Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:
Taxes 83,146,500 $ 92,571,500 $ 98,300,476 $ 5,728,976 $ Licenses and permits 6,276,080 6,276,080 7,983,843 1,707,763 Intergovernmental 1,643,200 12,367,803 12,658,140 290,337 Charges for services 12,952,420 11,693,190 11,750,773 57,583 Fines and forfeitures 791,100 791,100 625,043 (166,057) Investment earnings 4,963,730 4,963,730 3,821,817 (1,141,913) Other revenue 3,076,890 6,353,806 6,485,232 131,426 Total revenues 112,849,920 135,017,209 141,625,324 6,608,115 Expenditures:
Current:
General government:
City council and commissions 389,810 389,810 347,084 42,726 City administration 5,792,740 6,124,414 6,194,147 (69,733) Management services 3,056,340 13,785,157 11,254,438 2,530,719 Information technology 7,578,440 13,253,154 7,954,151 5,299,003 Human resources 10,135,090 11,601,615 11,033,395 568,220 Public safety:
Police 66,197,870 67,950,895 64,954,148 2,996,747 Public works 13,180,450 13,601,458 12,467,593 1,133,865 Community development 4,322,210 4,798,718 4,494,154 304,564 Community services 12,207,550 10,220,395 7,742,424 2,477,971 Engineering 3,576,060 3,932,292 3,611,950 320,342 Total expenditures 126,436,560 145,657,908 130,053,484 15,604,424 Excess (deficit) of
revenues over expenditures (13,586,640) (10,640,699) 11,571,840 22,212,539 Other Financing Sources (Uses):
Transfers in 26,312,510 34,092,112 14,694,059 (19,398,053) Transfers out (15,913,740) (27,200,342) (7,839,502) 19,360,840 Sale of capital assets 1,500 1,500 153,669 152,169 Total other financing sources (uses) 10,400,270 6,893,270 7,008,226 114,956 Net change in fund balances (3,186,370) (3,747,429) 18,580,066 22,327,495 Fund balances - beginning 98,475,846 98,475,846 98,475,846 98,475,846 Fund balances - ending 95,289,476 $ 94,728,417 $ 117,055,912 $ 120,803,341 $ See accompanying notes to financial statements
Budget Amounts
CITY OF FONTANA
General Fund
For the Year Ended June 30, 2021
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 26 442
Exhibit G
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:
Taxes 39,300,000 $ 39,300,000 $ 45,934,256$ 6,634,256 $ Licenses and permits 870,000 870,000 917,002 47,002 Charges for services 20,000 20,000 - (20,000) Fines and forfeitures - - 19,796 19,796 Investment earnings 180,000 180,000 15,150 (164,850) Total revenues 40,370,000 40,370,000 46,886,204 6,516,204 Expenditures:
Public safety:
Fire 33,055,500 33,655,940 33,391,187 264,753 Total expenditures 33,055,500 33,655,940 33,391,187 264,753 Excess (deficit) of
revenues over expenditures 7,314,500 6,714,060 13,495,017 6,780,957 Other Financing Sources (Uses):
Transfers in 1,006,100 1,006,100 1,006,100 - Transfers out (5,334,500) (15,989,500) (15,989,500) - Total other financing sources (uses) (4,328,400) (14,983,400) (14,983,400) - Net change in fund balances 2,986,100 (8,269,340) (1,488,383) 6,780,957 Fund balances - beginning 22,695,894 22,695,894 22,695,894 - Fund balances - ending 25,681,994 $ 14,426,554 $ 21,207,511 $ 6,780,957 $
CITY OF FONTANA
Fire Protection District - Special Revenue
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2021
Budget Amounts
See accompanying notes to financial statements
27 443
Exhibit G
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:
Investment earnings 845,000 $ 845,000 $ 136,322 $ (708,678)$ Other revenue 111,000 111,000 120,813 9,813 Total revenues 956,000 956,000 257,135 (698,865) Expenditures:
Current:
General government:
Management services 394,040 4,709,333 423,693 4,285,640 Total expenditures 394,040 4,709,333 423,693 4,285,640 Excess (deficit) of
revenues over expenditures 561,960 (3,753,333) (166,558) 3,586,775 Other Financing Sources (Uses):
Transfers out (56,600) (56,600) (56,600) - Total other financing sources (uses) (56,600) (56,600) (56,600) - Net change in fund balances 505,360 (3,809,933) (223,158) 3,586,775 Fund balances - beginning 87,932,152 87,932,152 87,932,152 - Fund balances - ending 88,437,512 $ 84,122,219 $ 87,708,994 $ 3,586,775 $ Budget Amounts
See accompanying notes to financial statements
CITY OF FONTANA
Housing Authority Low/Mod Housing Fund - Special Revenue Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2021
28 444
Exhibit G
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:
Investment earnings - - 17,198 $ 17,198 $ Total revenues - - 17,198 17,198 Excess (deficit) of
revenues over expenditures - - 17,198 17,198 Other Financing Sources (Uses):
Transfers out 56,600 56,600 - (56,600) Total other financing sources (uses) 56,600 56,600 - (56,600) Extraordinary gain/(loss) on dissolution
of redevelopment agency (Note 16) - - - Net change in fund balances 56,600 56,600 17,198 (39,402) Fund balances - beginning - - - - Fund balances - ending 56,600 $ 56,600 $ 17,198 $ (39,402)$ See accompanying notes to financial statements
CITY OF FONTANA
Economic Stimulus - Special Revenue
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2021
Budget Amounts
29 445
Exhibit H
Governmental
Activities
Non-Major Internal Service
Enterprise Fund - Fund -
Sewer Water Fleet
Operations Operations Totals Operations
Assets:
Current Assets:
Cash and investments 21,838,917 $ 644,192 22,483,109 9,844,386 Accounts receivables 1,386,813 - 1,386,813 7,290 Interest receivable 21,340 639 21,979 9,848 Loans receivable 3,274,916 1,299,841 4,574,757 - Loans to Successor Agency 3,305,829 - 3,305,829 - Allowance for doubtful accounts (3,305,829) - (3,305,829) - Due from other funds 502,240 - 502,240 67,000 Due from other governments 162,896 - 162,896 - Inventories 44,979 - 44,979 208,849 Total current assets 27,232,101 1,944,672 29,176,773 10,137,373 Noncurrent Assets:
Capital assets, not being depreciated 436,820 - 436,820 43,433 Capital assets, net of depreciation 61,680,204 - 61,680,204 7,760,408 Total noncurrent assets 62,117,024 - 62,117,024 7,803,841 Total assets 89,349,125 1,944,672 91,293,797 17,941,214 Deferred Outflows of Resources:
Deferred outflows of resources - pension related 970,140 - 970,140 - Deferred outflows of resources - OPEB related 332,986 - 332,986 - Total deferred outflows of resources 1,303,126 - 1,303,126 - Liabilities:
Current Liabilities:
Accounts payable 2,224,311 - 2,224,311 254,961 Deposits payable 772,895 - 772,895 - Interest payable 44,357 - 44,357 - Due to Successor Agency - 16,538 16,538 - Compensated absences payable - current 232,915 - 232,915 - Loans payable - current 863,155 - 863,155 - Total current liabilities 4,137,633 16,538 4,154,171 254,961 Noncurrent Liabilities:
Compensated absences payable 112,534 - 112,534 - Loans payable 5,720,872 - 5,720,872 - Net pension liability 5,446,754 - 5,446,754 - Net OPEB liability 2,429,855 - 2,429,855 - Total noncurrent liabilities 13,710,015 - 13,710,015 - Total liabilities 17,847,648 16,538 17,864,186 254,961 Deferred Inflows of Resources:
Deferred inflows of resources - pension related 22,079 - 22,079 - Deferred inflows of resources - OPEB related 110,623 - 110,623 - Total deferred inflows of resources 132,702 - 132,702 - Net Position:
Net investment in capital assets 55,532,997 - 55,532,997 7,760,408 Unrestricted 17,138,904 1,928,134 19,067,038 9,925,845 Total net position 72,671,901 $ 1,928,134 $ 74,600,035 17,686,253 $ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 74,600,035 1,668,458
Net position per Statement of Net Position 76,268,493 $ See accompanying notes to financial statements
June 30, 2021
CITY OF FONTANA
Business-type Activities
Enterprise Funds
Statement of Net Position
Proprietary Funds
Accumulated adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
30 446
Exhibit I
Governmental
Activities
Non-Major Internal Service
Enterprise Fund - Fund -
Sewer Water Fleet
Operations Operations Totals Operations
Operating Revenues:
Charges for services 25,277,045 $ - 25,277,045 6,833,234 Other revenue 13,807 - 13,807 42,449 Total revenues 25,290,852 - 25,290,852 6,875,683 Operating Expenses:
Personnel costs 3,538,153 - 3,538,153 910,905 Operating costs 753,462 - 753,462 1,687,740 Contractual 17,711,080 - 17,711,080 378,811 Depreciation 2,840,701 - 2,840,701 1,404,485 Total operating expenses 24,843,396 - 24,843,396 4,381,941 Operating income (loss) 447,456 - 447,456 2,493,742 Non-Operating Revenues (Expenses):
Investment earnings 17,995 932 18,927 10,638 Interest payments (136,906) - (136,906) - Gain (loss) on sale of capital assets - - - 105,242 Total non-operating revenues (expenses) (118,911) 932 (117,979) 115,880 Income (loss) before contributions
and transfers 328,545 932 329,477 2,609,622 Capital contributions - connection fees 198,621 - 198,621 - Transfers in 127,108 - 127,108 67,000 Transfers out (2,770,800) - (2,770,800) - Change in net position (2,116,526) 932 (2,115,594) 2,676,622 Net Position:
Beginning of fiscal year 74,788,427 1,927,202 76,715,629 15,009,631 Net position at end of year 72,671,901 $ 1,928,134 74,600,035 17,686,253 Reconciliation of Changes in Net Position to the Statement of Activities:
(2,115,594)
Adjustment to reflect the consolidation of internal service activities related to enterprise funds 81,666 Changes in Net Position of Business-Type Activities per Statement of Activities (2,033,928)$ Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds
See accompanying notes to financial statements
CITY OF FONTANA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2021
Business-type Activities
Enterprise Funds
31 447
Exhibit J
Governmental
Activities
Non-Major Internal Service
Enterprise Fund - Fund -
Sewer Water Fleet
Operations Operations Totals Operations
Cash Flow from Operating Activities:
Cash received from customers 24,861,769 $ - 24,861,769 6,873,708 Cash payments to suppliers of goods and services (17,818,500) - (17,818,500) (2,034,862) Cash payments to employees for services (3,114,442) - (3,114,442) (910,905) Net cash provided by (used for) operating activities 3,928,827 - 3,928,827 3,927,941 Cash Flows from Noncapital Financing Activities:
Transfers received 127,108 7,928 135,036 - Transfers paid (3,273,040) - (3,273,040) - Net cash provided by (used for) noncapital financing activities (3,145,932) 7,928 (3,138,004) - Cash Flows from Capital and Related Financing Activities:
Payments for debt service - principal payments (771,870) - (771,870) - Payments for debt service - interest payments (136,906) - (136,906) - Capital contributions 198,621 - 198,621 - Acquisition and construction of capital assets (71,309) - (71,309) (3,504,431) Net cash provided by (used for) capital and related financing activities (781,464) - (781,464) (3,504,431) Cash Flows from Investing Activities:
Investment earnings 556,932 73,508 630,440 24,293 Net cash provided by investing activities 556,932 73,508 630,440 24,293 Net increase (decrease) in cash and cash equivalents 558,363 81,436 639,799 447,803 Cash and cash equivalents - beginning of year 21,280,554 562,756 21,843,310 9,396,583 Cash and cash equivalents - end of year 21,838,917$ 644,192 22,483,109 9,844,386 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities:
Operating Income (Loss) 447,456 $ - 447,456 2,493,742 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Depreciation 2,840,701 - 2,840,701 1,404,485 Changes in Assets and Liabilities:
Accounts receivable (273,626) - (273,626) (1,975) Due from other governments (155,458) - (155,458) - Inventories 10,651 - 10,651 33,008 Deferred outflows - pension related 44,085 - 44,085 - Deferred outflows - OPEB related (233,829) - (233,829) - Accounts payable 626,537 - 626,537 (1,319) Deposits payable 8,855 - 8,855 - Accrued compensated absences 64,871 - 64,871 - Deferred inflows - pension related (122,368) - (122,368) - Deferred inflows - OPEB related 110,623 - 110,623 - Net pension liability 388,243 - 388,243 - Net OPEB liability 172,086 - 172,086 - Net cash provided by (used for) operating activities 3,928,827 $ - 3,928,827 3,927,941 There were no non-cash investing, capital or financing activities for the year ended June 30, 2021.
See accompanying notes to financial statements
CITY OF FONTANA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Business-type Activities
Enterprise Funds
32 448
Exhibit K
Private Purpose
Trust Fund
Custodial Successor Agency
Funds of the Former RDA
Assets:
Cash and investments 6,959,820 $ 436,048 Receivables (net):
Assessments 471,710 -
Interest - 1,123,211
Loans receivable - 2,677,912 Allowance for doubtful accounts - (1,971,279) Due from other governments - 16,538 Restricted assets:
Cash and investments 26,361,377 19,353,954 Total assets 33,792,907 21,636,384
Liabilities:
Accounts payable - 110,714 Interest payable - 2,586,304 Due to other governments 195,568 - Long-term liabilities:
Due in one year - 16,884,725 Due in more than one year - 451,388,251 Total liabilities 195,568 470,969,994 Net Position:
Held for other organizations 6,843,037 - Restricted for debt service 26,754,302 (449,333,610) Total Net Position 33,597,339 $ (449,333,610) $ See accompanying notes to financial statements
CITY OF FONTANA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
33 449
Exhibit L
Private Purpose
Trust Fund
Custodial Successor Agency
Funds of the Former RDA
Additions:
Contributions from property owners 16,013,855 $ 37,114,549 $ Interest and change in fair value of investments 355,549 12,193 Other revenue 4,364,499 770,370 Total additions 20,733,903 37,897,112 Deductions:
Contractual services 2,315 10,400 Administrative expense 866,553 20,430,769 Interest expense 6,634,568 620,108 Contributions to other governments - 325,150 Principal payments 6,110,639 - Total deductions 13,614,075 21,386,427 Changes in net position 7,119,828 16,510,685 Net Position - Beginning of the Year, as restated 26,477,511 (465,844,295) Net Position - End of the Year 33,597,339 $ (449,333,610)$
CITY OF FONTANA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2021
See accompanying notes to financial statements
34 450
CITY OF FONTANA
Notes to the Financial Statements
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1. Organization and Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Fontana was incorporated on June 25, 1952, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five-member board. As required by generally accepted accounting principles, these financial statements present the City of Fontana (the primary government) and its component units. The City operates under a Council-Manager form of government, and currently provides a wide variety of services to its citizens, including police, public services, community development, general administrative and other services.
The inclusion of an organization within the scope of the reporting entity of the City of Fontana is based on the provisions of GASB Statement No. 14 and amended with GASB Statement No. 61. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component unit:
1. The members of the City Council also act as the governing body of the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Housing Authority (Housing Authority), the Fontana Community Foundation, the Fontana Fire Protection District (Fire District) and the Fontana Public Facilities Financing Authority.
2. The Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Housing Authority, the Fontana Community Foundation, the Fontana Fire Protection District and the Fontana Public Facilities Financing Authority are managed by employees of the City. A portion of the City’s general overhead costs is allocated to the Fire District and the Housing Authority.
3. The City, the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Housing Authority, the Fontana Community Foundation, the Fire District and the Fontana Public Facilities Financing Authority are financially interdependent. They provide financial benefit/burden to the City.
Blended Component Units:
The Fontana Industrial Development Authority was established February 3, 1981, pursuant to Government Code Section 91500 of the State of California for the purpose of encouraging and financing industrial development within areas of the City of Fontana. There was no activity for the year being reported therefore the Fontana Industrial Development Authority is not presented in this report.
The Fontana Public Financing Authority was established on May 2, 1989, pursuant to Government Code Section 6500 of the State of California (Joint Exercise of Powers). Its purpose is to assist in the financing of capital improvements and working capital requirements of the City, the Former Redevelopment Agency and any other eligible local agencies. Separate financial statements are not available for the Authority.
35 451
CITY OF FONTANA
Notes to the Financial Statements
The Fontana Housing Authority was established May 3, 1994, pursuant to Government Code Section 34240 of the State of California for the purpose of rehabilitating and increasing the low- and moderate-income housing stock in the City of Fontana. Separate financials statements are not available for the Authority.
