CITY OF LOMA LINDA
CITY COUNCIL AGENDA
REGULAR MEETING OF JANUARY 11, 2022
A regular meeting of the City Council of the City of Loma Linda is scheduled to be held Tuesday, December 14, 2021 in the City Council Chamber, 25541 Barton Road, Loma Linda, California. Pursuant to Municipal Code Section 2.08.010, study session or closed session items may begin at 5:30 p.m. or as soon thereafter as possible. The public meeting begins at 7:00 p.m.
Reports and Documents relating to each agenda item are on file in the Office of the City Clerk and are available for public inspection during normal business hours. The Loma Linda Branch Library is also provided an agenda packet for your convenience. The agenda and reports are also located on the City’s Website at www.lomalinda-ca.gov.
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office, 25541 Barton Road, Loma Linda, CA during normal business hours. Such documents are also available on the City’s website at www.lomalinda-ca.gov subject to staff’s ability to post the documents before the meeting.
Persons wishing to speak on an agenda item, including any closed session items, are asked to complete an information card and present it to the City Clerk prior to consideration of the item. When the item is to be considered, please step forward to the podium, the Chair will recognize you and you may offer your comments. The City Council meeting is recorded to assist in the preparation of the Minutes, and you are therefore asked to give your name and address prior to offering testimony.
The Oral Reports/Public Participation portion of the agenda pertains to items NOT on the agenda and is limited to 30 minutes; 3 minutes allotted for each speaker. Pursuant to the Brown Act, no action may be taken by the City Council at this time; however, the City Council may refer your comments/concerns to staff or request that the item be placed on a future agenda.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (909) 799-2819. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible.
A recess may be called at the discretion of the City Council.
Meetings are accessible to people with disabilities. Every attempt will be made to swiftly address each request. Requests in advance of the meeting will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the City Clerk at [email protected] or (909) 799-2819.
THE CITY COUNCIL CHAMBERS WILL BE OPEN TO THE PUBLIC
PHYSICAL DISTANCING AND MASKS MAY BE REQUIRED
REMOTE PARTICIPATION WILL NO LONGER BE AVAILABLE
THE MEETING IS LIVE STREAMED AND THEN ARCHIVED ON
THE CITY’S YOUTUBE CHANNEL
https://www.youtube.com/channel/UCSOe1mP-1Iw9W8ZeX3CUS0Q A. Call To Order
B. Roll Call
C. Workshop – 6:00 p.m. – Community Room
Audit Committee - Audit Report for Fiscal Year 2020-2021 D. Invocation and Pledge of Allegiance – Councilman Lenart (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief, nonsectarian invocation. Such invocations are not intended to proselytize or advance any one, or to disparage any other, faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.)
E. Items To Be Added Or Deleted
F. Oral Reports/Public Participation - Non-Agenda Items (Limited to 30 minutes; 3 minutes allotted for each speaker)
G. Conflict of Interest Disclosure - Note agenda item that may require member abstentions due to possible conflicts of interest
H. Scheduled and Related Items
1. Presentation on the occasion of retirement for two City staff members [Mayor] a. Barbara Nicholson, City Clerk; and
b. Dave Lofton, Field Maintenance III
2. Joint meeting of the City Council and Housing Authority regarding presentation of Audit Report for Fiscal Year 2020-2021 [Rogers, Anderson, Malody & Scott/Finance]
3. Public Hearing - Master Sign Program P21-225:
a. DETERMINE the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15311(a) which applies to the placement of signage on existing facilities, and;
b. APPROVE Master Sign Program Application No. P21-225 for the design and installation of wall-mounted signs and monument signs at the surgical hospital located at 26780 Barton Road, based on the Findings contained in this Staff Report and subject to the Conditions of Approval. [Community Development] I. Consent Calendar
4. Demands Registers
5. Minutes
6. December 2021 Treasurer’s Report
7. Approve Agreement with Romo Plannng Group in the amount of $48,000 for interim contract planning services [Community Development]
8. Award of Contracts for [Public Works]:
a. Purchase of three (3) Ford F150 vehicles – Fairview Ford, Vendor b. Inspection and cleaning of water reservoirs – Inland Potable Services, Inc., Contractor
9. Accept as complete and authorize recordation of Notice of Completion for Walking Track Construction at Leonard Bailey Park – Kormex Construction (CIP 21-749) [Public Works]
10. Appropriate $12,000 from General Fund – Fund Balance to purchase and replace the meeting projector for the Council Chambers from Tierney [Public Works]
11. Appropriate $70,000 from the Assigned Fire Equipment Replacement fund balance and award the bid to purchase two (2) Ford F150 vehicles from Fairway Ford in the amount of $70,300, as well as, authorize the purchase of Code 3 response packages for both vehicles, not to exceed $78,700 [Fire]
12. Award Contract to Air Exchange, Inc. in the amount of $27,900 for the Plymovent System [Fire]
J. Old Business
K. New Business
13. June 7, 2022 General Municipal Election [City Clerk] a. Council Bill #R-2022-01 - Calling and Giving Notice of the Election b. Council Bill#R-2022-02 - Adopting regulations pertaining to Candidates Statements
L. Reports of Councilmen (This portion of the agenda provides City Council Members an opportunity to provide information relating to other boards/commissions/committees to which City Council Members have been appointed).
M. Reports Of Officers (This portion of the agenda provides Staff the opportunity to provide informational items that are of general interest as well as information that has been requested by the City Council).
N. Adjournment
Next meeting scheduled for February 8, 2022
POSTING
I, Lynette Arreola, City Clerk, do hereby certify and declare that on the 6 th day of January 2022, I caused this
agenda to be posted at the following three (3) locations, to-wit:
1. Loma Linda Branch Library, 25581 Barton Road, Loma Linda, California
2. City Council Chambers, 25541 Barton Road, Loma Linda, California
3. U. S. Post Office Annex, Newport Avenue, Loma Linda, California Lynette Arreola, City Clerk
City of Loma Linda, California
CC Agenda Item 2
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
CITY OF LOMA LINDA, CALIFORNIA
For the Fiscal Year Ended June 30, 2021
Prepared by:
City Manager’s Office
Finance Department
25541 Barton Road, Loma Linda, CA 92354
Telephone: (909) 799-2840 – Fax: (909) 799-2893
http://www.lomalinda-ca.gov
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CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement for Excellence in Financial Reporting xiii Principal Officials xiv
Organization Chart xv
FINANCIAL SECTION
Independent Auditor’s Report 1
Management’s Discussion and Analysis 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position 22
Statement of Revenues, Expenditures, and Changes in Fund Balance 23 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-Wide Statement of Activities and Changes in Net Position 25
Proprietary Fund Financial Statements:
Statement of Net Position 27
Statement of Revenues, Expenses, and Changes in Fund Net Position 28 Statement of Cash Flows 29
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position 32
Statement of Changes in Fiduciary Net Position 33
Notes to Basic Financial Statements 34
Required Supplementary Information (Unaudited)
Budget and Budgetary Accounting 83
Budgetary Comparison Schedules
General Fund 84
Loma Linda Housing Authority Fund 85
Regional Traffic Development Impact Fund 86
CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
Schedule of Changes in the Net OPEB Liability and Related Ratios 87 Schedule of OPEB Plan Contributions 88
Schedule of the Plan's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date 89
Schedule of Pension Plan Contributions 90
Supplementary Information:
Major Governmental Fund Budgetary Comparison Schedules:
Special Projects Construction Capital Projects Fund 93
Park Development Capital Projects Fund 94
Nonmajor Governmental Fund Financial Statements:
Combining Balance Sheet 99
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 107 Nonmajor Governmental Budgetary Comparison Schedules:
Nonmajor Governmental Funds – Special Revenue Funds:
Traffic Safety 116
Gas Tax 117
CASp CERT & Training 118
Measure I 119
Measure I MSART 120
Street Lighting District 121
Landscape Maintenance District 122
Air Quality Management District 123
Public Improvements Per MOU 124
Community Development Block Grant 125
Grant Fund 126
Citizens Option for Public Safety 127
Development Agreement Consideration 128
Nonmajor Governmental Funds – Capital Projects Funds:
Storm Drain 129
Traffic Impact 130
Fire Facilities 131
General Facilities 132
Federal/State Construction 133
Public Meeting Facilities 134
Public Library Facilities 135
Art in Public Places 136
Capital Projects Bond Proceeds 137
CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
Supplementary Information:
Nonmajor Governmental Funds – Debt Service Funds:
Water Bond Redemption 138
Assessment District 72-1 139
Loma Linda Financing Authority 140
All Custodial Funds:
Combining Statement of Fiduciary Net Position – Custodial Funds 142 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds 143
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 146
Changes in Net Position 148
Governmental Activities Tax and Assessments Revenues by Source 152 Fund Balances of Governmental Funds 153
Changes in Fund Balances of Governmental Funds 155
General Fund Tax Revenues by Source 157
Top 25 Sales Tax Producers 158
Taxable Sales by Category 160
Assessed Value and Estimated Actual Value of Taxable Property 161 Direct and Overlapping Property Tax Rate 162
Principal Property Taxpayers 163
Property Tax Levies and Collections 164
Ratios of Outstanding Debt by Type 165
Ratios of General Bonded Debt Outstanding 166
Direct and Overlapping Governmental Activities Debt 167 Computation of Legal Debt Margin 168
Pledged Revenue Coverage 170
Demographic and Economic Statistics 171
Principal Employers 172
Full-Time Equivalent City Government Employees by Function 173 Operating Indicators by Function 174
Capital Asset Statistics by Function 175
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City of Loma Linda
25541 Barton Road, Loma Linda. California 92354-3160 • (909) 799-2800 • FAX (909) 790-2890 Sister Cities Manipur Karnataka, India - Libertadore, San Martin, Argentina • www lomalinda-ca.gov i
January 3, 2022
To the Honorable Mayor, Members of the City Council, and Citizens of Loma Linda:
It is with great pleasure that we present to you the City of Loma Linda’s audited Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. The financial statements contained in this report are presented in conformity with generally accepted accounting principles (GAAP) and have been audited in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards (GAGAS) by an independent certified public accountants firm.
The Annual Comprehensive Financial Report includes the financial activity for all funds of the City, Housing Authority, Public Financing Authority and Fiduciary Funds. The report is organized into three major sections which include the Introductory Section, the Financial Section, and the Statistical Section.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation involves estimates and judgments by management. It is believed that the City’s internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions.
Rogers, Anderson, Malody and Scott, LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City of Loma Linda’s financial statements for the year ended June 30, 2021. The independent auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
The City of Loma Linda (the City), incorporated in September 29, 1970, is located on the south side of Interstate 10, east of the 215 Freeway. Loma Linda is home to the world famous Loma Linda University and Medical Center with over 10,260 employees, the one of the largest employer in San Bernardino County. Loma Linda (“Beautiful Hill”), originally known as “Mound City”, has a history of being a health-conscious community, and in 1993 became the first “smoke free” city in San Bernardino County. The Seventh-Day Adventist Church purchased the Loma Linda Resort Hotel from a group of businessmen and physicians from Los Angeles hospitals and converted it into the Loma Linda Sanitarium in 1905. The Sanitarium eventually became a full service medical facility and medical college, the forerunners of the Loma Linda University and Medical Center.
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
ii
Loma Linda covers an area of 7.7 square miles and has a resident population of 24,895, as certified by the State Department of Finance, as of June 30, 2021. The City once ranked one of the largest growing cities in San Bernardino County has only increased by 360 residents, mainly due to the turn-over in student population and limited new residential units. Loma Linda’s median income is $55,607, which is 12.3% lower than the average for San Bernardino County.
As presented in the ten year population history
chart, Loma Linda’s population has somewhat
plateau over the past 10 years. As of the 2010
Census which measured the population at
23,261, the State Department of Finance has
estimated a growth of 1,634 to its current total of
24,895, with the increase of 360 from 2020 to
2021.
The City is governed under charter by a City
Council/City Manager plan. The people of Loma
Linda elect five Council Members, from which
the City Council chooses the Mayor and the
Mayor pro tempore. The City Council appoints the City Manager, who is responsible for the daily operations of all City departments and the Council also appoints the City Attorney.
The City’s operating departments are Fire Department, Public Works, Community Development, Economic Development, City Clerk, Finance, Information Systems and Administration.
The City of Loma Linda is a full service Municipal Government. Services provided by the City include police (through contract with San Bernardino County Sheriff’s) and fire protection; utilities services for water, sewer and refuse (under contract with a private hauler); internet connection services; street and park maintenance; storm and waste water drainage maintenance; planning and zoning management; general administrative services; a senior center and a library branch (staffed by the County of San Bernardino).
Financial administration of the City is the responsibility of the Finance Director/City Treasurer, who supervises the City’s fiscal administration, which includes the day-to-day accounting, budgetary and reporting compliance, business licensing, utility billing operations and cash management.
THE REPORTING ENTITY
(Activities included in the report)
The report includes all activities carried out by the City as a legal entity, and also includes the activities of the Loma Linda Successor Agency to the Redevelopment Agency (Successor Agency), the Loma Linda Housing Authority (LLHA) and the Public Financing Authority (PFA), for which the City Council, acting in the capacity of Board to the Successor Agency and both Authorities, is financially accountable as determined under the guidelines of the Governmental Accounting Standards Board (GASB).
ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
The City’s fund accounting records are maintained using a modified accrual basis of accounting as explained in the Notes to the Financial Statements, following the accounting practices for governmental units as mandated by the Governmental Accounting Standards Board (GASB). 0 10,000
20,000
30,000
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Population History
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
iii
Basic City operations are accounted for in the City’s General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion.
The Government-Wide financial statements (Statement of Net Position and Statement of Activities) follow the accrual basis of accounting. As required by GASB, an accompanying summary reconciliation schedule is presented following the Governmental fund financial statements. These reconciliation schedules are presented on pages 22 and 25 in the body of the financial statements.
The Finance Director/City Treasurer is charged with the responsibility for the receipt and disbursement of all monies and to maintain control over all expenditures to insure that budget appropriations are not exceeded. The level of budgetary control, that is, the level at which expenditures are not to exceed Council approved appropriations is established at the fund, department, division, and categories (personnel, maintenance and operations, and capital outlay) of expenditure levels. Adjustments at the object level within major categories of expenditures are permissible at the department and division level, however, adjustments involving transfers between major categories of expenditures, between departmental and division budgets or between departments within the same fund, require Finance Director recommendation and City Manager approval. Adjustments between funds and additional supplemental appropriation funding require City Council approval. An encumbrance (commitment) accounting system is utilized as a technique to enhance budgetary control during the year. All appropriations lapse at year-end and become available for re-appropriation the following year, upon recommendation by the City Manager. Furthermore, the Citizen’s Budget Committee plays a major role in the budgetary recommendations to the City Council.
SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
During fiscal year 2020/2021 the City achieved many accomplishments that may not be evident from a review of the financial statements. Some of the more important accomplishments as well as on-going projects are summarized below.
Community Development Department
During the 2020/2021 Fiscal Year, the City’s Community Development Department, which comprises of Planning, Building and Safety, and Code Enforcement, achieved many accomplishments that may not be evident from a review of the financial statements.
Despite the Covid-19 pandemic and economic slowdown, the Department processed almost as many permits and entitlements as the previous fiscal year. Applications received by the Building and Safety Division were above their pre-pandemic numbers. In 2019, Building and Safety processed 638 applications. In 2020, the Division processed 726. And in 2021, it is expected for staff to process over 760 building permits. It is important to note, however, the amount of permits issued do not necessarily correlate with the amount of revenue generated by the Division.
Throughout the Fiscal Year, Building staff continued to check plans, issue permits and conduct inspections.
The Department’s Planning Division, which includes city planning and zoning activities, assisted the local residents, interest developers and business both in-person and online to ensure proposed uses complied with city codes and the General Plan. During the period, staff was able to complete several long-range planning goals such as the creation of a new one-map system that incorporated both the Land Use and Zoning Maps, a comprehensive update to the General Plan’s Land Use Element and Development Code, and the adoption of an Accessory Dwelling Unit Ordinance.
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
iv
Some of the noted development projects included the approval of a new 16-acre public park, a 3,960 square-foot fire station, a 3,287 square-foot community center, a 213 senior-living complex, and an O’Reilly’s Auto Parts store. In addition, due to the pandemic business closures, and to help mitigate the spread of the Covid-19 virus, a temporary permit was created to allow eating establishments to construct an outdoor dining setting that complied with local health regulations.
The Code Enforcement section was very active during the 2020/2021 Fiscal Year, too. The team worked in partnership with community members to preserve and enhance the safety, appearance and economic stability of our community. Animal licensing compliance continued to increase, animal impounds were maintained at the record low levels, and rabies vaccination compliance was improved. The City utilizes the City of Redlands for shelter services. As part of the pandemic response, Code enforcement assisted with meal deliveries to our most at risk member of the population.
Fire Department
During the fiscal year, City of Loma Linda Fire Department (Fire) focused a significant amount of time on COVID-19 related issues. Fire resources were successful in containing the majority of all residential structure fires to the building/residence of origin. Fires in commercial occupancies were also contained as small to medium sized incidents. All vegetation fire incidents in the city boundaries were controlled with the first alarm response resources. Rapid response and aggressive fire attack operations have not only mitigated the loss of personal property of our residents, but also protected vital property and sales tax revenues that the community relies on to fund essential services. A large portion of the department’s responses were for emergency medical incidents or traffic collisions to which the department deploys resources with rescue and Advanced Life Support capabilities. During and extremely busy fire season, Fire participated in 10 mutual aid incidents for which the City was reimbursed.
Fire completed and adopted a five (5) year strategic plan and began working on objectives recognized in the study. Fire purchased several pieces of apparatus to either compliment or replace its current fleet. The apparatus purchased include a tractor-drawn aerial truck, medic squad and a command vehicle. Fire also received a Type VI fire engine from the State through an agreement with the California Office of Emergency Services.
Our Fire Prevention division has been rebranded as Community Risk Reduction (CRR), which includes fire prevention, disaster preparedness and parking enforcement. CRR was instrumental in completing the Fire Engineering and Permitting elements of significant commercial developments in the City. Additional projects and facilities are in various stages of engineering or construction and will be welcomed additions to the community.
Information Systems Department
The City has completed additional upgrades to the city wide CCTV system providing better security coverage. This included additional cameras in city parks and new cameras at the fire stations.
Replacement computers are being rolled out as needed and data center infrastructure is being upgraded.
The City continues to prepare for the future of its Loma Linda Connected Community Program (LLCCP). The LLCCP, originally started in 2004, includes the deployment of an advanced citywide fiber optic network as well as modifications to building regulations to ensure that development will be designed to meet the needs of future communication technologies. The City building code requires all new commercial and residential developments (or re-models involving greater than 50% of the structure) to equip the new structures with a fiber-optics interface and copper cabling City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
v
throughout. In 2007, the LLCCP started expanding into commercial areas via organic growth at existing locations. Core router was replaced and modern solutions for BGP solutions were implemented. The fiber network is being extended into new home construction with additional customers coming online as the network expands.
New home construction is driving expansion of the residential infrastructure. The City continues to expand services to commercial customers through focused network expansion and custom designed services. Fiber infrastructure is also being utilized in the monitoring and control of water production, street lights, energy usage, and distributed computing throughout the city.
In response to the Covid-19 pandemic, all City facilities were upgrade to provide video conference rooms and conferencing infrastructure. Multiple laptops and mobile workstations have been deployed to allow for remote work when such situations arise.
Successor Agency, Oversight Board and Loma Linda Housing Authority:
Successor Agency
On February 1, 2012, the Redevelopment Agency was dissolved per the State of California. On this date all assets, property contracts, and leases of the former redevelopment agency transferred to a Successor Agency. The City of Loma Linda elected to become the Successor Agency for its former redevelopment agency. The Successor Agency created a Redevelopment Obligation Retirement Fund, which continues to make payments on the approved annual Recognized Enforceable Obligation Schedules (ROPS), maintain reserves, perform required enforceable obligations, enforce all rights for the benefit of taxing agencies and pursue the disposition of property based on the approved Long Range Property Management Plan (LRPMP). The annual ROPS for bi-annual operating periods of June – December and January – June must be approved by the Countywide Oversight Board, and submitted to the Department of Finance (DOF), State Controller’s Office (SCO) and County Administration Office (CAO) for final review and approval before funds are disbursed to the Successor Agency. In November 2016, the Successor Agency refinanced three outstanding bond issues totaling $33,710,000 into two bond issues (2016 A Tax Allocation Refunding Bonds and 2016 B Taxable Tax Allocation Refunding Bonds). The refinancing will yield saving of approximately $7,451,850 over the remaining term of the bonds, with final redemption on August 1, 2030.
Countywide Oversight Board
On July 1, 2018, in accordance with Health and Safety Code section 34179(j), the twenty six Redevelopment Agencies (RDA) oversight boards in San Bernardino County consolidated into one Countywide Oversight Board. The Countywide Oversight Board is composed of one member each appointed by the County Board of Supervisors, City Selection Committee, Independent Special District Selection Committee, San Bernardino County Superintendent of Schools, Chancellor of the California Community Colleges, a public member appointed by the County Board of Supervisors and a member of Recognized Employee Organization (Teamsters Local Union No. 1932). The Countywide Oversight Board has fiduciary responsibilities to holders of enforceable obligations and taxing entities that benefit from property tax distributions, and will continue to have a critical role in the RDA dissolution process until all Successor Agencies are formally dissolved.
Loma Linda Housing Authority
As part of the redevelopment agencies dissolution in February of 2012, in accordance with the laws applicable to the dissolution of redevelopment agencies, and after review and approval by the Oversight Board and the California Department of Finance, the City of Loma Linda designated City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
vi
the Loma Linda Housing Authority as the entity to receive the housing assets of the Redevelopment Agency. Housing assets of the Redevelopment Agency that were transferred include property assets, land, improvements, contracts, loan agreements, leases, rights to enforce agreements and covenants, among other items.
During fiscal year 2020/2021, the Loma Linda Housing Authority operated programs, including ongoing monitoring and enforcement of affordability covenants, leases and agreements related to housing matters as previously entered into by the Redevelopment Agency and similar contracts as entered into by the Loma Linda Housing Authority. Units that are monitored for ongoing affordability include 49 single-family ownership units (26 mortgages held by the Loma Linda Housing Authority and 23 down-payment assistance loans) and 238 privately-owned rental units (most of which are operated under ground leases made by the Redevelopment Agency, which the Loma Linda Housing Authority has assumed). The Loma Linda Housing Authority actively manages the loans and/or the properties. No properties were sold or transferred during the 2020/2021 fiscal year.
Pursuant to the Affordable Housing Agreement and its amendments with Mary Erickson Community Housing (“MECH”), a non-profit affordable housing developer, 4 houses were constructed on small lots on Juanita Street and sold to low income families, subject to long term affordability covenants. An additional agreement was negotiated with MECH for the purchase of an existing multifamily housing property, supported by funds loaned by the Housing Authority as well as proceeds from the sale by MECH of two small lots on Juanita Street that were conveyed to MECH. MECH is currently in the rehabilitation process and will be operating the multifamily (rental) units subject to long term covenants, assuring ongoing affordability.
Economic Development
A fourth national brand hotel, Courtyard by Marriot, is starting construction. Two large homebuilders, KB Home and Lennar, have completed construction of 236 single-family residences. Highpoint Properties is preparing to begin grading for an additional 200 homes in the City. Additionally, 175 condo units are either in the construction or pre construction phase, providing much needed housing to Loma Linda and its residents. Through the recently adopted “The Groves Specific Plan”, the City expects up to 30 acres of commercial space to be developed along the Redlands Blvd. corridor and California St. O’Riley Auto Parts is nearing a grand opening completing build out of the Dollar Tree Center. The Medical center has occupied the new 16 story hospital building bringing additional patients and staff to the community. Restaurants and small business seem to have weathered the pandemic and are returning to normal operations with minimal business failures. The City continues to provide an accepting and supportive environment for its business community.
Capital Improvement Program (CIP) Projects:
Public Works
During the 2020/2021 fiscal year, the Public Works Department completed or continued with the following projects: pavement rehabilitation on Anderson St. from Barton Rd. to Stewart St., Stewart St. from Anderson St. to Shepardson St. , Mound St. from Anderson St, to Shepardson St, Barton Rd from Benton St. to Mt. View Ave., Bento St from Lawton Ave. to Barton Rd. and Redlands Blvd. from Anderson St. to California St.; Waterline and street rehabilitation on Lawton Ave., Daisy Ave., Fern Ave., Tulip Ave., Aspen St, Orange Grove St., Richardson St., Acacia St., Hillcrest St., Poplar St., and Richmont Rd.; Repaired sidewalks and ADA access ramps as needed city wide; Planted trees at various locations; Various improvements to homes at Heritage Park historic properties; Continued with the water meter replacement program; Water treatment facilities continue to be City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
vii
monitored and adjusted for maximum efficiency; Emergency Operation Center (E.O.C) expansion; Various Art in Public Place projects; Continue fiber optic system enhancements to water well sites; Project plan checking continues on an as needed basis; Comply with required State and Federal regulation, including air quality, storm water, water conservation, and solid waste diversion.
LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
As presented in the Loma Linda General Plan (2009), Loma Linda is a unique community with strong ties to its religious, educational and healing arts roots. The Loma Linda University Medical Center (LLUMC), the Jerry L. Pettis Memorial Veterans Medical Center (VA Medical Center) and the VA Ambulatory Care Center provide much of the economic base of the community through the employment of a highly trained local labor force. The City has actively sought to expand upon this economic base with medical support services, research facilities, professional offices and lodging accommodations for visitors to the medical centers and community. In addition to increasing commercial and industrial opportunities, Loma Linda is in the process of expanding residential growth to provide an appropriate range of housing opportunities to accommodate the diverse work force needed by the economic base. The vision for the future of Loma Linda is for the City to have a balanced economy that meets the needs of the community and is a great place to live and do business. The goal is to attract high-tech industries to the City and create a diverse mix of high paying job opportunities to maintain the City’s high quality standard of living.
In 2021, the median price of a home in Loma Linda
was $554,812, an increase of $103,922 or 23.1%,
from $450,890 in 2020, according to Zillow.com. This
is an overall increase of 21.4% to the median price
since peaking at $457,200, in 2006. After several
years of fluctuations in home values due to uncertain
economic conditions, Loma Linda has seen a steady
increase in home prices since 2016 thru 2020. The
City of Loma Linda is expected to continue attracting
skilled and educated residents that can be provided
with local jobs as well as access to surrounding job
markets via Internet technology. The LLCCP has
established building requirements to enhance technological access as part of each new development project, providing the technological infrastructure for local residents to stay “connected” from home.
The Sales Tax History chart is a ten year
historical presentation of the City’s sales tax
revenue through fiscal year ending June 30,
2021. In 2021, the City received $3,673,588
in sales tax revenues, a decrease of 59.2%
or $5,334,463 from $9,008,051.
The City of Loma Linda continues to rely
heavily on retail sales to fund its general
government services. In order to improve
the availability of retail shopping facilities
and attract more shoppers to buy locally,
the City is hoping to continue expanding its sales tax base through economic development like recent commercial projects that have been added to our community and additional commercial development projects planned over the next few years.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Sales Tax History
$0
$200,000
$400,000
$600,000
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Median Housing Prices
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
viii
Property taxes are collected by the City and the
Successor Agency to the Redevelopment Agency,
with the bulk of the property tax collected by the
Agency. The chart on the right is a 10-year history
of the City’s General Fund property tax revenues
through fiscal year ending June 30, 2021. As
shown here, General Fund property taxes had
declined sharply over fiscal years 2010 through
2012, as the result of the housing market collapse
and the ongoing economic recession, but over the
next three years have steadily increased. In 2016,
net property taxes were less due to a reduced
amount of Residual Balances ($387,400 less)
received through the RDA Successor Agency ROPS disbursement process. On June 30, 2021, property tax revenues were reported at $2,135,818, a net decrease of $88,922 or 4.0% from fiscal year 2020 due to the fluctuation of residual receipts after the repayment of a large obligation by the Successor Agency. Property tax revenue is reported in the attached Statistical table on pages 170-172.
Median housing prices are just one factor in citywide assessed values. Tax-exempt properties continue to be a significant factor in the overall assessed values for the City and the former Redevelopment Agency, now the Successor Agency, in Loma Linda. As of June 30, 2021, the San Bernardino County’s Assessor reported an increase in city wide assessed property values of
3.36%, with Loma Linda showing a 3.72% increase.
Overall property tax revenues are showing signs of growth as valuations increase and increase in demand for housing within the City is addressed. Growth has decrease in the sales of existing homes and it’s evident in the 29.7% increase in property transfer tax from $112,203 in 2020 to $145,433 in 2021. With demand high and inventory low the value of existing homes has increased.
In order to address increased demands, the City has approved several housing projects that are currently under construction and is reviewing several other projects being proposed for the available undeveloped land within the City’s former merged redevelopment project areas. As a taxing entity, the City will receive pass-through taxes and residual balance revenues from the Successor Agency as property values increase and vacant land gets developed.
In fiscal year 2004/2005, as part of the Governor’s
Budget/Constitutional Protection package, a
Vehicle License Fee (VLF) swap was approved.
What the swap boils down to is an exchange of
the current VLF backfill from the State’s general
fund for an equivalent amount of property tax
revenues in fiscal year 2004/2005. Any future
growth in VLF revenue would be calculated in
proportion to the growth in gross assessed
valuation, including the then merged
Redevelopment Agency valuation. As presented
in the ten year history chart, VLF had been
increasing steadily since fiscal year 2009/2010,
with slight fluctuations up and down. In fiscal year
2020/2021, the City collected $2,504,220 in VLF revenue, an increase of $70,498 or 32.9% due to an increase in property values within the City.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Property Tax History
General Fund
City of Loma Linda
Vehicle License Fee (VLF)
Revenue History
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
ix
ACTUAL OPERATING RESULTS – GENERAL FUND
The following discussion summarizes the
annual operating results of the City’s General
Fund, for the fiscal year ended June 30, 2021.
Further details are presented in the individual
financial statements attached to this transmittal
letter.
The chart on the left illustrates the ten year
history of total revenues, expenditures and net
change in fund balance for the General Fund
through June 30, 2021. The Net Change in
Fund Balance figure in the chart includes
operating revenues, operating expenditures,
transfers to and from other funds and gain on sale of capital assets.
ANNUAL OPERATING RESULTS – ENTERPRISE FUNDS
The City accounts for its Water, Sewer and LLCCP operations on an “enterprise” basis, meaning that the activity is treated more like a commercial business, separate and apart from general City operations. In fiscal year 2020/2021, Enterprise Fund operating revenues for Water, Sewer and LLCCP combined, totaled $13,838,579, an increase of 3.04% over fiscal year 2019/2020, while operating expenses increased by $2,871, or about 0.02%, over the same period.
