Agenda packet — Loma Linda City Council, February 14, 2023 (part 1 of 2)

CITY OF LOMA LINDA

CITY COUNCIL AGENDA
REGULAR MEETING OF FEBRUARY 14, 2023
7:00PM
A regular meeting of the City Council of the City of Loma Linda is scheduled 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.lomalindaca.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.

City Council Agenda

Page 2 ends

A. Call To Order
B. Roll Call
C. Closed Session - 6:30pm – Conference with Legal Counsel - Pending litigation pursuant to Government Code Section 54956.9(d)(1), Ditech Financial v. First-Citizens Bank & Trust Company, City of Loma Linda Housing Authority
D. Invocation and Pledge of Allegiance – Mayor Dupper (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief, non-sectarian 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. Public Hearing - Community Development Block Grant (CDBG) project prioritization for Fiscal Year 2023 - 2024 [Public Works]

2. Joint meeting of the City Council and Housing Authority regarding presentation of Audit Report for Fiscal Year 2021-2022 [Rogers, Anderson, Malody & Scott/Finance]

3. Public Hearing – Council Bill #R-2023-03 – Adopt Resolution to determine the costs related to the Fall 2022 Weed Abatement Program. [Fire]

4. Public Hearing - Adopt the Mitigated Negative Declaration and Mitigation Monitoring Reporting Program pursuant to CEQA for the 1.6 Million Gallon Water Tank project [Public Works/Community Development]

5. Public Hearing – Adopt Revised Resolution No. 3160 approving editorial corrections to the Resolution relating to the adoption of the 2022 California Fire Code [Fire] I. Consent Calendar

6. Demands Registers

7. Minutes – December 13, 2022, and January 10, 2023

8. Treasurer’s Report – January 2023

9. Fire Department’s Report – January 2023

10. Award a contract for the replacement of City’s Storage Area Network (SAN) system to CDW-G in the amount of $52,489.93 [Information System]

11. Declare surplus property and authorize disposition [Public Works/Information System]

12. Approve a supplemental appropriation of $30,000 from the General Fund Balance and amend the Agreement for consultant services between the City of Loma Linda and Romo Planning Group to continue on-call contract planning services through the Fiscal Year 2022-2023 [Community City Council Agenda

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Development]

13. Amend Agreement for consultant services between the City of Loma Linda and Lilburn Corporation relating to the Canyon Ranch Project [Community Development]

14. Approve a supplemental appropriation in the amount of $50,000 from the General Fund Balance into Facilities Maintenance, Repairs & Maintenance – Building account for two unanticipated incidents requiring major remediation [Public Works]

15. Accept as complete and authorize recordation of Notice of Completion for Construction of Sidewalks at Various Locations (CIP 22-110), Contractor: Ruiz Concrete & Paving, Inc. [Public Works]

16. Accept as complete and authorize recordation of Notice of Completion for replacement of acoustic tiles within the Civic Center and approve an appropriation of $5,100 from the General Fund Balance into the Facilities, Repairs & Maintenance – Building account Contractor: K.D. Acoustics [Public Works]
J. Old Business

17. Appointments of Committee and Board members to:
a. Budget Committee
b. Parks, Recreation and Beautification Committee
c. Personnel Board
K. New Business
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).

18. Digital Video and Social Media Discussion [Community Development & Fire] N. Adjournment

POSTING
I, Lynette Arreola, City Clerk, do hereby certify and declare that on the 9 th day of February, 2023, 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

CITY COUNCIL AGENDA
PACKET
AGENDA ITEM NO 1

CITY COUNCIL AGENDA
PACKET
AGENDA ITEM NO 2
City of Loma Linda
Official Report
Phill Dupper, Mayor
Ronald Dailey, Mayor pro tempore
Rhodes Rigsby, Councilman
John Lenart, Councilman
Bhavin Jindal, Councilman
CITY COUNCIL AGENDA: February 14, 2022
TO: City Council & Housing Authority Board
FROM: Sonia Fabela, Finance Director
SUBJECT: Public Hearing – Joint Meeting of the City Council and Housing Authority regarding presentation of Audit Report for Fiscal Year 2021- 2022 (PowerPoint Presentation)

RECOMMENDATION
It is recommended that the City Council review and receive for filing.

Approved/Continued/Denied
By City Council
Date
Attachment :
• Annual Comprehensive Financial Report
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 9240B
909 889 087 1 T
909 889 536 1 F
ramscpa. net

PARTNERS
Ten-y P Shea. CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Welebir. CPA, MBA. CGMA
Jenny W. Liu, CPA. MST
B1 enda L. Odle, CPA. MST (Partner Emeritus)

MANAGERS/ STAFF
Gardenya Duran, CPA. GMA
Brianna Schultz. CPA, CGMA
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena. CPA
Vernrnca Hernandez. CPA
Laura Arvizu. CPA
Xinlu Zoe Zhang. CPA, MSA
John Maldonado, CPA. MSA
Julia Rod,·iguez Fuentes, CPA. MSA
Demi Hite. CPA
Jeffrey McKennan. CPA

MEMBERS
American Institute of
Cernfied Public Accountants
PCPS The A/CPA All,ance
(or CPA Finns
Gove111menta/ Audit
Quality Ce11te1
California Society of
Certified Public Accountants
Proud Member of
AlliottGlobalAlliance·

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Loma Linda
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, 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 (the City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 30, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. -2-
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
January 30, 2023
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 9240B
909 889 087 1 T
909 889 536 1 F
ramscpa. net

PARTNERS
Ten-y P Shea. CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Welebir. CPA, MBA. CGMA
Jenny W. Liu, CPA. MST
B1 enda L. Odle, CPA. MST (Partner Emeritus)

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
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 to the accompanying Appropriations Limit Worksheet of the City of Loma Linda, California (the City) for the year ended June 30, 2022. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. 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 American Institute of Certified Public Accountants. 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, 2022. 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 30, 2023
-3-

CITY OF LOMA LINDA

APPROPRIATIONS LIMIT COMPUTATION
2021 – 2022
Change in Per Capita Cost of Living 5.73%
Change in City Population 1.31%
Change in Per Capita Cost of Living converted to a ratio 1.0573 Change in City Population converted to a ratio 1.0131
Calculation of factor for ratio of change (1.0573 x 1.0131) 1.0712 2020-2021 Limit 52,147,839 $
2021-2022 Limit ($52,147,839 x 1.0712) 55,858,191 $

Ceramic Tile Mural

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

CITY OF LOMA LINDA, CALIFORNIA
For the Fiscal Year Ended June 30, 2022
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

CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting ............................xvi Principal Officials .............................................................................................................. xvii Organization Chart ........................................................................................................... xviii

FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................... 1 Management’s Discussion and Analysis ......................................................................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................... 18 Statement of Activities ............................................................................................... 19 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ........................................................................................................... 22 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ......................................................... 24 Statement of Revenues, Expenditures, and Changes in Fund Balance ..................... 25 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 .............................................. 27 Proprietary Fund Financial Statements:

Statement of Net Position .......................................................................................... 29 Statement of Revenues, Expenses, and Changes in Fund Net Position .................... 30 Statement of Cash Flows .......................................................................................... 31 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ........................................................................... 34 Statement of Changes in Fiduciary Net Position ........................................................ 35 Notes to Basic Financial Statements ........................................................................ 36 Required Supplementary Information (Unaudited)
Budget and Budgetary Accounting ............................................................................... 87 Budgetary Comparison Schedules
General Fund ......................................................................................................... 88 Loma Linda Housing Authority Fund ....................................................................... 89 Regional Traffic Development Impact Fund ............................................................ 90

CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
Schedule of Changes in the Net OPEB Liability and Related Ratios ............................ 91 Schedule of OPEB Plan Contributions ......................................................................... 92 Schedule of the Plan's Proportionate Share of the Plan's Net Pension Asset and Related Ratios as of the Measurement Date ............................................................. 93 Schedule of Pension Plan Contributions ....................................................................... 94 Supplementary Information:

Major Governmental Fund Budgetary Comparison Schedules:

Special Projects Construction Capital Projects Fund .................................................... 97 Park Development Capital Projects Fund ..................................................................... 98 Nonmajor Governmental Fund Financial Statements:

Combining Balance Sheet .......................................................................................... 103 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ..... 110 Nonmajor Governmental Budgetary Comparison Schedules:

Nonmajor Governmental Funds – Special Revenue Funds:

Traffic Safety ........................................................................................................... 118 Gas Tax .................................................................................................................. 119 CASp CERT & Training ........................................................................................... 120 Measure I ................................................................................................................ 121 Measure I MSART ................................................................................................... 122 Street Lighting District ............................................................................................. 123 Landscape Maintenance District .............................................................................. 124 Air Quality Management District .............................................................................. 125 Public Improvements Per MOU ............................................................................... 126 Community Development Block Grant ..................................................................... 127 Grant Fund .............................................................................................................. 128 Citizens Option for Public Safety ............................................................................. 129 Development Agreement Consideration .................................................................. 130 American Rescue Plan Act ....................................................................................... 131 Nonmajor Governmental Funds – Capital Projects Funds:

Storm Drain ............................................................................................................. 132 Traffic Impact .......................................................................................................... 133 Fire Facilities ........................................................................................................... 134 General Facilities ..................................................................................................... 135 Federal/State Construction ...................................................................................... 136 Public Meeting Facilities .......................................................................................... 137 Public Library Facilities ............................................................................................ 138 Art in Public Places ................................................................................................. 139 Capital Projects Bond Proceeds .............................................................................. 140

CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
Supplementary Information:

Nonmajor Governmental Funds – Debt Service Funds:

Loma Linda Financing Authority .............................................................................. 141 All Custodial Funds:

Combining Statement of Fiduciary Net Position – Custodial Funds ......................... 143 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ...... 144

STATISTICAL SECTION (UNAUDITED)
Net Position by Component .............................................................................................. 147 Changes in Net Position ................................................................................................... 149 Governmental Activities Tax and Assessments Revenues by Source .............................. 153 Fund Balances of Governmental Funds ........................................................................... 154 Changes in Fund Balances of Governmental Funds ........................................................ 156 General Fund Tax Revenues by Source .......................................................................... 158 Top 25 Sales Tax Producers ............................................................................................ 159 Taxable Sales by Category .............................................................................................. 161 Assessed Value and Estimated Actual Value of Taxable Property ................................... 162 Direct and Overlapping Property Tax Rate ....................................................................... 163 Principal Property Taxpayers ........................................................................................... 164 Property Tax Levies and Collections ................................................................................ 165 Ratios of Outstanding Debt by Type ................................................................................. 166 Ratios of General Bonded Debt Outstanding ................................................................... 167 Direct and Overlapping Governmental Activities Debt ...................................................... 168 Computation of Legal Debt Margin ................................................................................... 169 Pledged Revenue Coverage ............................................................................................ 171 Demographic and Economic Statistics ............................................................................. 172 Principal Employers ......................................................................................................... 173 Full-Time Equivalent City Government Employees by Function ....................................... 174 Operating Indicators by Function ...................................................................................... 175 Capital Asset Statistics by Function ................................................................................. 176 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 30, 2023
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, 2022. 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 unmodified (“clean”) opinions on the City of Loma Linda’s financial statements for the year ended June 30, 2022. 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 (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 10,899 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. ii
Loma Linda covers an area of 7.7 square miles and has a resident population of 25,349, as certified by the State Department of Finance, as of June 30, 2022. The City has increased by 454 residents from the previous year. Loma Linda’s median income is $56,021, which is 14.8% lower than the average for San Bernardino County.

As presented in the ten year population history
chart, Loma Linda’s population has plateau over
the past 10 years. The 2020 Census measured
the population at 24,791 which is a 6.6%
increase from the 2010 Census population of
23,261. In comparison, San Bernardino County
grew by 7.2% between the 2010 and 2020
Census. The State Department of Finance has
estimated a growth of 558 to the City’s
population of its current total of 25,349 as of
June 30, 2022.

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, 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
13 14 15 16 17 18 19 20 21 22
FY Ending June 30th
City of Loma Linda
Population History
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 24 and 27 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 department level. Adjustments at the object level within the same fund and major categories of expenditures are permissible at the department level with the department head and 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 2021/2022 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 2021/2022 Fiscal Year, the City’s Community Development Department, which comprised 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, the Department processed almost as many permits and entitlements as in the previous fiscal year. Applications received by the Building and Safety Division were above their pre-pandemic numbers. In 2019, Building staff processed 638 applications. In 2020, staff processed 726. And in 2021, the Division processed 779. The upward trajectory is expected to continue during the 2022 calendar year. Throughout the fiscal year, Building staff continued to check plans, issue permits, and conduct inspections.

The Department’s Planning Division, which includes land use and zoning activities, assisted residents, interested developers, and businesses both in-person and online to ensure proposed uses complied with city codes and the General Plan. The Planning Division had similar growth to that of the Building Division. During the pandemic in 2020, they issued 184 planning permits; in 2021, it was 250. We expect the 2022 permit numbers to be similar or slightly more. Additionally, during the fiscal year, the Department brought in close to one million dollars in development impact fees. These charges offset the costs for new construction or expansion of public infrastructure and services supporting the new development.

Planning staff also completed several long-range planning goals, such as updating the Housing and Safety Elements and adopting a new Objective Design Standards ordinance. Some notable iv
development projects included approving a new four-story Courtyard Marriot Hotel, a 103 residential condominium project, a 51-lot residential subdivision, a Fitness 19 health facility, and approval of a Community Benefiting Improvement to preserve the historic Frink Adobe house. In addition, the Division has processed six Preliminary Development Review applications, allowing staff to provide feedback to applicants before discretionary review to ensure successful projects in Loma Linda. The Planning Division is reviewing an annexation application for 141 acres from the City’s sphere of influence. Moving forward, all permitting requests in this new area will be processed by the Community Development Department.

Fire Department
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. While this fire season was significantly less destructive than in years past, Fire again participated in numerous mutual aid incidents for which the City was reimbursed.

Fire has worked on completing objectives recognized in the five (5) year strategic plan; many of the objectives were delayed due to COVID-19 related issues.

Community Risk Reduction (CRR), which includes Fire Prevention, Disaster Preparedness, Code Enforcement, and Parking Enforcement, was busy in 2021/2022.

Fire Prevention Division maintained 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. The Division also inspected all state mandated occupancies throughout the community.

Disaster Preparedness Division updated the Local Hazard Mitigation Plan and continued to increase resiliency in the community through equipment purchases and training of City staff.

The Code Enforcement section was very active during the year, too. The team worked in partnership with community members to preserve and enhance our community's safety, appearance, and economic stability.

Animal licensing compliance continued to increase, animal impounds were maintained at recordlow levels, and rabies vaccination compliance was improved. The City currently utilizes the City of San Bernardino for shelter services.

As part of the pandemic response, Code enforcement assisted with meal deliveries to our most at-risk members throughout our City. At the beginning of 2022, Code Enforcement and Animal Control were officially reassigned from the Community Development Department to the Fire Department.
v
Information Systems Department
The city completed phase 2 of its phone system upgrade. This upgrade brought a modern VoIP (Voice over Internet Protocol) solution to city staff. Productivity features, longevity, and data protection were all goals achieved in this process. This project included an all-encompassing replacement of the VoIP system’s hardware and software. These upgrades will last the city for years to come.

In the foresight of ever increasing cyber security threats, the city implemented a modern data protection solution. This data protection solution allows for more sophisticated data backups that integrate better with the current city systems. This data protection solution enables city’s data to be replicated both locally and in the cloud, protecting the city against total local data loss.

Loma Linda’s Fire Station 251 and the city’s Emergency Operations Center (EOC) went through a remodel which the Information Systems Department provided consulting on. The remodel included updating electronic and network configurations, and streamlining the connection to the city’s data resources.

The City has completed additional upgrades to the city wide CCTV system providing better security coverage that included additional cameras at the city well sites allowing for better security and visibility at these crucial locations.

The future is prepared for with the Loma Linda Connected Community Program (LLCCP). The LLCCP, originally started in 2004, includes the deployment of an advanced city-wide 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 throughout.

In 2007, the LLCCP started expanding into commercial areas via organic growth at existing locations. The fiber network is being extended into new home construction with additional customers coming online as the network expands. Additional equipment was purchased and implemented to cater to an expanding customer base.

As new home construction occurs in the city, the residential LLCCP infrastructure expands with it.

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.

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 vi
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 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 2021/2022, 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 Redevelopment Agency actively manages the loans and/or the properties. One home mortgage loan was paid off in June, 2022, but the Affordability Covenant remains on the property. No properties were sold or transferred during the 2021/2022 fiscal year.

Pursuant to the Affordable Housing Agreement and its amendments with Mary Erickson Community Housing (“MECH”), a non-profit affordable housing developer, MECH continues to monitor the affordability covenants for the four single-family homes on Juanita Street. The purchase and rehabilitation of four units on San Mateo Drive are completed and occupied, subject to long-term affordability covenants.

Economic Development
The Economic Development Division of our City has worked diligently during the fiscal year on business attraction, retention, and revenue generation where possible. vii
Staff continues collaborating with Loma Linda University Health on numerous projects, including constructing a 6-foot tall garden wall that will serve as a gateway monument to Loma Linda. This attractive piece, along with the lush landscaping and accompanying orchard, will welcome drivers and pedestrians to the City and help define the borders between Loma Linda and San Bernardino.

Due to the pandemic-related 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. Restaurants and small businesses 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. In addition, there has been an increase in Land Use Permits and Home Occupations Permits, evidence of a growing entrepreneurial ecosystem.

Working in tandem with the Community Development Department, Staff prepared various programs to help improve the economic well-being and quality of life in Loma Linda. They include the Hotel Incentive Program update and a Friendship City relationship (sister city program) with the Municipality of Puntarenas in Costa Rica. Both projects provide a tangible benefit for the City, incentivizing the business sector to spur economic growth while expanding the City’s network and knowledge and its cultural and social awareness.

The City’s 3rd national brand hotel, Candlewood, is almost complete and will be operating by the end of the calendar year. A 4th hotel, Courtyard by Marriot, started the grading process. A 30,000- square-foot surgical eye care center and a 16,600 square-foot medical office building are currently under construction. O’Reilly Auto Parts had its grand opening at the beginning of 2022, completing the build-out of the Dollar Tree Center. The Medical Center has occupied the new 16-story hospital building bringing additional patients and employees to the community. Two large homebuilders, KB Home and Lennar, have completed the construction of 279 single-family residences. And Highpointe Communities is preparing to grade an additional 177 single-family homes in the City and future annexation area.

Additionally, 160 condo units and 213 senior-living apartments are either in the construction or pre-construction phase. Through the recently adopted “The Groves Specific Plan,” the City expects up to 30 acres of commercial space to be developed along the Redlands Boulevard corridor and California Street. These projects provide much-needed retail, services, and housing to Loma Linda and its residents. Moreover, they are creating jobs and improving the quality of life in the City.

Capital Improvement Program (CIP) Projects:

Public Works
During the 2021/2022 fiscal year, the Public Works Department completed or continued with the following projects: pavement rehabilitation on Barton Road from Waterman Ave. to Campus St., Parkland St. and Orange Grove St.; Waterline and street rehabilitation on Curtis St., Lomas Verdes St., Elm St., Cottonwood Rd., Mead St., Mead Ct., Mead Ln., Mead Way., San Juan St., Evans St., Rincon St., Canada St., and Stewart St.; Repaired sidewalks and ADA access ramps, as needed city-wide; Planted trees in various locations; Installed fiber optic cable at Mt. View Ave. and Cooley Dr. to the well sites; installed shade structure at the City Corp Yard; Installed a walking track at Bailey Park and lighting at baseball fields; completed various projects for the Art in Public Places project; Project plan checking continues on an as-needed basis; Complied with State and Federal regulations, including: air quality, storm water, water conservation and solid waste diversion.
viii

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 2022, the median price of a home in Loma Linda
was $595,080, an increase of $40,268 or 7.3%, from
$554,812 in 2021, according to Zillow.com. This is an
overall increase of 30.2% 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 2022. 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,
2022. In 2022, the City received $7,951,156
in sales tax revenues which is somewhat
comparable to previous years’ sales tax
revenues before the COVID-19 pandemic.

This is an increase of 116% or $4,277,568
from $3,673,588 in fiscal year 2021. In fiscal
year 2020, the California Department of Tax
and Free Administration advanced the City
approximately $3,300,000, as such, the
revenues were accrued to that year whereby creating a significant increase from fiscal year 2021 to 2022.

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 continuing to expand its sales tax base through economic development like recent commercial projects that have been added to the 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
13 14 15 16 17 18 19 20 21 22
FY Ending June 30th
City of Loma Linda
Sales Tax History
$0
$200,000
$400,000
$600,000
13 14 15 16 17 18 19 20 21 22
FY Ending June 30th
City of Loma Linda
Median Housing Prices
ix
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, 2022. As
shown here, General Fund property taxes have
steadily increased in fiscal years 2013 through
2015 following the great recession. 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, 2022, property
tax revenues were reported at $2,483,539, a net increase of $347,721 or 16.3% from fiscal year 2021 primarily 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 158-162.

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, 2022, the San Bernardino County’s Assessor reported an increase in city wide assessed property values of

9.76%, with Loma Linda showing an 8.48% increase.

Overall property tax revenues are showing signs of growth as valuations increase and increase in demand for housing within the City is addressed. The sales of existing homes has started to slow down and it’s evident in the 13.6% decrease in property transfer tax from $145,433 in 2021 to $125,626 in 2022. In the recent years, with a high demand and low inventory 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 2012/2013. In
fiscal year 2021/2022, the City collected $2,745,301 in VLF revenue, an increase of $241,081 or

9.6% due to an increase in property values within the City. -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
13 14 15 16 17 18 19 20 21 22
FY Ending June 30th
City of Loma Linda
Property Tax History
General Fund
City of Loma Linda
Vehicle License Fee (VLF)
Revenue History
$0
$1,000,000
$2,000,000
$3,000,000
13 14 15 16 17 18 19 20 21 22
FY Ending June 30th
x
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, 2022.

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, 2022. 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 2021/2022, Enterprise Fund operating revenues for Water, Sewer and LLCCP combined, totaled $13,591,160, a decrease of 1.8% over fiscal year 2020/2021, while operating expenses decreased by $3,352,480, or about 26.6%, over the same period. The decrease in operating expenses is largely due to a favorable pension-related accounting adjustment resulting from a 21.3% investment return experienced by CalPERS at June 30, 2021.

Water Operations
For Water Operations specifically, the Water
fund operating revenues exceeded operating
expenses by $2,612,397 this year. Last year
the Water fund showed an operating surplus
of $98,244 for the year. As previously
mentioned, expenses decreased from prior
year due to a favorable pension-related
accounting adjustment resulting from a 21.3%
investment return experienced by CalPERS at
June 30, 2021. Note that the chart to the right
does not include any “non-operating”
revenues or expenses, such as gain on
disposal of assets, interest revenue of
$(17,237), transfers in of $1,298,108, interest
expense of $138,689 and transfer out of $53,397. Interest revenue was negative due to a noncash accounting adjustment reflecting the decrease in fair value of investments. Interest expense in the Water Fund has decreased to $138,689 from $142,785 in 2021 which constitutes a 2.9% decrease due to interest amortizing on a lower principal balance. More information on the 2016 Water Revenue Refunding Bonds can be found on page 57 of the notes.

