Corona City Council
December 6, 2023

YEAR ENDED JUNE 30, 2023
Annual Comprehensive
Financial Report

CALIFORNIA

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Prepared by the City of Corona Finance Department

City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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 ............................................................................................................. xvi Organization Chart ..................................................................................................................................................... xvii

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 ........................................................................................ 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, 2023
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule:

General Fund ................................................................................................................................................. 125 Development Special Revenue Funds ........................................................................................................... 126 Other Grants & Endowments Special Revenue Fund .................................................................................... 127 Notes to the Budgetary Comparison Schedule ................................................................................................... 128 Modified Approach for Reporting Infrastructure .............................................................................................. 130 Schedule of Changes in Net Pension Liability and Related Ratios California Public Employees’ Retirement System Defined Pension Plan – Miscellaneous Plan .................. 132 California Public Employees’ Retirement System Defined Pension Plan – Safety Police Plan ................... 134 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 ....................... 136 Schedule of Contributions – Pensions:

CalPERS Miscellaneous ................................................................................................................................ 138 CalPERS Safety Plan – Police ....................................................................................................................... 140 CalPERS Safety Plan – Fire .......................................................................................................................... 142 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios:

Other Postemployment Benefits (“OPEB”) Plan .......................................................................................... 144 Schedule of Contributions – Other Postemployment Benefits (“OPEB”) Plan ............................................... 146

Supplementary Information:

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

Low Mod Income Housing Asset Capital Projects Fund .............................................................................. 151 Other Grants Capital Projects Fund ............................................................................................................... 152 Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................. 154 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 157 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Gas Tax Special Revenue Fund .............................................................................................................. 161 Measure A Special Revenue Fund .......................................................................................................... 162 Trip Reduction Special Revenue Fund ................................................................................................... 163 Asset Forfeiture Special Revenue Fund .................................................................................................. 164 Special Tax District Special Revenue Fund ............................................................................................ 165 Residential Refuse Special Revenue Fund .............................................................................................. 166 Public Facility Project Capital Projects Fund ......................................................................................... 167 HUD Grants Capital Projects Fund ......................................................................................................... 168 Planned Local Drainage Capital Projects Fund ...................................................................................... 169 City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
iii
Page
Supplementary Information (Continued):

Nonmajor Enterprise Funds:

Combining Statement of Net Position ........................................................................................................... 173 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 174 Combining Statement of Cash Flows ............................................................................................................ 175 Internal Service Funds:

Combining Statement of Net Position ........................................................................................................... 178 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 180 Combining Statement of Cash Flows ............................................................................................................ 182 Custodial Fund:

Combining Statement of Fiduciary Net Position ........................................................................................... 187 Combining Statement of Changes in Fiduciary Net Position ........................................................................ 188 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ................................................................................................................ 191 Financial Trends:

Net Position by Component ................................................................................................................................. 192 Changes in Net Position ....................................................................................................................................... 194 Fund Balances – Governmental Funds ................................................................................................................ 198 Changes in Fund Balances – Governmental Funds .............................................................................................. 200 Revenue Capacity:

Water Sales by User Type .................................................................................................................................... 202 Assessed Valuation and Actual Value of Taxable Property ................................................................................ 203 Potable Water Rates ............................................................................................................................................. 205 Reclaimed Water Rates ........................................................................................................................................ 206 Direct and Overlapping Property Tax Rates ........................................................................................................ 207 Principal Water Customers .................................................................................................................................. 208 Principal Property Tax Payers .............................................................................................................................. 209 Property Tax Levies and Collections ................................................................................................................... 211 Debt Capacity:

Ratios of Outstanding Debt by Type .................................................................................................................... 212 Ratios of Net General Bonded Debt Outstanding ............................................................................................... 215 Direct and Overlapping Governmental Activities Debt ....................................................................................... 216 Legal Debt Margin Information ........................................................................................................................... 218 Pledged Revenue Coverage.................................................................................................................................. 220 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................. 223 Principal Employers ............................................................................................................................................. 224 Operating Information:

Full-Time Equivalent City Governmental Employees by Function/Program ...................................................... 225 Operating Indicators by Function/Program .......................................................................................................... 226 Capital Asset Statistics by Function/Program ...................................................................................................... 228 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, 2022
Executive Director/CEO
v
vi
December 6, 2023
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, 2023. 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, 2023. 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. vii
City of Corona Letter of Transmittal
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 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 bondholders 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 159,534 as of January 2023, 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 QH[WHOHFWLRQF\FOHLQ1RYHPEHUZLOOFRYHU 'LVWULFWVDQGZLWK'LVWULFWVDQGWRIROORZLQ1RYHPEHU7KH&LW\0DQDJHULVDSSRLQWHGE\ WKH&LW\&RXQFLOWRPDQDJHWKH&LW\
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A Full-Service City
The City provides full services to its citizens, including essential services such as: public safety (police and fire), streets, electricity, 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 sewer 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 the 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.
viii
City of Corona Letter of Transmittal
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 47,836 households averaging 3.72 persons each, with a median age of 35.3. Annual median household income is $99,593, and 84.3% 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 $668,600.

The &ity 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 fluctuated in 2023. Industrial vacancy rates increased to 5.8% due to the construction of new industrial buildings, retail vacancy remained steady at

5.6%, and office vacancy rates steadily increased to 10.7%, which aligns with the county’s overall office vacancy increase.

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 roughly 2% increase with employment numbers increasing to 88,400 in the first quarter of fiscal year 2024 in comparison to 87,000 at the end of fiscal year 2023. Major contributors to local economic growth are the construction, healthcare, 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 commercial and industrial development. Rexco has two professional buildings in plan check totaling 21,400 square feet on the southwest corner of Temescal Canyon Road and Pronio. In addition, Rexco’s Latitude business park on Tom Barnes and I-15 is under construction in its second phase. This project has 13 buildings totaling 1,073,781 square feet for industrial. The strong local job market keeps the unemployment rate in Corona at 4.1%, which is approximately 0.9% below the Riverside County average.

Fiscal Year 2023 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 approximately 1,500 attached and detached condominium 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.

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 seen consumption growth increase from 1.7% to 2.4% over the last year.

Even with the fastest rate hike cycle in the last 40 years, the labor market has performed well, home building has picked up, home prices have rebounded, and industrial production has held up. The national unemployment rate was 3.6% at the end of Fiscal Year 2023 and increased to 3.8% in the first quarter of Fiscal Year 2024. However, improving national economic performance does not directly translate to ix
City of Corona Letter of Transmittal
improved financial conditions 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, the increase in fixed costs 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 rampdown on the unfunded accrued liability (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. In July 2021, the discount rate was lowered further from 7% to 6.8%. The reduction of the discount rate is projected to lower the system’s funded status to approximately 80%, and it will result in higher normal cost rates and the Unfunded Accrued Liability balance as well.

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 2022, an increase of 14.4% from the previous year. Consumer spending increased in Fiscal Year 2023, as the local economy was recovering from the COVID-19 pandemic. Much of this consumer spending is best seen in general consumer goods, automobile purchases, building construction-related industries, and Iood & Grugs. 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, business and industry, and general consumer goods as the largest categories.
x
City of Corona Letter of Transmittal
Source: HdL Companies
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 moved to the second largest category. Total taxable assessed valuation in Corona for Fiscal Year 2023, was $26.3 billion, representing an increase of 9.2% from the previous year.

Autos &
Transportation, 14.4%
Building &
Construction, 18.9%
Business & Industry,

18.8%
Food & Drugs,

2.9%
Fuel & Service Stations,

8.2%
General Consumer
Goods, 18.8%
Restaurants &
Hotels, 8.8%
Transfers & Other,

0.4%
State & County
Pools, 8.7%
Fiscal Year 2023 Sales Tax Revenue by Industry Group
(% of Total)
xi
City of Corona Letter of Transmittal
Source: HdL Coren & Cone; Riverside County Assessor combined tax rolls 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.
xii
City of Corona Letter of Transmittal
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, also known as the Pension Stabilization Trust. There was an initial contribution of $30 million. In FY 2023, $2.1 million was added to the Trust. 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, and the first businesses became 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 2023 were $42.5 million, 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 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 August 2022, S&P raised the credit rating for the City’s Wastewater Revenue Bond from “AA” to “AA+”. In May 2023, the most recent credit review performed by S&P, Water Revenue Bond was affirmed at “AA” credit rating. 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.

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, and 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 creditworthiness of the City. As of June 30, 2023, the Emergency Contingency Reserve balance was $45.3 million. xiii
City of Corona Letter of Transmittal
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 is 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 June 2023 and is reviewed on an annual basis.

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, 2022. This was the 33rd consecutive year that the City has received this prestigious award. The Certificate of Achievement is the highest form of recognition in the area of xiv
City of Corona Letter of Transmittal
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,
xv
xvi
Elected Officials
Executive Management

CITY OF CORONA
Elected Officials and Executive Management
TONY DADDARIO ............................................................................................ Mayor TOM RICHINS .......................................................................................... Vice Mayor JACQUE CASILLAS .......................................................................... Councilmember WES SPEAKE .................................................................................... Councilmember JIM STEINER ..................................................................................... Councilmember CHAD WILLARDSON .......................................................................... City Treasurer JACOB ELLIS ....................................................................................... City Manager BRETT CHANNING.................................................................. Assistant City Manager JUSTIN TUCKER….................................................................. Assistant City Manager JOANNE COLETTA. ............................................Planning and Development Director DEAN DERLETH.................................City Attorney & Legal/Risk Management Director DONNA FINCH......................................................Interim Community Services Director JESSICA GONZALES ..................................................Economic Development Director SHAUGHN HULL ........................................................ Chief Communications Officer SAVAT KHAMPHOU ..................................................... ............Public Works Director CHRIS MCMASTERS ..........................................................Chief Information Officer TOM MOODY.....................................................................................Director of Utilities ROBERT NEWMAN ............................................................................. Chief of Police ANGELA RIVERA ........................................................................ Chief Talent Officer KIM SITTON ........................................................................................Finance Director BRIAN YOUNG ........................................................................................... Fire Chief Citizens of Corona
City Treasurer
Chad Willardson, City Treasurer
City Council
Tony Daddario, Mayor
Tom Richins, Vice Mayor
Jacque Casillas, Council Member
Wes Speake, Council Member
Jim Steiner, Council Member
Dean Derleth
City Attorney/LRM
Jacob Ellis
City Manager’s Office
Robert Newman
Police Department
Brian Young
Fire Department
Joanne Coletta
Planning & Development
Donna Finch
Community Services
Kim Sitton
Finance
Savat Khamphou
Public Works
Jessica Gonzales
Economic Development
Tom Moody
Utilities
Chris McMasters
Information Technology
Angela Rivera
Human Resources
Justin Tucker
Assistant City Manager
Brett Channing
Assistant City Manager
Sylvia Edwards
City Clerk
Shaughn Hall
Communications
Citywide Organizational Chart
xvii
xviii
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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the 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, 2023, 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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of 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 auditors’ report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

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 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 accompanying 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 auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
November 27, 2023
o
4 5
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2023
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, 2023, 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, 2023 comply with all applicable statements issued by the Governmental Accounting Standards Board (GASB). GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA), was implemented by the City during the fiscal year ended June 30, 2023. This Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. GASB 96 will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The required disclosures will allow users to understand the scale and important aspects of the City’s SBITA activities and evaluate the City’s obligations and assets resulting from SBITAs. The definition and uniform guidance will result in greater consistency. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments; and enhance the relevance and reliability of the City’s financial statements.

Government-Wide
 The City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2023 by $1,363.4 million (net position).  The overall City’s net position increased by $86.4 million from the previous fiscal year, primarily due to revenues exceeding expenses. Total assets increased by $141.6 million, total liabilities decreased by $90.5 million, combined with a decrease in deferred outflows in the amount of $188.8 million, and a decrease in deferred inflows in the amount of $43.3 million, primarily due to Pension and Other Post Employment Benefits related items, net position of the City saw an increase of 6.8% from the prior year.
 Total expenses for governmental activities were $230.0 million for Fiscal Year 2023. The sources for these expenses came from program revenues of $93.2 million, taxes in the amount of $175.6 million, and other general revenue of $18.9 million. For the current year, revenues from governmental activities exceeded expenses by $57.7 million, net position for governmental activities increased to $1,034.6 million.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
6  For business-type activities, total revenues exceeded expenses by $28.7 million. Among the total program revenue of $141.4 million, $134.2 million was from charges for services, $3 million from operating contributions and grants, and the remaining $4.2 million represents capital contributions and grants. Net position for business-type activities increased to $328.8 million.

Fund Based
 The City’s governmental funds reported a combined ending fund balance of $480.0 million, an increase of $53.7 million from the previous year. The net increase was primarily due to the current year’s revenue exceeding expenditure. Among the total fund balance, $335.3 million, or 69.9% is either nonspendable or restricted for specific purposes. In addition, $52.9 million was committed by the City Council, including $45.3 million as an emergency contingency, and $7.6 million as designated revenues. There was $77.8 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 Sewer 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, 2023
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 in 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 AB109 PACT fund is closed in fiscal year 2023 since the City has fulfilled its duties specified in the agreements. The City’s fiduciary activities are reported in separate statements of fiduciary net position, and 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, 2023
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 focuses on the City’s net position and changes in the net position of the governmental and business-type activities during the fiscal year.

As noted earlier, the City’s net position increased by $86.4 million from the previous year. The increase in financial position was primarily due to positive operating results where revenues exceeded expenses.

Among the total net position, $1,177.5 million was 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 sewer 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 $185.9 million of the total government-wide net position is composed of $157.3 million restricted funds and $28.6 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, 2023
9 The graph below illustrates the various components of the City’s net position at fiscal year ended June 30, 2023.

Net Investment in
Capital Assets

86.4%
Restricted for
Capital Project

3.2%
Restricted for
Pension

2.6%
Restricted for
Community
Development
Projects

0.4%
Restricted for
Transportation and
Public Works

2.2%
Restricted for
Special Assessment
District

1.8%
Restricted for
Development
Projects

1.4%
Restricted for
Other Purposes or
Unassigned

2.1%
City of Corona Net Position
June 30, 2023
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
10 The schedule below is a condensed version of the City’s statement of net position for fiscal year ended June 30, 2023 with comparative data from the previous fiscal year:

City of Corona's Net Position
(in millions)
Governmental activities Business-type activities Total
2022 2022
2023 (As Res tated) 2023 2022 2023 (As Res tated)
Current and other assets $ 464.8 $ 374.1 189.0$ $ 169.8 $ 653.8 $ 543.9 Internal balances 168.9 174.7 (168.9) (174.7) - -
Capital assets 837.2 807.0 423.7 422.2 1,260.9 1,229.2
Total assets 1,470.9 1,355.8 443.8 417.3 1,914.7 1,773.1 Deferred charges on refunding 0.4 0.4 - - 0.4 0.4
Deferred pension related items 103.7 265.6 9.0 36.5 112.7 302.1 Deferred OPEB related items 24.5 23.9 3.4 3.4 27.9 27.3 Total deferred outflows 128.6 289.9 12.4 39.9 141.0 329.8 Long-term debt 239.9 259.6 78.6 87.6 318.5 347.2
Net pension liability 46.7 143.5 4.7 20.5 51.4 164.0
Net OPEB liability 82.5 74.4 11.3 10.6 93.8 85.0
Other liabilities 124.5 86.7 25.7 21.5 150.2 108.2
Total liabilities 493.6 564.2 120.3 140.2 613.9 704.4
Deferred pension related items 46.8 67.4 0.3 8.9 47.1 76.3 Deferred OPEB related items 12.8 24.8 1.8 3.5 14.6 28.3 Deferred charges on refunding bo 0.8 - 0.8 -
Lease 11.7 12.5 4.0 4.4 15.7 16.9
Total deferred inflows 71.3 104.7 6.9 16.8 78.2 121.5
Net investment in capital assets 805.9 774.6 371.6 365.1 1,177.5 1,139.7 Restricted 155.9 149.3 1.4 1.6 157.3 150.9
Unrestricted 72.8 53.0 (44.2) (66.6) 28.6 (13.6)
Total net position $ 1,034.6 $ 976.9 328.8$ $ 300.1 $ 1,363.4 $ 1,277.0 City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
11 Below are condensed financial data with comparative amounts of revenues and expenses for the current and the prior year.

Governmental Business-Type
Activities Activities Total
2023 2022 2023 2022 2023 2022
Revenues:

Program Revenues:

Charges for Services 35.4 $ 34.0 $ 134.2 $ 117.2 $ 169.6 $ 151.2 $ Operating Contributions and Grants 35.0 37.5 3.0 5.1 38.0 42.6 Capital Contributions and Grants 22.8 19.9 4.2 1.9 27.0 21.8 General Revenues:

Taxes:

Property Taxes 61.1 55.4 - - 61.1 55.4
Sales and Use Taxes 101.1 89.9 - - 101.1 89.9
Other Taxes 13.4 12.6 - - 13.4 12.6
Gain on sale of capital assets - 0.1 - - - 0.1
Investment Earnings (1.5) 10.6 3.4 (3.5) 14.0 (5.0)
Other Income 7.5 8.3 - - 8.3 7.5
206.5 287.7 120.7 144.8 432.5 376.1
Expenses:

General Government 35.1 42.0 - - 42.0 35.1
Public Safety - Fire 32.0 59.3 - - 59.3 32.0
Public Safety - Police 46.4 60.0 - - 60.0 46.4
Public Works & Maintenance Services 51.1 33.9 - - 33.9 51.1 Community Services 18.7 4.0 - - 18.7 4.0
Planning and Development 5.1 9.9 - - 9.9 5.1
Economic Development 1.2 1.3 - - 1.3 1.2
Interest and Fiscal Charges 3.9 4.8 - - 4.8 3.9
Water - - 60.7 63.4 60.7 63.4
Sewer - - 33.6 31.9 33.6 31.9
Electric - - 18.3 15.6 18.3 15.6
Transit Services - - 3.4 2.9 3.4 2.9
Airport - - 0.2 0.5 0.2 0.5
Total Expenses 178.8 230.0 114.3 116.2 346.1 293.1
Excess (Deficiency) of Revenues
Over (Under) Expenditures 76.6 57.7 28.7 6.4 86.4 83.0
Transfers - - - - -
Special Items - - - - - -
Change in Net Position 76.7 57.7 28.7 6.3 86.4 83.0
Net Position - Beginning of Year 897.0 976.9 293.8 300.1 1,277.0 1,190.8 Restatement 3.2 - - - 3.2
Net Position - End of Year $ 1,034.6 $ 976.9 $ 300.1 328.8 $ $ 1,363.4 $ 1,277.0 Total Revenues
City of Corona's Changes in Net Position
(in millions)
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
12 Governmental Activities
Total resources available during the year for governmental operations were $1,264.7 million. This amount consists of a beginning net position of $976.9 million, program revenues of $93.2 million, and general revenues of $194.5 million. Total uses in governmental activities during the year is $230.0 million. The net position for governmental activities increased by $57.7 million to $1,034.6 million as of June 30, 2023.

The chart below presents governmental activity revenues and expenses for the past five years:

The following graph shows the expenses of each governmental function compared to the program revenues generated specifically from its operations.

$-
$50
$100
$150
$200
$250
$300
$350
2019 2020 2021 2022 2023
Amount (in millions)
Fiscal Year
Revenues and Expenses - Five-Year Trend
Governmental Activities
Revenues Expenses
$0
$10
$20
$30
$40
$50
$60
$70
Amount (in millions)
Program Revenues and Expendses - Governmental Activities Year Ended June 30, 2023
Expenses Program Revenues
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
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 the maintenance and construction of the transportation system, with funding provided by the 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 the fiscal year ended June 30, 2023 was $230.0 million. As shown in the statement of activities, the amount the taxpayers ultimately funded for these activities was $175.6 million, $18.9 million was funded by investment earnings and other income, and the remaining $93.2 million was paid by various program revenues, including $35.4 million by those who directly benefited from the programs, $35.0 million from other governments and organizations that subsidized certain programs with operating grants and contributions, and $22.8 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, 2023 and June 30, 2022, respectively. $(20)
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Taxes Charges for
Services
Operating
Contributions &
Grants
Capital
Contributions &
Grants
Investment
Earnings
Other
Amount (in millions)
Revenue Sources - Two-Year Comparison
Governmental Activities
2023 2022
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
14 Highlights of the major revenue sources and expenses are listed below:
 Program revenues represent 39.0% of total revenues generated by governmental activities. Total program revenues for governmental activities in the current year were $93.2 million, an increase of $1.8 million from the previous year, primarily due to a decrease of $2.5 million in operating contributions and grants, and a increase of $2.9 million in capital contributions and grants, partially offset by an increase of $1.4 million in charges for services compared to the prior year.  Total tax revenues were $175.6 million for the current year, showing an increase of $17.7 million from the previous year. Taxes comprised 61.0% of the total revenues from governmental activities, Sales and use tax revenue represents 57.6% of total taxes, whereas property tax revenue ranked second sharing 34.8% of total tax revenue. The remaining 7.6% were comprised of franchise fee, business license tax, transient occupancy tax, and dwelling development fee.  Property tax revenues increased by $5.7 million compared to the prior year. Sales and use tax revenues increased by $11.2 million in comparison to the prior year, driven by the continuing recovery of the economy from the impact of COVID-19 and Measure X enacted in 2021.  Overall governmental expenses increased by $51.2 million from the prior year, primarily due to a GASB 68 pension expense entry of $43.6 million, and an increase of $9.9 million spending in capital projects.
$-
$20
$40
$60
$80
$100
$120
$140
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
2023 2022
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
15 Business-Type Activities
The City’s net position in the business-type activities increased by $28.7 million. The primary contributor to the increase was excess revenues over expenses. The overall net position reported in the business-type activities was $328.8 million as of June 30, 2023.

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.

$10
$30
$50
$70
$90
$110
$130
$150
2019 2020 2021 2022 2023
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
$90
Millions
Program Revenues and Expenses - Business-Type Activities Year Ended June 30, 2023
Expenses Program Revenues
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
16 Total expenses of all business-type activities for the fiscal year ended June 30, 2023, was $116.2 million, representing an increase of $1.9 million from the previous year. The total program revenue reported for the year was $141.4 million. As shown in the statement of activities, the amount paid by users of the systems was $134.2 million, reported as charges for services. Revenues from operating grants and contributions were $3.0 million, and capital grants and contributions were $4.2 million.

Total resources available during the year for business-type activities were $444.9 million. This amount consists of the beginning net position of $300.1 million, combined with total program revenues of $141.4 million, and investment earnings of $3.4 million. After funding total expenses of $116.2 million, the net position for business-type activities increased by $28.7 million to $328.8 million at June 30, 2023.

Compared to the prior year, the total expenses increased by $1.9 million, primarily due to the increase in energy costs in the Electric Funds. Revenues increased by $24.1 million, primarily due to a one-time settlement payment of $19.1 million, investment earnings of $2.1 million, and an increase in capital contribution of $2.5 million.

FUND FINANCIAL ANALYSIS
General Fund
The General Fund is the primary operating fund of the City. Fund balance increased by $44.0 million for the fiscal year ended June 30, 2023, with an ending balance of $365.2 million, primarily due to excess revenues over expenditures.

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

FY 2023 FY 2022 FY 2021
Fund Balances:

Nonspendable $ 181.3 $ 187.6 $ 19.8
Restricted 35.4 30.1 -
Committed 52.9 48.1 42.9
Assigned 77.0 55.2 60.1
Unassigned 18.6 0.2 -
Total Fund Balance $ 365.2 $ 321.2 $ 122.8
Fund Balance - Beginning $ 321.2 $ 122.8 $ 127.2
Excess Revenues over Expenditures 43.4 24.8 (5.4)
Transfers 0.6 1.0 1.0
Restatement - 172.6 -
Fund Balance - Ending $ 365.2 $ 321.2 $ 122.8
City of Corona's General Fund Fund Balance
Three-Year Trend Information
(in millions)
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
17 The graph below illustrates General Fund revenues by major sources:

A two-year comparison of each General Fund revenue source for the fiscal years ended June 30, 2023 and June 30, 2022 is presented below:

Property Taxes

27.8%
Sales and Use Tax

46.0%
Other Taxes

6.1%
License, Fees and
Permits

1.3%
Fines, Penalties &
Forfeitures

0.6%
Investment Earnings

3.0%
Intergovernmental

0.7%
Current Services

6.4%
Payment in Lieu of
Services

2.7%
Other

5.4%
General Fund Revenues
Year Ended June 30, 2023
$(10)
$10
$30
$50
$70
$90
$110
Amount (in millions)
General Fund Revenues - Two-Year Comparison
2023 2022
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
18 The graph below illustrates General Fund expenditures by category:

A two-year comparison of each General Fund expenditure category for the fiscal years ended June 30, 2023 and June 30, 2022 is presented below:
$0
$50
$100
$150
$200
$250
$300
Amount (in millions)
2023 2022
General Fund Expenditures - Two Year Comparison
General
Government

23.3%
Public Safety

44.5%
Public Works and
Maintenance
Services

2.3%
Community Services

9.5%
Planning and
Development

4.5%
Economic
Development

0.7%
Capital Outlay

3.0%
Debt Service

12.2%
General Fund Expenditures
Year Ended June 30, 2023
City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
19 Overall General Fund revenues increased by $28.1 million or 14.7%, compared to the previous year. Sales and use tax are the largest revenue source of the General Fund and increased by 12.5% in the current year.

Property taxes is the second largest revenue source of the General Fund and increased by 10.1%. As shown in the General Fund Revenues graph, fiscal year 2023 saw increases in most of the revenue sources. License, fees, and permits revenue increased by 16.0%, current service charges increased by 9.3%, and other tax revenues increased by 1.5%.

General Fund expenditures were $177.1 million, a decrease of $213.7 million compared to the previous year. The previous year’s expenditure is higher due to the issuance of the pension obligation bond to pay the unfunded accrued pension liabilities to CALPERS in the amount of $223.9 million.

Other Major Governmental Funds
The Development Special Revenue Fund reported a fund balance of $17.7 million, an increase of $0.3 million from the prior year. Primarily due to revenues exceeding expenditures in the current year.

The Low/Mod Income Housing Asset Capital Project Fund reported a fund balance of $38.4 million, an increase of $0.8 million from the previous year. The fund balance includes $19.1 million in cash and investments, $1.8 million in accounts receivables, $2.0 million in land held for resale, $7.0 million loan receivables, and long-term receivables in the amount of $8.3 million from various developers.

CAPITAL ASSETS
The capital assets of the City are those assets that are used in the performance of the City’s functions including infrastructure assets. At June 30, 2023, net capital assets totaled $837.2 million for governmental activities, and $423.6 million for business-type activities respectively. Depreciation on capital assets is recognized in 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, 2023
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, 2023, was 72, one point higher than the previous assessment result. The City is continuously taking action to prevent deterioration through an ongoing street rehabilitation program funded by 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 spent $31.1 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 to maintain the current average PCI rating of 71 through the year 2024 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 2022
2023 (As Restated) 2023 2022 2023 (As Restated)
Land $ 85.6 $ 85.6 $ 5.7 $ 5.7 $ 91.3 $ 91.3
Streets 224.0 223.7 - - 224.0 223.7
Buildings and improvements 101.1 105.4 50.0 52.4 151.1 157.8 Machinery and equipment 14.3 15.3 53.6 43.4 67.9 58.7
Infrastructure 211.0 208.1 274.5 274.9 485.5 483.0
Construction in progress 196.0 166.2 20.0 26.0 216.0 192.2 Intangible assets 5.2 2.6 19.8 19.8 25.0 22.4
Total Capital Assets $ 837.2 $ 806.9 $ 423.6 $ 422.2 $ 1,260.8 $ 1,229.1 City of Corona's Capital Assets
Net of Depreciation (in millions)

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, 2023
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 2022
2023 (As Restated) 2023 2022 2023 (As Restated)
Loans and Agreement Payable - $ - $ 21.0 $ 24.1$ 21.0$ $ 24.1 2012 Refunding Lease 7.9 9.8 - - 7.9 9.8
Lease Liabilities 0.4 0.5 - - 0.4 0.5
Subscription Liabilities 3.7 1.4 - 3.7 1.4
Revenue Bonds 16.8 18.2 27.6 31.5 44.4 49.7
Pension Obligation Bonds 207.9 221.9 35.2 37.5 243.1 259.4 Unamortized Bond Premium 1.9 2.1 2.3 1.2 4.2 3.3
Total Outstanding Debt $ 238.6 $ 253.9 $ 86.1 $ 94.3 $ 324.7 $ 348.2 City of Corona's Outstanding Debt
(in millions)

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund appropriations and transfers out were originally adopted at $182.5 million for Fiscal Year 2023. Final appropriations were increased by $29.4 million to $211.9 million. Among the budgetary increase, $19.2 million was due to continuing appropriations from the prior year’s capital projects and grant funded activities and $5.5 million was for prior year committed purchases (encumbrances).

