ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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
Matthew C. Ballantyne, City Manager
PREPARED BY THE CITY OF FONTANA FINANCE DEPARTMENT
Jessica Brown, Chief Financial Officer
City of Fontana, California
Table of Contents
June 30, 2024
Introductory Section
Letter of Transmittal ................................................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................................. ix List of Principal Officials.......................................................................................................................................... x Organizational Chart .............................................................................................................................................. xi Financial Section
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis .................................................................................................................... 5 Government Wide Financial Statements
Statement of Net Position ................................................................................................................................... 19 Statement of Activities ........................................................................................................................................ 20 Government Fund Financial Statements
Balance Sheet ...................................................................................................................................................... 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ....................... 24 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................. 25 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
General Fund .............................................................................................................................................. 28 Fire Protection District ............................................................................................................................... 29 Housing Authority Low/Mod Housing Fund ............................................................................................... 30 Economic Stimulus ..................................................................................................................................... 31 Grants Fund ................................................................................................................................................ 32 Traffic Congestion Relief ............................................................................................................................ 33 Proprietary Fund Financial Statements
Statement of Net Position ................................................................................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................... 35 Statement of Cash Flows ..................................................................................................................................... 36 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ................................................................................................................... 37 Statement of Changes in Fiduciary Net Position ................................................................................................. 38 Notes Financial Statements ..................................................................................................................................... 39 Required Supplementary Information
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Safety Plan ........................................................................................................................................................... 97 Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Miscellaneous Plan .............................................................................................................................................. 98 Schedule of Plan Contributions – Safety Plan .................................................................................. ................... 99
Schedule of Plan Contributions – Miscellaneous Plan ...................................................................................... 100 Schedule of Changes in Net OPEB Liability and Related Ratios ......................................................................... 101 Other Post Employment Benefit Plan Schedule of Investment Returns ........................................................... 102 City of Fontana, California
Table of Contents
June 30, 2024
Supplem
entary Information
Non-Major Governmental Funds
Combining Balance Sheet .................................................................................................................................. 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 119 Governmental Funds
Budgetary Comparison Schedules ..................................................................................................................... 131 Enterprise Funds
Combining Statement of Proprietary Net Position ........................................................................................... 154 Combining Statement of Changes in Proprietary Net Position ......................................................................... 155 Combining Statement of Cash Flows in Proprietary Net Position ..................................................................... 156 Custodial Funds
Combining Statement of Fiduciary Net Position ............................................................................................... 159 Combining Statement of Changes in Fiduciary Net Position ............................................................................. 161 Statistical Section
Net Position by Component .............................................................................................................................. 166 Changes in Net Position ..................................................................................................................................... 167 Fund Balances – Governmental Funds .............................................................................................................. 169 Changes in Fund Balances of Governmental Funds .......................................................................................... 170 Assessed Value and Estimated Actual Value of Taxable Property .................................................................... 172 Direct and Overlapping Property Tax Rates ...................................................................................................... 173 Principal Property Taxpayers ............................................................................................................................. 174 Property Tax Levies and Collections .................................................................................................................. 175 Ratio of Outstanding Debt by Type ................................................................................................................... 176 Ratio of General Bonded Debt Outstanding ...................................................................................................... 177 Direct and Overlapping Bonded Debt ............................................................................................................... 178 Legal Debt Margin Information ......................................................................................................................... 179 Demographic and Economic Statistics .............................................................................................................. 180 Principal Employers ........................................................................................................................................... 181 Full-Time City Government Employees by Function ......................................................................................... 182 Operating Indicators by Function/Program ...................................................................................................... 183 Capital Asset Statistics by Function/Program .................................................................................................... 184 Miscellaneous Statistical Information ............................................................................................................... 185 i
March 3
1, 2025
The Honorable Mayor, Members of the City Council and Citizens of the City of Fontana State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity wi th generally accepted accounting principles (GAAP) and audited in accordan ce with generally accepted au diting 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, 2024.
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 Font ana’s financial statements in conformity with GAAP. Because the cost of internal controls should not ou tweigh 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 Eide Bailly LLP, a firm of licensed certified public accountants. The go al 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, 2024, are free of material mi sstatement. The indepe ndent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principl es used and 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, 2024, 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.
City of Fontana
C A L I F O R N I A
ii
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 requ ire 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 requir ements 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 mile s east of Los Angeles. The City spans approximately 42.4 square miles and has an estimated population of 215,465. 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, un der 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 650 full-time empl oyees. Services provided include police protection; cont ract 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 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 th e 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.
iii
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 ma y amend the budget at any time during the fiscal year. Budget reports are presented to th e City Council and the public on a quarterly basis. They include appropriation adjustment s and revised revenue pr ojections 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’s economy continues to exhibit a complex mix of resilience and emerging challenges. Key economic indicators point to stable employment levels despite national uncertainty, the housing market stabilizing alongside steady new home construction, moderate consumer spending, and a recovering retail sector led by grocery and discount stores, though challenges like high mortgage rates and housing affordability persist.
These trends suggest a cautiously optimistic outlook.
Balanced Growth. Fontana’s labor market has sh own steady improvement, with unemployment holding relatively low despite br oader economic pressures. After a modest increase from 4.2% in February 2023 to ap proximately 4.5% by June 2024, employment levels remain stable and reflect the Inland Empire’s broader trend of balanced economic growth. The region continues to expand gradually, supported by key sectors like logistics, healthcare, and local government, with no indi cators pointing to a significant economic slowdown.
Retail Sales Are Decreasing. Taxable sales remain a vital revenue source for the City of Fontana. While the City experienced a 4% year-over-year increase in sales tax revenue from June 2022 to June 2023, FY 2023-24 saw a 5.4% decline in taxable sales compared to the prior year. This shift reflects a normalization of consumer spending following post-pandemic surges, rather than a sign of economic weak ness. This moderation is part of a broader economic balancing, not a downturn, as the Inland Empire continues to show underlying strength and stability in its core economic sectors.
The City has offered tax abatement programs to businesses as an incentive, which in return promotes economic growth, attracts investment, and fosters job creation. By reducing certain tax obligations, these programs encourage businesses to expand, relocate, or reinvest in our community, and ultimately strengthening local economy in the long-term.
iv
Housing Market Stable Prices, Steady Demand. The Inland Empire’s housing market remains steady, with limited inventory and persistent demand contributing to modest price growth across the region. In San Bernar dino County, home prices rose by 1% from June 2022 to June 2023, reflecting the market’s stability rather than volatility. Affordability continues to be a key strength in the Inland Empire, particular ly compared to coastal Southern California, where only 24–27% of households can afford a median-priced home—driving migration inland where 43–54% of buyers can still purchase homes at attainable prices.
In the City of Fontana, the housing market showed consistent growth in FY 2023-24, with median prices for existing homes rising 2.52% to an average of $630,658. Fontana maintains a competitive advantage as the westernmost Inland Empire city with land available for both residential and industrial development. This strategic positioning, along with more accessible housing and labor costs, continues to attract both residents and businesses. Over the past three years, Fontana has maintained a strong pace of new housing, a trend expected to continue over the next decade due to on going land availability and redevelopment opportunities. These conditions point to a we ll-balanced and resilient housing market with long-term growth potential.
The center of San Bernardino
County’s growth is moving west
into Fontana. The population has
grown 5.5 percent over the past
ten years and, at 215,465 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.
Significant Events of FY 2023-24
■ 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 fo r the civic campus as well as the planned downtown area which is to be revitalized. The estimated completion date is March 2025.
■ 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.
0%
1%
2%
3%
4%
5%
70,000
100,000
130,000
160,000
190,000
220,000
2015201620172018201920202021202220232024
GROWTH RATE
POPULATION
Population Growth
v
■ 9/11 M
emorial 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 Wo rld Trade Center. The upright position of the beam speaks to resilience, perseverance, and strength against tragedy. The concep tual desig
n has been approved and the detailed design is currently underway. The projec t desig
n has been completed. Construction is projected to begin in FY 2024-2025. ■ Fire St
ation #81:
As part of the Fire Master
Plan and
in an effort to meet
a less than five-minute
response time within the
Distri
ct 90% of the time,
Fire S
tation #81 is
completed at the northern
end of the City limits.
Construction began in
March 2022 and is
completed in FY2023/24.
■ American Rescue Plan Act (ARPA) Grant: To aid the
country in the recovery from the
gover
nment imposed COVID-19 lockdown, th e U.S. Treasury issued the $350 billio n American R
escue Plan Act (ARPA). The City of Fontana was allocated $50.3 million which incl
udes 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 fo r essential workers; and invest in water, sewer, and broadband infrastructure. The Ci ty 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 2024/25 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 Fir
e administration Building located at 17001 Upland Avenue, Fontana, CA 92335 and shall construct a two-story municipal buil ding with first tier parking structure and second ti
er office spaces. Each tier will ha ve a footprint of approximately 30,000 square fee
t 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 publi
c and employee parking for the civic campus. The estimated completion date is July 2025.
vi
Financial Challenges Ahead
The following is a summary of challenges that the City may 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 202 1. The Riverside-San Bernardino-Ontario Metropolitan Statistical Area (MSA) Consumer Price Index for All Urban Consumers (CPI- U) saw decreases of 7.3% and 2.9% in 2023 and 2024 respectively. Although opinio ns diff
er with respect to the forecasted inflation, the consensus is a general cooling of inflation over the next year.
State Budget. The Governor has released proposed 2025/26 budget projecting a small surplus of $
363 million after two years of deficits. The administration anticipates moderate e
conomic growth but warns that federal policies on tariffs, international trade, and budget cut could
threaten the st ate economy. California’s recovery in total jobs as well as its unemployment rate continue to lag the nati on. According to the U.S. Bureau of Labor Statistics and the California Employment Development Department, as of June 2024 the golden s
tate has an unemployment rate of 5.3% or 1.04 million people. California is listed in t
he top 10% of highest unemployment in the country. The state is facing a labo r sho
rtage 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 th
e Funding Risk Mitigation Policy, requiring the reduction of the discount rate in years of high investment returns. CalPERS also adopted new actuarial a ssumptions which incl
uded longer life expectancies and earlier retirement ages. the City’s PERS Rate Stability Reserve has a balance of $12.2 million.
Hou
sing Market & Interest Rates. Housing prices increased dramatically at th e beginning
of the pandemic by 41% from Fe bruary 2020 to April 2022. However, higher prices coupled with higher mortgage rates caused the demand for home purchases to dramaticall
y decrease to nearly 40% below pre-pandemic levels while house prices remain 27% above their pre-pandemic levels. These factors all contribute to a forecasted decrease in home prices through 2023.
Un
funded Liability. The City’s CalPERS net pension and OPEB liabilities are $210.4 million and $21.3 million, resp ectively, as of June 30, 2024. The Annual re quired contrib
ution to fund the City’s retiree health program for both current and future retiree has
been calculated to be $2.6 million (excludes implicit subsidy amount). The retir ee health prog
ram has been closed to new hires since 1990.
Prop
erty Value Reassessments. The annual Consumer Price Index (CPI) adjustment which provides the basis for changes in asse ssed valuations state-wide continues at th e 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 variou s funds to this critical area total of $13.8 million and $11.8 million, resp
ectively.
v
ii
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 ar e challenged
by the electorate. Both the FY 2023/24 and the FY 2024/25 Operating Budget fully comp
ly with the provisions of Proposition 218.
Services
and Growth. The City of Fontana has experienced significant growth over the past s
everal years. With this growth comes the need to service a growing community.
The funding sources for these additional services are revenue growth and the Muni cipal Se
rvices Fiscal Impact Fee Program (MSFIF). In addition, the City is anticipating growth following the successful passage of Measure T, a ballot approved by voters to increase the local sales tax by once-cent or 1
%. This measure, which takes effect on April 1, 2025, is exp
ected to generate an additional $40 million in annual sales tax revenue.
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. 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 em bodied 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 accountin g 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, the City Council adopted the City’s biennial budget for fiscal years 2023-2024 and 2024-2025. Additi onally, 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 purp oses. 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 im proved management efficiency and improved financial results.
viii
ix
x
xi
This page intentionally left blank.
What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE 1 Indep
endent Auditor’s Report
To the Members of the City Council
City of Fontana, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fontana, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fontana, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Fire Protection District Fund, Housing Authority Fund, Economic Stimulus Fund, Grants Fund and the Traffic Congestion Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Correction of Errors
As discussed in Note 19 to the financial statements, certain errors resulting in a misstatement of amounts previously reported as of June 30, 2023, were discovered by management of the City during the current year. Accordingly, a restatement has been made to the Governmental Activities net position, Housing Authority fund balance, Home Program fund balance, and the Other Postemployment Benefit Trust Fund net position as of July 1, 2023, to correct the errors. Our opinions are not modified with respect to that matter.
2 Responsibilities of Management for the Financial Statements
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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
3 Required Supplementary Information
Accoun
ting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in net position liability and related ratios during the measurement period for the safety and miscellaneous plan, schedule of plan contributions for the safety and miscellaneous plan, schedule of changes in net OPEB liability and related ratios, and other post- employment benefit plan schedule of investment return, be presented to supplement the basic financial statements. Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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 non-major governmental funds financial statements and budgetary schedules, the combining proprietary fund financial statements, and the combining fiduciary fund financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information identified above is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 4 Other
Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2025, on our consideration of the City‘s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Rancho Cucamonga, California
March 31, 2025
5 MANAGEMENT’S DISCUSSION AND ANALYSIS
This narrative overview and analysis of the City of Font ana’s financial activities for the fiscal year ended June 30, 2024 is presented by the management of the City of Font ana 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 resou
rces exceeding its liabilities and deferred inflows of resources by $1,248.1 million as of June 30, 2024 (“current fiscal year”). Of this amount, $270.3 million represents the portion for restricted uses as specified by entities outside of the City gov ernment, 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 $176.7 million, and $801.1 million accounts for investments in capital assets in excess of related debt.
The City’s total net position increased $86.7 million during the current fiscal year. The increase is primarily due to the
$12.1 million increase in property taxes, $3.6 million increase in business license taxes, and $16.7 million increase in operation contributions and grants.
As of the fiscal year end, the City’s Government al Funds ending fund balances were $593.5 million, an increa
se of approximately $18.3 million or 3.19% from the prior fiscal year. Of this balance, $35.7 million is in nonspend
able, $283.8 million restricted for use set by various legal requirements, $47. 2 million is committed fo
r economic uncertainty and $226.8 mill ion is either assigned or unassigned base d on the nature of the
funding source.
The General Fund’s fund balance at the close of the current fiscal year was $104.0 million, a decrease of approximately $13.2 million or 11.3% from the previous year. The General Fund’s fund balance consists of $23.1 milli
on in nonspendable and $1.8 million in restricted fund balance, $47.2 million in committed for the purp
oses of Economic uncertainty, and $31.9 million in assigned and unassigned fund balances. See note 15 for further discussion.
The City’s business-type activities yielded operating revenues of $28.9 million, while operating expenses amounted to of $27.1 million.
General Fund revenues were $4.9 million more than the final budget, and expenditures were $16.1 million less than the final budget.
During the current fiscal year, the City determined t hat reported amounts in the prior fiscal year financial statements were not accurate, resulting in a restatem ent of the beginning net position and fund balan ce.
The restate
ment was due to several factors which incl uded additional insight on the City’s reporting of it’s OPEB plan and staff turnover. For additional informat ion, see Note 19 of the Notes to the Financial Statements section of Annual Comprehensive Financial Report. 6 OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
Management’s Discussion and Analysis is intended to se rve a s 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 plus deferred outflow of resources and liabilities plus deferred inflows of resources, with the differ ence between the two reported as net position. 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 gov ernment’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, water operations, and other enterprise activity.
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 t he Former Fontana Redevelopment Agen cy, 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
7 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 19-21 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 activiti es 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 categorie s: 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 statement s. 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 t hat 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 government-wide financial statements in order to facilitate this comparison between governmental funds and governmental activities.
The City maintains 55 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 Econom ic Stimulus Special Revenue Fund, the Grants Special Revenue Fund, the Traffic Congestion Relief Special Revenue Fund, the Sewer Expansion Capital Projects Fund, the Community Facility Districts Capital Projects Fund, and the Traffic Mitigation Capital Project Fund, which are considered to be major funds. Data for the other 46 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 statem ent has been provided for the General Fund, the Fire Protection District Special Revenue Fund, the Housi ng Authority Low/Mod Housing Special Revenue Fund, the Economic Stimulus Special Revenue Fund, Grants Spec ial Revenue Fund, and the Traffic Congestion Relief 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 22-26 of this report.
8 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, Water, and Theater Operations. Internal Service Funds are an accounting device used to accumulate and allocate costs in ternally 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 f unctions, 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 34-36 of this report.
Fiduciary funds. Fiduciary funds are used to account for resour ces 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 37-38 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 39-96 of this report.
Government-wide Financial Analysis
Invested in capital
assets, net of related
debt 64%
Restricted:
Community
development 10%
Restricted: Public
safety 4%
Restricted: Public
works 3%
Pension Trust 1%
Restricted: Capital
projects 5%
Unrestricted 13%
Net Position by Type
9 As noted earlier, net position may serve over time as a usef ul 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, 2024, assets exceeded liabilities by $1,248.1 million.
The City’s net investment in capital assets (land, bu ildings, infrastructure, machinery, equipment, and vehicles), less any related debt used to acquire those assets that is still outstanding, is $801.1 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 deb t, 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 liab ilities. An additional portion of the City’s net position ($270.3 million) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $176.7 million may be used to meet the government’s ongoing obligations to citizens and creditors, unrestricted net position is in a positive position at the end of the fiscal year.
Net Position
(000 omitted)
10 Changes in Net Position
(000 omitted)
2024 2023 2024 2023 2024 2023
(as restated) (as restated)
Revenues:
Program Revenues:
Charges for services 74,877$ 73,478$ 29,025$ 27,542$ 103,902$ 101,020$ Operating grants and contributions 67,765 51,038 67,765 51,038 Capital grants and contributions 20,126 22,714 1,415 7,630 21,541 30,344 General Revenues:
Property taxes 107,809 95,731 107,809 95,731 Sales tax 55,887 59,102 55,887 59,102
Franchise taxes 11,208 11,118 11,208 11,118 Business license taxes 11,943 8,396 11,943 8,396 Transient occupancy taxes 1,145 1,303 1,145 1,303 Motor vehicle in lieu 759 301 759 301
Investment earnings 25,833 9,229 1,054 270 26,887 9,499 Other 7,559 4,275 8 118 7,567 4,393 Contributions not restricted to specific programs 6,680 17,104 6,680 17,104 Total revenues 391,591 353,789 31,502 35,560 423,093 389,349 Expenses:
General Government 59,447 32,753 59,447 32,753 Public Safety 129,566 120,025 129,566 120,025 Public Works / Engineering 76,017 75,399 76,017 75,399 Community Development 20,058 24,285 20,058 24,285 Community Services 22,000 10,394 22,000 10,394 Interest on long-term debt 2,132 2,134 2,132 2,134 Sewer and other enterprise funds 27,212 26,360 27,212 26,360 Total expenses 309,220 264,988 27,212 26,360 336,432 291,349 Change in net position before transfers 82,371 88,801 4,290 9,200 86,661 98,000 Transfers 2,383 3,659 (2,383) (3,659) 0-
Change in net position 84,754 92,460 1,907 5,541 86,660 98,001 Net Position - beginning of year as restated 1,080,989 988,529 80,436 74,895 1,161,425 1,063,424 Net Position - end of year 1,165,742$ 1,080,988$ 82,343$ 80,436$ 1,248,085$ 1,161,425$ Governmental Activities Business-Type Activities Total
11 Governmental activities
The mo
st significant revenues of the governmental activities are general taxes (48.0%), which include property taxes (27.5%), sales and use taxes (14.3%), and various other taxes (6.2%), and general revenues (10.4%), which include various other revenues (3.9%) and investment earni ngs (6.6%). Program revenues are 41.6% of the total revenues of the governmental activities, which include charges for services (19.1%), operating grants and contributions (17.3%), and capital grants and contributions (5.2%).
Property taxes, 27.5%
Sales taxes, 14.3%Franchise taxes, 2.9%
Business license taxes,
3.0%
Transient Occupancy
Taxes, 0.3%
Investment earnings,
6.6%
Other, 3.9%
Charges for services,
19.1%
Operating
contributions and
grants, 17.3%
Capital contributions
and grants, 5.1%
REVENUES BY SOURCE -
GOVERNMENTAL ACTIVITIES
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
Program Revenues 2024 Expenses
EXPENSES AND PROGRAM REVENUES -
GOVERNMENTAL ACTIVITIES
12 Public safety (police and fire) is the most significant ( 41.9%) of all governmental acti vities’ expenses, followed by Public works & Engineering (24.5%), General governm ent (19.3%), Community services (7.1%), Community development (6.5%), and interest on long-term debt (0.7%) . Included in these amounts is depreciation expense, which is 13.1% of the total expenses for governmental activities.
Governmental activities revenues incr eased by $37.8 million (10. 7%) in the current fiscal year. The changes in revenues are a result of the following:
General tax revenues increased by $12.3 million (7.0%) which is primarily due to increase in property tax revenue by $12.1 million as a higher property valuat ion in FY 2024. Additionally, business license tax revenues increased by $3.5 million due to payments received from delinquent business licenses. General revenues (not including general taxes) increased by $9.9 million in FY 2024. This is primarily due to the $16.6 million increase 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. This increase is offset by $6.7 million decrease in donation of Community Facilities District infrastructure by developer. Charges for services increased by $1.4 million (1.9%) which is in alignment with the city projection. Operating contributions and grants increased by $16.7 million due to the increase of $3.9 million in Traffic Congestion Relief projects and $9.0 million in grants for Homelessness Prevention program. Capital contributions and grants decreased by $2.6 million due to the decrease in capital grants received by the city.
Governmental activities expenses increased by $44.2 million (16.7%) in the current fiscal year. The most significant changes in governmental expenses were:
General Government and Public Safety, which were increased by $36.2 million in total. The increase is mainly due to a reduction in OPEB expense in prior fiscal year, whic h made the current year’s expense appear to be higher by $26 million. Additionally, current year’s expenses include $5.7 million in payments for lawsuit settlements, a one-time payment of $4.7 million to PERS for unfunded liability, and a $4.4 million increase in subscription-based information technology services.
Business-type activities
Business-type activities net position increased by $1.9 million (2.4 percent) Business-type activities revenues for current year is showing a decrease of $4.1 million. Investment earnings increased by $0.7 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 $1.5 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 decreased by $6.2 million due to the prior year received a one-time donation of the sewer system by the CFD developer.
Total expenses increased by $0.9 million is due to the increase in EDU (Equivalent Dwelling Unit) charge fees compared to prior year.
13 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 usef ul 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.
Investment
earnings
3%
Charges for
services
92%
Capital
contributions and
grants
5%
REVENUES BY SOURCE -
BUSINESS-TYPE ACTIVITIES
-
10,000,000
20,000,000
30,000,000
Sewer Other
Program Revenues
Expenses
EXPENSES AND PROGRAM REVENUES -
BUSINESS-TYPE ACTIVITIES
14 As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $593.5 million, an increase of $18.5 million (3.2%) from the previous year. Of this total amount, $226.8 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 ( $35.7 million), restricted ($283.8 million) or committed ($47.2 million) and is not available for new spending. The nonspendable fund balance consists of 1) land held for resale of $11.6 million, 2) deposits on account of $0.2 million, 3) inventories held ($1.4 million), and 4) loan receivables ($22.5 million). Restricted fund balance includes amounts t hat 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.
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 $6.4 million, while total fund balance reached $104. 0 million, which was $13.2 million or 11.3% 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 $47.2 million for economic uncertainty.
General fund revenues increased by $6.3 million (4.1%) from the previous fi scal year; this incr ease is primarily due to:
Property Tax in Lieu of VLF was in creased by $3.2 million due to the increase in assessed valuation and continued growth in the city.
Investment earnings increased by $2.2 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 $29.4 million (20.8%) compared to the previous fiscal year, the increased costs were primarily due to:
The $5.7 million payments for lawsuit settlements, a one-time $4.7 million payment to PERS for unfunded liability, and a $4.4 million increase in subscription-based information technology services.
The Fire Protection District special revenue fund has a fund balance of $26.1 million. The Fire Protection District accounts for all of the operating activities of the Fire District. The fund balance decreased by $0.4 million during the current fiscal year. Revenues increased $8.4 million (13.9%) primarily as a result of a higher property valuation assessment. Expenditures increased $3.4 million (7.9%) prim arily as a result in increa sed contract costs with the San Bernardino County Fire Department for fire protection services due to inflation. Transfers out decreased by $6.8 million during the year primarily due to the increase in prior fiscal year one time transfer for t he fire annex project in the amount of $8 million.
The Housing Authority special revenue fund has a fund balance of $87.3 million. The fund balance increased by $1.4 million during the fiscal year is mainly due to $0.6 million in restatement, and an increase of $0.6 million in investment earnings 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.
The Traffic Congestion Relief fund has a total fund balan ce of $6.7 million. The fund balance decreased by $7.6 million during the current fiscal year due to an increase of $7.6 million ex penditures on str eets and highway maintenance that are pending to be reimbursed by other government.
15 The Grants fund has a total deficit fund balance of $7.8 million. The fund balance decreased by $6.7 million during the current fiscal year due to City’s advance of $4.0 million for Homelessness Prevention program and $1.7 million for storm drain and sewer infrastructure at the affordable housing site. These amounts are expected to be reimbursed in fiscal year 2024/25.
The Sewer Expansion Fund has a total fund balance of $1.6 million. The fund balance increased by $1.2 million during the current fiscal year due to an increase in invest ment earnings 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.
The Community Facility Districts Fund has a total fund bal ance of $36.4 million. The fund balance increased by $3.9 million during the current fiscal year mainly due to an increase of $1.6 million in contribution from property owners as a result of higher property valuation assessment.
The Traffic Mitigation capital project fund has a fund bal ance of $23.6 million. The fund balance increased during the current fiscal year by $1.8 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 Operations, Water Operations, and Theater Operations at the end of the year amounted to $21.1 million. The total increase in net position was $1.8 million, which is in aligned with the City expectations.
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 $3.6 million. The increase is primarily due to:
an increase in business license of $2.1 million, because of payme nts received from delinquent business licenses.
an increase in Charge for Services of $0.6 million due to increase in recreations revenues for sports field and courts rentals as well as classes registration. Additionally, an increase in recycled water revenue.
General Fund actual revenues of $157.8 million were $4.9 million more than the final budget of $152.9 million. The positive variance to the final budget was primarily due to:
higher than expected tax revenues ($1.2 million) co mpared to the final budget, which was increased by $2.1 million from the adopted budget as a result of higher business license tax. higher than expected investment earnings ($3.6 million) compared to the final 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 licenses and permit ($0.3 million) higher than expected intergover nmental revenue ($0.2 million) lower than expected charges for services ($0.8 million)
16 Expenditures:
During the year, the original General Fund expenditure budget was amended to increase appropriations by $27.3 million, the increase in appropriations was due to various requests throughout the fiscal year such as:
increase of $13.0 million for human resources mainly due to $5.7 increase in various settlement cl aims, $4.7 million in
PERS for unfunded liability, and other professional services.
increase of $4.5 million for inform ation technology department for variou s subscription-based information techn
ology services and increase in other professional services. increase of $3.6 million for public works/engineering for additional capital acquisition and other professional ser
vices.
General Fund expenditures were less than budgeted. Of the total appropri ations of $187.2 million, approximately
8.6%, or $16.1 million were unspent. The budgetary sa vings included IT department personnel cost, computer hardware cost, application cost, other professional serv ice cost (total $2.3 million) , personnel cost and other professional services cost in the City administration department (total $1.3 million), personnel cost and capital cost in the police department (total $5.4 million), capital cost and other professional services cost in the public works/engineering department (total $1.8 million), personnel cost in the community development (total $2.4 million), and HR admin cost and risk management cost (total $1.8 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, 2024, amounts to $853.1 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 $42.2 million (5.2%). Major capital asset events during the current fiscal year included the following:
There was an increase in building and improvements activities mainly due to new property acquisition located at 17133 Valley Blvd. ($12.4 million), Fire St ation #81 ($9.0 million), and Stage Red renovation s ($4.2 million).
There was an increase in activities in various CIP projects such as Homelessness prevention resources and care ($14.7 million), downtown parking structure ($5.0 million) and pavement rehabilitation ($5.0 million).
The City had a onetime purchase of various new lands in the amount of $7.5 million.
Accumulated depreciation at year-end is $41.0 million higher than prior year.
17 Capital Assets
(Net of depreciation)
(000 omitted)
Additional information on the City’s capital assets can be found in Note 6 in the footnote disclosure.