In an effort to reduce operational cost and increase water conservation, the City has completed a multi-year City-wide meter replacement project that will reduce the loss of revenue and make $(5)
$-
$5
$10
$15
$20
$25
13 14 15 16 17 18 19 20 21 22
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
$35
13 14 15 16 17 18 19 20 21 22
City of Loma Linda
10-Year General Fund History
(in millions)
Revenues
Expenditures
Net Change in
Fund Balance
FY Ending June 30th
xi
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.

Sewer Operations
For the operating period ending
June 30, 2022, the Sewer Fund
ended the year with an operating
change in net position of
$1,639,397. Sewer revenues
decreased slightly by $35,583, or

0.6%, and operating expenses
decreased by $917,471 or 127.1%.

Similar to the Water Fund,
expenses for the sewer fund
decreased by a significant amount
due to a favorable pension-related
accounting adjustment resulting
from a 21.3% investment return
experienced by CalPERS at June
30, 2021. 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 is negative $22,941 due to a non-cash accounting adjustment reflecting the decrease in fair value of investments. Increased treatment expenses related 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 2021/2022
was the eighteenth full year of operations.

For the operating period ending June 30,
2022, LLCCP ended the year with operating
revenues of $326,196 compared to
$342,360 in 2021/2022. Operating
expenses of $272,813 are $163,901 or

37.5% less than expenses for fiscal year
($1)
$0
$1
$2
$3
$4
$5
$6
13 14 15 16 17 18 19 20 21 22
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
13 14 15 16 17 18 19 20 21 22
Revenues
Expenditures
Operating
Change in
Net Position
FY Ending June 30th
City of Loma Linda
Loma Linda Connected Communities Program
Fund
xii
2020/2021. Expenses for the LLCCP fund decreased by a significant amount due to a favorable pension-related accounting adjustment resulting from a 21.3% investment return experienced by CalPERS at June 30, 2021. This pension adjustment contributed to the operating surplus in net position of $53,383 for the LLCCP fund. 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-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 $3,090,643 in employer pension costs and contributions to PERS. The notes to the financial statements are based on the measurement date of the last actuarial valuation which is June 30, 2021, therefore payments made to reduce the UAL are reclassified to Deferred Outflows of Resources in the government-wide statements. In fiscal year 2021/2022, the “City’s” share of retirement costs changed for Miscellaneous employees from 11.031% to 10.880%, for Miscellaneous PEPRA from 7.732% to

7.590%, for Safety plan from 21.746% to 21.790% and for Safety PEPRA from 13.044% to

13.130%. 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.

The City is reporting a net pension asset in the amount of $2,454,170 primarily due to CalPERS’ investment return of 21.3% in the fiscal year ended June 30, 2021 combined with the City’s additional payments towards the unfunded liability in previous years. CalPERS’ investment return for the subsequent year was a negative 6.1% which is expected to increase the City’s proportion of the collective net pension liability.

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 2021/2022. Please see Note 8 and 9 of the notes for further information, including a subsequent event disclosure related to action taken by CalPERS in November 2021 to lower the discount rate to 6.8% that will be reflected in valuation reports for the June 30, 2022 measurement date.

DEBT ADMINISTRATION
As of June 30, 2022, the City and the Successor Agency had bond debt outstanding in the amount of $27,445,000. 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, 2022, the balance of each bond respectively is $3,715,000 and $19,240,000. 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 xiii
obligation) of $10,000. The City had a bond debt balance of $4,490,000 at June 30, 2022.

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, 2022 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, the Loma Linda Housing Authority, and the Successor Agency to the Loma Linda Redevelopment Agency, as of June 30, 2022, 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 Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the sixteenth 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 ACFR. 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 annual comprehensive 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. xiv

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
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Loma Linda
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xvi
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-xviiCITY 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
Diane E. Robbins
City Attorney
Lynette Arrela .................................................................................................... City Clerk Sonia Fabela ............................................................................. Finance Director/Treasurer Daniel Harker ....................................................................................................... Fire Chief This page intentionally left blank
xviii
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735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 9240B
909 889 087 1 T
909 889 536 1 F
ramscpa. net

PARTNERS
Ten-y P Shea. CPA
Scott W. Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Welebir. CPA, MBA. CGMA
Jenny W. Liu, CPA. MST
B1 enda L. Odle, CPA. MST (Partner Emeritus)

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-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, 2022, 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, 2022, 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Other Matters
As discussed in Note 1 to the financial statements, in the year ended June 30, 2022, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

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. -3-
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 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 sections 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. -4-
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2023 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 30, 2023
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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, 2022. 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 $156,654,822 (net position); of this amount $124,864,660 is from governmental activities and $31,790,162 is from business-type activities, with $26,633,948 positive and $5,324,916 in negative unrestricted net position, respectively.
 In the Government-Wide – Statement of Activities: The City’s net position increased 12.42% or $17,306,180 from the $139,348,642 at the beginning of the year (as restated), to $156,654,822 at the end of the year. The increase is the net result of positive changes of $13,854,269 in governmental activities and $3,451,911 in business-type activities.  In the Government-Wide – Statement of Activities: During the current year, Governmental activities program revenues decreased by $378,551; due to a net decrease in charges for services of $4,373,093 offset by an increase of combined operating/capital contributions and grants of $3,994,542. The decrease in charges for services is primarily due to the collection of developer impact fees related to the Loma Linda University hospital expansion that occurred in 2021. Revenues from developer impact fees fluctuate depending on the size and timing of development projects. The increase in combined operating/capital contributions is mainly attributable to the receipt of the first of two grant allocations from the American Rescue Plan Act of 2021 (ARPA) in the amount of $2,928,307. Business-type program revenues decreased by a net of $194,479 primarily in the Water acquisition fund due to the decrease in water development impact fees related to development projects.
 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 $4,407,420, due to the $457,087 revenues over expenditures combined with other financing sources of $3,950,333. Of the total other financing sources, $2,928,307 relates to the receipt of the first of two grant allocations of the American Rescue Plan Act of 2021 (ARPA) grant allocation as mentioned in the previous bullet point.
 The City implemented GASB Statement No. 87 in the fiscal year ended June 30, 2022, which requires government entities to account for agreements to which it is a lessor and lessee by requiring recognition of certain lease assets and liabilities for leases that were previously classified as operating lease and recognized as inflows or outflows of resources based on the contract. Compliance with GASB 87 added $3,197,571 in lease receivable and $3,111,710 in deferred inflows for leases where the City is in a lessor capacity and $149,947 of lease liability for equipment leases.
 The City’s net pension liability improved from a $6,992,959 liability position to an asset position in the amount of $2,454,170, which was a $9,447,129 or 135% improvement compared to the prior fiscal year. The primary contributing factor to the elimination in the City’s net pension liability was the 21.3% investment return by the California Public Employees’ Retirement System (CalPERS) for the fiscal year ended June 30, 2021 (measurement date) in contrast with the CalPERS’ discount rate (at the time) of 7.15%. The City’s additional payments towards the unfunded accrued liability in previous years contributed to this favorable change as well. However, the favorable results will be short-lived, as CalPERS’ investment return for the fiscal year ended June 30, 2022 was a negative 6.1%, which will then increase the net pension liability in the annual comprehensive financial report for the fiscal year ended June 30, 2023. The elimination of the net pension liability and the amortization of deferred outflows/inflows (pension adjustments) were the -6-
primary factors in the reduction of governmental activities expenses by $8,565,549 from $28,346,743 in 2021 to $19,781,194 in the fiscal year ended June 30, 2022.  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 $1,564,214 while actual expenditures were $1,836,773 less than the final budget. Actual other financing sources, net, were $340,433 more than the final budget, resulting in a positive $3,741,420 net change in budgetary variance and an actual increase in fund balance of $4,407,420.
 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 7.78% 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 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.
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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 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 100-116 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 28-32.
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Fiduciary Funds - The City is the trustee, or fiduciary, for certain amounts held in custodial funds 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 34.

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 34.

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 36-85 of this report.

Required supplementary information - The budget and budgetary accounting and postemployment benefit plans information can be found on pages 87- 94 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. -9-
Net Position
Table 1 below shows a condensed Statement of Net Position comparison for the fiscal years ended June 30, 2022 and 2021.
2021 2021
2022 As Restated 2022 2021 2022 As Restated
$ 67,730,145 74,819,374 $ 13,889,206 $ 13,533,688 $ 88,708,580 $ 81,263,833 $ 52,880,007 54,668,183 41,027,321 41,097,922 95,695,504 93,977,929 129,487,557 120,610,152 54,916,527 54,631,610 184,404,084 175,241,762 Deferred Outflow of Resources
Pension & OPEB 5,591,642 5,182,240 3,382,539 1,957,739 8,974,181 7,139,979 6,464,065 922,545 23,619,363 24,975,408 24,541,908 31,439,473 4,710,337 3,607,586 1,184,466 1,884,600 4,792,052 6,594,937 4,530,131 11,174,402 24,803,829 26,860,008 29,333,960 38,034,410 Deferred Inflow of Resources
Pension, OPEB & Leases 5,684,408 3,607,599 1,705,075 1,391,090 7,389,483 4,998,689 Net Invested in Capital Assets 52,880,007 54,585,683 36,429,645 36,344,853 91,015,328 89,224,860 Restricted 43,645,029 44,234,062 685,433 682,253 44,330,462 44,916,315 Unrestricted 26,633,948 13,896,322 (5,324,916) (8,688,855) 21,309,032 5,207,467 $ 124,864,660 111,010,391 $ 31,790,162 $ 28,338,251 $ 156,654,822 $ 139,348,642 $ 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
The net position of government-wide activities increased by $17,306,180 or 12.42% from $139,348,642 in 2021 to $156,654,822 in 2022. The City implemented GASB 87 effective July 1, 2021. GASB 87 requires that previously categorized operating leases be recorded in the financial statements and recognized as inflows or outflows of resources based on the contract. Additional information can be found on Note 1 of the financial statements.

For governmental activities, the increase of $13,854,269 in net position is the result of a significant increase in total assets of $8,877,405 offset by a decrease in total liabilities of $6,644,271 contributing a gain in net position. That positive impact on net position was offset by an increase in lease-related, pension & OPEB deferred inflows of $2,076,809, and an increase in pension & OPEB deferred outflows of $409,402, for a net negative effect of $1,667,407. The remaining increase of $400,000 was due to a restatement to include a prior years’ loan to developer. For the business type activities, the growth in total net position of 12.18% or $3,451,911 is attributable to an increase in total assets combined with a decrease in total liabilities for a positive change of $2,341,096, as well as an increase in pension & OPEB deferred outflows of $1,424,800, offset with an increase in lease-related, pension & OPEB deferred inflows of $313,985. Further detail on prior year comparisons is provided in Table 2. -10-
As shown in Table 2, the change in net position is a positive $13,854,269 for governmental activities and $3,451,911 for business-type activities, with a combined total increase in net position of $17,306,180 for the fiscal year ending June 30, 2022.
2022 2021 2022 2021 2022 2021
$ 15,097,181 10,724,088 $ 13,142,936 $ 13,337,415 $ 23,867,024 $ 28,434,596 $ 1,611,907 3,913,570 - - 3,913,570 1,611,907
520,806 2,213,685 - - 2,213,685 520,806
8,700,202 13,640,075 - - 13,640,075 8,700,202
2,504,220 2,745,301 - - 2,745,301 2,504,220
658,011 204,757 (64,894) 62,642 139,863 720,653
253,692 26,036 517,022 505,369 543,058 759,061
33,467,512 29,346,019 13,595,064 13,905,426 47,062,576 43,251,445 2,432,363 2,068,926 - - 2,068,926 2,432,363
15,816,365 10,634,051 - - 10,634,051 15,816,365
3,405,290 2,264,274 - - 2,264,274 3,405,290
6,691,119 4,811,300 - - 4,811,300 6,691,119
1,606 2,643 - - 2,643 1,606
- - 271,277 34,407 271,277 34,407
- - 4,974,785 7,451,276 4,974,785 7,451,276
- - 3,894,446 4,848,037 3,894,446 4,848,037
- - 834,694 998,596 834,694 998,596
19,781,194 28,346,743 9,975,202 13,332,316 29,756,396 41,679,059 Changes in Net Position
13,686,318 999,276 3,619,862 573,110 17,306,180 1,572,386 Transfers 167,951 (83,538) (167,951) 83,538 - -
915,738 13,854,269 3,451,911 656,648 17,306,180 1,572,386 Net Position at Beginning of Year, as restated 110,094,653 111,010,391 28,338,251 27,681,603 139,348,642 137,776,256 Net Position at End of Year $ 124,864,660 111,010,391 $ 31,790,162 $ 28,338,251 $ 156,654,822 $ 139,348,642 $ Table 2
Program Revenues:

Charges for services
Governmental Activities Business-Type Activities
City of Loma Linda's Changes in Net Position
Total
Taxes
Total Revenues
Capital grants and contributions
General Revenues:

Interest on long-term debt
Other
Community development
Change in Net Position
before Transfers
Water
Public works
LL Connected Communities
Total Expenses
Operating grants and contributions
Motor Vehicle in-lieu, unrestricted
Investment Revenue
Water acquisition
Business-Type Activities:

Sewer
Expenses:

Governmental Activities:

General government
Public safety
Total revenues for governmental activities shows an increase of $4,121,493 from 2021 to 2022. This increase was comprised of a net decrease in governmental activity program revenue of $378,551 and an increase in the governmental activity general revenue of $4,500,044. The decrease in governmental activity program revenue includes 1) a decrease in charges for services of $4,373,093, 2) increase in operating grants and contributions of $2,301,663, and 3) an increase in capital grants and contributions of $1,692,879. The decrease in charges for services was primarily due to the collection of developer impact fees related to the Loma Linda University hospital expansion that occurred in 2021. The increase in operating grants and contributions was due to the receipt of the first of two grant allocations from the American Rescue Plan Act of 2021 (ARPA) in the amount of $2,928,307. ARPA was designed to provide assistance to individuals, businesses and state and local governments to assist in the economic recovery from the COVID-19 pandemic. The qualified use of these funds includes public safety, infrastructure, and restoration of services to pre-pandemic levels.
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The City has used the funds to offset expenditures related to public safety. The increase in capital grants and contributions was due to the receipt of Measure I funding for the California Street widening project.

The increase in governmental activity general revenue includes an increase in taxes of $4,939,873, an increase in Motor Vehicle in Lieu/Intergovernmental of $241,081, a decrease in investment revenue of $453,254, and a decrease in other general revenues of $227,656. The increase in governmental activity general taxes was attributed to the increases in: 1) sales tax of $4,277,568, 2) property tax of $347,735, 3) franchise tax of $286,089, 4) business license tax of $40,287, and 5) other taxes of $1,607; offset by a decrease in transient occupancy tax of $13,413. The increase in sales tax is mainly due to the amount in 2021 excludes $3,361,279 that was inadvertently advanced by the California Department of Tax and Free Administration in 2020 and therefore it was fully accrued to 2020. The decrease in investment revenue is primarily due to a negative fair market value adjustment to the City’s investment in the Local Agency Investment Fund (LAIF) as required by generally accepted accounting principles.

Total revenue for business-type activities has a decrease of $310,362 from fiscal year 2021. This decrease was due to a decrease in business type activity program revenue of $194,479 and a decrease in business-type activity general revenue of $115,883. The decrease in business type activity program revenues were primarily due to the decreases in water and sewer development fees received during the year offset by increases in water and sewer charge revenues. The major decrease in business-type activity general revenues was due to a negative fair market value adjustment of the City’s investment in the Local Agency Investment Fund (LAIF) as required by generally accepted accounting principles.

The governmental activity program expenses had a net decrease of $8,565,549 compared to the prior year. As discussed earlier, this reduction in governmental activity program expenses was primarily due to the recognition of pension revenue due to the elimination of the net pension liability and amortization of deferred inflows/outflows related to pension as a result of the high investment return of 21.3% experienced by the CalPERS system as of June 30, 2021. The total pension cost accounting adjustment to functional expenses was $8,583,132 with impact to functional categories as follows: $5,419,395 decrease in public safety expense, $1,177,205 decrease in general government expense, $882,903 decrease in community development expense and $1,103,629 decrease in public works expense. The business type activities experienced a decrease in expenses of $3,357,114 which was due to the favorable accounting adjustments to pension costs as well as previously discussed.

In comparison to fiscal year 2021, the overall change in net position from operations for governmental activities was an increase of $13,854,269 and business-type activities increased by $3,451,911 resulting in an overall City net position increase of $17,306,180. -12-
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. 2022 2021 Change 2022 2021 Change
Functions:

General government 2,068,926 $ 2,432,363 $ (363,437) $ (855,396) $ (877,326) $ 21,930 $ Public safety 10,634,051 15,816,365 (5,182,314) 3,077,823 11,724,249 (8,646,426) Community development 2,264,274 3,405,290 (1,141,016) 802,235 1,460,799 (658,564) Public works 4,811,300 6,691,119 (1,879,819) (97,454) (1,192,479) 1,095,025 Interest on long-term debt 2,643 1,606 1,037 2,643 1,606 1,037 Total Governmental Activities $ 19,781,194 28,346,743 $ (8,565,549) $ 2,929,851 $ 11,116,849 $ (8,186,998) $ 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 2022, total costs decreased by $8,565,549 as 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 $58,454,664, a net increase of $3,444,305 in fund balance; included in this amount are increases in fund balance for General Fund of $4,407,420, an increase in the Housing Authority of $104,422, an increase in the Special Projects Construction Fund of $50,637, an increase in the Regional Traffic Development Impact Fund of $196,660, a decrease in the Park Fund of $179,856, and a decrease in the Non Major Governmental Funds of $1,134,978.

The General Fund had a net increase in fund balance of $4,407,420, resulting from revenues exceeding net expenditures by $457,087, netted with total other financing sources of $3,950,333. During the fiscal year, tax revenues increased by $1,583,144 due to increases in: sales tax revenue net of abatements by $822,608; property tax revenue by $328,164, business license tax by $146,304 and franchise fees by $126,273. Charges for services increased by $811,171 primarily due to an arrearage in billing for the amendment of law enforcement services contract with Loma Linda University Health increasing officer hours from 18 to 24 hours per day which became effective July 1, 2020. General Fund expenditures increased by $3,142,136 compared to prior year. Of this increase, $1,000,000 is due to the additional contribution to the PERS unfunded liabilities in fiscal year 2022 while no additional payment was made in 2021. The remaining difference is due to the increase in overtime for Fire & Rescue service in the amount of $673,896, of which the portion served on a Strike Team were reimbursed through Mutual Aid reimbursements, increase in Public Safety of Sheriff service contract and general services of $370,000, increase in salaries and benefits for cost-of-living adjustments in the amount of $395,490, increase in repairs and maintenance of capital facilities and equipment in the amount of $254,958, and $337,067 increase in capital expenditures. Increase in the Regional Traffic Development Impact Fund was attributed to the collection of Development Impact fees. The decrease in Non Major General Funds is primarily due to the transfers out from the ARPA Fund for the ARPA grant revenues to the General Fund.

In total the Proprietary Funds reported an increase in net position of $3,451,911, 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 $3,769,980.
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This was due to operating revenue exceeding operating expenses by $2,612,397 offset by net nonoperating expenses in the amount of $87,128 and transfers in for capital contributions of $1,244,711.

These transfers out of capital assets has an offsetting decrease in net position of $1,341,954 for the Water Acquisition Fund. The favorable change in the net position of the Water Fund is primarily due to a significant pension adjustment as a result of the high investment return of 21.3% experienced by the CalPERS system as of June 30, 2021 as previously discussed. Excluding the pension adjustment, water operating revenue exceeded operating expenses by $371,486. The Sewer Fund ended the year with a positive change in net position of $1,534,240, current revenues of $5,532,750 are in excess of $3,893,353 in operating expenses. Similar to the explanation for Water Enterprise, the Sewer fund experienced a favorable pension adjustment. Excluding the pension adjustment, sewer operating revenue exceeded operating expenses by $790,073; 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 in fund balance of $510,355 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 $457,087 more than the actual expenses. The positive budget-to-actual variance of $1,836,773 in appropriations was mainly due to the City not making the additional $1,000,000 budgeted contribution towards the PERS unfunded liability. Due to the current favorable funded status of the City’s pension, the City did not deem it necessary to pay the additional contribution for 2022. The remainder budget-to-actual positive variance of $836,773 is due to the conservative spending city-wide with saving in personnel cost, professional and contractual services, and repairs and maintenance. Of the unspent budget, actual revenues were $1,564,214 more than anticipated compared to the final budget due mainly to Sales Tax coming in higher than expected. Other revenues that came in higher than budgeted include charges for services, refuse pass thru fees, and refunds and reimbursements but were offset by shortfalls in use of money and property due to a negative fair value adjustment of the City’s LAIF investments (shown as a negative revenue) and 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 $385,800. While the expenditure appropriations budget was increased in total by $3,520,000, the major increases were for PERS unfunded liability of $2,000,000, and overtime for fire services provided while on Strike Team.

Although, the final adopted budget projected a $666,000 positive change in fund balance; favorable results in revenues of $1,564,214 due to higher franchise fees, transient occupancy taxes, and sales taxes; favorable results in expenditures of $1,836,773 due to budgeted additional payment to the unfunded pension liability not being sent as the City’s position had become momentarily fully funded as well as savings in expenditures throughout all departments; and favorable results in other financing uses of $340,433 due to sale of equipment and increased transfers in from Gas Tax, resulted in the combined favorable results of $3,741,420, as the actual positive net change in fund balance was $4,407,420 for the fiscal year ending June 30, 2022.
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
2022 2021 2022 2021 2022 2021
Asset Type:

Land 14,651,396 $ 14,651,396 $ 1,387,764 $ 1,387,764 $ 16,039,160 $ 16,039,160 $ Construction in progress 3,095,955 1,251,396 208,735 183,777 3,304,690 1,435,173 Structures, machinery & equipment 11,081,867 10,932,752 6,435,896 7,020,748 17,517,763 17,953,500 Infrastructure 25,759,152 26,044,463 32,929,500 32,505,633 58,688,652 58,550,096 Intangible assets 79,813 - 65,426 - 145,239 -
Total $ 54,668,183 52,880,007 $ 41,027,321 $ 41,097,922 $ 95,695,504 $ 93,977,929 $ Governmental Activities Business-Type Activities Total
Table 4
Capital Assets at Year End
Net of Depreciation and Amortization
City of Loma Linda
At the end of fiscal year 2022, the City had $95,695,504 invested in a broad range of capital assets, a total increase of $1,717,575 (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 increase in the City of Loma Linda investment in capital assets for fiscal year 2022 was 1.83% (a 3.38% increase in governmental activities and 0.17% decrease in business-type activities). For fiscal year 2022, 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.
2022 2021 2022 2021 2022 2021
Asset Type:

Land - $ - $ - $ - $ $ - $ -
Construction in progress 2,198,295 85,557 147,982 84,353 2,346,277 169,910 Structures, machinery and equipment 1,369,090 2,554,798 31,551 134,713 1,400,641 2,689,511 Infrastructure 567,446 44,208 1,597,320 2,342,747 2,164,766 2,386,955 Intangible assets 96,789 - 77,159 - 173,948 -
Total Additions 4,231,620 2,684,563 1,854,012 2,561,813 6,085,632 5,246,376 Less: Decreases, depreciation and amortization (2,443,444) (1,942,087) (1,924,613) (2,009,212) (4,368,057) (3,951,299) Capital Asset Increase/(Decrease) $ 1,788,176 742,476 $ (70,601) $ 552,601 $ 1,717,575 $ 1,295,077 $ 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 $1,788,176 (net of depreciation and amortization) for governmental activities and decreased $70,601 (net of depreciation and amortization) for business-type activities for a total increase of $1,717,575. In the governmental activities the increase in capital assets can be attributed to the completion of the Fire Station 251 remodel, construction of a walking track at Bailey Park, installation of baseball field lights at Ball Park, installation of various art sculptures throughout the City and various improvements. The increase in business-type activities can be attributed to a fiber optic installation and infrastructure projects throughout the City.

