Agenda packet — Corona City Council, December 3, 2025 (part 5 of 7)

14 Disabilities (ADA) regulations or interpretations without full public notice and comment.
e) Support legislation that provides tax incentives for people who use public transit instead of a personal vehicle.
f) Oppose any legislation that diverts additional fuel tax from the City. g) Oppose any action that removes or allows the use of toll revenue from the commuting corridor.

Section 12. Human Resources and Risk Management: Foster a secure working environment for employees while effectively managing risks to safeguard our community and municipal operations. Enhance Employee Engagement and Development, promote a positive and inclusive workplace, ensure compliance and best practices, proactively manage risks, and ensure safety and health. a) Support maximum flexibility to local governments when contracting for services.
b) Support maximum flexibility for local government in contract negotiations. c) Support legislation that promotes efforts to advance workplace diversity, equity, and inclusion.
d) Oppose measures that reduce local control over employee relations issues or mandate new or enhanced local government employee benefits. e) Oppose measures that impose compulsory and binding arbitration with respect to employees.
f) Support efforts to maintain fiscal solvency regarding unfunded pension and retiree healthcare liabilities and efforts to decrease local costs. g) Support legislation and administrative efforts that provide clarity and flexibility in CalPERS workplace rules, including working after retirement and using contract service providers.
h) Support implementing and enforcing health and safety standards to protect employees and ensure a safe working environment.
i) Support health and wellness programs to support employees' physical and mental well-being, including access to health services and support for managing stress and work-related health issues.

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15 cost-effective methods of meeting posting requirements, including electronic and digital media.
c) Support legislation permitting a minority of council members to participate in c) meetings virtually without physical location postinglocation requirements, so long as a physical, in-person meeting quorum is present.

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City of Corona
20265 FINANCIAL PRIORITIES
The project summaries below outline the city’s top-priority funding requests in conjunction with the City’s Legislative Platform. Corona's funding categories include Community Services, Public Safety, Public Utilities, and Transportation.

COMMUNITY SERVICES PROJECTS Cost

1.1 City Park Revitalization Project $194m

1.2 Park Improvements $5.753m

1.3 Historic Civic Center Renovation $3.02.5m

1.4 Trails Construction *$5.516m
PUBLIC SAFETY Cost

2.1 Corona Wildfire Resilience Initiative $10.5m

2.2 Real-Time Information Center Technology (Police) $1m

PUBLIC UTILITIES Cost

3.1 PFAS Treatment Facilities (3 Sites) $14m

3.2 Water Reclamation Facility #1, Improvements and Expansion $35m

3.3 Sewer Main Replacement $4m
TRANSPORTATION Cost

4.1 Magnolia Avenue Widening at Temescal Wash $15m

4.2 State Route EB91 Improvements between I-15 and Pierce $31m *cost per trail

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Section 1. Community Services

1.1 City Park Revitalization Project
City Park, established in 1913, is Corona’s oldest park. This 20-acre park has historically consisted of a swimming pool, sports fields, playgrounds, and gathering areas for civic events. The park is in a disadvantaged area and has fallen into disrepair in recent decades. It has seen a high volume of homeless individuals and problems with crime. The City Park Revitalization Project was developed based on robust community engagement and identified key amenities that residents would like to see restored in the park.

The project will consist of a new aquatics center with recreation and competition-style swim amenities, a new community center to provide residents with recreational programming and fitness opportunities, a large community canvas to host large-scale events and sporting opportunities, a new splash pad, playgrounds, sports courts, and a skate park with an adjoining pump track. The total project construction cost is estimated at $100 million. However, this budget request is for specific park amenities: a splash pad, a children’s playground, and a pump track.
• Cost: Approximately $14 19 Million
• Lead Department: Community Services

1.2 Citywide Park Improvements
After a lengthy and robust community engagement process, the City of Corona adopted a new Parks & Recreation Master Plan (PRMP) in 2023 to guide the build-out of the City’s Park system for the next ten years and beyond. The plan identifies 3 priorities for 2024/25:

A. Shade structures. To address extreme heat during the spring and summer, the City seeks funding to install 8 shade structures over play and seating areas at Village, Stagecoach, Husted, Rimpau, Sierra Bella, River Road, Promenade, and Buena Vista parks to reduce sun exposure to children and caregivers. Throughout the public engagement process for the PRMP, shade was highlighted as a key need in Corona’s parks. The community also repeatedly identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the city’s park system; the city is seeking to install an additional splash pad at Promenade Park or Village Loop Park.

B. Dog Parks. Residents identified dog parks as one of the city's most desired outdoor recreation features. This budget request would allow the City to construct a formally designated, fenced-off leash dog park on the city's south side, which currently lacks this amenity.

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C. Splash Pads. Lastly, the City’s Parks & Recreation Master Plan (PRMP) identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the park system. Splash pads would provide the public with much-needed relief from the heat during the warmer months. This budget request would allow the City to construct a splash pad at a park on the east side of the City, which currently lacks this type of amenity.

After a lengthy and robust community engagement process, the City of Corona adopted a new Parks & Recreation Master Plan in 2023 to guide the build-out of the City’s Park system for the next ten years and beyond. The plan identifies 3 priorities for 2024/25:

A. Shade structures. To address extreme heat during the spring and summer, the City seeks funding to install 30 shade structures overplay and seating areas at Butterfield, Promenade, and Santa Ana parks to reduce sun exposure to children and caregivers. Throughout the public engagement process for the PRMP, shade was highlighted as a key need in Corona’s parks. The community also repeatedly identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the city’s park system; the city is seeking to install an additional splash pad at Promenade Park or Village Loop Park.

B. Dog Parks. Lastly, residents identified dog parks as one of the city's most desired outdoor recreation features. This budget request would allow the City to construct a formally designated, fenced-off leash dog park on the south side of the City, which currently lacks this type of amenity.
• Cost: Approximately $5.753 Million
• Lead Department: Community Services

1.3 Historic Civic Center Renovations
The Historic Civic Center, constructed in 1923, is currently used for recreation programming and is designated as Corona’s Center for the Arts. Due to its age, several significant infrastructure, safety, and technology improvements are needed to upgrade this historic structure to a modern standard. Proposed improvements include replacing the roof, rebuilding the outdoor breezeways, improving interior and exterior paint, improving lighting, upgrading theater technology, installing new doors and installing a marquee sign to advertise programs and events at the facility.

This project is also part of the City’s Downtown Revitalization Plan to enhance the beautification of the Sixth Street corridor.

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The Historic Civic Center, constructed in 1923, is currently used for recreation programming and is designated as Corona’s Center for the Arts. Due to the age of the building, several significant infrastructure, safety, and technology improvements are needed to upgrade this historic structure to a modern standard of use.

Proposed improvements include replacing the roof, rebuilding the outdoor breezeways, improving interior and exterior paint, improving lighting, upgrading theater technology, installing new doors, and installing a marquee sign to advertise programs and events at the facility. This project is also part of the City’s Downtown Revitalization Plan to enhance the beautification of the Sixth Street corridor.
• Cost: $32.5 million
• Lead Department: Community Services

1.4 Trails &Trailhead Construction
In 2023, the City completed a Trails Master Plan to guide the development of a trail system throughout Corona over the next 10 years and beyond. Funding is sought to implement the plan, including the following proposed trail segments:

A. The Rincon Street Multi-Use Trail: to help complete Phase II of the Santa Ana River Trail (SART) alignment. This trail connects directly to Stagecoach Park and can accommodate a SART trailhead. Due to the location of the Prado Dam and the Army Corps of Engineers' resistance to developing “river-adjacent” trail alignments, constructing this trail would be a strong first step in closing the SART gap in the City of Corona. Cost: $5.5 million
B. The Canyon Crest Connector comprises two trail segments connecting residential neighborhoods to local parks, schools, and retail shopping. Cost: $5.5 million C. The Public Safety Way Trail will connect Lincoln Avenue to North Cota Street via a flood control channel. Cost: 5 million
• Cost Per Trail: $5 - $5.5 million
• Total Project Cost: $16 million
• Lead Department: Community Services
In 2023, the City completed a Trails Master Plan to guide the development of a trail system throughout Corona over the next 10 years and beyond. Funding is sought to implement the plan, including the following proposed trail segments:

A. The Canyon Crest Connector comprises two trail segments connecting residential

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neighborhoods to local parks, schools, and retail shopping.

B. The Public Safety Way Trail: This trail will connect Lincoln Avenue to North Cota Street via a flood control channel.

C. The Rincon Street Multi-Use Trail: to help complete Phase II of the Santa Ana River Trail (SART) alignment. This trail connects directly to Stagecoach Park and can accommodate a SART trailhead. Due to the location of the Prado Dam and the Army Corps of Engineers' resistance to developing “river adjacent” trail alignments, constructing this trail would be a strong first step in closing the SART gap through the City of Corona.
• Cost: $16 million
• Lead Department: Community Services
Section 2. Public Safety

2.1 Corona Wildfire Resilience Initiative
Corona is confronted with ongoing and escalating wildfire threats, now exacerbated by climate change and the expansion of the wildland-urban interface. To fortify the community against this persistent danger, the city requires critical funding to support a comprehensive suite of mitigation, prevention, and education initiatives. Funding would enable the implementation of vital projects that align with the strategic priorities identified in the City’s Wildland-Urban Interface Hazard and Risk Assessment and the City’s Community Wildland Protection Plan. Proposed projects will include creating defensible spaces around properties, enhancing early detection systems, acquiring state-of-the-art firefighting equipment and launching community outreach programs to educate residents about wildfire readiness and resilient landscaping practices. • Cost: $1.5 million
• Lead Departments: Fire
Corona is confronted with ongoing and escalating wildfire threats, now exacerbated by climate change and the expansion of the wildland-urban interface. To fortify the community against this persistent danger, the city requires critical funding to support a comprehensive suite of mitigation, prevention, and education initiatives.

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Funding would enable the implementation of vital projects that align with the strategic priorities identified in the City’s Wildland-Urban Interface Hazard and Risk Assessment and the City’s Community Wildland Protection Plan. Proposed projects will include creating defensible spaces around properties, enhancing early detection systems, acquiring stateof-the-art firefighting equipment, and launching community outreach programs to educate residents about wildfire readiness and resilient landscaping practices. • Cost: $500,000
• Lead Departments: Fire

2.2 Real-Time Information Center Technology
The City recently installed and implemented a Real-Time Information Center in the City’s Police Department’s Headquarters to help improve emergency response times, decrease crime within the business districts, increase case closure rates, utilize technology to enhance community safety, and improve community collaboration.

Funding will specifically go towards purchasing artificial intelligence software and other leading-edge technology, so Corona PD's RTIC is a regional asset. This will help improve the solvability of crimes, improve response times, provide police officers with more accurate information while responding to crimes, and improve our ability to locate offenders that pose a danger to public safety.
• Cost: $1 Million
• Lead Department: Police
Section 3. Public Utility

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will allow the Utilities Department to produce additional potable water while complying with PFAS and TCP water quality standards for drinking water and wastewater discharge after use. This project will include the phase II conversion of the existing GACTP to a lead/lag configuration, increasing media life and making future media changeouts more convenient. At wells 7 and 8, new vessels will be constructed in a lead/lag configuration and designed to accommodate the well capacities.

• Cost: $14 million
•
• Lead Department: Utilities

3.2 Water Reclamation Facility #1, Improvements and Expansion To meet current and future water reclamation demands, the City proposes to complete upgrades at the WRF #1B treatment plant to increase capacity and improve treatment processes. Upgrades are expected to include new primary clarifiers, a conversion of the biological treatment process to fine bubble aeration, the addition of a third secondary clarifier, the installation of either a membrane bioreactor (MBR) process or downflow dual media filters, the expansion of the chlorine contact basin (CCB), and the construction of a fourth digester.
• Cost: $35 million
• Lead Department: Utilities

3.4 Sewer Main Replacement
This project replaces approximately 1,047 linear feet of 15-inch sewer pipe and 1,500 linear feet of 18-inch sewer pipes along Green River Road. The project also provides a cost-effective opportunity to install fiber conduit concurrently with the sewer main replacement. The existing sewer infrastructure in this corridor is aging and at increased risk of failure. Sewer line breaks, overflow events, and resulting road damage such as collapses or sinkholes can create significant environmental hazards, disrupt traffic and services, and require costly emergency repairs. Proactive replacement of these pipes is a necessary investment to maintain system reliability and protect public health and safety.

Coordinating fiber installation during this project follows a “dig-once” approach, leveraging the planned excavation to expand the City’s fiber network at a substantially reduced cost. This enhances future connectivity for City facilities and supports long-term economic and technological needs.

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• Cost: $4 million
• Lead Department: Utilities
Section 4. Transportation

4.1 Magnolia Avenue Widening at Temescal Wash
The City proposes to widen Magnolia Avenue between El Camino Avenue and All American Way from two to three lanes in each direction, including widening the bridge over Temescal Wash, to complete a gap in the City's transportation network. The existing roadway and bridge are under capacity and lack continuous pedestrian and bicycle infrastructure. This project will modernize Magnolia Avenue for all modes of transportation and provide improvements at railroad crossings, signal improvements, and other associated work. Additionally, this project will expand capacity and increase operational efficiencies and public safety within the City of Corona. • Cost: $5 million
• Lead Agency: City of Corona
The City proposes to widen Magnolia Avenue from El Camino Avenue and All American Way from two to three lanes in each direction, including widening the bridge over Temescal Wash, to complete a gap in the City's transportation network. The existing roadway and bridge are under capacity and lack continuous pedestrian and bicycle infrastructure. This project will modernize Magnolia Avenue for all modes of transportation and provide for improvements at a railroad crossing, signal improvements, and other associated work. Additionally, this project will expand capacity and increase operational efficiencies and public safety within the City of Corona.
• Cost: $15 million

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• Lead Agency: City of Corona

4.2 State Route EB91 Improvements between I-15 and Pierce The State Route EB91 Improvements project aims to reduce congestion and delays by expanding capacity along the SR-91 corridor from I-15 to Pierce Street. The City proposes implementing infrastructure improvements, including adding a fifth lane in each direction, auxiliary lanes at various locations, and collector-distributor lanes at the I-15/SR91 interchange. Additionally, the project will extend the 91 Express Lanes from the Orange County line to I-15, construct Express Lanes median direct connectors to and from I-15 North and South, and build one Express Lane in each direction from the I-15/SR91 interchange to Cajalco Road and east of McKinley Street. • Cost: $31 million
• Lead Agency: Riverside County Transportation Commission (RCTC) -End of Financial Priorities-
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1 2026
Legislative
Advocacy Platform

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2 Purpose
The City of Corona Legislative Platform (“the Legislative Platform”) aims to establish and adopt City Council policy positions on various State and Federal legislation.

Adoption of the Legislative Platform guides City officials in advocating City interests to Federal, State, and County governments, thereby precluding the need for the Council to take individual positions reactively on legislative issues that arise during the year.

Objective
The Legislative Platform aims to promote proactive, timely representation of Corona’s interests through education, effective advocacy, and legislation.

Implementation
The Legislative Platform will be implemented as follows:

1. The City Manager shall direct the scope and activities of any State and Federal lobbyist hired on behalf of the City, consistent with the Legislative Platform and other directions provided by the City Council.

2. On an annual basis, the City Manager will present a Legislative Platform outlining the City’s position on various legislative issues for the City Council's consideration and adoption.

3. The Mayor and City Council will be informed of any legislative activities, proposed State or Federal legislation, and other policy-related matters that may have a direct and significant impact on the City’s fiscal, operational, and environmental health and the overall quality of life enjoyed by residents and other stakeholders.

4. The Mayor and City Council may establish joint advocacy efforts with other entities, including the Chamber of Commerce, the Corona-Norco Unified School District, the County of Riverside, and other cities.

5. The Mayor and Council, through their involvement with the League of California Cities, Riverside County Transportation Commission, the Western Riverside Council of Governments, and Southern California Association of Governments, may communicate with lawmakers at the County, State, and Federal levels through correspondence, personal contact, or testimony.

6. Letters of Support
a. Staff may prepare letters of support or opposition consistent with the adopted position in the Legislative Platform for signature by the Mayor on behalf of the City without taking the letter to the full Council, so long as the position letter represents the City Council’s adopted position as stated in the legislative platform.

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3 b. Should the Mayor choose not to authorize their signature on a position letter, the Vice Mayor may sign in their stead. Where neither the Mayor nor Vice Mayor chooses to sign a position letter, the item will be placed on a meeting agenda for review and consideration by the full Council.
c. A summary of all position letters issued will be included in a regular Legislative update and distributed to the Council, outlining the need for them and citing the specific approved legislative policy used to expedite the city’s position.
d. In cases where a pending legislative proposal falls outside of the scope of the approved legislative platform, that item will be placed on a future council agenda for review and consideration by the full Council.

7. The Council has the option of adopting any one of 6 positions on proposed legislation:
a. Support - A support position indicates to the legislature, regulatory agencies, and other stakeholders that the City supports the legislation. b. Support if Amended - A support if amended position indicates to the corresponding legislature, regulatory agencies, and other stakeholders that the City supports the legislation if the requested changes are adopted.
c. Oppose—An opposed position indicates to the legislature, regulatory agency, and other stakeholders that the City opposes the legislation. d. Oppose Unless Amended—An oppose unless amended position indicates to the legislature, regulatory agencies, and other stakeholders that the City opposes the legislation in question unless the requested changes are adopted.
e. Neutral – A neutral position indicates to the corresponding legislature, regulatory agencies, and other stakeholders that the City is impartial on the legislation in question and does not wish to take a position or has formally removed their prior adopted position due to changes being made to the legislation or proposal (e.g., a bill that the City had an “oppose unless amended” position on was amended to address concerns, therefore the City is formally withdrawing its opposition and moving to a “Neutral” position).
f. Watch – A watch is traditionally an internal position that indicates the City is monitoring the legislation. Should the bill be amended, the City reserves the right to adopt a position as indicated above.

8. The Legislative Platform is not intended to limit the prerogative of individual Councilmembers from expressing their individual support for or opposition to any Local measure, State proposition, State or Federal legislation, or grassroots advocacy actions. However, in doing so, the Councilmember should clearly state that they are speaking for themselves, not on behalf of the Council or the City.