There was $4.7 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 decreased by $1.6 million in Fiscal Year 2023. The budget was decreased by $2.0 million due to transfers from personnel to the operating budget. In addition, $0.3 million was added due to grant funding and other position adjustments approved throughout the fiscal year. (2) The operating budget increased by a total of $6.8 million. The primary increase is in the Homeless Programs Division within the City Manager’s Office. The General Fund Homeless Programs expense budget was increased by $1.8 million for the State Encampment Funding Grant and multiple professional services agreements approved by the City Council. The General Government budget increased by $1.5 million due to a transfer from personnel to the operating budget. The Fire Department budget was increased by $0.8 million for multiple grants approved by the City Council and the purchase of a Live Fire Training Simulator. The Community Services Department budget was increased by $0.7 million for additional Graffiti Removal Services, Performance Center Feasibility Study, Rent Stabilization Program Services, and new theater equipment for the Historic Civic Center Theatre. The Planning and Development Department budget was increased by $1.0 million for additional contract labor services and reimbursing the Inspection Division budget for deposits collected through fees. The increase was partially offset by a transfer of $250,000 from the personnel budget. (3) The capital outlay budget was decreased by a net total of $0.6 million. There were budgetary reductions for various projects that were completed or no longer needed.

City of Corona
Management’s Discussion and Analysis (Continued)
For the Year Ended June 30, 2023
22 Below is a summary of changes made to the adopted budget:

Original Budget $ 182,509,504
Continued Appropriations 19,230,955
Prior Year Encumbrances 5,508,539
Supplemental Changes 4,692,229
Final Budget $ 211,941,227
At June 30, 2023, the General Fund expenditure and transfers out budget concluded the fiscal year with a net favorable variance of $34.4 million.

Included in the $34.4 million savings, $20.5 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 $3.0 million will be carried forward from the operating budget for grants and other activities approved by the City Council. Encumbered purchase orders totaling $3.1 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 $7.9 million. Please refer to the Required Supplementary Information section of the accompanying financial statements for additional information.

Final Budget $ 211,941,227
Actual Expenditures 177,081,110
Transfers Out 427,304
Favorable Budget Variance $ 34,432,813
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 $ 147,273,417 335,049,591 $ 482,323,008 $ Accounts receivable 15,280,102 5,909,010 21,189,112
Interest receivable 781,060 2,200,646 2,981,706
Due from other government 662,160 37,158,663 37,820,823 Lease receivable - due within one year 317,309 421,187 738,496 Inventories and prepaid items 3,512,527 687,521 4,200,048 Deposits 160,314 42,728 203,042
Land held for resale - 3,459,648 3,459,648
Restricted cash and investments 69,787 43,937,402 44,007,189 Total current assets 428,866,396 168,056,676 596,923,072 Noncurrent assets:

Restricted cash and investments 509,441 - 509,441
Internal balances (168,939,598) 168,939,598 -
Lease receivable - due in more than one year 11,818,303 3,938,362 15,756,665 Long-term receivables - 24,142,938 24,142,938
Investment in joint venture 16,499,348 - 16,499,348
Capital assets:

Non-depreciable 505,571,460 45,228,253 550,799,713
Depreciable, net 326,395,273 378,298,831 704,694,104
Intangible assets, net 5,164,419 144,057 5,308,476
Total capital assets, net 837,131,152 423,671,141 1,260,802,293 Total noncurrent assets 1,042,031,991 275,678,694 1,317,710,685 Total assets 443,735,370 1,470,898,387 1,914,633,757

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 8,992,591 103,730,520 112,723,111 Other postemployment benefits related items 3,358,528 24,450,381 27,808,909 Deferred charges on refunding - 388,113 388,113
Total deferred outflows of resources 12,351,119 128,569,014 140,920,133 City of Corona
Primary Government
June 30, 2023
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 11,013,986 16,817,482 27,831,468 Retention payable 332,715 912,687 1,245,402
Accrued interest payable 914,052 968,073 1,882,125
Unearned revenue 4,432,054 58,951,207 63,383,261
Deposits payable 176,709 13,911,155 14,087,864
Long-term liabilities- due within one year 32,946,129 8,818,314 41,764,443 Total current liabilities 124,506,733 25,687,830 150,194,563 Noncurrent liabilities:

Long-term liabilities - due in more than one year 78,604,810 239,918,191 318,523,001 Net pension liability 4,747,561 46,679,020 51,426,581
Net other postemployment benefits liability 11,331,133 82,491,637 93,822,770 Total noncurrent liabilities 369,088,848 94,683,504 463,772,352 Total liabilities 120,371,334 493,595,581 613,966,915

DEFERRED INFLOWS OF RESOURCES
Pension related items 260,346 46,828,567 47,088,913
Other postemployment benefits related items 1,759,369 12,808,368 14,567,737 Deferred charges on refunding bonds 838,138 - 838,138
Lease 4,027,356 11,665,510 15,692,866
Total deferred inflows of resources 6,885,209 71,302,445 78,187,654

NET POSITION
Net investment in capital assets 805,911,955 371,608,006 1,177,519,961 Restricted:

Capital projects - 43,106,386 43,106,386
Pension - 35,415,224 35,415,224
Debt service 526,057 14,024 540,081
Special projects and programs:

Community development projects - 6,035,165 6,035,165
Transportation and public works 52,127 29,409,713 29,461,840 Special assessment district projects - 23,892,609 23,892,609 Development projects 855,624 17,719,706 18,575,330
Other - 283,659 283,659
Total restricted 155,876,486 1,433,808 157,310,294
Unrestricted (deficit) 72,780,934 (44,211,868) 28,569,066 Total net position $ 328,829,946 1,034,569,375 $ 1,363,399,321 $ Primary Government
June 30, 2023
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 $ 6,661,052 42,003,289 $ 4,323,894 $ - $ Public safety - fire 59,329,187 4,493,877 944,539 -
Public safety - police 60,018,129 1,812,973 1,916,869 100,671 Public works and maintenance services 33,911,619 14,061,014 24,404,813 22,129,404 Community services 2,774,611 18,724,859 346,553 594,461 Planning and development 9,928,888 5,646,101 3,033,202 - Economic development - 1,303,084 - -
Interest and fiscal charges 4,841,729 - - -
Total governmental activities 35,449,628 230,060,784 34,969,870 22,824,536 Business-type Activities:

Water 80,554,287 60,671,831 296,312 2,906,932
Sewer 35,209,947 33,600,749 42,346 1,275,525
Electric 18,276,874 17,882,717 22,206 -
Transit services 3,357,530 94,181 2,553,963 -
Airport 224,270 480,645 51,639 -
Total business-type activities 134,221,777 116,131,254 2,966,466 4,182,457 Total primary government $ 169,671,405 346,192,038 $ 37,936,336 $ 27,006,993 $ Program Revenues
City of Corona
Statement of Activities
For the Year Ended June 30, 2023
28 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government $ - (31,018,343) $ (31,018,343) $
Public safety - fire (53,890,771) - (53,890,771)
Public safety - police (56,187,616) - (56,187,616)
Public works and maintenance services 26,683,612 - 26,683,612 Community services - (15,009,234) (15,009,234)
Planning and development (1,249,585) - (1,249,585)
Economic development - (1,303,084) (1,303,084)
Interest and fiscal charges (4,841,729) - (4,841,729)
Total governmental activities - (136,816,750) (136,816,750) Business-type Activities:

Water 23,085,700 - 23,085,700
Sewer 2,927,069 - 2,927,069
Electric (371,951) - (371,951)
Transit services (709,386) - (709,386)
Airport 308,014 - 308,014
Total business-type activities 25,239,446 - 25,239,446
Total primary government 25,239,446 (136,816,750) (111,577,304) General revenues and transfers:

General revenues:

Taxes:

Property taxes, levied for general purpose 61,085,887 - 61,085,887 Transient occupancy taxes 3,416,203 - 3,416,203
Sales and use taxes 101,136,363 - 101,136,363
Franchise taxes 7,052,785 - 7,052,785
Business license taxes 2,602,146 - 2,602,146
Cannibus taxes 305,394 - 305,394
Total taxes - 175,598,778 175,598,778
Investment income 10,613,780 3,441,400 14,055,180
Other income 8,269,548 - 8,269,548
Total general revenues 3,441,400 194,482,106 197,923,506 Changes in net position 28,680,846 57,665,356 86,346,202 Net position - beginning of year 300,149,100 976,904,019 1,277,053,119 Net position - end of year $ 328,829,946 1,034,569,375 $ 1,363,399,321 $ Net (Expenses) Revenues and
Changes in Net Position
City of Corona
Statement of Activities (Continued)
For the Year Ended June 30, 2023
29 30

FUND FINANCIAL STATEMENTS
31 32

GOVERNMENTAL FUND FINANCIAL STATEMENTS
33 Low Mod
General Income Housing Other
Fund Asset Grants
ASSETS
Cash and investments $ 19,083,867 136,112,765 $ 20,858,459 $ Accounts receivable 1,799,550 2,327,017 -
Interest receivable 129,746 1,439,931 98,455
Due from other governments - 25,363,673 4,458,046
Due from other funds - 5,754,722 -
Long-term receivables 8,268,191 1,141,327 -
Lease receivable - 12,239,490 -
Loans receivable 6,969,965 - 2,300,000
Advance to other funds - 179,711,589 -
Inventories and prepaid items - 490,355 -
Deposits - 42,728 -
Land held for resale 1,998,648 - -
Restricted assets:

Cash and investments with fiscal agents 8,153,429 35,336,659 304,391 Total assets $ 46,403,396 399,960,256 $ 28,019,351 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 3,924 10,584,754 $ 3,227,250 $ Retention payable - 80,899 802,988
Due to other funds - - 153,410
Advance from other funds - - -
Deposits payable 5,898 8,424,194 54,718
Unearned revenue 8,000,000 2,319,007 19,068,173
Total liabilities 8,009,822 21,408,854 23,306,539

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 1,630,872 1,856,499
Leases - 11,665,510 -
Total deferred inflows of resources - 13,296,382 1,856,499

Fund Balances:

Nonspendable 181,343,271 - -
Restricted 35,429,248 38,393,574 2,856,313
Committed 52,915,998 - -
Assigned 76,964,148 - -
Unassigned (deficit) - 18,602,355 -
Total fund balances 38,393,574 365,255,020 2,856,313
Total liabilities, deferred inflows of
resources, and fund balances $ 46,403,396 399,960,256 $ 28,019,351 $ (Continued)
Capital Projects Funds
City of Corona
Balance Sheet
Governmental Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 34 Nonmajor Total
Other Grants Governmental Governmental
Development and Endowments Funds Funds
ASSETS
Cash and investments $ 29,069,009 28,731,287 $ 54,585,667 $ 288,441,054 $ Accounts receivable 436 - 1,682,850 5,809,853
Interest receivable 138,472 136,863 257,179 2,200,646
Due from other governments 1,320,720 - 6,016,224 37,158,663 Due from other funds - - - 5,754,722
Long-term receivables - 1,189,660 1,717,405 12,316,583
Lease receivable - - - 12,239,490
Loans receivable - 303,758 2,252,632 11,826,355
Advance to other funds - - - 179,711,589
Inventories and prepaid items - - - 490,355
Deposits - - - 42,728
Land held for resale - - 1,461,000 3,459,648
Restricted assets:

Cash and investments with fiscal agents - 58,059 84,864 43,937,402 Total assets $ 30,528,637 30,419,627 $ 68,057,821 $ 603,389,088 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 94,429 167,359 $ 1,963,651 $ 16,041,367 $ Retention payable - 25,272 3,528 912,687
Due to other funds 1,168,760 - 4,432,552 5,754,722
Advance from other funds - 7,083,245 1,333,102 8,416,347 Deposits payable - 5,424,045 2,300 13,911,155
Unearned revenue 29,158,018 - 406,009 58,951,207
Total liabilities 30,421,207 12,699,921 8,141,142 103,987,485

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,047,192 - 3,163,103 7,697,666
Leases - - - 11,665,510
Total deferred inflows of resources 1,047,192 - 3,163,103 19,363,176

Fund Balances:

Nonspendable - - - 181,343,271
Restricted 17,719,706 - 59,513,716 153,912,557
Committed - - - 52,915,998
Assigned - - 880,443 77,844,591
Unassigned (deficit) (939,762) - (3,640,583) 14,022,010 Total fund balances (939,762) 17,719,706 56,753,576 480,038,427 Total liabilities, deferred inflows of
resources, and fund balances $ 30,528,637 30,419,627 $ 68,057,821 $ 603,389,088 $ (Concluded)
Special Revenue Funds
City of Corona
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 35 36
Total Fund Balances - Total Governmental Funds $ 480,038,427 Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets, net of $115,032 reported in Internal Service Funds 505,456,428 $ Depreciable assets, net of $2,783,343 reported in Internal Service Funds 323,611,930 Intangible assets, net of $4,871,752 reported in Internal Service Funds 292,667 829,361,025 7,697,666
100,843,052
(45,154,606)
(46,744,971)
23,366,290
(78,834,088)
(12,240,466)
13,419,867
(857,656)
388,113
(223,440,297)
(1,933,468)
(11,339,513)
Net position of governmental activities $ 1,034,569,375 Compensated absences, net of $(483,231) 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 $2,887,468 reported in Internal Service Funds Pension related deferred inflows of resources, net of $83,596 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 $1,084,091 reported under Internal Service Funds OPEB related deferred inflows of resources, net of $(567,902) 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 $2,355,644 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:

Net pension liability, net of $(1,524,414) reported in Internal Service Funds Net OPEB liabilities, net of $(3,657,549) reported under Internal Service Funds Unamortized deferred charges on refunding
Long-term debt, net of $(13,215,639) reported under Internal Service Funds Unamortized bond premium
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, 2023
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
General Income Housing Other
Fund Asset Grants
REVENUES:

Taxes $ - 175,478,236 $ - $
Licenses, and permits 2,783,393 - -
Intergovernmental 2,217,199 - 28,797,125
Special assessments 669,915 - -
Investment earnings 6,546,859 564,618 (519,801)
Fines and penalties 1,436,615 - -
Current services 14,297,476 - -
Payment in lieu of services 6,029,949 - -
Other revenues 11,024,950 335,862 444,858
Total revenues 900,480 220,484,592 28,722,182

EXPENDITURES:

Current:

General government 41,210,177 - -
Public safety- fire 30,847,526 - -
Public safety- police 48,097,386 - -
Public works and maintenance services 3,975,073 - -
Community services 16,852,617 - 302,373
Planning and development 7,867,814 112,524 -
Economic development 1,158,528 - -
Capital outlay 5,355,123 - 20,561,246
Debt service:

Principal retirement 16,754,074 13,219 -
Interest and fiscal charges 4,962,792 4,055 -
Total expenditures 129,798 177,081,110 20,863,619

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 770,682 43,403,482 7,858,563
OTHER FINANCING SOURCES (USES):

Transfers in - 1,108,821 -
Transfers out - (427,304) -
Total other financing sources (uses) - 681,517 -
NET CHANGE IN FUND BALANCES 770,682 44,084,999 7,858,563 FUND BALANCES:

Beginning of year 321,170,021 37,622,892 (5,002,250)
End of year 365,255,020 $ 38,393,574 $ 2,856,313 $
(Continued)
Capital Projects Funds
For the Year Ended June 30, 2023
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
Special Revenue Other Grants Governmental Governmental
Development and Endowments Funds Funds
REVENUES:

Taxes - $ - $ - $ 175,478,236 $
Licenses, and permits 1,116,456 - 796,368 4,696,217
Intergovernmental - 1,951,957 14,717,104 47,683,385
Special assessments - - 9,036,923 9,706,838
Investment earnings 360,701 (453,330) 900,057 7,399,104 Fines and penalties - - 98,870 1,535,485
Current services - 55,372 10,828,139 25,180,987
Payment in lieu of services 221,760 - - 6,251,709
Other revenues 19,354 46,656 599,325 12,471,005
Total revenues 1,600,655 1,718,271 36,976,786 290,402,966

EXPENDITURES:

Current:

General government - - - 41,210,177
Public safety- fire 3,301 - - 30,850,827
Public safety- police 2,585 614,900 145,463 48,860,334
Public works and maintenance services 47,820 - 21,388,138 25,411,031 Community services 10,747 75,627 44,122 17,285,486
Planning and development - 1,076,791 227,855 9,284,984
Economic development - - - 1,158,528
Capital outlay 1,347,302 1,048,064 12,412,613 40,724,348 Debt service:

Principal retirement - - 105,565 16,872,858
Interest and fiscal charges - - 32,645 4,999,492
Total expenditures 2,815,382 1,411,755 34,356,401 236,658,065

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,214,727) 306,516 2,620,385 53,744,901 OTHER FINANCING SOURCES (USES):

Transfers in - - 427,304 1,536,125
Transfers out - - (1,108,821) (1,536,125)
Total other financing sources (uses) - - (681,517) -
NET CHANGE IN FUND BALANCES (1,214,727) 306,516 1,938,868 53,744,901 FUND BALANCES:

Beginning of year 17,413,190 274,965 54,814,708 426,293,526 End of year 17,719,706 $ (939,762) $ 56,753,576 $ 480,038,427 $ (Concluded)
Special Revenue Funds
City of Corona
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 39 40
Net change in fund balances - total governmental funds: $ 53,744,901 Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay expenditures, net of $5,660,041 reported in Internal Service Funds 40,717,269 $ Effect on disposal of capital assets (12,339)
Depreciation and amortization expense, net of $3,005,950 reported in Internal Service Funds (13,211,908) 27,493,022 (4,027,320)
Change in compensated absences, net of $(57,341) reported in internal service funds (881,563) Pension expense, net of pension contribution made after measurement date (43,613,355) OPEB expense, net of OPEB contribution made after measurement date 4,173,411 Accrued interest for long-term debt 38,890
Deferred charges amortization (29,855)
Principal repayment of long-term debt, net of $3,079,743 reported in Internal Service Funds 16,872,858 Bond premium amortization 148,728
3,745,639
Change in net position of governmental activities $ 57,665,356 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 $1,006,595) allocated to business-type activities).

City of Corona
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2023
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 Sewer Electric
ASSETS
Current assets:

Cash and investments $ 72,994,516 53,522,694 $ 18,338,331 $ Accounts receivable 4,638,835 8,553,866 2,072,790
Interest receivable 347,581 326,992 94,721
Due from other funds - 103,058 -
Due from other governments 123,425 119,820 86,630
Lease receivable 317,309 - -
Inventories and prepaid items - 3,512,527 -
Deposits - - 160,314
Restricted cash and investments 43 17,617 -
Total current assets 78,104,400 66,473,883 20,752,786
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable 3,938,362 - -
Advances to other funds - 3,614,688 1,333,102
Investment in joint venture - 16,499,348 -
Capital assets:

Capital assets, not being depreciated 29,408,688 13,562,682 2,256,883 Capital assets, being depreciated, net 241,310,722 127,089,763 8,088,316 Intangible asset, being amortized, net 85,663 58,394 -
Total capital assets 270,805,073 140,710,839 10,345,199 Total noncurrent assets 161,334,316 274,743,435 11,678,301 Total assets 239,438,716 341,217,318 32,431,087

DEFERRED OUTFLOW OF RESOURCES
Pension related items 4,704,878 3,925,210 227,851
OPEB related items 1,813,160 1,345,601 143,588
Total deferred outflow of resources $ 5,270,811 6,518,038 $ 371,439 $ (Continued)
Business-Type Activities
Enterprise Funds
Corona Utility Authority
City of Corona
Statement of Net Position
Proprietary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 44 Water Sewer Electric

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 1,920,583 8,112,711 $ 136,030 $ Retention payable 316,084 16,631 -
Accrued interest 314,368 582,668 14,115
Due to other funds 103,058 - -
Unearned revenue - 4,057,243 821
Deposits payable 20,000 154,449 1,800
Claims and judgments, due within one year - - -
Compensated absences, due within one year 515,382 660,432 38,029 Lease payable, due within one year - 365 -
Bonds and loans payable, due within one year 1,775,803 5,432,362 309,557 Total current liabilities 19,016,861 4,965,278 500,352
Noncurrent liabilities:

Advance from other funds 65,808,682 110,434,350 -
Claims and judgments, due in more than one year - - -
Compensated absences, due in more than one year (97,189) 163,440 - Lease payable, due in more than one year - - -
Bonds and loans payable, due in more than one year 26,268,409 47,444,885 3,994,925 Net pension liability 2,072,281 2,483,900 120,292
Net other postemployment benefits liability 4,539,841 6,117,310 484,443 Total noncurrent liabilities 166,643,885 98,592,024 4,599,660 Total liabilities 103,557,302 185,660,746 5,100,012

DEFERRED INFLOWS OF RESOURCES
Pension related items 136,212 113,639 6,597
Other postemployment benefits related items 949,826 704,895 75,219 Deferred charges on refunding bonds 838,138 - -
Lease - 4,027,356 -
Total deferred inflows of resources 818,534 5,951,532 81,816

NET POSITION
Net investment in capital assets 236,305,617 123,147,160 10,345,199 Restricted:

Debt service 509,441 16,616 -
Transportation and public works - - -
Development projects 840,304 15,320 -
Unrestricted (deficit) 15,836,786 (80,214,475) 17,275,499 Total net position $ 140,333,691 156,123,078 $ 27,620,698 $ (Continued)
Corona Utility Authority
June 30, 2023
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 $ 147,273,417 2,417,876 $ 46,608,537 $ Accounts receivable 15,280,102 14,611 99,157
Interest receivable 781,060 11,766 -
Due from other funds 103,058 - -
Due from other governments 662,160 332,285 -
Lease receivable 317,309 - -
Inventories and prepaid items 3,512,527 - 197,166
Deposits 160,314 - -
Restricted cash and investments 69,787 52,127 -
Total current assets 168,159,734 2,828,665 46,904,860
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable 3,938,362 - -
Advances to other funds - 4,947,790 -
Investment in joint venture - 16,499,348 -
Capital assets:

Capital assets, not being depreciated - 45,228,253 115,032 Capital assets, being depreciated, net 1,810,030 378,298,831 2,783,343 Intangible asset, being amortized, net - 144,057 4,871,752 Total capital assets 1,810,030 423,671,141 7,770,127
Total noncurrent assets 449,566,082 1,810,030 7,770,127 Total assets 617,725,816 4,638,695 54,674,987

DEFERRED OUTFLOW OF RESOURCES
Pension related items 134,652 8,992,591 2,887,468
OPEB related items 56,179 3,358,528 1,084,091
Total deferred outflow of resources $ 12,351,119 190,831 $ 3,971,559 $ (Continued)
Enterprise Funds
Business-Type Activities
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
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 $ 11,013,986 844,662 $ 776,115 $ Retention payable 332,715 - -
Accrued interest 914,052 2,901 110,417
Due to other funds 103,058 - -
Unearned revenue 4,432,054 373,990 -
Deposits payable 176,709 460 -
Claims and judgments, due within one year - - 3,549,604 Compensated absences, due within one year 1,236,612 22,769 334,648 Lease payable, due within one year 365 - 2,152,158
Bonds and loan payable, due within one year 7,581,337 63,615 675,041 Total current liabilities 1,308,397 25,790,888 7,597,983 Noncurrent liabilities:

Advance from other funds 176,243,032 - -
Claims and judgments, due in more than one year - - 18,902,568 Compensated absences, due in more than one year 75,616 9,365 148,583 Lease payable, due in more than one year - - 1,676,816
Bonds and loan payable, due in more than one year 78,529,194 820,975 8,711,624 Net pension liability 4,747,561 71,088 1,524,414
Net other postemployment benefits liability 11,331,133 189,539 3,657,549 Total noncurrent liabilities 1,090,967 270,926,536 34,621,554 Total liabilities 296,717,424 2,399,364 42,219,537

DEFERRED INFLOWS OF RESOURCES
Pension related items 3,898 260,346 83,596
Other postemployment benefits related items 29,429 1,759,369 567,902 Deferred charges on refunding bonds - 838,138 -
Lease 4,027,356 - -
Total deferred inflows of resources 6,885,209 33,327 651,498

NET POSITION
Net investment in capital assets 1,810,030 371,608,006 3,941,153 Restricted:

Debt service 526,057 - -
Transportation and public works 52,127 52,127 -
Development projects 855,624 - -
Unrestricted (deficit) (46,567,512) 534,678 11,834,358
Total net position $ 326,474,302 2,396,835 $ 15,775,511 $ Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds 2,355,644 Net position of business-type activities $ 328,829,946
(Concluded)
June 30, 2023
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 Sewer Electric
OPERATING REVENUES:

Service charges $ 31,773,519 56,519,580 $ 15,804,982 $
Intergovernmental - - -
Fees and permits 2,284,322 3,153,518 594
Fines and penalties 627,664 325,486 57,609
Other revenues 826,620 20,253,525 2,019,532
Total operating revenues 35,209,947 80,554,287 17,882,717 OPERATING EXPENSES:

Personnel services 7,119,672 8,900,584 612,205
Contractual services 2,090,355 3,950,323 615,640
Materials and supplies 14,669,958 28,395,644 1,898,602
Utilities 2,463,143 6,015,132 14,714,590
Depreciation and amortization 5,215,826 9,533,321 410,579 Claim expense - - -
Total operating expenses 31,558,954 56,795,004 18,251,616 OPERATING INCOME (LOSS) 3,650,993 23,759,283 (368,899)
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 296,312 42,346 22,206
Investment earnings 240,500 1,243,330 541,076
Interest expense (4,415,250) (2,382,405) (122,257)
Gain on sale of capital assets - (30,563) -
Gain on investment in joint venture - 1,384,644 -
Total nonoperating revenues (expenses) 257,352 (3,878,438) 441,025 CAPITAL CONTRIBUTIONS:

Capital grants and contributions 1,275,525 2,906,932 -
Total capital contributions 1,275,525 2,906,932 -
CHANGE IN NET POSITION 5,183,870 22,787,777 72,126
NET POSITION:

Beginning of year 133,335,301 135,149,821 27,548,572
End of year 156,123,078 $ 140,333,691 $ 27,620,698 $
Corona Utility Authority
Enterprise Funds
For the Year Ended June 30, 2023
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 $ 104,098,081 - $ 26,264,483 $
Intergovernmental 2,553,963 2,553,963 -
Fees and permits 5,485,609 47,175 -
Fines and penalties 1,051,318 40,559 -
Other revenues 23,586,769 487,092 1,362,779
Total operating revenues 136,775,740 3,128,789 27,627,262 OPERATING EXPENSES:

Personnel services 16,922,472 290,011 5,506,295
Contractual services 8,876,329 2,220,011 3,526,746
Materials and supplies 45,126,360 162,156 3,178,955
Utilities 23,416,990 224,125 1,713,277
Depreciation 15,827,378 667,652 3,005,950
Claim expense - - 5,619,146
Total operating expenses 110,169,529 3,563,955 22,550,369 OPERATING INCOME (LOSS) 26,606,211 (435,166) 5,076,893
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 51,639 412,503 -
Investment earnings 31,850 2,056,756 -
Interest expense (17,845) (6,937,757) (312,374)
Gain on sale of capital assets - (30,563) (12,285)
Gain on investment in joint venture - 1,384,644 -
Total nonoperating revenues (expenses) (3,114,417) 65,644 (324,659) TRANSFERS AND CAPITAL CONTRIBUTIONS:

Capital grants and contributions 4,182,457 - -
Total capital contributions and transfers 4,182,457 - - CHANGE IN NET POSITION 27,674,251 (369,522) 4,752,234
NET POSITION:

Beginning of year 2,766,357 298,800,051 11,023,277
End of year $ 326,474,302 2,396,835 $ 15,775,511 $
Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds 1,006,595 Changes in net position of business-type activities $ 28,680,846 Business-Type Activities
Enterprise Funds
For the Year Ended June 30, 2023
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 Sewer Electric
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 80,595,281 $ 34,768,319 $ 17,343,103 $ Cash paid to suppliers for goods and services (35,602,306) (19,625,318) (18,284,920) Cash paid to employees for services (7,705,533) (6,559,747) (604,988) Cash paid for insurance or claims - - -
Net cash provided by (used in) operating activities 8,583,254 37,287,442 (1,546,805) CASH FLOWS FROM NONCAPITAL FINCING ACTIVITIES:

Intergovernmental grant received (81,442) 3,825,641 (63,603) Receipt from other funds 103,058 - -
Payment to other funds - (103,058) -
Principal paid on pension obligation bonds (1,267,359) (711,481) (283,659) Interest paid on pension obligation bonds (388,810) (218,274) (87,023) Net cash provided by (used in) noncapital financing activities (908,139) 2,066,414 (434,285)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (7,688,937) (5,374,939) (403,023) Proceed from sale of capital assets - - -
Repayment of capital advances from other funds - - (5,049,273) Receipt of repayment for advances to other funds - - 263,561 Proceed from refunding bonds 22,215,491 - -
Principal paid on long-term debt (26,674,573) (1,316,514) - Interest paid on long-term debt (3,392,299) (2,197,640) (163,369) Net cash (used in) capital and related financing activities (8,889,093) (15,540,318) (5,352,104) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 1,092,680 34,685 512,384
Investment in joint venture - (1,903,189) -
Net cash provided by (used in) investing activities (810,509) 34,685 512,384 Net increase (decrease) in cash and cash equivalents (2,024,487) 23,848,223 (6,820,810) CASH AND CASH EQUIVALENTS:

Beginning of year 75,528,487 29,692,088 25,159,141
End of year $ 73,504,000 53,540,311 $ 18,338,331 $
CASH AND CASH EQUIVALENTS:

Cash and investment $ 72,994,516 53,522,694 $ 18,338,331 $ Restricted cash and investment, current 17,617 43 -
Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 73,504,000 53,540,311 $ 18,338,331 $ NONCASH ITEMS:

Lease and subscription of intangible assets - $ - $ - $ Issuance of lease and subscription liabilities - $ - $ - $ (Continued)
City of Corona
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities
Enterprise Funds
Corona Utility Authority
See accompanying Notes to the Basic Financial Statements. 50 Water Sewer Electric

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

Operating income (loss) 23,759,283 $ 3,650,993 $ (368,899) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 9,533,321 5,215,826 410,579
Change in assets and liabilities:
(Increase) decrease in accounts receivable 106,250 (441,628) 36,800 (Increase) decrease in due from other government - - -
(Increase) decrease in inventories and prepaid items (554,359) - - (Increase) decrease in deposits - - (10,977)
(Increase) decrease in lease receivable 293,589 - -
(Increase) decrease in deferred outflows
of resources related to pension 14,835,267 8,619,300 3,670,650 (Increase) decrease in deferred outflows
of resources related to OPEB 55,356 (150,257) 159,169
Increase (decrease) in accounts payable and accrued liabilities 3,271,904 (671,421) (1,082,750) Increase (decrease) in deposits payable 60,113 - (576,414) Increase (decrease) in unearned revenue - - -
Increase (decrease) in compensated absences 108,957 (32,770) (83,032) Increase (decrease) in claims payable - - -
Increase (decrease) in net pension liabilities (8,488,716) (4,971,991) (2,068,881) Increase (decrease) in OPEB liabilities 309,380 824,340 (456,621) Increase (decrease) in deferred inflows
of resources related to pension (4,599,485) (2,926,615) (938,234) Increase (decrease) in deferred inflows
of resources related to OPEB (984,460) (532,523) (238,195) Increase (decrease) in deferred inflows
of resources related to leases (418,958) - -
Total adjustment 13,528,159 4,932,261 (1,177,906)
Net cash provided by (used in) operating activities $ 8,583,254 37,287,442 $ (1,546,805) $ (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, 2023
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 2,843,214 $ 135,549,917 $ 27,601,956 $ Cash paid to suppliers for goods and services (2,524,535) (76,037,079) (10,628,415) Cash paid to employees for services (296,553) (15,166,821) (4,810,712) Cash paid for insurance or claims - - (5,278,345)
Net cash provided by (used in) operating activities 44,346,017 22,126 6,884,484 CASH FLOWS FROM NONCAPITAL FINCING ACTIVITIES:

Intergovernmental grant received 3,766,980 86,384 -
Receipt from other funds 103,058 - -
Payment to other funds (103,058) - -
Principal paid on pension obligation bonds (58,293) (2,320,792) (618,570) Interest paid on pension obligation bonds (17,884) (711,991) (110,131) Net cash provided by (used in) noncapital financing activities 734,197 10,207 (728,701)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (13,466,899) (917,673)
Proceed from sale of capital assets - - 1,823
Repayment of capital advances from other funds (5,049,273) - - Repayment of advances to other funds - 263,561 -
Proceed from refunding bonds - 22,215,491 -
Principal paid on long-term debt - (27,991,087) (2,461,173) Interest paid on long-term debt - (5,753,308) (123,020) Net cash (used in) capital and related financing activities (29,781,515) - (3,500,043) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 1,666,166 26,417 -
Investment in joint venture - (1,903,189) -
Net cash provided by (used in) investing activities (237,023) 26,417 - Net increase (decrease) in cash and cash equivalents 15,061,676 58,750 2,655,740 CASH AND CASH EQUIVALENTS:

Beginning of year 132,790,969 2,411,253 43,952,797
End of year $ 147,852,645 2,470,003 $ 46,608,537 $
CASH AND CASH EQUIVALENTS:

Cash and investment $ 147,273,417 2,417,876 $ 46,608,537 $ Restricted cash and investment, current 52,127 69,787 - Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 147,852,645 2,470,003 $ 46,608,537 $ NONCASH ITEMS:

Lease and subscription of intangible assets - $ - $ 4,742,368 $ Issuance of lease and subscription liabilities - $ - $ (4,742,368) $ (Continued)
City of Corona
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 52 Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds

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

Operating income (loss) (435,166) $ 26,606,211 $ 5,076,893 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 667,652 15,827,378 3,005,950
Change in assets and liabilities:
(Increase) decrease in accounts receivable 8,761 (289,817) (25,306) (Increase) decrease in due from other government 72,030 72,030 - (Increase) decrease in inventories and prepaid items - (554,359) 11,371 (Increase) decrease in deposits - (10,977) -
(Increase) decrease in lease receivable - 293,589 -
(Increase) decrease in deferred outflows
of resources related to pension 425,886 27,551,103 7,956,062 (Increase) decrease in deferred outflows
of resources related to OPEB 2,785 67,053 (22,929)
Increase (decrease) in accounts payable and accrued liabilities 78,305 1,596,038 (2,235,111) Increase (decrease) in deposits payable 80 (516,221) -
Increase (decrease) in unearned revenue (366,446) (366,446) - Increase (decrease) in compensated absences (30,782) (37,627) 57,341 Increase (decrease) in claims payable - - 340,801
Increase (decrease) in net pension liabilities (243,678) (15,773,266) (4,564,686) Increase (decrease) in OPEB liabilities 6,261 683,360 359,124 Increase (decrease) in deferred inflows
of resources related to pension (131,952) (8,596,286) (2,544,414) Increase (decrease) in deferred inflows
of resources related to OPEB (31,610) (1,786,788) (530,612) Increase (decrease) in deferred inflows
of resources related to leases - (418,958) -
Total adjustment 457,292 17,739,806 1,807,591
Net cash provided by (used in) operating activities $ 44,346,017 22,126 $ 6,884,484 $ (Concluded)
Enterprise Funds
Proprietary Funds
Business-Type Activities
City of Corona
Statement of Cash Flows (Continued)
For the Year Ended June 30, 2023
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 $ 1,792,250 3,319,388 $
Accounts receivable - 31,859
Interest receivable 8,547 -
Due from other governments 118,942 -
Restricted:

Cash and investments with fiscal agent 28,378,168 6,628,690 Total assets 30,297,907 9,979,937

DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 17,843
OPEB related items - 47,205
Total deferred outflows of resources - 65,048

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities - 481
Retention payable - 3,203
Interest payable - 548,773
Deposits payable 62,059 -
Bonds payable, due within one year - 4,134,865
Noncurrent liabilities:

Bonds payable, due in more than one year - 30,248,931
Net pension liability - 9,420
Net OPEB liability - 159,262
Total liabilities 62,059 35,104,935

DEFERRED INFLOWS OF RESOURCES
Pension related 517
OPEB related items - 24,728
Total deferred inflows of resources - 25,245

NET POSITION
Restricted for:

Successor agency - (25,085,195)
Organization and other governments 30,235,848 -
Total net position (deficit) $ 30,235,848 (25,085,195) $ City of Corona
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
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 $ 7,204,595 $ -
Assessment revenue - 6,881,992
Investment earning 149,633 781,721
Other revenue - 15,190,000
Total additions 22,853,713 7,354,228
DEDUCTIONS:

Administrative expenses 29,593 -
Developer payments 1,034,796 96,937
Payments for district expenses - 835,270
Payments for district debt service 2,415,050 6,512,378
Total deductions 7,444,585 3,479,439
Change in net position 15,409,128 3,874,789
NET POSITION :

Beginning of year (28,959,984) 14,826,720
End of year $ 30,235,848 (25,085,195) $
City of Corona
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
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, 2023
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 ............................................................................................. 68 D. Cash and Investments with Fiscal Agents ............................................................................................ 68 E. Fair Value Measurement ...................................................................................................................... 68 F. Interfund Transactions. ........................................................................................................................ 69 G. Inventories and Prepaid Items .............................................................................................................. 69 H. Lease Receivables ................................................................................................................................ 69 I. Capital Assets ....................................................................................................................................... 70 J. Deferred Outflows and Inflows of Resources ...................................................................................... 71 K. Unearned and Unavailable Revenue .................................................................................................... 71 L. Compensated Absences ........................................................................................................................ 71 M. Claims Payable ..................................................................................................................................... 72 N. Lease Liabilities ................................................................................................................................... 72 O. Subscription Based Information Technology Arrangement Liabilities ............................................... 72 P. Long-Term Debt .................................................................................................................................. 73 Q. Pensions. .............................................................................................................................................. 73 R. Other Postemployment Benefits (“OPEB”) ......................................................................................... 74 S. Property Taxes ..................................................................................................................................... 75 T. Net Position and Fund Balances .......................................................................................................... 75 U. Spending Policy ................................................................................................................................... 76 V. Use of Estimates................................................................................................................................... 77 W. Implementation of New GASB Pronouncement .................................................................................. 77 Note 2 – Stewardship, Compliance and Accountability ..................................................................................... 77 Note 3 – Cash and Investments ............................................................................................................................ 77 A. Deposits ................................................................................................................................................ 78 B. Investments .......................................................................................................................................... 79 C. Local Agency Investment Fund (“LAIF”) ........................................................................................... 79 D. Fair Value Measurement ...................................................................................................................... 80 E. Risk Disclosures ................................................................................................................................... 80 Note 4 – Investment in Joint Venture .................................................................................................................. 82 Note 5 – Land Held for Resale .............................................................................................................................. 83 Note 6 – Long-Term Receivables.......................................................................................................................... 83 Note 7 – Lease Receivables ................................................................................................................................... 84 Note 8 – Interfund Transactions .......................................................................................................................... 85 A. Government-Wide Financial Statements ............................................................................................. 85 B. Fund Financial Statements ................................................................................................................... 88 City of Corona
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
62 Note 9 – Capital Assets .......................................................................................................................................... 90 A. Governmental Activities ...................................................................................................................... 90 B. Business-Type Activities .................................................................................................................... 91 C. Infrastructure Assets ............................................................................................................................ 92 D. Construction in Progress and Capital Project Commitments ............................................................... 92 Note 10 – Compensated Absences ........................................................................................................................ 93 Note 11 – Long-Term Liabilities .......................................................................................................................... 94 A. Governmental Activities ...................................................................................................................... 94 B. Business-Type Activities ..................................................................................................................... 97 C. Fiduciary Funds ................................................................................................................................... 101 D. Non-City Obligations ........................................................................................................................... 103 E. Conduit Debt Obligations .................................................................................................................... 105 F. Bond Requirement ............................................................................................................................... 105 Note 12 – Risk Management ................................................................................................................................. 105 A. Workers’ Compensation Insurance ...................................................................................................... 105 B. General Liability Insurance .................................................................................................................. 106 C. Property Losses (Excluding Earthquake or Flood) .............................................................................. 106 D. Adequacy of Coverage ......................................................................................................................... 106 Note 13 – Pension Plan .......................................................................................................................................... 106 A. General Information about the Pension Plan ....................................................................................... 106 B. Net Pension Liability ........................................................................................................................... 108 C. Changes in the Net Pension Liability ................................................................................................... 110 D. Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................ 112 Note 14 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 114 A. General Information about the OPEB Plan .......................................................................................... 114 B. Net OPEB Liability .............................................................................................................................. 116 C. Changes in the Net OPEB Liability ..................................................................................................... 117 Note 15 – Classification of Fund Balances ........................................................................................................... 119 Note 16 – Net Investment in Capital Assets ......................................................................................................... 120 Note 17 – Commitments and Contingencies ........................................................................................................ 120 Note 18 – Tax Abatement ...................................................................................................................................... 121 City of Corona
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
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 sewer 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, 2023
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 sewer 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, 2023
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, 2023
66 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
 The Other Grants Capital Projects Funds account for receipts and expenditures of funding received from various governmental grants for capital projects.
 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.  The Other Grants and Endowments Special Revenue Funds account for receipts and expenditures of money received from various governmental grants and library grants.

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, Sewer, 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.
 Sewer Enterprise Fund - accounts for the operation and maintenance of the City's sewer utility, a selfsupporting 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 selfsupporting activity which renders services on a user charge basis to businesses as well as residents located in the City.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Both the Water and the Sewer utilities are owned by the Authority. The Authority operates both the Water and Sewer systems pursuant to separate management agreements with the City.

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. At June 30, 2023, the AB109 PACT Fund was fully disbursed and closed.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 1 – Summary of Significant Accounting Policies (Continued) 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.

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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 1 – Summary of Significant Accounting Policies (Continued) 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.

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 Receivables
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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 1 – Summary of Significant Accounting Policies (Continued) H. Lease Receivables (Continued)
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 and intangible right-to-use assets.

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.

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 finance purchase are capitalized at the net present value of the total finance 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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 1 – Summary of Significant Accounting Policies (Continued) I. Capital Assets (Continued)
The intangible right‐to‐use asset includes lease assets or subscription-based information technology arrangements (“SBITA”) assets (“subscription asset”). These intangible assets are recorded at the amount of the initial measurement of the lease liabilities or SBITA liabilities (“subscription liabilities”) and adjusted by any lease made to the lessor or subscription payments to the SBITA vendor at or before the commencement of the lease or subscription term, less any incentives received from the lessor or SBITA vendor at or before the commencement of the lease or subscription term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service or subscription implementation costs. 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. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying IT assets.

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
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 assets that applies to future periods.

Deferred Inflows of Resources represent an acquisition of net assets that applies 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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 Note 1 – Summary of Significant Accounting Policies (Continued) 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”).

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 City 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 liabilities 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 City 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 or liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

O. Subscription Based Information Technology Arrangements Liabilities The City recognizes subscription liabilities with an initial, individual value of $100,000 or more with a subscription term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats are not included in the measurement of the subscription liability.

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

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 Note 1 – Summary of Significant Accounting Policies (Continued) O. Subscription Based Information Technology Arrangements Liabilities (Continued) Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

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

P. 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 GovernmentWide Statement of Net Position.

Q. 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, 2023
74 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Pensions (Continued)
The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.

R. 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:

OPEB
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 1 – Summary of Significant Accounting Policies (Continued) S. 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:

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".

T. 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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 Note 1 – Summary of Significant Accounting Policies (Continued) T. Net Position and Fund Balances (Continued)
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.
 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 Finance 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.

U. 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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 Note 1 – Summary of Significant Accounting Policies (Continued) U. Spending Policy (Continued)
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
V. 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.

W. Implementation of New GASB Pronouncement
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. Under this Statement, a government is required to recognize a subscription liability and an intangible right-to-use subscription asset. The effective date of GASB Statement No. 96 is for fiscal years beginning after June 15, 2022. Implementation of this Statement resulted in restatement of beginning balance of capital assets (Note 9) from $805,581,115 to $806,998,147 and long-term debt liabilities (Note 11) from $285,526,544 to $286,943,576 at July 1, 2022 to report subscription assets and subscription liabilities in the amount of $1,417,032.

Note 2 – Stewardship, Compliance and Accountability
Deficit Net Position
At June 30, 2023, Other Grants and Endowments Special Revenue Funds and Public Facility Project Capital Projects Funds had deficit fund balances of $939,763 and $3,640,583, respectively. 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 $25,085,195 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, 2023
78 Note 3 – Cash and Investments (Continued)
The City had the following cash and investments at June 30, 2023:

Fiduciary
Fund
Governmental Business-Type Statement of
Activities Activities Net Position Total
Cash and investments 335,049,591 $ 147,273,417 $ 5,111,638 $ 487,434,646 $ Restricted cash and investments 43,937,402 579,228 35,006,858 79,523,488 Total cash and investments $ 147,852,645 378,986,993 $ 40,118,496 $ 566,958,134 $ Government-Wide
Statement of Net Position
The City’s cash and investments at June 30, 2023, in more detail:

Deposits with financial institution 1,303,182 $
Petty cash 10,248
Custodial cash 413,535
Total cash 1,726,965
Investments 530,192,628
Investments with fiscal agent 35,038,541
Total investments 565,231,169
Total cash and investments $ 566,958,134
A. Deposits
The carrying amounts of the City’s demand deposits were $1,303,182 at June 30, 2023. Bank balances at that date were $5,071,104, 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 fair 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, 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, 2023
79 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, 2023, 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, 2023, the City had $46,247,015 invested in LAIF, which had invested 2.78% 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, 2023
80 Note 3 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2023, 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, 2023:

Quoted Prices in
Active Market for
Significant
Other
Investment Type
Identical Assets
(Level 1)
Observable
Inputs (Level 2) Uncategorized Total
Local Agency Investment Fund - $ - $ 46,247,015 $ 46,247,015 $ Money Market Funds - - 900,417 900,417
United States Government Sponsored Enterprise Securities - 87,044,690 - 87,044,690 US Treasury Bills - 228,916,682 - 228,916,682
Asset Backed Securities - 28,333,223 - 28,333,223
Corporate Notes - 89,103,360 - 89,103,360
Municipal Bonds - 3,255,520 - 3,255,520
Supernational Obligations - 11,482,621 - 11,482,621
Mutual Funds Held in Penstion Trust 34,909,100 - - 34,909,100 Held by Bond Trustee:

Local Agency Investment Fund - - 2,290,896 2,290,896
Money Market Funds - - 32,747,645 32,747,645
Total $ 219,219,414 263,825,782 $ 82,185,973 $ 565,231,169 $ 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, 2023, the City had the following investment maturities:

Investment Type
12 Months or
Less 13-24 Months 25-60 Months Total
Local Agency Investment Fund 46,247,015 $ - $ - $ 46,247,015 $ Money Market Funds 900,417 - - 900,417
United States Government Sponsored Enterprise Securities 6,258,897 32,041,961 48,743,832 87,044,690 US Treasury bills 130,114,549 26,603,692 72,198,441 228,916,682 Asset Backed Securities 573,029 11,395,238 16,364,956 28,333,223 Corporate Notes - 34,273,922 54,829,438 89,103,360
Municipal Bonds - 3,255,520 3,255,520
Supernational Obligations - - 11,482,621 11,482,621
Mutual Funds Held in Penstion Trust 34,909,100 - - 34,909,100 Held by Bond Trustee:

Local Agency Investment Fund 2,290,896 - - 2,290,896
Money Market Funds 32,747,645 - - 32,747,645
Total $ 107,570,333 254,041,548 $ 203,619,288 $ 565,231,169 $ Remaining Maturity (In Months)
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 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, 2023 for each investment type:

Fair Value Minimum Not Required
at Legal to be
Investment Type June 30, 2023 Rating AAA AA A Rated
Local Agency Investment Fund 46,247,015 $ Not Rated - $ - $ - $ 46,247,015 $ Money Market Funds 900,417 N/A - - - 900,417
United States Government Sponsored
Enterprise Securities 87,044,690 N/A 87,044,690 - - -
US Treasury bills 228,916,682 N/A 228,916,682 - - -
Asset Backed Securities 28,333,223 AA - - 28,333,223
Corporate Notes 89,103,360 A 9,084,579 15,428,812 61,983,800 2,606,169 Municipal Bonds 3,255,520 A - 3,255,520 - -
Supernational Obligations 11,482,621 AA 11,482,621 - - - Held in Penstion Trust:

Mutual Funds 34,909,100 N/A - - - 34,909,100
Held by Bond Trustee:

Local Agency Investment Fund 2,290,896 N/A - - - 2,290,896 Money Market Funds 32,747,645 N/A - - - 32,747,645
Total $ 336,528,572 565,231,169 $ 18,684,332 $ 61,983,800 $ 148,034,465 $ N/A - Not Required
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.

At June 30, 2023, 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 Mortgage Corporation US Government Sponsored Enterprise Securities 40,970,574 $ 8% Federal National Mortgage Association US Government Sponsored Enterprise Securities 29,335,377 6% City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 Note 3 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Custodial Credit Risk
The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of 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, 2023, 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
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 4 – Investment in Joint Venture (Continued)
The City’s investment in WRCRWA for the fiscal year ended June 30, 2023 was $16,499,348.

Unaudited financial information of the Authority for the fiscal year ended June 30, 2023, was summarized as follows:

Total assets 122,390,805 $
Total liabilities (60,001,371)
Deferred Inflow of resources (949,111)
Total net position (deficit) $ 61,440,323
Operating revenues 10,187,097 $
Operating expenses (10,562,361)
Operating revenue before depreciation (375,264)
Depreciation (3,954,953)
Operating loss (4,330,217)
Nonoperating revenue 12,946,740
Change in net position 8,616,523
Beginning net position 52,823,800
Ending net position 61,440,323 $
Western Riverside County Regional Wastewater Authority Net Position:

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, 2023 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, 2023, the balances of the long-term receivables were as follows:

Long-Term Loans
Governmental Funds Receivable Receivable Total
General Fund 1,141,327 $ - $ 1,141,327 $
Low Mod Income Housing Assets Capital Projects Fund 8,268,191 6,969,965 15,238,156 Other Grants Capital Projects Fund - 2,300,000 2,300,000 Development Special Revenue Funds 1,189,660 303,758 1,493,418 Nonmajor Governmental Funds 1,717,405 2,252,632 3,970,037 Total 12,316,583 $ 11,826,355 $ 24,142,938 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 Note 6 – Long-Term Receivables (Continued)
General Fund
 Reimbursement receivables from developers for the Temescal Canyon Communications Tower totaling $197,553.
 Reimbursement receivables from developers for South Corona area Community Facilities Plan totaling $168,774.
 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 $8,268,191.  Loans receivables from developers and homeowners for home improvement loan and first-time home buyer programs totaling $6,969,965.

Other Grants Capital Projects Funds
 Loans receivable from developers for building affordable housing totaling $2,300,000.

Development Special Revenue Funds
 Long-term receivables for deferred fees from developers totaling $1,189,660.  Loans receivable from the developers totaling $303,758.

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 $2,252,632 for residential rehabilitation, home improvement, and first-time home buyer programs.

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, 2023, the City recognized $821,261 and $418,958 in lease revenue and $347,432 and $130,511 in interest revenue for General Fund and Water Enterprise Fund, respectively. The outstanding receivables are in the amounts of $12,239,490 and $4,255,671 for General Fund and Water Enterprise Fund, respectively.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 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 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 473,723 320,299 794,022 334,423 93,454 427,877
2028 543,226 305,629 848,855 312,369 84,098 396,467
2029-2033 3,209,615 1,270,926 4,480,541 1,104,141 302,631 1,406,772 2034-2038 3,316,402 758,590 4,074,992 874,835 170,465 1,045,300 2039-2043 2,509,505 323,477 2,832,982 480,452 70,326 550,778 2044-2047 846,339 46,284 892,623 198,175 8,661 206,836
Total 12,239,490 $ 4,068,557 $ 16,308,047 $ 4,255,671 $ 1,066,497 $ 5,322,168 $ Governmental Activities Business-type Activities
Note 8 – Interfund Transactions
A. Government-Wide Financial Statements
Internal Balances - At June 30, 2023, 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
$ 168,939,598
Included in the internal balances are net advances to nonmajor governmental funds from Electric Enterprise Funds in the amount of $1,333,102, net of internal services fund activities related to business-type activities in the amount of $1,536,147, 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 Sewer 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 Sewer facilities. The finance purchased assets of the Water and Sewer 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, 2023
86 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 Sewer 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 Sewer 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 Sewer utilities were calculated with a discount rate of 5.0% and 4.4%, respectively. For fiscal year ended June 30, 2023, the payments for Water and Sewer 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, 2023:

Advances from Other Fund
Water Utility Enterprise Fund
Sewer Utilities
Enterprise Fund
Total
Advances to Other Funds
Governmental Activities
$ 106,819,662
65,808,682
$ 172,628,344
During the year ended June 30, 2023, the following interfund transactions were paid by the CUA to the City:

Advances from Other Fund Interest
Water Utility Enterprise Fund 2,430,513 $
Sewer Utilities
Enterprise Fund 1,637,405
Total 4,067,918 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 Note 8 – Interfund Transactions (Continued)
A. Government-Wide Financial Statements (Continued)
At June 30, 2023, the future debt service payments required under the Agreement for the Water Utility are presented below:

Year Ending June 30, Principal Interest
2024 - $ 2,296,287 $
2025 - 2,168,773
2026 - 2,047,634
2027 - 1,932,553
2028 - 1,823,225
2029-2033 - 7,658,251
2034-2038 - 5,628,509
2039-2043 - 4,085,673
2044-2048 - 2,866,380
2049-2053 - 1,474,496
2054-2056 106,819,662 278,826
Total Future Repayments 106,819,662 $ 32,260,607 $
At June 30, 2023, the future debt service payments required under the Agreement for the Sewer utility advances are presented below:

Year Ending June 30, Principal Interest
2024 - 1,548,785 $
2025 - 1,464,595
2026 - 1,384,616
2027 - 1,308,635
2028 - 1,236,453
2029-2033 - 5,219,727
2034-2038 - 3,886,229
2039-2043 - 2,854,392
2044-2048 - 2,055,976
2049-2053 - 1,566,908
2054-2056 65,808,682 850,676
Total Future Payments 65,808,682 $ 23,376,992 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 8 – Interfund Transactions (Continued)
B. Fund Financial Statements
Due From/To Other Funds - At June 30, 2023, the City had the following due from/to other funds:

Due From Other Funds
Governmental Fund:

General Fund
Governmental Funds
Nonmajor Governmental Funds
$ 5,754,722
Due To Other Funds
The above amounts resulted from temporary reclassifications made at June 30, 2023 to cover cash shortfalls.

