City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
6) FIDUCIARY FUND LONG-TERM DEBT
The following is a summary of l
ong-term debt for the Successor
Agency Private-purpose Trust Fund:
2004B Tax Allocation Refunding Bonds
In December 2004, the City of Highland Redevelopment Agency issued $3,690,000 Tax Allocation Refunding Bonds Series 2004B. Proceeds from the bonds were used to refund the Agency's Highland Redevelopment
Project Area No. 1, 1994 Tax Allocation Refunding Bonds.
The bonds consist of $2,250,000 of serial bonds and $1,440,000 of term bonds. The serial
bonds accrue interest
at rates between 1.35% and 5.30% and the principal amounts matu re between December 1, 2004 and December
1, 2018 in amounts ranging from $115,000 to $200,000. Term bond s of $1,440,000 accrue interest at 5.65% and
mature on December 1, 2024.
The term bonds maturing in the years 2019 and 2024 are subject to mandatory sinking account redemption on
each December 1, commencing on December 1, 2019 and December 1, 2029, respectively, at a redemption price
equal to the principal amount thereof together with accrued int erest, without premium. The bonds matured during
the fiscal year and the remaining balance is $0.
2015A Tax Allocation Bonds
In February 2015, the Successor Agency to the Highland Redevelo pment Agency issued $12,340,000 Tax
Allocation Refunding Bonds Series 2015A for the purpose of refu nding the outstanding balance of the Tax
Allocation Bonds Series 2004A.
The bonds consist of $8,405,000 of serial bonds and $3,935,000 of term bonds. The serial bonds accrue interest at rates between 2.00% and 5.00% and the principal amounts matu re between December 1, 2015 and
December 1, 2030 in amounts ranging from $180,000 to $890,000.
Beginning Ending Due Within
Balance Additions Deletions Balance One Yea r
Tax Allocation Bonds:
2004B Refunding 275,000
$ -
$ 275,000
$ -
$ -
$
2015A 9,195,000
-
455,000
8,740,000
710,000
Unamortized Premium 621,550
-
58,112
563,438
58,112
2017 Refunding 26,115,000
-
1,335,000
24,780,000
1,385,000
Unamortized Discount (340,358)
-
(24,312)
(316,046)
(24,312)
Total
35,866,192
$
-
$ 2,098,800
$
33,767,392
$
2,128,800
$
58
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
6) FIDUCIARY FUND LONG-TERM DEBT – Continued
Term bonds of $3,935,000 accrue in
terest at 3.5% and mature on
December 1, 2034. At June 30, 2025, the
outstanding balance of the bonds was $8,740,000, with future debt service requirements as follows:
2017 Tax Allocation Refunding Bonds
In September 2017, the Successor
Agency to the Highland Redevel
opment Agency issued $33,515,000 Tax
Allocation Refunding Bonds Series 2017 for the purpose of refunding the outstanding balance of the Tax Allocation Bonds Series 2007. A
s a result, the 2007 bonds are
considered defeased and the liability has been
removed from these financial statements.
The 2017 bonds consist of $11,540,000 of serial bonds and $21,975,000 of term bonds. The serial bonds accrue interest at rates betw
een 1.50% and 3.125% and the princ
ipal amounts mature between February 1,
2019 and February 1, 2027 in amounts ranging from $1,180,000 to $1,420,000. Term bonds of $7,850,000 and $14,125,000, accrue interest at
3.375%, maturing on February 1,
2032 and 3.625%, maturing on February 1,
2038, respectively.
At June 30, 2025, the outstanding balance of the bonds was $24,780,000. Future debt service requirements for the 2017 Bonds are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026
710,000
$
345,875
$
1,055,875
$
2027
750,000
309,375
1,059,375
2028
785,000
271,000
1,056,000
2029
820,000
238,050
1,058,050
2030
850,000
203,475
1,053,475
2031
890,000
159,975
1,049,975
2032
935,000
121,363
1,056,363
2033
965,000
88,113
1,053,113
2034
1,000,000
53,725
1,053,725
2035
1,035,000
18,113
1,053,113
Totals
8,740,000
$
1,809,064
$
10,549,064
$
59
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
6) FIDUCIARY FUND LONG-TERM DEBT - Continued
7) PENSION PLAN
General Information about the De
fined Benefit
Pension Plan
Plan Description
– All qualified permanent and probationary employees are eligi ble to participate in the Public
Agency Cost-Sharing Multiple-Employer Defined Benefit Pension P lan (Plan) administered by the California
Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a miscellaneous risk pool. Plan assets may be used to p ay benefits for any employer rate plan of the
miscellaneous pool. Accordingly, rate plans within the miscell aneous pool are not separate plans under GASB
Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous pool. The City sponsors two rate plans. B
enefit provisions under the Pla
n are established by State statute and City
resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
– The Plan is a cost-sharing multiple-employer defined benefit pension plan administered
by the California Public Employees’ Retirement System (CalPERS) . A full description of the pension plan benefit
provisions, assumptions for funding purposes but not accounting purposes, and membership information is
listed in the June 30, 2023 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained
in Appendix B of the June 30, 2023 actuarial valuation report.
This report is a publicly available valuation report
that can be obtained at CalPERS’
website under Forms and Public
ations.
The Plan’s provisions and benef
its in effect at June 30, 2025,
are summarized as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 1,385,000
$ 862,894
$ 2,247,894
$
2027 1,420,000
821,344
2,241,344
2028 1,465,000
776,969
2,241,969
2029 1,515,000
727,525
2,242,525
2030 1,570,000
676,394
2,246,394
2031 1,625,000
623,406
2,248,406
2032 1,675,000
568,562
2,243,562
2033 1,735,000
512,031
2,247,031
2034 1,800,000
449,138
2,249,138
2035 1,860,000
383,887
2,243,887
2036 2,805,000
316,462
3,121,462
2037 2,910,000
214,781
3,124,781
2038 3,015,000
109,294
3,124,294
Totals 24,780,000
$
7,042,687
$
31,822,687
$
60
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
7) PENSION PLAN - Continued
CalPERS collects employer contributions for the Plan as a perce ntage of payroll for the normal cost portion as
noted in the rates above and as a dollar amount for contributio ns toward the unfunded liability and side fund. The
dollar amounts are billed on a monthly basis. The City’s requi red contribution for the unfunded liability was
$551,604 in fiscal year 2025.
Contributions
– Section 20814(c) of the California Public Employees’ Retirem ent Law requires that the
employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are
determined annually on an actuarial basis as of June 30 by CalP ERS. The actuarially determined rate is the
estimated amount necessary to fi
nance the costs of benefits ear
ned by employees during the year, with an
additional amount to finance any unfunded accrued liability. T he City is required to contribute the difference
between the actuarially determin
ed rate and the contribution ra
te of employees.
Pension Liabilities, Pension Expe
nses and Deferred Outflows/Inf
lows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate shares of the net pension liability of the Plan of $6,230,264.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.
The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by a n actuarial valuation as of June 30, 2023 rolled
forward to June 30, 2024 using standard update procedures. The City’s proportion of the net pension liability
was based on a projection of the City’s long-term share of cont ributions to the pension plan relative to the
projected contributions of all
participating employers, actuari
ally determined. The City’s proportionate share of
the net pension liability as o
f June 30, 2024 and 2025 was as f
ollows:
For the year ended June 30, 2025, the City recognized pension e xpense of $1,322,251. At June 30, 2025, the
City reported deferred outflows
of resources and deferred inflo
ws of resources related to pensions from the
following sources:
Miscellaneous
Miscellaneous PEPRA
Prior to On or after
Hire date
January 1, 2013 January 1, 2013
Benefit formula
2.0% @ 55
2.0% @ 62
Benefit v esting schedule
5 years serv ice 5 years serv ice
Benefit payments
monthly for life
monthly for life
Retirement age
55 62
Monthly benefits, as a % of eligible compensation 1-year average Last 36 Mos. of Serv ice
Required employee contribution rates
7%
8.25%
Required employer contribution rates
13.31% + $546,411 8.18% + $5
,193
Proportion - June 30, 2024 0.12701%
Proportion - June 30, 2025
0.12881%
Change - Increase (Decrease)
0.00180%
61
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
7) PENSION PLAN - Continued
The deferred outflows of resources related to contributions sub sequent to the measurement date of $916,781
will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts
reported as deferred outflows of
resources and deferred inflows
of resources related to pensions will be
recognized as pension expense as follows:
Actuarial Assumptions
– The total pension liabilities in the June 30, 2023 actuarial valuations were determined
using the following actuarial assumptions:
The mortality table used was
developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generati
onal mortality improvement usin
g 80% of Scale MP-2020 published by the Society
of Actuaries. For more details on this table, please refer to t he CalPERS Experience Study and Review of Actuarial
Assumptions report from Novem
ber 2021 that can be found on the
CalPERS website.
Deferred Deferred
Outflows Inflows
Pension contributions subsequent to measurement date 916,781$ - $ Differences between actual and expected experience 538,663
21,018
Changes in assumptions
160,131
-
Differences between employer's contributions
and proportionate share of contributions
257
53,271
Change in employer's proportions
44,083
-
Net differences between projected and actual
earnings on plan investments
358,669
-
Total
2,018,584
$
74,289
$
Year Ending
June 30,
2026 341,295
$
2027 800,939
2028 8,191
2029 (122,911)
2030 -
Thereafter -
Valuation date June 30, 2023
Measurement date
June 30, 2024
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. 62
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
7) PENSION PLAN - Continued
Long-term Expected Rate of Return
- The long-term expected rate of return on pension plan investm ents was
determined using a building-block method in which best-estimate ranges of 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, C alPERS took into account both short-term and
long-term market return expectations as well as the expected pe nsion fund cash flows. Using historical returns
of all the funds’ asset classes, expected compound returns were calculated over the shor
t-term (first 10 years)
and the long-term (11-60 years)
using a building-block approach
. Using the expected nominal returns for both
short-term and long-term, the pr
esent value of benefits was cal
culated for each fund.
The expected rate of return was set by calculating the rounded single equivalent expected return that arrived
at the same present value of benefits for cash flows as the one calculated using both short-term and long-term
returns. The expected rate of return was then set equal to the single equivalent rate calculated above and
adjusted to account for assumed
administrative expenses. The e
xpected real rates of return by asset class are
as follows:
Discount Rate –
The discount rate used to measure the total pension liability f or PERF C was 6.90%. The
projection of cash flows used to determine the discount rate as sumed that contributions from plan members will
be made at the current member co
ntribution rates and that contr
ibutions from employers will be made at
statutorily required rates, act
uarially determined. Based on th
ose assumptions, the Plan’s fiduciary net position
was projected to be available to make all projected future bene fit payments of current plan members. Therefore,
the long-term expected rate of return on plan investments was a pplied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liabi lity to Changes in the Discount Rate
The following presents the City’s proportionate share of the ne t pension liability for the Plan, calculated using
the discount rate for the Plan, a
s well as what the City’s prop
ortionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
As s um ed
As s et Real Return
Asset Class Allocation Real Return (1,2)
Global Equity - Cap-weighted 30% 4.54%
Global Equity - Non-Cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 27.00%
Mortgage-backed securities
5%
50.00%
Investment Grade Corporates
10%
1.56%
High Yield
5%
2.27%
Emerging Market Debt
5%
2.45%
Private Debt
5%
3.57%
Real Assets
15%
3.21%
Leverage
-5%
-0.59%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management St udy
63
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
7) PENSION PLAN - Continued
Pension Plan Fiduciary Net Position
– Detailed information about each pension plan’s fiduciary net position is
available in the separately i
ssued CalPERS financial reports.
Payable to the Pension Plan
-
At June 30, 2025, the City reported no payables to the pension plan, for
outstanding contributions requir
ed for the year ended June 30,
2025.
8) OTHER POSTEMPLOYMENT BENEFITS
General Information About the OPEB Plan
Plan Description
– The City has established the Highland Retiree Healthcare Plan (the Plan), and participates in single-employer defined benefit retiree healthcare plan. A s eparate financial report is not prepared for the
Plan. No assets are accumulat
ed in a trust that meets the crit
eria in paragraph 4 of Statement 75.
Benefits Provided
– Under the Plan, the City pays $200 per month for eligible re tirees’ health coverage,
regardless of classification. Employees are eligible for retir ee health benefits if they retire from the City on or
after age 50 with at least 5 years of service, and are eligible for a PERS pension. The City benefit is paid for
the lifetime of the retiree. The
City also pays the PEMCHA administrative fee (0.33% of premium for 2024/25).
The City does not provide
dental and vision benefits.
Employees Covered by Benefit Terms –
As of the June 30, 2023 actuarial valuation, the following curr ent
and former employees were cove
red by the benefi
t terms under th
e Plan:
Contributions –
The City contributes to the Pl
an on a pay-as-yo
u-go basis.
1% Decrease 5.90%
Net Pension Liability 10,027,787
$
Current Discount Rate
6.90%
Net Pension Liability
6,230,264
$
1% Increase
7.90%
Net Pension Liability
3,104,343
$
Retirees or spouses of retirees currently receiving benefits 11 Activ e employees
38 Total
49 64
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
8) OTHER POST EMPLOYMENT BENEFITS – Continued
Total OPEB Liability –
The City’s total OPEB liability was measured as of June 30, 202 4 and was determined
by an actuarial valuation dat
ed June 30, 2023 using the entry a
ge, level percent of pay cost method, based on
the following actuarial methods and assumptions:
Discount Rate – The discount rate used to measur e the total OPEB liability was 3.86 percent and is based on a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher.
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB L
iability to Changes in the Disco
unt Rate -
The following presents the total
OPEB liability of the City if it were calculated using a discou nt rate that is 1-perc
entage-point lower or 1-
percentage-point higher than
the current discount rate:
Valuation Date June 30, 2023
Actuarial Cost Method Entry Age, Lev el Percent of Pay
Mortality
Pre-retirement: Mortality Rates for Public Agency
Miscellaneous from CalPERS Experience Study (2000-2019) Post-retirement: Mortality Rates for Public Agency
Miscellaneous from CalPERS Experience Study (2000-2019) Health Care Trend Rate 5.50% for 2024, 5.25% for 2025-2029, and 5.00% for 2030-2039, 4.75% for 2040-2049, 4.50%
for 2050-2069, and 4.00% for 2070 and later years; Medicare ages 4.50% for 2023-2029 and 4.00% for 2030 and years later Inflation Rate
2.50%
Salary Increases
3.00%
Discount Rate
3.86% - Fidelity GO AA 20 Years Municipal Index -
2023
3.97% - Fidelity GO AA 20 Years Municipal Index - 2024
Total OPEB
Liability (TOL)
Balance at June 30, 2024 (June 30, 2023 measurement date) 1,107, 609
$
Changes in the year:
Service cost
86,780
Interest on the total OPEB liability
45,400
Difference between expected and actual experience
-
Changes in assumptions or other inputs
(14,626)
Benefit payments, including implicit subsidy
(36,783)
Net changes
80,771
Balance at June 30, 2025 (June 30, 2024 measurement date) 1,188, 380
$
1% Decrease Discount Rate 1% Increase
(2.97%) (3.97%) (4.97%)
Total OPEB liability 1,315,430
$ 1,188,380
$ 1,070,419
$
65
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
8) OTHER POST EMPLOYMENT BENEFITS – Continued
Sensitivity of the Total OPEB Lia
bility to Changes in the Healt
hcare Cost Trend Rates -
The following
presents the total OPEB liability of the City, as well as what the City’s total OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
OPEB Expense and Deferred Outflow
s/Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense of $120,703. At June 30, 2025, the City reported deferred outflows and def
erred inflows related to OPEB
from the following sources:
The $37,446 reported as deferred outflows related to contributi ons subsequent to the June 30, 2024 measurement
date will be recognized as a reduc
tion of the total OPEB liabil
ity during the fiscal ending June 30, 2026. Other
amounts reported as deferred outflows and inflows related to OP EB will be recognized as expense as follows:
9) RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and natural disasters for which the City obtains insurance coverage.
The City is a member of the California Intergovernmental Risk A uthority (CIRA), a joint
powers authority, which
provides joint protection programs for public entities covering automobile, general liability, errors and omission
losses, workers' compensation, and property claims. Under the p rogram, the City has a $100,000 retention limit
similar to a deductible with CIR
A being responsible for losses
above that amount up to $1 million.
CIRA has additional coverage of $34 million in excess of its $1 million retention limit t hrough affiliated risk
management authorities. CIRA also provides $1 billion aggregate per occurrence property coverage to its
members with such coverage provided by purchased insurance.
1% Decrease Trend Rate 1% Increase
Total OPEB liability 1,050,256
$ 1,188,380
$ 1,365,230
$
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB Contributions Subsequent to the Measurement Date 37,446 $ -
$
Difference between expected and actual experience
-
53,786
Changes of Assumptions
97,401
161,830
Total
134,847
$
215,616
$
Year Ending
June 30,
2026 (12,841)
$
2027 (20,773)
2028 (36,220)
2029 (37,268)
2030 (9,021)
Thereafter (2,092)
66
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
9) RISK MANAGEMENT - Continued
Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs).
The result of the process to estimate the claims liability is n ot an exact amount as it depends on many complex
factors, such as inflation, changes in legal doctrines, and dam age awards. Accordingly, claims are reevaluated
periodically to consider the effects of economic and social fac tors. The estimate of the cl
aims liability also includes
amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Es timated recoveries, for example from salvage or
subrogation, are another component o
f the claims liability esti
mate.
CIRA covers workers' compensation
claims up to its self-insuran
ce limit of $500,000. The
Local Agency Workers
Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to
CIRA and may share in any surplus revenues or may be required t o pay additional assessments based upon
CIRA's operating results. Financial statements of CIRA may be obtained from its administrative office located at 2230 East Bidwell Street, Folsom, California, 95630.
Additional claims and lawsuits have been filed against the City in the normal course of business. It is reasonably
possible that the City may be liable for claims not to exceed $100,000. In the opinion of management, the resolution of these matters will
not have a material adverse effect on the financial condition of the government.
The workers' compensation and general liability claims administ rators have estimated liabi
lities for probable future
payments including an estimate fo
r claims incurred but not repo
rted. Claims outstanding as of June 30, 2025, and
changes during the past fisca
l year was as follows:
10) DEBT ISSUED WITHOUT GOVERNMENT COMMITMENT
2001 Special Tax Bonds (Mello-Roos):
On September 1, 2001, the City of Highland Community Facilities District No. 2001-1 issued a Special Tax Bonds, Series 2001 in the amount of $6,655,000. The bonds were issued to finance various public
improvements located within the District and to prepay special taxes levied by CFD 90-1. In 2011, the Series
2001 bonds were refunde
d with the issuance o
f the Special Tax R
efunding Bonds, Series 2011.
