CITY OF LOMA LINDA
CITY COUNCIL AGENDA
REGULAR MEETING
Tuesday, January 9, 2024, 7:00 PM
Council Chambers
25541 Barton Road
Loma Linda, CA 92354
Est. Duration: 1 hr 55 min
A regular meeting of the City Council of the City of Loma Linda is scheduled in the Council Chambers, 25541 Barton Road, Loma Linda, California. Under Municipal Code Section 2.08.010, study sessions 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 agenda and reports are also located on the City’s Website at www.lomalinda-ca.gov.
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Clerk’s Office, 25541 Barton Road, Loma Linda, CA during normal business hours. Such documents are also available on the City’s website at www.lomalinda-ca.gov subject to staff’s ability to post the documents before the meeting.
Persons wishing to speak on an agenda item, including any closed session items, are asked to complete an information card and present it to the City Clerk before 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 before testifying.
The Oral Reports/Public Participation portion of the agenda pertains to items NOT on the agenda and is limited to 30 minutes; 3 minutes are allotted for each speaker. Under 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 before 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.
1: Call to Order
1A. Call to Order
1B. Roll Call
1C. Workshop - 6:00pm - Community Room
Audit Committee - Audit Report for Fiscal Year 2022-2023 1D. Invocation and Pledge of Allegiance - Mayor Dupper
1E. Items to be Added or Deleted
1F. Oral Reports/Public Participation - Non-Agenda Items (Each Speaker limited to 3 minutes. Pursuant to the Brown Act, no action or discussion can be taken by City Council) 1G. Conflict of Interest Disclosure
2: Scheduled and Related Items
2A. Joint meeting of the City Council and Housing Authority regarding presentation of Annual Comprehensive Financial Report for FY 2022/2023
— Presentations by Rogers, Anderson, Malody & Scott (RAMS) and Finance 3: Consent Calendar
3A. Demands Registers - December 26, 2023 and January 9, 2024 [Finance] 3B. Approval of Minutes 12-12-2023 [City Clerk]
3C. Treasurer's Report - December 2023 [Finance]
3D. Fire Department's Activity Report - December 2023 [Fire] 3E. Council Bill #R-2024-01 - Resolution of a Purchase and Sale Agreement [Administration/Community Development]
— Adopt Council Bill #R-2024-01 - A Resolution authorizing the execution of a Purchase and Sale Agreement as to that certain property previously designated as surplus with Anlai Jiao and Kelsey Bullock. 3F. Council Bill #R-2024-02 - Resolution to amend the Miscellaneous and Fire Compensation Plans [Administration] — Adopt Council Bill #R-2024-02 - A Resolution to Amend the Miscellaneous and Fire Compensation Plans 3G. Amendment to the City Attorney Agreement [City Manager] 3H. Fiscal Year 2023/2024 Supplemental Appropriations for Public Works Department [Public Works] 3I. Authorize Purchase of Two Traffic Signal Backup Battery Systems [Public Works] — Authorize purchase of two (2) Clary SP1250 traffic signal battery backup systems including installation for $18,820.91.
3J. Notice of Completion - Pavement Rehabilitation by Overlay Method (CIP 23-115) [Public Works] — Accept as complete and authorize recordation of Notice of Completion for the Pavement Rehabilitation at Various Location by All American Asphalt.