The Fontana Community Foundation was established on April 27, 2005, pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 for the purpose of aiding and assisting in the implementation, improvement and maintenance of public services that preserve and promote the health and welfare and education of local citizenry of the City of Fontana. Separate financials statements are not available for the Foundation.
The Fontana Fire Protection District was established on July 1, 2008 pursuant to the State of California Health and Safety Code Section 13800 for the purpose of providing fire suppression, emergency medical, fire prevention and education services within the city limits and the unincorporated area within the District’s Sphere of Influence. Separate financials statements are not available for the District.
The Fontana Public Facilities Financing Authority was established on September 9, 2014, pursuant to Government Code Section 6500 of the State of California (Joint Exercise of Powers). Its purpose is to assist in the financing of capital improvements and working capital requirements of the City, the Fontana Fire Protection District and any other eligible local agencies. Separate financial statements are not available for the Authority.
b. Government-Wide and Fund Financial Statements
The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. For the most part, the effect of interfund activities has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, 36 452
CITY OF FONTANA
Notes to the Financial Statements
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period or 180 days for certain intergovernmental revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
The City’s fiduciary funds consist of custodial funds and a private purpose trust fund. Custodial funds account for assets held by the City for other governments or individuals. Fiduciary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. 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.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
The Fire Protection District Special Revenue Fund accounts for revenues received as part of property taxes, permits, and fees, that are to be used for fire suppression, emergency medical, fire prevention and education services incurred by the District within the City’s Sphere of Influence.
The Housing Authority Special Revenue Fund accounts for the assets and activities transferred from the Former Fontana Redevelopment Agency that will be monies to be used to increase and improve the community's supply of low and moderate income housing.
The Economic Stimulus Fund accounts for federal funds received due to COVID-19 to assist in the economic recovery of the City.
The Capital Reinvestment Fund accounts for discretionary infrastructure projects.
The Capital Improvement Fund accounts for activities related to the construction of the South Fontana Sports Park and the Southridge Dog Park.
37 453
CITY OF FONTANA
Notes to the Financial Statements
The Future Capital Projects Fund accounts for capital improvement reimbursements from the San Bernardino County Transportation Authority (SBCTA) that is used for general infrastructure improvements throughout the City.
The Sewer Expansion Fund accounts for revenues received from development impact fees which, in turn, are reported to the Inland Empire Utilities Agency (IEUA) for capital expansion.
The Community Facilities Districts Funds account for activities related to the maintenance of City landscaped areas.
The Traffic Mitigation Capital Project Fund accounts for the revenues received from development impact fees which, in turn, are expended for traffic studies, planning and construction of traffic flow improvements.
The City reports the following major proprietary fund:
The Sewer Operations Fund is used to account for the operation of the City’s sewer utility system, a self-supporting activity which renders services on a user charge basis to residences and businesses located in the City.
Additionally, the City reports the following fund types:
Governmental Fund Types
Special Revenue Funds – to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specific purposes.
Debt Service Funds – to account for the accumulation of resources for, and the payment of, long-term debt obligation principal, interest and related costs.
Capital Project Funds – to account for financial resources to be used for the acquisition or construction of major capital facilities.
Proprietary Fund Types
Enterprise Funds – to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges.
Internal Service Fund – to account for financial transactions related to replacement of City-owned vehicles and equipment. These services are provided to other departments or agencies of the City, on a cost reimbursement basis.
38 454
CITY OF FONTANA
Notes to the Financial Statements
Fiduciary Fund Types
Custodial Funds – to account for assets held by the City for other governments or individuals. These funds include debt service transactions on Community Facilities Districts bonds for which the City is not obligated.
Private Purpose Trust Fund - accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating 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 enterprise funds and the internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service fund 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 non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
d. Assets, Liabilities and Net Position or Fund Balance
Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
Investments for the City are reported at fair value. The City’s policy is generally to hold investments until maturity or until fair value equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
39 455
CITY OF FONTANA
Notes to the Financial Statements
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk).
These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (current portion of interfund loans) or “advances to/from other funds” (the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”.
Advances between funds, as reported in the fund financial statements, are offset by a non-spendable fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.
The City has elected, by ordinance, that the duties of assessing and collecting property taxes be performed by the San Bernardino County Assessor and Tax Collector, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on January 1 preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as of January 1. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10.
Unsecured personal property taxes are due on July 1 each year and become delinquent if not paid by August 31.
Functional Classifications
Expenditures of the Governmental funds are classified by function. Functional classifications are defined as follows:
General Government includes legislative activities which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities which provide management or support services across more than one functional area.
Public Safety includes those activities which involve the protection of people and property.
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CITY OF FONTANA
Notes to the Financial Statements
Public Works includes those activities which involve the maintenance and improvement of City streets, roads and park department development and maintenance.
Community Development includes those activities which enhance the general quality of life and for protective inspections except those related to fire.
Community Services includes those activities which provide all cultural and recreational programs and facilities.
Engineering includes those activities which provide specialized skills and knowledge in support of the operation of government.
Inventories, Prepaids and Land Held for Resale
All inventories are valued at cost using the first-in, first-out (FIFO) method. Inventories consist of expendable supplies held for consumption.
Inventory costs are recorded as expenditures when used.
The General Fund inventory is accounted for using the consumption method and is offset by a reservation of fund balance in the fund-level statements, which indicates that it does not constitute “available spendable resources.”
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements.
Land purchased for resale is capitalized as inventory at acquisition cost or net realizable value, if lower.
Restricted Assets
Restricted assets represent unexpended bond proceeds, interest earnings thereon and reserve amounts of certificates of participation, tax allocation bonds, and special assessment bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction of improvements to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 ($50,000 for intangibles and $100,000 for infrastructure) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
In accordance with GASB 34, the City has reported general infrastructure assets acquired in prior and current years. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital 41 457
CITY OF FONTANA
Notes to the Financial Statements
assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Property, plant and equipment of the primary government is depreciated using the straight-line method over the following estimated useful lives:
Asset Years
Buildings and improvements 40-55 years
Machinery and equipment 3-20 years
Vehicles 5-20 years
Infrastructure 20-30 years
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government reports deferred outflows of resources related to pensions arising from certain changes in the collective net pension liability and OPEB liability.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has several items that qualify for reporting in this category:
1. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues for revenues that are measurable but are not collected within 60 days of the end of the current fiscal period or 180 days for certain intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
2. Pension related deferred inflows, is reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the collective net pension liability.
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused personal leave which includes both vacation and sick pay benefits. All personal leave is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. The General Fund and the Sewer Operations Fund are typically used to liquidate these obligations. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net 42 458
CITY OF FONTANA
Notes to the Financial Statements
position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
The City is subject to a legal bonded indebtedness limit of 15 percent of the assessed value of all real and personal property in the City, excluding any bonded indebtedness of the Successor Agency. At June 30, 2021, the City had bonded indebtedness of $36,185,000 against its debt limit of $3,375,531,525, which is 1.07 percent of the total limit.
Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by City of Fontana. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the OPEB plan (OPEB Plan), and additions to/deductions from the OPEB Plan have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes.
43 459
CITY OF FONTANA
Notes to the Financial Statements
For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
Net position flow assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
Fund balance flow assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
e. Reconciliation of Government-Wide and Fund Financial Statements
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance of governmental funds and net position of governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including net pension liability, are not due and payable in the current period and, therefore, is not recognized in the funds.” The detail of this $307,057,483 long-term liabilities difference is as follows:
44 460
CITY OF FONTANA
Notes to the Financial Statements
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states that “the issuance of long-term debt provides current financial resources to governmental funds, but the issuing debt increases long-term liabilities in the statement of net position.” Repayment of bond principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position.” The detail of this $1,230,000 difference are as follows:
Another element of that reconciliation states that “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 governmental funds.” The details of this $961,045 are as follows:
36,185,000$
Loan payables 3,259,217
13,983,035
Compensated absences 10,320,232
Other post employment benefits liability 68,947,144
Net pension liability 171,767,710
2,595,145
funds to arrive at net position of governmental activities 307,057,483$ Net adjustment to reduce fund balances of governmental
Lease revenue bonds payable
Claims and judgments
Bond premium to be amortized
1,230,000$
1,230,000$
Net adjustment to increase net changes in fund balances of governmental funds to arrive at changes in net position of governmental activities
Principal repayments:
Lease revenue bonds
45 461
CITY OF FONTANA
Notes to the Financial Statements
II. STEWARDSHIP
Note 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).
The City uses the following procedures in establishing the budgetary data reflected in the financial statements. After January 1, department heads prepare estimates for required appropriations for the fiscal year commencing the following July 1. The proposed budget includes estimated expenditures and forecasted revenues for the fiscal year. The data is presented to the City Manager for review. Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the upcoming fiscal year. The operating budget includes a summary of the proposed expenditures and financial resources of the City, as well as historical data for the preceding five fiscal periods. Public meetings are conducted at the civic center to obtain taxpayer comments. The City Council adopts the budget by June 30 through passage of an adopting resolution.
Budgets were legally adopted for the General, special revenue, debt service and all capital project funds during the fiscal year ended June 30, 2021. This appropriated budget covers substantially all City expenditures. All appropriated amounts shown are as originally adopted or as amended by the City Council. During the year, supplementary appropriations in the Governmental Funds were approved in the amount of $272,094,468. Additionally, amounts representing projects that were not completed were unappropriated at the end of the year, and reappropriated in the following year. Unexpended appropriations lapse at the year end.
The legal level of control is at the department level. Department heads are authorized to transfer budgeted amounts within their departments, within the same funds, with the approval of the City Manager. Transfers of appropriations between departments and between funds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. There were excess expenditures over appropriations in certain funds at the department level. However, this did not result in a negative fund balance of the individual funds because of expenditure savings from other departments in the fund and/or adequate revenues or sources in the fund to offset expenditures.
Excess of expenditures over appropriations in the individual major funds at the department level are as follows:
1,700,676
Compensated absences (873,141)
Accrued interest 20,987
Amortization of bond premiums/discounts 112,523
961,045$
of governmental funds to arrive at changes in net position of governmental activities
Claims and judgments
Net adjustment to increase net changes in fund balances 46 462
CITY OF FONTANA
Notes to the Financial Statements
All funds with expenditures exceeding appropriations are reviewed by the City as part of its regular quarterly budget report to ensure that adequate revenues and/or other sources are available to cover these expenditures. In the event that revenues and other sources are not sufficient to fund the following year’s planned expenditures, the budget for the following fiscal year may be adjusted to ensure that there are no fund balance deficits in any funds. Excess of expenditures over appropriations at the fund level for the fiscal year ending June 30, 2021 are as follows:
A budgetary comparison schedule not presented for the Down Payment Assistance special revenue fund as it did not have a legally adopted annual budget. Budgetary schedules for all other governmental funds are presented in the fund financial statements or the combining and individual fund statements and schedules.
Deficit Fund Balance
As of June 30, 2021, the following funds had deficit fund balances:
These deficit fund balances will be addressed through future year revenues and transfers.
Expenditures Appropriations Excess
General Fund
General Government
City administration 6,194,147 $ 6,124,414 $ 69,733 $ Expenditures Appropriations Excess
Special Revenue Funds
Traffic Safety 172,645 $ 113,165 $ 59,480 $ Deficit Fund Balance
Special Revenue Funds:
Grants 1,661,865 $
Housing and Community Development Block Grant 199,725
Federal Law Enforcement Block Grant 38,011
Community Services Reimbursements 358,476
Permanent Local Housing Allocation 161,918
Fiduciary Funds:
Successor Agency 449,333,610
47 463
CITY OF FONTANA
Notes to the Financial Statements
III. DETAILED NOTES ON ALL FUNDS
Note 3. Cash and Investments
The City follows the practice of pooling cash and investments of all funds except for restricted funds generally held by outside custodians and funds in its employees’ deferred compensation plans. Each fund’s portion of total cash and investments is summarized by fund type in the combined balance sheet as equity in pooled cash and investments. Amounts in the City’s deferred compensation plan are no longer reported on the City’s balance sheet as they are held in trust.
Interest income earned on pooled cash and investments is allocated to those funds which are required by law, local ordinance, administrative action or agreements to receive interest. Such allocation is made annually, at a minimum, based on the weighted average cash balances in each fund receiving interest. Interest income from cash and investments, which are restricted, is credited directly to the related fund.
Investments and Interest Receivable – Restricted
Restricted assets represent unexpended financing proceeds, interest earnings thereon and reserved amounts of certificates of participation, tax allocation bonds, and special assessment bonds. Under the related resolutions and indentures, the remaining proceeds are restricted for the use of future construction or improvement to the respective projects, for debt service or for reserve requirements. The majority of these assets are held by trustees and fiscal agents.
Authorized Investments
Under the provisions of the City’s investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of investments:
Restricted Assets
Cash and Cash with
Investments Fiscal Agent Total
Governmental activities 436,416,396 $ 34,294,047 $ 470,710,443 $ Business-type activities 22,483,109 - 22,483,109 Fiduciary funds 5,103,815 45,715,331 50,819,146 464,003,320$ 80,009,378 $ 544,012,698 $
48 464
CITY OF FONTANA
Notes to the Financial Statements
State Treasurer’s Local Agency Investment Fund (LAIF) Mortgage Pass-Through Securities (FHLMC or FNMA only) Corporate Obligations (medium-term notes and bonds) Commercial Paper U.S. Government Securities Certificates of Deposit Mutual Funds Negotiable Certificates of Deposit
Bankers’ Acceptances Investment Contracts
It is the City’s policy not to invest in Small Business Administration Obligations (SBAs), Repurchase Agreements, Reverse Repurchase Agreements, Financial Futures and Financial Option Contracts, or California State and Local Agency Obligations even though such investments are authorized under the California Government Code. All investments present at June 30, 2021 and during the fiscal year conform to the City’s investment policy.
Local Agency Investment Fund (LAIF)
The LAIF is a special fund of the California State Treasury, secured by the full faith and credit of the State of California, through which local governments may pool investments. Each city may invest up to $75,000,000 in LAIF for each entity. Investments in LAIF are highly liquid as deposits can be converted to cash within twenty-four (24) hours without loss of interest earned to such date.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the State pool is the same as the value of the pool shares.
Deposits
At June 30, 2021, the carrying amount of the City’s deposits was $22,141,745 and the bank balance was $29,590,120. The $7,448,375 difference represents outstanding checks and other reconciling items.
The California Government Code requires California banks and savings and loan associations to secure an Entity’s deposits by pledging government securities with a value of 110% of an Entity’s deposits. California law also allows financial institutions to secure Entity deposits by pledging first trust deed mortgage notes having a value of 150% of an Entity’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California, as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an “Agent of Depository” has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local government agency.
Credit Risk
The City’s investment policy limits investments in medium term notes (MTNs) and federal securities to those in a rating category of “A” or its equivalent or better by Moody’s or Standard and Poor’s rating service. As of June 30, 2021, the City’s investment in medium term notes, federal securities and money market funds consisted of the following:
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CITY OF FONTANA
Notes to the Financial Statements
As of June 30, 2021, the City’s investment in external investment pools were unrated.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City does not have a policy for custodial credit risk associated with deposits or investments.
Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain types of investments with any one issuer.
With respect to concentration risk, as of June 30, 2021, the City is in compliance with the restrictions of the investment policy.
In addition, GASB 40 requires a separate disclosure if any single issuer comprises more than 5% of the total investment value. As of June 30, 2021, the City has investments with the following issuers which exceed 5% of the total investment value:
Moody's Moody's
Federal Securities Rating Money Market Funds Rating
Federal Home Loan Bank Note Aaa US Bank Aaa
Federal Home Loan Mortgage Corporation Aaa First American Treasury Aaa Federal National Mortgage Association Aaa Wells Fargo Treasury Plus Aaa State Investment Pool (LAIF) $75 million /account
U.S. Government Securities 100%
Bankers Acceptances 40%
Commercial Paper 15%
Negotiable Certificates of Deposit 30%
Corporate Obligations 30%
Mutual Funds 15%
Mortgage Pass-Through Securities 20%
Certificates of Deposits 100%
Percentage of Pool
Allowed Investment Type
50 466
CITY OF FONTANA
Notes to the Financial Statements
Investments guaranteed by the U.S. Government and investments in mutual funds and external investment pools are excluded from this requirement.