In June, 2021, the series 2011 bonds were refunded with the iss uance of the CFD 2001-1 Special Tax
Refunding Bond, Issue of 2021.
General Liability Claims 185,000 $
Total
185,000
$
Claims Payable Claims Payable
Beginning End
Fiscal Year of Year Additions Deletions of Year
2024-25 151,000
$ 59,171
$ 25,171
$ 185,000
$
2023-24 149,000
11,858
9,858
151,000
67
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
10) DEBT ISSUED WITHOUT GOVER NMENT COMMITMENT - Continued
The special term bonds mature on September 1, 2028. Interest ra tes on the bonds are 1.545% with annual principal and interest payments ranging from $343,141 to $353,3
29. Principal and interest payments on the tax
bonds are payable solely from spe
cial tax assessments to be levied and collected from property owners within the District. It is management'
s determination that the City of
Highland is in no way liabl
e for repayment, but is
only acting as agent for the property owners in collecting the assessments, forwarding the collections to
bondholders, and initiating forecl
osure proceedings, if appropr
iate.
At June 30, 2025, the amount
outstanding wa
s $1,345,000.
11) COMMITMENTS AND CONTINGENCIES
The City is a defendant in various litigations in the normal co urse of City operations, which in the opinion of management will not significantly
adversely affect the City's f
inancial position. The City participates in various
federal and state programs. Thes
e programs are subject to exam
ination by the grantors, and the amount of
expenditures which may be disallowed by the granting agencies, if any, cannot be determined at this time.
12) LEASES
Lease Receivable -
In prior fiscal years, the City entered into various land lease agreements with third parties to lease pieces of land owned by the City. The initial lease terms ranged from 20 to 55 years. The City currently
receives monthly payments from all leases of $21,694. The City recognized $150,748 in lease revenue and
$109,580 in interest revenue during the current fiscal year rel ated to the various leases. As of June 30, 2025, the
City’s receivable for lease pa
yments was $1,982,627. Also, the
City has a deferred inflow of resources associated
with leases that will be recogni
zed as revenue over the lease t
erms. As of June 30, 2025, the balance of the
deferred inflow of resources was $1,982,627.
13) FUND BALANCE
Fund balances in governmental funds are reported in classificat ions that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints o n the specific purposes for which amounts in
those funds can be spent.
The City considers restricted fund balance to have been spent f irst when an expenditure is incurred for purposes
for which both restricted and un
restricted fund balance is avai
lable. Similarly, when an expenditure is incurred
for purposes for which amounts in any of the unrestricted class ifications of fund balance could be used, the City
considers committed amounts to be reduced first, followed by as signed amounts and then unassigned amounts.
The following classifications describe the relative strength of the spending constraints placed on the purposes
for which resource
s can be used:
Nonspendable Fund Balance - This classification includes amount s that cannot be spent because they are either (a) not in spendable form (such as inventory) or (b) leg ally or contractually required to be maintained intact (such as endowments).
Restricted Fund Balance - This c lassification includes amounts that can be spent only for specific purposes stipulated by constitution, ext ernal resource providers or through enabling legislation. If the Council action limiting the use of funds is included in the same action (legis lation) that created (enables) the funding source,
then it is restricted.
68
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
13) FUND BALANCE - Continued
Committed Fund Balance - This classification includes amounts t hat can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the end
of the fiscal year, commit fund balance. Once adopted, the limi tation imposed by the resolution remains in place
until a similar action is taken to
remove or revise the limitat
ion.
Assigned Fund Balance - This classification includes amounts th at are intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The City Council has by resolution authorized the City Manager to assign fund balance. The City Council may also assign fund balance. Unlike commitments, an additional action
does not normally have to be
taken for the removal of an assignment.
Unassigned Fund Balance - This classification includes the residual balance for the City's general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to r
eport a deficit balance resulti
ng from overspending for specific purposes for which
amounts had been restricted, committed or assigned.
The City’s fund balances at June 30, 2025, are presented below:
Total
Non-major Total
Major Housing Capital Development Governmental Governmental General Grants Grants Authority Improvements Impact Fees Funds Funds Nonspendable:
Prepaid Items 18,027
$ -
$ -
$ -
$ -
$ -
$ -
$ 18,027
$
Long-term Advances & Loans 402,975
-
-
-
-
-
-
402,975
Restricted:
Public Safety Operations -
-
-
-
-
-
52,746
52,746
Highways and Street Projects -
11,044,733
-
-
4,762,369
-
10,104,919
25,912,021
Parks and Recreation -
-
-
-
-
-
470,045
470,045
Capital Improvements -
-
-
-
-
25,811,729
7 , 6 7 7 , 7 7 5
33,489,504
Low and Moderate Income
Housing Activ ities -
-
-
4,681,997
-
-
-
4,681,997
Assigned:
Public Safety:
Vehicle Replacement
5,425,000
-
-
-
-
-
-
5,425,000
Equipment Replacement 700,000
-
-
-
-
-
-
700,000
Other Purposes:
Vehicle Replacement
1,175,000
-
-
-
-
-
-
1,175,000
Equipment Replacement 525,000
-
-
- - - - 525,000 Compensated Absences 781,075
-
-
-
-
-
-
781,075
Net Pension Liability
4,827,724
-
-
-
-
-
-
4,827,724
OPEB Liability
834,067
-
-
-
-
-
-
834,067
Capital Projects
1,415,487
-
-
-
-
-
10,737,311
12,152,798
Technical Enhancements 400,000
-
-
-
-
-
-
400,000
Service Enhancements
706,144
-
-
-
-
-
-
706,144
City Hall
1,000,000
-
-
-
-
-
-
1,000,000
Fire Facilities
4,300,000
-
-
-
-
-
-
4,300,000
Unassigned
6,893,562
-
(559,090)
-
-
-
(170,483)
6,163,989
Total Fund Balance (Deficit) 29,404,061
$
11,044,733
$
(559,090)
$
4,681,997
$
4,762,369
$
25,811,729
$
28,872,313
$
104,018,112
$
Capital Projects Funds
Special Revenue
69
City of Highland
Notes to Financial Statements
Year Ended J
une 30, 2025
14) FUND DEFICITS
Deficits in nonmajor funds at June 30, 2025 included the follow ing: Article 3 Special Revenue Fund - $154,013
and CDBG Fund - $16,470. These deficits are due to the applicat ion of the availability period in governmental
funds for grants due from other
governments. The related reven
ues are expected to be received and
recognized in the subs
equent fiscal year.
15) CHANGES WITHIN THE FINANCIAL REPORTING ENTITY
During the year, the following changes within the financial rep orting entity occurred as the result of a previously
reported nonmajor fund now reported as a major fund due to quan titative factors.
Newly major
Governmental
Fund
Other
Housing
Governmental
Authority
Funds
Net position or fund balances, Beginning
of Year, As prev iously reported
-
$
4,572,307
$
Change within the reporting entity
4,572,307
(4,572,307)
Net position or fund balances, Beginning
of Year, As restated
4,572,307
$
-
$
Reporting Units Affected by Adjustments to
and Restatements of Beginning Balances
70
REQUIRED SUPPLEMENTARY INFORMATION
71
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 25,557,970
$ 25,586,600
$ 25,181,249
$ (405,351)
$
Licenses and Permits 753,200 753,200 1,322,308 569,108
Intergovernmental 315,660 315,660 465,201 149,541
Charges for Services 2,074,065 2,074,065 1,989,760 (84,305) Fines and Forfeitures 40,000 40,000 24,647 (15,353)
Investment Income 480,495 505,495 1,657,976 1,152,481
Rental Income 140,520
140,520
152,501 11,981
Miscellaneous 34,000 34,000 145,918 111,918
Total Revenues 29,395,910 29,449,540 30,939,560 1,490,020 EXPENDITURES:
Current:
General Government:
City Council 219,785 219,785 217,847 1,938
City Clerk 535,715 535,715 458,723 76,992
General Government 760,880 1,082,510 898,346 184,164
Personnel 88,725 88,725 70,262 18,463
Finance 730,140 730,140 690,689 39,451
Public Safety:
Police Department 13,766,035 13,819,665 9,348,301 4,471,364 Animal Control 506,380 506,380 448,758 57,622
Fire Department 4,871,040 4,896,465 3,115,137 1,781,328 Public Works:
Engineering 906,450 906,450 645,284 261,166
Parks 1,303,860 1,303,860 1,226,727 77,133
Graffiti 182,460 182,460 141,496 40,964
Trails 14,500 14,500 4,028 10,472
Community Development:
Planning 972,465 972,465 928,087 44,378
Public Services 736,690 736,690 684,556 52,134
Building and Safety 737,065 737,065 850,660 (113,595)
Code Enforcement 608,235 608,235 580,635 27,600
Community Volunteer Services 131,235 131,235 126,338 4,897 Capital Outlay -
73,010
73,007
3 Total Expenditures 27,071,660 27,545,355 20,508,881 7,036,474 Excess (Deficiency) of Revenues
over Expenditures 2,324,250 1,904,185 10,430,679 8,526,494 OTHER FINANCING SOURCES (USES):
Transfers In -
-
-
-
Transfers Out (2,318,940)
(5,821,038)
(4,932,746) 888,292
Total Other Financing Sources (Uses) (2,318,940) (5,821,038) (4,932,746) 888,292 Net Change in Fund Balance
5,310 (3,916,853) 5,497,933 9,414,786
Fund Balance, Beginning of Year
23,906,128 23,906,128 23,906,128
-
Fund Balance, End of Year
23,911,438
$
19,989,275
$
29,404,061
$
9,414,786
$
City of Highland
Budgetary Comparison Schedule By Department
Budget and Actual - General Fund
Year Ended June 30, 2025
Budgeted Amounts
72
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 3,201,000
$ 3,201,000
$ 1,720,584
$ (1,480,416)
$
Investment Income -
-
-
-
Miscellaneous 35,000
35,000
-
(35,000)
Total Revenues 3,236,000 3,236,000 1,720,584 (1,515,416) EXPENDITURES:
Current:
Public Works -
-
24,007 (24,007)
Capital Outlay 7,208,000 7,208,000 793,769 6,414,231
Total Expenditures 7,208,000 7,208,000 817,776 6,390,224 Excess (Deficiency) of Revenues
over Expenditures (3,972,000) (3,972,000) 902,808 4,874,808 OTHER FINANCING SOURCES (USES):
Transfers In -
-
-
-
Transfers Out -
-
-
-
Total Other Financing Sources (Uses) -
-
-
-
Net Change in Fund Balance (3,972,000) (3,972,000) 902,808 4,874,808 Fund Balance, Beginning of Year 10,141,925 10,141,925 10,141,925 -
Fund Balance, End of Year 6,169,925
$ 6,169,925
$ 11,044,733
$ 4,874,808
$
City of Highland
Budgetary Comparison Schedule
Budget and Actual - Grants
Year Ended June 30, 2025
Budgeted Amounts
73
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 8,091,500
$ 8,091,500
$ 7,853,518
$ (237,982)
$
Miscellaneous -
-
-
-
Total Revenues 8,091,500 8,091,500 7,853,518 (237,982)
EXPENDITURES:
Current:
General Government 1,000
-
-
-
Public Safety 1,162,500
4,579,065
4,578,056
1,009
Public Works -
-
14,873 (14,873)
Community Development 5,000
1,251,845
1,240,950
10,895
Capital Outlay 6,923,000 6,923,000 1,065,695 5,857,305
Total Expenditures 8,091,500 12,753,910 6,899,574 5,854,336 Excess (Deficiency) of Revenues
over Expenditures -
(4,662,410)
953,944
5,616,354
OTHER FINANCING SOURCES (USES):
Transfers In -
-
-
-
Transfers Out -
-
-
-
Total Other Financing Sources (Uses) -
-
-
-
Net Change in Fund Balance -
(4,662,410)
953,944 5,616,354
Fund Balance, Beginning of Year (1,513,034)
(1,513,034)
(1,513,034)
-
Fund Balance, End of Year (1,513,034)
$ (6,175,444)
$ (559,090)
$ 5,616,354
$
Budgeted Amounts
City of Highland
Budgetary Comparison Schedule
Budget and Actual - Major Grants
Year Ended June 30, 2025
74
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for Services 4,255
$ 4,255
$ 763
$ (3,492)
$
Investment Income 117,750
117,750
219,338
101,588
Rental Income 120,000
120,000
120,000
-
Miscellaneous 4,600
4,600
4,599
(1)
Total Revenues 246,605 246,605 344,700
98,095
EXPENDITURES:
Current:
Community Development 260,130
260,130
235,010
25,120
Total Expenditures 260,130
260,130
235,010
25,120
Excess (Deficiency) of Revenues
over Expenditures (13,525) (13,525) 109,690
123,215
Fund Balance, Beginning of Year 4,572,307 4,572,307 4,572,307 -
Fund Balance, End of Year 4,558,782$ 4,558,782 $ 4,681,997 $ 123,215 $ Budgeted Amounts
City of Highland
Budgetary Comparison Schedule
Budget and Actual - Housing Authority
Year Ended June 30, 2025
75
City of Highland
Required Supplementary Information
Year Ended June, 2025
2024 2023 2022
Total OPEB Liability
Service cost
86,780
$
87,738
$
104,696
$
Interest on total OPEB liability
45,400
41,891
25,612
Difference between expected and actual experience
-
(67,484)
-
Changes in Assumptions
(14,626)
18,954
(270,340)
Benefit payments, including implicit subsidy
(36,783)
(41,623)
(41,944)
Net change in total OPEB liability
80,771
39,476
(181,976)
Total OPEB liability - beginning
1,107,609
1,068,133
1,250,109
Total OPEB liability - ending
1,188,380
$
1,107,609
$
1,068,133
$
Covered-employee payroll
3,625,005
$
3,319,012
$
3,142,359
$
Total OPEB liability as a percentage of
covered-employee payroll
32.78%
33.37%
33.99%
*Fiscal year 2018 was the first year of implementation; therefore, 10 years of information are not yet available.
Notes to the Schedule of Changes in the City's Total OPEB Liability No assets are accumulated in a trust that meets the criteria in GASBS NO. 75, paragraph 4, to pay related benefits.
Benefit Changes:
None
Changes in Assumptions:
In 2019, the accounting discount rate changed from 3.62% to 3.13%. In 2020, the accounting discount rate changed from 3.13% to 2.45%. In 2021, the accounting discount rate changed from 2.45% to 1.92%. In 2022, the accounting discount rate changed from 1.92% to 3.69%. In 2023, the accounting discount rate changed from 3.69% to 3.86%. In 2024, the accounting discount rate changed from 3.86% to 3.97%.
Measurement Period
Schedule of Changes in Total OPEB Liability
and Related Ratios - Last Ten Fiscal Years*
76
2021 2020 2019 2018 2017
87,235
$
66,100
$
57,152
$
25,712
$
24,963
$
27,404
29,999
30,820
25,599
25,002
(8,350)
-
(18,868)
(40,757)
-
134,241
83,368
65,412
-
-
(43,181)
(37,784)
(35,035)
(33,347)
(28,484)
197,349
141,683
99,481
(22,793)
21,481
1,052,760
911,077
811,596
834,389
812,908
1,250,109
$
1,052,760
$
911,077
$
811,596
$
834,389
$
3,119,466
$
2,858,967
$
2,811,994
$
2,668,338
$
2,668,273
$
40.07%
36.82%
32.40%
30.42%
31.27%
Measurement Period
77
City of Highland
Required Supplementary Information
Year Ended J
une 30, 2025
Notes to the Schedule of the City’s Proportionate Share of the Net Pension Liability
Benefit Changes:
None
Changes in Assumptions:
In 2017, the accounting discount rate changed from 7.65% to 7.1 5%. In 2022, the
accounting discount rate c
hanged from 7.15% to 6.90%.
Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Cov ered Pension Liability a % of the Total
Measurement Date Liability Pension Liability Payroll as a % of Payr oll Pension Liability
2024
0.12881% 6,230,264
$
3,935,612
$
158.30%
77.86%
2023
0.12701% 6,350,964
3,319,012
191.35%
75.88%
2022
0.12514% 5,855,448
3,142,359
186.34%
76.27%
2021
0.04664% 2,522,435
3,119,466
80.86%
88.91%
2020
0.04632% 5,040,141
2,858,967
176.29%
76.22%
2019
0.04593% 4,706,642
2,811,994
167.38%
76.48%
2018
0.04531% 4,366,668
2,668,338
163.65%
77.17%
2017
0.04585% 4,547,512
2,668,273
170.43%
74.87%
2016
0.04564% 3,949,652
2,518,215
148.02%
75.23%
2015
0.04548% 3,121,917
2,437,659
128.07%
78.40%
Schedule of the City's Proportionate Share of the Net Pension L iability
Las t 10 Years
78
City of Highland
Required Supplementary Information
Year Ended J
une 30, 2025
Notes to the Schedule of Plan Contributions
Valuation Date: 6/30/2014, 6/30/2015, 6/30/2016, 6/30/2017, 6/3 0/2018, 6/30/19, 6/30/20, 6/30/21, 6/30/22,
6/30/23
Contributions in
Relation to the
Contractually Actuarially Contribution Contributions
Required Determined Deficiency/ Covered as a % of
Fiscal Year Contributions Contributions (Excess) Payroll Covered Pay roll
2025 916,781
$ (916,781)
$ -
$ 3,648,955
$ 25.12%
2024 836,730
(836,730)
-
3,935,612
21.26%
2023 809,172
(809,172)
-
3,319,012
24.38%
2022 748,452
(748,452)
-
3,142,359
23.82%
2021 728,478
(728,478)
-
3,119,466
23.35%
2020 669,787
(669,787)
-
2,858,967
23.43%
2019 594,646
(594,646)
-
2,811,994
21.15%
2018 515,418
(515,418)
-
2,668,338
19.32%
2017 483,969
(483,969)
-
2,668,273
18.14%
2016 445,379
(445,379)
-
2,518,215
17.69%
Schedule of Pension Plan Contributions
Las t 10 Years
79
City of Highland
Notes to Required Suppl
ementary Information
Year Ended J
une 30, 2025
Budgetary Information
The City adopts an annual budget p
repared on the modified accru
al basis for its governmental funds (e.g., General
Fund, Special Revenue Funds, and Capital Projects Funds), and o n an accrual basis for its Internal Services Funds,
which is consistent with generally accepted accounting principl es (GAAP). The City Manager is required to prepare
and submit to the City Council t
he annual budge
t of the City an
d administer it after adoption.