3K. Water and Wastewater Rate Study Draft Report [Public Works/Finance] 4: Old Business
5: New Business
5A. Approve an Agreement with CGI Digital in their Street Banner Program [Community Development] — Authorize and approve a three-year agreement with Community Showcase Banners, LLC (dba CGI Digital) for participation in their non-cost decorative street banner program.. 6: Reports
6A. Reports of Council Members
6B. Reports of Officers - Status Report on 1.6 MG Reservoir [City Manager] 7: Adjournment
POSTING
I, Lynette Arreola, City Clerk, do hereby certify and declare that, I caused this agenda to be posted at the following three (3) locations, to-wit:
Loma Linda Branch Library, 25581 Barton Road, Loma Linda, California City Council Chambers, 25541 Barton Road, Loma Linda, California U. S. Post Office Annex, Newport Avenue, Loma Linda, California Lynette Arreola, City Clerk
City of Loma Linda, California
Date Posted: January 4, 2024
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Joint meeting of the City Council and Housing Authority regarding presentation of Annual Comprehensive Financial Report for FY 2022/2023
Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Scheduled and Related Items Item: 2A
To
City Council
From
Sonia Fabela, Finance Director
Via
T Jarb Thaipejr, City Manager
Attachments
Annual Comprehensive Financial Report FY Ending 2023.pdf GANN Limit Report - City of Loma Linda.pdf
SAS 114 - City of Loma Linda.pdf
Approved/Continued/Denied by City Council
Date:
Presentations by Rogers, Anderson, Maloday & Scott (RAMS) and Finance.
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
CITY OF LOMA LINDA, CALIFORNIA
For the Fiscal Year Ended June 30, 2023
Prepared by:
City Manager’s Office
Finance Department
25541 Barton Road, Loma Linda, CA 92354
Telephone: (909) 799-2840 – Fax: (909) 799-2893
http://www.lomalinda-ca.gov
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CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting ..............................xv Principal Officials ................................................................................................................. xvi Organization Chart .............................................................................................................. xvii
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, 2023
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 Liability 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, 2023
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 This page intentionally left blank
City of Loma Linda
25541 Barton Road, Loma Linda. California 92354-3160 • (909) 799-2800 • FAX (909) 790-2890 Sister Cities: Manipal, Karnataka, India - Libertadore, San Martin, Argentina, Puntarenas, Costa Rica • www lomalinda-ca.gov i
December 20, 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, 2023. The financial statements contained in this report are presented in conformity with generally accepted accounting principles (GAAP) and have been audited in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards (GAGAS) by an independent certified public accountants firm.
The Annual Comprehensive Financial Report includes the financial activity for all funds of the City, Housing Authority, Public Financing Authority and Fiduciary Funds. The report is organized into three major sections which include the Introductory Section, the Financial Section, and the Statistical Section.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation involves estimates and judgments by management. It is believed that the City’s internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions.
Rogers, Anderson, Malody and Scott, LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City of Loma Linda’s financial statements for the year ended June 30, 2023. 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 11,838 employees, the one of the largest employer in San Bernardino County. Loma Linda (“Beautiful Hill”), originally known as “Mound City”, has a history of being a health-conscious community, and in 1993 became the first “smoke free” city in San Bernardino County. The Seventh-Day Adventist Church purchased the Loma Linda Resort Hotel from a group of businessmen and physicians from Los Angeles hospitals and converted it into the Loma Linda Sanitarium in 1905. The Sanitarium eventually became a full service medical facility and medical college, the forerunners of the Loma Linda University and Medical Center.
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
ii
Loma Linda covers an area of 8.6 square miles and has a resident population of 25,228, as certified by the State Department of Finance, as of June 30, 2023. The City has decreased by 121 residents from the previous year. Loma Linda’s median income is $63,272, which is 14.3% higher than the average for San Bernardino County.
As presented in the ten year population history
chart, Loma Linda’s population has plateaued
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 decline of 121 to the City’s
population of its current total of 25,228 as of
June 30, 2023 compared to the previous year.
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
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Population History
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
iii
Basic City operations are accounted for in the City’s General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion.
The Government-Wide financial statements (Statement of Net Position and Statement of Activities) follow the accrual basis of accounting. As required by GASB, an accompanying summary reconciliation schedule is presented following the Governmental fund financial statements. These reconciliation schedules are presented on pages 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 2022/2023 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 2022/2023 Fiscal Year, the City’s Community Development Department, which is comprised of the Planning and Building and Safety Divisions, has achieved numerous commendable accomplishments. Despite the Covid-19 pandemic over the past three years, the Department has processed a higher number of permits and entitlements compared to previous fiscal years, a reflection of the department’s unwavering commitment to facilitating development even during difficult times.