Advances To/From Other Funds – At June 30, 2023, the City had the following advances:

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

Development Special Revenue Fund 7,083,245 $ - $ - $ 7,083,245 $ Nonmajor Governmental Funds - - 1,333,102 1,333,102
Proprietary Fund:

Water Enterprise Fund 106,819,662 3,614,688 - 110,434,350 Sewer Enterprise Fund 65,808,682 - - 65,808,682
Total 179,711,589 $ 3,614,688 $ 1,333,102 $ 184,659,379 $ 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, 2023, the outstanding balance of the interfund loan was $7,083,245. Also see advances to Water and Sewer Enterprise Funds at page 85 to 87.

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, utilizing available revenue. At June 30, 2023, the outstanding balance was in the amount of $1,333,102.

During the years ended June 30, 2018 and 2019, Sewer 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, 2023 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, 2023, the outstanding balance was in the amount of $3,614,688.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 Note 8 – Interfund Transactions (Continued)
B. Fund Financial Statements (Continued)
Transfers In/Out – During the year ended June 30, 2023, the City had the following transfers in/out:

Nonmajor
Governmental
Transfers In General Fund Funds Total
Governmental Fund:

General Fund - $ 1,108,821 $ 1,108,821 $
Nonmajor Governmental Funds 427,304 - 427,304
Total 427,304 $ 1,108,821 $ 1,536,125 $
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 $1,108,821 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, 2023
90 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, 2023 is as follows:

Balance
July 1, 2022 Balance
(As Restated) Transfers Additions Deletions June 30, 2023 Capital assets, not being depreciated:

Land 85,560,234 $ - $ - $ - $ 85,560,234 $
Streets 223,735,667 - 333,286 - 224,068,953
Construction in progress 166,216,758 (2,039,553) 31,765,068 - 195,942,273 Total capital assets, not being depreciated (2,039,553) 475,512,659 32,098,354 - 505,571,460 Capital assets, being depreciated:

Buildings and improvements 239,833,012 724,931 - - 240,557,943 Machinery and equipment 45,095,119 1,286,287 511,775 (941,412) 45,951,769 Computer software 959,782 - - - 959,782
Infrastructure 361,119,180 28,335 8,994,812 - 370,142,327 Total capital assets, being depreciated 2,039,553 647,007,093 9,506,587 (941,412) 657,611,821 Less accumulated depreciation for:

Buildings and improvements (134,407,109) (1,167) (5,084,875) - (139,493,151) Machinery and equipment (29,774,437) 1,167 (2,767,820) 914,965 (31,626,125) Computer software (949,837) - (4,973) - (954,810)
Infrastructure (152,978,538) - (6,163,924) - (159,142,462) Total accumulated depreciation - (318,109,921) (14,021,592) 914,965 (331,216,548) Total capital assets, being depreciated, net 2,039,553 328,897,172 (4,515,005) (26,447) 326,395,273 Intangigle assets, being amortized:

Right-to-use lease vehicles 1,764,228 - 98,985 - 1,863,213 Right-to-use subscription assets 1,417,032 - 4,673,384 - 6,090,416 Total Intangigle assets, being amortized - 3,181,260 4,772,369 - 7,953,629 Less accumulated amortization for:

Right-to-use lease vehicles (592,944) - (258,523) - (851,467) Right-to-use subscription assets - - (1,937,743) - (1,937,743) Total accumulated amortization - (592,944) (2,196,266) - (2,789,210) Total intangible assets, being amortized, net - 2,588,316 2,576,103 - 5,164,419 Governmental activities capital assets, net $ - 806,998,147 $ 30,159,452 $ (26,447) $ 837,131,152 $ Depreciation and amortization expense was charged to functions of the governmental activities for the year ended June 30, 2023 as follows:

General government 2,859,875 $
Public safety - fire 719,721
Public safety - police 598,071
Public works 1,208,220
Maintenance service 6,759,077
Community services 1,066,944
Internal service 3,005,950
Total depreciation expense - governmental activities $ 16,217,858 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 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, 2023 is as follows:

Balance Balance
July 1, 2022 Transfers Additions Deletions June 30, 2023 Capital assets, not being depreciated:

Land 5,716,878 $ - $ - $ - $ 5,716,878 $
Water and pumping rights 19,644,651 - - - 19,644,651
Construction in progress 25,975,729 (18,718,059) 12,609,054 - 19,866,724 Total capital assets, not being depreciated (18,718,059) 51,337,258 12,609,054 - 45,228,253 Capital assets, being depreciated:

Buildings and improvements 106,583,465 - - - 106,583,465 Machinery and equipment 127,333,925 15,831,308 631,767 (3,737,459) 140,059,541 Computer software 1,770,193 - - - 1,770,193
Infrastructure 402,407,976 2,886,751 4,038,473 - 409,333,200 Total capital assets, being depreciated 18,718,059 638,095,559 4,670,240 (3,737,459) 657,746,399 Less accumulated depreciation for:

Buildings and improvements (54,170,720) - (2,296,338) - (56,467,058) Machinery and equipment (84,014,181) - (6,102,439) 3,706,896 (86,409,724) Computer software (1,670,995) - (44,800) - (1,715,795)
Infrastructure (127,487,404) - (7,367,587) - (134,854,991) Total accumulated depreciation - (267,343,300) (15,811,164) 3,706,896 (279,447,568) Total capital assets, being depreciated, net 18,718,059 370,752,259 (11,140,924) (30,563) 378,298,831 Intangigle assets, being amortized:

Right-to-use lease assets 217,306 - - - 217,306
Accumulated amortization (57,035) - (16,214) - (73,249) Total lease assets, being amortized, net - 160,271 (16,214) - 144,057 Business-type activities capital assets, net $ - 422,249,788 $ 1,451,916 $ (30,563) $ 423,671,141 $ Depreciation and amortization expense was charged to functions of the business-type activities for the year ended June 30, 2023 as follows:

Water 9,533,321 $
Sewer 5,215,826
Electric 410,579
Transit Service 653,355
Airport 14,297
Total depreciation expense - business-type activities $ 15,827,378 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 Note 9 – Capital Assets (Continued)
C. Infrastructure Assets
Below is a summary of infrastructure assets of the City as of June 30, 2023:

Accumulated
Description Historical Cost Depreciation Net Cost
Governmental activities:

Modified approach
Street pavement system 224,068,953 $ - $ 224,068,953 $
Basic approach
Curbing 83,519,960 (43,821,897) 39,698,063
Sidewalks 106,144,901 (47,735,766) 58,409,135
Signs and lights 49,021,069 (18,607,275) 30,413,794
Storm drains 124,334,043 (45,762,095) 78,571,948
Fiberoptics 5,899,801 (3,116,968) 2,782,833
Electric 1,206,137 (96,491) 1,109,646
Sewer 16,416 (1,970) 14,446
Subtotal basic approach 370,142,327 (159,142,462) 210,999,865 Total governmental activities $ (159,142,462) 594,211,280 $ 435,068,818 $ Business-type activities:

Basic approach
Fiberoptics 235,951 $ (206,508) $ 29,443 $
Curbing 200 (34) 166
Sidewalks 283,179 (17,548) 265,631
Electric 7,030,599 (2,009,513) 5,021,086
Signs and lights 361,508 (78,293) 283,215
Storm drains 191,468 (16,809) 174,659
Water 278,556,013 (95,409,642) 183,146,371
Sewer 122,674,282 (37,116,644) 85,557,638
Total business-type activities $ (134,854,991) 409,333,200 $ 274,478,209 $ D. Construction in Progress and Capital Project Commitments The City has active construction projects as of June 30, 2023. These projects include street construction in areas of newly developed housing, pavement rehabilitation, and various water and sewer upgrades and replacements. At year end, the City's construction in progress totaled $215,808,997.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 Note 9 – Capital Assets (Continued)
D. Construction in Progress and Capital Project Commitments (Continued) The following material construction commitments existed at June 30, 2023:

Expenditures
Contract to date as of Remaining
Project Name Amount June 30, 2023 Commitments
Governmental activities:

McKinley Street Grade Separation $67,650,254 $ 19,370,296 48,279,958 $ Fire Station Rebuild & Alerting Systems 1,430,861 537,193 893,668 Green Alleys Transportation 1,010,918 325,805 685,113
Ontario Ave Widening 1,162,159 136,114 1,026,045
Business-type activities:

WRCRWA Reclaimed Waterline 5,779,528 798,753 4,980,775
WRF#3 Lift Station 2,473,152 781,775 1,691,377
Wardlow RD Sewer Relocation 2,617,085 449,199 2,167,886 Equalization Basin Replacement 1,123,523 19,733 1,103,790 Total material construction commitments $ 22,418,868 83,247,480 $ 60,828,612 $ 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 2023:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental activities:

Compensated absences 10,883,840 $ 9,372,609 $ (8,433,705) $ 11,822,744 $ 8,425,734 $ 3,397,010 $ Business-type activities
Compensated absences 1,349,855 $ 1,195,017 $ (1,232,644) $ 1,312,228 $ 1,236,612 $ 75,616 $ 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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 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, 2023 is as follows:

Balance
July 1, 2022 Balance Due within Due in More
(As Restated) Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities:

Public Offering:
2016 Lease Revenue Refunding Bonds 18,205,000 $ - $ (1,415,000) $ 16,790,000 $ 1,475,000 $ 15,315,000 $ Unamortized bond premium 2,082,196 - (148,728) 1,933,468 - 1,933,468 2021 Pension Obligation Bond 221,944,531 - (14,049,750) 207,894,781 15,247,466 192,647,315 Total Public Offering 242,231,727 - (15,613,478) 226,618,249 16,722,466 209,895,783 Direct Borrowing:
2012 Refunding Lease 9,754,589 - (1,823,488) 7,931,101 1,885,087 6,046,014 Lease liabilities 545,017 68,984 (227,949) 386,052 146,849 239,203 Subscription liabilities 1,417,032 4,673,384 (2,436,414) 3,654,002 2,216,389 1,437,613 Compensated absences 10,883,840 9,372,609 (8,433,705) 11,822,744 8,425,734 3,397,010 Claims and judgments 22,111,371 3,107,075 (2,766,274) 22,452,172 3,549,604 18,902,568 Total governmental activities $ 17,222,052 286,943,576 $ (31,301,308) $ 272,864,320 $ 32,946,129 $ 239,918,191 $ 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.

The future annual debt service requirements for the 2016 Lease Revenue Refunding Bonds are listed below:

Year Ending
June 30, Principal Interest Total
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 925,000 418,525 1,343,525
2029-2033 5,355,000 1,344,575 6,699,575
2034-2037 5,035,000 307,575 5,342,575
Total 16,790,000 $ 4,271,575 $ 21,061,575 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
95 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
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
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 18,393,273 3,297,938 3,115,742 565,295
2029-2033 101,250,759 10,436,611 17,091,410 1,818,807
2034 21,859,201 590,636 3,968,177 107,220
Total 207,894,781 $ 29,892,472 $ 35,217,570 $ 5,147,866 $ Governmental Activities Business-type Activities
Year Ending
June 30, Principal Interest Principal Interest Total
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 5,985 1,086 21,515,000 3,864,319 25,379,319
2029-2033 32,831 3,494 118,375,000 12,258,912 130,633,912 2034 7,622 206 25,835,000 698,062 26,533,062
Total $ 9,889 67,649 $ 243,180,000 $ 35,050,227 $ 278,230,227 $ Fiduciary Activities Total
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
96 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2012 Refunding Lease Financing Agreement
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, 2023, the future annual debt service requirements for the 2012 Refunding Lease Financing Agreement are as follows:

Year Ending
June 30, Principal Interest Total
2024 1,885,087 $ 250,035 $ 2,135,122 $
2025 1,948,766 186,356 2,135,122
2026 2,014,597 120,525 2,135,122
2027 2,082,651 52,471 2,135,122
Total 7,931,101 $ 609,387 $ 8,540,488 $
Lease Liabilities
The City has entered into leases for vehicle uses. The terms of the agreements are 60 months with a implicit rate of 3.96%. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2024 146,849 $ 16,268 $ 163,117 $
2025 122,987 11,084 134,071
2026 81,266 4,848 86,114
2027 29,209 1,235 30,444
2028 5,741 97 5,838
$ 33,532 386,052 $ 419,584 $
Subscription Liabilities
The City has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 24 to 78 months with a implicit rate of 3.00%. Principal and interest to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2024 2,216,389 $ 109,309 $ 2,325,698 $
2025 1,437,613 43,248 1,480,861
$ 152,557 3,654,002 $ 3,806,559 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
97 Note 11 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Compensated Absences
The balance at June 30, 2023, was $11,822,744. See Note 10 for more detailed information.

Claims and Judgments
The balance at June 30, 2023, was $22,452,172. 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, 2023:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Business-Type activities
Public Offering:
2012 Water Revenue Bonds 23,265,000 $ - $ (23,265,000) $ - $ - $ - $ 2023 Water Revenue Refunding Bonds 20,085,000 - - 20,085,000 1,820,000 18,265,000 2013 Wastewater Revenue Bonds 8,215,000 - (665,000) 7,550,000 690,000 6,860,000 Total Revenue Bonds 31,480,000 20,085,000 (23,930,000) 27,635,000 2,510,000 25,125,000 Bond Premium - Water 974,325 2,130,491 (993,519) 2,111,297 - 2,111,297 Bond Premium - Wastewater 189,303 - (18,930) 170,373 - 170,373 Total Premium 1,163,628 2,130,491 (1,012,449) 2,281,670 - 2,281,670 2021 Pension Obligation Bond 37,538,362 - (2,320,792) 35,217,570 2,532,669 32,684,901 Total Public Offering 70,181,990 22,215,491 (27,263,241) 65,134,240 5,042,669 60,091,571 Direct Borrowing:

Brine Line Installment Agreement 6,304,926 - (410,852) 5,894,074 423,178 5,470,896 WMWD Contract Payable 690,390 - (690,390) - - -
State Loan C-06-4802-110 7,317,022 - (1,762,070) 5,554,952 1,806,121 3,748,831 State Loan C-06-7834-110 9,830,271 - (303,006) 9,527,265 309,369 9,217,896 Total Direct Borrowing 24,142,609 - (3,166,318) 20,976,291 2,538,668 18,437,623 Lease Payable 3,317 - (2,952) 365 365 -
Compensated absences 1,349,855 1,195,017 (1,232,644) 1,312,228 1,236,612 75,616 Total business-Type activities $ 23,410,508 95,677,771 $ (31,665,155) $ 87,423,124 $ 8,818,314 $ 78,604,810 $ 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 2012 Water Revenue Bonds were current refunded during the year ended June 30, 2023. See below.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
98 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2023 Corona Utility Authority Water Revenue Bonds
On June 8, 2023, the Corona Utility Authority issued the 2023 Water Revenue Refunding Bonds in the amount of $20,085,000 (plus a net original issue premium of $2.1 million) with interest rate at 5.0% to current refund 2012 Corona Utility Authority Water Revenue Bonds. The CUA 2023 Water Revenue Refunding Bonds possessed an underlying credit rating of "AA" from Standard & Poor's.

The 2012 Corona Utility Authority Water Revenue Bonds were fully redeemed on June 22, 2023. The refunding resulted in $2,005,340 saving in future debt service payment and an economic gain of $1,773,897.

The outstanding bonds bear interest rate at 5.0% and are due in annual installments ranging from $1,820,000 to $2,450,000 through 2032. The bonds are considered a liability of the Water Utility fund. The future annual debt service requirements for the 2023 CUA Water Revenue Refunding Bonds are presented below:

Year Ending
June 30, Principal Interest Total
2024 1,820,000 $ 688,160 $ 2,508,160 $
2025 1,660,000 871,750 2,531,750
2026 1,735,000 786,875 2,521,875
2027 1,820,000 698,000 2,518,000
2028 1,915,000 604,625 2,519,625
2029-2033 11,135,000 1,446,375 12,581,375
Total 20,085,000 $ 5,095,785 $ 25,180,785 $
2021 Taxable Pension Obligation Bonds
See Note 11A for more detail.
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 Sewer 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 Sewer 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 Sewer Utility fund. The future annual debt service requirements for the 2013 CUA Wastewater Revenue Bonds are presented below:

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
99 Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2013 Corona Utility Authority Wastewater Revenue Bonds (Continued) Year Ending
June 30, Principal Interest Total
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 840,000 174,950 1,014,950
2029-2032 3,735,000 310,675 4,045,675
Total 7,550,000 $ 1,559,250 $ 9,109,250 $
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, 2023, outstanding balance on the debt was $5,894,074. The future annual debt service requirements per the agreement are presented below:

Year Ending
June 30, Principal Interest Total
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 476,291 123,709 600,000
2029-2033 2,604,551 395,449 3,000,000
2034-2035 1,042,814 45,507 1,088,321
Total 5,894,074 $ 1,194,247 $ 7,088,321 $
Western Municipal Water District Contracts Payable
Contracts payable arise from the acquisition of certain water and sewer facilities and represent amounts due to Western Municipal Water District payable from future water and sewer 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. In fiscal year 2023, the City and the Western Municipal Water District agreed that the facilities built in the 1980s have reached or approaching the end of the useful life, no connection fees will be collected in future years. The City has been building its own facilities and pipelines for new developments in the area. The outstanding balance was written off.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
100
Note 11 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
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, 2023 was $5,554,952. Annual future debt service requirements for the loan are presented below:

Year Ending
June 30, Principal Interest Total
2024 1,806,121 $ 138,874 $ 1,944,995 $
2025 1,851,275 93,720 1,944,995
2026 1,897,556 47,439 1,944,995
Total 5,554,952 $ 280,033 $ 5,834,985 $
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, 2023 is $9,527,265. Annual future debt service requirements for the loan are presented below:

Year Ending
June 30, Principal Interest Total
2024 309,369 $ 200,072 $ 509,441 $
2025 315,865 193,576 509,441
2026 322,498 186,943 509,441
2027 329,271 180,170 509,441
2028 336,186 173,255 509,441
2029-2033 1,789,839 757,367 2,547,206
2034-2038 1,985,833 561,373 2,547,206
2039-2043 2,203,289 343,917 2,547,206
2044-2047 1,935,115 102,649 2,037,764
Total 9,527,265 $ 2,699,322 $ 12,226,587 $
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. Remaining principal outstanding at June 30, 2023 was in the amount of $365.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
101
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 $42,717,217 in outstanding debts as of June 30, 2023. 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 required less than 21.47% of net revenues subject to the pledge. The total remaining debt service including interest to be paid on these obligations are $52,351,607. Principal and interest paid for the current year was $6,198,961, and total customer net revenue subject to pledge was $28,871,111.

Compensated Absences
The balance at June 30, 2023, was $1,312,228. 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 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Fiduciary Activities:

Public Offering
2021 Pension Obligation Bond 72,107 $ (4,458) $ 67,649 $ 4,865 $ 62,784 $ 2007 Temescal Canyon Project Area
Tax Allocation 11,910,000 - (890,000) 11,020,000 900,000 10,120,000 2007 Project Area "A" Taxable Tax
Allocation Bonds 21,340,000 - (730,000) 20,610,000 785,000 19,825,000 2015 Tax allocation refunding bonds,
Series "A" 4,775,000 - (2,330,000) 2,445,000 2,445,000 - Unamortized Bond Premium 482,295 - (241,148) 241,147 - 241,147 Total fiduciary activities $ - 38,579,402 $ (4,195,606) $ 34,383,796 $ 4,134,865 $ 30,248,931 $ The Successor Agency's outstanding bonds from public offerings was in the amount of $34,075,000 at June 30, 2023. The bond contains a provision that if any event of default should occur, the trustee shall declare the principal of all of the bonds then outstanding, and the interest accrued thereon, to be due and payable immediately, at the written direction of the majority Bond Owners and upon receipt of the prior written consent of the Bond Insurer.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
102
Note 11 – Long-Term Liabilities (Continued)
C. Fiduciary Funds (Continued)
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
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 1,070,000 299,025 1,369,025
2029-2033 6,110,000 712,350 6,822,350
Total 11,020,000 $ 2,650,471 $ 13,670,471 $
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
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 20,610,000 $ 4,039,145 $ 24,649,145 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
103
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 requirement for the 2015 Tax Allocation Refunding Bonds Series A is presented below:

Year Ending
June 30, Principal Interest Total
2024 2,445,000 $ 61,125 $ 2,506,125 $
2021 Taxable Pension Obligation Bonds
See Note 11A 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 $40,825,741 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 $7,204,595.

D. Non-City Obligations
Special Assessment District Bonds (Non-City Obligation) The payment of this 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, 2023
104
Note 11 – Long-Term Liabilities (Continued)
D. Non-City Obligation (Continued)
As of June 30, 2023, the special assessment district bonds' balances outstanding were:

Balance at
June 30, 2023
Assessment District:

AD 96-1, Series 1999 A 295,000 $
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, 2023
Community Facilities Districts
$ CFD 97-2, Refunding 2014 Series A Bonds 1,195,000 9,525,000 $ CFD 2002-1 Dos Lagos 2017 Special Tax Refunding 10,205,000 13,455,000 CFD 2002-1 Dos Lagos 2017 IA Special Tax Refunding 5,645,000 7,125,000 CFD 2002-4 2017 Special Tax Refunding Bond 5,235,000 7,010,000 CFD 2016-2 2018 Special Tax Bonds 5,020,000 5,475,000
CFD 2018-1 Bedford IA1, 2018 Special Tax Bonds 8,860,000 9,000,000 CFD 2017-2 Valencia/Seville 2018 Special Tax Bonds 3,440,000 3,650,000 CFD 2000-1, 2020 Special Tax Refunding Bond 3,100,000 4,175,000 CFD 2001-2, 2020 Special Tax Refunding Bond 1,640,000 2,150,000 CFD 2003-2, 2020 Special Tax Refunding Bond 4,145,000 5,200,000 CFD 2004-1, 2020 Special Tax Refunding Bond 2,075,000 2,505,000 CFD 2018-1 Bedford IA1, 2020 Special Tax Bonds 10,205,000 10,240,000 CFD 2018-2, Sierra Bella 2022 Special Tax Bonds 15,190,000 15,190,000 Total Community Facilities Districts $ 75,955,000
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
105
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, 2023, the aggregate principal amount of conduit debt obligations outstanding totaled $52,120.

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, 2023, 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, 2023 has been included in the Claims Payable amount for the same reporting period. As of June 30, 2023, 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, 2023, 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, 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 June 30, 2023 20,724,561 2,351,354 (2,332,387) 20,743,528 City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
106
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, 2023 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, 2023 , 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, 2023, 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, 2021 1,518,492 $ (106,890) $ (122,520) $ 1,289,082 $ June 30, 2022 1,289,082 240,385 (142,657) 1,386,810
June 30, 2023 1,386,810 755,720 (433,886) 1,708,644
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, 2023 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 cost-sharing 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, 2021 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, 2023
107
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% 6.50% 9.00% 13.25% 9.00% 13.75% Employee (FY22-23) 8.00% 6.50% 9.00% 13.25% 9.00% 13.75% Employer (Measurement Period) 11.390% 11.390% 24.240% 24.240% 25.590% 13.980% Employer (FY22-23) 10.880% 10.880% 23.980% 23.980% 25.640% 13.660% 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, 2023
108
Note 13 – Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms:

Miscellaneous Safety - Police Classic PEPRA
Active employees 389 150 68 31
Transferred and terminated employees 658 34 61 9
Retired employees and beneficiaries 788 200 128 -
Total 1,835 384 257 40
Safety - Fire
Plans
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 107.

B. Net Pension Liability
Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2021 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate Table(1)
Post Retirement Benefit Increase
Entry Age Actuarial

6.90%

2.30%
Varies by Entry Age and Service
The lesser of contract COLA or 2.30% until Purchasing
Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
Derived using CalPERS’ Membership Data for all Funds
(1)The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Postretirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
109
Note 13 – Pension Plan (Continued)
B. Net Pension Liability (Continued)
Change of Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Assumed Asset
Asset Class(1) Allocation Real Return1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
1 An expected inflation rate of 2.30% used for this period 2 Figures are based on the 2021 Asset Liability Management study Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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, 2023
110
Note 13 – Pension Plan (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous Plan (a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) 391,954,876 $ 320,671,366 $ 71,283,510 $ Changes Recognized for the Measurement Period:

Service cost 5,382,910 - 5,382,910
Interest on the total pension liability 27,394,212 - 27,394,212 Changes of benefit terms - - -
Changes of assumptions 14,133,399 - 14,133,399
Difference between expected and actual experience (1,445,599) - (1,445,599) Net plan to plan resource movement - - -
Contributions from the employer - 126,740,939 (126,740,939) Contributions from employees - 2,045,631 (2,045,631)
Net investment income - (29,901,304) 29,901,304
Benefit payments, including refunds
of employee contributions (20,633,132) (20,633,132) -
Administrative expense - (199,759) 199,759
Other - - -
Net Changes during July 1, 2021 to June 30, 2022 24,831,790 78,052,375 (53,220,585) Balance at June 30, 2022 (Measurement Date) 416,786,666 $ 398,723,741 $ 18,062,925 $ Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Safety Plan - Police (a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) 299,197,824 $ 239,371,648 $ 59,826,176 $ Changes Recognized for the Measurement Period:

Service cost 6,402,949 - 6,402,949
Interest on the total pension liability 21,506,772 - 21,506,772 Changes of benefit terms - - -
Changes of assumptions 13,243,287 - 13,243,287
Difference between expected and actual experience 3,106,586 - 3,106,586 Net plan to plan resource movement - - -
Contributions from the employer - 103,659,698 (103,659,698) Contributions from employees - 2,027,522 (2,027,522)
Net investment income - (22,945,056) 22,945,056
Benefit payments, including refunds of employee
contributions (14,133,660) (14,133,660) -
Administrative expense - (149,114) 149,114
Other - - -
Net Changes during July 1, 2021 to June 30, 2022 30,125,934 68,459,390 (38,333,456) Balance at June 30, 2022 (Measurement Date) 329,323,758 $ 307,831,038 $ 21,492,720 $ Increase (Decrease)
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
111
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, 2021 (Valuation Date) 196,176,593 $ 163,260,062 $ 32,916,531 $ Balance at June 30, 2022 (Measurement Date) 208,526,637 196,646,281 11,880,356 Net changes during 2021-22 12,350,044 33,386,219 (21,036,175) 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, 2021). 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, 2022). 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, 2022 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2021-22).
(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 fair 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, 2023
112
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, 2021 0.6086%
June 30, 2022 0.1029%
Change - Increase (Decrease) -0.5057%
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 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous Plan 76,312,214 $ 18,062,925 $ (29,445,333) $ Safety Plan - Police 69,874,940 $ 21,492,720 $ (17,753,917) $ Safety Plan - Fire 40,677,559 $ 11,880,356 $ 11,654,851 $ 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, 2023, the City recognized aggregated pension expense in the amount of $59,316,184 ($13,494,623, $14,899,893 and $30,921,668 for the Miscellaneous, Safety Police, and Safety Fire Plans, respectively).

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
113
Note 13 – Pension Plan (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) As of measurement date of June 30, 2022, 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 3,761,585 $ - $ Changes of assumptions 8,480,039 -
Difference between expected and actual experience - (990,531) Net difference between projected and actual earning
on pension plan investments 21,972,256 -
Total 34,213,880 $ (990,531) $
Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 4,928,267 $ - $ Changes of assumptions 10,013,217 -
Difference between expected and actual experience 3,846,726 - Net difference between projected and actual earning
on pension plan investments 17,192,332 -
Total 35,980,542 $ - $
Deferred Outflows Deferred Inflows
of Resources of Resources
Contribution made after measurement period 2,978,758 $ - $ Changes of assumptions 1,197,898 -
Difference between expected and actual experience 491,684 (129,011) Net difference between projected and actual earning
on pension plan investments 1,876,072 -
Adjustment due to differences in proportions 953,390 (44,330,967) Difference between City's contribution and
proportionate share of contribution: 35,048,730 (1,638,921) Total 42,546,532 $ (46,098,899) $
Safety Plan - Police
Safety Plan - Fire
The amounts above are net of outflows and inflows recognized in the 2021-2022 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 2021-22 measurement period is 2.5, 4.1, and 3.7 years, which was obtained by dividing the total service years of 4,623, 1,576 and 574,665 (the sum of remaining service lifetimes of the active employees) by 1,835, 384 and 153,587 (the total number of participants: active, inactive, and retired), respectively.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
114
Note 13 – Pension Plan (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) $3,761,585, $4,928,267, and $2,978,758 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, 2024.