A two-year budget was adopted by
City Council in June 2023 for
fiscal years 2023-24
and 2024-25. City Manager
approval is required for budget revisions within a department a nd City Council approval is required for budget
revisions that affect the total appropriations of a department.
Every fund, except for the General Fund and Capital
Improvement Capital Projects Fund, is considered a department.
For each department, total expenditures may not
legally exceed total appropriations. All annual appropriations lapse at fiscal year-end. Budgeted expenditure
amounts in the General Fund represent original appropriations adjusted by $473,695 for supplemental appropriations during the
year ended June 30, 2025.
80
SUPPLEMENTARY INFORMATION
81
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Investment Income 50,000
$ 419,622
$ 369,622
$
Miscellaneous -
7,698
7,698
Total Revenues 50,000
427,320 377,320
EXPENDITURES:
Current:
Public Works 304,560
231,788
72,772
Capital Outlay 1,306,010 1,318,655 (12,645)
Total Expenditures 1,610,570 1,550,443 60,127
Excess (Deficiency) of Revenues
over Expenditures (1,560,570)
(1,123,123)
437,447
OTHER FINANCING SOURCES (USES)
Transfers Out -
-
-
Total Other Financing Sources (Uses) -
-
-
Net Change in Fund Balance (1,560,570) (1,123,123) 437,447 Fund Balance, Beginning of Year 5,885,492
5,885,492
-
Fund Balance, End of Year 4,324,922
$ 4,762,369
$ 437,447
$
City of Highland
Budgetary Comparison Schedule
Budget and Actual - Capital Improvements
Year Ended June 30, 2025
82
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Charges for Services 500,000
$ 10,689,435
$ 10,189,435
$
Miscellaneous -
-
-
Investment Income 60,000
767,230 707,230
Total Revenues 560,000 11,456,665 10,896,665
EXPENDITURES:
Current:
Public Works -
-
-
Capital Outlay 1,032,500
281,952 750,548
Total Expenditures 1,032,500 281,952 750,548
Excess (Deficiency) of Revenues
over Expenditures (472,500)
11,174,713
11,647,213
OTHER FINANCING SOURCES (USES)
Issuance of Debt -
71,745
71,745
Total Other Financing Sources (Uses) -
71,745
71,745
Net Change in Fund Balance (472,500) 11,246,458 11,718,958 Fund Balance, Beginning of Year 14,565,271
14,565,271
-
Fund Balance, End of Year 14,092,771
$ 25,811,729
$ 11,718,958
$
City of Highland
Budgetary Comparison Schedule
Budget and Actual - Development Impact Fees
Year Ended June 30, 2025
83
NON-MAJOR GOVERNMENTAL FUNDS
84
City of Highland
Non-major Governmental Funds
Special Revenue Funds
The following Special Revenue Funds have been classified as oth er governmental funds in the accompanying
financial statements:
Measure I - In June 1990, the taxpayers voted for added taxes o n gasoline to provide additional monies by
approving a one-half cent sales tax increase. In 2004, the taxp ayers voted to reauthorize this tax until 2040.
These funds are kept locally for major road and transportation expenses and are disbursed to the City by the
San Bernardino County Transpor
tation Authority (SBCTA).
Traffic Safety - This fund accounts for the financial transactions as prescribed by the State of California statute on California Vehicle Code Fines. Revenues are collected by the County and remitted to the City for expenditures related to Traffic
Safety such as crossing guards
and traffic safety improvements.
Gas Tax Fund- This fund accounts for the construction and maint enance of the roads and related road
operations in the City. Financing is provided by the City's sha re of state gasoline taxes from the State of California Transportation Departm
ent. This fund also accounts f
or Prop 1B funds.
Article 3 - These are State f
unds provided through SBCTA as gra
nts, and are to be used for bikeways &
pedestrian ways.
Community Development Block Grant (CDBG) - Received from the Co unty of San Bernardino. The grants are
used to develop a viable urban community by providing decent ho using and a suitable living environment. The City accomplishes this by providing properly maintained roads a nd taking care of target areas such as Ward
Street and Cunningham Street throu
gh code enforcement services
and neighborhood revitalization.
Developer Fees - These are fees collected from developers to fi nish tracts with street lights, trees, street
widening, signals, etc., to be done at a later time when areas are totally developed.
Landscape Maintenance District - Different areas of the City ha ve been placed into the Landscape
Maintenance District to main tain the landscaping surrounding a particular tract of homes. These funds are used to maintain that level of s
ervice that was previously prov
ided by the developer.
Street Light District - This is
a citywide assessment for servi
ce. These funds are collected to maintain street
lights throughout the City. The Ci ty adds street lights as the need arises.
Community Trails District - This is funded by assessments to pa rticular property owners who have access to
the trails for usage by bicycles, horses, and citizens.
Parks Maintenance District - Certain areas of the City that hav e access to the Canyon Oaks Park, Cunningham
Park, Oak Creek Park & Seeley Park have been placed into the Pa rks Maintenance District. This assessment is for the maintenance of the parks.
Air Quality Management District (AQMD) - This fund is used to a ccount for the City's share of vehicle
registration fees that the State of California has allocated to address air quality concerns in Southern California.
These monies are to be used in air quality maintenance programs locally and/or regionally.
85
City of Highland
Non-major Governmental Funds
Special Revenue Funds - Continued
Citizens Option for Public Safety Program (COPS) - This fund is used for front line police services including
anti-gang and community crime prevention programs.
Street and Storm Drain Maintenance District - This is funded by special assessments for
street and storm drain
maintenance within a tract.
Justice Assistance Grant (JAG)
- This grant is funded by the U.
S. Department of Justice for local law
enforcement purposes. This grant mainly aids in equipment purch ases and special project over-time.
Paramedic Department - This fund accounts for the monies receiv ed through the medic tax. The medic tax
partially funds the paramedic pr ogram. The City contracts with the State (Cal-Fire) for this service.
CFD Maintenance - This fund accounts for CFD funds to be used t o maintain the trails, access roads, parks,
storm water facilities, stree tlights, parkw ays and medians.
Capital Projects Funds
The following Capital Projects Funds have been classified as ot her governmental funds in the accompanying
financial statements:
General Capital Financing Capital Projects Fund - This fund is used to match potential competitive grants and fund future capital projects.
Community Facilities District - T
he Greenspot Corridor (CFD 90-
1) in the east end of the City has been placed
into a CFD (Mello-Roos) to provi de needed infrastructure, housi ng, and commercial retail growth to that area.
Also to be provided are police and fire services. Tract 14326 ( CFD 2001-1) is a residential Community Facilities
District, as is Trac
t 17682 (CFD
2007-1).
86
Traffic Developer
Measure I Safety Gas Tax Article 3 CDBG Fees
ASSETS
Cash and Investments
5,314,593
$
-
$ 3,610,337
$
-
$
-
$ 7,607,233
$
Receivables:
Accounts
-
-
-
-
-
-
Interest
42,929
-
18,912
-
-
71,691
Property Taxes
-
-
-
-
-
-
Loans
-
-
-
-
-
-
Leases
-
-
-
-
-
-
Due From Other Governments
271,291
3,199
420,005
154,013
45,281
-
Advance to Successor Agency
-
-
-
-
-
-
Total Assets
5,628,813
$
3,199
$
4,049,254
$
154,013
$
45,281
$
7,678,924
$
LIABILITIES
Accounts Payable
578,493
$
-
$ 191,830
$
25,900
$
13,957
$
-
$
Accrued Liabilities
-
-
25,082
-
-
1,149
Retention Payable
36,806
-
7,251
1,344
-
-
Due to Other Funds
-
3,199
-
126,769
31,700
-
Total Liabilities
615,299
3,199
224,163
154,013
45,657
1,149
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
-
-
-
154,013
16,094
-
Lease Related
-
-
-
-
-
-
Total Deferred Inflows of Resources
-
-
-
154,013
16,094
-
FUND BALANCES (DEFICITS)
Nonspendable
-
-
-
-
-
-
Restricted
5,013,514
-
3,825,091
-
-
7,677,775
Assigned
-
-
-
-
-
-
Unassigned
-
-
-
(154,013)
(16,470)
-
Total Fund Balances 5,013,514 - 3,825,091 (154,013) (16,470) 7,677,775 Total Liabilities, Deferred Inflows
and Fund Balances
5,628,813
$
3,199
$
4,049,254
$
154,013
$
45,281
$
7,678,924
$
City of Highland
Combining Balance Sheet
Non-major Governmental Funds
Special Revenue
June 30, 2025
87
Landscape Street Community Parks Street and Justice
Maintenance Light
Trails Maintenance
Storm Drain Assistance
District District District District AQMD COPS Maintenance Grant 40,719
$
47,071
$
81,189
$
328,064
$
393,721
$
-
$ 852,128
$
73,719
$
-
-
-
-
-
-
-
-
-
-
-
2,526
3,751
-
12,954
-
6,099
3,978
113
1,237
-
-
212
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,380
-
-
-
-
-
-
-
-
-
-
-
46,818
$
51,049
$
81,302
$
331,827
$
416,852
$
-
$ 865,294
$
73,719
$
43,955
$
51,049
$
-
$
7,561
$
14,725
$
-
$
900
$
20,973
$
2,863
-
-
2,863
-
-
207
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46,818
51,049
-
10,424
14,725
-
1,107
20,973
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81,302
321,403
402,127
-
864,187
52,746
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81,302
321,403
402,127
-
864,187
52,746
46,818
$
51,049
$
81,302
$
331,827
$
416,852
$
-
$ 865,294 $ 73,719 $
(Continued)
Special Revenue
88
Total
General Community Non-major
Paramedic CFD Capital Facilities Governmental
Department Maintenance Financing District Funds
ASSETS
Cash and Investments 548,357
$ 66,183
$ 10,634,309
$ -
$ 29,597,623
$
Receivables:
Accounts -
14,207
63,496
9,776
87,479
Interest -
-
110,135
-
262,898
Property Taxes -
-
-
14,227
25,866
Loans -
-
-
-
-
Leases -
-
-
-
-
Due From Other Governments -
-
-
-
913,169
Advance to Successor Agency -
-
-
-
-
Total Assets 548,357
$ 80,390
$ 10,807,940
$ 24,003
$ 30,887,035
$
LIABILITIES
Accounts Payable 548,357
$ 15,300
$ 68,940
$ 14,227
$ 1,596,167
$
Accrued Liabilities -
-
1,689
-
33,853
Retention Payable -
-
-
-
45,401
Due to Other Funds -
-
-
7,526
169,194
Total Liabilities 548,357
15,300
70,629
21,753
1,844,615
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues -
-
-
-
170,107
Lease Related -
-
-
-
-
Total Deferred Inflows of Resources
-
-
-
-
170,107
FUND BALANCES (DEFICITS)
Nonspendable
-
-
-
-
-
Restricted
-
65,090
-
2,250
18,305,485
Assigned
-
-
10,737,311
-
10,737,311
Unassigned
-
-
-
-
(170,483)
Total Fund Balances
-
65,090
10,737,311
2,250
28,872,313
Total Liabilities, Deferred Inflows
and Fund Balances
548,357
$
80,390
$
10,807,940
$
24,003
$
30,887,035
$
June 30, 2025
Capital ProjectsSpecial Revenue
City of Highland
Combining Balance Sheet
Non-major Governmental Funds (Continued)
89
Traffic Developer
Measure I Safety Gas Tax Article 3 CDBG Fees
REVENUES
Taxes
-
$
-
$
-
$
-
$
-
$
-
$
Licenses and Permits
-
-
-
-
-
-
Intergovernmental
1,470,901
-
3,154,927
-
796,319
-
Charges for Services
-
-
7,937
-
-
1,179,597
Fines and Forfeitures
-
16,005
-
-
-
-
Investment Income
190,419
-
102,923
-
-
317,995
Rental Income
-
-
-
-
-
-
Miscellaneous
-
-
8,914
-
-
-
Total Revenues
1,661,320
16,005
3,274,701
-
796,319
1,497,592
EXPENDITURES
Current:
General Government
-
-
-
-
-
-
Public Safety
-
70,697
-
-
-
-
Public Works
-
-
1,788,731
-
-
31,969
Community Development
-
-
-
-
215,627
-
Capital Outlay
874,288
-
145,025
58,126
581,127
-
Total Expenditures
874,288
70,697
1,933,756
58,126
796,754
31,969
Excess (Deficiency) of Revenues Over
Expenditures
787,032
(54,692)
1,340,945
(58,126)
(435)
1,465,623
OTHER FINANCING SOURCES (USES)
Transfers In
-
54,692
145,025
-
-
-
Transfers Out
-
-
-
-
-
-
Total Other Financing
Sources (Uses)
-
54,692
145,025
-
-
-
Net Change in Fund Balances
787,032
-
1,485,970
(58,126)
(435)
1,465,623
Fund Balances, Beginning, as previosly reported
4,226,482
-
2,339,121
(95,887)
(16,035)
6,212,152
Change within financial reporting entity (nonmajor to major) -
-
-
-
-
-
Fund Balances, Beginning, as adjusted
4,226,482
-
2,339,121
(95,887)
(16,035)
6,212,152
Fund Balances, End of Year 5,013,514$ - $ 3,825,091 $ (154,013) $ (16,470) $ 7,677,775 $ Special Revenue
City of Highland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2025
90
Landscape Street Community Parks Street and Justice
Maintenance Light Trails Maintenance
Storm Drain Assistance
District District District District AQMD COPS Maintenance Grant 509,308
$
340,093
$
15,869
$
112,404
$
-
$
-
$ 93,691
$
-
$
-
-
-
-
-
-
-
-
-
-
-
-
74,212
194,820
-
50,675
-
-
-
12,889
-
-
152
-
-
-
-
-
-
-
-
-
2,286
3,425
1,144
11,438
16,639
-
57,458
-
-
-
-
-
-
-
-
-
12,889
23,216
-
-
-
-
-
-
524,483
366,734
17,013
136,731
90,851
194,820
151,301
50,675
-
-
-
-
-
-
-
-
-
-
-
-
-
194,820
-
38,963
657,803
435,471
2,853
161,640
55,275
-
53,426
-
-
-
-
-
-
-
-
-
-
-
-
-
4,400
-
-
-
657,803
435,471
2,853
161,640
59,675
194,820
53,426
38,963
(133,320)
(68,737)
14,160
(24,909)
31,176
-
97,875
11,712
133,320
68,737
-
64,656
-
-
-
-
-
-
-
-
-
-
-
-
133,320
68,737
-
64,656
-
-
-
-
-
-
14,160
39,747
31,176
-
97,875
11,712
-
-
67,142
281,656
370,951
-
766,312
41,034
-
-
-
-
-
-
-
-
-
-
67,142
281,656
370,951
- 766,312 41,034
-
$
-
$ 81,302
$
321,403
$
402,127
$
-
$ 864,187
$
52,746
$
(Continued)
Special Revenue
91
Total
Formerly General Community Non-major
Paramedic Non-major CFD Capital Facilities Governmental Department Housing Auth. Maintenance Financing District Funds
REVENUES
Taxes 363,476
$ -
$ -
$ -
$ -
$ 1,434,841
$
Licenses and Permits -
-
-
-
-
-
Intergovernmental -
-
-
-
-
5,741,854
Charges for Services -
-
121,955
150,386
-
1,472,916
Fines and Forfeitures -
-
-
-
-
16,005
Investment Income -
-
-
488,519
-
1,192,246
Rental Income -
-
-
-
-
-
Miscellaneous -
-
-
-
12,276
57,295
Total Revenues 363,476
-
121,955
638,905
12,276
9,915,157
EXPENDITURES
Current:
General Government -
-
-
-
-
-
Public Safety 1,674,817
-
-
-
-
1,979,297
Public Works -
-
46,968
324,648
10,026
3,568,810
Community Development -
-
-
-
-
215,627
Capital Outlay -
-
-
163,175
-
1,826,141
Total Expenditures
1,674,817
-
46,968
487,823
10,026
7,589,875
Excess (Deficiency) of Revenues Over
Expenditures
(1,311,341)
-
74,987
151,082
2,250
2,325,282
OTHER FINANCING SOURCES (USES)
Transfers In
1,311,341
-
-
1,900,000
-
3,677,771
Transfers Out
-
-
-
(145,025)
-
(145,025)
Total Other Financing
Sources (Uses)
1,311,341
-
-
1,754,975
-
3,532,746
Net Change in Fund Balances
-
-
74,987
1,906,057
2,250
5,858,028
Fund Balances, Beginning, as previosly reported
-
4,572,307
(9,897)
8,831,254
-
27,586,592
Change within financial reporting entity (nonmajor to major) -
(4,572,307)
-
-
-
(4,572,307)
Fund Balances, Beginning, as adjusted
-
-
(9,897)
8,831,254
-
23,014,285
Fund Balances, End of Year -$ 4,572,307 $ 65,090 $ 10,737,311 $ 2,250 $ 28,872,313 $ Capital Projects
Special Revenue
City of Highland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds (Continued)
Year Ended June 30, 2025
92
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 1,681,315
$ 1,470,901
$ (210,414)
$
Investment Income 27,000 190,419 163,419
Total Revenues 1,708,315 1,661,320 (46,995)
EXPENDITURES:
Current:
Public Works -
-
-
Capital Outlay 2,495,275
874,288
1,620,987
Total Expenditures 2,495,275 874,288 1,620,987
Excess (Deficiency) of Revenues
over Expenditures (786,960) 787,032 (1,667,982)
OTHER FINANCING SOURCES (USES)
Transfers out -
-
-
Total Other Financing Sources (Uses) -
-
-
Net Change in Fund Balance (786,960) 787,032 1,573,992
Fund Balance, Beginning of Year 4,226,482 4,226,482 -
Fund Balance, End of Year 3,439,522
$ 5,013,514
$ 1,573,992
$
City of Highland
Budgetary Comparison Schedule
Measure I - Special Revenue Fund
Year Ended June 30, 2025
93
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Fines and Forfeitures 16,275
$ 16,005
$ (270)
$
Investment Income -
-
-
Total Revenues 16,275 16,005 (270)
EXPENDITURES:
Current:
Public Safety 70,697 70,697 -
Capital Outlay -
-
-
Total Expenditures 70,697 70,697 -