The Building and Safety Division saw a significant rise in applications received, surpassing prepandemic numbers. In 2019, they processed 638 applications. And in the most recent year, this figure increased to 641 permits. Throughout the fiscal year, Building staff diligently continued outperforming their responsibilities, including plan checks, permit issuance, and inspections, and ensuring the smooth progression of projects.
Similarly, the Planning Division, responsible for land use and zoning activities, experienced substantial growth. They actively assisted residents, developers, and businesses both in-person and online to ensure proposed uses complied with city codes and the General Plan. In 2020, the Division issued 184 planning permits, which climbed to 250 in 2021. Despite facing staffing shortages throughout 2022, the team effectively processed 283 planning permits. The upward trajectory is expected to continue during the 2023 calendar year.
The Department also witnessed a remarkable increase in Accessory Dwelling Unit (ADU) permits.
In 2021, they process 19 permits, which impressively surged to 51 in 2022. The projections for City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
iv
2023 suggest a review of over 60 ADU/JADU (Junior ADU) permits, indicating growing demand for such projects in the city.
Aside from handling a surge in permits, the Community Development Department successfully completed various notable development activities over the past year, including finalizing the Candlewood Hotel and Vim + Vigor Fitness (formerly Fitness 19) facility, as well as issuing building permits for the Courtyard by Marriott Hotel. Additionally, they achieved significant progress with projects like the 103 detached condominiums project and the 51 lot subdivision that encompassed the expansion of the Frink Adobe site. The Department also embraced advancements in sustainable infrastructure, processing their first Electronic Vehicle (EV) charging station project, with expectations of more to come due to new streamlining laws for EV stations.
Among the ongoing endeavors are the Canyon Ranch annexation and the subdivision of 126 residential lots, both of which hold the promise of expanding housing opportunities within the community. Moreover, the Community Development Department is also reviewing a conceptual plan for 200+ apartment units alongside a 5-acre commercial site within the Groves Specific Plan area, designed to meet the evolving needs of the city's residents and businesses.
Looking ahead to the future, the Community Development Department is at the forefront of embracing technological advancements, as they work towards the completion of the new EnerGov/EPL permitting software system implementation. This forward-thinking move signals a transition away from traditional hard-copy application processing in favor of electronic submittals, streamlining the development process and enhancing efficiency.
Through these ambitious projects and forward-looking goals, the Community Development Department exemplifies their dedication to fostering a vibrant and sustainable city for the benefit of all residents and stakeholders.
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 completed its vehicle replacement/upgrade with purchase of two command vehicles and an Alternative Response Vehicle (ARV) as well as repair and upgrade projects to facilities at both fire stations.
Community Risk Reduction (CRR), which includes Fire Prevention, Disaster Preparedness, Code Enforcement, Animal Control, and Parking Enforcement, were busy in 2022/23.
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.
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
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Disaster Preparedness Division updated the Emergency Operations Plan (EOP), closed out the Homeland Security Grant 2020, and continued to increase resiliency in the community through equipment purchases and training of City staff.
At the beginning of 2022, Code Enforcement and Animal Control were officially reassigned from the Community Development Department to the Fire Department. As part of the pandemic response, Code enforcement assisted with meal deliveries to our most at-risk members throughout our City. The team also 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 record low levels, and rabies vaccination compliance was improved. The City currently utilizes the City of San Bernardino for shelter services.
Parking Enforcement maintained accessible public streets and drive aisles for emergency responders, continued to enforce permit parking zones for eligible residents and continued providing officer towed vehicles blocking for Public Works projects on public streets.