Water Operations
For Water Operations specifically, the Water
fund operating revenues exceeded operating
expenses by $98,244 this year. Last year the
Water fund showed an operating deficit of
$570,912 for the year. Note that this chart
does not include any “non-operating”
revenues or expenses, such as gain on
disposal of assets of $4,205, interest revenue
of $15,868, transfers in of $2,045,066, interest
expense of $142,785 and transfer out of
$4,713. Interest expense in the Water Fund
has decreased to $142,785 from $148,129 in
2020 which constitutes a 3.61% decrease due
to interest amortizing on a lower principal
balance. More information on the 2016 Water Revenue Refunding Bonds can be found on page 56 of the notes.
In efforts to reduce operational cost and increase water conservation, the City is in the seventh year of a City-wide meter replacement project that will reduce the loss of revenue and make monitoring water usage more efficient. Additionally, the City conducted an updated five year rate study to address the ongoing operating needs of the water and sewer systems. New water rates were implemented in March of 2019 and will increase each January until 2024. $(5)
$-
$5
$10
$15
$20
$25
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Water Operations Fund History
(in millions)
Revenue
Expense
Net change
in net
position
-$10
-$5
$0
$5
$10
$15
$20
$25
$30
12 13 14 15 16 17 18 19 20 21
City of Loma Linda
10-Year General Fund History
(in millions)
Revenues
Expenditures
Net Change in
Fund Balance
FY Ending June 30th
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
x
Sewer Operations
For the operating period ending
June 30, 2021, the Sewer Fund
ended the year with an operating
change in net position of $721,926.
Sewer revenues increased by
$240,361, or 4.5%, and operating
expenses increased by $73,702 or
1.5%. The chart to the left shows
the ten-year financial operating
history of the Sewer Enterprise
Fund. Note that this chart does not
include “non-operating” revenues
or expenses (i.e., interest revenue
or interest expenses, etc.) or
contributions and transfers.
Interest revenue has increased
minimally from prior year due to low
cash balances in the fund.
Increased treatment expenses relate to the contractual services agreement with the City of San Bernardino were off-set by rate increases for treatment services provided. Because the Sewer Fund has no bond outstanding debt, interest expense is minimal. As previously mentioned, in conjunction with the water rates, the City had conducted an updated five year rate study to address the ongoing operating needs of sewer system. New sewer rates were implemented March of 2019, and will increase each January until 2024. The increases were deemed necessary in order to eliminate annual operating losses, repay cash loans and build an emergency reserve fund.
Loma Linda Connected Communities Program
(LLCCP)
In fiscal year 2003/2004, a new Enterprise fund was set up for the purpose of establishing requirements for standardized residential and commercial telecommunications cabling systems.
This new system provides some Loma Linda residents and businesses the opportunity to have voice, data, multimedia, home automation systems, environmental control, security, audio, television, sensors, alarms, and intercom services. Fiscal Year 2020/2021 was the seventeenth full year of operations. For the operating period ending June 30, 2021, LLCCP ended the year with operating revenues of $342,360 compared to $359,079 in 2019/2020. Operating expenses of $436,714 are $76,883 or 15.0% less than expenses for fiscal year 2019/2020. Due to the significant upfront investment in infrastructure, and the annual depreciation of those capital assets, operating revenues are less than expenses, resulting in an operating deficit in net position of $94,354. Additionally, net non-operating
expenses, interest revenue and interest
expense, is higher as interest on
outstanding loans to construct the Fiber
Optic Network, continues to go unpaid and
adds to the outstanding loan balance. The
chart to the right shows the ten-year financial
operating history of the Loma Linda
Connected Communities Program Fund.
Note that this chart does not include “non-
($1)
$0
$1
$2
$3
$4
$5
$6
12 13 14 15 16 17 18 19 20 21
FY Ending June 30th
City of Loma Linda
Sewer Enterprise History
(in millions)
Revenue
Expense
Operating
change in net
position
‐$400,000
‐$200,000
$0
$200,000
$400,000
$600,000
$800,000
12 13 14 15 16 17 18 19 20 21
Revenues
Expenditures
Operating
Change in
Net Position
FY Ending June 30th
City of Loma Linda
Loma Linda Connected Communities Program
Fund
City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
xi
operating” revenues or expenses (i.e., interest revenue or interest expenses, etc.) and transfers.
PENSION FUNDING STATUS
The City provides its full-time and certain part-time employees’ retirement and disability benefits through four defined benefit pension plans; Classic Miscellaneous, Public Employees’ Pension Reform Act (PEPRA) Miscellaneous, Classic Safety and PEPRA Safety Fire groups. The plans are all part of the California Public Employees’ Retirement System (CalPERS). The City makes required employer contributions to the plans based on the amounts determined by CalPERS actuaries. All City employees pay their required employee contribution based on the employees’ group/individual retirement plan formulas. For this year, the City made $1,659,841 in employer pension costs and contributions to PERS. The notes to the financial statements are based on the measurement date of the last actuarial which is June 30, 2019, therefore payments made to reduce the UAL are reclassified to Deferred Outflows of Resources in the government-wide statements.
In fiscal year 2020/2021, the “City’s” share of retirement costs increased for Miscellaneous employees from 10.221% to 11.031%, for Miscellaneous PEPRA from 6.985% to 7.732%, for Safety plan from 20.073% to 21.746% and for Safety PEPRA from 13.034% to 13.044%. The reason for the changes in the City’s (employer) share of retirement costs is due to changes in pool asset values, and differences between projected rate of returns and actual returns on pooled assets.
At the December 21, 2016, meeting the CalPERS Board of Administration approved lowering the CalPERS discount rate of assumption, the long-term rate of return, from 7.50 percent to 7.00 percent over the following three years. Lowering the discount rate has resulted in plans seeing increases in both the normal costs and the unfunded actuarial liabilities. Also the PEPRA members have seen their contribution rate increase. This assumption change has increased public agency employer contribution costs in fiscal year 2020/2021. Please see Note 8 and 9 of the notes for further information.
DEBT ADMINISTRATION
As of June 30, 2020, the City and the Successor Agency had bond debt outstanding in the amount of $29.9 million. In 2016/2017, the Successor Agency issued the 2016 Tax Allocation Refunding Bonds A in the amount of $5,760,000 and the 2016 Tax Allocation Refunding Bonds series B in the amount of $27,950,000. At June 30, 2021, the balance of each bond respectively is $4,140,000 and $21,085,000. Also in 2016/2017, the City issued the 2016 Water Revenue Refunding bonds in the amount of $5,615,000; combined with the 1978 Water bonds (general obligation) of $10,000 the City had a bond debt balance of $4,720,000 at June 30, 2021. Additional information regarding long-term liabilities is presented in Note 6 for the City and Note 16 for the Successor Agency. Non-City obligations are discussed in Note 7 of the financial statements which are not a legal obligation of the City and therefore not included here.
INDEPENDENT AUDIT
An independent audit of the City’s records was performed for the year ended June 30, 2021 by the certified public accounting firm of Rogers, Anderson, Malody and Scott, LLP. The auditor’s report on the basic financial statements (government-wide financial statements and the fund financial statements), the notes to the basic financial statements and supplementary information is included in the Financial Section of the ACFR.
In general, the auditors concluded that the basic financial statements and supplementary information referred to above present fairly, in all material respects, the financial position of the City of Loma Linda
June 30, 2021 Annual Comprehensive Financial Report
xii
City of Loma Linda, the Loma Linda Housing Authority, and the Successor Agency to the Loma Linda Redevelopment Agency, as of June 30, 2021, and the results of its operations and cash flows of its proprietary fund types for the year then ended in accordance with accounting principles generally accepted in the United States of America. The professionalism and knowledge exhibited by Rogers, Anderson, Malody and Scott, LLP during the audit is appreciated.
AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Loma Linda for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020. This was the fifteenth consecutive year the City of Loma Linda has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish as easily readable and efficiently organized CAFR. This report must satisfy both the generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department and other City Departments that provided data for preparation of the Statistical section of the Report. We would like to express our appreciation to members of all departments who assisted and contributed to the preparation of this report.
We would like to extend our appreciation to the Mayor, City Council, and each City Department for their cooperation and support in conducting the fiscal operations of the City.
Respectfully submitted,
___________________ ___________________
T. Jarb Thaipejr Sonia Fabela
City Manager Finance Director/Treasurer
*Most recent available information
-xiii-
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-xiv
CITY OF LOMA LINDA
PRINCIPAL OFFICIALS
ELECTED OFFICIALS
Phill Dupper
Mayor
Ron Dailey Rhodes Rigsby
Mayor pro tempore Councilmember
John Lenart Bhavin Jindal
Councilmember Councilmember
APPOINTED OFFICIALS
Jarb Thaipejr
City Manager/Public Works Director
Richard Holdaway
City Attorney
Barbara Nicholson ............................................................................................. City Clerk Konrad Bolowich .......................................................................... Assistant City Manager Sonia Fabela ............................................................................. Finance Director/Treasurer Daniel Harker ....................................................................................................... Fire Chief This page intentionally left blank
CITY OF LOMA LINDA
ORGANIZATION CHART
ECONOMIC
DEVELOPMENT DEPT. DEPT.
ADMINISTRATION FINANCE
DEPT. DEPT.
COMMUNITY DEVELOPMENT FIRE
DEPT.
PUBLIC WORKS
DEPT.
CITY CLERK
DEPT. SYSTEMS
INFORMATION
DEPT.
LOMA LINDA HOUSING AUTHORITY
Chairman: Phill Dupper
Vice Chairman: Ron Dailey
Authority Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
The People of Loma Linda
CITY COUNCIL
Assistant
City Manager
Konrad Bolowich Sonia Fabela
Finance Director/
Treasurer
Fire Chief
Daniel Harker Konrad Bolowich
City Clerk
Barbara
Public Works
Commissions
Director/City Engineer
T. Jarb Thaipejr T. Jarb Thaipejr
City
Manager
and
Boards
T. Jarb Thaipejr
City Manager City Attorney
Richard Holdaway
Executive Director
T. Jarb Thaipejr
Nicholson
Executive Director
T. Jarb Thaipejr
LOMA LINDA FINANCING AUTHORITY
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Agency Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
T. Jarb Thaipejr
City Manager
REDEVELOPMENT SUCCESSOR AGENCY
Chairman: Phill Dupper
Vice Chairman: Ron Dailey
Authority Members: Rhodes Rigsby
John Lenart, Bhavin Jindal
Assistant
City Manager
Assistant
City Manager
Konrad Bolowich
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Council Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
ASSIST NEW BUSINESS
RETAIN EXISTING BUSINESS
ECONOMIC RESOURCES
PUBLIC INFORMATION
CITY FISCAL ADMINISTRATION
BUDGET ADMINISTRATION
ACCOUNTING
PAYROLL
UTILITY BILLING
BUSINESS LICENSE
PARKING CITATION/DOG LICENSE
PAYMENTS
FIRE PROTECTION/SUPPRESSION
EMERGENCY MEDICAL SERVICES
FIRE INSPECTIONS
FIRE PREVENTION EDUCATION
DISASTER PREPAREDNESS
PARKING ENFORCEMENT
CITY COUNCIL RELATIONS
CITY MANAGEMENT
COMMUNITY &
INTERGOVERNMENTAL
RISK MANAGEMENT
HUMAN RESOURCES
CITY COUNCIL/AUTHORITY
RISK MANAGEMENT
ELECTION & CONFLICT OF
ENGINEERING
CAPITAL IMPROVEMENT/
PROJECT MANAGEMENT
DEVELOPMENT REVIEW
FACILITIES MANAGEMENT
FIELD SERVICES
PARKS
LANDSCAPE MAINTENANCE DISTRICT
STREET REPAIR
UTILITY SERVICES
WATER
SEWER
FLEET SERVICES
HOUSING AUTHORITY SECRETARY
BOARD RELATIONS
HOUSING PROGRAMS
BUDGET PREPARATION
INTEREST OFFICIAL
LEGISLATIVE RECORDS
MANAGEMENT
SHERIFF CONTRACT
RELATIONS
DEVELOPMENT
STREET SWEEPING
LLCCP
TECHNOLOGY
NETWORK
FINANCIAL REPORTING SYSTEM SUPPORT
ADMINISTRATION
CDBG MANAGEMENT PLANNING (CURRENT & ADVANCED)
LAND USE, ZONING, AMENDMENTS,
DEVELOPMENT & ENVIRONMENTAL REVIEW,
HISTORICAL PRESERVATION & TRAILS
DEVELOPMENT
BUILDING
PLANCHECK REVIEW, BUILDING PERMIT
ISSUANCE, INSPECTION & CONSTRUCTION
MONITORING
STREET LIGHT
TRAFFIC SIGNAL MAINTENANCE
SENIOR CENTER
CODE ENFORCEMENT/ANIMAL CONTROL
-xv-
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-1-
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Loma Linda
Loma Linda, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Loma Linda, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. -2-
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis and those schedules as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied -3-
certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information Included in the Annual Report
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.
-4-
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
San Bernardino, California
January 6, 2022
-5-
MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Loma Linda’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021. Please read it in conjunction with the accompanying transmittal letter and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
In the Government-Wide – Statement of Net Position: The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $138,948,642 (net position); of this amount $110,610,391 is from governmental activities and $28,338,251 is from business-type activities, with $13,952,683 positive and $8,688,855 in negative unrestricted net position, respectively.
In the Government-Wide – Statement of Activities: The City’s net position increased 1.13% or $1,572,386 from the $137,376,256 at the beginning of the year, to $138,948,642 at the end of the year. The increase is the net result of positive changes of $915,738 in governmental activities and $656,648 in business-type activities.
In the Government-Wide – Statement of Activities: During the current year, Governmental activities program revenues increased by $4,532,567; due to a steady increase in charges for services in all government functions of $4,574,952, in addition, to a decrease of combined operating/capital contributions and grants of $42,385. Business-type program revenues increased by a net $433,512 due to an increase in charges for services in all enterprise funds. In the Governmental Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance: During the year, the General Fund reported a positive net change in fund balance of $2,520,987, due to the $1,638,729 revenues over expenditures combined with other financing sources of $882,258.
In the Required Supplementary Information – Budgetary Comparison Schedule: For the General Fund, the actual revenues available for appropriation were more than the final budget by $1,804,720, while actual expenditures were $941,614 less than the final budget. Net actual other financing sources were $5,542 less than the final budget, resulting in a positive $2,740,792 net change in budgetary variance and an actual positive fund balance of $2,520,987. In the 2021/2022 Adopted Budget – the City Council and management annually make great efforts to adopt a balanced budget that preserves General Fund - fund balance. This year City Council adopted a General Fund budget which is projected to have a positive change in net position of $821,700. Overall, the general fund maintains a solid financial position with committed funds of $2,000,000 (emergency contingency) and assigned funds of $1,250,000 (capital equipment replacement). In the adopted budget for fiscal year 2021/2022, committed fund balance represent 7.72% of the General Fund annual budget.
USING THIS ANNUAL REPORT
The discussion and analysis is intended to serve as an introduction to the City of Loma Linda’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
The government-wide statements provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. These statements consist of the statement of net position and statement of activities.
The fund financial statements, which consist of the governmental funds, proprietary funds and fiduciary funds, report the City’s operations in more detail than the government-wide statements by providing -6-
information about the City’s most significant (major) funds. The governmental fund statements also tell how City services were financed in the short term as well as what remains for future spending. The proprietary funds statements use the same accounting method as the business-type activities, but provide more detail of the activities. The fiduciary fund statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
Reporting the City as a Whole
The Government-Wide Financial Statements
One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of this year’s activities?” The statement of net position and the statement of activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and changes in it. The reader can think of the City’s net position - the difference between assets, deferred outflows of resources, deferred inflows of resources and liabilities - as one way to measure the City’s financial health. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating.
However, to assess the overall health of the City the reader will need to consider other non-financial factors, such as changes in the City’s property tax base and the condition of the City’s roads and other infrastructure.
The statement of net position and the statement of activities present information about the following:
Governmental activities - All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety and public works. General revenues, including property taxes, motor vehicle in lieu, sales taxes, and franchise fees, finance 64% of these activities.
Business-type activities – All Proprietary Funds (enterprise funds), water acquisition, water enterprise, sewer capital, and Loma Linda connected communities program, which receive funding through charges for services and developer contributions.
Component units - The City’s governmental activities include the Public Financing Authority (PFA) and the Loma Linda Housing Authority (LLHA).
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the City as a whole. Some funds are required to be established by State Law and by bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s three kinds of funds – governmental, proprietary and fiduciary - use different accounting approaches.
Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the -7-
statement of net position and the statement of activities) and governmental funds in a reconciliation schedule accompanying the fund financial statements.
The City of Loma Linda maintains thirty-two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures and changes in fund balances for the general fund, Loma Linda Housing Authority, regional traffic development impact fund, special projects construction fund, and the park development fund; which are considered to be major funds. The remaining twenty-seven nonmajor funds are combined and presented in the nonmajor governmental funds column. Individual fund detail for the nonmajor funds is presented in the combining statements located on pages 95-114 of this report.
Proprietary funds - When the City charges customers for certain services it provides, these services are generally reported in proprietary funds. There are two types of proprietary funds: enterprise fund (business-type activities) and internal service funds (internal allocation of costs). Proprietary funds are reported on the full accrual basis of accounting, which is the same method that all activities are reported in the statement of net position and the statement of activities.
The City of Loma Linda maintains four enterprise funds to account for Water (two funds), Sewer and the LLCCP activities. The four funds are considered to be major funds and as such detail activity is presented in the statement of net position, statement of revenues, expenses and changes in net position, and statement of cash flows on pages 26-30.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. The City’s fiduciary activities are reported in separate statement of fiduciary net position and changes in fiduciary net position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
The statement of fiduciary net position can be found on page 31-32.
Fiduciary Fund - Private Purpose Trust Fund - The City acting as Successor Agency to the Former Loma Linda Redevelopment Agency (Successor Agency) is the trustee, or fiduciary, for amounts held on behalf of bond holders, enforceable obligations, and taxing entities. The City’s fiduciary activities are reported in separate statement of private purpose trust fund net position and changes in net position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City acting as the Successor Agency is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The statement of private purpose trust fund net position can be found on page 33.
Notes to the financial statements – Additional information that is crucial to a full understanding of the figures provided in the government-wide and fund financial statements is provided in the notes to the financial statements. The notes to the financial statements can be found on pages 34-81 of this report.
Required supplementary information - The budget and budgetary accounting and postemployment benefit plans information can be found on pages 82-90 of this report.
Government-Wide Financial Analysis
Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities reported in the government-wide statements. -8-
Net Position
As shown in Table 1, the City’s net position from governmental activities increased 0.83% from $109,694,653 to $110,610,391. The $915,738 positive change in net position is the result of a negative $11,116,849 in program operations, netted with $12,032,588 in general revenues. In the business-type activities the increase was 2.37% or $656,648, net position changed from a $27,681,603 to $28,338,251, the net result of a positive $5,099 position change from operations and a positive $651,549 in general revenues. These changes are recorded in the statement of activities (Table 2) which flows through to the statement of net position.
2021 2020 2021 2020 2021 2020
$ 68,465,561 67,330,145 $ 13,533,688 $ 12,514,939 $ 80,863,833 $ 80,980,500 $ 52,137,531 52,880,007 41,097,922 40,545,324 93,977,929 92,682,855 120,210,152 120,603,092 54,631,610 53,060,263 174,841,762 173,663,355 Deferred Outflow of Resources 5,182,240 8,206,640 1,957,739 2,888,745 7,139,979 11,095,385 7,549,739 6,464,065 24,975,408 25,441,165 31,439,473 32,990,904 7,530,180 4,710,337 1,884,600 1,197,854 6,594,937 8,728,034 11,174,402 15,079,919 26,860,008 26,639,019 38,034,410 41,718,938 Deferred Inflow of Resources 3,607,599 4,035,160 1,391,090 1,628,386 4,998,689 5,663,546 Net Invested in Capital Assets 52,098,547 52,880,007 36,344,853 35,564,416 89,224,860 87,662,963 Restricted 43,777,701 41,042,155 682,253 681,788 44,459,954 41,723,943 Unrestricted 13,952,683 16,553,951 (8,688,855) (8,564,601) 5,263,828 7,989,350 $ 109,694,653 110,610,391 $ 28,338,251 $ 27,681,603 $ 138,948,642 $ 137,376,256 $ Total Assets
Long-term liabilities
Other liabilities
Total Liabilities
Net Position:
Total Net Position
Table 1
City of Loma Linda's Net Position
Current and other assets
Capital assets
Governmental Activities Business-Type Activities Total
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As shown in Table 2, the change in net position is a positive $915,738 for governmental activities and $656,648 for business-type activities, with a combined total increase in net position of $1,572,386 for the fiscal year ending June 30, 2021.
2021 2020 2021 2020 2021 2020
$ 10,522,228 15,097,181 $ 13,337,415 $ 12,903,903 $ 28,434,596 $ 23,426,131 $ 664,307 1,611,907 - - 1,611,907 664,307
1,510,791 520,806 - - 520,806 1,510,791
13,935,521 8,700,202 - - 8,700,202 13,935,521
2,433,722 2,504,220 - - 2,504,220 2,433,722
1,472,804 658,011 62,642 208,279 720,653 1,681,083
207,430 253,692 505,369 508,024 759,061 715,454
29,346,019 30,746,803 13,905,426 13,620,206 43,251,445 44,367,009 4,655,547 2,432,363 - - 2,432,363 4,655,547
13,132,883 15,816,365 - - 15,816,365 13,132,883
3,646,694 3,405,290 - - 3,405,290 3,646,694
7,191,106 6,691,119 - - 6,691,119 7,191,106
3,148 1,606 - - 1,606 3,148
- - 34,407 163,718 34,407 163,718
- - 7,451,276 7,321,257 7,451,276 7,321,257
- - 4,848,037 4,780,642 4,848,037 4,780,642
- - 998,596 1,075,479 998,596 1,075,479
28,346,743 28,629,378 13,332,316 13,341,096 41,679,059 41,970,474 Changes in Net Position before
999,276 2,117,425 573,110 279,110 1,572,386 2,396,535
Transfers (83,538) 9,305 83,538 (9,305) - -
2,126,730 915,738 656,648 269,805 1,572,386 2,396,535
Net Position at Beginning of Year 107,567,923 109,694,653 27,681,603 27,411,798 137,376,256 134,979,721 Net Position at End of Year $ 110,610,391 109,694,653 $ 28,338,251 $ 27,681,603 $ 138,948,642 $ 137,376,256 $ Operating grants and contributions
Motor Vehiclein liue/Intergovernmental
Investment Revenue
Water acquisition
Business-Type Activities:
Sewer
Expenses:
Governmental Activities:
General government
Public safety
Change in Net Position
Transfers
Water
Public works
LL Connected Communities
Total Expenses
Taxes
Total Revenues
Capital grants and contributions
General Revenues:
Interest on long-term debt
Other
Community development
Table 2
Program Revenues:
Charges for services
Governmental Activities Business-Type Activities
City of Loma Linda's Changes in Net Position
Total
Total revenues for governmental activities shows a decrease of $1,400,784 from 2020 to 2021. This decrease was comprised of an increase in governmental activity program revenue of $4,532,567 and a decrease in the governmental activity general revenue of $5,933,351. The increase in governmental activity program revenue includes an increase in charges for services of $4,574,953, increase in operating grants and contributions of $947,600, and a decrease in capital grants and contributions of $989,985. The City’s community development collection of developer impact fees, particularly the payment of developer fees by Loma Linda University upon the completion of their hospital expansion, contributed greatly to the increase in governmental program revenue along with the collection of fire incident reimbursements. The increase in operating grants and contributions is due to the City’s receipt of COVID-19 CARES ACT Federal funding through the State of California and through San Bernardino County.
The decrease in governmental activity general revenue includes a decrease in taxes of $5,235,319, an increase in Motor Vehicle in Lieu/Intergovernmental of $70,498, a decrease in investment revenue of $814,793, and a small increase of other general revenues of $46,262. The decrease in governmental activity general taxes is mostly attributed to the decrease in sales tax of $5,334,463 combined with a decrease in property tax of $43,113 and business license tax of $19,947; offset by an increase in transient occupancy tax of $91,337, franchise taxes of $70,255 and $612 in other taxes. In fiscal year 2020, the California Department of Tax and Free Administration inadvertently advanced the City $3,361,279 for fiscal year 2021 and therefore it was fully accrued to that year. The decrease in investment revenue is due to the decrease in the yield rates with the Local Agency Investment Fund (LAIF) over the fiscal year.
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transient occupancy tax of $91,337, franchise taxes of $70,255 and $612 in other taxes. In fiscal year 2020, the California Department of Tax and Free Administration inadvertently advanced the City $3,361,279 for fiscal year 2021 and therefore it was fully accrued to that year. The decrease in investment revenue is due to the decrease in the yield rates with the Local Agency Investment Fund (LAIF) over the fiscal year.
Total revenue for business-type activities has an increase of $285,220 from fiscal year 2020. This increase is due to an increase in business type activity program revenue of $433,512 and a decrease in business-type activity general revenue of $148,292. The increase in business type activity program revenues were due to annual rate increases, rising consumption levels resulting from citizens working from home due to the COVID-19 pandemic, and new housing development connections within the City.
The major decrease in business-type activity general revenues is due to the decrease in the yield rates with the Local Agency Investment Fund (LAIF).
The governmental activity program expenses experienced a decrease of $282,635. This reduction in governmental activity program expenses can be attributed to a decrease in general government expenses of $2,223,184. Fiscal year 2020 included an extra payment towards the City’s unfunded pension liability for $2 million, which did not occur in fiscal year 2021. Increase in public safety expenses of $2,683,482 due to increases in overtime expenses for the Fire Department of $448,563, increases in the San Bernardino County Sheriff Contract for the City’s police services of $649,187, and increased public safety unfunded liability pension costs, of $1,264,395. A decrease in public works expense of $499,987 due to a reduction in capital assets spending, and a decrease in interest on long term debt of $1,542. The business type activities experienced a minor decrease in expenses of $8,780.
In comparison to fiscal year 2020, the overall change in net position from operations for governmental activities was an increase of $915,738 and business-type activities increased by $656,648 resulting in an overall City net position increase of $1,572,386.
Government Activities
Table 3 presents the total cost (expenses) of each of the City’s major public services in general government, public safety, community development, public works, and interest expense. Also included is each program’s net cost (total cost less program revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions. 2021 2020 Change 2021 2020 Change
Functions:
General government $ 2,432,363 $ 4,655,547 $ (2,223,184) $ (877,326) $ 1,708,331 $ (2,585,657) Public safety 15,816,365 13,132,883 2,683,482 11,724,249 10,708,035 1,016,214 Community development 3,405,290 3,646,694 (241,404) 1,460,799 178,821 1,281,978 Public works 6,691,119 7,191,106 (499,987) (1,192,479) 3,333,717 (4,526,196) Interest on long-term debt 3,148 1,606 (1,542) 1,606 3,14 (1,542) 8 Total Governmental Activities $ 28,346,743 28,629,378 $ (282,635) $ 11,116,849 $ 15,932,052 $ (4,815,203) $ Total Cost Net Cost
Net Cost of Governmental Activities
City of Loma Linda
Table 3
In looking at table 3, you will note the major changes both in total cost and net cost. In 2021, total costs decreased by $282,635, a result of decreases in general government, community development, public works, and interest in long term debt with increases in public safety. Specific changes in program costs were discussed in the previous section.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At year-end, the City’s governmental funds reported combined fund balances of $54,610,359 a net increase of $6,220,173 in fund balance; included in this amount are increases in fund balance for General -11-
Fund of $2,520,987, a decrease in the Housing Authority of $455,430, an increase in the Park Fund of $442,924, an increase in the Regional Traffic Development Impact Fund of $3,460,307, an increase in the Non Major Governmental Funds of $1,932,393, and a decrease in the Special Projects Construction Fund of $1,681,008. The General Fund had a net increase in fund balance of $2,520,987, resulting from revenues exceeding net expenditures by $1,638,729, netted with total other financing sources of $882,258. During the fiscal year, sales tax revenue increased and the abatement decreased whereby increasing sales tax combined revenue by $1,274,925; refunds and reimbursements increased by $464,969 from CAL OES for fire incidents and an increase of $419,715. The main decrease in General Fund expenditures is due to the additional payment to the PERS Unfunded Liabilities in the amount of $2 million contributed in fiscal year 2020 offset by the increase in the Public Safety of Sheriff service contract of $649,187, increase in general liability and worker’s compensation insurance of $236,670 as well as an increase of $227,513 in contractual services for assistance in the sale of the final Redevelopment Agency Properties. Increase in the Regional Traffic Development Impact Fund and the Non Major funds are attributed to the collection of Development Impact fees on the expansion of the Loma Linda University Hospital. The decrease in the Special Project Construction Fund is due to an increase in the following expenditures including overhead: the remodel and for Fire Station #1, expansion of the Emergency Operation Center at City Hall, the purchase of a Spartan Tractor Drawn Aerial fire truck and the purchase of a Medic Squad.
In total the Proprietary Funds reported a positive change in net position of $656,648, with the Water Enterprise and the Sewer Capital Funds showing a positive change and the Water Acquisition and Connected Communities Funds reporting a negative net change. The Water Enterprise ended with a positive change in net position of $2,015,885, as a result of ongoing operating revenue exceeding operating expenses offset by transfers in for capital contributions. These transfers out of capital assets in the amount of $2,039,977 contributed to the negative net position of $1,514,560 for the Water Acquisition Fund. The Sewer Fund ended the year with a positive change of $793,362, current revenues of $5,568,333 are in excess of $4,846,407 in operating expenses; rate increases have been adopted and ongoing efforts continue to be made to reduce overall expenditures for operations. The Loma Linda Connected Communities Fund reported a negative change of $638,039 which reflects the ongoing operational gap between charges for services (revenues), and operating expenses and interest expenses. Efforts to reduce operational expenses have been implemented, but annual depreciation expense and non-operational expenses (interest on loans) continue to exceed revenues adding to the negative net position.
General Fund Budgetary Highlights
The actual revenues of the General Fund at year-end were $1,638,729 more than the actual expenses.
The positive budget-to-actual variance of $914,614 in appropriations was due to conservative spending city wide with saving in personnel cost, professional and contractual services, repairs and maintenance, and utilities, but the majority of the general government budget variance was in the classification of economic incentives as tax abatements per GASB 77 (see Note 17). Of the unspent budget, actual revenues were $1,804,720 more than anticipated compared to the final budget due mainly to Sales Tax coming in higher than expected and the abatement being less than anticipated. Other revenues that came in higher than budgeted include engineering inspections, building permits, refunds and reimbursements and lease income but were offset by shortfalls in transient occupancy tax, business license tax, fire permits, as well as, a decrease in projected overhead. Favorable budget amendments and supplemental appropriations were made during the year to diminish budget overruns and to increase appropriations for unanticipated expenditures after adoption of the original budget. The original revenue budget was increased by $1,879,900, primarily for the anticipated sales tax projections due to COVID-19 stay at home orders slowly lifting. While the expenditure appropriations budget was increased in total by $1,549,705, the major increase was for the increased public safety presence needed during the COVID19 pandemic and for additional public works related expenses.
