.0% 615$ 6,704 19,163 - - 33,715 1,271 11 690 - 95,600 1.8% 564$ 6,305 - 17,147 - 31,480 1,164 3 690 37,538 346,858 6.4% 2,212$ Business-Type Activities
City of Corona
Schedule 9
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years (dollars in thousands, except per capita) 211
212
Less Net
Total Position Net Percentage
Pension Special Unamortized Lease General Restricted General of Actual Fiscal Obligation Assessment Lease Bond Revenue Bonded for Debt Bonded Value1 of Per Year Bonds Bonds Payable Premium Bonds Debt Repayment Debt Property Capita2 2013 -$ 515$ 23,719$ -$ 33,270$ 57,504$ 2,773$ 54,731$ 0.34% 349$ 2014 - 355 22,353 - 31,250 53,958 2,770 51,188 0.31% 322 2015 - 185 20,955 - 29,145 50,285 2,653 47,632 0.28% 299 2016 - - 19,510 - 27,975 47,485 2,417 45,068 0.25% 274
2017 - - 18,016 2,826 24,520 45,362 3,439 41,923 0.22% 250 2018 - - 16,472 2,677 23,335 42,484 5,100 37,384 0.19% 222 2019 - - 14,875 2,528 22,115 39,518 6,491 33,027 0.16% 196 2020 - - 13,225 2,379 20,860 36,464 8,628 27,836 0.13% 165 2021 - - 11,518 2,231 19,560 33,309 6 33,303 0.14% 197
2022 221,944 - 9,755 2,082 18,205 251,986 - 251,986 1.05% 1,607 Note: 1) See Schedule 5b for property value data.
2) Population data can be found in Schedule 14.

Details regarding the City's outstanding debt can be found in the notes to the financial statement.

Source: Corona Finance Department
City of Corona
Schedule 10
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years (dollars in thousands, except per capita) 213
Debt Est. Percentage City's Share of
Direct and Overlapping Tax and Assessment Debt: Outstanding Applicable 2 Overlapping Debt Metropolitan Water District 20,175 $ 0.708% 143 $
Riverside City Community College District 300,457 18.883% 56,735 Alvord Unified School District 197,212 12.854% 25,350
Corona-Norco Unified School District 498,729 54.197% 270,296 Alvord Unified School District CFD No. 2006-1 6,235 8.333% 520 Corona-Norco Unified School District CFD No. 97-1 646 100.000% 646 Corona-Norco Unified School District CFD No. 99-1 1,766 100.000% 1,766 Corona-Norco Unified School District CFD No. 99-2, Imp Areas A, B, C 4,028 100.000% 4,028 Corona-Norco Unified School District CFD No. 00-1 1,465 100.000% 1,465 Corona-Norco Unified School District CFD No. 01-1, Imp Areas A & B 5,615 100.000% 5,615 Corona-Norco Unified School District CFD No. 01-2, Imp Areas A, B, C 9,825 100.000% 9,825 Corona-Norco Unified School District CFD No. 03-3, Imp Area A & B 3,085 100.000% 3,085 Corona-Norco Unified School District CFD No. 03-5 1,575 100.000% 1,575 Corona-Norco Unified School District CFD No. 04-2, Imp Areas 1 & 3 3,255 100.000% 3,255 Corona-Norco Unified School District CFD No. 17-1 3,440 100.000% 3,440 City of Corona CFD No. 97-2 2,350 100.000% 2,350
City of Corona CFD No. 2000-1 3,415 100.000% 3,415
City of Corona CFD No. 2001-2 1,785 100.000% 1,785
City of Corona CFD No. 2002-1 10,910 100.000% 10,910
City of Corona CFD No. 2002-1, Imp Area 1 5,875 100.000% 5,875 City of Corona CFD No. 2002-4 5,565 100.000% 5,565
City of Corona CFD No. 2003-2 4,450 100.000% 4,450
City of Corona CFD No. 2004-1 2,200 100.000% 2,200
City of Corona CFD No. 2016-2 5,140 100.000% 5,140
City of Corona CFD No. 2017-2 3,510 100.000% 3,510
City of Corona CFD No. 2018-1 Improvement Area 1, 2018 Series 9,000 100.000% 9,000 City of Corona CFD No. 2018-1 Improvement Area 1, 2020 Series 10,150 100.000% 10,150 California Statewide Communities Development Authority Community Facilities District No. 2002-1 100.000% 2,585 2,585
California Statewide Communities Development Authority assessment District No. 2002- 1 21-01 100.000% 1,395 1,395
City of Corona 1915 Act Bonds 460 100.000% 460
Total Overlapping Tax and Assessment Debt 456,534
Direct and Overlapping General Fund Debt:

Overlapping General Fund Obligations
Riverside County General Fund Obligations 720,218 $ 7.260% 52,288 $ Riverside County Pension Obligations Bonds 820,060 7.260% 59,536 Corona-Norco Unified School District General Fund Obligations 21,594 53.769% 11,611 Western Municipal Water District General Fund Obligations 5,461 22.360% 1,221 Total Overlapping General Fund Obligations $ 124,656
Direct General Fund Obligations:

City of Corona General Fund Obligations 27,960 27,960 $ City of Corona Pension Obligation Bonds 259,482 259,482 Unamortized Bond Premium 2,082 2,082
Total Direct General Fund Obligations 100.000% 289,524 $ Total Direct and Overlapping General Fund Obligations $ 414,180 Less: Riverside County Supported Obligations -
Total Net Direct and Overlapping General Fund Obligations 414,180 $ Total Direct Debt $ 289,524
Total Gross Overlapping Debt $ 581,190
Total Net Overlapping Debt $ 581,190
Gross Combined Total Direct and Overlapping Debt3 $ 870,714 Net Combined Total Direct and Overlapping Debt $ 870,714 City of Corona
Schedule 11
Direct and Overlapping Governmental Activities Debt
1 As of June 30, 2022 (dollars in thousands)
214
1)
2)
3)
Source: Corona Finance Department, California Municipal Statistics, Inc.

Notes to Schedule 11
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Corona. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for the repaying the debt, of each overlapping government.

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, except for community facilities district overlapping debt which was estimated by determining the special tax charged on property within the City, divided by the community facilities district’s total special tax for the fiscal year.

Amount excluded tax and revenue anticipation notes, enterprise revenue bonds, mortgage revenue bonds, Successor Agency's tax allocation bonds and non-bonded capital lease obligations.

City of Corona
Schedule 11
Direct and Overlapping Governmental Activities Debt
1 (Continued)
As of June 30, 2022 (dollars in thousands)
215
Legal Debt Margin Calculation for Fiscal Year 2022
Assessed Value $ 24,043,561
Debt Limit (15% of assessed value) 3,606,534
Debt Applicable to limit:

General obligation debt 251,986
Less: Amount set aside for repayment of general obligation debt - Total net debt applicable to limit 251,986
Legal Debt Margin $ 3,354,548
2013 2014 2015 2016 2017
Debt Limit 2,388,708 $ 2,454,089 $ 2,594,890 $ 2,707,398 $ 2,819,397 $ Total net debt
applicable to limit 56,989 53,603 50,100 47,485 42,536
Legal debt margin $ 2,400,486 2,331,719 $ 2,544,790 $ 2,659,913 $ 2,776,861 $ Total debt applicable
to the limit as a percentage
of debt limit 2.386% 2.184% 1.931% 1.754% 1.509%
Note: Under State Finance Law, the City's outstanding general obligation debt should not exceed 15 percent of total assessed property value.

