Fontana City Council
February 27, 2024

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Table of Contents
Report Objectives.................................................................................................................................................................. 3 Summary of Key Points....................................................................................................................................................... 4 Significant Economic Trends.............................................................................................................................................. 5 Project Updates…………………………………………………………………………………………………………………………………6 Departmental Activities……………………………………………………………………………………………………………………12 Summary of Proposed General Fund Adjustments .................................................................................................. 31 General Fund Revenues.................................................................................................................................................... 34 General Fund Expenditures.............................................................................................................................................. 35 Fund Balance Review......................................................................................................................................................... 36 Organizational Changes.................................................................................................................................................... 37 Liability Claims ..................................................................................................................................................................... 38 American Rescue Plan Act Expenditure Plan .............................................................................................................39 Conclusion ............................................................................................................................................................................ 40 Schedules:

General Fund – Fund Balance Reconciliation.......................................................................................... 41 Fund Balance – Other Funds ....................................................................................................................... 42 Recommended Adjustments – General Fund........................................................................................ 48 Recommended Adjustments – Other Funds.......................................................................................... 50

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Report Objectives
The purpose of the Midyear Budget Status Report is to:
• Provide the City Council with an overview of all funds; • Comment on significant economic trends;
• Provide an update of current projects;
• Report on departmental activities for prior year; and • Recommend budget changes to address known budget deficiencies which will materially impact fund balance;

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Summary of Key Points
General Fund:
• Net increase in General Fund inflows of $ 1,134,143:
o Increase to Sales Tax of $247,828
o Increase to Business Related of $832,000
o Increase to Miscellaneous Revenues of $2,500
o Transfers in of $51,815
• Net increase in General Fund outflows of $15,668,539:
o Recurring personnel adjustments of $835,342
o Offset requests of $832,000
o New recurring requests of $924,155
o New one-time requests of $2,812,019
o Transfers out to Other Funds of $10,265,023
Other Funds:
• Additional funding for the following projects:
o $11,000,000 Downtown West Parking Structure (General Government Fund #632) o $7,500,000 Co-op Workspace Improvements (Capital Reinvestment Fund #601) o $7,000,000 Downtown West Parking Structure (Capital Reinvestment Fund #601) o $2,000,000 Foothill Blvd, Hemlock Ave and Almeria Ave Right of Way Purchase (Measure I/ Circulation Mitigation Fund #245, #630) o $1,779,000 Courtplace Construction Contract (Storm Drain Fund #622) o $1,750,000 9/11 Memorandum Monument (Grants Fund #301) o $800,000 City Hall Renovation Phase II (Capital Reinvestment Fund #601) o $648,000 Courtplace Construction Contract Project (Circulation Mitigation Fund #630) o $600,000 Public Arts Building Admin Costs and Architectural Design Services (Grants Fund #301) o $490,000 I-10 Citrus Interchange Project (Circulation Mitigation Fund #630) • This report also increases appropriations in several CFD Funds by $345,230 to cover weed abatement and landscape maintenance contract increases.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Significant Economic Trends
Nationally:
• Experts agree that the future trajectory of the U.S. economy is slowing down. There are a few factors affecting this including, “diminished excess savings, plateauing wage gains, low savings rates and less pent-up demand. Additionally, the restart of student loan payments and uptick in subprime auto and credit card delinquencies are emerging signs of stress for some consumers.” Experts report that “real GDP growth will walk the line between a slight expansion and contraction for much of next year. After tracking to a better-than-expected 2.8% real GDP growth in 2023, a below-trend 0.7% pace of expansion in 2024 is forecasted.” • The U.S. economy outpaced expectations by adding 216,000 jobs in December. Reports show that, “government, health care and leisure and hospitality led the month’s job gains.” The unemployment rate remained the same at 3.7% indicating that the labor market remained strong despite indicators that suggest it should be waning. Some economists anticipate slight increases in unemployment and layoffs, forecasting the unemployment rate to be between 4.2%-4.5% in 2024.

The State of California:
• Indicators suggest economic strength in California: jobs have continued to grow, more Californians have entered the labor force, inflation is easing, and GDP shows strong growth in California in 2023 and into 2024. Although inflation is now stabilizing, two years of rapidly rising costs for food, housing, gas, and other goods and services cut into Californians’ budgets. The state unemployment rate increased to 5.1% in December despite employers adding 23,400 jobs to the economy.

City of Fontana
• Midyear 23/24 sales were 37% lower than the same quarter one year ago. This is primarily due to the State being behind on sales tax processing. • The Local Agency Investment Fund (LAIF) is currently paying 3.96% (daily rate) on City investments as of December 31, 2023, up from 2.29% for the same time last year. The 2-year treasury benchmark rate as of December 29, 2023, is 4.23% down from 4.34% last year.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates
CDBG Acquisition, Rehabilitation, and Rental Program: The Housing Authority’s Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program is designed to purchase and rehabilitate residential properties to provide additional affordable housing opportunities to current and prospective residents. To date, the Housing Authority has purchased eight (8) single family homes and one (1) multifamily property with these funds. There are now a total of 11 units in this portfolio. All of these properties have been rehabilitated and leased to low-income households. The City has funded this program for a total of $6.2 million to date.

Courtplace Apartments: The Housing Authority and The Related Company has negotiated a Disposition and Development Agreement to purchase and develop approximately 4.78 acres of vacant land owned by the City located on Sierra Ave, between Santa Ana Avenue and Jurupa Avenue. Should the project be awarded Low-Income Housing Tax Credits in the Spring, the proposed two-phased development of 106 units should begin construction by the end of 2024. The Housing Authority anticipates utilizing various funding sources, including but not limited to, HOME Investment Partnerships Program and local Affordable Housing Trust funds.

Permanent Local Housing Allocation (PLHA) Acquisition, Rehabilitation, and Rental Program: The Housing Authority’s Permanent Local Housing Allocation (PLHA) Acquisition, Rehabilitation, and Rental Program is designed to purchase and rehabilitate residential properties to provide additional affordable housing opportunities to current and prospective residents. To date, the Housing Authority has purchased one (1) single family homes and one (1) multifamily property with these funds. There are now a total of five (5) units in this portfolio. All of these properties have been rehabilitated and leased to low-income households. The City has spent $1.5 million to date on this program.

Homekey, Round 2 The City was awarded $3,054,395 in Homekey Program Round 2 Funds (Homekey) from the State of California administered by the California Department of Housing and Community Development (HCD). This grant funding was made available statewide to continue the State’s efforts to rapidly expand housing for persons experiencing homelessness or at risk of homelessness and who are inherently impacted by or at increased risk due to the COVID-19 pandemic. These funds were utilized to rehabilitate three (3) city-owned properties. These units are now providing wrap-around supportive services for those inherently impacted by COVID-19 by nature of being homeless or chronically homeless, or at risk of homelessness, who are residents of San Bernardino County and preferably the City of Fontana. All construction on these units were completed in June 2023 and were fully occupied in late September 2023.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates - continued
HOME-American Rescue Plan Program: The City was awarded HOME-American Rescue Plan Program (HOME-ARP) funds from the U.S. Department of Housing and Urban Development (HUD) in the amount of $2,633,658. These funds are primarily utilized to the production of affordable housing to benefit individuals or families who are homeless, at risk of homelessness, and other vulnerable populations. The Housing Authority is currently evaluating projects that will meet program requirements.

Police MET Remodel Project The Police Department continues to refresh and improve the upper level of the building to match other previously remodeled areas of the building. The old Code Compliance area is being refurbished to be used by the MET (Multiple Enforcement Team) Unit. There will be new carpet, paint, window treatments and new furniture. The furniture layout will allow for growth of the team in the future.

Request A Report A portion (currently only traffic collisions are available) of this software program was implemented August 1, 2023. It is a convenient option to allow citizens to make an online request for various reports including traffic collision/ incidents/ other type of reports. Citizens can pay online for a copy of their request. Once a request is received and reviewed (if available to distribute) the report will be uploaded to the software program. Once payment is received, a link will be emailed to the Citizen with instructions on how to obtain the report. The link is only available for 30 days. We continue to work to implement the addition of incidents and other types of reports for release to the request a report software system.

EOC Police Lobby Remodel This project is continuing as we are now working with an architect to design and evaluate the kitchen remodel portion of the project.

Police Building Improvements The department anticipates closing this project at the end of the year. Currently there are additional items that need to be journaled from the project into other budget units and projects.

Mobile Cellular Equipment The department also anticipates closing this project by end of the current year. Vehicles with equipment were just returned from out of state. Once invoices have been received and paid this project will be closed.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates - continued
Fire Station #81: As part of the Fire Master Plan, and in an effort to meet a less than five-minute response time within the District 90% of the time, Fire Station #81 will be constructed in the northern end of the City limits. The construction began in March 2022 and is estimated to be completed by March 2024.

Fire Station #80 (Phase 1): The training center (Phase 1) is planned to be approximately 3,300 sf with a training tower that will be incorporated into a future fire station #80 (Phase 2) planned for the same site. The design and environmental phases began in March 2021 and are nearly complete. Construction is expected to commence in Fall 2024.

Etiwanda Avenue/Slover Avenue Intersection Project: This intersection currently operates at an unacceptable level of service during peak periods caused primarily by heavy truck and vehicular traffic volumes. The intersection improvements will provide a means for businesses operating in Ontario and Fontana to access Etiwanda Ave with reduced delays. The project completed the right of way acquisition phase. The first phase of construction that will accommodate Southern California Edison (SCE) relocations began in March 2022. SCE relocations were completed in late 2023. Additional utility relocations are underway and the project will be ready for the intersection improvements to begin in late 2024.

Sierra Avenue Improvements between Foothill Blvd and Baseline Ave: The growth occurring in the northern and central areas of the City, with corresponding increase in traffic flows, require the widening of Sierra Avenue. The project will reduce traffic congestion while meeting the City Council goals by investing in infrastructure. This project is currently in construction and is expected to be substantially completed in Spring 2024.

Jurupa Avenue Landscape Median Project: The project will construct raised medians, new irrigation system, and landscaping between Calabash Ave and Hemlock Ave. The project also includes rehabilitation of existing asphalt paving and new sign and striping. The landscaped median will be in compliance with the City’s Urban Greening Master Plan, improve community aesthetics and reduce greenhouse gas emission. In addition, the raised median is an effective strategy to reduce head-on collisions as it adds to or reallocates the existing cross section to incorporate a buffer between the opposing travel lanes and reinforces the limits of the travel lanes. The project is currently in Construction and is expected to be completed in Fall 2024.

San Sevaine Trail Segment 2 Phase 1 Improvements: As part of the overall San Sevaine Trail Plan, this project will construct a trail between the Pacific Electric (PE) Trail in Fontana and Banyan Street in the City of Rancho Cucamonga. This approximately 1.25 mile long segment will provide a lighted pedestrian and bicycle path along the Etiwanda Creek/San Sevaine Channels. The entirety of the San Sevaine Trail will be the only major regional north and south multiuser path in San Bernardino County that has the potential to extend to the County Line and ultimately connect to the Santa Ana River Trail. Construction is expected to begin in March 2024.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates - continued
Active Transportation Projects (ATP)-Safe Routes to School (SRTS):
• Ramona, Alder, Locust Project: This project will construct sidewalks where none currently exist, filling in the gaps to provide a continuous path of travel for pedestrians along the designated corridors within the project vicinity. Separated bike lanes will also be striped. The improvements will assist in providing Safe Routes to Schools near Alder Middle School, Juniper Elementary School, Locust Elementary School, and Eric Burch High School. Construction is estimated to begin in March 2024. • Fontana Gap Closure: This project will construct sidewalks where none currently exist, filling in the gaps to provide a continuous path of travel for pedestrians along the designated corridors within the project vicinity. Separated bike lanes will also be striped and Rectangular Rapid Flashing Beacons (RRFB’s) will also be installed at designated crosswalks. The improvements will assist in providing Safe Routes to Schools near Citrus Elementary School, Truman Middle School, and Fontana High School. Construction is estimated to begin in March 2024. • Date Elementary School: This project will construction sidewalks where non currently exist, filling in the gaps to provide a continuous path of travel for pedestrians along the designed corridors within the project vicinity. Separated bike lanes will also be striped. The improvements will assist in providing Safe Routes to Schools for pedestrians and cyclists traveling to and from Date Elementary School. Design began in Fall 2023 with construction expected to begin in early 2025.

Transportation Development Act (TDA)-Safe Routes to School (SRTS):
• Alder Middle School Project: This project will construct sidewalks where none currently exist, filling in the gaps to provide a continuous path of travel for pedestrians along the designated corridors within the project vicinity. Separated bike lanes will also be striped. Improvements will assist in providing Safe Routes to Schools near Alder Middle School. Design and right of way acquisitions are nearing completion. Construction is estimated to begin in March 2024.
• Kathy Binks Elementary School Project: This project will construct sidewalks where none currently exist filling in the gaps to provide a continuous path of travel for pedestrians along the designated corridors within the project vicinity. The improvements will assist in providing Safe Routes to Schools near Kathy Binks Elementary School. Construction was completed in Fall 2023.

Traffic Signal Improvements: Traffic signal improvements are proposed at the following locations to enhance traffic circulation throughout the City.

Improvements consist of the construction of new traffic signals or the modification of existing traffic signals, intersection lighting, and minor roadway and

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates - continued
storm drain improvements where identified. The following signals are underway:
• Arrow Ave @ Cypress Ave: Construction estimated to begin in February 2024 • Arrow Ave @ Tokay Ave: Construction estimated to begin in Summer 2024 • Baseline Ave @ Palmetto Ave: Design phase is underway with construction estimated to begin in winter 2024. • Cherry Ave @ Highland Ave: Construction was completed in Fall 2023. • N. Cherry Ave @ Live Oak Ave: Construction phase is underway with completion estimated in February 2024. • Citrus Ave @ Ceres Ave: Construction phase is underway with completed estimated in February 2024. • Citrus Ave @ Chase Ave: Construction phase is underway with completion estimated in April 2024. • Highland Ave @ Juniper Ave: Design phase is underway with construction estimated to begin in Spring 2025. • Highland Ave @ Mango Ave: Construction phase is underway with completion estimated in April 2024. • Miller Ave @ W. Liberty Parkway: Construction phase is underway with completion estimated in April 2024. • Santa Ana Ave @ Juniper Ave: Design phase is underway with construction estimated to begin in Spring 2025. • Summit Ave @ Cypress Ave: Design phase is underway with construction estimated to begin in early 2025.

Pavement Rehabilitation Program: Foothill Boulevard pavement rehabilitation project between Ilex Avenue and Hemlock Avenue and side streets south of Foothill Boulevard was completed in November 2023. The rest of the pavement rehabilitation projects programmed in FY 23/24, including Slurry Seal in Sierra Lakes community, are either in construction or scheduled to begin in early 2024.

Center Stage (Stage Red) Theater Renovation
Center Stage is located at 8463 Sierra Ave. The project consists of improvements to the exterior of the building including moisture intrusion repair, complete stucco removal, re-texturing and exterior painting. Construction began in August of 2023 and is scheduled to be completed in early Spring 2024.

Downtown Parking Structure Project: This Design-Build project will construct 4.5 tier parking structure at the current Center Stage Theater Parking lot. The parking structure will provide 311 parking stalls which will serve City employees and citizens for various future downtown events. The Design-Build work began in September 2023 and is scheduled to be completed in December 2024.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Project Updates - continued
City Hall Renovation Project Phase I: This City Hall renovation project will demolish the existing one-story Fire Administration Building located at 17001 Upland Avenue and construct a new two-story municipal building with first tier parking structure and second tier office spaces. The Design-Build work began in November 2023 and is scheduled to be completed in Summer 2025.

Park Improvements: This project utilizes a portion of the City’s American Recovery Plan Act (ARPA), along with additional ARPA and discretionary funding provided by the County of San Bernardino to construct improvements in ten (10) inner-city parks. Construction started in Fall of 2023 with the installation of new baseball scoreboards at Veteran’s and Jack Bulik Parks, and new baseball dugout shade coverings at Veteran’s, Jack Bulik, and Bill Martin Parks. Additional improvements include the installation of new ADA inclusive playground equipment and shade structures and will be completed by December of 2024.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities
City Administration
Economic Development
• Assisted more than 253 businesses
• Business Site tours: 23+
• Assisted businesses totaling 192 jobs created and approx. $27.5 Million in Capital Investment • Collaborated with the County of San Bernardino Workforce Development Department:
o More than $100,000 in “On the Job Training (OJT) Dollars” was issued to Fontana local businesses. o Awarded businesses were able to capitalize on a 50% wage reimbursement for new hires entering the workforce; receiving specific training for career advancement.
• Secured $3.8 Million in legislative grant funding to support the ongoing revitalization plans for downtown. Funding will be used to restore local historical landmarks including murals surrounding downtown, new art installations anchored by a 9/11 memorial, and expanding the downtown art museum.

Marketing
• Spearheaded the Mayor’s Education Coalition (Visionaries, Builders and Game Changers) – hosting more than 200 students and 3 business tours. o Secured a $10,000 grant from Amazon
• Successfully launched Podcast - Fontana Unlocked
Digital Marketing Statistics:
• 1.9M Website page views
• 33,400 views on YouTube videos published in 2023
• Increased Instagram followers to 24K
• Increased Facebook followers to 23K
• Increased X followers to 6k
• Increased NextDoor to 42k members
• Increased LinkedIn followers to 3.3k
• Over 622 listeners for Fontana Unlocked

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
Public Affairs
Approximately $38M in federal and state funds were directed to the City of Fontana.

Listed below are the major accomplishments for fiscal year 2024 thus far:
• Secured a $19.8M grant from the U.S. Department of Transportation’s “Safe Streets and Roads for All (SS4A)” program for the Foothill Blvd Safety Improvement Project.
• Secured $3M from Assemblymember Eloise Gomes-Reyes for the Downtown Arts District Project. Funds will be used to construct a 9/11 Memorial Monument, restore murals in our downtown and support other downtown art projects. • Secured $5M from San Bernardino County for the Fontana Homelessness Prevention Resource and Care Center. • Secured a $508,000 grant from the Transportation Development Act Article III and San Bernardino County Transportation Authority for various transportation projects.
• Assisted Housing with securing $4M from U.S. Department of Housing & Urban Development for the Fontana Housing Lead Reduction Program. The program will assist residences with children under 6 years old.

Human Resources
• Hosted 2nd Annual New Employee Mixer; 30 employees attended. • Continued the Classification and Compensation Salary Survey for implementation. • Revised and adopted the Minimum Paid Sick Leave Policy. • Revised and adopted the Dress Code & Appearance Policy. • Revised and adopted the Cafeteria Plan Policy.
• Adopted Fleet Management Electronic Tracking System Policy. • Held the Annual Employee Benefit Fair with over 304 participating employees. • Completed 4thOpen Enrollment online through Employee Self-Service (ESS) portal. • Launched two (2) new high deductible medical plan options for employees. • Processed over 7,400 benefit elections during the year.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Successfully processed 1,226 leave cash out elections through ESS. • Implemented new 401(a) Deferred Compensation plan with two bargaining groups. • Completed Annual Policy Review Training to all staff. o Administered over 2,000 mandatory trainings via Vector Solutions. • Continued to maintain a presence through diversity advertising platforms to enhance and diversify the applicant pool that yielded over 10,000 job views which represents a 33% increase from 2022/23.
• Continued working in collaboration with the Police Department. Recruited, hired/promoted, and onboarded 24 police officers. • Completed 18 Liebert Cassidy Whitmore (LCW) in-person and webinar-based trainings for employees. • Over 2,836 visitors checked-in the Human Resources department; 42% of the visitors interviewed for a job vacancy. • Processed more than 2,500 personnel action items.
• Processed over 260 job requisitions to fill departmental staff vacancies. • Received and processed over 11,000 applications from our online application system, NeoGov. Over 60% of the applicants identified as female and over 60% of the applicants identified as Hispanic.
• Hired approximately 65 Full-Time and 250 Part-Time new employees. • Successfully promoted 55 Full-Time and 30 Part-Time employees. • Facilitated in 12 After School Para-Professional testing events at the Fontana Adult School with over 200 attendees. • Leveraged our Tyler system (HRIS) to accurately track and maintain bilingual data which was an antiquated process in the past. • In collaboration with the Community Services Department, conducted two (2) workshops on “Becoming a Seasonal Employee – Application and Resume Process”.
• Conducted approximately 20 job description and compensation reviews. • Completed approximately 30 requests for organizational changes. • Successfully conducted over 50 written examinations and tested approximately 4,500 applicants via online exam platform, eSkill. • Processed approximately 200 employment verifications. • Recognized 108 employees at Annual Service Awards ceremony (5 to 35 years of continuous service). • Currently in Phase 2 of streamlining antiquated processes with the development of the digital Request for Personnel Action Form.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• In accordance with the Federal Motor Carrier Safety Administration, successfully completed annual random controlled substance and alcohol testing for Commercial Motor Vehicle drivers.
• Successfully completed annual CHP audit and conducted annual Clearinghouse queries for approximately 60 Commercial Motor Vehicle drivers. • Submitted the mandatory bi-annual EEO-4 report to Equal Employment Opportunity Commission. • Notably executive positions that were recruited, hired, and onboarded:
o Deputy City Clerk
o Emergency Services Coordinator
o IT Customer Service Manager
• Successfully completed the Rideshare Rule 2202 Annual Plan timely. • Welcomed nine (9) new members to the Rideshare program. • Successfully collected $99,585 in subrogation payments for restitution of City property damage. • Implemented HR’s “Leadership Open Conversations” Roundtable. • Updates made to Benefits webpage.
• Added new holiday alert system to the website to notify Public of upcoming closures.

Risk Management
• Safety Committee met on a monthly basis and conducted nine (9) meetings. • Risk Management Division website was created and offers helpful information and resources regarding Worker’s Compensation, incident reporting, claims management, and the City’s insurance programs.
• Conducted two (2) Claim Reviews for both General Liability and Worker’s Compensation. • Conducted six (6) Interactive Process Meetings.
• Department of Transportation (DOT) Program Medical Examiner changed to ExamPros. • Implemented the use of ConCentra for Workers’ Compensation injuries and pre-employment testing. • Secured Optional Excess Liability Coverage (OEL) effective 10/10/23. • Implemented Surety Bond Review process.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Received and processed 60 new Worker’s Compensation claims. • Received and processed 120 new General Liability injury claims. • Received 390 new Incident Reports.
• Sold 150 Certificate of Insurance (COI)’s.
• Implemented Medical Provider Network (MPN) Program for employees. • Completed 45 Ergonomic Assessments for City employees to prevent injuries and assist with overall wellness. • Posted annual OSHA 300 Log for injury reporting.
• Administered 11 monthly safety trainings via TargetSolutions, resulting in 4,400 training completions. o Fire Extinguishers, Bloodborne Pathogens, Accident Prevention, Fire Prevention Plan, Electrical Safety Awareness, and other safety related topics.

City Clerk
• Processed and completed 1,022 Public Records Requests within 10 days. • Posted 47 agendas (Council & Committees).
• Indexed and scanned a total of 44,561 pages.
• Processed 130 Resolutions and 27 Ordinances.
• Presented 38 Proclamations and 581 certificates.
• Processed 133 Claims for Damages
• Operation of City Clerk’s Department during Deputy City Clerk vacancy. • Appointment and onboarding of Deputy City Clerk.
• Implementation of Fontana 311 Customer Service for Public Records Requests. • Transferred 221 boxes to Coradata in preparation for Fire Annex demolition.

Community Services
Aquatics
• 2,373 Swim Lessons conducted at Don Day, Fontana Park Aquatic Center, Heritage, and Miller Pools.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• 24,525 Recreational Swim participants swam at Don Day Pool, the Fontana Park Aquatic Center, Martin Tudor Splash Park, Heritage Pool, and Miller Pool.
• 7,312 individuals participated in Drop-in fitness programs such as Aqua aerobics and Lap Swim at Miller Pool and the Fontana Park Aquatic Center.

Sports: Pee Wee / Youth / Athletic Fields
• Pee Wee Sports – 596 participants:
o 1 season of T-ball at Hunters Ridge Park and Southridge Park. o 1 season of soccer at Central City Park and South Fontana Park. • Youth Sports – 929 participants:
o 2 seasons of Basketball at the Jessie Turner Gymnasium. o 1 season of Roller Hockey at the Fontana Park Sports Pavilion. o 1 season of Middle School Volleyball.
• Athletic Fields
o 1,543 number of ball field permits.
o 51,833 number of hours allocated.

Special Events
• 4th of July was held in person at a new location, Summit High School. Over 3,000 community members enjoyed the festivities as they danced the night away to “Who’s Bad?”, The Ultimate Michael Jackson Experience. • (3) Fontana Car Shows with over 400 people in attendance at each event. • (4) Summer Concerts were held every Thursday night from July 5th – July 27th. Each week over 1,500 community members danced the night away to a different band.
• (2) Family Fun Nights were held at different neighborhood parks and over 200 members enjoyed this family-friendly event that concluded with a movie under the stars.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Spring Street Night Markets were held in July and October in downtown Fontana. About 2,000 community members were in attendance as they enjoyed music, live entertainment, graffiti art, jumpers, crafts, and a beer and wine garden. • The Annual Tree Lighting Ceremony took place in front of City Hall, where we were joined by over 200 community members. • The Fontana Christmas Parade had over 6,000 spectators that enjoyed the event. • Over 2,500 residents joined in the holiday fun at Festival of Winter. • (9) Co-Sponsorships served over 10,600 residents in the community from July thru December.

Nature Center
• As a fieldtrip destination, the Nature Center provided educational programming for 1800 students from 31 different local schools. • The Nature Center hosted Public Lands Day with over 100 community volunteers planting California Native Plants throughout the park. • The Nature Center provided educational programs for approximately 3,000 students at 34 FUSD Schools through the FELP program, visiting each site on two separate occasions with different science-related programming and facilitating programming off-site in Lytle Creek as a field trip destination. • The Nature Center hosted a Summer Camp for 4 weeks in the Month of July with 40 students per week. • The Nature Center partnered with FUSD Police Department through the F.L.I.P and Jr. F.L.I.P programs to provide work projects and educational experiences for at-risk youth within the local school system. Each program visited the Nature Center with approximately 50 children each time.

Healthy Fontana
• Over 2,600 youth received nutrition and physical education through Summer Camp and after-school programming. • Participated in over 150 outreach programs including Fontana Expanded Learning Program, Summer Camp, and Community Events (including Fontana Walks, Farmers’ Markets, and Health Fairs).
• 11th Annual Let’s Move on the Trail had over 2,500 attendees and featured over 50 community partners including Fontana Police Department and Fire Station #71.
• Published 6 monthly electronic Healthy Fontana Newsletters distributed to over 11,100 monthly recipients. • Fontana Walks has accumulated over 15 billion steps with over 4,000 registered human and pet participants since inception.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Received a community benefit grant from Kaiser Permanente in the amount of $18,000 to implement “Feeding Fontana,” a project designed to help combat food insecurity in the City of Fontana.

Senior Services
• 12,912 meals prepared and distributed to senior community members. • 9,956 senior enrollments in various programs, classes, and events. • 7,014 senior volunteer hours accounted, assisting in senior programming saving the city an estimated $223,045.

Neighborhood and Community Centers
• Provided Summer Camp to 1,563 campers.
• The Neighborhood & Specialty Community Centers have attracted 14,082 registered participants during 101 unique class types provided. • The Neighborhood Community Centers had a combined total of 238 private rentals, 94 internal rentals, 7 co-sponsored rentals, and 15 Joint-Use rentals.
• “Above the Limits”, the City’s special needs program, had 9 events with 576 attending. • Halloween events such as “Trick-or-Treat Alley,” offered at the Don Day, Cypress, and Jessie Turner Community Centers and “Halloween Howl” hosted at Jessie Turner had a great turnout with a total attendance of 5,437 people. • 1,147 enrollees in the Tiny Tot Program at Don Day, Heritage, and Jessie Turner Community Centers for age group 3 to 5-year-olds.

Fontana Expanded Learning Program
• The program has served more than 3,200 registered youth at 33 sites between July and December including the elimination of the program waitlist by 398% with 900+ applications.
• FELP hosted a summer staff development for 129 staff members where they received training that focused on Special Education classroom management, active shooter safety procedures, safety and social emotional learning and enrichment lessons/programming. • FELP hosted “Lights On Afterschool” virtual programs at 33 school sites, a nationwide event meant to call attention to the importance of after school programs.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• FELP hosted 33 Winter Celebration events/activities in December. • FELP has implemented Mary Vagle Nature Center, LEAP (Lead Education and Art Program), and Healthy Fontana Curriculums in 33 school sites. • FELP has implemented field trips to the Lytle Creek Ranger station and Applewhite Picnic area taking 21 program sites to visit between July and December.

Mayor’s Youth Advisory Council (MYAC)
• The council has 57 active members.
• Council has hosted 12 meetings (6 general meetings and 6 special presentations) between July and December. • MYAC hosted a Strategic Planning meeting in collaboration with Mayor Warren and Jesse Armendarez Second District Supervisor of San Bernardino County.
• MYAC Board members hosted a mental health workshop at the Statewide conference Friday Night Live Summit in October. • MYAC members held a team building activity at CSUSB Leadership Rope Course in October. • MYAC members have completed over 800 hours of community services.

Cultural Arts
• To date, the Arts Depot Gallery has hosted three Artist Showcases with more than 268 attendees to enjoy the visuals provided by local artists. • Hosted recreational classes at the Art Depot Gallery and Koehler Gallery, those of which included: eight Drawing 101, one Ceramics, and two Pottery Wheel classes for approximately 202 registered participants and an attendance of 775 for all class sessions. • The Art Depot Gallery hosted Visual Arts Programming which included the return of Teen Paint Night and Adult Paint Night, as well as the expansion of Youth Paint from one session a month to two sessions a month. The gallery has hosted eight PJ Paint nights, five Little Tyke Paint Night, two Teen and Adult Paint Nights, two DIY Artistry, four Artist Showcase Workshop, and 35 in-person Imagination Studio/SNAP appointments for approximately 384 participants.
• Fontana Arts Camp ran for four weeks with 120 enrolled participants.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Fontana Arts participated in nine Outreach Events throughout the City of Fontana where they handed out art-kits and hosted in-person art activities to 1,400 community members.
• Fontana Arts hosted La Gran Fiesta: A Hispanic Heritage Month Celebration. This year’s event celebrated art, music, dance, and culture with more than 3,500 community members in attendance.
• The Cultural Arts Team is thrilled to celebrate the growth of the Dia De Los Muertos event. Held at Southridge Park, more than 500 attendees participated in various art activities including a community ofrenda, live entertainment, face painting, art projects, and art and food booths. • The Youth Community Theater Fall production was the classic play Annie, Jr. With a cast of 55 community youth and more than 1,246 tickets sold.

Marketing and Communications
• Marketing Cloud has been a tremendous success and has allowed the Marketing team to grow the total number of subscribers. Digital communication is currently going out to more than 44,000 subscribers. • Distributed 19 news announcements including the monthly CSD email newsletter and Healthy Fontana news. • Distributed 16 press releases notifying the public of City's Community Services Department programs, events, and facilities. • Increased Community Services Department presence on social media through Sprout Social.  Curated engaging, informative, and visually appealing content that highlights the services, programs, and events offered through Community Services Department.
 Produced over 699 Community Services Department related posts with over 2.1 million impressions.  Across all three social media channels (Facebook, Instagram, and Twitter), the City of Fontana has a total subscriber/follower count of 58,990. • Promoted 17 campaigns – Summer Concerts, 4th of July, Car Shows, Family Fun Nights, Let’s Move on the Trail, Farmers’ Markets, Garden Workshops, Open Enrollment Health Fair, Hispanic Heritage Festival, Día De Los Muertos, Annie, Jr., Fontana Walks!, Community Services Department Hiring, Spring Street Night Market, Halloween Festivities, Veterans Day Celebration & Writing Contest, and winter activities (Festival of Winter, Christmas Parade, and Tree Lighting Ceremony).

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
Innovation & Technology
Land Management and Permitting System
• In 2021 the Innovation and Technology department began efforts to improve business processes in the land management and permitting systems.

During the pandemic it became clear that paper processes were no longer an effective way of serving our residents nor business partners. The city wished to replace the existing solution with an improved digital solution to meet the needs of city employees, residents, and businesses. Over the course of a year, city staff reviewed processes and gathered requirements for a new solution. A new solution was selected in late 2021 to help improve processes in the land management and permitting system space. Throughout 2022 the IT department has continued to lead this project working alongside almost every city department to ensure the new solution will be tailored to meet the city of Fontana’s needs in this space. This project has been a 3-year effort and we are now nearing the tail-end of the project. The new, improved solution will seamlessly connect with surrounding systems, assist customers with an easy-to-use interface, ensure city employees process requests in a consistent and efficient manner, and provide dynamic insights to internal operations.
 The dedication and efforts put into this project resulted in a successful implementation of the new land management and permitting system – Accela in 2023. This was a 3-year effort that has brought Fontana a new, improved solution that seamlessly connects with other city systems and assists customers with an easy-to-use platform, ensures city employees process requests in a consistent and efficient manner, and provides dynamic insights to internal operations.

Fontana 311 System
• The City of Fontana developed and implemented the Fontana 311 system to improve communication and streamline services to its Residents and Businesses by bringing all customer interactions to one central location. The system went fully live in 2023 and has been a great success for the city.

Residents have a “one-stop-shop” to request city services and or report issues. Throughout the year, efforts continued to expand on the services provided by tying in services for Code Enforcement and Community Services. In progress is the implementation of an AI-based interactive voice response system to answer and route phone calls to the appropriate department.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
Website Redesign
• In 2023, the Innovation and Technology department in cooperation with Marketing and Communications department and other city departments launched a new design of its external website to improve and enhance the experience of residents, visitors, and businesses who are seeking information and services from the city. With a focus on users and reducing redundant processes, the redesign ensures a smoother online experience. The new site was launched in spring of 2023 and included a domain name change from fontana.org to fontanaca.gov which ensures a more secure and trusted source for the public.

Expand Wi-Fi to Community Centers
• The IT department expanded public Wi-Fi at community centers and parks to provide broader access to Wi-Fi to the residents of the City of Fontana and visitors of Fontana’s facilities. Accessibility to Wi-Fi better supports the students who use Fontana’s facilities after school, during school for remote learning, or for independent learning programs. Expansion of Wi-Fi at the City’s community centers and parks also puts the city in a better position to provide Internet access to members of the public during disasters or safety concerns when the centers are used as evacuation centers or shelters, affording them better access to news, loved ones, and resources. Public Wi-Fi is now available at Fontana Park – Jessie Turner and Aquatic Center, Jack Bulik Center, Heritage Center, Cypress Center, and Don Day Center.

Police Department Live 911 System
• To improve situational awareness and reduce response times of the Fontana Police Department, the Live 911 system aims to provide officers with the ability to monitor 911 calls in real or near real-time while out in the field. The new system was tested and deployed in 2023 and has proven to be a reliable and necessary solution for our Police Department.

Recreation Management System
• In 2022 the IT Department in partnership with the Community Services Department began efforts to explore new and improved technology to offer recreation classes to our community. The departments were also looking for a system that would need to be intuitive and simple for both citizens and staff to use. The new system will need to handle the wide array of activities that the City of Fontana provides to its citizens. This includes, but is not

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
limited to, field/shelter reservations, 25+ types of memberships, facility reservations, pool rentals, online and in-person activity registrations, online reservations, a robust POS system, scholarship awards, and a GIS integration for residency. An RFP was issued in 2023 and ACTIVENet solution. proposed by ACTIVENetwork was selected as the preferred solution. The solution offers all the required capabilities as well as additional functionality that will be useful in our environment. The new system is set to go-live in the first quarter of the 2024 calendar year.

Finance
• Brought in over $1.5 million in additional Business License Revenue through the HDL Compliance program. • Processed over 1,800 passport applications.
• Community Facilities District No. 100 (Victoria) issued $5.3 million of Special Tax Bonds to finance the acquisition of public facilities within the district. • Levied $19.27 million on approximately 32,647 parcels in maintenance districts to fund landscape, lighting, and park costs. • Levied $17.79 million on approximately 8,699 parcels in bond district to pay debt service. • Measure I and Annual Street reports issued timely.
• Provided Accounts Payable training to all departments. • Annual Comprehensive Financial Report completed and issued months earlier in comparison to previous fiscal year. • Reinstituted Monthly Financial Performance Report.
• Timely year-end closing.
• 779 Purchase Orders were processed.
• 290 Contracts were issued.
• 59 Bids were processed.