Although, the final adopted budget projected a $219,805 negative change in fund balance, favorable results in revenues of $1,804,720, favorable results in expenditures of $941,614 and unfavorable results in other financing uses of $5,542, resulted in the combined favorable results of $2,740,792, as the actual positive net change in fund balance was $2,520,987 for the fiscal year ending June 30, 2021. -12-
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
2021 2020 2021 2020 2021 2020
Asset Type:
Land 14,651,396 $ 14,651,39 $ 6 $ 1,387,764 $ 1,387,764 $ 16,039,160 $ 16,039,160 Construction in progress 1,251,396 1,197,482 183,777 312,728 1,435,173 1,510,210 Structures, machinery & equipment 10,932,752 9,425,799 7,020,748 7,548,268 17,953,500 16,974,067 Infrastructure 26,862,854 26,044,463 32,505,633 31,296,564 58,550,09 58,159,418 6 Total $ 52,880,007 52,137,531 $ 41,097,922 $ 40,545,324 $ 93,977,929 $ 92,682,855 $ Governmental Activities Business-Type Activities Total
Table 4
Capital Assets at Year End
Net of Depreciation
City of Loma Linda
At the end of fiscal year 2021, the City had $93,977,929 invested in a broad range of capital assets, a total increase of $1,295,074 (See Table 4 above). Governmental activities include fire and public works equipment, buildings, land, park facilities, and roads. Business-type activities include the fiber optic network, sewer transmission system and a water production and distribution system. The total decrease in the City of Loma Linda investment in capital assets for fiscal year 2021 was 1.4% (a 1.42% increase in governmental activities and 1.36% increase in business-type activities). For fiscal year 2021, Net increases are the result of new additions in greater amounts then deletions and disposals. The major capital assets added for governmental activities and business-type activities are highlighted in explanation of Table 5.
2021 2020 2021 2020 2021 2020
Asset Type:
Land $ - $ - $ - -$ $ - $ -
Construction in progress 85,557 455,365 84,353 308,528 169,910 763,893 Structures, machinery and equipment 2,554,79 8 334,634 134,713 179,671 2,689,511 514,305 Infrastructure 44,20 391,112 8 1,458,29 2,342,747 2,386,95 8 1,849,410 5 Total Additions 2,684,56 3 1,181,111 2,561,813 1,946,497 5,246,376 3,127,608 Less: Decreases and depreciation (1,942,087) (2,614,274) (2,009,212) (1,767,907) (3,951,299) (4,382,181) Capital Asset Increase/(Decrease) $ (1,433,163) 742,476 $ 552,601 $ 178,590 $ 1,295,077 $ (1,254,573) $ GovernmentalActivities Total
Table 5
Schedule of Changes in Capital Assets/Infrastructure
Business-Type Activities
City of Loma Linda
As shown in Table 5, above, capital assets current year activity increased $742,476 (net of depreciation) for governmental activities and increased $552,601 (net of depreciation) for business-type activities for a total increase of $1,295,077. In the governmental activities the increase in capital assets can be attributed to the purchase of a Various Fire Department Vehicles; Spartan Tractor Drawn Aerial Fire Truck, a Danko Medic Squad Vehicle, a Ford F-150 Command Vehicle; and City wide fiber optics installation and improvements. The increase in business-type activities can be attributed to infrastructure projects throughout the City. Additional information regarding capital assets activities can be found in Notes 1i and 5 of the financial statements.
Long-Term Debt
In June 2012, GASB (Governmental Accounting Standards Board) issued Statement No. 68, requiring public employers to comply with new accounting and financial reporting standards. Statement No. 68 outlines a different approach to the recognition and calculation of pension obligations. Under the new GASB standards, employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement are required to record the net pension liability, pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their -13-
financial position. These amounts are presented in the statement of net position on page 16, with detailed information in Note 8 to the financial statements.
Governmental Activities - Governmental Activities - The City governmental funds have $6,464,065 in outstanding long-term debt as of June 30, 2021; with the majority ($5,468,278) related to postemployment related obligations (pensions and OPEB). Tables 6 below and Note 8 to the financial statements offer a more detailed view of governmental long-term debt. 2021 2020 2021 2020 2021 2020
Master Lease Purchase - Fire apparatus $ - $ 38,984 -$ -$ -$ $ 38,984 1978 Water Bonds (General Obligation) - - 10,000 10,000 10,000 10,000 2016 Water Revenue Refunding Bonds 4,710,000 4,935,000 4,710,000 4,935,000 Compensated absences 751,510 728,661 309,415 307,369 1,060,925 1,036,030 Insurance Retrospective Deposit 38,215 16,137 13,028 85,321 51,243 101,458 OPEB liability 206,062 210,962 168,598 172,607 374,660 383,569 Net Pension liability 5,468,278 6,554,995 1,524,681 1,951,855 6,992,959 8,506,850 Add: Unamortized bond premium - - 45,908 43,069 43,069 45,908 Total $ 6,464,065 $ 7,549,739 $ 6,778,791 $ 7,508,060 $ 13,242,856 $ 15,057,799 Governmental Activities Business-Type Activities Total
Table 6
Long-Term Debt at Year End
City of Loma Linda
Business-type Activities - The enterprise funds have $6,778,791 in outstanding long-term debt as of June 30, 2021. The water enterprise fund has bonded debt of $4,720,000 consisting of the 2016 Water Revenue Refunding Bonds originally issued for $5,615,000 with the first payment made on July 1, 2017; and the 1978 Water Bonds (General Obligation) with a current outstanding balance of $10,000. Both bond issues are paid with water operating revenues. In the enterprise funds OPEB and pension related obligations total $1,693,279. Additional detailed information for business-type long-term debt is shown in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
According to several economic forecast groups, the Inland Empire (IE - San Bernardino and Riverside Counties) had an economy that was and still is in a strong recovery. The COVID-19 pandemic caused a widespread health crisis throughout fiscal year 2020 that continued through the first half of fiscal year 2021. The downturn interrupted a steady job growth since 2012 with a job loss of 65,600 jobs a 4.19% decrease from the year prior. The hardest hit sectors were the eating and drinking sector at 23,700 jobs, retail outlets and consumer service at 18,533 jobs, and the hotel and amusement sector at 12,967 jobs. In December of 2020 the COVID-19 vaccine became the driving force in re-opening California and the Inland Empire. Stay at home orders and imposed lockdowns were slowly lifted demonstrated in Loma Linda with the opening of City Hall to conduct daily business. The Inland Empire had an unemployment rate at the beginning of the fiscal year of 9.8% which lowered to 7.7% by June 2021, due to the reopening. Despite the ongoing pandemic, the housing market in San Bernardino County has continued to thrive. The median home price in the Inland Empire was $525,000 as of June 2021. This amount was
2.9% more than May 2021 and 28% more than June 2020. The City of Loma Linda as of June 2021 had a median home price of $545,000 which was 15% more than June of 2020.
Prior to the pandemic, Loma Linda had been experiencing the impacts of economic growth. Over the last years, the City has seen new development activity increases and additional projects are being proposed in the coming year. With three major medical facilities within the community, Loma Linda University Medical Center, the Veteran’s Administration (VA) Hospital, and the VA Ambulatory Care Center, the City continues to see a need for temporary and permanent housing for patients receiving medical treatment and employees working at these institutions. In 2021, the City saw the completion of its third major hotel and the proposal for a fourth. The New Loma Linda University Medical Hospital is nearing completion and there are other housing and commercial development projects at various stages of development/construction currently under way. During the last couple of years Loma Linda has been able to restore some of the operational cost cutting efforts implemented during the recession, such as filling vacant positions and giving pay and benefit increases to employees, as well as addressing some -14-
deferred capital outlay purchases. Despite the COVID-19 pandemic, the City for fiscal year 2020/2021 maintained economic growth, employment remained stable as medical facility, groceries store and certain services within the City were deemed essential services. Consumer spending shifted to ecommerce, property valuations increased and property sales continued, and ultimately leading to steady flows in City revenues (sales tax, property tax, franchise fees, transient occupancy tax, and business license) as reflected in the governmental activities tax and assessment revenues by source table in the statistical section. The challenges facing the City with the recent growth will be balancing the resources available to meet the increasing demands on city services (fire, police and general community services), the ongoing maintenance of new and existing infrastructure (parks, landscaping, streets, and utility services), rising pension obligations and contractual service costs that are outside the control of the City. Work continues with staff and designated committees to address the demands for services by implementing new policies, and working on economic development project proposals that will maintain solid economic growth for the community while preserving the necessary level of services. Although the City has seen growth in revenues, it continues to operate at a lean conservative capacity especially as the COVID-19 pandemic continues.
On June 29, 2021, the City Council adopted the City of Loma Linda Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2021 and ending June 30, 2022. The General Fund operating budget totals $22,308,700 and is funded by operating revenue of $22,379,000, transfers in and other financing sources of $751,400, leaving an addition to fund balance of $821,700. The fund balance in the General Fund is expected to increase to $8,199,889 with $4,949,889 in unassigned and $3,250,000 designated (committed or assigned) as budgetary reserves. The total City operating budget amounts to $46,944,900, with total estimated resources available for budget purposes of $48,714,000, for fiscal year 2021/2022. The approved CIP budget for fiscal year 2021/2022 totals $8,139,000 with a fiveyear CIP investment plan estimated at $21,361,000.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. For any questions about this report or additional financial information, please contact the City Manager and/or Finance Director/Treasurer of the City of Loma Linda, located at 25541 Barton Road, Loma Linda, CA 92354, (909) 799-2840, or visit their website at www.lomalinda-ca.gov. -15-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF LOMA LINDA
Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of these financial statements. -16-
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 40,069,830 $ 8,797,310 $ 48,867,140 $ Receivables:
Accounts 513,302 1,472,543 1,985,845
Taxes 2,084,390 - 2,084,390
Interest 29,978 6,815 36,793
Contracts and loans 17,245,560 - 17,245,560
Internal balances 62,180 (62,180) -
Due from other governments 527,757 48,107 575,864
Inventories 18,268 242,318 260,586
Prepaid items 1,999 5,386 7,385
Loan receivable from the Successor Agency 4,241,186 2,341,136 6,582,322 Land held for resale 2,535,695 - 2,535,695
Restricted assets:
Cash and investments with fiscal agents - 682,253 682,253 Capital assets:
Non-depreciable 15,902,792 1,571,541 17,474,333
Depreciable, net 36,977,215 39,526,381 76,503,596
Total capital assets 52,880,007 41,097,922 93,977,929
Total assets 54,631,610 120,210,152 174,841,762
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 5,173,052 1,950,222 7,123,274
OPEB related items 9,188 7,517 16,705
Total deferred outflows of resources 1,957,739 5,182,240 7,139,979
LIABILITIES
Accounts payable 2,359,632 1,493,650 3,853,282
Interest payable - 72,813 72,813
Accrued liabilities 253,955 69,227 323,182
Due to other governments 7,213 - 7,213
Due to other Agency 1,298,708 - 1,298,708
Deposits payable 375,638 247,001 622,639
Unearned revenue 415,191 1,909 417,100
Noncurrent liabilities due in more than one year:
Advances from the Loma Linda Successor Agency 18,072,314 - 18,072,314 Loan payable to General Fund - 124,303 124,303
Due within one year 356,865 357,389 714,254
Due in more than one year 432,860 4,728,123 5,160,983
Net pension liability 5,468,278 1,524,681 6,992,959
Net OPEB liability 206,062 168,598 374,660
Total liabilities 26,860,008 11,174,402 38,034,410
DEFERRED INFLOWS OF RESOURCES
Pension related items 3,537,248 1,333,530 4,870,778
OPEB related items 70,351 57,560 127,911
Total deferred inflows of resources 1,391,090 3,607,599 4,998,689
NET POSITION
Net investment in capital assets 52,880,007 36,344,853 89,224,860 Restricted for:
Public works projects 23,680,265 - 23,680,265
Public safety 1,572,294 - 1,572,294
Community development 17,478,372 - 17,478,372
General government 1,049,875 - 1,049,875
Debt service 53,256 682,253 735,509
Unrestricted (deficit) 13,896,322 (8,688,855) 5,207,467 Total Net Position $ 28,338,251 110,610,391 $ 138,948,642 $ Primary Government
CITY OF LOMA LINDA
Statement of Activities
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -17-
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants Total
Primary Government:
Governmental activities:
General government 2,432,363 $ 3,309,689 $ - $ - $ 3,309,689 $ Public safety 15,816,365 3,395,794 696,322 - 4,092,116
Community development 3,405,290 1,707,289 237,202 - 1,944,491 Public works 6,691,119 6,684,409 678,383 520,806 7,883,598 Interest on long-term debt 1,606 - - - -
Total governmental activities 28,346,743 15,097,181 1,611,907 520,806 17,229,894 Business-type activities:
Water acquisition 34,407 521,151 - - 521,151
Water enterprise 7,451,276 6,908,052 - - 6,908,052
Sewer capital 4,848,037 5,565,852 - - 5,565,852
Loma Linda Connected Communities 998,596 342,360 - - 342,360 Total business-type activities 13,332,316 13,337,415 - - 13,337,415 Total primary government $ 28,434,596 41,679,059 $ 1,611,907 $ 520,806 $ 30,567,309 $ General revenues:
Taxes:
Property tax, levied for general purpose
Sales tax
Franchise tax
Transient occupancy tax
Business license tax
Other taxes
Motor Vehicle in Lieu
Investment revenue
Gain on sale of assets
Miscellaneous
Transfers in (out)
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Functions/Programs
Program Revenues
(Continued)
-18-
Governmental Business-type
Activities Activities Total
$ - 877,326 $ 877,326 $
- (11,724,249) (11,724,249)
- (1,460,799) (1,460,799)
- 1,192,479 1,192,479
- (1,606) (1,606)
- (11,116,849) (11,116,849)
486,744 - 486,744
(543,224) - (543,224)
717,815 - 717,815
(656,236) - (656,236)
5,099 - 5,099
5,099 (11,116,849) (11,111,750)
- 3,043,003 3,043,003
- 3,673,588 3,673,588
- 1,060,786 1,060,786
- 622,280 622,280
- 288,510 288,510
- 12,035 12,035
- 2,504,220 2,504,220
62,642 658,011 720,653
4,205 25,710 29,915
501,164 227,982 729,146
83,538 (83,538) -
651,549 12,032,587 12,684,136
656,648 915,738 1,572,386
27,681,603 109,694,653 137,376,256
$ 28,338,251 110,610,391 $ 138,948,642 $
Net (Expense) Revenue and Changes in Net Position
Primary Government
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-19-
Governmental Fund Financial Statements
General Fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.
Loma Linda Housing Authority – Special Revenue Fund accounts for low/mod housing activities and is funded through re-payments of existing housing loans.
Regional Traffic Development Grant – Special Revenue Fund accounts for the portion of Transportation Projects identified by SANBAG (San Bernardino Associated Governments) that will serve the regional area. SANBAG came up with an allocation of Loma Linda’s share.
Special Projects Construction – Capital Projects Fund accounts for special or extraordinary projects, activities and allocations that might be recommended by staff and determined needed by the City Council.
Park Development – Capital Projects Fund accounts for developer fees collected and expended for future park development and acquisition.
CITY OF LOMA LINDA
Balance Sheet
Governmental Funds
June 30, 2021
The accompanying notes are an integral part of these financial statements. -20-
Loma Linda Regional Traffic
General Housing Authority Development Impact
ASSETS
Cash and investments 12,234,859 $ 887,362 $ 11,299,857 $ Receivables:
Accounts 513,155 - -
Taxes 2,029,685 - -
Interest 8,779 3,500 6,901
Contract and loans 133,962 17,090,665 -
Due from other funds 117,332 - -
Due from other governments 208,852 - -
Inventories 18,268 - -
Prepaid items 1,763 236 -
Land held for resale - 2,535,695 -
Advances to other funds - - -
Loan receivable from Successor Agency - - -
Total assets $ 20,517,458 15,266,655 $ 11,306,758 $
Liabilities, Deferred Inflows of Resources, and
Fund Balances
Liabilities:
Accounts payable 621,446 $ 1,986 $ - $
Accrued liabilities 250,766 - -
Due to other funds 10,636 - -
Due to other governments 7,213 - -
Due to other Agency 1,298,708 - -
Deposits payable 359,024 16,614 -
Unearned revenue 44,234 - -
Advances from other funds - - -
Total liabilities 18,600 2,592,027 -
Deferred inflows of resources:
Unavailable revenue 69,779 3,563,948 -
Fund balances (deficit):
Non spendable:
Inventories 18,268 - -
Prepaid items 1,763 - -
Restricted for:
Cultural and recreational - - -
State mandated - - -
Public safety - - -
Street improvements - - 11,306,758
Storm drains - - -
Municipal facilities - - -
Air quality management - - -
Debt service - - -
Low/mod housing programs - 16,934,910 -
Committed for:
Emergency contingency 2,000,000 - -
Assigned for:
Refuse services 167,204 - -
Fire equipment replacement 365,170 - -
Sewer loan 424,303 - -
Capital equipment replacement 1,250,000 - -
Unassigned 8,378,141 - -
Total fund balances (deficit) 16,934,910 12,604,849 11,306,758 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 20,517,458 15,266,655 $ 11,306,758 $ Special Revenue Funds
(Continued)
-21-
Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ 1,077,790 4,532,641 $ 10,037,321 $ 40,069,830 $
- - 147 513,302
- - 54,705 2,084,390
544 3,565 6,689 29,978
- - 20,933 17,245,560
- - 10,636 127,968
- - 318,905 527,757
- - - 18,268
- - - 1,999
- - - 2,535,695
- 2,804,500 - 2,804,500
- 4,241,186 - 4,241,186
$ 1,078,334 11,581,892 $ 10,449,336 $ 70,200,433 $
$ 10,955 1,541,877 $ 183,368 $ 2,359,632 $
- - 3,189 253,955
- - 55,152 65,788
- - - 7,213
- - - 1,298,708
- - - 375,638
- - 370,957 415,191
2,804,500 - - 2,804,500
2,815,455 1,541,877 612,666 7,580,625
- 4,241,187 134,535 8,009,449
- - - 18,268
- - - 1,763
- - 326,905 326,905
- - 24,550 24,550
- - 1,572,294 1,572,294
- 5,798,828 5,461,653 22,567,239
- - 1,113,026 1,113,026
- - 1,022,630 1,022,630
- - 27,245 27,245
- - 53,256 53,256
- - 216,557 17,151,467
- - - 2,000,000
- - - 167,204
- - - 365,170
- - - 424,303
- - - 1,250,000
(1,737,121) - (115,981) 6,525,039
(1,737,121) 5,798,828 9,702,135 54,610,359
$ 1,078,334 11,581,892 $ 10,449,336 $ 70,200,433 $
Capital Projects Funds
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CITY OF LOMA LINDA
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of these financial statements. -22-
Fund Balances - Total Governmental Funds 54,610,359 $
Amounts reported for governmental activities in the statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources.
Therefore, they are not reported in the governmental funds. 52,880,007 Long-term liabilities are not due and payable in the current period. Therefore, they are not reported in the governmental funds:
Other long term liabilities (38,215)
Compensated absences (751,510)
Net pension liability (5,468,278)
Net OPEB liability (206,062)
Deferred outflow and inflow of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.
Deferred outflows of resources - pension and OPEB related items 5,182,240 Deferred inflows of resources - pension and OPEB related items (3,607,599) Revenues are recorded as unavailable revenue in the governmental funds because they do not meet the revenue recognition criteria. However, they are classified as revenues in the Government-Wide Financial Statements. 8,009,449 Net Position of Governmental Activities 110,610,391 $
CITY OF LOMA LINDA
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -23-
Housing Regional Traffic
General Authority Development Impact
REVENUES
Taxes 13,176,385 $ - $ - $
Licenses and permits 639,968 - -
Intergovernmental 406,838 - -
Charges for services 3,852,711 1,438 -
Use of money and property 398,218 157,478 42,855
Fines and forfeitures 4,498 - -
Miscellaneous 3,889,902 6,135 -
Developer fees - - 3,417,452
Total revenues 165,051 22,368,520 3,460,307
EXPENDITURES
Current:
General government 2,288,702 - -
Public safety 13,947,263 - -
Community development 1,774,944 620,335 -
Public works 2,644,958 - -
Capital outlay 73,924 - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Total expenditures 620,335 20,729,791 -
REVENUES OVER (UNDER) EXPENDITURES (455,284) 1,638,729 3,460,307
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets 25,710 - -
Transfers in 977,004 - -
Transfers out (120,456) (146) -
Total other financing sources (uses) (146) 882,258 -
Net change in fund balances (455,430) 2,520,987 3,460,307
FUND BALANCE (DEFICIT)
Beginning of year 10,083,862 17,390,340 7,846,451
End of year 12,604,849 $ 16,934,910 $ 11,306,758 $
Special Revenue Funds
(Continued)
-24-
Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ - - $ 1,335,840 $ 14,512,225 $
- - - 639,968
- - 2,237,622 2,644,460
- - 213,170 4,067,319
6,583 1,091,533 47,721 1,744,388
- - 53,849 58,347
- - 7,636 3,903,673
624,889 - 2,246,482 6,288,823
631,472 1,091,533 6,142,320 33,859,203
- - 315 2,289,017
- - 142,961 14,090,224
31,575 - 605,613 3,032,467
- 445,800 609,285 3,700,043
156,973 2,305,896 1,892,073 4,428,866
- 38,979 - 38,979
- 1,606 - 1,606
188,548 2,792,281 3,250,247 27,581,202
442,924 (1,700,748) 2,892,073 6,278,001
- - - 25,710
- 19,740 110,000 1,106,744
- - (1,069,680) (1,190,282)
- 19,740 (959,680) (57,828)
442,924 (1,681,008) 1,932,393 6,220,173
(2,180,045) 7,479,836 7,769,742 48,390,186
$ (1,737,121) 5,798,828 $ 9,702,135 $ 54,610,359 $
Capital Projects Funds
CITY OF LOMA LINDA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-Wide Statement of Activities and Changes in Net Position
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -25-
Net change in Fund Balance - Total Governmental Funds 6,220,173 $ Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds report capital outlays as expenditures. However, in the Government-Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.
Capital outlay capitalized, net of disposals 2,638,056 $ Depreciation expense (1,895,580) 742,476
Proceeds from long-term debt provide current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the GovernmentWide Statement of Net Position.
Principal payment of capital lease 38,984
Governmental funds report revenues and expenditures primarily pertaining to long-term liabilities, which are not reported in the statement of activities. At the government-wide level, these activities are reported in the statement of net position. This is the net expenditure reported in the governmental funds, which is not reported in the statement of activities.
Pension related net adjustments (1,483,409)
OPEB related net adjustments (21,813)
JPIA insurance rolling retro increase (22,078) (1,527,300) Long-term compensated absences is reported in the Government-Wide Statement of Activities, but it does not require the use of current financial resources. Therefore, longterm compensated absences is not reported as an expenditure in the governmental funds. The reconciling amount is the change in long term compensated absences from the prior year. (22,849)
Accrued interest expense on long-term debt is reported in the Government-Wide Statement of Activities, but it does not require the use of current financial resources.
Therefore, interest expense is not reported as an expenditure in the governmental funds. The reconciling amount is the change in accrued interest from the prior year. 3,148 Certain revenues are recorded as unavailable revenue in the governmental funds because they do not meet the revenue recognition criteria of availability. However, they are included as revenue in the Governmental-Wide Statement of Activities. (4,538,894) Change in Net Position of Governmental Activities 915,738 $ -26-
Proprietary Fund Financial Statements
Water Acquisition Fund accounts for developer fees collected to pay for the expansion of the water system and for debt service on qualifying projects.
Water Enterprise Fund is used to account for water production, distribution and meters.
Sewer Capital Fund accounts for the operation and maintenance of the City's sewer, storm drain and catch basin systems.
Loma Linda Connected Communities Fund provides Loma Linda residents and businesses with the opportunities for voice, data, video, multimedia, home automation systems, environmental control, security, audio, television, sensors, alarms and intercom services. The program establishes the standardized requirements for residential and commercial telecommunications cabling systems. The initial intent is to connect new development to the system, but the long-term goal is to eventually retrofit and extend these services to the entire community.
CITY OF LOMA LINDA
Statement of Net Position
Proprietary Funds
June 30, 2021
The accompanying notes are an integral part of these financial statements. -27-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
ASSETS
Current assets:
Cash and cash equivalents 4,927,624 $ 1,991,343 $ 1,682,990 $ 195,353 $ 8,797,310 $ Receivables:
Accounts - 766,390 669,066 37,087 1,472,543
Interest 3,509 1,874 1,306 126 6,815
Contracts and loans - - - - -
Inventories - 241,744 574 - 242,318
Due from other funds - - - - -
Due from other governments - 24,015 22,664 1,428 48,107 Prepaid items - 5,386 - - 5,386
Total current assets 4,931,133 3,030,752 2,376,600 233,994 10,572,479 Noncurrent assets:
Advances to other funds - 1,152,395 - - 1,152,395
Loan receivable from Successor Agency 2,341,136 - - - 2,341,136 Restricted assets:
Cash and investments with fiscal agents - 682,253 - - 682,253 Capital assets:
Non-depreciable - 1,571,541 - - 1,571,541
Depreciable, net - 32,277,457 3,117,554 4,131,370 39,526,381 Total capital assets - 33,848,998 3,117,554 4,131,370 41,097,922 Total noncurrent assets 2,341,136 35,683,646 3,117,554 4,131,370 45,273,706 Total assets 38,714,398 7,272,269 5,494,154 4,365,364 55,846,185
DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 1,353,215 517,406 79,601 1,950,222 OPEB related items - 4,510 2,180 827 7,517
Total deferred outflows of resources - 1,357,725 519,586 80,428 1,957,739
LIABILITIES
Current liabilities:
Accounts payable 687,172 227,801 556,650 22,027 1,493,650 Interest payable - Bonds - 72,813 - - 72,813
Accrued liabilities - 52,133 16,313 781 69,227
Deposits payable - 58,944 174,719 13,338 247,001
Due to other funds - 58,784 430 2,966 62,180
Unearned revenue - 1,909 - - 1,909
Long-term debt - due within one year - 324,086 31,567 1,736 357,389 Total current liabilities 687,172 796,470 779,679 40,848 2,304,169 Noncurrent liabilities:
Advances from other funds - - 1,152,395 - 1,152,395
Advances from Loma Linda Successor Agency - - - 18,072,314 18,072,314 Loan payable to General Fund - - 124,303 - 124,303
Long-term debt - due in more than one year - 4,660,098 50,731 17,294 4,728,123 Net pension liability - 1,057,942 404,507 62,232 1,524,681 Net OPEB liability - 101,159 48,893 18,546 168,598
Total noncurrent liabilities - 5,819,199 1,780,829 18,170,386 25,770,414 Total liabilities 6,615,669 687,172 2,560,508 18,211,234 28,074,583
DEFERRED INFLOWS OF RESOURCES
Pension related items - 925,306 353,793 54,431 1,333,530 OPEB related items - 34,536 16,692 6,332 57,560
Total deferred inflows of resources - 959,842 370,485 60,763 1,391,090
NET POSITION (DEFICIT)
Net investment in capital assets - 29,095,929 3,117,554 4,131,370 36,344,853 Restricted for debt service - 682,253 - - 682,253
Unrestricted 6,585,097 2,718,430 (34,807) (17,957,575) (8,688,855) Total net position (deficit) $ 32,496,612 6,585,097 $ 3,082,747 $ (13,826,205) $ 28,338,251 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -28-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
OPERATING REVENUES
Charges for services 521,151 $ 6,908,052 $ 5,565,852 $ 342,360 $ 13,337,415 $ Miscellaneous - 498,683 2,481 - 501,164
Total operating revenues 7,406,735 521,151 5,568,333 342,360 13,838,579
OPERATING EXPENSES
Treatment - - 3,951,982 - 3,951,982
Cost of sales and services 34,407 3,638,503 - 265,708 3,938,618 Administration and general - 2,172,579 725,123 41,809 2,939,511 Depreciation - 1,497,409 169,302 129,197 1,795,908
Total operating expenses 7,308,491 34,407 4,846,407 436,714 12,626,019 Operating change in net position 98,244 486,744 721,926 (94,354) 1,212,560
NONOPERATING REVENUES (EXPENSES)
Gain on disposal of assets - 4,205 - - 4,205
Interest revenue 38,673 15,868 7,390 711 62,642
Interest expense - (142,785) (1,630) (561,882) (706,297) Net nonoperating revenues (expenses) (122,712) 38,673 5,760 (561,171) (639,450) Change in net position (deficit) before
transfers (24,468) 525,417 727,686 (655,525) 573,110
TRANSFERS
Transfer in - 2,045,066 67,540 17,486 2,130,092
Transfer out (2,039,977) (4,713) (1,864) - (2,046,554)
Total transfers 2,040,353 (2,039,977) 65,676 17,486 83,538 Change in net position (1,514,560) 2,015,885 793,362 (638,039) 656,648
NET POSITION (DEFICIT)
Beginning of year 8,099,657 30,480,727 2,289,385 (13,188,166) 27,681,603 End of year 6,585,097 $ 32,496,612 $ 3,082,747 $ (13,826,205) $ 28,338,251 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -29-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 521,151 $ 7,302,729 $ 5,480,378 $ 344,957 $ 13,649,215 $ Payments to suppliers for operations 510,544 (3,574,379) (3,843,089) (258,143) (7,165,067) Payments for general and administrative expenses - (1,987,397) (658,720) (28,082) (2,674,199) Net cash provided by
operating activities 1,740,953 1,031,695 978,569 58,732 3,809,949
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Advances to other funds - - - 2,966 2,966
Advances from other funds - - (298,370) - (298,370)
Borrowing from other funds - 58,784 (2,051) - 56,733
Proceeds from other governmental entities - 1,068 417 19,100 20,585 Transfer in 2,045,066 - 67,540 17,486 2,130,092
Transfer out (2,039,977) (4,713) (1,864) - (2,046,554)
Net cash provided (used) by
noncapital financing activities 2,100,205 (2,039,977) (234,328) 39,552 (134,548)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of capital assets - (2,304,797) - - (2,304,797) Proceeds from sale of assets - 4,205 - (43,710) (39,505) Proceeds from note receivable 562,977 - - - 562,977
Payments on long-term debt (290,379) (3,511) (3,402) (297,292) Interest paid on long-term debt - (148,296) (1,630) - (149,926) Net cash provided (used) by capital and related
financing activities (2,739,267) 562,977 (5,141) (47,112) (2,228,543)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 52,480 17,183 9,314 1,032 80,009
Net cash provided by investing activities 17,183 52,480 9,314 1,032 80,009 Net increase (decrease) in cash and equivalents 1,119,074 (392,825) 748,414 52,204 1,526,867
CASH AND CASH EQUIVALENTS
Beginning of year 5,320,449 1,554,522 934,576 143,149 7,952,696 End of year $ 2,673,596 4,927,624 $ 1,682,990 $ 195,353 $ 9,479,563 $
COMPRISED AS FOLLOWS
Cash and cash equivalents 4,927,624 $ 1,991,343 $ 1,682,990 $ 195,353 $ 8,797,310 $ Cash and investments with fiscal agents - 682,253 - - 682,253 Total cash and investments $ 2,673,596 4,927,624 $ 1,682,990 $ 195,353 $ 9,479,563 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows, continued
Proprietary Funds
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -30-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
RECONCILIATION OF CHANGE IN OPERATING NET POSITION
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITES
Operating change in net position 486,744 $ 98,244 $ 721,926 $ (94,354) $ 1,212,560 $ Adjustments to reconcile operating change in net position to net cash provided (used) by operating activities:
Depreciation - 1,497,409 169,302 129,197 1,795,908
(Increase) decrease in accounts receivable - (105,915) (87,955) 2,597 (191,273) (Increase) decrease in inventories - 38,656 17 - 38,673 (Increase) decrease in prepaid items - 90 - - 90
(Increase) decrease in deferred outflows of resources - 644,785 247,322 38,899 931,006 Increase (decrease) in accounts payable 544,951 23,280 108,876 6,645 683,752 Increase (decrease) in accrued liabilities - 3,923 (410) (2,774) 739 Increase (decrease) in deposits payable - 2,098 - 920 3,018 Increase (decrease) in due unearned revenue - 1,909 1,909 Increase (decrease) in net OPEB obligation - (2,405) (1,163) (441) (4,009) Increase (decrease) in compensated absences - 772 (3,276) 4,550 2,046 Increase (decrease) in net pension liability - (296,406) (113,332) (17,436) (427,174) Increase (decrease) in deferred inflows of resources - (165,487) (62,738) (9,071) (237,296) Total adjustments 1,642,709 544,951 256,643 153,086 2,597,389 Net cash provided (used) by operating activities $ 1,740,953 1,031,695 $ 978,569 $ 58,732 $ 3,809,949 $ Enterprise Funds
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-31-
Fiduciary Funds Financial Statements
The Fiduciary Funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs.