Long-term liabilities. At the end of the current fiscal year, the City’s total long- term liabilities outstanding is $323.6 million. This amount is comprised of $210.4 million net pension liability, $21.3 million other post-employment benefits liability, $49.4 million of lease revenue bonds which are secured by future revenue sources from the lease of City property and $42.5 million of various other loans and obligations payable.
Outstanding Debt
(000 omitted)
Additional information on the City’s long-term liabilities can be found in Note 8 in the footnote disclosure.
18 Economic Factors and Next Year’s Budget and Rates
In preparing the budget for Fiscal Year 2024-25, management ’s goal was to produce an operating budget that adhered to City Council goals and objectives with an em phasis on cost containment. Expansion of the City’s economic base continues to be a City Council priority.
The Operating Budget for Fiscal Year 2024-25 is financially balanced and includes:
- General Fund designation of fund balance for c ontingencies of 25% of recurring appropriations. - A net increase in budgeted revenues of $3.2 million (o r +2.2%) 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 $1.2 million reflecting continuing post-pandemic recovery. An increase in property tax revenue of $1.2 m illion assuming an anticipated growth of 3 percent in assessed valuations.
An increase in recreation revenue of $0.1 milli on projecting facilities and programs will be open all year.
- A net decrease in budgeted expenditures of $1.0 milli on or (+0.8%) 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.
Basic Financial Statements
This page intentionally left blank.
See No
tes to Financial Statements 19
City of Fontana, California
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 520,310,599 $ 25,012,060$ 545,322,659$ Receivables
Accounts 5,279,955 1,430,955 6,710,910
Assessments 420,669 - 420,669
Interest 8,481,062 172,614 8,653,676
Loans 83,365,979 3,172,012 86,537,991
Loans
to Successor Agency 22,555,864 3,305,829 25,861,693
Al
lowance for doubtful accounts (101,795) (3,305,829) (3,407,624) Leases 15,933,396 - 15,933,396
Prepaid exp
enses 1,200 234,506 235,706
Internal balances (2,016,415) 2,016,415 -
Due from other governments 39,255,897 11,125 39,267,022 Inventories 1,436,933 66,628 1,503,561
Deposits 226,591 - 226,591
Land held for resale 11,565,365 - 11,565,365
Rest
ricted assets
Cash with fiscal agent 71,030,552 - 71,030,552
Ca
pital assets not being depreciated 273,785,061 1,050,254 274,835,315 Ca
pital assets, net of depreciation 516,191,653 62,076,190 578,267,843 Tot
al assets 1,567,722,566 95,242,759 1,662,965,325
Deferred Outflows of Resources
Deferred outflows of resources - pension related 65,692,268 1,609,520 67,301,788 Deferred outflows of resources - OPEB related 18,609,882 608,516 19,218,398 Total deferred outflows of resources 84,302,150 2,218,036 86,520,186 Liabilities
Accounts payable 35,479,485 3,167,395 38,646,880
Deposits payable 7,269,312 806,509 8,075,821
Interest payable 559,167 25,768 584,935
Due to other governments 45,831,234 - 45,831,234
Unear
ned revenue 28,263,303 - 28,263,303
Retenti
ons payable 2,742,478 23,825 2,766,303
Advances from other funds - 500,000
500,000
Noncurrent liabilities
Due within one year 17,468,187 1,093,882 18,562,069
Due in more than one year
Net pension liability 205,693,159 4,717,855 210,411,014 OPEB liability 20,658,400 675,499
21,333,899
Other 76,072,340 3,075,142 79,147,482
Total liabilities 440,037,065 14,085,875 454,122,940 Deferred Inflows of Resources
Deferred inflows of resources - pension related 472,889 27,055 499,944 Deferred inflows of resources - OPEB related 30,744,845 1,005,311 31,750,156 Deferred inflows of resources - Leases 15,028,063 - 15,028,063 Tot
al deferred inflows of resources 46,245,797 1,032,366 47,278,163 Net Position
Net investment in capital assets 741,903,826 59,154,883 801,058,709 Restricted for
Community development 121,961,290 - 121,961,290
Publ
ic safety 44,144,312 - 44,144,312
Publ
ic works 32,030,138 - 32,030,138
Pensi
on trust 12,204,822 - 12,204,822
Capi
tal projects 60,011,144 - 60,011,144
Unrest
ricted 153,486,322 23,187,671 176,673,993
Tot
al net position 1,165,741,854$ 82,342,554$ 1,248,084,408$
See Notes to Financial Statements 20
City of Fontana, California
Statement of Activities
Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants Total Governmental Activities
General government
City council and commissions 1,420,099$ - $ - $ - $ - $ City administration 7,540,936 - 98,795 - 98,795 Management services 11,055,898 1,803,828 5,045,682 - 6,849,510 Information technology 15,895,585 - - - - Human resources 23,534,274 8,836,789 - - 8,836,789 Public safety
Police 82,262,622 844,435 6,197,325 - 7,041,760 Fire 47,303,550 1,274,120 - - 1,274,120 Public works / engineering 76,016,743 45,123,710 41,358,998 18,034,673 104,517,381 Community development 20,058,225 12,752,239 7,332,335 2,091,045 22,175,619 Community services 22,000,117 4,241,880 7,731,468 - 11,973,348 Interest on long-term debt 2,132,683 - - - - Total governmental activities 309,220,732 74,877,001 67,764,603 20,125,718 162,767,322 Business-type Activities
Sewer 26,898,880 29,024,699 - 1,415,195 30,439,894 Stage Red 228,160 - - - - Interest on long-term debt 85,584 - - - - Total business-type activities 27,212,624 29,024,699 - 1,415,195 30,439,894 Total functions/programs 336,433,356$ 103,901,700 $ 67,764,603 $ 21,540,913 $ 193,207,216 $ General Revenues
Taxes:
Property taxes, levied for general purpose
Sales taxes
Franchise taxes
Business license taxes
Transient occupancy taxes
Total taxes
Intergovernmental, unrestriced
Motor vehicle in lieu
Investment earnings
Other
Contributions not restricted to specific programs
Transfers
Total general revenues and transfers
Change in Net Position
Net Position- Beginning of Year, as Previously Presented Restatements
Net Position- Beginning of Year, as Restated
Net Position at End of Year
Program Revenues
See Notes to Financial Statements 21
City of Fontana, California
Statement of Activities
Year Ended June 30, 2024
Governmental Business-type
Activities Activities Total
(1,420,099)$ - $ (1,420,099)$ (7,442,141) - (7,442,141) (4,206,388) - (4,206,388) (15,895,585) - (15,895,585) (14,697,485) - (14,697,485) (75,220,862) - (75,220,862) (46,029,430) - (46,029,430) 28,500,638 - 28,500,638 2,117,394 - 2,117,394 (10,026,769) - (10,026,769) (2,132,683) - (2,132,683) (146,453,410) - (146,453,410) - 3,541,014 3,541,014 - (228,160) (228,160) - (85,584) (85,584) - 3,227,270 3,227,270 (146,453,410) 3,227,270 (143,226,140)
107,808,356 - 107,808,356
55,887,448 - 55,887,448
11,208,531 - 11,208,531
11,943,284 - 11,943,284
1,144,605 - 1,144,605
187,992,224 - 187,992,224 759,269 - 759,269
25,832,592 1,054,017 26,886,609
7,558,825 8,368 7,567,193
6,680,574 - 6,680,574
2,382,950 (2,382,950) -
231,206,434 (1,320,565) 229,885,869
84,753,024 1,906,705 86,659,729
1,091,572,382 80,435,849 1,172,008,231
(10,583,552) - (10,583,552) 1,080,988,830 80,435,849 1,161,424,679
1,165,741,854$ 82,342,554 $ 1,248,084,408 $
Net (Expense) Revenue and Changes in Net Position
See Notes to Financial Statements 22
City of Fontana, California
Balance Sheet
Governmental Funds
June 30, 2024
Fire Traffic
Protection Housing Economic Congestion
General District Authority Stimulus Grants Relief
Assets
Cash and investments 46,225,376 $ 25,922,043 $ 15,679,071 $ 22,795,727 $ 7,109,250 $ 20,839,405 $ Receivables
Accounts 4,694,548 116,624 55,792 - - - Assessments - - - - - - Interest 434,814 151,208 4,577,600 - - 121,541 Loans - - 72,367,298 - - - Loans to Successor Agency 22,555,864 - - - - - Allowance for doubtful accounts - - - - - - Leases 9,264,282 - - - - - Prepaid expenses - - - - - - Deposits 44,090 - - - 78,453 - Due from other funds 25,526,416 - - - - - Due from other governments 9,982,515 285,838 - - 7,855,460 11,564,947 Inventories 512,764 - - - - - Land held for resale - - - - - - Advances to other funds - - - - - - Restricted assets
Cash with fiscal agent 12,712,521 - 12,120 109,808 - 374,944 Total assets 131,953,190 $ 26,475,713 $ 92,691,881 $ 22,905,535 $ 15,043,163 $ 32,900,837 $ Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable 8,885,217 $ 287,199 $ 25,407 $ 2,412,148 $ 3,355,424 $ 5,426,010 $ Deposits payable 7,219,058 - - - - - Retentions payable 52,587 - - 562,796 143,441 577,049 Due to other funds - - - - 4,487,807 9,585,239 Due to other governments - - - - - - Unearned revenue 111,831 - - 19,815,192 7,059,687 - Advances from other funds - - - - - - Total liabilities 16,268,693 287,199 25,407 22,790,136 15,046,359 15,588,298 Deferred Inflows of Resources
Unavailable revenues 2,936,954 116,624 5,372,333 - 7,843,231 10,582,448 Leases 8,698,516 - - - - - Total deferred inflows of resources 11,635,470 116,624 5,372,333 - 7,843,231 10,582,448 Fund Balances
Nonspendable 23,112,718 - - - 78,453 - Restricted 1,832,888 26,071,890 87,294,141 115,399 - 6,730,091 Committed 47,182,993 - - - - - Assigned 6,428,514 - - - - - Unassigned 25,491,914 - - - (7,924,880) - Total fund balances 104,049,027 26,071,890 87,294,141 115,399 (7,846,427) 6,730,091 Total liabilities, deferred inflows of
resources and fund balances 131,953,190$ 26,475,713 $ 92,691,881 $ 22,905,535 $ 15,043,163 $ 32,900,837 $ Special Revenue
See Notes to Financial Statements 23
City of Fontana, California
Balance Sheet
Governmental Funds
June 30, 2024
Community Other Total
Sewer Facilities Traffic Governmental Governmental
Expansion Districts Mitigation Funds Funds
37,517,498$ 29,769 $ 50,625,436$ 273,765,889 $ 500,509,464 $ 110,773 - - 158,340 5,136,077 - - - 420,669 420,669 218,847 - 295,309 2,566,239 8,365,558 - - - 10,998,681 83,365,979 - - - - 22,555,864 - - - (101,795) (101,795) - - - 6,669,114 15,933,396 1,200 1,200
- - - 104,048 226,591 - - - - 25,526,416 - - - 9,567,137 39,255,897 - - - 849,705 1,362,469 - - - 11,565,365 11,565,365 - - - 28,408,911 28,408,911 - 42,885,149 154,756 14,781,254 71,030,552 37,847,118$ 42,914,918 $ 51,075,501 $ 359,754,757 $ 813,562,613 $ -$ - $ 660,240$ 13,495,745 $ 34,547,390 $ - - - 50,254 7,269,312 - - 158,790 1,247,815 2,742,478 - 6,468,703 - 4,980,241 25,521,990 36,271,528 - - 9,559,706 45,831,234 - - - 1,276,593 28,263,303 - - 26,691,542 1,717,369 28,408,911 36,271,528 6,468,703 27,510,572 32,327,723 172,584,618 - - - 5,604,279 32,455,869 - - - 6,329,547 15,028,063 - - - 11,933,826 47,483,932 - - - 12,519,118 35,710,289 - 36,446,215 23,564,929 101,790,287 283,845,840 - - - - 47,182,993 1,575,590 - - 204,740,916 212,745,020 - - - (3,557,113) 14,009,921 1,575,590 36,446,215 23,564,929 315,493,208 593,494,063 37,847,118$ 42,914,918 $ 51,075,501 $ 359,754,757 $ 813,562,613 $ Capital Projects
This page intentionally left blank.
See Notes to Financial Statements 24
City of Fontana, California
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Fund Balances of Governmental Funds 593,494,063 $
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity (excluding internal service funds). 778,723,907 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. 84,302,150
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. (319,892,086) Accrued interest payable from the current portion of interest due on long-term debt has not been reported in the governmental funds. (559,167) 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. (31,217,734)
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. 28,434,852 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 32,455,869 Net Position of Governmental Activities 1,165,741,854 $
See Notes to Financial Statements 25
City of Fontana, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2024
Fire Traffic
Protection Housing Economic Congestion
General District Authority Stimulus Grants Relief
Revenues
Taxes 121,079,308 $ 66,442,841 $ - $ - $ - $ - $ Licenses and permits 5,799,129 1,274,736 - - - - Intergovernmental 1,042,245 - - 17,332,838 8,846,597 5,596,744 Charges for services 18,353,240 - - - - - Fines and forfeitures 702,670 - - - - - Special assessments - - - - - - Investment earnings (loss) 6,544,409 1,167,535 756,961 - - 895,702 Contribution from property owners - - - - - - Other revenue 4,280,869 1,000 424,564 - - - Total revenues 157,801,870 68,886,112 1,181,525 17,332,838 8,846,597 6,492,446 Expenditures
Current
General government
City council and commissions 1,217,194 - - - - - City administration 5,226,815 - - - 80,345 - Management services 5,270,108 - 282,986 5,046,110 - - Information technology 13,601,739 - - - - - Human resources 24,219,245 - - - - - Public safety
Police 74,862,832 - - - 590,538 - Fire - 46,341,850 - - - - Public works / engineering 22,402,452 - - 12,286,728 12,751,651 13,615,596 Community development 9,640,724 - 36,391 - 2,194,474 - Community services 13,703,338 - - - - - Debt service
Principal 979,425 - - - - - Interest 19,958 - - - - - Total expenditures 171,143,830 46,341,850 319,377 17,332,838 15,617,008 13,615,596 Excess (deficiency) of revenues
over (under) expenditures (13,341,960) 22,544,262 862,148 - (6,770,411) (7,123,150) Other Financing Sources (Uses)
Transfers in 22,819,661 1,206,100 - - 105,363 - Transfers out (25,319,815) (24,110,671) (4,887) - (59,161) (450,220) Leases issued (as lessee) 161,022 - - - - - Other financing sources- SBITA 2,459,222 - - - - - Sale of capital assets 9,513 - - - - - Total other financing sources (uses) 129,603 (22,904,571) (4,887) - 46,202 (450,220) Net Change in Fund Balances (13,212,357) (360,309) 857,261 - (6,724,209) (7,573,370) Fund Balances, Beginning of Year, as Previously
Presented 117,261,384 26,432,199 85,876,784 115,399 - - Adjustments - - 560,096 - (1,122,218) 14,303,461 Fund Balances, Beginning of Year, as Adjusted 117,261,384 26,432,199 86,436,880 115,399 (1,122,218) 14,303,461 Fund Balances, End of Fiscal Year 104,049,027 $ 26,071,890 $ 87,294,141 $ 115,399 $ (7,846,427) $ 6,730,091 $ Special Revenue
See Notes to Financial Statements 26
City of Fontana, California
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds
Year Ended June 30, 2024
Community Future Other
Sewer Facility Traffic Capital Capital Governmental
Expansion Districts Mitigation Re investment Projects Funds Totals -$ - $ - $ 544,170 $ 188,066,319$ - - - 10,703,061 17,776,926 - - 849,568 33,000,498 66,668,490 - - 7,015,618 8,934,020 34,302,878 - - - 69,290 771,960 - - - 19,227,946 19,227,946 1,263,794 1,125,087 2,074,831 11,237,507 25,065,826 - 12,437,929 - - 12,437,929 - - - 1,634,349 6,340,782 1,263,794 13,563,016 9,940,017 85,350,841 370,659,056 - - - 200,109 1,417,303 - - - 952,712 6,259,872 - - 407,402 23,427 11,030,033 - - - 51,760 13,653,499 - - - 12,078 24,231,323 - - - 6,084,498 81,537,868 - - - 1,262 46,343,112 14,380 - 7,695,311 55,653,710 124,419,828 - 499,171 - 11,263,015 23,633,775 - - - 7,373,993 21,077,331 - - - 1,830,000 2,809,425 - - - 2,164,025 2,183,983 14,380 499,171 8,102,713 85,610,589 358,597,352 1,249,414 13,063,845 1,837,304 (259,748) 12,061,704 - 62,556 - 55,381,641 79,575,321 (19,280) (9,189,418) (73,880) (20,625,919) (79,853,251) - - - - 161,022 - - - - 2,459,222 - - - 4,107,021 4,116,534 (19,280) (9,126,862) (73,880) 38,862,743 6,458,848 1,230,134 3,936,983 1,763,424 38,602,995 18,520,552 345,456 32,509,232 21,801,505 25,960,317 42,037,977 222,830,244 575,170,497 - - - (25,960,317) (42,037,977) 54,059,969 (196,986) 345,456 32,509,232 21,801,505 - - 276,890,213 574,973,511 1,575,590$ 36,446,215 $ 23,564,929 $ 315,493,208 $ 593,494,063 $ Capital Projects
See Notes to Financial Statements 27
City of Fontana, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds 18,520,552 $ 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 their estimated useful lives as depreciation/amortization expense.
This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period. Activies are net of deletions and transfers.
Depreciation/amortization expense (35,689,908)
$
Capital outlays 83,086,578
47,396,670
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. 6,680,574
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. (1,893,748) Revenues in the Statement of Activities that do not provide current financial resources are not reported as unavailable revenues in the funds. 10,967,758 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 long-term liabilities is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the net effect of long-term liability increases and payments. 1,093,192 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as (936,178) expenditures 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 Fund is reported with governmental activities. 4,923,518 Adjustments made to the OPEB liability do not use current financial resources and, therefore, are not recognized in the funds. 3,950,803 Adjustments made to the Net Pension Liability do not use current financial resources and, therefore, are not recognized in the funds. (5,950,117) Change in Net Position of Governmental Activities 84,753,024 $
See No
tes to Financial Statements 28
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual General Fund
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes 117,217,290 $ 119,877,473$ 121,079,308$ 1,201,835$ Licenses and permits 5,538,530 5,544,930 5,799,129 254,199 Intergovernmental 720,000 870,200 1,042,245 172,045 Charges for services 18,529,520 19,147,259 18,353,240 (794,019) Fines and forfeitures 558,110 627,510 702,670 75,160 Investment earnings (loss) 2,907,850 2,907,850 6,544,409 3,636,559 Other revenue 3,838,800 3,939,282 4,280,869 341,587 Total revenues 149,310,100 152,914,504 157,801,870 4,887,366 Expenditures
Current
General government
City council and commissions 1,212,060 1,254,490 1,217,194 37,296 City administration 4,352,950 6,539,237 5,226,815 1,312,422 Management services 4,665,300 5,833,427 5,270,108 563,319 Information technology 11,324,350 15,868,884 13,601,739 2,267,145 Human resources 13,017,640 26,007,610 24,219,245 1,788,365 Public safety
Police 80,173,660 80,292,104 74,862,832 5,429,272 Public works / engineering 20,529,960 24,197,718 22,402,452 1,795,266 Community development 9,362,950 12,018,096 9,640,724 2,377,372 Community services 15,298,940 15,127,000 13,703,338 1,423,662 Debt service
Principal -
77,418
979,425 (902,007)
Interest -
- 19,958 (19,958)
Total expenditures 159,937,810 187,215,984 171,143,830 16,072,154 Excess (deficit) of revenues
over expend
itures (10,627,710) (34,301,480) (13,341,960) 20,959,520 Other Financing Sources (Uses)
Transfers in 41,091,370 50,380,267 22,819,661 (27,560,606) Transfers out (29,149,870) (51,424,867) (25,319,815) 26,105,052 Leases issued (as lessee) - - 161,022
Other financing sources- SBITA - - 2,459,222 2,459,222 Sale of capital assets - - 9,513 9,513
Total other financing
sources (uses) 11,941,500 (1,044,600) 129,603 1,013,181 Net Change in Fund Balances 1,313,790 (35,346,080) (13,212,357) 22,133,723 Fund Balances - Beginning 117,261,384 117,261,384 117,261,384 - Fund Balances - Ending 118,575,174$ 81,915,304$ 104,049,027$ 22,133,723$ Budget Amounts
See Notes to Financial Statements 29
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Fire Protection District – Special Revenue
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes 60,457,620 $ 60,457,620 $ 66,442,841 $ 5,985,221 $ Licenses and permits 1 ,245,700 1,245,700 1,274,736 29,036 Investment earnings (loss) - - 1,167,535 1,167,535 Other revenue - - 1,000 1,000 Total revenues 61,703,320 61,703,320 68,886,112 7,182,792 Expenditures
Public safety
Fire 48,293,230 49,464,718 46,341,850 3,122,868
Total expenditures 48,293,230 49,464,718 46,341,850 3,122,868 Excess (deficit) of revenues
over expenditures 13,410,090 12,238,602 22,544,262 10,305,660 Other Financing Sources (Uses)
Transfers in 1,206,100 1,206,100 1,206,100 -
Transfers out (23,943,700) (24,026,966) (24,110,671) (83,705) Total other financing
sources (uses) (22,737,600) (22,820,866) (22,904,571) (83,705) Net Change in Fund Balances (9,327,510) (10,582,264) (360,309) 10,221,955 Fund Balances - Beginning 26,432,199 26,432,199 26,432,199 - Fund Balances - Ending 17,104,689 $ 15,849,935 $ 26,071,890 $ 10,221,955 $ Budget Amounts
See Notes to Financial Statements 30
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Housing Authority Low/Mod Housing Fund – Special Revenue Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Investment earnings (loss) 250,000 $ 250,000 $ 756,961 $ 506,961 $ Other revenue 126,000 126,000 424,564 298,564 Total revenues 376,000 376,000 1,181,525 805,525 Expenditures
Current
General government
City administration - 250,024 - 250,024 Management services 244,350 432,383 282,986 149,397 Community development 23,350 63,350 36,391 26,959 Total expenditures 1,245,100 2,475,289 319,377 2,155,912 Excess (deficit) of revenues
over expenditures (869,100) (2,099,289) 862,148 2,961,437 Other Financing Sources (Uses)
Transfers out - - (4,887) (4,887) Net Change in Fund Balances (869,100) (2,099,289) 857,261 2,956,550 Fund Balances - Beginning 86,436,880 86,436,880 86,436,880 - Fund Balances - Ending 85,567,780 $ 84,337,591 $ 87,294,141 $ 2,956,550 $ Budget Amounts
See Notes to Financial Statements 31
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Economic Stimulus – Special Revenue
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental - $ - $ 17,332,838$ 17,332,838 $ Expenditures
Current
General government
Management services - 5,379,370 5,046,110 333,260 Public works / engineering - 31,768,659 12,286,728 19,481,931 Total expenditures - 37,148,029 17,332,838 19,815,191 Excess (deficit) of revenues
over expenditures - (37,148,029) - 37,148,029 Net Change in Fund Balances - (37,148,029) - 37,148,029 Fund Balances - Beginning 115,399 115,399 115,399 - Fund Balances - Ending 115,399 $ (37,032,630)$ 115,399 $ 37,148,029 $ Budget Amounts
See Notes to Financial Statements 32
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Grants Fund – Special Revenue
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental 352,540 $ 40,061,990 $ 8,846,597 $ (31,215,393) $ Other revenue - 400,000 - (400,000) Total revenues 352,540 40,461,990 8,846,597 (31,615,393) Expenditures
Current
General government
City administration - 162,113 80,345 81,768 Public safety -
Police - 924,454 590,538 333,916 Public works / engineering 268,560 29,249,991 12,751,651 16,498,340 Community development 399,100 8,972,044 2,194,474 6,777,570 Total expenditures 667,660 39,308,602 15,617,008 23,691,594 Excess (deficit) of revenues
over expenditures (315,120) 1,153,388 (6,770,411) (7,923,799) Other Financing Sources (Uses)
Transfers in - 4,887 105,363 100,476 Transfers out - - (59,161) (59,161) Total other financing
sources (uses) - 4,887 46,202 41,315 Net Change in Fund Balances (315,120) 1,158,275 (6,724,209) (7,882,484) Fund Balances - Beginning 115,399 115,399 (1,122,218) - Fund Balances - Ending (199,721) $ 1,273,674 $ (7,846,427) $ (7,882,484) $ Budget Amounts
See Notes to Financial Statements 33
City of Fontana, California
Statement of Revenues, Expenditure and Changes in Fund Balances – Budget and Actual Traffic Congestion Relief – Special Revenue
Year Ended June 30, 2024
Variance with
Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Intergovernmental 5,524,500 $ 30,035,264 $ 5,596,744 $ (24,438,520) $ Investment earnings (loss) - - 895,702 895,702 Total revenues 5,524,500 30,035,264 6,492,446 (23,542,818) Expenditures
Current
Public works / engineering 2,309,580 42,891,507 13,615,596 29,275,911 Total expenditures 2,309,580 42,891,507 13,615,596 29,275,911 Excess (deficit) of revenues
over expenditures 3,214,920 (12,856,243) (7,123,150) 5,733,093 Other Financing Sources (Uses)
Transfers out (450,220) (450,220) (450,220) - Total other financing
sources (uses) (450,220) (450,220) (450,220) - Net Change in Fund Balances 2,764,700 (13,306,463) (7,573,370) 5,733,093 Fund Balances - Beginning 14,303,461 14,303,461 14,303,461 - Fund Balances - Ending 17,068,161 $ 996,998 $ 6,730,091 $ 5,733,093 $ Budget Amounts
See Notes to Financial Statements 34
City of Fontana, California
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal Service
Fund -
Sewer Total Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Assets
Current Assets
Cash and investments 24,021,589 $ 990,471 $ 25,012,060 $ 19,801,135 $ Accounts receivables 1,408,015 22,940 1,430,955 143,878 Interest receivable 167,656 4,958 172,614 115,504 Loans receivable 2,081,888 1,090,124 3,172,012 - Loans to Successor Agency 3,305,829 - 3,305,829 - Allowance for doubtful accounts (3,305,829) - (3,305,829) - Prepaid expenses - 234,506 234,506 - Due from other governments 11,125 - 11,125 - Inventories 22,816 43,812 66,628 74,464 Total current assets 27,713,089 2,386,811 30,099,900 20,134,981 Noncurrent Assets
Capital assets, not being depreciated 1,050,254 - 1,050,254 1,079,813 Capital assets, net of depreciation 62,076,190 - 62,076,190 10,172,994 Total noncurrent assets 63,126,444 - 63,126,444 11,252,807 Total assets 90,839,533 2,386,811 93,226,344 31,387,788 Deferred Outflows of Resources
Deferred outflows of resources - pension related 1,609,520 - 1,609,520 - Deferred outflows of resources - OPEB related 608,516 - 608,516 - Total deferred outflows of resources 2,218,036 - 2,218,036 - Liabilities
Current Liabilities
Accounts payable 3,040,239 127,156 3,167,395 932,095 Due to other funds - 4,426 4,426 Deposits payable 806,509 - 806,509 - Interest payable 25,768 - 25,768 - Retentions payable 23,825 - 23,825 - Compensated absences payable - current 183,338 - 183,338 - Advances from other funds - 500,000 500,000 Loans payable - current 910,544 - 910,544 - Total current liabilities 4,990,223 631,582 5,621,805 932,095 Noncurrent Liabilities
Compensated absences payable 37,950 - 37,950 - Loans payable 3,037,192 - 3,037,192 - Net pension liability 4,717,855 - 4,717,855 - Net OPEB liability 675,499 - 675,499 - Total noncurrent liabilities 8,468,496 - 8,468,496 - Total liabilities 13,458,719 631,582 14,090,301 932,095 Deferred Inflows of Resources
Deferred inflows of resources - pension related 27,055 - 27,055 - Deferred inflows of resources - OPEB related 1,005,311 - 1,005,311 - Total deferred inflows of resources 1,032,366 - 1,032,366 - Net Position
Net investment in capital assets 59,178,708 - 59,178,708 11,252,807 Unrestricted 19,387,776 1,755,229 21,143,005 19,202,886 Total net position 78,566,484 $ 1,755,229 $ 80,321,713 $ 30,455,693 $ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 80,321,713 $ Accumulated adjustment to reflect the consolidation of of internal service fund activities related to enterprise funds 2,020,841
Net position per Statement of Net Position 82,342,554$
Enterprise Funds
Business-type Activities
See Notes to Financial Statements 35
City of Fontana, California
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2024
Governmental
Activities
Internal Service
Fund -
Sewer Total Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Operating Revenues
Charges for services 28,912,946 $ - $ 28,912,946$ 8,207,590 $ Total revenues 28,912,946 - 28,912,946 8,207,590 Operating Expenses
Personnel costs 2,370,736 - 2,370,736 1,367,794 Operating costs 1,619,682 2,111 1,621,793 2,296,336 Contractual 19,994,540 226,049 20,220,589 957,925 Depreciation 2,913,922 - 2,913,922 2,382,478 Total operating expenses 26,898,880 228,160 27,127,040 7,004,533 Operating income (loss) 2,014,066 (228,160) 1,785,906 1,203,057 Non-Operating Revenues (Expenses)
Investment earnings 1,020,234 33,783 1,054,017 766,230 Interest expense (85,584) - (85,584) - Other revenue (expenses) (30,003) 38,371 8,368 33,136 Gain (loss) on sale of capital assets - - - 371,968 Total non-operating revenues (expenses) 904,647 72,154 976,801 1,171,334 Income (loss) before contributions
and transfers 2,918,713 (156,006) 2,762,707 2,374,391 Capital contributions - connection fees 552,195 - 552,195 - Contributions from property owners 863,000 - 863,000 - Transfers in - - - 2,803,440 Transfers out (2,382,950) - (2,382,950) (142,560) Change in Net Position 1,950,958 (156,006) 1,794,952 5,035,271 Net Position, Beginning of Fiscal Year 76,615,526 1,911,235 78,526,761 25,420,422 Net Position, End of Year 78,566,484 $ 1,755,229 $ 80,321,713 $ 30,455,693 $ Reconciliation of Changes in Net Position to the Statement of Activities Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 1,794,952 $ Adjustment to reflect the consolidation of internal service activities to enterprise funds 111,753 Changes in Net Position of Business-Type Activities per Statement of Activities 1,906,705 $ Business-type Activities
Enterprise Funds
See Notes to Financial Statements 36
City of Fontana, California
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
Governmental
Activities
Internal Service
Total Fund -
Sewer Nonmajor Fleet
Operations Enterprise Funds Totals Operations
Operating Activities
Cash received from customers 28,863,524 $ 15,431 $ 28,878,955 $ 8,101,496 $ Cash payments to suppliers of goods and services (22,923,968) (374,896) (23,298,864) (2,742,016) Cash payments to employees for services (2,819,943) - (2,819,943) (1,367,794) Net Cash Provided by (Used For) Operating Activities 3,119,613 (359,465) 2,760,148 3,991,686 Noncapital Financing Activities
Advances from other funds - 500,000 500,000 - Transfers received - - - 2,803,440 Transfers paid (2,382,950) - (2,382,950) (142,560) Net Cash Provided by (Used For) Noncapital Financing Activities (2,382,950) 500,000 (1,882,950) 2,660,880 Capital and Related Financing Activities
Payments for debt service - principal payments (894,466) - (894,466) - Payments for debt service - interest payments (90,354) - (90,354) - Capital contributions 1,415,195 - 1,415,195 - Sale of capital assets - - - 371,968 Acquisition and construction of capital assets (1,609,747) - (1,609,747) (4,252,585) Net Cash Provided by (Used For) Capital and Related Financing Activities (1,179,372) - (1,179,372) (3,880,617) Investing Activities
Investment earnings 1,690,294 108,632 1,798,926 732,930 Net Cash Provided by Investing Activities 1,690,294 108,632 1,798,926 732,930 Net Increase (Decrease) in Cash and Cash Equivalents 1,247,585 249,167 1,496,752 3,504,879 Cash and Cash Equivalents - Beginning of Year 22,774,003 741,304 23,515,307 16,296,256 Cash and Cash Equivalents - End of Year 24,021,588 $ 990,471 $ 25,012,059 $ 19,801,135 $ Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:
Operating Income (Loss) 2,014,066 $ (228,160) $ 1,785,906 1,203,057 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Depreciation 2,913,922 - 2,913,922 2,382,478 Other revenue (expenses) (30,003) 38,371 8,368 33,136 Changes in Assets and Liabilities
Accounts receivable (175,771) (22,940) (198,711) (141,193) Prepaid expenses 3,888 (234,506) (230,618) - Due from other governments 126,349 - 126,349 1,963 Inventories 8,137 (43,812) (35,675) 68,859 Deferred outflows - pension related 235,123 - 235,123 - Deferred outflows - OPEB related (159,454) - (159,454) - Accounts payable (1,273,360) 127,156 (1,146,204) 443,386 Due to other funds - 4,426 4,426 - Retentions payable (19,786) - (19,786) - Deposits payable 1,378 - 1,378 - Accrued compensated absences (15,839) - (15,839) - Deferred inflows - pension related 17,732 - 17,732 - Deferred inflows - OPEB related (47,027) - (47,027) - Net pension liability (557,036) - (557,036) - Net OPEB liability 77,294 - 77,294 - Net Cash Provided by (Used For) Operating Activities 3,119,613 $ (359,465) $ 2,760,148 $ 3,991,686 $ There were no non-cash investing, capital or financing activities for the year ended June 30, 2024.