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4 Standing Legislative Platform
The Legislative Platform reflects the adopted, standing position of the City Council until superseded. The priorities are generally stated so they can be applied broadly to various legislative proposals. Advocacy efforts on behalf of the City by staff or Councilmembers are expected to reflect the adopted position of the Legislative Platform. However, this is not intended to limit the prerogative of individual Councilmembers from expressing their individual support for or opposition to any Local measure, State proposition, State or Federal legislation, or grassroots advocacy actions. However, in doing so, the members should clearly state that they are speaking for themselves, not on behalf of the Council or the City.

The Legislative Platform is divided into 12 sections dealing with the following topics:

1. Community Services

2. Economic Development

3. Home Rule

4. Housing Reform

5. Homelessness

6. Municipal Finance

7. Public Safety

8. Public Utilities

9. Tort Reform

10. Transportation

11. Unfunded Mandates

12. Human Resources and Risk Management

13. Municipal Communications
Section 1. Community Services: Support activities that enhance the quality of life for Corona residents through effective education programs, safeguarding community services and facilities, and promoting arts and culture.

1.1. Library
a) Support efforts that provide funding for additional library services, including staff costs.
b) Support efforts that provide funding for library print and electronic materials. c) Support efforts to enhance understanding of how libraries are integral to building and sustaining our communities.
d) Support efforts that fund library and Heritage Room services, including additional archival and digitization services and staff and equipment costs. e) Support efforts Support efforts that provide funding for library branch extension.

1.2. Parks & Recreation
a) Support recreation programs and events efforts, especially for youth and seniors.
b) Support efforts that provide funding for adaptive/special needs programming. c) Support efforts that provide funding for improving recreational facilities. d) Support efforts that fund renovating and maintaining existing parks and recreation facilities to provide more sustainable facilities and trails. e) Support legislation that would expand the regional trail system and increase active transportation options within the City.

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5 f) Support funding for trail projects that improve city connectivity and facilitate Cleveland National Forest access.
g) Support efforts that provide funding or reimbursement for volunteers and volunteerism.

Section 2. Economic Development: Support job creation, business attraction, and expansion to prosper Corona businesses and residents. Oppose legislative proposals or executive actions that hinder our community’s economic growth. a) Support efforts to grow the manufacturing industry.
b) Support efforts to retrain displaced/low-income workers. c) Support efforts to embrace living and working locally, particularly legislation that impacts housing costs and reduces greenhouse gas emissions. d) Support efforts to embrace innovation by seeding new businesses and linking new workers with new jobs and career pathways created by the pandemic. e) Support the creation of business incubators, such as the Corona Innovation Center, in partnership with local and regional partners that can lend expertise, resources, education, and access to capital.
f) Support efforts to embrace entrepreneurship by growing existing entrepreneurship tracks in Corona.
g) Support local Business Grants and California Dream Fund for those underrepresented and/or impacted by the pandemic, creating accessibility to capital and improving opportunities for innovation and entrepreneurship. h) Support legislation that promotes greater local jurisdiction flexibility with Surplus Land Act requirements relating to redevelopment, acquisition, or disposition of blighted commercial areas such as downtowns and older shopping centers.
i) Support initiatives that offer Vehicle Miles Exchange Travel Credit banking to residents and businesses to reduce driving and other vehicle miles traveled (VMT) reduction policies and programs.

Section 3. Home Rule: Preserve local governance and protect government revenue. a) Support efforts that allow local jurisdictions to operate under their police powers to reasonably control the use of property in the interest of the health, safety, and welfare of the community health, safety, and welfare. b) Oppose legislation that removes or limits local governments’ land use and development decisions.

Section 4. Housing Reform: Create a diverse, affordable, and sustainable housing environment that meets the needs of all residents while promoting responsible development and community well-being.
a) Support efforts that make affordable housing more attainable for local jurisdictions by providing financial resources or subsidies that are less competitive and do not require affordable housing developments to compete with one another.

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6 b) Oppose expanding State and Federal authority over local jurisdictions' housing and land use decisions.
c) Oppose penalties on a jurisdiction’s Housing Element, such as monetary fines issued by the state and withholding state public transportation (“gas tax”) monies to local jurisdictions that cannot meet their Regional Housing Needs Allocation (RHNA).
d) Oppose housing legislation that restricts a jurisdiction’s local discretion or eliminates the public engagement process for evaluating the impacts of housing developments.
e) Oppose housing legislation that does not consider the differences of local jurisdictions and imposes a “one size fits all” requirement. f) Support legislation that reconsiders the methodology used in allocating the Regional.
g) Housing Needs Assessment (RHNA), considering the extensive growth in California cities since the inception of this law.
h) Support legislation providing RHNA credit for preserving affordable housing units.
i) Support tax increment financing tools, including re-establishment redevelopment agencies or other permanent ongoing state funding sources to subsidize low and very low-income housing.
j) Oppose legislation that mandates the elimination of impact fees for affordable housing, thus removing a jurisdiction’s ability to negotiate with developers on pending projects.
k) Support legislation that includes manufactured homes as an affordable option for residents and provides protection from predatory landlords. l) Support State-mandated rent stabilization (like AB1035-Muratshuchi, 2023) for mobile home parks.
m) Support anti-displacement legislation that promotes and protects the ability of our City’s most vulnerable residents, seniors who are physically and/or developmentally disabled, to remain in the community, including tenant protection and anti-price gouging policies.
n) Oppose legislation that adds new procedural requirements to the CEQA process that imposes additional burdens and risks to public agencies.

Section 5. Homelessness: Support State legislation to strengthen local government’s ability to set local policies relating to homelessness. a) Support legislation to incentivize and maintain city investments in homeless programs.
b) Support legislation to permanently include the Homeless Housing, Assistance, and Prevention Program (HHAP) in the State Budget at a recommended $3 billion statewide level.
c) Support legislation and funding opportunities for the development of permanent supportive housing, including resources to finance the development of new units and resources to provide long-term sustainability

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7 for supportive services.
d) Support legislation and funding opportunities to increase Federal and State funding to prevent and reduce homelessness in Riverside County. e) Support legislation and funding opportunities for mental health and drug abuse treatment to address chronic homelessness in Riverside County. f) Support legislation and funding opportunities to improve discharge planning from jails and prisons and to expand re-entry housing programs to prevent and address homelessness among inmates, parolees, and probationers in Riverside County.

Section 6. Municipal Finance: Maintain a balanced budget and ensure that assets and resources are properly safeguarded and appropriated practically and efficiently. a) Support efforts that will protect the revenue base of local governments. b) Support efforts to redirect State and Federal tax dollars to the City of Corona. c) Support efforts that protect the ability of local governments to raise revenue responsibly.
d) Support efforts that allow the City to control operating costs for the City and its residents.
e) Oppose actions that will reduce the City of Corona revenues or limit the ability to raise revenue.
f) Support and monitor the lawful implementation of Proposition 1A, which was passed to protect local government finance.
g) Support state legislation and ballot measures that would authorize the City to lower the voter threshold to 55 percent for certain municipal bonds to fund the construction or rehabilitation of public infrastructure, including affordable housing.
h) Oppose legislation eliminating or redefining any development tax, fee, condition, or other monetary change.
i) Oppose legislation that promotes divestment and violates a fiduciary duty to manage risk effectively.

Section 7. Public Safety: Promote the general safety of all City residents. a) Support efforts that increase public safety within the City. b) Support efforts that fund or reimburse municipal public safety services. c) Support efforts to protect the health and safety of law enforcement officers and firefighters.
d) Oppose efforts that reduce funding dedicated to municipal public safety services.
e) Support legislation allowing cities to determine public safety service levels and services offered, from suppression staffing to Emergency Medical Services. f) Support emergency response funding initiatives that would support adequate local fire services and enhance the State’s ability to respond to major emergencies, including large-scale fires, rescues, and medical and hazardous materials incidents.

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8 g) Support legislation that enhances Emergency Management Program Capabilities to include core functions performed during emergencies and daily program functions.
h) Support efforts that provide State and Federal funding to augment our capabilities in the four phases of Emergency Management:

Preparedness, Response, Recovery, and Mitigation.
i) Support legislation that would allow for effective law enforcement and oppose legislation that hampers that process.
j) Support wildland fire initiatives, such as fire prevention, mitigation, and suppression.
k) Support efforts to lengthen felony sentences for repeat offenders of retail theft.
l) Support legislation that recognizes serious crimes as felonies, not misdemeanors.
m) Support legislation to charge those who possess illegal drugs with a felony. n) Support efforts to improve coordination between customers, regulators, government officials, and public safety partners during public safety shut-off (PSPS) events.
o) Support efforts to address the cancellation of fire or home insurance and rate increases for Corona residents by the State Insurance Commissioner due to natural disasters.
p) Support efforts to ensure fair market cost for fire insurance for the city’s residents.

Section 8. Public Utilities: Preserve the local rate-making authority of municipally owned utilities and promote voluntary compliance with CEC reporting.

8.1 General
a) Oppose regulations that affect publicly owned utilities that do not consider the cost of implementation.
b) Support efforts to provide penalties for theft of metal and other crimes that can harm or jeopardize the delivery and safety of the City’s water, sewer, and electric systems.
c) Support efforts to provide funding for potable reuse, drought relief, disadvantaged communities, Delta management and sustainability, water supply reliability, statewide water system improvements, groundwater protection, water quality improvements, water reclamation, water conservation, watershed protection, and water bond issues. d) Support Federal efforts to address long-term drought through newly established water supply or water capture programs that will benefit the City of Corona.
e) Support Federal and State funding for long-term low and no-interest loan programs that will enable utilities to replace aging infrastructure. f) Oppose legislation that would reduce the inverse condemnation standard for incidents caused by a utility, whether retroactive or otherwise, and support the City’s ability to recover applicable damages.

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9 8.2 Oppose legislation that imposes legal responsibility for PFAS on passive receivers such as water and wastewater utilities.

Water Supply
a) Support policies and principles that recognize and maintain the “co-equal” goals of water supply reliability and ecosystem enhancement for the California Delta.
b) Support the financing and construction of an alternative conveyance facility for the Delta to improve water supply reliability for the region and state. c) Support efforts to control and reduce imported water costs. d) Support the development of alternative water sources, such as desalinization plants and potable reuse, by streamlining the regulatory approval or permitting processes and providing funding for such projects. e) Support funding for planning and construction projects that provide for the sustainability of existing and future developments.
f) Support legislation and funding for projects that promote long-term regional water reliability.
g) Support funding for and create construction projects associated with reservoirs and dam-related projects that increase the storage volume to equal the required volume needed to meet the water supply volume needed for housing requirements mandated by the state.

8.3 Water Quality, Reclaimed Water and Greywater
a) Support water softener discharge and salinity management requirements to help maintain groundwater quality and reduce wastewater treatment costs. b) Support direct potable reuse of reclaimed water to help offset potable water use.
c) Support changes to the CEQA permitting process to help streamline the installation of reclaimed water lines within existing rights-of-way. d) Support the implementation of reasonable emergency requirements for water quality notifications to the public.
e) Support funding for water reclamation and advanced reclamation treatment technology projects.
f) Support policies that encourage science-based results for setting water quality standards.

8.4 Groundwater Management
a) Support voluntary groundwater monitoring regulations that maintain local control of groundwater supplies and management.
b) Support the increased use of stormwater and reclaimed water for groundwater recharge and storage funding for groundwater recharge basins.

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10 8.5 Water Conservation
a) Support efforts to maintain reasonable and area-specific conservation targets.
b) Oppose statewide water conservation targets that are a targeted one-sizefits-all effort. c) Support funding for stormwater recharge planning and projects. d) Support legislation that seeks to solve the water crisis through supply enhancement and diversification, such as local stormwater capture and stormwater capture, increased storage in existing and new reservoirs.

Simplify regulations to promote such actions and projects. e) Support funding for turf removal projects on sports fields and eliminate the watering of fields.

8.6 Electricity
a) Support efforts to stabilize electricity rates.
b) Support the expansion of direct access programs that give electric customers a choice and encourage competitive pricing.
c) Support efforts to consolidate electrical reporting requirements for the California Energy Commission, the California Public Utilities Commission, and the Department of Energy.
d) Support funding for solar power projects and other alternative energy sources. e) Oppose expanding State and Federal authority and controls on municipal facilities or operations.
f) Support legislation and rule-making that would allow small Publicly Owned Utilities (POU), supplying less than 200,000 MWh of energy per year, to meet Renewable Portfolio Standards (RPS) and other obligations through flexible options that consider small POU constraints.
g) Support standardizing open-source protocol for electric vehicle charging station networks.
h) Support monitoring mandatory Electric Utility grid reliability and resiliency requirements mandates.
i) Oppose mandatory electrification of vehicle fleets for utility companies within the water, sewer, and electric sectors.
j) Oppose legislation that promotes 100% electrification and seeks to find a balanced energy platform.

8.7 Biosolids
a) Support efforts that recognize the science-based benefits of recycling and using biosolids and promote the use of biosolids in industries such as agriculture and fuel production.

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11 Section 9. Tort Reform: Encourage efficient dispute resolution, limit excessive litigation costs, and protect public resources.
a) Support efforts to reform liability statutes to reduce City exposure to "deep pocket" claims.
b) Oppose expansion of liability for municipalities. Protect from erosion of the defenses.

Section 10. Unfunded Mandates: Support the empowerment of local control and flexibility; ensure accountability and fairness; support legislative and policy reform. a) Support efforts to increase cities' service delivery and funding flexibility. b) Oppose legislative actions that impose Federal or State mandates on cities without sufficient funding for implementation or reimbursement.

Section 11. Transportation: Cultivate a city with safe, appealing, and efficient motor and non-motor transportation infrastructure to attract and retain small and large businesses, new entertainment and recreation, and residents and support growth in the goods movement industry.

11.1 Regulation
a) Oppose legislation that would make the Endangered Species Act and Clean Water Act more restrictive on public projects.

11.2 Funding
a) Support efforts to provide State and Federal funding for local and regional transportation projects, especially those that increase the public safety capacity of State Route 91, Interstate 15, State Route 71, and the various interchanges and on/off ramps associated with those routes in the Corona area.
b) Support efforts to provide State and Federal funding for constructing alternate or additional transportation corridors.
c) Support efforts to provide State and Federal funding for grade separation or other upgrades of existing roadway grade crossings of the railroad corridor to establish a Quiet Zone throughout the City of Corona.
d) Support efforts to provide State and Federal funding to repair and upgrade aging bridges and transportation infrastructure.
e) Oppose efforts to eliminate and/or restrict the use of Riverside County State Improvement Transportation Funds, Federal Surface Transportation program, Measure A, or Gas Tax funding for local transportation projects. f) Oppose the State's efforts to divert Riverside County State Improvement Transportation Funds, the Federal Surface Transportation Program, Measure A, or Gas Tax funding sources to help pay for the State budget deficit.

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12 g) Support efforts to increase federal programs and funding to mitigate the environmental and traffic congestion impacts of national goods movement on Inland highways and grade crossings.
h) Oppose efforts by the State to divert Proposition 42 funding away from transportation projects to fund the State budget deficit. i) Support legislation safeguarding Corona’s fair share allocation of Proposition 84 funds.
j) Support legislation that provides funding for the construction of Phase 2 of the parking structure at the North Main Metrolink Station or any expansion or improvements to the Station.
k) Support truth in tolling initiatives.
l) Support the development of bank and exchange programs that build municipalities existing environmental mitigation efforts.

11.3 Transit
a) Advocate for Medicaid policies that promote transit use as Medicaid providers.
b) Support additional funding for transit operations, including services for people with disabilities and senior citizens.
c) Support for inter-county transit services to assist commuters between Riverside and Orange Counties.
d) Support legislation and grant programs encouraging transit ridership, active transportation, and congestion relief programs for western Riverside County.
e) Support partnering efforts with local and regional agencies to improve the coordination of transit services.

11.4 Rail
a) Support legislation that provides funding for improving and expanding commuter rail (Metrolink) services on the Inland Empire line. b) Support legislation implementing the statewide high-speed rail (HSR) system, including the segment from Los Angeles to San Diego via the Inland Empire, and light rail, which would increase intercity mobility from Corona and relieve traffic congestion through the Corona area. c) Oppose congressional efforts to prohibit federal funding from being utilized for the California HSR project.
d) Support the implementation of an HSR alignment and station in Corona. e) Support legislation that promotes transit-oriented development and transitadjacent development around rail transit stations while retaining local oversight and decision-making.
f) Support funding and planning of rail facilities along I-15 to support growth in Southwest County and lessen traffic impacts on the I-15 and Corona streets.

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13 11.5 Airport Infrastructure Safety
a) Support efforts that provide funding for repairs and renovation of the Corona Municipal Airport.
b) Support efforts to fund and complete the Santa Ana Regional Interceptor line to minimize impacts on Corona Municipal Airport due to flooding. c) Support funding for the Corona Municipal Airport security, lighting, and paving improvements.

11.6 Congestion
a) Support measures that lessen congestion and the wear and tear of Corona surface streets due to freeway “cut-through” traffic.
b) Support efforts to fund and promote bike trails and pedestrian paths as viable alternatives to driving.
c) Support efforts to provide State and Federal funding for future phases of the Advanced Traffic Management System (“ATMS”), which provides traffic signal synchronization and incident management.
d) Oppose any changes in Department of Transportation (DOT) Americans with Disabilities (ADA) regulations or interpretations without full public notice and comment.
e) Support legislation that provides tax incentives for people who use public transit instead of a personal vehicle.
f) Oppose any legislation that diverts additional fuel tax from the City. g) Oppose any action that removes or allows the use of toll revenue from the commuting corridor.

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14 g) Support legislation and administrative efforts that provide clarity and flexibility in CalPERS workplace rules, including working after retirement and using contract service providers.
h) Support implementing and enforcing health and safety standards to protect employees and ensure a safe working environment.
i) Support health and wellness programs to support employees' physical and mental well-being, including access to health services and support for managing stress and work-related health issues.

Section 13. Municipal Communications: Preserve local governance and allow effective and accessible communication and council participation. Uphold the principles of open government established by the Brown Act, ensuring that our residents are informed, involved, and engaged in the decision-making processes affecting their lives.
a) Support legislation that strengthens cities’ ability to foster civil and respectful participation in public meetings and provides tools to help legislative bodies address disruptive behavior, including hate speech, while protecting the public’s First Amendment rights.
b) Support amendments to the Ralph M. Brown Act that allow alternative and cost-effective methods of meeting posting requirements, including electronic and digital media.
c) Support legislation permitting a minority of council members to participate in meetings virtually without physical location requirements, so long as a physical, in-person meeting quorum is present.