Information Systems Department
Information Systems has been involved in the bidding, planning, vendor negotiation, and implementation process for the complete overhaul of the city’s council chambers. The previous configuration was nearing 15 years old and in desperate need of an update. The project started in the 4th quarter of the 2022-2023 fiscal year and is expected to be completed by the 1stof the 2023- 2024 fiscal year. This update is providing modern recording and streaming functions, a modern voting solution, greater public interaction tools, and more meeting control options to the City Clerk.
The city installed a new storage area network which is the backbone storage for all the city’s servers. The previous solution hit end of life and is no longer supported by its manufacturer. This new solution increases the transfer rates of data and the total storage capacity.
The city initiated Security Operation Center (SOC) and Network Operation Center (NOC) services.
This integrated two vetted 3rd party vendors into the city’s network for security scanning, monitoring, patching, and remediating. This allows for better coverage and preparation for the known and unknown issues, faults, and threats.
The information systems department was involved in implementation and deployment of new software for water production and city permitting. Water production was using a dated software called Tokay for nearly a decade and the manufacturer offered a modern solution that utilizes current day computing frameworks; coupled with the city’s systems, the software has been more stable and secure than ever before. City permitting has begun its transition away from the current 15 year old HDL permitting solution, to a modern solution that integrates with the city’s current Tyler Enterprise ERP software (formerly known as Munis). The Information Systems Department has been playing an integral role in these transitions.
Additional upgrades to the city wide CCTV system and security has been completed. This includes additional cameras through the city, and security sensors at city sites allowing better security and visibility at these crucial locations.
The Loma Linda Connected Community Program (LLCCP), 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 City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
vi
involving greater than 50% of the structure) to equip the new structures with a fiber-optics interface and copper cabling throughout. 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.
Successor Agency, Oversight Board and Loma Linda Housing Authority:
Successor Agency
On February 1, 2012, the Redevelopment Agency was dissolved per the State of California. On this date all assets, property contracts, and leases of the former redevelopment agency transferred to a Successor Agency. The City of Loma Linda elected to become the Successor Agency for its former redevelopment agency. The Successor Agency created a Redevelopment Obligation Retirement Fund, which continues to make payments on the approved annual Recognized Enforceable Obligation Schedules (ROPS), maintain reserves, perform required enforceable obligations, enforce all rights for the benefit of taxing agencies and pursue the disposition of property based on the approved Long Range Property Management Plan (LRPMP). The annual ROPS for bi-annual operating periods of June – December and January – June must be approved by the Countywide Oversight Board, and submitted to the Department of Finance (DOF), State Controller’s Office (SCO) and County Administration Office (CAO) for final review and approval before funds are disbursed to the Successor Agency. In November 2016, the Successor Agency refinanced three outstanding bond issues totaling $33,710,000 into two bond issues (2016 A Tax Allocation Refunding Bonds and 2016 B Taxable Tax Allocation Refunding Bonds). The refinancing will yield saving of approximately $7,451,850 over the remaining term of the bonds, with final redemption on August 1, 2030.
Countywide Oversight Board
On July 1, 2018, in accordance with Health and Safety Code section 34179(j), the twenty six Redevelopment Agencies (RDA) oversight boards in San Bernardino County consolidated into one Countywide Oversight Board. The Countywide Oversight Board is composed of one member each appointed by the County Board of Supervisors, City Selection Committee, Independent Special District Selection Committee, San Bernardino County Superintendent of Schools, Chancellor of the California Community Colleges, a public member appointed by the County Board of Supervisors and a member of Recognized Employee Organization (Teamsters Local Union No. 1932). The Countywide Oversight Board has fiduciary responsibilities to holders of enforceable obligations and taxing entities that benefit from property tax distributions, and will continue to have a critical role in the RDA dissolution process until all Successor Agencies are formally dissolved.
Loma Linda Housing Authority
As part of the Redevelopment Agency 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 2022/2023, 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 City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
vii
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. There is one property in the Affordable Housing Program with a mortgage loan by the Loma Linda Housing Authority that is for sale. Several applications have been submitted and reviewed for qualifications by the City’s Housing Consultant and Housing Attorney.