Business-type Activities
Enterprise Funds
See No
tes to Financial Statements 37
City of Fontana, California
Statement of Fiduciary Net Position
June 30, 2024
Other Private Purpose
Postemployment Trust Fund
Custodial Benefits (OPEB) Successor Agency
Funds Trust of the Former RDA
Assets
Cash 27,454,285 $ 235,800$ 778,183$
Investments
Exchange Traded Funds - 11,761,372 -
Asset- backed securities - 795,671 -
Mutual Funds- Bonds 9,975,501
Mutual Funds- Equity - 3,535,982 -
Receivables (net)
Assessments 242,575 - -
Interest - - 1,125,390
Loans receivable - - 2,233,105
Allowance for doubtful accounts - - (1,971,279) Restricted assets
Cash and investments with fiscal agent 16,869,448 - 19,713,721 Total assets 44,566,308 26,304,326 21,879,120 Liabilities
Interest payable - - 1,870,885
Due to other governments 41,325 - -
Unearned revenue - - 125,000
Long-term liabilities
Due in one year - - 17,659,151
Due in more than one year - - 396,135,073 Total liabilities 41,325 - 415,790,109
Net
Position
Held for other organizations 11,029,129 - - Restricted for debt service 33,495,854 - (393,910,989) Restricted for other postemployment benefits - 26,304,326 - Total net position (deficit) 44,524,983$ 26,304,326$ (393,910,989)$
See Notes to Financial Statements 38
City of Fontana, California
Statement of Changes in Fiduciary Net Position
Year Ended June 30, 2024
Other Private Purpose
Postemployment Trust Fund
Custodial Benefits (OPEB) Successor Agency
Funds Trust of the Former RDA
Additions
Contributions from property owners 18,215,972 $ - $ 35,224,588$ Employer Contributions - 3,524,890 - Net investment income 255,371 3,645,250 600,892 Increase in deposits held 8,427,638 - - Other revenue - - 1,050,521 Total additions 26,898,981 7,170,140 36,876,001 Deductions
Benefits paid to participants or beneficiaries - 3,524,890 - Contractual services - - 434,483 Administrative expense 862,984 36,018 6,000 Interest expense 7,207,347 - 14,106,841 Contributions to other funds - - 250,000 Principal payments 6,835,000 - - Decrease in deposits held 4,886,093 - - Total deductions 19,791,424 3,560,908 14,797,324 Changes in Net Position 7,107,557 3,609,232 22,078,677 Net Position (Deficit)- Beginning of Year,
As Previously Presented 37,417,426 - (415,989,666) Restatements - 22,695,094 - Net Position (Deficit)- Beginning of Year, as Restated 37,417,426 22,695,094 (415,989,666) Net Position (Deficit)- End of Year 44,524,983 $ 26,304,326 $ (393,910,989)$
39 City of Fontana, California
Notes to Financial Statements
June 30, 2024
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
40 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
41 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 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 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, an Other Post Employment Benefits (OPEB) Trust fund, 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
42 Grants Fund – To account for miscellaneous federal, state and county grants requiring segregated fund accounting.
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.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
43 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.
Other Postemployment Benefits (OPEB) Trust - accounts for the assets of the OPEB Trust.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
44 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.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
45 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 / Engineering includes those activities which provide specialized skills and knowledge in support of the operation of government, involve the maintenance and improvement of City streets, roads and park department development and maintenance.
Community Development includes those activities which enhance the general quality of life and for protective inspections except those related to fire.
Community Services includes those activities which provide all cultural and recreational programs and facilities.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
46 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 Note 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.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
47 Property, pla
nt and equipment of the primary government is depreciated using the straight-line method over the following estimated useful lives:
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 Shorter of useful life or lease term Asset
Right to
use lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right to use lease assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right to use lease assets are amortized over the shorter of the lease term or useful lives of the underlying asset using the straight-line method. The amortization period varies.
Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use an underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies.
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 position 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.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and 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 f unds
report unavailable revenues for revenues that are measurable bu t 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
48 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, 2024, the City had bonded indebtedness of $49,425,000 against its debt limit of $4,525,921,237, which is 1.09 percent of the total limit.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
49 Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. 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, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023
Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and the OPEB expense, information about the fiduciary net position of the City’s plan OPEB plan (OPEB Plan), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
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, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022, to June 30, 2023
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
50 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. Adoption of New Accounting Standard
As of July 1, 2023, the City adopted GASB Statement No. 100, Accounting Changes and Error Corrections. The implementation of this standard requires additional presentation and disclosure requirements for accounting changes and error corrections. The financial statements have been updated to the presentation requirements related to the error correction and change within the financial reporting entity in the financial statements for the year ended June 30, 2024. The additional disclosures required by the standard are included in Note 19.
F. 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 are not due and payable in the current period and, therefore, are not recognized in the funds.” The detail of this $319,892,086 long-term liabilities difference is as follows:
Lease revenue bonds payable 49,425,000 $
Loan payables 2,037,010
Claims and judgments 22,333,344
Compensated absences 12,149,286
Lease liability 164,865
SBITA liability 1,562,310
Other postemployment benefits liability 20,658,400
Net pension liability 205,693,159
Bond premium to be amortized 5,868,712
Net adjustment to reduce fund balances of governmental
funds to arrive at net position of governmental activities 319,892,086$
City of Fontana, California
Notes to Financial Statements
June 30, 2024
51 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 issuing debt increases long-term liabilities in the statement of net position. Repayment of long-term liabilities is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position.” The detail of this $1,093,192 difference is as follows:
Principal repayments:
Lease revenue bonds (1,830,000) $
SANBAG loan payable (407,402)
Amortization of bond premium (244,977)
Net change in claims and judgments (251,632)
Net change in lease liability 78,509
Net change in SBITA liability 1,562,310
Net adjustment to increase net changes in fund balances of governmental funds to arrive at changes in
net position of governmental activities (1,093,192)$
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 $936,178 is as follows:
Compensated absences (936,178) $
Net adjustment to increase net changes in fund balances of governmental funds to arrive at changes in net position of governmental activities (936,178)$
City of Fontana, California
Notes to Financial Statements
June 30, 2024
52 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, 2024. 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 $345,811,539. 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
53 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, 2024, are as follows:
Expenditures Appropriations Excess
General Fund- Debt Service 999,383 $ 77,418 $ (921,965) $ Special Revenue Funds
Traffic Safety Fund- Public Works & Engineering 65,379 44,190 (21,189) Capital Reinvestments - Community Development 7,907,545 65,112 (7,842,433) Capital Reinvestments - Community Services 22,858 - (22,858)
A budgetary comparison schedule is not presented for the Down Payment Assistance, Opioid Settlement, Underground Utilities, Prop 1B, and TDA / Article 3 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, 2024, the following funds had deficit fund balances:
Special Revenue Funds
Grants 7,846,427 $
TDA 67,690
Housing and Community Development Block Grant 51,048
Community Services Reimbursements 1,086,988
ASES ELO-P 1,596,711
Permanent Local Housing Allocation 47,316
ARPA County 707,360
Fiduciary Funds
Successor Agency 393,910,989
These deficit fund balances will be addressed through future year revenues and transfers.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
54 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.
Restricted Assets
Cash and Cash and Investments
Investments with Fiscal Agent Total
Governmental activities 520,310,599 $ 71,030,552 $ 591,341,151 $ Business- type activities 25,012,060 - 25,012,060 Fiduciary funds 54,536,794 36,583,169 91,119,963 599,859,453$ 107,613,721 $ 707,473,174 $
Cash and investments as of June 30, 2024 consisted of the following:
Cash on hand 50,000$
Deposits with financial institutions 197,013,082
Investments 510,410,092
707,473,174$
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
55 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 or A sset-Backed Securities 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.
Investments Authorized by the City’s Section 115 Trusts
Investments of the Pension Trust and the OPEB Plan Trust are governed by the provisions of the separate Trust Agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held in the Section 115 Trusts include U.S. and foreign equity, commodities, real estate investment trusts, and bonds. The strategic range for Equity and Fixed Income investments is 40-60% and 38-58%, respectively. There are no limitations on the maximum amount that can be invested in one issuer or the maximum maturity of an investment. For the year ended June 30, 2024, the annual money-weighted rate of return on investments, net of investment expense, was 16.07%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
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. LAIF is not registered with the Securities and Exchange Commission (SEC) and is not rated.
Deposits
At June 30, 2024, the carrying amount of the City’s deposits was $186,606,896 and the bank balance was $189,082,503. The $2,475,607 difference represents outstanding checks and other reconciling items.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
56 Disclosures Relating to Credit Risk
The City’s investment policy limits investments in medium term notes (MTNs) and federal securities to those in a rating category of “A” or its equivalent or better by Moody’s or Standard and Poor’s rating service. As of June 30, 2024, the City’s investments consisted of the following:
Amount AAA - Aaa AA+ - AA- A - A+ A- - BBB+ Not Rated
U.S Government Securities 20,640,587$ 2,373,052 $ 18,267,535 $ $ - - $ $ - Federal Agency Securities 12,774,514 - - - - 12,774,514 Asset- Backed Securities 28,578,131 28,578,131 - - - - Corporate 76,581,840 7,933,065 8,975,045 48,379,923 11,293,807 - Municipal Bonds 79,665 - 79,665 - - - U.S Treasuries 148,929,589 148,929,589 - - - - State Investment Pool (LAIF) 82,880,496 - - - - 82,880,496 Money Market Funds 8,590,468 - - - - 8,590,468 Section 115 Trust- Pension 12,093,159 - - - - 12,093,159 Section 115 Trust- OPEB 26,068,526 - - - - 26,068,526 Held by fiscal agents:
Money Market Funds 93,193,117 - - - - 93,193,117 510,410,092$ 187,813,837 $ 27,322,245 $ 48,379,923 $ 11,293,807 $ 235,600,280 $ Ratings as of Year End
Investment Type
The City holds investments in Corporate Bonds with various issuers that were downgraded to A- / BBB+, by S&P's Investor Services based on current credit standards. Although the credit ratings were downgraded, the City intends to hold these investments until maturity, presuming that they will either increase in value or hold their current value.
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 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
57 As of June 30
, 2023, the City’s deposits with financial institutions were covered by FDIC up to $250,000, and the remaining amounts of $188,832,530 were collateralized as described above.
Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain types of investments with any one issuer.
Maximum %
Maximum of Pool Government Code
Maturity Allowed Section
State Treasurer’s Local Agency 5 years 75 million/account 16429.1 Investment Fund (LAIF)
U.S. Government Securities 5 years None 53601(b) 53601(f) California State, California Local
Government Agencies, and other 5 years 20% 53601(c) 53601(d) United States State Bonds 53601(e)
Bankers Acceptances 180 days 40% 53601(g)
Commercial Paper 270 days 10% 53601(h)
Negotiable Certificates of Deposit 5 years 30% 53601( i) Medium-Term Notes 5 years 10% 53601(k)
Pass- Through Securities 5 years 20% 53601(o)
Supranational Obligations 5 years 30% 53601(q)
Certificates of Deposit 5 years None 53635
Investment Type
With respect to concentration risk, as of June 30, 2024, the City is in compliance with the restrictions of the investment policy.
Investments guaranteed by the U.S. Government and investments in mutual funds and external investment pools are excluded from this requirement.
Interest Rate Risk
The City’s investment policy limits investment maturity as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that at least 10% of the City’s portfolio shall mature in one year or less. The only exception to this maturity limit shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
58 As of June 30, 2024, the City had the following investments and maturities:
6 months 6 months 1 to 3 3 to 5 6 years Total
or less to 1 year years yea rs or more Fair Value
U.S Government Securities 11,190,971$ 601,948 $ 8,847,668 $ - $ - $ 20,640,587$ Corporate Obligations 5,986,813 6,817,320 54,250,303 9,527,404 - 76,581,840 State Investment Pool 82,880,496 - - - - 82,880,496 Treasury Notes - - 148,929,589 - - 148,929,589 Municipal Bonds 79,665 - - - - 79,665 Asset- Backed Securities - - 3,715,252 12,051,667 12,811,212 28,578,131 Federal Agency Securities - - - - 12,774,514 12,774,514 Money Market Mutual Funds 8,590,468 - - - - 8,590,468 Section 115 Trust - Pension
Asset- Backed Securities 331,000 - - - - 331,000 Exchange Traded Funds 6,617,855 - - - - 6,617,855 Mutual Funds - Bonds 3,680,513 - - - - 3,680,513 Mutual Funds - Equity 1,463,791 - - - - 1,463,791 Section 115 Trust - OPEB
Exchange Traded Funds 11,761,372 - - - - 11,761,372 Asset- Backed Securities 795,671 - - - - 795,671 Mutual Funds - Bonds 9,975,501 - - - - 9,975,501 Mutual Funds- Equity 3,535,982 - - - - 3,535,982 Held by fiscal agents:
Money Market Funds 93,193,117 - - - - 93,193,117 240,083,215$ 7,419,268 $ 215,742,812 $ 21,579,071 $ 25,585,726 $ 510,410,092 $ Investment Maturities
City of Fontana, California
Notes to Financial Statements
June 30, 2024
59 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, 2024:
Level 1 Level 2 Level 3 Total Fair Value
Investments Measured at Fair Value
U.S Government Securities - $ 20,640,587$ - $ 20,640,587$ Corporate Obligations - 76,581,840 - 76,581,840 Treasury Notes 148,929,589 - - 148,929,589 Municipal Bonds - 79,665 - 79,665 Asset- Backed Securities - 28,578,131 - 28,578,131 Federal Agency Securities - 12,774,514 - 12,774,514 Section 115 Trust - Pension
Asset- Backed Securities - 331,000 331,000 Exchange Traded Funds - 6,617,855 6,617,855 Mutual Funds - Bonds - 3,680,513 3,680,513 Mutual Funds - Equity - 1,463,791 1,463,791 Section 115 Trust - OPEB
Exchange Traded Funds - 11,761,372 - 11,761,372 Asset- Backed Securities - 795,671 - 795,671 Mutual Funds - Bonds - 9,975,501 - 9,975,501 Mutual Funds - Equity - 3,535,982 - 3,535,982 Total investments measured at fair value 148,929,589$ 176,816,422 $ - $ 325,746,011$ Investments Not Reported in Fair Value Hierarchy
Money Market Mutual Funds 101,783,585$
State Investment Pool (LAIF) 82,880,496
Total investments not reported in fair value 184,664,081 Total investments held 510,410,092$
Fair Value Hierarchy
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%. Additionally, 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 $1,039,681 in lease revenue and $380,980 in interest revenue during the current fiscal year related to these agreements. As of June 30, 2024, the lease receivable is $15,933,396 and deferred inflows of resources is $15,028,063.
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 Note 8.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
60 Note 5 - Receivables
Receivables as of June 30, 2024, 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:
Fire Protection Housing Traffic Congestion Sewer Traffic General District Authority Relie f Expansion Mitigation Accounts 4,694,548 $ 116,624 $ 55,792 $ - $ 110,773$ - $ Interest 434,814 151,208 4,577,600 121,541 218,847 295,309 Loans - - 72,367,298 - - - Loans to Successor Agency 22,555,864 - - - - - 27,685,226 267,832 77,000,690 121,541 329,620 295,309 Less allowance for
doubtful accounts - - - - - - 27,685,226$ 267,832 $ 77,000,690 $ 121,541 $ 329,620 $ 295,309 $ Nonmajor Nonmajor Internal
Governmental Sewer Enterprise Service Fiduciary
Funds Operations Fund Funds Funds Total
Accounts 158,340
$ 1,408,015 $ 22,940 $ 143,878 $ - $ 6,710,910$ Assessments 420,669 - - 242,575 663,244 Interest 2,566,239 167,656 4,958 115,504 1,125,390 9,779,066 Loans 10,998,681 2,081,888 1,090,124 - 2,233,105 88,771,096 Loans to Successor Agency - 3,305,829 - - - 25,861,693 14,143,929 6,963,388 1,118,022 259,382 3,601,070 131,786,009 Less allowance for
doubtful accounts 101,795 3,305,829 - - 1,971,279 5,378,903 14,042,134$ 3,657,559 $ 1,118,022 $ 259,382 $ 1,629,791 $ 126,407,106 $ Capital ProjectsSpecial Revenue
Due to the uncollectability of the loans to the Successor Agency, an allowance for doubtful accounts has been recorded at June 30, 2024 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 $22,555,864 in the General Fund.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
61 Note 6 - Capital Assets
Capital asset activity for the year ended June 30, 2024, was as follows:
Beginning Restated
Balance Balance Balance
June 30, 2023 Adjustments June 30, 2023 Transfers Increases Decreases June 30, 2024 Governmental Activities
Capital assets, not being depreciated
Land 175,066,016 $ - $ 175,066,016$ 3,230,187 $ 5,786,231 $ (1,559,818) $ 182,522,616 $ Construction in progress 61,819,427 (10,364,383) 51,455,044 (38,474,880) 71,803,137 (872) 84,782,429 Easements 6,339,512 - 6,339,512 140,504 - - 6,480,016 Total capital assets,
not being depreciated 243,224,955 (10,364,383) 232,860,572 (35,104,189) 77,589,368 (1,560,690) 273,785,061 Capital assets, being depreciated
Buildings and improvements 337,481,931 - 337,481,931 29,013,084 5,628,572 (218,093) 371,905,494 Machinery and equipment 28,502,744 - 28,502,744 2,745,792 1,178,452 (131,479) 32,295,509 Vehicles 38,426,518 - 38,426,518 1,280,832 3,706,763 (2,586,348) 40,827,765 Infrastructure 878,830,400 - 878,830,400 2,064,481 4,130,917 - 885,025,798 Intangible assets
Subscription assets - - - 4,040,606 - 4,040,606 Lease assets- vehicles 108,141 - 108,141 - 210,520 - 318,661 Other intangibles 5,384,870 - 5,384,870 - - - 5,384,870 1,288,734,604 - 1,288,734,604 35,104,189 18,895,830 (2,935,920) 1,339,798,703 Less accumulated depreciation for
Buildings and improvements (165,979,608) - (165,979,608) - (12,934,759) 30,291 (178,884,076) Machinery and equipment (24,011,912) - (24,011,912) - (1,489,232) 131,479 (25,369,665) Vehicles (23,984,465) - (23,984,465) - (3,230,733) 2,418,652 (24,796,546) Infrastructure (569,014,140) - (569,014,140) - (21,500,845) - (590,514,985) Intangible assets
Subscription assets - - - - (1,344,580) - (1,344,580) Lease assets- vehicles (1,825) (22,185) (24,010) - (87,805) - (111,815) Other intangibles (2,520,529) - (2,520,529) - (64,854) - (2,585,383) (785,512,479) (22,185) (785,534,664) - (40,652,808) 2,580,422 (823,607,050) Total capital assets,
being depreciated, net 503,222,125 503,222,125 35,104,189 (21,756,978) (355,498) 516,191,653 -
Governmental activities capital assets, net 746,447,080$ (10,386,568) 736,060,512 - $ 55,832,390$ (1,916,188) $ 789,976,714 $
Beginning Adjusted
Balance Balance Balance
June 30, 2023 Adjustments June 30, 2023 Transfers Increases Decreases June 30, 2024 Business Type Activities
Capital assets, not being depreciated -
Construction in progress 1,513,666 $ - $ 1,513,666 (1,138,436) $ 675,024 $ - $ 1,050,254$ Total capital assets, -
not being depreciated 1,513,666 - 1,513,666 (1,138,436) 675,024 - 1,050,254 Capital assets, being depreciated
Buildings and improvements 1,798,150 - 1,798,150 - - - 1,798,150 Machinery and equipment 613,549 - 613,549 - 71,723 - 685,272 Infrastructure 123,043,623 - 123,043,623 1,138,436 863,000 - 125,045,059 Intangibles 64,698 - 64,698 - - - 64,698 125,520,020 125,520,020 1,138,436 934,723 - 127,593,179 - Less accumulated depreciation for:
Buildings and improvements (738,391) - (738,391) - (46,244) - (784,635) Machinery and equipment (600,602) - (600,602) - (7,031) - (607,633) Infrastructure (61,199,376) - (61,199,376) - (2,860,647) - (64,060,023) Intangibles (64,698) - (64,698) - - - (64,698) (62,603,067) (62,603,067) - (2,913,922) - (65,516,989) Total capital assets,
being depreciated, net 62,916,953 62,916,953 1,138,436 (1,979,199) - 62,076,190 Business- type activities capital assets, net 64,430,619$ 64,430,619 - $ (1,304,175)$ - $ 63,126,444$
City of Fontana, California
Notes to Financial Statements
June 30, 2024
62 Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
Government Activities
General government 4,379,469$
Public safety 3,052,083
Community development 1,444,572
Community services 785,936
Public works and engineering 28,608,270
Total depreciation / amortization charged to functions 38,270,330 Charged to Internal Service Fund 2,382,478
Total Governmental Activities 40,652,808$
Business-type Activities
Sewer Operations 2,913,922$
The following material construction commitments existed at June 30, 2024:
Expenditures
Contract to date as of Remaining
Amount June 30, 2024 Commitments
City Hall Renovation Project, PH 1 25,946,529 $ 7,138,993 $ 18,807,536 $ Downtown Parking Structure 18,000,000 38,358 17,961,642 Fire Station No. 81 12,090,967 9,946,395 2,144,572 Arrow/Tokay TS 1,712,000 224,583 1,487,417 Arrow/Cypress TS 2,325,000 308,938 2,016,062 Foothill: Hemlock-Alameda Arterial 4,230,000 1,411,957 2,818,043 Project Name
City of Fontana, California
Notes to Financial Statements
June 30, 2024
63 Note 7 - Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2024, is as follows: Due to/from other funds:
Due to/from other funds
Amount
General Fund Major Governmental Funds
Community Facilities Districts 6,468,703 $
Grants 4,487,807
Traffic Congestion Relief 9,585,239
Non-major Governmental Funds
Permanent Local Housing Allocation 41,018
TDA 192,500
Community Facilities Districts 15,736
Housing and Community Development Block Grant 777,489
Community Services Reimbursements 1,774,149
ASES ELO-P 1,504,350
ARPA County 674,999
Non-major Enterprise Funds
Stage Red 4,426
Total 25,526,416 $
Receivable Fund Payable Fund
The amounts due to the General Fund are the result of negative cash balances at the end of the year.
Advance to/from other funds
Amount
Non-major Governmental Funds Major Governmental Funds
Future Capital Projects Traffic Mitigation 26,691,542 $ Non-major Governmental Funds
Capital Improvements 1,717,369
Total 28,408,911 $
Receivable Fund Payable Fund
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 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
64 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 Communitiy Nonmajor
Protection Facilities Governmental Internal
General District Districts Gr ants Funds Service Fund Total Transfers out
General - $ 200,000$ 62,556 $ - $ 22,432,909$ 2,624,350 $ 25,319,815 $ Fire Protection District 10,467,963 - - - 13,642,708 - 24,110,671 Housing Authority - - - - 4,887 - 4,887 Grants 59,161 - - - - - 59,161 Traffic Congestion Relief 450,220 - - - - - 450,220 Sewer Expansion 19,280 - - - - - 19,280 Community Facilities Districts - - - - 9,189,418 - 9,189,418 Traffic Mitigation 73,880 - - - - - 73,880 Nonmajor Governmental Funds 9,223,647 1,006,100 - 105,363 10,111,719 179,090 20,625,919 Sewer Operations 2,382,950 - - - - - 2,382,950 Internal Service Fund 142,560 - - - - - 142,560 22,819,661$ 1,206,100 $ 62,556 $ 105,363 $ 55,381,641 $ 2,803,440 $ 82,378,761 $ Transfers In
Note 8 - Long-Term Liabilities
Long-term liabilities activity for the year ended June 30, 2024, was as follows:
Beginning Ending Amounts Amounts
Balance Balance Due Within Due in More
June 30, 2023 Additions Retirements Ju ne 30, 2024 One Year Than One Year Governmental Activities
Lease Revenue Bonds 51,255,000 $ - $ 1,830,000$ 49,425,000 $ 1,915,000 $ 47,510,000 $ Claims and judgments 22,584,976 7,258,966 7,510,598 22,333,344 6,190,443 16,142,901 Compensated absences 11,213,108 8,678,060 7,741,882 12,149,286 7,741,882 4,407,404 Loan payable - SANBAG 2,444,412 - 407,402 2,037,010 407,402 1,629,608 SBITA liability - 2,459,222 896,912 1,562,310 912,594 649,716 Lease liability 86,356 161,022 82,513 164,865 55,889 108,976 Total governmental activities
long-term liabilities 87,583,852$ 18,557,270 $ 18,469,307 $ 87,671,815 17,223,210 70,448,605 Unamortized bond premium 5,868,712 244,977 5,623,735 93,540,527$ 17,468,187 $ 76,072,340 $
Business- Type Activities
Compensated absences 237,127 $ 167,499 $ 183,338 $ 221,288 $ 183,338 $ $37,950 Loans payable 4,842,202 - 894,466 3,947,736 910,544 3,037,192 Total business- type activity
long- term liabilities 5,079,329$ 167,499 $ 1,077,804 $ 4,169,024 $ 1,093,882 $ 3,075,142 $
City of Fontana, California
Notes to Financial Statements
June 30, 2024
65 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.