Development Services
The Development Services Organization consistently strives to provide a high level of customer service. The organization is committed to partnering with residents, developers and interdepartmentally to assure successful development throughout the City.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
Planning
• Approved multiple industrial projects totaling 1,298,813 square feet. • Approved commercial/office projects totaling 65,006 square feet. o Commercial Plaza of approximately 43,508 square feet that includes a sit-down restaurant, drive-through restaurant, fueling station, convenience store, retail suit, and 2-story retail/office building (SEC of Baseline Ave. and Sierra Ave.) o Aldi’s grocery store of approximately 20,394 square feet (SWC of Sierra Avenue and Marygold Avenue) o Coffee Shop of approximately 1,104 square feet (Downtown Area) • Approved mixed use (Ventana, Alta Fontana) and projects. o Downtown Core Project-Creating opportunities for mixed use, residential, and commercial projects. (Downtown Area) • Approved 55 Single Family Homes and 361 Multi-Family units. o Notable: 255 condos in Southridge. Contained 147 detached cluster homes and 108 detached stub drive homes with various amenities and a public park.
• Ongoing work related to updating/streamlining the Development Code. • Completed work related to the SB2 State Planning Grant to accelerate housing production, associated civic and commercial development, and walkability in the Downtown.
• Ongoing work related to LEAP Grant to update the Walnut Village Specific Plan. • Ongoing work on updates to the Westgate Specific Plan. • Ongoing planning and environmental support to various city projects. • Ongoing enhancements to City’s project map (MCN map). • Ongoing training for staff to implement Accela software program for tracking entitlements. • General customer calls 3,136 (non-project related) over the phone Assister over 2,075 customers at the public counter.

Building and Safety
• Issued 277 permits for single family dwellings, including 32 accessory dwelling (ADU) and 4 multiple family dwelling permits for a total of 331 units, and 2,375 total permits overall.
• Reviewed and processed 574 plan checks in the first half of the fiscal year: including new as well as subsequent submittals.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Performed 25,970 inspections on residential, commercial, and industrial projects. • Issued 5 industrial building permits at 66,750 square feet and a total valuation of $67,994,367. • Helped over 3,211 Building and Safety customers at the public counter.

Code Compliance
• Responded to 2,679 code compliance cases and closed a total of 2,586 code compliance cases. • Billed a total of $364,297.26 and recovered a total of $152,878.30 in code compliance cases. • Opened 7,190 weed/rubbish abatement cases.
• Billed a total of $713,166.99 and recovered a total of 43,998.24 for weed abatement cases. • Current active zoning cases 608.
• Issued 215-yard sale permits.

Public Works/Engineering
• Trimmed 9,104 street trees.
• Removed 138,523 square feet of graffiti City-wide.
• Replaced pool heaters at Fontana Aquatics Center.
• Replaced restroom roof at Southridge Park.
• Replaced decorative wooden entrance pergolas at Hunter’s Ridge. • Laser leveling of the ballfields at Village and Bill Martin Parks. • Resurfaced and re-striped the Jack Bulik Park roller hockey court to add 2 additional pickleball courts (6 total). • Repaved parking lots at Almeria, Pat Marrujo, Catawba, and San Sevaine Parks. • Upgraded the security lighting in Northgate Park.
• Converted 15 landscape domestic water meters over to recycled water in the Village of Heritage. • Installed 12 total new baseball scoreboards at Veteran’s Park (6) and Jack Bulik Park (6). • Installed 38 total new baseball dugout shade covers at Veterans Park (12), Bill Martin Park (10), Jack Bulik Park (12), and Southridge Park (4). • Swept 15,008 curb miles of streets.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Filled approximately 1950 potholes and replaced/installed 386 street signs were. • Conducted 229 commercial and industrial pretreatment inspections. • Completed 329 curbside used oil pickups collecting 1,186 gallons of used oil and 466 oil filters. • Cleaned 624,750 linear feet of sewer mainline.
• Completed construction of Foothill Blvd Pavement Rehabilitation Project. • Completed construction of the TDA Kathy Binks Elementary School Sidewalk Improvement Project. • Completed construction of the PD Fence Project.
• Completed slurry seal in the Sierra lakes community.
• Completed construction of the Blanchard Avenue Sidewalk Project. • Continued construction of Fire Station 81 project.
• Continued construction of the Sierra Ave Widening Project. • Began construction of the N. Cherry at Live Oak Traffic Signal Project. • Began construction of the of the Citrus at Chase Traffic Signal Project. • Began construction of the W. Liberty at Miller Traffic Signal Project. • Awarded construction contract for the Arrow at Tokay Traffic Signal Project. • Awarded construction contract for the Blanchard Avenue Sidewalk Project. • Awarded construction contract for the Highland at Mango Traffic Signal Project. • Awarded construction contract for the Active Transportation Program Ramona, Alder, Locust Project. • Awarded construction contract for the Active Transportation Program Fontana Gap Closure Project. • Awarded construction contract for the Transportation Development Act Alder Middle School Sidewalk Project. • Awarded construction contract for the Arrow at Cypress Traffic Signal Project. • Awarded construction contract for the Heritage Fiber Optic Project. • Awarded construction contract for the Jurupa Landscape Median Project. • Awarded construction contract for the San Sevaine Trail Project. • Awarded construction contract for the Sierra Avenue Landscape Median Project.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Awarded Design-Build Contract for the Downtown Parking Structure Project. • Awarded Design-Build Contract for the City Hall Renovation Phase 1 Project. • Awarded construction contract for the Courtplace Housing Development Project. • Awarded Construction Contract for the Sierra Lakes Rehabilitation Project. • Completed design and opened bids for the Southridge Grid 53 Street Rehabilitation Project. • Completed design and opened bids for the Heritage N, S, W Street Rehabilitation Project. • Completed design and opened bids for the Southridge Jurupa Ave Hemlock to Sierra Street Rehabilitation Project. • Completed design and opened bids for the Rose Ave Street Rehabilitation. Awaiting award Project. • Completed design and opened bids for the City Sidewalk Replacements Grid 29, 35, 36, 42 Project. • Continued design for the Cypress Storm Drain Project. • Continued design for the Baseline at Palmetto Traffic Signal Project • Continued design for the Summit at Cypress Traffic Signal Project. • Continued design for the ARPA Fiber Optic Projects
• Continued design and environmental for Foothill from Almeria to Hemlock (Malaga Bridge). • Continued design for Fire Station 80 Training Center Project. • Continued design for the Sierra Ave at Riverside Ave Traffic signal. • Began design for the Active Transportation Program Date Elementary School Sidewalk Project. • Began Utility Relocations for the Etiwanda Avenue at Slover Avenue Intersection Widening Project.

Housing Authority
• The Housing Authority’s Housing Rehabilitation Program (HRP) is funded annually with Community Development Block Grant (CDBG) funds. The program is designed to assist low and moderate-income residents of owner-occupied homes, to preserve their housing by making needed repairs and code violation corrections. Assistance is offered as a grant and/or 0% interest, no payment loan. There are currently 36 applicants in various stages of processing. To date, approximately $2 million has been spent for current and completed applicants since 2016. A total of 91 residents have successfully obtained assistance through HRP.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
• Implemented COVID-19 related assistance programs with funding provided by the CARES Act under Community Development Block GrantCoronavirus (CDBG-CV). These funds were utilized for the Emergency Rental & Mortgage Assistance (ERMA) and the Hotel/Motel Voucher program.

ERMA provide grants for rent, mortgage, and utility assistance to low and moderate-income residents that have been financially impacted by the Pandemic. A total of 252 resident households successfully obtained $1.6 million in assistance through ERMA. Additionally, staff implemented the CDBG-CV Motel voucher program that has temporarily housed 76 individuals or families that were experiencing homelessness. • Received $2,343,005 provided by the CARES Act under the Emergency Solutions Grant-Coronavirus (ESG-CV 1, 2, 3) to measure to prevent, prepare for, and respond to the COVID-19 pandemic among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts created by coronavirus under the Emergency Solutions Grants program. The funds have been utilized by Water of Life to provide the following services: homelessness prevention, rapid rehousing, emergency shelter, and street outreach. Additionally, the Housing Authority purchased a property for a temporary emergency shelter which will be utilized as an interim housing facility for homeless seniors and families with children. To date, approximately $2.6 million has been spent on these services.
• The City was awarded $2.8 million from the California Interagency Council on Homeless Family Homelessness Challenge Grant in June 2022. These funds have been utilized to provide continued support for homeless assistance, interim housing activities, and construction of additional units to be used as an interim housing facility for homeless seniors and families with children. • The City was awarded CalHome Program funds from the State of California Housing & Community Development (HCD) in the amount of $500,000.

These funds are primarily utilized to assist low-income mobile home residents to preserve their housing by making needed repairs. Assistance is offered as 0% interest, no payment forgivable loan. Since the program launched in February 2023, staff has received 18 applications and approved four (4) to move forward with repairs.
• Received $4.4 million through the U.S. Department of Housing and Urban Development’s Lead Hazard Reduction Grant & Healthy Homes Supplemental Grant Programs. This comprehensive program is designed to identify and control lead-based paint hazards in eligible privately-owned rental or owner-occupied housing populations. This program is expected to be launched in mid-2024.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Departmental Activities - continued
Police Department
• Awarded 2023 Edward Byrne Memorial of Justice Assistance Grant (JAG) in the amount of $55,291. • Awarded 2022 Homeland Security Grant Program in the amount of $37,919. • Applied for the 2024 Homeland Security Grant Program in the amount of $57,927. • Awarded 2024 Office of Traffic Safety (OTS) Grant in the amount of $330,000. • Awarded 2024 Alcoholic Beverage Control Grant in the amount of $23,990. • Applied for the 2025 Office of Traffic Safety (OTS) Grant in the amount of $365,535.

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Summary of Proposed General Fund Adjustments
The Midyear Budget Report recommends the following General Fund budget adjustments:

Revenues Expenditures
Adjust revenue estimates to reflect mid-year collections:

Increase to Sales Tax 247,828
Increase to Miscellaneous Income 2,500
250,328
Recurring personnel adjustments:

Citywide Cafeteria plan / health cost increases 330,095 City Administration New Management Analyst II position 55,435 Innovation & Technology New IT Systems Technician position 44,719 Innovation & Technology Overtime pay for after hours and weekend support 15,000 Innovation & Technology KFON Intern program (2 interns) 32,000 Development Services Admin New Management Analyst I position 49,131 Building & Safety New Building Inspector II position 42,331 Building & Safety New Senior Code Enforcement Inspector position 46,615 Public Works & Engineering New Engineering Technician II position 22,654 Public Works & Engineering New Public Works Inspector position 43,746 Public Works & Engineering New Traffic Signal Maintenance Technician II position 22,750 Police New Part-time Background Investigator position 13,815 Police New Police Dispatcher II (2 positions) 81,031
Police PT Background Investigator 36,020
835,342
Offsetting adjustments:

Finance HDL Business License Compliance and Commission 832,000 832,000 Development Services Admin Rutan and Tucker legal fees from Planning to DSO Admin 266,110 Planning Rutan and Tucker legal fees from Planning to DSO Admin (266,110) Development Services Admin Management Analyst I position PW&E to DSO Admin 57,660 Public Works & Engineering Management Analyst I position PW&E to DSO Admin (57,660) 832,000 832,000
Fund Balance
Impact

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Summary of Proposed General Fund Adjustments – continued The Midyear Budget Report recommends the following General Fund budget adjustments:

Revenues Expenditures
New requests (recurring):

City Administration BB&K legal fees 773,940
Human Resources Laserfiche scanning services 50,000
City Clerk Council certificate frames 1,000
Finance SB1029 reports for CFDs 6,500
Development Services Admin Deputy City Manager conferences 2,250 Building & Safety O&M for New Senior Code Enforcement Inspection Vehicle 7,370 Public Works & Engineering Geotechnical quality assurance test 10,000 Public Works & Engineering O&M for New Position Vehicles 12,405 Public Works & Engineering Weed abatement and landscape maintenance 18,900 Police O&M for Police vehicles 36,790
Police Lateral dispatcher recruitment incentive 5,000
924,155
New requests (one-time):

City Administration New Mgmt. Analyst II position equipment 3,000 City Administration BB&K legal fees 1,126,060
City Clerk Records storage delivery, cubicles and furniture, interpreter 23,528 Innovation & Technology Furniture, training, conferences, equipment 118,000 Innovation & Technology New IT Systems Technician position equipment 3,000 Finance Decrease appropriations for LRB21 US Bank trustee fee (3,450) Finance CFD's arbitrage reporting 37,000
Finance LRB 14 arbitrage reporting 2,500
Finance Formal bid newspaper advertising 8,000
Development Services Admin New Management Analyst I position equipment 3,000 Development Services Admin Cannabis consultant services 160,000 Building & Safety New Building Inspector II equipment 3,000 Building & Safety Fencing, walls, and improvements for 16762 Spring St. 35,000 Building & Safety Contingency funds for vendor enforcement contract 58,050 Fund Balance
Impact

501
Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Summary of Proposed General Fund Adjustments – continued The Midyear Budget Report recommends the following General Fund budget adjustments:

Revenues Expenditures
New requests (one-time) - continued:

Public Works & Engineering Park improvements, maintenance, and equipment 644,790 Public Works & Engineering CIP related plan checks 25,000 Public Works & Engineering Land Development consultant and grant support 161,000 Public Works & Engineering consultant plan review/approval 50,000 Public Works & Engineering C/O FY22-23 Q3 traffic signal installation 118,430 Public Works & Engineering Slover Ave. signal plan check 141,920 Police City Council additional security for meetings 8,000 Police equipment maintained and trainings 2,500
Police Accurint Virtual Crime Center Software 9,120
Police San Bernardino City Animal Shelter 72,821
Police (2) New Dispatcher positions equipment and training 1,750 2,812,019
Net adjustments 1,082,328 5,403,516
Transfers: From Fund #110 for OmniTrans project defund 51,815 To Fund #102 to cover fiscal year operating expenditures 100,000 To Fund #108 for UAL prefunding as per the new Fund Balance Policy 4,687,543 To Fund #396 to cover operating expenditures 304,088
To Fund #601 for road improvements as per the new FB Policy 4,687,542 To Fund #751 for New Senior Code Enforce Insp Vehicle 81,400 To Fund #751 for New Public Works Inspector Vehicle 48,700 To Fund #751 for Hybrid Bucket Truck New TSMT II vehicle 180,000 To Fund #751 for new animal service truck 175,750
Reserves: Annual Shelter JPA 800,000
Operating Contingencies 3,000,000
Settlements 2,500,000
Unappropriated Fund Balance (20,834,396)
1,134,143 1,134,143
Fund Balance
Impact

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
General Fund Revenues
Revenues continue to be monitored on a monthly basis. Staff recommends a net increase in revenues of $1,082,328 as part of the Midyear Budget Status Report. See page 48 for details of the revenue adjustments.

NOTE: Property Tax in-lieu of VLF collections are lagging due to the State’s distribution which provides for lump-sum payments in January and May. Interest revenue is received starting in October and is followed by a year-end accrual for a full twelve months of interest. A large number of Business Licenses are renewable in December. A large share of Franchise revenues is received annually in the month of April. When adjusted for these anomalies, the percent of recommended budget received is 40.87%.

Revenue Source Adopted Budget
Current Budget
Before
Adjustments
Received as of
12/31/2023
Percent of Current
Budget Received
Recommended
Midyear
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Received
Sales Tax $ 57,415,950 $ 57,415,950 $ 18,803,776 32.75% $ 247,828 $ 57,663,778 32.61% Property Tax 40,078,510 40,078,510 5,108,170 12.75% - 40,078,510 12.75% Interest and Rentals 3,784,080 3,784,080 1,942,917 51.34% - 3,784,080 51.34% Franchises 9,750,430 9,750,430 2,732,688 28.03% - 9,750,430 28.03% Business Related 9,805,210 10,605,210 5,656,469 53.34% 832,000 11,437,210 49.46% Development Related 10,381,260 10,381,260 4,818,600 46.42% - 10,381,260 46.42% Recreation 4,095,520 4,189,320 1,768,218 42.21% - 4,189,320 42.21% Motor Vehicle in-Lieu 200,000 200,000 - 0.00% - 200,000 0.00% Miscellaneous Revenues 2,341,040 2,346,290 1,230,262 52.43% 2,500 2,348,790 52.38% Reimbursables 2,053,450 2,093,450 1,239,208 59.19% - 2,093,450 59.19% From Other Agencies 5,966,550 6,114,820 2,983,275 48.79% - 6,114,820 48.79% Total General Fund $ 145,872,000 $ 146,959,320 $ 46,283,584 31.49% $ 1,082,328 $ 148,041,648 31.26%

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
General Fund Expenditures
General Fund expenditures for Midyear are on track and within budget. Staff recommends a net increase in appropriations of $5,403,516. See page 48 through 49 for details of the expenditure adjustments.

NOTE: The above amounts do not include projects.

Department Adopted Budget
Current Budget
Before
Adjustments
Spent as of
12/31/2023
Percent of Current
Budget Spent
Recommended
Midyear
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Spent
City Administration $ 5,371,110 $ 5,348,231 $ 2,905,427 54.33% 1,974,445 $ 7,322,676 39.68% Human Resources 1,413,840 1,600,498 617,542 38.58% 66,380 1,666,878 37.05% Administrative Services 623,130 773,400 234,652 30.34% 1,264 774,664 30.29% City Clerk 718,270 741,399 324,690 43.79% 24,528 765,927 42.39% Community Services 15,348,970 15,462,317 6,095,325 39.42% 26,862 15,489,179 39.35% Innovation & Technology 4,815,480 4,914,716 2,201,251 44.79% 224,105 5,138,821 42.84% Finance 4,524,800 4,619,310 1,888,357 40.88% 894,996 5,514,306 34.24% Development Services 1,567,850 2,046,445 741,479 36.23% 511,225 2,557,670 28.99% Building and Safety 3,364,620 3,922,498 1,478,090 37.68% 205,012 4,127,510 35.81% Planning 3,345,430 3,557,875 1,408,576 39.59% (218,700) 3,339,175 42.18% Public Works & Engineering 13,398,510 15,169,698 6,245,282 41.17% 1,265,343 16,435,041 38.00% Police 78,182,420 77,246,249 34,762,816 45.00% 428,056 77,674,305 44.75% Total General Fund $ 132,674,430 $ 135,402,636 $ 58,903,487 43.50% $ 5,403,516 $ 140,806,152 41.83%

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Fund Balance Review
The City Council has established an Undesignated General Fund Balance goal of 25% of adopted recurring annual appropriations. The Midyear Report recommendations maintain this balance. The City’s Undesignated General Fund Balance represents the available resources to provide funding for future contingencies such as earthquakes, economic fluctuations, major infrastructure repairs and investment in capital for improved productivity and efficiencies.

The Midyear Budget Report recommends the following:
• $800,000 Increase to Animal Shelter JPA
• $3,000,000 Increase to Operating Contingencies
• $2,500,000 Increase to Settlements
• $19,861,791 Decrease to Unappropriated Fund Balance
Fund Balance Reserves After Adjustments
25% Contingency Reserve $33,087,836
Animal Shelter JPA Reserve $800,000
Operating Contingencies Reserve $3,000,000
PERS Rate Stability Reserve $10,694,317
Settlements $2,500,000
Unappropriated Fund Balance $0
Total $50,082,153

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Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Organizational Changes
Quarterly Budget Reports are routinely used to recommend organizational and/or personnel changes within a fiscal year. Upon approval, the total recurring costs for these organizational changes will be added to the department’s target numbers. The changes have been reviewed by Human Resources and comply with City personnel rules.

Position
Number FY 23/24 Annual FY 23/24 Annual FY 23/24 Annual
City Administration New Management Analyst II (Grant Support) 55,435 144,130 - - 55,435 144,130 Community Services 24049 Eliminate Community Services Coordinator - - - (96,670) - (96,670) Innovation & Technology New IT Systems Technician 44,719 116,270 - - 44,719 116,270 Development Svcs New Management Analyst I (Case Manager) 49,131 127,740 - - 49,131 127,740 Development Svcs New Environmental Control Technician - - 36,988 96,170 36,988 96,170 Development Svcs P/T Eliminate Office Assistant - - (20,000) (20,000) (20,000) (20,000) Building & Safety New Building Inspector II 42,331 110,060 - - 42,331 110,060 Building & Safety New Senior Code Enforcement Inspector 46,615 121,200 - - 46,615 121,200 Public Works & Engineering New Engineering Technician II 22,654 58,900 22,654 58,900 45,308 117,800 Public Works & Engineering New Public Works Inspector 43,746 113,740 - - 43,746 113,740 Public Works & Engineering New Traffic Signal Maintenance Technician II 22,750 59,150 22,750 59,150 45,500 118,300 Public Works & Engineering 37139 Reclass Equip Operator I to Equip Operator II - - 1,742 4,530 1,742 4,530 Public Works & Engineering New Administrative Clerk II - - 26,981 70,150 26,981 70,150 Public Works & Engineering P/T Eliminate Intern II - - (12,000) (12,000) (12,000) (12,000) Public Works & Engineering 37031 Downgrade Assistant Eng to Engineering Tech II - - (10,050) (26,130) (10,050) (26,130) Public Works & Engineering New Administrataive Analyst II - - 46,485 120,860 46,485 120,860 Public Works & Engineering 37135 Eliminate Administrative Technician - - (46,320) (75,270) (46,320) (75,270) Public Works & Engineering 37038 Reclass Assistant Eng to Associate Engineer - - 5,196 13,510 5,196 13,510 Public Works & Engineering P/T Eliminate GIS Intern II - - (30,000) (30,000) (30,000) (30,000) Police New Police Dispatcher II (2) 81,031 210,680 - - 81,031 210,680 Police P/T New Background Investigator 13,815 35,920 - - 13,815 35,920 $ 422,227 $ 1,097,790 $ 44,426 $ 163,200 $ 466,653 $ 1,260,990 General Fund Impact Other Funds Impact Total Impact Department Action Description

506
Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Liability Claims
The City Council has authorized the Director of Human Resources and the City Manager to settle liability claims within specified dollar amounts as follows:

City Manager with the concurrence of the City Attorney $25,000 Director of Human Resources/Risk Management with concurrence of the City Attorney $10,000 The City Council has directed staff to report claim settlements as part of each quarterly budget report. There were no claims settled during the Midyear of Fiscal Year 2023/2024.

507
Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
American Rescue Plan Act (ARPA) Expenditure Plan
Approved Projects by Federal Use Category Amount Expended Available Public Health & Economic Response 21,263,544 8,867,705 12,395,839 Fontana Forward Grant Program 190,786 190,786 -
Homelessness Prevention Resources and Care Center 8,000,000 220,460 7,779,540 Leveraged Project: Support Government Employment 6,077,319 5,359,021 718,298 Metrolink Station Security Cameras 66,411 66,411 -
Park Improvements 4,079,892 181,891 3,898,001
Vaccine Bonus 526,986 526,986 -
Ventilation Upgrade for City Facilities 2,322,150 2,322,150 - Revenue Loss 10,000,000 280,692 9,719,308
Parking Structure 10,000,000 280,692 9,719,308
Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) 250,000 34,447 215,553 Administrative Costs 250,000 34,447 215,553
Water, Sewer, and Broadband Infrastructure 17,702,733 5,790,339 11,912,394 Cypress Storm Drain Project 5,840,000 - 5,840,000
Data Security & Threat Detection 157,927 157,927 0
Endpoint Detection & Response Solution 154,806 154,806 (0) Fiber to City facilities 2,000,000 27,186 1,972,814
Network Detection & Response Solution - - -
Leveraged Project: Accela 3,600,000 3,406,636 193,364
Leveraged Project: Fontana 311 3,150,000 1,372,229 1,777,771 Septic to Sewer 2,000,000 4,749 1,995,251
Sewer and Storm Drain Infrastructure Masterplan 375,130 318,519 56,612 Update Master Infrastructure Plans 424,870 348,287 76,583 Premium Pay 1,040,837 1,040,837 -
Part-Time Employee Retention 152,936 152,936 -
Public Safety Premium Pay 887,901 887,901 -
Total 50,257,114 16,014,020 34,243,094

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN
ESTIMATED AS OF Dec 31, 2023

508
Midyear Budget Status Report – 2023/2024 City of Fontana February 27, 2024
Conclusion
The City Council has provided fiscal policy direction that has laid the foundation for the 2023/2024 Operating Budget's conservative approach to revenues and expenditures. The recommended budget changes included in the Midyear Budget Report continue to adhere to City Council Policy.

As stated by the City Council’s Mission Statement below, the City of Fontana embraces every opportunity to enrich the lives of those who reside in this community, and this is possible due to its committed elected leadership and the talents and ingenuity of the individuals in this community and organization.

The key is through a well-planned, long-term fiscal plan, based upon economic development that will continue to generate high paying long-term employment opportunities, bring in new and stable sales tax revenue sources, and maintaining intergovernmental relations. Though there are still great challenges ahead, the City is firmly committed to meeting each and every challenge that comes our way. “We seek and embrace every opportunity to enrich the lives of those who live, work, play and invest in the City of Fontana.” Mission Statement Adopted April 26, 2022

509
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
2019/20 2020/21 2021/22 2022/23
Audited Audited Audited Audited Adopted Adjusted Proposed Proposed Actuals Actuals Actuals Actuals Budget Budget Adjustments Budget $ 114,334,026 $ 128,044,517 $ 132,698,387 $ 148,136,215 $ 145,872,000 $ 146,959,320 $ 1,082,328 $ 148,041,648 101,318,229 100,324,532 111,341,793 118,017,538 132,674,430 135,402,555 5,403,516 140,806,071 13,015,797 27,719,985 21,356,594 30,118,677 13,197,570 11,556,765 (4,321,188) 7,235,577 Other sources & uses:
11,199,568 10,455,858 12,073,139 11,585,264 12,194,470 12,329,200 51,815 12,381,015 (24,459,727) (27,553,964) (26,313,909) (26,336,232) (28,949,870) (30,185,494) (10,265,023) (40,450,517) (13,260,159) (17,098,107) (14,240,770) (14,750,968) (16,755,400) (17,856,294) (10,213,208) (28,069,502) (244,362) 10,621,878 7,115,824 15,367,709 (3,557,830) (6,299,529) (14,534,396) (20,833,925) 39,272,847 38,692,079 47,692,360 55,955,422 64,613,687 70,350,526 972,605 71,323,131 (336,406) 41,009
$ 38,692,079 $ 49,354,966 $ 54,808,184 $ 71,323,131 $ 61,055,857 $ 64,050,997 $ (13,561,791) $ 50,489,206 $ 327,065 $ 253,532 $ 375,878 $ 407,053 $ 375,878 $ 407,053 $ 407,053 2,500,000 2,500,000 0 0 0 0 0
2,827,065 2,753,532 375,878 407,053 375,878 407,053 0 407,053 8,500,057 8,514,643 9,469,586 0 0 0
6,038,085 5,869,393 10,886,393 10,694,317 10,886,393 10,694,317 10,694,317 Annual Shelter JPA 0 0 0 0 0 0 800,000 800,000
Operating Contingencies 0 0 0 0 0 0 3,000,000 3,000,000 0 0 0
Settlements 0 0 0 0 0 0 2,500,000 2,500,000
6,029,872 16,333,398 17,571,327 37,279,851 16,705,750 19,861,791 (19,861,791) 0 $ 23,395,079 $ 33,470,966 $ 38,303,184 $ 48,381,221 $ 27,968,021 $ 30,963,161 $ (13,561,791) $ 17,401,370 $ 15,297,000 $ 15,884,000 $ 16,505,000 $ 22,941,910 $ 33,087,836 $ 33,087,836 $ 33,087,836 Reserved
Fund balance, end of year

FUND BALANCE
Total other sources & uses
Revenues & other sources over (under) expenditures and
other uses
Fund balance, beginning of year
GASB 31 adjustment
Jr. Lien Bonds
Total reserved
Inventories
Designated
Unappropriated
Total available for contingencies
Economic Uncertainty
PERS Rate Stability
Operating transfers in
Operating transfers out
General Fund - Fund Balance Reconciliation
Revenues
Expenditures
Revenues over (under) expenditures
(Five-Year Summary)
2023/2024

510
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other General Funds:
102 City Technology $ 4,266,840 $ - $ 5,603,580 $ (9,336,064) $ - $ 534,356 $ (463,309) $ 71,047 103 Facility Maintenance 185,028 0 8,382,416 (8,394,230) 0 173,214 (46,210) 127,004 104 Office of Emergency Services 1,481,986 0 0 (226,060) 0 1,255,926 1,255,926 105 KFON 1,703,897 250,000 0 (26,982) 0 1,926,915 (208,000) 1,718,915 106 Self Insurance 8,219,502 8,611,150 0 (9,586,300) 0 7,244,352 (5,497,700) 1,746,652 107 Retirees Medical Benefits 2,042,332 260,000 2,600,000 (2,833,340) 0 2,068,992 2,068,992 108 Supplemental Retirement (302) 0 35,000 (32,560) 0 2,138 - 2,138 110 General Fund Operating Projects 1,101,781 (150,399) 1,811,120 (2,380,723) (62,556) 319,223 (1,850) 317,373 115 Lease-Fire 2,406,545 4,909,360 0 0 0 7,315,905 (7,088,254) 227,651 125 Storm Water Compliance 564,680 283,500 0 (225,180) 0 623,000 (26,742) 596,258 Total Other General Funds $ 21,972,289 $ 14,163,611 $ 18,432,116 $ (33,041,439) $ (62,556) $ 21,464,021 $ (13,332,065) $ 8,131,956 Special Revenue Funds:
201 Muni Svcs Fiscal Impact Fee $ 22,362,925 $ 1,250,000 $ - $ - $ (948,550) $ 22,664,375 $ 22,664,375 221 Federal Seizure Treasury 152,796 0 0 (75,000) 0 77,796 77,796 222 Crime Prev Asset Seizure 56,027 10,000 0 (33,300) 0 32,727 32,727 223 Federal Asset Seizure 11,257,653 1,550,000 0 (5,760,446) 0 7,047,207 (120,750) 6,926,457 224 State Asset Seizure 577,109 78,000 0 (61,940) 0 593,169 593,169 225 PD Traffic Safety 2,734,142 400,000 0 (447,347) (124,100) 2,562,695 (66,300) 2,496,395 226 Opioid Settlement 303,908 0 0 0 0 303,908 303,908
241 Air Quality Mgmt District 1,400,585 280,000 0 (1,280,543) (12,090) 387,952 1,000 388,952 243 Traffic Safety 53,582 45,000 0 (44,190) 0 54,392 54,392 244 Prop 1B 135,736 0 0 0 0 135,736 135,736
245 Measure I Reimb 2010-2040 (6,698,007) 23,152,764 0 (16,451,039) 0 3,718 (3,719) 0 246 Measure I Local 2010-2040 21,038,729 5,524,500 0 (24,835,949) (450,220) 1,277,060 (987,589) 289,471 281 Gas Tax (State) 1,792,401 6,042,980 0 (6,298,676) (440,440) 1,096,265 (194,240) 902,025 282 Solid Waste Mitigation 4,809,311 3,000,000 0 (5,842,844) (320,230) 1,646,237 (301,674) 1,344,563 283 Road Maintenance & Rehab 5,878,181 5,235,830 0 (11,088,106) 0 25,905 25,905 301 Grants 504,926 35,594,885 0 (36,214,671) 0 (114,860) 114,860 0 302 ARPA 2021 35,627,911 (7,200) 0 (37,666,659) 0 (2,045,948) 2,045,948 0 303 TDA/Article 3 (30,810) 276,917 0 (246,107) 0 0 - 0
304 ARPA - County (131,499) 3,125,000 0 (2,993,501) 0 (0) 0 321 Fed Law Enf Block Grant (592) 236,841 0 (29,026) 0 207,224 (2,650) 204,574 322 State COPS AB 3229 805,396 300,000 0 (562,565) 0 542,831 315,700 858,531 Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024

511
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024
Special Revenue Funds:
362 CDBG $ 108,982 $ 7,575,670 $ - $ (6,297,812) $ (91,800) $ 1,295,040 $ (54,382) $ 1,240,658 363 Home Program 819,876 6,391,841 0 (6,190,669) 0 1,021,048 (3,418) 1,017,630 365 Down Pymt Assistance Prgm $11,406 $0 $0 $0 $0 11,406 11,406 385 After School Program 0 5,488,690 0 (5,116,390) (372,300) 0 0 386 ASES ELO-P Grant (2,140,650) 29,731,200 0 (27,218,250) (372,300) 0 0 395 LMD #1 City Wide 1,576,211 $1,005,890 $0 ($1,142,442) ($244,440) 1,195,219 (23,000) 1,172,219 396 LMD #2 Village of Heritage (149,607) 2,666,800 2,556,538 (4,574,889) (499,720) (878) 878 0 397 LMD #3 Empire Center 252,489 68,390 0 (61,300) (12,830) 246,749 (10,460) 236,289 398 LMD #3 Hunter's Ridge 2,310,498 877,710 115,330 (1,171,179) (161,950) 1,970,409 (84,000) 1,886,409 399 LLMD #3 Hunter's Ridge 43,308 38,650 0 (33,280) (7,000) 41,678 41,678 401 CFD #1 Southridge Village 6,243,504 5,505,000 0 (6,595,270) (2,506,300) 2,646,934 (97,551) 2,549,383 403 CFD #6-3A Bellgrove II 406,648 252,360 0 (169,620) (55,650) 433,738 (950) 432,788 404 CFD #6-2 N Morningside 330,201 100,300 0 (76,750) (15,280) 338,471 338,471 405 CFD #6-1 Stratham 587,175 202,710 0 (118,383) (124,270) 547,232 547,232 406 CFD #6 The Landings 2,924,560 363,100 171,440 (559,601) (88,650) 2,810,849 (14,210) 2,796,639 407 CFD #7 Country Club Estates 316,133 123,350 13,350 (155,316) (33,310) 264,207 (14,640) 249,567 408 CFD #8 Presley 739,099 79,800 172,600 (356,202) (57,150) 578,147 (27,900) 550,247 409 CFD #9M Morningside 165,062 179,660 0 (130,085) (123,490) 91,147 91,147 410 CFD #10M Jurupa Industrial 270,498 41,370 0 (34,230) (9,390) 268,248 (3,480) 264,768 412 CFD #12 Sierra Lakes 1,377,185 1,003,980 212,030 (1,333,533) (199,480) 1,060,182 (15,650) 1,044,532 413 CFD #13M Summit Heights 703,433 516,770 102,530 (770,018) (125,690) 427,025 (94,895) 332,130 414 CFD #14M Sycamore Hills 143,926 467,380 0 (283,891) (234,320) 93,095 (15,060) 78,035 415 CFD #15M Silver Ridge 265,172 322,850 0 (136,210) (220,880) 230,932 230,932 416 CFD #16M Ventana Pointe 108,122 47,320 0 (38,320) (36,730) 80,392 80,392 418 CFD #18M Badiola Homes 44,699 7,490 0 (2,840) (7,080) 42,269 42,269 420 CFD #20M 92,790 35,200 0 (30,840) (23,400) 73,750 73,750 421 CFD #21M 226,931 43,640 0 (15,830) (25,630) 229,111 (1,955) 227,156 423 CFD #23M 36,542 8,210 0 (3,520) (13,410) 27,822 27,822 424 CFD#24M 178,312 49,040 0 (16,930) (31,180) 179,242 (240) 179,002 425 CFD #25M 294,932 89,620 0 (41,845) (58,080) 284,627 (2,390) 282,237 427 CFD #27M (4,362) 64,310 0 (46,560) (12,960) 428 428 428 CFD #28M 509,128 158,990 0 (53,250) (112,090) 502,778 (1,735) 501,043 429 CFD #29M 29,997 29,040 0 (18,524) (23,400) 17,113 (410) 16,703