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
2023 9,029,861 $ 8,183,850 $ (2,727,955) $
2024 6,441,668 7,618,434 (2,723,274)
2025 2,849,344 6,328,497 (2,224,324)
2026 11,140,891 8,921,494 1,144,428
2027 - - -
Total 29,461,764 $ 31,052,275 $ (6,531,125) $
Deferred Outflows/(Inflows) of Resources
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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
115
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) A. General Information about the OPEB Plan (Continued)
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, 2022 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
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, 2022, the City's cash contributions were $10,744,736 in total payments, which were recognized as a reduction to the OPEB liability.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
116
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) B. Net OPEB Liability
The OPEB liability was measured as of June 30, 2022, 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, 2022, 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
2022

5.6% in 2023, decrease until reaches 3.9% in 2075 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
Fair value of assets

6.05% as of June 30, 2022 and 6.05% as of June 30, 2020 net of plan investment expense

6.05% as of June 30, 2022 and 6.05% as of June 30, 2020

2.50%
Change in assumptions
In 2022, 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.

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% -1.00% 2.20%
Global Real Estate (REITs)(1) 20.00% 3.00% 3.90%
Treasury Inflation Protected Securities 5.00% -1.80% 1.30% Commodities 3.00% 0.80% 1.20%
100.00%
* Preliminary estimate, pending confirmation by CalPERS City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
117
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) 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, 2021 153,409,280 $ 68,231,791 $ 85,177,489 $ Changes Recognized for the Measurement Period:

Service Cost 1,120,750 - 1,120,750
Interest on the total OPEB liability 9,090,363 - 9,090,363 Expected investment income - 4,193,821 (4,193,821)
Employer contribution - 10,744,736 (10,744,736)
Changes of benefit terms - - -
Administrative expenses - (17,410) 17,410
Benefit payments (8,552,199) (8,552,199) -
Assumption changes - - -
Plan experience - - -
Investment experience - (13,514,577) 13,514,577
Contributions from the employer - - -
Net Changes during July 1, 2021 to June 30, 2022 1,658,914 (7,145,629) 8,804,543 Balance at June 30, 2022 (Measurement Date) 155,068,194 $ 61,086,162 $ 93,982,032 $ 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:

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%)
$ 93,982,032 113,900,039 $ 77,592,988 $
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%
$ 93,982,032 77,210,392 $ 114,282,244 $
Plan's Net OPEB Liability
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
118
Note 14 – Other Postemployment Benefits (“OPEB”) (Continued) C. Changes in Net OPEB Liability (Continued)
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 $4,570,562. At June 30, 2023, 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 9,994,224 $ - $ Changes in assumptions 12,891,349 (673,727)
Difference between expected and actual experience - (13,918,738) Net difference between projected and actual earning on
OPEB plan investments 4,970,541 -
Total 27,856,114 $ (14,592,465) $
The $9,994,224 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the year ending June 30, 2024.

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
2024 (1,427,325) $
2025 (1,171,564)
2026 1,634,013
2027 3,804,630
2028 429,671
Thereafter -
Total 3,269,425 $
City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
119
Note 15 – Classification of Fund Balances
At June 30, 2023, fund balances are classified in the governmental funds as follows:

Low Mod Other
Income Grants Nonmajor Total
General Housing Other and Governmental Governmental
Fund Assets Grants Development Endowments Funds Funds
Fund Balances:

Nonspendable:

Inventories and prepaid
items 490,355 $ - $ - $ - $ - $ - $ 490,355 $
Long-term receivable 1,141,327 - - - - - 1,141,327
Advance to other funds 179,711,589 - - - - - 179,711,589 Total nonspendable - 181,343,271 - - - - 181,343,271
Restricted:

Pension trust 35,429,248 - - - - - 35,429,248
Housing and community
development - 38,393,574 - - - 6,035,165 44,428,739
Capital projects - - 2,856,313 - - - 2,856,313
Development projects - - - 17,719,706 - - 17,719,706
Street maintenance - - - - - 27,004,127 27,004,127
Trip reduction - - - - - 1,727,482 1,727,482
Asset forfeiture - - - - - 176,229 176,229
Special tax districts - - - - - 23,892,609 23,892,609
Residential refuse - - - - - 678,104 678,104
Total restricted 38,393,574 35,429,248 2,856,313 17,719,706 - 59,513,716 153,912,557 Committed:

Emergency contingency * 45,343,853 - - - - - 45,343,853 Designated revenues 7,572,145 - - - - - 7,572,145
Total committed - 52,915,998 - - - - 52,915,998
Assigned:

Budget balancing measures 3,922,049 - - - - - 3,922,049 Continuing appropriations 26,515,663 - - - - - 26,515,663 Measure X reserve 43,340,023 - - - - - 43,340,023
Other purposes 3,186,413 - - - - 880,443 4,066,856
Total assigned - 76,964,148 - - - 880,443 77,844,591
Unassigned - 18,602,355 - - (939,762) (3,640,583) 14,022,010 Total Fund Balance $ 38,393,574 365,255,020 $ 2,856,313 $ 17,719,706 $ (939,762) $ 56,753,576 $ 480,038,427 $ Capital Projects Funds Special Revenue Funds
* See Note 1.T for definition of emergency circumstance and situations.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
120
Note 16 – 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 837,131,152 $ 423,671,141 $
Unspent capital debt proceed - 1,044
Capital related deferred ouflows of resources 388,113 - Retention payable (912,687) (332,715)
Capital related debt (30,694,623) (50,893,326)
Capital related deferred inlows of resources - (838,138) Net investment in capital assets 805,911,955 $ 371,608,006 $ Water
Water
Reclamation Electric Transit Airport
Total capital assets, net 270,805,073 $ 140,710,839 $ 10,345,199 $ 1,790,676 $ 19,354 $ Unspent capital debt proceed 1,001 43 - - -
Retention payable (16,631) (316,084) - - -
Capital related debt (33,645,688) (17,247,638) - - -
Capital related deferred inflows of resources (838,138) - - - - Net investment in capital assets 236,305,617 $ 123,147,160 $ 10,345,199 $ 1,790,676 $ 19,354 $ Enterprise Funds
Note 17 – Commitments and Contingencies
Commitments
Significant encumbrances by major fund and nonmajor funds in the aggregate are as follows:

Amount Purpose
General Fund 1,272,853 $ Homelessness prevention
Other Grants Capital Projects Funds 45,146,305 Capital projects Development Special Revenue Funds 2,000,000 Capital projects Nonamjor Governmental Funds 2,282,672 Capital projects and homelessness prevention Water Enterprise Fund 4,595,370 Water related capital projects Sewer Enterprise Fund 3,691,288 Sewer related capital projects Total encumbrances 58,988,488 $
Contingencies
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, 2023
121
Note 17 – Commitments and Contingencies (Continued)
Contingencies (Continued)
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 at issuance was $74,110,619.

The current participants and their obligated contribution on this loan through June 30, 2023, 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%
As of June 30, 2023, 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 18 – 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, 2023, the City abated taxes totaling $8,239,277. 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 a 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.  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.

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
122
Note 18 – Tax Abatement (Continued)
 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 to 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.

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
123
124
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes 157,844,026 $ 169,617,506 $ 175,478,236 $ 5,860,730 $ Licenses and permits 2,067,250 2,260,850 2,783,393 522,543 Intergovernmental 2,238,690 2,312,731 2,217,199 (95,532) Special assessments 587,581 672,490 669,915 (2,575)
Investment earnings 2,675,853 3,751,510 6,546,859 2,795,349 Fines and penalties 741,800 889,522 1,436,615 547,093
Current services 11,334,877 12,769,074 14,297,476 1,528,402 Payment in lieu of services 6,144,200 6,052,862 6,029,949 (22,913) Other revenues 11,193,910 11,421,443 11,024,950 (396,493) Total revenues 209,747,988 194,828,187 220,484,592 10,736,604 EXPENDITURES:

Current:

General government:

City council 126,802 126,802 104,120 22,682
City attorney 1,875,246 1,857,547 1,787,521 70,026
City manager 7,233,367 9,688,669 6,526,530 3,162,139
City treasurer 14,931 14,931 14,931 -
Human resources 2,677,723 2,723,739 2,232,124 491,615
Finance 4,441,062 4,631,963 3,929,509 702,454
Non departmental 25,383,916 26,296,449 26,296,447 2
Information technology 743,293 743,293 318,995 424,298
Public safety- fire 32,808,292 33,031,413 30,847,526 2,183,887 Public safety- police 49,386,316 50,409,743 48,097,386 2,312,357 Public works and maintenance services 4,936,448 5,459,396 3,975,073 1,484,323 Community services 16,997,896 18,530,749 16,852,617 1,678,132 Planning and development 8,255,661 9,255,363 7,867,814 1,387,549 Economic development 1,345,569 1,504,100 1,158,528 345,572 Capital outlay 4,913,858 26,011,155 5,355,123 20,656,032 Debt service:

Principal retirement 17,446,990 17,775,233 16,754,074 1,021,159 Interest and fiscal charges 3,922,134 3,880,682 4,962,792 (1,082,110) Total expenditures 211,941,227 182,509,504 177,081,110 34,860,117

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (2,193,239) 12,318,683 43,403,482 45,596,721 OTHER FINANCING SOURCES (USES):

Transfers in 1,200,000 1,200,000 1,108,821 (91,179)
Transfers out - - (427,304) (427,304)
Total other financing sources (uses) 1,200,000 1,200,000 681,517 (518,483) NET CHANGE IN FUND BALANCE $ (993,239) 13,518,683 $ 44,084,999 45,078,238 $ FUND BALANCE:

Beginning of year 321,170,021
End of year $ 365,255,020
City of Corona
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2023
125
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 2,790,500 $ 1,247,250 $ 1,116,456 $ (130,794) $ Investment earnings 365,945 460,741 360,701 (100,040)
Payment in lieu of services - - 221,760 221,760
Other revenues - 19,110 19,354 244
Total revenues 1,727,101 3,156,445 1,718,271 (8,830)
EXPENDITURES:

Current:

Public safety- fire 3,301 3,301 3,301 -
Public safety- police 2,585 2,585 2,585 -
Public works and maintenance services 47,820 47,820 47,820 - Community services 10,747 10,747 10,747 -
Capital outlay 2,385,231 22,485,279 1,347,302 21,137,977 Total expenditures 22,549,732 2,449,684 1,411,755 21,137,977 NET CHANGE IN FUND BALANCE $ (20,822,631) 706,761 $ 306,516 21,129,147 $ FUND BALANCE:

Beginning of year 17,413,190
End of year $ 17,719,706
City of Corona
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Development Special Revenue Funds For the Year Ended June 30, 2023
126
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 16,904,803 $ 2,382,427 $ 1,951,957 $ (430,470) $ Investment earnings 225,223 488,307 (453,330) (941,637) Current services 38,000 39,750 55,372 15,622
Other revenue - - 46,656 46,656
Total revenues 2,910,484 17,168,026 1,600,655 (1,309,829) EXPENDITURES:

Current:

Public safety - police 679,930 908,858 614,900 293,958
Community services - 105,715 75,627 30,088
Planning and development 86,451 1,573,067 1,076,791 496,276 Capital outlay - 28,922,376 1,048,064 27,874,312
Total expenditures 31,510,016 766,381 2,815,382 28,694,634

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (28,599,532) 16,401,645 (1,214,727) 27,384,805 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 $ (28,452,031) 16,401,645 $ (1,214,727) 27,237,304 $ FUND BALANCE:

Beginning of year 274,965
End of year $ (939,762)
City of Corona
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Other Grants & Endowments Special Revenue Fund For the Year Ended June 30, 2023
127
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 the 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 2023, the City was in the seventh 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 November 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, 2023
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
128
7 8
General Fund
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The capital outlay budget was decreased by a net total of $0.6 million. There were budgetary reductions for various projects that were completed or no longer needed.

Revenues and transfers in received in Fiscal Year 2023 had a favorable variance of $10.6 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 $1.3 million, Sales tax was higher than estimated by $2.7 million, and Other Taxes were higher than estimated by $1.8 million. All of these areas outperformed the final budget estimates for the fiscal year.

Investment Earnings has a positive variance of $2.8 million, which includes book entries of $2.6 million, for investment gains and losses.

The current services category was also higher than budgeted by $1.5 million. Approximately $0.8 million of the variances is related to building activities such as planning application fees and plan check fees. There is a variance of $0.5 million for activities related to Community Service, including passport revenues, recreation activities, special events, and facility rentals. Additionally, there is a variance of $0.3 million for fire department-related activity, including AMR system enhancement fees and various inspection services.

The expenditures and transfers out in FY 2023 had a favorable variance of $34.4 million. Included in the savings, $20.5 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 $3.0 million will be carried forward in the operating budget, as approved by the City Council. Of the $3.0 million in carryover funds, there is $1.1 million for the homeless program operations and a total of $1.0 million for grants in the Fire Department and Police Department. In addition, purchase orders totaling $3.1 million encumbered in Fiscal Year 2023 will be carried forward for activity that crosses fiscal years.

After considering the budgets carrying forward into Fiscal Year 2024 as noted above, the net savings for Fiscal Year 2023 is $7.9 million. The savings is primarily from the personnel budget due to vacancies throughout the year. There were 37 new positions included in Fiscal Year 2023, largely funded by Measure X. With the additional positions, there was an increase in the vacancy savings for Fiscal Year 2023. The following departments had savings in personnel budget: Planning and Development ($1.9 million), Police ($1.8 million), Community Services ($1.1 million), Fire ($0.9 million), Public Works ($0.5 million), and Finance ($0.5 million). The savings is viewed as one-time as the City is actively recruiting to fill the vacant positions.

Required Supplementary Information (Unaudited)
The operating budget increased by a total of $6.8 million. The primary increase is in the Homeless Programs Division within the City Manager’s Office. The General Fund Homeless Programs expense budget was increased by $1.8 million for the State Encampment Funding Grant and multiple professional services agreements approved by the City Council. The General Government budget increased by $1.5 million due to a transfer from personnel to the operating budget. The Fire Department budget was increased by $0.8 million for multiple grants approved by the City Council and the purchase of a Live Fire Training Simulator. The Community Services Department budget was increased by $0.7 million for additional Graffiti Removal Services, Performance Center Feasibility Study, Rent Stabilization Program Services, and new theater equipment for the Historic Civic Center Theatre. The Planning and Development Department budget was increased by $1.0 million for additional contract labor services and reimbursing the Inspection Division budget for deposits collected through fees. The increase was partially offset by a transfer of $250,000 from the personnel budget.

City of Corona
Notes to the Budgetary Comparison Schedule (Continued)
For the Year Ended June 30, 2023
General Fund appropriations and transfers out were originally adopted at $182.5 million for Fiscal Year 2023. Final appropriations were increased by $29.4 million to $211.9 million. Among the budgetary increase, $19.2 million was due to continuing appropriations from the prior year’s capital projects and grant funded activities and $5.5 million was for prior year committed purchases (encumbrances). There was $4.7 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 and the same funding source. 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, City Manager’s Office, 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 consistent with generally accepted accounting principles.

The personnel budget decreased by $1.6 million in Fiscal Year 2023. The budget was decreased by $2.0 million due to transfers from personnel to the operating budget. In addition, $0.3 million was added due to grant funding and other position adjustments approved throughout the fiscal year.
129
•
•
Assessment Date PCI Rating
October 2019 72
October 2020 71
November 2021 71
September 2022 71
October 2023 72
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, 2023
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, sewage 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. 130
Condition % of Streets
Good to Excellent 58%
Fair 37%
Poor 5%
Very Poor 0%
Fiscal Year Requirement Expenditures Rating
2018-2019 4,800,000 $ 36,631,051 $ 72
2019-2020 4,800,000 37,286,497 71
2020-2021 6,000,000 28,349,295 71
2021-2022 6,000,000 21,336,640 71
2022-2023 6,000,000 31,027,916 72
Required Supplementary Information (Unaudited)
City of Corona
Modified Approach for City Streets Infrastructure Capital Assets (Continued) For the Year Ended June 30, 2023
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 October 2023, the City's street system was rated at a PCI index of 72 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 $31,027,916 on street maintenance for the fiscal year ended June 30, 2023. These expenditures delayed deterioration and maintained the street condition from the previous assessment. The condition of the streets is rated at 72 in the current year, one point higher than 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 average PCI rating of 71 through the year 2024 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, 2023, approximately 41.9% 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 $40.6 million as of June 30, 2023. 131
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% 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, 2023
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Benefit Changes: There were no changes in benefits.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021,

7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 1 Historical information is presented for measurement periods after GASB No. 68 was implementated in 2014-15 (measurement period 2013-14).

Additional years of information will be displayed as it becomes available. 132
Measurement period 2018-19 2019-20 2020-21 2021-22
Total pension liability
Service cost 4,280,881 $ 4,466,642 $ 4,403,881 $ 5,382,910 $ Interest 25,059,830 25,962,850 26,674,374 27,394,212
Differences between expected and actual experience 715,766 1,615,820 (944,320) (1,445,599) Changes of assumptions - - - 14,133,399
Benefit payments, including refunds of employee
contributions (17,813,858) (19,025,658) (19,979,193) (20,633,132) Net change in total pension liability 13,019,654 12,242,619 10,154,742 24,831,790 Total pension liability - beginning 368,780,480 356,537,861 381,800,134 391,954,876 Total pension liability - ending (a) $ 381,800,134 368,780,480 $ 391,954,876 $ 416,786,666 $ Pension fiduciary net position
Contributions - employer 17,933,587 $ 13,255,939 $ 13,698,657 $ 126,740,939 $ Contributions - employee 1,990,044 2,223,117 2,009,054 2,045,631 Net investment income 16,183,603 12,851,320 60,189,073 (29,901,304) Benefit payments, including refunds of employee
contributions (17,813,858) (19,025,658) (19,979,193) (20,633,132) Net plan to plan resources movement - - (53,189) -
Administrative expense (169,845) (361,078) (264,791) (199,759) Other miscellaneous income/expense 531 - - -
Net change in plan fiduciary net position 8,943,640 18,124,062 55,599,611 78,052,375 Plan fiduciary net position - beginning 256,128,115 238,004,053 265,071,755 320,671,366 Plan fiduciary net position - ending (b) $ 265,071,755 256,128,115 $ 320,671,366 $ 398,723,741 $ Plan net pension liability - ending (a) - (b) $ 116,728,379 112,652,365 $ 71,283,510 $ 18,062,925 $ Plan fiduciary net position as a percentage 69.45% 69.43% 81.81% 95.67% of the total pension liability
Covered payroll $ 24,461,346 23,197,580 $ 26,963,410 $ 27,718,385 $ Plan net pension liability as a percentage of
covered payroll 485.62% 477.20% 264.37% 65.17%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 133
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% Notes to Schedule:

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios Benefit Changes: There were no changes in benefits.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

For the Year Ended June 30, 2023
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 1 Historical information is presented for measurement periods after GASB No. 68 was implementated in 2014-15 (measurement period 2013-14).

Additional years of information will be displayed as it becomes available. 134
Measurement period 2018-19 2019-20 2020-21 2021-22
Total pension liability
Service cost 5,440,494 $ 5,552,558 $ 5,647,902 $ 6,402,949 $ Interest 18,247,956 19,147,726 20,210,480 21,506,772
Differences between expected and actual experience 3,515,370 418,217 2,604,970 3,106,586 Changes of assumptions - - - 13,243,287
Benefit payments, including refunds of employee
contributions (11,179,964) (11,977,056) (13,001,364) (14,113,660) Net change in total pension liability 13,141,445 16,023,856 15,461,988 30,145,934 Total pension liability - beginning 270,594,391 254,570,535 283,735,836 299,197,824 Total pension liability - ending (a) $ 283,735,836 270,594,391 $ 299,197,824 $ 329,343,758 $ Pension fiduciary net position
Contributions - employer 8,647,659 $ 15,780,216 $ 13,995,784 $ 103,659,698 $ Contributions - employee 1,554,430 1,611,310 1,715,846 2,027,522 Net investment income 11,128,659 9,184,495 44,733,798 (22,945,056) Benefit payments, including refunds of employee
contributions (11,179,964) (11,977,056) (13,001,364) (14,113,660) Net plan to plan move - - - -
Administrative expense (119,703) (250,614) (191,916) (149,114) Other miscellaneous income/expense 390 - - -
Net change in plan fiduciary net position 14,348,351 10,031,471 47,252,148 68,479,390 Plan fiduciary net position - beginning 177,771,149 167,739,678 192,119,500 239,371,648 Plan fiduciary net position - ending (b) $ 192,119,500 177,771,149 $ 239,371,648 $ 307,851,038 $ Plan net pension liability - ending (a) - (b) $ 91,616,336 92,823,242 $ 59,826,176 $ 21,492,720 $ Plan fiduciary net position as a percentage 65.70% 67.71% 80.00% 93.47% of the total pension liability
Covered payroll $ 17,137,525 17,096,107 $ 17,699,772 $ 18,195,366 $ Plan net pension liability as a percentage of
covered payroll 542.95% 534.59% 338.01% 118.12%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 135
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% Notes to Schedule:

For the Year Ended June 30, 2023
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: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 1 Historical information is presented for measurement periods after GASB No. 68 was implementated in 2014-15 (measurement period 2013-14).

Additional years of information will be displayed as it becomes available. 136
Measurement period 2018-19 2019-20 2020-21 2021-22
City's proportion of the net pension liability 0.440950% 0.485490% 0.608630% 0.102850% City's proportionate share of the net pension liability 48,071,798 $ 52,823,339 $ 32,916,531 $ 11,880,356 $ City's covered payroll 9,911,459 $ 9,614,463 $ 10,418,921 $ 11,623,068 $ City's proportionate share of the net pension liability as a percentage of its covered payroll 485.01% 549.42% 315.93% 102.21% Plan fiduciary net position as a percentage of
the total pension liability 73.40% 72.01% 83.22% 83.22% For the Year Ended June 30, 2023
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) 137
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 payroll1 $ 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% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level percentage of payroll
Asset valuation method 15 year smoothed market
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.75%
Investment rate of return
Retirement age
Mortality
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 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 actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-23 were derived from the June 30, 2020 funding valuation report.
1 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. 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.
138
Fiscal year 2019 2020 2021 2022 2023
Actuarially determined contribution 11,933,587 $ 13,255,939 $ 13,698,657 $ 126,731,631 $ 3,761,585 $ Contributions in relation to the
actuarially determined contribution (17,933,587) (13,255,939) (13,698,657) (126,731,631) (3,761,585) Contribution deficiency (excess) (6,000,000) $ - $ - $ - $ - $ Covered payroll1 $ 24,461,346 23,197,580 $ 26,963,410 $ 27,704,904 $ 28,480,641 $ Contributions as a percentage of covered payroll. 77.31% 54.19% 50.80% 457.43% 13.21% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 139
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 payroll1 $ 16,848,270 15,848,108 $ 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% Notes to Schedule:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level percentage of payroll
Asset valuation method 15 year smoothed market
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.75%
Investment rate of return
Retirement age
Mortality
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 1 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-23 were derived from the June 30, 2020 funding valuation report.
140
Fiscal year 2019 2020 2021 2022 2023
Actuarially determined contribution 8,647,659 $ 9,780,216 $ 13,995,784 $ 103,659,698 $ 4,928,267 $ Contributions in relation to the
actuarially determined contribution (8,647,659) (15,780,216) (13,995,784) (103,659,698) (4,928,267) Contribution deficiency (excess) - $ (6,000,000) $ - $ - $ - $ Covered payroll1 $ 17,137,525 17,096,107 $ 17,699,772 $ 18,186,516 $ 18,695,738 $ Contributions as a percentage of covered payroll. 50.58% 92.08% 79.07% 569.98% 26.36% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Police Plan 141
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 payroll1 $ 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% Notes to Schedule:

City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan 1 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022 142
Fiscal year 2019 2020 2021 2022 2023
Actuarially determined contribution 4,307,750 $ 4,869,618 6,225,062 60,685,514 2,978,758 Contributions in relation to the
actuarially determined contribution (4,307,750) (4,869,618) (6,225,062) (60,685,514) (2,978,758) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll1 $ 9,614,463 9,911,459 $ 10,418,921 $ 11,623,068 $ 11,948,514 $ Contributions as a percentage of covered payroll 43.46% 50.65% 59.75% 522.11% 24.93% City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Fire Plan 143
Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost 1,391,792 $ 1,437,025 $ 1,674,724 $ 1,053,465 $ 1,087,703 $ Interest 10,487,715 10,832,995 11,059,411 9,441,454 9,588,461 Changes of benefit terms - - - - -
Differences between expected and actual experience - - (25,689,430) - (8,434,702) Changes of assumptions - 8,986,849 (2,130,435) - 15,474,651 Benefit payments, including refunds of
of employee contributions (6,931,922) (7,431,858) (7,890,228) (8,282,764) (8,451,822) Net change in total pension liability 13,825,011 4,947,585 (22,975,958) 2,212,155 9,264,291 Total OPEB liability - beginning 151,083,781 146,136,196 164,908,792 141,932,834 144,144,989 Total OPEB liability - ending (a) $ 164,908,792 151,083,781 $ 141,932,834 $ 144,144,989 $ 153,409,280 $ OPEB fiduciary net position
Contributions - employer 10,000,838 $ 10,445,297 $ 10,006,129 $ 11,847,476 $ 10,489,894 $ Net investment income 3,235,963 2,899,746 2,770,796 1,676,639 14,442,155 Benefit payments, including refunds
employee contributions (6,931,922) (7,431,858) (7,890,228) (8,282,764) (8,451,822) Administrative expense (16,420) (19,731) (9,161) (23,600) (19,869) Other expenses - (47,396) - - -
Net change in plan fiduciary net position 5,846,058 6,288,459 4,877,536 5,217,751 16,460,358 Plan fiduciary net position - beginning 35,830,088 29,541,629 41,676,146 46,553,682 51,771,433 Plan fiduciary net position - ending (b) $ 41,676,146 35,830,088 $ 46,553,682 $ 51,771,433 $ 68,231,791 $ Plan net OPEB liability - ending (a) - (b) $ 123,232,646 115,253,693 $ 95,379,152 $ 92,373,556 $ 85,177,489 $ Plan fiduciary net position as a percentage 23.72% 25.27% 32.80% 35.92% 44.48% of the total OPEB liability
Covered-employee payroll $ 63,618,121 65,624,320 $ 62,361,582 $ 67,841,626 $ 68,613,350 $ Plan net OPEB liability as a percentage of
covered-employee payroll 175.63% 193.71% 152.95% 136.16% 124.14% Other Postemployment Benefits ("OPEB") Plan
1 Historical information is presented for measurement periods after GASB No. 75 was implementated in 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, 2023
Last Ten Fiscal Years1
144
Measurement period 2021-22
Total OPEB liability
Service cost $ 1,120,750
Interest 9,090,363
Changes of benefit terms -
Differences between expected and actual experience -
Changes of assumptions -
Benefit payments, including refunds of
of employee contributions (8,552,199)
Net change in total pension liability 1,658,914
Total OPEB liability - beginning 153,409,280
Total OPEB liability - ending (a) $ 155,068,194
OPEB fiduciary net position
Contributions - employer $ 10,744,736
Net investment income (9,320,756)
Benefit payments, including refunds
employee contributions (8,552,199)
Administrative expense (17,410)
Other expenses -
Net change in plan fiduciary net position (7,145,629)
Plan fiduciary net position - beginning 68,231,791
Plan fiduciary net position - ending (b) $ 61,086,162
Plan net OPEB liability - ending (a) - (b) $ 93,982,032 Plan fiduciary net position as a percentage 39.39%
of the total OPEB liability
Covered-employee payroll $ 74,680,408
Plan net OPEB liability as a percentage of
covered-employee payroll 125.85%
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, 2023
Last Ten Fiscal Years1
145
Fiscal year 20171
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 pay 15.24% 16.42% 16.05% 17.46% 15.29% 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 2075 City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2023
Last Ten Fiscal Years1
Other Postemployment Benefits ("OPEB") Plan
1 Historical information is presented for measurement periods after GASB No. 75 was implementated in 2017-18 (measurement period of 2016-17).