Fiscal Year
Ending Principal Interest Total
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 1,715,000 893,300 2,608,300
2030-2034 9,880,000 3,103,975 12,983,975 2035-2038 9,595,000 785,900 10,380,900 Totals 27,265,000$ 9,131,250 $ 36,396,250 $
2014 Lease Revenue Bonds
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.
Fiscal Year
Ending Principal Interest Total
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 590,000 800,800 1,390,800
2030-2034 3,310,000 3,631,400 6,941,400 2035-2039 4,025,000 2,914,800 6,939,800 2040-2044 4,630,000 2,041,600 6,671,600 2045-2049 4,390,000 1,155,600 5,545,600 2050-2052 3,075,000 249,200 3,324,200 Totals 22,160,000$ 14,214,600 $ 36,374,600 $
2021 Lease Revenue Bonds
City of Fontana, California
Notes to Financial Statements
June 30, 2024
66 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 loan is required to be paid back, totaling $4,074,021. The City has seven years to pay back the amount without interest.
Fiscal Year
Ending Principal Interest Total
2025 407,402$ -$ 407,402$
2026 407,402 -
407,402
2027 407,402 -
407,402
2028 407,402 -
407,402
2029 407,402 -
407,402
Totals 2,037,010$ -$
2,037,010$
SANDBAG
Subscripti
on Based Information Technology Arrangements (SBITAS)
The City has entered into ten SBITA contracts for the use of various software platforms. The City is required to make principal and interest payments through June 2027. The SBITA liability was valued using discount rates between 2.180% and 3.631% based on the City's incremental borrowing rate at the inception of the SBITAs. The total amount of right to use subscription assets, and the related accumulated amortization on right to use subscription assets was $4,040,606 and $1,344,580, as of June 30, 2024, respectively.
Remaining principal and interest on SBITAS are as follows:
Fiscal Year
Ending Principal Interest Total
2025 912,594
$ 35,094$ 947,688$
2026 561,239 14,166 575,405
2027 88,477 1,546 90,023 Totals 1,562,310 $ 50,806 $ 1,613,116 $ SBITAS
Leas
e 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 lease liability was valued using discount rates ranging from .6320% to 3.445% based on the City’s incremental borrowing rate at the inception of the lease. The total amount of the right to use asset and the related accumulated amortization on the right to use asset was $318,661 and $111,815, respectively.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
67 Future principal and interest payments on the lease liability is as follows:
Fiscal Year
Ending Principal Interest Total
2025 55,889 $ 3,209 $ 59,098 $ 2026 57,218 1,880 59,098 2027 49,848 612 50,460 2028 1,910 6 1,916 Totals 164,865 $ 5,707 $ 170,572 $ Lease Liability
Loan Payable-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 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 annual installments. As of June 30, 2024, the loan payable is $3,947,736.
Fiscal Year
Ending Principal Interest Principal Interest Principal Interest Principal Interest Total 2025 466,999 $ 35,241 $ 192,827 $ 20,350 $ 250,718 $ 18,683 $ 910,544 $ 74,274 $ 984,818 $ 2026 475,571 26,670 196,078 17,098 255,264 14,138 926,913 57,906 984,819 2027 484,300 17,941 199,385 13,792 259,892 9,510 943,577 41,243 984,820 2028 493,187 9,053 202,747 10,430 264,603 4,798 960,537 24,281 984,818 2029 - - 206,165 7,011 - - 206,165 7,011 213,176 Totals 1,920,057$ 88,905 $ 997,202 $ 68,681 $ 1,030,477 $ 47,129 $ 3,947,736 $ 204,715 $ 4,152,451 $ Combined LoansTrunk Sewer Phase Lift Statio n Phase Force Main Phase San Bernardino Trunk Sewer - State Revolving Fund Loans
Mello-Roos Community Facilities Districts
Between 1988 and 2024, twenty- two Community Facilities Districts have issued Special Tax Bonds. The bonds are authorized pursuant to the Mello- Roos Community Facilities Act of 1982 and are secured by and payable solely from the revenues of an annual special assessment tax levied against land within the Districts. The bonds are not backed by the full faith and credit or taxing power of the City and do not constitute indebtedness of the City. The City is not liable for the bonds, but acts as an agent for the bondholders in collecting the assessments from property owners, forwarding the collections to bondholders and initiating foreclosure proceedings if necessary.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
68 The transactions occurring as a result of the City acting in an agent capacity are being accounted for in a custodial 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, 2024.
Outstanding
Original Issue Amount at
Date of Issue Amount June 30, 2024
CFD # 7 Series B (Sierra Lakes) July 2021 1,445,000 $ 1,080,000 $ CFD # 11 (Heritage West End) July 2021 2,995,000 2,225,000 CFD # 12 Series A (Sierra Lakes) July 2021 9,950,000 8,060,000 CFD # 22 (Sierra Hills South) June 2014 31,260,000 20,325,000 CFD # 31 (Citrus Heights North) July 2018 18,485,000 14,625,000 CFD # 31 (Citrus Heights North) October 2021 8,025,000 7,585,000 CFD # 37 (Montelago) July 2021 2,135,000 1,900,000 CFD # 70 (Avellino) July 2021 1,975,000 1,860,000 CFD # 71 (Sierra Crest) July 2016 5,915,000 4,855,000 CFD #74B (Citrus/ Summit) June 2019 4,045,000 3,720,000 CFD # 80 (Bella Strada) August 2017 11,125,000 9,755,000 CFD # 81 (Gabriella) March 2018 7,180,000 6,425,000 CFD #86 (Etiwanda Ridge) February 2020 5,025,000 4,600,000 CFD #85 (The Meadows) October 2020 22,640,000 21,195,000 CFD #88 (Sierra Crest II) October 2020 6,510,000 6,255,000 CFD #89 (Belrose) November 2020 5,725,000 5,315,000 CFD #90 (Summit @ Rosena I) June 2021 22,260,000 21,405,000 CFD #87 (El Paseo) July 2021 5,325,000 5,115,000 CFD #95 (Summit @ Rosena 2) May 2022 9,305,000 8,925,000 CFD #106 (Mountainview) August 2022 6,940,000 6,830,000 CFD #99 (The Retreat) May 2023 4,630,000 4,630,000 CFD #100 (Victoria) October 2023 5,310,000 5,310,000 CFD #111 (Monterado) May 2024 7,595,000 7,595,000 Total Special Tax Bonds 205,800,000$ 179,590,000 $
Special Tax Bonds
Note 9 - Risk Management
The City established risk management programs for workers’ compensation in 1978-79 and for general liability in 1983-84. The programs are accounted for within the General Fund and are supported by contributions from the other principal City funds.
Effective with an excess coverage insurance policy on July 1, 1992, the workers’ compensation program provides for self-insurance up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to a maximum per incident of $45,000,000.
Under the City’s excess insurance policy for general liability, all claims incurred after October 1, 1992, are self- insured up to a maximum of $1,000,000 per incident. The claims which exceed the limit are insured up to maximum per incident of $25,000,000. The City is self-insured for general liability claims incurred prior to October 1, 1992.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
69 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 three 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:
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
Claims incurred (including IBNRs) 7,258,966
Claims paid/ dismissed (7,510,598)
Claims payable, June 30, 2024 22,333,344 $
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.
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
70 Note 12 - Other Post-Employment Benefits Liability
Plan Description
In addition to the pension benefits described in Note 13, the City administers a single employer defined-benefit post-employment healthcare plan (the Plan). Dependents are eligible to enroll, and benefits continue to surviving spouses. Eligibility for lifetime retiree health benefits requires retirement from the City on or after reaching age 50 (age 52 for PEPRA New Hires) with at least five years of PERS-credited service. The City subsidizes the benefit depending on the date of hire and years of services with the City at retirement. Retirees are responsible for the cost of coverage above the City subsidy. Spousal coverage is offered at retirement. No City-subsidized vision or life insurance benefit is offered. 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, 2023, measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:
Active employees 572
Inactive employees or beneficiaries currently receiving benefits 234 Inactive employees entitled to, but not yet receiving benefits - Total 806
Contributions
The required contribution is based on projected pay-as-you-go financing requirements. For the fiscal year ending June 30, 2024, the City’s cash contributions were $2,355,211 in the form of current premiums, which is funded through the General Fund, and the estimated implied subsidy was $679,629 resulting in total payments of $3,034,840.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
71 OPEB Liability
The City’s OPEB liability was measured as of June 30, 2023, and was determined by an actuarial valuation based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.00%
Inflation 2.30%
Salary Increases 2.80% per annum, in aggregate
Mortality Rate Derived using CalPERS’ Membership Data
for all funds
Pre- Retirement Turnover Derived using CalPERS’ Membership Data for all funds
Based on 2021 Getzen model that reflects
actual premium increases through 2023
Healthcare Trend Rate followed by 7.40% Pre- Medicare/ 4.2% Medicare, gradually decreasing to an
ultimate rate of 4.14% in 2075.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. GASB 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the trust set aside to pay benefits, if the plan sponsor makes regular contributions to the trust, such that the assets are not depleted at any point in the future. The OPEB plan assets are expected to be invested using a strategy to achieve the long- term rate of return.
Changes in the OPEB Liability
The changes in the OPEB liability for the OPEB Plan are as follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023
(Measurement Date June 30, 2022) 40,446,261$ 21,553,499 $ 18,892,762 $ Changes recognized for the measurement period:
Service cost 349,468 - 349,468 Interest 2,356,699 - 2,356,699 Differences between expected and actual experience 7,102,941 - 7,102,941 Changes of assumptions (3,191,536) - (3,191,536) Contributions - Employer- City Contributions - 2,355,211 (2,355,211) Contributions - Employer- Implicit Subsidy - 679,629 (679,629) Benefit Payments (2,355,211) (2,355,211) - Implicit Subsidy Credit (679,629) (679,629) - Net investment income - 1,149,795 (1,149,795) Administrative expense - (8,200) 8,200 Net Changes 3,582,732 1,141,595 2,441,137 Balance at June 30, 2024
(Measurement Date June 30, 2022) 44,028,993$ 22,695,094 $ 21,333,899 $
City of Fontana, California
Notes to Financial Statements
June 30, 2024
72 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, 2023:
Current
1% Decrease Discount Rate 1% Increase
(5.00%) (6.00%) (7.00%)
OPEB Liabiliity 25,678,178 $ 21,333,899 $ 17,610,131 $
Sensitivity of the Net 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, 2023:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
(6.40% decreasing (7.40% decreasing (8.40% decreasing
to 3.14%) to 4.14%) to 5.14%)
Net OPEB Liabiliity 17,457,588 $ 21,333,899 $ 25,860,300 $
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $555,099. As of fiscal year ended June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 3,524,890 $ - $ Changes of assumptions 7,529,782 20,685,607
Net difference between projected and actual earnings
on OPEB plan investments 1,886,709 -
Differences between expected and actual experience 6,277,017 11,064,549 Total 19,218,398 $ 31,750,156 $
The $3,524,890 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
73 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as OPEB expense as follows:
Deferred
Outflows/(Inflows)
of Resources
2024 (1,976,502) $
2025 (1,976,502)
2026 (1,976,500)
2027 (2,567,227)
2028 (2,595,860)
Thereafter (4,964,057)
Ended June 30,
Measurement Period
OPEB Fiduciary Plan- GASB 74
The following information is provided for the OPEB plan in accordance with GASB 74. The OPEB Fiduciary Plan is the same Plan as reported above, however, the Scope of GASB 74 includes the OPEB Fiduciary Trust. In addition, the reporting periods differ and, as such, the financial information is different. Certain information requiring footnote disclosure is repetitive.
The OPEB Plan is administered by the City and is presented in the statements of fiduciary net position and change in fiduciary net position. The net OPEB plan liability and asset information is reported within certain defined timeframes as listed below:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Report Date: June 30, 2024
At June 30, 2023 (census date), the benefits terms covered the following employees:
Active employees 572
Inactive employees, spouses, or beneficiaries currently receiving benefit payments 234 Total 806
City of Fontana, California
Notes to Financial Statements
June 30, 2024
74 Actuarial Assumptions
The total OPEB liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions:
Discount Rate 6.00%
Investment Rate of Return 6.00%
Inflation 2.30%
Salary Increases 2.80%
Mortality Rate Based on CalPERS Tables
Healthcare Trend Rate
Pre-Medicare 6.80%*
Medicare 4.17%*
* Trending down to 4.14% over 51 years. Applies to Calendar years.
Experience studies come from the CalPERS Pension Assumption Model, effective November 17, 2021.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. GASB 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the trust set aside to pay benefits, if the plan sponsor makes regular contributions to the trust, such that the assets are not depleted at any point in the future. The OPEB plan assets are expected to be invested using a strategy to achieve the long- term rate of return.
Long Term Expected Rate of Return
The expected long-term real rate of return of the OPEB Trust is 6.00% as of June 30, 2023 as provided by the Plan Sponsor’s investment advisor. This rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return net of investment expense are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future rates of return by the target allocation percentage. The Plan Sponsor’s expected future real rates of return by asset class is shown below:
Target Expected Long-Term
Allocation Real Rates of Return
U.S. Large Cap Equitites 26.00% 5.40%
Emerging Large Cap Equities 4.00% 7.70%
Global ex-U.S. Large Cap Equities 18.50% 6.50%
U.S. Small Cap Equities 1.50% 4.40%
U.S. Aggregate Bonds 43.50% 1.10%
U.S. Inflation-Linked Govt Bonds 6.50% 1.60%
Total 100.00%
1 An expected inflation of 2.30% used for this period.
Asset Class 1
The Plan’s expected return is weighted by the Plan’s expected cash flow.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
75 Net OPEB Liability of the City
The components of the net OPEB liability of the City at June 30, 2024, were as follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023 44,028,993 $ 22,695,094 $ 21,333,899 $ Changes for the year
Service cost 420,907 - 420,907 Interest 2,561,247 - 2,561,247 Contributions - Employer- City's Contribution - 2,590,890 (2,590,890) Contributions - Employer- Implicit Subsidy - 934,000 (934,000) Net investment income - 3,645,250 (3,645,250) Benefit Payments (2,590,890) (2,590,890) - Implicit Subsidy Credit (934,000) (934,000) - Administrative expense - (36,018) 36,018 Net Changes (542,736) 3,609,232 (4,151,968) Balance at June 30, 2024 43,486,257 $ 26,304,326 $ 17,181,931 $
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates
The net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it was calculated using a discount rate that is one percentage point lower (5.00%) or one percentage point higher (7.00%) follows:
Current
1% Decrease Discount Rate 1% Increase
(5.00%) (6.00%) (7.00%)
Net OPEB liability 21,412,258 $ 17,181,931 $ 13,544,182 $
The net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it was calculated using a healthcare cost trend rate that is one percentage point lower (5.80%) or one percentage point higher (7.80%) follows:
Current
1% Decrease Discount Rate 1% Increase
(5.80%) (6.80%) (7.80%)
Net OPEB liability 13,005,703 $ 17,181,931 $ 22,063,778 $
City of Fontana, California
Notes to Financial Statements
June 30, 2024
76 Note 13 - Pensions
As of and for
the year ended June 30, 2024, the City’s pension plan had the following balances reported in the government-wide financial statements.
Safety Miscellaneous
Plan Plan Total
Net pension liability 134,002,270 $ 76,408,744$ 210,411,014$ Pension expense 21,061,913 13,975,274 35,037,187 Deferred outflows of resources 41,234,561 26,067,227 67,301,788 Deferred inflows of resources 61,772 438,172 499,944 P
lan 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, 2022, Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
Tier I Tier II Tier III
Prior to On or after After Prior to On or after
Hire Date July 1, 2011 July 1, 2011 January 1, 2011 July 1, 2011 July 1, 2011 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57 2.5% @ 55 2% @ 62 Final Average Compensation Period Highest 1-year salary Final 3-year average Final 3-year average Highest 1-year salary Final 3-year average Benefit vesting schedule 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service 5 yrs credited service Benefit payments Monthly Monthly Monthly Monthly Monthly Retirement age 50 and above 50 and above 50 and above 55 and above 55 and above Monthly benefit basis Benefit factor, years of Benefit factor, ye ars of Benefit factor, years of Benefit factor, years of Benefit fa ctor, years of service and final service and final service and final service and final service and final compensation compensation compensation compensation compensation Safety Miscellaneous
City of Fontana, California
Notes to Financial Statements
June 30, 2024
77 Employees Covered
As of the June 30, 2023, measurement date, the following employees were covered by the benefit terms for each Plan:
Safety Miscellaneous
Inactive employees or beneficiaries
currently receiving benefits 208 557
Inactive employees entitled to but
not yet receiving benefits 73 1013
Active employees 189 502
Total 470 2072
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions; payments made by the employer are paid from the General Fund of the City.
Actuarial Methods and Assumptions used to determine Total Pension Liability
The June 30, 2022, valuation was used to determine the June 30, 2023, total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance floor on purchasing power applies,
2.30% thereafter
Entry Age Actuarial Cost Method
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
78 Change of Assumptions
There were no assumption changes in 2023. 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.
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:
Assumed Asset Real
Asset Class 1 Allocation 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 0.5
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
79 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 ACFR closing and final reconciled reserves.
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. These reports are publicly available reports that can be obtained at https://www.calpers.ca.gov/page/investments/about-investment-office/investment-financial- reports.
Liability, Expense and Deferred Outflows/Inflows
The components of the net pension liability at June 30, 2024, are as follows:
Total Pension Liability 644,425,967 $
Plan's Fiduciary Net Position 434,014,953
Net Pension Liability 210,411,014 $
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability 67.35%
Pension Expense
At June 30, 2024, the City recognized pension expense for CalPERS of $35,037,187.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
80 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: 6/30/2022 (VD) 347,319,078 $ 215,438,515 $ 131,880,563 $ Changes Recognized for the Measurement Period
Service Cost 7,548,406 - 7,548,406 Interest on the Total Pension Liability 23,827,606 - 23,827,606 Changes of Benefit Terms 95,168 - 95,168 Differences between Expected and Actual Experience 1,753,953 - 1,753,953 Changes of Assumptions - - - Net Plan to Plan Resource Movement - - - Contributions from the Employer - 14,437,567 (14,437,567) Contributions from Employees - 3,243,260 (3,243,260) Net Investment Income - 13,581,022 (13,581,022) Benefit Payments, including Refunds of
Employee Contributions (15,229,563) (15,229,563) - Administrative Expense - (158,423) 158,423 Net Changes during 2022-23 17,995,570 15,873,863 2,121,707 Balance at: 6/30/2023 (MD) 365,314,648 $ 231,312,378 $ 134,002,270 $ Increase (Decrease)
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at: 6/30/2022 (VD) 264,392,779 $ 191,847,509 $ 72,545,270 $ Changes Recognized for the Measurement Period
Service Cost 5,514,443 - 5,514,443 Interest on the Total Pension Liability 18,237,572 - 18,237,572 Differences between Expected and Actual Experience 3,021,811 - 3,021,811 Changes of Benefit Terms 336,962 - 336,962 Contributions from the Employer - 8,953,284 (8,953,284) Contributions from Employees - 2,532,144 (2,532,144) Net Investment Income - 11,902,962 (11,902,962) Benefit Payments, including Refunds of
Employee Contributions (12,392,248) (12,392,248) - Administrative Expense - (141,076) 141,076 Net Changes during 2022-23 14,718,540 10,855,066 3,863,474 Balance at: 6/30/2023 (MD) 279,111,319 $ 202,702,575 $ 76,408,744 $ Increase (Decrease)
City of Fontana, California
Notes to Financial Statements
June 30, 2024
81 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:
Discount Rate - 1% Current Discount Rate Discount Rate + 1% (5.90%) (6.90%) (7.90%)
Plan’s Net Pension Liability
Safety 187,272,573 $ 134,002,270 $ 90,676,816 $ Plan’s Net Pension Liability
Miscellaneous 116,810,263 $ 76,408,744 $ 43,510,074 $
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 5 ye ar straight-line amortization and actual earnings
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, 2023, was 5.2 years, which was obtained by dividing the total service years of 2,444 (the sum of remaining service lifetimes of the active employees) by 470 (the total number of participants: active, inactive, and retired). 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, 2023, was 3.0 years, which was obtained by the total service years of 6,132 (the sum of remaining service lifetimes of the active employees) by 2,072 (the total number of participants: active, inactive, and retired). 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
82 Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ending June 30, 2023 (the measurement date), the City of Fontana recognized a pension expense of $21,061,913 for the Safety Plan.
As of June 30, 2024, the City of Fontana reports other amounts for the Safety Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date 18,083,424 $ - $
Differences between Expected and Actual
Experience 4,079,554 (61,772)
Changes of assumptions 8,790,089 -
Net difference between projected and actual earnings
on pensions plan investments 10,281,494 -
Total 41,234,561 $ (61,772) $
Employer contributions of $18,083,424 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, 2025.
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/(Inflows)
of Resources
2024 6,800,020 $
2025 4,769,029
2026 10,050,637
2027 1,402,221
2028 67,458
Thereafter -
Measurement Period
Ended June 30,
For the measurement period ending June 30, 2023 (the measurement date), the City of Fontana recognized a pension expense of $13,975,274 for the Miscellaneous Plan.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
83 As of June 30, 2024, the City of Fontana reports other amounts for the Miscellaneous Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to
measurement date 11,412,285 $ - $
Differences between Expected and Actual
Experience 2,014,541 (438,172)
Changes of assumptions 3,531,044 -
Net difference between projected and actual earnings
on pensions plan investments 9,109,357 -
Total 26,067,227 $ (438,172) $
Employer contributions of $11,412,285, 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, 2025.
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/(Inflows)
of Resources
2024 5,434,139 $
2025 2,245,775
2026 6,280,522
2027 256,334
2028 -
Thereafter -
Measurement Period
Ended June 30,
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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
84 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 or 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
85 The details of the fund balances as of June 30, 2024, are presented below:
Fire Traffic Community Other
Protection Housing Economic Congestion Sewer Facilities Traffic Governmental General District Authority Stimulus Grants Relie f Expansion Districts Mitigation Funds Fund Balances
Nonspendable
Deposits 44,090 $ - $ - $ - $ 78,453$ - $ - $ - $ - $ 104,048$ Inventories 512,764 - - - - - - - - 849,705 Land held for resale - - - - - - - - - 11,565,365 Loan receivables 22,555,864 - - - - - - - - - Total nonspendable 23,112,718 - - - 78,453 - - - - 12,519,118 Restricted
Community facilities districts - - - - - - - 36,446,215 - 30,423,149 Community services - - - - - - - - - 482,252 Government-access channel 1,832,888 - - - - - - - - - Housing & community development - - 87,294,141 115,399 - - - - - 3,639,541
Lighting and landscaping - - - - - - - - - 4,758,702 Municipal Services Impact - - - - - - - - - 24,663,772 Public safety - 26,071,890 - - - - - - - 21,164,093 Transportation - - - - - 6,730,091 - - - - Traffic Mitigation and Safety - - - - - - - - 23,564,929 79,573 Solid waste mitigation - - - - - - - - - 6,640,556 Highway and Road Safety and Maintenance - - - - - - - - - 8,951,799 Air qualtiy - - - - - - - - - 986,850 Total restricted 1,832,888 26,071,890 87,294,141 115,399 - 6,730,091 - 36,446,215 23,564,929 101,790,287 Committed
Contingency Reserve 33,087,836 - - - - - - - - - Operating Contingency 3,000,000 - - - - - - - - - PERS Reserve 11,095,157 - - - - - - - - - Total committed 47,182,993 - - - - - - - - - Assigned
Capital projects 1,292,256 - - - - - 1,575,590 - - 204,728,925 Retiree benefit 2,430,775 - - - - - - - - - Animal Shelter JPA 800,000 - - - - - - - - - Future projects and commitments 750,000 - - - - - - - - - GASB 31 Gain 1,155,483 - - - - - - - - - Debt Service - - - - - - - - - 11,991 Total assigned 6,428,514 - - - - - 1,575,590 - - 204,740,916 Unassigned 25,491,914 - - - (7,924,880) - - - (3,557,113) Total fund balances 104,049,027 $ 26,071,890 $ 87,294,141 $ 115,399 $ (7,846,427) $ 6,730,091 $ 1,575,590 $ 36,446,215 $ 23,564,929 $ 315,493,208 $ Special Revenue Capital Project
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, 2024, is $33,087,836 and is included in the committed fund balance in the General Fund.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
86 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, 2024, the District reported $58,812,168 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
87 B. Capital Assets
An analysis of capital assets as of June 30, 2024, follows:
Balance Balance
June 30, 2023 Increases Decreases June 30, 2024
Capital assets, not being depreciated
Land 1,122,000 $ 952,979 $ - $ 2,074,979$ Total capital assets, not being depreciated 1,122,000 952,979 - 2,074,979 Capital assets, being depreciated
Buildings and improvements 16,427,503 10,738,459 - 27,165,962 Machinery and equipment 3,045,224 77,032 - 3,122,256 Vehicles 12,340,122 741,358 - 13,081,480 Infrastructure 1,012,418 - - 1,012,418 32,825,267 11,556,849 - 44,382,116 Less accumulated depreciation for
Buildings and improvements (5,162,287) (603,881) - (5,766,168) Machinery and equipment (1,645,568) (250,617) - (1,896,185) Vehicles (8,447,440) (544,673) - (8,992,113) Infrastructure (306,428) (33,823) - (340,251) (15,561,723) (1,432,994) - (16,994,717) Total capital assets, being depreciated, net 17,263,544 10,123,855 - 27,387,399 Total Capital assets, net 18,385,544 $ 11,076,834 $ - $ 29,462,378$
Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities:
Governmental Activities
Public safety - fire protection 1,432,994 $
C. Long-Term Debt
The District does not have any outstanding debt as of June 30, 2024.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
88 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, 2024, are presented below:
Capital Project
Fire Fire Fire
Protection Protection Protection
District District CFD District Totals
Fund Balances
Restricted
Public safety 26,071,890 $ 4,913,899 $ - $ 30,985,789$ Assigned
Equipment replacement - - $37,904,324 37,904,324 Total fund balances 26,071,890 4,913,899 37,904,324 68,890,113 Special Revenue
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 $42,903,405 to the County for these services during the fiscal year ending June 30, 2024. 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, 2024, are as follows:
Salaries and benefits 35,147,960 $
Services and supplies 4,594,001
Station expenses 1,760,804
Fire Prevention services 311,290
County contract management fee 1,524,291
CPI-U Adj (434,941)
Total contract expenses 42,903,405 $
City of Fontana, California
Notes to Financial Statements
June 30, 2024
89 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, 2024, 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
90 As of June 30, 2024, there is one obligation that has been denied by the State Department of Finance that is currently being contested through the California court system. The Jurupa Hills Owner Participation Agreement (OPA) has been disallowed due to insufficient documentation to support the outstanding obligation, inability to ever repay the entire debt and the opinion that the agreement appears contrary to public policy. In July 2016, the Courts ruled in favor of the Successor Agency; the State Department of Finance has filed an appeal to the ruling.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
Cash and investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City 778,183 $
Cash and investments with fiscal agent 19,713,721
20,491,904$
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, 2024, 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, 2024, was $1,340,000. 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, 2024, was $42,676. The loan represents the reimbursement of costs incurred by the Agency for construction of water infrastructure. This loan is scheduled to be repaid over a forty-year period.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
91 Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2024, follows:
Amounts Amounts
Balance Balance Due Within Due in More
Fiduciary Activities June 30, 2023 Additions Retirements J une 30, 2024 One Year Than One Year Tax Allocation Bonds and Notes
2017 Tax Allocation Refunding Bonds 150,000,000$ - $ 11,770,000$ 138,230,000 $ 12,275,000 $ 125,955,000 $ 2018 Tax Allocation Refunding Bonds 19,235,000 - 3,480,000 15,755,000 3,655,000 12,100,000 Other Redevelopment Agency
Advances from City 26,905,578 - 1,543,885 25,361,693 1,729,151 23,632,542 Owner participation agreements 207,742,894 425,558 - 208,170,780 - 208,170,780 Total Redevelopment Agency 403,883,472$ 425,558 $ 16,793,885 $ 387,517,473 $ 17,659,151 $ 369,858,322 $ Unamortized bond premium 26,276,751 26,276,751
413,794,224$ 396,135,073 $
Tax Allocation Bonds
The Former Fontana Redevelopment Agency has issued the following Tax Allocation Bonds which are special obligations of the Successor Agency secured by pledged property tax revenues. The bonds are not a debt of the City and are not payable out of any funds or properties other than those of the Successor Agency.