By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Source: Corona Finance Department
Fiscal Year
City of Corona
Schedule 12
Legal Debt Margin Information
Last Ten Fiscal Years (dollars in thousands)
216
2018 2019 2020 2021 2022
Debt Limit $ 3,145,686 2,986,885 $ 3,279,207 $ 3,462,545 $ 3,606,534 $ Total net debt
applicable to limit 43,531 40,580 37,369 33,309 251,986 Legal debt margin $ 2,943,354 $ 3,105,106 $ 3,241,838 $ 3,429,236 $ 3,354,548 Total debt applicable
to the limit as a percentage
of debt limit 1.457% 1.290% 1.140% 0.962% 6.987%
Fiscal Year
Schedule 12
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years (dollars in thousands)
City of Corona
217
Current Special Current
Fiscal Lease Account Assessment Account
Year Payments Balance Principal Interest Coverage Collections Balance Principal Interest Coverage 2013 30,825 $ 1 $ 28,750 11 $ 2,075 $ 1.00 212 $ 5 $ 145 $ 47 $ 1.13 2014 3,394 19 2,020 1,365 1.01 208 4 160 34 1.09
2015 3,373 19 2,105 1,281 1.00 192 1 170 22 1.01
2016 2,353 19 1,170 1,216 0.99 192 0 185 7 1.00
2017 30,614 5 27,975 9 1,367 1.04 - - - - -
2018 2,117 1 1,185 931 1.00 - - - - -
2019 2,121 - 1,220 901 1.00 - - - - -
2020 2,112 - 1,255 857 1.00 - - - - -
2021 2,106 - 1,300 806 1.00 - - - - -
2022 2,108 - 1,355 753 1.00 - - - - -
Notes: 1 Includes the defeasance of 2002 Lease Revenue bonds. 2 Includes the defeasance of the 1998 Water Revenue bonds. 3 Includes the defeasance of 1997 COPs and 2003 COPs.
4 Includes the advanced redemption of 2005 COPs.
5 Includes the defeasance of 2006 Lease Revenue bonds.
6 Apply new method - Utility Revenues derived from Pledged Revenue note.

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: Corona Finance Department
City of Corona
Schedule 13
Pledged Revenue Coverage
Last Ten Fiscal Years (dollars in thousands)
Debt Service Debt Service
Lease Revenue Bonds Special Assessment Bonds
218
Current
Fiscal Utility Lease Account
Year Revenues Principal Interest Coverage Payments Balance Principal Interest Coverage 2013 29,597 $ 2 $ 1,491$ 26,430 1.06 7,391$ 22$ 2,935$ 4,154$ 1.05 2014 3,187 1,165 2,022 1.00 60,552 2,143 60,080 2,611 1.00 2015 5,689 3,455 2,234 1.00 1,063 756 695 1,123 1.00
2016 5,809 3,655 2,144 1.00 24,341 0 23,785 555 1.00
2017 5,809 3,775 2,034 1.00 - - - - -
2018 28,093 5,166 2,537 3.65 - - - - -
2019 36,011 5,320 2,370 4.68 - - - - -
2020 26,851 3,996 2,222 4.32 - - - - -
2021 30,756 4,113 2,032 5.01 - - - - -
2022 28,516 4,251 1,962 4.59 - - - - -
Last Ten Fiscal Years (dollars in thousands)
Pledged Revenue Coverage (Continued)
City of Corona
Schedule 13
Debt Service Debt Service
Revenue Bonds Certificates of Participation
219
220
(1) (1) (1) (1) (2) (1)
Per
Personal Capita
Income Personal Median School Unemployment
Year Population (In Thousands) Income Age Enrollment Rate 2012 156,823 4,232,339 26,988 32.0 53,437 7.0%
2013 159,132 4,179,125 26,262 32.2 53,782 6.1%
2014 159,109 4,164,996 26,177 32.6 53,739 6.4%
2015 164,659 4,340,504 26,360 33.4 53,354 5.2%
2016 167,759 4,420,877 26,352 33.9 53,157 4.7%
2017 168,574 4,554,614 27,018 34.4 53,294 3.5%
2018 168,101 4,803,427 28,574 34.7 53,002 3.3%
2019 168,248 5,138,227 30,539 34.9 52,557 3.1%
2020 169,454 5,437,772 32,089 35.0 51,318 8.2%
2021 156,778 5,471,176 34,897 34.8 50,889 5.8%
Sources: (1) HdL, Coren & Cone;
(2) California Department of Education -
Corona-Norco Unified School District, School Year 2020/21 Enrollment.