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1 Revised 11/24/2025
City of Corona
2026 FINANCIAL PRIORITIES
The project summaries below outline the city’s top-priority funding requests in conjunction with the City’s Legislative Platform. Corona's funding categories include Community Services, Public Safety, Public Utilities, and Transportation.

COMMUNITY SERVICES PROJECTS Cost

1.1 City Park Revitalization Project $19m

1.2 Park Improvements $5.75m

1.3 Historic Civic Center Renovation $3.0m

1.4 Trails Construction *$5.5m
PUBLIC SAFETY Cost

2.1 Corona Wildfire Resilience Initiative $1.5m
PUBLIC UTILITIES Cost

3.1 PFAS Treatment Facilities (3 Sites) $14m

3.2 Water Reclamation Facility #1, Improvements and Expansion $35m

3.3 Sewer Main Replacement $4m
TRANSPORTATION Cost

4.1 Magnolia Avenue Widening at Temescal Wash $15m

4.2 State Route EB91 Improvements between I-15 and Pierce $31m *cost per trail

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2 Revised 11/24/2025
Section 1. Community Services

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3 Revised 11/24/2025
C. Splash Pads. Lastly, the City’s Parks & Recreation Master Plan (PRMP) identified splash pads as a key amenity that would help fulfill recreational needs and diversify and enhance recreation across the park system. Splash pads would provide the public with much-needed relief from the heat during the warmer months. This budget request would allow the City to construct a splash pad at a park on the east side of the City, which currently lacks this type of amenity. • Cost: Approximately $5.75 Million
• Lead Department: Community Services

This project is also part of the City’s Downtown Revitalization Plan to enhance the beautification of the Sixth Street corridor.
• Cost: $3 million
• Lead Department: Community Services

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4 Revised 11/24/2025
B. The Canyon Crest Connector comprises two trail segments connecting residential neighborhoods to local parks, schools, and retail shopping. Cost: $5.5 million C. The Public Safety Way Trail will connect Lincoln Avenue to North Cota Street via a flood control channel. Cost: 5 million
• Cost Per Trail: $5 - $5.5 million
• Total Project Cost: $16 million
• Lead Department: Community Services
Section 2. Public Safety

3.1 PFAS Treatment Facilities
PFAS and other “forever” chemicals are an increasing concern for consumers. To address this issue, the City proposes constructing a granular activated carbon (“GAC”) Treatment facility to remove PFAS and 1,2,3-TCP contaminants from groundwater. This will allow the Utilities Department to produce additional potable water while complying with PFAS and TCP water quality standards for drinking water and wastewater discharge after use.

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5 Revised 11/24/2025
This project will include the phase II conversion of the existing GACTP to a lead/lag configuration, increasing media life and making future media changeouts more convenient. At wells 7 and 8, new vessels will be constructed in a lead/lag configuration and designed to accommodate the well capacities.

• Cost: $14 million
• Lead Department: Utilities

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6 Revised 11/24/2025
Section 4. Transportation

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City of Corona 2
Council Ask
That the City Council review and provide feedback on the:
 2026 Legislative Platform
 2026 Financial Priorities and Policy Areas
 Appoint two Council Delegates for Legislative Advocacy Meetings

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City of Corona 3
The Legislative Platform is divided into 13 sections
2026 Legislative Platform
Two Additions:

Section 4. Housing Reform
 Oppose legislation that adds new procedural requirements to the CEQA process that imposes additional burdens and risks to public agencies.

Section 6. Municipal Finance
 Oppose legislation that promotes divestment and violates a fiduciary duty to manage risk effectively.
13 Sections:
 Community Services
 Economic Development
 Home Rule
 Housing Reform
 Homelessness
 Municipal Finance
 Municipal Communications
 Public Safety
 Public Utilities
 Tort Reform
 Transportation
 Unfunded Mandates

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City of Corona 4
2026 Financial
Priorities
• City Park Revitalization
• Citywide Park Improvements
• HCC Renovations
• Trails Construction
Community
Services
• Corona Wildfire Resilience
Initiative
Public Safety
• PFAS Treatment Facilities
• Water Reclamation Facility #1,
Improvements
• Sewer Improvements
Utilities
• Magnolia Avenue Widening
Public Works
Projects are listed in staff recommended ranking order Page 594 of 1013 City of Corona 5
Financial Priorities
Brief Discussion:

Does Council Have Any
Feedback on the 2026
Financial Priorities?

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City of Corona 6
g
Glance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
• Legislative Advocacy Approved by
Council
• State Legislature reconvenes
• Governor presents State Budget
proposal
• Position letters for new State bills
start • Policy Committees take place
• State Legislature recess (for one
month through the middle of
August)
• Last day for bills to be passed in the
Assembly and Senate
• City of Corona kicks-off review of the draft
Legislative Platform with Council
• Council reviews draft Legislative
Platform
• 2025 will be the first year of a two-year session
• Final day for new bills to be introduced
• State Capitol Legislative Days • Placeholder Budget Bill passed • Full Budget Package approved
• State Legislature reconvenes
• Final push for vote on pending
bills
• Last Day for Governor Newsom to
sign or veto bills approved by the
Legislature
• City Staff submits updates for the
draft Legislative Platform
• State Legislature recess first week
of September to the New Year

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Surplus Lands
Act
Remote
Meetings and
Teleconferencing
Truth in Tolls Public Records Act
2026 Continued City Sponsor Legislation

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FY 2026 City Sponsored Legislation
Seek legislation to exempt designated Downtown Core areas from the Surplus Lands Act. Amend Section 54221 of the Government Code to specify “exempt surplus land.” Surplus Lands Act 01
Amend Section 11133 and Section 54953 of the Government Code. This bill would require the agenda for an open meeting to identify any legislative body member who will participate in the meeting remotely.

Remote Meetings and Telecommuting 02
Display the estimated time saved next to the cost of the toll. Mandate electronic displays at toll collection points, giving drivers real-time information on toll rates and travel times. This measure addresses users' lack of awareness and enhances transparency in dynamic tolling practices.

Truth in Tolls 03
Potential plaintiffs must write to public agencies. They must wait 90 days before filing a suit, clearly describing the alleged PRA violation and demanding that the public agency cure/correct the violation.

Public Records Act 04

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Would the Council like to pursue any other sponsored
legislation?

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2026 Legislative
Outlook
Adopt the 2026 Legislative Platform in January 2026
New Leadership in Senate
Continued Collaboration With Regional and
Statewide Entities
Continued Declining State Revenues

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City of Corona 11
Council Ask
That the City Council review and provide feedback on the:
 2026 Legislative Platform
 2026 Financial Priorities and Policy Areas
 Appoint two Council Delegates for Legislative Advocacy Meetings

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12 Thank You

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DATE: 12/03/2025
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2025-467

REQUEST FOR SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY ACTION
SUBJECT:

RESOLUTION APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE

AND RESOLUTION APPROVING SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2026 THROUGH JUNE 30, 2027.

EXECUTIVE SUMMARY:

Pursuant to Health and Safety Code Section 34177(o)(1), the Successor Agency shall prepare an annual Recognized Obligation Payment Schedule (“ROPS”) listing the nature, amount, and source(s) of payment of all outstanding “enforceable obligations” of the dissolved Agency (as defined by law) to be paid or performed by the Successor Agency.

Pursuant to Health and Safety Code section 34177 (j), the Successor Agency is also required to prepare a proposed Administrative Budget. The Successor Agency’s annual ROPS and Administrative Budget have been prepared for the period of July 1, 2026, through June 30, 2027. There are no new enforceable obligations included in the ROPS for Fiscal Year 2027 that were not included in the previously adopted ROPS.

RECOMMENDED ACTION:

That the Successor Agency to the Redevelopment Agency:
a. Adopt Resolution No. 2025-001, approving and adopting a Recognized Obligation Payment Schedule for the period of July 1, 2026, through June 30, 2027 pursuant to Health and Safety Code Section 34177(o)(1).

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b. Adopt Resolution No. 2025-002, approving and adopting a Successor Agency Administrative Budget for the period of July 1, 2026, through June 30, 2027 pursuant to Health and Safety Code Section 34177(j).

BACKGROUND & HISTORY:

Per Assembly Bill 1x 26, the Redevelopment Agency was dissolved effective February 1, 2012. Assembly Bill 1x 26 and subsequent legislation, Assembly Bill 1484, set forth procedures and requirements for the dissolution and wind-down of redevelopment agencies within the State of California. The City of Corona elected to serve as the Successor Agency to the former Redevelopment Agency (“Successor Agency”). Health and Safety Code Section 34173 provides that successor agencies are designated as successor entities to wind down the operations of the redevelopment agencies, dispose of their assets, and pay their debts and obligations. The Successor Agency is vested with all authority, rights, powers, and duties of the former Redevelopment Agency, including the ongoing administration related to enforcing pre-existing enforceable obligations and managing the wind-down of the Redevelopment Agency’s affairs.

ANALYSIS:

Property tax revenues that would have been distributed to the Redevelopment Agency before dissolution are deposited by the County Auditor-Controller into a Redevelopment Property Tax Trust Fund (“RPTTF”) created in the County Treasury for each dissolved redevelopment agency. The County Auditor-Controller administers the RPTTF and disburses biannually from this fund an amount equal to the approved enforceable obligations and administrative cost allowance requested on the Successor Agency’s ROPS. The remaining property tax revenues are distributed back to the affected taxing entities by the County Auditor-Controller. Affected taxing entities include the City, County, special districts, school, and community college districts.

Pursuant to Section 34177 and 34180(g) of the Health and Safety Code, the Successor Agency will submit the ROPS and Administrative Budget to the Countywide Oversight Board for its approval. Upon approval by the Countywide Oversight Board, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the California State Controller and the State of California Department of Finance (“DOF”) by February 1, 2026, and post the Approved ROPS on the Successor Agency’s website.

In accordance with the law, staff recommends that the Successor Agency’s ROPS and Administrative Budget for Fiscal Year 2027 be approved and submitted.

FINANCIAL IMPACT:

The actions to adopt the Resolutions approving the Successor Agency’s ROPS and Administrative Budget for the period of July 1, 2026, through June 30, 2027, do not have a fiscal impact on the City of Corona. The ROPS lists outstanding obligations of the dissolved Agency that are to be paid by the Successor Agency with property tax increment revenues. Upon approval by DOF, the County of Riverside will disperse funding from the Redevelopment Property Tax Trust Fund to the Successor Agency in Fiscal Year 2027.

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The appropriations for the Successor Agency’s Fiscal Year 2027 budget will be approved during the City’s annual budget process.

ENVIRONMENTAL ANALYSIS:

This action is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the adoption of the resolutions may have a significant effect on the environment, the action is not subject to CEQA. This action merely adopts the ROPS and Administrative Budget for Fiscal Year 2027, and there is no possibility that adopting the above resolutions will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: CHRISTINE THOMPSON, CPA, CGFM, CPFO, ACCOUNTING

MANAGER
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – Resolution No. 2025-001

2. Exhibit 2 – Resolution No. 2025-002

3. Exhibit 3 - Resolution No. 2025-001 Exhibit A

4. Exhibit 4 - Resolution No. 2025-002 Exhibit A

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RESOLUTION NO. 2025-001

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF CORONA,

CALIFORNIA, APPROVING AND ADOPTING A

RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR
THE PERIOD OF JULY 1, 2026 THROUGH JUNE 30, 2027

PURSUANT TO HEALTH AND SAFETY CODE SECTION
34177(o)(1)
WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Corona (“Successor Agency”) is the successor agency to the dissolved Redevelopment Agency of the City of Corona (“Agency”); and
WHEREAS, Health and Safety Code Section 34179(j) provides for the appointment of a countywide oversight board (the “Countywide Oversight Board”) with specific duties to approve certain Successor Agency actions pursuant to Section 34180 of the Health and Safety Code and to direct the Successor Agency in certain other actions pursuant to Section 34181 of the Health and Safety Code; and
WHEREAS, Health and Safety Code Section 34177(o)(1) requires the Successor Agency to prepare a “recognized obligation payment schedule” listing outstanding obligations of the Agency to be performed by the Successor Agency during the time period from July 1, 2026, through June 30, 2027 (“ROPS”); and
WHEREAS, Health and Safety Code section 34177(l)(2) requires the Successor Agency to submit a copy of the ROPS to the county administrative officer, the county auditor controller, and the Department of Finance at the same time that the Successor Agency submits the ROPS to the Countywide Oversight Board for its approval; and WHEREAS, upon approval by the Countywide Oversight Board, the Successor Agency is required to submit a copy of the approved ROPS (“Approved ROPS”) to the California State Controller and the State of California Department of Finance, and post the Approved ROPS on the Successor Agency’s website; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY

TO THE REDEVELOPMENT AGENCY OF THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:

SECTION 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

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SECTION 2. CEQA Compliance. The approval of the ROPS through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act.

SECTION 3. Approval of ROPS. The Successor Agency hereby approves the ROPS in substantially the form attached to this Resolution as Exhibit A, pursuant to Health and Safety Code Section 34177.

SECTION 4. Transmittal of ROPS. The City Manager, acting on behalf of the Successor Agency, is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding preparation of the ROPS, including submitting the ROPS to the Riverside County Auditor-Controller, the County Administrative Officer for Riverside County, the Department of Finance, and the Countywide Oversight Board, and following approval of the ROPS by the Countywide Oversight Board, submitting the Approved ROPS to the California State Controller and the State of California Department of Finance, and posting the Approved ROPS on the Successor Agency’s website.

SECTION 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency declares that the Successor Agency would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

SECTION 6. Certification. The City Clerk or his or her designee, acting on behalf of the Successor Agency, shall certify to the adoption of this Resolution.

SECTION 7. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 3rd day of December 2025.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

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CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, serving as the Successor Agency to the dissolved Redevelopment Agency of the City of Corona, California, at an adjourned regular meeting thereof held on the 3rd day of December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 3rd day of December 2025.

City Clerk of the City of Corona, California
(SEAL)

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EXHIBIT A

RECOGNIZED OBLIGATION PAYMENT SCHEDULE
[SEE ATTACHED FOUR (4) PAGES]

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RESOLUTION NO. 2025-002

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF CORONA,

CALIFORNIA, APPROVING AND ADOPTING

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR
THE PERIOD OF JULY 1, 2026 THROUGH JUNE 30, 2027

PURSUANT TO HEALTH AND SAFETY CODE SECTION
34177(j)
WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Corona (“Successor Agency”) is the successor agency to the dissolved Redevelopment Agency of the City of Corona (“Agency”); and
WHEREAS, Health and Safety Code Section 34179(j) provides for the appointment of a countywide oversight board (the “Countywide Oversight Board”) with specific duties to approve certain Successor Agency actions pursuant to Section 34180 of the Health and Safety Code and to direct the Successor Agency in certain other actions pursuant to Section 34181 of the Health and Safety Code; and
WHEREAS, pursuant to Health and Safety Code section 34177(j), the Successor Agency is required to prepare an administrative budget for the period of July 1, 2026 through June 30, 2027 and submit the administrative budget to the Countywide Oversight Board for approval; and
WHEREAS, pursuant to Health and Safety Code section 34177(k), upon approval of the administrative budget by the Countywide Oversight Board, the Successor Agency is required to provide administrative cost estimates, from the approved administrative budgets, that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County of Riverside Auditor-Controller for the fiscal period covered by the administrative budget.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF

THE CITY OF CORONA, CALIFORNIA, SERVING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CORONA, AS FOLLOWS:

SECTION 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2. CEQA Compliance. The approval of the proposed administrative budget through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act.

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SECTION 3. Approval of Proposed Administrative Budget. The Successor Agency hereby approves and adopts the proposed administrative budget for July 1, 2026 through June 30, 2027, in substantially the form attached to this Resolution as Exhibit A, as required by Health and Safety Code Section 34177.

SECTION 4. Transmittal of Proposed Administrative Budget. The City Manager, acting on behalf of the Successor Agency, is hereby authorized and directed to take any action necessary to carry out the purposes of this Resolution and comply with applicable law regarding the proposed administrative budget, including submitting the proposed administrative budget to the Countywide Oversight Board, and upon its approval of the administrative budget, the provision of administrative cost estimates, from the approved administrative budget, that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County of Riverside Auditor-Controller.

SECTION 6. Certification. The City Clerk or his or her designee, acting on behalf of the Successor Agency, shall certify to the adoption of this Resolution.

SECTION 7. Effective Date. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 3rd day of December 2025.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

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AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 3rd day of December 2025.

City Clerk of the City of Corona, California
[SEAL]

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EXHIBIT A

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET
[SEE ATTACHED ONE (1) PAGE]

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Successor Agency: Corona
County: Riverside
A $ 363,867 7,031,824 $ 7,395,691 $

B - - -
C 363,867 7,031,824 7,395,691

D - - -
E $ 4,223,467 5,043,867 $ 9,267,334 $
F 4,148,467 4,968,867 9,117,334
G 75,000 75,000 150,000
H Current Period Enforceable Obligations (A+E): $ 4,587,334 12,075,691 $ 16,663,025 $ Name Title
/s/
Signature Date
Administrative RPTTF
Certification of Oversight Board Chairman:

Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency.

Enforceable Obligations Funded as Follows (B+C+D):

RPTTF
Redevelopment Property Tax Trust Fund (RPTTF) (F+G):

Bond Proceeds
Reserve Balance
Other Funds
Recognized Obligation Payment Schedule (ROPS 26-27) - Summary Filed for the July 1, 2026 through June 30, 2027 Period 26-27A Total
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 26-27B Total
(July - December) (January - June) ROPS 26-27 Total

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A B C D E F G H I J K L M N O P Q R S T U V W
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$ 34,743,433 $ 16,663,025 $ 0 $ 7,031,824 $ 0 $ 4,968,867 $ 75,000 $ 12,075,691 $ 0 $ 363,867 $ 0 $ 4,148,467 $ 75,000 $ 4,587,334 2 2007 Tax Allocation
Bonds- Merged Dwntwn
Bonds
Issued On or
Before
12/31/10
11/1/2007 9/1/2027 Bank of New
York
Bond issue to fund
projects according to the
Redevelopment Plan.

Merged Project
Areas
12,697,372 N $ 12,899,690 5,822,739 3,437,317 $ 9,260,056 202,317 3,437,317 $ 3,639,634 3 2007 Tax Allocation
Bonds- Temescal Cyn
Bonds
Issued On or
Before
12/31/10
1/1/2007 11/1/2032 Bank of New
York
Bond issue to fund
projects according to the
Redevelopment Plan.