Interest Rate Risk
The City’s investment policy limits investment maturity as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that at least 10% of the City’s portfolio shall mature in one year or less. The only exception to this maturity limit shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
As of June 30, 2021, the City had the following investments and maturities:
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The City has the following recurring fair value measurements as of June 30, 2021:
Federal Home Loan Mortgage Corp. 56,695,251 $ 12.430% 6 months 6 months 1 to 3 3 to 5 Fair
or less to 1 year years years Value
U.S Government Securities 56,607,020 $ - $ - $ - $ 56,607,020 $ Corporate Obligations - - 26,971,621 3,781,826 30,753,447 State Investment Pool 148,454,946 - - - 148,454,946 Treasury Notes - 21,015,816 181,613,040 - 202,628,856 Money Market Mutual Funds 79,479,471 - - - 79,479,471 284,541,437$ 21,015,816$ 208,584,661$ 3,781,826$ 517,923,740$ Investment Maturities
51 467
CITY OF FONTANA
Notes to the Financial Statements
Note 4. Receivables
Receivables as of June 30, 2021, for the City’s individual major funds and non-major, proprietary major and non-major, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Level 1 Level 2 Level 3 Total Fair Value
U.S Government Securities $ - $ 56,607,020 $ - $ 56,607,020 Corporate Obligations - 30,753,447 - 30,753,447 Treasury Notes - 202,628,856 - 202,628,856 Total investments measured at fair value $ - $ 289,989,323 $ - $ 289,989,323 Investments Not Reported in Fair Value Hierarchy
Money Market Mutual Funds $ 79,479,471
State Investment Pool (LAIF) 148,454,946
Total investments not reported in fair value hierarchy $ 227,934,417 Total investments held $ 517,923,740
Fair Value Hierarchy
Net Asset Value
Community Nonmajor
Fire Protection Housing Economic Capital Capital Future Capital Facilities Traffic Governmental General District Authority Stimulus Reinvestment Improvements Projects Districts Mitigation Funds 3,121,607$ 15,982 $ - $ - $ 5,910 $ - $ - $ - $ - $ 48,545 $ - - - - - - - - - 782,421 73,969 22,573 3,070,468 4,316 - 9,631 13,692 45 28,895 741,354 - - 72,057,520 - - - - - - 10,641,118 26,208,993 - - - - - - - - - 29,404,569$ 38,555 $ 75,127,988 $ 4,316 $ 5,910 $ 9,631 $ 13,692 $ 45 $ 28,895 $ 12,213,438 $ 205,532 - - - - - - - - 151,265 29,199,037$ 38,555 $ 75,127,988 $ 4,316 $ 5,910 $ 9,631 $ 13,692 $ 45 $ 28,895 $ 12,062,173 $ Loans to Successor Agency
Less allowance for
doubtful accounts
Accounts
Assessments
Interest
Loans
Special Revenue Capital Projects
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CITY OF FONTANA
Notes to the Financial Statements
Note: The allowance for doubtful accounts for non-major governmental funds is equal to 100% of the delinquent special assessments receivable at June 30, 2021.
Due to the uncollectability of the loans to the Successor Agency, an allowance for doubtful accounts has been recorded at June 30, 2021 for the loans that are pending approval by the State Department of Finance as enforceable obligations. An allowance has been recorded for these loans in the amount $3,305,829 in Sewer Operations funds. This allowance will remain in place until the State Department of Finance makes further determinations regarding the probability of collection on the loan balances. Several loans have been approved by the State Department of Finance; thus an allowance has not been recorded for the loans in the amounts of $26,208,993 in the General Fund.
Nonmajor Internal
Sewer Proprietary Service Fiduciary
Operations Funds Funds Funds Total
1,386,813$ - $ - $ - $ 4,578,857 $ - - - 471,710 1,254,131 21,340 639 9,848 1,123,263 5,120,033 3,274,916 1,299,841 - 2,677,912 89,951,307 3,305,829 - - - 29,514,822 7,988,898$ 1,300,480 $ 9,848 $ 4,272,885 $ 130,419,150 $ 3,305,829 - - 1,971,279 5,633,905 4,683,069$ 1,300,480 $ 9,848 $ 2,301,606 $ 124,785,245 $ Less allowance for
doubtful accounts
Accounts
Assessments
Interest
Loans
Loans to Successor Agency
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CITY OF FONTANA
Notes to the Financial Statements
Note 5. Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:
Beginning
Balance Balance
June 30, 2020 Transfers Increases Decreases June 30, 2021 Governmental activities:
Capital assets, not being depreciated
Land 198,812,495 $ - $ 1,113,795 $ (43,393,080) $ 156,533,210 $ Construction in progress 24,577,713 (8,038,264) 13,719,888 - 30,259,337 Total capital assets, not being depreciated 223,390,208 (8,038,264) 14,833,683 (43,393,080) 186,792,547 Capital assets, being depreciated
Buildings and improvements 293,015,004 5,141,097 - - 298,156,101 Machinery and equipment 25,553,118 - 1,392,572 (401,754) 26,543,936 Vehicles 31,484,556 - 3,564,309 (986,506) 34,062,359 Infrastructure 833,691,503 2,897,167 1,451,199 - 838,039,869 Intangibles 6,119,197 - 4,261,805 - 10,381,002 1,189,863,378 8,038,264 10,669,885 (1,388,260) 1,207,183,267 Less accumulated depreciation for:
Buildings and improvements (130,590,738) - (11,571,147) - (142,161,885) Machinery and equipment (20,030,917) - (1,526,703) 399,200 (21,158,420) Vehicles (20,342,725) - (2,209,160) 986,506 (21,565,379) Infrastructure (505,694,821) - (20,632,305) - (526,327,126) Intangibles (2,313,796) - (69,593) - (2,383,389) (678,972,997) - (36,008,908) 1,385,706 (713,596,199) Total capital assets, being depreciated, net 510,890,381 8,038,264 (25,339,023) (2,554) 493,587,068 Governmental activities capital assets, net 734,280,589 $ - $ (10,505,340) $ (43,395,634) $ 680,379,615 $ 54 470
CITY OF FONTANA
Notes to the Financial Statements
Beginning
Balance Balance
June 30, 2020 Transfers Increases Decreases June 30, 2021 Business-type activities:
Capital assets, not being depreciated
Construction in progress 365,511 $ - $ 71,309 $ - $ 436,820 $ Total capital assets, not being depreciated 365,511 - 71,309 - 436,820 Capital assets, being depreciated
Buildings and improvements 1,798,150 - - - 1,798,150 Machinery and equipment 603,611 - - - 603,611 Infrastructure 116,035,868 - - - 116,035,868 Intangibles 64,698 - - - 64,698 118,502,327 - - - 118,502,327 Less accumulated depreciation for:
Buildings and improvements (599,658) - (46,244) - (645,902) Machinery and equipment (585,723) - (7,211) - (592,934) Infrastructure (52,731,343) - (2,787,246) - (55,518,589) Intangibles (64,698) - - - (64,698) (53,981,422) - (2,840,701) - (56,822,123) Total capital assets, being depreciated, net 64,520,905 - (2,840,701) - 61,680,204 Business-type activities capital assets, net 64,886,416 $ - $ (2,769,392) $ - $ 62,117,024 $ 55 471
CITY OF FONTANA
Notes to the Financial Statements
Depreciation expense was charged to functions/programs of the primary government as follows:
The following material construction commitments existed at June 30, 2021:
Governmental activities:
General government 3,451,756 $ Business-type activities:
Public safety 3,013,087 Sewer Operations 2,840,701 Public works 6,029,952
Community development 1,259,911
Community services 1,433,547
Engineering 19,416,170
Total Depreciation charged to functions 34,604,423
Charged to Internal Service Fund 1,404,485
Total Governmental Activities 36,008,908$
Project Name
Contract
Amount
Expenditures
to date as of
June 30, 2021
Remaining
Commitments
Energy Services Proj Park Lighting 3,697,716 3,490,180 207,536 Foothill: Hemlock-Almeria Arterial 1,847,098 316,066 1,531,032 Valley Blvd at Almond Ave TS 1,080,635 57,585 1,023,050 Valley Blvd at Oleander Ave TS 1,182,058 - 1,182,058 San Sevaine PH I 1,087,555 515,231 572,325 56 472
CITY OF FONTANA
Notes to the Financial Statements
Note 6. Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2021, is as follows:
Due to/from other funds:
The amounts due to the General Fund are the result of negative cash balances at the end of the year.
Due To/From:
Receivable Fund Payable Fund Amount
General Fund Non-major Governmental Funds
Traffic Congestion Relief 466,466
Permanent Local Housing Allocation 150,955
Grants 104,377
Federal Law Enforcement Block Grant 32,522
Housing and Community Development Block Grant 994,242
Community Services Reimbursements 1,448,481
Community Facilities Districts 2,135,369
Grants General 101,775
Community Facilities District General 1,177
Fire Protection District Fire Protection 10,490,000
Sewer Operations General 502,240
Internal Service General 67,000
Total 16,494,604$
57 473
CITY OF FONTANA
Notes to the Financial Statements
Advances to/from other funds:
The advances from Future Capital Projects to the Capital Improvements fund are representative of a cooperative agreement entered into with the City of Ontario for the Etiwanda Avenue and Slover Avenue / Airport Drive Intersection Project. The City has agreed to pay for the City of Ontario’s DIF share of the project. The City of Ontario will reimburse the City three years after the project construction has been accepted.
The advances from Future Capital Projects to the Storm Drain fund are representative of the cost of the Duncan Storm Drain / I-15 Freeway to Citrus Avenue project. The City is expected to be reimbursed a portion of the costs from developer, Lewis Homes.
The advances from Future Capital Projects to the Traffic Mitigation fund are representative of cooperative agreements entered into with San Bernardino Associated Governments (SANBAG) for various transportation projects throughout the City. SANBAG will repay the amounts owed to the Measure I 2010-2040 fund over a thirty-year period, as Measure I funds are collected. As part of the cooperative agreement, the City was required to fund a certain percentage of each project with Development Impact Fees (DIF) collected in the Traffic Mitigation fund. In order to complete these projects now rather than over a thirty-year period, various funds advanced the SANBAG share and DIF share of each project.
There is no repayment schedule for these advances as the amounts will be repaid as collections are received.
Interfund transfers:
Interfund transfers primarily consist of allocation of administrative costs, transfer of funding to capital project funds, and transfer of funding to general debt service fund.
Advances to/from:
Receivable Fund Payable Fund Amount
Future Capital Projects Capital Improvements 1,717,369 $ Storm Drain 2,295,000
Traffic Mitigation 26,701,773
Total 30,714,142 $
58 474
CITY OF FONTANA
Notes to the Financial Statements
Fire Nonmajor
Protection Capital Capital Traffic Governmental Sewer Internal General District Reinvestment Improvement Mitigation Funds Operations Service Fund Total Transfer out:
General - $ -$ 5,000,000$ - $ - 2,772,502 $ - $ 67,000$ 7,839,502 $ Fire Protection District 3,867,401 - - - - 12,122,099 - - 15,989,500 Housing Authority 56,600 - - - - - - - 56,600 Capital Reinvestment 265,078 - - - - - - - 265,078 Capital Improvements 60,700 - - - - - - - 60,700 Future Capital Improvements 105,000 - - - - - - - 105,000 Traffic Mitigation 127,400 - - - - - - - 127,400 Sewer Expansion 122,966 - - - - - - - 122,966 CFD - Capital Projects Funds - - - 3,000,000 1,711,113 2,914,418 127,108 - 7,752,639 Nonmajor Governmental Funds 7,318,114 1,006,100 - - - 1,434,899 - - 9,759,113 Sewer Operations 2,770,800 - - - - - - - 2,770,800 14,694,059$ 1,006,100 $ 5,000,000 $ 3,000,000 $ 1,711,113 $ 19,243,918 $ 127,108 $ 67,000 $ 44,849,298 $ Transfers In:
59 475
CITY OF FONTANA
Notes to the Financial Statements
Note 7. Long-Term Debt
Long-term debt activity for the year ended June 30, 2021, was as follows:
Lease Revenue Bonds
2010 Lease Revenue Bonds
In December 2010, the Fontana Public Financing Authority issued $5,420,000 of Lease Revenue Bonds. The proceeds of the issue were used to finance the reconstruction of Fire Station # 71. The bonds pay interest semi-annually at rates ranging from 7.09% to 8.41% and mature from September 2013 through September 2042. Principal and interest payments are made from the lease income for certain real property and the improvements thereon.
Beginning Amounts Amounts
Balance Balance Due Within Due in More
June 30, 2020 Additions Retirements June 30, 2021 One Year Than One Year Governmental Activities:
Lease Revenue Bonds 37,415,000 $ - $ 1,230,000 $ 36,185,000 $ 1,300,000 $ 34,885,000 $ Claims and judgments 14,868,907 3,033,796 3,919,668 13,983,035 3,686,139 10,296,896 Compensated absences 9,447,091 6,067,461 5,194,320 10,320,232 5,194,320 5,125,912 Loan payable - SANBAG 4,074,021 - 814,804 3,259,217 407,402 2,851,815 Total Long-Term Debt - City 65,805,019 $ 9,101,257 $ 11,158,792 $ 63,747,484 $ 10,587,861 $ 53,159,623 $ Total Governmental Activity Long-Term Debt 65,805,019 $ 9,101,257 $ 11,158,792 $ 63,747,484 $ 10,587,861 $ 53,159,623 $ Unamortized bond premium 2,595,145 2,595,145
66,342,629$ 55,754,768$
Business-Type Activities:
Compensated absences 280,578 $ 297,786 $ 232,915 $ 345,449 $ 232,915 $ 112,534 $ Loans payable 7,355,897 - 771,870 6,584,027 863,155 5,720,872 Total Business-Type Activity Long-Term Debt 7,636,475 $ 297,786 $ 1,004,785 $ 6,929,476 $ 1,096,070 $ 5,833,406 $ Principal Interest Total
2022 80,000 $ 420,664 $ 500,664 $
2023 85,000 414,339 499,339
2024 95,000 406,947 501,947
2025 110,000 398,529 508,529
2026 120,000 389,084 509,084
2026-2031 790,000 1,769,661 2,559,661 2032-2036 1,195,000 1,410,019 2,605,019 2037-2041 1,730,000 750,019 2,480,019 2042-2043 870,000 111,052 981,052 Totals 5,075,000 $ 6,070,314 $ 11,145,314 $
2010 Lease Revenue Bonds
60 476
CITY OF FONTANA
Notes to the Financial Statements
2014 Lease Revenue Bonds
In November 2014, the Fontana Public Facilities Financing Authority issued $37,675,000 of Lease Revenue Bonds. The proceeds of the issue were used to refinance 2007 Lease Revenue Bonds with an outstanding balance of $31,110,000. The bonds pay interest semi- annually at rates ranging from 3.875% to 5.00% and mature from September 2015 through September 2037. Principal and interest payments are made from the lease income for certain real property and the improvements thereon.
SANBAG Loan Payable
The City entered into an agreement with San Bernardino Associated Governments “SANBAG” for the I-15 Duncan Canyon Interchange Project.
Under the agreements, SANBAG contributed $12.0 million of State Proposition 1B Corridor Mobility Improvement funds to the project. A portion of the SANBAG funding public share to the project needs to be paid back, totaling $4,074,021. The city has eight years to pay back the amount without interest. The outstanding balance as of June 30, 2021 is $3,259,217.
San Bernardino Trunk Sewer Loans
In March 2007, the City received approval from the State of California Water Resources Control Board for the San Bernardino Trunk Sewer Project. The Project was being funded by the State Revolving Fund on a reimbursement basis for construction costs incurred in relation to the Fiscal Year
Ending Principal Interest Total
2022 407,402 $ - $ 407,402 $
2023 407,402 - 407,402
2024 407,402 - 407,402
2025 407,402 - 407,402
2026 407,402 - 407,402
2027-2029 1,222,207 - 1,222,207 Totals 3,259,217 $ - $ 3,259,217 $
SANDBAG
Principal Interest Total
2022 1,220,000 $ 1,396,050 $ 2,616,050 $
2023 1,280,000 1,333,550 2,613,550
2024 1,345,000 1,267,925 2,612,925
2025 1,410,000 1,199,050 2,609,050
2026 1,480,000 1,126,800 2,606,800
2027-2031 8,565,000 4,446,500 13,011,500 2032-2036 10,825,000 2,158,400 12,983,400
2037-2041 4,985,000 201,300 5,186,300 Totals 31,110,000 $ 13,129,575 $ 44,239,575 $
2014 Lease Revenue Bonds
61 477
CITY OF FONTANA
Notes to the Financial Statements
project. The project was done in three phases, with each of the three phases being funded by a separate loan from the State Revolving Fund.
The loans will be repaid in twenty annual installments, payments commenced in the fiscal year ended June 30, 2009.