Custodial Funds - The Custodial Funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments.
Private Purpose Trust Fund - The Private Purpose Trust Fund is used to report resources of other trust arrangements in which principal and income benefit individuals, private organizations, or other governments. The Private Purpose Trust Fund reflects the activities of the Successor Agency to the former Loma Linda Redevelopment Agency.
CITY OF LOMA LINDA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
The accompanying notes are an integral part of these financial statements. -32-
Private Purpose
Custodial Funds Trust Fund
ASSETS
Cash and investments 98,370 $ 3,917,021 $
Receivables:
Interest - 1,401
Contract and loans - 79,862
Prepaid Items - 152,110
Due from other governments - 328
Advances to the City of Loma Linda - 18,072,314
Restricted assets:
Cash and investments with fiscal agents - 23
Total assets 22,223,059 98,370
LIABILITIES
Accounts payable 1,624 711
Interest payable - 333,031
Due to other governments - 174,966
Deposits payable 78,145 28,686
Long-term debt:
Due within one year - 3,909,148
Due beyond one year - 27,884,555
Total liabilities 32,331,097 79,769
DEFERRED INFLOWS OF RESOURCES
Gain on debt refunding - 21,521
NET POSITION (DEFICIT)
Net position (deficit) held in trust 18,601 $ (10,129,559) $
CITY OF LOMA LINDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
The accompanying notes are an integral part of these financial statements. -33-
Private Purpose
Custodial Funds Trust Fund
ADDITIONS
Property taxes - $ 4,873,150 $
Use of money and property - 568,173
Miscellaneous 18,618 -
Gain on sale of property - (3,986,170)
Total additions 1,455,153 18,618
DEDUCTIONS
General and administrative - 1,920,235
Debt service:
Interest and fiscal charges - 848,040
Total deductions 2,768,275 -
Change in net position (1,313,122) 18,618
NET POSITION (DEFICIT):
Beginning of year, as restated (17) (8,816,437)
End of year 18,601 $ (10,129,559) $
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CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-34-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Loma Linda, California (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A. Reporting Entity
The City of Loma Linda, California (the City), was incorporated on September 29, 1970 under the laws of the State of California. The City became a chartered City in 1981. It is governed by an elected five-member City Council. As required by generally accepted accounting principles (GAAP), the accompanying financial statements present the City and its component units.
GAAP, defines component units as legally separate entities that meet any one of the following tests:
The City appoints the voting majority of the board of the component unit and:
o is able to impose its will on the component unit and/or o is in a relationship of financial benefit or burden with the component unit. The component unit is fiscally dependent upon the City. The financial statements of the City would be misleading if data from the component unit were omitted.
Component units are entities for which the City is considered to be financially accountable, in accordance with generally accepted accounting principles. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and (1) it is able to impose its will on that organization, or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance, part of the City's operations, and data from these units are combined with data of the primary government.
Based on the criteria above, the City has two component units, both of which are blended component units. These component units are described as follows:
Loma Linda Public Financing Authority - The Loma Linda Public Financing Authority (Authority) was established on September 10, 2002 pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code in order to jointly exercise powers of the Agency and the City and to establish a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-35-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Reporting Entity, Continued
Loma Linda Housing Authority - The City of Loma Linda Housing Authority (the Housing Authority) was established by the City Council on January 10, 2012, and is responsible for the administration of providing affordable housing in the City. The Housing Authority is governed by a five-member Board of Directors which consists of members of the City Council. The Housing Authority is considered a blended component unit due to the financial benefit or burden relationship the Housing Authority shares with the City as its financial transactions are reported in a Special Revenue Fund.
Since the City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the interfund data of the primary government. These component units do not issue separate component unit financial statements.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and BusinessType Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.
The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-36-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, continued
Certain eliminations have been made as prescribed by GAAP in regards to interfund activities, payables and receivables including the corresponding deferred revenues. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated. However, transactions between governmental and business-type activities have not been eliminated. Due to and from other funds
Advances to and from other funds
Transfers in and out
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted-net position to have been depleted before unrestricted-net position is applied.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balance for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide financial statements. The City has presented all major funds that met the qualifications for major fund reporting.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-37-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, continued
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end, except sales tax which is considered available if collected within 90 days) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, taxpayer-assessed tax revenues (transient occupancy taxes, franchise taxes, etc.), certain grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the balance sheet and revenue is recognized.
Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach of generally accepted accounting principles.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s policy to consider restricted fund balance to have been depleted before using any of the unrestricted components of fund balance. Furthermore, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-38-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, continued
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position. The City's Fiduciary Funds represent:
Custodial Funds – are custodial in nature and are accounted for using the accrual basis of accounting.
Private Purpose Trust Fund – report resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments. Private purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. This fund is used to report the assets, liabilities, and activities of the City of Loma Linda Redevelopment Agency Successor Agency.
Major Funds
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund.
The Loma Linda Housing Authority is responsible for the administration of providing affordable housing in the City.
Regional Traffic Development Special Revenue Fund accounts for the portion of Transportation Projects identified by SANBAG (San Bernardino Associated Governments) that will serve the regional area.
The Special Projects Construction Capital Projects Fund accounts for special or extraordinary projects, activities and allocations that might be recommended by staff and determined needed by the City Council.
The Park Development Capital Projects Fund accounts for developer fees collected and expended for future park development and acquisition.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-39-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Major Funds, continued
The City reports the following major proprietary funds:
The Water Acquisition Fund accounts for developer fees collected to pay for the expansion of the water system and for debt service on qualifying projects.
The Water Enterprise Fund is used to account for water production, distribution and meters.
The Sewer Capital Fund accounts for the operation and maintenance of the City’s sewer, storm drain and catch basin systems.
The Loma Linda Connected Communities Fund provides Loma Linda residents and businesses with the opportunities for voice, data, video, multimedia, home automation systems, environmental control, security, audio, television, sensors, alarms and intercom services. The program establishes the standardized requirements for residential and commercial telecommunications cabling systems. The initial intent is to connect new development to the system, but the long-term goal is to eventually retrofit and extend these services to the entire community.
Additionally, the City reports the following fiduciary funds:
Custodial Funds – These funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments.
Private Purpose Trust Fund – This fund is used to account for the assets, liabilities, and activities of the Successor Agency to the former City of Loma Linda Redevelopment Agency.
Fiduciary Funds are not included in the City’s Government-Wide Financial Statements.
C. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the City’s policy is to apply restricted net position first.
D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-40-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Cash, Cash Equivalents and Investments, Continued
All cash and investments of proprietary funds are held in the City’s investment pool. Therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for the purpose of the statement of cash flows as these cash pools have the general characteristics of a demand deposit account. In accordance with GAAP, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk as to change in interest rates.
In accordance with GAAP, certain disclosure requirements, if applicable, for Deposits and Investment Risks are specified in the following areas:
Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
E. Receivables
All receivables, contracts, loans and accounts are shown net of an allowance for doubtful accounts. In the proprietary funds, the City accrues for unbilled water and sewer services at year-end.
F. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-41-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Interfund Transactions, Continued
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/ expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except interfund services provided and used, are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.
G. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories in the General Fund consist of expendable supplies held for consumption, whereas in the Enterprise Funds it represents water supplies in the water utility. Inventory costs are recorded as expenditures when used.
The General Fund inventory is accounted for on the consumption method and is equally offset by a reservation of fund balance in the fund-level statements, which indicates that it does not constitute “available spendable resources”.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
H. Restricted Cash and Investments with Fiscal Agents
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects.
I. Capital Assets
Government-Wide Financial statements - capital assets, which include land, structures and improvements, machinery and equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and construction in progress are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed and donated capital assets are valued at acquisition value on the date of acquisition.
For infrastructure systems, the City elected to use the “Basic Approach” as defined by generally accepted accounting principles for infrastructure reporting.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-42-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Capital Assets, Continued
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of the capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Type of asset Years
Structures and improvements 15-50
Machinery and equipment 5-20
Infrastructure 20-50
Fund Financial Statements - The fund financial statements do not present capital assets.
Consequently, capital assets are presented as reconciling items in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
J. Interest Payable
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred for all fund types.
K. Unearned Revenues
In the Government-Wide Financial Statements, unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the Government-Wide Financial Statements are prepaid charges for services.
L. Compensated Absences
Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally an employee cannot accrue more than 26 to 46 days depending on length of employment.
Sick leave is payable when an employee is unable to work because of illness. Upon termination an employee will be paid one-third of unused sick leave up to 344 hours for miscellaneous employees and 516 hours for safety employees. Sick leave hours earned above the maximum are paid out on a one-for-one basis.
All vacation and one-third of sick leave pay is accrued when incurred in the Government-Wide Financial Statements and Proprietary Funds.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-43-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Long-Term Debt
Government-Wide Financial Statements - Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable premium or discount.
Fund Financial Statements - The fund financial statements do not present long-term debt. As such, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources.
Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Proprietary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.
N. Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov.
Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
For the liability for pension-related, the general fund normally liquidates 51 percent, and the remaining 49 percent is liquidated by the Proprietary funds.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-44-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Other Postemployment Benefits (OPEB)
For purposes of measuring net OPEB liability/asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) July 1, 2019 to June 30, 2020
For the liability for OPEB-related, the general fund normally liquidates 55 percent and the remaining 45 percent is liquidated by the Proprietary funds.
P. Net Position
In the Government-Wide Financial Statements, Net Position are classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position – This amount is all net position that does not meet the definition of “net invested in capital assets” or “restricted net position”.
Q. Fund Balance
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:
Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-45-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Fund Balance, Continued
Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed – Committed fund balances encompass the portion of net fund resources that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from the action that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City Council considers a resolution to constitute a formal action of the City Council for the purposes of establishing committed fund balance.
Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose.
The City Council has established a resolution that authorized the City Manager for that purpose.
Unassigned – This category is for any balances that have no restrictions placed upon them.
The General Fund is the only fund that could report a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance. However, in governmental funds other than the general fund, if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
Restricted
Committed
Assigned
Unassigned
A City Council Action is the formal action required by the Government to establish and modify or rescind a fund balance commitment.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-46-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. Property Taxes
Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes levied. Taxes are levied on both real and personal property, as it exists on that date.
The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent if unpaid on December 10 and April 10, respectively.
Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31.
S. Use of Estimates
The preparation of the basic financial statements in conformity with GAAP generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
T. Implementation of New GASB Pronouncement
The Governmental Accounting Standards Board (GASB) has issued Statement No. 84, Fiduciary Activities. The primary objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
As a result, activities previously reported as agency funds (Association Fire Equipment Fund and Customer Deposits Fund) are now presented as custodial funds.
Note 2: CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the City Treasurer to enhance interest earnings. The City has the following cash and investments at June 30, 2021:
Governmental Business-Type Custodial Private Purpose
Activities Acitvities Funds Trust Fund Totals
Cash and investments 40,069,830 $ 8,797,310 $ 98,370 $ 3,917,021 $ 52,882,531 $ Restricted cash and investments - 682,253 - 23 682,276
Total cash and investments 40,069,830 $ 9,479,563 $ 98,370 $ 3,917,044 $ 53,564,807 $ Government-Wide Statements Fiduciary Funds Statements
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-47-
Note 2: CASH AND INVESTMENTS, Continued
The City’s cash and investments at June 30, 2021 in more detail were as follows:
Cash and cash equivalents
Petty cash 1,350 $
Demand deposits 1,545,250
Total cash and cash equivalents 1,546,600
Investments
Local Agency Investment Fund 51,335,931
Total cash and investments 52,882,531
Cash and Investments with Fiscal Agents 682,276
Total cash and investments 53,564,807 $
A. Deposits
The carrying amounts of the City’s demand deposits were $1,545,250 at June 30, 2021. Bank balances before reconciling items were $1,857,660 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code (Code) requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
B. Investments
Under the provisions of the City’s investment policy, and in accordance with the Code, the following investments were authorized:
Securities of the U.S. Government, or its agencies
Certificates of Deposits (or Time Deposits)
State of California Local Agency Investment Fund (LAIF) Other investments that are approved through the State of California Government Code
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-48-
Note 2: CASH AND INVESTMENTS, Continued
B. Investments, Continued
As of June 30, 2021, the City was a voluntary participant and had $51,335,931 invested in LAIF.
The City has complied with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools. No current adjustments have been made to the accompanying basic financial statements, because the City’s investments were only in LAIF and the fair value adjustment was immaterial.
The City’s investments with LAIF at June 30, 2021 included 2.31% of the pooled funds invested in structured notes and asset-backed securities. This is a decrease of 31.5% from the prior year.
These investments included the following:
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.
Asset-Backed Securities: generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute.
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the Code or the City’s investment policy.
D. Risk Disclosures
Interest Rate Risk – The City’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to invest all in LAIF which has a maturity of less than one year.
External Pool: Value Less than 1 Year
State of California - Local Agency
Investment Fund $ 51,335,931 51,335,931 $
Invested Maturities in Years
Credit Risk – As of June 30, 2021, the City’s investments in external investment pools are unrated.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-49-
Note 2: CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
Custodial Credit Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a deposit financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.
The City’s investment policy does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the provision for deposits stated in Note 2A. City’s bank participates in the FDIC‘s temporary Transaction Account Guarantee Program which provides unlimited coverage. Of the City and Successor Agency’s investments, $682,276 of securities was held by the counterparty’s trust department, the trustee for the bonds, not in the name of the City as of June 30, 2021.
Concentration of Credit Risk – The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the Code. Although the City’s policy allows other forms of investments, per City Council direction, the City currently only invests in LAIF.
E. Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.
For the fiscal year ended June 30, 2021, the City of Loma Linda did not maintain any investments subject to the fair value hierarchy. The City maintains a $51,335,931 investment in the California State Investment Pool.
Note 3: CONTRACTS AND LOANS RECEIVABLE
Contracts and loans receivable consisted of the following at June 30, 2021:
Balance Balance
June 30, 2020 Additions Deletions June 30, 2021
Big Bear Valley Water Stock 1,075 $ - $ - $ 1,075 $
LL Chamber of Commerce Loan 8,584 - - 8,584
Loan to Sewer fund 422,673 1,630 (300,000) 124,303
Deferred Housing Plan 21,006 - (6,450) 14,556
Developers Loans 12,206,610 924,976 - 13,131,586
First Time Homebuyers 4,087,618 - (122,162) 3,965,456
Total 16,747,566 $ 926,606 $ (428,612) $ 17,245,560 $
-
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-50-
Note 4: INTERFUND TRANSACTIONS
A. Fund Financial Statements
Due To/Due From Other Funds - At June 30, 2021, the City had the following due to/from other funds:
Loma Linda
Nonmajor Sewer Sewer Connected
Due From Other Funds General Fund Governmental Enterprise Capital Communities Total Governmental Funds:
General Fund - $ 55,152 $ 430 $ 58,784 $ 2,966 $ 117,332 $ Nonmajor Governmental 10,636 - - - - 10,636
Total 10,636 $ 55,152 $ 430 $ 58,784 $ 2,966 $ 127,968 $ Governmental Funds
Due to Other Funds
Proprietary Funds
The Due from in the General Fund is made up of $55,152 from the Community Development Block Grant Fund and the Federal and State Construction to cover grant related expenditures that have not yet been reimbursed by the granting agencies. The due from the Sewer Enterprise fund, Sewer Capital fund and Loma Linda Connected Communities is for an end of the year insurance adjustment.
Advances To/From Other Funds - At June 30, 2021, the City had the following advances to/from other funds:
Governmental Funds
Park Sewer
Advances To Other Funds Development Capital Total
Governmental Funds:
Special Projects Construction 2,804,500 $ - $ 2,804,500 $ Enterprise Funds:
Water Enterprise - 1,152,395 1,152,395
Total 2,804,500 $ 1,152,395 $ 3,956,895 $
Enterprise Funds
Advances From Other Funds
Advances from the Water Enterprise fund to the Sewer Capital Fund in the amount of $1,152,395 was to help cover negative cash during operations. In the governmental funds, the advance to the Park Development fund from the Special Projects Construction fund were to assist with the acquisition of the open space property in the City’s South Hills.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-51-
Note 4: INTERFUND TRANSACTIONS, Continued
A. Fund Financial Statements, Continued
Transfers – For the year ended June 30, 2021, the City had the following transfers in and out:
Fund receiving transfers Fund making transfers Amount
General Fund Nonmajor funds 977,004 $
Special Projects Construction Water Acquisition 19,740
Sewer Capital Non Major Fund 67,540
Non Major Fund General Fund 110,000
Water Enterprise Water Acquisition 2,020,237
Non Major Fund 24,829
Loma Linda Connected Communities Sewer Capital 1,864
General Fund 10,456
Non Major Fund 307
Loma Linda Housing Authority 146
Water Enterprise 4,713
Total transfers 3,236,836 $
Certain Non-major Governmental funds made payments in the amount of $977,004 to the General Fund for street maintenance and to cover operational costs. The General Fund transferred $110,000 to a non-major fund to assist with Landscape Maintenance operations.
Transfers of $2,045,066 to Water Enterprise from Water Acquisition were noncash transfers of capital assets. The remaining transfers shown above were for the purchases of capital assets.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-52-
Note 5: CAPITAL ASSETS
The following is a summary of capital assets for the governmental activities:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets, not being depreciated:
Land 14,651,396 $ - $ - $ 14,651,396 $
Construction in progress 1,197,482 85,557 (31,643) 1,251,396 Total capital assets, not being depreciated 15,848,878 85,557 (31,643) 15,902,792 Capital assets, being depreciated:
Structures and improvements 23,606,612 662,424 - 24,269,036 Machinery and equipment 7,965,400 1,892,374 (75,852) 9,781,922 Infrastructure 54,483,833 44,208 - 54,528,041
Total capital assets, being depreciated 86,055,845 2,599,006 (75,852) 88,578,999 Less accumulated depreciation/amortization for:
Structures and improvements (16,580,168) (591,236) - (17,171,404) Machinery and equipment (5,566,045) (441,745) 60,988 (5,946,802) Infrastructure (27,620,979) (862,599) - (28,483,578)
Total accumulated depreciation (49,767,192) (1,895,580) 60,988 (51,601,784) Total capital assets, being depreciated net 36,288,653 703,426 (14,864) 36,977,215 Governmental activities capital assets, net 52,137,531 $ 788,983 $ (46,507) $ 52,880,007 $ Depreciation expense was charged to functions of the primary government's governmental activities as follows:
Governmental activities:
General government 167,112 $
Public safety 312,221
Community development 298,912
Public works 1,117,335
Total depreciation - governmental activities 1,895,580 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-53-
Note 5: CAPITAL ASSETS, Continued
The following is a summary of capital assets for the business-type activities:
Beginning Ending
Balance Additions Deletions Balance
Business-type activities:
Capital assets, not being depreciated:
Land and improvements 1,387,764 $ - $ - $ 1,387,764 $
Construction in progress 312,728 84,353 (213,304) 183,777 Total capital assets, not being depreciated 1,700,492 84,353 (213,304) 1,571,541 Capital assets, being depreciated:
Structures and improvements 26,968,959 - - 26,968,959
Machinery and equipment 6,464,988 134,713 (17,755) 6,581,946 Infrastructure 41,445,985 2,342,747 - 43,788,732
Total capital assets, being depreciated 74,879,932 2,477,460 (17,755) 77,339,637 Less accumulated depreciation for:
Structures and improvements (20,688,970) (466,757) - (21,155,727) Machinery and equipment (5,196,714) (195,471) 17,755 (5,374,430) Infrastructure (10,149,419) (1,133,680) - (11,283,099)
Total accumulated depreciation (36,035,103) (1,795,908) 17,755 (37,813,256) Total capital assets, being depreciated net 38,844,829 681,552 - 39,526,381 Business-type activities capital assets, net 40,545,321 $ 765,905 $ (213,304) $ 41,097,922 $ Depreciation expense was charged to functions of the primary government's business-type activities as follows:
Business-type activities:
Water Enterprise 1,497,409 $
Sewer Capital 169,302
Loma Linda Connected Communities 129,197
Total depreciation - business-type activities 1,795,908 $ Note 6: LONG-TERM LIABILITIES
The following is a summary of long-term debt transactions for the fiscal year ended June 30, 2021:
Beginning Ending Due within
Governmental activities: Balance Additions Deletions Balance One Year Master Lease Purchase - fire aparatus 38,984 $ - $ (38,984) $ - $ - $ Insurance Retrospective Deposit 16,137 146,137 (124,059) 38,215 38,215 Compensated absences 728,661 647,372 (624,523) 751,510 318,650 Total governmental activities $ 793,509 783,782 $ (787,566) $ 789,725 $ 356,865 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-54-
Note 6: LONG-TERM LIABILITIES, Continued
Beginning Ending Due within
Business-type activities: Balance Additions Deletions Balance One Year Revenue Bonds:
1978 Water Bonds (General Obligation) 10,000 $ - $ - $ 10,000 $ 10,000 $ 2016 Water Revenue Refunding Bonds -
Direct Borrowing 4,935,000 - (225,000) 4,710,000 230,000 Unamortized bond premium 45,908 - (2,839) 43,069 2,840
Insurance Retrospective Deposit 85,321 - (72,293) 13,028 13,028 Compensated absences 307,369 243,818 (241,772) 309,415 101,521 Total business-type activities $ 243,818 5,383,598 $ (541,904) $ 5,085,512 $ 357,389 $ A. Governmental Activities Long-Term Debt
For the governmental activities, compensated absences, the OPEB liability and the net pension liability are generally liquidated primarily by the General Fund, with a small portion by the Street Lighting District and Land Maintenance District.
Capital Lease
On October 9, 2010 the City entered into a ten year capital lease agreement with Oshkosh Capital to acquire a new Fire Incident Support Apparatus in the amount of $333,273. Payments in the amount of $40,585 are due on July 9th of each year with the first payment due on July 9, 2011. Payments include interest of 4.12%. As collateral security for the secured obligations, the City grants to lessor a first priority security interest in any and all of the equipment and any and all proceeds thereof. The term secured obligation means the City’s obligation to pay all rent payments and all other amounts due and payable under all present and future leases and to perform and observe all covenants, agreements and conditions of the City under all present and future leases. The final payment on the lease was made during the fiscal year ending June 30, 2021.
The total leased assets by major asset class consisted of the following:
June 30, 2021
Equipment
Equipment under capitalized lease, at cost 333,273 $
Accumulated depreciation (174,968)
Equipment under capitalized lease, net 158,305 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-55-
Note 6: LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
JPIA Retrospective Deposit
Since its inception, the California JPIA, “Authority”, has operated under a retrospective funding model for its liability and workers’ compensation programs. Historically, members have paid for retrospective deposit adjustments and received retrospective refunds in annual rolling installments of up to eight years in duration. A change to the funding model was adopted in 2010 that fully implemented during fiscal year 2013-14 coverage period. The unpaid portion of all retrospective adjustments on coverage periods up to and including fiscal year 2009-10 have been consolidated into a single aggregate retrospective balance and temporarily deferred from payment. Payments resumed beginning July 1, 2014 for the Liability program and July 1, 2015 for the Workers’ Compensation program. The City of Loma Linda’s portion owed of $38,215 is for the Worker’s compensation portion.
Compensated Absences
The City’s liability for vested and unpaid compensated absences in the governmental activities has been accrued and amounted to $751,510. This amount is made up of accrued vacation, one third sick pay plus any amount over the maximum sick hours accrued, and any comp time earned. Compensated absences are primarily liquidated by the General Fund. For further explanation see Note 1.
B. Business-Type Activities Long-Term Debt
1978 Water Bonds (General Obligation) – Original Issue $1,000,000 On February 14, 1978, the City issued $1,000,000 of 1978 Water Bonds (General Obligation).
The purpose of the bonds was to finance water system improvements.
The bonds matured from April 1, 1979 to April 1, 2003 in varying amounts. The bonds accrued interest at rates between 4.80% and 6.75%. Interest on the bonds was payable semiannually on each April 1 and October 1. Principal was payable in annual installments commencing April 1, 1979. The revenues of the Water Fund were being used to pay the annual debt service requirements of the bonds. The bonds matured in fiscal year 2003; however, at June 30, 2010, not all bonds have been presented for payment. The amount outstanding as of June 30, 2021 was $10,000. Interest no longer accrues on these bonds.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-56-
Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt (continued)
2016 Water Revenue Refunding Bonds – Original Issue $5,615,000 – Direct Borrowing On September 14, 2016, the City issued $5,615,000 in Revenue Refunding Bonds, Series 2016 for the purpose of refunding the 1995 Variable Rate Water Revenue Refunding Bonds, of which $5,075,000 was outstanding, and to fund a reserve fund and pay issuance costs for the 2016 bonds. The bonds mature annually each July 1, 2017 through 2036 in amounts ranging from $215,000 to $365,000. The bonds bear variable interest rates ranging from 2.000% to 3.750% and are payable semi-annually each January 1 and July 1, commencing July 1, 2017.
All net revenues of the Water Enterprise fund has been irrevocably pledged to secure the payment of the principal of and interest, and the premium, if any, on the 2016 Bonds in accordance with their terms and provision of the Indenture, and the revenues may not be used for any other purpose while the 2016 Bonds remain outstanding. In the event of default specified in the Indenture occurs and is continuing, the Trustee may, upon being indemnified to its reasonable satisfaction thereof, upon notice in writing to the City, declare the principal of all of the 2016 Bonds then outstanding, and the interest accrued thereon, to be due and payable immediately. Nothing in the Indenture permits or requires the Trustee to accelerate payments due under the Indenture of the City is not in default of its obligation thereunder.
The annual requirements to amortize the 2016 Water Revenue Refunding Bonds outstanding at June 30, 2021 were as follows:
Year Ending
June 30, Principal Interest Total
2022 230,000 $ 145,625 $ 375,625 $
2023 235,000 140,143 375,143
2024 245,000 131,350 376,350
2025 255,000 122,163 377,163
2026 260,000 112,600 372,600
2027-2031 1,445,000 426,450 1,871,450
2032-2036 1,675,000 207,713 1,882,713
2037 365,000 10,950 375,950
Total 4,710,000 $ 1,296,994 $ 6,006,994 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-57-
Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt, Continued
JPIA Retrospective Deposit
Since its inception, the California JPIA, “Authority”, has operated under a retrospective funding model for its liability and workers’ compensation programs. Historically, members have paid for retrospective deposit adjustments and received retrospective refunds in annual rolling installments of up to eight years in duration. A change to the funding model was adopted in 2010 that fully implemented during fiscal year 2013-14 coverage period. The unpaid portion of all retrospective adjustments on coverage periods up to and including fiscal year 2009-10 have been consolidated into a single aggregate retrospective balance and temporarily deferred from payment. Payments resumed beginning July 1, 2014 for the Liability program and are schedule to resume July 1, 2015 for the Workers’ Compensation program. In proprietary funds, the amount owed of $13,028 is for the Worker’s Compensation portion.
Compensated absences
In proprietary funds, the liability for vested and unpaid compensated absences is reported in the fund as the benefits are vested and earned. The compensated absences accrued in the proprietary funds amounted to $309,415 at June 30, 2021. This amount is made up of accrued vacation, one third sick pay plus any amount over the maximum sick hours accrued, and any comp time earned. For further explanation see Note 1.
Note 7: NON-CITY OBLIGATIONS
The following bond issues are not reflected as City long-term debt because these debts are solely payable from and secured by specific revenue sources not related to the City as described in the official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Agency, the State of California or any political subdivision thereof, is pledged for payment of these bonds. The City is acting only as an agent.
Multifamily Housing Revenue Bonds Original Outstanding at Poplar Street Apartments Amount June 30, 2021
Series 2008 A 9,000,000 $ 1,005,000 $
Multifamily Housing Revenue Bonds Original Outstanding at Loma Linda Commons Project Amount June 30, 2021
Series 2009 A 13,275,000 $ 6,286,288.00 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-58-
Note 8: EMPLOYEE RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two rate plans (one miscellaneous and one safety). Benefit provisions under the Plan 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, at www.calpers.ca.gov.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.