Merged Project
Areas
9,357,560 N $ 2,763,735 1,209,085 696,550 $ 1,905,635 161,550 696,550 $ 858,100 5 Fiscal Agent
Fees
Fees 7/1/2024 6/30/2025 Bank of New
York
Fees in association with
TAB accounts
Merged Project
Areas 6,200 N $ 6,200 $ - 6,200 $ 6,200
6 Continuing Disclosure
Fees
Fees 7/1/2024 6/30/2025 Willdan Financial SContinuing Disclosure Fees- TABs
Merged Project
Areas 7,500 N $ 7,500 $ - 7,500 $ 7,500
7 Consultant Fees Fees 7/1/2024 6/30/2025 Willdan Financial SArbitrage Calculations
Merged Project
Areas 900 N $ 900 $ - 900 $ 900
8 Skypark OPA OPA/DDA
Construction
10/20/2010 11/7/2037 Rexco LLC Tax Increment
Reimbursement
Merged Project
Areas 973,863 N $ 260,000 260,000 $ 260,000 $ -
13 Corona N Main
Development OPA

OPA/DDA
Construction
1/18/2011 7/18/2032 Corona North MainTax Increment
Reimbursement
Merged Project
Areas 6,447,288 N $ 575,000 575,000 $ 575,000 $ -
23 Affordable Housing
Agreement

OPA/DDA
Construction
4/1/2006 4/1/2061 KDF Corona, LP (WAffordable Housing
Project
Merged Project
Areas 0 N $ - $ - 0 $ -
57 Administration
Allowance
Admin Costs 7/1/2026 6/30/2027 Various Agency staff, office supplies, postage,
phones, equipment
maintenance, legal
(OB/SA), auditors, cost
allocation, etc.

Merged Project
Areas
150,000 N $ 150,000 75,000 $ 75,000 75,000 $ 75,000
19-20A Total
26-27B (January - June)
Fund Sources Fund Sources 26-27B Total
Corona Recognized Obligation Payment Schedule (ROPS 26-27) - ROPS Detail July 1, 2026 through June 30, 2027
Item
#
Project Name/Debt
Obligation
Obligation
Type
Contract/Ag
reement
Execution
Date
Contract/Agre
ement
Termination Date
Payee
Description/Project
Scope Project Area
Total Outstanding
Debt or
Obligation
Retired ROPS 19-20
Total
26-27A (July - December)

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A B C D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued on or
before 12/31/10
Bonds issued on or
after 01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained
for future period(s)
Rent,
Grants,
Interest, etc.

Non-Admin
and
Admin
1 Beginning Available Cash Balance as of 07/01/23
RPTTF amount should exclude "A" period distribution amount 133,177 1,826,920 4,668,594 16,891 304,793
RPTTF Beginning Balance includes PPA unspent
fund in the ROPS 20-21 period $301,589 and
$3,204 Retention Held from a prior year's
expense.
2 Revenue/Income
RPTTF amount should tie to the ROPS 23-24 total distribution from the County Auditor-Controller
7,394,235 6,305,623
3 Expenditures for ROPS 23-24 Enforceable Obligations
16,891 5,999,386 4,046,961
4 Retention of Available Cash Balance (Actual 06/30/24) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)
3,421,558 RPTTF wired to Fiscal Agent for 2025 Bond Year 5 ROPS 23-24 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 23-24 PPA form submitted to the CAC
227,305
Moved $227,305 of unspent funds in the ROPS
23-24 period to RPTTF Reserve Balance ending
cash balance to be allocated to ROPS 26-27
obligations
6 Ending Actual Available Cash Balance (06/30/24)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) $ 133,177 1,826,920 $ 4,974,831 $ 0 $ 3,204 $ No entry required
Corona Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet.

Fund Sources
Comments
Bond Proceeds
ROPS 23-24 Cash Balances
(07/01/23 - 06/30/24)

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Item # Notes/Comments
2 Reserve Balance: Bond principal/interest payments funded by RPTTF received from ROPS 25-26 will be applied to Fall 2026 payment (26-27A period); Bond interest payments funded by RPTTF received from ROPS 26-27A will be applied to Spring 2027 payment (26-27B period); RPTTF Non-Admin: Funds will be sent to Fiscal Agent in February 2027 and reserved for 2027 Bond year payments (26-27B and 27-28A). 3 Reserve Balance: Bond principal/interest payments funded by RPTTF received from ROPS 25-26 will be applied to Fall 2026 payment (26-27A period); Bond interest payments funded by RPTTF received from ROPS 26-27A will be applied to Spring 2027 payment (26-27B period); RPTTF Non-Admin: Funds will be sent to Fiscal Agent in February 2027 and reserved for 2027 Bond year payments (26-27B and 27-28A). 5 Estimated expense based on historical annual expenses 6 Estimated expense based on historical annual expenses 7 Estimated expense based on historical annual expenses 8 Estimated expense- Payment amount dependent on assessed values of project Outstanding obligation includes interest accrued through 6/30/2026. Estimated expense- Payment amount dependent on assessed values of project; 13 57 Requesting less than the minimum $250K due to reduced admin expenses.

Corona Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027

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ROPS 26-27A ROPS 26-27B ROPS 26-27
Expenditure Category: Jul 1- Dec 31 Jan 1- Jun 30 Total FY Successor Agency Staff 42,000 $ 42,000 $ 84,000 $
Cost Allocation/Overhead/Facilities 20,000 20,000 40,000 Materials, Services and Supplies 500 500 1,000
Legal Counsel- Successor Agency 2,500 2,500 5,000
Auditor- Successor Agency 10,000 10,000 20,000
Total Administrative Budget: $ 75,000 $ 75,000 $ 150,000

SUCCESSOR AGENCY OF THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF CORONA

ADMINISTRATIVE BUDGET
Fiscal Year 2026-27 (July 1, 2026 to June 30, 2027)

EXHIBIT A

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DATE: 12/03/2025
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2025-468

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RECEIVE AND FILE THE AUDITOR’S REPORTS RELATED TO THE FISCAL YEAR 2025 ANNUAL FINANCIAL AUDITS, AUDITOR’S COMMUNICATION, ANNUAL

COMPREHENSIVE FINANCIAL REPORT, DEVELOPMENT IMPACT FEES ANNUAL

REPORT, AND ANNUAL REPORT ON VOTER APPROVED DEBT FOR FISCAL YEAR EXECUTIVE SUMMARY:

This staff report asks the City Council to receive and file the annual reports and the auditor’s reports for Fiscal Year 2025. The auditors have issued an unmodified opinion on the City’s financial statements for the fiscal year ending June 30, 2025. An unmodified opinion concludes that the City's financial statements are presented fairly, in all material respects, and in accordance with generally accepted accounting principles.

RECOMMENDED ACTION:

That the City Council:
a. Receive and file the following annual reports:
i. Annual Comprehensive Financial Report of the City of Corona for the fiscal year ended June 30, 2025.
ii. Trip Reduction Fund Audit Report for the fiscal year ended June 30, 2025. iii. Development Impact Fees (AB1600) Annual Report for the fiscal year ended June 30, 2025.

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iv. Report on Voter Approved Debt for the fiscal year ended June 30, 2025. b. Receive and file the following auditor’s reports:
i. Auditor’s Report on Applying Agreed-Upon Procedures to Appropriations Limit Schedule for the fiscal year ended June 30, 2025. ii. Auditor’s Report on Applying Agreed-Upon Procedures to Investments for the month ended June 30, 2025.
iii. Auditor’s Report on Compliance with Applicable Requirement and on Internal Control over Compliance for the Housing Successor for the fiscal year ended June 30, 2025.
iv. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements, dated November 25, 2025.
c. Receive and file the Auditor’s Communication letter to the City Council from the City’s audit firm, The Pun Group, LLP, dated November 25, 2025.

BACKGROUND & HISTORY:

The Annual Comprehensive Financial Report (ACFR) of the City of Corona is mandated by State law, and in accordance with City of Corona Municipal Code §2.04.060(G). Each fiscal year, a complete report of the finances and administrative activities of the City is prepared and submitted to the City Council. The report package includes the following items: ACFR, Trip Reduction Fund Audit Report, Housing Successor Compliance Report, and reports on the City’s Appropriations Limit and Investment Portfolio. The reports must be audited by an independent auditor using generally accepted government auditing standards. The audited ACFR is part of the City’s Bond covenants, and many of the items are required to be presented in a public meeting, acknowledging receipt by the City Council.

The City contracted with an independent audit firm, The Pun Group, LLC (TPG), to perform the annual audit for the fiscal year ending June 30, 2025. The audit and year-end process have been completed, and the package with the auditor’s reports on the City’s financials and compliances is presented for review and filing. The independent audit of the City’s financial statements is also 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 the 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.

ANALYSIS:

The following reports are included in the review package and are attached to this report:

Annual Comprehensive Financial Report (ACFR)
The ACFR is a set of financial statements to communicate the City’s financial condition and activity, prepared in compliance with the accounting requirements established by the Governmental Accounting Standards Board (GASB). The report presents historical and

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comparative information useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City’s residents.

The ACFR must be audited by an independent auditor using generally accepted government auditing standards. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and related notes. The audit procedures depend on the auditor’s judgment, including assessing the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the City’s preparation and fair presentation of the financial statements to design audit procedures appropriate to the circumstances. Limited procedures such as inquiry of management and comparing the information for consistency were applied to the Required Supplemental Information, which is not part of the basic financial statements and not required to be audited according to Government Auditing Standards, were noted as unaudited. The audit also includes evaluating the appropriateness of the City’s accounting policies, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial
statements.

TPG has issued an unmodified opinion of the City’s financial statements for the fiscal year ended June 30, 2025. An unmodified opinion concludes that the City's financial statements are presented fairly, in all material respects, and in accordance with generally accepted accounting principles. The ACFR is also a required component of continuing disclosure to City bondholders as covenanted by certain bond issues.

The ACFR consists of three main sections: Introductory, Financial, and Statistical.

1. Introductory Section. The Introductory Section includes the Letter of Transmittal prepared by management and used to communicate information on areas that may impact the City’s finances now and in the future. This includes economic factors as well as budget and management factors.

2. Financial Section. The Financial Section is the main part of the annual report and includes the following items:
a. Independent Auditor’s Report - the City’s report card on the content of the ACFR.
b. Management Discussion and Analysis (MD&A) - provides an analytical overview of the City’s financial status and results for the year. c. Basic Financial Statements - reports finances at a point in time (assets - liabilities) and throughout the year (revenues - expenditures) and cash flows. i. City-wide Statements - overview of financial information, including all the City’s operations by financial activity.
ii. Fund Financial Statements - a detailed look at funds, reporting the Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance.

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iii. Notes to the Financial Statements (Notes) - a narrative explanation that accompanies the Basic Financial Statements.
d. Budget to Actual Comparisons - for all governmental funds with a legally adopted budget.
e. Notes to Required Supplementary Information.
f. Pension Information - schedule of changes in the net pension liability and related ratios; schedule of contributions by plan.
g. Other Post-Employment Benefits (OPEB) Information - schedule of changes in the net OPEB liability and related ratios and schedule of contributions. h. Breakout of individual non-major funds.

3. Statistical Section. The Statistical Section provides data on the following current and historical topics:
a. Financial Trends
b. Revenue Capacity Information
c. Debt Capacity Information
d. Demographic and Economic Information
e. Operating Information
ACFR Highlights:

Statement of Net Position (Citywide): The Statement of Net Position, like a balance sheet, reports total assets and liabilities of the City. The total net position of the City for all activities was $1,550.3 million at June 30, 2025, compared to $1,444.0 million at June 30, 2024. The increase of $106.3 million, or 7.3%, was primarily due to revenues exceeding expenses.

General Fund Balance: The General Fund is the primary operating fund of the City. The fund balance decreased by $0.3 million for the fiscal year ended June 30, 2025, with an ending balance of $398.9 million, primarily due to excess expenditures over revenues.

Business-Type Activities: The City’s net position in the business-type activities increased by $22.6 million compared to the previous year. The primary contributor to the increase was excess revenues over expenses. The overall net position reported in the businesstype activities was $366.0 million as of June 30, 2025.

Cash and Investments: The ACFR also includes detailed information on the City’s cash and investments. As of June 30, 2025, the City had $583.9 million in total cash and investments, all of which are in the form of investments authorized by the California Government Code and the City’s investment policy, or in compliance with bond indenture agreements. More information on cash and investments can be found in Note 3 of the ACFR.

Trip Reduction Fund Audit Report
The Trip Reduction Fund Audit Report is prepared each fiscal year for the Air Quality Improvement Trust Fund for the City of Corona. The account was formed in 1993 to account for allocations made by AB 2766, known as the Clean Air Act. The revenue

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provides means and incentives for programs to reduce traffic and air pollution. The report is provided in compliance with AB 2766.

Development Impact Fees Report (AB1600)
The Annual Report of Developer Impact Fees (DIF) has been prepared as required by Government Code Section 66006, also known as AB1600. The City reports each developer fee in a separate fund and has met the requirements of AB1600 in each of its DIF funds. In all cases, the City has complied with the time limit for expenditures of fees.

No fees have been refunded because of noncompliance, and no refunds are pending from any DIF fund.

Voter Approved Debt
The Annual Report on Voter Approved Debt is prepared and submitted in compliance with Government Code Section 53411. A local agency must file a report with its governing body no later than January 1st of each year after the bonds have been issued and at least once a year thereafter. The annual report includes (1) the amount of funds expended and (2) the status of any project required or authorized to be funded as identified in subdivision (a) of Government Code Section 50075.1 and Section 53410.

Auditor’s Reports
The Auditor’s Report on Agreed-Upon Procedures Applied to Appropriations Limit is provided for the fiscal year ended June 30, 2025. The procedures are presented in the publication Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution. The auditor performed the procedures to meet the requirements of Section 1.5 of Article XIII-B. No exceptions were noted as a result of the auditor’s procedural review.

The Auditor’s Report on Agreed-Upon Procedures Applied to the Investment Portfolio Report is provided for the month ended March 31, 2025. The auditor conducted the procedures to comply with the provisions of the California Government Code and the City’s investment policy dated July 3, 2024. No exceptions were noted as a result of the auditor’s procedural review.

The Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements, dated November 25, 2025, is provided. TPG has audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. Within the scope of the review, the auditor did not identify any deficiencies in internal controls.

The Auditor’s Report on Compliance with Applicable Requirement and on Internal Control over Compliance for the Housing Successor has been prepared and will be submitted in

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accordance with the requirements of Senate Bill No. 341. Within the scope of its review, the auditor did not identify any deficiencies in internal controls.

Auditor’s Communication letter to the City Council
The auditor’s communication letter to the City Council provides an overview of the audit process and specific items reviewed throughout the project. Based on professional accounting standards, there is specific information that must be communicated to the governing board related to the audit, including Qualitative Aspects of Accounting Practices, Corrected and Uncorrected Misstatements, Disagreements with Management, Management Representations, Management Consultations with Other Independent Accountants, Other Audit Findings, and New Accounting Standards. Based on the auditor’s communications letter, the financial statement disclosures are neutral, consistent, and clear, there are no material misstatements detected as a result of the audit procedures. The auditors did not encounter any significant difficulties in dealing with management in performing or completing the audit. There are no disagreements with management regarding accounting, reporting, or auditing, that arose during the audit.

FINANCIAL IMPACT:

There is no financial impact associated with the approval of recommended actions as it is related to receiving and filing the auditor’s reports and various annual financial reports.

The fees for the City’s annual financial audit services are provided for in the annual operating budgets of the General Fund, the Utilities Department’s funds, and various special revenue and debt service funds.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the receipt and filing of the various annual financial reports, communication from the City’s auditor, and other compliance reports may have a significant effect on the environment, the action is not subject to CEQA.

PREPARED BY: CHRISTINE THOMPSON, CPA, CGFM, CPFO, ACCOUNTING

MANAGER
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – City of Corona ACFR - FY2025

2. Exhibit 2 – Trip Reduction Fund Audit Report - FY2025

3. Exhibit 3 - AB1600 Report - FY2025

4. Exhibit 4 - Annual Report on Voter Approved Debt - FY2025

5. Exhibit 5 - Appropriations Limit AUP - FY2025

6. Exhibit 6 - Investment Portfolio AUP - FY2025

7. Exhibit 7 - Report on Internal Controls - FY2025

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8. Exhibit 8 - Housing Successor Compliance Report - FY2025

9. Exhibit 9 - Audit Communication Letter - FY2025

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CALIFORNIA
Annual
Comprehensive
Financial Report

YEAR ENDED
JUNE 30, 2025

CALIFORNIA
Annual
Comprehensive
Financial Report

YEAR ENDED
JUNE 30, 2025

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&$/,)251,$
$118$/ &2035(+(16,9(),1$1&,$/5(3257
)RUWKH)LVFDO<HDU(QGHG-XQH
Prepared by the City of Corona )LQDQFH Department

Page 627 of 1013 ends

City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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 Auditor’s 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

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City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule:

General Fund ................................................................................................................................................. 121 Development Special Revenue Funds ........................................................................................................... 122 Other Grants & Endowments Special Revenue Fund .................................................................................... 123 Notes to the Budgetary Comparison Schedule ................................................................................................... 124 Modified Approach for City Streets Infrastructure Capital Assets ................................................................... 126 Schedule of Changes in Net Pension Liability and Related Ratios:

California Public Employees’ Retirement System Defined Pension Plan – Miscellaneous Plan .................. 128 California Public Employees’ Retirement System Defined Pension Plan – Safety Police Plan ................... 130 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 ....................... 132 Schedule of Contributions – Pensions:

CalPERS Miscellaneous ................................................................................................................................ 134 CalPERS Safety Plan – Police ....................................................................................................................... 136 CalPERS Safety Plan – Fire .......................................................................................................................... 138 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios:

Other Postemployment Benefits (“OPEB”) Plan .......................................................................................... 140 Schedule of Contributions – Other Postemployment Benefits (“OPEB”) Plan ............................................... 142

Supplementary Information:

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

Low Mod Income Housing Asset Capital Projects Fund .............................................................................. 147 Other Grants Capital Projects Fund ............................................................................................................... 148 Nonmajor Governmental Funds:

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

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

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City of Corona
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
iii
Page
Supplementary Information (Continued):

Nonmajor Enterprise Funds:

Combining Statement of Net Position ........................................................................................................... 169 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 170 Combining Statement of Cash Flows ............................................................................................................ 171 Internal Service Funds:

Combining Statement of Net Position ........................................................................................................... 174 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 176 Combining Statement of Cash Flows ............................................................................................................ 178 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ................................................................................................................ 183 Financial Trends:

Net Position by Component ................................................................................................................................. 184 Changes in Net Position ....................................................................................................................................... 186 Fund Balances – Governmental Funds ................................................................................................................ 190 Changes in Fund Balances – Governmental Funds .............................................................................................. 192 Revenue Capacity:

Water Sales by User Type .................................................................................................................................... 194 Assessed Value and Actual Value of Taxable Property ....................................................................................... 195 Potable Water Rates ............................................................................................................................................. 196 Reclaimed Water Rates ........................................................................................................................................ 197 Direct and Overlapping Property Tax Rates ........................................................................................................ 198 Principal Water Customers .................................................................................................................................. 199 Principal Property Tax Payers .............................................................................................................................. 200 Property Tax Levies and Collections ................................................................................................................... 201 Debt Capacity:

Ratios of Outstanding Debt by Type .................................................................................................................... 202 Ratios of Net General Bonded Debt Outstanding ............................................................................................... 204 Direct and Overlapping Governmental Activities Debt ....................................................................................... 205 Legal Debt Margin Information ........................................................................................................................... 208 Pledged Revenue Coverage.................................................................................................................................. 210 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................. 212 Principal Employers ............................................................................................................................................. 213 Operating Information:

Full-Time Equivalent City Governmental Employees by Function/Program ...................................................... 215 Operating Indicators by Function/Program .......................................................................................................... 216 Capital Asset Statistics by Function/Program ...................................................................................................... 218

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iv Page 631 of 1013
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, 2024
Executive Director/CEO
v

Page 632 of 1013 ends

Page 633 of 1013 ends

December 3, 2025
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, 2025. 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, 2025. 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

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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 159,157 as of January 2025 and ranked 35th largest among all cities in California. City limits cover approximately 39.9 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 next election cycle in November 2026 will cover District 1, 4, and 5. The City Manager is appointed by the City Council to manage the City’s operations.