Excess (Deficiency) of Revenues
over Expenditures (54,422)
(54,692) (270)
OTHER FINANCING SOURCES (USES)
Transfers In 53,725
54,692
967
Total Other Financing Sources (Uses) 53,725
54,692
967
Net Change in Fund Balances
(697)
-
697
Fund Balance, Beginning of Year
-
-
-
Fund Balance, End of Year (697)$ - $ 697 $ City of Highland
Budgetary Comparison Schedule
Traffic Safety - Special Revenue Fund
Year Ended June 30, 2025
94
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 3,183,715
$ 3,154,927
$ (28,788)
$
Charges for Services 11,520 7,937
(3,583)
Investment Income 50,400 102,923
52,523
Miscellaneous 30,000
8,914
(21,086)
Total Revenues 3,275,635 3,274,701 (934)
EXPENDITURES:
Current:
Public Works 2,184,365 1,788,731 395,634
Capital Outlay 1,388,000 145,025
1,242,975
Total Expenditures 3,572,365 1,933,756 1,638,609
Excess (Deficiency) of Revenues
over Expenditures (296,730) 1,340,945 1,637,675
OTHER FINANCING SOURCES (USES)
Transfers In 145,025
145,025
-
Total Other Financing Sources (Uses) 145,025
145,025
-
Net Change in Fund Balances
(151,705)
1,485,970
1,637,675
Fund Balance, Beginning of Year
2,339,121
2,339,121
-
Fund Balance, End of Year 2,187,416$ 3,825,091 $ 1,637,675 $ City of Highland
Budgetary Comparison Schedule
Gas Tax - Special Revenue Fund
Year Ended June 30, 2025
95
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes -
$ -
$ -
$
Total Revenues -
-
-
EXPENDITURES:
Capital Outlay
58,127 58,126
1 Total Expenditures
58,127 58,126
1 Excess (Deficiency) of Revenues
over Expenditures
(58,127)
(58,126)
1 Fund Balance, Beginning of Year
(95,887)
(95,887)
-
Fund Balance, End of Year (154,014)$ (154,013) $ 1 $ City of Highland
Budgetary Comparison Schedule
Article 3 - Special Revenue Fund
Year Ended June 30, 2025
96
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 770,935
$ 796,319
$ 25,384
$
Total Revenues 770,935
796,319
25,384
EXPENDITURES:
Current:
Community Development
233,685
215,627
18,058
Capital Outlay
581,130
581,127
3 Total Expenditures
814,815
796,754
18,061
Excess (Deficiency) of Revenues
over Expenditures
(43,880)
(435)
43,445
OTHER FINANCING SOURCES (USES)
Transfers In
-
-
-
Total Other Financing Sources (Uses)
-
-
-
Net Change in Fund Balances
(43,880)
(435)
43,445
Fund Balance, Beginning of Year
(16,035)
(16,035)
-
Fund Balance, End of Year (59,915)$ (16,470) $ 43,445 $ City of Highland
Budgetary Comparison Schedule
CDBG - Special Revenue Fund
Year Ended June 30, 2025
97
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Charges for Services 10,000
$ 1,179,597
$ 1,169,597
$
Investment Income 40,000
317,995 277,995
Total Revenues
50,000 1,497,592 1,447,592
EXPENDITURES:
Current:
Public Works
35,740 31,969
3,771
Capital Outlay
-
-
-
Total Expenditures
35,740 31,969
3,771
Excess (Deficiency) of Revenues
over Expenditures
14,260
1,465,623
1,451,363
Fund Balance, Beginning of Year
6,212,152
6,212,152
-
Fund Balance, End of Year 6,226,412$ 7,677,775 $ 1,451,363 $ City of Highland
Budgetary Comparison Schedule
Developer Fees - Special Revenue Fund
Year Ended June 30, 2025
98
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 555,000
$ 509,308
$ (45,692)
$
Investment Income -
2,286
2,286
Miscellaneous 5,155
12,889
7,734
Total Revenues 560,155 524,483 (35,672)
EXPENDITURES:
Current:
Public Works 667,540 657,803 9,737
Total Expenditures 667,540 657,803 9,737
Excess (Deficiency) of Revenues
over Expenditures (107,385)
(133,320)
(25,935)
OTHER FINANCING SOURCES (USES)
Transfers In -
133,320
133,320
Total Other Financing Sources (Uses) -
133,320
133,320
Net Change in Fund Balances
(107,385)
-
107,385
Fund Balance, Beginning of Year
-
-
-
Fund Balance, End of Year (107,385)$ - $ 107,385 $ City of Highland
Budgetary Comparison Schedule
Landscape Maintenance District - Special Revenue Fund
Year Ended June 30, 2025
99
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 410,000
$ 340,093
$ (69,907)
$
Interest 5,000
3,425
(1,575)
Miscellaneous 30,000
23,216
(6,784)
Total Revenues 445,000 366,734 (78,266)
EXPENDITURES:
Current:
Public Works 482,100 435,471 46,629
Total Expenditures 482,100 435,471 46,629
Excess (Deficiency) of Revenues
over Expenditures (37,100)
(68,737)
(31,637)
OTHER FINANCING SOURCES (USES)
Transfers In -
68,737
68,737
Total Other Financing Sources (Uses) -
68,737
68,737
Net Change in Fund Balances
(37,100)
-
37,100
Fund Balance, Beginning of Year
-
-
-
Fund Balance, End of Year (37,100)$ - $ 37,100 $ City of Highland
Budgetary Comparison Schedule
Street Light District - Special Revenue Fund
Year Ended June 30, 2025
100
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 16,000
$ 15,869
$ (131)
$
Interest -
1,144 1,144
Total Revenues 16,000 17,013 1,013
EXPENDITURES:
Current:
Public Works 27,100
2,853 24,247
Total Expenditures 27,100
2,853 24,247
Excess (Deficiency) of Revenues
over Expenditures
(11,100) 14,160 25,260
OTHER FINANCING SOURCES (USES)
Transfers In
-
-
-
Total Other Financing Sources (Uses)
-
-
-
Net Change in Fund Balances
(11,100) 14,160 25,260
Fund Balance, Beginning of Year
67,142
67,142
-
Fund Balance, End of Year 56,042$ 81,302 $ 25,260 $ City of Highland
Budgetary Comparison Schedule
Community Trails District - Special Revenue Fund
Year Ended June 30, 2025
101
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 115,000
$ 112,404
$ (2,596)
$
Charges for Services 5,155
12,889 7,734
Investment Income 3,000
11,438 8,438
Total Revenues 123,155 136,731 13,576
EXPENDITURES:
Current:
Public Works 165,330 161,640 3,690
Total Expenditures 165,330 161,640 3,690
Excess (Deficiency) of Revenues
over Expenditures (42,175)
(24,909)
17,266
OTHER FINANCING SOURCES (USES)
Transfers In 55,890
64,656
8,766
Total Other Financing Sources (Uses) 55,890
64,656
8,766
Net Change in Fund Balances
13,715 39,747 26,032
Fund Balance, Beginning of Year
281,656
281,656
-
Fund Balance, End of Year 295,371$ 321,403 $ 26,032 $ City of Highland
Budgetary Comparison Schedule
Parks Maintenance District - Special Revenue Fund
Year Ended June 30, 2025
102
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 72,000
$ 74,212
$ 2,212
$
Investment Income 5,000
16,639 11,639
Total Revenues
77,000 90,851 13,851
EXPENDITURES:
Current
Public Works
77,000
55,275 21,725
Capital Outlay
76,000
4,400
71,600
Total Expenditures
153,000 59,675 93,325
Excess (Deficiency) of Revenues
over Expenditures
(76,000) 31,176 107,176
Fund Balance, Beginning of Year
370,951 370,951
-
Fund Balance, End of Year 294,951$ 402,127 $ 107,176 $ City of Highland
Budgetary Comparison Schedule
AQMD - Special Revenue Fund
Year Ended June 30, 2025
103
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 194,825
$ 194,820
$ (5)
$
Total Revenues 194,825 194,820 (5)
EXPENDITURES
Current:
Public Safety 194,825
194,820 5
Total Expenditures 194,825
194,820
5 Excess (Deficiency) of Revenues
over Expenditures
-
-
-
Fund Balance, Beginning of Year
-
-
-
Fund Balance, End of Year -$ - $ - City of Highland
Budgetary Comparison Schedule
COPS - Special Revenue Fund
Year Ended June 30, 2025
104
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 40,400
$ 93,691
$ 53,291
$
Investment Income 3,400
152 (3,248)
Charges for Services 220
57,458 57,238
Total Revenues
44,020
151,301 107,281
EXPENDITURES:
Current:
Public Works
65,480
53,426
12,054
Total Expenditures
65,480
53,426
12,054
Excess (Deficiency) of Revenues
over Expenditures
(21,460)
97,875
119,335
Fund Balance, Beginning of Year
766,312
766,312
-
Fund Balance, End of Year 744,852$ 864,187 $ 119,335 $ City of Highland
Budgetary Comparison Schedule
Street and Storm Drain Maintenance - Special Revenue Fund Year Ended June 30, 2025
105
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Intergovernmental 50,675
$ 50,675
$ -
$
Total Revenues 50,675 50,675
-
EXPENDITURES:
Current:
Public Safety 39,000
38,963
37 Capital Outlay -
-
-
Total Expenditures 39,000 38,963
37 Excess (Deficiency) of Revenues
over Expenditures 11,675
11,712
37 Fund Balance, Beginning of Year 41,034
41,034
-
Fund Balance, End of Year 52,709$ 52,746 $ 37 $ City of Highland
Budgetary Comparison Schedule
Justice Assistance Grant - Special Revenue Fund
Year Ended June 30, 2025
106
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 375,000
$ 363,476
$ (11,524)
$
Miscellaneous -
-
-
Total Revenues 375,000 363,476
(11,524)
EXPENDITURES:
Current:
Public Safety 2,611,925
1,674,817
937,108
Capital Outlay -
-
-
Total Expenditures 2,611,925 1,674,817
937,108
Excess (Deficiency) of Revenues
over Expenditures (2,236,925)
(1,311,341)
925,584
OTHER FINANCING SOURCES:
Transfers In 2,209,325
1,311,341
(897,984)
Total Other Financing Sources (Uses) 2,209,325
1,311,341
(897,984)
Net Change in Fund Balance
(27,600)
-
27,600
Fund Balance, Beginning of Year
-
-
-
Fund Balance, End of Year (27,600)$ - $ 27,600 $ City of Highland
Budgetary Comparison Schedule
Paramedic Department - Special Revenue Fund
Year Ended June 30, 2025
107
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Taxes 86,720
$ 121,955
$ 35,235
$
Total Revenues 86,720
121,955
35,235
EXPENDITURES:
Current:
Public Works
111,070
46,968
64,102
Total Expenditures
111,070
46,968
64,102
Excess (Deficiency) of Revenues
over Expenditures
(24,350)
74,987
99,337
Fund Balance, Beginning of Year
(9,897)
(9,897)
-
Fund Balance, End of Year (34,247)$ 65,090 $ 99,337 $ City of Highland
Budgetary Comparison Schedule
CFD Maintenance - Special Revenue Fund
Year Ended June 30, 2025
108
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Charges for Services 100,000
$ 150,386
$ 50,386
$
Investment Income 102,995
488,519
385,524
Miscellaneous 5,000
-
(5,000)
Total Revenues 207,995 638,905 430,910
EXPENDITURES:
Current:
Public Works 424,895
324,648 100,247
Capital Outlay 677,878
163,175
514,703
Total Expenditures 1,102,773
487,823
614,950
Excess (Deficiency) of Revenues
over Expenditures
(894,778) 151,082 1,045,860
OTHER FINANCING SOURCES (USES)
Transfers In
1,900,000
1,900,000
-
Transfers Out
(145,025)
(145,025)
-
Total Other Financing Sources (Uses)
1,754,975
1,754,975
-
Net Change in Fund Balance
860,197 1,906,057 1,045,860
Fund Balance, Beginning of Year
8,831,254 8,831,254
-
Fund Balance, End of Year 9,691,451$ 10,737,311 $ 1,045,860 $ City of Highland
Budgetary Comparison Schedule
General Capital Financing - Capital Projects Fund
Year Ended June 30, 2025
109
Variance with
Final Budget
Final Actual Positive
Budget Amounts (Negative)
REVENUES:
Miscellaneous 12,280
$ 12,276
$ (4)
$
Total Revenues 12,280 12,276 (4)
EXPENDITURES:
Current:
Public Works 11,100
10,026
1,074
Total Expenditures 11,100 10,026 1,074
Excess (Deficiency) of Revenues
over Expenditures 1,180
2,250
1,070
Fund Balance, Beginning of Year -
-
-
Fund Balance, End of Year 1,180$ 2,250 $ 1,070 $ City of Highland
Budgetary Comparison Schedule
Community Facilities District - Capital Projects Fund
Year Ended June 30, 2025
110
City of Highland
Internal Service Funds
The Internal Service Funds are used to allocate the cost of pro viding goods and services by one department
to other departments on a cost reimbursement basis. The City h as two internal service funds; the Insurance
Fund & the General Services Fund.
Insurance - This fund accounts for all expenditures relating to insurance premiums for both workers
compensation and general liability of the City.
General Services - This fund accounts for all expenditures rela ting to City Hall including; utilities, janitorial
services, computer network, copier leases, equipment and buildi ng maintenance repairs.
111
General
Insurance Services
Total
ASSETS
Current:
Cash and Investments 4,235,606
$ 2,817,221
$ 7,052,827
$
Receivable:
Accounts -
21,465
21,465
Interest 49,047
19,181
68,228
Total Assets
4,284,653
2,857,867
7,142,520
LIABILITIES
Current:
Accounts Payable 1,203
36,965
38,168
Accrued Liabilities 8,471
12,597
21,068
Claims Payable 25,171
-
25,171
Total Current Liabilities 34,845
49,562
84,407
Noncurrent:
Claims Payable 159,829
-
159,829
Total Noncurrent Liabilities 159,829
-
159,829
Total Liabilities 194,674
49,562
244,236
NET POSITION
Unrestricted 4,089,979
2,808,305
6,898,284
Total Net Position 4,089,979
$ 2,808,305
$ 6,898,284
$
Governmental Activities
Internal Service Funds
City of Highland
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
112
General
Insurance Services
Total
OPERATING REVENUES
Charges for Services 566,841
$ 430,908
$ 997,749
$
Miscellaneous 9,123
-
9,123
Total Operating Revenues 575,964
430,908
1,006,872
OPERATING EXPENSES
Salaries and Benefits
129,231
-
129,231
Insurance Premiums
595,763
-
595,763
Claims and Judgments
39,000
-
39,000
Legal Fees
20,171
-
20,171
Administrative Expenses
11,769
913,740
925,509
Insurance Adjusting Fees
-
-
-
Total Operating Expenses
795,934
913,740
1,709,674
Operating Income (Loss)
(219,970)
(482,832)
(702,802)
NONOPERATING REVENUES (EXPENSES)
Investment Income
219,969
89,913
309,882
Income before Contributions and Transfers
(1)
(392,919)
(392,920)
Transfers in
-
1,400,000
1,400,000
Change in Net Position
(1)
1,007,081
1,007,080
Net Position, Beginning of Year
4,089,980
1,801,224
5,891,204
Net Position, End of Year
4,089,979
$
2,808,305
$
6,898,284
$
Internal Service Funds
Governmental Activities
City of Highland
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
Year Ended June 30, 2025
113
General
Insurance Services
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Services 575,964
$ 416,837
$ 992,801
$
Cash Payments to Employees for Services (123,891)
8,432
(115,459)
Cash Payments Made to Suppliers/Vendors (636,452)
(903,177)
(1,539,629)
Net Cash Provided (Used) By Operations (184,379)
(477,908)
(662,287)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash Received from Other Funds
-
1,400,000
1,400,000
Net Cash Provided (Used) By NonCapital
Financing Activities
-
1,400,000
1,400,000
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
216,784
88,668
305,452
Net Cash Provided (Used) By Investing
Activities
216,784
88,668
305,452
Net Increase (Decrease) in Cash and
Cash Equivalents
32,405
1,010,760
1,043,165
Cash and Equivalents - Beginning of Year
4,203,201
1,806,461
6,009,662
Cash and Equivalents - End of Year
4,235,606
$
2,817,221
$
7,052,827
$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income (Loss)
(219,970)
$
(482,832)
$
(702,802)
$
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
(Increase) Decrease in Accounts Receivable
(14,071)
(14,071)
Increase (Decrease) in Accounts Payable
(3,749)
10,563
6,814
Increase (Decrease) in Accrued Liabilities
5,340
8,432
13,772
Increase (Decrease) in Claims Payable
34,000
-
34,000
Net Cash Provided (Used) by Operating Activities
(184,379)
$
(477,908)
$
(662,287)
$
Internal Service Funds
Governmental Activities
City of Highland
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2025
114
STATISTICAL SECTION
115
STATISTICAL SECTION
This section of the City of Highland's annual comprehensive fin ancial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government’s overall financial health.
CONTENTS 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. 117 – 120
Revenue Capacity
These schedules contain informat
ion to help the reader assess t
he City’s most significant local
revenue source, t
he property tax.
121 – 124
Debt Capacity
These schedules present information to help the reader assess t he affordability of the City’s
current levels of outstanding debt and the City’s ability to is sue additional debt in the future.
125 – 129
Demographic and Economic Information
These schedules offer demographic and economic indicators to he lp the reader understand
the environment within which the City’s financial activities ta ke place.
130 – 131
Operating Information
These schedules contain service and infrastructure data to help the reader understand how
the information in the City’s financial report relates to the s ervices the City provides and the
activities it performs.
132 – 133
Sources: Unless other
wise noted, the inform
ation in these sche
dules is derived from the annual
comprehensive fi
nancial report of the relevant fiscal year.