512
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024
Special Revenue Funds:
430 CFD #30M $ 746,815 $ 257,550 $ - $ (115,666) $ (156,360) $ 732,339 $ 732,339 431 CFD #31 Citrus Heights North 685,072 528,650 0 (216,559) (187,300) 809,863 (16,200) 793,663 432 CFD #32M $97,864 $19,580 0 ($3,408) ($17,400) $96,636 96,636 433 CFD #33M Empire Lighting 163,587 45,340 0 (38,790) (6,140) 163,997 (3,120) 160,877 434 CFD #34 Empire Detention Basin 250,486 23,250 0 (11,849) (4,580) 257,307 257,307 435 CFD #35M 1,138,062 575,690 0 (676,355) (166,170) 871,227 (41) 871,186 436 CFD #36M 50,654 24,220 0 (8,810) (18,190) 47,874 47,874 437 CFD #37 Montelago 274,729 95,690 0 (66,130) (45,010) 259,279 (2,400) 256,879 438 CFD #38M 805,497 194,420 0 (72,634) (114,980) 812,303 (3,060) 809,243 439 CFD #39M 46,057 24,480 0 (10,790) (15,310) 44,437 (1,450) 42,987 440 CFD #40M 67,824 11,590 0 (940) (7,530) 70,944 70,944 441 CFD #41M 115,776 16,580 0 (11,980) (7,480) 112,896 (310) 112,586 442 CFD #42M 251,990 48,070 0 (62,050) (4,350) 233,660 (4,160) 229,500 444 CFD #44M 29,200 9,810 0 (5,660) (5,570) 27,780 (340) 27,440 445 CFD #45M 350,569 109,960 0 (65,800) (52,740) 341,989 341,989 446 CFD #46M 293,370 53,290 0 (29,180) (21,900) 295,580 295,580 447 CFD #47M 13,351 12,610 0 (8,394) (5,490) 12,077 (1,000) 11,077 448 CFD #48M 403,969 82,690 0 (46,776) (29,050) 410,833 410,833 449 CFD #49M 32,822 14,030 0 (10,710) (5,650) 30,492 (1,000) 29,492 450 CFD #50M 84,279 39,080 0 (15,520) (27,850) 79,989 79,989 451 CFD #51M 127,838 72,390 0 (47,464) (35,630) 117,134 (770) 116,364 453 CFD #53M 72,232 9,700 0 (4,520) (4,850) 72,562 72,562 454 CFD #54M 62,894 27,460 0 (13,184) (13,060) 64,110 (820) 63,290 455 CFD #55M 52,954 7,830 0 (5,330) (2,930) 52,524 (130) 52,394 456 CFD #56M 115,365 28,650 0 (6,920) (25,270) 111,825 111,825 457 CFD #57M 62,877 16,460 0 (10,440) (5,750) 63,147 63,147 458 CFD #58M 15,648 4,860 0 (530) (3,820) 16,158 16,158 459 CFD #59M 7,906 2,640 0 (530) (40) 9,976 9,976
460 CFD #60M 77,554 13,820 0 (10,040) (5,290) 76,044 76,044 461 CFD #61M 361,806 60,300 0 (21,460) (28,100) 372,546 372,546 462 CFD #62M 41,802 6,140 0 (2,170) (160) 45,612 45,612 463 CFD #63M 522,826 60,240 0 (18,930) (1,590) 562,546 (3,000) 559,546 464 CFD #64M 69,667 5,420 0 0 0 75,087 75,087
465 CFD #65M 184,447 21,880 0 (7,730) (10,270) 188,327 188,327

513
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024
Special Revenue Funds:
467 CFD #67M $ 181,686 $ 46,400 $ - $ (19,550) $ (23,820) $ 184,716 $ 184,716 468 CFD #68M 132,523 27,070 0 (14,560) (12,090) 132,943 132,943 469 CFD #69M 609,686 180,880 0 (71,850) (98,670) 620,046 (2,220) 617,826 470 CFD #70M Avellino 214,130 85,870 0 (44,230) (37,730) 218,040 (5,000) 213,040 471 CFD #71M Sierra Crest 353,541 128,820 0 (115,720) (44,370) 322,271 (6,800) 315,471 472 CFD #72M 30,702 11,810 0 (5,780) (5,910) 30,822 30,822 473 CFD #73M 262,024 72,280 0 (28,580) (36,140) 269,584 (2,040) 267,544 474 CFD #74M 458,452 93,310 0 (34,290) (900) 516,572 516,572 475 CFD #75M 53,524 15,800 0 (7,460) (8,260) 53,604 53,604 476 CFD #76M 80,813 36,880 0 (32,610) (14,730) 70,353 70,353 477 CFD #77M 47,282 14,190 0 (6,720) (6,270) 48,482 48,482 478 CFD #78M 252,107 76,860 0 (16,820) (53,170) 258,977 258,977 479 CFD #79M 152,724 23,650 0 (320) (20) 176,034 176,034 480 CFD #80M 455,435 233,690 0 (99,660) (120,090) 469,375 469,375 481 CFD #81M 112,883 120,100 0 (56,280) (53,920) 122,783 (26,240) 96,543 482 CFD #82M 139,772 29,800 0 0 0 169,572 169,572
483 CFD #83M 172,212 68,170 0 (25,700) (29,650) 185,032 (4,470) 180,562 484 CFD #84M 38,552 21,450 0 (8,130) (9,490) 42,382 42,382 485 CFD #85 THE MEADOWS 789,916 461,110 0 (274,940) (124,380) 851,706 (19,400) 832,306 486 CFD #86 ETIWANDA RIDGE 174,902 70,130 0 (47,310) (31,650) 166,072 166,072 487 CFD #87 El Paseo 209,684 80,910 0 (14,220) (59,090) 217,284 (520) 216,764 488 CFD #88 SIERRA CREST II 233,306 125,040 0 (59,440) (39,260) 259,646 (8,950) 250,696 489 CFD #89 BELROSE 212,155 67,190 0 (19,370) (28,990) 230,985 230,985 490 CFD #90 SUMMIT @ ROSENA PH i 1,191,538 388,250 0 (218,390) (114,190) 1,247,208 (20,100) 1,227,108 491 CFD #91M 25,678 6,690 0 0 (2,160) 30,208 30,208
492 CFD #92M 65,672 18,400 0 (7,400) (5,140) 71,532 (150) 71,382 493 CFD #93M 43,761 12,380 0 (10,800) (4,100) 41,241 41,241 494 CFD #94M 8,270 3,850 0 0 (1,620) 10,500 10,500
495 CFD #95 SUMMIT @ ROSENA PH II 462,549 178,920 0 (180,300) (27,760) 433,409 433,409 496 CFD #96M Tr. 19957 32,707 12,230 0 (5,800) (2,970) 36,167 36,167 497 CFD #97M 20,547 5,720 0 0 (3,520) 22,747 22,747
498 CFD #98M 17,744 6,640 0 0 (2,430) 21,954 21,954

514
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024
Special Revenue Funds:
500 CFD #100M $ 160,459 $ 91,490 $ - $ (25,560) $ (160) $ 226,229 $ (1,050) $ 225,179 501 CFD #101M 23,570 8,900 0 0 (3,250) 29,220 29,220
502 CFD #102M 14,745 5,520 0 0 (1,620) 18,645 18,645
503 CFD #103M Estrada 13,040 4,940 0 0 (1,350) 16,630 16,630 504 CFD #104M 27,061 15,160 0 (5,700) (3,520) 33,001 33,001 505 CFD #105M 84,501 50,800 0 (19,620) (26,260) 89,421 89,421 506 CFD #106M 167,706 101,300 0 (5,920) (42,540) 220,546 (5,560) 214,986 507 CFD #107M 39,260 43,910 0 (6,800) (28,910) 47,460 (460) 47,000 509 CFD #109M 351,337 392,880 0 (144,000) (128,760) 471,457 (53,010) 418,447 510 CFD #510M 0 17,420 0 0 (4,870) 12,550 12,550
511 CFD #111M 0 72,470 0 (7,800) (53,500) 11,170 (2,230) 8,940 512 CFD #112M 0 298,610 0 (136,900) (137,730) 23,980 (23,980) 0 Total Special Revenue Funds $ 137,248,552 $ 155,984,108 $ 3,343,818 $ (216,131,467) $ (10,666,560) $ 69,778,451 $ 115,157 $ 69,893,608 Debt Service Funds:
580 General Debt Service $ (2,069) $ 1,123,100 $ 2,880,930 $ (4,001,030) $ - $ 931 $ 931 Total Debt Service Funds $ (2,069) $ 1,123,100 $ 2,880,930 $ (4,001,030) $ - $ 931 $ - $ 931 Capital Project Funds:
601 Capital Reinvestment $ 20,185,139 $ 5,133,000 $ 4,400,000 $ (26,425,239) $ - $ 3,292,900 $ 1,585,490 $ 4,878,390 602 Capital Improvements 879,057 1,781,566 0 (3,820,081) 0 (1,159,458) 1,206,360 46,902 603 Future Capital Projects 9,249,373 0 0 (344,883) (151,420) 8,753,070 8,753,070 620 San Sevaine Flood Control 1,931,487 804,200 0 (92,910) (8,320) 2,634,457 2,634,457 621 Upper Etiwanda Flood Control 45,916 0 0 0 0 45,916 45,916 622 Storm Drain 20,758,648 3,555,000 0 (6,871,196) (98,460) 17,343,992 (1,767,000) 15,576,992 623 Sewer Expansion 345,455 2,525,000 0 (2,755,000) (19,280) 96,175 96,175 630 Circulation Mitigation 21,801,505 4,796,000 0 (19,088,042) (73,880) 7,435,583 (3,583,223) 3,852,360 631 Fire Assessment 606,385 260,000 0 (423,922) (279,570) 162,893 162,893 632 General Government 12,445,257 430,000 0 (1,137,764) 0 11,737,493 (11,000,000) 737,493 633 Landscape Medians 5,826,877 540,000 0 (6,141,289) (11,720) 213,868 213,868 634 Library Capital Improvement 1,182,631 200,000 0 (99,472) (6,440) 1,276,719 1,276,719 635 Parks Development 20,319,444 1,850,000 0 (7,603,842) (123,970) 14,441,632 (10,086,360) 4,355,272 636 Police Capital Facilities 3,712,826 400,000 0 (612,599) (38,880) 3,461,347 31,928 3,493,275 637 Underground Utilities 292,716 0 0 0 0 292,716 292,716 650 CFD #2 Village of Heritage (62,556) 0 62,556 0 0 0 0

515
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Unaudited
Fund Balance
July 1, 2023
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2024
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2023/2024
Capital Project Funds:
657 CFD #31 Citrus Heights North $2,897,531 0 0 0 0 2,897,531 2,897,531 658 CFD #31 7,491 0 0 0 0 7,491 7,491
659 CFD #70 Avellino 1,197 0 0 0 0 1,197 1,197
660 CFD #71 Sierra Crest 2,686 0 0 0 0 2,686 2,686
661 CFD #80 Bella Strada 7,663 0 0 0 0 7,663 7,663
663 CFD #74B Citrus/Summit 181,950 0 0 0 0 181,950 181,950 664 CFD #86 Etiwanda Ridge 965,640 0 0 (43,923) 0 921,717 921,717 665 CFD #85 The Meadows 5,829 0 0 0 0 5,829 5,829
666 CFD #88 Sierra Crest II 95,353 0 0 (88,694) 0 6,659 6,659 667 CFD #89 Belrose 88,644 0 0 (49,578) 0 39,066 39,066 668 CFD #90 Summit @ Rosena Ph I 11,857,846 0 0 (213,832) 0 11,644,014 11,644,014 669 CFD #95 Summit @ Rosena II 8,344,030 0 0 0 0 8,344,030 (1,600,000) 6,744,030 670 CFD #87 El Paseo 1,789,590 0 0 0 0 1,789,590 (1,000,000) 789,590 671 CFD #106 Mountain View 2,175,834 0 0 0 0 2,175,834 (2,100,000) 75,834 672 CFD #99 The Retreat 4,135,899 0 0 0 0 4,135,899 (800,000) 3,335,899 673 CFD #100 Victoria 0 0 0 0 0 0 4,117,983 4,117,983
Total Capital Project Funds $ 152,091,951 $ 22,274,766 $ 4,462,556 $ (75,812,266) $ (811,940) $ 102,205,067 $ (24,994,822) $ 77,210,245 Enterprise Funds:
701 Sewer Maintenance & Operations $ 7,732,360 $ 28,880,000 $ - $ (27,230,027) $ (2,266,640) $ 7,115,693 $ (118,330) $ 6,997,363 702 Sewer Capital Projects 1,836,622 275,000 0 (49,080) (9,140) 2,053,402 (294,000) 1,759,402 703 Sewer Replacement 9,490,733 1,000,000 0 (8,775,167) (107,170) 1,608,396 (460,936) 1,147,460 710 Water Utility 745,043 0 0 0 0 745,043 745,043
720 Stage Red 500,000 0 0 0 0 500,000 (500,000) 0
Total Enterprise Funds $ 20,304,758 $ 30,155,000 $ - $ (36,054,274) $ (2,382,950) $ 12,022,534 $ (1,373,266) $ 10,649,268 Internal Service Fund:
751 FLEET OPERATIONS $ 15,894,400 $ 8,207,590 $ 2,803,440 $ (12,408,696) $ (142,560) $ 14,354,174 $ (98,387) $ 14,255,787 Total Internal Service Funds $ 15,894,400 $ 8,207,590 $ 2,803,440 $ (12,408,696) $ (142,560) $ 14,354,174 $ (98,387) $ 14,255,787 TOTAL ALL FUNDS $ 347,509,882 $ 231,908,175 $ 31,922,860 $ (377,449,172) $ (14,066,566) $ 219,825,179 $ (39,683,383) $ 180,141,796

516
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues TransfersIn Transfers
Out FB Impact Reason
101 General Fund 5,403,516 1,082,328 51,815 10,265,023 (14,534,396) Revenue Adjustments
10124000 CS Community Services-Admin 6900 Operating Transfers In 51,815 51,815 Xfer left over funds from Funds #110 as OmniTrans project is being defunded 10128000 FN Management Services 5060 Sales Tax 247,828 247,828 Sales Tax adjustment related to cannabis revenue 10140200 PD Field Services-Admin 6450 Miscellaneous Income 2,500 2,500 Increase revenue for metal/gun recycling program Personnel Requests (Recurring)
10110200 CA City Manager's Office Various Personnel Accounts 55,435 (55,435) New Management Analyst II position 10126201 IT IT Operations & Support Various Personnel Accounts 44,719 (44,719) New IT Systems Technician position 10126101 IT IT Systems 7113 Overtime 10,000 (10,000) }
10126201 IT IT Operations & Support 7113 Overtime 5,000 (5,000) } 10126205 IT IT Audio Visual 7111 Part-Time Employees 32,000 (32,000) Increase appropriations for KFON Intern program (2 interns) 10130000 DS Development Svc Admin Various Personnel Accounts 49,131 (49,131) New Management Analyst I position 10132100 BS Inspection Services Various Personnel Accounts 42,331 (42,331) New Building Inspector II position 10132400 BS Code Compliance Various Personnel Accounts 46,615 (46,615) New Senior Code Enforcement Inspector position 10137000 PW&E Engineering Administration Various Personnel Accounts 22,654 (22,654) New Engineering Technician II position 10137119 PW&E Construction Inspection Various Personnel Accounts 43,746 (43,746) New Public Works Inspector position 10137505 PW&E Traffic/Streets Various Personnel Accounts 22,750 (22,750) New Traffic Signal Maintenance Technician II position 10140102 PD Background Unit Various Personnel Accounts 13,815 (13,815) New Part-time Background Investigator position 10140492 PD Dispatch Various Personnel Accounts 81,031 (81,031) New Police Dispatcher II (2 positions) 10140102 PD Background Unit 7111 Part-Time Employees 35,500 (35,500) } 10140102 PD Background Unit 7118 Medicare-P/T 520 (520) } Various Var Various 7017 Cafeteria 330,095 (330,095) Cafeteria plan/health cost increases (six months) Offsetting Adjustments
10128000 FN Management Services Various Revenue Accounts 832,000 832,000 } 10128500 FN Customer Service 8010 Departmental Expense 832,000 (832,000) } 10130000 DS Development Svc Admin 8110 Legal Services 226,110 (226,110) } 10134100 PL Planning 8110 Legal Services (226,110) 226,110 } 10130000 DS Development Svc Admin Various Personnel Accounts 57,660 (57,660) } 10137404 PW&E Land Development Various Personnel Accounts (57,660) 57,660 } New requests (One-Time)
10110200 CA City Manager's Office 8014 Computer Hardwar <$5000 3,000 (3,000) Increase appropriations for Mgmt Analyst II office equipment 10110300 CA City Attorney 8110 Legal Services 1,126,060 (1,126,060) Increase appropriations for BB&K legal fees 10115000 HR HR Administration 8790 Operating Transfer Out 4,687,543 (4,687,543) Xfer to Supplemental Retirement Fund #108 to cover the UAL prefunding as approved in the new Fund Balance Policy
10122000 CC Records and Elections 8130 Other Professional Svcs 815 (815) Increase appropriations for records mgmt storage delivery 10122100 CC Boards and Commissions 8010 Departmental Expense 17,625 (17,625) C/O FY22-23 Q3 budget for main office cubicles and furniture 10122100 CC Boards and Commissions 8130 Other Professional Svcs 5,088 (5,088) Increase appropriations for Council language interpreter svcs 10126000 IT IT Administration 8010 Departmental Expense 30,000 (30,000) Increase appropriations for (3) IT offices furniture purchase 10126000 IT IT Administration 8010 Departmental Expense 6,000 (6,000) Increase appropriations for IT/KFON shirts, mouse pads, etc. 10126000 IT IT Administration 8010 Departmental Expense 30,000 (30,000) Increase appropriations for IT Library conf. room furniture 10126000 IT IT Administration 8010 Departmental Expense 15,000 (15,000) Increase appropriations for Lewis Library, IT breakroom furn. 10126000 IT IT Administration 8018 Conference & Meetings 3,000 (3,000) Increase appropriations for GovIT conference 10126000 IT IT Administration 8060 Training 24,000 (24,000) Increase appropriations for IT staff training (ITIL) / End User Microsoft 365 Training 10126100 IT IT Administration 8014 Computer Hardwar <$5000 3,000 (3,000) Increase appropriations for IT Systems Technician office equipment 10126201 IT IT Operations & Support 8060 Training 10,000 (10,000) Increase appropriations for IT staff training (Drone, Media) 10126000 IT IT Administration 8790 Operating Transfer Out 100,000 (100,000) Xfer to City Technology Fund #102 to cover fiscal year operating expenditures 10128200 FN Accounting 8130 Other Professional Svcs (3,450) 3,450 Decrease appropriations for LRB21 US Bank trustee fee 10128200 FN Accounting 8130 Other Professional Svcs 37,000 (37,000) Increase appropriations for CFD's arbitrage reporting 10128200 FN Accounting 8130 Other Professional Svcs 2,500 (2,500) Increase appropriations for LRB 14 arbitrage reporting 10128300 FN Purchasing 8011 Advertising 8,000 (8,000) Increase appropriations for formal bid newspapaer advertising 10130000 DS Code Compliance 8014 Computer Hardwar <$5000 3,000 (3,000) Increase appropriations for New Management Analyst I equip 10130102 DS DSO Operating Transfers 8790 Operating Transfer Out 304,088 (304,088) Xfer to Village of Heritage Fund #396 to cover operarting expenditures General Fund - Recommended Adjustments
Fiscal Year 2023/2024
Xfer Rutan and Tucker legal fees from Planning to DSO Admin Increase appropriations for new PT Background Investigator Increase appropriations for IT overtime pay for after hours and weekend support Increase revenues and appropriations for HDL Business License compliance and commission
Xfer Management Analyst I position PW&E to DSO Admin

517
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues TransfersIn Transfers
Out FB Impact Reason
General Fund - Recommended Adjustments
Fiscal Year 2023/2024
New requests (One-Time) - Continued
10130102 DS DSO Operating Transfers 8790 Operating Transfer Out 4,687,542 (4,687,542) Xfer to Capital Reinvestment Fund #601 for road improvements as per the new FB Policy 10130103 DS Cannabis Business 8130 Other Professional Svcs 160,000 (160,000) Increase appropriations for Cannabis consultant services 10132100 BS Inspection Services 8014 Computer Hardwar <$5000 3,000 (3,000) Increase appropriations for New Building Inspector II equip 10132400 BS Code Compliance 8329 Other Construction 35,000 (35,000) Increase appropriations for fencing, walls, and other tenant improvements for 16762 Spring St. 10132400 BS Code Compliance 8332 Other Contingency 58,050 (58,050) Appropriate contingency funds for vendor enforcement contract CC approved 10/10/23, File #21-2513
10132400 BS Code Compliance 8790 Operating Transfer Out 81,400 (81,400) Xfer to Fund #751 for New Senior Code Enforce Insp Vehicle 10137119 PW&E Construction Inspection 8790 Operating Transfer Out 48,700 (48,700) Xfer to Fund #751 for New Public Works Inspector Vehicle 10137202 PW&E Parks 8010 Departmental Expense 62,800 (62,800) Increase appropriations Bulik and Veteran's Parks ballfield mix 10137202 PW&E Parks 8010 Departmental Expense 12,310 (12,310) Increase appropriations for VOH Playground slide replacement 10137202 PW&E Parks 8130 Other Professional Svcs 38,000 (38,000) Increase appropriations for Bulik and Veteran's Parks ballfield laser leveling 10137202 PW&E Parks 8130 Other Professional Svcs 23,600 (23,600) Increase appropriations for Heritage Circle and Fontana Parks playground removal and retrofit
10137202 PW&E Parks 8130 Other Professional Svcs 37,500 (37,500) Increase appropriations for PE Trail grading and trenching 10137205 PW&E Pools 8130 Other Professional Svcs 94,800 (94,800) Increase appropriations for Fontana Park pool heater replace 10137205 PW&E Pools 8130 Other Professional Svcs 222,100 (222,100) Increase appropriations for VOH pool maint services 10137205 PW&E Pools 8130 Other Professional Svcs 17,800 (17,800) Increase appropriations for Tudor Park splash pad shade sails 10137205 PW&E Pools 8130 Other Professional Svcs 84,200 (84,200) Increase appropriations for VOH pool new sand filters 10137209 PW&E Landscape Maintenance 8010 Departmental Expense 47,000 (47,000) Increase appropriations to replace stolen backflow devices 10137210 PW&E Technical Services 8010 Departmental Expense 4,680 (4,680) Increase appropriations for replacement welder equipment 10137404 PW&E Land Development 8130 Other Professional Svcs 25,000 (25,000) Increase appropriations for CIP related plan checks 10137404 PW&E Land Development 8130 Other Professional Svcs 161,000 (161,000) Increase appropriations for Land Development consultant and grant support 10137505 PW&E Traffic/Streets 8130 Other Professional Svcs 50,000 (50,000) Increase appropriations for consultant plan review/approval 10137505 PW&E Traffic/Streets 8320 Capital Acquisition 118,430 (118,430) C/O FY22-23 Q3 traffic signal installation 10137505 PW&E Traffic/Streets 8320 Capital Acquisition 141,920 (141,920) Increase appropriations for Slover Ave. signal plan check 10137505 PW&E Traffic/Streets 8790 Operating Transfer Out 180,000 (180,000) Xfer to Fund #751 for Hybrid Bucket Truck New Traffic Signal Maint. Technician II 10140100 PD Administrative Services 8133 Security Services 8,000 (8,000) Increase appropriations for City Council meetings add security 10140200 PD Field Services-Admin 8032 Outsourced Svcs (HW/SW) 9,120 (9,120) Increase appropriations for Accurint Virtual Crime Center Software 10140200 PD Field Services-Admin 8790 Operating Transfer Out 175,750 (175,750) Xfer to Fleet Fund #751 for new animal service truck 10140235 PD Shooting Range 8013 Equip (Non-Comp) <$5000 2,500 (2,500) Increase appropriations for equipment maintance and trainings 10140300 PD Special Operations-Admin 8130 Other Professional Svcs 72,821 (72,821) Increase appropriations for San Bernardino City Animal Shelter 10140492 PD Dispatch 8010 Departmental Expense 250 (250) } 10140492 PD Dispatch 8018 Conference & Meetings 1,500 (1,500) } New requests (Recurring)
10110300 CA City Attorney 8110 Legal Services 773,940 (773,940) Increase appropriations for BB&K legal fees 10115000 HR HR Administration 8130 Other Professional Svcs 50,000 (50,000) Increase appropriations for laserfiche scanning services 10122100 CC Boards and Commissions 8010 Departmental Expense 1,000 (1,000) Increase appropriations for Council certificate frames 10128200 FN Accounting 8130 Other Professional Svcs 6,500 (6,500) Increase appropriations for SB1029 reports for CFDs 10130000 DS Development Svc Admin 8018 Conference & Meetings 2,250 (2,250) Increase appropriations for Deputy City Manager conferences 10132400 BS Code Compliance 8210 Vehicle Maintenance 7,370 (7,370) O&M for New Senior Code Enforcement Inspection Vehicle 10137119 PW&E Construction Inspection 8130 Other Professional Svcs 10,000 (10,000) Increase appropriations for Geotechnical quality assurance test 10137119 PW&E Construction Inspection 8210 Vehicle Maintenance 8,270 (8,270) O&M for New Public Works Inspector Vehicle 10137203 PW&E Weed Abatement 8130 Other Professional Svcs 10,150 (10,150) Increase appropriations for weed abatement from GF 10137203 PW&E Weed Abatement 8130 Other Professional Svcs 1,000 (1,000) Increase appropriations for weed abatement new APN# 0190153100000 10137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 7,750 (7,750) Increase appropriations for Slover Ave. landscape maintenance 10137505 PW&E Traffic/Streets 8210 Vehicle Maintenance 4,135 (4,135) O&M (50%) Hybrid Bucket Truck for New Traffic Signal Maint. Tech. II position 10140200 PD Field Services-Admin 8210 Vehicle Maintenance 7,570 (7,570) O&M for new animal service truck 10140200 PD Field Services-Admin 8210 Vehicle Maintenance 10,400 (10,400) O&M for (4) new enduro Dual Sport Motorcycles 10140231 PD Patrol Units 8210 Vehicle Maintenance 18,820 (18,820) O&M for new PD utility vehicle 10140492 PD Dispatch 8010 Departmental Expense 5,000 (5,000) Increase appropriations for lateral dispatcher recruitment incentive Increase appropriations for (2) New Dispatcher positions equipment and training

518
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
102 City Technology 563,309 - 100,000 - (463,309)
10226101 IT Information Systems 6900 Operating Transfers in 100,000 100,000 Xfer from GF to cover operating expenditures 10226101 IT Information Systems Various Operating Accounts 69,137 (69,137) Increase appropriations for software annual maint & support, licenses, and subscriptions
10226101 IT Information Systems 8130 Other Professional Svcs 51,180 (51,180) Increase appropriations for 311-Accela IVR improvements Contract Services
10226101 IT Information Systems 8130 Other Professional Svcs 50,000 (50,000) Increase appropriations for Accela Improvements Contract Services 10226201 IT Enterprise Systems 8053 Cloud/Hosted 411,000 (411,000) Increase appropriations to cover shortfall with Enterprise agreement due to a vendor change
10226201 IT Enterprise Systems 8130 Other Professional Svcs 10,600 (10,600) Increase appropriations for larger than expected annual increase for renewal
10226201 IT Enterprise Systems 8130 Other Professional Svcs 30,000 (30,000) Increase appropriations for Temporary staff services for support 10226299 IT Oper & Sup Project 8015 Computer Softwar <$5000 (58,608) 58,608 Q1 adjustment to account for carryover balance in FY 22/23 or prior 103 Facility Maintenance 175,730 129,520 - - (46,210)
10326202 IT Enterprise Systems 8035 Software Maint 5,500 (5,500) Increase appropriations for co-terming of licenses that were added to the subscription
10337317 PW&E Facilities Maintenance 8010 Departmental Expense 6,600 (6,600) Increase appropriations for Council Chambers metal detectors 10337317 PW&E Facilities Maintenance 8010 Departmental Expense 32,000 (32,000) Increase appropriations for Jesse Turning Flooring 10337317 PW&E Facilities Maintenance 6835 Contribution From FFD 129,520 129,520 } 10337317 PW&E Facilities Maintenance 8030 Equipment Maintenance 129,520 (129,520) } 10337317 PW&E Facilities Maintenance 8130 Other Professional Svcs 2,110 (2,110) C/O FY22-23 PO Budget for Temp Svcs. 105 KFON 208,000 - - - (208,000)
10526205 IT A/V Productions (KFON) Various Operating Accounts 208,000 (208,000) Increase appropriations for KFON upgrades not budgeted with the FY23/24 budget adoption
106 Self-Insurance 5,497,700 - - - (5,497,700)
10615001 HR Workers' Compensation Various Operating Accounts 389,700 (389,700) Increase appropriations for worker's comp settlements, legal svcs, and pending settlements
10615200 HR Risk Liability 8026 Settlement Claim 4,550,000 (4,550,000) Increase appropriations for settlement claims 10615200 HR Risk Liability 8110 Legal Services 558,000 (558,000) Increase appropriations for legal services 108 Supplemental Retirement 4,687,543 - 4,687,543 - -
10815103 HR Supplemental Retirement 6900 Operating Transfer In 4,687,543 4,687,543 } 10815103 HR Supplemental Retirement 7015 PERS 4,687,543 (4,687,543) } 110 GF Operating Projects 100,435 150,400 - 51,815 (1,850) 02420001-110-A CS OmniTrans - FCSC Transportation 8790 Operating Transfer Out 51,815 (51,815) 02420001-110-A CS OmniTrans - FCSC Transportation Various Operating Accounts (51,815) 51,815 04010004-110-A PD Enterprise Fleet Management Various Revenue Accounts 150,400 150,400 04010004-110-A PD Enterprise Fleet Management Various Operating Accounts 150,400 (150,400) 0402000X-110-A PD 2020 COPS Grant - Officer #1 8220 Risk Liability 1,850 (1,850) Move project budget from Fund #321 due to grant funding max out 115 Lease-Fire - 211,746 - 7,300,000 (7,088,254)
11528100 FN Lease-Fire 6835 Contribution From FFD 211,746 211,746 Increase revenues for Fire Station #81 lease aggreement CC approved 1/23/24, File #21-2712
11528100 FN Lease-Fire 8790 Operating Transfer Out 7,300,000 (7,300,000) Xfer to Fund #601 for Co-op Workspace Improvements 125 Storm Water Compliance 26,742 - - - (26,742)
12537401 PW&E Plan Check Engineering Various Personnel Accounts 1,742 (1,742) PC #37139 Reclass from Equip Operator I to Equip Operator II 12537401 PW&E Plan Check Engineering 8130 Other Professional Svcs 25,000 (25,000) Increase appropriations for WQMP plan checks Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
Contribution from Fund #210 for solar termination CC approved 12/12/23, File #21-2680
Defund OmniTrans FCSC Transportation grant funding
Appropriating for actual revenue and expenditures posted for GASBI 87 and vehicle disposition
Xfer from General Fund #101 to cover the UAL prefunding as per the new Fund Balance Policy

519
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
223 Federal Asset Seizure 120,750 - - - (120,750)
22340368 PD NARC - Federal Seizure 8010 Departmental Expense 70,000 (70,000) Increase appropriations for intelligence gathering services 22340373 PD Federal Seizures Various Operating Accounts 50,750 (50,750) Increase appropriations for web based lic plate reader CC approved 2/13/24, File #21-2746
225 PD Traffic Safety 66,300 - - - (66,300)
22540222 PD Traffic 8319 Vehicles 66,300 (66,300) (4) New Enduro Dual Sport Motorcycles 241 Air Quality Mgmt Dist (1,000) - - - 1,000
24120199 AS Econ Development Project 8010 Departmental Expense (500) 500 } 24120199 AS Econ Development Project 8028 City Programs (500) 500 } 245 Measure I 2010-2040 Reimb 1,361,719 1,358,000 - - (3,719) 24537699 PW&E Capital Projects 8320 Capital Acquisition 3,719 (3,719) Q1 adjustment to account for carryover balance in FY 22/23 or prior. 37603333-245-A PW&E Foothill: Hemlock-Almeria Arterial 5348 Measure I 2010-2040 1,358,000 1,358,000 } 37603333-245-A PW&E Foothill: Hemlock-Almeria Arterial 8310 Land 1,358,000 (1,358,000) } 246 Measure I 2010-2040 Local 987,589 - - - (987,589)
24637510 PW&E Street Striping Related 8130 Other Professional Svcs 23,900 (23,900) Increase appropriations for annual traffic conflict monitor testing 24637510 PW&E Street Striping Related 8130 Other Professional Svcs 30,000 (30,000) Increase appropriations for light/signal maintenance. Cost shared with Ontario, CA.
24637514 PW&E System Traffic Controller Cabs 8320 Capital Acquisition 51,000 (51,000) Increase appropriations for signal cabinet stock 24637514 PW&E System Traffic Controller Cabs 8320 Capital Acquisition 24,000 (24,000) Increase appropriations for traffic signal pole stock 24637515 PW&E System Traffic Controller Equi 8013 Equip (Non-Comp) <$5000 45,000 (45,000) Increase appropriations for signal maintenance materials 24637518 PW&E MI Traffic Signal Maint 8030 Equipment Maintenance 12,600 (12,600) Increase appropriations for intersection emergency vehicle preemption repair
24637518 PW&E MI Traffic Signal Maint 8030 Equipment Maintenance 20,000 (20,000) Increase appropriations for signal pole replacement 24637518 PW&E MI Traffic Signal Maint 8030 Equipment Maintenance 24,000 (24,000) Increase appropriations for temporary intersection detection equipment for CIP projects
24637518 PW&E MI Traffic Signal Maint 8030 Equipment Maintenance 100,000 (100,000) Increase appropriations for video detection equipment replacement 24637518 PW&E MI Traffic Signal Maint 8210 Vehicle Maintenance 4,135 (4,135) O&M (50%) Hybrid Bucket Truck for New Traffic Signal Maint. Tech. II 24637518 PW&E MI Traffic Signal Maint Various Personnel Accounts 22,750 (22,750) New Traffic Signal Maintenance Technician II 24637699 PW&E Capital Projects 8399 Project Personnel Offset (18,940) 18,940 Q1 adjustment to account for carryover balance in FY 22/23 or prior 37603367-246-C PW&E Alder Middle School S/W Various Personnel Accounts (10,050) 10,050 } 37603367-246-C PW&E Alder Middle School S/W 8329 Other Construction 10,050 (10,050) } 37600048-246-A PW&E Randall Ave Improvements 8329 Other Construction 210,000 (210,000) Increase appropriations for Randall Ave Street Improvements 37600068-246-A PW&E Catawba Ave SRTS TDA 2023 Various Operating Accounts 396,348 (396,348) Increase appropriations for Catawba Ave SRTS (TDA 2023) project CC approved 12/12/23, File #21-2626
376000XX-246-A PW&E Citywide Bus Pads TDA Various Operating Accounts 42,796 (42,796) Increase appropriations for Citywide bus pad (TDA 2003) CC approved 12/12/23, File #21-2626
281 Gas Tax (State) 194,240 - - - (194,240)
28130101 DS DS Adm-Technology 7111 Part-Time Employees (10,000) 10,000 Eliminate Part-time GIS Intern II position 28137104 PW&E Street Maintenance 8130 Other Professional Svcs 4,240 (4,240) C/O FY22-23 PO Budget for Temp Svcs. 28137104 PW&E Street Maintenance 8130 Other Professional Svcs 200,000 (200,000) Increase appropriations for asphalt repairs Lytle Creed Rd. 282 Solid Waste Mitigation 301,674 - - - (301,674)
28230101 DS DS Adm-Technology 7111 Part-Time Employees (10,000) 10,000 Eliminate Part-time GIS Intern II position 28230101 DS DS Adm-Technology 7111 Part-Time Employees (10,000) 10,000 Eliminate Part-time Office Assistant position 28230101 DS DS Adm-Technology Various Personnel Accounts 18,494 (18,494) New Environmental Control Technician position 28237101 PW&E Storm Drain Maintenance 8130 Other Professional Svcs 300,000 (300,000) Increase appropriations for storm drain pipe repairs 28237107 PW&E Roadside Maintenance 8130 Other Professional Svcs 3,180 (3,180) C/O FY22-23 PO Budget for Temp Svcs.