2017 Tax Allocation Refunding Bonds
$208,125,000 of 2017 Tax Allocation Refunding Bonds were issued in November 2017. The bonds pay interest semi-annually at rates ranging from 1.50% to 3.00% and mature from October 2018 to October 2036. The proceeds were used to refinance various tax allocation bonds previously issued by the Former Redevelopment Agency of the City of Fontana.
Fiscal Year
Ending Principal Interest Total
2025 12,275,000$ 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 13,945,000 3,801,325 17,746,325
2030-2034 63,620,000 9,909,000 73,529,000 2035-2037 8,225,000 792,750 9,017,750 Totals 138,230,000$ 36,345,169 $ 174,575,169 $
2017 Tax Allocation Refunding Bonds
City of Fontana, California
Notes to Financial Statements
June 30, 2024
92 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.
Fiscal Year
Ending Principal Interest Total
2024 3,655,000
$ 696,375 $ 4,351,375 $
2025 3,840,000 509,000 4,349,000
2026 4,030,000 312,250 4,342,250
2027 4,230,000 105,750 4,335,750
Totals 15,755,000$ 1,623,375 $ 17,378,375 $
2018 Tax Allocation Refunding Bonds
Long-Term Payables to the City of Fontana
The advances between the City and the Former Redevelopment Agency include the following:
1. A loan between the Agency and the City which resulted from the amendment to the 1991 Junior Lien Tax Allocation Bonds.
2. Advances between the City and the Agency for administrative and other costs.
Payable Under Jurupa Hills Owner Participation Agreement
The Agency has entered into an owner participation agreement (OPA) with Ten-Ninety, Ltd., a private land development partnership (the Participating Owner), relating to the Jurupa Hills Project Area. The OPA requires, among other things, the reimbursement by the Agency to the Participating Owner of costs incurred for certain infrastructure and other improvements. Costs advanced, which accrue interest at 15.5%, are reimbursed from, and limited to: (i) the tax increment revenue generated in the Southridge Village portion of the Jurupa Hills Project Area and (ii) certain fees and assessments collected from benefited property owners.
In January 1992, the City, Agency and Participating Owner entered into two agreements in further implementation of the development of Southridge Village; a Facilitation Agreement and an Amendment No. 3 to OPA and Composite OPA. On March 31, 1992, a judgment was entered by the San Bernardino County Superior Court validating the provisions of these two agreements and declaring them to be legally binding upon the parties.
The Facilitation Agreement provides for specific allocations of costs and responsibilities between the City and Participating Owner with respect to certain public works items and for the discharge of the Participating Owner’s obligations and responsibilities with respect to the infrastructure items for Phase I, II and III of Southridge Village.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
93 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, 2024 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 $208,168,452. 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 $189,872,344 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 $35,224,588 and the debt service obligation on the bonds was $23,104,475.
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 9.
Commitments and Contingencies
At June 30, 2024, 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.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
94 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.
Note 19 - Restatements
Change within the Reporting Entity
During the fiscal year 2024, there was a change within the financial reporting entity which resulted in the Capital Reinvestment Fund and the Future Capital Projects Fund being reported as a non-major funds instead of as a major fund. Additionally, the Grants Fund and Traffic Congestion Relief Fund are being reported as major funds instead of a non-major funds. As such, beginning fund balance was reclassified between major and non-major funds. The effect of the changes to beginning fund balance are shown in the table below.
City of Fontana, California
Notes to Financial Statements
June 30, 2024
95 Correction of Error in Previously Issued Financial Statements During fiscal year 2024, the City determined that there were certain errors in amounts previously reported in the fiscal year 2023 financial statements resulting in a restatement of the beginning net position and fund balance. The corrections consist of the following:
(a) The City identified that there were assets within the City’s CIP balance that were not properly reported.
Accordingly, capital assets as of June 30, 2023, were overstated by $10,386,566, as shown in column (a) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is a decrease of $10,386,566.
(b) The City identified that there were rental revenues incorrectly recognized in the prior year of $196,985 and cash incorrectly recorded in the amount of $757,082 within the City’s Housing Authority Fund that required correction. Accordingly, fund balance as of June 30, 2023, was understated by $560,096, as shown in column (b) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is an increase of $560,096. The effect of the adjustment to the Housing Authority fund balance, as of July 1, 2023, is an increase of $560,096.
(c) The City identified that there was cash incorrectly recorded within the City’s Home Program Fund (Nonmajor Fund) that required correction. Accordingly, fund balance as of June 30, 2023 was overstated by $757,082, as shown in column (c) in the table below. The effect of the adjustment to Governmental Activities net position, as of July 1, 2023, is a decrease of $757,082. The effect of the adjustment to the Home Program fund balance, as of July 1, 2023, is a decrease of $757,082.
(d) The City identified that the City’s OPEB Trust was not recorded in accordance with GASB Statement No. 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Accordingly, the OPEB Trust Fund activities were added to the fiduciary activities as of July 1, 2023 which resulted in a restatement of $22,695,094. The prior year was missing amounts related to cash and investments.
During fiscal year 2024, the changes within the reporting entity and corrections of error resulted in adjustments to and restatement of beginning net position and fund balance as follows:
Change within
July 1, 2023, Financial
As Previously Error Error Erro r Error Reporting July 1, 2023, Reported Correction (a) Correction (b) Corre ction (c) Correction (d) Entity As restated Government-Wide
Governmental Activities 1,091,572,382 $ (10,386,566) $ 560,096 $ (757,082) $ - $ - $ 1,080,988,830$ Governmental Funds
Housing Authority 85,876,784 $ - $ 560,096$ - $ - $ - $ 86,436,880$ Grants - New major fund - - - - - (1,122,218) (1,122,218) Traffic Congestion Relief- New major fund - - - - - 14,303,461 14,303,461 Nonmajor Funds 222,830,244 - - (757,082) - 54,817,051 276,890,213 Previously major fund- Capital Reinvestment 25,960,317 - - - - (25,960,317) - Previously major fund- Future Capital
Projects 42,037,977 - - - - (42,037,977) - Fiduciary Activities - Other Post-Employment
Benefits (OPEB) Trust - $ - $ - $ - $ 22,695,094$ - $ 22,695,094$
City of Fontana, California
Notes to Financial Statements
June 30, 2024
96 If these amounts had been properly recorded in the prior year, the change in net position and change in fund balance would have been adjusted as follows for the year ended June 30, 2023:
June 30, 2023,
As Previously Error Error Error Error June 30, 2023,
Reported Correction (a) Correction (b) C orrection (c) Correction (d) As restated Government-Wide
Governmental Activities 103,042,717 $ (31,718) $ 560,096 $ (757,082) $ - $ 102,814,013$ Governmental Funds
Housing Authority (283,161) $ - $ 560,096$ - $ - $ 276,935$ Nonmajor Fund- Home Program (79,870) - - (757,082) - (836,952) Fiduciary Activities -
Other Postemployment Benefits (OPEB) Trust - $ - $ - $ - $ 1,141,595$ 1,141,595 $
Note 20 - Subsequent Events
Issuance of Special Tax Bonds
After the fiscal year ended June 30, 2024, the City facilitated the issuance of three new Special Tax Bonds under the Mello-Roos Community Facilities District (CFD) program:
1. CFD 107: On July 25, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $3,595,000 for Community Facilities District No. 107 (Highland) in order to provide financing for the public facilities development.
2. CFD 109: On October 24, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $36,220,000 for Community Facilities District No. 109 (Narra Hills) in order to provide financing for the public facilities development.
3. CFD 112: On November 21, 2024, Special Tax Bonds, Series 2024 were issued in the amount of $30,790,000 for Community Facilities District No. 112 (The Gardens Phase One) in order to provide financing for the public facilities development.
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.
This page intentionally left blank.
Required Supplementary Information
This page intentionally left blank.
97 City of Fontana, California
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Safety Plan
Last 10 Years
Measurement Period 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability
Service Cost 7,548,406 $ 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 23,827,606 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 95,168 - - - - - - - - - Difference between Expected and Actual Experience 1,753,953 (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 (15,229,563) (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 17,995,570 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 347,319,078 317,342,165 301,863,631 281,289,663 261,242,997 246,940,057 218,975,649 205,728,839 197,274,427 185,444,965 Total Pension Liability - Ending (a) 365,314,648 $ 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 14,437,567 $ 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 3,243,260 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 13,581,022 (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 (15,229,563) (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 (158,423) (144,302) (187,346) (251,361) (118,778) (696,076) (203,553) (83,139) (153,538) - Net Change in Fiduciary Net Position 15,873,863 (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 215,438,515 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 112,335,963 Plan Fiduciary Net Position - Ending (b) 231,312,378 215,438,515 231,646,538 187,544,710 178,300,928 166,987,612 153,999,655 137,868,325 136,416,889 132,722,824 Plan Net Pension Liability - Ending (a) - (b) 134,002,270 $ 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 63.32% 62.03% 73.00% 62.13% 63.39% 63.92% 62.36% 62.96% 66.31 % 67.28% 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 Plan Net Pension Liability as a Percentage of Covered Payroll 525.95% 528.03% 360.13% 493.63% 459.03% 432.71% 434.06% 383.00% 344.47% 333 .42% Notes to Schedule:
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 In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
98 City of Fontana, California
Schedule of Changes in Net Position Liability and Related Ratios During the Measurement Period – Miscellaneous Plan
Last 10 Years
Measurement Period 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liability
Service Cost 5,514,443 $ 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 18,237,572 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 336,962 - - - - - - - - - Difference between Expected and Actual Experience 3,021,811 (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 (12,392,248) (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 14,718,540 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 264,392,779 244,097,778 233,650,124 221,320,262 204,257,961 194,922,262 173,146,801 164,767,029 158,783,146 149,625,918 Total Pension Liability - Ending (a) 279,111,319 $ 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 8,953,284 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 2,532,144 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 11,902,962 (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 (12,392,248) (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 (141,076) (130,161) (170,573) (229,660) (108,649) (640,045) (188,255) (77,240) (142,590) - Net Change in Fiduciary Net Position 10,855,066 (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 191,847,509 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 105,930,458 Plan Fiduciary Net Position - Ending (b) 202,702,575 191,847,509 208,946,661 170,754,585 162,907,891 152,746,701 141,682,158 127,506,786 126,738,126 124,076,393 Plan Net Pension Liability - Ending (a) - (b) 76,408,744 $ 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 72.62% 72.56% 85.60% 73.08% 73.61% 74.78% 72.69% 73.64% 76.92 % 78.14% 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 Plan Net Pension Liability as a Percentage of Covered Payroll 223.40% 229.05% 107.88% 198.33% 194. 19% 176.38% 183.92% 161.00% 134.75% 138 .55% the total service years of 6,132 (the sum of remaining service lifetimes of the active employees) by 2,072 (the total number of participants: active, inactive, and retired).
Notes to Schedule:
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.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms. accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term marke accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
99 City of Fontana, California
Schedule of Plan Contributions – Safety Plan
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution 15,754,270$ 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$ Contributions in Relation to the
Actuarially Determined Contribution (18,083,424) (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) Contribution Deficiency (Excess) (2,329,154)$ -$ -$ -$ -$ 63,471$
-$ -$
-$
-$
Covered Payroll 22,955,821$ 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$ Contributions as a Percentage of
Covered Payroll 68.63% 56.61% 53.38% 49.67 % 45.34% 40.99% 37.72% 35.99% 32.99% 33.58% Notes to Schedule:
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.
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 The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality The probabilities of mortality are based on the 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.
100
City of Fontana, California
Schedule of Plan Contributions – Miscellaneous Plan
Last 10 Years
Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution 9,859,516$ 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 $ Contributions in Relation to the
Actuarially Determined Contribution (11,412,285) (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) Contribution Deficiency (Excess) (1,552,769)$ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered Payroll 37,365,047 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 Contributions as a Percentage of 26.39% 26. 20% 25.01% 22.49% 20.83% 19.42% 17.40% 15.47% 15.71% 13.71% Covered Payroll
Notes to Schedule:
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.
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method/Period F or 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 The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality The probabilities of mortality are based on the 2017 CalP ERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 yea r
projected mortality using 90% of Scale MP-2016 published by the Society of Actuaries.
101
City of Fontana, California
Schedule of Changes in Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30,
Last 10 Years*
Measurement Period 2023 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost 349,468 $ 795,323 $ 1,973,739 $ 1,406,780 $ 1,114,136 $ 1,109,799 $ 1,073,307 $ Interest on the total OPEB liability 2,356,699 1,494,505 1,909,977 2,328,825 2,442,178 2,377,354 2,345,864 Actual and expected experience difference 7,102,941 (4,893,445) (7,638,248) (3,610,614) (1,274,244) - - Changes in assumptions (3,191,536) (22,969,516) 4,351,220 7,714,949 (3,295,758) (1,014,856) - Benefit payments (3,034,840) (2,839,639) (3,114,653) (2,784,909) (2,653,423) (2,591,180) (2,467,790) Net change in Total OPEB liability 3,582,732 (28,412,772) (2,517,965) 5,055,031 (3,667,111) (118,883) 951,381 Total OPEB liability - beginning 40,446,261 68,859,033 71,376,998 66,321,967 69,989,078 70,107,961 69,156,580 Total OPEB liability - ending (a) 44,028,993 $ 40,446,261 $ 68,859,033 $ 71,376,998 $ 66,321,967 $ 69,989,078 $ 70,107,961 $ Plan Fiduciary Net Position
Contribution - employer 3,034,840 $ 26,652,051 $ 3,114,653 $ 2,784,909 $ 2,653,426 $ 2,591,180 $ 2,467,790 $ Net investment income 1,149,794 (2,249,921) - - - - - Benefit payments (3,034,840) (2,839,638) (3,114,653) (2,784,909) (2,653,426) (2,591,180) (2,467,790) Administrative expense (8,200) (8,992) - - - - - Net change in plan fiduciary net position 1,141,594 21,553,500 - - - - - Plan fiduciary net position - beginning 21,553,500 - Plan fiduciary net position- ending (b) 22,695,094$ 21,553,500 $ Net OPEB liability - ending (a)-(b) 21,333,899 $ 18,892,761 $ 68,859,033 $ 71,376,998 $ 66,321,967 $ 69,989,078 $ 70,107,961 $ Covered-employee payroll 58,651,222 50,801,314 49,452,985 54,870,910 52,516,604 50,986,994 50,359,691 Net OPEB liability as a percentage of covered-employee payroll 36.37% 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. * The City determined it is not practical to restate the Plan's fiduciary net position for the period 2021-2017.
102
City of Fontana, California
Other Post Employment Benefit Plan
Schedule of Investment Returns
Last 10 Years*
Measurement Period 2024 2023 2022 2021 2020 2019 2018 2017 OPEB Plan Annual Money-Weighted Rate
of Return, Net of Investment Expense 16.07% 5.34% -18.90% * * * * * * The City determined it is not practical to show information for the years 2021-2017.
Future years' information will be displayed up to 10 years as information becomes available.
Supplementary Information
This page intentionally left blank.
103
City of Fontana, California
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 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 – To 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.
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 use of pedestrians and bicyclists.
104
City of Fontana, California
Non-Major Governmental Funds
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.
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.
105
City of Fontana, California
Non-Major Governmental Funds
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 County – 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.
Capital Reinvestment – To account for discretionary infrastructure projects.
Future Capital Projects – To account for capital improvement reimbursements from the San Bernardino County Transportation Authority (SBCTA) that is used for general infrastructure improvements throughout the City.
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 Development – 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.
Capital Improvements – To account for monies expended on miscellaneous capital improvements.
106
City of Fontana, California
Non-Major Governmental Funds
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.
107
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Municipal
Traffic Prop Services
Gas Tax Safety 1B Fiscal Impact
Assets
Cash and investments 2,076,664 $ 66,996$ 140,753$ 24,536,784$ Receivables
Accounts - -
-
-
Assessme
nts - -
-
-
I
nterest 12,114 391 821 143,128 Loans - -
-
-
Allowance for dou
btful accounts - -
-
-
Leas
es - -
-
-
Pr
epaid expenses - -
-
-
Depos
its - -
-
-
Due from ot
her governments 504,384 15,683 - -
I
nventories 131,504 718,201 -
-
Land he
ld for resale - -
-
-
Ad
vances to other funds - -
-
-
Rest
ricted assets
Cash and investments with fiscal agent - -
-
-
Tota
l assets 2,724,666$ 801,271$ 141,574$ 24,679,912$ Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable 411,887$ 3,497$ -$ 16,140$ Depos
its Payable - -
-
-
Retentions p
ayable - -
-
-
Due to other fund
s - -
-
-
Due to other government
s - -
-
-
Unearned revenue
- -
-
-
Ad
vances from other funds - -
-
-
Tot
al liabilities 411,887 3,497 - 16,140
Deferr
ed Inflows of Resources
Unavailable revenue - -
-
-
Le
ases - -
-
-
Tot
al deferred inflows of resources - -
-
-
Fund
Balances
Nonspendable 131,504 718,201 -
Restr
icted 2,181,275 79,573 141,574 24,663,772 Assigned - -
-
-
Unass
igned - -
-
-
Tota
l fund balances 2,312,779 797,774 141,574 24,663,772 Total liabilities, deferred inflows of
resources and fund balances 2,724,666$ 801,271$ 141,574$ 24,679,912$ Special Revenue
108
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
Road
Solid Maintenance Crime
Waste and Home Prevention
Mitigation Rehabilitation Program Seizure
6,955,444$ 6,692,980 $ 82,021 $ 45,616 $ - - - - - - - - 40,573 39,042 730,216 266 - - 6,736,116 - - - - - - - - - - - - - - - - - 1,412,597 961,780 15,690 - - - - - - - - - - - - - - - - - 8,408,614$ 7,693,802 $ 7,564,043 $ 45,882 $ 355,461$ 977,860 $ 13,559 $ 105 $ - - - - - 86,992 - - - - - - - - 7,465,854 - - - 3,239 - - - - - 355,461 1,064,852 7,482,652 105 1,412,597 - 30 - - - - - 1,412,597 - 30 - - - - - 6,640,556 6,628,950 81,361 45,777 - - - - - - - - 6,640,556 6,628,950 81,361 45,777 8,408,614$ 7,693,802 $ 7,564,043 $ 45,882 $ Special Revenue
109
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
Housing and
Community
State Federal Development
Seizure Seizure TDA / Article 3 Block Grant
579,043$ 12,193,054 $ - $ - $ - 4,100 - - - - - - 3,381 71,192 - - - - - 1,213,022 - - - - - - - - - - - - - 4,147 - - - - 256,224 1,248,786 - - - - - - - - - - - - - - 3,168 904,209 582,424$ 12,272,493 $ 259,392 $ 3,366,017 $ 2,002$ 261,261 $ 63,725 $ 356,651 $ - - - 44,042 - - 3,168 5,481 - - 192,500 777,489 - - - 2,073,189 - - - 182 - - - - 2,002 261,261 259,393 3,257,034 - - 67,689 160,031 - - - - - - 67,689 160,031 - 4,147 - - 580,422 12,007,085 - - - - - - - - (67,690) (51,048) 580,422 12,011,232 (67,690) (51,048) 582,424$ 12,272,493 $ 259,392 $ 3,366,017 $ Special Revenue
110
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Federal
Law AB 3229 Air Quality
Enforcement State COPS Office of Management
Block Grant Program Traffic Safety District
-$ 1,131,607$ 2,838,387 $ 1,426,242 $ - - 89,786 - - - - - - 6,607 16,557 8,320 - - - - - - - - - - - - - - - - - - - - - - - 71,947 - - - - - - - - - - - - - - - 19,895 -$ 1,138,214$ 2,944,730 $ 1,526,404 $ -$ 31,059$ 2,669 $ 447,712 $ - - - - - - - 19,895 - - - - - - - - - 1,002,096 - - - - - - - 1,033,155 2,669 467,607 - - 11,904 71,947 - - - - - - 11,904 71,947 - - - - - 105,059 2,930,157 986,850 - - - - - - - - - 105,059 2,930,157 986,850 -$ 1,138,214$ 2,944,730 $ 1,526,404 $ Special Revenue
111
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
Down Community Fontana
Payment Services ASES Community
Assistance Reimbursements ELO-P Foundation
11,664$ - $ 163,864$ 479,455 $ - - - - - - - - 68 - - 2,797 - - - - - - - - - - - - - - - - - - - - - 2,142,908 1,954,923 - - - - - - - - - - - - - - - - - 11,732$ 2,142,908 $ 2,118,787 $ 482,252 $ -$ 15,061$ 614,436 $ - $ - - - - - - - - - 1,774,149 1,504,350 - - - - - - 271,076 - - - - - - - 2,060,286 2,118,786 - - 1,169,610 1,596,712 - - - - - - 1,169,610 1,596,712 - - - - - 11,732 - - 482,252 - - - - - (1,086,988) (1,596,711) - 11,732 (1,086,988) (1,596,711) 482,252 11,732$ 2,142,908 $ 2,118,787 $ 482,252 $ Special Revenue
112
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Permanent Fire
Housing Local Protection Landscape
Authority Housing District Maintenance
AB 1486 Allocation CFD Districts
3,525,881$ - $ 4,751,349$ 5,430,138 $ - - - - - - - 59,382 20,567 - 27,716 31,675 - - - - - - - (13,449) - - - - - - - - - - - - - 47,316 134,834 6,552 - - - - - - - - - - - - - 23,890 - - 3,546,448$ 71,206 $ 4,913,899 $ 5,514,298 $ -$ 6,298 $ - $ 818,509$ - 3,227 - - - - - - - 41,018 - - - 20,663 - - - - - - - - - - - 71,206 - 818,509 - 47,316 - 11,775 - - - - - 47,316 - 11,775 - - - - 3,546,448 - 4,913,899 4,684,014 - - - - - (47,316) - - 3,546,448 (47,316) 4,913,899 4,684,014 3,546,448$ 71,206 $ 4,913,899 $ 5,514,298 $ Special Revenue
113
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
Lighting
District #3
Hunter's Opiod ARPA
Ridge AB 2928 Settlement County
73,967$ 164,699 $ 353,724 $ - $ - - - - 357 - - - 431 962 2,063 - - - - - - - - - - - - - - - - - - - - - - - 60,246 707,359 - - - - - - - - - - - - - - - - 74,755$ 165,661 $ 416,033 $ 707,359 $ -$ - $ - $ 13,457$ - - - - - - - 18,904 - - - 674,999 - - - - - - - - - - - - - - - 707,360 67 - - 707,359 - - - - 67 - - 707,359 - - - - 74,688 165,661 416,033
- - - - - - - (707,360) 74,688 165,661 416,033 (707,360) 74,755$ 165,661 $ 416,033 $ 707,359 $ Special Revenue
114
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Special
Revenue Debt Service
Community Future
Facilities General Capital Capital
Districts Debt Service Reinvestment Projects
31,446,791$ 9,402 $ 45,666,171$ 9,401,881 $ - - 32,897 - 360,930 - - - 183,441 55 265,879 54,843 - - 225,000 - (88,346) - - - - - 138,408 - - - 1,200 - 99,901 - -
11,171 - - - - - - - - - 5,650,178 4,379,694 - - - 28,408,911 - 2,535 - - 32,013,888$ 11,992 $ 51,979,733 $ 42,245,329 $ 1,377,303$ - $ 1,872,088$ - $ - - 1,000 - 5,363 - 104,458 21,757 15,736 - - - - - - - - - - - - - - - 1,398,402 - 1,977,546 21,757 92,436 - 11,306 - - - 134,882 - 92,436 - 146,188 - 99,901 - 5,650,178 4,379,694 30,423,149 - - - - 11,992 44,205,821 37,843,878 - - - 30,523,050 11,992 49,855,999 42,223,572 32,013,888$ 11,992 $ 51,979,733 $ 42,245,329 $ Capital Projects
115
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Upper
San Sevaine Etiwanda
Storm Flood Flood Control Park
Drain Control Development Development
23,102,479$ 2,587,674 $ 47,613 $ 17,238,546 $ - - - - - - - - 134,762 15,094 278 100,556 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23,237,241$ 2,602,768 $ 47,891 $ 17,339,102 $ 722,261$ - $ - $ 686,791$ - - - - 21,668 - - 26,663 - - - - - - - - - - - - - - - - 743,929 - - 713,454 - - - - - - - - - - - - - - - - - - - - 22,493,312 2,602,768 47,891 16,625,648 - - - - 22,493,312 2,602,768 47,891 16,625,648 23,237,241$ 2,602,768 $ 47,891 $ 17,339,102 $ Capital Projects