Mello-Roos Community Facilities Districts
Between 1988 and 2021, sixteen Community Facilities Districts have issued Special Tax Bonds. The bonds are authorized pursuant to the Mello- Roos Community Facilities Act of 1982 and are secured by and payable solely from the revenues of an annual special assessment tax levied against land within the Districts. The bonds are not backed by the full faith and credit or taxing power of the City and do not constitute indebtedness of the City. The City is not liable for the bonds, but acts as an agent for the bondholders in collecting the assessments from property owners, forwarding the collections to bondholders and initiating foreclosure proceedings if necessary.
The transactions occurring as a result of the City acting in an agent capacity are being accounted for in an agency fund. As the bonds are financing the construction and installation of certain public improvements, the transactions relating to the construction of the improvements are being accounted for in capital project funds. The bonds are not reflected as an indebtedness of the City at June 30, 2021.
Fiscal Year
Ending Principal Interest Principal Interest Principal Interest Principal Interest Total 2022 442,201 $ 60,040 $ 183,393 $ 29,784 $ 237,561 $ 31,841 $ 863,155 $ 121,665 $ 984,820 $ 2023 450,317 51,923 186,485 26,692 241,868 27,533 878,670 106,148 984,818 2024 458,583 43,658 189,627 23,547 246,253 23,148 894,463 90,353 984,816 2025 466,999 35,214 192,827 20,350 250,718 18,683 910,544 74,247 984,791 2026 475,571 26,670 196,078 17,098 255,264 14,138 926,913 57,906 984,819 2027 - 2029 977,487 27,020 608,299 31,233 524,496 14,307 2,110,282 72,560 2,182,842 Totals 3,271,158 $ 244,525 $ 1,556,709 $ 148,704 $ 1,756,160 $ 129,650 $ 6,584,027 $ 522,879 $ 7,106,906 $ San Bernardino Trunk Sewer - State Revolving Fund Loans Trunk Sewer Phase Lift Station Phase Force Main Phase Combined Loans 62 478
CITY OF FONTANA
Notes to the Financial Statements
IV. OTHER INFORMATION
Note 8. Risk Management
The City established risk management programs for workers’ compensation in 1978-79 and for general liability in 1983-84, which are accounted for in the City’s General Fund. The programs are supported by contributions from the other principal City funds and intra-fund transfers.
Effective with an excess coverage insurance policy on July 1, 1992, the workers’ compensation program provides for self-insurance up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to a maximum per incident of $45,000,000.
Under the City’s excess insurance policy for general liability, all claims incurred after October 1, 1992, are self-insured up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to maximum per incident of $25,000,000. The City is self-insured for general liability claims incurred prior to October 1, 1992.
Special Tax Bonds Date of Issue
Original Issue
Amount
Outstanding
Amount at June
30, 2021
CFD # 7 (County Club Estates) July 2005 3,985,000 $ 1,800,000 $ CFD # 11 (Heritage West End) November 2011 8,800,000 4,815,000 CFD # 12 (Sierra Lakes) July 2005 26,920,000 14,035,000 CFD # 22 (Sierra Hills South) June 2014 31,260,000 24,585,000 CFD # 31 (Citrus Heights North) July 2018 18,485,000 17,075,000 CFD # 37 (Montelago) September 2005 4,590,000 3,055,000 CFD # 70 (Avellino) July 2013 2,750,000 2,365,000 CFD # 71 (Sierra Crest) July 2016 5,915,000 5,325,000 CFD #74B (Citrus/Summit) June 2019 4,045,000 3,965,000 CFD # 80 (Bella Strada) August 2017 11,125,000 10,550,000 CFD # 81 (Gabriella) March 2018 7,180,000 6,890,000 CFD #86 (Etiwanda Ridge) February 2020 5,025,000 4,925,000 CFD #85 (The Meadows) October 2020 22,640,000 22,605,000 CFD #88 (Sierra Crest II) October 2020 6,510,000 6,510,000 CFD #89 (Belrose) November 2020 5,725,000 5,725,000 CFD #90 (Summit @ Rosena I) June 2021 22,260,000 22,260,000 Total Special Tax Bonds 187,215,000$ 156,485,000$
63 479
CITY OF FONTANA
Notes to the Financial Statements
There have been no significant changes in insurance coverage in the last four years. The amount of settlements has not exceeded the amount of insurance coverage for each of the past four fiscal years.
Liabilities under the City’s self-insurance programs are accrued and charged to expenses when claims are reasonably determinable and when the existence of the City’s liability is probable. The accrued liabilities for general liability include an estimate of incurred but not reported claims.
The following is a summary of the changes in the claims liability over the past two fiscal years:
There are several other legal actions pending against the City which management considers incidental to normal operations. These actions are not covered by insurance. All liabilities to be accrued are included in the claims and judgments amount stated above.
Note 9. Litigation
The City of Fontana has been named as a defendant in numerous lawsuits and claims arising in the course of operations. In the aggregate, these claims seek monetary damages in significant amounts. To the extent the outcome of such litigation has been determined to result in probable financial loss to the City, such loss has been accrued in the accompanying financial statements.
Note 10. Jointly Governed Organization
I.R.N.E.T.
The City of Fontana is a member of Inland Regional Narcotics Enforcement Team (I.R.N.E.T.), a joint powers authority of the police departments of 10 cities in San Bernardino and Riverside Counties, and participating county, federal and state law enforcement agencies. The organization was formed September 18, 1989, with the mission to promote coordinated law enforcement efforts and to address emerging criminal justice Claims payable, June 30, 2019 11,783,836$
Claims incurred (including IBNRs) 5,729,677
Claims paid/dismissed (2,644,606)
Claims payable, June 30, 2020 14,868,907$
Claims incurred (including IBNRs) 3,033,796
Claims paid/dismissed (3,919,668)
Claims payable, June 30, 2021 13,983,035$
64 480
CITY OF FONTANA
Notes to the Financial Statements
issues, mainly in the areas of drug trafficking and money laundering. The executive council consists of police chiefs of the cities and resident agents in charge of the federal and state law enforcement agencies. All financial decisions were made by the executive council. The members received monetary distributions from the asset seizures based on their respective contribution to the effort. Financial information for I.R.N.E.T. is not available.
Note 11. Other Post-Employment Benefits Liability
Plan Description
In addition to the pension benefits described in Note 12, the City provides post-retirement health care benefits (OPEB Plan) in accordance with City Council approval to all employees who retire from the City on or after reaching age 50 or over with at least five years of PERS-credited service. The post-retirement health care benefits are provided to eligible retirees by the City, as a single-employer plan. Additional requirements are set forth in the individual contracts for executive positions or in the Memorandum of Understanding (MOUs) for the five bargaining units operating within the City. The amount the City provides on the behalf of retirees is dictated in the contracts or MOUs.
Employees Covered
As of the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:
Contributions
The required contribution is based on projected pay-as-you-go financing requirements. For the fiscal year ending June 30, 2021, the City’s cash contributions were $2,695,099 in the form of current premiums, which is funded through the General Fund, and the estimated implied subsidy was $142,908 resulting in total payments of $2,838,007.
OPEB Liability
The City’s OPEB liability was measured as of June 30, 2020 and was determined by an actuarial valuation dated June 30, 2019 that was rolled forward to determine the June 30, 2020 OPEB liability, based on the following actuarial methods and assumptions:
Active employees 557
Inactive employees or beneficiaries currently receiving benefits 242 Inactive employees entitled to, but not yet receiving benefits 0 Total 799
65 481
CITY OF FONTANA
Notes to the Financial Statements
Notes:
(1) Pre-retirement mortality information was derived from data collected during 1997 to 2011 CalPERS Experience Study dated January 2014 and post-retirement mortality information was derived from the 2007 to 2011 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
(2) The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
Discount Rate
The discount rate used to measure the total OPEB liability was 2.66 percent. The discount rate is the average, rounded to 5 basis points, of the range of 3-20 year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO index, Fidelity GO AA 20 Year Bond Index. Sensitivity analysis showing a 1% increase and decrease in the discount rate is also provided.
Changes in the OPEB Liability
The changes in the OPEB liability for the OPEB Plan are as follows:
Actuarial Cost Method: Entry Age Normal
Actuarial Assumptions:
Discount Rate 2.66%
Inflation 2.50%
Salary Increases 2.75% per annum, in aggregate
Mortality Rate(1) Derived using CalPERS’ Membership Data for all funds
Pre-Retirement Turnover(2) Derived using CalPERS’ Membership Data for all funds
Healthcare Trend Rate
Based on recent premium experience
assuming 4.5%-6.25% increase due to
market trends then reduced to a rate
reflecting medical price inflation
66 482
CITY OF FONTANA
Notes to the Financial Statements
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease
(5.25% decreasing
to 3.50%)
Current Healthcare
Cost Trend Rates
(6.5% decreasing to
4.50%)
1% Increase
(7.25%
decreasing to
5.50%)
OPEB Liability $61,289,258 71,376,999 $ $84,076,936 Total OPEB
Liability
Balance at June 30, 2020
(Measurement Date June 30, 2019) 66,321,968$
Changes recognized for the measurement period:
Service cost 1,406,780
Interest 2,328,825
Differences between expected and actual experience (3,610,614) Changes of assumptions 7,714,949
Benefit payments (2,784,909)
Net Changes 5,055,031
Balance at June 30, 2021
(Measurement Date June 30, 2020) 71,376,999$
Increase (Decrease)
67 483
CITY OF FONTANA
Notes to the Financial Statements
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $4,220,761. As of fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:
The $2,838,007 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as OPEB expense as follows:
1% Decrease
(5.25% decreasing
to 3.50%)
Current Healthcare
Cost Trend Rates
(6.5% decreasing to
4.50%)
1% Increase
(7.25%
decreasing to
5.50%)
OPEB Liability $61,289,258 71,376,999 $ $84,076,936 Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 2,838,007 $ - $ Changes of assumptions 6,943,454 -
Differences between expected and actual experience - 3,249,553 Total 9,781,461 $ 3,249,553 $
Measurement
period Ended
June 30:
Deferred
Outflows/(Inflows)
of Resources
2021 $ 410,434
2022 410,434
2023 410,434
2024 410,434
2025 410,434
Thereafter 1,641,731
68 484
CITY OF FONTANA
Notes to the Financial Statements
Note 12. Pensions
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Local Government’s separate Safety (police and fire) and Miscellaneous (all other) Plans, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plan’s June 30, 2019 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Employees Covered
As of the June 30, 2020 measurement date, the following employees were covered by the benefit terms for each Plan:
Tier I Tier II Tier III
Prior to On or after After Prior to On or after
Hire Date July 1, 2011 July 1, 2011 January 1, 2013 July 1, 2011 July 1, 2011 Benefit Formula 3% @ 50 3% @ 55 2.7% @ 57 2.5% @ 55 2% @ 62 Final Average Compensation Period Highest 1-year salary Final 3-year average Final 3-year average Highest 1-year salary Final 3-year average Benefit Vesting Schedule 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service Benefit Payments Monthly Monthly Monthly Monthly Monthly Retirement Age 50 and above 50 and above 50 and above 55 and above 55 and above Monthly Benefit Basis Benefit factor, years of Benefit factor, years of Benefit factor, years of Benefit factor, years of Benefit factor, years of Required Employee Contribution Rates 9% 9% 8% 6.25%
To Be Paid By Employee - 9% 11.75% 3% 6.25%
To Be Paid By The City 9% - 5% -
Required Employer Contribution Rates 20.212% 20.212% 20.212% 9.377% 9.377% Safety Miscellaneous
69 485
CITY OF FONTANA
Notes to the Financial Statements
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions; payments made by the employer are paid from the General Fund of the City.
Actuarial Methods and Assumptions used to determine Total Pension Liability
The June 30, 2019 valuation was rolled forward to determine the June 30, 2020 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68
Actuarial Assumptions
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1
Post Retirement Benefit Increase
Derived using CalPERS’ Membership Data for all funds
The lesser of contract COLA or 2.50% until Purchasing
Power Protection
Allowance floor on purchasing power applies, 2.50% thereafter
Safety Miscellaneous
182 477
67 913
Active employees 186 547
Total 435 1,937
Inactive employees or beneficiaries
currently receiving benefits
Inactive employees entitled to but
not yet receiving benefits
70 486
CITY OF FONTANA
Notes to the Financial Statements
1 The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MO-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.
Change of Assumptions
There were no changes of assumptions.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
71 487
CITY OF FONTANA
Notes to the Financial Statements
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2017.
Asset Class 1 New Strategic
Allocation
Real Return
Years 1 – 102
Real Return
Years 11+3
Global Equity 50.0% 4.8% 5.98%
Global Fixed Income 28.0 1.00 2.62
Inflation Sensitive 0.0 0.77 1.81
Private Equity 8.0 6.30 7.23
Real Estate 13.0 3.75 4.93
Liquidity 1.0 0.00 (0.92)
1 In the System’s CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2An expected inflation of 2.0% used for this period.
3An expected inflation of 2.92% used for this period.
Pension Plan Fiduciary Net Position
The plan fiduciary net position (assets) disclosed in the GASB report may differ from the plan assets reported in the actuarial valuation report due to several reasons. First, CalPERS must keep Reserves for Deficiencies and Fiduciary Self Insurance. These amounts are excluded for rate setting purposes in the actuarial valuation report while required to be included for GASB reporting purposes. In addition, differences may result from early CAFR closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. These reports are publicly available reports that can be obtained at https://www.calpers.ca.gov/page/investments/about-investment-office/investment-financial-reports.
72 488
CITY OF FONTANA
Notes to the Financial Statements
Liability, Expense and Deferred Outflows/Inflows
The components of the net pension liability at June 30, 2021 are as follows:
Pension expense
At June 30, 2021, the City recognized pension expense for CalPERs of $26,596,194.
Deferred Outflows/Inflows
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Total Pension Liability $535,513,755
Plan's Fiduciary Net Position 358,299,295
Net Pension Liability $177,214,460
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 66.91%
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to measurement date $ 18,789,759 $ - Differences between Expected and Actual Experience 12,568,592 (261,915) Changes of Assumptions 4,678,613 (368,957) Net Difference between Projected and Actual Earnings
on Pension Plan Investments 2,774,798 - Total $ 38,811,762 $ (630,872) 73 489
CITY OF FONTANA
Notes to the Financial Statements
Changes in Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period for the Safety plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2019 (VD) $281,289,663 $178,300,928 $102,988,735 Changes Recognized for the Measurement Period:
Service Cost 6,574,765 6,574,765
Interest on the Total Pension Liability 20,347,932 20,347,932 Changes of Benefit Terms - - Differences between Expected and Actual Experience 6,367,568 6,367,568 Changes of Assumptions - - Net Plan to Plan Resource Movement - - Contributions from the Employer 10,500,692 (10,500,692) Contributions from Employees 2,720,062 (2,720,062) Net Investment Income 8,990,686 (8,990,686)
Benefit Payments, including Refunds of Employee Contributions (12,716,297) (12,716,297) - Administrative Expense (251,361) 251,361
Other Miscellaneous Income/(Expense) -
Net Changes during 2019-20 20,573,968 9,243,782 11,330,186 Balance at: 6/30/2020 (MD) $301,863,631 $187,544,710 $114,318,921 Increase (Decrease)
74 490
CITY OF FONTANA
Notes to the Financial Statements
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2019 (VD) $221,320,262 $162,907,891 $58,412,371 Changes Recognized for the Measurement Period:
Service Cost 5,099,318 5,099,318
Interest on the Total Pension Liability 15,725,500 15,725,500 Changes of Benefit Terms - - Differences between Expected and Actual Experience 629,230 629,230 Changes of Assumptions - - Net Plan to Plan Resource Movement - - Contributions from the Employer 6,606,745 (6,606,745) Contributions from Employees 2,313,683 (2,313,683) Net Investment Income 8,280,112 (8,280,112)
Benefit Payments, including Refunds of Employee Contributions (9,124,186) (9,124,186) - Administrative Expense (229,660) 229,660
Other Miscellaneous Income/(Expense) -
Net Changes during 2019-20 12,329,862 7,846,694 4,483,168 Balance at: 6/30/2020 (MD) $233,650,124 $170,754,585 $62,895,539 Increase (Decrease)
75 491
CITY OF FONTANA
Notes to the Financial Statements
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage- point higher (8.15 percent) than the current rate:
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, 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 inflows and deferred outflows to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected and actual earnings 5 year straight-line amortization
All other amounts Straight-line amortization 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).
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired).