The Plan’s provisions and benefits in effect during the year ended June 30, 2021 are summarized as follows:
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-59-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
A. General Information about the Pension Plan, Continued Benefits Provided, Continued
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2 % @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% Required employer contribution rates 11.031% 7.732%
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3 % @ 55 2.7 % @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-67
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% Required employer contribution rates 21.746% 13.044%
Miscellaneous
Safety
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2021 were $1,659,841. The actual employer payments of $4,556,920 made to CalPERS by the City during the measurement period ended June 30, 2020 differed from the City’s proportionate share of the employer’s contributions of $3,021,554 by $1,535,366, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-60-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CALPERS' membership data for all Funds (1) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvements 90% of scale MP 2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
Post Retirement Benefit Increase The lesser of contract COLA or 2.50% until purchasing power protection allowance floor on purchasing power
applies, 2.50% thereafter
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website at www.calpers.ca.gov.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-61-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability, Continued
Long-term Expected Rate of Return, Continued
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows.
Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the 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 expected real rates of return by asset class are as follows:
Asset Class1
New Strategic
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive - 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
2 An expected inflation of 2.0% used for this period
3 An expected inflation of 2.92% used for this period
1 In the System's ACFR, fixed income is included in global debt securities; liquidity is included in short-term investments; inflation assets are included in both global equity securities and global debt securities.
Change of Assumptions
The Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-62-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability, Continued
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting.
Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
C. Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.
Plan Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Plan Net Pension
Liability
(c ) = (a) - (b)
Balance at: 6/30/2019 (VD) 68,722,396 $ 60,215,546 $ 8,506,850 $ Balance at: 6/30/2020 (MD) 69,745,363 62,752,404 6,992,959 Net Changes during 2019-20 1,022,967 $ 2,536,858 $ (1,513,891) $ Increase(Decrease)
Valuation Date (VD), Measurement Date (MD).
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-63-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability, Continued The City’s proportionate share of the net pension liability for the total Plan as of June 30, 2019 and 2020 was as follows:
Proportionate Share - June 30, 2019 0.083018%
Proportionate Share - June 30, 2020 0.064271%
Change - Increase (Decrease) (0.018747%)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentagepoint lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate + 1%
(8.15%)
$ 6,992,959 16,368,862 $ (727,366) $
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual earnings
on pension plan investments
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all members that
are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-64-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability, Continued The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).
The EARSL for PERF C for the measurement period ending June 30, 2020 is 3.8 years, which was obtained by dividing the total service years of 548,581 (the sum of remaining service lifetimes of the active employees) by 145,663 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2019), the City’s net pension liability was $8,506,850. For the measurement period ending June 30, 2020 (the measurement date), the City incurred a pension expense of $3,387,929.
As of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions - $ 35,122 $
Differences Between Expected and
Actual Experience
Differences Between Projected and Actual
Investment Earnings
Differences between Employer's Contributions
and Proportionate Share of Contributions
Change in Employer's Proportion 40,689 4,752,872
Pension Contributions Made Subsequent
to the Measurement Date
$ 4,870,778 7,123,274 $
- 461,330
- 1,659,841
- 176,793
82,784 4,784,621
These amounts above are net of outflows and inflow recognized in the 2019-20 measurement period expense. Contributions subsequent to the measurement date of $1,659,841 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-65-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, Continued
Fiscal Year
Ended June 30:
Deferred
Outflows/(Inflows)
of Resources
2022 141,753 $
2023 262,438
2024 101,863
2025 86,601
2026 -
Thereafter -
$ 592,655
E. Payable to the Pension Plan
At June 30, 2021, the City reported a payable of $-0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description – The City provides other postemployment benefits (OPEB) an agent multiple employee plan, for all of its employee groups through the CalPERS’s California Employers’ Retiree Benefit Trust (CERBT) trust fund. The plan that covers all general and public safety retirees, spouses and eligible dependents. The Plan provides medical insurance benefits to eligible retirees and their spouses and dependents. The benefit provisions and all other requirements meet the definition of an other post-employment benefit plan (OPEB Plan) Employees covered – As of June 30, 2019 actuarial valuation (measurement date 6/30/2020), the following current and former employees were covered by the benefit terms under the OPEB Plan.
Active employees 86
Inactive employees or beneficiaries currently receiving benefits 18 Total 104
Contributions – The contribution requirements are established and amended by the City. The required contribution is based on projected pay-as-you-go financing requirements. Net OPEB obligation is expected to be liquidated by the General Fund and all the enterprise funds in the future periods.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-66-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Net OPEB Liability, Continued
Discount Rate 7.00%
Inflation 2.63% per year
Salary Increases 2.75% per year
Investment Rate of Return 7.00%
Mortality Rate (1) 2014 CalPERS Active Mortality for Miscellaneous Employees 2014 CalPERS Mortality for Active Safety Employees
Pre-Retirement Turnover Healthcare Trend Rate (2) 2009 CalPERS Rates for Miscellaneous Employees 2009 CalPERS Rates for Sworn Fire Employees
Actuarial Assumptions:
(1) The mortality assumptions are based on the 2014 CalPERS Active Mortality for Miscellaneous Employees table created by CalPERS. CalPERS periodically studies mortality for participating agencies and establishes mortality tables that are modified versions of commonly used tables. This table incorporates mortality projection as deemed appropriate based on CalPERS analysis.
(2) The turnover assumptions are based on the 2009 CalPERS Rates for Sworn Fire Employees table created by CalPERS.
CalPERS periodically studies the experience for participating agencies and establishes tables that are appropriate for each pool.
The long-term expected rate of return on OPEB plan investments was determined using a building–block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Real Return
Years 1-101
Real Return
Years 1-102
Global Equities 59% 4.80% 5.98%
Fixed Income 25% 1.10% 2.62%
Treasury Inflation-Protected Securities 5% 3.20% 5.00%
Real Estate Investment Trusts 8% 0.25% 1.46%
Commodities 3% 1.50% 2.87%
Total 100%
1 An expected inflation of 2.0% used for this period
2 An expected inflation of 2.92% used for this period
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-67-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Discount Rate
The discount rate used to measure the total OPEB liability was 7.00% percent. The projection of cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in the OPEB Liability
The changes in the net OPEB Liability for the OPEB Plan are as follows:
Total OPEB
Liability (a)
Plan Fiduciary
Net Position (b)
Net OPEB
Liability/(Asset)
(c)= (a) - (b)
Balance at June 30, 2020
(Valuation Date June 30, 2019) 838,523 $ 454,954 $ 383,569 $ Changes recognized for the measurement period:
Service Cost 23,526 - 23,526
Interest 58,442 16,215 42,227
Administrative expenses - (223) 223
Employer contributions to trust - 44,095 (44,095)
Experience (gains)/losses (30,790) - (30,790)
Net Changes 60,087 51,178 (8,909)
Balance at June 30, 2021
(Measurement Date June 30, 2020) 889,701 $ 515,041 $ 374,660 $ Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the net OPEB asset of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
Current
1% Decrease Discount Rate 1% Increase
6.00% 7.00% 8.00%
Net OPEB Liability 501,110 $ 374,660 $ 271,475 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-68-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Sensitivity of the Net OPEB Asset to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2020:
Current
1% Decrease Healthcare Cost Trend Rates 1% Increase
Net OPEB Liability 261,024 $ 374,660 $ 510,926 $
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
Net difference between projected and 5 years
actual earnings on OPEB plan
investments
All other amounts Expected average remaining service
lifetime (EARSL)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense (income) of $39,660. As of June 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected
and actual experience - $ 126,255 $
Net difference between projected and actual earnings on OPEB plan investments 16,705 1,656
Total 16,705 $ 127,911 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-69-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued The amount recognized in the deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as expense as follows:
Fiscal Year Ended
June 30:
Deferred
Outflows/(Inflows) of
Resources
2022 (9,149) $
2023 (9,149)
2024 (8,322)
2025 (9,315)
2026 (12,746)
Thereafter: (62,525)
$ (111,206)
Note 10: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Loma Linda is exposed to various risk of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters.
The City of Loma Linda is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
B. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-70-
Note 10: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION, Continued
B. Self-Insurance Programs of the Authority, Continued
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $40 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/coverage/risk-sharing-pools/.
Workers’ Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2020-21, the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-71-
Note 10: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION, Continued
C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Loma Linda participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Loma Linda. Coverage is on a claimsmade basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2018 through July 1, 2021. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.
Property Insurance
The City of Loma Linda participates in the all-risk property protection program of the Authority.
This insurance protection is underwritten by several insurance companies. City of Loma Linda property is currently insured according to a schedule of covered property submitted by the City of Loma Linda to the Authority. City of Loma Linda property currently has all-risk property insurance protection in the amount of $41,375,461. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City of Loma Linda purchases earthquake and flood insurance on a portion of its property.
The earthquake insurance is part of the property protection insurance program of the Authority.
City of Loma Linda property currently has earthquake protection in the amount of “Non Participant”. There is a deductible of 5% per unit of value with a minimum deductible of $100,000
Crime Insurance
The City of Loma Linda purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
Special Event Tenant User Liability Insurance
The City of Loma Linda further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Loma Linda according to a schedule. The City of Loma Linda then pays for the insurance. The insurance is facilitated by the Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-72-
Note 11: JOINTLY GOVERNED ORGANIZATIONS
A. San Bernardino International Airport Authority
The City is a member of the San Bernardino International Airport Authority (SBIAA), a joint powers authority of the County of San Bernardino and the Cities of Colton, Highland, Loma Linda and San Bernardino. The SBIAA was formed May 12, 1992 for the purpose of acquiring, operating, maintaining, repairing and administering the aviation related portions of the former Norton Air Base as a public airport.
The governing board consists of two elected officials from the City of San Bernardino and one elected official from each of the County of San Bernardino and the Cities of Colton, Highland and Loma Linda. Each member has one vote.
The City has no significant equity interest in the San Bernardino International Airport Authority, and accordingly neither assets nor liabilities have been recorded in the City’s basic financial statements.
A copy of the financial statements of the San Bernardino International Airport Authority can be obtained by contacting the SBIAA directly at 1601 E. Third Street, Suite 100, San Bernardino, California 92408, (909) 382-4100.
B. Inland Valley Development Agency
The City is a member of the Inland Valley Development Agency (IVDA), a joint powers authority of three cities and the County of San Bernardino.
The member agencies have the following number of board members:
City of San Bernardino 3
County of San Bernardino 2
City of Colton 2
City of Loma Linda 2
Each board member has one vote.
The IVDA was formed for the purpose of acquiring, owning, maintaining, leasing and operating the Norton Air Force Base property, and for the purpose of reusing and redeveloping the Norton Air Force Base, the adjacent property and the other properties in proximity thereto. As of June 30, 2021, the City has no significant equity interest in the IVDA, and accordingly neither assets nor liabilities have been recorded in the City’s basic financial statements.
A copy of the financial statements of the IVDA can be obtained by contacting the IVDA directly at 1601 E. Third Street, Suite 100, San Bernardino, California, 92408.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-73-
Note 12: JOINT VENTURES
A. San Bernardino/Colton/Loma Linda Joint Powers Financing Authority The Agency is a member of the San Bernardino/Colton/Loma Linda Joint Powers Financing Authority (Financing Authority), a joint powers authority of the Redevelopment Agencies of the Cities of San Bernardino, Colton, Loma Linda and the County of San Bernardino. The Financing Authority was formed September 30, 1991 for the purpose of issuing debt.
Tax Allocation Notes for $7,500,000 were issued November 1, 1991 and the proceeds were used to make a loan to the Inland Valley Development Agency (IVDA), of which the three cities and the County of San Bernardino are members. The loan was used to pay certain operating and redevelopment costs of the Inland Valley Redevelopment Project Area. Since 1991, the original obligation has been refunded twice and in 1997 expanded to incorporate monies for school district purposes. The total 1997 refunding was $44,485,000 of which 63% ($28,025,550) is applicable to IVDA.
These obligations are secured by loan repayments made by the IVDA to the Financing Authority. The obligation of the IVDA under the loan agreement will be payable from the IVDA’s tax revenues from the project area. In the event that such tax revenues are unavailable, the obligations are further secured by commitments from the member agencies in the following percentages:
Redevelopment Agency of the City of San Bernardino 92.08% Redevelopment Agency of the City of Colton 3.06%
Redevelopment Agency of the City of Loma Linda 4.86%
The governing board of the Financing Authority is composed of the Executive Directors of the City of Colton and the City of Loma Linda Redevelopment Agencies, the Agency Administrator of the Economic Development Agency of the City of San Bernardino and representatives of the County of San Bernardino.
Since the City is not directly liable for repayment of these bonds, they have not been reflected in the accompanying financial statements.
On October 13, 1999, the IVDA’s Board adopted a motion stating that the use of its cash balance is necessary to pay for scheduled debt service obligations and that suspension of further disbursements of 20% set-aside funds for affordable housing is necessary until further notice. At the end of fiscal year 2011-12, a receivable has been set-up reflecting the current Agency’s portion of tax increment set-aside revenues.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-74-
Note 12: JOINT VENTURES, Continued
B. CONFIRE Joint Powers Authority
The City is a member of the CONFIRE Joint Powers Authority, a regional fire agency of the Cities of Redlands, Colton, Rialto, Rancho Cucamonga, Loma Linda and the Central Valley Fire Protection District and the San Bernardino County Consolidated Fire Agency. The CONFIRE JPA was formed August 20, 1990 for the purpose of providing hardware, software, services and other items necessary and appropriate for the establishment, operation, and maintenance of a joint centralized public safety communications system and a cooperative program of fire related functions for the mutual benefit of the members of the CONFIRE JPA, to provide such services on a contract basis to other governmental units, and to provide a forum for discussion, study, development, and implementation of recommendations of mutual interest regarding public safety communications and related matters within member agencies.
The activities of the CONFIRE JPA are financed by a cost-sharing formula, which requires prorating among the participating members based on the demand percentage on the system by the members to be determined by the CONFIRE JPA Board of Director’s Administrative Committee and approved by their Board of Directors. In fiscal year 2021, the City of Loma Linda’s contribution totaled $295,456. The City has no other significant equity interest in CONFIRE JPA, and accordingly neither assets nor liabilities of CONFIRE JPA have been recorded in the City’s basic financial statements.
A copy of the financial statements of the CONFIRE JPA can be obtained by contacting the authority directly at 1743 W. Miro Way, Rialto, CA 92376-8630, (909) 356-2375.
Note 13: DEFICIT FUND BALANCES
At June 30, 2021, the following governmental funds had deficit fund balances:
Fund Type Deficit
Major funds:
Park Development Capital Projects (1,737,121) $
Nonmajor governmental funds:
Community Development Block Grant Special Revenue (67,079) Grant Fund Special Revenue (48,902)
Funds
Park Development – The Park Development has an accumulated deficit balance of $1,737,121 as a result from the purchase of open space property in the City’s South Hills with advances from other funds.
Community Development Block Grants – The Community Development Block Grant fund has a deficit of $67,079 which resulted from grant reimbursement not received prior to the end of the year, therefore declaring it and unavailable revenue.
Grant Fund – The Grant fund has a deficit balance of $48,902 which resulted from grant reimbursement not received prior to the end of the year, therefore declaring it and unavailable revenue.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-75-
Note 14: ENCUMBRANCES
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue, Capital Projects and Debt Service funds. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities for the current year.
Encumbrances outstanding as of June 30, 2021 are as follows:
General Fund 79,000 $
Special Projects Construction 681,595
Water Acquisition 69,582
Water Enterprise 136,500
Significant Encumbrances as of June 30, 2021
Note 15: COMMITMENTS AND CONTINGENCIES
Commitments
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City’s insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. As of June 30, 2021, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City.
Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City’s independent accountants in accordance with the provisions of the Uniform Guidance, and applicable State requirements. No cost disallowance is expected as a result of these audits; however, these programs are subject to further examination by the grantors. Expenditures which may be disallowed by the granting agencies cannot be determined at this time; however, the City management expects such amounts, if any, to be immaterial.
Covid-19 Considerations
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States caused business disruption through mandated and voluntary closings of businesses and shelter in place orders. The City’s major revenue sources could still be directly impacted by these events; it is possible that this matter could negatively impact the City. However, the ultimate financial impact and duration cannot be estimated at this time, and no adjustments have been made to these financial statements as a result of this contingency.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-76-
Note 16: SUCCESSOR AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Loma Linda that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provided that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012 the City Council of the City of Loma Linda elected to become the Successor Agency for the former Redevelopment Agency (RDA) in accordance with the Bill as part of City Resolution No. 2722. The activities of the Successor Agency are reported under a Private Purpose Trust Fund on the Fiduciary Funds Financial Statements of the City.
Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believed, in consultation with legal counsel, that the obligations of the former RDA due to the City were valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue was not a position of settled law and there was considerable legal uncertainty regarding this issue. In July of 2015, the City and the State reached a settlement agreement that recognized the action on May 8, 2012, of the Oversight Board for the Successor Agency to the Loma Linda Redevelopment Agency approving the re-entry of the 2011 Loan Agreement with certain modifications, including a reduction in the interest rate, revised payment schedule, and 15-year term.
In 2016, the Successor Agency received approval of its Long Range Property Management Plan, and upon reaching a settlement agreement with the State was issued a Finding of Completion.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
-77-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt
The bonded debt of the Successor Agency as of June 30, 2021 is as follows:
2016 Tax Allocation Refunding Bonds, Series A & B – Original Issue $33,710,000-Direct Borrowing
On November 10, 2016, the City issued $33,710,000 in Tax Allocation Refunding Bonds, Series A and B, for the purpose of refunding the 2003 Tax Allocation Refunding Bonds, 2005 A & B Taxable Tax Allocation Bonds and 2008 Taxable Housing Tax Allocation Bonds. The bonds mature annually each August 1, 2017 through 2030 in amounts ranging from $350,000 to $470,000. The bonds bear variable interest rates ranging from 1.500% to 5.000% and are payable semi-annually each February 1 and August 1, commencing February 1, 2017.
The current refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $31,996. The difference is reported in the accompanying Statement of Fiduciary Net Position as a deferred gain on refunding and is being amortized as a component of interest expense through August 1, 2030, using the straight line method of amortization. The City in effect reduced its aggregate debt service cash flow by $7,451,843 over the next 20 years. This resulted in an economic gain (difference between the present values of the debt service payments on the old debt and new debt) of $6,159,460.
The 2016 Bonds, and any additional Parity Debt, will be payable from Pledged Tax Revenues of the Successor Agency, and the pledge of Pledged Tax Revenues to the payment of the principal of and interest on the 2016 Bonds will, as applicable, be on a basis subordinate to payments required under Tax Sharing Agreements the payment for which have not been subordinated to the Bonds and the senior Statutory Pass-Through Amounts. If an event of default has occurred and is continuing, the Trustee, may and, if requested in writing by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding the Trustee shall declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately. Upon declaration of acceleration by Trustee, all sums in the funds and accounts established and held by the Trustee shall be applied in the following order: first to the payment of the fees, cost and expenses associated with the declaration of such event and second to the payment of the whole amount then owing and unpaid upon the Bonds for principal and interest.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
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Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt, Continued
2016 Tax Allocation Refunding Bonds, Series A & B – Original Issue $33,710,000, - Direct Borrowing, Continued
The annual requirements for the 2016 Tax Allocation Refunding Bonds, Series A and B outstanding at June 30, 2021 were as follows:
Year Ending
June 30, Principal Interest Total
2022 425,000 $ 171,375 $ 596,375 $
2023 435,000 156,300 591,300
2024 455,000 138,500 593,500
2025 470,000 120,000 590,000
2026 350,000 103,600 453,600
2027-2031 2,005,000 258,300 2,263,300
Total 4,140,000 $ 948,075 $ 5,088,075 $
2016 Successor Agency - Series A
Year Ending
June 30, Principal Interest Total
2022 1,845,000 $ 601,922 $ 2,446,922 $
2023 1,890,000 559,875 2,449,875
2024 1,930,000 513,306 2,443,306
2025 1,985,000 463,128 2,448,128
2026 2,180,000 407,100 2,587,100
2027-2031 11,255,000 957,165 12,212,165
Total 21,085,000 $ 3,502,496 $ 24,587,496 $
2016 Successor Agency - Series B
Loan Payable to the City of Loma Linda – Direct Borrowing On March 8, 2011, the City of Loma Linda (the City) entered into a cooperation agreement with the Redevelopment Agency of the City of Loma Linda (RDA), which set forth certain pre-existing indebtedness of the RDA to the City and provided a repayment schedule for such debts (“2011 Loan Agreement”). Between March and June 2011, the RDA remitted to the City payments totaling $2,273,000 pursuant to the 2011 Loan Agreement.
On May 8, 2012, the Oversight Board for the Successor Agency of the RDA approved the reentry of a modified version of the 2011 Loan Agreement.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
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Note 16: SUCCESSOR AGENCY, Continued
Loan Payable to the City of Loma Linda – Direct Borrowing, continued On January 15, 2013, the Successor Agency submitted to the California Department of Finance (Finance) the Other Funds and Accounts Due Diligence Review (OFA DDR). Finance determined that the $2,273,000 loan repayment was not made pursuant to an enforceable obligation and determined the funds were available to be returned to the taxing entities. On July 31, 2013, the City legally challenged Finance’s determination.
On July 31, 2015, the City of Loma Linda and the State of California signed a settlement agreement. The agreement recognized the 2011 re-entered agreement with an outstanding balance of $21,175,012, as of June 1, 2012, and accrued interest as enforcement obligations within the meaning of the Dissolution Law. Under the terms of the agreement, Finance shall recognize payments under the re-entered agreement including repayment of past due balances of $5,759,804, as of July 31, 2015, and approve payments via the ROPS process. Additionally, the settlement agreement addressed the $2,273,000 loan repayment previously deemed unauthorized by both Finance and the State Controller’s Office (SCO). Finance agreed to issue a revised OFA DDR determination letter reducing the OFA balance available for distribution to affected taxing entities by the loan repayment amount and the SCO agreed to issue a revised Asset Transfer Review Report authorizing the City to retain the loan repayment.
In August 2015, the Successor Agency, upon reaching a settlement agreement with the State, was issued a finding of completion. By December of the same year, the Successor Agency and the State’s Department of Finance approved the Long Range Property Management Plan. On September 12, 2017, the Oversight Board and City Council approved the sale of a property listed in the Long Range Property Management Plan. The property has not sold as of the issuance of these Financial Statements.
The following is a summary of the bonded debt activity of the Successor Agency as of June 30, 2021:
Beginning Ending Due within
TAX ALLOCATION BONDS Balance Additions Deletions Balance One Year 2016 Tax Allocation Refunding Bonds Series A 4,555,000 $ - $ (415,000) $ 4,140,000 $ 425,000 $ 2016 Tax Allocation Refunding Bonds Series B 22,905,000 - (1,820,000) 21,085,000 1,845,000 Unamortized bond premium 480,347 - (46,113) 434,234 -
Unamortized bond discount (495,414) - 47,561 (447,853) - Loan payable to the City of Loma Linda - direct borrowings 8,191,383 30,087 (1,639,148) 6,582,322 1,639,148 Total 35,636,316 $ 30,087 $ (3,872,700) $ 31,793,703 $ 3,909,148 $ The following amount was reported as deferred inflow of resources:
Balance Additions Deletions Balance One Year
Deferred inflows of resources:
Unamortized gain on refunding 23,807 $ - (2,286) $ 21,521 $ - $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
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Note 17: TAX ABATEMENTS
The City of Loma Linda (City) entered into an agreement with Loma Linda University Adventist Health Sciences Center dba Loma Linda University Health, hereinafter called “Medical Center”.
On June 21, 2016 the City approved Precise Plan of Design No. 15-128 for the construction of a new hospital building, with conditions of approval requiring that the Medical Center enter into a staffing support agreement to mitigate the additional needs for police and fire services created by the construction of the new hospital; and whereas, the Medical Center requires law enforcement and fire suppression services on an ongoing basis to encourage a safe environment for employees, patients and visitors. The City has the ability to provide such law enforcement services required by the Medical Center through the City’s contract with the San Bernardino County Sheriff’s Department and the City has the ability to provide such fire suppression services as required by the Medical Center through the City’s Fire Department.
This agreement is binding and in effect upon full execution and delivery by the City and Medical Center. The initial term of this agreement shall be 5 years commencing July 1, 2016 “Commencement Date” for law enforcement services, and January 1, 2017 for fire suppression services. This agreement will automatically renew for additional 5 year terms until terminated by the parties, upon the same terms and conditions, except that the payments by the Medical Center as set forth herein shall be adjusted to reflect current needs and the cost of providing services.
The City’s obligation is to provide the Medical Center with law enforcement services, including enhanced staffing through the City’s contract with the San Bernardino County Sheriff’s Department and provide the Medical Center with fire suppression services through the Loma Linda Fire Department, by enhancing current Fire Department staffing as reasonably appropriate to provide necessary fire suppression services. The City shall be responsible for all necessary equipment purchases.
The Medical Center’s obligation is to support the law enforcement services in the City by paying $923,285 each year for related expenses, with first payment due on July 15, 2016 and remaining payment due on the 5th of each month. Any changes in related expenses outlined in agreement will be billed quarterly.
The City shall credit the Medical Center, against any sums due under this agreement, for increases in the average of sales taxes generated by the Loma Linda Mercantile over and above the average taxes received by the City in calendar years 2013, 2014, and 2015. Such credits may be applied to the payments set forth herein or may be applied to augment the levels of services as agreed by the parties.
As of June 30, 2021, the City has accrued a liability due to the Medical Center in the amount of $1,298,708, for the excess sales tax, which is shown as Due to other Agency on the General Fund.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2021
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Note 18: NET POSITION
Net Investment in Capital Assets
Net position for governmental activities and business-type activities is classified as 1) net investments in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2021, was determined as follows:
Governmental
Activities
Capital assets, net of accumulated depreciation 52,880,007 $ Net investment in capital assets 52,880,007 $
Loma Linda Total
Water Sewer Connected Enterprise
Enterprise Capital Communities Funds
Capital assets, net of accumulated depreciation 33,848,998 $ 3,117,554 $ 4,131,370 $ 41,097,922 $ Less capital related debt balance:
Outstanding principal balance of 2016 Water Revenue Refunding Bond (4,710,000) - - (4,710,000) Outstanding unamortized bond premium balance (43,069) - - (43,069) Net investment in capital assets 29,095,929 $ 3,117,554 $ 4,131,370 $ 36,344,853 $ Business-type Activities
Note 19: Subsequent Event
On March 11, 2021, HR 1319, the American Rescue Plan Act of 2021 (ARPA), was signed into law. ARPA was designed to provide assistance to individuals, businesses and, state and local governments to assist in the economic recovery from the ongoing COVID-19 pandemic. The City was granted an allocation of $5,856,614, delivered in two tranches of $2,928,307 in July 2021 and July 2022. The qualified use of these funds includes public safety, infrastructure, and restoration of services to pre-pandemic levels.
Note 20: Prior Period Adjustment
As a result of GASB 84 implementation, as discussed in Note 1, beginning fiduciary net position has been restated as follows:
Custodial Funds
Net position, as previously reported - $
Prior period restatement (17)
Net position (deficit), as restated (17) $
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
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1. BUDGET AND BUDGETARY ACCOUNTING
A. General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end, all operating budget appropriations lapse.
B. Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgets were legally adopted for all governmental funds with the exception of the Traffic Congestion Relief Grant Fund and Asset Forfeiture Fund.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-84-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
C. Budgetary Comparison Schedule
The following is the budgetary comparison schedule for the General Fund.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 10,751,700 $ 11,357,300 $ 13,176,385 $ 1,819,085 $ Licenses and permits 666,400 748,900 639,968 (108,932)
Intergovernmental 18,700 286,500 406,838 120,338
Charges for services 3,464,400 3,987,300 3,852,711 (134,589) Use of money and property 560,400 379,700 398,218 18,518 Fines and forfeitures 7,200 5,000 4,498 (502)
Miscellaneous 3,215,100 3,799,100 3,889,902 90,802
Total revenues 20,563,800 18,683,900 22,368,520 1,804,720
EXPENDITURES
Current:
General government 2,302,400 2,379,981 2,288,702 91,279 Public safety 13,249,600 14,533,412 13,947,263 586,149
Community development 1,976,700 2,077,320 1,774,944 302,376 Public works 2,479,200 2,558,392 2,644,958 (86,566)
Capital outlay 113,800 122,300 73,924 48,376
Total expenditures 21,671,405 20,121,700 20,729,791 941,614 REVENUES OVER (UNDER) EXPENDITURES (1,107,605) (1,437,800) 1,638,729 2,746,334
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - - 25,710 25,710
Transfers in 681,800 997,800 977,004 (20,796)
Transfers out (107,000) (110,000) (120,456) (10,456)
Total other financing sources (uses) 887,800 574,800 882,258 (5,542) Net change in fund balance (219,805) (863,000) 2,520,987 2,740,792
FUND BALANCE
Beginning of year 10,083,862 10,083,862 10,083,862 -
End of year 9,220,862 $ 9,864,057 $ 12,604,849 $ 2,740,792 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-85-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
C. Budgetary Comparison Schedule, Continued
The following is the budgetary comparison schedule for the Loma Linda Housing Authority Fund.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 1,400 $ 1,400 $ 1,438 $ 38 $
Use of money and property 197,000 176,300 157,478 (18,822) Miscellaneous 1,500 800 6,135 5,335
Total revenues 178,500 199,900 165,051 (13,449)
EXPENDITURES
Current:
Community development 115,100 1,095,500 620,335 475,165 Capital outlay 50,300 50,300 - 50,300
Total expenditures 1,145,800 165,400 620,335 525,465
REVENUES OVER (UNDER) EXPENDITURES (967,300) 34,500 (455,284) 512,016
OTHER FINANCING SOURCES (USES)
Transfers out - - (146) (146)
Total other financing sources (uses) - - (146) (146)
Net change in fund balance (967,300) 34,500 (455,430) 511,870
FUND BALANCE
Beginning of year 17,390,340 17,390,340 17,390,340 -
End of year 17,424,840 $ 16,423,040 $ 16,934,910 $ 511,870 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-86-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
C. Budgetary Comparison Schedule, Continued
The following is the budgetary comparison schedule for the Regional Traffic Development Impact Fund.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 140,000 $ 48,800 $ 42,855 $ (5,945) $ Developer fees 1,119,800 1,024,200 3,417,452 2,393,252
Total revenues 1,073,000 1,259,800 3,460,307 2,387,307
Net change in fund balance 1,073,000 1,259,800 3,460,307 2,387,307
FUND BALANCE
Beginning of year 7,846,451 7,846,451 7,846,451 -
End of year 9,106,251 $ 8,919,451 $ 11,306,758 $ 2,387,307 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information For the year ended June 30, 2021 -87-
2. SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS – LAST TEN YEARS* Measurement Period 2017 2018 2019 2020
Total OPEB LiabilityService Cost $ 19,486 18,964 $ 20,022 $ 23,526 $ Interest on the Total OPEB Liability 56,269 59,253 62,267 58,442 Expected minus actual benefit payments* - - (23,320) -
Investment gains/(losses) - - (104,915) -
Benefit payments (35,165) (31,110) (13,410) (30,790)
Net change in Total OPEB Liability 43,574 44,123 (59,356) 51,178 Total OPEB Liability - beginning 854,305 810,182 897,879 838,523 Total OPEB Liability - ending (a) 897,879 854,305 838,523 889,701 Plan Fiduciary Net PositionEmployer contributions as benefits payments 120,160 35,165 23,320 16,215 Expected investment income 29,955 24,458 28,324 -
Investment Gains/Losses - 4,140 (4,955) -
Actual benefit payments from employer (31,110) (35,165) (23,320) - Administrative expense (156) (651) (81) (223)
Employer contributions to trust - - 54,000 44,095
Net change in Plan Fiduciary Net Position 27,947 118,849 77,288 60,087 Plan Fiduciary Net Position - beginning 349,719 230,870 377,666 454,954 Plan Fiduciary Net Position - ending (b) 377,666 349,719 454,954 515,041 Net OPEB Liability - ending (a) - (b) $ 520,213 504,586 $ 383,569 $ 374,660 $ Plan fiduciary net position as a percentage of the total OPEB liability 40.94% 42.06% 54.26% 57.89%Covered-employee payroll 5,508,005 $ 5,953,235 $ 6,292,694 $ 6,511,763 $ Net OPEB liability as a percentage of covered-employee payroll 9.16% 8.74% 6.10% 5.75%Notes to schedule:*Fiscal Year 2017-18 was the first year of implementation.*Historical information is required only for measurement period for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in this schedule.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-88-
3. SCHEDULE OF OPEB PLAN CONTRIBUTIONS – LAST TEN YEARS* Fiscal Year
Statutorily
required
contributions
Contributions in
relation to the
statutorily
required
contributions
Contribution
Deficiency
(Excess)
Coveredemployee payroll
Contributions as
a percentage of
coveredemployee payroll
2017-18 - $ - $ - $ 5,953,235 $ 0.00%
2018-19 30,680 (54,000) (23,320) 6,292,694 0.86%
2019-20 29,700 (44,095) (14,395) 6,511,763 0.68%
2020-21 32,698 - 32,698 6,551,541 0.00%
Notes to schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Inflation 2.63% per annum
Salary Increases
Investment Rate of Return 7.00%, net of OPEB plan investments expense, including inflation.