116
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
Library
Landscape Capital Police Capital
Improvements Improvement Facility Improvements
3,642,198$ 1,364,690 $ 4,206,075 $ 9,348,688 $ - - - - - - - - 21,246 7,961 24,535 54,533 - - - - - - - - - - - - - - - - - - - - - - - 14,737 - - - - - - - 1,535,493 - - - - - - - - 3,663,444$ 1,372,651 $ 4,230,610 $ 10,953,451 $ 926,676$ 867 $ 46,780 $ 13,709 $ - - - - 180,326 - 225 113 - - - - - - - - - - - - - - - 1,717,369 1,107,002 867 47,005 1,731,191 - - - - - - - - - - - - - - - 1,535,493 - - - - 2,556,442 1,371,784 4,183,605 7,686,767 - - - - 2,556,442 1,371,784 4,183,605 9,222,260 3,663,444$ 1,372,651 $ 4,230,610 $ 10,953,451 $ Capital Projects
117
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows o
f
resources and fund balances
General Affordable
Government Underground Fire Housing
Improvement Utilities Assessment Trust
13,512,253$ 847,451$ 741,622$ 7,534,182$
- - - -
- - - -
78,820 4,943 4,326 180,113
- - - 1,000,000
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - 71,709
13,591,073$ 852,394$ 745,948$ 8,786,004$
23,693$ -$ 3,230$ 37,722$
- - - 709
- - - -
- - - -
- - - -
- - - -
- - - -
23,693 -
3,230
38,431
- - - 136,165
- - - -
- - - 136,165
- - - -
- - - -
13,567,380 852,394 742,718 8,611,408
- - - -
13,567,380 852,394 742,718 8,611,408
13,591,073$ 852,394$ 745,948$ 8,786,004$
Capital Projects
118
City of Fontana, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Assets
Cash and investments
Receivables
Accounts
Assessments
Interest
Loans
Allowance for doubtful accounts
Leases
Prepaid expenses
Deposits
Due from other governments
Inventories
Land held for resale
Advances to other funds
Restricted assets
Cash and investments with fiscal agent
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities
Accounts payable
Deposits Payable
Retentions payable
Due to other funds
Due to other governments
Unearned revenue
Advances from other funds
Total liabilities
Deferred Inflows of Resources
Unavailable revenue
Leases
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Total
Fire Fontana Other
Protection Housing Governmental
District Authority Funds
28,138,776$ 1,209,065 $ 273,765,889 $
- 31,557 158,340 - - 420,669 164,139 111,828 2,566,239
- 1,824,543 10,998,681 - - (101,795) - 6,530,706 6,669,114
- - 1,200 - - 104,048 - - 9,567,137 - - 849,705 - - 11,565,365 - - 28,408,911 13,727,487 28,361 14,781,254
42,030,402$ 9,736,060 $ 359,754,757 $
3,373,276$ - $ 13,495,745$
- 1,276 50,254 752,802 - 1,247,815 - - 4,980,241 - - 9,559,706 - - 1,276,593 - - 1,717,369 4,126,078 1,276 32,327,723
- 107,335 5,604,279 - 6,194,665 6,329,547
- 6,302,000 11,933,826 - - 12,519,118 - - 101,790,287 37,904,324 3,432,784 204,740,916
- - (3,557,113) 37,904,324 3,432,784 315,493,208
42,030,402$ 9,736,060 $ 359,754,757 $
Capital Projects
119
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Municipal
Traffic Prop Services
Gas Tax Safety 1B Fiscal Impact
Revenues
Taxes - $ - $ - $ - $ Licenses and permits - - - - Intergovernmental 5,821,989 - - - Charges for services - - - 2,276,036 Fines and forfeitures - 69,290 - - Special assessments - - - - Investment earnings (loss) 99,148 2,250 5,838 973,361 Other revenue - - - - Total revenues 5,921,137 71,540 5,838 3,249,397 Expenditures
Current
General government
City council and commissions - - - - City admininstration - - - - Management services - - - - Information technology - - - - Human resources - - - - Public safety
Police - - - - Fire - - - - Public works / Engineering 5,094,218 65,379 - - Community development - - - - Community services - - - - Debt service
Principal - - - - Interest - - - - Total expenditures 5,094,218 65,379 - - Excess (deficiency) of revenues
over (under) expenditures 826,919 6,161 5,838 3,249,397 Other Financing Sources (Uses)
Transfers in - - - - Transfers out (440,440) - - (948,550) Sale of capital assets - - - - Total other financing sources (uses) (440,440) - - (948,550) Net Change in Fund Balance 386,479 6,161 5,838 2,300,847 Fund Balances, Beginning of Year, as Previously
Presented 1,926,300 791,613 135,736 22,362,925 Adjustments - - - - Fund Balances, Beginning of Year, as Adjusted 1,926,300 791,613 135,736 22,362,925 Fund Balances, End of Fiscal Year 2,312,779 $ 797,774 $ 141,574 $ 24,663,772 $ Special Revenue
120
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Road
Solid Maintenance Crime
Waste and Home Prevention
Mitigation Rehabilita tion Program Seizure
-$ - $ - $ - $ - - - - - 5,518,650 138,103 6,469 5,149,665 - - - - - - - - - - - 231,529 282,335 - 2,303 - - - - 5,381,194 5,800,985 138,103 8,772 - - - - - - - - - - - - - - - - - - - - - - - 19,022 - - - - 1,710,792 5,050,217 - - 1,471,629 - 39,665 - 47,297 - - - - - - - - - - - 3,229,718 5,050,217 39,665 19,022 2,151,476 750,768 98,438 (10,250) - - - - (320,230) - - - - - - - (320,230) - - - 1,831,246 750,768 98,438 (10,250) 4,809,310 5,878,182 740,005 56,027 - - (757,082) - 4,809,310 5,878,182 (17,077) 56,027 6,640,556$ 6,628,950 $ 81,361 $ 45,777 $ Special Revenue
121
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Housing and
Community
State Federal Development
Seizure Seizure TDA / Article 3 Block Grant
-$ - $ - $ - $ - - - - 36,656 5,163,011 188,535 4,755,009 - - - - - - - - - - - - 29,678 349,556 - - - - - 317,024 66,334 5,512,567 188,535 5,072,033 - - - - - - - - - - - - - - - - - - - - 63,021 4,758,988 - 249,999 - - - - - - 199,935 - - - - 3,983,133 - - - - - - - - - - - - 63,021 4,758,988 199,935 4,233,132 3,313 753,579 (11,400) 838,901 - - - 4,964 - - - (91,816) - - - - - - - (86,852) 3,313 753,579 (11,400) 752,049 577,109 11,257,653 (56,290) (803,097) - - - - 577,109 11,257,653 (56,290) (803,097) 580,422$ 12,011,232 $ (67,690) $ (51,048) $ Special Revenue
122
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Federal
Law AB 3229 Air Quality
Enforcement State COPS Office o f Management
Block Grant Program Tr affic Safety District
-$ - $ 459,022$ - $ - - - - 31,541 342,707 - 215,708 - - - - - - - - - - - - - 28,546 116,005 69,988 - - - - 31,541 371,253 575,027 285,696 - - - - - - - 3,000 - - - - - - - - - - - 12,078 30,326 371,253 254,912 - - - - - - - - 571,787 - - - - - - - - - - - - - - - - 30,326 371,253 254,912 586,865 1,215 - 320,115 (301,169) - - - - - - (124,100) (112,566) - - - - - - (124,100) (112,566) 1,215 - 196,015 (413,735) (1,215) 105,059 2,734,142 1,400,585 - - - - (1,215) 105,059 2,734,142 1,400,585 -$ 105,059$ 2,930,157 $ 986,850 $ Special Revenue
123
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Down Community Fontana
Payment Services ASES Community
As
sistance Reimbursements ELO-P Foundation
-$ -$ -$ -$
-
-
- -
- 5,340,772 2,390,696 -
- - - -
- - - -
- - - -
326 - - 20,619
- - - 10,000
326 5,340,772 2,390,696 30,619
- - - -
- - - 30,084
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
-
4,712,380
2,614,316 -
- - - -
- - - -
- 4,712,380 2,614,316 30,084
326 628,392 (223,620) 535
-
22,328
538,327 -
- (570,857)
(372,300) (6,620)
- - - -
-
(548,529)
166,027 (6,620)
326 79,863 (57,593) (6,085)
11,406 (1,166,851) (1,539,118) 488,337
- - - -
11,406 (1,166,851) (1,539,118) 488,337
11,732$ (1,086,988)$ (1,596,711)$ 482,252$
Special Revenue
124
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Permanent Fire
Housing Local Protection Landscape
Authority Housing District Maintenance
AB 1486 Allocation CFD Districts
-$ - $ - $ 3,434 $ - - 278,663 - - 1,768,014 - - - - - - - - - - - - - 4,340,928 146,248 - 193,311 204,335 - 9,445 - 6,552 146,248 1,777,459 471,974 4,555,249 - - - - - 896,157 - - - - - - - - - - - - - - - - - - - - - - - - - 6,045,741 - 39,367 -
- - - - - - - - - - - - - 935,524 - 6,045,741 146,248 841,935 471,974 (1,490,492) - - - 3,103,855 - - (33,440) (918,940) - - - - - - (33,440) 2,184,915 146,248 841,935 438,534 694,423 3,400,200 (889,251) 4,475,365 3,989,591 - - - - 3,400,200 (889,251) 4,475,365 3,989,591 3,546,448$ (47,316) $ 4,913,899 $ 4,684,014 $ Special Revenue
125
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Lighting
District #3
Hunter's Opiod ARPA
Ridge AB 2928 Settlement County
27$ - $ - $ - $ - - - - - 56,582 102,732 1,123,324 - - - - - - - - 35,535 - - - 2,311 4,182 9,392 - - - - - 37,873 60,764 112,124 1,123,324 - - - - - - - - - - - - - - - - - - - - - 47,899 - - - - - - - - - 1,699,185 - - - - - - - - - - - - - - - - - 47,899 - 1,699,185 37,873 12,865 112,124 (575,861) - - - - (7,000) - - - - - - - (7,000) - - - 30,873 12,865 112,124 (575,861) 43,815 152,796 303,909 (131,499) - - - - 43,815 152,796 303,909 (131,499) 74,688$ 165,661 $ 416,033 $ (707,360) $ Special Revenue
126
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Debt Service
Formerly Non-
Community Formerly Non- major Fund
Facilities major Fund Traffic Congestion General
Districts Grants Relief Debt Service
81,687$ - $
- -
- -
46,768 -
- -
14,851,483 -
1,339,890 17,635
- -
16,319,828 17,635
- -
- -
- 3,574
- -
- -
- -
- -
10,797,516 -
- -
- -
- 1,830,000
- 2,164,025
10,797,516 3,997,599
5,522,312 (3,979,964)
11,616 3,994,025
(6,796,520) -
- -
(6,784,904) 3,994,025
(1,262,592) 14,061
31,785,642 (1,122,218) 14,303,461 (2,069) - 1,122,218 (14,303,461) - 31,785,642 (2,069)
30,523,050$ 11,992 $
Special Revenue
127
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Future San Sevaine
Capital Capital Storm Flood
Reinvestment Projects Drain Control
-$ -$ -$ -$
-
-
3,085,654
600,401
- - - -
- - - -
- - - -
- - - -
1,210,077 337,015 981,037 88,641
228,823 - - -
1,438,900 337,015 4,066,691 689,042
200,109 - - -
23,471 - - -
- - - -
51,760 - - -
- - - -
- - - -
- - - -
7,907,545 -
2,233,567
403,905
22,858 -
- -
- -
- -
- - - -
- - - -
8,205,743 - 2,233,567 403,905
(6,766,843) 337,015 1,833,124 285,137
27,706,599 - - 394,464
- (151,420)
(98,460) (8,320)
2,955,926 - - -
30,662,525 (151,420) (98,460) 386,144
23,895,682 185,595 1,734,664 671,281
- - 20,758,648 1,931,487
25,960,317 42,037,977 - -
25,960,317 42,037,977 20,758,648 1,931,487
49,855,999$ 42,223,572$ 22,493,312$ 2,602,768$ Capital Projects
128
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Upper
Etiwanda Library
Flood Control Park Landscape Capital
Development Development Improvements Improvement
-$ - $ - $ - $ - 4,189,942 - 147,665 - - - - - - 314,056 - - - - - - - - - 1,976 826,423 225,381 47,927 - - - - 1,976 5,016,365 539,437 195,592 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 799,831 3,798,152 - - - - 366,911 - - - - - - - - - - - - - 799,831 3,798,152 366,911 1,976 4,216,534 (3,258,715) (171,319) - 600,000 - 366,912 - (8,510,330) (11,720) (6,440) - - - - - (7,910,330) (11,720) 360,472 1,976 (3,693,796) (3,270,435) 189,153 45,915 20,319,444 5,826,877 1,182,631 - - - - 45,915 20,319,444 5,826,877 1,182,631 47,891$ 16,625,648 $ 2,556,442 $ 1,371,784 $ Capital Projects
129
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
General
Police Capital Government Underground
Facility Improvements Improvement Utilities
-$ - $ - $ - $ 636,505 - - - - - - - - - 604,903 542,592 - - - - - - - - 162,230 210,842 537,019 17,086 - 929,000 - - 798,735 1,139,842 1,141,922 559,678 - - - - - - - - - - - - - - - - - - - - 289,078 - - - - - - - - 8,642 - - 524,412 2,795,339 561,257 - - - - - - - - - - - - - 813,490 2,803,981 561,257 - (14,755) (1,664,139) 580,665 559,678 524,413 9,386,360 541,458 - (38,880) (530,000) - - - 1,151,095 - - 485,533 10,007,455 541,458 - 470,778 8,343,316 1,122,123 559,678 3,712,827 878,944 12,445,257 292,716 - - - - 3,712,827 878,944 12,445,257 292,716 4,183,605$ 9,222,260 $ 13,567,380 $ 852,394 $ Capital Projects
130
City of Fontana, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings (loss)
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City admininstration
Management services
Information technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Fund Balances, Beginning of Year, as Previously
Presented
Adjustments
Fund Balances, Beginning of Year, as Adjusted
Fund Balances, End of Fiscal Year
Total
Affordable Fire Fontana Other
Fire Housing Protection Housing Governmental
Assessment Trust District Authority Funds
-$ - $ - $ - $ 544,170$ 390,047 1,374,184 - - 10,703,061 - - - - 33,000,498 - - - - 8,934,020 - - - - 69,290 - - - - 19,227,946 25,857 250,896 1,795,667 390,647 11,237,507 - 115,538 - 17,967 1,634,349 415,904 1,740,618 1,795,667 408,614 85,350,841 - - - - 200,109 - - - - 952,712 - - - 19,853 23,427 - - - - 51,760 - - - - 12,078 - - - - 6,084,498 - - 1,262 - 1,262 - - 9,267,298 - 55,653,710 - 1,440,244 - 18,200 11,263,015 - - - - 7,373,993 - - - - 1,830,000 - - - - 2,164,025 - 1,440,244 9,268,560 38,053 85,610,589 415,904 300,374 (7,472,893) 370,561 (259,748) - 962,170 7,224,150 - 55,381,641 (279,570) (3,050) (224,150) (20,200) (20,625,919) - - - - 4,107,021 (279,570) 959,120 7,000,000 (20,200) 38,862,743 136,334 1,259,494 (472,893) 350,361 38,602,995 606,384 7,351,914 38,377,217 3,082,423 222,830,244 - - - - 54,059,969 606,384 7,351,914 38,377,217 3,082,423 276,890,213 742,718$ 8,611,408 $ 37,904,324 $ 3,432,784 $ 315,493,208 $ Capital Projects
131
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) Revenues
Taxes - $ - $ - $ - $ - $ - $ - $ - $ Licenses and permits - - - - - - - - Intergovernmental 6,042,980 6,042,980 5,821,989 (220,991) - - - - Charges for services - - - - - - - - Fines and forfeitures - - - - 45,000 45,000 69,290 24,290 Special assessments - - - - - - - - Investment earnings - - 99,148 99,148 - - 2,250 2,250 Contribution from property owners - - - - - - - - Other revenue - - - - - - - - Total revenues 6,042,980 6,042,980 5,921,137 (121,843) 45,000 45,000 71,540 26,540 Expenditures
Current
General government
City council and commissions - - - - - - City administration - - - - - - - - Management services - - - - - - - - Information Technology - - - - - - - - Human resources - - - - - - - - Public safety
Police - - - - - - - - Fire - - - - - - - - Public works / Engineering 6,111,600 5,744,240 5,094,218 650,022 44,190 44,190 65,379 (21,189) Community development 10,700 10,700 - 10,700 - - - - Community services - - - - - - - - Debt service - -
Principal - - - - - - - - Interest - - - - - - - - Payment to refunded bond escrow agent - - - - - - - - Total expenditures 6,122,300 5,754,940 5,094,218 660,722 44,190 44,190 65,379 (21,189) Excess (deficiency) of revenues
over (under) expenditures (79,320) 288,040 826,919 538,879 810 810 6,161 5,351 Other Financing Sources (Uses)
Transfers in - - - - - - - - Transfers out (450,220) (244,440) (440,440) (196,000) - - - - Sale of capital assets - - - - - - - - Total other financing sources (uses) (450,220) (244,440) (440,440) (196,000) - - - - Net Change in Fund Balances (529,540) 43,600 386,479 342,879 810 810 6,161 5,351 Fund Balances - Beginning, as restated 1,926,300 1,926,300 1,926,300 - 791,613 791,613 791,613 - Fund Balances - Ending 1,396,760 $ 1,969,900 $ 2,312,779 $ 342,879 $ 792,423 $ 792,423 $ 797,774 $ 5,351 $ Special Revenue
Gas Tax Traffic Safety
132
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - 1,250,000 1,250,000 2,276,036 1,026,036 3,000,000 3,000,000 5,149,665 2,149,665 - - - - - - - - - - - - - - - - - - 973,361 973,361 - - 231,529 231,529 - - - - - - - - - - - - - - - - 1,250,000 1,250,000 3,249,397 1,999,397 3,000,000 3,000,000 5,381,194 2,381,194 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,424,090 4,350,579 1,710,792 2,639,787 - - - - 1,694,170 1,737,659 1,471,629 266,030 - - - - 53,480 53,480 47,297 6,183 - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,171,740 6,141,718 3,229,718 2,912,000 1,250,000 1,250,000 3,249,397 1,999,397 (171,740) (3,141,718) 2,151,476 5,293,194 - - - - - - - - (948,550) (948,550) (948,550) - - - (320,230) (320,230) - - - - - - - - (948,550) (948,550) (948,550) - - - (320,230) (320,230) 301,450 301,450 2,300,847 1,999,397 (171,740) (3,141,718) 1,831,246 4,972,964 22,362,925 22,362,925 22,362,925 - 4,809,310 4,809,310 4,809,310 - 22,664,375$ 22,664,375 $ 24,663,772 $ 1,999,397 $ 4,637,570 $ 1,667,592 $ 6,640,556 $ 4,972,964 $ Special Revenue
Municipal Services Fiscal Impact Solid Waste Mitigation
133
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
-
- - - -
- -
10,521,380 5,235,830 5,518,650 282,820 808,540 6,387,367 138,103 (6,249,264) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - 282,335 282,335 - - - - - - - - - - - -
- - - - - - - -
10,521,380 5,235,830 5,800,985 565,155 808,540 6,387,367 138,103 (6,249,264) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
5,255,880 11,088,106 5,050,217 6,037,889 - - - - - - - - 923,600 6,153,994 39,665 6,114,329 - - - - - - - -
- -
- - - - - - - -
- - - - - - - -
- - - - - - - -
5,255,880 11,088,106 5,050,217 6,037,889 923,600 6,153,994 39,665 6,114,329 5,265,500 (5,852,276) 750,768 6,603,044 (115,060) 233,373 98,438 (134,935) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
5,265,500 (5,852,276) 750,768 6,603,044 (115,060) 233,373 98,438 (134,935) 5,878,182 5,878,182 5,878,182 - (17,077) (17,077) (17,077) - 11,143,682$ 25,906$ 6,628,950$ 6,603,044$ (132,137)$ 216,296$ 81,361$ (134,935)$ Special Revenue
Road Maintenance and Rehabilitation Home Program
134
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - 10,000 7,000 6,469 (531) 75,000 36,660 36,656 (4) - - - - - - - - - - - - - - - - - - - - - - - - - - 2,303 2,303 3,000 3,000 29,678 26,678 - - - - - - - - - - - - - - - - 10,000 7,000 8,772 1,772 78,000 39,660 66,334 26,674 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 33,300 33,300 19,022 14,278 61,940 66,940 63,021 3,919 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 33,300 33,300 19,022 14,278 61,940 66,940 63,021 3,919 (23,300) (26,300) (10,250) 16,050 16,060 (27,280) 3,313 30,593 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (23,300) (26,300) (10,250) 16,050 16,060 (27,280) 3,313 30,593 56,027 56,027 56,027 - 577,109 577,109 577,109 - 32,727$ 29,727 $ 45,777 $ 16,050 $ 593,169 $ 549,829 $ 580,422 $ 30,593 $ Special Revenue
Crime Prevention Seizure State Seizures
135
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - 1,500,000 5,175,000 5,163,011 (11,989) 2,154,320 7,393,889 4,755,009 (2,638,880) - - - - - - - - - - - - - - - - - - - - - - - - 50,000 50,000 349,556 299,556 - - - - - - - - - - - - 20,000 - - - - - 317,024 317,024 1,570,000 5,225,000 5,512,567 287,567 2,154,320 7,393,889 5,072,033 (2,321,856) - - - - - - - - - - - - - - - - - - - - - 433,611 - 433,611 - - - - - - - - - - - - 2,339,980 5,530,686 4,758,988 771,698 302,640 250,000 249,999 1 - - - - - - - - - - - - - 56,738 - 56,738 - - - - 2,245,740 5,790,888 3,983,133 1,807,755 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 2,339,980 5,964,297 4,758,988 1,205,309 2,548,380 6,097,626 4,233,132 1,864,494 (769,980) (739,297) 753,579 1,492,876 (394,060) 1,296,263 838,901 (457,362) - - - - - - 4,964 4,964 - - - - (91,800) (91,800) (91,816) (16) - - - - - - - - - - - - (91,800) (91,800) (86,852) 4,948 (769,980) (739,297) 753,579 1,492,876 (485,860) 1,204,463 752,049 (452,414) 11,257,653 11,257,653 11,257,653 - (803,097) (803,097) (803,097) - 10,487,673$ 10,518,356 $ 12,011,232 $ 1,492,876 $ (1,288,957) $ 401,366 $ (51,048) $ (452,414) $ Special Revenue
Federal Seizures Housing and Community Development Block Grant
136
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
- - - - - - -
27,000 31,541 31,541 - 300,000 615,700 342,707 (272,993) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - 28,546 28,546
- - - - - - - -
- - - - - - - -
27,000 31,541 31,541 - 300,000 615,700 371,253 (244,447) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
28,440 30,328 30,326 2 460,890 562,565 371,253 191,312 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- -
- - - - - - - -
- - - - - - - -
- - - - - - - -
28,440 30,328 30,326 2 460,890 562,565 371,253 191,312 (1,440) 1,213 1,215 2 (160,890) 53,135 - (53,135)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
(1,440) 1,213 1,215 2 (160,890) 53,135 - (53,135)
(1,215) (1,215) (1,215) - 105,059 105,059 105,059 - (2,655)$ (2)$ -$ 2$
(55,831)$ 158,194$ 105,059$ (53,135)$
Special Revenue
AB 3229 State COPS ProgramFederal Law Enforcement Block Grant
137
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) 400,000$ 400,000 $ 459,022 $ 59,022 $ - $ - $ - $ - $ - - - - - - - - - - - - 280,000 280,000 215,708 (64,292) - - - - - - - - - - - - - - - - - - - - - - - - - - 116,005 116,005 - - 69,988 69,988 - - - - - - - - - - - - - - - - 400,000 400,000 575,027 175,027 280,000 280,000 285,696 5,696 - - - - - - - - - 6,000 3,000 3,000 - - - - - - - - - - - - - - - - - - - - - 16,000 12,078 3,922 245,500 513,647 254,912 258,735 - - - - - - - - - - - - - - - - 26,500 1,287,803 571,787 716,016 - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 245,500 513,647 254,912 258,735 26,500 1,309,803 586,865 722,938 154,500 (113,647) 320,115 433,762 253,500 (1,029,803) (301,169) 728,634 - - - - - - - - - - (124,100) (124,100) (12,090) (12,090) (112,566) (100,476) - - - - - - - - - - (124,100) (124,100) (12,090) (12,090) (112,566) (100,476) 154,500 (113,647) 196,015 309,662 241,410 (1,041,893) (413,735) 628,158 2,734,142 2,734,142 2,734,142 - 1,400,585 1,400,585 1,400,585 - -
2,888,642$ 2,620,495 $ 2,930,157 $ 309,662 $ 1,641,995 $ 358,692 $ 986,850 $ 628,158 $ Special Revenue
Office of Traffic Safety Air Quality Management District
138
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
- - - - - - -
- - - - 4,407,400 5,488,690 5,340,772 (147,918) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - 326 326 - - - -
- - - - - - - -
- - - - - - - -
- - 326 326 4,407,400 5,488,690 5,340,772 (147,918) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 3,843,840 5,116,390 4,712,380 404,010 - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 3,843,840 5,116,390 4,712,380 404,010 - - 326 326 563,560 372,300 628,392 256,092 - - - - -
220,885 22,328 (198,557)
- - - - (372,300) (372,300) (570,857) (198,557) - - - - - - - -
- - - - (372,300) (151,415) (548,529) (397,114) - - 326 326 191,260 220,885 79,863 (141,022) 11,406 11,406 11,406 - (1,166,851)
(1,166,851) (1,166,851) -
11,406$ 11,406$ 11,732$ 326$ (975,591)$ (945,966)$ (1,086,988)$ (141,022)$ Special Revenue
Community Services ReimbursementsDown Payment Assistance 139
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
- - - - - - -
29,731,200 29,731,200 2,390,696 (27,340,504) - - - - - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - 20,619 20,619
- - - - - - - -
- - - - - 10,000
10,000 -
29,731,200 29,731,200 2,390,696 (27,340,504) - 10,000 30,619 20,619
- - - -
- - - - 7,000 35,000 30,084 4,916
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
27,218,250 27,218,250 2,614,316 24,603,934 - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
27,218,250 27,218,250 2,614,316 24,603,934 7,000 35,000 30,084 4,916 2,512,950 2,512,950 (223,620) (2,736,570) (7,000) (25,000) 535 25,535 -
141,214 538,327 397,113 - - - -
(372,300) (372,300) (372,300) - (6,620)
(6,620) (6,620) -
- - - - - - - -
(372,300) (231,086) 166,027 397,113 (6,620) (6,620) (6,620) - 2,140,650 2,281,864 (57,593) (2,339,457) (13,620) (31,620) (6,085) 25,535 (1,539,118) (1,539,118) (1,539,118) - 488,337 488,337 488,337 - 601,532$ 742,746$ (1,596,711)$ (2,339,457)$ 474,717$ 456,717$ 482,252$ 25,535$ Special Revenue
ASES ELO-P Fontana Community Foundation
140
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - 1,500,000 4,685,857 1,768,014 (2,917,843) - - - - - - - - - - - - - - - - - - - - - - - - - (80,000) 146,248 226,248 - - - - - - - - - - - - - - - - - - 9,445 9,445 - (80,000) 146,248 226,248 1,500,000 4,685,857 1,777,459 (2,908,398) - - - - - - - - 1,326,760 2,853,950 896,157 1,957,793 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119,858 - 119,858 - - - - - - - - - - - - - - - - - - - - 7,000 823,045 39,367 783,678 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,333,760 3,796,853 935,524 2,861,329 - (80,000) 146,248 226,248 166,240 889,004 841,935 (47,069) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (80,000) 146,248 226,248 166,240 889,004 841,935 (47,069) 3,400,200 3,400,200 3,400,200 - (889,251) (889,251) (889,251) - 3,400,200$ 3,320,200 $ 3,546,448 $ 226,248 $ (723,011) $ (247) $ (47,316)$ (47,069) $ Special Revenue
Permanent Local Housing AllocationHousing Authority AB 1486
141
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ 2,750$ 2,750$ 3,434$ 684$ 235,000 235,000 278,663 43,663 - - - - - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 3,738,330 3,738,330 4,340,928 602,598 - - 193,311 193,311 - - 204,335 204,335 - - - - - - - -
- - - - - - 6,552 6,552
235,000 235,000 471,974 236,974 3,741,080 3,741,080 4,555,249 814,169 - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
27,500 403,764 -
403,764 - - - -
- - -
- 4,551,000 6,119,581 6,045,741 73,840
- - -
- - - - -
- - -
- - - - -
-
- -
- - - - - - - -
- - - - - - - -
- - - - - - - -
27,500 403,764 - 403,764 4,551,000 6,119,581 6,045,741 73,840 207,500 (168,764) 471,974 640,738 (809,920) (2,378,501) (1,490,492) 888,009 - - - - 1,908,920 2,975,956 3,103,855 127,899 (33,440) (33,440) (33,440) - (918,940) (918,940) (918,940) - - - - - - - - -
(33,440) (33,440) (33,440) - 989,980 2,057,016 2,184,915 127,899 174,060 (202,204) 438,534 640,738 180,060 (321,485) 694,423 1,015,908 4,475,365 4,475,365 4,475,365 - 3,989,591
3,989,591 3,989,591 -
4,649,425$ 4,273,161$ 4,913,899$ 640,738$ 4,169,651$ 3,668,106$ 4,684,014$ 1,015,908$ Special Revenue
Fire Protection District CFD Landscape Maintenance Districts
142
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) 500$ 500 $ 27 $ (473) $ - $ - $ - $ - $ - - - - - - - - - - - - - 10,000 56,582 46,582 - - - - - - - - - - - - - - - - 877,210 877,210 35,535 (841,675) - - - - - - 2,311 2,311 - - 4,182 4,182 - - - - - - - - - - - - - - - - 877,710 877,710 37,873 (839,837) - 10,000 60,764 50,764 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 75,000 47,899 27,101 - - - - - - - - 1,072,840 1,255,179 - 1,255,179 - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 1,072,840 1,255,179 - 1,255,179 - 75,000 47,899 27,101 (195,130) (377,469) 37,873 415,342 - (65,000) 12,865 77,865 - - - - - - - - (7,000) (7,000) (7,000) - - - - - - - - - - - - - (7,000) (7,000) (7,000) - - - - - (202,130) (384,469) 30,873 415,342 - (65,000) 12,865 77,865 43,815 43,815 43,815 - 152,796 152,796 152,796 - (158,315)$ (340,654) $ 74,688 $ 415,342 $ 152,796 $ 87,796 $ 165,661 $ 77,865 $ Special Revenue