116
2025 2024 2023 2022 2021
Governmental activities:
Investment in capital assets
225,925,791
227,382,396
223,919,610
225,235,630
225,865,157
Restricted for:
Public safety
-
-
30,453
-
4,622
Highways and streets
69,313,686
37,199,325
34,296,922
33,314,130
36,238,519
Community Development
4,681,997
379,935
5,459,347
5,385,260
5,437,302
Unrestricted
32,603,152
47,279,679 31,393,164 25,606,706 19,744,041 Total governmental activities net position
332,524,626$ 312,241,335$ 295,099,496$ 289,541,726$ 287,289,641$ 2020 2019 2018 2017 2016
Governmental activities:
Investment in capital assets
227,112,025
221,003,257
214,466,575
216,035,504
210,865,837
Restricted for:
Public safety
-
-
26,836
87,188
10,181,809
Highways and streets
38,678,179
42,249,331
41,447,249
30,801,998
35,846,032
Community Development
5,303,599
5,186,442
5,060,289
4,386,881
4,339,917
Unrestricted
18,903,986
21,353,346 24,874,004 28,349,878 16,375,043 Total governmental activities net position
289,997,789$ 289,792,376$ 285,874,953$ 279,661,449$ 277,608,638$ Fiscal Year
CITY OF HIGHLAND
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
117
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Expenses:
Governmental activities:
General government
3,448,991
2,785,024
2,415,060
2,329,674
2,970,378
2,667,209
2,391,929
2,152,914
1,988,317
8,026,419
Public safety
20,216,643
20,687,768
19,982,109
18,165,480
17,233,793
16,849,924
15,621,202
14,542,332
14,411,209
12,958,169
Highways and streets
10,944,381
9,721,374
13,683,221
15,510,734
13,951,011
10,727,700
10,608,389
9,797,412
10,392,619
10,618,305
Community Development
5,599,779
4,199,576
4,022,217
4,845,025
3,610,883
3,254,385
3,424,262
3,473,178
2,471,487
-
Interest and fiscal charges - - - - - - - - - - Total governmental activities expenses 40,209,794 37,393,742 40,102,607 40,850,913 37,766,065 33,499,218 32,045,782 29,965,836 29,263,632 31,602,893 Program revenues:
Governmental activities:
Charges for services:
General government
3,545,534
2,481,675
907,887
125,608
362,563
242,669
338,758
761,641
726,087
1,583,415
Public safety
1,905,498
1,990,959
1,750,491
1,511,188
1,307,179
1,248,384
1,284,504
1,279,121
1,266,079
3,679,629
Highways and streets
10,608,543
6,897,184
2,916,475
1,332,697
2,194,101
1,930,553
1,748,406
2,688,276
2,809,938
1,020,765
Community Development
2,411,293
2,662,783
2,197,408
2,135,481
1,234,314
1,183,807
1,300,273
1,721,294
1,574,576
Operating grants and contributions
4,403,377
3,725,597
3,956,124
2,811,500
3,909,827
3,097,787
3,305,218
3,206,718
2,204,994
9,032,776
Capital grants and contributions 9,605,235 9,625,434 9,547,768 12,935,771 4,994,406 4,730,717 8,345,767 8,344,599 4,618,091 1,054,688 Total governmental activities program revenues 32,479,480 27,383,632 21,276,153 20,852,245 14,002,390 12,433,917 16,322,926 18,001,649 13,199,765 16,371,273 Net revenues (expenses) governmental activities (7,730,314) (10,010,110) (18,826,454) (19,998,668) (23,763,675) (21,065,301) (15,722,856) (11,964,186) (16,063,867) (15,231,620) General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes
18,824,160
18,199,744
16,627,854
15,406,948
14,517,673
14,021,888
13,389,467
13,036,416
11,809,133
8,456,523
Sales and use taxes
3,907,308
3,846,323
4,057,069
4,017,078
3,714,315
3,076,668
2,918,109
2,702,065
2,632,596
2,224,734
Transient occupancy tax
301,600
272,875
265,074
268,259
271,603
264,958
266,893
179,088
302,330
274,410
Franchise taxes
2,033,925
2,056,095
2,091,919
1,930,701
1,825,256
1,615,213
1,587,002
1,502,402
1,535,420
1,587,761
Business license tax
399,152
471,486
546,140
446,810
491,867
536,749
497,286
558,270
173,025
263,489
Other
89,660
70,325
58,359
63,608
40,576
44,146
26,286
28,623
24,032
14,459
Gain on Sale of Capital Assets
-
-
-
-
356,150
-
-
-
-
-
Investment income
2,146,498
2,064,776
570,764
(22,924)
133,727
436,
821
522,967 315,496 317,167 104,983 State motor vehicle in lieu, unrestricted
-
-
-
-
-
-
-
-
-
-
Rental income
-
-
-
-
-
-
-
-
-
-
Land contribution from the Successor Agency
-
-
-
-
-
-
-
-
-
-
Miscellaneous 311,302 170,325 167,045 140,273 188,643 189,052 432,269 140,458 133,812 991,825 Total governmental activities 28,013,605 27,151,949 24,384,224 22,250,753 21,539,810 20,185,495 19,640,279 18,462,818 16,927,515 13,918,184 Changes in net position governmental activities 20,283,291$ 17,141,839 $ 5,557,770 $ 2,252,085 $ (2,223,865) $ (879,806) $ 3,917,423 $ 6,498,632 $ 863,648 $ (1,313,436) $ Extraordinary item: Loss on transfer - - - - - - - - - - Restatement of Land - - - - - - - - - - Restatment of Net Position (484,283) - - (285,128) 1,189, 163 Extraordinary item: Repayment of Advance - - - - - - - - - - Extraordinary item: Bond Proceeds (former RDA) - - - - - - - - - 16,545,772 Implementation of GASB 68 & 71 - - - - - - - - - - Restatement of Depreciation - - - - - - - - - - Restatement of Capital Assets (note 16) - - - - - - - - - - Changes in net position governmental activities 20,283,291$ 17,141,839 $ 5,557, 770 $ 2,252, 085 $ (2, 708,148) $ (879, 806) $ 3,917, 423 $ 6,213, 504 $ 2,052, 811 $ 15,232, 336 $ Fiscal Year
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
CITY OF HIGHLAND
118
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General fund:
Nonspendable 421,002 587,758 738,375 872,740 974,619 978,226 977,829 999,339 990,099 1,061, 528 Spendable:
Restricted - - - - - - - - - - Assigned 22,089,497 15,061,485 15,061, 485 13,880, 569 11,680, 011 9,840, 573 9,872, 519 10,070, 945 9,293, 748 5,004, 971 Unassigned 6,893,562 8,256,885 5,314,385 3,931,264 3,265,164 3,057,435 3,020,491 3,178,858 3,198,945 1,108,361 Total general fund 29,404,061$ 23,906,128$ 21,114,245$ 18,684,573$ 15,919,794$ 13,876,234$ 13,870,839$ 14,249,142$ 13,482,792$ 7,174,860$ All other governmental funds:
Nonspendable:
Special revenue funds - - - - - - - - - - Capital projects funds - - - - - - - - 1,362,235 1,425, 413 Restricted:
Special revenue funds 34,032,215 29,019,082 25,584, 333 25,020, 963 26,194, 182 26,985, 405 28,126, 206 27,407, 827 27,734, 045 35,540, 081 Capital projects funds 30,574,098 20,450,763 14,239, 062 13,678, 427 15,486, 261 16,996, 373 19,309, 569 19,148, 448 11,147, 755 13,094, 825 Committed:
Assigned:
Special revenue funds - - - - - - - - - - Capital projects funds 10,737,311 8,831,254 7,623, 323 6,252, 080 5,073, 966 5,103, 960 6,006, 439 7,884, 827 6,792, 406 7,330, 504 Unassigned:
Special revenue funds (729,573) (1,634,853) (1, 449,598) (427, 619) (694, 177) (411, 719) (746, 061) (943, 910) (882, 715) (525, 490) Capital projects funds - - - - - - - - - - Total all other governmental funds 74,614,051$ 56,666,246$ 45,997,120$ 44,523,851$ 46,060,232$ 48,674,019$ 52,696,153$ 53,497,192$ 46,153,726$ 56,865,333$
CITY OF HIGHLAND
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
119
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Revenues:
Taxes
26,616,090
26,002,501
24,909,451
23,163,468
21,885,819
20,541,202
19,710,927
19,013,261
17,458,633
16,070,934
Licenses and permits
1,322,308
1,213,524
1,177,236
1,217,429
618,458
509,501
537,720
855,744
705,796
684,186
Intergovernmental
15,781,157
12,754,229
11,154,120
15,611,819
8,182,201
8,913,837
12,454,853
10,929,304
4,517,927
19,025,112
Charges for services
14,152,874
10,075,238
4,452,340
2,362,870
2,697,541
2,287,702
2,346,284
3,914,972
4,155,849
1,999,287
Fines and forfeitures
40,652
77,755
43,850
121,887
80,226
99,604
73,838
116,380
139,888
182,037
Investment income
4,256,412
3,904,590
1,285,825
(128,949)
454,062
1,184,670
1,482,102
824,331
633,959
217,790
Rental income
272,501
257,768
244,712
251,042
244,930
239,890
227,190
226,068
219,926
120,691
Miscellaneous 215,510 47,411 185,153 86,482 374,675 87,465 398,788 320,619 195,598 671,337 Total revenues 62,657,504 54,333,016 43,452,687 42,686,048 34,537,912 33,863,871 37,231,702 36,200,679 28,027,576 38,971,374 Expenditures:
Current:
General government+
2,335,867
2,355,919
1,931,098
1,801,743
2,140,731
1,904,692
2,097,547
1,724,479
1,736,158
8,036,914
Highways and streets+
5,857,013
6,395,277
5,487,701
5,375,194
5,056,624
5,441,043
4,886,690
4,716,911
5,481,471
2,729,393
Public safety+
19,469,549
20,023,689
19,288,972
17,495,556
16,570,676
16,164,583
14,931,777
13,913,656
13,238,605
12,408,648
Community Development+
4,861,863
3,481,851
3,308,114
4,137,401
2,903,259
2,454,195
2,558,426
2,499,347
2,471,487
-
Capital outlay
5,359,219
8,522,499
10,072,822
15,370,721
8,808,826
11,916,097
13,936,604
5,236,471
10,199,258
2,778,168
Debt service:
Principal*
-
-
-
-
-
-
-
-
-
-
Interest*
-
-
-
-
-
-
-
-
-
-
Pass-through payments*
-
-
-
-
-
-
-
- - -
SERAF Payment*
-
-
-
-
-
-
-
-
-
-
Payment to bond escrow agent* - - - - - - - - - - Total expenditures 37,883,511 40,779,235 40,088,707 44,180,615 35,480,116 37,880,610 38,411,044 28,090,863 33,126,979 25,953,123 Excess (deficiency) of revenues over (under)
expenditures 24,773,993 13,553,781 3,363,980 (1,494,567) (942,204) (4,016,739) (1,179,342) 8,109,816 (5,099,403) 13,018,251 Other financing sources (uses):
Sale of Capital Assets
-
-
-
-
402,000
Issuance of long term debt
71,745
207,228
1,643,961
3,397,965
469,081
-
-
-
-
-
Payment to bond escrow agent
-
-
-
-
-
-
Transfers in
3,677,771
2,610,063
2,998,575
2,456,734
1,864,923
1,919,422
2,995,704
2,191,020
2,017,731
3,448,326
Transfers out (5,077,771) (2,910,063) (4,103,575) (3,131,734) (2,364,027) (1,919,422) (2,995,704) (2,191,020) (2,017,731) (3,448,326) Total other financing sources (uses) (1,328,255) (92,772) 538,961 2,722,965 371,977 - - - - - Extraordinary Item - - - - - - - - - - Net change in fund balances 23,445,738$ 13,461,009 $ 3,902,941 $ 1,228,398 $ (570,227) $ (4,016,739) $ (1,179,342) $ 8,109,816 $ (5,099,403) $ 13,018,251 $ Debt service* as a percentage of noncapital + expenditures. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Debt service is for the former RDA.
The RDA was dissolved on February 1, 2012.
CITY OF HIGHLAND
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
120
Category
2025
2024
2023
2022
2021
Residential
4,567,324,876
4,279,019,753
3,960,857,745
3,714,571,853
3,559,231,681
Commercial
329,351,417
324,529,769
291,697,092
277,843,224
260,893,974
Industrial
138,256,150
102,295,267
85,793,793
69,404,126
57,592,686
Irrigated
77,309
75,793
74,307
72,850
438,128
Dry Farm
-
-
-
-
-
Recreational
4,000,731
3,922,285
434,378
1,465,450
2,013,113
Institutional
34,180,446
33,248,855
32,017,491
31,389,694
31,067,831
Miscellaneous
15,633,878
17,899,349
14,109,232
13,667,029
13,595,907
Vacant Land
241,763,167
223,993,732
120,115,497
104,697,062
89,904,034
SBE Nonunitary
-
-
37,800
37,800
37,800
Unsecured
94,528,117
92,983,825
88,477,432
80,602,464
75,228,717
Govt. Owned
25,885,848
25,228,285
24,733,613
24,248,640
24,000,000
Unknown
-
-
-
-
-
Exemptions
(116,473,798)
(136,300,607) (117,980,381) (115,727,998) (111,624,080) Total
5,334,528,141
4,966,896,306 4,500,367,999 4,202,272,194 4,002,379,791 Total direct rate
0. 24648
0. 24740 0.24883 0.24875 0.24871
Category 2020 2019 2018 2017 2016
Residential 3,421,547,404 3,235,632,104 3,058, 458,940 2,906, 523,051 2,773, 541,762 Commercial 262,495,563 232,261,059 221,613, 336 210,815, 100 198,338, 374 Industrial 52,476,393 51,299,293 48,639, 494 48,108, 184 46,948, 732 Irrigated 680,270 666,931 655,502 642,650 632,998 Dry Farm - - 129,918 127,371 200,535 Recreational 2,010,581 1,327,099 1,324, 666 1,322, 280 1,519, 489 Institutional 30,851,503 30,051,724 28,952, 472 28,702, 907 28,271, 761 Miscellaneous 13,035,651 9,917,709 9,841, 856 9,906, 629 9,556, 408 Vacant Land 91,922,879 88,609,668 88,183, 693 82,278, 983 76,496, 990 SBE Nonunitary 37,800 18,900 18,900 18,900 18,900 Unsecured 68,665,836 61,381,977 56,298, 251 58,764, 229 62,288, 201 Govt. Owned - - - - Unknown - - - - - Exemptions (97,885,315) (82,876,255) (79,270,623) (73,367,998) (72,450,406) Total 3,845,838,565 3,628,290,209 3,434,846,405 3,273,842,286 3,125,363,744 Total direct rate 0.24924 0.23904 0.23904 0.23903 0.23904
Source: HdL
CITY OF HIGHLAND
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Assessed Value
NOTE:
In 1978 the voters of the State of California passed Proposition 13 which limited property 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 increase of 2%). With few exceptions, property is only re -
assessed at the time
that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. 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.
121
2025 2024 2023 2022 2021 2020 2019 2018
City Direct Rate:
Property Tax General Fund
Assessed value of City basic rate 0.24400$ 0.24400$ 0.24400$ 0.24400$ 0.24400$ 0.24400$ 0.24400$ 0.24400$ Total City Direct Rate 0.24400 $ 0.24400 $ 0.24400 $ 0.24400 $ 0.24400 $ 0.24400 $ 0.24400 $ 0.24400 $ Overlapping Rates:
County Free Library
0.01344
$
0.01344
$
0.01344
$
0.01344
$
0.01344
$
0.01344
$
0.01344
$
0.01344
$
County General Fund
0.13880
$
0.13880
$
0.13880
$
0.13880
$
0.13880
$
0.13880
$
0.13880
$
0.13880
$
County Superintendent
0.00712
$
0.00712
$
0.00712
$
0.00712
$
0.00712
$
0.00712
$
0.00712
$
0.00712
$
Inland Empire Joint Resource Conservation District
0.00049
$
0.00049
$
0.00049
$
0.00049
$
0.00049
$
0.00049
$
0.00049
$
0.00049
$
Education Revenue Augmentation Fund
0.21010
$
0.21010
$
0.21010
$
0.21010
$
0.21010
$
0.21010
$
0.21010
$
0.21010
$
Flood Control Administration 3-6
0.00080
$
0.00080
$
0.00080
$
0.00080
$
0.00080
$
0.00080
$
0.00080
$
0.00080
$
Flood Control Zone 3
0.02430
$
0.02430
$
0.02430
$
0.02430
$
0.02430
$
0.02430
$
0.02430
$
0.02430
$
Redlands Unified
0.28670
$
0.28670
$
0.28670
$
0.28670
$
0.28670
$
0.28670
$
0.28670
$
0.28670
$
San Bernardino Community College
0.04880
$
0.04880
$
0.04880
$
0. 04880
$ 0.04880 $ 0.04880 $ 0.04880 $ 0.04880 $
San Bernardino Valley Municipal Water
0.02510
$
0.02510
$
0.02510
$
0.02510
$
0.02510
$
0.02510
$
0.02510
$
0.02510
$
San Bernardino Valley Water Conservation District
0.00043$ 0.00043$ 0.00043$ 0.00043$ 0.00043$ 0.00043$ 0.00043$ 0.00043$ Total Direct rates 1.00000$ 1.00000$ 1.00000$ 1.00000$ 1.00000$ 1.00000$ 1.00000$ 1.00000$
0.02770$ 0.03160 $ 0.02790 $ 0.06620 $ 0.03600 $ 0.03390 $ 0.03240 $ 0.04940 $
0.03700
$
0.04520
$
0.04500
$
0.05340
$
0.06510
$
0.05620
$
0.04070
$
0.03760
$
0.09360
$
0.06880
$
0.08780
$
0.10890
$
0.10340
$
0.09690
$
0.11260
$
0.10070
$
0.11000$ 0.12000$ 0.13000$ 0.13000$ 0.14250$ 0.14250$ 0.15250$ 0.15250$ Total Overlapping Rates 0.26830$ 0.26560$ 0.29070$ 0.35850$ 0.34700$ 0.32950$ 0.33820$ 0.34020$ Total Direct & Overlapping Tax Rates 1.26830$ 1.26560$ 1.29070$ 1.35850$ 1.34700$ 1.32950$ 1.33820$ 1.34020$ Redevelopment Rate n/a n/a n/a n/a n/a n/a n/a n/a
Total Direct Rate 0.24648 $ 0.24740 $ 0.24883 $ 0.24875 $ 0.24871 $ 0.24924 $ 0.23904 $ 0.23904 $ The RDA was dissolved on February 1, 2012.
The Total Direct rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section.
Information for additional years is unavailable.