Retirement Age Retirement rates developed in the 2009 CalPERS Experiences Study.
Mortality
*Fiscal Year 2017-18 was the first year of implementation.
Valuation Date: Actuarially determined contribution rates are calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported. Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in this schedule.
2.75% per year, since benefits are not related to pay, this is used only to allocate the cost of benefits between service years
Mortality assumptions are based on the 2014 CalPERS Active Mortality for Miscellaneous and Safety Employees tables created by CalPERS. *Historically information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-89-
4. SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE PLAN'S NET PENSION
LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE LAST 10 YEARS*
Employer's
Proportionate
Share of the
Collective Net Pension's Plans
Employer's Employer's Pension Liability Fiduciary Net
Proportion of Proportion as a Percentage Position as a
the Collective Share of the of the Employer's Percentage of Net Pension Collective Net Employer's Covered the Total Liability
1 Pension Liability Covered Payroll Payroll Pension Liability 6/30/2014 0.17451% 10,859,039 $ 5,271,125 $ 206.01% 78.28% 6/30/2015 0.16141% 11,079,145 5,387,220 205.66% 78.45%
6/30/2016 0.16353% 14,150,367 5,502,314 257.17% 73.82%
6/30/2017 0.16386% 16,250,803 5,572,009 291.65% 72.89%
6/30/2018 0.16703% 16,095,049 6,017,238 267.48% 74.82%
6/30/2019 0.08302% 8,506,850 6,356,698 133.82% 87.62%
6/30/2020 0.06427% 6,992,958 6,562,966 106.55% 89.97%
Measurement
Date
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2021
-90-
5. SCHEDULE OF PENSION PLAN CONTRIBUTIONS
LAST 10 YEARS*
Contribution in
Relation to the Contributions as
Contractually Contractually Contribution a Percentage of Determined Determined Deficiency Employer's Covered
Contributions Contributions (Excess) Covered Payroll Payroll 2014-15 1,047,183 $ (1,047,183) $ - $ 5,387,220 $ 18.22% 2015-16 1,232,549 (1,232,549) - 5,502,314 22.88%
2016-17 1,374,037 (1,374,037) - 5,572,009 24.97%
2017-18 1,526,424 (1,526,424) - 6,017,238 25.37%
2018-19 1,779,590 (10,279,590) (8,500,000) 6,356,698 28.00% 2019-20 1,711,873 (4,556,920) (2,845,047) 6,562,966 26.08% 2020-21 1,659,841 (1,659,841) - 6,602,744 25.14%
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation.
Notes to Schedule:
Change in Benefit Terms: None
Fiscal Year
Changes in Assumptions: For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019.
In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. -91-
SUPPLEMENTARY INFORMATION
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MAJOR GOVERNMENTAL FUNDS BUDGETARY
COMPARISON SCHEDULES
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CITY OF LOMA LINDA
Special Projects Construction Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2021
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,115,400 $ 1,090,846 $ 1,091,533 $ 687 $ Total revenues 1,090,846 1,115,400 1,091,533 687
EXPENDITURES
Current:
Public works 633,700 633,700 445,800 187,900
Capital outlay 3,249,900 3,249,900 2,305,896 944,004
Debt service:
Principal retirement 39,000 39,000 38,979 21
Interest and fiscal charges 1,600 1,600 1,606 (6)
Total expenditures 3,924,200 3,924,200 2,792,281 1,131,919 REVENUES OVER (UNDER) EXPENDITURES (2,833,354) (2,808,800) (1,700,748) 1,132,606
OTHER FINANCING SOURCES (USES)
Transfers in - - 19,740 19,740
Total other financing sources (uses) - - 19,740 19,740
Net change in fund balance (2,833,354) (2,808,800) (1,681,008) 1,152,346
FUND BALANCE
Beginning of year 7,479,836 7,479,836 7,479,836 -
End of year 4,671,036 $ 4,646,482 $ 5,798,828 $ 1,152,346 $ Budgeted Amounts
CITY OF LOMA LINDA
Park Development Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2021
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 20,000 $ 8,200 $ 6,583 $ (1,617) $ Developer fees 2,294,600 1,742,400 624,889 (1,117,511)
Total revenues 1,750,600 2,314,600 631,472 (1,119,128)
EXPENDITURES
Current:
Community development 57,900 57,900 31,575 26,325
Capital outlay 280,500 280,500 156,973 123,527
Total expenditures 338,400 338,400 188,548 149,852
Net change in fund balance 1,412,200 1,976,200 442,924 (969,276) FUND BALANCE (Deficit)
Beginning of year (2,180,045) (2,180,045) (2,180,045) - End of year (203,845) $ (767,845) $ (1,737,121) $ (969,276) $ Budgeted Amounts
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NONMAJOR GOVERNMENTAL
FUNDS
COMBINING SCHEDULES
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Nonmajor Governmental Funds
Special Revenue Funds
The Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted for expenditures related to specific purposes.
Traffic Safety Fund – This fund is to account for monies received from parking control violation fines.
Gas Tax Fund – This fund is to account for monies received and expended from the state and county gas allocation.
CASp CERT & Training – This fund is used to collect and track a set fee included in each business license to be used for increased certified access specialist (CASp) training and certification within the City and to facilitate compliance with construction-related accessibility requirements. The fee was established by the state in the California Government Code 4467.
Measure I Fund – This fund is to account for monies received from the County of one-half of one percent of retail transactions and use tax.
Measure I MSART Fund – This fund is to track projects that fall under the Measure I Valley Major Arterial Street Program – Arterial Sub-Program. The funding is distributed by San Bernardino County Transportation Authority (SBCTA) when they do a Capital Project Needs Analysis (CPNA) and it is to be used on major street and arterial projects identified in the five year plan and that will serve the regional area.
Street Lighting District Fund – This fund is to account for monies received from property assessments restricted to fund district street lighting activities.
Landscape Maintenance District Fund – This fund is to account for monies received from property assessments restricted to fund district landscaping activities.
Air Quality Management District Fund – This fund is to account for monies received from AB2766 license fees.
Public Improvement Per MOU Fund – This fund is to manage the Stewart Street Pedestrian Bridge project. The funding will be received from Loma Linda University.
Asset Forfeiture Fund – This fund is to account for assets seized by law enforcement.
Community Development Block Grant Fund – This fund is to account for Federal grants received from the Department of Housing and Urban Development and expended in community development.
Grant Fund – This fund is to account for miscellaneous grants provided by Federal, State and County agencies such as the Code Enforcement Grant Program to purchase capital items related to Code Enforcement and California Healthy Cities to promote health and physical activity for Loma Linda residents.
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Nonmajor Governmental Funds
Special Revenue Funds, Continued
Citizens Option for Public Safety Fund – This fund is to account for AB3229 Public Safety Grant revenue received from the State and expended for front-line law enforcement.
Traffic Congestion Relief Grant Fund – This fund is to account for allocation from the state for street or road maintenance or reconstruction. The City is required to maintain existing commitment of general funds for street or roadwork in order to remain eligible for allocation of the specified funds.
*Note: this fund had no legally adopted budget in FY 2020-2021.
Development Agreement Consideration Fund – This fund is to account for the monies received from developers to produce, improve, or preserve affordable housing within Redevelopment Project Areas that meet the needs to those whose income is 80% of the county median or below.
Capital Projects Funds
The Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities by the City except for those financed by Proprietary Funds. The Capital Projects Funds account for the following projects:
Storm Drain Fund – This fund is to account for developer fees collected and expended for improving and expanding the storm drain system city-wide.
Traffic Impact Fund – This fund is to account for developer fees collected and expended for major traffic control devices necessitated by development.
Fire Facilities Fund – This fund is to account for developer fees collected and expended for major fire facilities and equipment necessitated by development.
General Facilities Fund – This fund is to account for developer fees collected and expended for major general facilities necessitated by development.
Federal/State Construction Fund – This fund is to account for miscellaneous grants provided by Federal, State and County agencies and expended for various street, park and recreation purposes.
Public Meeting Facilities Fund – This fund is to account for developer fees collected and expended for public meeting facilities as necessitated by development.
Public Library Facilities Fund – This fund is to account for developer fees collected and expended for public library facilities as necessitated by development.
Art in Public Places Fund – This fund is to account for developer fees collected and expended for art in public places as necessitated by development. -98-
Nonmajor Governmental Funds
Capital Projects Funds, Continued
Capital Projects Bond Proceeds Fund – This fund is used to track proceeds from bonds originally issued by the former Redevelopment agency and transferred to the City upon dissolution and after approval was received by the state Department of Finance for the construction of public works projects originally identified in the bond issuance.
Debt Service Funds
The Debt Service Funds account for the accumulation of resources and the payment of general long-term debt principal and interest of the City's related entities in the following funds:
Water Bond Redemption Fund – This fund is to account for the contribution from the Water Operations Fund and Water Acquisition Fund for the payment of principal and interest on Water Enterprise general obligation bonds issued to complete water system capital projects.
Assessment District 72-1 Fund – This fund is to account for the accumulation of funds for the payment of principal and interest on bonds issued in 1973, for sewer line improvements on Redlands Blvd.
Loma Linda Financing Authority Fund – This fund is used to jointly exercise powers of the City and Redevelopment Agency and to establish a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments.
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
-99-
Traffic Gas CASp Cert &
Safety Tax Training Measure I
ASSETS
Cash and investments - $ 124,545 $ 24,475 $ 280,965 $
Receivables:
Accounts - - 147 -
Taxes - 44,338 - -
Interest - - - 143
Contract and loans - - - -
Due from other funds - - - -
Due from other governments 7,688 - - 166,600
Total assets $ 168,883 7,688 $ 24,622 $ 447,708 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 72 $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - 72 -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - 24,550 -
Public safety - - - -
Street improvements 7,688 168,883 - 447,708
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 168,883 7,688 24,550 447,708
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 168,883 7,688 $ 24,622 $ 447,708 $ Special Revenue Funds
(Continued)
-100-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 198,327 182,018 $ 100,130 $ 25,177 $
- - - -
5,605 - 4,762 -
170 165 101 16
- - - -
- - 3,000 -
292 - - 8,146
$ 204,394 182,183 $ 107,993 $ 33,339 $
$ 68,179 - $ 32,457 $ 6,094 $
1,735 - 1,454 -
- - - -
- - - -
69,914 - 33,911 6,094
- - - -
- - - -
- - - -
- - - -
134,480 182,183 74,082 -
- - - -
- - - -
- - - 27,245
- - - -
- - - -
- - - -
134,480 182,183 74,082 27,245
$ 204,394 182,183 $ 107,993 $ 33,339 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
-101-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
ASSETS
Cash and investments 64,873 $ 2 $ 15,065 $ - $
Receivables:
Accounts - - - -
Taxes - - - -
Interest 48 - - -
Contract and loans - - - -
Due from other funds - - - -
Due from other governments - - 68,287 67,892
Total assets $ 2 64,921 $ 83,352 $ 67,892 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 50,749 $ 16,696 $
Accrued liabilities - - - -
Due to other funds - - 33,039 22,113
Unearned revenue - - - 10,093
Total liabilities - - 83,788 48,902
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - 66,643 67,892
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - 2 - -
Street improvements 64,921 - - -
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - (67,079) (48,902)
Total fund balances (deficit) 2 64,921 (67,079) (48,902)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 2 64,921 $ 83,352 $ 67,892 $ Special Revenue Funds
(Continued)
-102-
Citizens Option Traffic Development
for Public Congestion Agreement
Safety Fund Relief Grant Consideration
$ 1,738 360,565 $ 195,476 $ 1,573,356 $
- - - 147
- - - 54,705
1 308 148 1,100
- - 20,933 20,933
- - - 3,000
- - - 318,905
$ 1,739 360,873 $ 216,557 $ 1,972,146 $
$ - - $ - $ 174,247 $
- - - 3,189
- - - 55,152
- 360,864 - 370,957
- 360,864 - 603,545
- - - 134,535
- - - -
- - - 24,550
- 9 - 11
1,739 - - 1,081,684
- - - -
- - - -
- - - 27,245
- - - -
- - 216,557 216,557
- - - (115,981)
1,739 9 216,557 1,234,066
$ 1,739 360,873 $ 216,557 $ 1,972,146 $
Special Revenue Funds
Total Special
Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
-103-
Storm Traffic Fire General
Drain Impact Facilities Facilities
ASSETS
Cash and investments 1,112,252 $ 3,062,332 $ 1,571,327 $ 368,840 $ Receivables:
Accounts - - - -
Taxes - - - -
Interest 778 1,651 956 230
Contract and loans - - - -
Due from other funds - - - -
Due from other governments - - - -
Total assets $ 3,063,983 1,113,030 $ 1,572,283 $ 369,070 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - 4 $ - $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - 4 - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - - 1,572,283 -
Street improvements - 3,063,983 - -
Storm drains 1,113,026 - - -
Municipal facilities - - - 369,070
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 3,063,983 1,113,026 1,572,283 369,070
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 3,063,983 1,113,030 $ 1,572,283 $ 369,070 $ Capital Projects Funds
(Continued)
-104-
Public Public Art in
Federal/State Meeting Library Public
Construction Facilities Facilities Places
$ 653,079 48,689 $ 31,230 $ 295,434 $
- - - -
- - - -
481 36 23 218
- - - -
- 7,636 - -
- - - -
$ 653,560 56,361 $ 31,253 $ 295,652 $
$ - - $ - $ - $
- - - -
- - - -
- - - -
- - - -
- - - -
- - 31,253 295,652
- - - -
- - - -
- 56,361 - -
- - - -
653,560 - - -
- - - -
- - - -
- - - -
- - - -
653,560 56,361 31,253 295,652
$ 653,560 56,361 $ 31,253 $ 295,652 $
Capital Projects Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
-105-
Capital Projects Funds Total
Capital Capital Water Bond
Project Bond Projects Redemption Assessment
Proceeds Funds Fund District 72-1
ASSETS
Cash and investments 1,267,556 $ 8,410,739 $ 12,756 $ - $ Receivables:
Accounts - - - -
Taxes - - - -
Interest 1,186 5,559 - -
Contract and loans - - - -
Due from other funds - 7,636 - -
Due from other governments - - - -
Total assets $ 8,423,934 1,268,742 $ 12,756 $ - $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ 9,121 9,117 $ - $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 9,121 9,117 - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCE:
Restricted for:
Cultural and recreational - 326,905 - -
State mandated - - - -
Public safety - 1,572,283 - -
Street improvements 1,259,625 4,379,969 - -
Storm drains - 1,113,026 - -
Municipal facilities - 1,022,630 - -
Air quality management - - - -
Debt service - - 12,756 -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 8,414,813 1,259,625 12,756 -
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 8,423,934 1,268,742 $ 12,756 $ - $ Debt Service Fund
(Continued)
-106-
Debt Service Fund Total Total
Loma Linda Debt Nonmajor
Financing Service Governmental
Authority Funds Funds
$ 53,226 40,470 $ 10,037,321 $
- - 147
- - 54,705
30 30 6,689
- - 20,933
- - 10,636
- - 318,905
$ 53,256 40,500 $ 10,449,336 $
$ - - $ 183,368 $
- - 3,189
- - 55,152
- - 370,957
- - 612,666
- - 134,535
- - 326,905
- - 24,550
- - 1,572,294
- - 5,461,653
- - 1,113,026
- - 1,022,630
- - 27,245
53,256 40,500 53,256
- - 216,557
- - (115,981)
53,256 40,500 9,702,135
$ 53,256 40,500 $ 10,449,336 $
CITY OF LOMA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the year ended June 30, 2021
-107-
Traffic Gas CASp CERT &
Safety Tax Training Measure I
REVENUES
Taxes - $ - $ - $ 562,053 $
Intergovernmental - 1,012,434 - -
Charges for services - - 5,721 -
Use of money and property - - - 1,145
Fines and forfeitures 53,849 - - -
Miscellaneous - - - -
Developer fees - - - -
Total revenues 1,012,434 53,849 5,721 563,198
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - 123 -
Public works - - - -
Capital outlay - 390,848 - 344,824
Total expenditures 390,848 - 123 344,824
REVENUES OVER (UNDER) EXPENDITURES 621,586 53,849 5,598 218,374
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (48,985) (544,128) - -
Total other financing sources (uses) (544,128) (48,985) - - Net change in fund balances 77,458 4,864 5,598 218,374
FUND BALANCE (DEFICIT)
Beginning of year 2,824 91,425 18,952 229,334
End of year 7,688 $ 168,883 $ 24,550 $ 447,708 $
Special Revenue Funds
(Continued)
-108-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 358,681 - $ 415,106 $ - $
- - - 32,037
- - - -
865 995 272 126
- - - -
- - - -
- - - -
359,546 995 415,378 32,163
- - - -
- - - 37,862
- - 520,217 -
406,521 - - -
- 3,895 - -
406,521 3,895 520,217 37,862
(46,975) (2,900) (104,839) (5,699)
- - 110,000 -
(161) - (146) -
(161) - 109,854 -
(47,136) (2,900) 5,015 (5,699)
181,616 185,083 69,067 32,944
$ 134,480 182,183 $ 74,082 $ 27,245 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the year ended June 30, 2021
-109-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - 131,560 358,744
Charges for services - - - -
Use of money and property 339 - - -
Fines and forfeitures - - - -
Miscellaneous - - - -
Developer fees - - - -
Total revenues - 339 131,560 358,744
EXPENDITURES
Current:
General government - - - -
Public safety - - - 105,099
Community development - - 85,273 -
Public works - - - -
Capital outlay - - 112,682 -
Total expenditures - - 197,955 105,099
REVENUES OVER (UNDER) EXPENDITURES - 339 (66,395) 253,645
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - (286,842)
Total other financing sources (uses) - - - (286,842)
Net change in fund balances - 339 (66,395) (33,197)
FUND BALANCE (DEFICIT)
Beginning of year 64,582 2 (684) (15,705)
End of year $ 2 64,921 $ (67,079) $ (48,902) $
Special Revenue Funds
(Continued)
-110-
Citizens Option Traffic Development
for Public Congestion Agreement Total Special
Safety Fund Relief Fund Consideration Revenue Funds
$ - - $ - $ 1,335,840 $
- 96,031 - 1,630,806
- - - 5,721
9 1,825 1,884 7,460
- - - 53,849
- - - -
- - - -
9 97,856 1,884 3,033,676
- - - -
- - - 142,961
- - - 605,613
- - - 406,521
- - - 852,249
- - - 2,007,344
9 97,856 1,884 1,026,332
- - - 110,000
- (97,847) - (978,109)
- (97,847) - (868,109)
9 9 1,884 158,223
1,730 - 214,673 1,075,843
$ 1,739 9 $ 216,557 $ 1,234,066 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the year ended June 30, 2021
-111-
Storm Traffic Fire General
Drain Impact Facilities Facilities
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - - -
Charges for services 207,449 - - -
Use of money and property 5,038 9,275 5,839 1,423
Fines and forfeitures - - - -
Miscellaneous - - - -
Developer fees - 1,416,689 519,978 130,631
Total revenues 1,425,964 212,487 525,817 132,054
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works - 775 - 2,516
Capital outlay - 3,970 - 12,900
Total expenditures 4,745 - - 15,416
REVENUES OVER (UNDER) EXPENDITURES 1,421,219 212,487 525,817 116,638
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances 1,421,219 212,487 525,817 116,638
FUND BALANCE (DEFICIT)
Beginning of year 900,539 1,642,764 1,046,466 252,432
End of year 1,113,026 $ 3,063,983 $ 1,572,283 $ 369,070 $ Capital Projects Funds
(Continued)
-112-
Public Public Art in
Federal/State Meeting Library Public
Construction Facilities Facilities Places
$ - - $ - $ - $
- 606,816 - -
- - - -
3,014 258 164 1,654
- - - -
- 7,636 - -
135,390 - - 43,794
138,404 614,710 164 45,448
- - - -
- - - -
- - - -
- - - 13,254
- - - 67,982
- - - 81,236
138,404 614,710 164 (35,788)
- - - -
- - - -
- - - -
138,404 614,710 164 (35,788)
515,156 (558,349) 31,089 331,440
$ 653,560 56,361 $ 31,253 $ 295,652 $
Capital Projects Funds
CITY OF LOMA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the year ended June 30, 2021
-113-
Capital Projects Funds Total
Capital Capital Water Bond
Project Bond Projects Redemption Assessment
Proceeds Funds Fund District 72-1
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - 606,816 - -
Charges for services - 207,449 - -
Use of money and property 13,383 40,048 - -
Fines and forfeitures - - - -
Miscellaneous - 7,636 - -
Developer fees - 2,246,482 - -
Total revenues 3,108,431 13,383 - -
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works 186,219 202,764 - -
Capital outlay 954,972 1,039,824 - -
Total expenditures 1,242,588 1,141,191 - -
REVENUES OVER (UNDER) EXPENDITURES 1,865,843 (1,127,808) - -
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - (24,430) (67,141)
Total other financing sources (uses) - - (24,430) (67,141) Net change in fund balances 1,865,843 (1,127,808) (24,430) (67,141)
FUND BALANCE (DEFICIT)
Beginning of year 2,387,433 6,548,970 37,186 67,141
End of year 1,259,625 $ 8,414,813 $ 12,756 $ - $
Debt Service Fund
(Continued)
-114-
Debt Service Fund Total Total
Loma Linda Debt Nonmajor
Financing Service Governmental
Authority Funds Funds
$ - - $ 1,335,840 $
- - 2,237,622
- - 213,170
213 213 47,721
- - 53,849
- - 7,636
- - 2,246,482
213 213 6,142,320
315 315 315
- - 142,961
- - 605,613
- - 609,285
- - 1,892,073
315 315 3,250,247
(102) (102) 2,892,073
- - 110,000
(91,571) - (1,069,680)
(91,571) - (959,680)
(91,673) (102) 1,932,393
144,929 40,602 7,769,742
$ 53,256 40,500 $ 9,702,135 $
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-115-
NONMAJOR GOVERNMENTAL BUDGETARY
COMPARISON SCHEDULES
This page intentionally left blank
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Safety
For the year ended June 30, 2021
-116-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures 55,000 $ 42,000 $ 53,849 $ 11,849 $ Total revenues 42,000 55,000 53,849 11,849
OTHER FINANCING SOURCES (USES)
Transfers out (55,000) (42,000) (48,985) (6,985)
Total other financing sources (uses) (42,000) (55,000) (48,985) (6,985) Net change in fund balance - - 4,864 4,864
FUND BALANCE
Beginning of year 2,824 2,824 2,824 -
End of year $ 2,824 2,824 $ 7,688 $ 4,864 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Gas Tax
For the year ended June 30, 2021
-117-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 910,200 $ 1,004,500 $ 1,012,434 $ 7,934 $ Total revenues 1,004,500 910,200 1,012,434 7,934
EXPENDITURES
Capital outlay 450,000 450,000 390,848 59,152
Total expenditures 450,000 450,000 390,848 59,152
REVENUES OVER (UNDER) EXPENDITURES 554,500 460,200 621,586 67,086
OTHER FINANCING SOURCES (USES)
Transfers out (527,200) (570,200) (544,128) 26,072
Total other financing sources (uses) (570,200) (527,200) (544,128) 26,072 Net change in fund balance (15,700) (67,000) 77,458 93,158
FUND BALANCE
Beginning of year 91,425 91,425 91,425 -
End of year $ 75,725 24,425 $ 168,883 $ 93,158 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
CASp CERT & Training
For the year ended June 30, 2021
-118-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 7,400 $ 1,000 $ 5,721 $ 4,721 $
Use of money and property 100 - - -
Total revenues 1,000 7,500 5,721 4,721
EXPENDITURES
Current:
Community development - - 123 (123)
Total expenditures - - 123 (123)
Net change in fund balance 1,000 7,500 5,598 4,598
FUND BALANCE
Beginning of year 6,043 6,043 18,952 12,909
End of year $ 7,043 13,543 $ 24,550 $ 17,507 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I
For the year ended June 30, 2021
-119-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 355,100 $ 355,100 $ 562,053 $ 206,953 $
Use of money and property 6,000 1,100 1,145 45
Total revenues 356,200 361,100 563,198 206,998
EXPENDITURES
Capital outlay 350,000 350,000 344,824 5,176
Total expenditures 350,000 350,000 344,824 5,176
Net change in fund balance 6,200 11,100 218,374 212,174
FUND BALANCE
Beginning of year 229,334 229,334 229,334 -
End of year $ 235,534 240,434 $ 447,708 $ 212,174 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I MSART
For the year ended June 30, 2021
-120-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 960,800 $ 960,800 $ - $ (960,800) $
Use of money and property 3,500 1,000 995 (5)
Total revenues 961,800 964,300 995 (960,805)
EXPENDITURES
Capital outlay 612,000 612,000 3,895 608,105
Total expenditures 612,000 612,000 3,895 608,105
Net change in fund balance 349,800 352,300 (2,900) (352,700)
FUND BALANCE
Beginning of year 185,083 185,083 185,083 -
End of year $ 534,883 537,383 $ 182,183 $ (352,700) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Street Lighting District
For the year ended June 30, 2021
-121-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 353,000 $ 353,000 $ 358,681 $ 5,681 $
Use of money and property 3,500 700 865 165
Total revenues 353,700 356,500 359,546 5,846
EXPENDITURES
Current:
Public works 350,100 392,600 406,521 (13,921)
Capital outlay 300 300 - 300
Total expenditures 392,900 350,400 406,521 (13,621)
REVENUES OVER (UNDER) EXPENDITURES (39,200) 6,100 (46,975) (7,775)
OTHER FINANCING SOURCES (USES)
Transfers out - - (161) (161)
Total other financing sources (uses) - - (161) (161)
Net change in fund balance (39,200) 6,100 (47,136) (7,936)
FUND BALANCE
Beginning of year 181,616 181,616 181,616 -
End of year 187,716 $ 142,416 $ 134,480 $ (7,936) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Landscape Maintenance District
For the year ended June 30, 2021
-122-
Variance with
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 404,000 $ 404,000 $ 415,106 $ 11,106 $
Intergovernmental - 400 - (400)
Use of money and property - 200 272 72
Total revenues 404,600 404,000 415,378 10,778
EXPENDITURES
Current:
Community development 514,800 518,200 520,217 (2,017)
Capital outlay 300 300 - 300
Total expenditures 518,500 515,100 520,217 (1,717)
REVENUES OVER (UNDER) EXPENDITURES (113,900) (111,100) (104,839) 9,061
OTHER FINANCING SOURCES (USES)
Transfers in 107,000 110,000 110,000 -
Transfers out - - (146) (146)
Total other financing sources (uses) 110,000 107,000 109,854 (146) Net change in fund balance (3,900) (4,100) 5,015 8,915
FUND BALANCE
Beginning of year 69,067 69,067 69,067 -
End of year $ 65,167 64,967 $ 74,082 $ 8,915 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Air Quality Management District
For the year ended June 30, 2021
-123-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 30,000 $ 30,000 $ 32,037 $ 2,037 $
Use of money and property 400 100 126 26
Total revenues 30,100 30,400 32,163 2,063
EXPENDITURES
Current:
Public safety 52,500 52,500 37,862 14,638
Total expenditures 52,500 52,500 37,862 14,638
Net change in fund balance (22,400) (22,100) (5,699) 16,701
FUND BALANCE
Beginning of year 32,944 32,944 32,944 -
End of year $ 10,544 10,844 $ 27,245 $ 16,701 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Improvements Per MOU
For the year ended June 30, 2021
-124-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,200 $ 400 $ 339 $ (61) $
Total revenues 400 1,200 339 (61)
Net change in fund balance 400 1,200 339 (61)
FUND BALANCE
Beginning of year 64,582 64,582 64,582 -
End of year $ 64,982 65,782 $ 64,921 $ (61) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Community Development Block Grant
For the year ended June 30, 2021
-125-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 142,700 $ 242,900 $ 131,560 $ (111,340) $ Total revenues 242,900 142,700 131,560 (111,340)
EXPENDITURES
Current:
Community development 20,000 120,200 85,273 34,927
Capital outlay 122,700 122,700 112,682 10,018
Total expenditures 242,900 142,700 197,955 44,945
Net change in fund balance - - (66,395) (66,395)
FUND BALANCE (DEFICIT)
Beginning of year (684) (684) (684) -
End of year $ (684) (684) $ (67,079) $ (66,395) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Grant Fund
For the year ended June 30, 2021
-126-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 612,937 $ 358,744 $ (254,193) $
Total revenues 612,937 - 358,744 (254,193)
EXPENDITURES
Current:
Public safety - 331,500 105,099 226,401
Total expenditures 331,500 - 105,099 226,401
REVENUES OVER (UNDER) EXPENDITURES 281,437 - 253,645 (27,792)
OTHER FINANCING SOURCES (USES)
Transfers out - (281,437) (286,842) (5,405)
Total other financing sources (uses) (281,437) - (286,842) (5,405) Net change in fund balance - - (33,197) (33,197)
FUND BALANCE (DEFICIT)
Beginning of year (15,705) $ (15,705) $ (15,705) $ - $
End of year (15,705) $ (15,705) $ (48,902) $ (33,197) $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Citizens Option for Public Safety
For the year ended June 30, 2021
-127-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 104,200 $ 104,200 $ 96,031 $ (8,169) $ Use of money and property 5,000 2,000 1,825 (175)
Total revenues 106,200 109,200 97,856 (8,344)
EXPENDITURES
Current:
Public safety 4,600 4,600 - 4,600
Total expenditures 4,600 4,600 - 4,600
REVENUES OVER (UNDER) EXPENDITURES 101,600 104,600 97,856 (3,744)
OTHER FINANCING SOURCES (USES)
Transfers out (99,600) (99,600) (97,847) 1,753
Total other financing sources (uses) (99,600) (99,600) (97,847) 1,753 Net change in fund balance 2,000 5,000 9 (1,991)
FUND BALANCE (DEFICIT)
Beginning of year - - - -
End of year $ 2,000 5,000 $ 9 $ (1,991) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Development Agreement Consideration
For the year ended June 30, 2021
-128-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 3,000 $ 2,100 $ 1,884 $ (216) $ Total revenues 2,100 3,000 1,884 (216)
EXPENDITURES
Capital outlay 20,000 20,000 - 20,000
Total expenditures 20,000 20,000 - 20,000
Net change in fund balance (17,900) (17,000) 1,884 19,784
FUND BALANCE
Beginning of year 214,673 214,673 214,673 -
End of year $ 196,773 197,673 $ 216,557 $ 19,784 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Storm Drain
For the year ended June 30, 2021
-129-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 172,700 $ 191,500 $ 207,449 $ 15,949 $ Use of money and property 16,000 5,900 5,038 (862)
Total revenues 197,400 188,700 212,487 15,087
Net change in fund balance 197,400 188,700 212,487 15,087
FUND BALANCE
Beginning of year 900,539 900,539 900,539 -
End of year $ 1,097,939 1,089,239 $ 1,113,026 $ 15,087 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Impact
For the year ended June 30, 2021
-130-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 26,000 $ 10,600 $ 9,275 $ (1,325) $ Developer fees 587,000 547,400 1,416,689 869,289
Total revenues 558,000 613,000 1,425,964 867,964
EXPENDITURES
Current:
Public works 75,700 75,700 775 74,925
Capital outlay 388,000 388,000 3,970 384,030
Total expenditures 463,700 463,700 4,745 458,955
Net change in fund balance 94,300 149,300 1,421,219 1,326,919
FUND BALANCE
Beginning of year 1,642,764 1,642,764 1,642,764 -
End of year $ 1,737,064 1,792,064 $ 3,063,983 $ 1,326,919 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Fire Facilities
For the year ended June 30, 2021
-131-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 9,000 $ 6,800 $ 5,839 $ (961) $ Developer fees 116,400 142,800 519,978 377,178
Total revenues 149,600 125,400 525,817 376,217
Net change in fund balance 149,600 125,400 525,817 376,217
FUND BALANCE
Beginning of year 1,046,466 1,046,466 1,046,466 -
End of year 1,171,866 $ 1,196,066 $ 1,572,283 $ 376,217 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
General Facilities
For the year ended June 30, 2021
-132-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 2,900 $ 1,500 $ 1,423 $ (77) $ Developer fees 137,400 123,600 130,631 7,031
Total revenues 125,100 140,300 132,054 6,954
EXPENDITURES
Current:
Public works 9,800 9,800 2,516 7,284
Capital outlay 50,000 50,000 12,900 37,100
Total expenditures 59,800 59,800 15,416 44,384
Net change in fund balance 65,300 80,500 116,638 51,338
FUND BALANCE
Beginning of year 252,432 252,432 252,432 -
End of year 332,932 $ 317,732 $ 369,070 $ 51,338 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Federal/State Construction
For the year ended June 30, 2021
-133-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 606,900 $ 606,816 $ (84) $
Use of money and property - 400 258 (142)
Miscellaneous - - 7,636 7,636
Total revenues 607,300 - 614,710 7,410
Net change in fund balance 607,300 - 614,710 7,410
FUND BALANCE (DEFICIT)
Beginning of year (558,349) (558,349) (558,349) -
End of year $ 48,951 (558,349) $ 56,361 $ 7,410 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Meeting Facilities
For the year ended June 30, 2021
-134-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 9,000 $ 3,300 $ 3,014 $ (286) $ Developer fees 338,500 340,000 135,390 (204,610)
Total revenues 343,300 347,500 138,404 (204,896)
Net change in fund balance 343,300 347,500 138,404 (204,896)
FUND BALANCE
Beginning of year 515,156 515,156 515,156 -
End of year 862,656 $ 858,456 $ 653,560 $ (204,896) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Library Facilities
For the year ended June 30, 2021
-135-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 400 $ 200 $ 164 $ (36) $
Total revenues 200 400 164 (36)
Net change in fund balance 200 400 164 (36)
FUND BALANCE
Beginning of year 31,089 31,089 31,089 -
End of year 31,489 $ 31,289 $ 31,253 $ (36) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Art in Public Places
For the year ended June 30, 2021
-136-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 3,500 $ 1,800 $ 1,654 $ (146) $ Developer fees 108,000 68,900 43,794 (25,106)
Total revenues 70,700 111,500 45,448 (25,252)
EXPENDITURES
Current:
Public works 19,500 19,500 13,254 6,246
Capital outlay 100,000 100,000 67,982 32,018
Total expenditures 119,500 119,500 81,236 38,264
Net change in fund balance (48,800) (8,000) (35,788) 13,012
FUND BALANCE
Beginning of year 331,440 331,440 331,440 -
End of year 323,440 $ 282,640 $ 295,652 $ 13,012 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Capital Projects Bond Proceeds
For the year ended June 30, 2021
-137-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 50,000 $ 15,400 $ 13,383 $ (2,017) $ Total revenues 15,400 50,000 13,383 (2,017)
EXPENDITURES
Current:
Public works 193,100 193,100 186,219 6,881
Capital outlay 990,000 1,026,700 954,972 71,728
Total expenditures 1,219,800 1,183,100 1,141,191 78,609 Net change in fund balance (1,204,400) (1,133,100) (1,127,808) 76,592
FUND BALANCE
Beginning of year 2,387,433 2,387,433 2,387,433 -
End of year 1,254,333 $ 1,183,033 $ 1,259,625 $ 76,592 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Water Bond Redemption
For the year ended June 30, 2021
-138-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 400 $ - $ - $ - $
Total revenues - 400 - -
OTHER FINANCING SOURCES (USES)
Transfers out - - (24,430) (24,430)
Total other financing sources (uses) - - (24,430) (24,430) Net change in fund balance - 400 (24,430) (24,430)
FUND BALANCE
Beginning of year 37,186 37,186 37,186 -
End of year $ 37,186 37,586 $ 12,756 $ (24,430) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Assessment District 72-1
For the year ended June 30, 2021
-139-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,000 $ - $ - $ - $
Total revenues - 1,000 - -
OTHER FINANCING SOURCES (USES)
Transfers out - - (67,141) (67,141)
Total other financing sources (uses) - - (67,141) (67,141) Net change in fund balance - 1,000 (67,141) (67,141)
FUND BALANCE
Beginning of year 67,141 67,141 67,141 -
End of year $ 67,141 68,141 $ - $ (67,141) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Loma Linda Financing Authority
For the year ended June 30, 2021
-140-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 600 $ 200 $ 213 $ 13 $
Total revenues 200 600 213 13
EXPENDITURES
Current:
General government - - 315 (315)
Total expenditures - - 315 (315)
Net change in fund balance 200 600 (102) (302)
FUND BALANCE
Beginning of year 40,602 40,602 40,602 -
End of year $ 40,802 41,202 $ 40,500 $ (302) $
Budgeted Amounts
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-141-
FIDUCIARY FUNDS
CUSTODIAL FUNDS COMBINING SCHEDULE
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CITY OF LOMA LINDA
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2021
-142-
Custodial Funds include Association Fire Equipment Fund and Customer Deposits Fund.