Additional information regarding capital assets activities can be found in Notes 1i and 5 of the financial statements.
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Long-Term Debt

In June 2012, GASB (Governmental Accounting Standards Board) issued Statement No. 68, requiring public employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement to record the net pension liability (if any), pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their financial position.

These amounts are presented in the statement of net position on page 18, with detailed information in Note 8 to the financial statements. As of June 30, 2022, the City does not have a net pension liability compared to previous years but had a net pension asset of $2,454,170.

Governmental Activities - Governmental Activities - The City governmental funds have $922,545 in outstanding long-term debt as of June 30, 2022; with the majority related to compensated absences liability. Tables 6 below and Note 8 to the financial statements offer a more detailed view of governmental long-term debt.
2022 2021 2022 2021 2022 2021
1978 Water Bonds (General Obligation) - $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 2016 Water Revenue Refunding Bonds 4,480,000 4,710,000 4,480,000 4,710,000 Compensated absences 706,726 751,510 278,414 309,415 985,140 1,060,925 Insurance Retrospective Deposit - 38,215 - 13,028 - 51,243 Lease payable 82,500 - 67,447 - 149,947 -
OPEB liability 133,319 206,062 109,079 168,598 242,398 374,660 Net Pension liability - 5,468,278 - 1,524,681 - 6,992,959 Add: Unamortized bond premium - - 40,229 43,069 40,229 43,069 Total 922,545 $ 6,464,065 $ 4,985,169 $ 6,778,791 $ 5,907,714 $ 13,242,856 $ 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 $4,985,169 in outstanding long-term debt as of June 30, 2022. The water enterprise fund has bonded debt of $4,490,000 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 liability total $109,079. 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
The Center for Economic Forecasting does not foresee any major change in the path of the Inland Empire economy over the next 12 months and expects business activity to rise between 2% and 3%. Inflation will continue, but so will overall economic growth, albeit at a slower pace. Unemployment rates have improved over the fiscal year starting from 8.0% at the beginning of the fiscal year and decreasing to

4.0% by June 2022; this rate is comparable to pre-pandemic levels. The real estate market has started to cool down due to the rising interest rates. Sale of existing single-family homes in the Inland Empire were down 9.3% for the first half of 2022. Despite the drop in sales, prices increased 17.9% over the same period in 2021. The median home price in Loma Linda was $595,080 as of June 2022. This amount was

7.3% more than the $554,812 median home price in June 2021.

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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 fourth hotel started the grading process in 2022. The new 16-story Loma Linda University Medical Hospital was completed 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 deferred capital outlay purchases as market availability allows. Despite the economic challenges, the City for fiscal year 2021/2022 maintained economic growth and employment remained stable. 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 liabilities 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.

On May 24, 2022, the City Council adopted the City of Loma Linda Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2022 and ending June 30, 2023. The General Fund operating budget totals $24,349,300 and is funded by operating revenue of $22,451,400 transfers in and other financing sources of $3,814,600, proceeds from loan repayment of $125,000, leaving an addition to fund balance of $2,041,700. The fund balance in the General Fund is expected to increase to $13,777,241 with $10,527,241 in unassigned and $3,250,000 designated (committed or assigned) as budgetary reserves. The total City operating budget amounts to $60,119,900, with total estimated resources available for budget purposes of $50,451,700, for fiscal year 2022/2023. The approved CIP budget for fiscal year 2022/2023 totals $13,995,000 with a five-year CIP investment plan estimated at $36,091,000.

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.

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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF LOMA LINDA
Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of these financial statements. -18-
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 40,941,459 $ 8,723,576 $ 49,665,035 $ Receivables:

Accounts 847,059 1,653,035 2,500,094 Taxes 2,436,504 - 2,436,504 Interest 80,396 16,493 96,889 Lease 3,120,549 77,022 3,197,571 Contracts and loans 17,617,049 - 17,617,049 Internal balances 132,718 (132,718) - Due from other governments 2,199,147 76,995 2,276,142 Inventories 30,427 232,661 263,088 Prepaid items 9,058 10,088 19,146 Loan receivable from the Successor Agency 3,187,693 1,774,071 4,961,764 Land held for resale 2,535,695 - 2,535,695 Restricted assets:

Cash and investments with fiscal agents - 685,433 685,433 Net pension asset 1,681,620 772,550 2,454,170
Capital assets:

Intangible assets, net of amortization 79,813 65,426 145,239 Non-depreciable 17,747,351 1,596,499 19,343,850 Depreciable, net 36,841,019 39,365,396 76,206,415 Total capital assets 54,668,183 41,027,321 95,695,504
Total assets 54,916,527 129,487,557 184,404,084 DEFERRED OUTFLOWS OF RESOURCES Pension related items 5,569,657 3,364,551 8,934,208
OPEB related items 21,985 17,988 39,973 Total deferred outflows of resources 3,382,539 5,591,642 8,974,181 LIABILITIES Accounts payable 1,990,807 781,905 2,772,712
Interest payable - 70,281 70,281 Accrued liabilities 283,648 72,220 355,868 Due to other governments 1,875 - 1,875 Due to other Agency 505,370 - 505,370 Deposits payable 396,726 260,060 656,786 Unearned revenue 429,160 - 429,160
Long-term liabilities - due within one year 299,956 347,771 647,727 Long-term liabilities - due in more than one year:

Advances from the Loma Linda Successor Agency - 18,634,194 18,634,194 Due in more than one year 489,270 4,528,319 5,017,589 Net OPEB liability 133,319 109,079 242,398 Total liabilities 24,803,829 4,530,131 29,333,960 DEFERRED INFLOWS OF RESOURCES Pension related items 2,500,619 1,510,589 4,011,208
OPEB related items 146,611 119,954 266,565 Lease 3,037,178 74,532 3,111,710 Total deferred inflows of resources 1,705,075 5,684,408 7,389,483

NET POSITION
Net investment in capital assets 54,585,683 36,429,645 91,015,328 Restricted for:

Public works projects 22,989,517 - 22,989,517
Public safety 1,591,101 - 1,591,101 Community development 17,937,130 - 17,937,130 General government 1,074,698 - 1,074,698 Debt service 52,583 685,433 738,016 Unrestricted (deficit) 26,633,948 (5,324,916) 21,309,032 Total Net Position $ 124,864,660 $ 31,790,162 $ 156,654,822 Primary Government

CITY OF LOMA LINDA
Statement of Activities
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -19-
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants Total
Primary Government:

Governmental activities:

General government 2,068,926 $ 2,924,322 $ - $ - $ 2,924,322 $ Public safety 10,634,051 4,423,248 3,132,980 - 7,556,228 Community development 2,264,274 1,310,861 151,178 - 1,462,039 Public works 4,811,300 2,065,657 629,412 2,213,685 4,908,754 Interest on long-term debt 2,643 - - - - Total governmental activities 19,781,194 10,724,088 3,913,570 2,213,685 16,851,343 Business-type activities:

Water acquisition 271,277 283,721 - - 283,721 Water enterprise 4,974,785 7,001,145 - - 7,001,145 Sewer capital 3,894,446 5,531,874 - - 5,531,874 Loma Linda Connected Communities 834,694 326,196 - - 326,196 Total business-type activities 9,975,202 13,142,936 - - 13,142,936 Total primary government $ 29,756,396 $ 23,867,024 $ 3,913,570 $ 2,213,685 $ 29,994,279 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, unrestricted
Investment revenue
Loss on sale of assets
Miscellaneous
Transfers in (out)
Total general revenues and transfers
Change in net position
Net position, beginning of year, as restated
Net position, end of year
Functions/Programs
Program Revenues

-20-
Governmental Business-type
Activities Activities Total
$ - 855,396 $ 855,396 $
- (3,077,823) (3,077,823)
- (802,235) (802,235)
- 97,454 97,454
- (2,643) (2,643)
- (2,929,851) (2,929,851)
12,444 - 12,444
2,026,360 - 2,026,360
1,637,428 - 1,637,428
(508,498) - (508,498)
3,167,734 - 3,167,734
(2,929,851) 3,167,734 237,883
- 3,390,738 3,390,738
- 7,951,156 7,951,156
- 1,346,875 1,346,875
- 608,867 608,867
- 328,797 328,797
- 13,642 13,642
- 2,745,301 2,745,301
(64,894) 204,757 139,863
- (27,923) (27,923)
517,022 53,959 570,981
(167,951) 167,951 -
284,177 16,784,120 17,068,297
3,451,911 13,854,269 17,306,180
28,338,251 111,010,391 139,348,642 $ 124,864,660 $ 31,790,162 $ 156,654,822 Net (Expense) Revenue and Changes in Net Position
Primary Government
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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 the San Bernardino County Transportation Association (SBCTA) formerly SANBAG (San Bernardino Associated Governments) that will serve the regional area. SBCTA 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, 2022
The accompanying notes are an integral part of these financial statements. -22-
Loma Linda Regional Traffic
General Housing Authority Development Impact
ASSETS
Cash and investments 15,553,105 $ 1,221,342 $ 11,482,387 $ Receivables:

Accounts 809,546 34,692 - Taxes 2,289,594 - -
Interest 29,165 4,944 21,031 Contract and loans 9,660 17,586,791 - Lease 3,120,549 - - Internal balances 124,738 - - Due from other funds 172,685 - - Due from other governments 193,185 - - Inventories 30,427 - - Prepaid items 8,537 314 - Land held for resale - 2,535,695 - Advances to other funds - - - Loan receivable from Successor Agency - - - Total assets $ 22,341,191 $ 21,383,778 $ 11,503,418 Liabilities, Deferred Inflows of Resources, and
Fund Balances
Liabilities:

Accounts payable 748,440 $ 10,475 $ - $
Accrued liabilities 282,037 - - Due to other funds - - - Due to other governments 1,875 - - Due to other Agency 505,370 - - Deposits payable 366,217 30,509 - Unearned revenue 1,766 - - Advances from other funds - - - Total liabilities 40,984 1,905,705 - Deferred inflows of resources:

Leases 3,037,178 - - Unavailable revenue 386,039 3,903,462 - Total Deferred inflows of resources 3,423,217 3,903,462 - Fund balances (deficit):

Non spendable:

Inventories 30,427 - - Prepaid items 8,537 - - Restricted for:

Cultural and recreational - - - State mandated - - - Public safety - - - Street improvements - - 11,503,418 Storm drains - - - Municipal facilities - - - Air quality management - - - Debt service - - - Low/mod housing programs - 17,439,332 - Committed for:

Emergency contingency 2,000,000 - - Assigned for:

Refuse services 210,124 - - Fire equipment replacement 470,908 - - Sewer loan 124,738 - - Capital equipment replacement 1,250,000 - - Unassigned 12,917,535 - - Total fund balances (deficit) 17,439,332 17,012,269 11,503,418 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 21,383,778 22,341,191 $ 11,503,418 $ Special Revenue Funds

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Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ 895,216 2,446,213 $ 9,343,196 $ 40,941,459 $
- - 2,821 847,059
- - 146,910 2,436,504
1,607 5,574 18,075 80,396
- - 20,598 17,617,049
- - - 3,120,549
- - - 124,738
- 598,489 129 771,303
- - 2,005,962 2,199,147
- - - 30,427
- - 207 9,058
- - - 2,535,695
- 2,804,500 - 2,804,500
- 3,187,693 - 3,187,693
$ 9,042,469 $ 896,823 $ 11,537,898 $ 76,705,577
$ 9,300 5,311 $ 1,217,281 $ 1,990,807 $
- - 1,611 283,648
- - 763,323 763,323
- - - 1,875
- - - 505,370
- - - 396,726
- - 427,394 429,160
2,804,500 - - 2,804,500
2,813,800 5,311 2,409,609 7,175,409
- - - 3,037,178
- 3,187,693 561,132 8,038,326
3,187,693 - 561,132 11,075,504
- - - 30,427
- - - 8,537
- - 282,110 282,110
- - 30,542 30,542
- - 1,591,101 1,591,101
- 5,849,465 4,504,349 21,857,232
- - 1,132,285 1,132,285
- - 1,062,504 1,062,504
- - 12,194 12,194
- - 52,583 52,583
- - 215,688 17,655,020
- -
- - - 2,000,000
- - -
- - - 210,124
- - - 470,908
- - - 124,738
- - - 1,250,000
(1,916,977) - (316,199) 10,684,359
(1,916,977) 5,849,465 8,567,157 58,454,664
$ 896,823 9,042,469 $ 11,537,898 $ 76,705,577 $
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, 2022
The accompanying notes are an integral part of these financial statements. -24-
Fund Balances - Total Governmental Funds 58,454,664 $
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. 54,588,370 79,813
1,681,620
Long-term liabilities are not due and payable in the current period. Therefore, they are not reported in the governmental funds:

Compensated absences (706,726) Net OPEB liability (133,319) Lease liability (82,500) Pension and OPEB related deferred outflows and inflows of resources in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.

Deferred outflows of resources - pension and OPEB related items 5,591,642 Deferred inflows of resources - pension and OPEB related items (2,647,230) 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. 8,038,326 Net Position of Governmental Activities $ 124,864,660
Net pension asset is not a current financial resource, therefore is not recorded in the governmental funds.

Intangible asset net of amortization have not been included as financial resources in governmental fund activity.

CITY OF LOMA LINDA
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -25-
Housing Regional Traffic
General Authority Development Impact

REVENUES
Taxes 12,255,309 $ - $ - $
Licenses and permits 674,337 - -
Intergovernmental 2,792,000 - - Charges for services 4,663,882 1,438 - Use of money and property 317,009 126,541 (103,911) Fines and forfeitures 7,938 - - Miscellaneous 3,618,539 22,400 - Developer fees - - 300,571 Total revenues 150,379 24,329,014 196,660

EXPENDITURES
Current:

General government 3,093,201 - - Public safety 15,388,379 - - Community development 1,974,967 45,783 - Public works 2,988,083 - - Capital outlay 410,991 910 - Debt service:

Principal retirement 13,760 147 -
Interest and fiscal charges 2,546 27 - Total expenditures 46,867 23,871,927 - REVENUES OVER (UNDER) EXPENDITURES 103,512 457,087 196,660 OTHER FINANCING SOURCES (USES) Proceeds from disposal of assets 125,024 - - Transfers in 3,851,791 - - Transfers out (120,000) - - Lease acquisition 93,518 910 - Total other financing sources (uses) 910 3,950,333 - Net change in fund balances 104,422 4,407,420 196,660 FUND BALANCE (DEFICIT) Beginning of year, as restated 12,604,849 17,334,910 11,306,758 End of year $ 17,012,269 $ 17,439,332 $ 11,503,418 Special Revenue Funds
-26-
Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ - - $ 1,379,696 $ 13,635,005 $
- - - 674,337
- - 5,651,940 8,443,940
- - 36,019 4,701,339
(7,921) 1,045,628 (79,772) 1,297,574
- - 69,852 77,790
- - 18 3,640,957
405,340 - 289,705 995,616
397,419 1,045,628 7,347,458 33,466,558
- - 314 3,093,515
- - 41,358 15,429,737
96,216 - 707,305 2,824,271
- 162,323 562,937 3,713,343
481,059 866,099 3,575,160 5,334,219
- - 382 14,289
- - 70 2,643
577,275 1,028,422 4,887,526 30,412,017
(179,856) 17,206 2,459,932 3,054,541
- - - 125,024
- 33,431 120,000 4,005,222
- - (3,717,271) (3,837,271)
- - 2,361 96,789
- 33,431 (3,594,910) 389,764
(179,856) 50,637 (1,134,978) 3,444,305
(1,737,121) 5,798,828 9,702,135 55,010,359 $ (1,916,977) 5,849,465 $ 8,567,157 $ 58,454,664 $ 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 For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -27-
Net change in Fund Balance - Total Governmental Funds 3,444,305 $ 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 3,684,306 $
Lease acquisitions 96,789 Loss on disposal of capital asset not fully depreciated (152,947) Amortization Expenses (16,976) Depreciation expense (1,919,785) 1,691,387 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 8,583,132 OPEB related net adjustments 9,280 Lease payments 14,289 JPIA insurance rolling retro increase 38,215 8,644,916 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. 44,784
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. 28,877 Change in Net Position of Governmental Activities $ 13,854,269 -28-
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, 2022
The accompanying notes are an integral part of these financial statements. -29-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
ASSETS
Current assets:

Cash and cash equivalents 3,477,740 $ 2,614,253 $ 2,428,492 $ 203,091 $ 8,723,576 $ Receivables:

Accounts - 841,020 768,790 43,225 1,653,035
Interest 6,569 5,282 4,261 381 16,493 Lease - 77,022 - - 77,022 Inventories - 232,087 574 - 232,661 Due from other funds - 96,646 - 203 96,849 Due from other governments - 40,146 36,849 - 76,995 Prepaid items - 8,831 1,257 - 10,088 Total current assets 3,484,309 3,915,287 3,240,223 246,900 10,886,719 Noncurrent assets:

Advances to other funds - 1,152,395 - - 1,152,395 Loan receivable from Successor Agency 1,774,071 - - - 1,774,071 Restricted assets:

Cash and investments with fiscal agents - 685,433 - - 685,433 Net pension asset - 536,055 204,962 31,533 772,550 Capital assets:

Intangible assets, net of amortization - 41,756 23,670 - 65,426 Non-depreciable - 1,592,699 3,800 - 1,596,499 Depreciable, net - 32,412,996 2,952,561 3,999,839 39,365,396 Total capital assets - 34,047,451 2,980,031 3,999,839 41,027,321 Total noncurrent assets 1,774,071 36,421,334 3,184,993 4,031,372 45,411,770 Total assets 40,336,621 5,258,380 6,425,216 4,278,272 56,298,489 DEFERRED OUTFLOWS OF RESOURCES Pension related items - 2,334,586 892,636 137,329 3,364,551 OPEB related items - 10,793 5,217 1,978 17,988 Total deferred outflows of resources - 2,345,379 897,853 139,307 3,382,539 LIABILITIES Current liabilities:

Accounts payable 15,237 182,755 568,132 15,781 781,905
Interest payable - Bonds - 70,208 73 - 70,281 Accrued liabilities - 53,977 17,411 832 72,220 Deposits payable - 72,721 174,719 12,620 260,060 Due to other funds - 1,450 102,929 450 104,829 Long-term debt - due within one year - 321,456 25,455 860 347,771 Total current liabilities 15,237 702,567 888,719 30,543 1,637,066 Noncurrent liabilities:

Advances from other funds - - 1,152,395 - 1,152,395 Advances from Loma Linda Successor Agency - - - 18,634,194 18,634,194 Internal balances (Note 4) - - 124,738 - 124,738 Long-term debt - due in more than one year - 4,452,727 73,042 2,550 4,528,319 Net OPEB liability - 65,447 31,633 11,999 109,079 Total noncurrent liabilities - 4,518,174 1,381,808 18,648,743 24,548,725 Total liabilities 15,237 5,220,741 2,270,527 18,679,286 26,185,791

DEFERRED INFLOWS OF RESOURCES
Pension related items - 1,048,163 400,768 61,658 1,510,589 OPEB related items - 71,972 34,787 13,195 119,954 Lease - 74,532 - - 74,532 Total deferred inflows of resources - 1,194,667 435,555 74,853 1,705,075 NET POSITION (DEFICIT) Net investment in capital assets - 29,474,136 2,955,670 3,999,839 36,429,645 Restricted for debt service - 685,433 - - 685,433 Unrestricted 5,243,143 6,107,023 1,661,317 (18,336,399) (5,324,916) Total net position (deficit) $ 36,266,592 5,243,143 $ 4,616,987 $ (14,336,560) $ 31,790,162 $ Enterprise Funds

CITY OF LOMA LINDA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -30-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total

OPERATING REVENUES
Charges for services 283,721 $ 7,001,145 $ 5,531,874 $ 326,196 $ 13,142,936 $ Miscellaneous - 447,348 876 - 448,224 Total operating revenues 7,448,493 283,721 5,532,750 326,196 13,591,160 OPERATING EXPENSES Treatment - - 3,914,457 - 3,914,457 Cost of sales and services 271,277 3,496,061 - 271,681 4,039,019 Administration and general - 2,079,646 659,462 13,867 2,752,975 Pension adjustment - (2,240,911) (849,324) (144,266) (3,234,501) Depreciation and amortization - 1,501,300 168,758 131,531 1,801,589 Total operating expenses 4,836,096 271,277 3,893,353 272,813 9,273,539 Operating change in net position 2,612,397 12,444 1,639,397 53,383 4,317,621 NONOPERATING REVENUES (EXPENSES) Interest revenue (22,859) (17,237) (22,941) (1,857) (64,894) Interest expense - (138,689) (1,093) (561,881) (701,663) Lease income - 68,798 - - 68,798 Net nonoperating revenues (expenses) (87,128) (22,859) (24,034) (563,738) (697,759) Change in net position (deficit) before transfers 2,525,269 (10,415) 1,615,363 (510,355) 3,619,862 TRANSFERS Transfer in - 1,298,108 - - 1,298,108 Transfer out (1,331,539) (53,397) (81,123) - (1,466,059) Total transfers 1,244,711 (1,331,539) (81,123) - (167,951) Change in net position (1,341,954) 3,769,980 1,534,240 (510,355) 3,451,911 NET POSITION (DEFICIT) Beginning of year 6,585,097 32,496,612 3,082,747 (13,826,205) 28,338,251 End of year 5,243,143 $ 36,266,592 $ 4,616,987 $ (14,336,560) $ 31,790,162 $ Enterprise Funds

CITY OF LOMA LINDA
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -31-
Loma Linda Water Water Sewer Connected Acquisition Enterprise Capital Communities Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 283,721 $ 7,371,954 $ 5,433,026 $ 320,058 $ 13,408,759 $ Cash payments to suppliers for goods and services (943,212) (3,521,118) (3,904,232) (278,645) (8,647,207) Cash payments to employees for services - (2,305,684) (753,426) (29,470) (3,088,580) Net cash provided (used) by operating activities 1,545,152 (659,491) 775,368 11,943 1,672,972 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Proceeds (repayment) of due to/from other funds - (153,980) 102,934 (2,719) (53,765) Proceeds from (payments to) other governmental entities - (16,131) (14,185) 1,428 (28,888) Transfers in - 1,298,108 - - 1,298,108 Transfers out (1,331,539) (53,397) (81,123) - (1,466,059) Net cash provided (used) by noncapital financing activities (1,331,539) 1,074,600 7,626 (1,291) (250,604) CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of capital assets - (1,650,030) (3,800) - (1,653,830) Proceeds from loan receivable 567,065 - - - 567,065 Lease payments - (6,637) (3,074) - (9,711) Lease receipts - 66,308 - - 66,308 Payments on long-term debt - (238,524) (3,702) (802) (243,028) Interest paid on long-term debt - (144,134) (1,020) - (145,154) Net cash provided (used) by capital and related financing activities (1,973,017) 567,065 (11,596) (802) (1,418,350) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 18,352 13,744 5,018 473 37,587 Change in fair market value of investments (44,271) (34,389) (30,914) (2,585) (112,159) Net cash used by investing activities (20,645) (25,919) (25,896) (2,112) (74,572) Net increase (decrease) in cash and equivalents 626,090 (1,449,884) 745,502 7,738 (70,554) CASH AND CASH EQUIVALENTS Beginning of year 4,927,624 2,673,596 1,682,990 195,353 9,479,563 End of year $ 3,477,740 $ 3,299,686 $ 2,428,492 $ 203,091 $ 9,409,009 Reconciliation to the Statement of Net Position: Cash and cash equivalents 3,477,740 $ 2,614,253 $ 2,428,492 $ 203,091 $ 8,723,576 $ Cash and investments with fiscal agents - 685,433 - - 685,433 Total cash and investments $ 3,299,686 3,477,740 $ 2,428,492 $ 203,091 $ 9,409,009 $ Enterprise Funds