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.
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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 51,567 households averaging 3.11 persons each, with a median age of 36 and the average household income of $128,065. Since 2024, 83.8% of the population age 25 and up possess a high school diploma or higher and 33.5% of the population age 25 and up possess a bachelor’s degree or higher. Median home prices in Corona is $780,000, continue to be more affordable than Orange, San Diego, and Los Angeles Counties.

The City of Corona continues to maintain its position as the premier location for businesses looking to relocate and expand. Corona’s geographic position attracts a highly educated and sought-after labor force. Current vacancy rates have decreased in 2025. Industrial vacancy rates increased to 6.4%, retail vacancy rates decreased to 5.5%, and office vacancy rates decreased to 6.2% .

The City of Corona is currently in the process of revitalizing the downtown area, with targeted redevelopment across 6th and Main Street. “The Hub”, previously known as the South Corona Mall, has two new restaurant tenants and will have several more tenant types in the coming year to create a thriving, vibrant downtown. The parking lot was completely renovated, and lighting, branding, and wayfinding signs are currently underway. The City is also currently in the planning stages of an entertainment/food hall type concept that will be located at The Hub. Ultimately, the city aims to breathe life back into the downtown core, known as “The Circle,” and strives to create a sense of place and gathering for the community. In the coming years, the City will also be redeveloping the North Corona Mall. With majority ownership across an expansive site, the city of Corona is currently working on a wholesale mixed-use redevelopment that will encompass residential, retail, and restaurants.

New business expansions and relocations to Corona have helped to stabilize Corona’s job market. Job growth and employment in Corona increased to 85,600 in the first quarter of fiscal year 2026 in comparison to 85,200 at the end of fiscal year 2025. Major contributors to local economic growth are the construction, health care, and financial industries, in addition to the fast growing professional, manufacturing and technology sectors in previous years. Job growth will continue to be fueled by commercial and industrial development.

Fiscal Year 2025 continued to see an expanding housing market with increased median home prices and average rents for multi-family communities. The last two remaining Phases 3 and 4 of the Bedford Communities are currently under construction. Once completed, there will be a total of 546 attached and detached condominium homes on a total of 85.51 acres.

With limited opportunities for large-scale new development, Corona continues looking for opportunities to redevelop and expand currently underutilized properties. In prior years, the City had offered tax abatement programs to attract businesses to further economic development agendas and community improvement goals. Those programs stimulated economic growth, attracted investment, and facilitated job creation.

Through its ongoing commitment to stimulate the local economy and expand its labor force, the City of Corona will continue to be the premier inland Southern California city to live, work, and play. ix

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City of Corona Letter of Transmittal
Financial Condition of the City
Nationwide, the economy has seen consumption growth increase from 2.4% to 3% over the last year. There was a minor change in local spending from the prior year, with a reduction of 3.1%, but it remains steady.

The national unemployment rate was 4.1% at the end of Fiscal Year 2025 and increased slightly to 4.3% in the first quarter of Fiscal Year 2026. The California unemployment rate remained steady at 5.8% at end of Fiscal Year 2025 and 5.8% in the first quarter of Fiscal Year 2026. Local unemployment is headed towards a decline, from 4.9% at the end of Fiscal Year 2025 to 4.7% in the first quarter of Fiscal Year 2026.

Although rates remain high, the local labor market has performed well relative to the State, home building has picked up, and home prices continue to remain more affordable relative to neighboring counties. However, improving national economic performance does not directly translate to improved financial conditions for local governments, nor does it necessarily open opportunities to fund additional services. For instance, a rise in home prices does not directly correlate to the City collecting more in property taxes. Under Proposition 13, property tax is capped at 1.0%, and the property’s taxable value cannot increase more than 2.0% per year. Simultaneously, the increase in fixed costs for operating city government has consistently outpaced revenue growth. In December 2016, CalPERS announced the reduction of the discount rate from 7.5% to 7.0% phased in over three years, effective Fiscal Year 2019. Subsequently, the CalPERS Board of Administration adopted a new amortization policy, effective with the June 30, 2019 actuarial valuation, shortening the amortization period for actuarial gains and losses from 30 years to 20 years with a level dollar payment structure. Additionally, the policy removed the 5-year ramp-up and ramp-down on unfunded accrued liability (UAL) bases related to assumption changes and non-investment gains/losses. These changes apply to new UAL bases established on or after June 30, 2019. In July 2021, the discount rate was further reduced from 7% to

6.8%, and has been kept the same since then, lowering the system’s funded status to approximately 80%, with an anticipated increase in normal cost rates and the Unfunded Accrued Liability balance.

The significant rise in non-discretionary costs places considerable pressure on the City’s revenuegenerating capacity, compounded by state policies that continue to shift responsibilities to cities without the necessary funding. These policies drive up costs in law enforcement, public safety, and other essential services, making it more challenging to maintain the expected service levels for residents. Revenue growth must match or exceed expense growth to ensure fiscal sustainability and maintain service standards.

Sales tax was previously the second-largest revenue source for the City. However, with the introduction of Measure X, the 1% sales tax measure effective as of July 2021, sales tax has now become the largest General Fund revenue source. Taxable retail sales totaled $5.2 billion in Calendar Year 2024, an increase of approximately 1.1% from the previous year. Consumer spending in Fiscal Year 2025 reflects decreases in fuel and service stations based on lower crude oil prices, business and industry, and the general consumer goods categories. There were also increases in the restaurants/hotels, and food and drugs categories. The City’s diversified sales tax base remains robust and well-diversified. x

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City of Corona Letter of Transmittal
Source: HdL Companies
Note: Beginning FY 2022, includes Measure X, 1% sales tax measure effective July 2021 xi

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City of Corona Letter of Transmittal
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 2025, was $30.0 billion, representing an increase of 6.8% from the previous year.

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, xii

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City of Corona Letter of Transmittal
without the necessary funding is taking priority over spending on essential services and adding significant demands for additional locally-controlled revenue.

The City has been consistently demonstrating strong fiscal stewardship by proactively responding to the impact of the broader state-wide pension situation that is often times described as grim. This proactive stewardship includes contributing additional funds toward the City’s unfunded pension liability with CalPERS. In October 2021, the City issued Pension Obligation Bonds (POB) which are estimated to save $166 million over the next 20 years. In addition, the City Council adopted a Pension Management Policy and established an irrevocable Section 115 Trust, also known as the Pension Stabilization Trust. There was an initial contribution of $30 million, with an additional $6.1 million in FY2024, and $2.7 million in FY2025. 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 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 2025 were $41.3 million, greatly surpassing the initial estimates. The City maintains a healthy General Fund reserve level, following best practices established by the Government Finance Officers Association (GFOA).

This commitment to fiscal stewardship did not go unnoticed by the rating agencies. In September 2021, the 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 September 2025, S&P affirmed the credit rating for the City’s Wastewater Revenue Bond at “AA+”, and affirmed a “AA” rating for the Water Revenue Bond. 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, 2025, the Emergency Contingency Reserve balance was $53.9 million. xiii

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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 xiv

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City of Corona Letter of Transmittal
(ACFR) for the fiscal year ended June 30, 2024. This was the 35th consecutive year that the City has received this prestigious award. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

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

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

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

Respectfully submitted,
Jacob Ellis Kim Sitton
City Manager Finance Director
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xvi

CITY OF CORONA
Elected Officials and Executive Management
JIM STEINER .................................................................................................... Mayor JACQUE CASILLAS ................................................................................. Vice Mayor TOM RICHINS ................................................................................... Councilmember WES SPEAKE .................................................................................... Councilmember TONY DADDARIO ............................................................................. 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.................................................................Community Services Director JOEL BELDING............................................................Economic Development Director VACANT ...................................................................... Chief Communications Officer SAVAT KHAMPHOU ..................................................... ............Public Works Director CHRIS MCMASTERS ..........................................................Chief Information Officer TOM MOODY.........................................................................................Utilities Director ROBERT NEWMAN ............................................................................. Chief of Police LORI SASSOON .......................................................................... Chief Talent Officer KIM SITTON ........................................................................................Finance Director BRIAN YOUNG ........................................................................................... Fire Chief Elected Officials
Executive Management

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.-•, cityof
corona
Citizens of Corona
I
I I
City Council
Jim Steiner, Mayor
Jacque Casillas, Vice Mayor City Treasurer
Tom Richins, Council Member Chad Willardson, City Treasurer Tony Daddario, Council Member
Wes Speake, Council Member
I I
Dean Derleth Jacob Ellis
City Attorney/LRM City Manager's Office
I
I I
Justin Tucker Karen Roper Brett Channing Housing and Homeless Assistant City Manager Solutions Assistant City Manager I I
Joel Belding Chris McMasters Donna Finch
Economic Development Information Technology Community Services I I
Lori Sassoon Brian Young Kim Sitton
Human Resources Fire Department Finance
I I
Joanne Coletta Robert Newman Savat Khamphou
Planning & Development Police Department Public Works
I
Sylvia Edwards Tom Moody
City Clerk Utilities
Vacant
Communications
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xviii Page 645 of 1013
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S 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 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, 2025, 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, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Page 2 ends

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

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

In performing an audit in accordance with 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, 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.

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

Page 3 ends

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report November 25, 2025, 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 25, 2025

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5 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Fiscal Year Ended June 30, 2025
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, 2025, 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, 2025 comply with all applicable statements issued by the Governmental Accounting Standards Board (GASB). GASB Statement No. 101, “Compensated Absences”, replaces GASB 16, was implemented in Fiscal Year 2025. The objective of GASB Statement 101 is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The City aligned the recognition and measurement of compensated absences with the unified model and amended certain previously required disclosures. The implementation created a more consistent model for accounting that can be applied to all types of compensated absence arrangements.

Government-Wide
 The City’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2025 by $1,550.3 million (net position).  The overall City’s net position increased by $106.3 million from the previous fiscal year, primarily due to revenues exceeding expenses. Total assets increased by $84.9 million, total liabilities decreased by $39.7 million, combined with a decrease in deferred outflows in the amount of $33.6 million, and a decrease in deferred inflows in the amount of $15.0 million, primarily due to Pension and Other Post Employment Benefits related items, net position of the City saw an increase of 7.4% from the prior year.
 Total expenses for governmental activities were $243.4 million for Fiscal Year 2025. The sources for these expenses came from program revenues of $108.2 million, taxes in the amount of $184.0 million, and other general revenue of $35.1 million. For the current year, revenues from governmental activities exceeded expenses by $83.9 million, net position for governmental activities increased to $1,184.3 million.

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City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6  For business-type activities, total revenues exceeded expenses by $22.6 million. Among the total program revenue of $137.9 million, $131.3 million was from charges for services, $3.3 million from operating contributions and grants, and the remaining $3.3 million represents capital contributions and grants. Net position for business-type activities increased to $366.0 million.

Fund Based
 The City’s governmental funds reported a combined ending fund balance of $504.2 million, a decrease of $39.3 million from the previous year. The net decrease was primarily due to the current year’s expenditures exceeding revenues. Among the total fund balance, $363.5 million, or 72.1% is either non-spendable or restricted for specific purposes. In addition, $61.8 million was committed by the City Council, including $53.9 million as an emergency contingency, and $7.9 million as designated revenues. There was $90.1 million assigned to specific City programs and projects. Please refer to Note 14 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.

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City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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 special taxes, and assessments districts. 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).

Page 652 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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 $106.3 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, $1,313.6 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.

Among the remaining amount of government-wide net position, $48.9 million is unrestricted, and $187.7 million is restricted for capital projects, debt payments, and/or special programs such as transportation and special assessment district improvements.

Page 653 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 The graph below illustrates the various components of the City’s net position at fiscal year ended June 30, 2025.

Net Investment in
Capital Assets

84.7%
Restricted for
Capital Project

2.8%
Restricted for
Pension

3.5%
Restricted for Debt
Service

0.1%
Restricted for
Community
Development
Projects

0.4%
Restricted for
Transportation and
Public Works

2.3%
Restricted for
Special Assessment
District

1.9%
Restricted for
Development
Projects

1.2%
Restricted for Other
Purposes or
Unassigned

3.2%
City of Corona Net Position
June 30, 2025

Page 654 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 The schedule below is a condensed version of the City’s statement of net position for fiscal year ended June 30, 2025 with comparative data from the previous fiscal year:

City of Corona's Net Position
(in millions)
Governmental activities Business-type activities Total
2025 2024 2025 2024 2025 2024
Current and other assets 502.4 $ 500.7 $ 188.6 $ 185.2 $ 691.0 $ 685.9 $ Internal balances 169.9 169.5 (169.9) (169.5) - -
Capital assets 940.9 873.1 446.5 434.5 1,387.4 1,307.6
Total assets 1,543.3 1,613.2 465.2 450.2 2,078.4 1,993.5 Deferred charges on refunding 0.3 0.4 - - 0.3 0.4
Deferred pension related items 56.5 90.7 5.5 8.1 62.0 98.8 Deferred OPEB related items 27.9 25.0 3.8 3.4 31.7 28.4 Total deferred outflows 116.1 84.7 9.3 11.5 94.0 127.6
Long-term debt 208.7 220.8 62.7 68.9 271.4 289.7
Net pension liability 65.1 70.5 8.2 7.7 73.3 78.2
Net OPEB liability 80.2 82.5 11.0 11.3 91.2 93.8
Other liabilities 119.9 129.9 20.8 24.7 140.7 154.6
Total liabilities 503.7 473.9 102.7 112.6 576.6 616.3
Deferred pension related items 19.6 34.5 - 0.1 19.6 34.6 Deferred OPEB related items 7.7 9.4 1.1 1.3 8.8 10.7
Deferred charges on refunding bonds - - 0.7 0.7 0.7 0.7 Lease 12.4 10.9 4.0 3.6 16.4 14.5
Total deferred inflows 54.8 39.7 5.8 5.7 45.5 60.5
Net investment in capital assets 908.8 845.3 404.8 387.6 1,313.6 1,232.9 Restricted 186.0 170.2 1.7 1.9 187.7 172.1
Unrestricted 89.4 85.2 (40.4) (46.2) 49.0 39.0
Total net position $ 1,100.7 1,184.3 $ 366.0 $ 343.3 $ 1,550.3 $ 1,444.0 $

Page 655 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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
2025 2024 2025 2024 2025 2024
Revenues:

Program Revenues:

Charges for Services 27.2 $ 35.9 $ 131.3 $ 119.1 $ 158.5 $ 155.0 $ Operating Contributions and Grants 54.5 45.6 3.3 9.3 57.8 54.9 Capital Contributions and Grants 26.5 26.1 3.3 2.8 29.8 28.9 General Revenues:

Taxes:

Property Taxes 69.1 63.3 - - 69.1 63.3
Sales and Use Taxes 98.6 97.7 - - 98.6 97.7
Other Taxes 16.3 15.2 - - 16.3 15.2
Gain on sale of capital assets - - - - - -
Investment Earnings 25.7 21.7 8.4 7.5 34.1 29.2
Other Income 9.4 9.0 - - 9.4 9.0
314.5 327.3 146.3 138.7 473.6 453.2
Expenses:

General Government 60.1 55.8 - - 60.1 55.8
Public Safety - Fire 33.3 36.7 - - 33.3 36.7
Public Safety - Police 69.0 70.2 - - 69.0 70.2
Public Works & Maintenance Services 41.6 45.3 - - 41.6 45.3 Community Services 21.9 21.7 - - 21.9 21.7
Planning and Development 9.9 11.1 - - 9.9 11.1
Economic Development 1.0 1.4 - - 1.0 1.4
Interest and Fiscal Charges 6.4 6.2 - - 6.4 6.2
Water - - 70.4 68.3 70.4 68.3
Sewer - - 36.2 36.5 36.2 36.5
Electric - - 12.8 15.7 12.8 15.7
Transit Services - - 3.8 3.4 3.8 3.4
Airport - - 0.4 0.2 0.4 0.2
Total Expenses 243.4 248.4 123.6 124.1 366.8 372.5
Excess (Deficiency) of Revenues
Over (Under) Expenses 83.9 66.1 22.6 14.5 106.8 80.7
Transfers (0.1) - 0.1 - - -
Special Items - - - - - -
Change in Net Position 83.8 66.1 22.7 14.5 106.8 80.7
Net Position - Beginning of Year 1,100.7 1,034.6 343.3 328.8 1,444.0 1,363.4 Restatement (0.3) - - - (0.3) -
Net Position - End of Year $ 1,100.7 1,184.3 $ 366.0 $ 343.3 $ 1,550.3 $ 1,444.1 $ Total Revenues
City of Corona's Changes in Net Position
(in millions)

Page 656 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Governmental Activities
Total resources available during the year for governmental operations were $1,428.1 million. This amount consists of a beginning net position of $1,100.7 million, program revenues of $108.2 million, and general revenues of $219.1 million. Total uses in governmental activities during the year is $243.4 million. The net position for governmental activities increased by $83.9 million to $1,184.3 million as of June 30, 2025.