City of Corona
Schedule 14
Demographic and Economic Statistics
Last Ten Calendar Years
221

Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Corona-Norco Unified School District 4,807 1 5.64% 4,686 1 5.84% Kaiser Permanente 450 9 0.53% 1,783 2 2.22%
Corona Regional Medical Center 1,096 2 1.29% 1,200 3 1.50% Fender USA Corona 960 3 1.13% 800 6 1.00%
Monster Energy 900 4 1.06%
City of Corona 824 5 0.97% 866 5 1.08%
All American Asphalt 650 7 0.76% 679 7 0.85%
Veg Fresh Farms 629 8 0.74%
TWR Framing Enterprises 725 6 0.85%
Thermal Structures 404 10 0.47%
Watson Laboratories, Inc. 4 1.18% 950
Arizon Pipeline 8 0.50% 400
Dart Container Corporation 9 0.49% 394
Hansen Beverage 10 0.44% 350
Total 11,445 13.44% 12,108 15.10%
Source: Corona Economic Development Department
2022 2013
City of Corona
Schedule 15
Principal Employers
Current Year and Nine Years Ago
222
2022 2021 2020 2019 2018** 2017 2016* 2015* 2014* 2013* Function/Program
General Government
Elected Officials 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 City Manager's Office10 19.55 14.07 13.33 14.07 9.90 10.35 9.73 9.73 9.85 9.84 Legal & Risk Management
1 6.72 6.72 6.34 6.19 6.52 7.67 6.67 6.01 5.29 5.01
Administrative Services 2,7,8 31.74 40.92 38.56 42.23 42.56 34.30 36.31 37.40

14.00 11.48 9.39
Information Technology 29.03 25.03 24.47 23.99 17.25 13.89 15.09 12.41 13.98 13.86 Finance2 33.82 31.93
Police
Officers 163.30 158.00 153.00 149.00 162.00 162.00 162.00 159.00 157.00 153.50 Civilians 100.93 86.70 83.25 80.40 88.01 88.39 85.90 79.13 80.62 77.97 Fire
Firefighters and officers 114.96 111.48 108.00 107.00 113.00 113.00 112.00 112.00 112.00 111.50 Civilians 7.24 5.32 7.76 7.75 8.20 4.88 6.48 7.18 6.06 6.49 Public Works3, 13 58.34 35.75 35.75 35.75 35.75 29.05 29.75 31.57 33.78 78.07 Maintenance Services3, 11 34.15 42.11 42.11 42.76 43.63 45.00 44.53 41.76 26.09 Community Development
4 23.89 22.14 22.14 25.00 26.48 26.00 22.08 18.02 17.00 Planning and Development Development
12 53.06
Economic Development
5 6.00 4.00 2.00 2.00 3.00 3.00 2.00 1.00 4.00 4.00
Library and Recreation Services
6 72.99 72.74 69.06 70.67 68.04 63.50 64.69 66.62
Community Services Department
9 111.65 86.36
Utilities Department6 112.21 111.60 109.60 110.02 108.91 119.18 119.68 120.79 121.76 112.75 Transit Services14 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 Total 836.81 754.48 729.87 722.08 735.92 742.42 738.90 710.23 712.12 727.10 * Data for Fiscal Year 2016 and prior was restated to Full Time Equivalents (FTE) from full-time positions. ** Data for Fiscal Year 2018 was updated to FTE Authorized information.