AB 2928Lighting District #3 Hunter's Ridge
143
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ 19,050$ 19,050 $ 81,687 $ 62,637 $ - - - - - - - - - 3,125,000 1,123,324 (2,001,676) - - - - - - - - - - 46,768 46,768 - - - - - - - - - - - - 16,024,700 16,066,670 14,851,483 (1,215,187) - - - - - - 1,339,890 1,339,890 - - - - - - - - - - - - - - - - - 3,125,000 1,123,324 (2,001,676) 16,043,750 16,085,720 16,319,828 234,108 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - 2,993,501 1,699,185 1,294,316 10,833,620 14,166,308 10,797,516 3,368,792 - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - 2,993,501 1,699,185 1,294,316 10,833,620 14,166,308 10,797,516 3,368,792 - 131,499 (575,861) (707,360) 5,210,130 1,919,412 5,522,312 3,602,900 - - - - 681,850 683,560 11,616 (671,944) - - - - (7,632,420) (8,214,690) (6,796,520) 1,418,170 - - - - - - - - - - - - (6,950,570) (7,531,130) (6,784,904) 746,226 - 131,499 (575,861) (707,360) (1,740,440) (5,611,718) (1,262,592) 4,349,126 (131,499) (131,499) (131,499) - 31,785,642 31,785,642 31,785,642 - (131,499)$ - $ (707,360)$ (707,360) $ 30,045,202 $ 26,173,924 $ 30,523,050 $ 4,349,126 $ Special Revenue
Community Facilities DistrictsARPA County
144
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
-
- - - - - -
- -
- - - - - -
- -
- - - - - -
- -
- - - - - -
- -
17,635 17,635 - - - -
- - - - - - 210,842 210,842
- - - - - - - -
- - - - - 2,325,396 929,000 (1,396,396) - - 17,635 17,635 - 2,325,396 1,139,842 (1,185,554) - - - -
- - - - - - - -
20,000 7,000 3,574 3,426 - - - - - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - 3,923,799 8,642 3,915,157 - - - - - 8,961,090 2,795,339 6,165,751 - - - - - - - -
-
1,830,005 1,830,005 1,830,000 5 - - - - 2,164,025 2,164,025 2,164,025 - - - - - - - - - - - - -
4,014,030 4,001,030 3,997,599 3,431 - 12,884,889 2,803,981 10,080,908 (4,014,030) (4,001,030) (3,979,964) 21,066 - (10,559,493) (1,664,139) 8,895,354 4,327,540 4,004,030 3,994,025 (10,005) - 9,386,360 9,386,360 - - - - - - (530,000)
(530,000) -
(3,994,030) (3,994,030) - 3,994,030 - 1,151,090 1,151,095 5 333,510 10,000 3,994,025 3,984,025 - 10,007,450 10,007,455 5
(3,680,520) (3,991,030) 14,061 4,005,091 - (552,043) 8,343,316 8,895,359
(2,069) (2,069) (2,069) - 878,944 878,944 878,944 878,944 (3,682,589)$ (3,993,099)$ 11,992$ 4,005,091$ 878,944$ 326,901$ 9,222,260$ 9,774,303$ Capital Improvements
Capital Projects
General Debt Service
Debt Service
145
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 337,015 337,015 - - 1,263,794 1,263,794 - - - - - - - - - - - - - - - - - - 337,015 337,015 - - 1,263,794 1,263,794 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 344,883 - 344,883 41,270 680,000 - 680,000 - - - - 2,075,000 2,075,000 14,380 2,060,620 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - 344,883 - 344,883 2,116,270 2,755,000 14,380 2,740,620 - (344,883) 337,015 681,898 (2,116,270) (2,755,000) 1,249,414 4,004,414 - - - - - - - - (151,420) (151,420) (151,420) - (19,280) (19,280) (19,280) - - - - - - - - - (151,420) (151,420) (151,420) - (19,280) (19,280) (19,280) - (151,420) (496,303) 185,595 681,898 (2,135,550) (2,774,280) 1,230,134 4,004,414 42,037,977 42,037,977 42,037,977 42,037,977 345,456 345,456 345,456 345,456 41,886,557$ 41,541,674 $ 42,223,572 $ 42,719,875 $ (1,790,094) $ (2,428,824) $ 1,575,590 $ 4,349,870 $ Future Capital Projects Sewer Expansion
Capital Projects
146
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts P ositive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - 580,000 580,000 849,568 269,568 - - - - 4,216,000 4,216,000 7,015,618 2,799,618 - - - - - - - - - - - - - - - - - - 1,125,087 1,125,087 - - 2,074,831 2,074,831 - 12,437,929 12,437,929 - - - - - - - - - - - - - - 12,437,929 13,563,016 1,125,087 4,796,000 4,796,000 9,940,017 5,144,017 - - - - - - - - - - - - - - - - - 2,444,413 407,402 2,037,011 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 94,970 20,209,701 7,695,311 12,514,390 - 499,171 499,171 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 499,171 499,171 - 94,970 22,654,114 8,102,713 14,551,401 - 11,938,758 13,063,845 1,125,087 4,701,030 (17,858,114) 1,837,304 19,695,418 - 62,556 62,556 - - - - - - (9,189,420) (9,189,418) 2 (73,880) (73,880) (73,880) - - - - - - - - - - (9,126,864) (9,126,862) 2 (73,880) (73,880) (73,880) - - 2,811,894 3,936,983 1,125,089 4,627,150 (17,931,994) 1,763,424 19,695,418 32,509,232 32,509,232 32,509,232 32,509,232 21,801,505 21,801,505 21,801,505 - 32,509,232$ 35,321,126 $ 36,446,215 $ 33,634,321 $ 26,428,655 $ 3,869,511 $ 23,564,929 $ 19,695,418 $ Traffic Mitigation
Capital Projects
Community Facilities Districts
147
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts P ositive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
3,55
5,000 3,555,000 3,085,654 (469,346) 804,200 804,200 600,401 (203,799) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 981,037 981,037 - - 88,641 88,641 - - - - - - - -
- - - - - - - -
3,555,000 3,555,000 4,066,691 511,691 804,200 804,200 689,042 (115,158) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
838,440 12,270,196 2,233,567 10,036,629 92,910 487,375 403,905 83,470 - - - - - - - -
- - - - - - - -
-
- - - - - - - -
- - - - - - - -
- - - - - - - -
838,440 12,270,196 2,233,567 10,036,629 92,910 487,375 403,905 83,470 2,716,560 (8,715,196) 1,833,124 10,548,320 711,290 316,825 285,137 (31,688) - - - - - 394,465 394,464 (1)
(98,460) (98,460) (98,460) - (8,320) (8,320) (8,320) - - - - - - - - -
(98,460) (98,460) (98,460) - (8,320) 386,145 386,144 (1) 2,618,100 (8,813,656) 1,734,664 10,548,320 702,970 702,970 671,281 (31,689) 20,758,648 20,758,648 20,758,648 - 1,931,487 1,931,487 1,931,487 - 23,376,748$ 11,944,992$ 22,493,312$ 10,548,320$ 2,634,457$ 2,634,457$ 2,602,768$ (31,689)$ Storm Drain San Sevaine Flood Control
Capital Projects
148
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - 1,850,000 1,850,000 4,189,942 2,339,942 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,976 1,976 - - 826,423 826,423 - - - - - - - - - - - - - - - - - - 1,976 1,976 1,850,000 1,850,000 5,016,365 3,166,365 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 350,550 9,545,343 799,831 8,745,512 - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 350,550 9,545,343 799,831 8,745,512 - - 1,976 1,976 1,499,450 (7,695,343) 4,216,534 11,911,877 - - - - - 600,000 600,000 - - - - - (123,970) (8,510,330) (8,510,330) - - - - - - - - - - - - - (123,970) (7,910,330) (7,910,330) - - - 1,976 1,976 1,375,480 (15,605,673) (3,693,796) 11,911,877 45,915 45,915 45,915 - 20,319,444 20,319,444 20,319,444 - 45,915$ 45,915 $ 47,891 $ 1,976 $ 21,694,924$ 4,713,771 $ 16,625,648 $ 11,911,877 $ Park Development
Capital Projects
Upper Etiwanda Flood Control
149
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ -$ -$ -$ -$ -$ -$ -$
-
- - - 200,000 200,000 147,665 (52,335)
- - - - - - - -
540,000 540,000 314,056 (225,944) - - - - - - - - - - - -
- - - - - - - -
- - 225,381 225,381 - - 47,927 47,927 - - - - - - - -
- - - - - - - -
540,000 540,000 539,437 (563) 200,000 200,000 195,592 (4,408) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
173,420 6,141,289 3,798,152 2,343,137 -
99,472
-
99,472
- - - - -
366,913 366,911 2
- - - - -
- - -
- -
- - - - - - - -
- - - - - - - -
- - - - - - - -
173,420 6,141,289 3,798,152 2,343,137 - 466,385 366,911 99,474 366,580 (5,601,289) (3,258,715) 2,342,574 200,000 (266,385) (171,319) 95,066 - - - - -
366,913 366,912 (1)
(11,720) (11,720) (11,720) - (6,440) (6,440)
(6,440) -
- - - - - - - -
(11,720) (11,720) (11,720) - (6,440) 360,473 360,472 (1) 354,860 (5,613,009) (3,270,435) 2,342,574 193,560 94,088 189,153 95,065 5,826,877 5,826,877 5,826,877 - 1,182,631
1,182,631 1,182,631 -
6,181,737$ 213,868$ 2,556,442$ 2,342,574$ 1,376,191$ 1,276,719$ 1,371,784$ 95,065$ Landscape Improvements Library Capital Improvement
Capital Projects
150
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ 400,000 400,000 636,505 236,505 - - - - - - - - - - - - - - - - 430,000 430,000 604,903 174,903 - - - - - - - - - - - - - - - - - - 162,230 162,230 - - 537,019 537,019 - - - - - - - - - - - - - - - - 400,000 400,000 798,735 398,735 430,000 430,000 1,141,922 711,922 - - - - - - - - - - - - - - - - - 1,017,764 - 1,017,764 - - - - - - - - - - - - - - - - 98,500 525,945 289,078 236,867 - - - - - - - - - - - - - - - - - 11,000,000 - 11,000,000 - 524,414 524,412 2 - 661,458 561,257 100,201 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 98,500 1,050,359 813,490 236,869 - 12,679,222 561,257 12,117,965 301,500 (650,359) (14,755) 635,604 430,000 (12,249,222) 580,665 12,829,887 - 524,414 524,413 (1) - 541,458 541,458 - (38,880) (38,880) (38,880) - - - - - - - - - - - - - (38,880) 485,534 485,533 (1) - 541,458 541,458 - 262,620 (164,825) 470,778 635,603 430,000 (11,707,764) 1,122,123 12,829,887 3,712,827 3,712,827 3,712,827 - 12,445,257 12,445,257 12,445,257 - 3,975,447$ 3,548,002 $ 4,183,605 $ 635,603 $ 12,875,257 $ 737,493 $ 13,567,380$ 12,829,887 $ Capital Projects
Police Facility General Government Improvement
151
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ 260,000 260,000 390,047 130,047 905,000 905,000 1,374,184 469,184 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25,857 25,857 - - 250,896 250,896 - - - - - - - - - - - - - - 115,538 115,538 260,000 260,000 415,904 155,904 905,000 905,000 1,740,618 835,618 - - - - - - - - - 962,170 - 962,170 - 423,922 - 423,922 - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 30,500 2,476,667 1,440,244 1,036,423 - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - 423,922 - 423,922 30,500 3,438,837 1,440,244 1,998,593 260,000 (163,922) 415,904 579,826 874,500 (2,533,837) 300,374 2,834,211 - - - - - 962,170 962,170 - (344,460) (279,570) (279,570) - - - (3,050) (3,050) - - - - - - - - (344,460) (279,570) (279,570) - - 962,170 959,120 (3,050) (84,460) (443,492) 136,334 579,826 874,500 (1,571,667) 1,259,494 2,831,161 606,384 606,384 606,384 - 7,351,914 7,351,914 7,351,914 - 521,924$ 162,892 $ 742,718 $ 579,826 $ 8,226,414 $ 5,780,247 $ 8,611,408 $ 2,831,161 $ Capital Projects
Fire Assessment Affordable Housing Trust
152
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with Variance with
Original Final Actual Final Budget Original Final Actual Final Budget Budget Budget Amounts Positive (Negative) Budget Budget Amounts Positive (Negative) -$ - $ - $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,795,667 1,795,667 55,000 55,000 390,647 335,647 - - - - - - - - - - - - 159,050 159,050 17,967 (141,083) - - 1,795,667 1,795,667 214,050 214,050 408,614 194,564 - - - - - - - - - - - - - - - - 157,500 157,500 19,853 137,647 - - - - - - - - - - - - - - - - - -
- - - - - - - - - 104,083 1,262 102,821 - - - - 7,067,180 45,051,680 9,267,298 35,784,382 - - - - - - - - 44,450 44,450 18,200 26,250 - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - 7,067,180 45,155,763 9,268,560 35,887,203 201,950 201,950 38,053 163,897 (7,067,180) (45,155,763) (7,472,893) 37,682,870 12,100 12,100 370,561 358,461 7,224,150 7,224,150 7,224,150 - - - - - (224,150) (224,150) (224,150) - (20,200) (20,200) (20,200) - - - - - - - - - 7,000,000 7,000,000 7,000,000 - (20,200) (20,200) (20,200) - (67,180) (38,155,763) (472,893) 37,682,870 (8,100) (8,100) 350,361 358,461 38,377,217 38,377,217 38,377,217 - 3,082,423 3,082,423 3,082,423 - 38,310,037$ 221,454 $ 37,904,324$ 37,682,870 $ 3,074,323 $ 3,074,323 $ 3,432,784 $ 358,461 $ Fire Protection District Fontana Housing Authority
Capital Projects
153
City of Fontana, California
Budgetary Comparison Schedules
Governmental Funds
For the Year Ended June 30, 2024
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Investment earnings
Contribution from property owners
Other revenue
Total revenues
Expenditures
Current
General government
City council and commissions
City administration
Management services
Information Technology
Human resources
Public safety
Police
Fire
Public works / Engineering
Community development
Community services
Debt service
Principal
Interest
Payment to refunded bond escrow agent
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balances
Fund Balances - Beginning, as restated
Fund Balances - Ending
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Positive (Negative)
-$ -$ -$ -$
-
- - -
- - - -
- - - -
- - - -
- - - -
- - 1,210,077
1,210,077
- - - -
133,000 133,000 228,823 95,823
133,000 133,000 1,438,900 1,305,900
51,000 195,598 200,109
-
627,600 23,471 427,491
- - - -
-
3,366,331 51,760 3,314,571
-
- - -
- - - -
- - - -
4,563,330 43,459,708 -
43,459,708
82,000 65,112 7,907,545 (7,842,433) - - 22,858 (22,858)
- - - -
- - - -
- - - -
4,696,330 47,518,751 8,205,743 39,336,479 (4,563,330) (47,385,751) (6,766,843) 40,642,379 9,400,000 27,411,142 27,706,599 295,457
- - - -
- - 2,955,926 2,955,926
9,400,000 27,411,142 30,662,525 3,251,383
4,836,670 (19,974,609) 23,895,682 43,893,762
25,960,317 25,960,317 25,960,317 25,960,317 30,796,987$ 5,985,708$ 49,855,999$ 69,854,079$ Capital Projects
Capital Reinvestments
154
City of Fontana, California
Combining Statement of Proprietary Net Position
Enterprise Funds
June 30, 2024
Water Stage
Operations Red Totals
Assets
Current Assets
Cash and investments 849,936 $ 140,535 $ 990,471 $ Accounts receivables - 22,940 22,940 Interest receivable 4,958 - 4,958 Loans receivable 1,090,124 - 1,090,124 Prepaid expenses - 234,506 234,506 Inventories - 43,812 43,812 Total current assets 1,945,018 441,793 2,386,811 Total assets 1,945,018 441,793 2,386,811 Liabilities
Current Liabilities
Accounts payable - 127,156 127,156 Due to other funds - 4,426 4,426 Advances from other funds - 500,000 500,000 Total current liabilities - 631,582 631,582 Total liabilities - 631,582 631,582 Net Position
Unrestricted 1,945,018 (189,789) 1,755,229 Total net position 1,945,018 $ (189,789) $ 1,755,229 $ Business-type Activities
Enterprise Funds
155
City of Fontana, California
Combining Statement of Changes in Proprietary Net Position Enterprise Funds
June 30, 2024
Water Stage
Operations Red Totals
Operating Revenues
Charges for services - $ - $ - $ Total revenues - - - Operating Expenses
Operating costs - 2,111 2,111 Contractual - 226,049 226,049 Total operating expenses - 228,160 228,160 Operating income (loss) - (228,160) (228,160) Non-Operating Revenues (Expenses)
Investment earnings 33,783 - 33,783 Interest payments - - - Other revenue (expenses) - 38,371 38,371 Total non-operating revenues (expenses) 33,783 38,371 72,154 Income (loss) before contributions
and transfers 33,783 (189,789) (156,006) Change in Net Position 33,783 (189,789) (156,006) Net Position, Beginning of Fiscal Year 1,911,235 - 1,911,235 Net Position, End of Year 1,945,018 $ (189,789) $ 1,755,229 $ Business-type Activities
Enterprise Funds
156
City of Fontana, California
Combining Statement of Cash Flows in Proprietary Net Position Enterprise Funds
June 30, 2024
Water Stage
Operations Red Totals
Operating Activities
Cash received from customers - $ 15,431$ 15,431 $ Cash payments to suppliers of goods and services - (374,896) (374,896) Cash payments to employees for services - - - Net Cash Provided by (Used For) Operating Activities - (359,465) (359,465) Noncapital Financing Activities
Advances from other funds - 500,000 500,000 Net Cash Provided by (Used For) Noncapital Financing Activities - 500,000 500,000 Investing Activities
Investment earnings 108,632 - 108,632 Net Cash Provided by Investing Activities 108,632 - 108,632 Net Increase (Decrease) in Cash and Cash Equivalents 108,632 140,535 249,167 Cash and Cash Equivalents - Beginning of Year 741,304 - 23,515,307 Cash and Cash Equivalents - End of Year 849,936 $ 140,535 $ 23,764,474 $ Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:
Operating Income (Loss) - $ (228,160)$ (228,160) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities
Other revenue (expenses) - 38,371 38,371 Changes in Assets and Liabilities
Accounts receivable - (22,940) (22,940) Prepaid expenses - (234,506) (234,506) Inventories - (43,812) (43,812) Accounts payable - 127,156 127,156 Due to other funds - 4,426 4,426 Net Cash Provided by (Used For) Operating Activities - $ (359,465)$ (359,465) $ There were no non-cash investing, capital or financing activities for the year ended June 30, 2024.
Business-type Activities
Enterprise Funds
157
City of Fontana, California
Fiduciary Funds
Fiduciary Fund types include trust and custodial funds. Custodial funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds.
Community Facilities District #2 – Village of Heritage – To account for the Village of Heritage CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #3 – Hunter’s Ridge – To account for the Hunter’s Ridge CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #4 – Walnut Village – To account for the Walnut Village CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #7 – County Club Estates– To account for the Country Club Estates CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #11 – Heritage West End – To account for the Heritage West End CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #12 – Sierra Lakes – To account for the Sierra Lakes CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #22 – Sierra Hills South – To account for the Sierra Hills South CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #31 – Citrus Heights North – To account for the Citrus Heights North CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #37 – Montelago – To account for the Montelago CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #70 – Avellino – To account for the Avellino CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #71 – Sierra Crest – To account for the Sierra Crest CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #80 – Bella Strada – To account for the Bella Strada CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #81 – Gabriella – To account for the Gabriella CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #74 – Citrus Summit – To account for the Citrus Summit CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #85 – The Meadows – To account for the Meadows CFD special taxes received and the payment of debt service related to bonds issued.
158
City of Fontana, California
Fiduciary Funds
Community
Facilities District #86 – Etiwanda Ridge – To account for the Etiwanda Ridge CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #89 – Belrose – To account for the Belrose CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #90 – Summit at Rosena – To account for the Summit at Rosena CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #87 – El Paseo – To account for the El Paseo CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #95 – Summit at Rosena II – To account for the Summit at Rosena II CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #106 – Mountainview – To account for the Mountainview CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #100 – Victoria – To account for the Victoria CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #99 – Victoria – To account for the Retreat CFD special taxes received and the payment of debt service related to bonds issued.
Community Facilities District #111 –Monterado– To account for the Monterado CFD special taxes received and the payment of debt service related to bonds issued.
159
City of Fontana, California
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
CFD #2 CFD #3 CFD #4 CFD #7
Heritage Hunter's Ridge Walnut Village Country Club
Assets
Cash and investments 76,528 $ 6,355 $ - $ 269,269$ Cash and investments with fiscal agent - - - 257,271 Assessments receivable 727 - - 3,543 Total assets 77,255 6,355 - 530,083 Net Position
Held for other organizations - - - - Held in trust for other purposes 77,255 6,355 - 530,083 Total net position 77,255 $ 6,355 $ - $ 530,083$ CFD #11 CFD #12 CFD #22 CFD #31
Heritage West End Sierra Lakes Sierr a Hills South Citrus Heights North Assets
Cash and investments 541,488 $ 1,396,494 $ 2,698,788 $ 2,389,535 $ Cash and investments with fiscal agent 443,018 1,180,607 2,699,504 2,352,470 Assessments receivable 505 10,156 4,601 21,648
Total assets 985,011 2,587,257 5,402,893 4,763,653 Net Position
Held for other organizations - - - - Held in trust for other purposes 985,011 2,587,257 5,402,893 4,763,653 Total net position 985,011 $ 2,587,257 $ 5,402,893 $ 4,763,653 $ CFD #37 CFD #70 CFD #71 CFD #74B
Montelago Avellino Sierra Crest Citrus Summit
Assets
Cash and investments 226,155 $ 144,871 $ 364,055 $ 334,978 $ Cash and investments with fiscal agent 310,612 144,147 438,772 375,777 Assessments receivable - 2,092 - 1,983 Total assets 536,767 291,110 802,827 712,738 Net Position
Held for other organizations - - - - Held in trust for other purposes 536,767 291,110 802,827 712,738 Total net position 536,767 $ 291,110 $ 802,827 $ 712,738 $ CFD #80 CFD #81 CFD #85 CFD #86
Bella Strada Gabriella The Meadows Etiwanda Ridge
Assets
Cash and investments 805,100 $ 474,528 $ 1,492,705 $ 300,999 $ Cash and investments with fiscal agent 1,289,893 504,551 1,496,198 328,769 Assessments receivable 3,390 7,478 29,993 13,741
Total assets 2,098,383 986,557 3,018,896 643,509 Net Position
Held for other organizations - - - - Held in trust for other purposes 2,098,383 986,557 3,018,896 643,509 Total net position 2,098,383 $ 986,557 $ 3,018,896 $ 643,509 $
160
City of Fontana, California
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
CFD #87 CFD #88 CFD #89 CFD #90
El Paseo Sierra Crest II Belrose Summit at Rosena
Assets
Cash and investments 516,053 $ 461,622 $ 402,381 $ 1,072,296 $ Cash and investments with fiscal agent 364,856 420,420 458,820 1,359,327 Assessments receivable 14,892 2,538 10,234 56,056
Total assets 895,801 884,580 871,435 2,487,679 Net Position
Held for other organizations - - - - Held in trust for other purposes 895,801 884,580 871,435 2,487,679 Total net position 895,801 $ 884,580 $ 871,435 $ 2,487,679 $ CFD #95 CFD #106 CFD #100 CFD #99
Summit at Rosena II Mountainview Victoria Victoria
Assets
Cash and investments 508,955 $ 379,890 $ 167,953 $ 257,689 $ Cash and investments with fiscal agent 616,121 482,355 396,589 313,582 Assessments receivable 19,001 13,829 5,692 4,669.00
Total assets 1,144,077 876,074 570,234 575,940 Net Position
Held for other organizations - - - - Held in trust for other purposes 1,144,077 876,074 570,234 575,940 Total net position 1,144,077 $ 876,074 $ 570,234 $ 575,940 $ CFD #107 CFD #109 CFD #111 CFD #112
Highland Narra Hills Monterad o The Gardens Phase One
Assets
Cash and investments 132,102 $ 375,939 $ 9,549 $ 577,554 $ Cash and investments with fiscal agent - - 635,789 - Assessments receivable - - 1,516 14,291 Total assets 132,102 375,939 646,854 591,845 Net Position
Held for other organizations - - - - Held in trust for other purposes 132,102 375,939 646,854 591,845 Total net position 132,102 $ 375,939 $ 646,854 $ 591,845 $
161
City of Fontana, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2024
CFD #2 CFD #3 CFD #4 CFD #7
Heritage Hunter's Ridge Walnut Village Country Club
Additions 950 951 952 953
Contributions from property owners - $ - $ (393) 264,803 Interest and change in fair value
of investments 75 - - 14,306 Total additions 75 - (393) 279,109 Deductions
Administrative expense - - - 24,130 Interest expense - - - 47,000 Principal payments - - - 190,000 Total deductions - - - 261,130 Change in Net Position 75 - (393) 17,979 Net Position at Beginning of Year 77,180 6,355 393 512,104 Net Position at End of Year 77,255 $ 6,355 $ - $ 530,083$ CFD #11 CFD #12 CFD #22 CFD #31
Heritage West End Sierra Lakes Sierra Hills South Citrus Heights North Additions 954 955 956 957
Contributions from property owners 541,156$ 1,460,801 $ 2,689,194 $ 2,403,720 $ Interest and change in fair value
of investments 25,009 67,591 23,105 28,814
Total additions 566,165 1,528,392 2,712,299 2,432,534 Deductions
Administrative expense 40,210 123,678 85,691 54,910
Interest expense 97,000 342,000 1,053,500 965,450
Principal payments 400,000 980,000 1,490,000 1,290,000
Total deductions 537,210 1,445,678 2,629,191 2,310,360 Change in Net Position 28,955 82,714 83,108 122,174 Net Position at Beginning of Year 956,057 2,504,543 5,319,785 4,641,479 Net Position at End of Year 985,012 $ 2,587,257 $ 5,402,893 $ 4,763,653 $
162
City of Fontana, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2024
CFD #37 CFD #70 CFD #71 CFD #74B
Montelago Avellino Sierra Crest Citrus Summit
Additions 958 959 960 963
Contributions from property owners 223,760$ 165,098 $ 361,402 $ 364,005 $ Interest and change in fair value
of investments 17,284 8,175 4,104 2,422
Total additions 241,044 173,273 365,506 366,427 Deductions
Administrative expense 33,647 29,876 28,717 43,298
Interest expense 78,500 75,700 148,969 156,625
Principal payments 125,000 65,000 160,000 85,000
Total deductions 237,147 170,576 337,686 284,923 Change in Net Position 3,897 2,697 27,820 81,504 Net Position at Beginning of Year 532,870 288,413 775,007 631,234 Net Position at End of Year 536,767 $ 291,110 $ 802,827 $ 712,738 $ CFD #80 CFD #81 CFD #85 CFD #86
Bella Strada Gabriella The Meadows Etiwanda Ridge
Additions 961 962 965 964
Contributions from property owners 800,135$ 472,679 $ 1,491,408 $ 338,719 $ Interest and change in fair value
of investments 7,941 4,845 15,810 1,596
Total additions 808,076 477,524 1,507,218 340,315 Deductions
Administrative expense 44,164 44,163 52,021 41,616
Interest expense 424,856 255,369 849,975 171,644
Principal payments 275,000 160,000 455,000 110,000
Total deductions 744,020 459,532 1,356,996 323,260 Change in Net Position 64,056 17,992 150,222 17,055 Net Position at Beginning of Year 2,034,327 968,565 2,868,674 626,454 Net Position at End of Year 2,098,383 $ 986,557 $ 3,018,896 $ 643,509 $
163
City of Fontana, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2024
CFD #87 CFD #88 CFD #89 CFD #90
El Paseo Sierra Crest II Belrose Summit at Rosena
Additions 970 966 967 968
Contributions from property owners 516,958$ 464,933 $ 406,082 $ 1,464,614 $ Interest and change in fair value
of investments 6,937 3,772 4,389 14,101
Total additions 523,895 468,705 410,471 1,478,715 Deductions