Foothill Blvd btwn Hemlock Ave and Almeria Ave Right of Way Purchase Q1 adjustment to account for carryover balance in FY 22/23 or prior PC #37031 Downgrade from Assistant Eng to Engineering Tech II

520
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
301 Grants 4,441,803 4,556,663 - - 114,860
02420001-301-A CS OmniTrans - FCSC Transportation 5389 Misc Recreation Grant (123,149) (123,149) } 02420001-301-A CS OmniTrans - FCSC Transportation Various Personnel Accounts (50,804) 50,804 } 02420001-301-A CS OmniTrans - FCSC Transportation 8316 Computer Software >$5000 (3,503) 3,503 } 02420001-301-A CS OmniTrans - FCSC Transportation 8319 Vehicles (68,842) 68,842 } 02420001-301-B CS OmniTrans - FCSC Transportation 5389 Misc Recreation Grant (147,743) (147,743) } 02420001-301-B CS OmniTrans - FCSC Transportation Various Personnel Accounts (101,643) 101,643 } 02420001-301-B CS OmniTrans - FCSC Transportation 8210 Vehicle Maintenance (38,000) 38,000 } 02420001-301-B CS OmniTrans - FCSC Transportation 8316 Computer Software >$5000 (8,100) 8,100 } 30137221 PW&E Dwnt Furn-Reyes Funding 5367 State Grant 100,000 100,000 } 30137221 PW&E Dwnt Furn-Reyes Funding 8010 Departmental Expense 100,000 (100,000) } 30137299 PW&E Parks & Landscape Project 8313 Structures (114,720) 114,720 Correct FY23/24 Q1 Project Carryover amounts 37600009-301-A PW&E 9/11 Monument 5367 State Grant 1,750,000 1,750,000 } 37600009-301-A PW&E 9/11 Monument 8330 Construction Contracts 1,750,000 (1,750,000) } 37600060-301-A PW&E Public Arts Building 5367 State Grant 600,000 600,000 } 37600060-301-A PW&E Public Arts Building Various Operating Accounts 600,000 (600,000) } 37600072-301-A PW&E PE Trail Improvements 5311 Federal Grant Funds 750,000 750,000 } 37600072-301-A PW&E PE Trail Improvements Various Operating Accounts 750,000 (750,000) } 37600073-301-A PW&E Downtown Renderings 5367 State Grant 100,000 100,000 } 37600073-301-A PW&E Downtown Renderings 8113 Design/Architect Service 100,000 (100,000) } 37600074-301-A PW&E Honor Roll Monument 5367 State Grant 100,000 100,000 } 37600074-301-A PW&E Honor Roll Monument Various Operating Accounts 100,000 (100,000) } 37600075-301-A PW&E Downtown Art Wk & Cabinet Wraps 5367 State Grant 350,000 350,000 } 37600075-301-A PW&E Downtown Art Wk & Cabinet Wraps Various Operating Accounts 350,000 (350,000) } 37603345-301-A PW&E San Sevaine PH I 5311 Federal Grant Funds 1,000,000 1,000,000 } 37603345-301-A PW&E San Sevaine PH I 8330 Construction Contracts 1,000,000 (1,000,000) } 37603345-301-C PW&E San Sevaine PH I 5390 Misc Grant Reimb (5,700) (5,700) } 37603345-301-C PW&E San Sevaine PH I 8329 Other Construction (5,700) 5,700 } 40200006-301-A PD JAG 2023 Grant 5311 Federal Grant Funds 55,291 55,291 } 40200006-301-A PD JAG 2023 Grant 8013 Equip (Non-Comp) <$5000 55,291 (55,291) } 40300006-301-A PD 2020 Homeland Security Grant 8013 Equip (Non-Comp) <$5000 (140) 140 Project close out 2020 HGSP return to fund balance 40300009-301-A PD HSGP 2022 Grant 5349 Homeland Security Grant 37,919 37,919 } 40300009-301-A PD HSGP 2022 Grant 8013 Equip (Non-Comp) <$5000 37,919 (37,919) } 04032039-301-D PD OTS Grant 5325 Police OTS Reimb (9,955) (9,955) } 04032039-301-D PD OTS Grant 7113 Overtime (6,411) 6,411 } 04032039-301-D PD OTS Grant 8013 Equip (Non-Comp) <$5000 (2,964) 2,964 } 04032039-301-D PD OTS Grant 8018 Conference & Meetings (580) 580 } 302 ARPA - City (2,045,948) - - - 2,045,948
2610102X-302-A IT Various 8130 Other Professional Svcs (1,779,564) 1,779,564 Decrease appropriations to correct project budget amounts 30236000 PW&E Storm Drain Admin-Eng 8130 Other Professional Svcs (266,384) 266,384 Corrections to FY23/24 Q1 Project Carryover amounts 303 TDA/Article 3 507,871 507,871 - - -
37600068-303-A PW&E Catawba Ave SRTS TDA 2023 5352 State TDA 396,348 396,348 } 37600068-303-A PW&E Catawba Ave SRTS TDA 2023 Various Operating Accounts 396,348 (396,348) } 37600069-303-A PW&E Citywide Bus Pads TDA 5352 State TDA 59,023 59,023 } 37600069-303-A PW&E Citywide Bus Pads TDA Various Operating Accounts 59,023 (59,023) } 37600070-303-A PW&E Citywide RRFB (TDA) 5352 State TDA 52,500 52,500 } 37600070-303-A PW&E Citywide RRFB (TDA) Various Operating Accounts 52,500 (52,500) } Catawba Ave SRTS (TDA 2023) project CC approved 12/12/23, File #21- 2626
Citywide bus pad (TDA 2003) CC approved 12/12/23, File #21-2626 Citywide RRFBs (TDA 2023) CC approved 12/12/23, File #21-2626 Project Close out for 2023 OTS Grant
Downtown Art Works and Traffic Cabinet Wraps Admin Costs in Design 9/11 Memorandum Monument
Public Arts Building admon costs and design
PE Trail improvement project CC approved 11/14/23, File #21-2581 Downtown Rendering Architectual Design Services
Honor Roll Monument Admin Costs in Design
Increase revenues and appropriate expenditures for the purchase of waste containers for the downtown area
San Sevaine Trail project CC approved 02/13/24, File #21-2669 Decrease Q1 SCAG Grant CC approved , File #21-2402
JAG Grant CC approved 1/23/24, File #21-2733
2022 HGSP Grant CC approved 1/23/24, File #21-2729
Defund OmniTrans - FCSC Transportation grant funding

521
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
321 Fed Law Enf Block Grant 2,650 - - - (2,650)
0402000X-321-A PD 2020 COPS Grant - Officer #1 8220 Risk Liability (1,850) 1,850 Move to Fund #110 due to grant funding max out 04020006-321-A PD 2020 COPS Grant - Officer #4 Various Personnel Accounts 4,500 (4,500) Increase appropriations to match reimbursement claims and complete project
322 State COPS AB 3229 - 315,700 - - 315,700
32240237 PD State COPS AB 3229 5324 State COPS AB3229 315,700 315,700 Increase revenues ELEAS FY 23-24 state report 362 CDBG (297,032) (351,414) - - (54,382)
30200002-362-B DS CDBG Acq/Rehab/Rental 5328 CDBG Grant Reimbursement (30,501) (30,501) } 30200002-362-B DS CDBG Acq/Rehab/Rental Various Operating Accounts (30,501) 30,501 } 30200002-362-C DS CDBG Acq/Rehab/Rental 5328 CDBG Grant Reimbursement (56,825) (56,825) } 30200002-362-C DS CDBG Acq/Rehab/Rental 8119 Construction-Non-Capital (2,443) 2,443 } 30200002-362-D DS CDBG Acq/Rehab/Rental 5328 CDBG Grant Reimbursement 249,848 249,848 } 30200002-362-D DS CDBG Acq/Rehab/Rental 8119 Construction-Non-Capital 249,848 (249,848) } 30200002-362-E DS CDBG Acq/Rehab/Rental 5328 CDBG Grant Reimbursement (12) (12) } 30200002-362-E DS CDBG Acq/Rehab/Rental 8310 Land (12) 12 } 30200003-362-A DS CDBG Project TBD 5328 CDBG Grant Reimbursement (512,804) (512,804) } 30200003-362-A DS CDBG Project TBD 8329 Other Construction (512,804) 512,804 } 30200015-362-A DS ESG-CV2 5328 CDBG Grant Reimbursement (1,120) (1,120) } 30200015-362-A DS ESG-CV2 7012 Annual Leave Cash Out (1,120) 1,120 } 363 HOME 3,418 - - - (3,418)
30200006-363-A DS Home Project TBD 5338 Program Income 1,741 1,741 } 30200006-363-A DS Home Project TBD 8329 Other Construction 3,418 (3,418) } 30200017-363-A DS Home Program 5338 Program Income (1,741) (1,741) Move revenues to Home Project TBD 395 LMD #1 City Wide 23,000 - - - (23,000)
39537250 PW&E LMD #1 8130 Other Professional Svcs 22,400 (22,400) Increase appropriations for Northgate Community monument signage 39537254 PW&E Annexation No. 4 8130 Other Professional Svcs 600 (600) Increase appropriations for landscape maintenance 396 LMD #2 Vlg of Heritage 303,210 - 304,088 - 878
39637205 PW&E Pools 8130 Other Professional Svcs 71,100 (71,100) Increase appropriations for Heritage pool maintanance 39637209 PW&E Landscape Maintenance 6900 Operating Transfers in 304,088 304,088 Xfer from GF to cover operating expenditures 39637209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,110 (2,110) C/O FY22-23 PO Budget for Temp Svcs. 39637209 PW&E Landscape Maintenance 8130 Other Professional Svcs 165,000 (165,000) Increase appropriations for Baseline Median Turf Replacement 39637209 PW&E Landscape Maintenance 8329 Other Construction 65,000 (65,000) Increase appropriations for reclaimed water meter retrofit 397 LMD #3-1 Empire Center 10,460 - - - (10,460)
39737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,060 (1,060) C/O FY22-23 PO Budget for Temp Svcs. 39737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 9,400 (9,400) Increase appropriations for landscape maintenance 398 LMD #3 Hunter's Ridge 84,000 - - - (84,000)
39837202 PW&E Parks 8130 Other Professional Svcs 84,000 (84,000) Increase appropriations for San Sevaine Park exercise equipment & installation
401 CFD #1 Southridge Village 97,551 - - - (97,551)
40137202 PW&E Parks Various Personnel Accounts 11,621 (11,621) New Administrative Analyst II position 40137202 PW&E Parks Various Personnel Accounts (11,580) 11,580 PC# 37135 Eliminate Admin Tech position 40137202 PW&E Parks 8010 Departmental Expense 9,300 (9,300) Increase appropriations for Southridge Park shade structure 40137202 PW&E Parks 8010 Departmental Expense 15,000 (15,000) Increase appropriations for Village Park ballfield scoreboard 40137205 PW&E Pools 8130 Other Professional Svcs 71,100 (71,100) Increase appropriations for Don Day pool maintanance 40137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,110 (2,110) C/O FY22-23 PO Budget for Temp Svcs.

Increase to match HUD Grant allocation
Project close out CDBG - Acq/Rehab/Rental 20/21
Moving ineligible Cash Out Exp Budget to Fund #297
Decrease to match HUD Grant allocation
Decrease to match HUD Grant allocation
Decrease to match HUD Grant allocation
Increase to match HUD Grant allocation

522
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
403 CFD #6-3A Bellgrove II 950 - - - (950)
40337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 950 (950) Increase appropriations for landscape maintenance 406 CFD #6 The Landings 14,210 - - - (14,210)
40637202 PW&E Parks 8010 Departmental Expense 5,100 (5,100) Increase appropriations for Kohler Park playground replacement slide and deck
40637209 PW&E Landscape Maintenance 8130 Other Professional Svcs 9,110 (9,110) Increase appropriations for landscape maintenance 407 CFD #7 Country Club Est 14,640 - - - (14,640)
40737202 PW&E Parks 8130 Other Professional Svcs 2,400 (2,400) Increase appropriations for landscape maintenance 40737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 12,240 (12,240) Increase appropriations for landscape maintenance 408 CFD #8 Presley 27,900 - - - (27,900)
40837209 PW&E Landscape Maintenance 8130 Other Professional Svcs 27,900 (27,900) Increase appropriations for Landings Community monument signage 410 CFD #10M Jurupa Ind 3,480 - - - (3,480)
41037209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,480 (3,480) Increase appropriations for landscape maintenance 412 CFD #12 Sierra Lakes 15,650 - - - (15,650)
41237209 PW&E Landscape Maintenance 8130 Other Professional Svcs 15,650 (15,650) Increase appropriations for landscape maintenance 413 CFD #13M Summit Heights 94,895 - - - (94,895)
41337204 PW&E Trees 8130 Other Professional Svcs 50,000 (50,000) Increase appropriations for Lytle Creek Road tree removal (59 trees) 41337209 PW&E Landscape Maintenance Various Personnel Accounts 8,095 (8,095) New Administrative Clerk II position 41337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 30,000 (30,000) Increase appropriations for landscape maintenance 41337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 6,800 (6,800) Increase appropriations for Summit Heights Community monument signage 414 CFD #14M Sycamore Hills 15,060 - - - (15,060)
41437209 PW&E Landscape Maintenance 8130 Other Professional Svcs 15,060 (15,060) Increase appropriations for landscape maintenance 421 CFD #21M 1,955 - - - (1,955)
42137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,955 (1,955) Increase appropriations for landscape maintenance 424 CFD #24M 240 - - - (240)
42437209 PW&E Landscape Maintenance 8130 Other Professional Svcs 240 (240) Increase appropriations for landscape maintenance 425 CFD #25M 2,390 - - - (2,390)
42537209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,390 (2,390) Increase appropriations for landscape maintenance 428 CFD #28M 1,735 - - - (1,735)
42837209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,735 (1,735) Increase appropriations for landscape maintenance 429 CFD #29M 410 - - - (410)
42937209 PW&E Landscape Maintenance 8130 Other Professional Svcs 410 (410) Increase appropriations for landscape maintenance 431 CFD #31 Citrus Heights No 16,200 - - - (16,200)
43137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 16,200 (16,200) Increase appropriations for landscape maintenance 433 CFD #33M Empire Lighting 3,120 - - - (3,120)
43337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,120 (3,120) Increase appropriations for landscape maintenance

523
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
435 CFD #35M 41 - - - (41)
43537202 PW&E Parks Various Personnel Accounts 11,621 (11,621) New Administrative Analyst II position 43537202 PW&E Parks Various Personnel Accounts (11,580) 11,580 PC# 37135 Eliminate Admin Tech position 437 CFD #37 Montelago 2,400 - - - (2,400)
43737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,400 (2,400) Increase appropriations for landscape maintenance 438 CFD #38M 3,060 - - - (3,060)
43837209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,060 (3,060) Increase appropriations for landscape maintenance 439 CFD #39M 1,450 - - - (1,450)
43937209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,450 (1,450) Increase appropriations for landscape maintenance 441 CFD #41M 310 - - - (310)
44137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 310 (310) Increase appropriations for landscape maintenance 442 CFD #42M 4,160 - - - (4,160)
44237209 PW&E Landscape Maintenance 8130 Other Professional Svcs 4,160 (4,160) Increase appropriations for landscape maintenance 444 CFD #44M 340 - - - (340)
44437209 PW&E Landscape Maintenance 8130 Other Professional Svcs 340 (340) Increase appropriations for landscape maintenance 447 CFD #47M 1,000 - - - (1,000)
44737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,000 (1,000) Increase appropriations for landscape maintenance 449 CFD #49M 1,000 - - - (1,000)
44937209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,000 (1,000) Increase appropriations for landscape maintenance 451 CFD #51M 770 - - - (770)
45137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 770 (770) Increase appropriations for landscape maintenance 454 CFD #54M 820 - - - (820)
45437209 PW&E Landscape Maintenance 8130 Other Professional Svcs 820 (820) Increase appropriations for landscape maintenance 455 CFD #55M 130 - - - (130)
45537209 PW&E Landscape Maintenance 8130 Other Professional Svcs 130 (130) Increase appropriations for landscape maintenance 463 CFD #63M 3,000 - - - (3,000)
46337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,000 (3,000) Increase appropriations for landscape maintenance 469 CFD #69M 2,220 - - - (2,220)
46937202 PW&E Parks 8130 Other Professional Svcs 140 (140) Increase appropriations for landscape maintenance 46937209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,080 (2,080) Increase appropriations for landscape maintenance 470 CFD #70 Avellino 5,000 - - - (5,000)
47037209 PW&E Landscape Maintenance 8130 Other Professional Svcs 5,000 (5,000) Increase appropriations for landscape maintenance 471 CFD #71 Sierra Crest 6,800 - - - (6,800)
47137202 PW&E Parks 8010 Departmental Expense 2,800 (2,800) Increase appropriations for Sierra Crest Park playground parts 47137202 PW&E Parks 8130 Other Professional Svcs 4,000 (4,000) Increase appropriations for landscape maintenance 473 CFD #73M 2,040 - - - (2,040)
47337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,040 (2,040) Increase appropriations for landscape maintenance

524
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
481 CFD #81M 26,240 - - - (26,240)
48137202 PW&E Parks 8010 Departmental Expense 2,200 (2,200) Increase appropriations for Gabriella Park playground equipment 48137202 PW&E Parks 8130 Other Professional Svcs 17,300 (17,300) Increase appropriations for Gabriella Park shade sails replacement 48137202 PW&E Parks 8130 Other Professional Svcs 3,040 (3,040) Increase appropriations for landscape maintenance 48137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,700 (3,700) Increase appropriations for landscape maintenance 483 CFD #83M 4,470 - - - (4,470)
48337209 PW&E Landscape Maintenance 8130 Other Professional Svcs 4,470 (4,470) Increase appropriations for landscape maintenance 485 CFD #85 The Meadows 19,400 - - - (19,400)
48537202 PW&E Parks 8130 Other Professional Svcs 4,300 (4,300) Increase appropriations for landscape maintenance 48537209 PW&E Landscape Maintenance 8130 Other Professional Svcs 15,100 (15,100) Increase appropriations for landscape maintenance 487 CFD #87 El Paseo 520 - - - (520)
48737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 520 (520) Increase appropriations for landscape maintenance -
488 CFD #88 Sierra Crest II 8,950 - - - (8,950)
48837202 PW&E Parks 8130 Other Professional Svcs 5,750 (5,750) Increase appropriations for landscape maintenance 48837209 PW&E Landscape Maintenance 8130 Other Professional Svcs 3,200 (3,200) Increase appropriations for landscape maintenance 490 CFD #90 Summit at Rosena 20,100 - - - (20,100)
49037202 PW&E Parks 8130 Other Professional Svcs 20,100 (20,100) Increase appropriations for landscape maintenance 492 CFD #92M 150 - - - (150)
49237209 PW&E Landscape Maintenance 8130 Other Professional Svcs 150 (150) Increase appropriations for landscape maintenance 500 CFD #100M Tr 2023 1,050 - - - (1,050)
50037209 PW&E Landscape Maintenance 8130 Other Professional Svcs 1,050 (1,050) Increase appropriations for landscape maintenance 506 CFD #106 Mountainview 5,560 - - - (5,560)
50637209 PW&E Landscape Maintenance 8130 Other Professional Svcs 5,560 (5,560) Increase appropriations for landscape maintenance 507 CFD#107 HIGHLAND 460 - - - (460)
50737209 PW&E Landscape Maintenance 8130 Other Professional Svcs 460 (460) Increase appropriations for landscape maintenance 509 CFD#109 Narra Hills 53,010 - - - (53,010)
50937209 PW&E Landscape Maintenance 8130 Other Professional Svcs 53,010 (53,010) Increase appropriations for landscape maintenance 511 CFD #111 Monterado 2,230 - - - (2,230)
51137209 PW&E Landscape Maintenance 8130 Other Professional Svcs 2,230 (2,230) Increase appropriations for landscape maintenance 512 CFD #512 The Gardens Phase I 65,950 41,970 - - (23,980) 51237209 PW&E CFD #512 The Gardens 6210 Assessment/Special Tax 41,970 41,970 Increase revenues for the fiscal year 51237209 PW&E CFD #512 The Gardens 8130 Other Professional Svcs 65,950 (65,950) Increase appropriations for landscape maintenance

525
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
601 Capital Reinvestment 15,802,052 - 17,387,542 - 1,585,490 60110500 CA Econ Development Project 8030 Equipment Maintenance 127,710 (127,710) Increase appropriations for Auto Center sign refurbishment 60130000 DS Special Projects 6900 Operating Transfers In 7,300,000 7,300,000 Xfer from Fund #115 for DSO property purchases 60130000 DS Special Projects 6900 Operating Transfers In 5,400,000 5,400,000 Xfer from Fund #669,671,672,673 for Downtown West Parking Structure 60137104 PW&E Street Maintenance 6900 Operating Transfers In 4,687,542 4,687,542 Xfer from GF for road improvements as per the new FB Policy 60137699 PW&E Capital Projects 8113 Design/Architect Service 24,342 (24,342) Corrections to FY23/24 Q1 Project Carryover amounts 37300002-601-A PW&E Center Stage Theater Renovation 8130 Other Professional Svcs 350,000 (350,000) Increase appropriations for renovation of Stage Red Theater as bid results came back higher than expected
37600012-601-A PW&E City Hall Renovation Phase 2 8329 Other Construction 800,000 (800,000) Increase appropriations for City Hall Renovation Phase II 37600020-601-A PW&E Jurupa Ave. Landscape Median 8329 Other Construction (450,000) 450,000 Defund Jurupa Ave Landscape Median Project 37600048-601-A PW&E Randall Ave Improvements 8329 Other Construction 450,000 (450,000) Increase appropriations for Randall Ave Street Improvements 37600067-601-A PW&E Downtown West Parking Structure Various Operating Accounts 7,000,000 (7,000,000) Increase appropriations for Downtown West Parking Structure 37600076-601-A PW&E Co-Op Workspace Improvements Various Operating Accounts 7,500,000 (7,500,000) Increase appropriations for Co-op Workspace Improvements 602 Capital Improvement 8,756,000 576,000 9,386,360 - 1,206,360 60230000 DS Special Projects 6900 Operating Transfers In 8,386,360 8,386,360 Xfer from Fund #635 to cover the South Fontana Sports Park expenditures 60230000 DS Special Projects 6900 Operating Transfers In 1,000,000 1,000,000 Xfer from Fund #671 for Downtown Revitalization property purchases 60230000 DS Special Projects 8130 Other Professional Svcs 530,000 (530,000) Increase appropriations for Revolving Loan Fund (RLF) Business Initiative 60230000 DS Special Projects 8310 Land 7,650,000 (7,650,000) Increase appropriations for Downtown Revitalization property purchases 37603345-602-A PW&E San Sevaine PH I 6480 Miscellaneous Reimb 576,000 576,000 } 37603345-602-A PW&E San Sevaine PH I 8330 Construction Contracts 576,000 (576,000) } 622 Storm Drain 1,767,000 - - - (1,767,000)
62237000 PW&E Storm Drain Admin-Eng 7111 Part-Time Employees (12,000) 12,000 Eliminate Part-time Intern II position 37600063-622-A PW&E Courtplace Various Personnel Accounts 5,196 (5,196) } 37600063-622-A PW&E Courtplace 8329 Other Construction (5,196) 5,196 } 37600063-622-A PW&E Courtplace Apartments 8330 Construction Contracts 1,779,000 (1,779,000) Increase appropriations for storm drain improvements @ Courtplace Apartments
630 Circulation Mitigation 3,583,223 - - - (3,583,223)
37600063-630-A PW&E Courtplace 8330 Construction Contracts 648,000 (648,000) Increase appropriations for Courtplace Construction Contract 37603058-630-A PW&E I-10 Cedar Interchange 8329 Other Construction 2,109,655 (2,109,655) Increase appropriations for I-10 Cedar Interchange CC approved 09/29/19 37603087-630-A PW&E I-10/Cherry Interchange Various Operating Accounts (306,432) 306,432 Defund excess balance in the I-10 Cherry Interchange project and send back to FB
37603088-630-G PW&E I-10/Citrus Interchange 8329 Other Construction 490,000 (490,000) Increase appropriations for balance owed to SBCTA for I-10 Citrus Interchange
37603333-630-A PW&E Foothill: Hemlock-Almeria Arterial 8310 Land 642,000 (642,000) Foothill Blvd btwn Hemlock Ave and Almeria Ave Right of Way Purchase 632 General Government 11,000,000 - - - (11,000,000)
37600067-632-A PW&E Downtown West Parking Structure Various Operating Accounts 11,000,000 (11,000,000) Increase appropriations for Downtown West Parking Structure 635 Parks Development 1,700,000 - - 8,386,360 (10,086,360) 63537000 PW&E Parks Dev Cap Fd-Eng 8790 Operating Transfer Out 8,386,360 (8,386,360) Xfer to Fund #602 to account for the South Fontana Sports Park expenditures
37200010-635-A PW&E Veteran's Park Dog Park 8329 Other Construction 100,000 (100,000) Increase appropriations for Veteran's Park Dog Park 37600071-635-A PW&E M Tudor Action Pk 8329 Other Construction 100,000 (100,000) Increase appropriations for Action Park Admin Costs in Design 37603345-635-A PW&E San Sevaine PH I 8330 Construction Contracts 1,500,000 (1,500,000) Increase appropriations for San Sevaine Trail project CC approved 12/12/23, File #21-2647
San Sevaine Trail project CC approved 10/24/23, File #21-2505 PC #37038 Reclass Assistant Engineer to Associate Engineer

526
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
636 Police Capital Facilities (31,928) - - - 31,928
63640113 PD Police Facility Future Proj Various Operating Accounts 190,000 (190,000) PD MET office remodel equipment 40102040-636-A PD Captain's Office Remodel Various Operating Accounts (221,928) 221,928 Project close out for Captain Office Remodel 669 CFD #95 Summit at Rosena II - - - 1,600,000 (1,600,000) 66937000 PW&E CFD #95 Summit @ Rosena II 8790 Operating Transfer Out 1,600,000 (1,600,000) Xfer to Fund #601 for Downtown West Parking Structure 670 CFD #87 El Paseo - - - 1,000,000 (1,000,000)
67037000 PW&E CFD #87 El Paseo 8790 Operating Transfer Out 1,000,000 (1,000,000) Xfer to Fund #602 for Downtown Revitalization property purchases 671 CFD #106 MountainView - - - 2,100,000 (2,100,000)
67137000 PW&E CFD#106 Mountain View 8790 Operating Transfer Out 2,100,000 (2,100,000) Xfer to Fund #601 for Downtown West Parking Structure 672 CFD #99 The Retreat - - - 800,000 (800,000)
67237000 PW&E CFD #99 The Retreat 8790 Operating Transfer Out 800,000 (800,000) Xfer to Fund #601 for Downtown West Parking Structure 673 CFD #100 Victoria 58,268 5,076,251 - 900,000 4,117,983 67337000 PW&E CFD #100 Victoria 6810 Bond Proceeds 5,105,793 5,105,793 Increase revenues for CFD #100 bond proceeds received 67337000 PW&E CFD #100 Victoria 6811 Bond Premium (29,542) (29,542) Decrease revenues for CFD #100 bond premium 67337000 PW&E CFD #100 Victoria 8721 Costs Of Issuance 58,268 (58,268) Increase appropriations for CFD #100 bond cost of issuance 67337000 PW&E CFD #100 Victoria 8790 Operating Transfer Out 900,000 (900,000) Xfer to Fund #601 for Downtown West Parking Structure 701 Sewer Maint & Operations 118,330 - - - (118,330)
70130101 DS DS Adm-Technology Various Personnel Accounts (10,000) 10,000 Delete PT Office Assistant position 70130101 DS DS Adm-Technology Various Personnel Accounts 18,494 (18,494) New Environmental Control Technician position 70130112 DS DS Adm-PT & Sewer Program 7111 Part-Time Employees (10,000) 10,000 Eliminate Part-time GIS Intern II Position 70130112 DS DS Adm-PT & Sewer Program 8130 Other Professional Svcs 2,110 (2,110) C/O FY22-23 PO Budget for Temp Svcs. 70137112 PW&E Sewer Laterals Various Personnel Accounts 22,654 (22,654) New Engineering Technician II position 70137114 PW&E Sewer Maintenance Various Personnel Accounts 10,791 (10,791) New Administrative Clerk II position 70137114 PW&E Sewer Maintenance Various Personnel Accounts 11,621 (11,621) New Administrative Analyst II position 70137114 PW&E Sewer Maintenance Various Personnel Accounts (11,580) 11,580 PC# 37135 Eliminate Admin Tech position 70137114 PW&E Sewer Maintenance 8130 Other Professional Svcs 4,240 (4,240) C/O FY22-23 PO Budget for Temp Svcs. 70137114 PW&E Sewer Maintenance 8130 Other Professional Svcs 30,000 (30,000) Increase appropriations for Sewer bay reconfiguration construction, flooring, chairs
70137114 PW&E Sewer Maintenance 8314 Land & Bldg Improvements 30,000 (30,000) Increase appropriations for Sewer bay reconfiguration Cabinets 70137114 PW&E Sewer Maintenance 8317 Maintenance Equipment 20,000 (20,000) Increase appropriations for Sewer bay reconfiguration HVAC 702 Sewer Capital Projects 294,000 - - - (294,000)
37600063-702-A PW&E Courtplace Apartments 8330 Construction Contracts 294,000 (294,000) Increase appropriations for sewer improvements @ Courtplace Apartments 703 Sewer Replacement 460,936 - - - (460,936)
37104334-703-A PW&E Industry Sewer Lift Rehab 8331 Construction Contingency 297,990 (297,990) } 37104335-703-A PW&E Tamarind Sewer Lift Rehab 8331 Construction Contingency 162,946 (162,946) } 720 Stage Red 500,000 - - - (500,000)
72030104 DS Stage Red 8130 Other Professional Svcs 500,000 (500,000) Increase appropriations for Stage Red operations and consultant fee CC approved 02/13/24, File #21-2803
Appropriate contingency funds for Pump Station Improvement Project CC approved 11/14/23, File #21-2579

527
Midyear Budget Status Report - 2023/2024 City of Fontana February 27, 2024
Fund Organization
Project #
Dept Organization/Project
Description Object Object Description Appropriations Revenues Transfers In
Transfers
Out FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2023/2024
751 Fleet Operations 584,237 - 485,850 - (98,387)
75137305 PW&E Fleet Maintenance Various Personnel Accounts 8,095 (8,095) New Administrative Clerk II position 75137305 PW&E Fleet Maintenance Various Personnel Accounts 11,622 (11,622) New Administrative Analyst II position 75137305 PW&E Fleet Maintenance Various Personnel Accounts (11,580) 11,580 PC# 37135 Eliminate Admin Tech position 75137305 PW&E Fleet Maintenance 6900 Operating Transfers In 48,700 48,700 75137305 PW&E Fleet Maintenance 8319 Vehicles 48,700 (48,700) 75137305 PW&E Fleet Maintenance 6900 Operating Transfers In 81,400 81,400 75137305 PW&E Fleet Maintenance 8319 Vehicles 81,400 (81,400) 75137306 PW&E Fleet Replacement 6900 Operating Transfers In 175,750 175,750 } 75137306 PW&E Fleet Replacement 8319 Vehicles 175,750 (175,750) } 75137306 PW&E Fleet Replacement 8319 Vehicles 90,250 (90,250) Increase appropriations for replacement PD utility vehicle 75137305 PW&E Fleet Maintenance 6900 Operating Transfers In 180,000 180,000 } 75137305 PW&E Fleet Maintenance 8319 Vehicles 180,000 (180,000) } Total Other Funds Transfers 32,351,383 22,138,175
Xfer from GF #101 for Hybrid Bucket Truck for New Traffic Signal Maintanence Technician II
Xfer from GF for Animal Service Truck
Xfer from Fund #101 for New Public Works Inspector Vehicle Xfer from Fund #101 for New Senior Code Enforcement Inspection Vehicle

528
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2834 Agenda Date: 2/27/2024
Agenda #: B. Category: New Business
FROM:

Finance
SUBJECT:

American Rescue Plan Act Update
RECOMMENDATION:

Receive update and approve revisions to the American Rescue Plan Act (ARPA) Expenditure Plan, including the leveraged projects.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· Practice sound fiscal management by producing timely and accurate financial information. · Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by emphasizing capital formation. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

Background
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, providing additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. ARPA funding of $1.9 trillion provided for $362 billion in flexible fiscal aid to state and local governments in America under the State & Local Fiscal Recovery Funds (SLFRF). The City of Fontana was allocated $50.3 million in ARPA SLFRF funds. The U.S.

Department of the Treasury issued an Interim Final Rule in May 2021, and the Final Rule in January 2022, to implement the Coronavirus State and Local Fiscal Recovery Funds established under ARPA.

On March 8, 2022, the City Council approved the original ARPA Expenditure Plan (Plan). On September 13, 2022, the City Council subsequently approved a revised Plan which properly categorized existing projects per the Final Rule and eliminated projects that were determined to be ineligible. As all projects were determined eligible in concept for ARPA funding, staff has worked diligently with the City Attorney’s office and HdL ECONSolutions ensuring that all project details met City of Fontana Page 1 of 5 Printed on 2/22/2024
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File #: 21-2834 Agenda Date: 2/27/2024
Agenda #: B. Category: New Business
diligently with the City Attorney’s office and HdL ECONSolutions ensuring that all project details met ARPA Final Rule requirements. Currently, nearly all projects have received a final legal determination as to their eligibility.

Current Plan
The current Plan reflects expenditures in four primary Federal Eligible Use Categories. As the U.S.

Department of Treasury (Treasury) continues to refine reporting requirements, the table below reflects the current budget in the updated categories per the Treasury reporting requirements.

Recommended Plan - Revisions
The revisions proposed for the current Plan budget reflect no change in appropriation.

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File #: 21-2834 Agenda Date: 2/27/2024
Agenda #: B. Category: New Business
Plan revisions being proposed with this item include adjustments to the following projects:
· Leveraged Project: Support Government Employment (hiring above the pre-pandemic baseline): Current allocation is $5.97 million and an increase of $109,682 is recommended as a result of completed projects being under budget.
· Fontana Eats Grants Program: Recommend a decrease of programmed budget of $109,214 due to lower than budgeted expenses after project completion. · Vaccine Bonus: Recommend a decrease of programmed budget of $468.02 due to lower than budgeted expenses after project completion.

Recommended Plan - Leveraged Projects
The original Plan as recommended by Council included $18.0 million of projects in the Revenue Loss category of which only had $10.0 million of available funding per the standard allowance in the Final Rule. As a result, the Revenue Loss category was over appropriated by $8.0 million and the projects in this category were not eligible under any other category. As such, $8.0 million of ARPA eligible projects needed to be identified in the General Fund and the funding for these projects switched to ARPA thus making available General Fund for the projects. These projects included the Police Department helicopter ($3.0 million) and various pavement rehabilitation projects ($5.0million) which will be funded through the General Fund as a result of the leveraged projects below which were previously funded by the General Fund and will now be funded through ARPA.

Leveraged Projects below:

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· Support Government Employment - Hiring Above the Pre-Pandemic Baseline ($6,077,319):

Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-23. This amount is being increased by $109,682 to accommodate completed projects. · Accela and Fontana 311 projects have been identified as eligible projects.

Recommended Plan Summary
The Plan below reflects all changes discussed above:

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File #: 21-2834 Agenda Date: 2/27/2024
Agenda #: B. Category: New Business
Plan Update
As of the last report, all Plan projects had been reviewed and based upon the scope of each project, deemed eligible by HdL and the City Attorney. Since the last report, all projects have been reviewed by City Attorney’s office in detail with the majority of the projects having been fully approved. Staff will continue to work with the City Attorney to ensure all projects meet all eligibility requirements. To date, $16 million have been expended. Attachment B provides a brief update on each project.

FISCAL IMPACT:

There is no net fiscal impact associated with the approval of this item. Approval of this item reallocates ARPA funding within the expenditure plan as detailed in Attachment A.

MOTION:

Adopt staff recommendation.

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ATTACHMENT A CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE AS OF DECEMBER 31, 2023
Federal Eligible Use Category
Treasury Expenditure Category Project Current Plan Proposed Plan Expenditures as of 12/31/23
1) Public Health & Economic Response

1.0 Public Health Metrolink Station Security Cameras 66,410 66,410 66,410 Ventilation Upgrade for City Facilities 2,322,150 2,322,150 2,322,150

2.0 Negative Economic Impacts Fontana Forward Grant Program 300,000 190,786 190,786 Homelessness Prevention Resources and Care Center 8,000,000 8,000,000 220,460 Park Improvements 4,079,892 4,079,892 181,891

3.0 PH Negative Economic Impact Public Sector
Capacity
Leveraged Project: Support Government Employment
(hiring above the pre-pandemic baseline)
5,967,637 6,077,319 5,359,021
Vaccine Bonus 527,454 526,986 526,986
Leveraged Project: Accela 3,600,000 3,600,000 3,406,636 Leveraged Project: Fontana 311 3,150,000 3,150,000 1,372,229 Part-Time Employee Retention 152,936 152,936 152,936
2) Revenue Loss

6.0 Revenue Replacement Parking Structure 10,000,000 10,000,000 280,692 3) Uniform Administrative Requirement, Cost
Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200)

7.0 Adminstrative Administrative Costs 250,000 250,000 34,447 4) Water, Sewer, and Broadband Infrastructure

5.0 Infrastucture Cypress Storm Drain Project 5,840,000 5,840,000 - Data Security & Threat Detection 157,927 157,927 157,927 Endpoint Detection & Response Solution 154,806 154,806 154,806 Fiber to City facilities 2,000,000 2,000,000 27,186
Network Detection & Response Solution - - -
Septic to Sewer 2,000,000 2,000,000 4,749
Sewer and Storm Drain Infrastructure Masterplan 375,130 375,130 318,519 Update Master Infrastructure Plans 424,870 424,870 348,287 5) Premium Pay
Public Safety Premium Pay
887,901 887,901 887,901
Total 50,257,113 50,257,113 16,014,019
Total Unappropriated Fund Balance - -
Total Allocation 50,257,113 50,257,113
534

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Administrative Costs 250,000 34,447 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR Part 200)
To cover the administrative direct and indirect costs associated with the ARPA program.
2021-22 12/31/2024 250,000 Administrative costs to cover the implementation and oversight of the City's ARPA Expenditure Plan. Costs include but are not limited to City staff time, consultant services including HdL, and City Attorney costs.

Cypress Storm Drain Project 5,840,000 - Water, Sewer, and Broadband Infrastructure
Construction of a storm drain facility along Foothill Blvd between Sierra Ave and Cypress Ave and Cypress Ave between Foothill Blvd and Orange Way to connect to the newly constructed West Fontana Channel along the Metrolink railroad track. The project also includes landscaped median on Foothill Blvd, reconstruction of AC pavement, and ADA compliant sidewalks and curb ramps upgrades.