Note: 1 Formerly City Attorney's Office. During Fiscal Year 2014-15, Risk Management Division merged into the City Attorney's Office and formed Legal & Risk Management Department. 2 Formerly Finance Department. During Fiscal Year 2014-15, Human Resources Department merged into Finance and formed Administrative Services Department. 4 Building Department merged into Community Development Department during Fiscal Year 2008-09. 3 Public Works, and a new department, Maintenance Services was established to assume these functions. 4 During Fiscal Year 2014-15, Housing Division was merged into Community Development Department. 5 Formerly Housing and Economic Development, during Fiscal Year 2014-15, the Housing component was merged into Community Development Department. 6 Formerly Department of Water and Power 7 Redevelopment Department was dissolved in Fiscal Year 2011-12. 7 Human Resources Department separated from Administrative Services Department in Fiscal Year 2019-20. 8 Formerly Administrative Services Department. 9 Formerly Library and Recreation Services Department. 10 Formerly Management Services Department 11 various functions moved to Public Works. 12 Community Development was restructured in Fiscal Year 2021-22 and renamed Planning and Development. 13 Planning and Development. 14 Transit Services restructured during Fiscal Year 2021-22, and transferred to Community Services department.

Source: Corona Finance Department
City of Corona
Schedule 16
Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Human Resources 2,7
Public Works Department was reorganized during Fiscal Year 2013-14, various maintenance functions were removed from Full-time Equivalent Employees
Public Works Department was restructured during Fiscal Year 2021-22, various functions moved to Community Services and Maintenance Services Department was restructured during Fiscal Year 2021-22 and is no longer overseen by the Utilities department, 223
Function/Program 2022 2021 2020 2019 2018
Police
Physical Arrests 2,941 2,345 2,282 2,992 2,895
Parking Violations 5,224 2,731 9,574 8,851 6,228
Traffic Violations 8,148 6,051 4,718 6,133 9,024
Fire
Emergency Responses 15,359 14,422 13,810 13,141 13,041
Fires Extinguished 472 524 451 362 435
Inspections 1,396 979 1,652 1,092 2,726
Public Works/Maintenance Services
Street Resurfacing (miles) 66 44 75 37 51
Street Lights Repaired 714 415 437 418 495
Potholes Filled (sq. ft) 38,930 20,204 46,850 22,332 35,700 Community Services - Recreation
Sportsfields Participation 568,496 404,679 370,799 269,168 248,617 2 Comm. Centers/Gym/Pool 31,832 28,393 111,007 169,888 249,885 Other Activity Participation 330,737 222,473 226,205 135,399 171,679 Community Services - Library
Volumes in Collection 209,357 210,747 183,794 165,760 168,148 Total Volumes Borrowed 1 280,958 182,733 284,375 411,592 4 783,626 Water
New Connections 309 634 389 511 391
Water Main Repairs 45 95 86 72 36
Average Daily Consumption
(millions of gallons) 32.1 33.2 31.2 30.2 33.0
Wastewater
Average Daily Sewage Treatment
(millions of gallons) 12.6 12.8 12.6 14.3 13.8
Transit Services
Total Route Miles (round-trip) 47.7 47.7 47.7 47.7 47.5 Passengers
Fixed Route 95,892 76,645 100,186 118,366 129,972
Dial-A-Ride 22,673 13,386 39,989 52,580 58,089
1 Total Volumes Borrowed were restated for years between 2011 and 2016 to exclude the number of visits to Corona Library's website. 2 Reporting method changed - report by actual enrollment/attendance numbers. 4 Reduction in Total Volumes Borrowed was due to the elimination of 11 databases during the fiscal year.

Source: Various Departments.

Fiscal Year
3 Total Volume Borrowed was overstated by 309,505 in Fiscal Year 16/17. The correction was updated for Fiscal Year 16/17 in Fiscal Year 17/18.