Source: HdL
San Bernardino Valley Muni Water District Bond
San Bernardino Community College Bond
Redlands Unified School Bond 1993
1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject In 1978, California voters passed Proposition 13 which sets the property tax rate at a of overlapping governments.
charged taxes as a percentage of assessed property values for the payment of other bonds property taxes reside in. In addition to the 1.00% fixed amount, property owners are
CITY OF HIGHLAND
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Eight Fiscal Years
San Bernardino Unified School Bond
122
Victoria Development Company 31,228,479 0.59% 26,120,265 0.84% QR LI Highland California Commerce Center 43,288,290 0.81% Lowes HIW Inc. 15,959,020 0.51%
CHIPT Highland 210 LP 60,162,033 1.13%
Greenspot Village & Marketplace LLC 11,472,960 0.37% Greenspot Ranch Investors 10,450,498 0.33%
RRM Properties Limited 25,989,480 0.49% 13,588,274 0.43% Cole LA Highland California LP 9,897,205 0.32% Boulder Baseline Investors 9,818,017 0.31%
Patriot USICVI 5th Street 37,355,902 0.70%
Miracle Mile Properties LP 16,884,205 0.54%
Highland AL-MC Group 12,826,063 0.41%
ACAA LP 8,865,161 0.28%
San Carlo Apartment Homes LLC 37,152,092 0.70%
KAGR2 Highland 7000 LP 26,374,140 0.49%
HVP Associates LLC 31,055,940 0.58%
Real Journey Properties LLC 26,153,899 0.49%
RLIF 2024 1031-3 LLC 25,468,992 0.48%
344,229,247$ 6.45% 135,881,668$ 4.35%
Redevelopment Agency.
Source: HdL
2025 2016
CITY OF HIGHLAND
Principal Property Tax Payers
Current Fiscal Year & Nine Years Ago
The amounts shown above include assessed value (secured & unsecured) data for both the City and the former Taxpayer
Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
123
CITY OF HIGHLAND
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
Ended June
30 Property Taxes
Levied for the
Fiscal Year
Amount
Collected
Percent of
Levy
Property Tax
Collections in
Subsequent Years
Amount
Collected
Percent of
Levy
2016 7,625,888$ 5,943,945 77. 94% 61,230 6, 005,175 78. 75% 2017 7,988,175 $ 6,241,970 78.14% 59,210 6,301,180 78.88% 2018
8,381,025
$
6,520,591
77.80%
41,528
6,562,119
78.30%
2019
8,853,028
$
6,546,737
73.95%
266,468
6,813,206
76.96%
2020
9,383,846
$
6,975,060
74.33%
39,387
7,014,447
74.75%
2021
9,765,807
$
7,337,106
75.13%
47,591
7,384,697
75.62%
2022
10,253,544
$
7,689,449
74.99%
45,215
7,734,665
75.43%
2023
10,980,898
$
8,148,129
74.20%
41,079
8,189,208
74.58%
2024
12,119,227
$
8,746,931
72.17%
49,216
8,796,147
72.58%
2025
13,016,249
$
9,024,553
69.33%
46,141
9,070,694
69.69%
The amounts presented include City property taxes (24.4%) of the 1% general levy.
Source: San Bernardino County Auditor Controller's Office and City records. 124
Former RDA Tax
Allocation Bonds
Percentage of
Personal
Income 1
Debt Per
Capita 1
CITY OF HIGHLAND
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Ended
June 30
2016 - 0.00% -
2017 - 0.00%
2018
-
0.00%
-
2019
-
0.00%
-
2020
-
0.00%
-
2021
-
0.00%
-
2022
-
0.00%
-
2023
-
0.00%
-
2024
-
0.00%
-
2025
-
0.00%
-
1 These ratios are calculated using personal income and population for the prior calendar year.
Notes: Details regarding the Successor Agency to the Highland Redevelopment Agency's outstanding debt can be found in the notes to the financial statements.
125
CITY OF HIGHLAND
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding General Bonded Debt
Fiscal Year Ended
June 30
Former RDA Tax Allocation
Bonds
Percent of Assessed
Value 1 Per Capita
2016 - 0.00% - 2017 - 0.00% - 2018
-
0.00%
-
2019
-
0.00%
-
2020
-
0.00%
-
2021
-
0.00%
-
2022
-
0.00%
-
2023
-
0.00%
-
2024
-
0.00%
-
2025
-
0.00%
-
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Notes: Details regarding the Successor Agency to the Highland Redevelopment Agency's outstanding debt can be found in the notes to the financial statements. 126
2024-2025 Assessed Valuation 5,334,528,141$
City's Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/2025 Debt
Overlapping Tax and Assessment Debt
San Bernardino Community College District 4.905% 880,363,439 $ 43,181, 827 Redlands Unified School District 11.732% 142,943,512 16,770, 133 San Bernardino Unified School District 9.577% 299,021,967 28,637, 334 City of Highland CFD 90-1 100.00% - - City of Highland CFD 2001-1 100.00% 1,345,000 1,345, 000 Redlands Unified School District CFD 2001-1 and 2006-1 100.00% 15,360,000 15,360, 000 East Valley Water CFD No 2021-1 I.A.1 100.00% 5,585,000 5,585,000 Total Overlapping Tax and Assessment Debt 110,879,294
Direct & Overlapping General Fund Obligation Debt
San Bernardino County General Fund Obligations 1.561% 100,765,000 1,572, 942 San Bernardino County Flood Control District COP 1.561% 37,295,000 582,175 Redlands Unified School District COP 11.732% 21,210,000 2,488, 357 San Bernardino Unified School District COP 9.577% 149,245,000 14,293, 194 City of Highland 100.000% - - Total Direct & Overlapping General Fund Obligation Debt 18,936,668 Overlapping Tax Increment Debt (Successor Agencies)
Successor Agency to the Highland RDA (SARDA) 100.00% 33,520,000 33,520, 000 San Bernardino County (IVDA) Tax Allocation Bonds 0.004% 203,740,000 8,150 Total Overlapping Tax Increment Debt (Successor Agencies) 33,528,150
TOTAL DIRECT DEBT -
TOTAL OVERLAPPING DEBT 163,344,112
COMBINED TOTAL DEBT 2 163,344,112
1. The percentage of overlapping debt applicable to the city is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
2. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2023-2024 Assessed Valuation:
Total Overlapping Tax & Assessment Debt 2.08%
Total Direct Debt 0.00%
Combined Total Debt 3.06%
Details regarding the Successor Agency to the Highland Redevelopment Agency's (SARDA) outstanding debt can be found in the notes to the financial statements.
Source: California Municipal Statistics, Inc.
CITY OF HIGHLAND
Overlapping Tax & Assessment Debt
June 30, 2025
127
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Assessed Valuation 5,334,528,141$ 4,966,896,306 $ 4,50 0,367,999 $ 4,20 2,272,194 $ 4,00 2,379,791 $ 3,84 5,838,565 $ 3,27 3,842,286 $ 3,43 4,846,405 $ 3,27 3,842,286 $ 3,12 5,363,744 $ Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 1,333,632,035$ 1,241,724,077 $ 1,12 5,092,000 $ 1,05 0,568,049 $ 1,00 0,594,948 $ 961, 459,641 $ 818, 460,572 $ 858, 711,601 $ 818, 460,572 $ 781, 340,936 $ Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 200,044,805 186,258,611 168, 763,800 157, 585,207 150, 089,242 144, 218,946 122, 769,086 128, 806,740 122, 769,086 117, 201,140 Total net debt applicable to limit - - - - - - - - - - Legal debt margin 200,044,805$ 186,258,611 $ 168,763,800 $ 157,585,207 $ 150,089,242 $ 144,218,946 $ 122,769,086 $ 128,806,740 $ 122,769,086 $ 117,201,140 $ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Source: City of Highland
San Bernardino County Tax Assessor
Fiscal Year
CITY OF HIGHLAND
Legal Debt Margin Information
Last Ten Years
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel) . The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state .
128
Principal Interest
Debt Service
Coverage
CITY OF HIGHLAND
Pledged-Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year
Ended June 30
Former RDA Tax
Increment
2016 - - - - 2017 - - - - 2018 - - - - 2019 - - - - 2020 - - - - 2021 - - - - 2022 - - - - 2023 - - - - 2024 - - - - 2025 - - - - Note: Details regarding the SARDA's outstanding debt can be found in the notes to the financial statements. The RDA was dissolved on 2/1/2012.
In January of 2011, the RDA Board approved the re-payment of $6,021,420 of advances (loans) from the City.
129
CITY OF HIGHLAND
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Year Population (1)
Personal
Income (2) (in
thousands)
Per Capital
Personal
Income (3)
Unemployment
Rate (4)
2014 54,033 1,173,489 2 1,718 1 0.6% 2015 53,340 1,121,794 2 1,031 7 .0% 2016 53,645 1,165,867 2 1,733 5 .6% 2017 54,377 1,170,411 2 1,524 5 .0% 2018 54,761 1,215,505 2 2,196 5 .1% 2019 55,778 1,278,521 2 2,921 4 .1% 2020 55,323 1,353,800 2 4,470 3 .8% 2021 55,060 1,471,700 2 6,729 1 0.0% 2022 56,546 1,552,565 2 7,456 7 .9% 2023 55,984 1,722,559 3 0,768 4 .1% 2024 55,676 1,884,675 3 3,850 4 .8% 2025 57,088 1,945,762 3 4,083 5 .1% Sources: (1) State Department of Finance/HdL
(2) Calculated using City of Highland per capital personal income (3) HdL
(4) HdL
130
Department 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 City clerk 2.500 2.500 1.950 1.950 1.950 1.950 1.950 1.950 1.850 1.850 General government 2.150 2.150 3.750 3.750 3.750 3.750 3.850 3.850 3.800 3.800 Personnel 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 Finance 4.000 4.000 4.500 4.500 4.500 4.500 4.500 4.475 4.125 4.150 Public works (Gas tax) 4.900 4.900 4.350 4.350 4.350 4.350 4.300 4.300 4.300 4.300 Engineering 2.150 2.150 1.350 1.350 1.350 1.350 0.350 0.350 0.350 0.350 Planning 5.250 5.250 5.050 5.050 5.050 5.050 5.050 5.050 5.150 5.150 Public services 2.800 2.800 3.000 3.000 3.000 3.000 3.000 3.000 2.000 2.000 Building and safety 2.050 2.050 2.050 2.050 2.050 2.050 2.050 2.050 2.050 1.550 Code enforcement 4.050 4.050 2.900 2.900 2.900 2.900 2.900 2.900 1.900 2.400 Parks and trails 1.150 1.150 1.150 1.150 1.150 1.150 1.150 1.150 1.150 1.150 Graffiti 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 CDBG - - 1.400 1.400 1.400 1.400 1.400 1.400 1.400 1.400 Street/Storm Drain 0.050 0.050 0.050 0.050 0.050 0.050 - - - - HUD grant - - - - - - - - - - Assessment districts 1.200 1.200 1.200 1.200 1.200 1.200 1.200 1.200 1.200 1.200 Captial improvements 1.200 1.200 1.150 1.150 1.150 1.150 1.150 1.175 1.175 - AQMD AB 2766 - - - - - - - - - - Volunteer Services 0.750 0.750 0.750 0.750 0.750 0.750 - - - - General capital financing 0.450 0.450 0.250 0.250 0.250 0.250 - - - - General liability 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 Building services 1.000 1.000 0.850 0.850 0.850 0.850 0.850 0.850 0.850 0.850 Housing authority 0.750 0.750 0.700 0.700 0.700 0.700 0.700 0.700 0.450 0.450 Redevelopment/Successor agency - - - - - - - - 0.650 1.800
38.000 38.000 38.000 38.000 38.000 38.000 36.000 36.000 34.000 34.000 Source: City of Highland.
Full-Time Equivalent Employees as of June 30
Last Ten Fiscal Years
by Department
Full-time City Employees only
CITY OF HIGHLAND
131
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Police department:
Calls for service 38,456 38,763 42,729 42,729 47,283 47,083 46,493 48,187 46,337 48,204 Adult Bookings 1,346 1,446 1,577 1,577 1,377 1,342 1,787 1,344 1,673 1,557 Animal control services:
Calls for service 2,904 2,969 2,809 2,860 2,488 2,668 3,149 3,076 3,310 3,650 Impounds 1,354 1,666 1,376 1,523 1,170 1,266 1,467 1,453 1,540 1,556 Dog licenses issued 947 947 1,135 1,113 1,205 1,267 1,501 1,627 1,787 1,968 Public works:
Roadway maintained (miles) 143.60 143.60 143.47 143.47 143.47 143.35 142.67 142.67 142.67 142.67 Planning:
Applications 104 104 290 115 110 62 95 121 130 139 Building and safety:
Building permits issued 1,485 1,485 1,789 1,894 1,208 957 1,263 1,336 1,268 1,389 Administration:
New business licenses 456 456 474 283 503 316 312 343 247 366 Renewed business licenses 3,030 3,030 3,379 2,522 2,971 2,973 2,949 2,499 2,219 1,842 Parks:
Number of parks 7 7 7 7 7 7 7 7 7 7
Acreage 37.25 37.25 37.25 37.25 37.25 37.25 37.25 37.25 37.25 37.25
CITY OF HIGHLAND
Fiscal Year
Last Ten Fiscal Years
by Department
Operating Indicators
132
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Public works:
Corporation yards 1 1 1 1 1 1 1 1 1 1 Streets (miles) 143.60 143.60 143.47 143.47 143.47 143.35 142.67 142.67 142.67 142.67 Street lights 3,499 3,499 3,495 3,495 3,495 3,495 3,495 3,495 3,490 3,455 Traffic signals 57 57 57 57 57 57 57 56 55 54 Source: City of Highland
CITY OF HIGHLAND
Fiscal Year
Last Ten Fiscal Years
by Function
Capital Asset Statistics
133
THE CITY OF HIGHLAND MISSION AND VALUES
Highland is dedicated to the betterment of the individual, the family, the neighborhood and the community. The City Council and the staff of the City of Highland are dedicated to providing the quality of public facilities and services that its citizens are willing to fund and will do so as efficiently as possible.
This Mission is established to reflect the following beliefs which represent the predominant beliefs of the community. They express what matters most in the conduct of public affairs affecting the citizenry of Highland.
RESPONSIBILITY
Everyone in the community has rights and is responsible for their own actions.
SERVICE
Volunteer service is a valued community resource.
ACCOUNTABILITY
Public resources and finances are to be stewarded carefully and conservatively-we live within our means and will not place huge debts on future generations.
CREATIVITY
Creative solutions are the norm, not the exception.
NEIGHBORHOOD STABILITY
Neighborhood stability and a sense of ownership are to be encouraged and strengthened.
VISION
The community has a vision of the future and how it will get there.
FAMILY
Families are the basic unit of society and the essence of what makes our community.
All values should be encouraged at this family level.
Attachmen
t
2 Internal Control Repo
rt
F
Y25
Independent Auditor’s Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with
Government Auditing Standards
City Council
City of Highland
Highland, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of
America and the standards applicable to financial audits contai ned in
Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund in formation of the City of Highland (City),
as of and for the year ended June 30, 2025, and the related not es to the financial statements, which
collectively comprise the City’s basic financial statements, an d have issued our report thereon dated
November 20, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s in ternal control.
A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that the re is a reasonable possibility that a material misstatement of the entity’s financial statements will not be p revented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important eno ugh to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpo se described in the first paragraph of this section and was not designed to identify all deficiencies in in ternal control that might be material weaknesses or, significant deficiencies. Given these limitation s, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
1
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its complianc e with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance wit h which could have a direct and material effect on the determination of financial statement amo unts. However, providing an opinion on compliance with those provisions was not an objectiv e of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards .
Purpose of this Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is a n integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
November 20, 2025
2
Attachmen
t
3 Audit
C
onclusion Letter
FY25
November 20, 2025
City Council
City of Highland
Highland, California
We have audited the financial statements of the governmental ac tivities, each major fund, and the
aggregate remaining fund information of the City of Highland (C ity) for the year ended June 30, 2025.
Professional standards require that we provide you with informa tion about our responsibilities under
generally accepted auditing standards,
Government Auditing Standards,
and the Uniform Guidance, as
well as certain information related to the planned scope and ti ming of our audit. We have communicated
such information in our letter to you dated April 29, 2025. Pro fessional standards also require that we
communicate to you the following information related to our aud it.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropri ate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during the fiscal year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transacti ons have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial stat ements prepared by management and are
based on management’s knowledge and experience about past and c urrent events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements
were:
Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.
Management’s estimate of capital assets depreciation is based o n historical estimates of each capitalized item’s useful life. We evaluated the key factors a nd assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.
Management’s estimates for the net pension and total OPEB liabi lities are based on actuarial information provided by the California Public Employee Retireme nt System’s (CalPERS) actuarial office, and other sources. We evaluated the key factors and ass umptions to develop these liabilities in determining that the estimated liabilities are reasonable in relation to the financial statements as a whole.
1
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the f inancial statements were:
The disclosure of the fair value of investments in Note 2 to th e financial statements represents amounts susceptible to market fluctuation.
The disclosure of accumulated depreciation in Note 4 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosures for the net pension and total OPEB liabilities in Notes 5, 7 and 8 to the financial statements are based on assumptions for discount rates, etc., w hich could differ from actual experience. The notes disclose the differences in these liabili ties if different assumptions are used in estimating these liabilities.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with mana gement in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and l ikely misstatements identified during the
audit, other than those that are clearly trivial, and communica te them to the appropriate level of
management. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggrega te, to each opinion unit’s financial
statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, t hat could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated November 20, 2025.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain sit uations. If a consultation involves application
of an accounting principle to the City’s financial statements o r a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant ha s all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the applic ation of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional r elationship and our responses were not a
condition to our retention.
2
Other Matters
We applied certain limited procedures to Management’s Discussio n and Analysis and other required supplementary information, as listed in the City’s financial statements, which are required supplementary information (RSI) that supplements the basic financial statemen ts. Our procedures consisted of inquiries
of management regarding the methods of preparing the informatio n and comparing the information for
consistency with management’s responses to our inquiries, the b asic financial statements, and other
knowledge we obtained during our audit of the basic financial s tatements. We did not audit the RSI and
do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the supplementary information (e.g ., budgetary schedules, combining
statements, individual fund statements), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inqu iries of management and evaluated the
form, content, and methods of preparing the information to dete rmine that the information complies with
accounting principles generally accepted in the United States o f America, the method of preparing it has
not changed from the prior period, and the information is appro priate and complete in relation to our audit
of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistic al sections, which accompany the financial
statements but are not RSI. Such information has not been subje cted to the auditing procedures applied
in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City of Highland and is not intended to be, and should not be, used by anyone other than these
specified parties.