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
2021 2022 2023 2024 2025
Amount (in millions)
Fiscal Year
Revenues and Expenses - Five-Year Trend
Governmental Activities
Revenues Expenses
$0
$10
$20
$30
$40
$50
$60
$70
$80
Amount (in millions)
Program Revenues and Expenses - Governmental Activities Year Ended June 30, 2025
Expenses Program Revenues

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City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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, 2025 was $243.4 million. As shown in the statement of activities, the amount the taxpayers ultimately funded for these activities was $184.0 million, $35.1 million was funded by investment earnings and other income, and the remaining was paid by various program revenues, including $27.2 million by those who directly benefited from the programs, $54.5 million from other governments and organizations that subsidized certain programs with operating grants and contributions, and $26.5 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, 2025 and June 30, 2024, respectively. $-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
Taxes Charges for
Services
Operating
Contributions &
Grants
Capital
Contributions &
Grants
Investment
Earnings
Other
Amount (in millions)
Revenue Sources - Two-Year Comparison
Governmental Activities
2025 2024

Page 658 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Highlights of the major revenue sources and expenses are listed below:
 Program revenues represent 33.1% of total revenues generated by governmental activities. Total program revenues for governmental activities in the current year were $108.2 million, an increase of $0.6 million from the previous year, primarily due to the increase in capital contributions and grants compared to the prior year.
 Total tax revenues were $184.0 million for the current year, showing an increase of $7.8 million from the previous year. Compared to the prior year, property tax revenues increased by $5.8 million, sales and use tax revenues increased by $0.9 million, and other taxes increased by $1.1 million.  Taxes comprised 56.2% of the total revenues from governmental activities, Sales and use tax revenue represents 53.6% of total taxes, whereas property tax revenue ranked second sharing 37.6% of total tax revenue. The remaining 8.9% were comprised of franchise fee, business license tax, transient occupancy tax, and dwelling development fee.
 Overall governmental expenses decreased by $5.0 million from the prior year, primarily due to a decrease of spending in capital projects.
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
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
2025 2024

Page 659 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
15 Business-Type Activities
The City’s net position in the business-type activities increased by $22.6 million. The primary contributor to the increase was excess revenues over expenses. The overall net position reported in the business-type activities was $366.0 million as of June 30, 2025.

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
2021 2022 2023 2024 2025
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, 2025
Expenses Program Revenues

Page 660 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
16 Total expenses of all business-type activities for the fiscal year ended June 30, 2025, was $123.6 million, representing a decrease of $0.5 million from the previous year. The total program revenue reported for the year was $137.9 million. As shown in the statement of activities, the amount paid by users of the systems was $131.3 million, reported as charges for services. Revenues from operating grants and contributions were $3.3 million, and capital grants and contributions were $3.3 million.

Total resources available during the year for business-type activities were $489.6 million. This amount consists of the beginning net position of $343.3 million, combined with total program revenues of $137.9 million, and investment earnings of $8.4 million. After funding total expenses of $123.6 million, the net position for business-type activities increased by $22.6 million to $366.0 million at June 30, 2025.

Compared to the prior year, the total expenses decreased by $0.5 million, primarily due to the decrease in costs of electric purchase. Revenues increased by $7.6 million, mainly due to the increase in charges for services.

FUND FINANCIAL ANALYSIS
General Fund
The General Fund is the primary operating fund of the City. Fund balance decreased by $0.3 million for the fiscal year ended June 30, 2025, with an ending balance of $406.2 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 14 in the accompanying financial statements.

FY 2025 FY 2024 FY 2023
Fund Balances:

Nonspendable 180.2 $ 181.1 $ 181.3 $
Restricted 54.9 46.5 35.4
Committed 61.8 58.4 52.9
Assigned 82.2 88.3 77.0
Unassigned 19.8 24.9 18.6
Total Fund Balance 398.9 $ 399.2 $ 365.2 $
City of Corona's General Fund Fund Balance
Three-Year Trend Information
(in millions)

Page 661 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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, 2025 and June 30, 2024 is presented below:

Property Taxes

27.5%
Sales and Use Tax
Other Taxes 39.3%

5.9%
License, Fees and
Permits

1.1%
Fines, Penalties &
Forfeitures

0.4%
Investment Earnings

8.0%
Intergovernmental

3.0%
Current Services

5.8%
Payment in Lieu of
Services

3.1%
Other

6.0%
General Fund Revenues
Year Ended June 30, 2025
$-
$20
$40
$60
$80
$100
Amount (in millions)
General Fund Revenues - Two-Year Comparison
2025 2024

Page 662 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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, 2025 and June 30, 2024 is presented below:

General Government

22.0%
Public Safety

38.0%
Public Works and
Maintenance Services

2.1%
Community Services

7.3%
Planning and
Development

3.7%
Economic
Development

0.4%
Capital Outlay

16.3%
Debt Service

10.1%
General Fund Expenditures
Year Ended June 30, 2025
$0
$20
$40
$60
$80
$100
$120
Amount (in millions)
2025 2024
General Fund Expenditures - Two Year Comparison

Page 663 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
19 Overall General Fund revenues increased by $13.7 million or 5.8%, compared to the previous year. Property taxes revenue increased by $4.1 million, driven by increase in property value. Investment earnings increased by $4.3 million due to higher interest rates in Fiscal Year 2025 and intergovernmental revenues increased by $3.7 million, mainly due to grants received from the Federal and State for capital projects.

General Fund expenditures were $251.6 million, an increase of $48.6 million compared to the previous year. Capital outlay was increased by $27.9 million, mainly due to increased activities in capital projects, including $25.2 million for the purchase of land. Public safety expenditures increased by $8.2 million, mainly due to increased personnel expenditures of $4.2 million and GASB 68 pension expenditure entry of $1.8 million. General government expenditures increased by $8.6 million, mainly driven by an increase of $2.5 million in GASB 75 other post-employment benefit adjustment, $3.2 million increase in professional and contractual services, and a $1.1 million increase in insurance premiums.

Other Major Governmental Funds
The Development Special Revenue Fund reported a fund balance of $18.1 million, a decrease of $0.7 million from the prior year, primarily due to increased capital outlay.

The Low/Mod Income Housing Asset Capital Project Fund reported a fund balance of $40.7 million, an increase of $1.3 million from the previous year. The fund balance includes $22.1 million in cash and investments, $0.7 million in accounts receivables, $2.8 million in land held, $6.8 million loan receivables, and long-term receivables in the amount of $8.3 million from various developers.

Other Grants Capital Project Fund has a negative fund balance of $21.3 million, mainly due to the timing in receiving the grant funding from Federal and State agencies for the major street project Mckinley Grade Separation. The deficit will be eliminated when the reimbursement is received in the future year.

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, 2025, net capital assets totaled $940.8 million for governmental activities, and $446.4 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.

Page 664 of 1013 ends

City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
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, 2025, was 71. 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 $40.3 million on street maintenance during the current fiscal year. These expenditures delayed deterioration and maintained the street condition from the previous assessment. The City has estimated that the amount of annual expenditures required to maintain the current average PCI rating of 71 through the year 2026 is a minimum of $11.0 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
2025 2024 2025 2024 2025 2024
Land 107.9 $ 89.3 $ 5.7 $ 5.7 $ 113.6 $ 95.0 $
Streets 225.8 225.7 - - 225.8 225.7
Buildings and improvements 91.5 96.3 46.2 47.8 137.7 144.1 Machinery and equipment 19.7 17.8 47.0 48.4 66.7 66.2
Infrastructure 204.4 211.1 277.5 270.3 481.9 481.4
Construction in progress 281.7 229.1 50.3 42.5 332.0 271.6 Intangible assets 9.9 3.7 19.7 19.8 29.6 23.5
Total Capital Assets 940.8 $ 873.0 $ 446.4 $ 434.4 $ 1,387.3 $ 1,307.5 $ 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 September 2025, the most recent credit review performed by Standard and Poor’s Financial Services (S&P), Corona Utility Authorities’ Wastewater Revenue Bonds was affirmed at “AA+” and Water Revenue Bond was affirmed at “AA” rating. For additional information on City’s long-term obligation, please refer to Note 10 of the accompanying financial statements.

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City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
21 The schedule of outstanding long-term debt with comparative amounts for the previous fiscal year is presented below.

City of Corona's Outstanding Debt
(in millions)
Governmental
Activities
Business-type
Activities Total
2025 2024 2025 2024 2025 2024
Loans and Agreement Payable - $ - $ 13.2 $ 18.4 $ 13.2 $ 18.4 $ 2012 Refunding Lease 2.1 6.0 - - 2.1 6.0
Leases Liabilities 0.6 0.4 - - 0.6 0.4
Subscription Liabilities 5.5 2.2 - - 5.5 2.2
Revenue Bonds 12.2 15.3 20.2 25.1 32.4 40.4
Pension Obligation Bonds 159.4 192.6 27.2 32.7 186.6 225.3 Unamortized Bond Premium 1.6 1.8 1.8 2.0 3.4 3.8
Total Outstanding Debt 181.4 $ 218.3 $ 62.4 $ 78.2 $ 243.8 $ 296.5 $

GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund appropriations and transfers out were originally adopted at $223.8 million for Fiscal Year 2025. Final appropriations were increased by $95.1 million to $318.9 million. Among the budgetary increase, $28.5 million was due to continuing appropriations from the prior year’s capital projects and grant funded activities and $18.9 million was for prior year committed purchases (encumbrances).

There was $47.6 million in supplemental funding and transfers approved by the City Council subsequent to the budget adoption due to the following reasons: The personnel budget increased by $5.7 million in Fiscal Year 2025. Cumulatively, departments increased by $3.8 million for the completion of the labor negotiations process and implementation of new Memorandums of Understanding. Based on funding needs, workers’ compensation rates were adjusted, which resulted in a budget increase of $0.9 million. The Police Department’s personnel budget increased by $0.3 million for various grants and reimbursement agreements. A funding distribution change was implemented for multiple positions in Planning and Development and Public Works, resulting in a General Fund budget increase of $0.4 million. The operating budget increased by a total of $2.7 million. The General Government budget increased by $1.8 million for various grants, including $1.0 million in funding from the County of Riverside’s American Rescue Plan Act (ARPA) Grant and $0.4 million from the Housing and Homelessness Incentive Program (HHIP) Grant.

The Planning and Development Department increased by $0.3 million for the development of an environmental impact report. The capital outlay budget was increased by a net total of $39.2 million. The primary increase is $20.9 million for property acquisitions and related activities for the Corona Mall. A new enterprise resource planning system was approved in FY 2025, with a budget increase of $6.5 million. A budget increase of $2.4 million was approved for a new fire apparatus. The Traffic Signal Optimization project received additional funding of $1.6 million when awarding the construction contract. The Old Police Building Demolition project had a budget increase of $1.1 million when awarding the construction contract.

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City of Corona
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
22 Below is a summary of changes made to the adopted budget:

Original Budget 223,845,980 $
Continued Appropriations 28,512,689
Prior Year Encumbrances 18,933,846
Supplemental Changes 47,642,830
Final Budget 318,935,346 $
At June 30, 2025, the General Fund expenditure and transfers out budget concluded the fiscal year with a net favorable variance of $66.3 million.

Included in the $66.3 million savings, $50.9 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 $4.4 million will be carried forward in the operating budget, as approved by the City Council. Of the $4.4 million in carryover funds, there is a total of $2.7 million for grants in the City Manager’s Office for housing and homeless activities and $0.9 million for the Fire Department and Police Department. In addition, purchase orders totaling $3.2 million encumbered in Fiscal Year 2025 will be carried forward for activity that crosses fiscal years. Please refer to the Required Supplementary Information section of the accompanying financial statements for additional information.

Final Budget 318,935,346 $
Actual Expenditures 251,571,602
Transfers Out 1,064,349
Favorable Budget Variance 66,299,394 $
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].

Page 667 of 1013 ends

BASIC FINANCIAL STATEMENTS
23 Page 668 of 1013
24 Page 669 of 1013

GOVERNMENT-WIDE FINANCIAL STATEMENTS
25 Page 670 of 1013
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments $ 134,568,588 328,493,666 $ 463,062,254 $ Accounts receivable 20,451,336 3,979,694 24,431,030
Interest receivable 898,984 2,526,730 3,425,714
Due from other government 1,011,413 64,671,573 65,682,986 Due from successor agency - 39,591 39,591
Lease receivable - due within one year 318,769 506,181 824,950 Inventories and prepaid items 4,357,169 2,197,496 6,554,665 Deposits 464,441 42,728 507,169
Land held for resale - 4,332,648 4,332,648
Restricted cash and investments 308,586 58,510,619 58,819,205 Total current assets 465,300,926 162,379,286 627,680,212 Noncurrent assets:

Restricted cash and investments 509,441 - 509,441
Internal balances (169,891,472) 169,891,472 -
Lease receivable - due in more than one year 13,091,532 4,126,334 17,217,866 Long-term receivables - 24,048,057 24,048,057
Investment in joint venture 21,557,549 - 21,557,549
Capital assets:

Non-depreciable 615,356,357 75,697,971 691,054,328
Depreciable, net 315,543,730 370,652,611 686,196,341
Intangible assets, net 9,944,637 111,631 10,056,268
Total capital assets, net 940,844,724 446,462,213 1,387,306,937 Total noncurrent assets 1,147,875,785 302,764,065 1,450,639,850 Total assets 465,143,351 1,613,176,711 2,078,320,062

DEFERRED OUTFLOWS OF RESOURCES
Pension related items 5,451,151 56,463,717 61,914,868
Other postemployment benefits related items 3,828,285 27,890,881 31,719,166 Deferred charges on refunding - 328,403 328,403
Total deferred outflows of resources 9,279,436 84,683,001 93,962,437 City of Corona
Primary Government
June 30, 2025
Statement of Net Position
See accompanying Notes to the Basic Financial Statements. 26 Page 671 of 1013
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 8,689,748 33,701,114 42,390,862 Retention payable 660,238 4,588,566 5,248,804
Accrued interest payable 757,447 939,439 1,696,886
Unearned revenue 1,320,742 23,741,817 25,062,559
Deposits payable 179,883 20,278,576 20,458,459
Long-term liabilities- due within one year 36,666,153 9,147,277 45,813,430 Total current liabilities 119,915,665 20,755,335 140,671,000 Noncurrent liabilities:

Long-term liabilities - due in more than one year 62,653,618 208,729,100 271,382,718 Net pension liability 8,245,341 65,062,912 73,308,253
Net other postemployment benefits liability 11,012,136 80,228,667 91,240,803 Total noncurrent liabilities 354,020,679 81,911,095 435,931,774 Total liabilities 473,936,344 102,666,430 576,602,774

DEFERRED INFLOWS OF RESOURCES
Pension related items 19,638,281 19,638,281 -
Other postemployment benefits related items 7,654,547 1,050,659 8,705,206 Deferred charges on refunding bonds - 655,271 655,271
Leases 12,362,569 4,040,742 16,403,311
Total deferred inflows of resources 39,655,397 5,746,672 45,402,069

NET POSITION
Net investment in capital assets 908,848,482 404,795,409 1,313,643,891 Restricted:

Capital projects 43,434,114 43,434,114 -
Pension 54,892,853 54,892,853 -
Debt service 5,358 509,441 514,799
Special projects and programs:

Community development projects 5,443,446 - 5,443,446
Transportation and public works 34,850,039 302,107 35,152,146 Special assessment district projects 29,087,842 29,087,842 - Development projects 18,108,077 855,624 18,963,701
Other - 204,028 204,028
Total restricted 186,025,757 1,667,172 187,692,929
Unrestricted (deficit) 89,393,732 (40,452,896) 48,940,836 Total net position $ 366,009,685 1,184,267,971 $ 1,550,277,656 $ Primary Government
June 30, 2025
Statement of Net Position (Continued)
City of Corona
See accompanying Notes to the Basic Financial Statements. 27 Page 672 of 1013
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General government $ 8,590,840 60,126,008 $ 12,449,963 $ - $ Public safety - fire 33,339,522 4,955,205 3,905,631 -
Public safety - police 69,015,181 2,446,421 2,197,904 129,561 Public works and maintenance services 41,630,008 442,199 31,839,715 26,287,174 Community services 3,395,768 21,943,646 355,423 40,923
Planning and development 9,919,035 7,419,153 3,721,681 - Economic development - 1,019,235 - -
Interest expense 6,402,204 - - -
Total governmental activities 27,249,586 243,394,839 54,470,317 26,457,658 Business-type Activities:

Water 74,739,001 70,420,460 110,404 2,445,394
Sewer 36,167,688 36,187,623 - 824,134
Electric 12,770,030 19,763,160 969 -
Transit services 3,773,115 120,283 3,202,514 -
Airport 436,010 519,137 1,216 -
Total business-type activities 131,309,269 123,587,238 3,315,103 3,269,528 Total primary government $ 158,558,855 366,982,077 $ 57,785,420 $ 29,727,186 $ Program Revenues
City of Corona
Statement of Activities
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 28 Page 673 of 1013
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:

General government $ - (39,085,205) $ (39,085,205) $
Public safety - fire (24,478,686) - (24,478,686)
Public safety - police (64,241,295) - (64,241,295)
Public works and maintenance services 16,939,080 - 16,939,080 Community services - (18,151,532) (18,151,532)
Planning and development 1,221,799 - 1,221,799
Economic development - (1,019,235) (1,019,235)
Interest expense (6,402,204) - (6,402,204)
Total governmental activities - (135,217,278) (135,217,278) Business-type Activities:

Water 6,874,339 - 6,874,339
Sewer 804,199 - 804,199
Electric 6,994,099 - 6,994,099
Transit services (450,318) - (450,318)
Airport 84,343 - 84,343
Total business-type activities 14,306,662 - 14,306,662
Total primary government 14,306,662 (135,217,278) (120,910,616) General revenues and transfers:

General revenues:

Taxes:

Property taxes, levied for general purpose 69,139,781 69,139,781 - Transient occupancy taxes 3,887,089 - 3,887,089
Sales and use taxes 98,620,077 98,620,077 -
Franchise taxes 8,123,358 - 8,123,358
Business license taxes 2,658,836 - 2,658,836
Cannabis taxes 1,626,989 - 1,626,989
Total taxes 184,056,130 184,056,130 -
Investment income 25,735,401 8,364,951 34,100,352
Other income 9,427,386 - 9,427,386
Total general revenues 8,364,951 219,218,917 227,583,868 Transfers 77,816 (77,816) -
Changes in net position 22,749,429 83,923,823 106,673,252 Net position - beginning of year, as previously reported 343,300,481 1,100,706,918 1,444,007,399 Change in accounting principal (GASB 101) (362,770) (40,225) (402,995) Net position - as restated (Note 16) 1,100,344,148 343,260,256 1,443,604,404 Net position - end of year $ 366,009,685 1,184,267,971 $ 1,550,277,656 $ Net (Expenses) Revenues and
Changes in Net Position
City of Corona
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 29 Page 674 of 1013
30 Page 675 of 1013

FUND FINANCIAL STATEMENTS
31 Page 676 of 1013
32 Page 677 of 1013

GOVERNMENTAL FUND FINANCIAL STATEMENTS
33 Page 678 of 1013
Low Mod
General Income Housing Other
Fund Asset Grants
ASSETS
Cash and investments $ 22,178,049 144,047,736 $ - $
Accounts receivable - 3,004,085 -
Interest receivable 136,679 1,667,492 16,667
Due from other governments - 24,000,263 31,384,605
Due from other funds - 32,278,401 -
Due from successor agency - 39,591 -
Long-term receivables 8,268,191 1,039,775 -
Lease receivable - 13,597,713 -
Loans receivable 6,825,017 - 2,300,000
Advance to other funds - 178,507,222 -
Inventories and prepaid items - 624,024 -
Deposits - 42,728 -
Land held for resale 2,871,648 - -
Restricted assets:

Cash and investments with fiscal agents 470,335 54,898,211 2,903,731 Total assets $ 40,749,919 453,747,241 $ 36,605,003 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 5,594 21,336,332 $ 4,468,495 $ Retention payable - 429,627 2,928,415
Due to other funds - - 24,514,325
Advance from other funds - - -
Deposits payable 12,148 9,493,851 54,716
Unearned revenue - 9,471,920 1,937,115
Total liabilities 17,742 40,731,730 33,903,066

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 1,725,306 24,036,910
Lease related - 12,362,569 -
Total deferred inflows of resources 14,087,875 24,036,910 -

Fund Balances:

Nonspendable 180,171,021 - -
Restricted 54,898,211 40,732,177 -
Committed 61,771,921 - -
Assigned 82,218,843 - -
Unassigned (deficit) 19,867,640 (21,334,973) -
Total fund balances 398,927,636 40,732,177 (21,334,973) Total liabilities, deferred inflows of
resources, and fund balances $ 453,747,241 $ 40,749,919 $ 36,605,003 (Continued)
Capital Projects Funds
City of Corona
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 34 Page 679 of 1013
Nonmajor Total
Other Grants Governmental Governmental
Development and Endowments Funds Funds
ASSETS
Cash and investments $ 33,707,509 $ 15,191,400 $ 66,843,547 $ 281,968,241 Accounts receivable - 498 881,594 3,886,177
Interest receivable 205,287 96,213 404,392 2,526,730
Due from other governments - 1,514,854 7,771,851 64,671,573 Due from other funds - - 32,278,401 -
Due from successor agency - - - 39,591
Long-term receivables - 1,189,660 1,717,405 12,215,031
Lease receivable - - - 13,597,713
Loans receivable - 227,102 2,480,907 11,833,026
Advance to other funds - - - 178,507,222
Inventories and prepaid items - - - 624,024
Deposits - - - 42,728
Land held for resale - - 1,461,000 4,332,648
Restricted assets:

Cash and investments with fiscal agents - 158,059 80,283 58,510,619 Total assets $ 16,802,965 35,487,617 $ 81,640,979 $ 665,033,724 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 1,148,634 778,967 $ 3,266,066 $ 31,004,088 $ Retention payable 353,815 156,604 717,167 4,585,628
Due to other funds 1,473,875 - 6,170,257 32,158,457
Advance from other funds - 5,726,858 1,028,520 6,755,378 Deposits payable - 10,717,111 750 20,278,576
Unearned revenue 12,126,616 - 206,166 23,741,817
Total liabilities 15,102,940 17,379,540 11,388,926 118,523,944

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 4,190,511 29,952,727
Lease related - - - 12,362,569
Total deferred inflows of resources - - 4,190,511 42,315,296

Fund Balances:

Nonspendable - - 180,171,021 -
Restricted 18,108,077 1,700,025 69,585,355 185,023,845
Committed - - 61,771,921 -
Assigned - - 666,698 82,885,541
Unassigned (deficit) - (4,190,511) - (5,657,844)
Total fund balances 18,108,077 1,700,025 66,061,542 504,194,484 Total liabilities, deferred inflows of
resources, and fund balances $ 35,487,617 $ 16,802,965 $ 81,640,979 $ 665,033,724 (Concluded)
Special Revenue Funds
City of Corona
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 35 Page 680 of 1013
36 Page 681 of 1013
Total Fund Balances - Total Governmental Funds $ 504,194,484 Amounts reported for governmental activities in the statement of net position are different because:

Nondepreciable assets, net of $491,240 reported in Internal Service Funds 614,865,117 $ Depreciable assets, net of $7,418,964 reported in Internal Service Funds 308,124,766 Intangible assets, net of $9,758,680 reported in Internal Service Funds 185,957 923,175,840 29,952,727
54,610,413
(62,259,628)
(19,638,281)
26,699,506
(76,801,654)
(7,327,579)
13,369,367
(775,150)
328,403
(186,535,168)
(1,636,012)
(13,089,297)
Net position of governmental activities $ 1,184,267,971 Compensated absences, net of $664,180 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 $1,853,304 reported in Internal Service Funds Pension related deferred inflows of resources
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 $1,191,375 reported under Internal Service Funds OPEB related deferred inflows of resources, net of $326,968 reported under Internal Service Funds Internal service funds are used by the City to charge the cost of materials and supplies, maintenance and repair of vehicles and equipment, and printing services provided to the various departments of the City. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. Internal Service funds net position, net of $1,980,316 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 $2,803,284 reported in Internal Service Funds Net OPEB liabilities, net of $3,427,013 reported under Internal Service Funds Unamortized deferred charges on refunding
Long-term debt, net of $16,052,790 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, 2025
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 Page 682 of 1013
Low Mod
General Income Housing Other
Fund Asset Grants
REVENUES:

Taxes $ - 182,330,823 $ - $
Licenses, and permits 2,827,620 - -
Intergovernmental 7,519,958 - 295,419
Special assessments 1,000,503 - -
Investment earnings 19,999,289 1,383,933 147,635
Fines and penalties 1,031,601 - -
Current services 14,573,755 - -
Payment in lieu of services 7,774,866 - -
Other revenues 14,009,415 75,600 164,840
Total revenues 1,459,533 251,067,830 607,894

EXPENDITURES:

Current:

General government 55,392,891 46,880 -
Public safety- fire 37,294,528 - -
Public safety- police 58,405,218 - -
Public works and maintenance services 5,297,917 - -
Community services 19,374,860 - 69,831
Planning and development 8,445,200 105,622 -
Economic development 931,053 - -
Capital outlay 40,975,958 - 24,675,870
Debt service:

Principal retirement 18,933,516 15,295 -
Interest and charges 6,520,461 3,899 -
Total expenditures 171,696 251,571,602 24,745,701

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 1,287,837 (503,772) (24,137,807)
OTHER FINANCING SOURCES (USES):

Transfers in - 1,291,254 -
Transfers out (1,064,349) - -
Total other financing sources (uses) 226,905 - -
NET CHANGE IN FUND BALANCES (276,867) 1,287,837 (24,137,807) FUND BALANCES:

Beginning of year 399,204,503 39,444,340 2,802,834
End of year $ 398,927,636 $ 40,732,177 $ (21,334,973)
(Continued)
Capital Projects Funds
For the Year Ended June 30, 2025
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Corona
See accompanying Notes to the Basic Financial Statements. 38 Page 683 of 1013
Nonmajor Total
Special Revenue Other Grants Governmental Governmental
Development and Endowments Funds Funds
REVENUES:

Taxes $ - $ - $ 182,330,823 - $
Licenses, and permits 1,221,040 - 463,848 4,512,508
Intergovernmental 10,180,717 - 18,367,080 36,363,174
Special assessments - - 9,323,603 10,324,106
Investment earnings 1,815,791 786,510 3,574,736 27,707,894 Fines and penalties - - 3,473 1,035,074
Current services - 96,583 279,541 14,949,879
Payment in lieu of services 204,480 - - 7,979,346
Other revenues 779 31,126 480,266 14,762,026
Total revenues 3,242,090 11,094,936 32,492,547 299,964,830

EXPENDITURES:

Current:

General government - 1,106,302 125,280 56,671,353
Public safety- fire 2,995 317,851 37,615,374 -
Public safety- police 759 395,375 55,656 58,857,008
Public works and maintenance services 54,274 12,784,303 - 18,136,494 Community services 6,269 154,703 1,026 19,606,689
Planning and development - 370,196 102,816 9,023,834
Economic development - - - 931,053
Capital outlay 3,869,787 8,093,405 10,958,414 88,573,434 Debt service:

Principal retirement - - 19,070,962 122,151
Interest and charges - - 31,136 6,555,496
Total expenditures 10,437,832 3,934,084 24,180,782 315,041,697

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 657,104 (691,994) 8,311,765 (15,076,867) OTHER FINANCING SOURCES (USES):

Transfers in - 13,083 1,051,266 2,355,603
Transfers out - - (1,291,254) (2,355,603)
Total other financing sources (uses) - 13,083 (239,988) - NET CHANGE IN FUND BALANCES (691,994) 670,187 8,071,777 (15,076,867) FUND BALANCES:

Beginning of year 18,800,071 1,029,838 57,989,765 519,271,351 End of year $ 18,108,077 $ 1,700,025 $ 66,061,542 $ 504,194,484 (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, 2025
See accompanying Notes to the Basic Financial Statements. 39 Page 684 of 1013
40 Page 685 of 1013
Net change in fund balances - total governmental funds: $ (15,076,867) Amounts reported for governmental activities in the Statement of Activities are different because:

Capital outlay expenditures, net of $13,491,451 reported in Internal Service Funds 72,598,350 $ Effect on disposal of capital assets, net of 39,398 reported in Internal Service Funds (560,194) Depreciation and amortization expense, net of $4,300,136 reported in Internal Service Funds (13,321,994) 58,716,162 25,742,431
Change in compensated absences, net of $(74,882) reported in internal service funds (806,520) Pension expense, net of pension contribution made after measurement date (12,849,803) OPEB expense, net of OPEB contribution made after measurement date 6,607,455 Accrued interest for long-term debt 34,419
Deferred charges amortization (29,855)
Principal repayment of long-term debt, net of $4,304,439 reported in Internal Service Funds 19,070,962 Bond premium amortization 148,728
2,366,711
Change in net position of governmental activities $ 83,923,823 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 $(57,860) allocated to business-type activities).

City of Corona
in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
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 Page 686 of 1013
42 Page 687 of 1013

PROPRIETARY FUND FINANCIAL STATEMENTS
43 Page 688 of 1013
Water Sewer Electric
ASSETS
Current assets:

Cash and investments $ 42,267,346 $ 58,351,160 $ 30,954,437 Accounts receivable 11,821,896 5,788,936 2,821,694
Interest receivable 314,787 360,271 182,320
Due from other governments 504,583 140,299 4,054
Lease receivable 318,769 - -
Inventories and prepaid items 48,996 4,295,924 12,249
Deposits - - 464,441
Restricted cash and investments 113 6,366 -
Total current assets 59,529,671 64,689,775 34,439,195
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable 4,126,334 - -
Advances to other funds - 3,614,688 876,500
Investment in joint venture 21,557,549 - -
Capital assets:

Capital assets, not being depreciated 42,245,590 31,091,781 2,354,704 Capital assets, being depreciated, net 235,906,214 126,345,632 7,246,012 Intangible asset, being amortized, net 64,272 47,359 -
Total capital assets 278,216,076 157,484,772 9,600,716
Total noncurrent assets 282,342,410 183,166,450 10,477,216 Total assets 341,872,081 247,856,225 44,916,411

DEFERRED OUTFLOW OF RESOURCES
Pension related items 3,001,831 2,203,518 139,215
OPEB related items 2,061,873 1,521,783 165,204
Total deferred outflow of resources $ 5,063,704 $ 3,725,301 $ 304,419 (Continued)
Business-Type Activities
Enterprise Funds
Corona Utility Authority
City of Corona
Statement of Net Position
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 44 Page 689 of 1013
Water Sewer Electric

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 3,885,190 $ 2,804,307 $ 1,117,394 Retention payable 89,837 570,401 -
Accrued interest 277,577 464,026 13,143
Due to other funds 115,890 - 4,054
Unearned revenue 4,657 543,207 821
Deposits payable 20,000 138,263 21,320
Claims and judgments, due within one year - - -
Compensated absences, due within one year 493,902 611,062 7,983 Lease and subscription payable, due within one year - - - Bonds and loans payable, due within one year 1,955,610 5,636,779 348,100 Total current liabilities 11,368,364 6,242,344 1,512,815 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 (232,013) 481,182 44,360 Lease and subscription payable, due in more than one year - - - Bonds and loans payable, due in more than one year 22,410,810 35,933,836 3,318,598 Net pension liability 3,333,013 4,540,531 210,575
Net other postemployment benefits liability 4,377,438 5,931,017 475,213 Total noncurrent liabilities 157,320,916 95,697,930 4,048,746 Total liabilities 168,689,280 101,940,274 5,561,561

DEFERRED INFLOWS OF RESOURCES
Other postemployment benefits related items 565,873 417,648 45,340 Deferred charges on refunding bonds 655,271 - -
Lease related - 4,040,742 -
Total deferred inflows of resources 5,261,886 417,648 45,340

NET POSITION
Net investment in capital assets 252,289,104 141,744,940 9,600,716 Restricted:

Debt service - 509,441 -
Transportation and public works - - -
Development projects 15,320 840,304 -
Unrestricted (deficit) (79,319,805) 6,128,919 30,013,213 Total net position $ 149,223,604 172,984,619 $ 39,613,929 $ (Continued)
Corona Utility Authority
June 30, 2025
Business-Type Activities
Enterprise Funds
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 45 Page 690 of 1013
Governmental
Activities
Total Enterprise Internal
Nonmajor Funds Service Funds
ASSETS
Current assets:

Cash and investments $ 134,568,588 2,995,645 $ 46,525,425 $ Accounts receivable 20,451,336 18,810 93,517
Interest receivable 898,984 41,606 -
Due from other governments 1,011,413 362,477 -
Lease receivable 318,769 - -
Inventories and prepaid items 4,357,169 - 1,573,472
Deposits 464,441 - -
Restricted cash and investments 308,586 302,107 -
Total current assets 3,720,645 162,379,286 48,192,414
Noncurrent assets:

Restricted cash and investments - 509,441 -
Lease receivable - 4,126,334 -
Advances to other funds - 4,491,188 -
Investment in joint venture 21,557,549 - -
Capital assets:

Capital assets, not being depreciated 5,896 75,697,971 491,240 Capital assets, being depreciated, net 1,154,753 370,652,611 7,418,964 Intangible asset, being amortized, net - 111,631 9,758,680 Total capital assets 1,160,649 446,462,213 17,668,884
Total noncurrent assets 1,160,649 477,146,725 17,668,884 Total assets 4,881,294 639,526,011 65,861,298

DEFERRED OUTFLOW OF RESOURCES
Pension related items 106,587 5,451,151 1,853,304
OPEB related items 79,425 3,828,285 1,191,375
Total deferred outflow of resources $ 186,012 $ 9,279,436 $ 3,044,679 (Continued)
Enterprise Funds
Business-Type Activities
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 46 Page 691 of 1013
Governmental
Activities
Total Enterprise Internal
Nonmajor Funds Service Funds

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ 8,689,748 882,857 $ 2,697,026 $ Retention payable 660,238 - 2,938
Accrued interest 757,447 2,701 164,289
Due to other funds 119,944 - -
Unearned revenue 1,320,742 772,057 -
Deposits payable 179,883 300 -
Claims and judgments, due within one year - - 4,689,740 Compensated absences, due within one year 1,135,252 22,305 333,840 Lease and subscription payable, due within one year - - 1,954,086 Bonds and loan payable, due within one year 8,012,025 71,536 759,093 Total current liabilities 1,751,756 20,875,279 10,601,012 Noncurrent liabilities:

Advance from other funds 176,243,032 - -
Claims and judgments, due in more than one year - - 22,728,066 Compensated absences, due in more than one year 308,388 14,859 330,340 Lease and subscription payable, due in more than one year - - 6,102,835 Bonds and loan payable, due in more than one year 62,345,230 681,986 7,236,776 Net pension liability 8,245,341 161,222 2,803,284
Net other postemployment benefits liability 11,012,136 228,468 3,427,013 Total noncurrent liabilities 1,086,535 258,154,127 42,628,314 Total liabilities 2,838,291 279,029,406 53,229,326

DEFERRED INFLOWS OF RESOURCES
Other postemployment benefits related items 21,798 1,050,659 326,968 Deferred charges on refunding bonds - 655,271 -
Lease related 4,040,742 - -
Total deferred inflows of resources 21,798 5,746,672 326,968

NET POSITION
Net investment in capital assets 1,160,649 404,795,409 9,609,025 Restricted:

Debt service - 509,441 -
Transportation and public works 302,107 302,107 -
Development projects - 855,624 -
Unrestricted (deficit) 744,461 (42,433,212) 5,740,658
Total net position $ 364,029,369 2,207,217 $ 15,349,683 $ Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds 1,980,316 Net position of business-type activities $ 366,009,685
(Concluded)
June 30, 2025
Business-Type Activities
Enterprise Funds
City of Corona
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 47 Page 692 of 1013
Water Sewer Electric
OPERATING REVENUES:

Service charges $ 33,796,776 70,416,977 $ 17,629,903 $
Intergovernmental - - -
Fees and permits 1,605,405 3,007,414 834
Fines and penalties 644,832 308,476 60,859
Other revenues 457,031 669,778 2,071,564
Total operating revenues 36,167,688 74,739,001 19,763,160 OPERATING EXPENSES:

Personnel services 8,191,373 10,834,354 572,044
Contractual services 13,209,230 5,549,764 1,276,211
Materials and supplies 4,517,160 33,095,567 1,695,247
Utilities 2,357,622 6,788,740 8,770,168
Depreciation and amortization 5,018,201 9,671,278 385,450 Claim expense - - -
Total operating expenses 33,293,586 65,939,703 12,699,120 OPERATING INCOME (LOSS) 2,874,102 8,799,298 7,064,040
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 110,404 - 969
Investment earnings 2,763,327 3,434,088 1,519,766
Interest expense (3,685,830) (2,117,382) (83,055)
(loss) on sale of capital assets (754,555) (747,022) -
Gain on investment in joint venture - 403,038 -
Total nonoperating revenues (expenses) 972,722 (1,566,654) 1,437,680 TRANSFERS AND CAPITAL CONTRIBUTIONS:

Capital grants and contributions 824,134 2,523,210 -
Total capital contributions and transfers 2,523,210 824,134 - CHANGE IN NET POSITION 9,755,854 4,670,958 8,501,720
NET POSITION:

Beginning of year (as restated in note 16) 163,255,419 144,561,433 31,116,070 Change in accounting principal (GASB 101) (26,654) (8,787) (3,861) Beginning of year, as restated (Note 16) 163,228,765 144,552,646 31,112,209 End of year $ 172,984,619 $ 149,223,604 $ 39,613,929
Corona Utility Authority
Enterprise Funds
For the Year Ended June 30, 2025
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 Page 693 of 1013
Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds
OPERATING REVENUES:

Service charges $ 121,843,656 - $ 32,675,328 $
Intergovernmental 3,202,514 3,202,514 -
Fees and permits 4,664,858 51,205 -
Fines and penalties 1,072,331 58,164 -
Other revenues 3,728,424 530,051 2,265,372
Total operating revenues 134,511,783 3,841,934 34,940,700 OPERATING EXPENSES:

Personnel services 20,081,988 484,217 6,858,844
Contractual services 22,859,900 2,824,695 3,283,197
Materials and supplies 39,685,931 377,957 4,934,626
Utilities 18,106,833 190,303 2,099,512
Depreciation and amortization 15,389,528 314,599 4,300,136 Claim expense - - 10,766,269
Total operating expenses 116,124,180 4,191,771 32,242,584 OPERATING INCOME (LOSS) 18,387,603 (349,837) 2,698,116
NONOPERATING REVENUES (EXPENSES):

Intergovernmental 1,216 112,589 -
Investment earnings 244,732 7,961,913 -
Interest expense (17,068) (5,903,335) (373,304)
Gain (loss) on sale of capital assets (286) (1,501,863) (15,961) Gain on investment in joint venture - 403,038 -
Total nonoperating revenues (expenses) 1,072,342 228,594 (389,265) TRANSFERS AND CAPITAL CONTRIBUTIONS:

Capital grants and contributions - 3,347,344 -
Total capital contributions and transfers - 3,347,344 - CHANGE IN NET POSITION (121,243) 22,807,289 2,308,851
NET POSITION:

Beginning of year (as restated in note 16) 2,329,383 341,262,305 13,057,440 Change in accounting principal (GASB 101) (923) (40,225) (16,608) Beginning of year, as restated (Note 16) 2,328,460 341,222,080 13,040,832 End of year $ 2,207,217 $ 364,029,369 $ 15,349,683
Adjustments to reflect the consolidation of internal
service fund activities related to the proprietary funds (57,860) Changes in net position of business-type activities $ 22,749,429 Business-Type Activities
Enterprise Funds
For the Year Ended June 30, 2025
City of Corona
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 49 Page 694 of 1013
Water Sewer Electric
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users $ 72,421,486 $ 35,173,764 $ 19,479,472 Cash paid to suppliers for goods and services (47,735,467) (20,343,418) (12,179,087) Cash paid to employees for services (9,405,001) (7,339,561) (664,357) Cash paid for insurance or claims - - -
Net cash provided by (used in) operating activities 7,490,785 15,281,018 6,636,028 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grant received 77,125 552,419 (2,665) Receipt from other funds 12,755 191,985 3,634
Payment to other funds - (88,429) -
Principal paid on pension obligation bonds (1,466,475) (823,263) (328,227) Interest paid on pension obligation bonds (373,808) (209,851) (83,665) Net cash used in noncapital financing activities (943,234) (1,184,308) (410,923)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (11,153,689) (13,786,797) (482,132) Loss on disposal of capital assets - - -
Repayment of advances to other funds - - 202,108
Principal paid on long-term debt (3,947,147) (1,040,865) - Interest paid on long-term debt (3,709,986) (1,946,047) - Net cash (used in) capital and related financing activities (16,773,709) (18,810,822) (280,024) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 2,704,701 3,395,107 1,450,168
Investment in joint venture - (1,903,190) -
Net cash provided by investing activities 1,491,917 2,704,701 1,450,168 Net increase (decrease) in cash and cash equivalents (8,734,241) (2,009,411) 7,395,249 CASH AND CASH EQUIVALENTS:

Beginning of year 67,594,955 44,283,123 23,559,188
End of year $ 42,273,712 $ 58,860,714 $ 30,954,437
CASH AND CASH EQUIVALENTS:

Cash and investment $ 58,351,160 42,267,346 $ 30,954,437 $ Restricted cash and investment, current 6,366 113 -
Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 58,860,714 42,273,712 $ 30,954,437 $ NONCASH ITEMS:

Lease and subscription of intangible assets $ - $ - $ - Issuance of lease and subscription liabilities $ - $ - $ - Capital contribution $ - $ - $ -
(Continued)
City of Corona
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
Enterprise Funds
Corona Utility Authority
See accompanying Notes to the Basic Financial Statements. 50 Page 695 of 1013
Water Sewer Electric

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

Operating income (loss) 8,799,298 $ 2,874,102 $ 7,064,040 $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization 9,671,278 5,018,201 385,450 Change in assets and liabilities:
(Increase) decrease in accounts receivable (2,231,858) (993,924) (287,238) (Increase) decrease in due from other government - - -
(Increase) decrease in inventories and prepaid items (320,422) (48,996) (12,249) (Increase) decrease in deposits - - (323,618)
(Increase) decrease in lease receivable - (506,740) -
(Increase) decrease in deferred outflows
of resources related to pension 1,277,876 1,249,317 99,803 (Increase) decrease in deferred outflows
of resources related to OPEB (225,457) (148,480) 269
Increase (decrease) in accounts payable and accrued liabilities (1,920,372) (167,808) (102,295) Increase (decrease) in deposits payable (12,408) - 3,550 Increase (decrease) in unearned revenue - - -
Increase (decrease) in compensated absences 146,483 (49,898) (84,652) Increase (decrease) in claims payable - - -
Increase (decrease) in net pension liabilities 460,636 41,385 (17,283) Increase (decrease) in OPEB liabilities (129,616) (154,806) (70,890) Increase (decrease) in deferred inflows
of resources related to pension (38,308) (30,907) (2,139) Increase (decrease) in deferred inflows
of resources related to OPEB (122,863) (97,401) (16,720) Increase (decrease) in deferred inflows
of resources related to leases 433,491 - -
Total adjustment 4,616,683 6,481,720 (428,012)
Net cash provided by (used in) operating activities $ 7,490,785 15,281,018 $ 6,636,028 $ (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, 2025
See accompanying Notes to the Basic Financial Statements. 51 Page 696 of 1013
Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from customers and users 3,511,743 $ 130,586,465 $ 34,905,142 $ Cash paid to suppliers for goods and services (3,261,142) (83,519,114) (12,707,369) Cash paid to employees for services (392,537) (17,801,456) (5,975,338) Cash paid for insurance or claims - - (7,530,204)
Net cash provided by (used in) operating activities 29,265,895 (141,936) 8,692,231 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Intergovernmental grant received 627,955 1,076 -
Receipt from other funds 208,374 - -
Payment to other funds (88,429) - -
Principal paid on pension obligation bonds (67,453) (2,685,418) (715,754) Interest paid on pension obligation bonds (17,194) (684,518) (182,446) Net cash used in noncapital financing activities (2,622,036) (83,571) (898,200)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (12,003) (25,434,621) (4,131,674) Loss on disposal of capital assets - - 23,437
Repayment of advances to other funds - 202,108 -
Principal paid on long-term debt (4,988,012) - (3,588,685) Interest paid on long-term debt (5,656,033) - (56,559)
Net cash (used in) capital and related financing activities (35,876,558) (12,003) (7,753,481) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment earnings 236,356 7,786,332 -
Investment in joint venture - (1,903,190) -
Net cash provided by investing activities 5,883,142 236,356 - Net increase (decrease) in cash and cash equivalents (3,349,557) (1,154) 40,550 CASH AND CASH EQUIVALENTS:

Beginning of year 138,726,893 3,289,627 46,484,875
End of year $ 3,288,473 $ 135,377,336 $ 46,525,425
CASH AND CASH EQUIVALENTS:

Cash and investment $ 134,568,588 2,995,645 $ 46,525,425 $ Restricted cash and investment, current 302,107 308,586 - Restricted cash and investment, noncurrent - 509,441 -
Total cash and cash equivalents $ 135,386,615 3,297,752 $ 46,525,425 $ NONCASH ITEMS:

Lease and subscription of intangible assets $ - $ - $ 9,356,839 Issuance of lease and subscription liabilities $ - $ - $ (9,356,839) Capital contribution $ - $ - $ -
(Continued)
City of Corona
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements. 52 Page 697 of 1013
Governmental
Activities -
Total Enterprise Internal
Nonmajor Funds Service Funds

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

Operating income (loss) (349,837) $ 18,387,603 $ 2,698,116 $ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization 314,599 15,389,528 4,300,136 Change in assets and liabilities:
(Increase) decrease in accounts receivable (7,884) (3,520,904) (35,558) (Increase) decrease in due from other government (88,576) (88,576) - (Increase) decrease in inventories and prepaid items - (381,667) (1,390,837) (Increase) decrease in deposits - (323,618) -
(Increase) decrease in lease receivable (506,740) - -
(Increase) decrease in deferred outflows
of resources related to pension 6,462 2,633,458 956,768 (Increase) decrease in deferred outflows
of resources related to OPEB (24,267) (397,935) (126,990) Increase (decrease) in accounts payable and accrued liabilities 136,917 (2,053,558) (961,662) Increase (decrease) in deposits payable - (8,858) -
Increase (decrease) in unearned revenue (233,731) (233,731) - Increase (decrease) in compensated absences 4,397 16,330 74,882 Increase (decrease) in claims payable - - 3,236,065
Increase (decrease) in net pension liabilities 53,451 538,189 124,409 Increase (decrease) in OPEB liabilities 46,434 (308,878) (85,723) Increase (decrease) in deferred inflows
of resources related to pension (1,012) (72,366) (25,153) Increase (decrease) in deferred inflows
of resources related to OPEB 1,111 (235,873) (72,222)
Increase (decrease) in deferred inflows
of resources related to leases - 433,491 -
Total adjustment 10,878,292 207,901 5,994,115
Net cash provided by (used in) operating activities $ 29,265,895 (141,936) $ 8,692,231 $ (Concluded)
Enterprise Funds
Proprietary Funds
Business-Type Activities
City of Corona
Statement of Cash Flows (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 53 Page 698 of 1013
54 Page 699 of 1013

FIDUCIARY FUND FINANCIAL STATEMENTS
55 Page 700 of 1013
56 Page 701 of 1013
Private-Purpose Custodial
Trust Fund Funds
Successor
Agency Trust AD/CFD
Fund Funds
ASSETS
Cash and investments $ 1,504,725 4,493,723 $
Interest receivable 29,970 -
Due from other governments 167,234 -
Restricted:

Cash and investments with fiscal agent 48,065,092 7,526,179 Total assets 49,767,021 12,019,902

DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 10,876
OPEB related items - 50,832
Total deferred outflows of resources - 61,708

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 31,795 4,919
Retention payable - 3,203
Interest payable - 400,769
Due to the City of Corona 39,591 -
Bonds payable, due within one year 5,125,471 -
Noncurrent liabilities:

Bonds payable, due in more than one year 20,418,302 -
Net pension liability - 16,451
Net OPEB liability - 146,219
Total liabilities 31,795 26,154,925

DEFERRED INFLOWS OF RESOURCES
OPEB related 13,951 -
Total deferred inflows of resources 13,951 -

NET POSITION (DEFICIT)
Restricted for:

Successor agency - (14,087,266)
Organization and other governments 49,735,226 -
Total net position (deficit) $ 49,735,226 (14,087,266) $ City of Corona
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 57 Page 702 of 1013
Private-Purpose Custodial
Trust Fund Funds
Successor
Agency Trust AD/CFD
Fund Funds
ADDITIONS:

Redevelopment property tax trust fund $ 8,362,197 $ -
Assessment revenue - 7,880,662
Investment earning 238,727 1,852,281
Proceed from district debt issuance - 27,655,086
Total additions 37,388,029 8,600,924
DEDUCTIONS:

Administrative expenses 38,403 -
Developer payments 1,408,975 -
Payments for district expenses - 7,712,929
Payments for district debt service 1,470,575 5,735,632
Total deductions 13,448,561 2,917,953
Change in net position 23,939,468 5,682,971
NET POSITION:

Beginning of year (19,770,237) 25,795,758
End of year $ 49,735,226 (14,087,266) $
City of Corona
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 58 Page 703 of 1013
59 NOTES TO THE BASIC FINANCIAL STATEMENTS

Page 704 of 1013 ends

60 Page 705 of 1013
City of Corona
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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. Accounts Receivable ............................................................................................................................. 69 G. Interfund Transactions. ......................................................................................................................... 69 H. Inventories and Prepaid Items ............................................................................................................... 69 I. Lease Receivables ................................................................................................................................. 69 J. Capital Assets ........................................................................................................................................ 70 K. Deferred Outflows and Inflows of Resources ....................................................................................... 72 L. Unearned and Unavailable Revenue ..................................................................................................... 72 M. Compensated Absences ......................................................................................................................... 72 N. Claims Payable ...................................................................................................................................... 72 O. Lease Liabilities .................................................................................................................................... 72 P. Subscription Based Information Technology Arrangements Liabilities ............................................... 73 Q. Long-Term Debt ................................................................................................................................... 74 R. Pensions. ............................................................................................................................................... 74 S. Other Postemployment Benefits (“OPEB”) .......................................................................................... 75 T. Property Taxes ...................................................................................................................................... 75 U. Net Position and Fund Balances ........................................................................................................... 76 V. Use of Estimates.................................................................................................................................... 77 W. Implementation of New GASB Pronouncements ................................................................................. 77 Note 2 – Stewardship, Compliance and Accountability ...................................................................................... 78 Note 3 – Cash and Investments ............................................................................................................................. 78 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 .................................................................................................................... 87

Page 706 of 1013 ends

City of Corona
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
62 Note 9 – Capital Assets ........................................................................................................................................... 89 A. Governmental Activities ....................................................................................................................... 89 B. Business-Type Activities ..................................................................................................................... 90 C. Infrastructure Assets ............................................................................................................................. 91 D. Construction in Progress and Capital Project Commitments ................................................................ 91 Note 10 – Long-Term Liabilities ........................................................................................................................... 92 A. Governmental Activities ....................................................................................................................... 92 B. Business-Type Activities ...................................................................................................................... 95 C. Fiduciary Funds .................................................................................................................................... 98 D. Non-City Obligations ........................................................................................................................... 100 E. Conduit Debt Obligations .................................................................................................................... 100 F. Bond Requirement ............................................................................................................................... 101 Note 11 – Risk Management ................................................................................................................................. 101 A. Workers’ Compensation Insurance ...................................................................................................... 101 B. General Liability Insurance .................................................................................................................. 101 C. Property Losses (Excluding Earthquake or Flood) .............................................................................. 102 D. Adequacy of Coverage ......................................................................................................................... 102 Note 12 – Pension Plan .......................................................................................................................................... 102 A. General Information about the Pension Plan ....................................................................................... 102 B. Net Pension Liability ........................................................................................................................... 104 C. Changes in the Net Pension Liability ................................................................................................... 106 D. Pension Expense and Deferred Outflows and
Deferred Inflows of Resources Related to Pensions ......................................................................... 108 Note 13 – Other Postemployment Benefits (“OPEB”) ....................................................................................... 110 A. General Information about the OPEB Plan .......................................................................................... 110 B. Net OPEB Liability .............................................................................................................................. 111 C. Changes in Net OPEB Liability ........................................................................................................... 112 Note 14 – Classification of Fund Balances ........................................................................................................... 114 Note 15 – Net Investment in Capital Assets ......................................................................................................... 115 Note 16 – Restatement of Beginning Net Position ............................................................................................... 115 Note 17 – Commitments and Contingencies ........................................................................................................ 116 Note 18 – Tax Abatement ...................................................................................................................................... 117 Note 19 – Subsequent Events ................................................................................................................................ 117

Page 707 of 1013 ends

City of Corona
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
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.

Page 708 of 1013 ends

City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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 balances or fund net positions, 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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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. Fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned, and expenses are recognized when a liability is incurred, regardless of the timing of related cash flows. These funds report all assets, deferred outflows of resources, liabilities, and deferred inflows of resources associated with fiduciary activities.

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 ownsource 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. One funds is reported under the custodial fund type, the AD/CFD 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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 1 – Summary of Significant Accounting Policies (Continued) F. Accounts Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, fines and other fees. Business-type activities report utilities as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable compose the majority of proprietary fund receivables.

G. 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.

H. 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.

I. 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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 1 – Summary of Significant Accounting Policies (Continued) I. Lease Receivables (Continued)
The City is a lessor for leases of land and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $200,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

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

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

J. 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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 1 – Summary of Significant Accounting Policies (Continued) J. Capital Assets (Continued)
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.

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

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 1 – Summary of Significant Accounting Policies (Continued) K. 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.

L. 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.

M. 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.

The City accounts for compensated absences in accordance with GASB Statement No. 101, Compensated Absences.

Under this standard, a liability is recognized for leave benefits (such as vacation and sick leave) when the benefits are attributable to services already rendered, accumulate for use in future periods, and are more likely than not to be used or paid. The liability is measured using the employee’s pay rate in effect at the financial statement date and includes salary-related payments.

N. 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”).

O. 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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 1 – Summary of Significant Accounting Policies (Continued) O. Lease Liabilities (Continued)
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.

P. 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.

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.

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City of Corona
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 1 – Summary of Significant Accounting Policies (Continued) Q. 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.

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.

R. 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.

The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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.

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Corona City CouncilDecember 3, 2025

Corona City Council
December 3, 2025