City of Corona
Schedule 17
Operating Indicators by Function/Program
Last Ten Fiscal Years
224
Function/Program 2017 2016 1 2015 1 2014 1 2013 1
Police
Physical Arrests 3,403 5,583 5,337 5,422 4,709
Parking Violations 4,993 3,974 4,098 4,119 3,612
Traffic Violations 11,896 12,132 11,133 11,147 9,316
Fire
Emergency Responses 12,981 12,112 11,263 11,131 10,942
Fires Extinguished 382 381 346 397 415
Inspections 1,934 1,966 1,757 2,217 1,591
Public Works/Maintenance Services
Street Resurfacing (miles) 39 41 72 72 48
Street Lights Repaired 1,045 1,342 846 598 808
Potholes Filled (sq. ft) 75,000 15,076 15,978 13,185 16,085 Community Services - Recreation
Sportsfields Participation 2,190,246 1,760,600 1,898,300 1,670,668 1,664,800 Comm. Centers/Gym/Pool 282,797 211,410 189,519 158,431 144,981 Other Activity Participation 226,294 244,430 232,264 244,593 247,768 Community Services - Library
Volumes in Collection 167,586 164,421 167,432 136,128 174,585 Total Volumes Borrowed 1 648,522 3 1,073,736 927,956 861,842 846,171 Water
New Connections 166 1,408 173 498 482
Water Main Repairs 69 78 84 49 36
Average Daily Consumption
(millions of gallons) 30.4 28.4 32.6 34.9 32.0
Wastewater
Average Daily Sewage Treatment
(millions of gallons) 14.3 14.0 13.1 12.6 13.4
Transit Services
Total Route Miles (round-trip) 47.5 47.5 39.0 39.0 39.0 Passengers
Fixed Route 132,469 150,002 168,303 169,745 163,054
Dial-A-Ride 65,580 63,162 66,015 68,852 65,635
Fiscal Year
City of Corona
Schedule 17
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
225
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Function/Program
Police
Stations 1 1 1 1 1 1 1 1 1 1
Zone Offices 2 2 2 2 2 2 2 2 2 2
Patrol Units 71 65 62 68 65 55 59 59 53 53
Fire Stations 7 7 7 7 7 7 7 7 7 7
Streets
Streets and Alleys (miles) 464 463 444 408 408 406 403 404 403 406 Streetlights 1 14,976 15,117 15,117 12,380 12,380 12,587 12,059 12,022 11,888 11,271 Traffic Signals 191 191 190 188 184 182 179 173 170 169 Community Services - Recreation
Total Park Acreage 378 378 376 376 376 376 376 376 376 376 Playgrounds 27 27 27 27 27 27 27 27 27 27
Baseball/softball diamonds 36 36 36 36 36 36 36 36 36 36 Soccer/football fields 18 18 18 18 18 18 18 18 18 18
Community Centers 7 7 7 7 7 7 7 7 7 7
Civic Center Auditorium Seating Cap 380 380 380 380 380 380 380 380 380 380 Fiesta Bandshell Seating Capacity 500 500 500 500 500 500 500 500 500 500 Water
Water Main (miles) 736 736 736 719 697 687 683 694 681 681 Fire Hydrants 9,760 9,760 10,062 9,548 9,300 9,222 9,197 9,174 9,087 8,918 Storage Capacity 2
(millions of gallons) 55 55 52 52 52 51 51 51 51 51
Wastewater
Sanitary Sewers (miles) 464 464 464 458 440 435 434 452 444 444 Storm Sewers (miles) 225 225 223 171 171 167 167 172 171 166 Treatment Capacity 16 16 16 16 16 16 16 16 16 16
(millions of gallons)
Transit Services
Minibuses
Fixed Route 7 7 7 7 7 7 7 6 6 4
Dial-A-Ride 13 13 13 13 11 11 13 11 10 12
Source: Various City departments.

Note: 1 Includes only City-owned street lights.
2 Potable & reclaimed water storage capacity.

Fiscal Year
City of Corona
Schedule 18
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
226