Very truly yours,
3
Attachmen
t
4 Appropriations
L
imit
FY25
INDEPENDENT ACCOUNTANT’S REPORT ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS
City Council
City of Highland
Highland, California
We have performed the procedures enumerated below to the accomp anying Appropriations Limit
worksheet of the City of Highland, for the year ended June 30, 2025. These procedures, which were
agreed to by the City of Highland and the League of California Cities (as presented in the publication
entitled
Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution)
, were performed solely to assist the City in meeting the requi rements of
Section 1.5 of Article XIIIB of the California Constitution. T he City’s management is responsible for the
Appropriations Limit worksheet. This agreed-upon procedures eng agement was conducted in
accordance with attestation standards established by the Americ an Institute of Certified Public
Accountants. The sufficiency of the procedures is solely the r esponsibility of those parties specified in
this report. This report may not be suitable for any other purpose. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors
included in those worksheets to the limit and annual adjustment factors that were adopted by
resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures .
2. For the accompanying Appropriations Limit worksheet, we adde d last year’s limit to total adjustments
and agreed the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our procedures .
3. We agreed the current year information presented in the acco mpanying Appropriations Limit
worksheet to the other documents referenced in #1 above.
Finding: No exceptions were noted as a result of our procedures .
4. We agreed the prior year appropriations limit presented in t he accompanying Appropriations Limit
worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures .
2 We were not engaged to, and did not, perform an examination, th e objective of which would be the
expression of an opinion on the accompanying Appropriations Lim it worksheet. Accordingly, we do not
express such an opinion. Had we performed additional procedure s, other matters might have come to
our attention that would have been reported to you. No procedu res have been performed with respect
to the determination of the appropriations limit for the base y ear, as defined by the League publication
entitled
Article XIIIB of the California Constitution.
We are required to be independent of the City and to meet our e thical responsibilities, in accordance with
the relevant ethical requirements related to our agreed-upon pr ocedures engagement.
This report is intended solely for the Information and use of t he City Council and management of the City
of Highland and is not intended to be and should not be used by anyone other than these specified
parties. However, this report is a matter of public record, an d its distribution is not limited.
November 20, 2025
3 CITY OF HIGHLAND
APPROPRIATIONS LIMIT COMPUTATION
2024 – 2025
2024-25
Change in Per Capita Personal Income 3.62%
Population Change
City Population Growth 0.12%
A. Change in Per Capita Personal Income Converted to a Ratio 1.0 362
B. Population Growth Converted to a Ratio 1.0012
Calculation of Growth Factor (A x B) 1.0374
2023 - 2024 Appropriations Limit 45,115,652
$
2024 - 2025 Appropriations Limit
(45,115,652 x 1.0374) 46,802,639
$
Attachment 5
Auditors’ Presentation
City of Highland
Annual Comprehensive Financial
Report
2024
-
25 Fiscal Year
Status of the
Audit
• Audit fieldwork has been completed
• Reports are in draft form
• Issuance of final reports on schedule for
early December
Various Reports
Issued
Opinion on Financial
Statements
Internal Control/Compliance
Report and Single Audit
Letter to the Finance
Committee
Appropriations Limit Report
Opinion on
Financial
Statements
• Management’s Financial Statements
• Auditor’s Responsibilities
• Express opinion
• Reasonable assurance
• Conduct audit in accordance with
applicable standards; obtain
evidence
• Procedures involve auditor
judgment
• Risk assessment
Opinion on
Financial
Statements
-
Continued
• Unmodified (clean) Opinion
• Required Supplementary Information
• MD&A Budgetary schedule,
Pension and OPEB schedules
• Limited audit procedures – no
opinion expressed
• Other Supplementary Information
• No new accounting pronouncements
required to be implemented this year
Financial
Statement
Key Figures
• Governmental Accounting Standards Board
(GASB) Statement No. 68 (Pensions)
• City has a Net Pension Liability of $6,230,264, a
decrease of $120,700 compared to prior year
• Revenues exceeded expenditures in the
General Fund by $10.4 Million (before
transfers)
• Unrestricted Fund Balance in General Fund
(assigned and unassigned) is approximately
141% of FY 2024
-
25 expenditures (16+
months reserves).
• GFOA best practices recommends a minimum of
2 months operating reserves
Financial
Statement
Key Figures
• General Fund Budget
• Revenues exceeded budgeted revenues by $1.49 million
• Expenditures under budgeted expenditures by $7.04
million
• Expenditures under budget by a large margin mainly due to the use of one
-
time revenues (ARPA)
Report on
Internal Controls
and Compliance
and Single Audit
• Internal control over financial reporting
• Consider internal control to determine
what audit procedures to perform
• Not to express an opinion
• Compliance testing – no opinion
• Test for noncompliance that could
be have a material impact on the
financial statements
• Opinion on compliance with federal
grant awards
Letter to Board
of Directors
• Required Communication from
auditors directly to “those charged
with governance”
–
Finance Committee
and City Council
• Estimates
• Sensitive Disclosures
• Difficulties or Disagreements
• Other Audit Findings or Issues
Appropriations
Limit Report
• Required by Article XIIIB of the
California Constitution
• Specific procedures to test the
calculation for the fiscal year ended
June 30, 2025
• Agreed - Upon Procedures Report
• No exceptions to the City’s
calculation
• Spending Limit from proceeds of taxes
• City is well below the
appropriations limit
Thank you
• Thank you to City staff, including Tish
and Michelle for their efficiency and
assistance throughout the audit!
Questions?
Staff Report
to the City Council
Agenda
Item
No.13.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Prepared By: Chastity Scott , Engineering Technician I Subject: Notice of Completion: Bid No. 2024-07, “9th Street Transit Stops, Sidewalk and Bikeway Improvements Project” (Project No. swk19001)
Recommendation:
1. Accept Bid No.2024-07, “9th Street Transit Stops, Sidewalk and Bikeway Improvements Project” (Project No. swk19001) as complete;
2. Authorize the Mayor to sign the Notice of Completion; and
3. Direct the City Clerk to file the Notice of Completion.
Fiscal Impact:
The original construction contract to Gentry General Engineering, Inc was $744,131.00. The final contract amount is $712,944.92, with a $31,186.08 (4.2%) savings. This project was funded with San Bernardino County Transportation Authority (SBCTA) Transportation Development Act (TDA) Article 3 Grant Funds $356,472.46 (50%) and Measure I Pass Thru Funds $356,472.46 (50%).
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
The Project completed approximately 1/4 mile of bikeways and sidewalk on the south side of 9th Street between Eucalyptus Drive and Victoria Avenue to complete a gap in the pedestrian and bicycle network. The scope included roadway widening, construction of new pavement, curb and gutter, sidewalk, drive approaches, striping and signage.
Attachments:
1. Project Map Location
2. Notice of Completion
RECORDING REQUESTED BY &
WHEN RECORDED MAIL TO:
CITY CLERK
CITY OF HIGHLAND
27215 BASE LINE
HIGHLAND, CA 92346
No APN
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is owner or agent of the owner of the interest or estate stated below in the property hereinafter described.
2. The full name of the owner is City of Highland.
3. The full address of the owner is 27215 Base Line, Highland, CA 92346.
4. All work of improvement on the property hereinafter described was substantially completed on or before October 10, 2025.
5. The work of improvement completed is described as follows: Project No.
SWK19001, “9th Street Transit Stops, Sidewalk and Bikeway Improvements Project” (Bid No. 2024-07).
6. The name of the original contractor for such work of improvement is Gentry General Engineering Inc.
7. The property on which said work of improvement is located at 9 th Street between Eucalyptus Drive and Victoria Avenue in the City of Highland.
___________________________ __________________________________________ Date and Place Penny Lilburn
Mayor, City of Highland
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the Mayor of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.
___________________________ __________________________________________ Date and Place Penny Lilburn
Mayor, City of Highland
Staff Report
to the City Council
Agenda
Item
No.14.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Maricela Marroquin, City Attorney
Prepared By: Lawrence Mainez, Community Development Director Subject: Amendment to (1) an Agreement between the San Bernardino County Flood Control District and the City Pertaining to the Purchase and Sale of 8.61 Acres of Vacant San Bernardino County Flood Control District Property Located Generally North of Greenspot Road and East of the SR 210 Freeway to Effectuate a 12-month Escrow Extension, and (2) an Agreement between the City and TREH Partners XV, LLC to Effectuate a 12-Month Escrow Extension as to the Same Property
Recommendation:
Authorize the City Manager to execute the necessary agreements and escrow documents to effectuate the subject escrow extension, including an amendment to the First Amended and Restated Purchase and Sales Agreement and Joint Escrow Instructions between the City and the San Bernardino County Flood Control District, and the Purchase and Sale Agreement between the City and TREH Partners XV, LLC, once the agreements are approved as to form by the City Attorney.
Fiscal Impact:
All costs related to the purchase of the subject San Bernardino County Flood Control District ("District") property, including due diligence, escrow closing costs, and CEQA costs (inclusive of mitigation related costs) will be paid by TREH Partners XV, LLC ("TREH Partners") as required under a separate Purchase and Sales Agreement between the City of Highland and TREH Partners. More recently, the District requested an "escrow extension fee" in the amount of $50,000.00, which will also be paid by TREH Partners directly to the District. The subject action is intended to extend the escrow closing date by twelve (12) months, and all provisions related to the Purchase and Sales Agreement and Habitat Mitigation Reimbursement Agreement remain the same. Since all costs will be paid by TREH Partners, there is no impact on the City's General Fund. Only nominal administrative City costs related to the review and approval of the amendments to the agreements to effectuate the subject escrow extension are anticipated.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
This twelve (12) month escrow extension request relates to a 8.6 acre parcel located in the City of Highland ("subject property") (See Attachment 1 - Property Location Exhibit) owned by the District. On January 17, 2018, the City and the District entered into a Purchase and Sale Agreement (PSA) and Joint Escrow Instructions that was further amended by the "First Amended and Restated Purchase Agreement" entered into on January 28, 2020 whereby the City agreed to purchase the subject property from the District. Concurrently, the City and the District entered into a Habitat Mitigation Reimbursement Agreement whereby the City agreed to perform certain mitigation work, with the District agreeing to reimburse the City if the work was completed by a certain date. The City also entered into a purchase and sale agreement with TREH Partners, whereby the City agreed to sell the subject property to TREH Partners through a double escrow. The parties approved extending the closing date of the double escrow through January 27, 2026.
On October 14, 2025, the City Council took action to authorize the City Manager to execute the necessary escrow documents to effectuate a 12-month escrow extension through January 27, 2027. However, since that action, the District has requested an "escrow extension fee" in the amount of $50,000.00 (as noted in the Fiscal Impact Section above). In addition, one of the responsible work items required of the District includes the removal of rock berms on the subject property. The timing for removal of the rock berm will be included in the necessary amendment documents as well.
Reason for Escrow Extension Request:
TREH Partners is purchasing the subject property from the City of Highland through a double escrow process with the District. TREH Partners has made significant progress with both the California Department of Fish and Wildlife Department (CDFW) and the US Fish and Wildlife Service (USFWS) on the finalizing the mitigation required by the Purchase and Sales Agreement with the City. TREH Partners has agreed to the Incidental Take Permit with CDFW and in May 2025 they purchased the parcel being conserved as the requirement for the Take Permit. Although TREH Partners has agreed in concept with the USFWS Palm Springs Office, the agency has been slow in processing the Habitat Conservation Plan (HCP). TREH Partners has made significant progress meeting its obligations under the Purchase and Sales Agreement, but still needs additional time to complete the associated USFWS Take Permit documents. In addition, the City and TREH Partners learned earlier in September that although a Cultural Resource Assessment was completed for the associated Greenspot Village and Marketplace Specific Plan Environmental Impact Report it is no longer acceptable to the USFWS due to it being 13 years old (the typical shelf life is 10 years). The City and TREH Partners were advised it will take 90 to 120 days for the USFWS to do the research and draft an updated Cultural Resource Assessment, and there is only one person assigned to the California area that does those types of reports/assessments. A Tribal Consultation will also now be required. Finally, the USFWS has significantly reduced its staffing, and the US Government shutdown during the month of October has significantly added to the slowdown in processing the HCP.
Based on the facts outlined above, staff is requesting the City Council again authorize the City Manager to execute the necessary agreements to effectuate the subject escrow extension for an additional twelve (12) months, which includes the $50,000 escrow payment (which will be paid by TREH Partners to the District) and the changes to extend the timeline for performance by the parties. This action will involve the City Manager approving the necessary amendment documents between the two parties; one between the San Bernardino County Flood Control District and the City of Highland, and one between TREH Partners and the City of Highland.
Once executed, the amendments will be submitted to escrow to extend the closing date to January 27, 2027.
Attachments:
1. Property Location Exhibit
Staff Report
to the City Council
Agenda
Item
No.15.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Prepared By: Jim Richardson, Public Works Manager
Subject: 2025-06 Highland City Hall Fence and Gates Contract Amendment
Recommendation:
1. Approve a contract amendment to the 2025-06 “Highland City Hall Fence and Gates Project” construction contract with Golden West Fence in the amount of $118,731 to provide additional fence and gate work at City Hall, Highland Police Department, and Lillian Lane at Hibiscus Street;
2. Authorize the City Manager to approve additional contract amendments up to 10% of the revised contract amount of $312,355 ($193,624+$118,731);
3. Approve a budget adjustment of $73,538 from 023-2505 Unreserved Designated Public Improvement account to 023-3890-6030 for the portion of work at the Highland Police Station: and
4. Approve a budget adjustment of $45,193 from the Unreserved/Undesignated Development Impact Fee (DIF) fund balance (Acct # 007.2100) to be expended from Facility Construction (Acct # 007-8330-6803) for City Hall and Lillian Lane at Hibiscus Street work.
Fiscal Impact:
The requested amendment in the amount of $118,731 is proposed to be expensed from the Development Impact Fee Public Improvements and Facility Construction Accounts.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
On October 14, 2025, the City Council awarded a contract to the lowest responsive bidder, Golden West Fence, in the amount of $193,624 to install a 7' high permitter fence and gates around the rear of City Hall. This is a High Priority item in the 2025/2026 Work Program. This project will enhance security for both personnel and property and allow for safer and more convenient parking for City vehicles.
City staff recently determined it would be beneficial to amend the current contract with Golden West Fence to add the following three (3) items:
1. Revise the number of vehicle access gates from 3 to 4 at City Hall due to an inadvertent omission in the original contract. The addition of the access gate is an increase of $16,280.
2. On September 18, 2025, staff presented the Public Safety Subcommittee with a recommendation to close the road along the east side of Community Park on Lillian Lane at Hibiscus Street to address illegal parking, drug use, and restricted access for police enforcement due to the narrow road. The Subcommittee reviewed and recommended Lillian Lane be closed off to pedestrians and vehicle access, contingent upon using materials matching the style and height of the existing fence around Community Park, adding a gate with a Knox Box for emergency access. The estimated price for this work is $28,913.
3. The Highland Police Department gates as constructed are automatic electronically operated swing gates. These gates have loop detectors that are embedded into the asphalt that are designed to pick up vehicles approaching the gates to exit the facility. During an emergency call, multiple vehicles frequently exist the facility at high speeds, which can render the loops inaccurate, allowing the gates to begin closing while additional vehicles are in the process of exiting. This has resulted in damage to police vehicles. Efforts to mitigate the issue with available technology have not proven effective. Police staff have other facilities with automatic rolling gate configurations that allow approaching officers to visually notice the gate movement and do not have any of the problems associated with the swing gates. This item is to replace the existing swing gates with a rolling gate to address the issue. The estimated price for this work will be $73,538, which includes $38,959 for the north gate and $34,579 for the east gate.
Attachments:
1. Highland City Hall Fence and Gates Contract Amendment Site Maps
Staff Report
to the City Council
Agenda
Item
No.16.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Octavio Duran, Public Works Director/City Engineer Prepared By: Octavio Duran, Public Works Director/City Engineer Subject: Second Contract Amendment to the Professional Services Agreement with HDR Engineering, Inc. for the Victoria Avenue Drainage and Street Improvements Project (Project No. str17002)
Recommendation:
1. Approve the second contract amendment to the Professional Services Agreement with HDR Engineering, Inc. to provide additional engineering and right-of-way services for the Victoria Avenue Drainage and Street Improvements Project in the amount of $272,924; and
2. Authorize the City Manager to approve additional contract amendments up to 10% of the revised contract amount of $901,919.
Fiscal Impact:
This project is included in the City’s adopted Capital Improvement Program (CIP) and has sufficient funding to cover the cost of this contract amendment.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
Project No. str17002 includes the improvement of Victoria Avenue between Highland Avenue and 3rd Street within the cities of Highland and San Bernardino. The portion of the project between Highland Avenue and 9th Street was completed in 2019 and since then the primary focus has been the section of roadway between 9th Street and 3rd Street. The Project has four major components:
• Drainage Improvements – Victoria Avenue (3rd Street to 9th Street) • Intersection Improvements – Victoria Avenue/5th Street intersection • Street Improvements – Victoria Avenue (3rd Street to 6th Street) • Pavement Rehabilitation – Victoria Avenue (3rd Street to 9th Street)
On October 10, 2017, the City Council approved a Professional Services Agreement with HDR Engineering Inc. (HDR) in the amount of $371,696 to provide engineering services for the Victoria Avenue Drainage and Street Improvements Project (Project No. str17002). In 2022, the City was awarded a $2 million federal grant for this project under the Cycle 1 Community Project Funded Congressional Directed Spending (CPFCDS) Program. To comply with federal procedures for acquisition of the needed rights-of-way, on February 14, 2023, the City Council approved an amendment to the HDR contract for additional engineering and right-of-way services in the amount of $257,299, increasing the total contract amount to $628,995.
HDR has been in close coordination with project stakeholders including IVDA, Caltrans, City of San Bernardino and utility companies, and most recently encountered some challenges that have significantly increased the estimated project construction cost. IVDA has expressed concerns that structural damage to its City Creek Channel, which is located west of Victoria Avenue along the south side of 3rd Street, could potentially be caused by the 100-year storm flows discharged into the Channel from the City’s proposed master-planned Victoria Avenue Storm Drain. IVDA proposed that the City reconstruct a large section of the existing channel downstream from the outlet of the proposed storm drain in order to allow a tie in. This proposal would increase the project's construction costs by approximately $6 million. In addition to the increase in scope, continued escalation in the construction market has caused a significant increase in project construction costs by 1.5 times between 2019 and 2025. Advertising the project as originally planned and accounting for IVDA's required improvements would cost an estimated $20 million, making the project infeasible.