In progress 6/30/2025 20,500,000 The project is currently in design phase. The project will be constructed in two phases:
- Phase 1 will be on Foothill Blvd between Sierra Ave and Cypress Ave, and on Cypress Ave between Foothill Blvd and Orange Way ($14.0 million)
- Phase 2 will be on Cypress Ave between Miller Ave and Foothill Blvd and on Juniper Ave between Miller Ave and Foothill Blvd ($6.5 million)
ARPA funds will be used towards the first phase. Phase 2 will be constructed once funding is identified in the future. The total project cost for Phase 1 is funded by ARPA, Local Measure I, Storm Drain, and Landscape. Phase 1 will be advertised in March 2024, with anticipated completion of construction in mid 2025..

Data Security & Threat Detection 157,927 157,927 Water, Sewer, and Broadband Infrastructure
A software suite that integrates with our servers and Office 365 to detect, report, and alert on permissions and activity to help detect unauthorized access.

Complete 9/25/2022 160,000 Varonis DatAdvantage software suite was deployed and is currently in use to monitor the City's file servers and Office 365 environment. Approved via consent calendar during the June 28, 2022 City Council meeting. PO #22300174. Project is completed.

Endpoint/Network Detection & Response
Solution
154,806 154,806 Water, Sewer, and Broadband
Infrastructure
A technology solution that would help detect, alert, and potentially respond automatically to anomalous or malicious network activity on the City's network
Network:A technology solution that would help detect, alert, and respond to unauthorized activity on the staff computers throughout the City. This would fill the gap between what anti-virus software will detect and our network defenses.

Complete 6/30/2023 150,000 Combined with Network Detection and Response solution. Purchased Arctic Wolf Managed Detection and Response (MDR) solution to monitor network traffic to alert on malicious or suspicious activity. Approved via consent calendar during the June 14, 2022 City Council Meeting.

PO # 22300235. Project is completed
Fiber to City facilities 2,000,000 27,186 Water, Sewer, and Broadband Infrastructure
This project would run City owned fiber to our 6 facilities with leased lines, 1police substation with a leased line, 4 of our larger parks that currently have no connectivity, and 1 police substation that currently has no connectivity. This would help facilitate the use of technology at the locations (Wi-Fi, security cameras, irrigation systems, etc.).

In progress 9/30/2024 2,000,000 Sites to be connected are: Palm Court Substation, Southridge Substation, Cypress Center, Don Day Center, Heritage Center, Jack Bulik Center, Martin Tudor Park, Mary Vagle Nature Center, Bill Martin Park, Central City Park, Ralph M. Lewis Sports Complex, South Fontana Park, and Veteran's Park. The project is scheduled to begin construction in Summer and completion is expected in Fall this year.

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Fontana Eats Grant Program 190,786 190,786 Public Health & Economic Response Council approved program to grant Covid Impacted or disproportionate residents $100 to $600 depending on family size and income.

On October 25, 2022, City Council approved the Fontana Eats food assistance program to provide a direct benefit to eligible households impacted by COVID-19. As of August 17, 2023, a total 406 households have received $103,512.81 in funding. In partnership with Fontana/s Social Work Action Group (SWAG) this total includes 35 individuals experiencing housing insecurities that received Fontana Eats funding as additional assistance while placed in local rapid housing.

Revised: a decrease of $109,214 is recommended due to the sunset of the program and the full amount allocated not being expended.

Complete 12/31/2023 300,000 Project details are being developed and will be presented to Council for consideration in September 2022. // Project Name Changed to: Fontana Eats // Council approved program to grant Covid Impacted or disproportionate residents $100 to $600 depending on family size and income // Total Applications Submitted: 225 // First 100 applicants to be funded mid-April.

The sunset of the program commenced on or before September 30, 2023. Funds for the Fontana Eats program were exhausted, leaving a total amount of $83,440.00 remaining and any additional funds not expended after final billing from Usio Card Services, will be reallocated to ARPA priority projects. This project has been completed.

Homelessness Prevention Resources and
Care Center
8,000,000 220,460 Public Health & Economic Response The design and construction of a homeless shelter to serve the homeless population of the City.
9/1/2022 11/1/2024 17,000,000 Additional funding of $9,000,000 is required and potential sources include:
- County of San Bernandino-$5,000,000
- USHUD $4,000,000
Project will provide transitional housing and wrap around services (24 hour managed care) for up to 30 chronically homeless individuals as well as housing and appropriate support services for up to 16 families. This Includes the purchase of a Hotel, the Conversion Costs and 2 years of property management and utilities.

Leveraged Project: Support Government
Employment (hiring above the pre-pandemic
baseline)
6,077,319 5,359,021 Public Health & Economic Response Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to

7.5 percent above its pre-pandemic baseline.

Revised: increase of $109,682 recommended to account for decrease in other projects
2022-23 2023-24 6,077,319 All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-

23. Metrolink Station Security Cameras 66,410 66,410 Public Health & Economic Response Installation of 8 security cameras at the Fontana Metrolink station to help keep the area more secure. The station currently has no operational cameras, nor any City owned cameras.

Complete 10/1/2022 67,000 Project is complete.Delays were due to delivery which is delayed due to supply chain issues.

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Leveraged Project: Accela 3,600,000 3,406,636 Public Health & Economic Response This is a new project and it is recommended that it is funded in the amount of $3.6 million in an effort to leverage funds for projects originally requested in the Revenue Loss category.
2021-22 2023-24 3,600,000 In 2021 the Innovation and Technology Department began efforts to improve business processes in the land management and permitting systems. During the pandemic, it became clear that paper processes were no longer an effective way of serving our residents or business partners. The city wished to replace the existing solution with an improved digital solution to meet the needs of city employees, residents, and businesses. Over the course of a year, city staff reviewed processes and gathered requirements for a new solution.

A new solution was selected in late 2021 to help improve processes in the land management and permitting system space. Throughout 2022 the IT department has continued to lead this project, working alongside almost every city department to ensure the new solution will be tailored to meet the city of Fontana’s needs in this space. This project has been a 3-year effort, and we are now nearing the tail-end of the project. The new, improved solution will seamlessly connect with surrounding systems, assist customers with an easy-to-use interface, ensure city employees process requests in a consistent and efficient manner, and provide dynamic insights to internal operations. The new solution went live July 2023. There are Quarter 1 FY2024 requests for addtional work.

Leveraged Project: Fontana 311 3,150,000 1,372,229 Public Health & Economic Response This is a new project and it is recommended that it is funded in the amount of $3.2 million in an effort to leverage funds for projects originally requested in the Revenue Loss category.
2021-23 2023-25 3,150,000 The City of Fontana developed and implemented the Fontana 311 system to improve communication and streamline services to its Residents and Businesses by bringing all customer interactions to one central location.

The Fontana 311 system will be a one-stop shop for businesses and residents to file complaints, get answers to questions, keep residents informed and overall improve citizen engagement. The Innovation and Technology department led the project to develop this new system and was sponsored by our Communications and Marketing office. Throughout 2022 and 2023, there has been extensive work with almost every city department to ensure all city services are captured within the application.

Residents will be able to call 311, use a website, or our 311 app to make that first request and then see it through to completion. The Fontana 311 system will allow staff to track requests from initiation to completion. Fontana 311 offers digital government services and makes interacting with government a much smoother process for our residents and businesses. The Fontana 311 system went live in February of 2023 and is now entering phase 2 of the project, which will bring an IVR with AI to assist our residents when they call for services.

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Park Improvements 4,079,892 181,891 Public Health & Economic Response Various projects needed to replace and/or upgrade aging infrastructure in our City's parks.
10/1/2022 6/1/2024 4,059,500 Improvements are being recommended at the following 10 parks:
--Veteran's Park (installation of ballfield dugout shade structures - completed) - Veteran's West Park (installation of new ballfield backstops - Construction began December 18, 2023, there are 15 work days delay due to rain. Completion date March 1, 2024 ). - Seville Park (installation of new ADA Inclusive playground structure - Construction scheduled for March 4, 2024 ).
- Fernandez Park (Construction scheduled for March 4, 2024 ) - Bill Martin Park (Ballfield dugout shade structures - completed, Shade structures for spectator areas- Construction scheduled for June 5, 2024).
- Northgate Park (installation of playground, shade structure and ADA inclusive playground equipment-Construction scheduled for April 4, 2024).
- North Tamarind Park (installation of new jumbo park gazebo for large groups, a new ADA inclusive playground, shade structures, and rubber safety surfacing- Construction scheduled for February 19, 2024)
- Lemon Pepper Park (installation of playground shade structure-Construction scheduled for April 18, 2024).
- Carmela Park (installation of playground shade structure- Completed.

Parking Structure 10,000,000 280,692 Revenue Loss The project will construct a new parking structure within the parking lot of the Fontana HR Office.

In progress 3/30/2025 15,000,000 The proposed project is to be constructed within the existing parking lot of the City’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335, and shall consist of a 4-tier parking structure. Each tier will have a footprint of approximately 130 feet by 230 feet with two vehicular entrances, one along Learner Lane and the other along Wheeler Avenue. The City anticipates the structure to include 311 vehicular parking spaces and two elevators. The intent of the structure is to serve as both public and employee parking for the civic center campus.

The Design-Build contract was approved by council on June 13, 2023. The construction is scheduled to begin in late February 2024.

Part-Time Employee Retention 152,936 152,936 Public Health & Economic Response Project includes recruitment and retention bonuses for part-time personnel. Complete 2022-23 152,936 Project includes recruitment and retention bonuses for part-time personnel with a current allocation of $250,000.

Public Safety Premium Pay 887,901 887,901 Premium Pay Project includes public safety retention bonuses which were previously categorized as Employee Retention/Incentive as Public Health & Economic Response.

Complete 2022-23 887,901 Project includes public safety retention bonuses. Project is Complete Septic to Sewer 2,000,000 4,749 Water, Sewer, and Broadband Infrastructure
The project will provide septic to sewer conversion in a disadvantaged communities (DAC) area in the city.

In Progress 6/30/2025 2,000,000 The City will utilize up to $1,000,000 to create sewer plans for the area known as Area F08 (south of Foothill, east of Alder, north of Merrill and west of Maple) per IEUA's feasibility study. The Engineering Design Services RFP will be issued in February 2024, with anticipated completion of the Design and shovel-ready by Summer 2025.

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Sewer Infrastructure Masterplan 375,130 318,519 Water, Sewer, and Broadband Infrastructure
For consultant provided services in order to develop a masterplan document to forecast future infrastructure needs.
9/30/2022 4/30/2024 375,130 Contract with David Evans and Associates. for $375,130 was approved on October 10, 2022.

Contract is being funded by ARPA. Due to staff shortage in consultant, the expected date for Council workshop is April 2024.

Storm Drain Infrastructure Plans 424,870 348,287 Water, Sewer, and Broadband Infrastructure
Storm Drain and Sewer master plans update. With completed projects and various changes since the last update, the master plans are due for an update.
9/30/2022 4/30/2024 478,502 Contract with Albert A. Webb Associates, Inc. for $478,502 was approved on October 3, 2022.

Contract is being funding by ARPA and $53,632 from Fund 702. An addendum for $40,000 is approved by the City Council from Fund 702 to provide more detailed analysis of the Downtown Area with the funds being drawn from the Sewer Capital Projects Fund. Due to additional scope of the project, the project will be ready for a Council workshop in April 2024.

Vaccine Bonus 526,986 526,986 Public Health & Economic Response Project includes a citywide vaccine bonus.

Revised: a decrease of $468.02 is recommeded based on actual costsof the project
Complete 2022-23 526,986 Project includes a citywide vaccine bonus. Citywide Vaccine Bonus, 40 hours per full-time employee with a current allocation of $527,454. Project ended in December 31, 2022.

Ventilation Upgrade for City Facilities 2,322,150 2,322,150 Public Health & Economic Response Upgrades to existing HVAC equipment to provide better protection to employees from Covid-19.

Complete 7/30/2023 2,500,000 Project went out to bid and closed August 23, 2022. Bid responses are being evaluated by Purchasing and contract will be presented to council for consideration in September 2022.

Installation began January 2023 and was completed July of 2023. There were a total of 990 air purifiers installed along with 200 air monitors in a total of 20 city buildings. Completed.

Total 50,257,113 16,014,020

ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL December 31, 2023
Project Recommended
Amount
Expended As of
12/31/23
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
REVISED: Helicopter Purchase 3,000,000 3,000,000 This request is for an A-Star helicopter which will allow for a more available fleet and readied aircraft while one or more are down for scheduled or unscheduled maintenance. The A-Star can fly in windy conditions and eliminate the current loss of approximately 30% of hours due to inclement weather. Additionally, the upgraded program could provide for the ability to support an officer down rescue.

The increased functionality of the A-Star will allow for integrated maps to support in pursuits and tactical situations; recording capabilities to assist in evidence, training, and civil litigations; the ability to fly at higher altitudes to assist in covert surveillances to aid the Narcotics Unit, Fugitive Apprehension Team, and other units in the special operations division.

Additionally, the A-Star will also provide air support to the Fire District including fire patrol and real-time tactical assessments improving response times and decreasing loss of property.
5/27/2022 11/30/2022 3,000,000 The AirBus Helicopter was purchased and delivered in May 2022 as well as the Chopper Spotter The balance of the outstanding expenditures will be presented to Council and funding (General Fund 101) request will be submitted for approval as needed. Project details include the following:
- 2011 Air Bus AS350B2 ($1,670,125) - purchased using General Fund (101) May 2022. - Chopper Spotter ($22,760) - purchased using General Fund (101) - 5 Year Impound Fees ($625,000) - General Fund (101) monies need to be requested and placed in a project as a one time payment of ($625,000). Funds were in original proposal for annual maintenance (5 yrs x $125,000)
- 12 Year Maintenance ($225,000) - General fund (101) request submitted for 1st Qtr. (2023-2024) - FY 21/22 Prorated Premium Insurance ($3,962) - General Fund (101) paid July 2022. - FY 22/23 Insurance ($47,541) Increase cost of insurance. FY 23/24 Insurance billed at the same rate of FY 22/23. Insurance premium paid from General Fund (101). - Cargo Hook Kit/Bambi Bucket ($100,000) - Currently aircraft unavailable to install equipment. Fire District/Dept will be contacted when ready to proceed with purchase.

Additionally, there are on-going associated costs related to general contract increase for fuel, maintenance, storage, flight hours, and insurance premiums. The Police Department will include General Fund (101) increase request annually during budget preparation and supplement budget preparation.

This project is now funded by General Fund. Remaining outstanding items to be purchased included: Remaining Impound Fees, 12 Year Maintenance, and Cargo Hook Kit/Babmi Bucket.

Pavement Rehabilitation 5,000,000 TBD For annual work related to the City's Pavement Management Plan. 3/1/2023 12/31/2025 5,000,000 Various Pavement Rehabilitation projects, per City's 7-Year Pavement Management Plan, are currently in design and construction phases.

City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2816 Agenda Date: 2/27/2024
Agenda #: C. Category: New Business
FROM:

Finance
SUBJECT:

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023 RECOMMENDATION:

Receive and File the City of Fontana’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2023.

COUNCIL GOALS:
· Practice sound fiscal management by producing timely and accurate financial information.

DISCUSSION:

The City of Fontana is required by Fontana Municipal Code Section 10-8 to have the City’s annual financial records audited by an independent audit firm. Section 10-8 states, “The books, accounts, and funds of the City Finance Department, City Treasurer and all special agencies shall be audited by a registered and licensed public accountant at least once a year…” Accordingly, this year’s audit for the City was completed by the accounting firm Davis Farr LLP.

The primary objectives of a financial audit are: (1) to express an opinion on the fairness of the financial statements in conformity with generally accepted accounting principles; and (2) to determine whether the City has complied with applicable legal requirements in obtaining and expending public funds.

The audit for Fiscal Year 2022-23 was performed in accordance with generally accepted auditing standards. These standards are required to obtain reasonable assurances that the general-purpose financial statements are free from material misstatements.

Davis Farr LLP has issued an unmodified ("clean") opinion, the highest opinion given for financial statements, to the City for the fiscal year ended June 30, 2023. This opinion states that the generalpurpose financial statements present fairly, in all material respects, the financial position of the City of Fontana, as of June 30, 2023, and the results of the City’s operations are in conformity with generally accepted accounting principles.

FISCAL IMPACT:

None.

MOTION:

City of Fontana Page 1 of 2 Printed on 2/22/2024
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File #: 21-2816 Agenda Date: 2/27/2024
Agenda #: C. Category: New Business
Approve staff recommendation.

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CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2023
543

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
City of Fontana
California
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
Phillip W. Cothran, Council Member
John B. Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
(at date of issuance)
Matthew C. Ballantyne, City Manager

PREPARED BY THE CITY OF FONTANA FINANCE DEPARTMENT
Jessica Brown, Chief Financial Officer
544

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS

INTRODUCTORY SECTION
Page
Number
Letter of Transmittal i
List of Principal Officials x
Organizational Chart xi

FINANCIAL SECTION
Independent Auditors’ Report 1
Management’s Discussion and Analysis 6
Basic Financial Statements
Government-Wide Financial Statements
Exhibit A - Statement of Net Position 21
Exhibit B - Statement of Activities 22
545

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Basic Financial Statements (continued)
Fund Financial Statements
Page
Number
Exhibit C - Balance Sheet – Governmental Funds 23
Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 24
Exhibit E - Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 25
Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Exhibit G - Statements of Revenues, Expenditures, and Changes in Fund Balances -- Budget and Actual
General Fund 27
Fire Protection District - Special Revenue Fund 28
Housing Authority Low/Mod Housing - Special Revenue Fund 29 Economic Stimulus - Special Revenue Fund 30
Exhibit H - Statement of Net Position – Proprietary Funds 31 546

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Basic Financial Statements (continued)
Page
Number
Exhibit I - Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 32
Exhibit J - Statement of Cash Flows - Proprietary Funds 33 Exhibit K - Statement of Fiduciary Net Position 34
Exhibit L - Statement of Changes in Fiduciary Net Position 35 Notes to the Financial Statements
Note 1: Organization and Summary of Significant Accounting Policies 36 Note 2: Stewardship, Compliance and Accountability 48
Note 3: Cash and Investments 50
Note 4: Leases 55
Note 5: Receivables 56
Note 6: Capital Assets 57
Note 7: Interfund Receivables, Payables and Transfers 59 Note 8: Long-Term Debt 62
Note 9: Risk Management 66
Note 10: Litigation 67
547

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023
FINANCIAL SECTION (continued)
Basic Financial Statements (continued)

TABLE OF CONTENTS
Page
Number
Notes to the Financial Statements (continued)
Note 11: Jointly Governed Organization 68
Note 12: Other Post-Employment Benefits 68
Note 13: Pensions 72
Note 14: Public Agency Retirement Services 83
Note 15: Classification of Fund Balances 84
Note 16: Fontana Fire Protection District 86
Note 17: Successor Agency Trust for Assets of Former Redevelopment Agency 89 Note 18: Tax Abatement 94
Note 19: Prior Period Adjustments 95
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios during the 96 Measurement Period - Safety Plan
Schedule of Changes in Net Pension Liability and Related Ratios during the 97 Measurement Period - Miscellaneous Plan
Schedule of Plan Contributions – Safety Plan 98
Schedule of Plan Contributions – Miscellaneous Plan 99
Schedule of Changes in Total OPEB Liability and Related Ratios 100 548

Page
Number

145
146
148

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Basic Financial Statements (continued)
Supplementary Information
Combining and Individual Fund Statements and Schedules
Schedule 1 - Combining Balance Sheet – Non-Major Governmental Funds Schedule 2 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds
Schedule 3 - Budgetary Comparison Schedules - Governmental Funds Schedule 4 - Combining Statement of Fiduciary Net Position Schedule 5 - Combining Statement of Changes in Fiduciary Net Position

STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years
Changes in Net Position– Last Ten Fiscal Years
Fund Balances – Governmental Funds – Last Ten Fiscal Years 105
110
115
141
142
549

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (continued)
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 149 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 151 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 152 Principal Property Taxpayers – Current Year and Nine Years Ago 153 Property Tax Levies and Collections – Last Ten Fiscal Years 154 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 155 Ratio of General Bonded Debt Outstanding – Last Ten Fiscal Years 156 Direct and Overlapping Bonded Debt 157
Legal Debt Margin Information – Last Ten Fiscal Years 158 Demographic and Economic Statistics – Last Ten Fiscal Years 159 Principal Employers – Current Year and Nine Years Ago 160 Full-time City Government Employees by Function – Last Ten Fiscal Years 161 550

CITY OF FONTANA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2023

TABLE OF CONTENTS
STATISTICAL SECTION (continued)
Page
Number
Operating Indicators by Function/Program – Last Ten Fiscal Years 162 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 163 Miscellaneous Statistical Information 164
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City of Fontana

C A L I F O R N I A

February 20, 2024
The Honorable Mayor and City Council
State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive annual financial report of the City of Fontana for the fiscal year ended June 30, 2023.

This report consists of management’s representations concerning the finances of the City of Fontana. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Fontana has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City of Fontana’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Fontana’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Fontana’s financial statements have been audited by Davis Farr LLP, a firm of licensed certified public accountants.

The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Fontana for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and 553
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significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Fontana’s financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City of Fontana was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Fontana’s separately issued Single Audit Report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Fontana’s MD&A can be found immediately following the report of the independent auditors.

Profile of the Government
The City of Fontana is located about 50 miles east of Los Angeles. The City spans approximately 52.4 square miles and has an estimated population of 213,851. The City was first developed as an organized rural community through the vision of Mr. A. B.

Miller. Although self-sufficient, the farming community was abruptly reshaped to accommodate the industrial revolution in 1942 with the transformation of Mr. Miller’s farm into a steel mill by Henry J. Kaiser. The area became Southern California’s leading producer of steel and steel-related products. The steel industry dominated the City’s economy until 1984 when the steel mill closed. Today, Fontana has emerged as an affordable suburb, attracting both residents and businesses.

The City 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. The City is governed by a five member City Council under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of the mayor and four other members. The council is elected on a non-partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The mayor is elected to serve a four-year term. The mayor is elected at large and the four council members are elected by district. The governing council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City of Fontana employs approximately 600 full-time employees. Services provided include police protection; contract for fire services; the construction and maintenance of highways, streets, and other infrastructure; wastewater and sanitation services; and recreational activities and cultural events. In addition to general government activities, the City Council also serves as the 554
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Board of Directors of the Fontana Industrial Development Authority, the Fontana Public Financing Authority, the Fontana Public Facilities Financing Authority, the Fontana Housing Authority, the Fontana Community Foundation, the Fontana Fire Protection District as well as the Successor Agency for the Former Fontana Redevelopment Agency. Therefore, these activities have been included as an integral part of the City of Fontana’s financial statements. Additional information on these entities can be found in Note 1 in the notes to the financial statements.

The annual budget serves as the foundation for the City of Fontana’s financial planning and control. Each year the City Council reviews budget development guidelines for use in preparing the next year’s budget. These guidelines are structured to reflect the City Council’s goals and objectives and to provide the framework in which the Operating Budget is prepared. The Finance Department is responsible for compiling the estimated revenues and appropriations for the City Manager. Prior to the beginning of the new fiscal year, the City Council adopts the annual Operating Budget at a public meeting.

The City’s budget policy is that all appropriations lapse at fiscal year-end. Outstanding encumbrance balances at fiscal year-end require re-approval by the City Council at the First Quarterly Budget Review. The City Council may amend the budget at any time during the fiscal year. Budget reports are presented to the City Council and the public on a quarterly basis. They include appropriation adjustments and revised revenue projections as needed. The legal level of budgetary control is set at the department level. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriate annual budget has been adopted.

Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Fontana operates.

Local economy. The Inland Empire continued to recover from the COVID-19 pandemic, which disrupted lives and businesses alike. The Inland Empire’s housing markets are strengthening, new home developers are continuing to build, job growth is stable and consumer spending is continuing to grow. Despite the increase in the interest rates by the Federal reserve, the Inland Empire’s economy does not expect an economic slowdown.

Balanced Growth. After experiencing significant job reductions in the wake of the State government COVID -19 shut down of the non-essential portions of the economy with unemployment reaching a high rate of 14.7% in May 2020. Despite the high interest rate, Fontana has experienced an increased in unemployment rate from 4.2% in February 2023 to 4.5% to June 2023 Retail Sales Are Increasing. Taxable sales are a major revenue source for cities. Due to the State government COVID -19 shutdown, taxable retail sales declined 3.9% from June 2019 to June 2020 within the City. During fiscal year 2021-22 sales tax increase by 10% from June 2021 to June 2022. For FY 2023, the City of Fontana taxable sales were up 6% higher than the same quarter one year ago
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Housing Market Steady Prices, Modest Sales. The Inland Empire’s housing markets, as a whole, remain stuck in a narrow band of home sales that has gone on nine years. Lack of supply combined with increased demand and barriers for consumers to obtain financing continue to drive price escalation in San Bernardino County, where home prices increased 1% from June 2022 to June 2023. Affordability remains high in the Inland Empire, when compared to other southern California communities. coastal communities, where 43-54 percent of home buyers can afford the median priced home. Lack of affordability in the coastal communities, where only 24-27 percent of wage earners can afford a median priced home, will continue to drive homebuyers inland.

The median home prices for the City of Fontana declined slightly in Fiscal Year 2023 and were down slightly 1.65% for existing homes with average price around $601,965.

Fontana has competitive advantages related to its neighbors in the Inland Empire as it continues to be the westernmost city with available space to accommodate both residential and industrial development. It offers new residents housing cost advantages and companies locating here can benefit from lower labor costs. Fontana continues to experience a robust level of new housing permits for the last 3 years and, based on the availability of land and redevelopment opportunities, expects that trend to continue over the next decade.

The Ventana Specific Plan is coming to fruition. Planning Area 6 of the Ventana Specific Plan brings a taste of Europe to Fontana.

The project consists of 257 units and will have many recreational amenities including a fitness center, pool area, recreation room, and open plazas. Paseos and walkways will weave through the project to give it an old-world feel. The project is located at the Interstate 15 and Duncan Canyon Road.

The center of San Bernardino County’s growth is moving west into Fontana. The population has grown 7 percent over the past ten years and, at 213,851 Fontana is the second largest city in San Bernardino County, the third largest in the Inland Empire, and twentieth in the State.

With the ever-increasing demand for housing and ongoing addition of new residential units in the City, it is expected that the City’s population will exceed 280,900 by the year 2040.

The City of Fontana continued to see a number of significant events during the past year
Population Growth
220,000 5%
190,000 4%
160,000 3%
130,000 2%
100,000 1%
70,000 0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

POPULATION

GROWTH RATE
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Significant Events of FY 2022-23
■ Downtown Parking Structure: The City will construct a parking structure within the existing parking lot of the City’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335 which shall consist of a 4-tier parking structure allowing for approximately 320 parking spaces and two elevators.

The project will also include various onsite and offsite improvements to include driveway approaches, RV parking and pull through area, landscaping, and other improvements. The intent of the structure is to serve as both public and employee parking for the civic campus as well as the planned downtown area which is to be revitalized. The estimated completion date is November 2024.
■ Energy Services Project (Parks): The city completed the energy services project a $3.6 million in FY 2023 that included upgrading and replacing lighting at 30 different parks with new Light Emitting Diode (LED) fixtures. .
■ South Fontana Sports Park: Construction is underway on this 18-acre sports park with four lighted artificial turf fields for football and soccer use. The project will include parking, restroom, snack bar, playground and storage facilities. It’s located on Santa Ana Avenue between Cypress Avenue and
Juniper Avenue. Construction begins March 2022, and was completed in FY2022/23.
■ 9/11 Memorial Monument: City Council identified funds for the 9/11 memorial monument project. The actual steel beam recovered from the World Trade Center site will be used as a main piece of the monument. The 18’ long beam will be resurrected to its upright position as it once stood at the World Trade Center. The upright position of the beam speaks to resilience, perseverance, and strength against tragedy. The conceptual design has been approved and the detailed design is currently underway. The project design has been completed. Construction is projected to begin in FY 2024-2025.
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■ Fire Station #80: The training center (Phase 1) will be approximately 3,300 square feet with a training tower that will be incorporated into a future Fire Station #80 (Phase 2) planned for the same site (Cherry and So. Highland Avenues). Design and environmental phases began in March 2021 with construction expected to commence in late 2023. ■ American Rescue Plan Act (ARPR) Grant: To aid the country in the recovery from the government imposed COVID-19 lockdown, the U.S. Treasury issued the $350 billion American Rescue Plan Act (ARPA). The City of Fontana was allocated $50.3 million which includes various spending categories such as: support public health expenditures; address negative economic impacts; serve the hardest-hit communities and families; replace lost public sector revenue; provide premium pay for essential workers; and invest in water, sewer, and broadband infrastructure. The City Council has approved various eligible projects within these categories.
■ Pavement Rehabilitation Program: Based on the new Citywide 7-Year Pavement Management Plan, several pavement projects are expected to be completed in 2023/24 using various funds, including Road Maintenance and Rehabilitation Act (RMRA) funding.
■ City Hall Renovation Project - Phase I (Fire Annex): The City will demolish the existing Fire administration Building located at 17001 Upland Avenue, Fontana, CA 92335 and shall construct a two-story municipal building with first tier parking structure and second tier office spaces. Each tier will have a footprint of approximately 30,000 square feet with one vehicle entrance and exit located on Upland Ave. just west of Wheeler Ave. The City anticipates 65 parking spaces to be within the parking structure portion of the building. The intent of the building is to serve as office space for city staff as well as both public and employee parking for the civic campus. The estimated completion date is March 2025.

Financial Challenges Ahead
While the City recovers from the COVID-19 pandemic, there are other challenges that lie ahead. The following is a summary of challenges that the City will face over the next few years.  Inflation. After decades of relatively low inflation, the prices of many goods and services experienced rapid increases beginning in 2021. The Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Consumer Price Index for All Urban Consumers (CPI-U) saw increases of 8.6% and 7.3% in 2022 and 2023 respectively. Although opinions differ with respect to the forecasted inflation, the consensus is a general cooling of inflation over the next year  State Budget. The Governor’s May Revision for the fiscal year 2023/24 budget of $306 billion, forecasts an estimated deficit of up to $34.5 billion, a drastic difference as compared to the windfalls in recent years. The administration proposes to resolve the shortfall through a series of spending reductions and cuts, delays or deferrals of spending authorized in earlier years, as vi
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well as through internal borrowing and fund shifts. California’s recovery in total jobs as well as its unemployment rate continue to lag the nation. According to the U.S. Bureau of Labor Statistics and the California Employment Development Department, as of May 2023 the golden state has an unemployment rate of 4.5% or 883 thousand people. California is listed in the top 10% of highest unemployment in the country. The state is facing a labor shortage as employers struggle to hire qualified candidates
 California Public Employees Retirement System (CalPERS). At the July 2021 board meeting, CalPERS further reduced the discount rate assumption from 7.15% to 6.9% due to the Funding Risk Mitigation Policy, requiring the reduction of the discount rate in years of high investment returns. CalPERS also adopted new actuarial assumptions which included longer life expectancies and earlier retirement ages. the City’s PERS Rate Stability Reserve has a balance of $10.7 million.  Housing Market & Interest Rates. Housing prices increased dramatically at the beginning of the pandemic by 41% from February 2020 to April 2022. However, higher prices coupled with higher mortgage rates caused the demand for home purchases to dramatically decrease to nearly 40% below pre-pandemic levels while house prices remain 27% above their prepandemic levels. These factors all contribute to a forecasted decrease in home prices through 2023.  Unfunded Liability. The City’s CalPERS net pension and OPEB liabilities are $204.4 million and $18.9 million, respectively, as of June 30, 2023. The Annual required contribution to fund the City’s retiree health program for both current and future retiree has been calculated to be $2.4 million (excludes implicit subsidy amount). The retiree health program has been closed to new hires since 1990.
 Property Value Reassessments. The annual Consumer Price Index (CPI) adjustment which provides the basis for changes in assessed valuations state-wide continues at the 2% level, although properties that have enjoyed Prop 8 valuation reductions are not subject to this limit.
 Capital Reinvestment Program. Since 1996/1997, the City Council has been investing a portion of the annual General Fund Budget back into the community in the form of capital projects including streets and sidewalks, with a goal of 10%. Amounts allocated in the FY 2023/24 and 2024/25 Operating Budgets from various funds to this critical area total of $13.8 million and $11.8 million, respectively.
 Proposition 218. On November 5, 1996, the California electorate approved Proposition 218 affecting a change to the California State Constitution by making numerous changes to local government finance law. This measure impacts the generation and use of many fundamental revenue sources including fees, charges, assessments, and taxes. This proposition also changes the methods by which certain assessments and taxes are challenged by the electorate. Both the FY 2023/24 and the FY 2024/25 Operating Budget fully comply with the provisions of Proposition 218.  Services and Growth. The City of Fontana has experienced significant growth over the past several years. With this growth comes the need to service a growing community. The funding sources for these additional services are revenue growth and the Municipal Services Fiscal Impact Fee Program (MSFIF).

Financial Information. Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with U.S. generally accepted accounting principles. 559
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Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurances recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

This report consists of management’s representations concerning the finances of the City. As a result, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects.

Budgetary controls. The City maintains budgetary controls, the objective of which is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, special revenue funds, debt service funds, capital project funds, and all the proprietary funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbrances generally are re-appropriated as part of the following year’s budget.

Regarding long-term financial planning, as of June 22, 2021, the City Council adopted the City’s first biennial budget for fiscal years 2021-2022 and 2022-2023. Additionally, as a companion to approving the budget plan, a seven-year Capital Improvement Plan was presented to the City Council. The seven-year plan links anticipated expenditures for infrastructure development with community needs and desires and provides a citywide perspective of recommended projects and proposed funding sources. The Capital Improvement Plan was finalized in June 2021 and totaled $806.8 million for the seven-year fiscal period ending June 30, 2028. The seven-year Capital Improvement Plan has been submitted and annually updated, in its present form, since 1991, for effective long-range planning purposes. It is City Management’s belief that these two plans give City Council members an expanded opportunity to set policy and provide direction for implementation, resulting in improved management efficiency and improved financial results.

Debt administration. At June 30, 2023, the City had a number of debt issues outstanding as shown in detail in the notes to the financial statements. The City’s ratios of net bonded debt to assessed valuation and the amount of net general bonded debt per capita are useful indicators of our debt position to management, citizens, and investors.

At June 30, 2023, the City has $51.3 million in authorized, outstanding tax supported general obligation bonds with no authorized but unissued general obligation bonds. This level of general obligation debt is well below the legal limit of $4,053 million, or 15% of assessed valuation.

Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for the fiscal year ended June 30, 2020. This was the twenty-eighth consecutive year that the City has received this award. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government unit and its 560
management. In order to be awarded this certificate, a governmental unit must publish an easily readable and efficiently organized annual comprehensive financial report, with contents that conform to program standards. These reports must satisfy both generally accepted accounting principles and applicable legal requirements. We believe our current Annual Comprehensive Financial Report conforms to the Certificate of Achievement program requirements The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City for its Popular Annual Financial Report for the fiscal year ended June 30, 2019. This was the twentieth consecutive year the city has received this award. This is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. The Award is for a period of one year only.

The City's Statement of Investment Policy was awarded a Certification of Excellence Award by the Association of Public Treasurers of the United States and Canada (APT US&C) in 2000, 2003 and 2006. The award is issued in recognition of written investment policies which meet specific criteria set forth by the Association such as selection of suitable investment instruments, custody and safekeeping, internal controls, and reporting.

Preparation of this annual comprehensive financial report could not have been accomplished on without the support and cooperation of all City of Fontana staff. These dedicated members assisted and contributed to its preparation. Special recognition is given to the Finance staff. Their efforts made it possible to improve the quality of the information being reported to the citizens, the City Council, and other users on a timely basis. Appreciation is also expressed to the Mayor, the City Council, the City Treasurer and the City Manager for their interest and support in planning and conducting the financial activities of the City in a responsible and responsive manner.