Administrative expense 41,616 31,214 41,618 41,615
Interest expense 206,700 252,800 214,900 853,675
Principal payments 105,000 130,000 115,000 435,000
Total deductions 353,316 414,014 371,518 1,330,290 Change in Net Position 170,579 54,691 38,953 148,425 Net Position at Beginning of Year 725,222 829,889 832,482 2,339,254 Net Position at End of Year 895,801
$ 884,580 $ 871,435 $ 2,487,679 $ CFD #95 CFD #106 CFD #100 CFD #99
Summit at Rosena II Mountainview Victoria Victoria
Additions 969 971 972 973
Contributions from property owners 672,869$ 525,691 $ 466,270 $ 375,607 $ Interest and change in fair value
of investments 3,418 303 14 1,082
Total additions 676,287 525,994 466,284 376,689 Deductions
Administrative expense 40,800 20,000 - - Interest expense 414,081 317,525 94,592 186,486
Principal payments 155,000 110,000 - - Total deductions 609,881 447,525 94,592 186,486 Change in Net Position 66,406 78,469 371,692 190,203 Net Position at Beginning of Year 1,077,671 797,605 198,542 385,737 Net Position at End of Year 1,144,077
$ 876,074 $ 570,234 $ 575,940 $
164
City of Fontana, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
June 30, 2024
CFD #107 CFD #109 CFD #111 CFD #112
Highland Narra Hills Monterado The Gardens Phase On e
Additions 969 971 972 973
Contributions from property owners 132,102$ 375,939 $ 646,575 $ 591,845 $ Interest and change in fair value
of investments - - 278 - Total additions 132,102 375,939 646,853 591,845 Deductions
Administrative expense - - - - Interest expense - - - - Principal payments - - - - Total deductions - - - - Change in Net Position 132,102 375,939 646,853 591,845 Net Position at Beginning of Year 1,077,671 797,605 198,542 385,737 Net Position at End of Year 1,209,773 $ 1,173,544 $ 845,395 $ 977,582 $ Trust Total All
Deposits Custodial Funds
Additions 901
Contributions from property owners - $ 18,215,972$ Interest and change in fair value
of investments - 255,371 Increase in deposits held 8,427,638 8,427,638 Total additions 8,427,638 26,898,981 Deductions
Administrative expense - 862,984 Interest expense - 7,207,347 Decrease in deposits held 4,886,093 4,886,093 Principal payments - 6,835,000 Total deductions 4,886,093 19,791,424 Change in Net Position 3,541,545 7,107,557 Net Position at Beginning of Year 7,487,584 37,417,426 Net Position at End of Year 11,029,129 $ 44,524,983 $
165
City of Fontana, California
Statistical Section
June 30, 2024
This part of the City of Fontana's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about financial trends, revenue capacity, debt capacity, demographics, and operating information
Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 166 Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales tax. 172 Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future. 176
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. 180 Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 182
Contents
2024 2023 2022 2021 2020
Governmental Activities
Net investment in capital assets 741,903,826 $ 709,182,502 $ 675,178,954 $ 638,864,552 $ 689,365,068 $ Restricted 270,351,706 280,618,903 272,038,102 253,988,209 244,761,778 Unrestricted 153,486,322 101,770,977 63,341,636 92,731,842 (7,238,288) Total governmental activities net position 1,165,741,854 1,091,572,382 1,010,558,692 985,584,603 926,888,558 Business-type activities
Net investment in capital assets 59,154,883 $ 59,588,417 $ 53,603,455 $ 55,532,997 $ 57,530,519 $ Unrestricted 23,187,671 20,847,432 21,292,372 20,735,496 20,771,902 Total business-type activities net position 82,342,554 80,435,849 74,895,827 76,268,493 78,302,421 Primary Government
Net investment in capital assets 801,058,709 768,770,919 728,782,409 694,397,549 746,895,587 Restricted 270,351,706 280,618,903 272,038,102 253,988,209 244,761,778 Unrestricted 176,673,993 122,618,409 84,634,008 113,467,338 13,533,614 Total primary government net position 1,248,084,408 1,172,008,231 1,085,454,519 1,061,853,096 1,005,190,979 2019 2018 2017 2016 2015
Governmental Activities
Net investment in capital assets 701,530,830 $ 720,068,559 $ 735,790,188 $ 755,220,959 $ 691,627,257 $ Restricted 245,587,568 232,841,328 227,128,252 226,420,563 204,759,026 Unrestricted (13,423,646) (26,155,824) 9,377,716 2,951,934 (13,247,617) Total governmental activities net position 933,694,752 926,754,063 972,296,156 984,593,456 883,138,666 Business-type activities
Net investment in capital assets 59,255,628 $ 61,076,764 $ 61,798,043 $ 63,050,134 $ 65,035,187 $ Unrestricted 23,039,788 21,347,594 22,291,772 23,458,142 23,099,758 Total business-type activities net position 82,295,416 82,424,358 84,089,815 86,508,276 88,134,945 Primary Government
Net investment in capital assets 760,786,458 781,145,323 797,588,231 818,271,093 756,662,444 Restricted 245,587,568 232,841,328 227,128,252 226,420,563 204,759,026 Unrestricted 9,616,142 (4,808,230) 31,669,488 26,410,076 9,852,141 Total primary government net position 1,015,990,168 1,009,178,421 1,056,385,971 1,071,101,732 971,273,611 Fiscal Year
CITY OF FONTANA
Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
NET POSITION BY COMPONENT
166
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Expenses
General government 59,446,792 $ 32,752,857 $ 40,459,365 $ 41,709,051 $ 41,457,059 $ 33,660,288 $ 28,739,683 $ 45,299,507 $ 29,336,758 $ 24,737,274 $ Public safety 129,566,172 109,638,340 111,899,427 111,355,247 102,004,716 96,951,615 93,262,299 84,299,901 77,928,071 76,501,195 Public Works/Engineering 76,016,743 75,398,853 86,822,284 74,076,947 85,321,132 78,157,502 78,069,014 68,113,043 59,191,886 84,855,975 Community development 20,058,225 24,087,763 5,492,363 38,018,696 5,691,710 5,781,517 9,933,299 10,454,373 9,037,714 3,882,448 Community services 22,000,117 10,394,270 13,344,407 13,155,951 15,553,958 17,458,437 17,272,167 15,370,237 14,762,425 13,474,939 Interest on long-term debt 2,132,683 2,133,651 2,132,558 1,860,542 2,001,629 1,981,911 2,608,411 2,392,153 2,153,414 3,105,404 Total governmental activities expenses 309,220,732 254,405,734 260,150,404 280,176,434 252,030,204 233,991,270 229,884,873 225,929,214 192,410,268 206,557,235 Business-type activities:
Sewer 26,898,880 26,260,033 24,541,611 24,980,302 26,759,827 22,026,753 22,261,294 20,786,533 18,837,548 18,010,757 Water - - - - 12,200 19,520 1,390 6,032 44,104 54,805 Stage Red 228,160 - - - - - - - - -
I
nterest on long-term debt 85,584 101,463 112,532 - - - - - - - T
otal business-type activities 27,212,624 26,361,496 24,654,143 24,980,302 26,772,027 22,046,273 22,262,684 20,792,565 18,881,652 18,065,562 Total primary government expenses 336,433,356 $ 280,767,230 $ 284,804,547 $ 305,156,736 $ 278,802,231 $ 256,037,543 $ 252,147,557 $ 246,721,779 $ 211,291,920 $ 224,622,797 $ Program Revenues
Charges for Services:
General government 10,640,617$ 8,156,242$ 7,581,528$ 8,017,410$ 7,614,444$ 8,358,160$ 12,022,779$ 7,139,390$ 6,864,125$ 7,801,644$ Public safety 2,118,555 2,453,853 1,999,022 2,475,633 4,458,763 6,379,838 6,280,045 6,190,785 6,314,166 9,987,259 Public Works/Engineering 45,123,710 35,036,261 35,136,430 29,765,524 27,952,996 26,363,880 26,583,585 26,269,706 30,844,702 23,859,501 Community development 12,752,239 24,009,166 25,431,821 21,693,037 15,716,301 20,590,089 17,949,656 16,883,104 25,591,414 12,694,452 Community services 4,241,880 3,823,376 3,181,475 1,054,151 2,042,342 3,588,342 3,282,570 3,265,356 7,679,413 6,401,350 Oper
ating contributions and grants 67,764,603 51,038,308 20,860,568 46,511,190 24,472,892 17,437,665 14,720,871 12,213,450 4,920,888 5,388,077 Capital contributions and grants 20,125,718 22,713,589 27,263,569 68,781,955 12,457,455 14,409,776 28,415,558 26,539,731 13,763,600 17,231,877 Total governmental activities program revenues 162,767,322 147,230,795 121,454,413 178,298,900 94,715,193 97,127,750 109,255,064 98,501,522 95,978,308 83,364,160 Business-type activities:
Charges for Services:
Sewer 29,024,699 27,542,299 26,819,169 25,358,711 24,922,787 23,116,983 21,703,872 19,539,503 18,248,953 17,131,593 Water - - - - - - - - - -
O
perating contributions and grants - - - - - - - - - -
Capi
tal contributions and grants 1,415,195 7,630,458 336,864 198,621 108,539 803,148 724,564 1,166,163 651,860 3,486,994 Total business-type activities program revenues 30,439,894 35,172,757 27,156,033 25,557,332 25,031,326 23,920,131 22,428,436 20,705,666 18,900,813 20,618,587 Governmental activities (146,453,410) (107,174,939) (138,695,991) (101,877,534) (157,315,011) (136,863,520) (120,629,809) (127,427,692) (96,431,960) (123,193,075) Busi
ness-type activities 3,227,270 8,811,261 2,501,890 577,030 (1,740,701) 1,873,858 165,752 (86,899) 19,161 2,553,025 Total primary government net expense (143,226,140)$ (98,363,678)$ (136,194,101)$ (101,300,504)$ (159,055,712)$ (134,989,662)$ (120,464,057)$ (127,514,591)$ (96,412,799)$ (120,640,050)$ Governmental activities:
CITY OF FONTANA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities:
Fiscal Year
167
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property taxes 107,808,356$ 95,730,662$ 84,070,144$ 76,703,234$ 73,705,908$ 65,123,274$ 54,647,011$ 52,097,345$ 48,537,350$ 47,772,343$ Sales taxes 55,887,448 59,102,489 56,726,526 51,408,188 42,958,630 44,564,309 38,663,576 37,844,293 38,442,282 34,219,832 Franchise taxes 11,208,531 11,118,103 9,749,087 8,670,092 8,400,846 7,603,283 7,190,939 6,680,065 7,042,887 7,428,364 Business license taxes 11,943,284 8,395,990 7,583,660 6,676,592 6,280,132 6,419,287 5,898,298 5,714,262 5,215,605 4,982,546 Transient occupancy taxes 1,144,605 1,302,569 1,374,182 1,132,091 960,057 1,085,305 1,009,734 961,122 962,089 715,570 Motor vehicle in-lieu 759,269 301,474 459,175 156,222 167,850 101,761 112,007 94,030 82,436 82,854 Investment earnings 25,832,592 9,228,551 (10,525,380) 4,007,555 11,543,571 13,862,698 5,209,144 5,645,106 8,151,890 7,362,672 Other 7,558,825 4,274,678 11,900,515 9,175,913 3,747,676 2,378,892 5,045,968 3,670,692 3,718,814 6,136,697 Contributions not restricted to specific programs 6,680,574 17,103,880 Gain/(Loss) on sale of capital assets - - - - - - - - - (557,702) Extraordinary gain/(loss) on dissolution of redevelopment agency - - - - - - - - - - Transfers 2,382,950 3,659,260 2,949,200 2,643,692 2,744,147 2,665,400 1,891,022 2,262,500 2,109,800 1,815,690 Total governmental activities 231,206,434 210,217,656 164,287,109 160,573,579 150,508,817 143,804,209 119,667,699 114,969,415 114,263,153 109,958,866 Business-type activities:
Investment earnings 1,054,017 270,136 (748,794) 18,927 491,853 662,600 59,813 91,915 309,412 250,299 Other 8,368 117,885 (176,562) 13,807 - - - - - - Extraordinary gain/(loss) on dissolution of redevelopment agency - - - - - - - - - - Transfers (2,382,950) (3,659,260) (2,949,200) (2,643,692) (2,744,147) (2,665,400) (1,891,022) (2,262,500) (2,109,800) (1,815,690) Total business-type activities (1,320,565) (3,271,239) (3,874,556) (2,610,958) (2,252,294) (2,002,800) (1,831,209) (2,170,585) (1,800,388) (1,565,391) T
otal primary government 229,885,869 $ 206,946,417 $ 160,412,553 $ 157,962,621 $ 148,256,523 $ 141,801,409 $ 117,836,490 $ 112,798,830 $ 112,462,765 $ 108,393,475 $ Change in Net Position
Governmental activities 84,753,024 103,042,717 25,591,118 58,696,045 (6,806,194) 6,940,689 (962,110) (12,458,277) 17,831,193 (13,234,209) Business-type activities 1,906,705 5,540,022 (1,372,666) (2,033,928) (3,992,995) (128,942) (1,665,457) (2,257,484) (1,781,227) 987,634 Total primary government 86,659,729 $ 108,582,739 $ 24,218,452 $ 56,662,117 $ (10,799,189)$ 6,811,747 $ (2,627,567)$ (14,715,761)$ 16,049,966 $ (12,246,575)$
CITY OF FONTANA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
168
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
General Fund:
Nonspendable 23,112,718$ 24,107,186$ 383,755$ 322,558$ 396,090$ 393,718$ 464,839$ 395,907$ 429,023$ 386,436$ Restricted 1,832,888 12,398,214 1,510,351 1,510,351 1,341,403 1,236,229 1,151,682 1,071,523 1,087,820 1,158,751 Committed 47,182,993 32,411,496 10,886,393 6,038,085 5,700,690 6,167,070 5,207,240 5,414,716 4,726,998 2,669,111 Assigned 6,428,514 3,143,811 33,944,406 33,944,406 27,473,651 26,455,278 25,141,842 24,446,674 34,514,464 21,789,340 Unassigned 25,491,914 45,200,677 77,336,531 75,240,512 63,564,012 60,465,811 55,080,691 54,121,364 46,558,441 54,561,190 Total 104,049,027 $ 117,261,384 $ 124,061,436 $ 117,055,912 $ 98,475,846 $ 94,718,106 $ 87,046,294 $ 85,450,184 $ 87,316,746 $ 80,564,828 $ All Other Governmental Funds, other than General Fund:
Nonspendable 12,597,571$ 21,632,793$ 13,766,080$ 12,607,667$ 12,538,114$ 3,019,097$ 948,101$ 5,715,188$ 5,399,718$ 106,500$ Restricted 282,012,952 268,220,689 270,527,750 250,955,642 213,552,839 207,168,717 194,769,129 188,197,328 187,496,268 182,582,223 Committed - - - - - - - - - -
Ass
igned 206,316,506 172,257,648 152,557,359 148,248,879 110,069,155 124,981,347 125,032,314 120,713,623 107,535,831 94,339,773 Unassigned (11,481,993) (4,202,017) (1,599,859) (1,605,563) (1,550,470) (5,614,358) (13,245,428) (17,891,929) (24,005,611) (31,658,357) Total Other Governmental Funds 489,445,036 $ 457,909,113 $ 435,251,330 $ 410,206,625 $ 334,609,638 $ 329,554,803 $ 307,504,116 $ 296,734,210 $ 276,426,206 $ 245,370,139 $ Fiscal Year
(modified accrual basis of accounting)
Last Ten Fiscal Years
FUND BALANCES - GOVERNMENTAL FUNDS
CITY OF FONTANA
169
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenues:
Taxes 188,066,319 $ 175,658,307 $ 159,517,348 $ 144,690,732 $ 132,341,375 $ 124,795,458 $ 107,409,558 $ 103,297,087 $ 100,200,213 $ 95,118,655 $ Licenses and permits 17,776,926 18,417,398 18,797,242 14,284,661 9,547,162 12,402,513 10,713,155 12,811,481 18,626,256 9,457,615 Intergovernmental 66,668,490 55,559,853 29,659,271 39,222,825 32,980,850 24,566,107 19,884,450 20,108,576 20,328,373 26,033,423 Charges for services 34,302,878 31,466,671 31,138,289 25,991,512 22,778,927 28,474,357 27,447,010 19,659,882 26,783,977 16,345,500 Fines and forfeitures 771,960 770,
275 775,399 1,683,660 3,735,492 3,812,587 3,515,710 4,021,872 4,472,790 4,780,288 Special assessments 19,227,946 19,273,068 18,389,887 18,320,914 18,136,360 17,040,757 16,758,987 16,270,692 16,040,403 15,760,431 Investment earnings 25,065,826 8,106,190 (11,566,369) 4,361,840 11,322,972 13,662,906 5,203,257 5,623,634 8,110,868 7,351,178 Contribution from property owners 12,437,929 10,815,577 21,704,957 59,507,176 5,194,646 4,480,225 18,695,684 14,728,436 - - O
ther revenue 6,340,782 5,657,589 10,295,120 27,660,909 4,983,802 3,897,361 11,027,048 8,280,834 8,528,720 10,034,327 Total Revenues 370,659,056 325, 724,928 278,711,144 335,724,229 241,021,586 233,132,271 220,654,859 204,802,494 203,091,600 184,881,417 Expenditures:
General government 56,592,030 39,184,574 37,876,497 41,481,736 35,212,913 30,213,300 29,643,233 28,048,281 22,040,327 23,930,630 Public safety 127,880,980 120,284,592 115,338,172 105,542,219 97,778,504 92,004,052 87,292,864 82,284,307 77,542,546 76,649,056 Public Works/Engineering 124,419,828 81,623,328 92,182,528 90,269,718 81,064,072 48,365,008 50,928,686 42,536,770 34,416,628 48,611,443 Community development 23,633,775 24,973,745 7,086,769 4,597,019 4,260,620 4,324,744 4,597,292 5,390,496 4,048,697 3,928,595 Community services 21,077,331 18,477,679 14,835,474 10,832,457 13,648,401 15,348,654 15,439,409 14,443,168 14,190,508 13,619,422 Capital outlay - - - - -
12,422,973 20,640,164 11,990,495 18,772,727 14,692,362 Debt service:
Principal 2,809,425 1,818,822 1,302,474 1,230,000 1,165,000 1,105,000 1,055,000 1,015,000 2,025,000 2,450,000 Interest 2,183,983 2,250,517 2,047,366 1,881,529 2,021,463 2,000,711 2,622,940 2,405,916 2,687,661 1,670,241 Payments on refunded bonds - prior - - 5, 089,012 - - - - - - 3, 924,816 Debt issuance cost - - 477,
600 - - - - 624,
562
Total Expenditures 358,597,352 288,613,257 276,235,892 255,834,678 235,150,973 205,784,442 212,219,588 188,114,433 175,724,094 190,101,127 Excess of revenues
over (under) expenditures 12,061,704 $ 37,111,671 $ 2,475,252 $ 79,889,551 $ 5,870,613 $ 27,347,829 $ 8,435,271 $ 16,688,061 $ 27,367,506 $ (5,219,710)$ Fiscal Year
CITY OF FONTANA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
170
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Other financing sources (uses)
Transfers in 79,575,321 $ 58,958,019 $ 52,345,864 $ 44,655,190 $ 28,172,553 $ 26,675,264 $ 31,648,373 $ 29,113,977 $ 26,797,538 $ 26,579,617 $ Transfers out (79,853,251) (57,774,409) (49,517,194) (42,078,498) (25,905,096) (24,545,777) (29,963,316) (27,373,831) (24,785,743) (24,919,027) Long-term debt issued 161,022 (
748,199) 23,125,000 - - - - - -
37,675,000
Premium on bonds issued 2,459,222 261,790 3,920,250 - - - - - - 3, 429,057
Sale of capital assets 4,116,534 77,886 209,774 11,710,810 674,505 245,183 3,855 13,235 3,184,220 7,011 C
apital lease - - 108,
141 - - - - - - -
Pay
ment to refunded bond escrow agent - - - - - - - - - (
40,526,666)
T
otal other financing sources (uses) 6,458,848 $ 775,087 $ 30,191,835 $ 14,287,502 $ 2,941,962 $ 2,374,670 $ 1,688,912 $ 1,753,381 $ 5,196,015 $ 2,244,992 $ Extraordinary gain/(loss) on dissolution
of redevelopment agency - - - - - - - - - -
N
et change in fund balances 18,520,552 37,886,758 32,667,087 94,177,053 8,812,575 29,722,499 10,124,183 18,441,442 32,563,521 (2,974,718) Debt service as a percentage of noncapital 1.4% 1.4% 1.2% 1.2% 1.4% 1.6% 1.9% 1.9% 3.0% 2.3% expenditures
(modified accrual basis of accounting)
Last Ten Fiscal Years
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
CITY OF FONTANA
171
Total
Total Taxable Direct
Fiscal Residential Commercial Industrial Less: Assessed Tax Year Property Property Prope rty Other Exemptions Value Rate 2024 18,333,904$ 2,091,086 $ 6,721,391 $ 4,281,801 1,255,374 $ 30,172,808 0.2177% 2023 16,977,881 1,877,761 5,569,502 3,822,426 1,228,264 27,019,306 0.2182% 2022 15,528,346 1,795,936 4,793,734 3,155,412 1,247,727 24,025,701 0.2172% 2021 14,609,093 1,702,974 4,221,433 3,176,113 1,206,069 22,503,544 0.2163% 2020 13,789,451 1,653,449 3,865,352 3,035,990 1,184,156 21,160,086 0.2161% 2019 13,105,716 1,512,467 3,269,699 2,909,966 1,131,418 19,666,430 0.2226% 2018 12,119,011 1,424,642 2,495,301 2,790,019 1,107,737 17,721,236 0.2225% 2017 11,467,647 1,367,110 2,337,790 2,728,389 1,081,775 16,819,161 0.2222% 2016 10,881,178 1,330,490 2,154,179 2,682,921 1,066,662 15,982,106 0.2231% 2015 10,323,555 1,293,464 2,065,027 2,588,295 1,045,876 15,224,465 0.2231% Source: San Bernardino County Auditor/Controller
Notes: In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. (in thousands of dollars)
Last Ten Fiscal Years
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
CITY OF FONTANA
172
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Direct Rates:
City basic rate 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032 $ 0.032$ Fontana Unified School District 0.273 0.273 0.273 0.273 0.273 0.273 0.273 0.273 0.273 0.273 Education Revenue Augmentation Fund 0.222 0.222 0.222 0.222 0.222 0.222 0.222 0.222 0.222 0.222 Fontana Fire Protection District 0.186 0.186 0.186 0.186 0.186 0.186 0.186 0.186 0.186 0.186 County of San Bernardino 0.147 0.147 0.147 0.147 0.147 0.147 0.147 0.147 0.147 0.147 Chaffey Community College 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 Inland Empire Utilities Agency- 1969 Annex 0.029 0.029 0.029 0.029 0.029 0.029 0.029 0.029 0.029 0.029 Flood Control 0.026 0.026 0.026 0.026 0.026 0.026 0.026 0.026 0.026 0.026 Others 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 Basic Levy (1) 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Overlapping Rates (2)
Chaffey Community College 0.0100 0.0137 0.0177 0.0111 0.0241 0.0153 0.0088 0.0116 0.0113 0.0109 Chaffey High School 0.0316 0.0294 0.0371 0.0352 0.0375 0.0402 0.0279 0.0319 0.0409 0.0294 Colton Unified School 0.0687 0.0656 0.1081 0.1031 0.1016 0.1116 0.0939 0.1454 0.1169 0.0973 Etiwanda Elementary Bond 0.0238 0.0323 0.0233 0.0283 0.0034 0.0286 0.0169 - - - Fontana Unified School District 0.0354 0.0484 0.0520 0.0671 0.0420 0.0890 0.1113 0.1117 0.1145 0.1384 Metropolitan Water Agency - Original 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Rialto Unified School 0.1556 0.0746 0.0829 0.0805 0.0848 0.0771 0.0957 0.0992 0.1194 0.0655 San Bernardino Community College 0.0452 0.0450 0.0534 0.0651 0.0562 0.0407 0.0376 0.0350 0.0403 0.0393 San Bernardino Valley Muni Water 0.1200 0.1300 0.1300 0.1425 0.1425 0.1525 0.1525 0.1625 0.1625 0.1625 Total Tax Rate 1.4938 1.4425 1.5080 1.5364 1.4956 1.5585 1.5481 1.6008 1.6093 1.5468 City Share of 1% levy per Prop 13 (3) 0.21785 0.21785 0.21785 0.21785 0.21785 0.21785 0.21785 0.21785 0.21785 0.21785 Total Direct Rate (4) 0.2177 0.2182 0.2229 0.2229 0.2228 0.2226 0.2225 0.2222 0.2231 0.2231 Source: San Bernardino County Assessor 2014/15 - 2023/24 Tax Rate Table
CITY OF FONTANA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(Rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (4) T
otal Direct Rate is the weighted average of all individual direct rates for the City of Fontana. (3) City
's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. (2) O
verlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. 173
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Tax Payer Value Rank Value Value Rank Value
Duke Realty LP 694,261,937$ 1 2.30% - -
Rexford Industrial Realty LP 264,118,597 2 0.88% - - GLC Fontanna LLC 227,056,748 3 0.75% 0.00%
San Gabriel Valley Water Company 193,281,094 4 0.64% 151,241,057 1 0.99% Lit Industrial LP 174,171,389 5 0.58% 0.00%
LBA Realty 148,291,341 6 0.49% -
Vintage Park East LLC 140,909,289 7 0.47% 119,590,807 2 0.79% Target Corporation 140,090,622 8 0.46% 87,571,576 3 0.58% Fontana Fulfilment Center ILP LLC 127,000,000 9 0.42% - Idil West Valley Logistics Center LLC 126,408,190 10 0.42% - SC Fontana Development Company LLC - - - 85,821,448 4 0.56% Intex Properties Inland Empire Corp - - - 79,732,857 5 0.52% Francisco Street L P - - - 74,609,000 6 0.49% Bre DDR Crocodile Falcon - - - 69,298,230 7 0.46% James Hardie Building Products Inc - - - 61,544,791 8 0.40% John Hancock Life Insurance Company - - - 56,867,010 9 0.37% 10681 Production Avenue LLC - - - 53,660,534 10 0.35% 2,235,589,207$ 7.41% 839,937,310$ 5.52%
Source: San Bernardino County Assessor 2023/24 and 2014/15 Combined Tax Rolls 2024 2015
CITY OF FONTANA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
174
Fiscal Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years(1) Amount of Levy 2024 225,258,107$ 230,646,962$ 102.39% N/A 245,790,595$ 109.12% 2023 200,945,869 205,420,805 102.23% N/A 215,154,745 107.07% 2022 177,815,170 154,626,525 86.96% N/A 188,891,255 106.23% 2021 165,790,631 163,224,145 98.45% N/A 172,050,509 103.78% 2020 155,079,893 150,276,972 96.90% N/A 160,025,650 103.19% 2019 143,242,302 139,912,871 97.68% N/A 154,079,402 107.57% 2018 127,484,458 123,578,925 96.94% N/A 135,747,922 106.48% 2017 120,165,247 116,284,658 96.77% N/A 125,264,871 104.24% 2016 114,393,058 110,245,843 96.37% N/A 116,422,050 101.77% 2015 108,804,010 100,541,313 92.41% N/A 115,888,404 106.51% 2014 99,428,467 96,197,340 96.75% N/A 100,966,890 101.55% Notes: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies.
Source: San Bernardino Auditor-Controller's Office
CITY OF FONTANA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(2) Due to the dissolution of the former redevelopment agency, the property taxes collected in the former project areas are no longer remitted to the agencies. A
ssembly Bill 1X26 provides that revenues will only be allocated to make payments on the indebtedness; all remaining collections w
ill be distributed to the other taxing entities based on the tax sharing formula. (1) Data provided by the San Bernardino County Assessor's Office for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above schedule.
Fiscal Year of the Levy
Collected within the
Total Collections to Date
175
Business-type
Activities Total Percentage
Fiscal Personal Revenue Leases Payable/ Loan Payable Primary of Personal Per Year Population(1) Income(2) Bonds SBITA SANBAG Term Loan Government Income Capita 2024 215,465 55,293,712$ 1,727,175$ 2,037,010$ 3,947,736$ 63,005,633$ 0.00% 257 2023 213,851 6,340,682,150$ 57,368,689 86,356 2,444,412 4,842,202 64,741,659 1.02% 268 2022 212,809 5,680,510,637 59,449,893 106,709 2,851,815 5,720,869 68,129,286 1.20% 279 2021 213,944 5,432,476,000 38,780,145 - 3,259,217 6,584,027 48,623,389 0.90% 181 2020 213,000 5,061,439,000 40,122,668 - 4,074,021 7,355,897 51,552,586 1.02% 188 2019 212,078 4,775,796,000 41,400,191 - 3,873,854 8,264,879 53,538,924 1.12% 195 2018 212,000 4,444,518,000 42,617,714 - 3,873,854 9,083,112 55,574,680 1.25% 201 2017 212,786 4,159,001,000 43,785,237 - 3,873,854 9,886,898 57,545,989 1.38% 206 2016 209,895 4,013,591,000 44,912,760 - 3,873,854 10,676,491 59,463,105 1.48% 214 2015 204,312 3,963,623,000 47,050,283 - 3,873,854 11,452,143 62,376,280 1.57% 230 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Personal Income amounts for the most recent fiscal year are not available at the issuance of this report. (1) Source: US Census Bureau, most recent American Community Survey (2) Source: US Census Bureau, most recent American Community Survey
CITY OF FONTANA
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
176
Ratio of Net Net
Total Lease Total Bonded Debt Bonded
Fiscal Assessed Revenue Net General to Assessed Debt pe r Year Population(1) Valuation(2)
Bonds Bonded Debt Valuation Capita
2024 215,465 30,172,808,247$ 55,293,712$ 55,293,712 0.18% 257 2023 213,851 27,019,305,360 (3) 57,368,689 57,368,689 0.21% 268 2022 212,809 24,025,701,078 (3) 59,449,893 59,449,893 0.25% 279 2021 213,944 22,503,543,501 (3) 38,780,145 38,780,145 0.17% 181 2020 213,000 21,160,085,508 (3) 40,122,668 40,122,668 0.19% 188 2019 212,078 19,666,430,280 (3) 41,400,191 41,400,191 0.21% 195 2018 212,000 17,721,235,967 (3) 42,617,714 42,617,714 0.24% 201 2017 212,786 16,819,161,359 (3) 43,785,237 43,785,237 0.26% 206 2016 209,895 15,982,106,642 (3) 44,912,760 44,912,760 0.28% 214 2015 204,312 15,224,465,093 (3) 47,050,283 47,050,283 0.31% 230 2014 202,013 13,988,600,102 (3) 53,062,593 53,062,593 0.38% 263 (1) Source: US Census Bureau
(2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.