Association Fire
Equipment Customer Deposits
Total Custodial
Funds
ASSETS
Cash and investments 18,725 $ 79,645 $ 98,370 $
Total assets 79,645 18,725 98,370
LIABILITIES
Accounts payable 124 1,500 1,624
Deposits payable - 78,145 78,145
Total liabilities 79,645 124 79,769
NET POSITION (DEFICIT)
Deficiency in net position held in trust 18,601 $ - $ 18,601 $
CITY OF LOMA LINDA
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2021
-143-
Association Fire
Equipment Customer Deposits
Total Custodial
Funds
ADDITIONS
Miscellaneous 18,618 $ - $ 18,618 $
Total additions - 18,618 18,618
Change in net position - 18,618 18,618
NET POSITION (DEFICIT):
Beginning of year, as restated (17) - (17)
End of year 18,601 $ - $ 18,601 $
-144-
STATISTICAL SECTION
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-145-
Contents Page
Financial Trends 146
Revenue Capacity 152
Debt Capacity 165
Demographic and Economic Information 171
Operating Information 174
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
STATISTICAL SECTION
This part of the City of Loma Linda's Comprehensive Annual Financial 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.
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
CITY OF LOMA LINDA
Net Position by Component
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-146-
Fiscal Year 2012 2013 2014 2015
Governmental activities
Net investment in capital assets $ 49,923,947 49,487,378 $ 53,642,388 $ 55,885,140 $ Restricted 28,038,083 29,617,713 29,305,083 27,181,403
Unrestricted 4,777,504 814,941 2,258,815 (6,245,613)
Total governmental activities net position 82,302,965 $ 80,356,601 $ 85,206,286 $ 76,820,930 $ Business-type activities
Net investment in capital assets $ 39,756,680 23,001,645 $ 38,186,940 $ 37,347,912 $ Restricted 40,839 40,839 40,839 40,840
Unrestricted (8,290,772) (9,127,686) (9,816,996) (13,846,636) Total business-type activities net position 14,751,712 $ 30,669,833 $ 28,410,783 $ 23,542,116 $ Primary government
Net investment in capital assets $ 89,680,627 72,489,023 $ 91,829,328 $ 93,233,052 $ Restricted 28,078,922 29,658,552 29,345,922 27,222,243
Unrestricted (3,513,268) (8,312,745) (7,558,181) (20,092,249) Total primary government net position 97,054,677 $ 111,026,434 $ 113,617,069 $ 100,363,046 $ Source: City of Loma Linda Finance Department
(Continued)
-147-
2016 2017 2018 2019 2020 2021
$ 54,669,551 54,701,694 $ 53,645,346 $ 53,363,136 $ 52,098,547 $ 52,880,007 $ 34,485,340 41,158,883 40,009,123 40,255,257 41,042,155 43,834,062 15,833,197 10,216,095 11,961,248 13,949,530 16,553,951 13,896,322 $ 104,988,088 106,076,672 $ 105,615,717 $ 107,567,923 $ 109,694,653 $ 110,610,391 $ $ 35,575,964 36,315,946 $ 35,053,848 $ 35,191,938 $ 35,564,416 $ 36,344,853 $ 760,313 41,054 684,561 396,401 681,788 682,253
(7,140,329) (6,145,456) (7,304,285) (8,176,541) (8,564,601) (8,688,855) $ 29,195,948 30,211,544 $ 28,434,124 $ 27,411,798 $ 27,681,603 $ 28,338,251 $ $ 90,245,515 91,017,640 $ 88,699,194 $ 88,555,074 $ 87,662,963 $ 89,224,860 $ 35,245,653 41,199,937 40,693,684 40,651,658 41,723,943 44,516,315 8,692,868 4,070,639 4,656,963 5,772,989 7,989,350 5,207,467 $ 134,184,036 136,288,216 $ 134,049,841 $ 134,979,721 $ 137,376,256 $ 138,948,642 $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-148-
Fiscal Year 2012 2013 2014 2015
Expenses
Governmental activities:
General government 3,371,844 $ 1,770,611 $ 1,818,573 $ 3,387,169 $ Public safety 9,042,727 8,747,342 8,430,753 8,772,658
Community development 2,007,651 1,944,724 1,948,836 2,278,470 Public works 4,156,836 4,488,436 5,451,342 3,948,235
Interest on long-term debt 1,474,252 246,905 180,289 128,956 Total governmental activities expenses 20,053,310 17,198,018 17,829,793 18,515,488 Business-type activities:
Water acquisition 221,075 152,932 - 32,458
Water enterprise 5,474,845 6,113,936 6,414,771 6,529,987 Sewer capital 3,969,359 4,420,067 4,135,446 4,128,121
Loma Linda Connected Communities 1,046,444 981,448 923,887 1,183,177 Total business-type activities expenses 10,711,723 11,668,383 11,474,104 11,873,743 Total primary government expenses 30,765,033 $ 28,866,401 $ 29,303,897 $ 30,389,231 $ Program Revenues
Governmental activities:
Charges for services:
General Government 2,181,892 $ 2,265,114 $ 2,017,576 $ 2,230,122 $ Public Safety 611,087 601,899 566,346 576,908
Community development 571,252 1,538,226 2,598,727 1,247,138 Public works 2,146,378 1,728,971 1,729,660 1,523,530
Operating contributions and grants 287,260 244,822 238,064 227,592 Capital contributions and grants 855,530 1,633,410 5,425,257 1,276,451 8,012,442 6,653,399 12,575,630 7,081,741
Business-type activities:
Charges for services:
Water acquisition 27,254 132,044 60,113 249,351
Water enterprise 4,721,866 4,734,114 4,813,653 4,970,004 Sewer capital 3,388,248 3,592,431 3,457,741 3,843,936
Loma Linda Connected Communities 275,905 287,944 414,429 399,978 Capital Grants and Contributions 185,000 18,249,598 - - 26,996,131 8,598,273 8,745,936 9,463,269
Total primary government revenues 15,251,672 $ 35,008,573 $ 21,321,566 $ 16,545,010 $ Net (expense)/revenue
Governmental activities (13,399,911) $ (9,185,576) $ (5,254,163) $ (11,433,747) $ Business-type activities (2,113,450) 15,327,748 (2,728,168) (2,410,474) $ 6,142,172 (15,513,361) $ (7,982,331) $ (13,844,221) $ Total governmental activities program revenues
Total business-type activities program revenues
Total primary government net (expense)/revenue
Source: City of Loma Linda Finance Department
(Continued)
-149-
2016 2017 2018 2019 2020 2021
$ 4,183,558 3,671,993 $ 3,446,226 $ 6,425,416 $ 4,655,547 $ 2,432,363 $ 11,026,804 9,304,542 12,531,692 13,454,286 13,132,883 15,816,365 2,390,338 1,841,405 2,530,022 2,309,000 3,646,694 3,405,290 4,411,533 4,676,124 6,231,901 7,202,335 7,191,106 6,691,119 6,053 (12,257) - 7,778 3,148 1,606
22,018,286 19,481,807 24,739,841 29,398,815 28,629,378 28,346,743 231,003 47,594 142,488 651,998 163,718 34,407
5,956,326 5,697,329 6,581,432 7,334,056 7,321,257 7,451,276 4,237,844 4,100,045 4,484,711 4,655,471 4,780,642 4,848,037 1,056,877 1,118,342 1,082,358 981,077 1,075,479 998,596 11,482,050 10,963,310 12,290,989 13,622,602 13,341,096 13,332,316 $ 33,500,336 30,445,117 $ 37,030,830 $ 43,021,417 $ 41,970,474 $ 41,679,059 $ $ 2,411,391 1,914,239 $ 2,601,912 $ 3,237,396 $ 2,947,216 $ 3,309,689 $ 2,072,189 982,772 2,542,110 2,701,403 2,326,787 3,395,794 703,820 7,689,602 1,311,497 3,102,051 3,465,549 1,707,289 1,318,224 1,329,226 1,561,965 1,820,291 1,782,676 6,684,409 918,093 675,510 772,551 2,552,498 664,307 1,611,907
349,723 1,321,811 151,081 1,308,805 1,510,791 520,806
7,773,440 13,913,160 8,941,116 14,722,444 12,697,326 17,229,894 124,489 506,018 392,278 643,278 1,141,226 521,151
4,910,137 4,570,660 5,620,078 5,745,814 6,076,134 6,908,052 4,187,465 3,853,476 4,675,647 5,021,365 5,327,464 5,565,852 389,793 362,285 317,575 326,992 359,079 342,360
- - - - - -
9,611,884 9,292,439 11,005,578 11,737,449 12,903,903 13,337,415 $ 17,385,324 23,205,599 $ 19,946,694 $ 26,459,893 $ 25,601,229 $ 30,567,309 $ $ (14,244,846) (5,568,647) $ (15,798,725) $ (14,676,371) $ (15,932,052) $ (11,116,849) $ (1,870,166) (1,670,871) (1,285,411) (1,885,153) (437,193) 5,099 $ (16,115,012) (7,239,518) $ (17,084,136) $ (16,561,524) $ (16,369,245) $ (11,111,750) $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting) (Continued)
-150-
Fiscal Year 2012 2013 2014 2015
General Revenues and Other Changes in
Net Position
Government activities:
Taxes
Property taxes 5,774,870 $ 2,205,347 $ 2,391,993 $ 2,424,066 $ Sales taxes 4,040,073 3,864,216 3,733,160 5,721,938
Franchise tax 756,527 778,424 811,238 848,712
Other taxes 641,707 734,611 871,103 831,258
Motor vehicle in lieu 1,648,468 1,661,319 1,688,439 -
Intergovernmental - - 213,852 2,205,319
Transfers - - - -
Total taxes and transfers 12,861,645 9,243,917 9,709,785 12,031,293 Investment income 936,266 208,226 227,033 503,598
Capital contribution - - 89,413 -
Miscellaneous 652,079 60,069 139,192 36,389
Gain (Loss) on sale of capital assets - - - -
Gain (Loss) on land held for resale - - - -
Total governmental activities 14,449,990 9,512,212 10,165,423 12,571,280 Business-type activities:
Investment income 12,986 11,789 8,608 7,932
Capital contribution - - (89,413) -
Miscellaneous 602,448 578,584 589,923 650,590
Transfers - - - -
Gain (Loss) on sale of capital assets - - - -
Total business-type activities 615,434 590,373 509,118 658,522 Total primary government 15,065,424 $ 10,102,585 $ 10,674,541 $ 13,229,802 $ Extraordinary Item (Dissolution of Redevelopment Agency) Governmental activities 18,071,167 $ - $ - $ - $
Business-type activities (7,531,946) - - -
Total primary government 10,539,221 $ - $ - $ - $
Change in Net Position
Governmental activities 19,121,246 $ 326,636 $ 4,911,260 $ 1,137,533 $ Business-type activities (9,029,962) 15,918,121 (2,219,050) (1,751,952) Total primary government 10,091,284 $ 16,244,757 $ 2,692,210 $ (614,419) $ Source: City of Loma Linda Finance Department
(Continued)
-151-
2016 2017 2018 2019 2020 2021
$ 2,193,323 2,119,528 $ 2,489,895 $ 2,787,070 $ 3,086,116 $ 3,043,003 $ 6,692,095 7,575,743 8,692,611 7,700,848 9,008,051 3,673,588 886,502 852,859 960,660 961,693 990,531 1,060,786
1,116,979 1,065,353 882,677 1,003,817 850,823 922,825
- - - 2,293,699 2,433,722 2,504,220
1,987,145 1,258,590 2,197,430 - - -
(290,619) - (84,916) 4,799 9,305 (83,538)
12,585,425 12,872,073 15,138,357 14,751,926 16,378,548 11,120,884 487,762 610,671 970,488 1,290,647 1,472,804 658,011
- - - - - -
8,523 26,759 210,983 555,160 196,705 227,982
74,552 - 426,863 30,844 10,725 25,710
- - - - - -
13,156,262 13,509,503 16,746,691 16,628,577 18,058,782 12,032,587 86,522 128,012 167,515 271,702 208,279 62,642
- - - - - -
477,429 680,341 458,106 595,149 508,024 501,164
290,619 - 84,916 (4,799) (9,305) 83,538
20,062 - 775 - 4,205
854,570 808,353 730,599 862,827 706,998 651,549
$ 14,010,832 14,317,856 $ 17,477,290 $ 17,491,404 $ 18,765,780 $ 12,684,136 $ $ - 21,314,886 $ - $ - $ - $ - $
- 7,531,946 - - - -
$ - 28,846,832 $ - $ - $ - $ - $
$ (1,088,584) 29,255,742 $ 947,966 $ 1,952,206 $ 2,126,730 $ 915,738 $ (1,015,596) 6,669,428 (554,812) (1,022,326) 269,805 656,648 $ (2,104,180) 35,925,170 $ 393,154 $ 929,880 $ 2,396,535 $ 1,572,386 $ This page intentionally left blank
CITY OF LOMA LINDA
Governmental Activities Tax and Assessments Revenues by Source Last Ten (10) Fiscal Years (modified accrual basis of accounting) -152-
Fiscal Property Sales & Use Franchise Transfer Transient Business Misc.
Year Taxes Tax Fees Tax Tax License Taxes Assessments Total 2012 5,190,613 $ 4,382,549 $ 756,527 $ 31,919 $ 52,938 $ 236,453 $ 9,841 $ 727,518 $ 11,388,358 $ 2013 1,420,706 4,203,905 778,424 42,622 33,676 349,911 11,335 742,019 7,582,598 2014 3,294,218 4,083,824 811,238 40,926 39,262 368,358 25,236 735,329 9,398,391 2015 3,432,704 6,097,691 848,712 47,546 49,442 390,291 25,449 732,770 11,624,605 2016 3,155,172 7,967,387 852,859 98,258 271,443 385,533 26,316 732,970 13,489,938 2017 3,390,512 7,105,414 886,501 39,340 347,981 345,257 21,463 739,575 12,876,043 2018 3,866,981 7,969,204 960,660 70,346 464,980 406,853 23,755 737,087 14,499,866 2019 1,978,818 8,389,129 961,693 65,828 670,867 321,975 2,293,698 * 753,400 15,435,408 2020 2,224,740 5,681,899 990,532 112,203 530,943 308,457 2,433,722 760,596 13,043,092 2021 2,135,818 7,034,866 1,060,786 145,433 622,280 235,034 2,504,220 773,788 14,512,225 Includes General, Special Revenue, Debt Service and Capital Projects Funds. *Includes Vehicle License Fee-In Excess and VLF-Property Taxes In Lieu Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-153-
Fiscal year 2012 2013 2014 2015 2016
General Fund
Non Spendable:
Inventories 22,355 $ 22,630 $ 22,934 $ 18,966 $ 12,299 $ Prepaid items 432,648 1,319 764 8,569 619,657
Restricted for:
- - - - -
General government 5,317 2,232 15,768 18,872 -
Committted for:
Emergency contingency 3,500,000 3,500,000 3,500,000 3,500,000 5,500,000 Assigned for:
Refuse services 83,658 87,941 91,540 95,832 97,690
Fire equipment replacement 70,779 78,102 88,812 270,040 104,144 Sewer loan - - - - -
Capital equipment replacement 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Unassigned 3,703,420 5,071,179 5,836,876 6,827,235 5,868,335 Total general fund 9,068,177 $ 10,049,146 $ 10,806,694 $ 11,989,514 $ 13,452,125 $ All other governmental funds
Non Spendable:
Prepaid items 9,913 $ 20 $ - $ 40,672 $ 1,259 $
Restricted for:
Cultural and recreational 362,256 284,673 304,711 332,436 345,310 State mandated - - - - -
Public safety 337,819 369,068 442,199 452,514 672,745
Street improvements 5,736,844 5,561,625 5,156,456 4,295,300 15,919,327 Storm drains 740,443 749,230 757,919 771,018 792,052
Municipal facilities 273,249 336,519 271,092 195,306 204,971 Air quality management 66,244 73,431 80,988 86,456 63,454 General government 1,563,163 - - - -
Debt service 1,220,343 1,207,017 1,205,057 137,614 136,148 Low/mod hosing programs 17,873,700 17,856,279 17,956,592 17,810,779 17,933,640 Unassigned (3,277,365) (4,693,591) (5,475,010) (6,363,912) (2,635,280) Total all other governmental funds 24,906,609 $ 21,744,271 $ 20,700,004 $ 17,758,183 $ 33,433,626 $ State Mandated
Source: City of Loma Linda Finance Department
Note1: Implementation of GASB 54 changed the classifications of fund balance. Prior year audits were not reissued therefore comparative data is not available prior to fiscal year 2011 (Continued)
-154-
2017 2018 2019 2020 2021
$ 14,944 10,933 $ 9,298 $ 20,290 $ 18,268 $
3,261 19,063 1,577 2,816 1,763
5,848 - 6,399 - -
- - - - -
5,500,000 5,500,000 2,000,000 2,000,000 2,000,000
99,033 91,540 103,035 135,495 167,204
224,776 88,812 272,593 282,099 365,170
- - - 422,673 424,303
1,250,000 1,250,000 1,250,000 1,250,000 1,250,000
6,664,717 5,836,876 7,720,336 5,970,489 8,378,141
$ 15,762,579 12,797,224 $ 11,363,238 $ 10,083,862 $ 12,604,849 $ $ 20 1,036 $ - $ - $ - $
375,309 370,928 447,552 362,529 326,905
- - - 18,952 24,550
735,937 701,990 818,020 1,046,468 1,572,294
19,814,982 14,596,849 19,684,580 20,182,145 22,567,239
847,125 801,366 797,517 900,539 1,113,026
165,984 133,774 378,816 767,588 1,022,630
27,763 47,451 25,952 32,944 27,245
- - - - -
139,030 137,112 142,206 144,929 53,256
17,903,020 17,695,044 17,960,614 17,605,013 17,151,467
(3,534,374) (2,935,592) (2,186,552) (2,754,783) (1,853,102) $ 36,474,796 31,549,958 $ 38,068,705 $ 38,306,324 $ 42,005,510 $
CITY OF LOMA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-155-
Fiscal Year 2012 2013 2014 2015
Revenues
Taxes 11,388,358 $ 7,582,598 $ 9,398,391 $ 11,624,605 $ Licenses and permits 1,345,307 318,636 532,046 629,954
Intergovernmental revenues 1,680,953 2,539,554 900,263 961,314 Charges for services 5,344,456 1,653,891 1,921,614 1,789,325 Use of money and property 660,304 624,686 468,283 451,109 Fines, forfeitures, and penalties 980 179,157 166,014 154,642 Contributions - - - -
Miscellaneous 3,411,401 3,479,196 6,976,393 2,811,345
Developer fees 308,677 1,127,775 814,556 518,956
Total Revenues 24,140,436 17,505,493 21,177,560 18,941,250 Expenditures
General government 2,756,072 1,010,432 1,269,463 2,816,532 Public safety 8,249,467 8,333,007 8,372,894 8,494,523
Community development 1,618,015 1,635,429 1,834,266 1,997,868 Public works 2,696,647 2,225,653 2,338,243 2,235,090
Capital outlay 1,521,014 3,137,662 6,668,468 3,024,351
Debt service
Principal retirement 2,080,400 883,220 914,378 1,905,590 Interest and fiscal charges 2,571,604 207,619 164,563 132,266 Total Expenditures 21,493,219 17,433,022 21,562,275 20,606,220 Excess of revenues
over (under) expenditures 2,647,217 72,471 (384,715) (1,664,970) Other Financing Sources (Uses)
Capital leases - - - -
Bond proceeds - - - -
Premium on bonds - - - -
Discount on bonds - - - -
Gain on disposal of assets 315,539 19,160 97,996 20,000 Loss of disposal of assets - - - (114,031)
Transfers in 3,541,336 2,366,876 2,438,425 2,218,439
Transfers out (3,541,336) (2,366,876) (2,438,425) (2,218,439) Total Other Financing Sources (Uses) 315,539 19,160 97,996 (94,031) Net Change in Fund Balances Before Extraordinary Item 2,962,756 91,631 (286,719) (1,759,001) Extraordinary Item* (20,591,520) - - -
Net Change in Fund Balances (17,628,764) $ 91,631 $ (286,719) $ (1,759,001) $ Debt Service as a percentage of
non-capital expenditures 22.9% 7.1% 6.4% 11.4%
*Extraordinary item did not apply to prior years.
Source: City of Loma Linda Finance Department
(Continued)
-156-
2016 2017 2018 2019 2020 2021
$ 12,876,043 13,489,938 $ 14,499,866 $ 15,435,408 $ 13,043,092 $ 14,512,225 $ 398,756 478,522 463,878 495,979 858,993 639,968
994,225 1,516,208 888,521 3,669,009 1,632,833 2,644,460 3,153,168 1,848,851 3,563,490 4,053,022 4,006,691 4,067,319 757,656 508,805 2,820,221 2,412,446 2,322,671 1,744,388 129,123 142,437 115,205 472,114 79,897 58,347
- - - - - -
2,353,757 2,625,326 2,848,072 3,681,395 2,869,489 3,903,673 188,523 7,092,505 735,690 2,182,962 2,476,701 6,288,823 20,851,251 27,702,592 25,934,943 32,402,335 27,290,367 33,859,203 3,831,946 3,057,584 2,870,793 6,595,193 3,778,105 2,289,017 11,005,886 9,522,944 12,153,050 17,476,968 13,294,924 14,090,224 2,279,446 1,725,470 2,372,587 2,411,105 3,173,643 3,032,467 2,659,712 2,789,413 2,821,934 3,233,008 3,386,611 3,700,043 2,606,365 1,033,346 3,410,812 5,486,524 4,678,287 4,428,866 33,165 31,853 34,532 35,955 37,436 38,979
7,419 28,855 6,053 4,630 3,148 1,606
22,423,939 18,189,465 23,669,761 35,243,383 28,352,154 27,581,202 (1,572,688) 9,513,127 2,265,182 (2,841,048) (1,061,787) 6,278,001 - - - - - -
- - - - - -
- - - - - -
- - - - - -
74,552 56,415 567,549 30,844 10,725 25,710
- - - - - -
834,210 829,833 743,146 771,153 771,715 1,106,744
(1,124,829) (829,833) (828,062) (766,354) (762,410) (1,190,282) (216,067) 56,415 482,633 35,643 20,030 (57,828)
(1,788,755) 9,569,542 2,747,815 (2,805,405) (1,041,757) 6,220,173 - 7,568,512 - - - -
$ (1,788,755) 17,138,054 $ 2,747,815 $ (2,805,405) $ (1,041,757) $ 6,220,173 $
0.4% 0.2% 0.2% 0.1% 0.2% 0.2%
CITY OF LOMA LINDA
General Fund Tax Revenues by Source Last Ten (10) Fiscal Years (modified accrual basis of accounting) -157-
Fiscal Sales & Use Property Franchise Transfer Transient Business Misc.