Sincere! -�-
Jessica Brown
Chief Financial Officer
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Matthew C. Ballantyne City Manager
Phillip Burum Deputy City Manager / Development Services Ramon Ebert Deputy City Manager / Administrative Services Jennifer Barcenas Innovation & Technology Director
Jeffrey Baughman Director of Building & Safety
Jeffrey Birchfield Fire Chief
Jessica Brown Chief Financial Officer
Michael Dorsey Chief of Police
Gia Kim Public Works Director / City Engineer
Patty Nevins Director of Planning
Daniel Schneider Community Services Director
Rakesha Voss Director of Human Resources & Risk Management Vacant Deputy City Clerk

CITY OF FONTANA

LIST OF PRINCIPAL OFFICIALS

ELECTED OFFICIALS
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
Phillip Cothran, Council Member
John B. Roberts, Council Member
Jesus Sandoval, Council Member
Janet Koehler-Brooks, City Treasurer
Germaine Key, City Clerk

ADMINISTRATIVE STAFF
X
563
564
Citizens of Fontana
Elected Officials
Mayor
City Council
City Treasurer
City Clerk
City Manager
Matthew C. Ballantyne
City Attorney
Administrative
Services
Ramon Ebert
Deputy City Manager
Police
Michael Dorsey
Police Chief
Development
Services
Phillip Burum
Deputy City Manager
Human Resources
Rakesha Thomas
Finance
Jessica Brown
Community Development
Patty Nevins
Community Services
Daniel Schneider
Building & Safety
Jeffrey Baughman
Public Works/City Engineer
Gia Kim
Fire Protection
District
Jeffrey Birchfield
Fire Chief
Office of the City Clerk
Vacant
Innovation Technology
Jennifer Barcenas
2022/2023
Organizational Chart
City-wide
xi
565
Independent Auditor’s Report
City Council
City of Fontana
Fontana, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fontana (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, the Budget to Actual Statement of the General Fund, the Budget to Actual Statement of the Fire Protection Special Revenue Fund, the Budget to Actual Statement of the Housing Authority Low/Mod Housing Fund Special Revenue Fund, and the Budget to Actual Statement of the Economic Stimulus Special Revenue Fund, of the City of Fontana as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 566
Empasis of Matter
The financial statements for the year ended June 30, 2023, reflect a prior period adjustment as described further in Note 19 to the financial statements. Our opinion is not modified with respect to this matter.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, no such opinion is expressed.
2 567
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Schedules of Changes in Net Pension Liability and Related Ratios During the Measurement Period, Schedules of Pension Plan Contributions, Schedule of Changes in Net OPEB Liability and Related Ratios during the Measurement Period, and Schedules of Plan Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budget to actual schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budget to actual schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and budget to actual schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 568
Report on Summarized Comparative Information
We have previously audited the City of Fontana’s 2022 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated July 13, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2022 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
February 20, 2024
4 569
5 570
MANAGEMENT’S DISCUSSION AND ANALYSIS
This narrative overview and analysis of the City of Fontana’s financial activities for the fiscal year ended June 30, 2023 is presented by the management of the City of Fontana to readers of the City’s financial statements. Management encourages readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report and the City’s basic financial statements in the financial section of this report.

FINANCIAL HIGHLIGHTS
 The City’s governmental and business-type activities resulted in total assets and deferred outflows of resources exceeding its liabilities and deferred inflows of resources by $1,172.0 million as of June 30, 2023 (“current fiscal year”). Of this amount, $280.6 million represents the portion for restricted uses as specified by entities outside of the City government, the amount for unrestricted uses in accordance with finance-related legal requirements as reflected in the City’s fund structure is in a positive position at $122.6 million, and $768.8 million accounts for investments in capital assets in excess of related debt.  The City’s total net position increased $86.6 million during the current fiscal year. The increase is primarily due to the $11.7 million increase in property taxes, $2.4 million increase in sales tax and $30.2 million increase in operation contributions and grants. In addition, our overall expenses decreased by $5.7 million compared to FY2022.
 As of the fiscal year end, the City’s Governmental Funds ending fund balances were $575.2 million, an increase of approximately $15.9 million or 2.84% from the prior fiscal year. Of this balance, $45.7 million is in nonspendable, $280.6 million restricted for use set by various legal requirements, $32.4 million is committed for economic uncertainty and $216.4 million is either assigned or unassigned based on the nature of the funding source.
 The General Fund’s fund balance at the close of the current fiscal year was $117.3 million, a decrease of approximately $6.8 million or 5.5% from the previous year. The General Fund’s fund balance consists of $24.1 million in nonspendable and $12.4 million in restricted fund balance, $32.4 million in committed for the purposes of Economic uncertainty, and $48.4 million in assigned and unassigned fund balances.

See note 15 for further discussion.
 The City’s business-type activities yielded operating revenues of $27.4 million, while operating expenses amounted to of $26.3 million.  General Fund revenues were $9.9 million more than the final budget, and expenditures were $15.4 million less than the final budget. 6 571

OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements include three components: government-wide financial statements; fund financial statements; and notes to the basic financial statements.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, community development, community services and engineering. The business-type activities of the City include sewer and water operations. 7 572
Component units are included in the basic financial statements and consist of legally separate entities for which the City is financially accountable and that have the same governing board as the City. The blended component units include the Successor Agency of the Former Fontana Redevelopment Agency, the Fontana Public Financing Authority, the Fontana Public Facilities Financing Authority, the Fontana Housing Authority, the Fontana Industrial Development Authority, the Fontana Community Foundation and the Fontana Fire Protection District. The redevelopment agency was dissolved as of January 31, 2012 through the California Supreme Court decision on Assembly Bill 1X26. See Note 17 of the notes to the financial statements for more information on the dissolution.

The government-wide financial statements can be found on pages 21 and 22 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Such information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to the governmentwide financial statements in order to facilitate this comparison between governmental funds and governmental activities.

The City maintains 53 individual governmental funds for financial reporting purposes. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund, the Fire Protection District Special Revenue Fund, the Housing Authority Special Revenue Fund, the Economic Stimulus Special Revenue Fund, the Capital Reinvestment Fund, the Future Capital Projects Fund, the Sewer Expansion Fund, the Community Facility Districts Fund, and the Traffic Mitigation Capital Project Fund, which are considered to be major funds. Data for the other 44 governmental funds are combined in a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the non-major funds supplementary section of this report.

The City adopts an annual appropriated budget for its general fund, special revenue funds, debt service funds, and capital project funds. A budgetary comparison statement has been provided for the General Fund, the Fire Protection District Special Revenue Fund, the Housing Authority Low/Mod Housing Special Revenue Fund, and the Economic Stimulus Special Revenue Fund in the basic financial statements and for the remaining special revenue funds, the debt service funds, and the capital project funds in the supplementary information.

The governmental fund financial statements can be found on pages 23-30 of this report. 8 573
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Sewer and Water Operations. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions.

The City uses an internal service fund to account for its fleet of vehicles; because this service predominantly benefits governmental rather than business-type functions, it has been included with governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements can be found on pages 31-33 of this report.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statements can be found on page 34-35 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 36-95 of this report.

Government-wide Financial Analysis

Invested in capital
assets, net of related
debt 65%
Restricted:

Community
development 13%
Restricted: Public
safety 4%
Restricted: Public
works 3%
Restricted: Debt
Service 0%
Restricted:

Government-access
channel 0%
Pension Trust 1%
Restricted: Capital
projects 4%

NET ASSETS BY TYPE
9 574
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The City’s net position is comprised of Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position. As of June 30, 2023, assets exceeded liabilities by $1,172.0 million.

The City’s net investment in capital assets (land, buildings, infrastructure, machinery, equipment, and vehicles), less any related debt used to acquire those assets that is still outstanding, is $768.8 million. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position ($280.6 million) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $122.62 million may be used to meet the government’s ongoing obligations to citizens and creditors, unrestricted net position is in a positive position at the end of the fiscal year.

Net Position
(000 omitted)
2023 2022 2023 2022 2023 2022
$ 697,543 729,081 $ 30,918 $ 31,702 $ 759,999 $ 729,245 $ 715,583 746,447 64,431 59,324 810,878 774,907
1,475,528 1,413,126 95,349 91,026 1,570,877 1,504,152
44,198 79,409 2,294 1,114 81,703 45,312
278,868 311,143 10,952 10,962 322,095 289,830
101,018 101,667 5,193 4,438 106,860 105,456
379,886 412,810 16,145 15,400 428,955 395,286
66,879 50,555 1,062 1,845 51,617 68,724
675,179 709,182 59,589 53,603 768,771 728,782
272,038 280,619 - 280,619 272,038
63,342 101,771 20,847 21,292 122,618 84,634
$ 1,010,559 1,091,572 $ 80,436 $ 74,895 $ 1,172,008 $ 1,085,454 $ Net investment in capital assets
Restricted
Unrestricted
Total net position
Deferred outflows of resources
Long-term liabilities outstanding
Other liabilities
Total liabilities
Deferred inflows of resources
Net position:

Total assets
Governmental Activities Business-Type Activities Total
Current and other assets
Capital assets
10 575
Changes in Net Position
(000 omitted)
2023 2022 2023 2022 2023 2022
Revenues:

Program Revenues:

Charges for services 73,478 $ 73,330 $ 27,542 $ 26,819 $ 101,020 $ 100,149 $ Operating grants and contributions 51,038 20,860 - 51,038 20,860 Capital grants and contributions 22,714 27,263 7,630 337 30,344 27,600 General Revenues:

Property taxes 95,731 84,070 - 95,731 84,070
Sales tax 59,102 56,727 - 59,102 56,727
Franchise taxes 11,118 9,749 - 11,118 9,749
Business license taxes 8,396 7,584 - 8,396 7,584
Transient occupancy taxes 1,303 1,374 - 1,303 1,374
Motor vehicle in lieu 301 459 - 301 459
Investment earnings 9,229 (10,525) 270 (749) 9,499 (11,274) Other 4,275 11,901 118 (177) 4,393 11,724
Contributions not restricted to specific programs 17,104 - - - 17,104 - Total revenues 353,789 282,792 35,560 26,230 389,349 309,022 Expenses:

General Government 32,753 40,459 - 32,753 40,459
Public Safety 109,638 111,899 - 109,638 111,899
Public Works 42,050 49,008 - 42,050 49,008
Community Development 24,088 5,492 - 24,088 5,492
Engineering 33,348 37,814 - 33,348 37,814
Community Services 10,394 13,344 - 10,394 13,344
Interest on long-term debt 2,134 2,134 112 2,134 2,246
Gain/(Loss) on sale of capital assets - - - -
Sewer - 26,360 24,542 26,360 24,542
Water - - - -
Total expenses 254,405 260,150 26,360 24,654 280,765 284,805 Change in net position before transfers 99,384 22,642 9,200 1,576 108,584 24,218 Transfers 3,659 2,949 (2,949) (3,659) - -
Change in net position 103,043 2,951 5,541 (1,373) 24,218 108,584 Net Position - beginning of year as restated 988,529 984,968 74,895 76,268 1,063,424 1,061,236 Net Position - end of year 1,091,572 $ 1,010,559 $ 80,436 $ 74,895 $ 1,172,008 $ 1,085,454 $ Governmental Activities Business-Type Activities Total

11 576
Governmental activities
The most significant revenues of the governmental activities are general taxes (49.6%), which include property taxes (27.1%), sales and use taxes (16.7%), and various other taxes (5.9%), and general revenues (8.7%), which include various other revenues (6.1%) and investment earnings (2.6%). Program revenues are 41.6% of the total revenues of the governmental activities, which include charges for services (20.8%), operating grants and contributions (14.4%), and capital grants and contributions (6.4%).

Public safety (police and fire) is the most significant (43.1%) of all governmental activities’ expenses, followed by Public works (16.5%), Engineering (13.1%), General government (12.9%), Community development (9.5%), Community services (4.1%) and interest on long-term debt (0.8%).

Included in these amounts is depreciation expense, which is 14.8% of the total expenses for governmental activities.

Governmental activities revenues increased by $71.0 million (25.1%) in the current fiscal year. The changes in revenues are a result of the following:
 General tax revenues increased by $16.1 million (10.1%) which is primarily due to increase in property tax revenue by $11.6 millions as a higher property valuation in FY 2023. Sale tax revenues increased by $2.4 (4.2%) million due to the rise in business activities within the city and inflation as well.
 General revenues (not including general taxes) increased by $29.0 million in FY 2023. This is primarily due to the donation of the Community Facilities District infrastructure by the developer which increased the other revenue by $9.3 million and $19.7 million increase Property taxes,

27.1%
Sales taxes,

16.7%
Franchise taxes,

3.1%
Business license
taxes, 2.4%
Transient
Occupancy
Taxes, 0.4%
Other, 6.1%
Charges for
services, 20.8%
Operating
contributions
and grants,

14.4% Capital
contributions
and grants,

6.4%

REVENUES BY SOURCE -

GOVERNMENTAL
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
Program Revenues
2023 Expenses

EXPENSES AND PROGRAM REVENUES -

GOVERNMENTAL ACTIVITIES
12 577
in our investment earnings as the City purchased more treasury securities at a higher yield interest rate and the Federal Reserve has put a pause on the rising interest.
 Charges for services increased by $0.1 million (0.20%) which is in alignment with the city projection  Operating contributions and grants increased by $30.2 million due to the City receiving more than 10 million dollar in federal Seizure grant, and the city recognizing more than 12 million worth ARPR grant from the unearned revenue.  Capital contributions and grants decreased by $4.5 million due to the decrease in capital grants received by the city.

Governmental activities expenses decreased by $5.7 million (2.2%) in the current fiscal year. The most significant changes in governmental expenses were:
 Community Services, Engineering, General government and public works, which were decreased by $22 million in total. This decrease is due to the OPEB contribution (government wide adjustment $26 million) the City made in FY 2022, for which it significant reduces our OPEB liability and OPEB expenses for FY 2023 across all our function expenses.

Business-type activities
Business-type activities net position increased by $5.5 million (7.4 percent) Business-type activities revenues for current year is in-line with prior year, showing an increase of $9.3 million.  Investment earnings increased by $1.31 million as a result of the Federal Reserve Board pause the rise in interest rate and the City bought some of the treasury securities at a higher interest rate yield.  Charges for services increased by $0.7 million primarily due to an increase in rates charged by other entities such as IEUA and City of Rialto that are collected by the city and passed through to the proper entities.  Capital contributions increased by $7.3 million due to the one time donation of the sewer system by the CFD developer for FY 2023..

Total expenses increased by $1.7 million is due to the increase in EDU (Equivalent Dwelling Unit) charge fees compared to prior year. 13 578
Investment
earnings
1%
Charges for
services
77%
Capital
contributions and
grants
22%

REVENUES BY SOURCE -

BUSINESS-TYPE ACTIVITIES
Financial Analysis of the City’s Funds
The City of Fontana employs Fund Accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, assigned and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $575.2 million, a decrease of $15.9 million (2.8%) from the previous year. Of this total amount, $216.4 million constitutes assigned or unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is either nonspendable ($45.7 million), restricted ($280.6 million) or committed ($32.4 million) and is not available for new spending. The nonspendable fund balance consists of 1) land held for resale of $10.0 million, 2) deposits on account of $0.1 million, 3) inventories held ($1.3 million), and 4) loan receivables ($34.3 million). Restricted fund balance includes amounts that are constrained on the use of the resources by outside parties and committed fund balance includes amounts that are constrained on the use of the resources pursuant to City Council formal action. For additional details of the City’s fund balances, please refer to Note 15 in the Notes to the Basic Financial Statements.
-
10,000,000
20,000,000
30,000,000
Sewer Water
Program Revenues
Expenses

EXPENSES AND PROGRAM REVENUES -

BUSINESS-TYPE ACTIVITIES
14 579
The general fund is the chief operating fund of the City. At the end of the current fiscal year, the assigned fund balance of the general fund was $3.1 million, while total fund balance reached $117.3 million, which was $6.8 million or 5.5% lower than the prior year. The City’s management assigns fund balance to a particular function, project or activity and may also be assigned for purposes beyond the current year. However, assigned fund balance is available for appropriation at any time. The General Fund has committed fund balance of $32.4 million for economic uncertainty.

General fund revenues increased by $15.7 million (11.5%) from the previous fiscal year; this increase is primarily due to:
 Property Tax in Lieu of VLF was increased by $3.0 million due to the increase in assessed valuation and continued growth in the city.  Sales tax revenue increased by $2.4 million (4.2%) due to a robust and resurgent economy emerge as the city saw sale tax increase from rising business development within the city
 Franchise fee revenue increased by $1.4 million because of increase in both residential and commercial development activities in the city  Investment earnings decreased by $6.3 million due to Federal Reserve Board put a pause on the rise of the interest rate and the city was able to purchase treasury securities that has a much higher interest yield resulting an increase in unrealized gain.

General fund expenditures increased by $6.3 million (4.7%) from the previous fiscal year, the increased costs were primarily due to:
 Due to the increase in personnel cost under public safety (police) and the return of part-time staff as facilities reopen and programs resume.

The Fire Protection District special revenue fund has a fund balance of $26.4 million. The Fire Protection District accounts for all of the operating activities of the Fire District. The fund balance decreased by $12.0 million during the current fiscal year; current year revenues and transfer in were $61.8 million and total expenditures and transfers out were $73.8 million. Revenues increased $9.9 million (19.6%) primarily as a result of a higher property valuation assessment. Expenditures increased $3.1 million (7.7%) primarily as a result in increased contract costs with the San Bernardino County Fire Department for fire protection services due to inflation. Transfers out increased by $25.7 million during the year due to the one-time transfer for the fire annex project in the amount of $8 million and the one-time transfer for the Fontana Cap Closure project in the amount of $9 million. In addition, there was a lease agreement established for the use of the fire station by the fire protection district in which $5 million dollar was transferred from the fire protection district to city capital project fund to repay the lease amount that was owed in the past.

The Housing Authority special revenue fund has a fund balance of $85.9 million. The fund balance decreased by $0.3 million during the fiscal year. which is in aligned with the City’s expectations.

The Capital Reinvestment fund has a total fund balance of $26.0 million. The fund balance increased during the current fiscal year by $10.8 million due a one-time transfer in of $1.5 million for the center project, $3.2 million for downtown parking structure as well as $2.4 million for various projects.

The Future Capital Projects fund has a total fund balance of $42.0 million. The fund balance decreased during the current fiscal year by $0.6 million due to the normal cost allocation which is in aligned with the city’s expectation.

The Sewer Expansion Fund has a total fund balance of $0.35 million. The fund balance decreased slightly during the current fiscal year by $0.02 million which is in aligned with the city expectations. 15 580
The Traffic Mitigation capital project fund has a fund balance of $21.8 million. The fund balance increased during the current fiscal year by $6.4 million as a result of increased investment earning as the federal reserve put a pause on the interest rate hike and the city was able to purchase treasury securities at much higher interest rate.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the Sewer and Water Operations at the end of the year amounted to $18.9 million. The total increase in net position was $5.4 million, primarily due to one-time donated CFD infrastructure asset in the amount of $6.8 million.

General Fund Budgetary Highlights
Over the course of the year, the City Council revised the City’s budget on a quarterly basis. The Council approves supplemental appropriations throughout the year based on individual items that are brought forward by various departments.

Revenues:

During the year, the original General Fund revenue budget was amended to increase revenues by $15.6 million. The increase is primarily due to:
 an increase in sales tax of $2.4 million, because of the conservative budget originally adopted due to COVID-19, the increase in inflation as well as continue growth of business in Fontana
 an increase in Franchise tax of 1.4 million was due to increase in both residential and commercial activities within the City  an increase in property tax revenue of $0.4 million due to increased assessed property valuation  Property Tax in Lieu of VLF was increased by $3.0 million due to the increase in assessed valuation and continued growth in the City General Fund actual revenues of $151.5 million were $9.9 million more than the final budget of 141.6 million. The positive variance to the final budget was primarily due to:
 higher than expected tax revenues ($10.4 million) compared to the final budget, which was increased by $10.7 million from the adopted budget as a result of higher sale tax, franchise tax and property tax  higher than expected investment earnings ($1.0 million) compared to the final budget, which was increased by $0.1 million from the adopted budget due to Federal Reserve putting a pause on the rising interest rate and the city was able to purchase more treasury securities at a higher interest rate thus resulting a higher investment unrealized gain.  higher than expected fine and forfeitures ($0.2 million)  lower than expected Licenses and permit ($0.5 Million  lower than expected intergovernmental revenue ($0.2 million)  lower than expected charges for services ($0.5 million) 16 581
Expenditures:

During the year, the original General Fund expenditure budget was amended to increase appropriations by $21.1 million, the increase in appropriations was due to various requests throughout the fiscal year such as:
 increase of police department personnel cost $3.3 million and an increase 1.1 million of the other professional service cost  increase of $2 million for IT department for various computer hardware, Audio/Visual holding and $0.4 million increase in other professional services such as digital service.
 increase of $0.8 million for Human resources under other professional services and $0.5 increase in various settlement claims  increase of $1.2 million for engineering for additional capital acquisition and other professional services General Fund expenditures were less than budgeted. Of the total appropriations of $157.2 million, approximately 9.8%, or $15.4 million were unspent. The budgetary savings included IT department personnel cost, computer hardware cost, application cost, other professional service cost (total $4.1 million), personnel cost and capital cost in the police department (total $3.9 million), personnel cost in the community development (total $1.6 million) and HR admin cost and risk management cost (total $1.6 million). The aforementioned savings will be carried over to next fiscal year.

Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for governmental and business-type activities as of June 30, 2023, amounts to $810.9 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, vehicles and infrastructure (roads, highways, sewer and storm drain systems). The total change in the City’s investment in capital assets net of accumulated depreciation for the current fiscal year was an increase of $36.0 million (4.6%). Major capital asset events during the current fiscal year included the following:
 Donated asset from the developer such as the CFD 71 Sierra Crest, CFD 80 Bella Strada, CFD 81 Gabriella, CFD 88 Sierra Crest II and CFD89 Belrose in the amount of $9.7 million were received by the City.  There was an increase in activities in various CIP projects such as the Sierra: Foothill-Baseline ($7.5 million) and Fire station #81 ($4.4 million).
 The City had a onetime purchase of various new lands in the amount of $9.2 million.  Accumulated depreciation at year-end is $38.8 million higher than the prior year. 17 582
Capital Assets
(Net of depreciation)
(000 omitted)
2023 2022 2023 2022 2023 2022
Land 175,066 $ 161,362 $ - $ 175,066 $ 161,362 $
Building and improvements 171,502 162,291 1,060 1,106 172,562 163,397 Machinery and equipment 4,491 4,248 13 7 4,504 4,254
Vehicles 14,442 13,968 - 14,442 13,968
Infrastructure 309,816 313,297 61,844 57,735 371,661 371,032 Intangibles 2,864 2,929 - - 2,864 2,929
Right to use assets 106 106 - - 106 106
Construction in progress 61,819 52,383 1,514 477 63,333 52,860 Easements 6,340 4,996 - 6,340 4,996
Total 746,447 $ 715,581 $ 64,431 $ 59,324 $ 810,878 $ 774,905 $ Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 6 in the footnote disclosure. 18 583
Long-term debt. At the end of the current fiscal year, the City’s total long-term debt outstanding is $316.0 million. This amount is comprised of $204.4 million net pension liability, $18.9 million other post-employment benefits liability, $51.3 million of lease revenue bonds which are secured by future revenue sources from the lease of City property and $41.4 million of various other loans and obligations payable.

Outstanding Debt
(000 omitted)
2023 2022 2023 2022 2023 2022
$ 53,015 51,255 $ - $ 51,255 $ 53,015 $
118,172 199,151 5,275 2,674 204,426 120,847
20,654 22,585 - - 22,585 20,654
11,099 11,213 237 242 11,450 11,341
66,534 18,295 598 2,325 18,893 68,859
2,959 2,531 4,842 5,721 7,373 8,679
Total outstanding debt 305,029 $ 272,433 $ 10,952 $ 10,962 $ 315,982 $ 283,395 $ Other post employment benefits liability
Other debt
Governmental Activities Business-Type Activities Total
Lease revenue bonds
Net pension liability
Claims and judgments
Compensated absences
Additional information on the City’s long-term debt can be found in Note 8 in the footnote disclosure.

Economic Factors and Next Year’s Budget and Rates
In preparing the budget for Fiscal Year 2023-24, management’s goal was to produce an operating budget that adhered to City Council goals and objectives with an emphasis on cost containment. Expansion of the City’s economic base continues to be a City Council priority.

The Operating Budget for Fiscal Year 2023-24 is financially balanced and includes:
- General Fund designation of fund balance for contingencies of 25% of recurring appropriations. - A net increase in budgeted revenues of $7.5 million (or +5.4%) in the General Fund as compared to the prior year’s final budget is primarily attributed to the following:
 An increase in sale tax revenue of $1.8 million projecting a robust recovery from pandemic projections  An increase in property tax revenue of $6.5 million assuming an anticipated growth of 19.5 percent in assessed valuations  An increase in recreation revenue of $0.1 million projecting facilities and programs will be opened its entirety 19 584
- A net increase in budgeted expenditures of $2.9 million or (+2.3%) in the General Fund as compared to the prior year’s final budget is primarily attribute to contractual obligations related to full-time City staff and the return of part-time staff as facilities reopen and programs resume.

Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Fontana’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City’s Finance Department at the City of Fontana, 8353 Sierra Avenue, Fontana, CA 92335.
20 585
Exhibit A
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments 470,736,779 $ 23,515,307 $ 494,252,086 $ Receivables:

Accounts 4,068,963 1,232,244 5,301,207
Assessments 540,011 - 540,011
Interest 7,234,943 146,152 7,381,095
Loans 82,673,369 3,943,383 86,616,752
Loans to Successor Agency 23,599,749 3,305,829 26,905,578 Allowance for doubtful accounts (358,838) (3,305,829) (3,664,667) Leases 17,926,621 - 17,926,621
Prepaid expenses - 3,888 3,888
Internal balances (1,909,088) 1,909,088 -
Due from other governments 32,002,972 137,474 32,140,446 Inventories 1,422,307 30,953 1,453,260
Deposits 141,317 - 141,317
Land held for resale 10,029,872 - 10,029,872
Restricted assets:

Cash with fiscal agent 80,971,629 - 80,971,629
Capital assets not being depreciated 243,224,955 1,513,666 244,738,621 Capital assets, net of depreciation 503,222,125 62,916,953 566,139,078 Total assets 1,475,527,686 95,349,108 1,570,876,794
Deferred Outflows of Resources:

Deferred outflows of resources - pension related 65,675,635 1,844,643 67,520,278 Deferred outflows of resources - OPEB related 13,733,421 449,063 14,182,484 Total deferred outflows of resources 79,409,056 2,293,706 81,702,762 Liabilities:

Accounts payable 18,253,130 4,313,599 22,566,729
Deposits payable 5,930,046 805,131 6,735,177
Interest payable 584,817 30,538 615,355
Due to other governments 33,553,032 - 33,553,032
Unearned revenue 42,633,331 - 42,633,331
Retentions payable 712,369 43,611 755,980
Noncurrent liabilities:

Due within one year 15,298,421 941,917 16,240,338
Due in more than one year
Net pension liability 199,150,942 5,274,891 204,425,833 OPEB liability 18,294,557 598,205 18,892,762
Other 78,399,120 4,137,412 82,536,532
Total liabilities 412,809,765 16,145,304 428,955,069
Deferred Inflows of Resources:

Deferred inflows of resources - pension related 1,160,109 9,323 1,169,432 Deferred inflows of resources - OPEB related 32,183,030 1,052,338 33,235,368 Deferred inflows of resources - Leases 17,211,456 - 17,211,456 Total deferred inflows of resources 50,554,595 1,061,661 51,616,256 Net Position:

Net investment in capital assets 709,182,502 59,588,417 768,770,919 Restricted for:

Community development 144,022,279 - 144,022,279
Public safety 43,204,205 - 43,204,205
Public works 35,292,911 - 35,292,911
Debt service - - -
Government-access channel 1,703,897 - 1,703,897
Pension Trust 10,694,317 - 10,694,317
Capital projects 45,701,294 - 45,701,294
Unrestricted 101,770,977 20,847,432 122,618,409
Total net position 1,091,572,382$ 80,435,849$ 1,172,008,231 $ See accompanying notes to financial statements

CITY OF FONTANA
Statement of Net Position
June 30, 2023
21 586
Exhibit B
Operating Capital
Charges for Contributions Contributions Governmental Business-type Expenses Services and Grants and Grants Total Activities Activities Total General government:

City council and commissions 1,364,715 $ - $ - $ - $ - $ $ (1,364,715) $ - $ (1,364,715) City administration 2,777,150 - 190,360 1,250,894 1,441,254 (1,335,896) - (1,335,896) Management services 10,118,658 1,708,105 8,862,911 54,625 10,625,641 506,983 - 506,983 Information technology 5,693,347 - 379,144 - 379,144 (5,314,203) - (5,314,203) Human resources 12,798,987 6,448,137 - - 6,448,137 (6,350,850) - (6,350,850) Public safety:

Police 65,854,441 1,290,125 17,512,543 - 18,802,668 (47,051,773) - (47,051,773) Fire 43,783,899 1,163,728 - - 1,163,728 (42,620,171) - (42,620,171) Public works 42,050,361 24,873,278 11,088,820 12,549,995 48,512,093 6,461,732 - 6,461,732 Community development 24,087,763 24,009,166 5,340,857 1,256,453 30,606,476 6,518,713 - 6,518,713 Community services 10,394,270 3,823,376 6,509,682 - 10,333,058 (61,212) - (61,212) Engineering 33,348,492 10,162,983 1,153,991 7,601,622 18,918,596 (14,429,896) - (14,429,896) Interest on long-term debt 2,133,651 - - - - (2,133,651) - (2,133,651) Total governmental activities 254,405,734 73,478,898 51,038,308 22,713,589 147,230,795 (107,174,939) - (107,174,939) Business-type activities:

Sewer 26,260,033 27,542,299 - 7,630,458 35,172,757 - 8,912,724 8,912,724 Interest on long-term debt 101,463 - - - - - (101,463) (101,463) Total business-type activities 26,361,496 27,542,299 - 7,630,458 35,172,757 - 8,811,261 8,811,261 Total functions/programs 280,767,230 $ 101,021,197 $ 51,038,308 $ 30,344,047 $ 182,403,552 $ (107,174,939) 8,811,261 (98,363,678) General revenues:

Taxes:

Property taxes, levied for general purpose 95,730,662 - 95,730,662 Sales taxes 59,102,489 - 59,102,489
Franchise taxes 11,118,103 - 11,118,103
Business license taxes 8,395,990 - 8,395,990
Transient occupancy taxes 1,302,569 - 1,302,569
Total taxes 175,649,813 - 175,649,813
Intergovernmental, unrestricted:

Motor vehicle in lieu 301,474 - 301,474
Investment earnings 9,228,551 270,136 9,498,687
Other 4,274,678 117,885 4,392,563
Contributions not restricted to specific programs 17,103,880 - 17,103,880 Transfers 3,659,260 (3,659,260) -
Total general revenues and transfers 210,217,656 (3,271,239) 206,946,417 Change in net position 103,042,717 5,540,022 108,582,739 74,895,827 1,063,425,492 988,529,665
Net position at end of year 1,091,572,382 $ 80,435,849 $ 1,172,008,231 $ Governmental activities:

See accompanying notes to financial statements

CITY OF FONTANA
Statement of Activities
Year Ended June 30, 2023
Program Revenues Net (Expense) Revenue and Changes in Net Assets Functions/Programs
Net position at beginning of year, as restated (see note 19) 22 587
Exhibit C
Fire Future Community Other Total
Protection Housing Economic Capital Capital Sewer Facilities Traffic Governmental Governmental General District Authority Stimulus Reinvestment Projects Expansion Districts Mitigation Funds Funds Assets:

Cash and investments 58,277,222$ 26,206,288$ 14,616,541$ 38,182,155$ 20,354,496$ 6,941,116$ 25,257,788$ 22,089$ 48,676,325$ 215,906,503$ 454,440,523$ Receivables:

Accounts 3,861,306 46,525 - - 12,065 - 25,929 - 2,087 118,366 4,066,278 Assessments - - - - - - - - - 540,011 540,011
Interest 428,870 132,195 4,106,248 - 102,926 35,013 127,409 - 245,540 1,974,538 7,152,739 Loans - - 71,852,645 - 125,000 - - - - 10,695,724 82,673,369 Loans to Successor Agency 23,599,749 - - - - - - - - - 23,599,749 Allowance for doubtful accounts (207,573) - - - - - - - - (358,838) (151,265) Leases 10,220,102 - - - - - - - - 7,706,519 17,926,621
Deposits 100,384 - - 5,667 - - - - - 35,266 141,317
Due from other funds 24,075,880 - - - - - - - - - 24,075,880 Due from other governments 11,503,386 283,637 - - - - - - - 20,213,986 32,001,009 Inventories 407,053 - - - - - - - - 871,931 1,278,984
Land held for resale - - - - 5,650,178 4,379,694 - - - - 10,029,872 Advances to other funds - - - - - 30,703,911 - - - - 30,703,911 Restricted assets:

Cash with fiscal agent 11,071,217 - 203,033 - - - - 46,783,629 78,502 22,835,248 80,971,629 Total assets $ 143,337,596 26,668,645 90,778,467 38,187,822 26,244,665 42,059,734 25,411,126 46,805,718 49,002,454 280,746,827 769,243,054 Liabilities, Deferred Inflows and Fund Balances:

Liabilities:

Accounts payable 7,804,236$ 194,178$ 47,373$ 924,394$ 261,211$ -$ -$ 79,853$ 405,025$ 8,048,151$ 17,764,421$ Deposits payable 5,923,999 - 6,047 - - - - - - - 5,930,046 Retentions payable - - - - 12,302 21,757 - - 104,382 573,928 712,369 Due to other funds - - - - - - - 14,216,633 - 9,859,247 24,075,880 Due to other governments - - - - - - 25,065,670 - - 8,487,362 33,553,032 Unearned revenue 150,200 - - 37,148,029 - - - - - 5,335,102 42,633,331 Advances from other funds - - - - - - - - 26,691,542 4,012,369 30,703,911 Total liabilities 13,878,435 194,178 53,420 38,072,423 273,513 21,757 25,065,670 14,296,486 27,200,949 36,316,159 155,372,990 Deferred inflows of resources:

Unavailable revenues 2,494,088 42,268 4,848,263 - 10,835 - - - - 14,092,657 21,488,111 Leases 9,703,689 - - - - - - - - 7,507,767 17,211,456
Total deferred inflows of resources 12,197,777 42,268 4,848,263 - 10,835 - - - - 21,600,424 38,699,567 Fund balances:

Nonspendable 24,107,186 - - - 5,650,178 4,379,694 - - - 11,602,921 45,739,979 Restricted 12,398,214 26,432,199 85,876,784 115,399 - - - 30,257,097 15,444,197 110,095,013 280,618,903 Committed 32,411,496 - - - - - - - - - 32,411,496
Assigned 3,143,811 - - - 20,310,139 37,658,283 345,456 - - 113,943,770 175,401,459 Unassigned 45,200,677 - - - - - - 2,252,135 6,357,308 (12,811,460) 40,998,660 Total fund balances 117,261,384 26,432,199 85,876,784 115,399 25,960,317 42,037,977 345,456 32,509,232 21,801,505 222,830,244 575,170,497 Total liabilities, deferred inflows of
resources and fund balances 143,337,596 $ 26,668,645 $ 90,778,467 $ 38,187,822 $ 26,244,665 $ 42,059,734 $ 25,411,126 $ 46,805,718 $ 49,002,454 $ 280,746,827 $ 769,243,054 See accompanying notes to financial statements

CITY OF FONTANA
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Capital Project
23 588
Exhibit D
Fund balances of governmental funds 575,170,497 $
Amounts reported for governmental activities in the Statement of Net Position are different because:
737,064,380
79,409,056
(311,143,040)
Accrued interest payable from the current portion of interest due on long-term debt has not been reported in the governmental funds. (584,817) (33,343,139)
An Internal Service Fund is used by management to charge the costs of fleet management to individual funds. The assets and liabilities of the Internal Service Fund must be added to the Statement of Net Position. 23,511,334 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 21,488,111 Net position of governmental activities $ 1,091,572,382 See accompanying notes to financial statements

CITY OF FONTANA
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Deferred inflows of resources related to pensions and other postemployment benefits are applicable to future reporting periods and, therefore, are not reported in the funds.

Deferred outflows of resources related to pensions and other postemployment benefits are applicable to future reporting periods and, therefore, are not reported in the funds.

Long-term liabilities, including net pension liability, OPEB liability and compensated absences, are not due and payable in the current period and, therefore, is not recognized in the funds.

Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity (excluding internal service funds).
24 589
Exhibit E
Fire Future Community Other
Protection Housing Economic Capital Capital Sewer Facility Traffic Governmental General District Authority Stimulus Reinvestment Projects Expansion Districts Mitigation Funds Totals Revenues:

Taxes $ 116,384,679 $ 58,710,064 $ - $ - $ - $ - $ - $ - $ - $ 563,564 $ 175,658,307 Licenses and permits 7,872,926 1,185,187 - - - - - - - 9,359,285 18,417,398 Intergovernmental 1,283,694 - - 12,851,534 - - - - 871,840 40,552,785 55,559,853 Charges for services 16,174,908 - - - - - - - 8,924,428 6,367,335 31,466,671 Fines and forfeitures 703,886 - - - - - - - - 66,389 770,275 Special assessments - - - - - - - 46,992 - 19,226,076 19,273,068 Investment earnings (loss) 4,381,331 577,026 122,979 - (100,975) 72,403 (17,761) 730,803 231,174 2,109,210 8,106,190 Contribution from property owners - - - - - - - 10,815,577 - - 10,815,577 Other revenue 4,737,365 - 127,939 - 48,087 - - - - 744,198 5,657,589 Total revenues 151,538,789 60,472,277 250,918 12,851,534 (52,888) 72,403 (17,761) 10,027,442 78,988,842 325,724,928 11,593,372 Expenditures:

Current:

General government:

City council and commissions 1,339,208 - - - 24,019 - - - - - 1,363,227 City administration 3,936,406 - - - - - - - - 979,183 4,915,589 Management services 3,804,859 - 477,479 7,805,788 1,431 - - - - 120,467 12,210,024 Information technology 9,114,829 - - - 76,863 - - - - 3,812 9,195,504 Human resources 11,485,046 - - - - - - - - 15,184 11,500,230 Public safety:

Police 72,166,973 - - - - - - - - 4,258,081 76,425,054
Fire - 42,937,266 - - - - - - - 922,272 43,859,538
Public works 14,972,455 - - 2,427,310 858,859 133,312 - 424,199 - 22,327,805 41,143,940 Community development 7,676,951 - - - 3,570,140 - - - - 13,726,654 24,973,745 Community services 12,845,952 - - - - - - - - 5,631,727 18,477,679 Engineering 4,319,998 - - 838,873 404,697 110,143 - 8,430,629 3,485,004 22,890,044 40,479,388 Debt Service:

Principal 58,822 - - - - - - - - 1,760,000 1,818,822
Interest 1,567 - - - - - - - - 2,248,950 2,250,517
Total expenditures 141,723,066 42,937,266 477,479 11,071,971 4,936,009 243,455 - 8,854,828 3,485,004 74,884,179 288,613,257 Excess (deficiency) of revenues
over (under) expenditures 9,815,723 17,535,011 (226,561) 1,779,563 (4,988,897) (171,052) (17,761) 2,738,544 6,542,438 4,104,663 37,111,671 Other Financing Sources (Uses):
18,272,319 1,295,100 - - 15,929,494 - - - - 23,461,106 58,958,019 (13,380,541) (30,861,695) (56,600) (1,779,564) (124,342) (462,470) - - (185,130) (10,924,067) (57,774,409) - - - - - - - (748,199) - - (748,199)
Premium (discount) on bonds issued - - - - - - - 261,790 - - 261,790 Sale of capital assets 45,946 - - - - - - - - 31,940 77,886 Total other financing sources (uses) 4,937,724 (29,566,595) (56,600) (1,779,564) 15,805,152 (462,470) - (486,409) (185,130) 12,568,979 775,087 Net change in fund balances 14,753,447 (12,031,584) (283,161) (1) 10,816,255 (633,522) (17,761) 2,252,135 6,357,308 16,673,642 37,886,758 Fund Balances:
38,463,783 86,159,945 115,400 15,144,062 42,671,499 363,217 30,257,097 15,444,197 206,156,602 537,283,739 102,507,937 End of fiscal year $ 117,261,384 $ 26,432,199 $ 85,876,784 $ 115,399 $ 25,960,317 $ 42,037,977 $ 345,456 $ 32,509,232 $ 21,801,505 $ 222,830,244 $ 575,170,497 See accompanying notes to financial statements

CITY OF FONTANA
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Special Revenue Capital Projects
Transfers in
Transfers out
Proceeds of refunding bonds
Beginning of fiscal year, as restated
(see note 19)
25 590
Exhibit F
Net change in fund balances - total governmental funds 37,886,758 $ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over 50,038,280 their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.

In the Statement of Activities, only the gain/loss on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. (45,946) Donations of capital assets increase net position in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. 17,103,880
Depreciation expense on capital assets is reported in the Statement of Activities, but they do not require the use of current financial resources. (37,200,204) Therefore, depreciation expense is not reported as expenditures in governmental funds.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as unavailable revenues in the funds. 10,468,081 The issuance of long-term debt provides current financial resources to governmental funds, but 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. 2,488,567 The recognition of lease payables and the net change in lease payables are not recognized in the funds 20,353 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures (1,927,826) in governmental funds.

The Internal Service Fund is used by management to charge the costs of fleet management to individual funds. The net gain of the Internal Service 5,457,861 Fund is reported with governmental activities.

Adjustments made to the OPEB liability do not use current financial resources and, therefore, are not recognized in the funds. 26,680,131 Adjustments made to the Net Pension Liability do not use current financial resources and, therefore, are not recognized in the funds. (7,927,218) Change in net position of governmental activities 103,042,717 $ See accompanying notes to financial statements

CITY OF FONTANA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2023
26 591
Exhibit G

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:

Taxes 95,321,100 $ 105,986,750 $ 116,384,679$ 10,397,929 $ Licenses and permits 6,949,800 8,390,123 7,872,926 (517,197) Intergovernmental 1,395,500 1,531,915 1,283,694 (248,221) Charges for services 14,226,820 16,657,367 16,174,908 (482,459) Fines and forfeitures 511,200 503,200 703,886 200,686
Investment earnings (loss) 3,272,850 3,418,880 4,381,331 962,451 Other revenue 4,374,130 5,137,669 4,737,365 (400,304)
Total revenues 126,051,400 141,625,904 151,538,789 9,912,885 Expenditures:

Current:

General government:

City council and commissions 1,262,310 1,443,936 1,339,208 104,728 City administration 2,719,040 4,418,402 3,936,406 481,996 Management services 3,261,390 4,497,719 3,804,859 692,860 Information technology 8,813,530 13,202,856 9,114,829 4,088,027 Human resources 10,482,130 13,051,521 11,485,046 1,566,475 Public safety:

Police 70,140,290 75,917,229 72,166,973 3,750,256
Public works 13,819,610 15,696,216 14,972,455 723,761
Community development 6,515,190 8,434,836 7,676,951 757,885 Community services 15,188,300 15,043,195 12,845,952 2,197,243 Engineering 3,897,220 5,299,304 4,319,998 979,306
Debt Service:

Principal - 163,994 58,822 105,172
Interest - 200 1,567 (1,367)
Total expenditures 136,099,010 157,169,408 141,723,066 15,446,342 Excess (deficit) of
revenues over expenditures (10,047,610) (15,543,504) 9,815,723 25,359,227 Other Financing Sources (Uses):

Transfers in 31,128,200 34,623,944 18,272,319 (16,351,625) Transfers out (29,625,330) (13,380,541) (21,107,310) 16,244,789 Sale of capital assets 1,500 1,500 45,946 44,446
Total other financing sources (uses) 5,000,114 4,937,724 10,022,390 (62,390) Net change in fund balances (10,543,390) (25,220) 25,296,837 14,753,447 Fund balances - beginning, as restated (see note 19) 102,507,937 102,507,937 102,507,937 - Fund balances - ending 102,482,717 $ 91,964,547 $ 117,261,384 $ 25,296,837 $ See accompanying notes to financial statements
Budget Amounts

CITY OF FONTANA
General Fund
Year Ended June 30, 2023
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 27 592
Exhibit G

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:

Taxes $ 50,923,200 $ 50,923,200 $ 58,710,064 $ 7,786,864 Licenses and permits 890,000 875,000 1,185,187 310,187
Investment earnings 109,000 109,000 577,026 468,026
Total revenues 51,922,200 51,907,200 60,472,277 8,565,077 Expenditures:

Public safety:

Fire 41,173,340 44,192,778 42,937,266 1,255,512
Total expenditures 41,173,340 44,192,778 42,937,266 1,255,512 Excess (deficit) of
revenues over expenditures 10,748,860 7,714,422 17,535,011 9,820,589 Other Financing Sources (Uses):

Transfers in 1,295,100 1,295,100 1,295,100 -
Transfers out (30,861,695) (30,861,695) (5,392,640) -
Total other financing sources (uses) (29,566,595) (29,566,595) (4,097,540) - Net change in fund balances 6,651,320 (12,031,584) (21,852,173) 9,820,589 Fund balances - beginning 38,463,783 38,463,783 38,463,783 - Fund balances - ending 45,115,103 $ 16,611,610 $ 26,432,199 $ 9,820,589 $

CITY OF FONTANA
Fire Protection District - Special Revenue
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2023
Budget Amounts
See accompanying notes to financial statements
28 593
Exhibit G

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:

Investment earnings (loss) 399,000 $ 399,000 $ 122,979 $ (276,021)$ Other revenue 196,000 201,000 127,939 (73,061)
Total revenues 595,000 600,000 250,918 (349,082)
Expenditures:

Current:

General government:

Management services 332,290 4,342,816 477,479 3,865,337 Total expenditures 332,290 4,342,816 477,479 3,865,337
Excess (deficit) of
revenues over expenditures 262,710 (226,561) (3,742,816) 3,516,255 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 206,110 (283,161) (3,799,416) 3,516,255 Fund balances - beginning 86,159,945 86,159,945 86,159,945 - Fund balances - ending 86,366,055 $ 82,360,529 $ 85,876,784 $ 3,516,255 $ 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 Year Ended June 30, 2023
29 594
Exhibit G

Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues:

Intergovernmental $ - $ - 12,851,534$ 12,851,534$
Total revenues - - 12,851,534 12,851,534
Expenditures:

Current:

General government:

Management services - 15,037,271 7,805,788 7,231,483
Public works - 6,579,892 2,427,310 4,152,582
Engineering - 26,962,675 838,873 26,123,802
Total expenditures - 48,579,838 11,071,971 37,507,867
Excess (deficit) of
revenues over expenditures - (48,579,838) 50,359,401 1,779,563 Other Financing Sources (Uses):

Transfers out - - (1,779,564) (1,779,564)
Total other financing sources (uses) - - (1,779,564) (1,779,564) Net change in fund balances - (1) (48,579,838) 48,579,837 Fund balances - beginning 115,400 115,400 115,400 -
Fund balances - ending 115,400 $ $ (48,464,438) $ 48,579,837 $ 115,399 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 Year Ended June 30, 2023
Budget Amounts
30 595
Exhibit H
Governmental
Activities
Non-Major Internal Service
Enterprise Fund - Fund -
Sewer Water Fleet
Operations Operations Totals Operations
Assets:

Current Assets:

Cash and investments 22,774,003$ 741,304$ 23,515,307$ 16,296,256$ Accounts receivables 1,232,244 - 1,232,244 2,685
Interest receivable 142,413 3,739 146,152 82,204
Loans receivable 2,777,191 1,166,192 3,943,383 -
Loans to Successor Agency 3,305,829 - 3,305,829 -
Allowance for doubtful accounts (3,305,829) - (3,305,829) - Prepaid expenses 3,888 - 3,888 -
Due from other governments 137,474 - 137,474 1,963
Inventories 30,953 - 30,953 143,323
Total current assets 27,098,166 1,911,235 29,009,401 16,526,431 Noncurrent Assets:

Capital assets, not being depreciated 1,513,666 - 1,513,666 615,245 Capital assets, net of depreciation 62,916,953 - 62,916,953 8,767,455 Total noncurrent assets 64,430,619 - 64,430,619 9,382,700 Total assets 91,528,785 1,911,235 93,440,020 25,909,131 Deferred Outflows of Resources:

Deferred outflows of resources - pension related 1,844,643 - 1,844,643 - Deferred outflows of resources - OPEB related 449,063 - 449,063 - Total deferred outflows of resources 2,293,706 - 2,293,706 - Liabilities:

Current Liabilities:

Accounts payable 4,313,599 - 4,313,599 488,709
Deposits payable 805,131 - 805,131 -
Interest payable 30,538 - 30,538 -
Retentions payable 43,611 - 43,611 -
Compensated absences payable - current 47,454 - 47,454 - Loans payable - current 894,463 - 894,463 -
Total current liabilities 6,134,796 - 6,134,796 488,709 Noncurrent Liabilities:

Compensated absences payable 189,673 - 189,673 -
Loans payable 3,947,739 - 3,947,739 -
Net pension liability 5,274,891 - 5,274,891 -
Net OPEB liability 598,205 - 598,205 -
Total noncurrent liabilities 10,010,508 - 10,010,508 -
Total liabilities 16,145,304 - 16,145,304 488,709
Deferred Inflows of Resources:

Deferred inflows of resources - pension related 9,323 - 9,323 - Deferred inflows of resources - OPEB related 1,052,338 - 1,052,338 - Total deferred inflows of resources 1,061,661 - 1,061,661 - Net Position:

Net investment in capital assets 59,588,417 - 59,588,417 9,382,700 Unrestricted 17,027,109 1,911,235 18,938,344 16,037,722 Total net position 76,615,526$ 1,911,235$ 78,526,761 25,420,422$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 78,526,761 1,909,088
Net position per Statement of Net Position $ 80,435,849 See accompanying notes to financial statements
June 30, 2023

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
31 596
Exhibit I
Governmental
Activities
Non-Major Internal Service
Enterprise Fund - Fund -
Sewer Water Fleet
Operations Operations Totals Operations
Operating Revenues:

Charges for services 27,383,676$ -$ 27,383,676$ 8,576,160$ Total revenues 27,383,676 - 27,383,676 8,576,160
Operating Expenses:

Personnel costs 2,202,636 - 2,202,636 1,047,499
Operating costs 467,214 - 467,214 1,851,784
Contractual 20,642,224 - 20,642,224 748,408
Depreciation 2,947,959 - 2,947,959 2,123,720
Total operating expenses 26,260,033 - 26,260,033 5,771,411 Operating income (loss) 1,123,643 - 1,123,643 2,804,749 Non-Operating Revenues (Expenses):

Investment earnings 265,687 4,449 270,136 33,112
Interest payments (101,463) - (101,463) -
Other revenue (expenses) 117,885 - 117,885 46,583
Gain (loss) on sale of capital assets - - - 256,390
Total non-operating revenues (expenses) 282,109 4,449 286,558 336,085 Income (loss) before contributions
and transfers 1,405,752 4,449 1,410,201 3,140,834
Capital contributions - connection fees 811,632 - 811,632 - Contributions from property owners 6,818,826 - 6,818,826 - Transfers in - - - 2,475,650
Transfers out (3,659,260) - (3,659,260) -
Change in net position 5,376,950 4,449 5,381,399 5,616,484 Net Position:

Beginning of fiscal year 71,238,576 1,906,786 73,145,362 19,803,938 Net position at end of year 76,615,526$ 1,911,235$ 78,526,761 25,420,422$ Reconciliation of Changes in Net Position to the Statement of Activities:
5,381,399
Adjustment to reflect the consolidation of internal service activities related to enterprise funds 158,623 Changes in Net Position of Business-Type Activities per Statement of Activities $ 5,540,022 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
Year Ended June 30, 2023
Business-type Activities
Enterprise Funds
32 597
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 27,573,878$ -$ 27,573,878$ 8,728,072$ Cash payments to suppliers of goods and services (20,332,421) - (20,332,421) (3,155,677) Cash payments to employees for services (3,295,799) - (3,295,799) (1,047,499) Net cash provided by (used for) operating activities 3,945,658 - 3,945,658 4,524,896 Cash Flows from Noncapital Financing Activities:

Transfers received - - - 2,475,650
Transfers paid (3,659,260) - (3,659,260) -
Net cash provided by (used for) noncapital financing activities (3,659,260) - (3,659,260) 2,475,650 Cash Flows from Capital and Related Financing Activities:

Payments for debt service - principal payments (878,670) - (878,670) - Payments for debt service - interest payments (106,149) - (106,149) - Capital contributions 7,630,458 - 7,630,458 -
Sale of capital assets - - - 256,390
Acquisition and construction of capital assets (8,054,254) - (8,054,254) (3,094,069) Net cash provided by (used for) capital and related financing activities (1,408,615) - (1,408,615) (2,837,679) Cash Flows from Investing Activities:

Investment earnings 376,215 56,006 432,221 (24,237)
Net cash provided by investing activities 376,215 56,006 432,221 (24,237) Net increase (decrease) in cash and cash equivalents (746,002) 56,006 (689,996) 4,138,630 Cash and cash equivalents - beginning of year 23,520,005 685,298 24,205,303 12,157,626 Cash and cash equivalents - end of year $ 22,774,003 $ 741,304 $ 23,515,307 $ 16,296,256 Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities:

Operating Income (Loss) 1,123,643$ -$ 1,123,643$ 2,804,749$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation 2,947,959 - 2,947,959 2,123,720
Other revenue (expenses) 117,885 - 117,885 46,583
Changes in Assets and Liabilities:

Accounts receivable 196,888 - 196,888 107,292
Prepaid expenses (3,888) - (3,888) -
Due from other governments (124,571) - (124,571) (1,963) Inventories 21,419 - 21,419 (41,287)
Deferred outflows - pension related (1,165,689) - (1,165,689) - Deferred outflows - OPEB related (13,596) - (13,596) -
Accounts payable 702,913 - 702,913 (514,198)
Retentions payable 43,611 - 43,611 -
Deposits payable 12,962 - 12,962 -
Accrued compensated absences (4,586) - (4,586) -
Deferred inflows - pension related (1,508,403) - (1,508,403) - Deferred inflows - OPEB related 725,542 - 725,542 -
Net pension liability 2,600,515 - 2,600,515 -
Net OPEB liability (1,726,946) - (1,726,946) -
Net cash provided by (used for) operating activities 3,945,658$ -$ 3,945,658$ 4,524,896$ There were no non-cash investing, capital or financing activities for the year ended June 30, 2023.

See accompanying notes to financial statements

CITY OF FONTANA
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Business-type Activities
Enterprise Funds
33 598
Exhibit K
Private Purpose
Trust Fund
Custodial Successor Agency
Funds of the Former RDA
Assets:

Cash and investments 15,603,300$ 19,569,155$
Receivables (net):

Assessments 386,139 -
Interest - 1,219,204
Loans receivable - 2,381,374
Allowance for doubtful accounts - (1,971,279)
Restricted assets:

Cash and investments 21,488,664 2,909
Total assets 37,478,103 21,201,363
Liabilities:

Interest payable - 2,056,354
Due to other governments 60,677 -
Deferred revenue - 125,000
Long-term liabilities:

Due in one year - 16,793,885
Due in more than one year - 418,215,790
Total liabilities 60,677 437,191,029
Net Position:

Held for other organizations 7,487,584 -
Restricted for debt service 29,929,842 (415,989,666)
Total Net Position (deficit) 37,417,426$ (415,989,666)$ See accompanying notes to financial statements

CITY OF FONTANA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
34 599
Exhibit L
Private Purpose
Trust Fund
Custodial Successor Agency
Funds of the Former RDA
Additions:

Contributions from property owners 15,891,007$ 34,924,052$ Contributions from other governments - 71,313
Interest and change in fair value of investments 118,338 (335,295) Increase in deposits held 6,684,301 -
Other revenue 754,424 511,649
Total additions 23,448,070 35,171,719
Deductions:

Contractual services - 368,552
Administrative expense 826,454 6,000
Interest expense 6,931,519 19,012,168
Contributions to other governments - 200,150
Principal payments 6,040,000 -
Decrease in deposits held 5,891,451 -
Total deductions 19,689,424 19,586,870
Changes in net position 15,584,849 3,758,646
Net Position (deficit) - Beginning of the Year 33,658,780 (431,574,515) Net Position (deficit) - End of the Year 37,417,426 $ $ (415,989,666)

CITY OF FONTANA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2023
See accompanying notes to financial statements
35 600

CITY OF FONTANA
Notes to the Financial Statements
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 Public Financing Authority.
36 601

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 Housing 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 Public Facilities Financing 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, regardless 37 602

CITY OF FONTANA
Notes to the Financial Statements
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 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. 38 603

CITY OF FONTANA
Notes to the Financial Statements
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.

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. 39 604

CITY OF FONTANA
Notes to the Financial Statements
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:

Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. 40 605

CITY OF FONTANA
Notes to the Financial Statements
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.

Public Works includes those activities which involve the maintenance and improvement of City streets, roads and park department development and maintenance.
41 606

CITY OF FONTANA
Notes to the Financial Statements
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.

Leases
At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term. For additional information, refer to the disclosures in Footnote 4.

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term and lease receipts.

The City used the estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 42 607

CITY OF FONTANA
Notes to the Financial Statements
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 assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of businesstype 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
Right to use asset 5 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, are transactions that represent a consumption of net assets that applies to a future period(s) and are not considered assets. The government has two items that qualify for reporting in this category, deferred outflows related to pensions and OPEB.
43 608

CITY OF FONTANA
Notes to the Financial Statements
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 assets that applies to a future period(s) and are not considered to be liabilities. The government has four 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.

3. OPEB 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 OPEB liability.

4. Lease related deferred inflows, is reported on the governmental balance sheet and the Statement of Net Position. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

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 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, 2023, the City had bonded indebtedness of $51,255,000 against its debt limit of $4,052,895,804, which is 1.26 percent of the total limit. 44 609

CITY OF FONTANA
Notes to the Financial Statements
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.

Generally accepted accounting principles 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, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021, to June 30, 2022
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.

For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021, to June 30, 2022
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. 45 610

CITY OF FONTANA
Notes to the Financial Statements
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 $342,128,793 long-term liabilities difference is as follows:
$ 51,255,000
Loan payables 2,444,412
22,584,976
Compensated absences 11,213,108
Lease liability 86,356
Other post employment benefits liability 18,294,557
Net pension liability 199,150,942
6,113,689
funds to arrive at net position of governmental activities $ 311,143,040 Net adjustment to reduce fund balances of governmental
Lease revenue bonds payable
Claims and judgments
Bond premium to be amortized
46 611

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 $2,488,567 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 $1,927,826 are as follows:
$ (1,760,000)
Net change in premium (728,567)
$ (2,488,567)
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
$ (1,930,976)
Compensated absences (113,716)
Accrued interest 116,866
$ (1,927,826)
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 47 612

CITY OF FONTANA
Notes to the Financial Statements
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, 2023. 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 $284,614,530. 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 no excess expenditures over appropriations in certain funds at the department level. 48 613

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, 2023, are as follows:

A budgetary comparison schedule not presented for the Down Payment Assistance and TDA special revenue funds 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, 2023, the following funds had deficit fund balances:

These deficit fund balances will be addressed through future year revenues and transfers.

Expenditures Appropriations Excess
Special Revenue Funds
Gas Tax Fund 4,246,038$ 3,854,398$ 391,640$
Traffic Safety Fund 68,247 49,020 19,227
Federal Law Enforcement Block Grant Fund 304,606 303,657 949 Capital Project Funds
Community Facilities District 8,854,828 6,893,944 1,960,884 Special Revenue Funds:

Grants 1,122,218$
TDA 56,290
Housing and Community Development Block Grant 803,097
Federal Law Enforcement Block Grant 1,215
Community Services Reimbursements 1,166,851
ASES ELO-P 1,539,118
Permanent Local Housing Allocation 889,251
ARPA County 131,499
Debt Service Funds:

General Debt Service 2,069
Fiduciary Funds:

Successor Agency 415,989,666
49 614

CITY OF FONTANA
Notes to the Financial Statements
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.

Restricted Assets
Cash and Cash with
Investments Fiscal Agent Total
Governmental activities 470,736,779$ 80,971,629$ 551,708,408$ Business-type activities 23,515,307 - 23,515,307
Fiduciary funds 35,172,455 21,491,573 56,664,028
$ 102,463,202$ 631,887,743$ 529,424,541
50 615

CITY OF FONTANA
Notes to the Financial Statements
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:

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, or Financial Futures and Financial Option Contracts even though such investments are authorized under the California Government Code. All investments present at June 30, 2023 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, 2023, the carrying amount of the City’s deposits was $163,624,768 and the bank balance was $164,328,266. The $703,498 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.
51 616

CITY OF FONTANA
Notes to the Financial Statements
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, 2023, the City’s investment in medium term notes, federal securities and money market funds consisted of the following:

As of June 30, 2023, 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.

Amount AAA - Aaa AA+ - AA- A - A+ Not Rated
$ 28,117,212 -$ 22,308,255$ -$ 5,808,958$
9,846,242 - - - 9,846,242
29,517,305 23,421,693 - - 6,095,612
91,625,450 5,303,719 64,252,200 22,069,531 -
75,551 - 75,551 - -
127,798,957 127,798,957 - - -
78,625,020 - - - 78,625,020
92,316,009 - 92,316,009 - -
10,341,229 - - - 10,341,229
$ 468,262,975 $ 156,524,369 $ 178,952,015 $ 22,069,531 $ 110,717,061 Ratings as of Year End
Investment Type
U.S Government Securities
Mortgage Pools
Asset-Backed Security
Corporate
Municipal Bonds
U.S Treasuries
State Investment Pool (LAIF)
Money Market Funds
Section 115 Trust Investments
52 617

CITY OF FONTANA
Notes to the Financial Statements
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, 2023, the City is in compliance with the restrictions of the investment policy.

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.

Investment Type
Maximum
Maturity
Maximum % of Pool
Allowed
Government Code
Section
State Treasurer’s Local Agency
Investment Fund (LAIF) 5 years $75 million/account 16429.1 U.S. Government Securities 5 years None 53601(b) 53601(f) California State, California Local
Government Agencies, and other
United States State Bonds
5 years 20% 53601(c) 53601(d)
53601(e)
Bankers Acceptances 180 days 40% 53601(g)
Commercial Paper 270 days 10% 53601(h)
Negotiable Certificates of Deposit 5 years 30% 53601(i) Medium-Term Notes 5 years 10% 53601(k)
Pass-Through Securities 5 years 20% 53601(o)
Supranational Obligations 5 years 30% 53601(q)
Certificates of Deposit 5 years None 53635
53 618

CITY OF FONTANA
Notes to the Financial Statements
As of June 30, 2023, the City had the following investments and maturities:
6 months 6 months 1 to 3 3 to 5 Fair
or less to 1 year years years Value
U.S Government Securities 3,798,007$ -$ 20,820,251$ 3,498,954$ 28,117,212$ Corporate Obligations - 8,524,137 76,375,683 6,725,630 91,625,450 State Investment Pool 78,625,020 - - - 78,625,020
Treasury Notes 200 - 127,798,757 - 127,798,957
Municipal Bonds - 75,551 - - 75,551
Asset-Backed Securities - - 670,460 28,846,845 29,517,305 Mortgage Pools - - - 9,846,242 9,846,242
Money Market Mutual Funds 92,316,009 - - - 92,316,009
Section 115 Trust - Pension
Exchange Traded Funds 5,554,470 - - - 5,554,470
Mutual Funds - Bonds 3,308,349 - - - 3,308,349
Mutual Funds - Equity 1,478,410 - - - 1,478,410
$ 8,599,688$ 225,665,151$ 48,917,671$ 468,262,975$ 185,080,465 Investment Maturities
54 619

CITY OF FONTANA
Notes to the Financial Statements
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, 2023:

Note 4. Leases
The City is a lessor in noncancellable leases for use of City property for cell towers. The leases are for five years and are required to make fixed monthly payments per month. The leases interest rates range from .31% to 1.70%. The City is a lessor in a 55-year noncancellable lease for an apartment unit complex with fixed monthly rent payments starting at $1,667 per month with annual increase of 2%. The City recognized $713,394 in lease revenue and $11,115 in interest revenue during the current fiscal year related to these agreements. As of June 30, 2023, the lease receivable is $17,018,509 and deferred inflows of resources is $16,303,344.

Investments Measured at Fair Value
Level 1 Level 2 Level 3 Total Fair Value
U.S Government Securities $ - $ 28,117,212 $ - $ 28,117,212 Corporate Obligations - 91,625,450 - 91,625,450
Treasury Notes 127,798,957 - - 127,798,957
Municipal Bonds - 75,551 - 75,551
Asset-Backed Securities - 29,517,305 - 29,517,305
Mortgage Pools - 9,846,242 - 9,846,242
Section 115 Trust - Pension
Exchange Traded Funds - 5,554,470 - 5,554,470
Mutual Funds - Bonds - 3,308,349 - 3,308,349
Mutual Funds - Equity - 1,478,410 - 1,478,410
Total investments measured at fair value $ 127,798,957 $ 159,181,760 $ - 297,321,946 Investments Not Reported in Fair Value Hierarchy
Money Market Mutual Funds $ 92,316,009
State Investment Pool (LAIF) 78,625,020
Total investments not reported in fair value hierarchy
170,941,029
Total investments held
$ 468,262,975
Fair Value Hierarchy
Net Asset Value
55 620

CITY OF FONTANA
Notes to the Financial Statements
The City is a lessee in a noncancellable lease for the City’s use of vehicles. For further information on the City’s lease liability see Footnote 8.

Note 5. Receivables
Receivables as of June 30, 2023, 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:

Due to the uncollectability of the loans to the Successor Agency, an allowance for doubtful accounts has been recorded at June 30, 2023 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 $23,599,749 in the General Fund.

Community Nonmajor
Fire Protection Housing Capital Future Capital Sewer Facilities Traffic Governmental General District Authority Reinvestment Projects Expansion Districts Mitigation Funds $ 46,525$ -$ 12,065$ -$ 25,929$ -$ 2,087$ 118,366$ 3,861,306 - - - - - - - 540,011 -
132,195 4,106,248 102,926 35,013 127,409 - 245,540 1,974,538 428,870 - 71,852,645 125,000 - - - - 10,695,724 -
- - - - - - - - 23,599,749
$ 178,720$ 75,958,893$ 239,991$ 35,013$ 153,338$ -$ 247,627$ 13,328,639$ 27,889,925 - - - - - - - 151,265 207,573
$ 178,720$ 75,958,893$ 239,991$ 35,013$ 153,338$ -$ 247,627$ 13,177,374$ 27,682,352 Special Revenue Capital Projects
Loans to Successor Agency
Less allowance for
doubtful accounts
Accounts
Assessments
Interest
Loans
Nonmajor Internal
Sewer Enterprise Service Fiduciary
Operations Fund Funds Funds Total
$ -$ 2,685$ -$ 5,301,207$ 1,232,244
- - 386,139 926,150 -
3,739 82,204 1,219,204 8,600,299 142,413
1,166,192 - 2,381,374 88,998,126 2,777,191
- - - 26,905,578 3,305,829
1,169,931 84,889 3,986,717 130,731,360 7,457,677
- - 1,971,279 5,635,946 3,305,829
$ 1,169,931$ 84,889$ 2,015,438$ 125,095,414$ 4,151,848
Less allowance for
doubtful accounts
Accounts
Assessments
Interest
Loans
Loans to Successor Agency
56 621

CITY OF FONTANA
Notes to the Financial Statements
Note 6. Capital Assets
Capital asset activity for the year ended June 30, 2023, was as follows:

Beginning
Balance Balance
June 30, 2022 Transfers Increases Decreases June 30, 2023 Governmental activities:

Capital assets, not being depreciated
Land 161,362,284$ (942,414)$ 14,646,146$ -$ 175,066,016$ Construction in progress 52,382,959 (26,169,441) 37,224,898 (1,618,989) 61,819,427 Easements 4,996,141 1,343,371 - - 6,339,512
Total capital assets, not being depreciated 218,741,384 (25,768,484) 51,871,044 (1,618,989) 243,224,955 Capital assets, being depreciated
Buildings and improvements 316,413,983 21,053,848 14,100 - 337,481,931 Machinery and equipment 26,890,315 14,178 1,598,251 - 28,502,744 Vehicles 36,751,601 806,121 2,576,902 (1,708,106) 38,426,518 Right to use assets 108,141 - - - 108,141
Infrastructure 860,897,019 3,894,337 14,039,044 - 878,830,400 Intangibles 5,384,870 - - - 5,384,870
25,768,484 18,228,297 (1,708,106) 1,288,734,604 1,246,445,929 Less accumulated depreciation for:

Buildings and improvements (154,123,446) - (11,856,162) - (165,979,608) Machinery and equipment (22,642,791) - (1,369,121) - (24,011,912) Vehicles (22,783,274) - (2,909,297) 1,708,106 (23,984,465) Right to use assets (1,825) - - - (1,825)
Infrastructure (547,599,581) - (21,414,559) - (569,014,140) Intangibles (2,455,675) - (64,854) - (2,520,529)
- (37,613,993) 1,708,106 (785,512,479) (749,606,592)
Total capital assets, being depreciated, net 496,839,337 25,768,484 (19,385,696) - 503,222,125 Governmental activities capital assets, net 715,580,721$ -$ 32,485,348$ (1,618,989)$ 746,447,080$ 57 622

CITY OF FONTANA
Notes to the Financial Statements
Depreciation expense was charged to functions/programs of the primary government as follows:

Beginning
Balance Balance
June 30, 2022 Transfers Increases Decreases June 30, 2023 Business-type activities:

Capital assets, not being depreciated
Construction in progress 477,105$ -$ 1,036,561$ -$ 1,513,666$ Total capital assets, not being depreciated 477,105 - 1,036,561 - 1,513,666 Capital assets, being depreciated
Buildings and improvements 1,798,150 - - - 1,798,150
Machinery and equipment 603,611 - 9,938 - 613,549
Infrastructure 116,035,868 - 7,007,755 - 123,043,623
Intangibles 64,698 - - - 64,698
- 7,017,693 - 125,520,020 118,502,327
Less accumulated depreciation for:

Buildings and improvements (692,147) - (46,244) - (738,391) Machinery and equipment (596,972) - (3,630) - (600,602) Infrastructure (58,301,291) - (2,898,085) - (61,199,376) Intangibles (64,698) - - - (64,698)
- (2,947,959) - (62,603,067) (59,655,108)
Total capital assets, being depreciated, net 58,847,219 - 4,069,734 - 62,916,953 Business-type activities capital assets, net 59,324,324$ -$ 5,106,295$ -$ 64,430,619$ Governmental activities:

General government 3,248,031$ Business-type activities:

Public safety 2,945,863 Sewer Operations 2,947,959$
Public works 6,812,058
Community development 1,292,118
Community services 863,036
Engineering 20,329,167
Total Depreciation charged to functions 35,490,273
Charged to Internal Service Fund 2,123,720
Total Governmental Activities 37,613,993$
58 623

CITY OF FONTANA
Notes to the Financial Statements
The following material construction commitments existed at June 30, 2023:

Note 7. Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2023, is as follows:

Due to/from other funds:

Project Name Contract Amount
Expenditures
to date as of
June 30, 2023
Remaining
Commitments
City Hall Renovation Project, PH 1 18,081,961$ $ 235,432 $ 17,719,783 Downtown Parking Structure 15,000,000 213,537 14,432,521 Fire Station No. 81 12,090,967 8,107,819 3,944,175
Arrow/Tokay TS 1,512,000 180,242 1,287,973
Arrow/Cypress TS 1,380,000 211,238 1,147,200
Foothill: Hemlock-Almeria Arterial 2,230,000 784,731 202,303 Receivable Fund Payable Fund Amount
General Fund Major Governmental Funds
Community Facilities Districts 14,216,633$
Non-major Governmental Funds
Traffic Congestion Relief 6,049,197
Permanent Local Housing Allocation 240,803
TDA 55,767
Federal Law Enforcement Block Grant 194,632
Housing and Community Development Block Grant 691,918
Community Services Reimbursements 1,388,003
ASES ELO-P 1,104,732
ARPA County 130,999
General Debt Service 3,196
Total 24,075,880$
59 624

CITY OF FONTANA
Notes to the Financial Statements
The amounts due to the General Fund are the result of negative cash balances at the end of the year.

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.

Receivable Fund Payable Fund Amount
Future Capital Projects Capital Improvements 1,717,369$ Storm Drain 2,295,000
Traffic Mitigation 26,691,542
Total 30,703,911$
60 625

CITY OF FONTANA
Notes to the Financial Statements
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.

Fire Nonmajor
Protection Capital Governmental Internal
General District Reinvestment Funds Service Fund Total
Transfer out:

General -$ 289,000$ 9,456,000$ 2,896,041$ 739,500$ 13,380,541$ Fire Protection District 6,167,085 - 5,000,000 19,694,610 - 30,861,695 Housing Authority 56,600 - - - - 56,600
Economic Stimulus 306,070 - 1,473,494 - - 1,779,564
Capital Reinvestment 100,000 - - 24,342 - 124,342
Future Capital Improvements 462,470 - - - - 462,470
Traffic Mitigation 185,130 - - - - 185,130
Nonmajor Governmental Funds 7,986,784 1,006,100 - 846,113 1,085,070 10,924,067 Sewer Operations 3,008,180 - - - 651,080 3,659,260
$ 1,295,100$ 15,929,494$ 23,461,106$ 2,475,650$ 61,433,669$ 18,272,319 Transfers In:
61 626

CITY OF FONTANA
Notes to the Financial Statements
Note 8. Long-Term Debt
Long-term debt activity for the year ended June 30, 2023, was as follows:

Beginning Ending Amounts Amounts
Balance Balance Due Within Due in More
June 30, 2022 Additions Retirements June 30, 2023 One Year Than One Year Governmental Activities:

Lease Revenue Bonds 53,015,000$ -$ 1,760,000$ 51,255,000$ 1,830,000$ 49,425,000$ Claims and judgments 20,654,000 6,946,328 5,015,352 22,584,976 5,292,948 17,292,028 Compensated absences 11,099,392 7,859,206 7,745,490 11,213,108 7,745,490 3,467,618 Loan payable - SANBAG 2,851,815 - 407,403 2,444,412 407,402 2,037,010 Lease liability 106,709 - 20,353 86,356 22,581 63,775
Total Long-Term Debt - City 87,726,916$ 14,805,534$ 14,948,598$ 87,583,852$ 15,298,421$ 72,285,431$ Unamortized bond premium 6,113,689 6,113,689
$ 93,697,541 $ 78,399,120
Business-Type Activities:

Compensated absences 241,713$ 185,088$ 189,674$ 237,127$ 237,127$ 47,454$ Loans payable 5,720,872 - 878,670 4,842,202 894,463 3,947,739 Total Business-Type Activity Long-Term Debt 5,962,585$ 185,088$ 1,068,344$ 5,079,329$ 1,131,590$ 3,995,193$ 62 627

CITY OF FONTANA
Notes to the Financial Statements
Lease Revenue Bonds
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 $29,890,000. 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.