The EARSL for the Safety Plan for the measurement period ending June 30, 2020 was 5.4 years, which was obtained by dividing the total service years of 2,334 (the sum of remaining service lifetimes of the active employees) by 435 (the total number of participants). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Discount Rate – 1%
(6.15%)
Current Discount Rate
(7.15%)
Discount Rate + 1%
(8.15%)
Plan’s Net Pension Liability
Safety $158,508,776 $114,318,921 $78,316,619
Plan’s Net Pension Liability
Misc. $96,551,569 $62,895,539 $35,355,017
76 492
CITY OF FONTANA
Notes to the Financial Statements
The EARSL for the Miscellaneous Plan for the measurement period ending June 30, 2020 was 3.4 years, which was obtained by dividing the total service years of 6,576 (the sum of remaining service lifetimes of the active employees) by 1,936 (the total number of participants). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ending June 30, 2020 (the measurement date), the City of Fontana recognized a pension expense of $16,410,234 for the Safety Plan.
As of June 30, 2021, the City of Fontana reports other amounts for the Safety Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
Employer contributions of $11,557,409, were made after the measurement date of the net pension liability but before the end of the fiscal year; these contributions are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 11,557,409 $ - Differences between Expected and Actual
Experience 9,891,147 (169,090) Changes of Assumptions 4,678,613 (206,823) Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
1,482,055
Total $ 27,609,224 $ (375,913) 77 493
CITY OF FONTANA
Notes to the Financial Statements
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
For the measurement period ending June 30, 2020 (the measurement date), the City of Fontana recognized a pension expense of $10,185,961 for the Miscellaneous Plan.
As of June 30, 2021, the City of Fontana reports other amounts for the Miscellaneous Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
Employer contributions of $7,232,350, were made after the measurement date of the net pension liability but before the end of the fiscal year; these contributions are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
Measurement period
Ended June 30:
Deferred
Outflows/(Inflows) of
Resources
2021 $ 4,450,177
2022 4,934,939
2023 3,316,448
2024 2,502,665
2025 471,673
Thereafter -
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 7,232,350 $ - Differences between Expected and Actual
Experience 2,677,445 (92,825) Changes of Assumptions - (162,134) Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
1,292,743 -
Total $ 11,202,538 $ (254,959) 78 494
CITY OF FONTANA
Notes to the Financial Statements
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Note 13. Public Agency Retirement Services
For some City employees (regular-part-time employees) that do not qualify for inclusion in the CalPERS pension plans administered by the City, the City offers an alternative plan, the Public Agency Retirement Services Alternate Retirement System Plan (PARS ARS). Employees are enrolled, on a voluntary basis, in this defined contribution plan; the plan requires a minimum contribution of 7.5% of the employee wages and are paid by the employees only. There is no annual expense to the City for this benefit.
Note 14. Classification of Fund Balances
In the fund financial statements, government funds report the following fund balance classification:
Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is resolution.
Assigned include amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The Management Services Director is authorized to assign amounts to a specific purpose, which was established by the governing body in Administrative Policy # 20-32.
Measurement period
Ended June 30:
Deferred
Outflows/(Inflows) of
Resources
2021 $ 798,816
2022 1,354,536
2023 894,942
2024 666,935
2025 -
Thereafter -
79 495
CITY OF FONTANA
Notes to the Financial Statements
Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.
The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. In governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.
80 496
CITY OF FONTANA
Notes to the Financial Statements
The details of the fund balances as of June 30, 2021 are presented below:
Adequate reserve levels are a necessary component of the City’s overall financial management strategy and to provide for the orderly provision of services to the citizens of the City of Fontana. Those necessary components are as follows:
Economic uncertainties, local disasters and other hardships or downturns in the local economy Contingencies for unforeseen operating or capital needs
The balance of these components as of June 30, 2021, is $8,514,643 and is included in the unassigned fund balance in the General Fund.
Note 15: Fontana Fire Protection District
The Fontana Fire Protection District (the District) was formed on July 1, 2008 pursuant to the State of California Health and Safety Code commencing with Section 13800, for the purpose of providing fire protection services. The District is a component unit of the City of Fontana; the City of Fontana has oversight responsibility of the District determined by criteria such as financial interdependency, selection of governing authority and designation of management, budget control, ability to significantly influence operations, etc.
Fire Future Community Other
Protection Housing Economic Capital Capital Capital Sewer Facilities Traffic Governmental General District Authority Stimulus Reinvestment Improvements Projects Expansion Districts Mitigation Funds Totals Fund balances:
Nonspendable
Deposits 69,025 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 69,025 $ Inventories 253,533 - - - - - - - - - 862,446 1,115,979 Land held for resale - - - - - - - - - - - - Loan receivables - - - - - - - - - - 2,863,928 2,863,928 Restricted
Community facilities districts - - - - - - - - 31,019,752 - 37,479,651 68,499,403 Community serv ices - - - - 4,501,599 - 4,379,694 - - - - 8,881,293 Debt service reserve - - - - - - - - - - 622,020 622,020 Government-access channel 1,510,351 - - - - - - - - - - 1,510,351 Housing & community development - - 87,708,994 17,198 - - - - - 7,696,915 3,489,815 98,912,922 Lighting and landscaping - - - - - - - - - - 6,290,709 6,290,709 Municipal Services Impact - - - - - - - - - - 21,552,248 21,552,248 Public safety - 21,207,511 - - - - - - - - 7,524,441 28,731,952 Transportation - - - - - - - - - - 23,176,046 23,176,046 Solid waste mitigation - - - - - - - - - - 3,170,342 3,170,342 Committed
PERS reserve 6,038,085 - - - - - - - - - - 6,038,085 Assigned
Capital projects 786,174 - - - 15,322,165 25,049,297 40,580,842 1,148,122 - - 66,148,453 149,035,053 Equipment replacement 6,797,649 - - - - - - - - - - 6,797,649 Retiree benefits 26,360,583 - - - - - - - - - - 26,360,583 Unassigned 75,240,512 - - - - - - - - - (1,605,563) 73,634,949 Total fund balances 117,055,912$ 21,207,511 $ 87,708,994 $ 17,198 $ 19,823,764 $ 25,049,297 $ 44,960,536 $ 1,148,122 $ 31,019,752 $ 7,696,915 $ 171,574,536 $ 527,262,537 $ Capital ProjectSpecial Revenue
81 497
CITY OF FONTANA
Notes to the Financial Statements
The accounts of the District have been included within the scope of the basic financial statement of the City because the City Council has financial accountability over the operations of the District. The following information is relative only to the District as a component unit, which is an integral part of the total reporting entity.
The District reports the following governmental funds:
The Fire Protection District Special Revenue Fund accounts for the cost of fire suppression, emergency medical, fire prevention and education services incurred by the District within the City’s Sphere of Influence.
The Fire Protection District CFD Special Revenue Fund accounts for the special taxes levied on property developed after January 2, 2001 to finance fire protection and suppression services within the Community Facilities District.
The Fire Protection District Capital Project Fund accounts for the money expended on capital improvements and equipment replacement for the District.
a. Cash and investments
As of June 30, 2021, the District reported $41,478,129 as cash and investments.
The District’s funds are pooled with the City of Fontana’s cash and investments in order to generate optimum interest income. Each fund’s share of the pooled cash account is separately accounted for, and investment income is allocated to all participating funds based on the relationship of their average daily cash balances to the total of the pooled cash and investments. Information regarding the authorized types of deposits and investments, the type of risks (i.e. credit, interest rate, custodial, etc.) and other disclosures associated with the City’s pooled cash and investment is included in Note 3.
82 498
CITY OF FONTANA
Notes to the Financial Statements
b. Capital Assets
An analysis of capital assets as of June 30, 2021, follows:
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
Public safety – fire protection $ 1,283,647
Balance
June 30, 2020
as Previously Balance
Reported Increases Decreases June 30, 2021
Capital assets, not being depreciated
1,122,000$ - $ - $ 1,122,000 $ 1,122,000 - - 1,122,000 Capital assets, being depreciated
16,404,903 - - 16,404,903 2,194,559 71,397 - 2,265,956 Vehicles 11,782,729 - - 11,782,729 Infrastructure 1,012,418 - - 1,012,418 31,394,609 71,397 - 31,466,006 Less accumulated depreciation for:
(3,755,355) (468,459) - (4,223,814) (961,054) (220,048) - (1,181,102) (6,778,939) (561,317) - (7,340,256) (204,959) (33,823) - (238,782) (11,700,307) (1,283,647) - (12,983,954) 19,694,302 (1,212,250) - 18,482,052 20,816,302$ (1,212,250) $ - $ 19,604,052 $ Land
Total capital assets, not being depreciated
Buildings and improvements
Machinery and equipment
Total Capital assets, net
Buildings and improvements
Machinery and equipment
Vehicles
Infrastructure
Total capital assets, being depreciated, net
83 499
CITY OF FONTANA
Notes to the Financial Statements
c. Long-Term Debt
The District does not have any outstanding debt as of June 30, 2021.
d. Fund Balance
The district reports fund balances in accordance with the classifications consistent with the City, see Note 14 for more information on the types and descriptions of the fund balance classifications. The details of the fund balances as of June 30, 2021 are presented below:
e. Fire Protection Services Agreement
The District entered into a fire protection services agreement with the San Bernardino County Fire Protection District (County) effective July 1, 2018 for a period of twenty (20) years. The agreement calls for the County to provide to the District fire prevention, fire investigation, fire suppression, advance life support services, ambulance transportation service, hazardous materials, and rescue services.
The District paid $30,343,680 to the County for these services during the fiscal year ending June 30, 2021. The County also provides various administrative duties including billing and collecting of advanced life support and ambulance transportation fees for the District.
The District leased its real property, furniture and fixtures, and fire apparatus and equipment to the County for one dollar for the life of the contract. The agreement calls for the County to maintain insurance for workers compensation, comprehensive general and automobile.
Fire Fire Fire
Protection Protection Protection
District District CFD District Totals
Fund balances:
Restricted
Public safety 21,207,511 4,440,011 - 25,647,522 Assigned
Equipment replacement - - 15,884,193 15,884,193 Total fund balances 21,207,511$ 4,440,011$ 15,884,193$ 41,531,715$ Special Revenue Capital Project
84 500
CITY OF FONTANA
Notes to the Financial Statements
The details of the contract expenses for the fiscal year ending June 30, 2021 are as follows:
Note 16. Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Fontana that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012- 001.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies 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 Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. This review was completed October 2014 and identified $7,124,646 in unallowable transfers. The City has contended all unallowable transfers however the State Controller upholds its initial finding and has instructed the City to Salaries and benefits 23,527,578 $
Services and supplies 3,692,640
Station expenses 1,025,984
Fire Prevention services 299,752
County contract management fee 1,797,726
Total contract expenses 30,343,680 $
85 501
CITY OF FONTANA
Notes to the Financial Statements
return the assets to the Successor Agency in a timely manner. As of June 30, 2021, the assets have not yet been returned to the State Controller.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
As of June 30, 2020, there is one obligation that has been denied by the State Department of Finance that is currently being contested through the California court system. The Jurupa Hills Owner Participation Agreement (OPA) has been disallowed due to insufficient documentation to support the outstanding obligation, inability to ever repay the entire debt and the opinion that the agreement appears contrary to public policy. In July 2016, the Courts ruled in favor of the Successor Agency; the State Department of Finance has filed an appeal to the ruling.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
a. Cash and investments
Cash and investments reported in the accompanying financial statements consisted of the following:
b. Loans Receivable
Loans receivable reported in the accompanying financial statements consist of the following:
1. A loan was issued for the Oleander Storm Drain on March 2003 in the amount of $850,429. The balance of the loan at June 30, 2021 was $850,429. The purpose of the loan was to assist the developer with infrastructure improvements. There is no set repayment schedule for this loan.
2. A loan was issued for the Chaffey College in February 2005 in the amount of $4,000,000. The balance of the loan at June 30, 2021 was $1,760,000. The purpose of the loan was to assist with the costs of expanding the campus located within the City of Fontana. This loan is scheduled to be repaid over a term of 30 years.
3. Various loans were issued for the San Gabriel Valley Water Company in 1988-1989 in the amount of $330,756. The balance at the loan at June 30, 2021 was $67,483. The loan represents the reimbursement of costs incurred by the Agency for construction of water infrastructure. This loan is scheduled to be repaid over a forty-year period.
Cash and investments pooled with the City 436,048 $
Cash and investments with fiscal agent 19,353,954
19,790,002$
86 502
CITY OF FONTANA
Notes to the Financial Statements
c. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2021, follows:
Tax Allocation Bonds
The Former Fontana Redevelopment Agency has issued the following Tax Allocation Bonds which are special obligations of the Successor Agency secured by pledged property tax revenues. The bonds are not a debt of the City and are not payable out of any funds or properties other than those of the Successor Agency.
2017 Tax Allocation Refunding Bonds
$208,125,000 of 2017 Tax Allocation Refunding Bonds were issued in November 2017 . The bonds pay interest semi-annually at rates ranging from 1.50% to 3.00% and mature from October 2018 to October 2036. The proceeds were used to refinance various tax allocation bonds previously issued by the Former Redevelopment Agency of the City of Fontana.
Balance
June 30, 2020 Amounts Amounts
As Previously Balance Balance Due Within Due in More
Fiduciary Activities: Reported Adjustments June 30, 2020 Additions Retirements June 30, 2021 One Year Than One Year Tax Allocation Bonds and Notes:
2017 Tax Allocation Refunding Bonds 184,235,000 - 184,235,000 - 11,695,000 172,540,000 11,300,000 161,240,000 2018 Tax Allocation Refunding Bonds 28,715,000 - 28,715,000 - 3,005,000 25,710,000 3,160,000 22,550,000 Other Redevelopment Agency:
Advances from City 30,613,728 - 30,613,728 - 1,098,906 29,514,822 2,424,725 27,090,097 Owner participation agreements 206,342,956 - 206,342,956 614,270 - 206,957,226 - 206,957,226 Total Redevelopment Agency 449,906,684 $ - $ 449,906,684 $ 614,270 $ 15,798,906 $ 434,722,048 $ 16,884,725 $ 417,837,323 $ Unamortized bond premium 33,550,928 33,550,928
468,272,976$ 451,388,251$
87 503
CITY OF FONTANA
Notes to the Financial Statements
2018 Tax Allocation Refunding Bonds
$31,580,000 of 2018 Tax Allocation Refunding Bonds were issued in July 2018. The bonds mature October 1, 2027, with an interest yield of 5.00 percent. The proceeds from the bonds will be used to refinance various tax allocation bonds previously issued by the Former Redevelopment Agency of the City of Fontana for the Jurupa Hills Project Area. The refinancing resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $13.6 million.
The details of those issues are as follows:
The Successor Agency completed the refinancing to reduce its total debt service payments over the next 10 years by $14.0 million and to obtain an economic gain (difference between the present value of the old and new debt service payments of $6.5 million.
Principal Interest Total
2022 11,300,000 $ 8,073,963 $ 19,373,963 $
2023 11,240,000 7,533,525 18,773,525
2024 11,770,000 6,979,725 18,749,725
2025 12,275,000 6,399,006 18,674,006
2026 12,755,000 5,793,138 18,548,138
2027-2031 70,785,000 18,889,425 89,674,425 2032-2036 39,540,000 3,239,275 42,779,275 2037 2,875,000 43,125 2,918,125
Totals 172,540,000 $ 56,951,182 $ 229,491,182 $
2017 Tax Allocation Refunding Bonds
38,800,000$ 1997 Series A Tax Allocation Bonds (Jurupa Hills) 6,375,000 1999 Series A Tax Allocation Bonds (Jurupa Hills) 45,175,000$
88 504
CITY OF FONTANA
Notes to the Financial Statements
Long-Term Payables to the City of Fontana
The advances between the City and the Former Redevelopment Agency include the following:
1. A loan between the Agency and the City which resulted from the amendment to the 1991 Junior Lien Tax Allocation Bonds.
2. Advances between the City and the Agency for administrative and other costs.
Payable Under Jurupa Hills Owner Participation Agreement
The Agency has entered into an owner participation agreement (OPA) with Ten-Ninety, Ltd., a private land development partnership (the Participating Owner), relating to the Jurupa Hills Project Area. The OPA requires, among other things, the reimbursement by the Agency to the Participating Owner of costs incurred for certain infrastructure and other improvements. Costs advanced, which accrue interest at 15.5%, are reimbursed from, and limited to: (i) the tax increment revenue generated in the Southridge Village portion of the Jurupa Hills Project Area and (ii) certain fees and assessments collected from benefited property owners.
In January 1992, the City, Agency and Participating Owner entered into two agreements in further implementation of the development of Southridge Village; a Facilitation Agreement and an Amendment No. 3 to OPA and Composite OPA. On March 31, 1992, a judgment was entered by the San Bernardino County Superior Court validating the provisions of these two agreements and declaring them to be legally binding upon the parties.