CITY OF LOMA LINDA
Statement of Cash Flows, continued
Proprietary Funds
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -32-
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 12,444 $ 2,612,397 $ 1,639,397 $ 53,383 $ 4,317,621 $ Adjustments to reconcile operating change in net position to net cash provided (used) by operating activities:

Depreciation and amortization - 1,501,300 168,758 131,531 1,801,589 (Increase) decrease in accounts receivable - (74,630) (99,724) (6,138) (180,492) (Increase) decrease in inventories - 9,657 - - 9,657 (Increase) decrease in prepaid items - (3,445) (1,257) - (4,702) (Increase) decrease in deferred outflows of resources - pension and OPEB related - (987,654) (378,267) (58,879) (1,424,800) (Increase) decrease in net pension asset - (536,055) (204,962) (31,533) (772,550) Increase (decrease) in accounts payable (671,935) (45,046) 11,482 (6,246) (711,745) Increase (decrease) in accrued liabilities - 1,844 1,098 51 2,993 Increase (decrease) in deposits payable - 13,777 - (718) 13,059 Increase (decrease) in due unearned revenue - (1,909) - - (1,909) Increase (decrease) in net OPEB liability - (35,712) (17,260) (6,547) (59,519) Increase (decrease) in compensated absences - (11,723) (4,460) (14,819) (31,002) Increase (decrease) in net pension liability - (1,057,942) (404,507) (62,232) (1,524,681) Increase (decrease) in deferred inflows of resources -
pension and OPEB related - 160,293 65,070 14,090 239,453 Total adjustments (671,935) (1,067,245) (864,029) (41,440) (2,644,649) Net cash provided (used) by operating activities $ (659,491) $ 1,545,152 $ 775,368 $ 11,943 $ 1,672,972 NONCASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES Lease acquisition - $ 49,723 $ 27,435 $ - $ 77,158 $
Enterprise Funds
This page intentionally left blank
-33-
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, 2022
The accompanying notes are an integral part of these financial statements. -34-
Private Purpose
Custodial Funds Trust Fund
ASSETS
Cash and investments 101,803 $ 3,858,635 $
Receivables:

Interest - 4,187 Contract and loans - 79,862 Prepaid items - 135,957 Due from other governments - 328 Advances to the City of Loma Linda - 18,634,194
Restricted assets:

Cash and investments with fiscal agents - 27 Total assets 22,713,190 101,803 LIABILITIES Accounts payable 344 16,885
Interest payable - 311,383 Due to other governments - 200,820 Deposits payable 74,470 28,686 2016 Tax Allocation Refunding Bonds - 22,942,827 Loan payable to the City of Loma Linda - 4,961,764 Total liabilities 28,462,365 74,814 DEFERRED INFLOWS OF RESOURCES Gain on debt refunding - 19,236

NET POSITION (DEFICIT)
Restricted for other organizations 26,989 - Net position (deficit) held in trust - (5,768,411) Total net position (deficit) $ 26,989 $ (5,768,411)

CITY OF LOMA LINDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
The accompanying notes are an integral part of these financial statements. -35-
Private Purpose
Custodial Funds Trust Fund

ADDITIONS
Property taxes - $ 4,872,960 $
Use of money and property - 518,280 Miscellaneous 11,635 - Total additions 5,391,240 11,635 DEDUCTIONS General and administrative - 244,539 Miscellaneous 3,247 - Debt service:

Interest and fiscal charges - 785,553 Total deductions 1,030,092 3,247 Change in net position 4,361,148 8,388 NET POSITION (DEFICIT):

Beginning of year 18,601 (10,129,559) End of year $ 26,989 $ (5,768,411) This page intentionally left blank

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-36-
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, 2022
-37-
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, 2022
-38-
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, 2022
-39-
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, 2022
-40-
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 economic resources measurement focus and 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 the San Bernardino County Transportation Authority (SBCTA) former 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, 2022
-41-
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, 2022
-42-
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. Fair 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, leases, 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, 2022
-43-
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, 2022
-44-
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.

Intangible right to use assets arising from lease agreements are recorded at the amount of the initial measurement of the lease liabilities plus any initial direct costs that are ancillary charges necessary to place the lease asset into service.

Intangible right to use assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset.

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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-45-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Compensated Absences, Continued
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.

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 asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. 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.

GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-46-
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, 2021
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
For OPEB-related liability, 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, 2022
-47-
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, 2022
-48-
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. Leases
The City is a lessor for certain leases as detailed in Note 3. The City recognizes a lease receivable and a deferred inflow of resources in the financial statements. The same recognition principle is used in the Government-Wide Financial Statements and Fund Financial Statements.

At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. In subsequent periods, the lease receivable is reduced by the principal portion of lease payments received.

The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflows of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term and lease receipts.  The City uses the estimated incremental borrowing rate as the discount rate for leases when an explicit rate is not provided in the lease agreement.  The lease term includes the noncancellable period of the lease plus periods covered by the City and lessee’s option to extend the lease if the City is reasonably certain based on all relevant factors that the City and lessee will exercise that option.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-49-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued T. Leases, Continued
The City monitors changes in circumstances that would require a remeasurement of its leases, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

U. Implementation of New GASB Pronouncement
Governmental Accounting Standards Board has issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

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, 2022:

Governmental Business-Type Custodial Private Purpose
Activities Activities Funds Trust Fund Totals
Cash and investments 40,941,459 $ 8,723,576 $ 101,803 $ 3,858,635 $ 53,625,473 $ Restricted cash and investments - 685,433 - 27 685,460
Total cash and investments $ 40,941,459 $ 9,409,009 $ 101,803 $ 3,858,662 $ 54,310,933 Government-Wide Statements Fiduciary Funds Statements
The City’s cash and investments at June 30, 2022 in more detail were as follows:

Cash and cash equivalents
Petty cash 1,350 $
Demand deposits 1,364,622 Total cash and cash equivalents 1,365,972 Investments
Local Agency Investment Fund 52,259,501 Total cash and investments 53,625,473 Cash and Investments with Fiscal Agents 685,460 Total cash and investments $ 54,310,933

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-50-
Note 2: CASH AND INVESTMENTS, Continued
A. Deposits
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 fair 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 As of June 30, 2022, the City was a voluntary participant and had $52,259,501 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.

The City’s investments with LAIF at June 30, 2022 included 1.88% of the pooled funds invested in structured notes and asset-backed securities. This is a decrease of 0.43% 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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-51-
Note 2: CASH AND INVESTMENTS, Continued
B. Investments, Continued
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: Less than 1 Year
State of California - Local Agency
Investment Fund $ 52,259,501
Invested Maturities in Years
Credit Risk – As of June 30, 2022, the City’s investments in external investment pools are unrated.

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, $685,460 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, 2022.

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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-52-
Note 2: CASH AND INVESTMENTS, Continued
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, 2022, the City of Loma Linda did not maintain any investments subject to the fair value hierarchy.

Note 3: RECEIVABLES
A. Leases
Facility Lease
In June 2008, the City entered into a four-year agreement with the San Bernardino County Library (County) to lease facilities in the civic center complex to house the local branch library.

The original four-year agreement has been extended several times. The current agreement expires December 2023 with an option to extend the agreement for an additional three years through December 2026. The County is required to make monthly payments ranging from $7,506 to $7,692. The lease has a discount rate of 1.0 percent. As of June 30, 2022, the lease receivable is $411,459 and deferred inflows of resources are $407,056. The City recognized $90,457 of lease revenue during the fiscal year.

Cell Site Leases
The City has entered into seven cell site leases with lease terms ranging from 2 to 21 years through May 2042. The lessees are required to make monthly payments ranging from $2,400 to $6,000, with discount rates ranging from 2.0 percent to 4.0 percent. The lease agreements have up to four extension options, each for five-year terms. As of June 30, 2022, the lease receivable is $2,786,112 and deferred inflows of resources are $2,704,654. The City recognized $225,828 of lease revenue during the fiscal year.

Subsequent to June 30, 2022, the City has amended two of the seven cell site lease agreements to include up to 7 additional extension options, each for five-year terms, that could extend the lease term through March 2065. The City will remeasure the lease receivable and deferred inflow of resources for these agreements in Fiscal Year 2023.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-53-
Note 3: RECEIVABLES, Continued
B. Contracts and Notes Receivable
Contracts and loans receivable consisted of the following at June 30, 2022:

Balance Balance
June 30, 2021 Restatement Additions Deletions June 30, 2022 Big Bear Valley Water Stock 1,075 $ - $ - $ - $ 1,075 $ LL Chamber of Commerce Loan 8,584 - - - 8,584 Deferred Housing Plan 14,556 - - (7,542) 7,014 Developers Loans 13,131,586 400,000 360,080 - 13,891,666 First Time Homebuyers 3,965,456 - - (256,746) 3,708,710 Total $ 17,121,257 $ 400,000 $ 360,080 $ (264,288) $ 17,617,049 Note 4: INTERFUND TRANSACTIONS
A. Fund Financial Statements
Due To/Due From Other Funds - At June 30, 2022, the City had the following due to/from other funds:

Loma Linda
Nonmajor Sewer Connected Water
Due From Other Funds Governmental Funds Capital Communities Enterprise Total Governmental Funds:

General Fund 164,834 $ 6,080 $ 321 $ 1,450 $ 172,685 $
Special Projects Construction 598,489 - - - 598,489 Nonmajor Governmental Funds - - 129 - 129 Enterprise Funds:

Water Enterprise - 96,646 - - 96,646 Loma Linda Connected Communities - 203 - - 203 Total $ 763,323 $ 102,929 $ 450 $ 1,450 $ 868,152 Due to Other Funds
Governmental Proprietary Funds
Funds
The due from in the General Fund is made up of $33,039 from the Community Development Block Grant Fund and $130,923 from the Grant Fund to cover grant related expenditures that have not yet been reimbursed by the granting agencies. The due from the Water Enterprise fund, Sewer Capital fund and Loma Linda Connected Communities is for an end of the year insurance adjustment.

Loan to Sewer Fund - At June 30, 2022, the Sewer Fund had a loan from the General Fund in the amount of $124,738. This loan was fully paid off as of August 31, 2022.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-54-
Note 4: INTERFUND TRANSACTIONS, Continued
A. Fund Financial Statements, Continued
Advances To/From Other Funds - At June 30, 2022, 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. 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.

Transfers – For the year ended June 30, 2022, the City had the following transfers in and out:

Fund receiving transfers Fund making transfers Amount
General Fund Nonmajor Governmental Funds 3,717,271 $
Sewer Capital 81,123 Water Enterprise 53,397
Special Projects Construction Water Acquisition 33,431
Nonmajor Governmental Funds General Fund 120,000 Water Enterprise Water Acquisition 1,298,108 Total transfers $ 5,303,330 Certain nonmajor governmental funds made payments in the amount of $3,717,271 to the General Fund for street maintenance and to cover costs, of this amount, $2,928,307 was from ARPA funding to cover public safety costs. The General Fund transferred $120,000 to a nonmajor fund to assist with Landscape Maintenance fund. Transfers of $1,298,108 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, 2022
-55-
Note 5: CAPITAL ASSETS
The following is a summary of capital assets for the governmental activities:

Beginning Ending
Balance Additions Adjustments Deletions Balance
Governmental activities:

Capital assets, not being depreciated:

Land 14,651,396 $ - $ - $ - $ 14,651,396 $
Construction in progress 1,251,396 2,198,295 (340,836) (12,900) 3,095,955 Total capital assets, not being depreciated 15,902,792 2,198,295 (340,836) (12,900) 17,747,351 Capital assets, being depreciated:

Structures and improvements 24,269,036 1,146,991 - - 25,416,027 Machinery and equipment 9,781,922 222,099 - (382,640) 9,621,381 Infrastructure 54,528,041 567,446 - 55,095,487
Total capital assets, being depreciated 88,578,999 1,936,536 - (382,640) 90,132,895 Less accumulated depreciation/amortization for:

Structures and improvements (17,171,404) (583,287) - - (17,754,691) Machinery and equipment (5,946,802) (483,741) - 229,693 (6,200,850) Infrastructure (28,483,578) (852,757) - - (29,336,335)
Total accumulated depreciation (51,601,784) (1,919,785) - 229,693 (53,291,876) Total capital assets, being depreciated net 36,977,215 16,751 - (152,947) 36,841,019 Intangible assets, being amortized:

Intangible right to use asset - 96,789 - 96,789 Accumulated amortization - (16,976) - (16,976) Intangible assets, net of amortization: - 79,813 - - 79,813 Governmental activities capital assets, net 52,880,007 $ 2,294,859 $ (340,836) $ (165,847) $ 54,668,183 $ Depreciation and amortization expense was charged to functions of the primary government's governmental activities as follows:

Governmental activities: Depreciation Amortization Total General government 156,500 $ 3,788 $ 160,288 $
Public safety 397,521 3,784 401,305 Community development 315,382 4,749 320,131 Public works 1,050,382 4,655 1,055,037 Total $ 1,919,785 $ 16,976 $ 1,936,761

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-56-
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 183,777 147,982 (123,024) 208,735 Total capital assets, not being depreciated 1,571,541 147,982 (123,024) 1,596,499 Capital assets, being depreciated:

Structures and improvements 26,968,959 - - 26,968,959 Machinery and equipment 6,581,946 31,551 - 6,613,497 Infrastructure 43,788,732 1,597,320 - 45,386,052 Total capital assets, being depreciated 77,339,637 1,628,871 - 78,968,508 Less accumulated depreciation for:

Structures and improvements (21,155,727) (432,992) - (21,588,719) Machinery and equipment (5,374,430) (183,411) - (5,557,841) Infrastructure (11,283,099) (1,173,453) - (12,456,552) Total accumulated depreciation (37,813,256) (1,789,856) - (39,603,112) Total capital assets, being depreciated net 39,526,381 (160,985) - 39,365,396 Intangible assets, being amortized:

Intangible right to use asset - 77,159 - 77,159 Accumulated amortization - (11,733) - (11,733) Intangible assets, net of amortization: - 65,426 - 65,426 Business-type activities capital assets, net $ 41,097,922 $ 52,423 $ (123,024) $ 41,027,321 Depreciation and amortization expense was charged to functions of the primary government's business-type activities as follows:

Business-type activities: Depreciation Amortization Total Water Enterprise 1,497,534 $ 3,766 $ 1,501,300 $
Sewer Capital 160,791 7,967 168,758 Loma Linda Connected Communities 131,531 - 131,531 Total $ 1,789,856 $ 11,733 $ 1,801,589
Note 6: LONG-TERM LIABILITIES
The following is a summary of long-term debt transactions for the fiscal year ended June 30, 2022:

Beginning Ending Due within
Governmental activities: Balance Additions Deletions Balance One Year Insurance Retrospective Deposit 38,215 $ - $ (38,215) $ - $ - $ Compensated absences 751,510 802,596 (847,380) 706,726 282,369 Lease liability - 96,789 (14,289) 82,500 17,587 Total governmental activities $ 789,725 $ 899,385 $ (899,884) $ 789,226 $ 299,956

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-57-
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 4,710,000 - (230,000) 4,480,000 235,000 Unamortized bond premium 43,069 - (2,840) 40,229 2,840 Insurance Retrospective Deposit 13,028 - (13,028) - - Compensated absences 309,415 269,406 (300,407) 278,414 85,987 Lease liability - 77,158 (9,711) 67,447 13,944 Total business-type activities $ 346,564 5,085,512 $ (555,986) $ 4,876,090 $ 347,771 $ A. Governmental Activities Long-Term Debt
For the governmental activities, compensated absences, the OPEB liability and the net pension asset (if any) are generally liquidated primarily by the General Fund, with a small portion by the Street Lighting District and Land Maintenance District.

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 final payment on this liability was made during fiscal year ending June 30, 2022.

Compensated Absences
The City’s liability for vested and unpaid compensated absences in the governmental activities has been accrued and amounted to $706,726. 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.

Lease Liabilities
The City has entered into two agreements to lease certain office equipment. The leases have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The first agreement to lease City-wide printers and copy machines was effective as of July 1, 2021. The lease requires 63 monthly payments of $2,334. The lease liability is measured at a discount rate of 3.5%. An initial lease liability was recorded in the amount of $83,653. As of June 30, 2022, the value of the lease liability is $70,126 and the net book value of the right to use asset is $67,719. The right to use asset is disclosed in Note 5. Capital Assets.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-58-
Note 6: LONG-TERM LIABILITIES, Continued
A. Governmental Activities Long-Term Debt Continued
The second agreement to lease a wide format printer was effective as of February 1, 2022. The lease requires 63 monthly payments of $698. The lease liability is measured at a discount rate of 3.8%. An initial lease liability was recorded in the amount of $13,136. As of June 30, 2022, the value of the lease liability is $12,374 and the net book value of the right to use asset is $12,094. The right to use asset is disclosed in Note 5. Capital Assets.

As of June 30, 2022, the City had a total outstanding lease liability of $82,500 and right to use asset of $79,813, net of amortization.

Estimated future lease liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2023 17,587 $ 2,618 $ 20,205 $
2024 17,966 1,993 19,959 2025 18,623 1,333 19,956
2026 19,299 656 19,955
2027 9,025 89 9,114 Total $ 82,500 $ 6,689 $ 89,189
Governmental Lease liability
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, 2022 was $10,000. Interest no longer accrues on these bonds. 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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-59-
Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt (continued)
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, 2022 were as follows:

Year Ending
June 30, Principal Interest Total
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 270,000 102,850 372,850
2028-2032 1,490,000 384,013 1,874,013 2033-2037 1,725,000 158,250 1,883,250 Total $ 4,480,000 $ 1,151,369 $ 5,631,369
2016 Water Revenue Refunding Bonds
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 final payment on this liability was made during fiscal year ending June 30, 2022.

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 $278,414 at June 30, 2022. 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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-60-
Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt (continued)
Lease Liabilities
The City has entered into two agreements to lease certain office equipment. The leases have been recorded at the present value of the future minimum lease payments as of the date of their inception.

The first agreement to lease City-wide printers and copy machines was effective as of July 1, 2021. The lease requires 63 monthly payments of $2,334. The lease liability is measured at a discount rate of 3.5%. An initial lease liability was recorded in the amount of $50,489. As of June 30, 2022, the value of the lease liability $42,325 and the net book value of the right to use asset is $40,873. The right to use asset is disclosed in Note 5. Capital Assets.

The second agreement to lease a wide format printer was effective as of February 1, 2022. The lease requires 63 monthly payments of $698. The lease liability is measured at a discount rate of 3.8%. An initial lease liability was recorded in the amount of $26,670. As of June 30, 2022, the value of the lease liability $25,122 and the net book value of the right to use asset is $24,553. The right to use asset is disclosed in Note 5. Capital Assets.

As of June 30, 2022, the City had a total outstanding lease liability of $67,447 and right to use asset of $65,426, net of amortization.

Estimated future lease liability requirements are as follows:

Year Ending
June 30, Principal Interest Total
2023 13,944 $ 2,142 $ 16,086 $
2024 14,699 1,630 16,329 2025 15,237 1,091 16,328
2026 15,790 536 16,326
2027 7,777 73 7,850 Total $ 67,447 $ 5,472 $ 72,919
Business-Type Lease liability

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-61-
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, 2022
Series 2008 A 9,000,000 $ 990,000 $
Multifamily Housing Revenue Bonds Original Outstanding at Loma Linda Commons Project Amount June 30, 2022
Series 2009 A 13,275,000 $ 6,207,572.85 $
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 four rate plans (two miscellaneous and two 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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-62-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
A. General Information about the Pension Plan, Continued 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, 2022 are summarized as follows:

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0 % @ 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 1.4% to 2.4% 1.0% to 2.5% Required employer contribution rates 10.88% 7.59%
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 50-57
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% Required employer contribution rates 21.79% 13.13%
Miscellaneous
Safety

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-63-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
A. General Information about the Pension Plan, Continued 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, 2022, were $3,090,643. The actual employer payments of $1,659,841 made to CalPERS by the City during the measurement period ended June 30, 2021, differed from the City’s proportionate share of the employer’s contributions of $3,451,582 by ($1,791,741), which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

B. Net Pension Asset
The City’s net pension asset for the Plan is measured as the total pension asset, less the pension plan’s fiduciary net position. The net pension asset of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension asset is as follows.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-64-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Asset, Continued
Actuarial Methods and Assumptions Used to Determine Total Pension Asset All other actuarial assumptions used in the June 30, 2020 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.

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68 Asset Valuation Method Fair 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 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
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale 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.

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, 2022
-65-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Asset, 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
Assumed
Asset
Allocation
Real Return
Years 1 - 102
Real Return
Years 11+3
Public equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets - 0.77% 1.81%
Private equity 8.0% 6.30% 7.23%
Real assets 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
There were no change of assumptions for measurement date June 30, 2021.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-66-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Asset, 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.

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

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.80% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.

This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-67-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Asset
The following table shows the Plan’s proportionate share of the net pension asset over the measurement period.

Plan Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Plan Net Pension
Liability (Asset)
(c) = (a) - (b)
Balance at: 6/30/2020 (VD) 69,745,363 $ 62,752,404 $ 6,992,959 $ Balance at: 6/30/2021 (MD) 72,129,684 74,583,854 (2,454,170) Net changes during 2020-21 $ 2,384,321 $ 11,831,450 $ (9,447,129) Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).

The City’s proportion of the net pension asset 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.