2021 Lease Revenue Bonds

In November 2021, the Fontana Public Facilities Financing Authority issued $23,125,000 of Lease Revenue Bonds. The proceeds of the issue were used to refinance 2010 Lease Revenue Bonds with an outstanding balance of $5,075,000, finance the acquisition, construction and installation of certain public capital improvements and pay the costs of issuing the Lease Revenue bonds Series 2021A Bonds. The bonds pay interest semi-annually at rates of 4.00% and mature from November 2022 through November 2048. Principal and interest payments are made from the lease income for certain real property and the improvements thereon.

Principal Interest Total
2024 485,000$ 905,800$ 1,390,800$
2025 505,000 886,400 1,391,400
2026 525,000 866,200 1,391,200
2027 545,000 845,200 1,390,200
2028 565,000 823,400 1,388,400
2029-2033 3,185,000 3,758,800 6,943,800
2034-2038 3,870,000 3,069,600 6,939,600
2039-2043 4,720,000 2,230,400 6,950,400
2044-2048 4,220,000 1,324,400 5,544,400
2049-2052 4,025,000 410,200 4,435,200
Totals 22,645,000$ 15,120,400$ 37,765,400$
2021 Lease Revenue Bonds
Principal Interest Total
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 1,555,000 1,050,925 2,605,925
2028 1,630,000 971,300 2,601,300
2029-2033 9,420,000 3,570,375 12,990,375
2034-2038 11,770,000 1,213,600 12,983,600
Totals 28,610,000$ 10,399,975$ 39,009,975$
2014 Lease Revenue Bonds
63 628

CITY OF FONTANA
Notes to the Financial Statements
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 seven years to pay back the amount without interest. The outstanding balance as of June 30, 2023, is $2,444,412.

Lease Liability
The City is a lessee in a noncancellable lease for the City’s use of vehicles. The lease terms are in five-year terms. The leases are required to make a fixed monthly payment ranging between $682 - $752 per month. The City recognized $22,945 in principal lease payments and $1,567 in interest paid during the current fiscal year related to these agreements. As of June 30, 2023, the lease liability is $86,356.

Future principal and interest payments on the lease liability is as follows:

Fiscal Year
Ending Principal Interest Total
2024 407,402$ -$ 407,402$
2025 407,402 - 407,402
2026 407,402 - 407,402
2027 407,402 - 407,402
2028 407,402 - 407,402
2029 407,402 - 407,402
Totals 2,444,412$ -$ 2,444,412$

SANDBAG
Principal Interest Total
2024 21,354$ 1,226$ 22,580$
2025 21,701 879 22,580
2026 22,056 525 22,581
2027 21,245 165 21,410
Totals 86,356$ 2,795$ 89,151$
Lease Liability
64 629

CITY OF FONTANA
Notes to the Financial Statements
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 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.

Mello-Roos Community Facilities Districts
Between 1988 and 2023, twenty Community Facilities Districts have issued Special Tax Bonds. The bonds are authorized pursuant to the MelloRoos 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, 2023. 65 630

CITY OF FONTANA
Notes to the Financial Statements
Note 9. 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.

Special Tax Bonds Date of Issue
Original Issue
Amount
Outstanding
Amount at
June 30, 2023
CFD # 7 Series B (Sierra Lakes) July 2021 1,445,000$ 1,270,000$ CFD # 11 (Heritage West End) July 2021 2,995,000 2,625,000 CFD # 12 Series A (Sierra Lakes) July 2021 9,950,000 9,040,000 CFD # 22 (Sierra Hills South) June 2014 31,260,000 21,815,000 CFD # 31 (Citrus Heights North) July 2018 18,485,000 15,475,000 CFD # 31 (Citrus Heights North) October 2021 8,025,000 8,025,000 CFD # 37 (Montelago) July 2021 2,135,000 2,025,000
CFD # 70 (Avellino) July 2021 1,975,000 1,925,000
CFD # 71 (Sierra Crest) July 2016 5,915,000 5,015,000
CFD #74B (Citrus/Summit) June 2019 4,045,000 3,805,000
CFD # 80 (Bella Strada) August 2017 11,125,000 10,030,000 CFD # 81 (Gabriella) March 2018 7,180,000 6,585,000
CFD #86 (Etiwanda Ridge) February 2020 5,025,000 4,710,000 CFD #85 (The Meadows) October 2020 22,640,000 21,650,000 CFD #88 (Sierra Crest II) October 2020 6,510,000 6,385,000 CFD #89 (Belrose) November 2020 5,725,000 5,430,000
CFD #90 (Summit @ Rosena I) June 2021 22,260,000 21,840,000 CFD #87 (El Paseo) July 2021 5,325,000 5,220,000
CFD #95 (Summit @ Rosena 2) May 2022 9,305,000 9,080,000 CFD #106 (Mountainview) August 2022 6,940,000 6,940,000 CFD #99 (The Retreat) May 2023 4,630,000 4,630,000
Total Special Tax Bonds 192,895,000$ 173,520,000$
66 631

CITY OF FONTANA
Notes to the Financial Statements
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.

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 10. 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.

Claims payable, June 30, 2021 13,983,035$
Claims incurred (including IBNRs) 10,590,633
Claims paid/dismissed (3,919,668)
Claims payable, June 30, 2022 20,654,000$
Claims incurred (including IBNRs) 6,946,328
Claims paid/dismissed (5,015,352)
Claims payable, June 30, 2023 22,584,976$
67 632

CITY OF FONTANA
Notes to the Financial Statements
Note 11. 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 ten 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 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 12. Other Post-Employment Benefits Liability
Plan Description
In addition to the pension benefits described in Note 13, 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, 2022, 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, 2023, the City’s cash contributions were $2,193,387 in the form of current premiums, which is funded through the General Fund, and the estimated implied subsidy was $646,252 resulting in total payments of $3,034,840.

Active employees 577
Inactive employees or beneficiaries currently receiving benefits 239 Inactive employees entitled to, but not yet receiving benefits 0 Total 816
68 633

CITY OF FONTANA
Notes to the Financial Statements
OPEB Liability
The City’s OPEB liability was measured as of June 30, 2022, and was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. Under GASB 75, the discount rated used in valuing OPEB liabilities as of the Measurement Date for an unfunded plan is a single rate that reflects a yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale).

Actuarial Cost Method: Entry Age Normal
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Mortality Rate
Pre-Retirement Turnover
Healthcare Trend Rate

6.00%

2.30%

2.80% per annum, in aggregate
Derived using CalPERS’ Membership Data
for all funds
Derived using CalPERS’ Membership Data
for all funds
Based on 2021 Getzen model that reflects
actual premium increases through 2023
followed by 5.50% non-Medicare/ 5.3%
Medicare, gradually decreasing to an
ultimate rate of 4.04% in 2075.
69 634

CITY OF FONTANA
Notes to the Financial Statements
Changes in the OPEB Liability
The changes in the OPEB liability for the OPEB Plan are as follows:

Sensitivity of the Net 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, 2022:

Net OPEB
Liability
Balance at June 30, 2022
(Measurement Date June 30, 2022) $ 68,859,033
Changes recognized for the measurement period:

Service cost 795,323
Interest 1,494,505
Differences between expected and actual experience (4,893,445) Changes of assumptions (22,969,516)
Contributions - employer (26,652,051)
Net investment income 2,249,921
Administrative expense 8,992
Net Changes (49,966,271)
Balance at June 30, 2023
(Measurement Date June 30, 2022) $ 18,892,762
Increase (Decrease)
1% Decrease
(5.00%)
Current
Discount Rate
(6.00%)
1% Increase
(7.00%)
OPEB Liability $ 18,892,762$ 15,080,933$ 23,422,421
70 635

CITY OF FONTANA
Notes to the Financial Statements
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, 2022:

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $287,181. As of fiscal year ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

The $3,034,840 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024.

1% Decrease
(4.50% decreasing
to 3.04%)
Current Healthcare
Cost Trend Rates
(5.50% decreasing to

4.04%)
1% Increase
(6.50%
decreasing to

5.04%)
Net OPEB Liability $ 18,892,762$ 23,999,536$ 14,596,641 Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 3,034,840$ -$ Changes of assumptions 8,784,746 20,417,348
Net difference between projected and actual earnings on OPEB plan investments 2,362,898 - Differences between expected and actual experience - 12,818,020 Total 14,182,484$ 33,235,368$
71 636

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 OPEB expense as follows:

Note 13. 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, 2021, 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.

Measurement
period Ended
June 30:

Deferred
Outflows/(Inflows)
of Resources
2023 $ (2,459,951)
2024 (2,459,951)
2025 (2,459,951)
2026 (2,459,949)
2027 (3,050,675)
Thereafter (9,197,247)
72 637

CITY OF FONTANA
Notes to the Financial Statements
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, 2023, are summarized as follows:

Employees Covered
As of the June 30, 2022, measurement date, the following employees were covered by the benefit terms for each Plan:

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 Tier I Tier II Tier III
Prior to On or after After Prior to On or after
Hire Date Hire Date July 1, 2011 July 1, 2011 January 1, 2013 July 1, 2011 July 1, 2011 Benefit formula Benefit Formula 3% @ 50 3% @ 55 2.7% @ 57 2.5% @ 55 2% @ 62 Final Average Compensation Period 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 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 Benefit Payments Monthly Monthly Monthly Monthly Monthly Retirement age Retirement Age 50 and above 50 and above 50 and above 55 and above 55 and above Monthly benefit basis Monthly Benefit Basis Benefit factor, years of service and final
compensation
Benefit factor, years of
service and final
compensation
Benefit factor, years of
service and final
compensation
Benefit factor, years of
service and final
compensation
Benefit factor, years of
service and final
compensation
Safety Miscellaneous
Safety Miscellaneous
208 557
73 1,013
Active employees 189 502
Total 470 2,072
Inactive employees or beneficiaries
currently receiving benefits
Inactive employees entitled to but
not yet receiving benefits
73 638

CITY OF FONTANA
Notes to the Financial Statements
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, 2021, valuation was rolled forward to determine the June 30, 2022, total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
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 2.30% until Purchasing
Power Protection
Allowance floor on purchasing power applies, 2.30% thereafter 1 The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

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

74 639

CITY OF FONTANA
Notes to the Financial Statements
Discount Rate
The discount rate used to measure the total pension liability was 6.90 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Asset Class 1 Assumed Asset
Allocation
Real
Return 1,2
Global Equity – Cap weighted 30.0% 4.54%
Global Equity – Non-Cap weighted 12.0 3.84
Private Equity 13.0 7.28
Treasury 5.0 0.27
Mortgage-backed Securities 5.0 0.50
Investment Grade Corporates 10.0 1.56
High Yield 5.0 2.27
Emerging Market Debt 5.0 2.48
Private Debt 5.0 3.57
Real Assets 15.0 3.21
Leverage (5.0) (0.59)
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.

75 640

CITY OF FONTANA
Notes to the Financial Statements
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-financialreports.

Liability, Expense and Deferred Outflows/Inflows
The components of the net pension liability at June 30, 2023, are as follows:

Pension expense
At June 30, 2023, the City recognized pension expense for CalPERS of $28,829,432.

Total Pension Liability $611,711,857
Plan's Fiduciary Net Position 407,286,024
Net Pension Liability $204,425,833
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 66.58%
76 641

CITY OF FONTANA
Notes to the Financial Statements
Deferred Outflows/Inflows
At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Safety Plan
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 14,423,033 $ -
Differences between Expected and Actual
Experience 5,327,253 (80,490)
Changes of Assumptions 11,453,753 (47,729)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
10,939,217 -
$ 42,143,256 $ (128,219)
Misc Plan
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 8,960,523 $ -
Differences between Expected and Actual
Experience 74,026 (1,041,213)
Changes of Assumptions 6,741,084 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
9,601,389 -
$ 25,377,022 $ (1,041,213)
77 642

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: 6/30/2021 (VD) $317,342,165 $231,646,538 $85,695,627 Changes Recognized for the Measurement Period:

Service Cost 7,533,954 7,533,954
Interest on the Total Pension Liability 22,633,582 22,633,582 Changes of Benefit Terms - -
Differences between Expected and Actual Experience (99,208) (99,208) Changes of Assumptions 14,117,417 14,117,417
Net Plan to Plan Resource Movement - -
Contributions from the Employer 13,170,539 (13,170,539) Contributions from Employees 2,815,197 (2,815,197)
Net Investment Income (17,840,625) 17,840,625
Benefit Payments, including Refunds of Employee Contributions (14,208,832) (14,208,832) - Administrative Expense (144,302) 144,302
Other Miscellaneous Income/(Expense) -
Net Changes during 2021-22 29,976,913 (16,208,023) 46,184,936 Balance at: 6/30/2022 (MD) $347,319,078 $215,438,515 $131,880,563 Increase (Decrease)
78 643

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:

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 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (5.90 percent) or one percentage-point higher (7.90 percent) than the current rate:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2020 (VD) $244,097,778 $208,946,661 $35,151,117 Changes Recognized for the Measurement Period:

Service Cost 5,312,666 5,312,666
Interest on the Total Pension Liability 17,253,263 17,253,263 Differences between Expected and Actual Experience (1,093,834) (1,093,834) Changes of Assumptions 9,951,124 9,951,124
Contributions from the Employer 7,805,249 (7,805,249)
Contributions from Employees 2,123,002 (2,123,002)
Net Investment Income (15,769,024) 15,769,024
Benefit Payments, including Refunds of Employee Contributions (11,128,218) (11,128,218) - Administrative Expense (130,161) 130,161
Other Miscellaneous Income/(Expense) -
Net Changes during 2020-21 20,295,001 (17,099,152) 37,394,153 Balance at: 6/30/2021 (MD) $264,392,779 $191,847,509 $72,545,270 Increase (Decrease)
79 644

CITY OF FONTANA
Notes to the Financial Statements
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, 2022, was 5.3 years, which was obtained by dividing the total service years of 2,434 (the sum of remaining service lifetimes of the active employees) by 458 (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.

The EARSL for the Miscellaneous Plan for the measurement period ending June 30, 2022, was 3.1 years, which was obtained by dividing the total service years of 6,175 (the sum of remaining service lifetimes of the active employees) by 1,992 (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%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate + 1%
(7.90%)
Plan’s Net Pension Liability
Safety $183,131,874 $131,880,563 $90,251,039
Plan’s Net Pension Liability
Misc. $111,233,426 $72,545,270 $41,042,029
80 645

CITY OF FONTANA
Notes to the Financial Statements
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the measurement period ending June 30, 2022 (the measurement date), the City of Fontana recognized a pension expense of $18,990,371 for the Safety Plan.

As of June 30, 2023, 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 $14,423,033 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 fiscal year ended June 30, 2024.

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

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 14,423,033 $ -
Differences between Expected and Actual
Experience 5,327,253 (80,490)
Changes of Assumptions 11,453,753 (47,729)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
10,939,217 -
Total $ 42,143,256 $ (128,219)
Measurement period
Ended June 30:

Deferred
Outflows/(Inflows) of
Resources
2023 $ 7,005,062
2024 6,191,279
2025 4,160,288
2026 9,441,896
2027 793,479
Thereafter -
81 646

CITY OF FONTANA
Notes to the Financial Statements
For the measurement period ending June 30, 2022 (the measurement date), the City of Fontana recognized a pension expense of $9,839,061 for the Miscellaneous Plan.

As of June 30, 2023, 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 $8,960,523, 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, 2024.

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

Measurement period Ended
June 30:

Deferred
Outflows/(Inflows) of
Resources
2023 $ 4,198,390
2024 4,170,536
2025 982,171
2026 6,024,189
Thereafter -
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 8,960,523 $ -
Differences between Expected and Actual
Experience 74,026 (1,041,213)
6,741,084 -
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
9,601,389 -
$ 25,377,022 $ (1,041,213)
82 647

CITY OF FONTANA
Notes to the Financial Statements
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modification to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Note 14. 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.

Measurement period Ended
June 30:

Deferred
Outflows/(Inflows) of
Resources
2023 $ 4,198,390
2024 4,170,536
2025 982,171
2026 6,024,189
Thereafter -
83 648

CITY OF FONTANA
Notes to the Financial Statements
Note 15. 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, the 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 Chief Finance Officer is authorized to assign amounts to a specific purpose, which was established by the governing body in Administrative Policy # 20-32.

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.

84 649

CITY OF FONTANA
Notes to the Financial Statements
The details of the fund balances as of June 30, 2023, 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:
 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, 2023, is $32,411,496 and is included in the committed fund balance in the General Fund.

Fire Future Community Other
Protection Housing Economic Capital Capital Sewer Facilities Traffic Governmental General District Authority Stimulus Reinvestment Projects Expansion Districts Mitigation Funds Totals Fund balances:

Nonspendable
Deposits 100,384$ -$ -$ -$ -$ -$ -$ -$ -$ 35,266$ 135,650$ Inventories 407,053 - - - - - - - - 871,931 1,278,984
Land held for resale - - - - 5,650,178 4,379,694 - - - - 10,029,872 Loan receivables 23,599,749 - - - - - - - - 10,695,724 34,295,473 Total Nonspendable 24,107,186 - - - 5,650,178 4,379,694 - - - 11,602,921 45,739,979 Restricted
Community facilities districts - - - - - - - 30,257,097 - 31,778,634 62,035,731 Community services - - - - - - - - - 3,842,874 3,842,874 Government-access channel 1,703,897 - - - - - - - - - 1,703,897 Housing & community development - - 85,876,784 115,399 - - - - 15,444,197 3,400,200 104,836,580 Section 115 Pension Trust 10,694,317 - - - - - - - - - 10,694,317 Lighting and landscaping - - - - - - - - - 4,032,407 4,032,407 Municipal Services Impact - - - - - - - - - 22,362,925 22,362,925 Public safety - 26,432,199 - - - - - - - 16,772,006 43,204,205 Transportation - - - - - - - - - 23,096,657 23,096,657
Solid waste mitigation - - - - - - - - 4,809,310 4,809,310 - Total Restricted 12,398,214 26,432,199 85,876,784 115,399 - - - 30,257,097 15,444,197 110,095,013 280,618,903 Committed
Economic uncertainty 32,411,496 - - - - - - - - - 32,411,496 Assigned
Capital projects 1,101,781 - - - 20,310,139 37,658,283 345,456 - - 113,943,770 173,359,429 Retiree benefits 2,042,030 - - - - - - - - - 2,042,030
Total Assigned 3,143,811 - - - 20,310,139 37,658,283 345,456 - - 113,943,770 175,401,459 Unassigned - - - - - - 2,252,135 6,357,308 45,200,677 (12,811,460) 40,998,660 Total fund balances $ 26,432,199$ 85,876,784$ 115,399$ 25,960,317$ 42,037,977$ 345,456$ 32,509,232$ 21,801,505$ 222,830,244$ 575,170,497$ 117,261,384 Special Revenue Capital Project
85 650

CITY OF FONTANA
Notes to the Financial Statements
Note 16: 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.

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, 2023, the District reported $46,859,421 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.

86 651

CITY OF FONTANA
Notes to the Financial Statements
b. Capital Assets
An analysis of capital assets as of June 30, 2023, follows:

Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental Activities:

Public safety – fire protection $ 1,284,511
c. Long-Term Debt
The District does not have any outstanding debt as of June 30, 2023.

Balance Balance
June 30, 2022 Increases Decreases June 30, 2023
Capital assets, not being depreciated
$ -$ -$ 1,122,000$ 1,122,000
- - 1,122,000 1,122,000
Capital assets, being depreciated
14,100 - 16,427,503 16,413,403
505,015 - 3,045,224 2,540,209
Vehicles 12,340,122 - - 12,340,122
Infrastructure 1,012,418 - - 1,012,418
519,115 - 32,825,267 32,306,152
Less accumulated depreciation for:
(469,966) - (5,162,287) (4,692,321)
(243,416) - (1,645,568) (1,402,152)
(537,306) - (8,447,440) (7,910,134)
(33,823) - (306,428) (272,605)
(1,284,511) - (15,561,723) (14,277,212)
(765,396) - 17,263,544 18,028,940
Total Capital assets, net $ (765,396)$ -$ 18,385,544$ 19,150,940 Buildings and improvements
Machinery and equipment
Vehicles
Infrastructure
Total capital assets, being depreciated, net
Land
Total capital assets, not being depreciated
Buildings and improvements
Machinery and equipment
87 652

CITY OF FONTANA
Notes to the Financial Statements
d. Fund Balance
The district reports fund balances in accordance with the classifications consistent with the City, see Note 15 for more information on the types and descriptions of the fund balance classifications. The details of the fund balances as of June 30, 2023, 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 $39,973,150 to the County for these services during the fiscal year ending June 30, 2023. 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.

The details of the contract expenses for the fiscal year ending June 30, 2023, are as follows:

Fire Fire Fire
Protection Protection Protection
District District CFD District Totals
Fund balances:

Restricted
Public safety 26,432,199$ 4,475,365$ -$ 30,907,564$
Assigned
Equipment replacement - - 38,377,217 38,377,217
Total fund balances $ 4,475,365$ 38,377,217$ 69,284,781$ 26,432,199 Special Revenue Capital Project
Salaries and benefits 32,984,472$
Services and supplies 3,705,043
Station expenses 1,361,099
Fire Prevention services 369,310
County contract management fee 1,553,226
Total contract expenses 39,973,150$
88 653

CITY OF FONTANA
Notes to the Financial Statements
Note 17. 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 return the assets to the Successor Agency in a timely manner. As of June 30, 2023, 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, 2023, 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.

89 654

CITY OF FONTANA
Notes to the Financial Statements
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, 2023, 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, 2023, was $1,480,000. 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, 2023, was $50,945. 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 19,569,155$
Cash and investments with fiscal agent 2,909
$ 19,572,064
90 655

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, 2023, follows:

Amounts Amounts
Balance Balance Due Within Due in More
Fiduciary Activities: June 30, 2022 Additions Retirements June 30, 2023 One Year Than One Year Tax Allocation Bonds and Notes:
2017 Tax Allocation Refunding Bonds 161,240,000$ $ - 11,240,000$ 150,000,000$ 11,770,000$ 138,230,000$ 2018 Tax Allocation Refunding Bonds 22,550,000 - 3,315,000 19,235,000 3,480,000 15,755,000 Other Redevelopment Agency:

Advances from City 28,284,047 - 1,378,469 26,905,578 1,543,885 25,361,693 Ow ner participation agreements 207,380,374 362,520 - 207,742,894 - 207,742,894 Total Redevelopment Agency 419,454,421$ 362,520$ 15,933,469$ 403,883,472$ 16,793,885$ 387,089,587$ Unamortized bond premium 31,126,203 31,126,203
$ 435,009,675 $ 418,215,790
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.

91 656

CITY OF FONTANA
Notes to the Financial Statements
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. 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.

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.

Principal Interest Total
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 13,380,000 5,158,500 18,538,500
2028 14,030,000 4,491,450 18,521,450
2029-2033 73,980,000 11,729,125 85,709,125
2034-2037 11,810,000 792,750 12,602,750
Totals 150,000,000$ 41,343,694$ 191,343,694$
2017 Tax Allocation Refunding Bonds
92 657

CITY OF FONTANA
Notes to the Financial Statements
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.

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, 2023 does not include $792,082,611 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 $207,740,002. 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 $212,976,819 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 $34,924,052 and the debt service obligation on the bonds was $23,133,150. 93 658

CITY OF FONTANA
Notes to the Financial Statements
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, 2023, 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.

Note 18. 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 the following OCA’s 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:

An operating covenant agreement with a retailer of consumer products to retain their distribution center within the City for a period of no less than 20 years commencing December 15, 2015. The retention of the distribution center will generate substantial revenue, retain and create new jobs, revitalize the City and result in community and public improvements. The City agreed to refund, on a quarterly basis, 50% of sales tax revenues attributable to taxable sales above the first $50,000 in sales tax revenue received by the City within said quarter.

An operating covenant agreement with an automotive dealership to continue to operate their automobile sales business within the City for a period of up to 12 years or until $1,800,000 in sales tax revenue is refunded to the dealership commencing January 29, 2020. The operation of business has been determined to result in substantial benefits to the City and its citizens including the creation of new jobs, property tax revenues, sales tax revenues, etc. The City agreed to refund 50% of all sales tax revenue up to a maximum amount of $1,800,000 with an additional bonus payment of $240,000 for the dealership’s commencement of operations.

An operating covenant agreement with an automotive dealership to continue to operate their automobile sales business within the City for a period of up to 12 years or until $2,400,000 in sales tax revenue is refunded commencing September 15, 2021. The City has determined the continued operation of the business will result in significant new employment opportunities, property tax and sales tax revenues. The City agreed to refund 50% of all sales tax revenue per year up to a maximum amount of $2,400,000. 94 659

CITY OF FONTANA
Notes to the Financial Statements
Note 19. Prior Period Adjustments
During the year ended June 30, 2023, the City made prior period adjustments as follows:

Governmental and Government-wide restatement to correct prior year gas tax revenues.

Governmental funds - General Fund restatement to record prior year expenditures for contributions to the City’s Section 115 trust.

Other
Governmental Governmental
Activities Funds
Net position at July 1, 2022, as previously reported 1,010,558,692$ 206,632,130$ Prior period adjustments:

To correct prior year gas tax revenue (475,528) (475,528) To correct contributions to OPEB Trust (21,553,499) -
Net position at July 1, 2022, as restated 988,529,665$ 206,156,602$ General Fund
Fund balance at July 1, 2022, as previously reported 124,061,436$ Correct Section 115 Trust payment for prior year expenditures (21,553,499) Fund Balance at July 1, 2022, as restated 102,507,937$
95 660
Measurement Period 2022 2021 2020 2019 2018 2017 2016 2015 2014

TOTAL PENSION LIABILITY
Service Cost 7,533,954$ 6,559,973$ 6,574,765$ 6,391,012$ 6,252,517$ 6,181,410$ 5,464,647$ 5,255,619$ 5,261,265$ Interest 22,633,582 21,409,558 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 (99,208) 1,072,506 6,367,568 6,274,697 1,250,890 (544,846) 773,988 463,048 - Changes of Assumptions 14,117,417 - - - (445,464) 15,075,525 - (3,940,129) - Benefit Payments, Including Refunds of Employee Contributions (14,208,832) (13,563,503) (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 29,976,913 15,478,534 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 317,342,165 301,863,631 281,289,663 261,242,997 246,940,057 218,975,649 205,728,839 197,274,427 185,444,965 Total Pension Liability – Ending (a) 347,319,078$ 317,342,165$ 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 13,170,539 11,820,068 10,500,692 9,196,355 8,215,736 7,706,792 6,985,270 6,756,772 6,213,039 Contributions – Employee 2,815,197 2,877,842 2,720,062 2,639,928 2,577,060 2,509,352 2,505,888 2,177,122 1,764,545 Net Investment Income (17,840,625) 43,154,767 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 (14,208,832) (13,563,503) (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 (144,302) (187,346) (251,361) (118,778) (696,076) (203,553) (83,139) (153,538) - Net Change in Fiduciary Net Position (16,208,023) 44,101,828 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 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 112,335,963 Plan Fiduciary Net Position – Ending (b) 215,438,515 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 Plan Net Pension Liability – Ending (a) - (b) 131,880,563$ 85,695,627$ 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 62.03% 73.00% 62.13% 63.39% 63.92% 62.36% 62.96% 66.31% 67.28% Covered Payroll 24,976,011 23,795,599 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 528.03% 360.13% 493.63% 459.03% 432.71% 434.06% 383.00% 344.47% 333.42% Notes to Schedule:

GASB 68 was implemented in FY 2014-15, therefore only nine years of information is being presented.

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.In 2019, 2020 and 2021, 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
Safety Plan
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period 96 661
Measurement Period 2022 2021 2020 2019 2018 2017 2016 2015 2014

TOTAL PENSION LIABILITY
Service Cost 5,312,666$ 4,943,305$ 5,099,318$ 5,057,352$ 4,814,030$ 4,788,249$ 4,194,877$ 4,254,965$ 4,004,767$ Interest 17,253,263 16,462,337 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 (1,093,834) (800,611) 629,230 5,210,993 (556,946) (1,186,594) (1,811,514) (1,027,499) - Changes of Assumptions 9,951,124 - - - (972,809) 11,708,939 - (3,097,256) - Benefit Payments, Including Refunds of Employee Contributions (11,128,218) (10,157,377) (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 20,295,001 10,447,654 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 244,097,778 233,650,124 221,320,262 204,257,961 194,922,262 173,146,801 164,767,029 158,783,146 149,625,918 Total Pension Liability – Ending (a) 264,392,779$ 244,097,778$ 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 7,805,249 7,329,666 6,606,745 5,841,667 5,081,435 4,478,806 4,452,429 3,868,104 3,657,678 Contributions – Employee 2,123,002 2,383,713 2,313,683 2,369,932 2,238,093 2,148,688 2,157,198 2,068,784 2,016,250 Net Investment Income (15,769,024) 38,806,647 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 (11,128,218) (10,157,377) (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 (130,161) (170,573) (229,660) (108,649) (640,045) (188,255) (77,240) (142,590) - Net Change in Fiduciary Net Position (17,099,152) 38,192,076 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 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 105,930,458 Plan Fiduciary Net Position – Ending (b) 191,847,509 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 Plan Net Pension Liability – Ending (a) - (b) 72,545,270$ 35,151,117$ 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 72.56% 85.60% 73.08% 73.61% 74.78% 72.69% 73.64% 76.92% 78.14% Covered Payroll 31,672,556 32,584,261 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 229.05% 107.88% 198.33% 194.19% 176.38% 183.92% 161.00% 134.75% 138.55% Notes to Schedule:

GASB 68 was implemented in FY 2014-15, therefore only nine years of information is being presented.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.In 2019, 2020 and 2021, 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 Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 97 662
Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially Determined Contribution $ 14,423,033 $ 13,332,172 $ 11,820,068 $ 10,500,692 $ 9,196,355 $ 8,215,736 $ 7,706,792 $ 6,985,270 $ 6,756,772 $ 6,213,039 Contributions in Relation to the
Actuarially Determined Contribution (14,423,033) (13,332,172) (11,820,068) (10,500,692) (9,132,884) (8,215,736) (7,706,792) (6,985,270) (6,756,772) (6,213,039) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 25,478,199 $ 24,976,011 $ 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 56.61% 53.38% 49.67% 45.34% 40.99% 37.72% 35.99% 32.99% 33.58% 32.09% Notes to Schedule:

Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2020 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
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were from the June 30, 2020 public agency valuations.

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

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality using 90% of Scale MP-2016 published by the Society of Actuaries.

CITY OF FONTANA
Schedule of Plan Contributions
Safety Plan
98 663
Fiscal Year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially Determined Contribution $ 8,960,523 $ 7,920,425 $ 7,329,666 $ 6,606,745 $ 5,841,667 $ 5,081,435 $ 4,478,806 $ 4,452,429 $ 3,868,104 $ 3,657,678 Contributions in Relation to the
Actuarially Determined Contribution (8,960,523) (7,920,425) (7,329,666) (6,606,745) (5,841,667) (5,081,435) (4,478,806) (4,452,429) (3,868,104) (3,657,678) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 34,201,914 $ 31,672,556 $ 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 26.20% 25.01% 22.49% 20.83% 19.42% 17.40% 15.47% 15.71% 13.71% 14.60% Notes to Schedule:

Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method/Period For details, see June 30, 2020 Funding Valuation Report Asset Valuation Method Actuarial Value of Assets. For details, see June 30, 2020 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
Mortality 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 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 2022-23 were from the June 30, 2020 public agency valuations.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. 99 664
Measurement Period 2022 2021 2020 2019 2018 2017

TOTAL OPEB LIABILITY
Service cost 795,323$ 1,973,739$ 1,406,780$ 1,114,136$ 1,109,799$ 1,073,307$ Interest on the total OPEB liability 1,494,505 1,909,977 2,328,825 2,442,178 2,377,354 2,345,864 Actual and expected experience difference (4,893,445) (7,638,248) (3,610,614) (1,274,244) - - Changes in assumptions (22,969,516) 4,351,220 7,714,949 (3,295,758) (1,014,856) - Changes in benefit terms - - - - - -
Benefit payments (2,839,639) (3,114,653) (2,784,909) (2,653,423) (2,591,180) (2,467,790) Net change in Total OPEB liability (2,517,965) 5,055,031 (3,667,111) (118,883) 951,381 (28,412,772) Total OPEB liability - beginning 68,859,033 71,376,998 66,321,967 69,989,078 70,107,961 69,156,580 Total OPEB liability - ending (a) $ 40,446,261 68,859,033$ 71,376,998$ 66,321,967$ 69,989,078$ 70,107,961$

PLAN FIDUCIARY NET POSITION
Contribution - employer 26,652,051$ 3,114,653$ 2,784,909$ 2,653,426$ 2,591,180$ 2,467,790$ Net investment income (2,249,921) - - - - -
Benefit payments (2,839,639) (3,114,653) (2,784,909) (2,653,426) (2,591,180) (2,467,790) Administrative expense (8,992) - - - - -
Net change in plan fiduciary net position 21,553,499 - - - - - Net OPEB liability - ending (a)-(b) $ 18,892,762 $ 68,859,033 $ 71,376,998 $ 66,321,967 $ 69,989,078 $ 70,107,961 Covered-employee payroll $ 49,452,985$ 54,870,910$ 52,516,604$ 50,986,994$ 50,359,691$ 50,801,314 Net OPEB liability as a percentage of covered-employee payroll 37.19% 139.24% 130.08% 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.

CITY OF FONTANA
Schedule of Changes in Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30,
100
665
Non-Major Governmental Funds
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. 101
666
Non-Major Governmental Funds
Special Revenue Funds (continued)
Grants - To account for miscellaneous Federal, State and County grants requiring segregated fund accounting.

TDA/ Article 3 – To account for bicycle and pedestrian projects. SBCTA oversees the disbursement of 2% of the Local Transportation Funds (LTF) made available to counties and cities for facilities geared towards the exclusive used of pedestrians and bicyclists.

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.

ASES ELO-P – To account for funding pertaining to afterschool and summer school enrichment programs for kindergarten (which may include transitional kindergarten) through sixth grade as described in California Education Code (EC) Section 46120.

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.

Housing Authority AB 1486 – To account for receipts and expenditures of surplus land disposition proceeds as required for affordable housing under AB-1486.

Permanent Local Housing Allocation – To account for receipts and expenditures of the State Permanent Local Housing Allocation fund that must be used for housing-related projects and programs that assist unmet housing needs in the City.

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.

Landscape Maintenance Districts - To account for special benefit assessments levied on property owners for landscape maintenance in various zones throughout the City.
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667
Non-Major Governmental Funds
Special Revenue Funds (continued)
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.

AB 2928 – To account for receipt of seized assets that were proceeds from or used in illegal activities.

Opioid Settlement – To account for receipts and expenditures of money from Opioid Settlements.

ARPA - To account for receipts from San Bernardino County for expenditures for enhancements to Veterans Park, Jack Bulik Park, Center Stage Theater and Cypress-Knoph Community.

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.

Debt Service Funds
General Debt Service – To account for debt service payments on general City obligations.

Capital Project Funds
The Capital Project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Storm Drain - To account for receipts from drainage fees imposed on developers, for the construction of storm drainage facilities within the City limits.

San Sevaine Flood Control - To account for flood control fees collected for the construction of flood control improvements in the San Sevaine Area.

Upper Etiwanda Flood Control- To account for flood control fees collected for the construction of flood control improvements.

Park Development- To account for receipts and expenditures from park development fees for new parks and renovation of existing parks.

Landscape Improvements - To account for landscaping improvement fees used to improve landscaping Citywide.

Library Capital Improvement - To account for developer impact fees used for the construction of library facilities.

Police Facility- To account for development impact fees to fund capital improvements of police facilities and equipment. 103
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Non-Major Governmental Funds
Capital Project Funds (continued)
Capital Improvements- To account for monies expended on miscellaneous capital improvements.

General Government Improvement - To account for developer impact fees used for the capital construction of City facilities.

Underground Utilities - To account for developer fees used for offsetting the cost of relocating electrical and cable lines underground to enhance the appearance and the safety of the community.

Fire Assessment - To account for revenues from special tax assessments and for expenditures relating to fire prevention and protection.

Affordable Housing Trust - to account inclusionary housing and affordable housing developer impact fees to be used to construct, rehabilitate or subsidize affordable housing that complies with the Affordable Housing Trust Fund regulations.

Fire Protection District - To account for monies expended on capital improvements and equipment replacement for the Fontana Fire Protection District.

Fontana Housing Authority- To account for costs associated with the Housing Authority, a separate legal entity governed by California State Housing Authority law. The Housing Authority uses funds from the Fontana Redevelopment Agency's Low and Moderate Income Housing Fund and Federal Department of Housing and Urban Development Program Grants to actively improve and develop quality neighborhoods and housing opportunities throughout the City of Fontana.
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CITY OF FONTANA
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Schedule 1