The Facilitation Agreement provides for specific allocations of costs and responsibilities between the City and Participating Owner with respect to certain public works items and for the discharge of the Participating Owner’s obligations and responsibilities with respect to the infrastructure items for Phase I, II and III of Southridge Village.
Principal Interest Total
2022 3,160,000 $ 1,206,500 $ 4,366,500 $
2023 3,315,000 1,044,625 4,359,625
2024 3,480,000 874,750 4,354,750
2025 3,655,000 696,375 4,351,375
2026
2027 12,100,000 927,000 13,027,000
Totals 25,710,000 $ 4,749,250 $ 30,459,250 $
2018 Tax Allocation Refunding Bonds
89 505
CITY OF FONTANA
Notes to the Financial Statements
Amendment No. 3 to OPA includes acknowledgment that the Participating Owner has completed its infrastructure obligations relating to the development of Southridge Village and provides for certain payments by the Participating Owner to the Agency and City, in order to mitigate certain negative fiscal impacts imposed by the development and continued existence of Southridge Village. As described in the agreements, the payments to the City and Agency will be in amounts equal to 35% of the residual tax increments and 50% of the assessments and other reimbursements to be paid to the Participating Owner as reimbursement for public infrastructure improvements installed by the Participating Owner.
The balance at June 30, 2021 does not include $743,711,978 of accumulated unpaid interest that is subject to the same limitations of reimbursement from tax increment revenue, fees and assessments as is the case for costs of construction advanced. The total reimbursement costs of the project are $206,342,956. This obligation has been disallowed by the State Department of Finance due to insufficient documentation to support the outstanding obligation, inability to ever repay the entire debt and the opinion that the agreement appears contrary to public policy.
This determination is currently being challenged in the California court system by the Successor Agency. A hearing was held in July 2016, in which the courts ruled in favor of the Successor Agency.
Pledged Revenue
The Successor Agency pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $311,138,355 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred by the dissolved redevelopment agency was $37,114,549 and the debt service obligation on the bonds was $28,021,777.
d. Insurance
The Successor Agency is covered under the City of Fontana’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 8.
e. Commitments and Contingencies
At June 30, 2021, the Successor Agency was involved as a defendant in several lawsuits arising out of the ordinary conduct of its affairs. It is the opinion of management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the Successor Agency.
90 506
CITY OF FONTANA
Notes to the Financial Statements
Note 17. Tax Abatement
The City occasionally enters into Operating Covenant Agreements (OCA) with local businesses as a mechanism to promote economic development in the City, retain business and create jobs. The City currently has one OCA in which the City is granting a portion of sales tax revenues generated back to the retailer as an incentive to continue operating their business in the City.
The OCA was entered into in December 2015 and has an initial term of 20 years. The City has agreed to share (50%-50%) the sales tax generated each quarter that exceeds the agreed upon base amount.
Note 18. Commitments and Contingencies
The effects of the COVID-19 outbreak and governmental actions responsive to it are altering the behavior of businesses and consumers in a manner that is having significant impacts on global and local economies. In addition, financial markets in the United States and globally have seen significant declines and experienced significant volatility attributed to COVID-19 concerns. Potential impacts to the City associated with the COVID-19 outbreak include, but are not limited to, increasing costs and challenges to maintain a safe community, cancellations of public events, and disruption of the regional and local economy with corresponding decreases in the City’s revenues.
The COVID-19 outbreak is ongoing, and the duration and severity of the outbreak and the economic and other actions that may be taken by governmental authorities to contain the outbreak or to treat its impact are uncertain. The ultimate impact of COVID-19 on the operations and finances of the City is unknown. The City implemented various cost containment measures during the year and amended its Fiscal Year 2021-22 budget, which includes consideration of the effect of the COVID-19 outbreak and an anticipated recession. The City continues to actively monitor the regional and local economy so that any further financial impacts can be anticipated and disruption to services can be avoided.
Note 19. Prior Period Adjustment
During the year ended June 30, 2021, the City made an adjustment of $24,329,505 to beginning Net Position for the Custodial Funds due to the implementation of GASB 84.
91 507
Measurement Period 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service Cost 6,574,765 $ 6,391,012 $ 6,252,517 $ 6,181,410 $ 5,464,647 $ 5,255,619 $ 5,261,265 $ Interest 20,347,932 18,942,663 17,568,272 16,583,112 15,674,983 14,718,880 13,833,230 Changes of Benefit Terms - - - - - - - Difference between Expected and Actual Experience 6,367,568 6,274,697 1,250,890 (544,846) 773,988 463,048 - Changes of Assumptions - - (445,464) 15,075,525 - (3,940,129) - Benefit Payments, Including Refunds of Employee Contributions (12,716,297) (11,561,706) (10,323,275) (9,330,793) (8,666,808) (8,043,006) (7,265,033) Net Change in Total Pension Liability 20,573,968 20,046,666 14,302,940 27,964,408 13,246,810 8,454,412 11,829,462 Total Pension Liability – Beginning 281,289,663 261,242,997 246,940,057 218,975,649 205,728,839 197,274,427 185,444,965 Total Pension Liability – Ending (a) 301,863,631 $ 281,289,663 $ 261,242,997 $ 246,940,057 $ 218,975,649 $ 205,728,839 $ 197,274,427 $
PLAN FIDUCIARY NET POSITION
Contributions – Employer 10,500,692 9,196,355 8,215,736 7,706,792 6,985,270 6,756,772 6,213,039 Contributions – Employee 2,720,062 2,639,928 2,577,060 2,509,352 2,505,888 2,177,122 1,764,545 Net Investment Income 8,990,686 11,157,517 13,214,512 15,449,532 710,225 2,956,715 19,674,310 Benefit Payments, Including Refunds of Employee Contributions (12,716,297) (11,561,706) (10,323,275) (9,330,793) (8,666,808) (8,043,006) (7,265,033) Other Changes in Net Fiduciary Position (251,361) (118,778) (696,076) (203,553) (83,139) (153,538) - Net Change in Fiduciary Net Position 9,243,782 11,313,316 12,987,957 16,131,330 1,451,436 3,694,065 20,386,861 Plan Fiduciary Net Position – Beginning 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 112,335,963 Plan Fiduciary Net Position – Ending (b) 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 Plan Net Pension Liability – Ending (a) - (b) 114,318,921 $ 102,988,735 $ 94,255,385 $ 92,940,402 $ 81,107,324 $ 69,311,950 $ 64,551,603 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 62.13% 63.39% 63.92% 62.36% 62.96% 66.31% 67.28% Covered Payroll 23,158,734 22,436,218 21,782,736 21,411,929 21,176,697 20,121,052 19,360,681 Plan Net Pension Liability as a Percentage of Covered Payroll 493.63% 459.03% 432.71% 434.06% 383.00% 344.47% 333.42% Notes to Schedule:
Benefit Changes: There were no changes to benefit terms specific to the plan GASB 68 was implemented in FY 2014-15, therefore only six years of information is being presented.
CITY OF FONTANA
Changes of Assumptions: In 2019 and 2020, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.
There were no changes to the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Safety Plan
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period 92 508
Measurement Period 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service Cost 5,099,318 $ 5,057,352 $ 4,814,030 $ 4,788,249 $ 4,194,877 $ 4,254,965 $ 4,004,767 $ Interest 15,725,500 14,869,142 13,725,324 13,067,481 12,382,291 11,767,900 11,147,316 Changes of Benefit Terms - - - - - - - Difference between Expected and Actual Experience 629,230 5,210,993 (556,946) (1,186,594) (1,811,514) (1,027,499) - Changes of Assumptions - - (972,809) 11,708,939 - (3,097,256) - Benefit Payments, Including Refunds of Employee Contributions (9,124,186) (8,075,186) (7,673,900) (6,602,614) (6,385,882) (5,914,227) (5,994,855) Net Change in Total Pension Liability 12,329,862 17,062,301 9,335,699 21,775,461 8,379,772 5,983,883 9,157,228 Total Pension Liability – Beginning 221,320,262 204,257,961 194,922,262 173,146,801 164,767,029 158,783,146 149,625,918 Total Pension Liability – Ending (a) 233,650,124 $ 221,320,262 $ 204,257,961 $ 194,922,262 $ 173,146,801 $ 164,767,029 $ 158,783,146 $
PLAN FIDUCIARY NET POSITION
Net Plan to Plan Resource Movement - - (354) 13,206 - - - Contributions – Employer 6,606,745 5,841,667 5,081,435 4,478,806 4,452,429 3,868,104 3,657,678 Contributions – Employee 2,313,683 2,369,932 2,238,093 2,148,688 2,157,198 2,068,784 2,016,250 Net Investment Income 8,280,112 10,133,426 12,059,314 14,325,541 622,155 2,781,662 18,466,862 Benefit Payments, Including Refunds of Employee Contributions (9,124,186) (8,075,186) (7,673,900) (6,602,614) (6,385,882) (5,914,227) (5,994,855) Other Changes in Net Fiduciary Position (229,660) (108,649) (640,045) (188,255) (77,240) (142,590) - Net Change in Fiduciary Net Position 7,846,694 10,161,190 11,064,543 14,175,372 768,660 2,661,733 18,145,935 Plan Fiduciary Net Position – Beginning 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 105,930,458 Plan Fiduciary Net Position – Ending (b) 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 Plan Net Pension Liability – Ending (a) - (b) 62,895,539 $ 58,412,371 $ 51,511,260 $ 53,240,104 $ 45,640,015 $ 38,028,903 $ 34,706,753 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 73.08% 73.61% 74.78% 72.69% 73.64% 76.92% 78.14% Covered Payroll 31,712,176 30,080,386 29,204,258 28,947,762 28,347,600 28,221,562 25,050,147 Plan Net Pension Liability as a Percentage of Covered Payroll 198.33% 194.19% 176.38% 183.92% 161.00% 134.75% 138.55% Notes to Schedule:
Benefit Changes: There were no changes to benefit terms specific to the plan GASB 68 was implemented in FY 2014-15, therefore only six years of information is being presented.
Changes of Assumptions: In 2019 and 2020, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance with the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes to the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to
7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
CITY OF FONTANA
Miscellaneous Plan
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period 93 509
Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially Determined Contribution $ 11,557,409 $ 10,449,901 $ 9,132,884 $ 8,215,736 $ 7,706,792 $ 6,985,270 $ 6,756,772 $ 6,213,039 Contributions in Relation to the
Actuarially Determined Contribution (11,557,409) (10,449,901) (9,132,884) (8,215,736) (7,706,792) (6,985,270) (6,756,772) (6,213,039) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 23,795,599 $ 23,158,734 $ 22,436,218 $ 21,782,736 $ 21,411,929 $ 21,176,697 $ 20,121,052 $ 19,360,681 Contributions as a Percentage of
Covered Payroll 48.57% 45.12% 40.71% 37.72% 35.99% 32.99% 33.58% 32.09% Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2018 Funding Valuation Report.
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment Expenses, including Inflation.
Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality
GASB 68 was implemented in FY 2014-15, therefore only the eight most recent years of information is being presented.
The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality using 90% of Scale MP-2016 published by the Society of Actuaries.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2018 public agency valuations.
CITY OF FONTANA
Schedule of Plan Contributions
Safety Plan
94 510
Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially Determined Contribution $ 7,232,350 $ 6,611,942 $ 5,810,203 $ 5,081,435 $ 4,478,806 $ 4,452,429 $ 3,868,104 $ 3,657,678 Contributions in Relation to the
Actuarially Determined Contribution (7,232,350) (6,611,942) (5,810,203) (5,081,435) (4,478,806) (4,452,429) (3,868,104) (3,657,678) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 32,584,261 $ 31,712,176 $ 30,080,386 $ 29,204,258 $ 28,947,762 $ 28,347,600 $ 28,221,562 $ 25,050,147 Contributions as a Percentage of
Covered Payroll 22.20% 20.85% 19.32% 17.40% 15.47% 15.71% 13.71% 14.60% Notes to Schedule:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2017 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2018 Funding Valuation Report.
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment Expenses, including Inflation.
Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality using 90% of Scale MP-2016 published by the Society of Actuaries.
CITY OF FONTANA
Miscellaneous Plan
Schedule of Plan Contributions
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were from the June 30, 2018 public agency valuations.
GASB 68 was implemented in FY 2014-15, therefore only the eight most recent years of information is being presented. 95 511
Measurement Period 2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service cost 1,406,780 $ 1,114,136 $ 1,109,799 $ 1,073,307 $ Interest on the total OPEB liability 2,328,825 2,442,178 2,377,354 2,345,864 Actual and expected experience difference (3,610,614) (1,274,244) - - Changes in assumptions 7,714,949 (3,295,758) (1,014,856) - Changes in benefit terms - - - - Benefit payments (2,784,909) (2,653,423) (2,591,180) (2,467,790) Net change in total OPEB liability 5,055,031 (3,667,111) (118,883) 951,381 Total OPEB liability - beginning 66,321,967 69,989,078 70,107,961 69,156,580 Total OPEB liability - ending (a) 71,376,998$ 66,321,967 $ 69,989,078 $ 70,107,961 $ Covered-employee payroll 54,870,910$ 52,516,604 $ 50,986,994 $ 50,359,691 $ Net OPEB liability as a percentage of covered-employee payroll130.08% 126.29% 137.27% 139.21% Notes to Schedule:
Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years' information will be displayed up to 10 years as information becomes available.
The plan currently has no assets accumulating in a trust.
CITY OF FONTANA
Schedule of Changes in Total OPEB Liability and Related Ratios for the Measurement Periods Ended June 30,
512
97 513
Non-MajorGovernmentalFunds
Special Revenue Funds
Special Revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.
Gas Tax - To account for receipts and expenditures of money apportioned by the State and Highway Code §'s 2103, 2105, 2106, 2107 and 2107.5. Gas Tax moneys can only be used to construct and maintain streets and highways.
Traffic Congestion Relief – To account for the receipt of voter-approved (Measure I) tax revenue relating to the relief of traffic congestion through maintenance and upkeep of streets and highways.
Traffic Safety - To account for fines collected on vehicle code infractions and the use of expenditures for traffic safety purposes.
Prop 1B – To account for the receipts and expenditures of money allocated by the Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006, Local Street and Roads Improvement Allocation. Prop 1B moneys can only be used on street improvement projects.
Municipal Services Fiscal Impact - To account for moneys paid by developers of new development projects to mitigate their negative impact on the City's services and General Fund.
Solid Waste Mitigation - To account for moneys paid by the County of San Bernardino to mitigate the use of city infrastructure for refuse disposed at the landfill just outside of city limits.
Road Maintenance and Rehabilitation – the account for receipts and expenditures of money apportioned by the State under the Road Repair and Accountability Act of 2017 for road maintenance and rehabilitation projects for cities and counties.
Home Program - To account for the activity of improving the supply of high-quality multifamily properties which are also available to low income households at affordable rent levels.
Crime Prevention Seizure - To account for the receipt of 1% of Federal seizures from illegal narcotic activities, and the expenditure of such assets to fund crime prevention programs such as DARE.
State Seizure - To account for the receipt of seized assets from illegal narcotic activities obtained through cooperation with State agencies and the expenditure of such assets for local law enforcement purposes.
Federal Seizure - To account for the receipt of seized assets from illegal narcotic activities obtained through cooperation with Federal agencies and the expenditure of such assets for local law enforcement purposes. 98 514
Non-MajorGovernmentalFunds
Special Revenue Funds (continued)
Grants - To account for miscellaneous Federal, State and County grants requiring segregated fund accounting.
Housing and Community Development Block Grant - To account for the receipts and expenditures of the City's entitlements under Federal Community Development Block Grant (CDBG) programs of the US Department of Housing and Urban Development (HUD).
Federal Law Enforcement Block Grant - To account for Federal block grant funds used to enhance policing services.
AB 3229 State COPS Program - To account for State grant funds used to enhance policing services.
Office of Traffic Safety - To account for a State grant, matched with local funding, to augment abandoned vehicle towing.
Air Quality Management District - To account for receipts from the South Coast Air Quality Management District used for the purpose of reducing air pollution from motor vehicles.
Down Payment Assistance – To track receipts and expenditures for the HUD first time homebuyer assistance program.
Community Services Reimbursements - To account for after school programs funded through Proposition 49.
Fontana Community Foundation- To account for costs associated with the Fontana Community Foundation, a separate legal entity governed by Section 501(c)(3) of the Internal Revenue Code of 1986 for the purpose of aiding and assisting in the implementation, improvement and maintenance of public services that preserve and promote the health and welfare and education of local citizenry of the City of Fontana.