The City’s proportionate share of the net pension asset for the total Plan as of June 30, 2020 and 2021 was as follows:

Proportionate Share - June 30, 2020 0.064271%
Proportionate Share - June 30, 2021 (0.045378%)
Change - Increase (Decrease) (0.109649%)
Sensitivity of the Proportionate Share of the Net Pension Asset to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension asset for the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension asset would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate + 1%
(8.15%)
$ (2,454,170) 7,161,671 $ (10,377,805) $

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-68-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Asset, Continued
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension asset 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
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, 2021 is 3.7 years, which was obtained by dividing the total service years of 561,622 (the sum of remaining service lifetimes of the active employees) by 150,648 (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, 2020), the City’s net pension asset was $6,992,959. For the measurement period ending June 30, 2021 (the measurement date), the City recognized a pension revenue of $9,026,988.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-69-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, Continued
As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
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 1,593,977 2,376,992 Pension Contributions Made Subsequent to the Measurement Date
$ 8,934,208 $ 4,011,208
$ 326,729
- 3,090,643
- 1,898,620
1,307,487 2,350,968
These amounts above are net of outflows and inflow recognized in the 2020-21 measurement period expense. Contributions subsequent to the measurement date of $3,090,643 reported with deferred outflows of resources will be recognized as a reduction of the net pension asset 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:

Fiscal Year
Ended June 30:

Deferred
Outflows/(Inflows)
of Resources
2023 443,932 $
2024 381,737 2025 482,613
2026 524,075
2027 - Thereafter -
E. Payable to the Pension Plan
At June 30, 2022, the City reported a payable of $2,618 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-70-
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, 2021 actuarial valuation (measurement date 6/30/2021), 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 16 Total 102
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 liability 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, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-71-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Net OPEB Liability, Continued
Discount Rate 6.75%
Inflation 2.50% per year
Salary Increases 2.75% per year
Investment Rate of Return 6.75% per year
Mortality Rate (1)
2017 CalPERS Active Mortality for Miscellaneous and Schools Employees;
2017 CalPERS Mortality for Active Safety Employees
Pre-Retirement Turnover Healthcare Trend Rate (2) 2017 CalPERS Rates for Miscellaneous Employees; 2017 CalPERS Rates for Sworn Fire Employees
Actuarial Assumptions:
(1) The mortality assumptions are based on the 2017 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 2017 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, 2022
-72-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Discount Rate
The discount rate used to measure the total OPEB liability was 6.75% 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, 2021
(Valuation Date June 30, 2021) 889,701 $ 515,041 $ 374,660 $ Changes recognized for the measurement period:

Service cost 24,173 - 24,173
Interest 61,981 141,595 (79,614) Benefit payments (32,698) (32,698) - Administrative expenses - (194) 194 Employer contributions to trust - 32,698 (32,698) Experience (gains)/losses (88,498) - (88,498) Changes in assumptions 44,181 - 44,181 Net Changes 141,401 9,139 (132,262) Balance at June 30, 2022 (Measurement Date June 30, 2021) $ 898,840 $ 656,442 $ 242,398 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

Current
1% Decrease Discount Rate 1% Increase

5.75% 6.75% 7.75%
Net OPEB Liability 377,026 $ 242,398 $ 132,397 $

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-73-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2021:

Current
1% Decrease Healthcare Cost Trend Rates 1% Increase
Net OPEB Liability 115,797 $ 242,398 $ 401,563 $
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, 2022, the City recognized OPEB expense of $15,823. As of June 30, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes of assumptions $ 39,973 $ - Differences between expected and actual experience - 193,578 Net difference between projected and actual earnings on OPEB plan investments - 72,987 Total $ 39,973 $ 266,565

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-74-
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
2023 (34,480) $
2024 (33,653) 2025 (34,646)
2026 (38,076)
2027 (16,967)
Thereafter: (68,770)
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, 2022
-75-
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 $100,000 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 $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 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 $50 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/.

Primary 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 $75,000 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 $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2021-22, 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, 2022
-76-
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 $250,000 deductible. The Authority has an aggregate limit of $20 million.

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 $59,979,216. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

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 Cityowned 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 2021-22.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-77-
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, 2022, 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, 2022
-78-
Note 12: JOINT VENTURES
A. 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, Victorville and the Apple Valley Fire Protection District, Chino Valley and the San Bernardino County Fire District. 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 2022, the City of Loma Linda’s contribution totaled $294,574. 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, 2022, the following governmental funds had deficit fund balances:

Fund Type Deficit
Major funds:

Park Development Capital Projects (1,916,977) $
Nonmajor governmental funds:

Community Development Block Grant Special Revenue (33,209) Grant Fund Special Revenue (141,514) Citizens Option for Public Safety Fund Special Revenue (5,244) Federal/State Construction Capital Projects (136,232) Funds
Park Development – The Park Development has an accumulated deficit balance of $1,916,977 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 $33,209 which resulted from grant reimbursement not received prior to the end of the year, therefore declaring it unavailable revenue.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-79-
Note 13: DEFICIT FUND BALANCES, Continued
Grant Fund – The Grant fund has a deficit balance of $141,514 which resulted from grant reimbursements not received prior to the end of the year, therefore declaring it unavailable revenue.

Citizens Option for Public Safety Fund – The Citizens Option for Public Safety Fund fund has a deficit balance of $5,244 which resulted from the negative fair value adjustment of the fund’s investments.

Federal/State Construction – The Federal/State Construction fund has a deficit balance of $136,232 which resulted from grant reimbursements not received prior to the end of the year, therefore declaring it unavailable revenue.

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, 2022 are as follows:

General Fund 242,445 $
Special Projects Construction 53,240 Water Acquisition 94,121 Water Enterprise 44,865
Non-major governmental funds 1,695,192 Significant Encumbrances as of June 30, 2022 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, 2022, 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.

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-80-
Note 15: COMMITMENTS AND CONTINGENCIES, Continued
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.

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, 2022
-81-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt
The bonded debt of the Successor Agency as of June 30, 2022 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, 2022
-82-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt, Continued
The annual requirements for the 2016 Tax Allocation Refunding Bonds, Series A and B outstanding at June 30, 2022 were as follows:

Year Ending
June 30, Principal Interest Total
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 365,000 89,300 454,300
2028-2031 1,640,000 169,000 1,809,000
Total 3,715,000 $ 776,700 $ 4,491,700 $
2016 Successor Agency - Series A
Year Ending
June 30, Principal Interest Total
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 2,240,000 346,326 2,586,326
2028-2031 9,015,000 610,839 9,625,839
Total $ 19,240,000 $ 2,900,574 $ 22,140,574
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, 2022
-83-
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 was sold in December 2020.

There are no additional properties.

The following is a summary of the bonded debt activity of the Successor Agency as of June 30, 2022:

Beginning Ending Due within
TAX ALLOCATION BONDS Balance Additions Deletions Balance One Year 2016 Tax Allocation Refunding Bonds Series A 4,140,000 $ - $ (425,000) $ 3,715,000 $ 435,000 $ 2016 Tax Allocation Refunding Bonds Series B 21,085,000 - (1,845,000) 19,240,000 1,890,000 Unamortized bond premium 434,234 - (46,113) 388,121 46,113 Unamortized bond discount (447,854) - 47,560 (400,294) (47,560) Loan payable to the City of Loma Linda - direct borrowings 6,582,322 - (1,620,558) 4,961,764 1,639,148 Total 31,793,702 $ - $ (3,889,111) $ 27,904,591 $ 3,962,701 $ The following amount was reported as deferred inflow of resources:

Beginning Ending Due within
Balance Additions Deletions Balance One Year
Deferred inflows of resources:

Unamortized gain on refunding 21,521 $ - (2,285) $ 19,236 $ - $

CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2022
-84-
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 was for a five-year term commencing July 1, 2016 “Commencement Date” for law enforcement services, and January 1, 2017 for fire suppression services. Both agreements for law enforcement services and fire suppression services were amended effective as of July 1, 2020, under similar terms and conditions as the original agreements.

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 a mitigation fee equal to the amount actually charged to the City by the San Bernardino County Sheriff’s Department for such services. The mitigation fee shall be payable to the City on the first day of each month. Any changes in related expenses outlined in agreement will be billed quarterly.

The City shall credit the Medical Center for the mitigation fee to the extent the increase in the City’s portion of sales taxes generated by the Loma Linda Mercantile for the prior fiscal year exceeds $850,000, but not to exceed the actual cost incurred by the City for the agreed upon services. Such credits may be adjusted for any changes to the allocation of sales taxes.

As of June 30, 2022, the City has accrued a liability due to the Medical Center in the amount of $505,370, 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, 2022
-85-
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, 2022, was determined as follows:

Governmental
Activities
Capital assets, net of accumulated depreciation 54,668,183 $ Less: lease liability (82,500) Net investment in capital assets $ 54,585,683 Loma Linda Total
Water Sewer Connected Enterprise
Enterprise Capital Communities Funds
Capital assets, net of accumulated depreciation 34,047,451 $ 2,980,031 $ 3,999,839 $ 41,027,321 $ Less capital related debt balance:

Outstanding principal balance of 2016 Water Revenue Refunding Bond (4,480,000) - - (4,480,000) Outstnding principal balance of 1978 Water Bonds (General Obligation) (10,000) (10,000) Outstanding unamortized bond premium balance (40,229) - - (40,229) Lease liability (43,086) (24,361) - (67,447)
Net investment in capital assets $29,474,136 $2,955,670 $ 3,999,839 $36,429,645 Business-type Activities
Note 19: PRIOR PERIOD RESTATEMENT
Beginning fund balance and net position has been restated to properly record a notes receivable from a developer as follows:

Governmental Funds
Housing Authority
Fund balance, beginning of year, as previously reported 16,934,910 $ Prior period restatement 400,000 Fund balance, beginning of year, as restated $ 17,334,910 Governmental Activities
Net position, beginning of year, as previously reported 110,610,391 $ Prior period restatement 400,000 Net position, beginning of year, as restated $ 111,010,391 This page intentionally left blank
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REQUIRED SUPPLEMENTARY INFORMATION

CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2022
-87-

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, Asset Forfeiture Fund and the Water Bond Redemption Fund.

C. Budgets
Excess of expenditures over appropriations are as follows:

Fund Appropriated Expended Excess
General Fund:

General government - city council 174,300 $ 181,978 $ (7,678) $ Community development - parks 1,083,600 1,118,027 (34,427) Public works - refuse 1,100,700 1,357,360 (256,660) Nonmajor Funds:

CASp CERT & Training - 534 (534) Measure I 423,000 424,222 (1,222) Landscape Maintenance District 534,685 558,891 (24,206) Traffic Impact 151,300 167,344 (16,044) Federal/State Construction 192,600 192,620 (20) Loma Linda Financing Authority 300 314 (14)

CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2022
-88-

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 9,169,300 $ 11,215,300 $ 12,255,309 $ 1,040,009 $ Licenses and permits 442,100 644,700 674,337 29,637
Intergovernmental 5,520,100 2,794,000 2,792,000 (2,000) Charges for services 3,849,100 4,037,900 4,663,882 625,982 Use of money and property 444,000 404,000 317,009 (86,991) Fines and forfeitures 5,000 5,000 7,938 2,938 Miscellaneous 2,949,400 3,663,900 3,618,539 (45,361) Total revenues 22,764,800 22,379,000 24,329,014 1,564,214 EXPENDITURES Current:

General government
City council 166,000 174,300 181,978 (7,678) City clerk 255,800 230,000 195,210 34,790 City manager 381,300 398,800 355,661 43,139 Finance 557,400 582,300 517,918 64,382
Information system 212,000 173,655 161,721 11,934
Senior Center 94,300 94,500 40,078 54,422
General government 625,700 2,681,800 1,640,635 1,041,165 Public safety Parking control 235,400 240,600 221,941 18,659
Fire prevention 349,500 360,500 323,463 37,037
Fire and rescue services 7,088,400 8,143,400 8,064,358 79,042 Disaster preparedness 360,400 259,500 240,003 19,497
Police 6,440,800 6,541,400 6,538,614 2,786 Community development Planning 430,100 380,350 282,758 97,592
Planning - building and safety 325,900 307,900 274,237 33,663 Code enforcement 280,200 309,200 299,945 9,255 Parks 1,050,900 1,083,600 1,118,027 (34,427) Public works Traffic safety 192,400 216,000 191,380 24,620 Engineering 320,900 362,700 277,491 85,209 Street maintenance 716,700 855,700 751,731 103,969 Facilities maintenance 380,100 416,100 384,481 31,619 Refuse 1,092,800 1,100,700 1,357,360 (256,660) Recycling 25,400 39,500 26,113 13,387 Vehicle maintenance - 400 (473) 873 Capital outlay 606,300 755,795 410,991 344,804 Debt service:

Principal retirement - - 13,760 (13,760)
Interest and fiscal charges - - 2,546 (2,546) Total expenditures 25,708,700 22,188,700 23,871,927 1,836,773 REVENUES OVER (UNDER) EXPENDITURES (2,943,900) 190,300 457,087 3,400,987 OTHER FINANCING SOURCES (USES) Proceeds from disposal of assets - - 125,024 125,024 Transfers in 751,400 3,729,900 3,851,791 121,891 Transfers out (120,000) (120,000) (120,000) - Lease acquisition - - 93,518 93,518 Total other financing sources (uses) 3,609,900 631,400 3,950,333 340,433 Net change in fund balance 666,000 821,700 4,407,420 3,741,420 FUND BALANCE (DEFICIT) Beginning of year 12,604,849 12,604,849 12,604,849 - End of year $ 13,426,549 $ 13,270,849 $ 17,012,269 $ 3,741,420 Budgeted Amounts

CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2022
-89-

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 178,000 169,600 126,541 (43,059) Miscellaneous 500 2,000 22,400 20,400 Total revenues 173,000 179,900 150,379 (22,621) EXPENDITURES Current:

Community development 115,626 116,326 45,783 70,543 Capital outlay 50,500 50,500 910 49,590 Debt service:

Principal retirement 147 147 147 -
Interest and fiscal charges 27 27 27 - Total expenditures 167,000 166,300 46,867 120,133 REVENUES OVER (UNDER) EXPENDITURES 6,000 13,600 103,512 97,512 OTHER FINANCING SOURCES (USES) Lease acquisition - - 910 910 Total other financing sources (uses) - - 910 910 Net change in fund balance 6,000 13,600 104,422 98,422 FUND BALANCE (DEFICIT) Beginning of year, as restated 17,334,910 17,334,910 17,334,910 - End of year $ 17,348,510 $ 17,340,910 $ 17,439,332 $ 98,422 Budgeted Amounts

CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2022
-90-

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 50,000 $ 25,000 $ (103,911) $ (128,911) $ Developer fees 788,600 767,600 300,571 (467,029) Total revenues 792,600 838,600 196,660 (595,940) REVENUES OVER (UNDER) EXPENDITURES 792,600 838,600 196,660 (595,940) Net change in fund balance 792,600 838,600 196,660 (595,940) FUND BALANCE (DEFICIT) Beginning of year 11,306,758 11,306,758 11,306,758 - End of year 12,145,358 $ 12,099,358 $ 11,503,418 $ (595,940) $ Budgeted Amounts

CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2022
-91-

2. SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS – LAST TEN YEARS* Measurement Period 2017 2018 2019 2020 2021
Total OPEB Liability
Service Cost 18,964 $ 19,486 $ 20,022 $ 23,526 $ 24,173 $ Interest on the Total OPEB Liability 56,269 59,253 62,267 58,442 61,981 Changes in assumptions - - (23,320) - 44,181 Experience gains/(losses) - - (104,915) (30,790) (88,498) Benefit payments (31,110) (35,165) (13,410) - (32,698) Net change in Total OPEB Liability 43,574 44,123 (59,356) 51,178 9,139 Total OPEB Liability - beginning 854,305 810,182 897,879 838,523 889,701 Total OPEB Liability - ending (a) 854,305 897,879 838,523 889,701 898,840 Plan Fiduciary Net Position
Employer contributions as benefits payments 120,160 35,165 23,320 - - Investment income 29,955 24,458 28,324 16,215 141,595
Investment gains/losses - 4,140 (4,955) - - Actual benefit payments from employer (31,110) (35,165) (23,320) - (32,698) Administrative expense (156) (651) (81) (223) (194) Employer contributions to trust - - 54,000 44,095 32,698 Net change in Plan Fiduciary Net Position 27,947 118,849 77,288 60,087 141,401 Plan Fiduciary Net Position - beginning 230,870 349,719 377,666 454,954 515,041 Plan Fiduciary Net Position - ending (b) 349,719 377,666 454,954 515,041 656,442 Net OPEB Liability - ending (a) - (b) $ 504,586 $ 520,213 $ 383,569 $ 374,660 $ 242,398 Plan fiduciary net position as a percentage of the total OPEB liability 40.94% 42.06% 54.26% 57.89% 73.03% Covered-employee payroll 5,508,005 $ 5,953,235 $ 6,292,694 $ 6,511,763 $ 6,551,541 $ Net OPEB liability as a percentage of covered-employee payroll 9.16% 8.74% 6.10% 5.75% 3.70% 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, 2022
-92-

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%
2021-22 30,024 (31,000) (976) 6,698,125 0.46%
Notes to schedule:

Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Normal
Inflation 2.5% per annum
Salary Increases
Investment Rate of Return 6.75%, net of OPEB plan investments expense, including inflation.

Retirement Age Retirement rates developed in the 2017 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 2017 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, 2022
-93-

4. SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE PLAN'S NET PENSION

ASSET AND RELATED RATIOS AS OF THE MEASUREMENT DATE
LAST 10 YEARS*
Employer's
Proportionate Pension's Plans
Employer's Share of the Fiduciary Net
Employer's Proportion Collective Net Position as a
Proportion of Share of the Pension Percentage of
the Collective Collective Net Liability (Asset) the Total Net Pension Pension as a Percentage Pension
Liability (Asset)1
Liability (Asset) Covered Payroll of Covered Payroll Liability (Asset) 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% 6,992,959 6,562,966 106.55% 89.97%
6/30/2021 -0.45378% (2,454,170) 6,602,744 -37.17% 103.40% Measurement
Date
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. 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, 2022
-94-

5. SCHEDULE OF PENSION PLAN CONTRIBUTIONS
LAST 10 YEARS*
Contribution in
Relation to the Contributions as
Actuarially actuarially Contribution a Percentage of
Determined Determined Deficiency 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%
2021-22 1,790,643 (3,090,643) (1,300,000) 6,762,128 26.48% * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation.

Notes to Schedule:

Fiscal Year
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2020 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes in Assumptions: There were no assumption changes for 2021. 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.

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SUPPLEMENTARY INFORMATION
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MAJOR GOVERNMENTAL FUNDS BUDGETARY

COMPARISON SCHEDULES

CITY OF LOMA LINDA
Special Projects Construction Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2022
-97-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 1,094,700 $ 1,072,400 $ 1,045,628 $ (26,772) $ Total revenues 1,072,400 1,094,700 1,045,628 (26,772) EXPENDITURES Current:

Public works 200,300 200,300 162,323 37,977 Capital outlay 1,027,300 1,049,300 866,099 183,201 Total expenditures 1,249,600 1,227,600 1,028,422 221,178 REVENUES OVER (UNDER) EXPENDITURES (177,200) (132,900) 17,206 194,406 OTHER FINANCING SOURCES (USES) Transfers in - - 33,431 33,431 Total other financing sources (uses) - - 33,431 33,431 Net change in fund balance (177,200) (132,900) 50,637 227,837 FUND BALANCE (DEFICIT) Beginning of year 5,798,828 5,798,828 5,798,828 - End of year $ 5,665,928 $ 5,621,628 $ 5,849,465 $ 227,837 Budgeted Amounts

CITY OF LOMA LINDA
Park Development Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2022
-98-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 10,000 $ 2,500 $ (7,921) $ (10,421) $ Developer fees 2,123,600 1,929,500 405,340 (1,524,160) Total revenues 1,932,000 2,133,600 397,419 (1,534,581) EXPENDITURES Current:

Community development 122,600 126,600 96,216 30,384 Capital outlay 604,200 710,200 481,059 229,141 Total expenditures 836,800 726,800 577,275 259,525 REVENUES OVER (UNDER) EXPENDITURES 1,095,200 1,406,800 (179,856) (1,275,056) Net change in fund balance 1,095,200 1,406,800 (179,856) (1,275,056) FUND BALANCE (DEFICIT) Beginning of year (1,737,121) (1,737,121) (1,737,121) - End of year $ (330,321) $ (641,921) $ (1,916,977) $ (1,275,056) Budgeted Amounts
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-99-

NONMAJOR GOVERNMENTAL
FUNDS

COMBINING SCHEDULES
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-100-
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. *Note: this fund had no legally adopted budget in FY 2021-2022.

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.
-101-
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 2021-2022.

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.

American Rescue Plan Act Fund – This fund provides relief to the City for the negative impacts caused from the COVID-19 Pandemic.

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. -102-
Nonmajor Governmental Funds
Capital Projects Funds, Continued
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.