In order to maintain the viability of the project, City staff has requested HDR to redesign the storm drain to serve as an interim facility having a smaller size and a shorter extent, capturing a much reduced amount of storm flows that would not trigger the need to construct a large section of City Creek Channel. While reducing the scope of the project to capture a smaller amount of stormwater flows, the project will still provide drainage improvements and allow for the delivery of the remaining street improvements that include roadway widening, pavement rehabilitation, signal improvements and pedestrian improvements. The proposed reduction in the scope and extent of drainage improvements is anticipated to result in a much lower project construction cost of $7.8 million (2025).
In addition to the re-design request, City staff has requested HDR to expand its scope of work to include the tasks below that were not a part of the original contract or the first contract amendment. Some of these tasks were originally intended to be completed by in-house staff to reduce costs. However, it would be more efficient for the consultant to complete them due to their expertise and due to limited staff resources.
• Design pavement rehabilitation for Victoria Avenue from 6th Street to 9th Street. • Design signal interconnect conduits for Victoria Avenue from 3rd Street to 9th Street to accommodate future installation of interconnect wiring. • Prepare new appraisals and update existing appraisals for acquisition of all needed permanent drainage easements and roadway rights-of-way, and temporary construction easements.
• Provide all necessary services to secure Caltrans’ approval of project Right-of-Way Certification and Utility Certification.
• This proposed contract amendment will enable 100% completion of all engineering design and right-of-way works to be performed by HDR.
For reasons described in the HDR fee proposal letter attached and as summarized above, additional engineering and right-of-way services are needed to complete project design and rights-of-way acquisition. The proposed second contract amendment will increase the final contract amount by $272,924 to a total of $901,919. Staff negotiated the fee and determined the costs are reasonable for the scope. These services are critical to the project and clearing the environmental phase will allow for the City to request the obligation of the federal grant funds. Construction of the project is estimated to begin in Fall 2026 and will be funded through various sources including General Capital Financing, a Federal Earmark Grant, City of San Bernardino, and a Community Credit Fund grant from the Yuhaaviatam of San Manuel Nation.
Attachments:
1. Victoria Avenue Vicinity Map
2. HDR Cost Proposal
9th St
Highland Ave
Victoria Ave
5th St
Lynwood DrSterling Ave
210
Pacific St
6th St
Lankershim 6th St
Lankershim ES
Cypress
Thompson ES
Gorgonio HS
San
Pacific ES
Highland-
Andreas HS
San
3rd St
ES
Cypress St
Base Line
14th St
13th
Cole
ES
Case St
Del Rosa Ave
Springs ES
Warm
Olive St
City of San Bernardino
Elm Street
Sterling Ave
Vine St
San Manuel
Casino
City of Highland
Victoria Ave
Palm Ave
Church Ave
Drainage Improvements
Street Improvements
LEGEND
Intersection Improvements
Cities of Highland & San Bernardino
Victoria Avenue Improvements
March, 2019
COMMUNITY CREDIT FUND
1 November 2 4 , 2025
Mr.
Octavio
Duran
Jr., PE
Public Works Director/City Engineer
City
of
Highland
27215 Baseline
Street
Highland,
CA
92346
Subject
:
Amendment Request to Provide Additional Engineering and Right -
of
-
Way
Professional Services.
Reference:
City Project No. str07002
–
Victoria Avenue
–
3rd Street to 9th Street
Mr.
Duran
,
HDR
Engineering, Inc. (HDR)
is pleased to continue provid
ing
professional services
to
the
City of High
land
for
Victoria
Avenue from 3rd Street to 9th Street project (Project) . Several changes and
requests
have occurred that resulted in additional work by the HDR team that was not accounted for in our contract.
To secure the federal funding
for
Right
-
of
-
Way (ROW) acquisition
that
the City
applied for
will require
Caltrans to certify the Project ROW
and
Utilities
.
To do so the
City must certify
that
all
Uniform Act requirements have been met
.
The certification requires
ROW
work
including
, but limited to
plans, utility relocations, appraisals
, and payments
for real property
if needed.
A
t
you
r
request HDR
will
assist
in achieving
this goal by
pr
ovid
ing
utility
coordination services and ROW
needs for the Project to
receive Federal Aid
for ROW
acquisition.
Our scope for this effort is provided in Task
1 belo
w.
Through the Project progression it was discovered that
there w
ere
discrepancies in
land
use
values
for the initial hydrology and hydraulics analysis performed in 2019, and the City’s Ge
ne
ral Plan
. In addition,
parcels
that were vacant when the initial
analysis was
performed are now developed
.
Another item is that
the
tributary
drainage areas
increased
.
These combined to trigger
the need for an updated Project Hydrology and Hydraulics analysis and report.
As directed by the City
HDR perform
ed
new hydrology and hydraulic calculations and
prepare
d
an updated Hydrology Report
.
The team
provided
additional coordination
services for the City to address the IVDA comment coordinate letter dealing with the comparison to the future overall City Creek By
-
P
ass
C
hannel
I
mprovements
R
eport.
T
his a
dditional hydrology
study
and hydraulic design work required for additional drainage areas
identified
,
recent
land use modifications
and coordination with IVDA for
the
P
roject
that will include additional design
for
an interim
reduced storm drain system
.
Our scope of
work for these efforts is provided in Task 2 below.
2 This interim storm drain system that connects to the City Creek bypass channel will become a part of the Project. A future project will install the ultimate storm drain system to meet the demands of City’s General Plan land uses. As directed by the City, HDR prepared the interim storm drain plans, specification and estimates which will
be included
in
the Project’s constr
uction package.
Our scope of work for these efforts is provided in
Task 3.
Additional Right
-
of
-
Way
is
required to accommodate the changes brought on by the
revised drainage system. Update
d
appraisals along with title reports, offer packages,
documentation, coordination and closeout
are
included in Task 4.
The Project
roadway
limits
have
also
been
extend
ed
to
accommodate
pavement
rehabilitation f
rom
6th Street to 9th Street a t the City’s request. Signing, Striping, and Pavement Markings plans are
also required.
Our scope of work for these efforts is
provided in Task
5 .
The
City requested that traffic signal interconnect
conduit, pullboxes
,
and
pull rope
plans
be
prepared
as a part of the project from
3rd Street to
9t
h
Stree
t.
Our scope of work for
these efforts is provided in Task 5.
HDR
has not received a billable rate
adjustment
since 2023
.
The
attached Detailed Labor
and Fee
Breakdown
includes
rate
increases that
better
align with our current billing rates
.
SCOPE OF SERVICES
T ASK 1 – Utilities
Utility Coordination Services Project Managemen t:
Provide Utility Coordination services in accordance with Caltrans Local Assistance Procedures
Manual
(LAPM)
requirement
s.
W
ork
with
impacted
utility
owners
to
assess the
project’s
impact
on
their
facilities and assist with
determination of liability for utility
relocations.
Collaborate
with the City to review project assignments and establish clear lines of communication, procedures, and protocols to keep the team on track to reach goals.
Utility Liability Claim :
Utility Verification Letter s (UVL) will be prepared and issued requesting the utility owner confirm the accuracy of the
ir
utility facilities depicted on
the preliminary
utility plan
s
and
owners will provide primary and secondary contacts for their agency .
This amendment
assumes a 30
-
working day response to the UVL from the respective utility owners per Caltrans requirements.
HDR w
ill plot the response into the revised utility plan
s
.
Perform
QA
/QC of the
updated
utility plan
s
based on the utility owner responses
will be performed
.
Deliverables: Utility Verification Letters
Preliminary Utility Plan s
3 U tility Coordination and Utility Plans :
HDR will
collect the Utility Relocation Plans from each utility owner for review and
approval. Once the final Utility Relocation Plans have been agreed to
the Notice to Owner
(NTO)
will be prepared
, approved
and issue
d
to
the utility owners in franchise. If utility
relocations cannot be completed prior to construction, then utility owners’ relocation work will need to be coordinated with the project staging plan and performed concurrently with construction. It is the responsibility of the utility owner to obtain all Local Public Agency (LPA) permits necessary for any relocation.
Deliverables:
Utility Relocation Plans (sourced from utility owners)
DRAFT
Notice to Owners (NTO)
FINAL NTOs
Utility
Resident Engineer (RE) files
Caltrans Utility Certification:
All federally funded projects require Caltrans Right of Way Certification. The HDR team is prepared
to
obtain
utility certification documenting that all utility coordination activities were conducted in accordance with
Caltrans requirements
.
HDR
will prepare the utility
Liability Package on behalf of the City that will include the Report of Investigation form and compilation of the necessary backup documents.
HDR
will evaluate utility submittals for
correctness and consistency prior to Caltrans review and approval as part of the project certification process.
Deliverables:
Caltrans Utility Certification Liability Package
TASK
2 –
Additional Hydrology and Hydraulic Services
As directed by the City,
HDR perform
ed
new hydrology and hydraulic calculations and
prepare
d
an updated Hydrology Report due to additional drainage areas added to the P
roject
and new developments construction
that
ha
ve
occurred since the report was
originally prepared in 2019. Updates to the hydrology report were also needed to change the land use values for specific properties to match the City General Plan. HDR performed additional coordination services for the City t
o address the IVDA comment coordinate
letter
dealing with the comparison to the future overall City Creek By -
P
ass
C
hannel
I
mprovements
R
eport.
Deliverables:
Updated Hydrology and Hydraulic Report
T
ASK
3 –
Interim Victoria Ave Drainage System
Design
As directed by the City,
HDR shall
prepare
interim
storm
drain design plans along Victoria
Ave that accommodate an interim reduced capacity
storm drain system
that will be
upgraded
in the future to
provide the necessary capacity of the tributary area. It is understood
that the
proposed storm drain improvements will be undersized based on current
hydrology study and
4 they are not intended to meet
the ultimate hydrology requirement
s
. The work required to
complete this task will include:
•
Prepare
plans, specifications and estimates for the
interim
storm
drain
system.
•
Prepare design details for the connection to the
existing
City Creek Bypass Channel
•
Update the existing roadway plans on Victoria Avenue from 3 rd Street to 6th Street due to new storm drain
alignment.
•
Updated cu
rrent
cost estimate and specifications to accommodate this new Project work
.
Deliverables:
•
Final
Interim
Storm Drain P
lan
s
•
Revised Cost Estimate
for Interim Storm Drain
•
Revised Project Specifications
for Interim Storm Drain
Task
4 –
Right of Way
Update
Appraisals
for 7
Larger Parcels
Appraisals for each (7) of impacted propert
ies
will require an updated appraisal. Accordingly,
updated appraisals to include permanent and temporary easements –
including drainage
easements will be prepared and “desk” reviewed. In compliance with Federal Regulations, formal review appraisals will be
prepared.
Assumptions:
It is presumed that the appraisals will be addressed as “strip takings”. Meaning, the real estate interest to be acquired is not viewed as significant and will not necessitate a before and after analysis of the larger parcel that includes the quantificati on of severance damages.
If the acquisition area(s) are not strip
takes,
then a more comprehensive appraisal report
w
ould
need to be prepared
and
is
not included in our fee estimate
.
Deliverables:
Updated Narrative Property Appraisals and Review Appraisals
Property Rights Negotiations/Acquisition
Permanent and temporary property rights will be acquired to support the project. Said appraised property rights will be identified and appropriately defined in salient documents consisting of Offers to Purchase, Appraisal Summary Statements, Just Compensa tion
Memorandums, Purchase and Sale Agreements. Escrows will be opened and monitored closely to transaction closing.
Assumptions:
Project (City) will approve Just Compensation recommendations and authorize Offers to Purchase to be tendered.
5 Deliverables:
Property rights control by either a recorded deed, possession and use agreement, purchase,
and sale agreement with right of entry clause. In some
instances,
an offer to dedicate/donate
may be obtained.
Right of Way Certification
–
Caltrans District 8
Caltrans District 8 provides oversight to this project as federal funds are involved.
Accordingly, close coordination will be required. Caltrans has instituted a “lock step” iterative process as it pertains to Right of Way Certification preparation, revi ew, and approval.
Deliverables:
Preparation of a Right of Way Certification
package
that includes a Utility Relocation section
that is in compliance with regulations. Approval of Certification will enable the project to be advertised and awarded for construction.
T
ASK
5 –
Victoria
Ave
Pavement Rehab
Design
Plans
, Signing, Striping and Pavement
Marking Plans
(6th Street to 9th Street) , and Traffic Signal Interconnect Plans (3rd Street to 9th Street)
The City decided to e
xtend the limit
s
of the
Project
roadway plans on Victoria Ave from
6th St
to 9 th St to accommodate pavement rehab c onstruction activities . This pavement rehab includes
grind and
overlays
of existing AC pavement
. HDR will prepare
100%
pavement
rehabilitation
, signing, striping and pavement marking, and traffic signal interconnect p
lans,
specifications, and estimate (PS&E) for the bid package. The work expected to be completed with this task includes:
•
Prepare additional roadway
pavement
improvement plans from 6th Street to 9th St.
•
Updated cu
rrent
cost estimate and specifications
to accommodate this
additional
scope of
work
.
Assumptions:
•
No additional survey will be required
for
this
work.
•
No field walk with City staff will be performed
•
No potholing of existing utilities will be
performed.
•
No additional roadway widening/profiling, curb, gutter, sidewalk, pedestrian ramps,
streetlights, traffic signals are included in this
scope.
•
No additional right of way will be required
for this additional scope of
work.
•
No subsurface investigation or testing is included in
this
scope.
•
Signal interconnect plans
will
include conduit, pullboxes and pull rope only
Deliverables:
•
90%
Plan
se
t
6 •
100%
approved for construction
Plans.
•
Revised Cost Estimate
•
Revised Project Specifications
HDR’s
fee to provide these services is
$
272,924
.
We appreciate th
e
opportunity to
continue supporting the City on this important project. Please see the
attached proposal
for the
fee
breakdown.
If you have any questions, please call
Scott Bacsikin
(
714
)
345
-
4609
Respectfully,
HDR
Engineering,
Inc.
T
homas T.
Kim,
P.E.
R. Scott Bacsikin
, P.E.
Principal
-
in
-
Charge
Project
Manager
Senior Vice President
Vice President
Copy to
: M
r
. Ernie Wong
Project Manager
Sr. Project Design
Engineer
Senior
Engineer/Specs
CADD
QA/QC
Clerical
Administration
Burdened Hourly Rate $305 $285 $295 $212 $300 $145
Task 1 Utilities
Utility Coordination Services Project Management 2 16 18 $2,930 $4,164 $7,094 Utility Liability Claim Letters
2 8
10 $1,770
$2,395
$4,165
Utility Coordination and Utility Plans
4 4
$1,140
$3,246
$4,386
Caltrans Utility Certification
4 4
$1,220
$21,977
$23,197
Utility Coordination Meetings (5 total)
6 5
11 $3,255
$1,500
$1,200
$5,955
$10,315
$1,500
$32,982
$44,797
Task 2
Additional Hydrology and Hydraulic Services
Perform new hydrology and hydraulic calculations
8 20
4 32
$9,340
$9,340
Coordination with IVDA on City Creek Bypass Channel
8 16
24 $7,000
$7,000
Update Hydrology Report and Hydraulics Report
16 42
4 4
66 $18,630
$18,630
$34,970
$0
$0
$34,970
Task 3
Interim Victoria Ave Drainage System Design
Revise drainage plans for interim storm drain system
12 100
24 136
$39,360
$39,360
Update specifications for interim storm drain system
4 4
16 4
28 $8,280
$8,280
Update Engineer's estimate for interim storm drain system 2 16
8 26
$7,570
$7,570
Prepare City Creek Bypass Channel connection detail plans 8 60
16 24
108
$30,132
$30,132
Update roadway design plans to accommodate interim storm drain system 2 40
12 24
78 $21,754
$21,754
$107,096
$0
$0
$107,096
Task 4
Right of Way
Project Management/Meeting/Reporting
4 16
20 $3,540
$4,550
$8,090
Update appraisals for 7 larger parcels
2 2
$610
$23,100
$23,710
Review appraisal updates for 7 larger parcels 0 $0 $5,400 $5,400 Right of Way Certification - Caltrans District 8
4 4
$1,220
$12,200
$13,420
$5,370
$45,250
$0
$50,620
Task 5
Victoria Ave Pavement Rehab Design Plans
Prepare 100% plans for pavement rehab scope from 6th St to 9th St 1 18
4 23
$6,635
$6,635
Signing, Stiping, and Markings 100% plans from 6th St to 9th St (3-sheets) 6 24
4 34
$9,870
$9,870
Update cost estimate to include pavement rehab scope from 6th St to 9th St 2 6
2 4
14 $3,500
$3,500
Revise Project Specifications
2 2
4 1
8 17
$2,640
$2,640
Traffic Signal Interconnect Plan
8 2
2 8
4 24
$6,496
$6,496
$29,141
$0
$0
$29,141
$186,892 $46,750 $32,982 $266,624
$2,500 $2,500
$3,200
$3,200
$600
$600
$2,500 $3,200 $600 $6,300
$189,392 $49,950 $33,582 $272,924
69.39% 18.30% 12.30% 100.00%
Epic
Other Direct Costs
Labor Sub Total
Labor Sub Total
Total Labor
HDR
Paragon
HDR Team - Detailed Labor and Fee Breakdown
3rd and 5th Street - Victoria Avenue Storm Drain and Roadway Improvements 10/30/2025 Epic
TOTAL PROJECT
FEE
TOTAL FEE HDR
TOTAL ESTIMATED FEE (NOT TO EXCEED)
PERCENT OF TOTAL FEE
Total Other Direct Costs
Paragon
TOTAL HOURS HDR
Labor Sub Total
Labor Sub Total
Labor Sub Total
Highland - Victoria Avenue Amendment Fee 11242025.xlsx
HDR Engineering, Inc.
06/01/09
Staff Report
to the City Council
Agenda
Item
No.17.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Alondra Muñoz, City Clerk
Prepared By: Alondra Muñoz, City Clerk
Subject: City Manager Report and Comments (Work Program, Regional/Legislative/ Development Issues, Subcommittees, etc.)
Recommendation:
Discussion and possible action.
Fiscal Impact:
None.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
Attachments:
None
Staff Report
to the City Council
Agenda
Item
No.18.
Date: December 9, 2025
From: Carlos Zamano, City Manager
Reviewed By: Alondra Muñoz, City Clerk
Prepared By: Alondra Muñoz, City Clerk
Subject: Councilmember Comments (Agency/Committee/AB 1234 Reports, District Updates, etc.)
Recommendation:
Discussion and possible action.
Fiscal Impact:
None.
Public Notice:
The agenda for this item was posted at the three locations per Resolution No. 2011-047 and on the City’s website.
Background:
Attachments:
None