Fire Protection District CFD- To account for special taxes levied on property developed after January 2, 2001 to finance fire protection and suppression services within the Community Facilities District.
Fire Protection District Grants - to account for Federal, State, and County grants requiring segregated fund accounting.
Landscape Maintenance Districts - To account for special benefit assessments levied on property owners for landscape maintenance in various zones throughout the City.
Lighting District #3 - Hunter's Ridge - To account for special assessments imposed on property owners in the Hunter's Ridge area to pay for street lighting.
Community Facilities Districts - To account for special taxes levied on property owners in the development for landscape maintenance, parks and street lighting in the City’s numerous special assessments districts. 99 515
Non-MajorGovernmentalFunds
DebtServiceFunds
DebtServicefundsareusedtoaccountfortheaccumulationofresourcesandthepaymentofgeneralobligationbondprincipalandinterestfrom governmentalresources,andspecialassessmentbondprincipalandinterestfromspecialassessmentlevies,whenthegovernmentisobligatedin somemannerforthepayment.
GeneralDebtService–ToaccountfordebtservicepaymentsongeneralCityobligations.
CapitalProjectFunds
The Capital Project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietaryfunds.
StormDrain-Toaccountforreceiptsfromdrainagefeesimposedondevelopers,fortheconstructionofstormdrainagefacilitieswithintheCity limits.
SanSevaineFloodControl- ToaccountforfloodcontrolfeescollectedfortheconstructionoffloodcontrolimprovementsintheSanSevaine Area.
UpperEtiwandaFloodControl-Toaccountforfloodcontrolfeescollectedfortheconstructionoffloodcontrolimprovements.
ParkDevelopment-Toaccountforreceiptsandexpendituresfromparkdevelopmentfeesfornewparksandrenovationofexistingparks.
LandscapeImprovements-ToaccountforlandscapingimprovementfeesusedtoimprovelandscapingCitywide.
LibraryCapitalImprovement-Toaccountfordeveloperimpactfeesusedfortheconstructionoflibraryfacilities.
PoliceFacility-Toaccountfordevelopmentimpactfeestofundcapitalimprovementsofpolicefacilitiesandequipment.
GeneralGovernmentImprovement-ToaccountfordeveloperimpactfeesusedforthecapitalconstructionofCityfacilities.
CapitalImprovements-Toaccountformoneysexpendedonmiscellaneouscapitalimprovements.
100
516
Non-MajorGovernmentalFunds
CapitalProjectFunds(continued)
Underground Utilities - To account for developer fees used for offsetting the cost of relocating electrical and cable lines underground to enhancetheappearanceandthesafetyofthecommunity.
FireAssessment-Toaccountforrevenuesfromspecialtaxassessmentsandforexpendituresrelatingtofirepreventionandprotection.
AffordableHousingTrust -toaccountinclusionaryhousingandaffordablehousingdeveloperimpactfeestobeusedtoconstruct,rehabilitate orsubsidizeaffordablehousingthatcomplieswiththeAffordableHousingTrustFundregulations.
Fire Protection District - To account for moneys expended on capital improvements and equipment replacement for the Fontana Fire ProtectionDistrict.
FontanaHousingAuthority- ToaccountforcostsassociatedwiththeHousingAuthority,aseparatelegalentitygovernedbyCaliforniaState HousingAuthoritylaw.TheHousingAuthorityusesfundsfromtheFontanaRedevelopmentAgency'sLowandModerateIncomeHousingFund andFederalDepartmentofHousingandUrbanDevelopmentProgramGrantstoactivelyimproveanddevelopqualityneighborhoodsandhousing opportunitiesthroughouttheCityofFontana.
CommunityFacilitiesDistricts-ToaccountforbondproceedsusedtofinanceinfrastructureimprovementsintheCity’svariouscapitalproject districts.
101
517
CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Schedule 1
Road
Traffic Municipal Solid Maintenance Crime
Congestion Traffic Prop Services Waste And Home Prevention Gas Tax Relief Safety 1B Fiscal Impact Mitigation Rehabilitation Program Seizure Assets:
Cash and investments 582,114 $ 19,086,685 $ 12,732 $ 138,720 $ 21,530,956 $ 2,298,491 $ 889,952 $ 793,207 $ 51,846 $ Receivables:
Accounts - - - - - - - - - Assessments - - - - - - - - - Interest - 18,804 54 143 21,292 2,381 1,805 437,151 59 Loans - - - - - - - 6,747,625 - Due from custodial funds - - - - - - - - - Allowance for doubtful accounts - - - - - - - - - Due from other funds - - - - - - - - - Due from other governments 525,365 1,625,719 9,255 - - 1,055,375 719,568 29,354 - Inventories 120,427 - 742,019 - - - - - - Restricted assets:
Cash and investments with fiscal agent - - - - - - - - - Total Assets 1,227,906 $ 20,731,208 $ 764,060 $ 138,863 $ 21,552,248 $ 3,356,247 $ 1,611,325 $ 8,007,337 $ 51,905 $ Liabilities, Deferred Inflows and Fund Balances:
Liabilities:
Accounts payable 49,811 $ 593,445 $ 2,668 $ - $ - $ 185,905 $ 333,863 $ 3,033 $ 978 $ Retentions payable - 18,990 - - - - - - - Due to other funds - 466,466 - - - - - - - Due to other governments - - - - - - - 7,184,776 - Unearned revenue - - - - - - - - - Advances from other funds - - - - - - - - - Total Liabilities 49,811 1,078,901 2,668 - - 185,905 333,863 7,187,809 978 Deferred inflows of resources:
Unavailable revenue - 285,367 - - - - - 4,920 - Total deferred inflows of resources - 285,367 - - - - - 4,920 - Fund balances:
Nonspendable 120,427 - 742,019 - - - - - - Restricted 1,057,668 19,366,940 19,373 138,863 21,552,248 3,170,342 1,277,462 - 50,927 Assigned - - - - - - - - - Unassigned - - - - - - - 814,608 - Total fund balances 1,178,095 19,366,940 761,392 138,863 21,552,248 3,170,342 1,277,462 814,608 50,927 Total liabilities, deferred inflows of
resources and fund balances 1,227,906 $ 20,731,208 $ 764,060 $ 138,863 $ 21,552,248 $ 3,356,247 $ 1,611,325 $ 8,007,337 $ 51,905 $ Special Revenue
102
518
CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Assets:
Cash and investments
Receivables:
Accounts
Assessments
Interest
Loans
Due from custodial funds
Allowance for doubtful accounts
Due from other funds
Due from other governments
Inventories
Restricted assets:
Cash and investments with fiscal agent
Total Assets
Liabilities, Deferred Inflows and Fund Balances:
Liabilities:
Accounts payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Schedule 1
Housing and Federal
Community Law AB 3229 Air Quality Down
State Federal Development Enforcement State COPS Office of Management Payment Seizure Seizures Grants Block Grant Block Grant Program Traffic Safety District Assistance 382,136$ 5,226,226 $ 741,437 $ - $ - $ 701,845 $ 2,082,667 $ 1,263,776 $ 11,291 $ - - - 785 - - 38,420 - - - - - - - - - - - 381 5,798 - - - - 1,940 1,316 - - - - 1,029,565 - - - - - - - - - - - - - - - - - - - - - - - - - 101,775 - - - - - - - 15,366 2,293,236 1,312,062 37,549 - - 70,721 - - - - - - - - - - - - - - - - - - - 382,517$ 5,247,390 $ 3,136,448 $ 2,342,412 $ 37,549 $ 701,845 $ 2,123,027 $ 1,335,813 $ 11,291 $ -$ 400,624 $ 1,122,414 $ 209,624 $ 5,027 $ 22,695 $ 3,092 $ 700 $ - $ - - 27,534 - - - - - - - - 104,377 994,242 32,522 - - - - - - - 1,029,565 - - - - - - - 1,882,447 - - 574,398 - - - - - - - - - - - - - 400,624 3,136,772 2,233,431 37,549 597,093 3,092 700 - - - 1,661,541 308,706 38,011 - - - - - - 1,661,541 308,706 38,011 - - - - - - - - - - - - - 382,517 4,846,766 - - - 104,923 2,119,935 1,335,113 11,296 - - - - - - - - - - - (1,661,865) (199,725) (38,011) (171) - - (5) 382,517 4,846,766 (1,661,865) (199,725) (38,011) 104,752 2,119,935 1,335,113 11,291 382,517$ 5,247,390 $ 3,136,448 $ 2,342,412 $ 37,549 $ 701,845 $ 2,123,027 $ 1,335,813 $ 11,291 $ Special Revenue
103
519
CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Assets:
Cash and investments
Receivables:
Accounts
Assessments
Interest
Loans
Due from custodial funds
Allowance for doubtful accounts
Due from other funds
Due from other governments
Inventories
Restricted assets:
Cash and investments with fiscal agent
Total Assets
Liabilities, Deferred Inflows and Fund Balances:
Liabilities:
Accounts payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Schedule 1
Fire Fire Lighting
Community Fontana Housing Permanent Local Protection Protection Landsape District #3 Community Services Community Authority Housing District District Maintenance Hunter's Facilities Reimbursements Foundation AB 1486 Allocation CFD Grants Districts Ridge Districts -$ 137,967 $ 3,476,139 $ - $ 4,435,626 $ - $ 6,454,585 $ 37,354 $ 33,083,077 $ - - - - - - - - 893 - - - - - - 92,559 353 685,577 - 141 2,380 - 4,385 - 6,102 38 32,984 - - - - - - - - - - - - - - - - - 33,680 - - - - - - (38,813) (146) (112,306) - - - - - - - - 1,177 1,609,516 - - - - - 46 - 4,375 - - - - - - - - - - - - - - - - - - 1,609,516$ 138,108 $ 3,478,519 $ - $ 4,440,011 $ - $ 6,514,479 $ 37,599 $ 33,729,457 $ 78,415$ - $ - $ 10,963 $ - $ - $ 261,369 $ - $ 827,925 $ - - - - - - - - - 1,448,481 - - 150,955 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,526,896 - - 161,918 - - 261,369 - 827,925 441,096 - - - - - - - - 441,096 - - - - - - - - - - - - - - - - - - 138,108 3,478,519 - 4,440,011 - 6,253,110 37,599 32,901,532 - - - - - - - - - (358,476) - - (161,918) - - - - - (358,476) 138,108 3,478,519 (161,918) 4,440,011 - 6,253,110 37,599 32,901,532 1,609,516$ 138,108 $ 3,478,519 $ - $ 4,440,011 $ - $ 6,514,479 $ 37,599 $ 33,729,457 $ Special Revenue
104
520
CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Assets:
Cash and investments
Receivables:
Accounts
Assessments
Interest
Loans
Due from custodial funds
Allowance for doubtful accounts
Due from other funds
Due from other governments
Inventories
Restricted assets:
Cash and investments with fiscal agent
Total Assets
Liabilities, Deferred Inflows and Fund Balances:
Liabilities:
Accounts payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Schedule 1
Debt Service
Upper
San Sevaine Etiwanda Library General
General Storm Flood Flood Control Park Landscape Capital Police Government Debt Service Drain Control Development Development Improvements Improvement Facility Improvement 3,932$ 18,428,946 $ 1,172,795 $ 46,925 $ 5,269,718 $ 5,613,196 $ 1,019,889 $ 3,586,515 $ 11,316,402 $ - - - - - - - - - 3,932 - - - - - - - - 1 18,475 977 48 5,784 6,064 805 3,391 11,124 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 89,856 - - - - - - - - - - - - - - - - - 524,299 - - - - - - - - 622,020$ 18,447,421 $ 1,173,772 $ 46,973 $ 5,275,502 $ 5,619,260 $ 1,020,694 $ 3,589,906 $ 11,327,526 $ -$ 309,338 $ 3,058 $ - $ 6,758 $ 6,010 $ - $ 6,721 $ - $ - - - - 148,115 30,858 - 225 - - - - - - - - - - - - 591,279 - - - - - - - - - - - - - - - - 2,295,000 - - - - - - - - 2,604,338 594,337 - 154,873 36,868 - 6,946 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 622,020 - - - - - - - - - 15,843,083 579,435 46,973 5,120,629 5,582,392 1,020,694 3,582,960 11,327,526 - - - - - - - - - 622,020 15,843,083 579,435 46,973 5,120,629 5,582,392 1,020,694 3,582,960 11,327,526 622,020$ 18,447,421 $ 1,173,772 $ 46,973 $ 5,275,502 $ 5,619,260 $ 1,020,694 $ 3,589,906 $ 11,327,526 $ Capital Projects
105
521
CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2021
Assets:
Cash and investments
Receivables:
Accounts
Assessments
Interest
Loans
Due from custodial funds
Allowance for doubtful accounts
Due from other funds
Due from other governments
Inventories
Restricted assets:
Cash and investments with fiscal agent
Total Assets
Liabilities, Deferred Inflows and Fund Balances:
Liabilities:
Accounts payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Schedule 1
Total
Affordable Fire Fontana Other
Underground Fire Housing Protection Housing Governmental Utilities Assessment Trust District Authority Funds
299,152$ 637,247 $ 4,652,070 $ 5,461,662 $ 1,570,628 $ 162,497,906 $ - - - - 8,447 48,545 - - - - - 782,421 307 720 50,665 5,407 100,432 741,354 - - 1,000,000 - 1,863,928 10,641,118 - - - - - 33,680 - - - - - (151,265) - - - 10,490,000 - 10,592,952 - - - - - 9,397,363 - - - - - 862,446 - - - - - 524,299 299,459$ 637,967 $ 5,702,735 $ 15,957,069 $ 3,543,435 $ 195,970,819 $ -$ - $ - $ 72,876 $ 5,640 $ 4,522,952 $ - - - - - 225,722 - - - - - 3,197,043 - - - - - 8,805,620 - - - - - 2,456,845 - - - - - 2,295,000 - - - 72,876 5,640 21,503,182 - - 46,166 - 107,294 2,893,101 - - 46,166 - 107,294 2,893,101 - - 1,000,000 - 1,863,928 3,726,374 - - - - - 103,305,272 299,459 637,967 4,656,569 15,884,193 1,566,573 66,148,453 - - - - - (1,605,563) 299,459 637,967 5,656,569 15,884,193 3,430,501 171,574,536 299,459$ 637,967 $ 5,702,735 $ 15,957,069 $ 3,543,435 $ 195,970,819 $ Capital Projects
106
522
CITY OF FONTANA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2021
Schedule 2
Road
Traffic Municipal Solid Maintenance Crime
Congestion Traffic Prop Services Waste And Home Prevention Gas Tax Relief Safety 1B Fiscal Impact Mitigation Rehabilitation Program Seizure Revenues:
Taxes -$ - - - - - - - - Licenses and permits - - - - - - - - - Intergovernmental 4,770,818 7,472,364 - - - - 3,948,709 88,036 - Charges for services - - - - 2,549,519 3,699,888 - - - Fines and forfeitures - - 58,884 - - - - - 6,204 Special assessments - - - - - - - - - Investment earnings (260) 17,353 (154) 141 25,741 (223) 11,410 - 174 Other revenue - - - - - - - - - Total revenues 4,770,558 7,489,717 58,730 141 2,575,260 3,699,665 3,960,119 88,036 6,378 Expenditures:
Current:
General government:
City administration - - - - - - - - - Management services - - - - - - - 50,661 - Information technology - - - - - - - - - Human resources - - - - - - - - - Public safety:
Police - - - - - - - - 15,349 Fire - - - - - - - - - Public works 2,913,488 - - - - 3,956,038 3,212,297 - - Community development - - - - - - - - - Community services - - - - - 38,815 - - - Engineering - 5,317,021 172,645 - - - - - - Debt service:
Principal - - - - - - - - - Interest - - - - - - - - - Total expenditures 2,913,488 5,317,021 172,645 - - 3,994,853 3,212,297 50,661 15,349 Excess (deficiency) of revenues
over (under) expenditures 1,857,070 2,172,696 (113,915) 141 2,575,260 (295,188) 747,822 37,375 (8,971) Other Financing Sources (Uses):
Transfers in - - - - - - - - - Transfers out (590,300) (99,900) - - (855,300) (366,400) - - - - - - - - - - - - Total other financing sources (uses) (590,300) (99,900) - - (855,300) (366,400) - - - Net change in fund balances 1,266,770 2,072,796 (113,915) 141 1,719,960 (661,588) 747,822 37,375 (8,971) Fund Balances:
Beginning of fiscal year (88,675) 17,294,144 875,307 138,722 19,832,288 3,831,930 529,640 777,233 59,898 Net change in fund balances 1,266,770 2,072,796 (113,915) 141 1,719,960 (661,588) 747,822 37,375 (8,971) End of fiscal year 1,178,095 $ 19,366,940 761,392 138,863 21,552,248 3,170,342 1,277,462 814,608 50,927 Sale of capital assets
Special Revenue
107
523
CITY OF FONTANA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances:
Beginning of fiscal year
Net change in fund balances
End of fiscal year
Sale of capital assets
Schedule 2
Housing and Federal
Community Law AB 3229 Air Quality Down
State Federal Development Enforcement State COPS Office of Management Payment Seizure Seizure Grants Block Grant Block Grant Program Traffic Safety District Assistance - - - - - - 432,310 - - - - - - - - - - - - - 2,822,000 3,449,746 46,822 356,932 - - - - - - - - - - - - 35,154 938,579 - - - - - - - - - - - - - - - - 914 1,892 - - - - 2,709 638 - - 37,829 1,069,536 - - - - 278,363 - 36,068 978,300 3,891,536 3,449,746 46,822 356,932 435,019 279,001 - - - - 1,434,171 - - - - 2,204 - - - 604,481 - - - 1,500 - - - - - - - - - - - - - - - - - 4,747 - 27,307 2,524,055 515,788 1,932,875 84,371 357,102 56,745 - - - - - - - - - - - - - 2,094,168 - - - - - - - - 102,865 - - - - - - - - 26,655 - - - - - - - - 1,684,012 - - - - 210,284 - - - - - - - - - - - - - - - - - - - 27,307 2,524,055 4,423,488 3,971,527 84,371 357,102 56,745 216,531 2,204 8,761 (1,545,755) (531,952) (521,781) (37,549) (170) 378,274 62,470 (2,204) - - - - - - - - - - - - (91,800) - - - (17,900) - - 8,775 - - - - - - - - 8,775 - (91,800) - - - (17,900) - 8,761 (1,536,980) (531,952) (613,581) (37,549) (170) 378,274 44,570 (2,204) 373,756 6,383,746 (1,129,913) 413,856 (462) 104,922 1,741,661 1,290,543 13,495 8,761 (1,536,980) (531,952) (613,581) (37,549) (170) 378,274 44,570 (2,204) 382,517 4,846,766 (1,661,865) (199,725) (38,011) 104,752 2,119,935 1,335,113 11,291 Special Revenue
108
524
CITY OF FONTANA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances:
Beginning of fiscal year
Net change in fund balances
End of fiscal year
Sale of capital assets
Schedule 2
Fire Fire Lighting
Community Fontana Housing Permanent Local Protection Protection Landsape District #3 Community Services Community Authority Housing District District Maintenance Hunter's Facilities Reimbursements Foundation AB 1486 Allocation CFD Grants Districts Ridge Districts - - - - - - 6,993 27 16,670 - - - - - - - - - 3,031,961 - - - - - - - - - - - - - - - - 48,779 - - - - - - - - - - - - - 279,877 - 4,114,521 35,088 13,788,721 - 140 14,039 - 4,394 - (169) 6 27,226 - - - - - - - - - 3,031,961 140 14,039 - 284,271 - 4,121,345 35,121 13,881,396 - - - 161,918 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 83,857 - - - - - - - - - - 4,779,891 36,696 8,627,175 - - - - - - - - - 3,024,563 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,024,563 - - 161,918 83,857 - 4,779,891 36,696 8,627,175 7,398 140 14,039 (161,918) 200,414 - (658,546) (1,575) 5,254,221 - - - - - 301 631,990 - 639,280 (448,495) - - - (17,300) - (564,900) (3,900) (5,596,390) - - 3,464,480 - - - - - - (448,495) - 3,464,480 - (17,300) 301 67,090 (3,900) (4,957,110) (441,097) 140 3,478,519 (161,918) 183,114 301 (591,456) (5,475) 297,111 82,621 137,968 - - 4,256,897 (301) 6,844,566 43,074 32,604,421 (441,097) 140 3,478,519 (161,918) 183,114 301 (591,456) (5,475) 297,111 (358,476) 138,108 3,478,519 (161,918) 4,440,011 - 6,253,110 37,599 32,901,532 Special Revenue
109
525
CITY OF FONTANA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances:
Beginning of fiscal year
Net change in fund balances
End of fiscal year
Sale of capital assets
Schedule 2
Debt Service
Upper
San Sevaine Etiwanda Library General
General Storm Flood Flood Control Park Landscape Capital Police Government Debt Service Drain Control Development Development Improvements Improvement Facility Improvement - - - - - - - - - - 3,086,592 121,317 - 702,689 - 204,573 409,788 - 270,793 - - - - - - - - - - - - - 476,347 - - 661,149 - - - - - - - - - 7,860 - - - - - - - - 41 22,157 1,880 47 4,201 6,608 2,321 5,344 14,730 - - - - - - - - - 278,694 3,108,749 123,197 47 706,890 482,955 206,894 415,132 675,879 - - - - - - - - - 5,720 - - - - 191 - - - - 1,617 - - - - - - - - - - - - - - - - - - - - - - - 80,322 - - - - - - - - - - - - - - 1,898,931 - - - - - - - - - - - - - - - - - - - - - - - 2,380,287 86,576 - 7,894 760,025 - - - 1,230,000 - - - - - - - - 1,881,529 - - - - - - - - 3,117,249 2,381,904 86,576 - 1,906,825 760,216 - 80,322 - (2,838,555) 726,845 36,621 47 (1,199,935) (277,261) 206,894 334,810 675,879 2,936,130 442,477 95,600 - 942,500 60,186 362,644 358,034 541,457 - (290,200) (13,800) - (155,200) (9,800) (24,700) (17,700) (600) - - - - - - - - - 2,936,130 152,277 81,800 - 787,300 50,386 337,944 340,334 540,857 97,575 879,122 118,421 47 (412,635) (226,875) 544,838 675,144 1,216,736 524,445 14,963,961 461,014 46,926 5,533,264 5,809,267 475,856 2,907,816 10,110,790 97,575 879,122 118,421 47 (412,635) (226,875) 544,838 675,144 1,216,736 622,020 15,843,083 579,435 46,973 5,120,629 5,582,392 1,020,694 3,582,960 11,327,526 Capital Projects
110
526
CITY OF FONTANA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances:
Beginning of fiscal year
Net change in fund balances
End of fiscal year
Sale of capital assets
Schedule 2
Total
Affordable Fire Fontana Other
Underground Fire Housing Protection Housing Governmental Utilities Assessment Trust District Authority Funds
- - - - - 456,000 - 123,492 735,060 - - 5,383,511 - - 141,750 - - 26,399,931 - - - - - 7,435,682 - - - - - 1,038,821 - - - - - 18,226,067 304 654 7,589 (3,218) 77,767 246,396 - - - - 11,909 1,397,637 304 124,146 884,399 (3,218) 89,676 60,584,045 - - - - 323 1,598,616 - - - - 105,149 767,702 - - - - - 1,617 - - - - - 4,747 - - - - - 5,593,914 - - - 1,519,113 - 1,602,970 - - - - - 27,518,684 - - - - - 102,865 - - - - - 3,090,033 - - - 1,424,971 - 12,043,715 - - - - - 1,230,000 - - - - - 1,881,529 - - - 2,944,084 105,472 55,436,392 304 124,146 884,399 (2,947,302) (15,796) 5,147,653 - 111,520 - 12,121,799 - 19,243,918 - (317,628) - (183,400) (93,500) (9,759,113) - - - - - 3,473,255 - (206,108) - 11,938,399 (93,500) 12,958,060 304 (81,962) 884,399 8,991,097 (109,296) 18,105,713 299,155 719,929 4,772,170 6,893,096 3,539,797 153,468,823 304 (81,962) 884,399 8,991,097 (109,296) 18,105,713 299,459 637,967 5,656,569 15,884,193 3,430,501 171,574,536 Capital Projects
111
527
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) Revenues:
Taxes - $ - $ - $ - $ - $ - $ - $ - $ Licenses and permits - - - - - - - - Intergovernmental 4,282,140 4,972,360 4,770,818 (201,542) 7,798,710 21,262,990 7,472,364 (13,790,626) Charges for services - - - - - - - - Fines and forfeitures - - - - - - - - Special assessments - - - - - - - - Investment earnings 7,200 7,200 (260) (7,460) 500,000 500,000 17,353 (482,647) Other revenue - - - - - - - - Contribution from property owners - - - - - - - - Total revenues 4,289,340 4,979,560 4,770,558 (209,002) 8,298,710 21,762,990 7,489,717 (14,273,273) Expenditures:
Current:
General government:
City administration - - - - - - - - Management services - - - - - - - - Information Technology - - - - - - - - Human resources - - - - - - - - Public safety:
Police - - - - - - - - Fire - - - - - - - - Public works 3,349,940 3,938,806 2,913,488 1,025,318 - - - - Community development - - - - - - - - Community services - - - - - - - - Engineering - - - - 6,663,560 30,197,719 5,317,021 24,880,698 Capital outlay - - - - - - - - Debt service:
Principal - - - - - - - - Interest - - - - - - - - Total expenditures 3,349,940 3,938,806 2,913,488 1,025,318 6,663,560 30,197,719 5,317,021 24,880,698 Excess (deficiency) of revenues
over (under) expenditures 939,400 1,040,754 1,857,070 816,316 1,635,150 (8,434,729) 2,172,696 10,607,425 Other Financing Sources (Uses):
Transfers in - - - - - - - - Transfers out (590,300) (590,300) (590,300) - (99,900) (99,900) (99,900) - Sale of capital assets - - - - - - - - Total other financing sources (uses) (590,300) (590,300) (590,300) - (99,900) (99,900) (99,900) - Net change in fund balances 349,100 450,454 1,266,770 816,316 1,535,250 (8,534,629) 2,072,796 10,607,425 Fund balances - beginning (88,675) (88,675) (88,675) - 17,294,144 17,294,144 17,294,144 - Fund balances - ending 260,425 $ 361,779 $ 1,178,095 $ 816,316 $ 18,829,394 $ 8,759,515 $ 19,366,940 $ 10,607,425 $ Special Revenue
Gas Tax Traffic Congestion Relief
112
528
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) - $ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - 60,000 60,000 58,884 (1,116) - - - - - - - - - - - - 2,400 2,400 (154) (2,554) 3,600 3,600 141 (3,459) 10,000 10,000 - (10,000) - - - - - - - - - - - - 72,400 72,400 58,730 (13,670) 3,600 3,600 141 (3,459) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 110,780 113,165 172,645 (59,480) - - - - - - - - - - - - - - - - - - - - - - - - - - - - 110,780 113,165 172,645 (59,480) - - - - (38,380) (40,765) (113,915) (73,150) 3,600 3,600 141 (3,459) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (38,380) (40,765) (113,915) (73,150) 3,600 3,600 141 (3,459) 875,307 875,307 875,307 - 138,722 138,722 138,722 - 836,927 $ 834,542 $ 761,392 $ (73,150)$ 142,322 $ 142,322 $ 138,863 $ (3,459)$ Traffic Safety Prop 1B
Special Revenue
113
529
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) - $ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - 1,052,000 1,052,000 2,549,519 1,497,519 3,000,000 3,000,000 3,699,888 699,888 - - - - - - - - - - - - - - - - 520,000 520,000 25,741 (494,259) 92,000 92,000 (223) (92,223) - - - - - - - - - - - - - - - - 1,572,000 1,572,000 2,575,260 1,003,260 3,092,000 3,092,000 3,699,665 607,665 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,548,520 5,621,619 3,956,038 1,665,581 - - - - - - - - - - - - 44,960 44,960 38,815 6,145 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,593,480 5,666,579 3,994,853 1,671,726 1,572,000 1,572,000 2,575,260 1,003,260 (501,480) (2,574,579) (295,188) 2,279,391 - - - - - - - - (855,300) (855,300) (855,300) - (366,400) (366,400) (366,400) - - - - - - - - - (855,300) (855,300) (855,300) - (366,400) (366,400) (366,400) - 716,700 716,700 1,719,960 1,003,260 (867,880) (2,940,979) (661,588) 2,279,391 19,832,288 19,832,288 19,832,288 - 3,831,930 3,831,930 3,831,930 - 20,548,988 $ 20,548,988 $ 21,552,248 $ 1,003,260 $ 2,964,050 $ 890,951 $ 3,170,342 $ 2,279,391 $ Municipal Services Fiscal Impact
Special Revenue
Solid Waste Mitigation
114
530
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) - $ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - 4,005,480 3,878,879 3,948,709 69,830 789,990 1,485,020 88,036 (1,396,984) - - - - - - - - - - - - - - - - - - - - - - - - 28,000 28,000 11,410 (16,590) - - - - - - - - - - - - - - - - - - - - 4,033,480 3,906,879 3,960,119 53,240 789,990 1,485,020 88,036 (1,396,984) - - - - 643,490 1,357,843 - 1,357,843 - - - - 63,160 82,906 50,661 32,245 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,005,480 4,359,241 3,212,297 1,146,944 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,005,480 4,359,241 3,212,297 1,146,944 706,650 1,440,749 50,661 1,390,088 28,000 (452,362) 747,822 1,200,184 83,340 44,271 37,375 (6,896) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 28,000 (452,362) 747,822 1,200,184 83,340 44,271 37,375 (6,896) 529,640 529,640 529,640 - 777,233 777,233 777,233 - 557,640 $ 77,278 $ 1,277,462 $ 1,200,184 $ 860,573 $ 821,504 $ 814,608 $ (6,896)$ Home ProgramRoad Maintenance and Rehabilitation
Special Revenue
115
531
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) - $ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - 15,000 15,000 6,204 (8,796) 85,000 85,000 35,154 (49,846) - - - - - - - - 2,800 2,800 174 (2,626) 16,000 16,000 914 (15,086) - - - - - - - - - - - - - - - - 17,800 17,800 6,378 (11,422) 101,000 101,000 36,068 (64,932) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25,000 25,000 15,349 9,651 50,370 50,370 27,307 23,063 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25,000 25,000 15,349 9,651 50,370 50,370 27,307 23,063 (7,200) (7,200) (8,971) (1,771) 50,630 50,630 8,761 (41,869) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (7,200) (7,200) (8,971) (1,771) 50,630 50,630 8,761 (41,869) 59,898 59,898 59,898 - 373,756 373,756 373,756 - 52,698 $ 52,698 $ 50,927 $ (1,771)$ 424,386 $ 424,386 $ 382,517 $ (41,869)$ Crime Prevention Seizure
Special Revenue
State Seizures
116
532
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) - $ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - 284,170 12,825,854 2,822,000 (10,003,854) - - - - - - - - 2,000,000 1,000,000 938,579 (61,421) - - - - - - - - - - - - 160,000 160,000 1,892 (158,108) - - - - 18,000 18,000 37,829 19,829 - 1,437,169 1,069,536 (367,633) - - - - - - - - 2,178,000 1,178,000 978,300 (199,700) 284,170 14,263,023 3,891,536 (10,371,487) - - - - - 60,070 - 60,070 - - - - - - - - - - - - - - - - - - - - - - - - 1,923,240 4,095,788 2,524,055 1,571,733 244,930 1,046,283 515,788 530,495 - - - - - - - - - - - - 109,730 2,169,464 2,094,168 75,296 - - - - - 625,000 102,865 522,135 - - - - - 183,052 26,655 156,397 - - - - - 9,335,819 1,684,012 7,651,807 - - - - - - - - - - - - - - - - - - - - - - - - 1,923,240 4,095,788 2,524,055 1,571,733 354,660 13,419,688 4,423,488 8,996,200 254,760 (2,917,788) (1,545,755) 1,372,033 (70,490) 843,335 (531,952) (1,375,287) - - - - - - - - - - - - - - - - - 8,775 8,775 - - - - - - 8,775 8,775 - - - - - 254,760 (2,909,013) (1,536,980) 1,372,033 (70,490) 843,335 (531,952) (1,375,287) 6,383,746 6,383,746 6,383,746 - (1,129,913) (1,129,913) (1,129,913) - 6,638,506 $ 3,474,733 $ 4,846,766 $ 1,372,033 $ (1,200,403)$ (286,578) $ (1,661,865) $ (1,375,287) $ Special Revenue
Federal Seizures Grants
117
533
CITY OF FONTANA
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2021
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Other revenue
Contribution from property owners
Total revenues
Expenditures:
Current:
General government:
City administration
Management services
Information Technology
Human resources
Public safety:
Police
Fire
Public works
Community development
Community services
Engineering
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Schedule 3