Additional years of information will be displayed as it becomes available.

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.
146
Fiscal year 2022 2023
Actuarially determined contribution $ 9,983,374 10,744,736 $ Contributions in relation to the
actuarially determined contribution (10,744,736) (9,994,224) Contribution deficiency (excess) $ (10,850) - $
Covered-employee payroll $ 84,958,125 74,680,408 $
Contributions as a percentage of covered-employee payroll. 2 14.39% 11.76%
City of Corona
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years1
Other Postemployment Benefits ("OPEB") Plan
147
148

SUPPLEMENTARY INFORMATION
149
150
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Investment earnings 316,434 $ 486,609 $ 564,618 $ 78,009 $ Current services 65,000 65,000 - (65,000)
Other revenues 327,199 335,862 335,862 -
Total revenues 887,471 708,633 900,480 13,009
EXPENDITURES:

Current:

Planning and development 268,020 268,023 112,524 155,499 Debt service:

Principal retirement 13,219 13,219 13,219 -
Interest and fiscal charges 4,055 4,055 4,055 -
Total expenditures 285,297 285,294 129,798 155,499
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 $ 829,871 651,036 $ 770,682 (59,189) $ FUND BALANCE:

Beginning of year 37,622,892
End of year $ 38,393,574
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, 2023
151
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 50,710,734 $ 46,171,835 $ 28,797,125 $ (17,374,710) $ Investment earnings 792 7,283 (519,801) (527,084)
Other revenues - 21,260 444,858 423,598
Total revenues 46,200,378 50,711,526 28,722,182 (17,478,196) EXPENDITURES:

Current:

Community services - 599,288 302,373 296,915
Capital outlay 925,713 98,829,074 20,561,246 78,267,828 Total expenditures 99,428,362 925,713 20,863,619 78,564,743 NET CHANGE IN FUND BALANCE $ (53,227,984) 49,785,813 $ 7,858,563 61,086,547 $ FUND BALANCE:

Beginning of year (5,002,250)
End of year $ 2,856,313
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, 2023
152

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.

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. 153
Trip Asset
Gas Tax Measure A Reduction Forfeiture
Cash and investments 8,714,990 $ 17,111,119 $ 1,673,001 $ 344,038 $ Accounts receivable 5,712 8,128 - 1,475
Interest receivable 41,513 81,511 7,970 1,639
Due from other governments 662,098 738,301 52,288 -
Long term receivables - - - -
Loans receivable, net - - - -
Land held for resale - - - -
Restricted cash and investments - - - -
Total assets $ 17,939,059 9,424,313 $ 1,733,259 $ 347,152 $ Liabilities:

Accounts payable and accrued liabilities 207,057 $ 151,313 $ 5,777 $ - $ Retention payable - 875 - -
Due to other funds - - - -
Advance from other funds - - - -
Deposits payable - - - -
Unearned revenue - - - 170,923
Total liabilities 152,188 207,057 5,777 170,923

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

Restricted 9,217,256 17,786,871 1,727,482 176,229
Assigned - - - -
Unassigned (deficits) - - - -
Total fund balances (deficits) 17,786,871 9,217,256 1,727,482 176,229 Total liabilities, deferred inflows of
resources and fund balances $ 17,939,059 9,424,313 $ 1,733,259 $ 347,152 $ (Continued)
Combining Balance Sheet
City of Corona
June 30, 2023
Nonmajor Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Special Revenue Funds
ASSETS
154
Special Tax Residential Public Facility HUD
Districts Refuse Project Grants
Cash and investments 25,458,946 $ 10 $ - $ 712,550 $
Accounts receivable 60,105 1,597,057 - 9,598
Interest receivable 121,368 458 - -
Due from other governments 144,495 85,288 3,398,290 616,473 Long term receivables - - - 1,717,405
Loans receivable, net - - - 2,252,632
Land held for resale - - - 1,461,000
Restricted cash and investments 17,462 67,402 - -
Total assets $ 1,750,215 25,802,376 $ 3,398,290 $ 6,769,658 $ Liabilities:

Accounts payable and accrued liabilities 572,438 $ 930,705 $ - $ 83,305 $ Retention payable 2,653 - - -
Due to other funds 24 - 3,875,770 556,758
Advance from other funds 1,333,102 - - -
Deposits payable 1,550 - - 750
Unearned revenue - 141,406 - 93,680
Total liabilities 1,072,111 1,909,767 3,875,770 734,493

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

Restricted 23,892,609 678,104 - 6,035,165
Assigned - - - -
Unassigned (deficits) - - (3,640,583) -
Total fund balances (deficits) 678,104 23,892,609 (3,640,583) 6,035,165 Total liabilities, deferred inflows of
resources and fund balances $ 1,750,215 25,802,376 $ 3,398,290 $ 6,769,658 $ (Continued)
Combining Balance Sheet (Continued)
City of Corona
June 30, 2023
Nonmajor Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
ASSETS
Special Revenue Funds Capital Projects Funds
155
Capital Projects
Fund
Total
Nonmajor
Planned Local Governmental
Drainage Funds
Cash and investments $ 54,585,667 571,013
Accounts receivable 1,682,850 775
Interest receivable 257,179 2,720
Due from other governments 6,016,224 318,991
Long term receivables 1,717,405 -
Loans receivable, net 2,252,632 -
Land held for resale 1,461,000 -
Restricted cash and investments 84,864 -
Total assets $ 68,057,821 893,499 $
Liabilities:

Accounts payable and accrued liabilities 13,056 $ 1,963,651 $ Retention payable 3,528 -
Due to other funds 4,432,552 -
Advance from other funds 1,333,102 -
Deposits payable 2,300 -
Unearned revenue 406,009 -
Total liabilities 8,141,142 13,056

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

Restricted 59,513,716 -
Assigned 880,443 880,443
Unassigned (deficits) (3,640,583) -
Total fund balances (deficits) 56,753,576 880,443
Total liabilities, deferred inflows of
resources and fund balances $ 68,057,821 893,499 $
(Concluded)
Combining Balance Sheet (Continued)
City of Corona
June 30, 2023
Nonmajor Governmental Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
ASSETS
156
Trip Asset
Gas Tax Measure A Reduction Forfeiture
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines and Penalties - - - -
Intergovernmental 7,426,384 5,829,188 262,688 47,186
Special assessments - - - -
Investment earnings 104,985 304,155 17,270 9,158
Current services - - - -
Other revenues 108,102 - - -
Total revenues 6,133,343 7,639,471 279,958 56,344
EXPENDITURES:

Current:

Public safety- Police - - - 145,463
Public works & maintenance services 1,353,916 168,001 516 - Community services - - 11,854 -
Community development - - - -
Capital outlay 3,981,909 7,126,785 6,046 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - 259
Total expenditures 7,294,786 5,335,825 18,416 145,722

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,161,443) 2,303,646 261,542 (89,378) OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (1,108,821) - - -
Total other financing sources (uses) - (1,108,821) - -
NET CHANGES IN FUND BALANCES (1,161,443) 1,194,825 261,542 (89,378) FUND BALANCES (DEFICITS):

Beginning of year 8,022,431 18,948,314 1,465,940 265,607 End of year $ 17,786,871 9,217,256 $ 1,727,482 $ 176,229 $ (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, 2023
157
Special Tax Residential Public Facility HUD
Districts Refuse Project Grants
REVENUES:

Licenses and permits - $ - $ - $ - $
Fines and Penalties - 98,820 - 50
Intergovernmental - 167,326 38,814 945,518
Special assessments 9,036,923 - - -
Investment earnings 467,500 5,817 - -
Current services 36,099 10,792,040 - -
Other revenues 84,086 - - 14,582
Total revenues 11,064,003 9,624,608 38,814 960,150
EXPENDITURES:

Current:

Public safety- Police - - - -
Public works & maintenance services 7,914,555 11,136,557 - - Community services - 32,268 - -
Community development - - - 227,855
Capital outlay 114,892 86,655 377,500 698,699
Debt service:

Principal retirement 18,108 - - 8,195
Interest and fiscal charges - 5,555 - 2,514
Total expenditures 11,279,143 8,029,447 377,500 937,263

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (215,140) 1,595,161 (338,686) 22,887 OTHER FINANCING SOURCES (USES):

Transfers in - 427,304 - -
Transfers out - - - -
Total other financing sources (uses) 427,304 - - -
NET CHANGES IN FUND BALANCES 212,164 1,595,161 (338,686) 22,887 FUND BALANCES (DEFICITS):

Beginning of year 22,297,448 465,940 (3,301,897) 6,012,278 End of year $ 678,104 23,892,609 $ (3,640,583) $ 6,035,165 $ (Continued)
Capital Projects Funds
City of Corona
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
158
Capital Projects
Fund
Total
Nonmajor
Planned Local Governmental
Drainage Funds
REVENUES:

Licenses and permits $ 796,368 796,368 $
Fines and Penalties 98,870 -
Intergovernmental 14,717,104 -
Special assessments 9,036,923 -
Investment earnings 900,057 (8,828)
Current services 10,828,139 -
Other revenues 599,325 392,555
Total revenues 36,976,786 1,180,095
EXPENDITURES:

Current:

Public safety- Police 145,463 -
Public works & maintenance services 814,593 21,388,138
Community services 44,122 -
Community development 227,855 -
Capital outlay 12,412,613 20,127
Debt service:

Principal retirement 105,565 79,262
Interest and fiscal charges 32,645 24,317
Total expenditures 34,356,401 938,299

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,620,385 241,796
OTHER FINANCING SOURCES (USES):

Transfers in 427,304 -
Transfers out (1,108,821) -
Total other financing sources (uses) (681,517) -
NET CHANGES IN FUND BALANCES 1,938,868 241,796
FUND BALANCES (DEFICITS):

Beginning of year 54,814,708 638,647
End of year $ 56,753,576 880,443 $
(Concluded)
City of Corona
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2023
159
160
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 8,018,647 $ 7,423,800 $ 7,426,384 $ 2,584 $ Investment earnings 113,319 118,629 104,985 (13,644)
Other revenues - 43,340 108,102 64,762
Total revenues 7,585,769 8,131,966 7,639,471 53,702
EXPENDITURES:

Current:

Public works & maintenance services 1,879,535 1,969,135 1,353,916 615,219 Capital outlay 6,995,647 10,539,977 3,981,909 6,558,068 Debt service:

Principal retirement - 113,280 - -
Interest and fiscal charges 34,753 - - -
Total expenditures 12,509,112 9,023,215 5,335,825 7,173,287

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (4,923,343) (891,249) 2,303,646 7,226,989 OTHER FINANCING (USES):

Transfers out (1,200,000) (1,200,000) (1,108,821) 91,179 Total other financing (uses) (1,200,000) (1,200,000) (1,108,821) 91,179 NET CHANGE IN FUND BALANCE $ (6,123,343) (2,091,249) $ 1,194,825 7,318,168 $ FUND BALANCE:

Beginning of year 8,022,431
End of year $ 9,217,256
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, 2023
161
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 5,726,000 $ 5,536,000 $ 5,829,188 $ 293,188 $ Investment earnings 259,949 321,926 304,155 (17,771)
Total revenues 5,857,926 5,985,949 6,133,343 275,417
EXPENDITURES:

Current:

Public works & maintenance services 168,000 168,000 168,001 (1) Capital outlay 7,173,000 21,697,284 7,126,785 14,570,499 Total expenditures 21,865,284 7,341,000 7,294,786 14,570,498 NET CHANGE IN FUND BALANCE $ (16,007,358) (1,355,051) $ (1,161,443) 14,845,915 $ FUND BALANCE:

Beginning of year 18,948,314
End of year $ 17,786,871
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, 2023
162
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 200,000 $ 108,359 $ 262,688 $ 154,329 $ Investment earnings 19,509 25,339 17,270 (8,069)
Total revenues 133,698 219,509 279,958 146,260
EXPENDITURES:

Current:

Public works & maintenance services 33,300 - 516 (516)
Community services - 33,300 11,854 21,446
Capital Outlay - 76,500 6,046 70,454
Total expenditures 109,800 33,300 18,416 91,384
NET CHANGE IN FUND BALANCE $ 23,898 186,209 $ 261,542 237,644 $ FUND BALANCE:

Beginning of year 1,465,940
End of year $ 1,727,482
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, 2023
163
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ 27,882 $ 47,186 $ 19,304 $
Investment earnings 7,630 6,124 9,158 3,034
Total revenues 34,006 7,630 56,344 22,338
EXPENDITURES:

Current:

Public safety - police 161,600 161,600 145,463 16,137
Debt service:

Interest and fiscal charges 1,000 1,000 259 741
Total expenditures 162,600 162,600 145,722 16,878
NET CHANGE IN FUND BALANCE $ (128,594) (154,970) $ (89,378) 39,216 $ FUND BALANCE:

Beginning of year 265,607
End of year $ 176,229
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, 2023
164
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Special assessments 8,893,404 $ 9,020,960 $ 9,036,923 $ 15,963 $ Investment earnings 444,861 511,663 467,500 (44,163)
Current services 68,458 68,386 36,099 (32,287)
Other revenues 24,871 20,327 84,086 63,759
Total revenues 9,621,336 9,431,594 9,624,608 3,272
EXPENDITURES:

Current:

Public works & maintenance services 8,211,536 8,501,118 7,914,555 586,563 Capital outlay 32,031 1,306,815 114,892 1,191,923
Total expenditures 9,807,933 8,243,567 8,029,447 1,778,486 NET CHANGE IN FUND BALANCE $ (186,597) 1,188,027 $ 1,595,161 1,781,758 $ FUND BALANCE:

Beginning of year 22,297,448
End of year $ 23,892,609
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, 2023
165
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental 121,300 $ 278,087 $ 38,814 $ (239,273) $ Investment earnings 1,824 1,586 - (1,586)
Fines and penalties 139,972 120,000 - (120,000)
Current services 11,753,100 11,136,885 - (11,136,885)
Total revenues 11,536,558 12,016,196 38,814 (11,497,744) EXPENDITURES:

Current:

Public works & maintenance services 11,602,026 11,591,898 - 11,591,898 Community services - 61,601 - 61,601
Capital outlay - 198,087 377,500 (179,413)
Debt service:

Principal retirement 18,108 18,108 - 18,108
Interest and fiscal charges 5,555 5,555 - 5,555
Total expenditures 11,875,249 11,625,689 377,500 11,497,749

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (338,691) 390,507 (338,686) 5
OTHER FINANCING SOURCES:

Transfers in - 40,815 - (40,815)
Total other financing sources 40,815 - - (40,815)
NET CHANGE IN FUND BALANCE $ (297,876) 390,507 $ (338,686) (40,810) $ FUND BALANCE:

Beginning of year (3,301,897)
End of year $ (3,640,583)
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, 2023
166
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Intergovernmental - $ - $ 38,814 $ 38,814 $
Total revenues - - 38,814 38,814
EXPENDITURES:

Capital outlay - 668,839 377,500 291,339
Total expenditures 668,839 - 377,500 291,339
NET CHANGE IN FUND BALANCE $ (668,839) - $ (338,686) 330,153 $ FUND BALANCE (DEFICIT):

Beginning of year (3,301,897)
End of year $ (3,640,583)
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, 2023
167
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Fines and penalties - $ - $ 50 $ 50 $
Intergovernmental 500,000 786,662 945,518 158,856
Current services - 32,588 - (32,588)
Other revenues - 2,548 14,582 12,034
Total revenues 821,798 500,000 960,150 138,352
EXPENDITURES:

Current:

Planning and development 216,222 486,397 227,855 258,542 Capital outlay 1,477,381 6,210,263 698,699 5,511,564
Debt service:

Principal retirement 8,195 8,195 8,195 -
Interest and fiscal charges 2,514 2,514 2,514 -
Total expenditures 6,707,369 1,704,312 937,263 5,770,106 NET CHANGE IN FUND BALANCE $ (5,885,571) (1,204,312) $ 22,887 5,908,458 $ FUND BALANCE (DEFICIT):

Beginning of year 6,012,278
End of year $ 6,035,165
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, 2023
168
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Licenses and permits 762,863 $ 761,736 $ 796,368 $ 34,632 $ Investment earnings - 8,091 (8,828) (16,919)
Other Revenues 391,889 391,889 392,555 666
Total revenues 1,161,716 1,154,752 1,180,095 18,379
EXPENDITURES:

Current:

Public works & maintenance services 851,611 1,007,641 814,593 193,048 Capital outlay 132,000 373,003 20,127 352,876
Debt service:

Principal retirement 79,262 79,262 79,262 -
Interest and fiscal charges 24,317 24,317 24,317 -
Total expenditures 1,484,223 1,087,190 938,299 545,924
NET CHANGE IN FUND BALANCE $ (322,507) 67,562 $ 241,796 564,303 $ FUND BALANCE:

Beginning of year 638,647
End of year $ 880,443
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, 2023
169
170

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.
171
172
Transit
Services Airport Total
ASSETS
Current assets:

Cash and investments 897,503 $ 1,520,373 $ 2,417,876 $
Accounts receivable 3,578 11,033 14,611
Interest receivable 4,524 7,242 11,766
Due from other government 332,285 - 332,285
Restricted cash and investments 52,127 - 52,127
Total current assets 1,538,648 1,290,017 2,828,665
Noncurrent assets:

Capital assets:

Capital assets, being depreciated, net 1,790,676 19,354 1,810,030 Total noncurrent assets 19,354 1,790,676 1,810,030
Total assets 1,558,002 3,080,693 4,638,695

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 134,652 - 134,652
OPEB related items 56,179 - 56,179
Total deferred outflows of resources - 190,831 190,831

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 843,160 1,502 844,662 Accrued interest payable 2,901 - 2,901
Unearned revenue 373,690 300 373,990
Deposits payable 460 - 460
Compensated absences, due within one year 22,769 - 22,769 Long-term debt - due within one year 63,615 - 63,615
Total current liabilities 2,262 1,306,135 1,308,397
Noncurrent liabilities:

Long term liabilities, due in more than one year 820,975 - 820,975 Compensated absences, due in more than one year 9,365 - 9,365 Net pension liability 71,088 - 71,088
Net OPEB liability 189,539 - 189,539
Total non-current liabilities - 1,090,967 1,090,967
Total liabilities 2,262 2,397,102 2,399,364

DEFERRED INFLOWS OF RESOURCES
Pension related items 3,898 - 3,898
OPEB related items 29,429 - 29,429
Total deferred inflows of resources - 33,327 33,327

NET POSITION
Investment in capital assets 1,790,676 19,354 1,810,030 Restricted - 52,127 52,127
Unrestricted (deficit) (1,001,708) 1,536,386 534,678
Total net position $ 1,555,740 841,095 $ 2,396,835 $
City of Corona
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2023
173
Transit
Services Airport Total
OPERATING REVENUES:
$ - 2,553,963 $ 2,553,963 $
Fees and permits 47,175 - 47,175
Fines and permits 40,550 9 40,559
Other revenues 433,461 53,631 487,092
Total operating revenues 480,645 2,648,144 3,128,789
OPERATING EXPENSES:

Personnel services 198,342 91,669 290,011
Contractual services 2,214,528 5,483 2,220,011
Materials and supplies 59,086 103,070 162,156
Utilities 9,751 214,374 224,125
Depreciation 14,297 653,355 667,652
Total operating expenses 224,270 3,339,685 3,563,955
OPERATING INCOME (LOSS) 256,375 (691,541) (435,166)
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 51,639 - 51,639
Investment earnings 14,315 17,535 31,850
Interest expense (17,845) - (17,845)
Total nonoperating revenues (expenses) 69,174 (3,530) 65,644 CHANGE IN NET POSITION 325,549 (695,071) (369,522)
NET POSITION:

Beginning of the year 1,536,166 1,230,191 2,766,357
End of the year $ 1,555,740 841,095 $ 2,396,835 $
City of Corona
Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds
For the Year Ended June 30, 2023
174
Transit
Service Airport Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 2,354,168 $ 489,046 $ 2,843,214 $ Cash paid to suppliers for goods and services (2,155,307) (369,228) (2,524,535) Cash paid to employees for services (206,348) (90,205) (296,553) Net cash provided by (used in) operating activities 29,613 (7,487) 22,126 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grant received 86,384 - 86,384
Principal paid on pension obligation bonds (58,293) - (58,293) Interest paid on pension obligation bonds (17,884) - (17,884) Net cash provided by (used in) noncapital financing activities 86,384 (76,177) 10,207 CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 13,945 12,472 26,417
Net cash provided by investing activities 13,945 12,472 26,417 Net increase (decrease) in cash and cash equivalents 129,942 (71,192) 58,750 CASH AND CASH EQUIVALENTS:

Beginning of year 1,020,822 1,390,431 2,411,253
End of year $ 1,520,373 949,630 $ 2,470,003 $
CASH AND CASH EQUIVALENTS:

Cash and investments 897,503 $ 1,520,373 $ 2,417,876 $
Restricted cash and investments 52,127 - 52,127
Total cash and cash equivalents $ 1,520,373 949,630 $ 2,470,003

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

Operating income (loss) (691,541) $ 256,375 $ (435,166) $ Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation 653,355 14,297 667,652
Change in assets and liabilities:
(Increase) decrease in accounts receivable 440 8,321 8,761 (Increase) decrease in due from other government - 72,030 72,030 (Increase) decrease in deferred outflows of resources related to pension 425,886 - 425,886 (Increase) decrease in deferred outflows of resources related to OPEB 2,785 - 2,785 Increase (decrease) in accounts payable and accrued liabilities 327,765 (249,460) 78,305 Increase (decrease) in compensated absences (30,782) - (30,782) Increase (decrease) in unearned revenue (366,446) - (366,446) Increase (decrease) in deposits payable - 80 80
Increase (decrease) in net pension liability (243,678) - (243,678) Increase (decrease) in net OPEB liability 6,261 - 6,261 Increase (decrease) in deferred inflows of resources related to pension (131,952) - (131,952) Increase (decrease) in deferred inflows of resources related to OPEB (31,610) - (31,610) Total adjustments 684,054 (226,762) 457,292
Net cash provided by (used in) operating activities $ 29,613 (7,487) $ 22,126 $ City of Corona
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2023
175
176

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. 177
Fleet Workers' Liability
Operations Compensation Risk
ASSETS
Current assets:

Cash and investments 6,937,325 $ 24,518,471 $ 2,819,963 $ Accounts receivable 42,649 56,373 -
Inventories and prepaid items 197,166 - -
Total current assets 24,574,844 7,177,140 2,819,963
Noncurrent assets:

Capital assets, not depreciated 30,654 - -
Capital assets, being depreciated, net 2,629,313 - -
Intangible asset, being amortized, net - 944,066 -
Total noncurrent assets - 3,604,033 -
Total assets 24,574,844 10,781,173 2,819,963

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 634,066 - -
OPEB related items 364,355 - -
Total deferred outflows of resources - 998,421 -

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 329,707 223,091 29,347 Accrued interest payable 7,268 - -
Claim payable, due within one year - 3,117,924 431,680
Compensated absences, due within one year 69,969 - -
Long-term debt, due within one year 159,404 - -
Lease and SBITA payable, due within one year 146,849 - - Total current liabilities 3,341,015 713,197 461,027
Noncurrent liabilities:

Compensated absences, due more than one year - - -
Long term liabilities, due in more than one year 2,057,163 - - Lease and SBITA payable, due more than one year 239,203 - - Claim payable, due more than one year - 17,625,604 1,276,964 Net pension liability 334,750 - -
Net OPEB liability 1,229,275 - -
Total noncurrent liabilities 17,625,604 3,860,391 1,276,964 Total liabilities 20,966,619 4,573,588 1,737,991

DEFERRED INFLOWS OF RESOURCES
Pension related items 18,357 - -
OPEB related items 190,868 - -
Total deferred inflows of resources - 209,225 -

NET POSITION
Net investment in capital assets 3,217,981 - -
Unrestricted 3,778,800 3,608,225 1,081,972
Total net position $ 3,608,225 6,996,781 $ 1,081,972 $
(Continued)
Self-Insurance
City of Corona
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
178
Information
Warehouse Technology Total
ASSETS
Current assets:

Cash and investments 863,059 $ 11,469,719 $ 46,608,537 $ Accounts receivable - 135 99,157
Inventories and prepaid items - - 197,166
Total current assets 11,469,854 863,059 46,904,860
Noncurrent assets:

Capital assets, not depreciated - 84,378 115,032
Capital assets, being depreciated net - 154,030 2,783,343 Intangible asset, being amortized, net 3,927,686 - 4,871,752 Total noncurrent assets 4,166,094 - 7,770,127
Total assets 15,635,948 863,059 54,674,987

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 101,337 2,152,065 2,887,468
OPEB related items 55,640 664,096 1,084,091
Total deferred outflows of resources 2,816,161 156,977 3,971,559

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 4,400 189,570 776,115 Accrued interest payable 1,063 102,086 110,417
Claim payable, due within one year - - 3,549,604
Compensated absences, due within one year 4,433 260,246 334,648 Long-term debt, due within one year 23,315 492,322 675,041 Lease and SBITA payable, due within one year - 2,005,309 2,152,158 Total current liabilities 3,049,533 33,211 7,597,983
Noncurrent liabilities:

Compensated absences, due more than one year - 148,583 148,583 Long term liabilities, due in more than one year 300,888 6,353,573 8,711,624 Lease and SBITA payable, due more than one year - 1,437,613 1,676,816 Claim payable, due more than one year - - 18,902,568
Net pension liability 53,500 1,136,164 1,524,414
Net OPEB liability 187,723 2,240,551 3,657,549
Total noncurrent liabilities 11,316,484 542,111 34,621,554 Total liabilities 14,366,017 575,322 42,219,537

DEFERRED INFLOWS OF RESOURCES
Pension related items 2,934 62,305 83,596
OPEB related items 29,147 347,887 567,902
Total deferred inflows of resources 410,192 32,081 651,498

NET POSITION
Net investment in capital assets - 723,172 3,941,153
Unrestricted 2,952,728 412,633 11,834,358
Total net position $ 3,675,900 412,633 $ 15,775,511 $
(Concluded)
City of Corona
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2023
179
Fleet Workers' Liability
Operations Compensation Risk
OPERATING REVENUES:

Service charges 4,930,770 $ 2,521,576 $ 4,133,749 $
Other revenues 1,348,380 14,399 -
Total operating revenues 2,535,975 6,279,150 4,133,749
OPERATING EXPENSES:

Personnel services 1,066,269 - -
Contractual services 232,622 - 323,234
Materials and supplies 2,148,347 68,564 -
Utilities - 1,442,755 -
Depreciation and amortization expense 972,589 - -
Claims and premium 2,890,603 - 2,728,543
Total operating expenses 2,959,167 5,862,582 3,051,777
NET OPERATING INCOME (LOSS) (423,192) 416,568 1,081,972 NONOPERATING REVENUE (EXPENSES):

Interest expense (82,458) - -
Gain (loss) on sale of capital assets (14,108) - -
Total nonoperating expenses - (96,566) -
CHANGE IN NET POSITION (423,192) 320,002 1,081,972
NET POSITION:

Beginning of the year 6,676,779 4,031,417 -
End of the year $ 3,608,225 6,996,781 $ 1,081,972 $
(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, 2023
180
Information
Warehouse Technology Total
OPERATING REVENUES:

Service charges 446,580 $ 14,231,808 $ 26,264,483 $
Other revenues - - 1,362,779
Total operating revenues 14,231,808 446,580 27,627,262
OPERATING EXPENSES:

Personnel services 225,225 4,214,801 5,506,295
Contractual services 284 2,970,606 3,526,746
Materials and supplies 5,526 956,518 3,178,955
Utilities 269,537 985 1,713,277
Depreciation expense 2,033,361 - 3,005,950
Claims and premium - - 5,619,146
Total operating expenses 10,444,823 232,020 22,550,369
NET OPERATING INCOME (LOSS) 3,786,985 214,560 5,076,893 NONOPERATING REVENUE (EXPENSES):

Interest expense (223,376) (6,540) (312,374)
Gain (loss) on sale of capital assets - 1,823 (12,285)
Total nonoperating expenses (221,553) (6,540) (324,659) CHANGE IN NET POSITION 3,565,432 208,020 4,752,234
NET POSITION:

Beginning of the year 204,613 110,468 11,023,277
End of the year $ 3,675,900 412,633 $ 15,775,511 $
(Concluded)
City of Corona
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2023
181
Workers' Liability
Fleet Compensation Risk
Operations Self-Insurance Self-Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 6,241,411 $ 2,526,143 $ 4,133,749 $ Cash paid to suppliers for goods and services (4,257,202) (69,990) (2,048,350) Cash paid to employees for services (1,026,703) - -
Cash paid for insurance or claims - (2,871,636) (2,406,709) Net cash provided by (used in) operating activities (415,483) 957,506 (321,310) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Principal paid on pension obligation bonds (146,069) - - Interest paid on pension obligation bonds (44,812) - -
Net cash (used in) noncapital financing activities - (190,881) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (683,704) - -
Proceed from sale of capital assets - - -
Principal paid on lease payables (227,949) - -
Interest paid on lease payables (37,744) - -
Net cash (used in) capital and related financing activities - (949,397) - Net increase (decrease) in cash and cash equivalents (415,483) (182,772) (321,310) CASH AND CASH EQUIVALENTS:

Beginning of year 7,120,097 24,933,954 3,141,273
End of year $ 24,518,471 6,937,325 $ 2,819,963 $
NONCASH ITEMS:

Lease and subscription to intangible assets 68,984 $ - $ - $ Issuance of lease and subscription liabilities (68,984) $ - $ - $

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

Operating income (loss) 416,568 $ (423,192) $ 1,081,972 $ Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:

Depreciation 972,589 - -
Change in assets and liabilities:
(Increase) decrease in accounts receivable (37,739) (9,832) - (Increase) decrease in inventories and prepaid items 11,371 - - (Increase) decrease in pension related deferred outflows of resources 1,350,176 - - (Increase) decrease in OPEB related deferred outflows of resources (2,445) - - Increase (decrease) in accounts payable and accrued liabilities (448,272) (1,426) (1,725,116) Increase (decrease) in claims payable - 18,967 321,834
Increase (decrease) in compensated absences 16,719 - -
Increase (decrease) in net pension liability (779,486) - - Increase (decrease) in net OPEB liability 104,345 - -
Increase (decrease) in pension related deferred inflows of resources (462,539) - - Increase (decrease) in OPEB related deferred inflows of resources (183,781) - - Total adjustments 540,938 7,709 (1,403,282)
Net cash provided by (used in) operating activities $ (415,483) 957,506 $ (321,310) $ Governmental Activities - Internal Service Funds
City of Corona
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
182
Information
Warehouse Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 446,580 $ 14,254,073 $ 27,601,956 $ Cash paid to suppliers for goods and services (11,065) (4,241,808) (10,628,415) Cash paid to employees for services (167,650) (3,616,359) (4,810,712) Cash paid for insurance or claims - - (5,278,345)
Net cash provided by (used in) operating activities 6,395,906 267,865 6,884,484 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Principal paid on pension obligation bonds (21,365) (451,136) (618,570) Interest paid on pension obligation bonds (6,554) (58,765) (110,131) Net cash (used in) noncapital financing activities (509,901) (27,919) (728,701)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (233,969) (917,673)
Proceed from sale of capital assets - 1,823 1,823
Principal paid on lease payables - (2,233,224) (2,461,173) Interest paid on lease payables - (85,276) (123,020)
Net cash (used in) capital and related financing activities (2,550,646) - (3,500,043) Net increase (decrease) in cash and cash equivalents 3,335,359 239,946 2,655,740 CASH AND CASH EQUIVALENTS:

Beginning of year 623,113 8,134,360 43,952,797
End of year $ 11,469,719 863,059 $ 46,608,537 $
NONCASH ITEMS:

Subscription to intangible assets - $ 4,673,384 $ 4,742,368 $ Issuance of subscription liabilities - $ (4,673,384) $ (4,742,368) $

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

Operating income (loss) 214,560 $ 3,786,985 $ 5,076,893 $ Adjustments to reconcile operating loss to net cash
provided by (used in) operating activities:

Depreciation 2,033,361 - 3,005,950
Change in assets and liabilities:
(Increase) decrease in accounts receivable - 22,265 (25,306) (Increase) decrease in inventories and prepaid items - - 11,371 (Increase) decrease in pension related deferred outflows of resources 178,921 6,426,965 7,956,062 (Increase) decrease in OPEB related deferred outflows of resources (17,843) (2,641) (22,929) Increase (decrease) in accounts payable and accrued liabilities (2,247) (58,050) (2,235,111) Increase (decrease) in claims payable - - 340,801
Increase (decrease) in compensated absences 3,085 37,537 57,341 Increase (decrease) in net pension liability (103,877) (3,681,323) (4,564,686) Increase (decrease) in net OPEB liability 70,236 184,543 359,124 Increase (decrease) in pension related deferred inflows of resources (64,989) (2,016,886) (2,544,414) Increase (decrease) in OPEB related deferred inflows of resources (9,981) (336,850) (530,612) Total adjustments 53,305 2,608,921 1,807,591
Net cash provided by (used in) operating activities $ 6,395,906 267,865 $ 6,884,484 $ Governmental Activities - Internal Service Funds
City of Corona
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
183
184

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 AB109 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. This fund was closed during the year ended June 30, 2023.
185
186
AD/CFD Fund AB109 PACT Total
ASSETS
Cash and investments 1,792,250 $ - $ 1,792,250 $
Restricted cash and investments 28,378,168 - 28,378,168 Interest receivable 8,547 - 8,547
Due from other governments 118,942 - 118,942
Total assets - 30,297,907 30,297,907

LIABILITIES
Deposits payable 62,059 - 62,059
Total liabilities - 62,059 62,059

NET POSITION
Restricted for:

Organizations and other governments 30,235,848 $ - $ 30,235,848 $ City of Corona
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
187
AD/CFD Fund AB109 PACT Total
ADDITIONS:

Assessment revenue 6,881,992 $ - $ 6,881,992 $
Investment earnings 781,721 - 781,721
Bond proceeds 15,190,000 - 15,190,000
Total additions - 22,853,713 22,853,713
DEDUCTIONS:

Distribution to the City - 96,937 96,937
Payments for district expenses 835,270 - 835,270
Payments for district debt service 6,512,378 - 6,512,378 Total deductions 96,937 7,347,648 7,444,585
Change in net position (96,937) 15,506,065 15,409,128
NET POSITION:

Beginning of year 14,729,783 96,937 14,826,720
End of year $ - 30,235,848 $ 30,235,848 $
City of Corona
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
188

STATISTICAL SECTION
189
190
Contents Page
1 Net Position by Component 192
2 Changes in Net Position 194
3 Fund Balances - Governmental Funds 198
4 Changes in Fund Balances - Governmental Funds 200
5a Water Sales By User Type 202
5b Assessed Value and Actual Value of Taxable Property 203 6a Potable Water Rates 205
6b Reclaimed Water Rates 206
6c Direct and Overlapping Property Tax Rates 207
7a Principal Water Customers 208
7b Principal Property Tax Payers 209
8 Property Tax Levies and Collections 211
9 Ratios of Outstanding Debt by Type 212
10 Ratios of Net General Bonded Debt Outstanding 215
11 Direct and Overlapping Governmental Activities Debt 216 12 Legal Debt Margin Information 218
13 Pledged-Revenue Coverage 220
14 Demographic and Economic Statistics 223
15 Principal Employers 224
16 Full-time Equivalent City Government Employees by Function/Program 225 17 Operating Indicators by Function/Program 226
18 Capital Assets Statistics by Function/Program 228
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 annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

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.
191
2023 2022 2021 2020 2019
Governmental Activities
Net Investment in Capital Assets 805,911,955 $ 774,605,309 $ 751,014,897 $ 715,567,718 $ 690,776,881 $ Restricted for:

Capital Projects 43,106,386 37,622,892 30,373,703 30,073,897 34,034,394 Pension 35,415,224 30,102,382 - - -
Debt Service 14,024 124 6 8,627,925 6,490,959
Transportation and Public Works 29,409,713 28,902,625 29,395,576 21,690,954 22,272,787 Special Assessment District 23,892,609 28,773,861 24,246,859 11,617,840 12,625,790 Development Projects 17,719,706 17,413,190 16,303,526 23,608,622 21,365,909 Community Development Projects 6,035,165 6,012,278 6,194,799 6,594,350 Other Purposes 283,659 540,572 565,368 350,132 382,770
Total Restricted 155,876,486 149,367,924 107,079,837 102,563,720 97,172,609 Unrestricted 72,780,934 52,930,786 38,917,327 45,153,818 34,147,614 Total Governmental Activities Net Position 1,034,569,375 $ 976,904,019 $ 897,012,061 $ 863,285,256 $ 822,097,104 $ Business-Type Activities
Net Investment in Capital Assets 371,608,006 $ 365,081,077 $ 362,609,521 $ 348,173,650 $ 346,111,296 $ Restricted for:

Capital Projects - - - 6,735,454 6,735,454
Debt Service 526,057 509,441 509,441 - -
Transportation and Public Works 52,127 255,544 366,440 377,421 369,860 Development Projects 855,624 855,624 855,624 792,804 792,804 Total Restricted 1,433,808 1,620,609 1,731,505 7,905,679 7,898,118 Unrestricted (44,211,868) (66,552,586) (70,513,075) (79,890,157) (95,417,283) Total Business-Type Activities Net Position 328,829,946 $ 300,149,100 $ 293,827,951 $ 276,189,172 $ 258,592,131 $ Primary Government
Net Investment in Capital Assets 1,177,519,961 $ 1,139,686,386 $ 1,113,624,418 $ 1,063,741,368 $ 1,036,888,177 $ Restricted 157,310,294 150,988,533 108,811,342 110,469,399 105,070,727 Unrestricted 28,569,066 (13,621,800) (31,595,748) (34,736,339) (61,269,669) Total Primary Government Net Position 1,363,399,321 $ 1,277,053,119 $ 1,190,840,012 $ 1,139,474,428 $ 1,080,689,235 $ Fiscal Year
City of Corona
Schedule 1
Net Position by Component
Last Ten Fiscal Years (accrual basis of accounting)
192
2018 2017 2016 2015 2014
Governmental Activities
Net Investment in Capital Assets 661,445,807 $ 638,468,424 $ 618,953,633 $ 587,861,831 $ 557,314,076 $ Restricted for:

Capital Projects 35,250,894 26,832,918 24,440,919 23,435,434 31,326,722 Pension - - - - -
Debt Service 5,100,103 3,439,357 2,416,841 2,653,417 2,770,292 Transportation and Public Works 18,493,153 16,363,749 15,401,285 19,206,895 19,224,575 Special Assessment District 11,114,013 14,377,296 17,074,793 15,602,868 13,862,186 Development Projects 9,137,699 5,276,971 8,866,182 5,939,085 1,934,349 Community Development Projects
Other Purposes 309,562 725,421 514,174 560,289 803,053
Total Restricted 79,405,424 68,714,194 67,397,988 69,921,177 124,816,559 Unrestricted 23,749,730 96,234,263 90,173,729 270,365,217 265,060,487 Total Governmental Activities Net Position 764,600,961 $ 783,902,090 $ 745,433,548 $ 897,600,470 $ 932,351,224 $ Business-Type Activities
Net Investment in Capital Assets 334,581,059 $ 324,512,188 $ 312,540,296 $ 286,045,985 $ 275,218,430 $ Restricted for:

Capital Projects 6,735,454 6,735,454 7,205,941 6,898,174 10,780,901 Debt Service - - - 6,061,277 6,813,257
Transportation and Public Works 261,195 697,391 611,272 830,088 1,317,690 Development Projects
Total Restricted 6,996,649 7,817,213 13,789,539 18,911,848 8,565,678 Unrestricted (111,330,380) (96,745,399) (92,820,840) (91,326,475) (100,444,897) Total Business-Type Activities Net Position 230,247,328 $ 223,612,110 $ 207,014,684 $ 202,803,803 $ 189,397,114 $ Primary Government
Net Investment in Capital Assets 996,026,866 $ 962,980,612 $ 931,493,929 $ 873,907,816 $ 832,532,506 $ Restricted 86,402,073 74,448,557 76,531,407 81,187,527 88,833,025 Unrestricted (87,580,650) 20,341,732 (511,136) (2,647,111) 179,038,742 Total Primary Government Net Position 994,848,289 $ 1,057,770,901 $ 1,007,514,200 $ 952,448,232 $ 1,100,404,273 $ Fiscal Year
City of Corona
Schedule 1
Net Position by Component (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
193
2023 2022 2021 2020 2019
Expenses
Governmental Activities:

General Government 42,003,289 $ 35,184,855 $ 37,567,629 $ 35,158,626 $ 33,591,975 $ Public Safety - Fire 59,329,187 31,961,693 32,592,271 29,429,998 29,004,569 Public Safety - Police 60,018,129 46,544,729 49,673,632 45,363,320 51,665,087 Public Works & Maintenance Services 33,911,619 51,021,619 42,862,546 47,417,239 41,082,525 Communiy Services (**) 18,724,859 3,969,626 3,863,503 3,720,964 4,301,828 Planning and Development (**) 9,928,888 5,081,650 6,404,617 5,179,409 4,666,834 Economic Development 1,303,084 1,200,606 651,741 219,500 391,110 Interest and Fiscal Charges 4,841,729 3,857,494 1,125,253 1,239,678 1,347,268 Total Governmental Activities Expenses 230,060,784 $ 178,822,272 $ 174,741,192 $ 167,728,734 $ 166,051,196 $ Business-Type Activities:

Water 60,671,831 63,431,423 61,436,086 59,032,333 54,241,684 Sewer 33,600,749 31,913,449 27,651,867 28,852,053 28,218,102 Electric 18,276,874 15,553,202 14,557,426 15,159,666 15,597,164 Transit Services 3,357,530 2,906,505 2,563,422 2,972,289 3,153,161 Airport 224,270 458,143 187,251 150,703 180,033
Total Business-Type Activities Expenses 116,131,254 114,262,722 106,396,052 106,167,044 101,390,144 Total Primary Government Expenses 346,192,038 $ 293,084,994 $ 281,137,244 $ 273,895,778 $ 267,441,340 $ Program Revenues
Governmental Activities:

Charges for Services:

General Government (*) 6,661,052 6,179,740 5,908,573 4,942,880 7,377,481 Public Safety - Fire 4,493,877 3,952,023 3,889,503 4,048,936 4,914,360 Public Safety - Police 1,812,973 2,402,592 2,112,639 2,274,242 2,282,448 Public Works & Maintenance Services 14,061,014 14,764,111 13,536,491 14,552,360 17,033,637 Communiy Services (**) 2,774,611 2,190,731 867,243 1,919,806 2,882,270 Planning and Development (**) 5,646,101 4,592,172 5,605,810 4,084,790 4,868,485 Economic Development - - - - -
Operating Grants and Contributions 34,969,870 37,521,201 33,382,020 17,568,917 17,177,545 Capital Grants and Contributions 22,824,536 19,861,094 19,254,389 36,780,592 46,130,203 Total Governmental Activities Program Revenues 93,244,034 91,463,664 84,556,668 86,172,523 102,666,429 Business-Type activities:

Charges for Services:

Water 80,554,287 64,960,384 65,486,307 55,238,024 56,486,220 Sewer 35,209,947 34,027,929 34,562,829 30,984,409 31,394,607 Electric 17,882,717 17,554,503 16,484,158 16,346,238 16,971,319 Transit Services 94,181 246,155 63,382 297,111 364,025
Airport 480,645 434,761 591,652 398,281 341,505
Operating Grants and Contributions 2,966,466 5,062,788 2,226,923 2,185,674 1,813,204 Capital Grants and Contributions 4,182,457 1,894,007 4,146,239 6,004,436 6,915,473 Total Business-Type Activities Program Revenues 141,370,700 124,180,527 123,561,490 111,454,173 114,286,353 Total Primary Government Program Revenues 234,614,734 $ 215,644,191 $ 208,118,158 $ 197,626,696 $ 216,952,782 $ City of Corona
Schedule 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Year
194
2018 2017 2016 2015 2014
Expenses
Governmental Activities:

General Government 21,282,982 $ 28,273,481 $ 27,435,359 $ 24,481,334 $ 23,974,508 $ Public Safety - Fire 29,892,569 26,004,329 24,447,062 24,052,304 23,062,147 Public Safety - Police 52,237,558 47,773,812 44,341,895 42,939,535 40,779,963 Public Works & Maintenance Services 38,699,371 35,763,511 39,647,786 33,544,227 39,591,302 Communiy Services (**) 3,815,661 5,281,168 6,463,940 6,559,251 4,417,913 Planning and Development (**) 3,691,471 4,736,871 5,933,581 3,806,766 3,453,020 Economic Development 329,276 4,927,998 4,422,141 3,107,755 5,344,121 Interest and Fiscal Charges 1,398,132 1,034,468 1,910,542 2,016,105 2,172,050 Total Governmental Activities Expenses 151,347,020 $ 153,795,638 $ 154,602,306 $ 140,507,277 $ 142,795,024 $ Business-Type Activities:

Water 66,216,277 52,922,440 51,177,312 55,714,372 58,165,289 Sewer 31,543,999 24,258,766 25,004,508 26,500,708 29,160,167 Electric 16,913,151 15,559,948 20,082,535 15,192,888 13,373,418 Transit Services 3,391,384 2,826,701 2,732,394 2,477,893 2,355,405 Airport 146,287 166,860 197,702 282,969 281,771
Total Business-Type Activities Expenses 118,211,098 95,734,715 99,194,451 100,168,830 103,336,050 Total Primary Government Expenses 269,558,118 $ 249,530,353 $ 253,796,757 $ 240,676,107 $ 246,131,074 $ Program Revenues
Governmental Activities:

Charges for Services:

General Government (*) 10,394,661 18,216,829 18,556,870 20,774,890 16,938,527 Public Safety - Fire 5,076,947 4,087,577 3,679,300 3,142,720 4,264,876 Public Safety - Police 2,172,690 1,090,884 1,082,045 1,065,181 2,070,221 Public Works & Maintenance Services 15,271,111 15,757,571 15,708,292 20,011,693 20,068,114 Communiy Services (**) 2,582,847 1,690,619 1,481,845 1,014,872 319,806 Planning and Development (**) 3,718,706 2,112,169 2,116,832 2,420,301 3,316,624 Economic Development - - - - 666,394
Operating Grants and Contributions 15,235,243 13,607,731 13,468,867 11,780,932 12,555,412 Capital Grants and Contributions 32,940,776 23,356,504 40,508,675 27,197,609 20,783,935 Total Governmental Activities Program Revenues 87,392,981 79,919,884 96,602,726 87,408,198 80,983,909 Business-Type activities:

Charges for Services:

Water 56,153,664 51,435,658 48,753,278 52,620,052 55,937,613 Sewer 31,114,187 31,271,134 30,755,583 30,735,952 30,626,667 Electric 17,772,585 16,789,626 17,057,728 16,760,206 17,182,310 Transit Services 359,652 445,604 427,417 432,281 406,202 Airport 265,996 298,868 272,217 288,820 316,402
Operating Grants and Contributions 3,195,967 2,876,392 5,116,662 4,160,035 1,640,359 Capital Grants and Contributions 4,992,185 13,061,722 6,954,812 13,485,750 4,225,256 Total Business-Type Activities Program Revenues 113,854,236 116,179,004 109,337,697 118,483,096 110,334,809 Total Primary Government Program Revenues 201,247,217 $ 196,098,888 $ 205,940,423 $ 205,891,294 $ 191,318,718 $ (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
195
2023 2022 2021 2020 2019
Net (Expense)/Revenue
Governmental Activities (136,816,750) $ (87,358,608) $ (90,184,524) $ (81,556,211) $ (63,384,767) $ Business-Type Activities 25,239,446 9,917,805 17,165,438 5,287,129 12,896,209 Total Primary Government Net Expense (111,577,304) $ (121,801,454) $ (73,019,086) $ (76,269,082) $ (50,488,558) $ General Revenues and
Other Changes in Net Position
Governmental Activities:

Taxes
Property Taxes 61,085,887 $ 55,400,381 $ 52,583,004 $ 50,397,965 $ 48,123,700 $ Sales and Use Tax 101,136,363 89,912,163 44,752,843 39,657,924 44,125,758 Other Taxes 13,376,528 12,562,342 11,213,308 10,369,076 11,640,957 Total taxes 175,598,778 157,874,886 108,549,155 100,424,965 103,890,415 Investment Earnings 10,613,780 (1,537,234) 972,402 10,810,066 9,042,370 Miscellaneous 8,269,547 7,519,310 12,065,796 12,544,603 11,764,807 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)
Special Items - - - - -
Total Governmental Activities 194,482,105 164,087,463 121,693,251 123,072,765 122,801,470 Business-Type Activities:

Investment Earnings 3,441,400 (3,486,908) 684,844 6,237,118 5,010,211 Other Income - - - 4,001,432 8,542,261
Gain/(Loss) on Sale of Capital Asset - - - - -
Transfers - (109,748) 52,902 706,869 1,896,122
- - - 2,052,000 -
Total Business-Type Activities 3,441,400 (3,596,656) 737,746 12,997,419 15,448,594 Total Primary Government 197,923,505 $ 160,490,807 $ 122,430,997 $ 136,070,184 $ 138,250,064 $ Change in Net Position
Governmental Activities 57,665,355 $ 76,728,855 $ 31,508,727 $ 41,516,554 $ 59,416,703 $ Business-Type Activities 28,680,846 6,321,149 17,903,184 18,284,548 28,344,803 Total Primary Government 86,346,201 $ 83,050,004 $ 49,411,911 $ 59,801,102 $ 87,761,506 $ (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
196
2018 2017 2016 2015 2014
Net (Expense)/Revenue
Governmental Activities (63,954,039) $ (73,875,754) $ (57,999,580) $ (53,099,079) $ (71,620,834) $ Business-Type Activities (4,356,862) 20,444,289 10,143,246 18,314,266 6,998,759 Total Primary Government Net Expense (68,310,901) $ (53,431,465) $ (47,856,334) $ (34,784,813) $ (64,622,075) $ General Revenues and
Other Changes in Net Position
Governmental Activities:

Taxes
Property Taxes 45,646,490 $ 43,059,232 $ 42,156,726 $ 38,656,150 $ 36,462,210 $ Sales and Use Tax 38,118,548 41,145,616 39,663,795 36,608,600 35,623,651 Other Taxes 10,490,863 9,565,580 9,349,800 10,566,662 9,099,819 Total taxes 94,255,901 93,770,428 91,170,321 85,831,412 81,185,680 Investment Earnings 540,824 623,227 3,172,905 1,988,557 2,296,081 Miscellaneous 13,123,627 6,892,170 4,765,043 3,686,771 2,096,681 Unrestricted Grants and Contributions - - - - 407
Gain/(Loss) on Sale of Capital Asset - - - - -
Extraordinary Items - - - 5,054,583 (56,854,230)
Transfers (2,744,512) 44,970 14,540 (916,819)
Special Items 3,037,670 - - - -
Total Governmental Activities 108,213,510 101,330,795 99,122,809 96,561,323 27,807,800 Business-Type Activities:

Investment Earnings 334,927 199,758 1,839,114 862,948 1,189,440 Other Income 4,887,538 479,465 45,168 493 1,996,793
Gain/(Loss) on Sale of Capital Asset - - - (10,207) 2,497,251 Transfers 2,744,512 (44,970) (14,540) - 916,819
- - - - -
Total Business-Type Activities 7,966,977 634,253 1,869,742 853,234 6,600,303 Total Primary Government 116,180,487 $ 101,965,048 $ 100,992,551 $ 97,414,557 $ 34,408,103 $ Change in Net Position
Governmental Activities 44,259,471 $ 27,455,041 $ 41,123,229 $ 43,462,244 $ (43,813,034) $ Business-Type Activities 3,610,115 21,078,542 12,012,988 19,167,500 13,599,062 Total Primary Government 47,869,586 $ 48,533,583 $ 53,136,217 $ 62,629,744 $ (30,213,972) $ (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
197
2023 # 2022 # 2021 # 2020 # 2019
General Fund
Nonspendable 181,343,271 $ 187,583,529 $ 19,804,579 $ 22,787,534 $ 26,492,072 $ Restricted 35,429,248 30,102,506 6 - -
Committed 52,915,998 48,121,481 42,939,942 41,987,810 39,899,272 Assigned 76,964,148 55,140,510 60,053,636 62,449,057 55,495,036 Unassigned 18,602,355 221,995 - - -
Total General Fund 365,255,020 $ 321,170,021 $ 122,798,163 $ 127,224,401 $ 121,886,380 $ All Other Governmental Funds
Nonspendable - $ - $ - $ - $ - $
Restricted 118,483,309 112,789,005 104,416,319 102,563,720 97,172,609 Assigned 880,443 638,647 558,505 493,812 396,813
Unassigned (4,580,345) (8,304,147) (3,301,897) (192,005) (48,500) Total all other Govermental Funds 114,783,407 $ 105,123,505 $ 101,672,927 $ 102,865,527 $ 97,520,922 $ Fiscal Year
City of Corona
Schedule 3
Fund Balances, Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting) 198
2018 # 2017 # 2016 2015 2014
General Fund
Nonspendable 31,465,340 $ 33,241,909 $ 34,124,977 $ 24,378,784 $ 23,595,803 $ Restricted - - - - -
Committed 36,247,833 33,898,271 33,511,464 23,815,795 23,494,027 Assigned 40,855,061 41,979,112 33,141,625 50,696,555 44,748,578 Unassigned - - - - -
Total General Fund 108,568,234 $ 109,119,292 $ 100,778,066 $ 98,891,134 $ 91,838,408 $ All Other Governmental Funds
Nonspendable - $ - $ - $ 18,926,818 $ 3,615,772 $
Restricted 79,405,424 66,631,585 59,493,942 42,982,365 41,755,471 Assigned 389,356 432,652 9,428,541 5,825,674 1,299,482
Unassigned (48,501) (48,525) (85,423) (151,869) -
Total all other Govermental Funds 79,746,279 $ 67,015,712 $ 68,837,060 $ 67,582,988 $ 46,670,725 $ Fiscal Year
City of Corona
Schedule 3
Fund Balances, Governmental Funds (Continued)
Last Ten Fiscal Years (modified accrual basis of accounting) 199
2023 2022 2021 2020 2019
Revenues:

Property Taxes 61,085,887 $ 55,400,381 $ 52,583,004 $ 49,470,941 $ 47,994,974 $ Sales Taxes 101,136,363 89,912,163 44,752,843 39,657,924 44,125,758 Other Taxes 13,255,986 12,562,342 11,213,308 10,369,076 10,806,717 Licenses, Fees and Permits 4,696,217 6,577,476 5,469,660 4,459,005 14,334,965 Fines and Penalties 1,535,485 1,181,815 790,144 1,183,944 1,260,265 Special Assessments 9,706,838 9,432,946 9,203,891 8,906,312 8,599,669 Investment Earnings 7,399,104 (5,003,021) 1,490,406 10,810,066 9,042,370 Intergovernmental Revenues 47,683,385 32,729,863 38,145,769 27,400,952 23,459,273 Current Services 25,180,987 23,562,912 21,619,934 21,047,563 21,810,063 Payments in Lieu of Services 6,251,709 6,212,499 5,796,335 4,734,340 7,732,356 Other Revenues 12,471,005 17,116,969 13,735,817 30,985,010 38,087,702 Total Revenues 290,402,966 249,686,345 204,801,111 209,025,133 227,254,112 Expenditures:

General Government 41,210,177 56,625,834 37,706,387 34,223,230 32,612,219 Public Safety - Fire 30,850,827 88,966,232 29,921,638 25,727,486 25,393,135 Public Safety - Police 48,860,334 161,926,977 48,530,984 47,307,419 45,914,260 Public Works & Maintenance Services 25,411,031 48,988,071 34,447,957 38,963,202 33,876,327 Community Services (*) 17,285,486 14,401,529 4,537,236 5,058,205 5,140,160 Planning and Development (*) 9,284,984 12,786,610 6,572,646 5,703,942 5,249,767 Economic Development 1,158,528 2,369,713 689,231 264,656 444,925 Capital Outlay 40,724,348 39,909,543 43,682,940 35,810,526 38,969,422 Debt Service
Principal 16,872,858 17,173,832 3,006,263 2,905,509 2,814,099 Interest and Fiscal Charges 4,999,492 3,338,137 1,271,765 1,343,061 1,445,283 Total Expenditures 236,658,065 446,486,478 210,367,047 197,307,236 191,859,597 Excess of Revenues Over/(Under) Expenditures 53,744,901 (196,800,133) (5,565,936) 11,717,897 35,394,515 Other Financing Sources/(Uses)
Issuance of Debt - 225,994,225 - - -
Principal Retirement - - - - -
Bond Premium - - - - -
Issuance of Leases - - - - -
Transfers In 1,536,125 1,467,597 1,274,306 2,508,422 1,382,903 Transfers Out (1,536,125) (1,467,597) (1,327,208) (3,215,291) (3,764,070) Total Other Financing Sources/(Uses) - 225,994,225 (52,902) (706,869) (2,381,167) Extraordinary Items - - - - -
Special Items - - - - -
Net Change in Fund Balances 53,744,901 $ 29,194,092 $ (5,618,838) $ 11,011,028 $ 33,013,348 $ Debt Service as a Percentage of
Non-capital Expenditures 11.2% 5.0% 2.6% 2.6% 2.8%
* 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) 200
2018 2017 2016 2015 2014
Revenues:

Property Taxes 45,775,246 $ 43,170,396 $ 42,175,687 $ 38,896,950 $ 36,721,899 $ Sales Taxes 38,118,548 41,145,616 39,663,796 38,565,868 37,430,489 Other Taxes 10,443,823 9,421,375 9,255,961 7,598,684 6,835,935 Licenses, Fees and Permits 6,530,878 5,682,991 7,947,593 9,599,549 2,777,719 Fines and Penalties 1,243,873 1,467,593 1,338,341 1,041,887 1,068,778 Special Assessments 8,518,569 8,281,089 8,801,035 9,438,713 9,439,079 Investment Earnings 540,761 623,227 3,169,381 1,988,557 2,296,081 Intergovernmental Revenues 19,642,952 26,038,928 41,588,677 27,601,255 29,487,199 Current Services 21,536,206 19,260,514 18,375,839 17,276,984 17,287,466 Payments in Lieu of Services 9,973,782 10,113,191 10,202,448 12,638,674 10,644,539 Other Revenues 35,312,655 14,111,953 13,314,649 15,300,761 14,900,407 Total Revenues 197,637,293 179,316,873 195,833,407 179,947,882 168,889,591 Expenditures:

General Government 33,897,611 25,520,135 25,200,855 21,735,399 23,938,276 Public Safety - Fire 26,668,495 25,855,247 25,894,695 24,874,714 24,247,894 Public Safety - Police 47,426,516 46,885,033 45,080,687 41,966,882 41,161,796 Public Works & Maintenance Services 32,492,756 27,172,763 33,621,625 27,777,052 35,125,462 Community Services (*) 5,153,298 5,197,923 4,669,898 4,677,992 4,440,588 Planning and Development (*) 4,807,968 4,816,552 5,953,143 3,829,120 3,422,846 Economic Development 421,117 4,930,642 4,422,141 3,107,755 2,529,859 Capital Outlay 35,320,776 30,579,173 43,444,050 34,342,416 23,609,928 Debt Service
Principal 3,324,719 2,853,939 2,800,122 3,672,900 3,545,895 Interest and Fiscal Charges 1,533,230 1,408,493 1,953,345 2,064,757 2,210,669 Total Expenditures 191,046,486 175,219,900 193,040,561 168,048,987 164,233,213 Excess of Revenues Over/(Under) Expenditures 6,590,807 4,096,973 2,792,846 11,898,895 4,656,378 Other Financing Sources/(Uses)
Issuance of Debt - 24,520,000 - - -
Principal Retirement - (27,212,450) - - -
Bond Premium - 2,974,564 - - -
Issuance of Leases 1,403,261 - -
Transfers In 5,533,474 6,291,621 2,588,851 2,315,815 3,767,587 Transfers Out (6,296,428) (5,677,217) (1,987,900) (1,739,145) (1,124,534) Total Other Financing Sources/(Uses) 640,307 896,518 600,951 576,670 2,643,053 Extraordinary Items - - - - (56,854,230)
Special Items - 3,037,670 - - -
Net Change in Fund Balances 10,268,784 $ 4,993,491 $ 3,393,797 $ 12,475,565 $ (49,554,799) $ Debt Service as a Percentage of
Non-capital Expenditures 3.1% 2.9% 3.2% 4.3% 4.1%
* 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 (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) 201
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 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 2023 19,474 65.6 2,547 8.6 833 2.8 365 1.2 6,474 21.8 29,693 100.0 Note: 1) Amounts include reclaimed water sales.

Source: Corona Department of Water and Power
City of Corona
Schedule 5a
Water Sales By User Type
1 Last Ten Fiscal Years
Residential Commercial Industrial Public Agency Total
202
Fiscal Year Less: Total Taxable Total
Ended Residential Commercial Industrial Tax Exempt Assessed Direct Tax June 30 Property Property Property Other Property Value Rate 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 2023 18,326,812 2,963,556 3,625,711 1,814,071 475,249 26,254,901 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)
203
204
Monthly Base Rates
Ready-To-Serve Charge
Fiscal Year12 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
2014 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2015 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2016 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2017 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2018 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2019 2.10 3 25.23 19.23 36.09 62.90 91.80 156.91 241.02 442.64 651.04 2020 1.57 22.28 29.98 45.38 83.88 130.08 276.38 491.98 1,238.88 2,162.88 2021 1.65 23.40 31.48 47.65 88.08 136.59 290.20 516.58 1,300.83 2,271.03 2022 1.74 24.57 33.06 50.04 92.49 143.42 304.71 542.41 1,365.88 2,384.59 2023 1.83 25.80 34.72 52.55 97.12 150.60 319.95 569.54 1,434.18 2,503.82 Structure adopted with Ordinance No. 3025, effective March 19, 2010.

Source: Corona Department of Water and Power
City of Corona
Schedule 6a
Potable Water Rates
Last Ten Fiscal Years
Quantity
Rate per
100 C.F.
1) There are instances where the rates were changed during the fiscal year. 2) For Fiscal Year 2010 and forward, the stated rate per 100 C.F. is for Residential Tier 1 of the Budget Based Water Rate 3) For Fiscal Year 2014-2019, the quantity rate included a pass-through charge from WMWD of $0.03 per 100 C.F. for Tier 1 rates 205
Ready-To-Serve Charge
Fiscal Year12 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8"
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 2023 2.03 22.40 29.34 43.23 77.95 119.61 251.55 445.98 1,119.55 1,952.84 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) For Fiscal Year 2010 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.
3) Rates for Reclaimed Water were established July 2, 2006 by Ordinance 2854.

City of Corona
Schedule 6b
Reclaimed Water Rates
Last Ten Fiscal Years
Monthly Base Rates 3
206
General Corona/Norco Alvord Metropolitan Riverside City Basic Obligation Total School School Water Community
Year Rate1 Debt Service Direct District District District College 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
2023 1.0000 0.0000 1.0000 0.0992 0.1456 0.0035 0.0147
Notes:

Source: HdL Coren & Cone, Riverside County Assessor 2013/14-2022/23 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) 207
Percent of Percent of
Water Customer
Water
Charges Rank
Total Water
Revenues
Water
Charges Rank
Total Water
Revenues
City of Corona 3,651,871 $ 1 6.55% 1,450,550 $ 1 2.72%
Corona-Norco USD 887,855 2 1.59% 826,992 2 1.55%
CLI Atlas LLC 503,535 3 0.90%
Raintree Corona Pointe, LLC. 340,108 4 0.61% 7
Eagle Glen Master HOA 312,302 5 0.56% 190,289 0.35%
Eagle Glen Country Club, LLC 237,193 6 0.43%
Baldwin Richards Foods Company 227,649 7 0.41%
Breit MF Promenade Terrace LLC 186,487 8 0.33%
MM Meadowood Holdings, LLC 156,389 9 0.28%
Hills LLC 151,132 10 0.27%
MG Properties 3 0.78% 421,109
Cresta Verde Hills HOA 308,004 4 0.57%
Equity Res. Property Mgmt 225,244 5 0.42%
Marquessa Apartments 193,843 6 0.36%
Meadowood Investors LLC 193,459 8 0.36%
Avalonbay Communities, Inc. 192,080 9 0.36%
Waterstone at Corona Pointe 191,736 10 0.35%
$ 11.93% 4,193,306 6,654,521 $ 7.82%
Source: Corona Department of Water and Power
2023 2014
City of Corona
Schedule 7a
Principal Water Customers
Current Year and Nine Years Ago
208
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 299,077,673 $ 1 1.14%
Raintree Corona Pointe LLC 225,381,371 2 0.86%
TAI OW Monterey Owner LLC 220,000,000 3 0.84%
Castle and Cooke Corona Inc. 203,645,005 4 0.78% 175,008,220 2 1.13% Rexco 143,475,040 5 0.55% 107,928,418 4 0.70%
Corona North Retail Development 130,486,492 6 0.50%
UHS Corona Inc 109,956,349 7 0.42%
Breit MF Promenade Terrace LLC 104,261,604 8 0.40%
Artisan Corona Apartments LLC 103,724,030 9 0.40%
Latitude Business Park 99,520,763 10 0.38%
Watson Laboratories Inc 1 1.21% 186,030,764
Kaiser Foundation Health Plan Inc 148,550,294 3 0.94%
Waterstone Apartments NF 81,322,677 5 0.53%
Costco Wholesale Corporation 73,311,717 6 0.45%
Dart Container Corporation of Calif 71,293,706 7 0.46%
Artisan At Main Street Metro 62,775,000 8 0.46%
Riverside County Transportation 53,459,374 9 0.38%
223 1 DL Holdings 10 0.29% 51,280,511
Total 1,639,528,327 $ 6.27% 1,010,960,681 $ 6.55%
Source: HdL Coren & Cone, Riverside County Assessor 2021/22 & 2012/13 Combined Tax Rolls and the SBE Non Unitary Tax Roll 2023 2014
City of Corona
Schedule 7b
Principal Property Tax Payers
Current Year and Nine Years Ago
209
210
Fiscal Year Taxes Levied Delinquent
Ended for the Percentage Tax Percentage
June 30, Fiscal Year1 Amount of Levy Collections2 Amount of Levy 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% 2023 36,211,973 34,785,725 96.06% 463,010 35,248,735 97.34% 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
211
General Pension Lease Unamortized Refunding SBITA Special Fiscal Obligation Obligation Revenue Bond Lease Lease Agreement Assessment Year Bonds Bonds Bonds Premium Payable Payable Payable Bonds 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 - -
2023 - 207,895 16,790 1,933 7,931 386 3,937 -
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) 212
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 - 1,104 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 $ - 5,894 15,082 - 27,635 2,088 - - 35,285 324,856 5.9% 2,069 $ 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) 213
214
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 Value of Per Year Bonds Bonds Payable Premium Bonds Debt Repayment Debt Property1 Capita2 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 2023 207,895 - 7,931 1,933 16,790 234,549 - 234,549 0.89% 1,494 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) 215
Debt Est. Percentage City's Share of
Direct and Overlapping Tax and Assessment Debt: Outstanding Applicable 2 Overlapping Debt Metropolitan Water District 19,215 $ 0.722% 139 $
Riverside City Community College District 291,274 18.872% 54,969 Alvord Unified School District 267,702 12.304% 32,938
Corona-Norco Unified School District 484,012 54.046% 261,589 Alvord Unified School District CFD No. 2006-1 5,940 8.333% 495 Corona-Norco Unified School District CFD No. 97-1 567 100.000% 567 Corona-Norco Unified School District CFD No. 99-1 1,586 100.000% 1,586 Corona-Norco Unified School District CFD No. 99-2, Imp Areas A, B, C 3,701 100.000% 3,701 Corona-Norco Unified School District CFD No. 00-1 1,375 100.000% 1,375 Corona-Norco Unified School District CFD No. 01-1, Imp Areas A & B 5,210 100.000% 5,210 Corona-Norco Unified School District CFD No. 01-2, Imp Areas A, B, C 9,300 100.000% 9,300 Corona-Norco Unified School District CFD No. 03-3, Imp Area A & B 2,925 100.000% 2,925 Corona-Norco Unified School District CFD No. 03-5 1,495 100.000% 1,495 Corona-Norco Unified School District CFD No. 04-2, Imp Areas 1 & 3 3,095 100.000% 3,095 Corona-Norco Unified School District CFD No. 17-1 3,375 100.000% 3,375 City of Corona CFD No. 97-2 1,195 100.000% 1,195
City of Corona CFD No. 2000-1 3,110 100.000% 3,110
City of Corona CFD No. 2001-2 1,640 100.000% 1,640
City of Corona CFD No. 2002-1 10,302 100.000% 10,302
City of Corona CFD No. 2002-1, Imp Area 1 5,548 100.000% 5,548 City of Corona CFD No. 2002-4 5,235 100.000% 5,235
City of Corona CFD No. 2003-2 4,145 100.000% 4,145
City of Corona CFD No. 2004-1 2,075 100.000% 2,075
City of Corona CFD No. 2016-2 5,020 100.000% 5,020
City of Corona CFD No. 2017-2 3,440 100.000% 3,440
City of Corona CFD No. 2018-1 Improvement Area 1, 2018 Series 8,961 100.000% 8,961 City of Corona CFD No. 2018-1 Improvement Area 1, 2020 Series 10,104 100.000% 10,104 City of Corona CFD No. 2018-2 100.000% 15,190 15,190
California Statewide Communities Development Authority Community Facilities District No. 2002-1 100.000% 2,499 2,499
California Statewide Communities Development Authority assessment District No. 2002-1 2 1,370 100.000% 1,370 City of Corona 1915 Act Bonds 295 100.000% 295
Total Overlapping Tax and Assessment Debt 462,888
Direct and Overlapping General Fund Debt:

Overlapping General Fund Obligations
Riverside County General Fund Obligations 686,777 $ 7.247% 49,771 $ Riverside County Pension Obligations Bonds 748,540 7.247% 54,247 Riverside County Community College District Certificates of Participation 24,550 18.872% 4,633 Corona-Norco Unified School District General Fund Obligations 19,422 54.046% 10,497 Western Municipal Water District General Fund Obligations 4,075 22.542% 919 Total Overlapping General Fund Obligations $ 120,067
Direct General Fund Obligations:

City of Corona General Fund Obligations 24,721 $ 24,721 $ City of Corona Pension Obligation Bonds 207,895 207,895 Unamortized Bond Premium 1,933 1,933
ROU Lease Payable 386 386
SBITA Payable 3,937 3,937
Total Direct General Fund Obligations 100.000% 238,872 $ Total Direct and Overlapping General Fund Obligations $ 358,939 Less: Riverside County Supported Obligations -
Total Net Direct and Overlapping General Fund Obligations 358,939 $ Total Direct Debt $ 238,872
Total Gross Overlapping Debt $ 582,955
Total Net Overlapping Debt $ 582,955
Gross Combined Total Direct and Overlapping Debt3 $ 821,827 Net Combined Total Direct and Overlapping Debt $ 821,827 City of Corona
Schedule 11
Direct and Overlapping Governmental Activities Debt
1 As of June 30, 2023 (dollars in thousands)
216
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, and Successor Agency's tax allocation bonds.

City of Corona
Schedule 11
Direct and Overlapping Governmental Activities Debt
1 (Continued)
As of June 30, 2023 (dollars in thousands)
217
Legal Debt Margin Calculation for Fiscal Year 2023
Assessed Value $ 26,254,901
Debt Limit (15% of assessed value) 3,938,235
Debt Applicable to limit:

General obligation debt 234,549
Less: Amount set aside for repayment of general obligation debt - Total net debt applicable to limit 234,549
Legal Debt Margin $ 3,703,686
2014 2015 2016 2017 2018
Debt Limit 2,454,089 $ 2,594,890 $ 2,707,398 $ 2,819,397 $ 2,986,885 $ Total net debt
applicable to limit 53,603 50,100 47,485 42,536 43,531
Legal debt margin $ 2,544,790 2,400,486 $ 2,659,913 $ 2,776,861 $ 2,943,354 $ Total debt applicable
to the limit as a percentage
of debt limit 2.184% 1.931% 1.754% 1.509% 1.457%
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
City of Corona
Schedule 12
Legal Debt Margin Information
Last Ten Fiscal Years (dollars in thousands)
Fiscal Year
218
2019 2020 2021 2022 2023
Debt Limit 3,145,686 $ 3,279,207 $ 3,462,545 $ 3,606,534 $ 3,938,235 $ Total net debt
applicable to limit 40,580 37,369 33,309 251,986 234,549 Legal debt margin $ 3,241,838 3,105,106 $ 3,429,236 $ 3,354,548 $ 3,703,686 $ Total debt applicable
to the limit as a percentage
of debt limit 1.290% 1.140% 0.962% 6.987% 5.956%
City of Corona
Fiscal Year
Schedule 12
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years (dollars in thousands)
219
Current Special Current
Fiscal Lease Account Assessment Account
Year Payments Balance Principal Interest Coverage Collections Balance Principal Interest Coverage 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 # 1,216 1,170 0.99 192 0 185 7 1.00
2017 30,614 3 9 # 1,367 27,975 1.04 - - - - -
2018 2,117 1 # 931 1,185 1.00 - - - - -
2019 2,121 - # 901 1,220 1.00 - - - - -
2020 2,112 - # 857 1,255 1.00 - - - - -
2021 2,106 - # 806 1,300 1.00 - - - - -
2022 2,108 - 0 753 1,355 1.00 - - - - -
2023 2,113 - 1,415 698 1.00 - - - - -
Notes: 1 Includes the defeasance of 1997 COPs and 2003 COPs. 2 Includes the advanced redemption of 2005 COPs.
3 Includes the defeasance of 2006 Lease Revenue bonds.
4 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
Lease Revenue Bonds Special Assessment Bonds
Debt Service Debt Service
City of Corona
Schedule 13
Pledged Revenue Coverage
Last Ten Fiscal Years (dollars in thousands)
220
Current
Fiscal Utility Lease Account
Year Revenues Principal Interest Coverage Payments Balance Principal Interest Coverage 2014 3,187 1,165 2,022 1.00 60,552 1 60,080 2,143 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 2 23,785 0 555 1.00
2017 5,809 3,775 2,034 1.00 - - - - -
2018 28,093 5,166 2,537 3.65 4 - - - - -
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 - - - - -
2023 48,014 2,432 1,840 11.24 - - - - -
Revenue Bonds Certificates of Participation
Debt Service Debt Service
Last Ten Fiscal Years (dollars in thousands)
Pledged Revenue Coverage (Continued)
City of Corona
Schedule 13
221
222
(1) (1) (1) (1) (2) (1)
Per
Personal Capita
Income Personal Median School Unemployment
Year Population (In Thousands) Income Age Enrollment Rate 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%
2022 157,005 5,485,396 34,937 35.3 50,790 3.2%
Sources: (1) HdL, Coren & Cone;
(2) California Department of Education -
Corona-Norco Unified School District School Enrollment.

City of Corona
Schedule 14
Demographic and Economic Statistics
Last Ten Calendar Years
223

Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Corona-Norco Unified School District 4,914 1 5.77% 2,459 1 2.79% Kaiser Permanente 450 9 0.53% 825 3 0.94%
Corona Regional Medical Center 1,129 2 1.33% 1,100 2 1.25% Fender USA Corona 1,029 3 1.21% 800 5 0.91%
Monster Energy 1,027 4 1.21% 475 9 0.54%
City of Corona 910 5 1.07% 801 4 0.91%
All American Asphalt 650 7 0.76% 700 6 0.79%
Veg Fresh Farms 605 8 0.71%
TWR Framing Enterprises 750 6 0.88% 465 10 0.53%
Thermal Structures 418 10 0.49%
Actavis 7 0.71% 626
CIRCOR 8 0.68% 600
Total 11,882 13.96% 8,851 10.05%
Source: Corona Economic Development Department
2023 2014
City of Corona
Schedule 15
Principal Employers
Current Year and Nine Years Ago
224
2023 2022 2021 2020 2019 2018** 2017 2016* 2015* 2014*
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 22.55 19.55 14.07 13.33 14.07 9.90 10.35 9.73 9.73 9.85 Legal & Risk Management
1 7.72 6.72 6.72 6.34 6.19 6.52 7.67 6.67 6.01 5.29
Administrative Services 2,7,8 31.74 40.92 38.56 42.23 42.56 34.30 36.31

16.00 14.00 11.48 9.39
Information Technology 32.55 29.03 25.03 24.47 23.99 17.25 13.89 15.09 12.41 13.98 Finance2 35.86 33.82 31.93
Police
Officers 164.30 163.30 158.00 153.00 149.00 162.00 162.00 162.00 159.00 157.00 Civilians 104.65 100.93 86.70 83.25 80.40 88.01 88.39 85.90 79.13 80.62 Fire
Firefighters and officers 120.44 114.96 111.48 108.00 107.00 113.00 113.00 112.00 112.00 112.00 Civilians 9.84 7.24 5.32 7.76 7.75 8.20 4.88 6.48 7.18 6.06 Public Works3, 13 66.19 58.34 35.75 35.75 35.75 35.75 29.05 29.75 31.57 33.78 Maintenance Services3, 11 34.15 42.11 42.11 42.76 43.63 45.00 44.53 41.76 Community Development
4 23.89 22.14 22.14 25.00 26.48 26.00 22.08 18.02
Planning and Development Development
12 60.86 53.06
Economic Development
5 6.00 6.00 4.00 2.00 2.00 3.00 3.00 2.00 1.00 4.00
Library and Recreation Services
6 72.99 72.74 69.06 70.67 68.04 63.50 64.69
Community Services Department
9 115.47 111.65 86.36
Utilities Department6 115.65 112.21 111.60 109.60 110.02 108.91 119.18 119.68 120.79 121.76 Transit Services14 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 Total 884.08 836.81 754.48 729.87 722.08 735.92 742.42 738.90 710.23 712.12 *
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
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, City of Corona
Schedule 16
Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
225
Function/Program 2023 2022 2021 2020 2019
Police
Physical Arrests 3,038 2,941 2,345 2,282 2,992
Parking Violations 5,104 5,224 2,731 9,574 8,851
Traffic Violations 10,815 8,148 6,051 4,718 6,133
Fire
Emergency Responses 16,041 15,359 14,422 13,810 13,141
Fires Extinguished 418 472 524 451 362
Inspections 1,350 1,396 979 1,652 1,092
Public Works/Maintenance Services
Street Resurfacing (miles) 66 66 44 75 37
Street Lights Repaired 465 714 415 437 418
Potholes Filled (sq. ft) 31,474 38,930 20,204 46,850 22,332 Community Services - Recreation
Sportsfields Participation 539,450 568,496 404,679 370,799 269,168 Comm. Centers/Gym/Pool 29,069 31,832 28,393 111,007 169,888 Other Activity Participation 365,589 330,737 222,473 226,205 135,399 Community Services - Library
Volumes in Collection 209,144 209,357 210,747 183,794 165,760 Total Volumes Borrowed 1 336,749 5 280,958 182,733 284,375 411,592 4 Water
New Connections 146 309 634 389 511
Water Main Repairs 46 45 95 86 72
Average Daily Consumption
(millions of gallons) 24.7 32.1 33.2 31.2 30.2
Sewer
Average Daily Sewage Treatment
(millions of gallons) 12.2 12.6 12.8 12.6 14.275
Transit Services
Total Route Miles (round-trip) 47.7 47.7 47.7 47.7 47.7 Passengers
Fixed Route 120,272 95,892 76,645 100,186 118,366
Dial-A-Ride 38,141 22,673 13,386 39,989 52,580
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. 5 Total Volumes Borrowed increased due to being fine free and providing automatic renewals.

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
226
Function/Program 2018 2017 2016 1 2015 1 2014 1
Police
Physical Arrests 2,895 3,403 5,583 5,337 5,422
Parking Violations 6,228 4,993 3,974 4,098 4,119
Traffic Violations 9,024 11,896 12,132 11,133 11,147
Fire
Emergency Responses 13,041 12,981 12,112 11,263 11,131
Fires Extinguished 435 382 381 346 397
Inspections 2,726 1,934 1,966 1,757 2,217
Public Works/Maintenance Services
Street Resurfacing (miles) 51 39 41 72 72
Street Lights Repaired 495 1,045 1,342 846 598
Potholes Filled (sq. ft) 35,700 75,000 15,076 15,978 13,185 Community Services - Recreation
Sportsfields Participation 248,617 2 2,190,246 1,760,600 1,898,300 1,670,668 Comm. Centers/Gym/Pool 249,885 282,797 211,410 189,519 158,431 Other Activity Participation 171,679 226,294 244,430 232,264 244,593 Community Services - Library
Volumes in Collection 168,148 167,586 164,421 167,432 136,128 Total Volumes Borrowed 1 783,626 648,522 3 927,956 1,073,736 861,842 Water
New Connections 391 166 1,408 173 498
Water Main Repairs 36 69 78 84 49
Average Daily Consumption
(millions of gallons) 33.0 30.4 28.4 32.6 34.9
Sewer
Average Daily Sewage Treatment
(millions of gallons) 13.8 14.3 14.0 13.1 12.6
Transit Services
Total Route Miles (round-trip) 47.5 47.5 47.5 39.0 39.0 Passengers
Fixed Route 129,972 132,469 150,002 168,303 169,745
Dial-A-Ride 58,089 65,580 63,162 66,015 68,852
Fiscal Year
City of Corona
Schedule 17
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
227
2022 2022 2021 2020 2019 2018 2017 2016 2015 2014
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 67 71 65 62 68 65 55 59 59 53
Fire Stations 7 7 7 7 7 7 7 7 7 7
Streets
Streets and Alleys (miles) 464 464 463 444 408 408 406 403 404 403 Streetlights 1 14,976 14,976 15,117 15,117 12,380 12,380 12,587 12,059 12,022 11,888 Traffic Signals 191 191 191 190 188 184 182 179 173 170 Community Services - Recreation
Total Park Acreage 389 378 378 376 376 376 376 376 376 376 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) 734 736 736 736 719 697 687 683 694 681 Fire Hydrants 9,648 9,760 9,760 10,062 9,548 9,300 9,222 9,197 9,174 9,087 Storage Capacity 2
(millions of gallons) 55 55 55 52 52 52 51 51 51 51
Sewer
Sanitary Sewers (miles) 458 464 464 464 458 440 435 434 452 444 Storm Sewers (miles) 181 225 225 223 171 171 167 167 172 171 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 7 6 6
Dial-A-Ride 13 13 13 13 13 11 11 13 11 10
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
228