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. *Note: this fund had no legally adopted budget in FY 2021-2022 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, 2022
-103-
Traffic Gas CASp Cert &
Safety Tax Training Measure I
ASSETS
Cash and investments - $ 66,971 $ 30,329 $ 501,227 $
Receivables:

Accounts 2,608 - 213 - Taxes - 135,822 - -
Interest - - - 812
Contract and loans - - - - Due from other funds - - - - Due from other governments 5,403 - - 172,261 Prepaid items - - - - Total assets $ 202,793 8,011 $ 30,542 $ 674,300 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - - $ - $ - $
Accrued liabilities - - - - Due to other funds - - - - Unearned revenue - - - - Total liabilities - - - - DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - 57,610 FUND BALANCE:

Restricted for:

Cultural and recreational - - - - State mandated - - 30,542 - Public safety - - - - Street improvements 8,011 202,793 - 616,690 Storm drains - - - - Municipal facilities - - - - Air quality management - - - - Debt service - - - - Low mod housing programs - - - - Unassigned - - - - Total fund balances (deficit) 202,793 8,011 30,542 616,690 Total liabilities, deferred inflows of resources and fund balance $ 202,793 8,011 $ 30,542 $ 674,300 $
Special Revenue Funds
(Continued)
-104-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 155,904 - $ 78,308 $ 15,218 $
- - - -
5,646 - 5,442 -
324 - 229 23
- - - -
57 - 72 -
- 1,347,232 - 8,188
108 - 99 - $ 1,347,232 $ 162,039 $ 84,150 $ 23,429
$ 18,876 678,228 $ 28,011 $ 3,047 $
266 - 1,345 -
- 422,051 - -
- - - -
19,142 1,100,279 29,356 3,047 112,633 - - 8,188
- - - -
- - - -
- - - -
142,897 134,320 54,794 -
- - - -
- - - -
- - - 12,194
- - - -
- - - -
- - - -
142,897 134,320 54,794 12,194 $ 162,039 1,347,232 $ 84,150 $ 23,429 $ Special Revenue Funds

CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-105-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
ASSETS
Cash and investments 64,224 $ 2 $ - $ - $
Receivables:

Accounts - - - - Taxes - - - -
Interest 118 - - - Contract and loans - - - - Due from other funds - - - - Due from other governments - - 122,712 157,546 Prepaid items - - - - Total assets $ 64,342 $ 2 $ 122,712 $ 157,546

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - - $ 50,140 $ 498 $
Accrued liabilities - - - - Due to other funds - - 73,246 130,923 Unearned revenue - - - 10,093 Total liabilities - - 123,386 141,514 DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - 32,535 157,546 FUND BALANCE:

Restricted for:

Cultural and recreational - - - - State mandated - - - - Public safety - 2 - - Street improvements 64,342 - - - Storm drains - - - - Municipal facilities - - - - Air quality management - - - - Debt service - - - - Low mod housing programs - - - - Unassigned - - (33,209) (141,514) Total fund balances (deficit) 2 64,342 (33,209) (141,514) Total liabilities, deferred inflows of resources and fund balance $ 2 64,342 $ 122,712 $ 157,546 $
Special Revenue Funds
(Continued)
-106-
Citizens Option Traffic Development American Total
for Public Congestion Agreement Rescue Special
Safety Fund Relief Grant Consideration Plan Act Revenue Funds $ 1,720 411,986 $ 194,731 $ - $ 1,520,620 $
- - - - 2,821
- - - - 146,910
3 942 359 - 2,810
- - 20,598 - 20,598
- - - - 129
- - - - 1,813,342
- - - - 207 $ 412,928 $ 1,723 $ 215,688 $ - $ 3,507,437 $ - - $ - $ - $ 778,800 $
- - - - 1,611
- 871 - - 627,091
- 417,301 - - 427,394
- 418,172 - - 1,834,896
- - - - 368,512
- - - - -
- - - - 30,542
- - - - 2
1,723 - - - 1,225,570
- - - - -
- - - - -
- - - - 12,194
- - - - -
- - 215,688 - 215,688
- (5,244) - - (179,967)
1,723 (5,244) 215,688 - 1,304,029 $ 1,723 412,928 $ 215,688 $ - $ 3,507,437 $ Special Revenue Funds

CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-107-
Storm Traffic Fire General
Drain Impact Facilities Facilities
ASSETS
Cash and investments 1,130,217 $ 2,588,908 $ 1,588,190 $ 366,968 $ Receivables:

Accounts - - - - Taxes - - - -
Interest 2,068 5,429 2,909 693
Contract and loans - - - - Due from other funds - - - - Due from other governments - - - - Prepaid items - - - - Total assets $ 1,132,285 $ 2,594,337 $ 1,591,099 $ 367,661

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 430,113 - $ - $ 6,641 $
Accrued liabilities - - - - Due to other funds - - - - Unearned revenue - - - - Total liabilities 430,113 - - 6,641 DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - - FUND BALANCE:

Restricted for:

Cultural and recreational - - - - State mandated - - - - Public safety - - 1,591,099 - Street improvements - 2,164,224 - - Storm drains 1,132,285 - - - Municipal facilities - - - 361,020 Air quality management - - - - Debt service - - - - Low mod housing programs - - - - Unassigned - - - - Total fund balances (deficit) 2,164,224 1,132,285 1,591,099 361,020 Total liabilities, deferred inflows of resources and fund balance $ 2,594,337 1,132,285 $ 1,591,099 $ 367,661 $ Capital Projects Funds
(Continued)
-108-
Total
Public Public Art in Capital Capital
Federal/State Meeting Library Public Project Bond Projects Construction Facilities Facilities Places Proceeds Funds $ 700,207 - $ 30,917 $ 252,370 $ 1,112,289 $ 7,770,066 $ - - - - - -
- - - - - -
1,277 - 58 492 2,266 15,192
- - - - - -
- - - - - -
- 192,620 - - - 192,620
- - - - - - $ 192,620 $ 701,484 $ 30,975 $ 252,862 $ 1,114,555 $ 7,977,878 $ - - $ - $ 1,727 $ - $ 438,481 $
- - - - - -
- 136,232 - - - 136,232
- - - - - -
- 136,232 - 1,727 - 574,713
- 192,620 - - - 192,620
- - 30,975 251,135 - 282,110
- - - - - -
- - - - - 1,591,099
- - - - 1,114,555 3,278,779
- - - - - 1,132,285
701,484 - - - - 1,062,504
- - - - - -
- - - - - -
- - - - - -
- (136,232) - - - (136,232)
701,484 (136,232) 30,975 251,135 1,114,555 7,210,545 $ 701,484 192,620 $ 30,975 $ 252,862 $ 1,114,555 $ 7,977,878 $ Capital Projects Funds
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CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
-109-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds
ASSETS
Cash and investments 12,756 $ 39,754 $ 52,510 $ 9,343,196 $ Receivables:

Accounts - - - 2,821 Taxes - - - 146,910
Interest - 73 73 18,075 Contract and loans - - - 20,598 Due from other funds - - - 129 Due from other governments - - - 2,005,962 Prepaid items - - - 207 Total assets $ 12,756 $ 39,827 $ 52,583 $ 11,537,898

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - - $ - $ 1,217,281 $
Accrued liabilities - - - 1,611 Due to other funds - - - 763,323 Unearned revenue - - - 427,394 Total liabilities - - - 2,409,609 DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - - - 561,132 FUND BALANCE:

Restricted for:

Cultural and recreational - - - 282,110 State mandated - - - 30,542 Public safety - - - 1,591,101 Street improvements - - - 4,504,349 Storm drains - - - 1,132,285
Municipal facilities - - - 1,062,504
Air quality management - - - 12,194 Debt service 12,756 39,827 52,583 52,583 Low mod housing programs - - - 215,688 Unassigned - - - (316,199) Total fund balances (deficit) 39,827 12,756 52,583 8,567,157 Total liabilities, deferred inflows of resources and fund balance $ 39,827 12,756 $ 52,583 $ 11,537,898 $ Debt Service Funds

CITY OF LOMA LINDA
Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds
For the year ended June 30, 2022
-110-
Traffic Gas CASp CERT &
Safety Tax Training Measure I

REVENUES
Taxes - $ - $ - $ 598,123 $
Intergovernmental - 1,139,702 - - Charges for services - - 6,526 - Use of money and property - - - (4,919) Fines and forfeitures 69,852 - - - Miscellaneous - - - - Developer fees - - - - Total revenues 1,139,702 69,852 6,526 593,204 EXPENDITURES Current:

General government - - - - Public safety - - - - Community development - - 534 - Public works - - - - Capital outlay - 490,259 - 424,222 Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - - Total expenditures 490,259 - 534 424,222 REVENUES OVER (UNDER) EXPENDITURES 649,443 69,852 5,992 168,982 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (69,529) (615,533) - - Lease acquisition - - - - Total other financing sources (uses) (615,533) (69,529) - - Net change in fund balances 33,910 323 5,992 168,982 FUND BALANCE (DEFICIT) Beginning of year 7,688 168,883 24,550 447,708 End of year $ 8,011 $ 202,793 $ 30,542 $ 616,690 Special Revenue Funds
(Continued)
-111-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 361,154 - $ 420,419 $ - $
- 1,234,599 - 23,685
- - - -
(1,475) 344 (610) (138)
- - - -
9 - 9 -
- - - -
359,688 1,234,943 419,818 23,547
- - - -
- - - 38,598
- - 558,891 -
351,034 - - -
1,234 1,282,806 1,127 -
200 - 182 -
37 - 33 -
352,505 1,282,806 560,233 38,598
7,183 (47,863) (140,415) (15,051)
- - 120,000 -
- - - -
1,234 - 1,127 -
1,234 - 121,127 -
8,417 (47,863) (19,288) (15,051)
134,480 182,183 74,082 27,245 $ 134,320 $ 142,897 $ 54,794 $ 12,194 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, 2022
-112-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund

REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - 148,396 36,940 Charges for services - - - - Use of money and property (579) - 8 - Fines and forfeitures - - - - Miscellaneous - - - - Developer fees - - - - Total revenues - (579) 148,404 36,940 EXPENDITURES Current:

General government - - - - Public safety - - - - Community development - - 18,328 129,552 Public works - - - - Capital outlay - - 96,206 - Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - - Total expenditures - - 114,534 129,552 REVENUES OVER (UNDER) EXPENDITURES - (579) 33,870 (92,612) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Lease acquisition - - - - Total other financing sources (uses) - - - - Net change in fund balances - (579) 33,870 (92,612) FUND BALANCE (DEFICIT) Beginning of year 64,921 2 (67,079) (48,902) End of year $ 64,342 $ 2 $ (33,209) $ (141,514) Special Revenue Funds
(Continued)
-113-
Citizens Option Traffic Development American Total
for Public Congestion Agreement Rescue Special
Safety Fund Relief Fund Consideration Plan Act Revenue Funds $ - - $ - $ - $ 1,379,696 $
- 104,848 - 2,928,307 5,616,477
- - - - 6,526
(16) (3,439) (869) - (11,693)
- - - - 69,852
- - - - 18
- - - - -
(16) 101,409 (869) 2,928,307 7,060,876
- - - - -
- 2,760 - - 41,358
- - - - 707,305
- - - - 351,034
- - - - 2,295,854
- - - - 382
- - - - 70
- 2,760 - - 3,396,003
(16) 98,649 (869) 2,928,307 3,664,873
- - - - 120,000
- (103,902) - (2,928,307) (3,717,271)
- - - - 2,361
- (103,902) - (2,928,307) (3,594,910)
(16) (5,253) (869) - 69,963
1,739 9 216,557 - 1,234,066 $ (5,244) $ 1,723 $ 215,688 $ - $ 1,304,029 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, 2022
-114-
Storm Traffic Fire General
Drain Impact Facilities Facilities

REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - - - Charges for services 29,493 - - - Use of money and property (10,234) (21,704) (14,376) (3,277) Fines and forfeitures - - - - Miscellaneous - - - - Developer fees - 147,463 33,192 23,322 Total revenues 125,759 19,259 18,816 20,045 EXPENDITURES Current:

General government - - - - Public safety - - - - Community development - - - - Public works - 167,344 - 4,584 Capital outlay - 858,174 - 23,511 Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - - Total expenditures 1,025,518 - - 28,095 REVENUES OVER (UNDER) EXPENDITURES (899,759) 19,259 18,816 (8,050) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Lease acquisition - - - - Total other financing sources (uses) - - - - Net change in fund balances (899,759) 19,259 18,816 (8,050) FUND BALANCE (DEFICIT) Beginning of year 1,113,026 3,063,983 1,572,283 369,070 End of year $ 1,132,285 $ 2,164,224 $ 1,591,099 $ 361,020 Capital Projects Funds
(Continued)
-115-
Total
Public Public Art in Capital Capital
Federal/State Meeting Library Public Project Bond Projects Construction Facilities Facilities Places Proceeds Funds $ - - $ - $ - $ - $ - $
- - - - 35,463 35,463
- - - - - 29,493
(6,387) 27 (278) (2,157) (9,334) (67,720)
- - - - - -
- - - - - -
54,311 - - 31,417 - 289,705
47,924 27 (278) 29,260 26,129 286,941
- - - - - -
- - - - - -
- - - - - -
- - - 12,039 27,936 211,903
- 192,620 - 61,738 143,263 1,279,306
- - - - - -
- - - - - -
- 192,620 - 73,777 171,199 1,491,209
47,924 (192,593) (278) (44,517) (145,070) (1,204,268)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
47,924 (192,593) (278) (44,517) (145,070) (1,204,268)
653,560 56,361 31,253 295,652 1,259,625 8,414,813 $ (136,232) $ 701,484 $ 30,975 $ 251,135 $ 1,114,555 $ 7,210,545 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, 2022
-116-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds

REVENUES
Taxes - $ - $ - $ 1,379,696 $
Intergovernmental - - - 5,651,940 Charges for services - - - 36,019 Use of money and property - (359) (359) (79,772) Fines and forfeitures - - - 69,852 Miscellaneous - - - 18 Developer fees - - - 289,705 Total revenues (359) - (359) 7,347,458 EXPENDITURES Current:

General government - 314 314 314 Public safety - - - 41,358 Community development - - - 707,305 Public works - - - 562,937 Capital outlay - - - 3,575,160 Debt service:

Principal retirement - - - 382
Interest and fiscal charges - - - 70 Total expenditures 314 - 314 4,887,526 REVENUES OVER (UNDER) EXPENDITURES (673) - (673) 2,459,932 OTHER FINANCING SOURCES (USES) Transfers in - - - 120,000 Transfers out - - - (3,717,271) Lease acquisition - - - 2,361 Total other financing sources (uses) - - - (3,594,910) Net change in fund balances (673) - (673) (1,134,978) FUND BALANCE (DEFICIT) Beginning of year 12,756 40,500 53,256 9,702,135 End of year $ 12,756 $ 39,827 $ 52,583 $ 8,567,157 Debt Service Funds
-117-

NONMAJOR GOVERNMENTAL BUDGETARY

COMPARISON SCHEDULES
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CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Safety
For the year ended June 30, 2022
-118-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Fines and forfeitures 40,000 $ 40,000 $ 69,852 $ 29,852 $ Total revenues 40,000 40,000 69,852 29,852 REVENUES OVER (UNDER) EXPENDITURES 40,000 40,000 69,852 29,852 OTHER FINANCING SOURCES (USES) Transfers out (40,000) (40,000) (69,529) (29,529) Total other financing sources (uses) (40,000) (40,000) (69,529) (29,529) Net change in fund balance - - 323 323

FUND BALANCE (DEFICIT)
Beginning of year 7,688 7,688 7,688 - End of year $ 7,688 $ 7,688 $ 8,011 $ 323 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Gas Tax
For the year ended June 30, 2022
-119-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,078,400 $ 1,172,900 $ 1,139,702 $ (33,198) $ Total revenues 1,172,900 1,078,400 1,139,702 (33,198) EXPENDITURES Capital outlay 355,000 494,900 490,259 4,641 Total expenditures 494,900 355,000 490,259 4,641 REVENUES OVER (UNDER) EXPENDITURES 678,000 723,400 649,443 (28,557) OTHER FINANCING SOURCES (USES) Transfers out (613,500) (663,700) (615,533) 48,167 Total other financing sources (uses) (663,700) (613,500) (615,533) 48,167 Net change in fund balance 14,300 109,900 33,910 19,610 FUND BALANCE (DEFICIT) Beginning of year 168,883 168,883 168,883 - End of year $ 278,783 $ 183,183 $ 202,793 $ 19,610 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
CASp CERT & Training
For the year ended June 30, 2022
-120-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 2,000 $ 6,000 $ 6,526 $ 526 $
Total revenues 6,000 2,000 6,526 526 EXPENDITURES
Current:

Community development - - 534 (534) Total expenditures - - 534 (534) REVENUES OVER (UNDER) EXPENDITURES 6,000 2,000 5,992 (8) OTHER FINANCING SOURCES (USES) Transfers out - (600) - 600 Total other financing sources (uses) (600) - - 600 Net change in fund balance 5,400 2,000 5,992 592 FUND BALANCE (DEFICIT) Beginning of year 6,043 6,043 24,550 18,507 End of year $ 8,043 $ 11,443 $ 30,542 $ 19,099 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I
For the year ended June 30, 2022
-121-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 423,000 $ 484,300 $ 598,123 $ 113,823 $
Use of money and property 1,000 1,000 (4,919) (5,919) Total revenues 485,300 424,000 593,204 107,904 EXPENDITURES Capital outlay 423,000 423,000 424,222 (1,222) Total expenditures 423,000 423,000 424,222 (1,222) REVENUES OVER (UNDER) EXPENDITURES 62,300 1,000 168,982 106,682 Net change in fund balance 62,300 1,000 168,982 106,682 FUND BALANCE (DEFICIT) Beginning of year 447,708 447,708 447,708 - End of year $ 448,708 $ 510,008 $ 616,690 $ 106,682 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I MSART
For the year ended June 30, 2022
-122-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,224,000 $ 1,224,000 $ 1,234,599 $ 10,599 $ Use of money and property 1,000 400 344 (56) Total revenues 1,224,400 1,225,000 1,234,943 10,543 EXPENDITURES Capital outlay 1,224,500 2,274,080 1,282,806 991,274 Total expenditures 2,274,080 1,224,500 1,282,806 991,274 REVENUES OVER (UNDER) EXPENDITURES (1,049,680) 500 (47,863) 1,001,817 Net change in fund balance (1,049,680) 500 (47,863) 1,001,817 FUND BALANCE (DEFICIT) Beginning of year 182,183 182,183 182,183 - End of year $ 182,683 $ (867,497) $ 134,320 $ 1,001,817 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Street Lighting District
For the year ended June 30, 2022
-123-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 353,000 $ 316,000 $ 361,154 $ 45,154 $
Use of money and property 1,000 200 (1,475) (1,675) Miscellaneous - - 9 9 Total revenues 316,200 354,000 359,688 43,488 EXPENDITURES Current:

Public works 352,763 353,363 351,034 2,329 Capital outlay 500 500 1,234 (734) Debt service:

Principal retirement 200 200 200 -
Interest and fiscal charges 37 37 37 - Total expenditures 354,100 353,500 352,505 1,595 REVENUES OVER (UNDER) EXPENDITURES (37,900) 500 7,183 45,083 OTHER FINANCING SOURCES (USES) Lease acquisition - - 1,234 1,234 Total other financing sources (uses) - - 1,234 1,234 Net change in fund balance (37,900) 500 8,417 46,317 FUND BALANCE (DEFICIT) Beginning of year 134,480 134,480 134,480 - End of year $ 134,980 $ 96,580 $ 142,897 $ 46,317 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Landscape Maintenance District
For the year ended June 30, 2022
-124-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 404,000 $ 374,000 $ 420,419 $ 46,419 $
Use of money and property 200 200 (610) (810) Miscellaneous - - 9 9 Total revenues 374,200 404,200 419,818 45,618 EXPENDITURES Current:

Community development 520,085 534,685 558,891 (24,206) Capital outlay 500 500 1,127 (627) Debt service:

Principal retirement 182 182 182 -
Interest and fiscal charges 33 33 33 - Total expenditures 535,400 520,800 560,233 (24,833) REVENUES OVER (UNDER) EXPENDITURES (161,200) (116,600) (140,415) 20,785 OTHER FINANCING SOURCES (USES) Transfers in 120,000 120,000 120,000 - Lease acquisition - - 1,127 1,127 Total other financing sources (uses) 120,000 120,000 121,127 1,127 Net change in fund balance (41,200) 3,400 (19,288) 21,912 FUND BALANCE (DEFICIT) Beginning of year 74,082 74,082 74,082 - End of year $ 77,482 $ 32,882 $ 54,794 $ 21,912 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Air Quality Management District
For the year ended June 30, 2022
-125-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 30,000 $ 30,000 $ 23,685 $ (6,315) $
Use of money and property 100 100 (138) (238) Total revenues 30,100 30,100 23,547 (6,553) EXPENDITURES Current:

Public safety 52,500 56,300 38,598 17,702 Total expenditures 56,300 52,500 38,598 17,702 REVENUES OVER (UNDER) EXPENDITURES (26,200) (22,400) (15,051) 11,149 Net change in fund balance (26,200) (22,400) (15,051) 11,149 FUND BALANCE (DEFICIT) Beginning of year 27,245 27,245 27,245 - End of year $ 4,845 $ 1,045 $ 12,194 $ 11,149 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Improvements Per MOU
For the year ended June 30, 2022
-126-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 500 $ 200 $ (579) $ (779) $
Total revenues 200 500 (579) (779) REVENUES OVER (UNDER) EXPENDITURES 200 500 (579) (779) Net change in fund balance 200 500 (579) (779) FUND BALANCE (DEFICIT) Beginning of year 64,921 64,921 64,921 - End of year $ 65,421 $ 65,121 $ 64,342 $ (779) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Community Development Block Grant
For the year ended June 30, 2022
-127-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 140,000 $ 328,400 $ 148,396 $ (180,004) $ Use of money and property - - 8 8 Total revenues 328,400 140,000 148,404 (179,996) EXPENDITURES Current:

Community development 20,000 208,400 18,328 190,072
Capital outlay 120,000 120,000 96,206 23,794 Total expenditures 328,400 140,000 114,534 213,866 REVENUES OVER (UNDER) EXPENDITURES - - 33,870 33,870 Net change in fund balance - - 33,870 33,870 FUND BALANCE (DEFICIT) Beginning of year (67,079) (67,079) (67,079) - End of year $ (67,079) $ (67,079) $ (33,209) $ 33,870 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Grant Fund
For the year ended June 30, 2022
-128-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 257,500 $ 257,500 $ 36,940 $ (220,560) $ Total revenues 257,500 257,500 36,940 (220,560) EXPENDITURES Current:

Community development 257,500 257,500 129,552 127,948 Total expenditures 257,500 257,500 129,552 127,948 REVENUES OVER (UNDER) EXPENDITURES - - (92,612) (92,612) Net change in fund balance - - (92,612) (92,612) FUND BALANCE (DEFICIT) Beginning of year (48,902) (48,902) (48,902) - End of year $ (48,902) $ (48,902) $ (141,514) $ (92,612) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Citizens Option for Public Safety
For the year ended June 30, 2022
-129-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 108,900 $ 108,900 $ 104,848 $ (4,052) $ Use of money and property 5,000 1,000 (3,439) (4,439) Total revenues 109,900 113,900 101,409 (8,491) EXPENDITURES Current:

Public safety 4,600 7,600 2,760 4,840 Total expenditures 7,600 4,600 2,760 4,840 REVENUES OVER (UNDER) EXPENDITURES 102,300 109,300 98,649 (3,651) OTHER FINANCING SOURCES (USES) Transfers out (104,300) (104,300) (103,902) 398 Total other financing sources (uses) (104,300) (104,300) (103,902) 398 Net change in fund balance (2,000) 5,000 (5,253) (3,253) FUND BALANCE (DEFICIT) Beginning of year 9 9 9 - End of year $ 5,009 $ (1,991) $ (5,244) $ (3,253) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Development Agreement Consideration
For the year ended June 30, 2022
-130-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 2,100 $ 1,500 $ (869) $ (2,369) $ Total revenues 1,500 2,100 (869) (2,369)
REVENUES OVER (UNDER) EXPENDITURES 1,500 2,100 (869) (2,369) Net change in fund balance 1,500 2,100 (869) (2,369)

FUND BALANCE (DEFICIT)
Beginning of year 216,557 216,557 216,557 -
End of year $ 218,657 $ 218,057 $ 215,688 $ (2,369)
Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
American Rescue Plan Act
For the year ended June 30, 2022
-131-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental - $ 2,928,300 $ 2,928,307 $ 7 $
Total revenues 2,928,300 - 2,928,307 7 REVENUES OVER (UNDER) EXPENDITURES 2,928,300 - 2,928,307 7 OTHER FINANCING SOURCES (USES) Transfers out - (2,928,300) (2,928,307) (7) Total other financing sources (uses) (2,928,300) - (2,928,307) (7) Net change in fund balance - - - - FUND BALANCE (DEFICIT) Beginning of year - - - - End of year - $ - $ - $ - $
Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Storm Drain
For the year ended June 30, 2022
-132-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 97,500 $ 92,100 $ 29,493 $ (62,607) $ Use of money and property 8,000 2,500 (10,234) (12,734) Total revenues 94,600 105,500 19,259 (75,341) REVENUES OVER (UNDER) EXPENDITURES 94,600 105,500 19,259 (75,341) Net change in fund balance 94,600 105,500 19,259 (75,341) FUND BALANCE (DEFICIT) Beginning of year 1,113,026 1,113,026 1,113,026 - End of year 1,218,526 $ 1,207,626 $ 1,132,285 $ (75,341) $ Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Impact
For the year ended June 30, 2022
-133-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 15,000 $ 7,000 $ (21,704) $ (28,704) $ Developer fees 324,300 318,200 147,463 (170,737) Total revenues 325,200 339,300 125,759 (199,441) EXPENDITURES Current:

Public works 151,300 151,300 167,344 (16,044) Capital outlay 776,000 1,441,420 858,174 583,246 Total expenditures 1,592,720 927,300 1,025,518 567,202 REVENUES OVER (UNDER) EXPENDITURES (1,267,520) (588,000) (899,759) 367,761 Net change in fund balance (1,267,520) (588,000) (899,759) 367,761 FUND BALANCE (DEFICIT) Beginning of year 3,063,983 3,063,983 3,063,983 - End of year $ 2,475,983 $ 1,796,463 $ 2,164,224 $ 367,761 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Fire Facilities
For the year ended June 30, 2022
-134-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 8,000 $ 3,500 $ (14,376) $ (17,876) $ Developer fees 56,600 60,400 33,192 (27,208) Total revenues 63,900 64,600 18,816 (45,084) REVENUES OVER (UNDER) EXPENDITURES 63,900 64,600 18,816 (45,084) Net change in fund balance 63,900 64,600 18,816 (45,084) FUND BALANCE (DEFICIT) Beginning of year 1,572,283 1,572,283 1,572,283 - End of year $ 1,636,883 $ 1,636,183 $ 1,591,099 $ (45,084) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
General Facilities
For the year ended June 30, 2022
-135-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 2,000 $ 800 $ (3,277) $ (4,077) $ Developer fees 111,800 104,300 23,322 (80,978) Total revenues 105,100 113,800 20,045 (85,055) EXPENDITURES Current:

Public works 15,600 15,600 4,584 11,016 Capital outlay 80,000 93,700 23,511 70,189 Total expenditures 109,300 95,600 28,095 81,205 REVENUES OVER (UNDER) EXPENDITURES (4,200) 18,200 (8,050) (3,850) Net change in fund balance (4,200) 18,200 (8,050) (3,850) FUND BALANCE (DEFICIT) Beginning of year 369,070 369,070 369,070 - End of year $ 387,270 $ 364,870 $ 361,020 $ (3,850) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Federal/State Construction
For the year ended June 30, 2022
-136-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 192,600 $ 192,600 $ - $ (192,600) $
Use of money and property - - 27 27 Total revenues 192,600 192,600 27 (192,573) EXPENDITURES Capital outlay 192,600 192,600 192,620 (20) Total expenditures 192,600 192,600 192,620 (20) REVENUES OVER (UNDER) EXPENDITURES - - (192,593) (192,593) Net change in fund balance - - (192,593) (192,593) FUND BALANCE (DEFICIT) Beginning of year 56,361 56,361 56,361 - End of year $ 56,361 $ 56,361 $ (136,232) $ (192,593) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Meeting Facilities
For the year ended June 30, 2022
-137-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 4,000 $ 1,500 $ (6,387) $ (7,887) $ Developer fees 263,200 245,900 54,311 (191,589) Total revenues 247,400 267,200 47,924 (199,476) REVENUES OVER (UNDER) EXPENDITURES 247,400 267,200 47,924 (199,476) Net change in fund balance 247,400 267,200 47,924 (199,476) FUND BALANCE (DEFICIT) Beginning of year 653,560 653,560 653,560 - End of year $ 920,760 $ 900,960 $ 701,484 $ (199,476) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Library Facilities
For the year ended June 30, 2022
-138-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 200 $ 100 $ (278) $ (378) $
Total revenues 100 200 (278) (378) REVENUES OVER (UNDER) EXPENDITURES 100 200 (278) (378) Net change in fund balance 100 200 (278) (378) FUND BALANCE (DEFICIT) Beginning of year 31,253 31,253 31,253 - End of year $ 31,453 $ 31,353 $ 30,975 $ (378) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Art in Public Places
For the year ended June 30, 2022
-139-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 2,000 $ 700 $ (2,157) $ (2,857) $ Developer fees 33,800 110,800 31,417 (79,383) Total revenues 111,500 35,800 29,260 (82,240) EXPENDITURES Current:

Public works 19,500 19,500 12,039 7,461 Capital outlay 100,000 100,000 61,738 38,262 Total expenditures 119,500 119,500 73,777 45,723 REVENUES OVER (UNDER) EXPENDITURES (8,000) (83,700) (44,517) (36,517) Net change in fund balance (8,000) (83,700) (44,517) (36,517) FUND BALANCE (DEFICIT) Beginning of year 295,652 295,652 295,652 - End of year $ 211,952 $ 287,652 $ 251,135 $ (36,517) Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Capital Projects Bond Proceeds
For the year ended June 30, 2022
-140-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental - $ - $ 35,463 $ 35,463 $
Use of money and property 16,000 3,000 (9,334) (12,334) Total revenues 3,000 16,000 26,129 23,129 EXPENDITURES Current:

Public works 48,900 48,900 27,936 20,964 Capital outlay 251,000 251,000 143,263 107,737 Total expenditures 299,900 299,900 171,199 128,701 REVENUES OVER (UNDER) EXPENDITURES (296,900) (283,900) (145,070) 151,830 Net change in fund balance (296,900) (283,900) (145,070) 151,830 FUND BALANCE (DEFICIT) Beginning of year 1,259,625 1,259,625 1,259,625 - End of year $ 975,725 $ 962,725 $ 1,114,555 $ 151,830 Budgeted Amounts

CITY OF LOMA LINDA
Budgetary Comparison Schedule
Loma Linda Financing Authority
For the year ended June 30, 2022
-141-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 200 $ 100 $ (359) $ (459) $
Total revenues 100 200 (359) (459) EXPENDITURES
Current:

General government 300 300 314 (14) Total expenditures 300 300 314 (14) REVENUES OVER (UNDER) EXPENDITURES (200) (100) (673) (473) Net change in fund balance (200) (100) (673) (473) FUND BALANCE (DEFICIT) Beginning of year 40,500 40,500 40,500 - End of year $ 40,400 $ 40,300 $ 39,827 $ (473) Budgeted Amounts
-142-

FIDUCIARY FUNDS

CUSTODIAL FUNDS COMBINING SCHEDULE

CITY OF LOMA LINDA
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
-143-
Custodial Funds include Association Fire Equipment Fund and Customer Deposits Fund.

Association Fire
Equipment Customer Deposits
Total Custodial
Funds
ASSETS
Cash and investments 27,333 $ 74,470 $ 101,803 $
Total assets 74,470 27,333 101,803 LIABILITIES
Accounts payable 344 - 344 Deposits payable - 74,470 74,470 Total liabilities 74,470 344 74,814

NET POSITION (DEFICIT)
Restricted for other organizations $ 26,989 $ - $ 26,989

CITY OF LOMA LINDA
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
-144-
Association Fire
Equipment Customer Deposits
Total Custodial
Funds

ADDITIONS
Miscellaneous 11,635 $ - $ 11,635 $
Total additions - 11,635 11,635 DEDUCTIONS
Miscellaneous 3,247 - 3,247 Total deductions - 3,247 3,247 Change in net position - 8,388 8,388 NET POSITION (DEFICIT):

Beginning of year 18,601 - 18,601 End of year 26,989 $ - $ 26,989 $ This page intentionally left blank
-145-

STATISTICAL SECTION
This page intentionally left blank
-146-
Contents Page
Financial Trends 145
Revenue Capacity 151
Debt Capacity 164
Demographic and Economic Information 170
Operating Information 173
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)
-147-
Fiscal Year 2013 2014 2015 2016
Governmental activities
Net investment in capital assets $ 49,923,947 $ 53,642,388 $ 55,885,140 $ 54,701,694 Restricted 29,617,713 29,305,083 27,181,403 41,158,883 Unrestricted 814,941 2,258,815 (6,245,613) 10,216,095 Total governmental activities net position 80,356,601 $ 85,206,286 $ 76,820,930 $ 106,076,672 $ Business-type activities
Net investment in capital assets $ 38,186,940 39,756,680 $ 37,347,912 $ 36,315,946 $ Restricted 40,839 40,839 40,840 41,054 Unrestricted (9,127,686) (9,816,996) (13,846,636) (6,145,456) Total business-type activities net position 30,669,833 $ 28,410,783 $ 23,542,116 $ 30,211,544 $ Primary government
Net investment in capital assets $ 89,680,627 $ 91,829,328 $ 93,233,052 $ 91,017,640 Restricted 29,658,552 29,345,922 27,222,243 41,199,937 Unrestricted (8,312,745) (7,558,181) (20,092,249) 4,070,639 Total primary government net position 111,026,434 $ 113,617,069 $ 100,363,046 $ 136,288,216 $ Source: City of Loma Linda Finance Department

-148-
2017 2018 2019 2020 2021 2022
$ 53,645,346 54,669,551 $ 53,363,136 $ 52,098,547 $ 52,880,007 $ 54,585,683 $ 40,009,123 34,485,340 40,255,257 41,042,155 43,777,701 43,645,029 11,961,248 15,833,197 13,949,530 16,553,951 13,952,683 26,633,948 $ 105,615,717 104,988,088 $ 107,567,923 $ 109,694,653 $ 110,610,391 $ 124,864,660 $ $ 35,575,964 $ 35,053,848 $ 35,191,938 $ 35,564,416 $ 36,344,853 $ 36,429,645 684,561 760,313 396,401 681,788 682,253 685,433
(7,304,285) (7,140,329) (8,176,541) (8,564,601) (8,688,855) (5,324,916) $ 28,434,124 29,195,948 $ 27,411,798 $ 27,681,603 $ 28,338,251 $ 31,790,162 $ $ 90,245,515 $ 88,699,194 $ 88,555,074 $ 87,662,963 $ 89,224,860 $ 91,015,328 40,693,684 35,245,653 40,651,658 41,723,943 44,459,954 44,330,462 4,656,963 8,692,868 5,772,989 7,989,350 5,263,828 21,309,032 $ 134,049,841 134,184,036 $ 134,979,721 $ 137,376,256 $ 138,948,642 $ 156,654,822 $

CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-149-
Fiscal Year 2013 2014 2015 2016
Expenses
Governmental activities:

General government 1,770,611 $ 1,818,573 $ 3,387,169 $ 3,671,993 $ Public safety 8,747,342 8,430,753 8,772,658 9,304,542 Community development 1,944,724 1,948,836 2,278,470 1,841,405 Public works 4,488,436 5,451,342 3,948,235 4,676,124
Interest on long-term debt 246,905 180,289 128,956 (12,257) Total governmental activities expenses 17,198,018 17,829,793 18,515,488 19,481,807 Business-type activities:

Water acquisition 152,932 - 32,458 47,594 Water enterprise 6,113,936 6,414,771 6,529,987 5,697,329 Sewer capital 4,420,067 4,135,446 4,128,121 4,100,045 Loma Linda Connected Communities 981,448 923,887 1,183,177 1,118,342 Total business-type activities expenses 11,668,383 11,474,104 11,873,743 10,963,310 Total primary government expenses 28,866,401 $ 29,303,897 $ 30,389,231 $ 30,445,117 $ Program Revenues
Governmental activities:

Charges for services:

General Government 2,265,114 $ 2,017,576 $ 2,230,122 $ 1,914,239 $ Public Safety 601,899 566,346 576,908 982,772 Community development 1,538,226 2,598,727 1,247,138 7,689,602 Public works 1,728,971 1,729,660 1,523,530 1,329,226 Operating contributions and grants 244,822 238,064 227,592 675,510 Capital contributions and grants 1,633,410 5,425,257 1,276,451 1,321,811 12,575,630 8,012,442 7,081,741 13,913,160 Business-type activities:

Charges for services:

Water acquisition 132,044 60,113 249,351 506,018 Water enterprise 4,734,114 4,813,653 4,970,004 4,570,660 Sewer capital 3,592,431 3,457,741 3,843,936 3,853,476 Loma Linda Connected Communities 287,944 414,429 399,978 362,285 Capital Grants and Contributions 18,249,598 - - - 8,745,936 26,996,131 9,463,269 9,292,439 Total primary government revenues 35,008,573 $ 21,321,566 $ 16,545,010 $ 23,205,599 $ Net (expense)/revenue
Governmental activities (9,185,576) $ (5,254,163) $ (11,433,747) $ (5,568,647) $ Business-type activities 15,327,748 (2,728,168) (2,410,474) (1,670,871) $ (7,982,331) 6,142,172 $ (13,844,221) $ (7,239,518) $ Total governmental activities program revenues
Total business-type activities program revenues
Total primary government net (expense)/revenue
Source: City of Loma Linda Finance Department

-150-
2017 2018 2019 2020 2021 2022
$ 3,446,226 4,183,558 $ 6,425,416 $ 4,655,547 $ 2,432,363 $ 2,068,926 $ 12,531,692 11,026,804 13,454,286 13,132,883 15,816,365 10,634,051 2,530,022 2,390,338 2,309,000 3,646,694 3,405,290 2,264,274 6,231,901 4,411,533 7,202,335 7,191,106 6,691,119 4,811,300 - 6,053 7,778 3,148 1,606 2,643
24,739,841 22,018,286 29,398,815 28,629,378 28,346,743 19,781,194 142,488 231,003 651,998 163,718 34,407 271,277
6,581,432 5,956,326 7,334,056 7,321,257 7,451,276 4,974,785 4,484,711 4,237,844 4,655,471 4,780,642 4,848,037 3,894,446 1,082,358 1,056,877 981,077 1,075,479 998,596 834,694
12,290,989 11,482,050 13,622,602 13,341,096 13,332,316 9,975,202 $ 37,030,830 33,500,336 $ 43,021,417 $ 41,970,474 $ 41,679,059 $ 29,756,396 $ $ 2,601,912 2,411,391 $ 3,237,396 $ 2,947,216 $ 3,309,689 $ 2,924,322 $ 2,542,110 2,072,189 2,701,403 2,326,787 3,572,136 4,423,248 1,311,497 703,820 3,102,051 3,465,549 7,298,611 1,310,861 1,561,965 1,318,224 1,820,291 1,782,676 3,049,457 2,065,657 772,551 918,093 2,552,498 664,307 - 3,913,570
151,081 349,723 1,308,805 1,510,791 - 2,213,685
8,941,116 7,773,440 14,722,444 12,697,326 17,229,893 16,851,343 392,278 124,489 643,278 1,141,226 521,151 283,721
5,620,078 4,910,137 5,745,814 6,076,134 6,908,052 7,001,145 4,675,647 4,187,465 5,021,365 5,327,464 5,565,852 5,531,874 317,575 389,793 326,992 359,079 342,360 326,196
- - - - - -
11,005,578 9,611,884 11,737,449 12,903,903 13,337,415 13,142,936 $ 19,946,694 17,385,324 $ 26,459,893 $ 25,601,229 $ 30,567,308 $ 29,994,279 $ $ (15,798,725) (14,244,846) $ (14,676,371) $ (15,932,052) $ (11,116,850) $ (2,929,851) $ (1,285,411) (1,870,166) (1,885,153) (437,193) 5,099 3,167,734 $ (17,084,136) (16,115,012) $ (16,561,524) $ (16,369,245) $ (11,111,751) $ 237,883 $

CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting) (Continued)
-151-
Fiscal Year 2013 2014 2015 2016
General Revenues and Other Changes in
Net Position
Government activities:

Taxes
Property taxes 2,205,347 $ 2,391,993 $ 2,424,066 $ 2,119,528 $ Sales taxes 3,864,216 3,733,160 5,721,938 7,575,743 Franchise tax 778,424 811,238 848,712 852,859 Other taxes 734,611 871,103 831,258 1,065,353 Motor vehicle in lieu, unrestricted 1,661,319 1,688,439 - - Intergovernmental - 213,852 2,205,319 1,258,590 Transfers - - - - Total taxes and transfers 9,243,917 9,709,785 12,031,293 12,872,073 Investment income 208,226 227,033 503,598 610,671 Capital contribution - 89,413 - - Miscellaneous 60,069 139,192 36,389 26,759 Gain (Loss) on sale of capital assets - - - - Gain (Loss) on land held for resale - - - - Total governmental activities 9,512,212 10,165,423 12,571,280 13,509,503 Business-type activities:

Investment income 11,789 8,608 7,932 128,012 Capital contribution - (89,413) - - Miscellaneous 578,584 589,923 650,590 680,341 Transfers - - - - Gain (Loss) on sale of capital assets - - - - Total business-type activities 590,373 509,118 658,522 808,353 Total primary government 10,102,585 $ 10,674,541 $ 13,229,802 $ 14,317,856 $ Extraordinary Item
Governmental activities - $ - $ - $ 21,314,886 $
Business-type activities - - - 7,531,946 Total primary government - $ - $ - $ 28,846,832 $ Change in Net Position
Governmental activities 326,636 $ 4,911,260 $ 1,137,533 $ 29,255,742 $ Business-type activities 15,918,121 (2,219,050) (1,751,952) 6,669,428 Total primary government 16,244,757 $ 2,692,210 $ (614,419) $ 35,925,170 $ Source: City of Loma Linda Finance Department

-152-
2017 2018 2019 2020 2021 2022
$ 2,489,895 2,193,323 $ 2,787,070 $ 3,086,116 $ 3,043,003 $ 3,390,738 $ 8,692,611 6,692,095 7,700,848 9,008,051 3,673,588 7,951,156 960,660 886,502 961,693 990,531 1,060,786 1,346,875
882,677 1,116,979 1,003,817 850,823 922,825 951,306
- - 2,293,699 2,433,722 2,504,220 2,745,301
2,197,430 1,987,145 - - - -
(84,916) (290,619) 4,799 9,305 (83,538) 167,951
15,138,357 12,585,425 14,751,926 16,378,548 11,120,884 16,553,327 970,488 487,762 1,290,647 1,472,804 (388,070) 204,757
- - - - - -
210,983 8,523 555,160 196,705 1,274,064 53,959
426,863 74,552 30,844 10,725 25,710 (27,923)
- - - - - -
16,746,691 13,156,262 16,628,577 18,058,782 12,032,588 16,784,120 167,515 86,522 271,702 208,279 62,642 (64,894)
- - - - - -
458,106 477,429 595,149 508,024 501,164 517,022
84,916 290,619 (4,799) (9,305) 83,538 (167,951)
775 20,062 - 4,205 -
730,599 854,570 862,827 706,998 651,549 284,177 $ 17,477,290 14,010,832 $ 17,491,404 $ 18,765,780 $ 12,684,137 $ 17,068,297 $ $ - - $ - $ - $ - $ - $
- - - - - - $ - - $ - $ - $ - $ - $
$ 947,966 (1,088,584) $ 1,952,206 $ 2,126,730 $ 915,738 $ 13,854,269 $ (554,812) (1,015,596) (1,022,326) 269,805 656,648 3,451,911 $ 393,154 (2,104,180) $ 929,880 $ 2,396,535 $ 1,572,386 $ 17,306,180 $ 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)
-153-
Fiscal Property Sales & Use Franchise Transfer Transient Business Misc.

Year Taxes Tax Fees Tax Tax License Taxes Assessments Total 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 2022 2,483,539 7,893,545 1,346,875 125,626 608,867 381,338 13,642 781,573 13,635,005 Includes General, Special Revenue, Debt Service and Capital Projects Funds.

Source: City of Loma Linda Finance Department.
* Includes Vehicle License Fee-In Excess and VLF Property Tax in Lieu. Vehicle License Fee-In Excess was reclassified as intergovernmental revenue beginning in fiscal year 2022.

CITY OF LOMA LINDA
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-154-
Fiscal year 2013 2014 2015 2016 2017
General Fund
Non Spendable:

Inventories 22,630 $ 22,934 $ 18,966 $ 12,299 $ 10,933 $ Prepaid items 1,319 764 8,569 619,657 19,063 Restricted for:
- - - - -
- 35,743 - - - General government 2,232 15,768 18,872 - - Committted for:

Emergency contingency 3,500,000 3,500,000 3,500,000 5,500,000 5,500,000 Assigned for:

Refuse services 87,941 91,540 95,832 97,690 91,540 Fire equipment replacement 78,102 88,812 270,040 104,144 88,812 Sewer loan - - - - - Capital equipment replacement 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Unfunded liabilities - - - - - Unassigned 5,071,179 5,836,876 6,827,235 5,868,335 5,836,876 Total general fund 10,049,146 $ 10,806,694 $ 11,989,514 $ 13,452,125 $ 12,797,224 $ All other governmental funds
Non Spendable:

Prepaid items 20 $ - $ 40,672 $ 1,259 $ 1,036 $
Restricted for:

Cultural and recreational 284,673 304,711 332,436 345,310 370,928 State mandated - - - - - Public safety 369,068 442,199 452,514 672,745 701,990 Street improvements 5,561,625 5,156,456 4,295,300 15,919,327 14,596,849 Storm drains 749,230 757,919 771,018 792,052 801,366 Municipal facilities 336,519 271,092 195,306 204,971 133,774 Air quality management 73,431 80,988 86,456 63,454 47,451 Debt service 1,207,017 1,205,057 137,614 136,148 137,112 Low/mod hosing programs 17,856,279 17,956,592 17,810,779 17,933,640 17,695,044 Unassigned (4,693,591) (5,475,010) (6,363,912) (2,635,280) (2,935,592) Total all other governmental funds 21,744,271 $ 20,700,004 $ 17,758,183 $ 33,433,626 $ 31,549,958 $ Public Safety
State Mandated
Source: City of Loma Linda Finance Department

-155-
2018 2019 2020 2021 2022
$ 9,298 14,944 $ 20,290 $ 18,268 $ 30,427 $
1,577 3,261 2,816 1,763 8,537
6,399 5,848 - - -
- - - - -
- - - - -
2,000,000 5,500,000 2,000,000 2,000,000 2,000,000
103,035 99,033 135,495 167,204 210,124
272,593 224,776 282,099 365,170 470,908
- - 422,673 424,303 124,738
1,250,000 1,250,000 1,250,000 1,250,000 1,250,000
- 2,000,000 - - -
7,720,336 6,664,717 5,970,489 8,378,141 12,917,535 $ 11,363,238 15,762,579 $ 10,083,862 $ 12,604,849 $ 17,012,269 $ $ - 20 $ - $ - $ - $
447,552 375,309 362,529 326,905 282,110
- - 18,952 24,550 30,542
818,020 735,937 1,046,468 1,572,294 1,591,101
19,684,580 19,814,982 20,182,145 22,567,239 21,857,232
797,517 847,125 900,539 1,113,026 1,132,285
378,816 165,984 767,588 1,022,630 1,062,504
25,952 27,763 32,944 27,245 12,194
142,206 139,030 144,929 53,256 52,583
17,960,614 17,903,020 17,605,013 17,151,467 17,655,020
(2,186,552) (3,534,374) (2,754,783) (1,853,102) (2,233,176) $ 38,068,705 36,474,796 $ 38,306,324 $ 42,005,510 $ 41,442,395 $

CITY OF LOMA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-156-
Fiscal Year 2013 2014 2015 2016
Revenues
Taxes 7,582,598 $ 9,398,391 $ 11,624,605 $ 13,489,938 $ Licenses and permits 318,636 532,046 629,954 478,522
Intergovernmental revenues 2,539,554 900,263 961,314 1,516,208 Charges for services 1,653,891 1,921,614 1,789,325 1,848,851 Use of money and property 624,686 468,283 451,109 508,805 Fines, forfeitures, and penalties 179,157 166,014 154,642 142,437 Miscellaneous 3,479,196 6,976,393 2,811,345 2,625,326 Developer fees 1,127,775 814,556 518,956 7,092,505 Total Revenues 17,505,493 21,177,560 18,941,250 27,702,592 Expenditures General government 1,010,432 1,269,463 2,816,532 3,057,584 Public safety 8,333,007 8,372,894 8,494,523 9,522,944 Community development 1,635,429 1,834,266 1,997,868 1,725,470 Public works 2,225,653 2,338,243 2,235,090 2,789,413
Capital outlay 3,137,662 6,668,468 3,024,351 1,033,346
Debt service
Principal retirement 883,220 914,378 1,905,590 31,853
Interest and fiscal charges 207,619 164,563 132,266 28,855 Total Expenditures 17,433,022 21,562,275 20,606,220 18,189,465 Excess of revenues over (under) expenditures 72,471 (384,715) (1,664,970) 9,513,127 Other Financing Sources (Uses) Lease proceeds - - - - Gain on disposal of assets 19,160 97,996 20,000 56,415 Loss of disposal of assets - - (114,031) - Transfers in 2,366,876 2,438,425 2,218,439 829,833 Transfers out (2,366,876) (2,438,425) (2,218,439) (829,833) Total Other Financing Sources (Uses) 19,160 97,996 (94,031) 56,415 Net Change in Fund Balances Before Extraordinary Item 91,631 (286,719) (1,759,001) 9,569,542 Extraordinary Item* - - - 7,568,512
Net Change in Fund Balances 91,631 $ (286,719) $ (1,759,001) $ 17,138,054 $ Debt Service as a percentage of
non-capital expenditures 7.1% 6.4% 11.4% 0.4%
*Extraordinary item did not apply to prior years.