Year Tax Taxes Fees Tax Tax License Taxes Total
2012 4,040,073 $ 1,016,418 $ 756,527 $ 31,919 $ 52,938 $ 236,453 $ 9,840 $ 6,144,168 $ 2013 3,864,216 1,420,706 778,424 42,622 33,676 349,911 11,335 6,500,890 2014 3,733,160 3,294,217 811,238 40,926 39,262 368,358 25,236 8,312,397 2015 5,721,938 3,432,704 848,712 47,546 49,442 390,291 25,450 10,516,083 2016 7,575,743 3,155,172 852,858 98,258 271,443 385,533 26,316 12,365,323 2017 6,692,094 3,390,512 886,501 39,340 347,981 345,257 21,463 11,723,148 2018 7,283,292 3,866,981 960,660 70,346 464,980 406,853 23,755 13,076,867 2019 7,972,459 1,978,818 961,693 65,828 670,867 321,975 2,293,698 14,265,338 2020 5,192,468 2,224,740 990,532 112,203 530,943 308,457 2,433,722 11,793,065 2021 6,472,814 2,135,818 1,060,786 145,433 622,280 235,034 2,504,220 13,176,385 Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2021
-158-
Business Name Business Category
ABI Document Support Services Business Services
ACH Supply Plumbing/Electrical Supplies
Anixter Electrical Equipment
Arco AM PM Service Stations
Bear Oil Union 76 Service Stations
Chevron Service Stations
Clarks Nutritional Center Food Store Non-Grocery
GE Precision Healthcare Medical /Biotech
Hirsch Pipe & Supply Plumbing/Electrical Supplies
Honda Lease Trust Auto Lease
Hyundai Inland Empire New Motor Vehicle Dealers
Hyundai Lease Titling Trust Auto Lease
Loma Linda Mercantile Medical/Biotech
Loma Linda Optical Department Government/Social Org.
Loma Linda University Medical Center Medical/Biotech
Macquarie Equipment Finance Llc Business Services
Mansfield Oil Petroleum Prod/Equipment
McDonalds
Mountain View Shell Service Stations
Mustang Mechanical Office Euipment
Quaid Harley Davidson Boats/Motorcycles
Spreen Honda New Motor Vehicle Dealers
Spreen Mazda New Motor Vehicle Dealers
Stater Bros Grocery Stores
Walmart Neighborhood Market Grocery Stores
Percent of Fiscal Year Total Paid By Top 25 Accounts=93.49% For Fiscal year 2020-2021
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller’s Office, The HDL Companies
CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2021 (Continued)
-159-
Business Name Business Category
ACH Supply Plumbing/ Electrical Supplies
Anixter Electrical Equipment
Arco AM PM Services Stations
Bakers Burgers Quick Services Restaurants
Bear Oil Union 76 Services Stations
Carls Jr Quick Services Restaurants
Chervon Services Stations
Clarks Nutritional Center Food Stores Non-Grocery
Del Taco Quick Services Restaurants
Enterprise Rent A Car Transportation/Rentals
Farmers Boys Fast-Casual Restaurants
Hometown Buffet Casual Dining
Honda Lease Trust Auto Lease
Hyundai Inland Empire New Motor Vehicle Dealers
KD Sales Plumbing Supplies Plumbing/Electrical Supplies Loma Linda Foundation Government/Social Org.
Loma Linda Mercantile Medical/Biotech
Loma Linda Optical Department Government/Social Org.
Loam Linda University Medical Center Medical/Biotech
Party Rentals Specialty Stores
Quaid Harley Davidson Boats/Motorcycles
Rite Aid Drug Store
Spreen Honda New Motor Vehicle Dealers
Stater Bros Grocery Stores
Tech Edge Learning Electronics/Appliance Stores
Percent of Fiscal Year Total Paid By Top 25 Accounts=94.84% For Fiscal Year 2011-2012
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller’s Office, The HDL Companies
CITY OF LOMA LINDA
Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) As of June 30, 2021 -160-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Food Stores 11,224 $ 11,969 $ 12,244 $ 14,974 $ 17,040 $ 17,761 $ 18,016 $ 17,835 $ 17,672 $ 20,833 $ Eating and Drinking Places 18,360 19,454 21,575 23,684 27,887 27,559 29,054 28,868 29,513 24,916 Auto Dealers and Supplies 90,713 101,046 97,189 101,129 112,499 122,391 132,069 135,623 123,557 112,882 Other Retail Stores 67,517 65,793 65,540 68,307 72,844 68,605 71,709 76,991 73,048 59,736 All Other Outlets 197,423 190,592 177,631 354,140 400,130 394,144 433,870 611,789 678,554 596,536 Total 385,237 $ 388,854 $ 374,179 $ 562,234 $ 630,400 $ 630,460 $ 684,718 $ 871,106 $ 922,344 $ 814,903 $ Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller’s Office, The HDL Companies.
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City’s revenue.
CITY OF LOMA LINDA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten (10) Fiscal Years -161-
Calendar Estimated Total Assessed
Year Actual Less: Total Direct Value as a
Ended Residential Commercial Personal Taxable Tax Exempt Assessed Tax Percentage of December 31 Property Property Property Value Real Property Value Rate Actual Value 2012 2,105,355,263 $ 267,171,958 $ 235,765,375 $ 2,608,292,596 $ 1,023,319,642 $ 1,584,972,954 $ 0.5155 100% 2013 2,195,002,151 271,001,950 216,780,215 2,682,784,316 1,096,986,069 1,585,798,247 0.5192 100% 2014 2,064,942,248 276,960,178 222,628,537 2,564,530,963 950,702,460 1,613,828,503 0.1179 100% 2015 2,252,005,169 285,082,390 214,346,968 2,751,434,527 1,031,386,807 1,720,047,720 0.11792 100% 2016 2,284,323,332 301,381,457 201,361,852 2,787,066,641 992,101,567 1,794,965,074 0.11792 100% 2017 2,524,081,086 315,569,495 185,755,818 3,025,406,399 1,125,518,308 1,899,888,091 0.11792 100% 2018 2,508,932,634 472,423,651 175,451,570 3,156,807,855 1,045,584,674 2,111,223,181 0.11792 100% 2019 2,589,707,118 532,970,508 179,267,027 3,301,944,653 1,089,669,098 2,212,275,555 0.11805 100% 2020 3,425,695,384 562,919,839 165,495,439 4,154,110,662 1,813,629,588 2,340,481,074 0.11805 100% 2021 3,287,130,835 575,033,799 160,597,887 4,022,762,521 1,595,301,621 2,427,488,376 0.11804 100% Real Property
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Direct and Overlapping Property Tax Rates
(Rate per $100 of Taxable Value)
Last Ten (10) Fiscal Years
-162-
San Bernardino San Bernardino Total RDA Total
Fiscal Basic Debt Colton Redlands Community Tax Incremental Direct Year Levy Service Unified Unified College Water Rate Rate 1 Rate 2 2012 1.0000 0.00000 0.14030 0.05820 0.03730 0.16500 1.40080 1.16500 0.51553 2013 1.0000 0.00000 0.14880 0.06410 0.04590 0.16250 1.42130 0.00000 0.51917 2014 1.0000 0.00000 0.11870 0.06290 0.04190 0.16250 1.38600 0.00000 0.11793 2015 1.0000 0.00000 0.09730 0.05940 0.03930 0.16250 1.35850 0.00000 0.11792 2016 1.0000 0.00000 0.11690 0.05670 0.04030 0.16250 1.37640 0.00000 0.11792 2017 1.0000 0.00000 0.14540 0.05240 0.03500 0.16250 1.39530 0.00000 0.11792 2018 1.0000 0.00000 0.09390 0.04940 0.03760 0.15250 1.33340 0.00000 0.11792 2019 1.0000 0.00000 0.11160 0.03240 0.04070 0.15250 1.33720 0.00000 0.11805 2020 1.0000 0.00000 0.10160 0.03390 0.05620 0.14250 1.33420 0.00000 0.11805 2021 1.0000 0.00000 0.10310 0.03600 0.06510 0.14250 1.34670 0.00000 0.11804 Schools
Sources: HdL Coren & Cone, San Bernardino County Assessor combined tax rolls.
Note: In 1978 California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This
1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
1 RDA rate is based on the largest RDA tax rate area and includes only the rate(s) from indebtedness adopted prior to 1989 per California State Statute. RDA Direct and Overlapping rates are applied only to the incremental property values.
2 Total Direct Rate is the weighted average of all individual direct rates.
CITY OF LOMA LINDA
Principal Property Taxpayers
As of June 30, 2021
-163-
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Taxpayer Valuation Rank Assessed Value Valuation Rank Assessed Value Wi Loma Linda LLC 137,738,131 $ 1 5.67%
Timber Hills Associates LP2 58,612,729 2 2.41% 49,824,743 $ 1 3.14% Loma Linda University/Medical Center1 3 2.25% 35,222,908 54,583,534 3 2.22% Loma Linda Heritage Associates 30,299,475 4 1.25% 25,864,386 4 1.63% Sierra Vista Apartments SPE 28,684,453 5 1.18%
Oasis Townhomes LLC 28,101,446 6 1.16% 23,988,091 5 1.51% DRC Industrial CBC 21,293,098 7 0.88%
Chancellor Properties LLC2 8 0.87% 21,013,034
Spreen Investments 16,880,965 9 0.70%
Blossom Grove California LLC 14,736,773 10 0.61%
General American Life Insurance Company 35,927,985 2 2.27% Granite Lakes Apartments LP 6 1.45% 23,042,382
Health Care Reit INC 7 0.76% 11,977,542
Lewis Investment Company 8 0.66% 10,434,203
Monterey Pines LLC 9 0.64% 10,136,933
Loma of California Health Center LLC 9,771,015 10 0.62% $ 16.9800% 236,190,188 411,943,638 $ 14.90%
2021 2012
Note: The amounts shown above includes assessed value data for both the City and the Redevelopment Agency. 1 Loma Linda University is a learning institution; therefore, a large portion of their property is exempt. 2 Pending Appeals on Parcels
Source: The HdL Companies, San Bernardino County Assessor Combined Tax Rolls
CITY OF LOMA LINDA
Property Tax Levies and Collections
Last Ten (10) Calendar Years
-164-
Fiscal Year Total Tax Current Percent of Collections
Ended Levy for Tax Current Taxes in Subsequent Percentage June 30 Fiscal Year Collections Collected Years Amount of Levy 2012 983,808 $ 941,122 $ 95.7% 37,639 $ 978,761 $ 99.5% 2013 989,037 944,831 95.5% 43,406 988,237 99.9%
2014 1,015,851 987,067 97.2% 54,072 1,041,138 102.5%
2015 1,038,813 1,012,206 97.4% 37,627 1,049,833 101.1%
2016 1,082,685 1,054,765 97.4% 23,844 1,078,609 99.6%
2017 1,139,995 1,114,742 97.8% 34,711 1,149,453 100.8%
2018 1,176,099 1,155,795 98.3% 29,809 1,185,604 100.8%
2019 1,244,859 1,218,949 97.9% 8,227 1,227,176 98.6%
2020 1,274,242 1,246,785 97.8% - 1,246,785 97.8%
2021 1,241,788 1,301,268 104.8% - 1,301,268 104.8%
Collected within the
Fiscal Year of the Levy Total Collections to Date
Source: San Bernardino County Auditor-Controller Property Tax Division Note: In FY 2012, penalties started to be excluded from amounts collected in subsequent years.
Collection in subsequent years may include delinquent tax payments from multiple prior years which are not identified separately by the County of San Bernardino. Limitations exist within the County's tax system which impede the ability to identify prior tax year delinquent payments by assessment year.
CITY OF LOMA LINDA
Ratios of Outstanding Debt By Type Last Ten (10) Fiscal Years -165-
Tax General Total Percentage
Fiscal Capital Loans Allocation Revenue Obligation Capital Water Primary of Personal Per Year Leases Payable Bonds Bonds Bonds Leases Bonds Government Income Capita1 2012 300,113 $ - $ - $ 3,547,617 $ 20,000 $ - $ 6,605,000 $ 10,472,730 $ N/A 448 $ 2013 271,894 - - 2,728,360 10,000 - 6,255,000 9,265,254 1.28% 395 2014 242,515 - - 1,879,100 10,000 - 5,885,000 8,016,615 1.10% 339 2015 211,922 - - 2,052 10,000 - 5,490,000 5,713,974 0.80% 241 2016 180,072 - - - 10,000 - 5,075,000 5,265,072 0.71% 214 2017 146,907 - - - 10,000 - 5,669,428 5,826,335 0.81% 238 2018 112,375 - - - 10,000 - 5,421,588 5,543,963 0.80% 232 2019 76,420 - - - 10,000 - 5,203,748 5,290,168 0.76% 217 2020 38,984 - - - 10,000 - 4,980,908 5,029,892 1% 205
2021 - - - - 10,000 - 4,753,069 4,763,069 1% 191
Governmental Activities Business-Type Activities
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. As a result of the dissolution of the redevelopment agency in 2012, the outstanding $39,885,000 indebtedness of the former redevelopment agency was transferred to the successor agency and refinanced in November 2016.
1 See the Schedule of Demographic and Economic Statistics for personal income and population.
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Ratios of General Bonded Debt Outstanding
Last Ten (10) Fiscal Years
-166-
Less: amounts Percentage of
General Available in Debt Estimated
Fiscal Obligation Service Actual Taxable Per
Year Bonds Fund Total Value of Property1 Capita2
2012 20,000 $ - $ 20,000 $ 0.001% 86%
2013 10,000 - 10,000 0.000% 43%
2014 10,000 - 10,000 0.000% 42%
2015 10,000 - 10,000 0.000% 42%
2016 10,000 - 10,000 0.000% 41%
2017 10,000 - 10,000 0.000% 41%
2018 10,000 - 10,000 0.000% 42%
2019 10,000 - 10,000 0.000% 41%
2020 10,000 - 10,000 0.000% 41%
2021 10,000 - 10,000 0.000% 41%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for the property value data.
2 Population data can be found in the schedule of Demographic and Economic Statistics.
Source: City of Loma Linda Finance Department
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CITY OF LOMA LINDA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2021
-167-
2020-2021 Assessed Valuation 2,427,460,900 $
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/21 Applicable (1) Debt 6/30/21 San Bernardino Valley Joint Community College District 727,578,368 $ 3.043% 22,140,210 $ Colton Joint Unified School District 203,682,661 0.806% 1,641,682 Colton Joint Unified School District Community Facilities District No.2 3,510,000 26.425% 927,518 Redlands Unified School District 63,768,512 12.206% 7,783,585 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 32,492,995 $ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Bernardino County General Fund Obligations 214,095,000 $ 0.970% 2,076,722 $ San Bernardino Country Pension Obligations 180,825,585 0.970% 1,754,008 San Bernardino County Flood Control District General Fund Obligations 51,360,000 0.970% 498,192 Colton Joint Unified School District Certificates of Participation 0 0.000% 0 Redlands Unified School District Certificates of Participation 0 0.000% 0 City of Loma Linda Capital Lease 0 0.000% 0
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 4,328,922 $ OVERLAPPING TAX INCREMENT DEBT: 250,810,000 $ 3.999-100% 34,246,144 $ TOTAL DIRECT DEBT 0
TOTAL OVERLAPPING OBLIGATION DEBT 71,068,061
COMBINED TOTAL DEBT $ 71,068,061
Ratios to 2020-21 Assessed Valuation:
Total Overlapping Debt (excluding tax increment)…….…………………… 1.34% Total Direct Debt…………….………………………………………………… 0.00%
Combined Total Debt (excluding tax increment)…………………………… 2.93% Ratios to Redevelopment Incremental Valuation ($1,354,380,916):
Total Overlapping Tax Increment Debt…………………………………….. 2.53% (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. 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, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics and City of Loma Linda Finance Department
CITY OF LOMA LINDA
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
-168-
2012 2013 2014 2015 2016
Debt Limit 60,087,454 $ 60,098,744 $ 61,135,079 $ 65,100,609 $ 67,899,250 $ Total net debt applicable to limit 33,799,049 89,011,770 87,512,815 84,255,561 80,940,806 Legal debt margin 26,288,405 $ (28,913,026) $ (26,377,736) $ (19,154,952) $ (13,041,556) $ Total net debt applicable to the limit
as a percentage of debt limit 56.25% 148.11% 143.15% 129.42% 119.21% Source: California Municipal Statistics, San Bernardino County Auditor-Controller Property Tax Division Note:
California Government Code, Section 43605 sets the debt limit at 15%. The code section was enacted when assessed values were based on 25% of full market value. This has since changed to 100% of full market value.
Thus, the limit shown is 3.75% (one-fourth the limit of 15%). (Continued)
-169-
2016 2017 2018 2019 2020 2021
$ 71,833,863 67,899,250 $ 79,766,211 $ 83,537,933 $ 88,334,356 $ 91,585,287 $ 79,042,798 80,940,806 76,408,050 70,956,788 75,904,018 71,068,061 $ (7,208,935) (13,041,556) $ 3,358,161 $ 12,581,145 $ 12,430,338 $ 20,517,226 $ 119.21% 110.04% 95.79% 84.94% 85.93% 77.60%
Net Assessed Value 2,427,460,900
Plus Exempt Property 14,813,422
Total Assessed Value 2,442,274,322 $
Debt Limit: 3.75 percent of Total
Assessed Value 91,585,287
Debt applicable to Limitation:
Net Combined applicable to Limitation 71,068,061
Total Debt applicable to Limitation 71,068,061
Legal Debt Margin 20,517,226 $
CITY OF LOMA LINDA
Pledged Revenue Coverage Last Ten (10) Fiscal Years
-170-
Operating Net Revenue
Fiscal Gross Expenses Available for Debt Service
Year Revenues Less Depreciation Debt Service Requirements Coverage 2012 5,327,611 $ 4,530,412 $ 797,199 $ 345,130 $ 231%
2013 5,295,335 4,638,354 656,981 361,610 182%
2014 5,398,735 4,636,285 762,450 377,350 202%
2015 5,577,533 5,106,716 470,817 399,439 118%
2016 5,174,327 4,292,900 881,427 423,447 208%
2017 5,375,596 4,383,707 991,889 - ** 0%
2018 6,184,047 5,018,743 1,165,304 376,856 ** 309%
2019 6,335,700 5,756,149 579,551 375,493 154%
2020 6,632,982 5,709,549 923,433 376,194 245%
2021 7,422,603 5,811,082 1,611,521 375,969 429%
Water Revenue Bonds
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation. ** Bond was refinanced in FY 2017, no principal payment due until 7/1/2017. Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Demographic and Economic Statistics Last Ten (10) Fiscal Years -171-
Per Loma Linda Redlands
Capita Academy Bryn Mawr Mission School Unemployment
Fiscal Personal Personal (Private) Elementary Elementary District Rate Year Population 1 Income 2 Income 3 Enrollment 4 Enrollment 5 Enrollment 5 Enrollment 5 (percentage) 7 2011 23,395 $ 805,449,502 $ * 34,428 $ 1,400 $ 988 $ - 21,398 $ 8.72012 23,389 n/a n/a 1,306 776 217 21,408 8.0 2013 23,476 721,065,000 30,715 1,312 730 509 21,379 5.8 2014 23,614 728,563,000 30,853 1,242 666 550 21,233 5.0 2015 23,751 717,247,000 30,406 1,255 681 538 21,326 4.6 2016 24,649 738,747,000 ** 29,970 ** 1,289 658 561 21,264 3.7 2017 24,528 721,317,000 ** 29,407 ** 1,246 691 551 21,395 3.2 2018 23,946 690,762,000 ** 28,162 ** 1,247 665 561 21,261 2.9 2019 24,335 698,833,000 ** 28,717 ** 1,246 675 579 21,240 2.4 2020 24,535 680,521,000 27,736 1,239 684 550 21,062 2.4 Sources: 1 State of California, Department of Finance 2 Calculation based on the 2000 Census: Loma Linda's personal income is 1.3% of the total County of San Bernardino's income; therefore, the City used the constant 1.3 percentage of the County's income to determine the City's personal income amount. * Per Bureau of Economic Analysis: Per capita personal income was computed using Census Bureau midyear population estimates. Estimates for 2000-2011 reflect county population estimates available as of April 2012.3 Per Capita personal income is calculated by dividing personal income by population 4 Loma Linda Academy's registrar's office (except in 2011 the City used www.trulia.com) 5 California Department of Education 6US Department of Labor, Bureau of Labor Statistics ** As of FY 2016 Data provided by HdL Companies
CITY OF LOMA LINDA
Principal Employers Current Fiscal Year
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Percentage Percentage
of total City of total City
Employer Employees Rank Employment Employees Rank EmploymentLoma Linda University Medical Center 7,711 1 35.58% 7,549 1 44.11%Jerry L. Pettis VA Med. Ctr. 3,712 2 17.13% 2,268 3 13.25%Loma Linda University 2,549 3 11.76% 3,562 2 20.80%University Health Care 1,417 4 6.54% 1,338 4 7.82% Total 15,389 71.01% 14,717 85.98%
2021 2011
Veterans Affairs Personnel Department Total number of jobs within City limits provided by Employment Development Department, Labor Market Information Division *Principal employer information available for FY 2009, as required by GASB-S44:33 Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Full-Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government 29 29.5 30.5 31.5 32.5 33 34.5 35.5 34.5 36.5 Public safety
* Sheriff
Officers 12.8 12.77 12.77 12.77 15.26 19.02 19.36 19.36 19.36 19.36 Civilians 5.03 5.03 5.03 5.03 5.81 7.1 7.1 7.1 7.2 7.2
Fire
Firefighters and officers 29 23 23 23 26 26 24 28 28 28 Civilians 4 4 5 5 5 5 4 4 3 3
Highways and streets
Maintenance 4 4 4 4 4 4 3 6 5 5
LL Connected Communities 3.5 3.5 3.5 2.5 2 2 2 2 2 2
Sewer 2 2 2 2 2 2 2 2 2 2
Water 11 11 12 11 11 11 11 11 11 11
Total: 100 94.8 97.8 96.8 103.57 109.12 107 115 112.06 114.06 * Sheriff services are contracted through the County of San Bernardino Sheriff's Dept.
Source: City of Loma Linda Human Resources
CITY OF LOMA LINDA
Operating Indicators by Function
Last Ten (10) Fiscal Years
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Sheriff
Calls for service 18,084 20,846 21,673 22,759 42,044 27,588 26,662 26,580 28845 29274 Citations issued by Deputies 1,703 1,653 5,988 1,034 1,161 2,373 2,068 1,061 1548 760 Red light camera citations 0 0 0 0 0 0 0 0 0 0
Physical arrests 1,078 790 730 669 828 863 729 878 638 641 Fire
Total number of calls answered 3,230 3,213 3,797 4,005 4,404 5,343 4,996 4,654 4371 4576 % of calls for medical aid 64.7 63 65.3 63.8 57.45 53.9 59.53 60 61.3 62.4 Highways and streets
Street resurfacing (miles) 3.85 5.1 1.95 1.15 3.7 1.6 6.1 3.7 4.9 2.5 Potholes repaired 12 11 7 18 15 21 59 19 30 25
Water
New connections 0 3 1 0 8 5 23 43 52 90
Water main breaks 24 10 21 8 14 10 19 6 23 6
Average daily consumption 13.54 13.73 13.75 13.00 11.10 11.18 12.7 11.81 11.87 13.78 (acre foot)
Wastewater
Average daily sewage treatment 4.0 4.1 4.0 4.0 3.5 3 4 4 4 4 (million gallons)
Note: Sheriff services are contracted through the County of San Bernardino Sheriff's Dept.
Potholes repaired are reported in tons prior to 2009.
Sewer treatment is contracted through the City of San Bernardino Sources: City of Loma Linda Public Works and Fire Departments, and San Bernardino Sheriff's Department
CITY OF LOMA LINDA
Capital Assets Statistics by Function
Last Ten (10) Fiscal Years
-175-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Public safety
* Sheriff
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 10.5 10.5 11.77 11.77 11.77 11 11 11 11 11 Fire Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 15 17 16 15 15 17 17 15 16 18
Highways and streets
Streets (miles) 63.89 64.64 64.64 64.64 64.64 65 65.7 66.23 68.86 70.71 Streetlights 1,470 1,470 1,472 1,483 1,024 1532 1551 1607 1758 1821 Culture and recreation
Parks 13 13 13 13 13 13 13 13 13 13
Park acreage 90.33 90.33 90.33 90.33 90.3 90.33 90.33 90.33 90.33 90.33 Tennis courts 4 4 4 4 4 4 4 4 4 4
Senior center 1 1 1 1 1 1 1 1 1 1
Water
Water mains (miles) 77 77 77 77 77.2 111.45 112.98 112.98 118.37 92.74 Fire hydrants 957 964 997 917 939 950 991 995 1002 1048 Maximum daily capacity 12,982 11,305 12,220 12,220 13,800 13,200 13,320 13,320 13,200 13,200 (gallons per minute)
Sewer
Sanitary sewers (miles) 67.5 67.5 67.5 67.5 61.3 65 66.43 66.43 70.33 70.33 Storm sewers (miles) 20.5 20.8 20.8 20.8 18.58 21 21 21 21 21 * Sheriff services are contracted through the County of San Bernardino Sheriff's Dept.
Sources: City of Loma Linda Public Works and Fire Departments, San Bernardino County Sheriff's Department
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INDEPENDENT ACCOUNTANT’S REPORT ON
AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEETS
Independent Accountant’s Report
To the Honorable City Council
City of Loma Linda
Loma Linda, California
We have performed the procedures enumerated below (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) to the accompanying Appropriations Limit Worksheet for the year ended June 30, 2021. The City of Loma Linda’s (the City) management is responsible for the accompanying Appropriations Limit Worksheet for the year ended June 30, 2021.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities has agreed to and acknowledged that the procedures performed are appropriate to meet for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are 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 added 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. -2-
3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the 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.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2021. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City of Loma Linda, California, 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 and its distribution is not limited.
San Bernardino, California
January 6, 2022
-3-
CITY OF LOMA LINDA
APPROPRIATIONS LIMIT COMPUTATION
2020 – 2021
Change in Per Capita Cost of Living 3.73%
Change in City Population 0.53%
Change in Per Capita Cost of Living converted to a ratio 1.0373 Change in City Population converted to a ratio 1.0053
Calculation of factor for ratio of change (1.0373 x 1.0053) 1.0428 2019-2020 Limit 50,007,628 $
2020-2021 Limit ($50,007,628 x 1.0428) 52,147,839 $
-1-
To the Honorable City Council
City of Loma Linda
We have audited the financial statements of the City of Loma Linda (the City) as of and for the year ended June 30, 2021, and have issued our report thereon dated January 6, 2022. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 6, 2021, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
Honorable City Council
City of Loma Linda
-2-
Significant Risks Identified
We have identified the possibility of the following significant risks:
Management’s override of internal controls over financial reporting. Management’s failure to recognize revenue in accordance with generally accepted accounting principles.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1 to the financial statements, during the year, the City changed its method of accounting for Fiduciary Activities by adopting Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current 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 markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
The estimate of the liability for other postemployment benefits is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of depreciation expense is based on the useful lives of acquired assets.
We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.
The estimate of the net pension liability is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The disclosure of capital assets, net, in Note 5 to the notes to the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.
Honorable City Council
City of Loma Linda
-3-
The disclosure of net pension liability in Note 8 in the notes to the basic financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure of the City’s other post-employment benefits payable in Note 9 to the notes to the basic financial statements is based on actuarial assumptions which could differ from actual costs.
The disclosure related to the possible effects of the COVID-19 pandemic in the notes.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. No misstatements were identified during our audit.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated May 6, 2021.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Honorable City Council
City of Loma Linda
-4-
Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the Plan’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios, the Schedule of Changes in the Net OPEB Liability and Related Ratios, and the Schedule of OPEB Plan Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We 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 combining and individual non-major fund financial statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate 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 introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.
This report is intended solely for the information and use of the Honorable City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
San Bernardino, California.
January 6, 2022
{~~(~ City of Loma Linda
" ... ::::.::·~~-~ Staff Report
Phi!I Dupper, Mayor
Ronald Dailey, Mayor pro tern pore
Rhodes Rigsby, Councilman
John Lenart, Councilman
Bhavin Jindal, Councilman
DATE:
TO:
January 11, 2022
City Council
Lorena Matarrita, Senior Planner~
Master Sign Program No. P21-225
Approved/Continued/Denied
By City Council
Date
FROM:
SUBJECT:
RECOMMENDATION
Staff recommends City Council take the following actions:
1. DETERMINE the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15311 (a) which applies to the placement of sign age on existing commercial or institutional facilities, and;
2. APPROVE Master Sign Program Application No. P21-225 for the design and installation of wall-mounted signs and monument signs at the surgical hospital located at 26780 Barton Road, based on the Findings contained in this Staff Report and subject to the Conditions of Approval.
SUMMARY
Kurtis Sharp with Loma Linda University Health (LLUH) submitted a Master Sign Program Application for the design and installation of wall~mounted signs and monument signs for the surgical hospital located at 26780 Barton Road.
As required by Chapter 17.18.05 of the Loma Linda Municipal Code, whenever five or more nonexempt signs are proposed for a single-tenant development, a Master (Comprehensive) Sign Program is required. The purpose of a Master Sign Program is to integrate all signs proposed for a development project with the overall site design and the structures' design into a unified architectural statement, and to allow for modifications to the sign requirements established in this chapter for large properties. A comprehensive sign program provides a means for the flexible application of sign regulations for projects that require multiple signs in order to provide latitude in the design and display of multiple signs and to achieve the purpose of this chapter.
Since the Sign Program is being requested by Loma Linda University, the project is being considered by City Council.
PERTINENT DATA
Property Owner/Applicant
General Plan/Zoning:
Site:
Topography:
Vegetation:
Special Features:
Loma Linda University Health/Kurtis Sharp
Institutional-Healthcare (I-HC)
26780 Barton Road; APNs: 0292-164-05 &-06; 6.33 acres
Generally flat
Urban landscaping including parkways with mature trees, parking lot shrubs and flower beds
Project Site is composed of two (2) separate parcels developed with a medical facility owned by Loma Linda University
CC Agenda Item 3
City Council Staff Report
Meeting of January 11, 2022
BACKGROUND