Source: City of Loma Linda Finance Department

-157-
2017 2018 2019 2020 2021 2022
$ 14,499,866 12,876,043 $ 15,435,408 $ 13,043,092 $ 14,512,225 $ 13,635,005 $ 463,878 398,756 495,979 858,993 639,968 674,337
888,521 994,225 3,669,009 1,632,833 2,644,460 8,443,940 3,563,490 3,153,168 4,053,022 4,006,691 4,067,319 4,701,339 2,820,221 757,656 2,412,446 2,322,671 1,744,388 1,297,574 115,205 129,123 472,114 79,897 58,347 77,790
2,848,072 2,353,757 3,681,395 2,869,489 3,903,673 3,640,957 735,690 188,523 2,182,962 2,476,701 6,288,823 995,616
25,934,943 20,851,251 32,402,335 27,290,367 33,859,203 33,466,558 2,870,793 3,831,946 6,595,193 3,778,105 2,289,017 3,093,515 12,153,050 11,005,886 17,476,968 13,294,924 14,090,224 15,429,737 2,372,587 2,279,446 2,411,105 3,173,643 3,032,467 2,824,271 2,821,934 2,659,712 3,233,008 3,386,611 3,700,043 3,713,343 3,410,812 2,606,365 5,486,524 4,678,287 4,428,866 5,334,219 34,532 33,165 35,955 37,436 38,979 14,289
6,053 7,419 4,630 3,148 1,606 2,643
23,669,761 22,423,939 35,243,383 28,352,154 27,581,202 30,412,017 2,265,182 (1,572,688) (2,841,048) (1,061,787) 6,278,001 3,054,541 - - - - - 96,789
567,549 74,552 30,844 10,725 25,710 125,024
- - - - - -
743,146 834,210 771,153 771,715 1,106,744 4,005,222
(828,062) (1,124,829) (766,354) (762,410) (1,190,282) (3,837,271) 482,633 (216,067) 35,643 20,030 (57,828) 389,764
2,747,815 (1,788,755) (2,805,405) (1,041,757) 6,220,173 3,444,305 - - - - - - $ 2,747,815 (1,788,755) $ (2,805,405) $ (1,041,757) $ 6,220,173 $ 3,444,305 $

0.2% 0.2% 0.1% 0.2% 0.2% 0.1%

CITY OF LOMA LINDA
General Fund Tax Revenues by Source
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-158-
Fiscal Sales & Use Property Franchise Transfer Transient Business Misc.

Year Tax Taxes Fees Tax Tax License Taxes Total
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 2022 7,295,422 2,483,539 1,346,875 125,626 608,867 381,338 13,642 12,255,309 Source: City of Loma Linda Finance Department * Amount includes Motor vehicle in-lieu revenue. Motor vehicle in-lieu revenue was reclassified as intergovernmental revenues beginning in fiscal year 2022.

CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2022
-159-
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
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 Hospital Medical/Biotech
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
Quaid Harley Davidson Boats/Motorcycles
Spreen Honda New Motor Vehicle Dealers
Spreen Mazda New Motor Vehicle Dealers
Stater Bros Grocery Stores
Tactical Night Vision Medical/Biotech
Walmart Neighborhood Market Grocery Stores
Percent of Fiscal Year Total Paid By Top 25 Accounts=93.98% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies For Fiscal year 2021-22

CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2022 (Continued)
-160-
Business Name Business Category
Anixter Electrical Equipment
Arco AM PM Services Stations
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
Farmers Boys Fast-Casual Restaurants
Hometown Buffet Casual Dining
Honda Lease Trust Auto Lease
Hyundai Inland Empire
Hyundai Lease Tilting Trust Auto Lease
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.

Loma Linda Bookstore Stationary/Book stores
Loma 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
Percent of Fiscal Year Total Paid By Top 25 Accounts=94.84% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies For Fiscal Year 2012-13

CITY OF LOMA LINDA
Taxable Sales by Category
Last Ten Calendar Years (in thousands of dollars)
As of June 30, 2022
-161-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Food Stores 11,969 $ 12,244 $ 14,974 $ 17,040 $ 17,761 $ 18,016 $ 17,835 $ 17,672 $ 20,833 $ 19,919 $ Eating and Drinking Places 19,454 21,575 23,684 27,887 27,559 29,054 28,868 29,513 24,916 30,278 Auto Dealers and Supplies 101,046 97,189 101,129 112,499 122,391 132,069 135,623 123,557 112,882 130,380 Other Retail Stores 65,793 65,540 68,307 72,844 68,605 71,709 76,991 73,048 59,736 78,615 All Other Outlets 190,592 177,631 354,140 400,130 394,144 433,870 611,789 678,554 596,536 769,285 Total $ 388,854 $ 374,179 $ 562,234 $ 630,400 $ 630,460 $ 684,718 $ 871,106 $ 922,344 $ 814,903 $ 1,028,477 Sources: 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. Data for calendar year 2022 not yet available.

CITY OF LOMA LINDA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten (10) Fiscal Years
-162-
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 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 2,427,460,900 0.11804 100% 2022 3,443,419,657 539,261,065 165,130,534 4,147,811,256 1,514,541,585 2,633,269,671 0.11599 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
-163-
San Bernardino Total Total
Fiscal Basic Colton Redlands Community Tax Direct
Year Levy Unified Unified College Water Rate Rate 2
2013 1.0000 0.14880 0.06410 0.04590 0.16250 1.42130 0.51917 2014 1.0000 0.11870 0.06290 0.04190 0.16250 1.38600 0.11793 2015 1.0000 0.09730 0.05940 0.03930 0.16250 1.35850 0.11792 2016 1.0000 0.11690 0.05670 0.04030 0.16250 1.37640 0.11792 2017 1.0000 0.14540 0.05240 0.03500 0.16250 1.39530 0.11792 2018 1.0000 0.09390 0.04940 0.03760 0.15250 1.33340 0.11792 2019 1.0000 0.11160 0.03240 0.04070 0.15250 1.33720 0.11805 2020 1.0000 0.10160 0.03390 0.05620 0.14250 1.33420 0.11805 2021 1.0000 0.10310 0.03600 0.06510 0.14250 1.34670 0.11804 2022 1.0000 0.10810 0.06620 0.05340 0.13000 1.35770 0.11599 Sources: HdL Coren & Cone, San Bernardino County Assessor combined tax rolls. 1 2 Total Direct Rate is the weighted average of all individual direct rates.

Schools
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 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.

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. The approval of ABX1 26 eliminated Redevelopment from the State of California for fiscal year 2012/2013 and years thereafter.

CITY OF LOMA LINDA
Principal Property Taxpayers
As of June 30, 2022
-164-
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Taxpayer Valuation Rank Assessed Value Valuation Rank Assessed Value Wi Loma Linda LLC 139,165,098 $ 1 5.44%
Loma Linda University/Medical Center1 43,312,341 2 1.69% 25,692,320 $ 3 1.67% Timber Hills Associates LP 58,973,136 3 2.30% 41,500,000 1 2.70% Sierra Vista Apartments SPE 37,130,730 4 1.45%
Loma Linda Heritage Associates 30,613,378 5 1.20% 26,381,673 4 2% Oasis Townhomes LLC 28,392,578 6 1.11% 24,467,853 5 1.59% WOHL Westport LLC 21,496,417 7 0.84%
Chancellor Properties LLC2 20,467,152 8 0.80%
DRC Industrial CBC 19,938,845 9 0.78%
Blossom Grove California LLC 14,889,446 10 0.58%
General American Life Insurance Company 36,646,547 2 2.39% Granite Lakes Apartments LP 20,000,000 6 1.30%
Spreen Investment Company II 9,067,265 10 0.59%
NHI-Reit of Clifornia LP 11,565,994 7 0.75%
Monterey Pines LLC 10,316,486 8 0.67%
Loma of California Health Center LLC 9,966,435 9 0.65%
$ 16.1900% 215,604,573 414,379,121 $ 14.03%
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. 2022 2013

CITY OF LOMA LINDA
Property Tax Levies and Collections
Last Ten (10) Calendar Years
-165-
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 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%
2022 1,371,196 1,353,754 98.7% - 1,353,754 98.7%
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.

Collected within the
Fiscal Year of the Levy Total Collections to Date

CITY OF LOMA LINDA
Ratios of Outstanding Debt By Type
Last Ten (10) Fiscal Years
-166-
Tax General Total Percentage
Fiscal Lease Loans Allocation Revenue Obligation Lease Water Primary of Personal Per Year Liability Payable Bonds Bonds Bonds Liability Bonds Government Income Capita1 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 2022 82,500 - - - 10,000 67,447 4,520,229 4,680,176 1% 179 Details regarding the government's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics for personal income and population.

Source: City of Loma Linda Finance Department
As a result of the disolution 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 November, 2016.

Governmental Activities Business-Type Activities
Note:

CITY OF LOMA LINDA
Ratios of General Bonded Debt Outstanding
Last Ten (10) Fiscal Years
-167-
Less: amounts Percentage of
General Available in Debt Estimated
Fiscal Obligation Service Actual Taxable Per
Year Bonds Fund Total Value of Property1 Capita2
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%
2022 10,000 - 10,000 0.000% 39%
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 2 Population data can be found in the schedule of Demographic and Economic Statistics.

Source: City of Loma Linda Finance Department 1
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for the property value data.

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CITY OF LOMA LINDA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
-168-
2021-2022 Assessed Valuation 2,633,269,398 $
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/22 Applicable (1) Debt 6/30/22 San Bernardino Valley Joint Community College District 730,017,126 $ 3.093% 22,579,430 $ Colton Joint Unified School District 189,142,661 0.745% 1,409,113 Colton Joint Unified School District Community Facilities District No.2 3,345,000 26.425% 883,916 Redlands Unified School District 59,303,512 12.548% 7,441,405 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 32,313,864 $ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:

San Bernardino County General Fund Liability 188,035,000 $ 0.989% 1,859,666 $ San Bernardino Country Pension Liability 119,835,000 0.989% 1,185,168 San Bernardino County Flood Control District General Fund Liability 44,780,000 0.989% 442,874 Colton Joint Unified School District Certificates of Participation - 0.000% - Redlands Unified School District Certificates of Participation - 0.000% - City of Loma Linda Lease Liability - 0.000% -
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 3,487,708 $ OVERLAPPING TAX INCREMENT DEBT: 243,425,000 $ 3.815-100% 31,365,931 $

TOTAL DIRECT DEBT -
TOTAL OVERLAPPING OBLIGATION DEBT 67,167,503
COMBINED TOTAL DEBT 67,167,503 $
Ratios to 2021-22 Assessed Valuation:

Total Overlapping Debt (excluding tax increment)…….…………………………………. 1.23% Total Direct Debt…………….…………………………………………………………………..……. 0.00% Combined Total Debt (excluding tax increment)………………………………………………………………… 2.55% Ratios to Redevelopment Incremental Valuation ($1,515,805,080):

Total Overlapping Tax Increment Debt…………………………………….. 2.07% (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
-169-
2013 2014 2015 2016 2017
Debt Limit 60,098,744 $ 61,135,079 $ 65,100,609 $ 67,899,250 $ 71,833,863 $ Total net debt applicable to limit 89,011,770 87,512,815 84,255,561 80,940,806 79,042,798 Legal debt margin $ (28,913,026) $ (26,377,736) $ (19,154,952) $ (13,041,556) $ (7,208,935) Total net debt applicable to the limit
as a percentage of debt limit 148.11% 143.15% 129.42% 119.21% 110.04% 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%).

-170-
2018 2019 2020 2021 2022
$ 83,537,933 79,766,211 $ 88,334,356 $ 91,585,287 $ 99,308,410 $ 70,956,788 76,408,050 75,904,018 71,068,061 67,167,503 $ 12,581,145 3,358,161 $ 12,430,338 $ 20,517,226 $ 32,140,907 $

95.79% 84.94% 85.93% 77.60% 67.64%
Net Assessed Value 2,633,269,398 $
Plus Exempt Property 14,954,866 Total Assessed Value 2,648,224,264 $ Debt Limit: 3.75 percent of Total
Assessed Value 99,308,410 $
Less: Debt applicable to Limitation:

Total net debt applicable to limitation 67,167,503 Legal Debt Margin 32,140,907 $

CITY OF LOMA LINDA
Pledged Revenue Coverage
Last Ten (10) Fiscal Years
-171-
Operating Net Revenue
Fiscal Gross Expenses Available for Debt Service
Year Revenues Less Depreciation Debt Service Requirements Coverage 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% **
2022 7,517,291 3,334,796 4,182,495 375,625 1113% **
Note:
**Bond was refinanced in FY 2017, no principal payment due until 7/1/2017 Source: City of Loma Linda Finance Department
Water Revenue Bonds
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.

CITY OF LOMA LINDA
Demographic and Economic Statistics
Last Ten (10) Fiscal Years
-172-
Per Loma Linda Redlands
Capita Academy Bryn Mawr Mission School Unemployment
Fiscal Personal Personal (Private) Elementary Elementary District Rate Year Population 1Income 2Income 3 Enrollment 4 Enrollment 5 Enrollment 5 Enrollment 5(percentage) 6 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 2021 24,895 684,049,000 27,477 1,272 636 581 20,352 7.1 2022 25,349 740,821,000 29,224 1,294 612 560 20,162 8.0 Sources: 1 State of California, Department of Finance
2 As of FY 2016 Data provided by HdL Companies
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 6 California Employment Development Department

CITY OF LOMA LINDA
Principal Employers
Current Fiscal Year
-173-
Percentage Percentage
of total City of total City
Employer Employees Rank Employment Employees Rank Employment Loma Linda University Medical Center 6,146 1 28.36% 7,549 1 44.11% Jerry L. Pettis VA Med. Ctr. 3,588 2 16.56% 2,268 3 13.25% Loma Linda University 2,639 3 12.18% 3,562 2 20.80%
University Health Care 1,403 4 6.47% 1,338 4 7.82%
Total 13,776 63.57% 14,717 85.98%
Veterans Affairs Personnel Department
Total number of jobs within City limits provided by Employment Development Department, Labor Market Information Division
Source: City of Loma Linda Finance Department
2022 2013

CITY OF LOMA LINDA
Full-Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
-174-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General government 29.5 30.5 31.5 32.5 33 34.5 35.5 34.5 36.5 39 Public safety
* Sheriff
Officers 12.77 12.77 12.77 15.26 19.02 19.36 19.36 19.36 19.36 20.74 Civilians 5.03 5.03 5.03 5.81 7.1 7.1 7.1 7.2 7.2 7.6
Fire
Firefighters and officers 23 23 23 26 26 24 28 28 28 27 Civilians 4 5 5 5 5 4 4 3 3 5
Highways and streets
Maintenance 4 4 4 4 4 3 6 5 5 3
LL Connected Communities 3.5 3.5 2.5 2 2 2 2 2 2 2
Sewer 2 2 2 2 2 2 2 2 2 2
Water 11 12 11 11 11 11 11 11 11 9
Total: 94.8 97.8 96.8 103.57 109.12 107 115 112.06 114.06 115.34 * 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
-175-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
Sheriff
Calls for service 20,846 21,673 22,759 42,044 27,588 26,662 26,580 28,845 29,274 26,768 Citations issued by Deputies 1,653 5,988 1,034 1,161 2,373 2,068 1,061 1,548 760 1,257 Physical arrests 790 730 669 828 863 729 878 638 641 536 Fire Total number of calls answered 3,213 3,797 4,005 4,404 5,343 4,996 4,654 4,371 4,576 5,276 % of calls for medical aid 63 65 64 57 54 60 60 61 62 58 Highways and streets Street resurfacing (miles) 5.1 2.0 1.2 3.7 1.6 6.1 3.7 4.9 2.5 9.0 Potholes repaired 11 7 18 15 21 59 19 30 25 19 Water New connections 3 1 - 8 5 23 43 52 90 47 Water main breaks 10 21 8 14 10 19 6 23 6 9 Average daily consumption 13.73 13.75 13.00 11.10 11.18 12.70 11.81 11.87 13.78 13.24 (acre foot)
Wastewater
Average daily sewage treatment 4.1 4.0 4.0 3.5 3.0 4.0 4.0 4.0 4.0 4.0 (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
-176-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
Public safety
* Sheriff
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 10.5 11.77 11.77 11.77 11.00 11.00 11.00 11.00 11.00 12.00 Fire Stations 2 2 2 2 2 2 2 2 2 2 Vehicles 17 16 15 15 17 17 15 16 18 17
Highways and streets
Streets (miles) 64.64 64.64 64.64 64.64 65.00 65.70 66.23 68.86 70.71 70.10 Streetlights 1,470 1,472 1,483 1,024 1,532 1,551 1,607 1,758 1,821 1,833 Culture and recreation Parks 13 13 13 13 13 13 13 13 13 13
Park acreage 90.33 90.33 90.33 90.3 90.33 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) 77.00 77.00 77.00 77.20 111.45 112.98 112.98 118.37 92.74 92.74 Fire hydrants 964 997 917 939 950 991 995 1,002 1,048 1,080 Maximum daily capacity 11,305 12,220 12,220 13,800 13,200 13,320 13,320 13,200 13,200 12,955 (gallons per minute)
Sewer
Sanitary sewers (miles) 67.50 67.50 67.50 61.30 65.00 66.43 66.43 70.33 70.33 74.80 Storm sewers (miles)** 15.08 15.45 15.61 15.61 15.61 16.47 17.11 17.16 17.16 17.90 * Sheriff services are contracted through the County of San Bernardino Sheriff's Dept. ** Data for fiscal years 2013-2021 were updated to reflect more recent information.

Sources: City of Loma Linda Public Works and Fire Departments, San Bernardino County Sheriff's Department
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Newport Avenue Landscaping Project

CITY COUNCIL AGENDA
PACKET
AGENDA ITEM NO 3

CITY COUNCIL AGENDA
PACKET
AGENDA ITEM NO 4

Vicinity Map/Project Site Area
CITY OF Loma Linda

FINAL ENVIRONMENTAL CHECKLIST FORM

AND INITIAL STUDY

1. Project Title: 1.6 Million Gallon (MG) Water Storage Tank

2. Lead Agency Name and Address:

City of Loma Linda
Community Development Department
25541 Barton Road
Loma Linda, CA 92354

3. Contact Person and Phone Number:

Lorena Matarrita
Community Development Director
(909) 799-2830

4. Project Location: The Project Site is located east of Mountain View Avenue and south of Beaumont Avenue on three Assessor’s Parcel Numbers being 0293-052-17, -18, and -21 (see Figures 1 and 2). Parcel 0293-052-21 will be used mainly for the access road, pipeline, and transmission line and is 10.26 acres of which 1.11 acres will be disturbed.

Parcel 0293-052-21 will be the location of the new 1.6 MG water tank; the parcel is

25.14 acres and approximately 1.72 acres will be disturbed. Parcel 0293-052-17 is the proposed location of the end of the drain line connecting to an existing basin on-site; the parcel is 7.16 acres and approximately 0.02 acres will be disturbed. Approximately

2.85 acres of the 42.56-acre Project Site will be disturbed.

The Project Site is approximately 1,295 feet east of an existing 3.2 MG reservoir and 830 feet southeast of an existing 8.0 MG tank; both located in Pressure Zone 2. The Project Site is currently vacant and is owned by the City of Loma Linda. Two Southern California Edison electrical transmission towers are adjacent to the east. Access to the Project Site for regular maintenance would be from Beaumont Avenue.

5. Project Sponsor’s Name and Address:

City of Loma Linda
Public Works Department
25541 Barton Road
Loma Linda, CA 92354

6. General Plan Designation: Open Space (OS)

7. Zoning: Single-Residential (R1)

8. Project Description:

The Proposed Project is a new 1.6 million gallon (MG) water storage tank to be located on a hillside in the southern portion of Loma Linda east of Mountain View Avenue. It will be located on property south of Beaumont Avenue and within the City’s Pressure Draft Initial Study for the City of Loma Linda

1.6 MG Water Tank Page 2
Zone 2A. The water storage tank will be approximately 100 feet in diameter and approximately 35 feet in height, welded steel reservoir to be built on grade on the south side of a slope in the South Hills reducing its visibility. The Proposed Project also includes a construction road to be developed from Beaumont Avenue to the tank site.

The road will also be trenched to lay a new pipeline to deliver water from the tank to the existing pipeline in Beaumont Avenue, and eventually paved for maintenance access.

Additional pipe from the construction road in Beaumont Avenue to the current water system terminus will also be constructed. A 100 square-foot concrete pad will be constructed adjacent to the water tank to allow for a back-up generator in the event of power failure. Lastly, the Project includes a spillway (drain line) from the tank site to the existing catch basin just west of the tank site (see Figure 3 Site Plan).

Electrical service is required from Southern California Edison (SCE) for security lighting and to serve the Supervisory Control and Data Acquisition (SCADA) system, which allows for monitoring water levels and opening and closing valves remotely. The electrical wire will be in conduit1 and placed underground along the access road.

Construction of the Project is estimated to take one-year.

The City’s current water system includes four above-ground steel water storage tanks and two in-ground, pre-stressed concrete reservoirs with a combined storage capacity of 14 MG. The Proposed Project will therefore increase the City’s storage capacity by approximately 11 percent. The four reservoirs provide storage for the City’s five difference pressure zones. The Proposed Project will expand storage in the southerly pressure zone known as 2A. Pressure is constantly regulated by six pressure reducing stations. Booster pumps transfer water from the City’s six groundwater production wells to storage reservoirs and between pressure zones. The water supply for the City is entirely groundwater pumped from the underlying Bunker Hill Basin. The source of water for the storage reservoir will be the Zone 2A sources; Mt. View #3, Mt. View #5, Mt. View #6, and Richardson #5 Wells.

9. Surrounding Land Uses and Setting:

The Project Site is located in an undeveloped area in the foothills of the City. Residential developments occur on the north side of Beaumont Avenue while the foothills south of Beaumont Avenue are relatively undeveloped. Southern California Edison (SCE) transmission lines pass through the area and two electrical towers are locate east within a quarter mile of the Project Site. Several dirt access roads/hiking paths are found throughout the general area.

1 Conduits are used to provide extra protection for electrical wires. Conduit protects both humans and the electrical wiring to prevent wires from pulling loose and creating shock hazards. It's important to use conduit even for buried wires to prevent damage to wiring from digging and moisture.

REGIONAL LOCATION

LILBURN
C O R P O R A T I O N FIGURE 1
Source: Brian F. Smith & Associates, Inc.; January, 2022.

1.6 MG Water Tank
City of Loma Linda, California

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Loma Linda City CouncilFebruary 14, 2023

Loma Linda City Council
February 14, 2023