Under 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 of four units on San Mateo Drive and four single-family homes on Juanita Street, which are all subject to long-term affordability covenants.
Economic Development
The Economic Development Department, under the guidance of the City Manager’s Office, has been successful in fostering a substantial pipeline of private development projects in Loma Linda.
Recent accomplishments include the completion of the Candlewood Hotel, a specialized Medical Office Building catering to spinal surgery, and a state-of-the-art Vim + Vigor Fitness (formerly Fitness 19) facility.
Listed below are other projects that showcase the city’s commitment to growth and progress; they are either currently under construction or poised to begin shortly. “Sierra Crest” - subdivision and design for a 103 detached condo project. “Golden Crest” - subdivision and design for 51 residential lots, new Zanja pedestrian trail and expansion of the Frink Adobe site.
EV car charging station project.
Canyon Ranch annexation and 126 residential lot subdivision. A half dozen small multifamily proposals throughout the city. California Eye Care Center, 30,382 sf building featuring retail and medical offices. Park Avenue 212 Senior-Living Apartments, comprising of 213 units.
These projects all serve as compelling evidence of Loma Linda’s dedication to further enhancing its economic landscape and overall community well-being.
In addition, the Department has been leading various projects at promoting and enhancing our city’s appeal to potential investors and residential alike. One of their most notable endeavors has been the initiation of a video production project, showcasing the exceptional attributes of our city.
These videos are anticipated to play a pivotal role in attracting investors and fostering economic growth within our community. Moreover, the division has taken a pioneering step by establishing the city’s inaugural social media presence, accompanied by a well-defined content and moderation policy. Once the platforms are set up, these channels will serve as powerful tools to amplify the city’s diverse range of events and success stories, bolstering its overall image and driving further engagements with residents and potential visitors alike. This forward-thinking approach promises to make a significant impact on our local economy.
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June 30, 2023 Annual Comprehensive Financial Report
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Capital Improvement Program (CIP) Projects:
Public Works
During the 2022/2023 fiscal year, the Public Works Department completed or continued with the following projects: pavement rehabilitation on Poplar St., Pecan Way, Cedar Way, Murphy St., Welebir St., Loma Linda Dr., Cielo Ln., Almond Ct., Orange Crest Way, Huron St., Cypress St., Rosewood Dr., Sun Dr., Spade Dr., Saint David St., Gower St., and Mt. View from Redlands Blvd. to Barton Rd; Repaired sidewalks and ADA access ramps at various locations; Installed a walking track at Hulda Crooks Park; and completed various projects for the Art in Public Places.
LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
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 2023, the median price of a home in Loma Linda
was $575,000 an increase of $21,750 or 3.9%, from
$553,250 in 2022, according to County data. 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
2023. 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.
$0
$200,000
$400,000
$600,000
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Median Housing Prices
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
ix
The Sales Tax History chart is a ten year
historical presentation of the City’s sales
tax revenue through fiscal year ending
June 30, 2023. In 2023, the City received
$5,905,806. This is a decrease of 26% or
$2,045,350 from $7,951,156 in fiscal year
2022. This decrease in revenue can be
attributed to two unfortunate events;
revenues that were incorrectly allocated to
the City in fiscal year 2022 were reduced
from the 2023 amount and a major sales
tax producer within the City closed their
doors as of December 31, 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.
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, 2023. As
shown here, General Fund property taxes have
steadily increased in fiscal years 2014 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, 2023, property
tax revenues were reported at $2,711,506, a net increase of $227,967 or 9.2% from fiscal year 2022. Property tax revenue is reported in the attached Statistical table on pages 158-165.
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, 2023, the San Bernardino County’s Assessor reported an increase in city wide assessed property values of
8.15%, with Loma Linda showing a 7.39% 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 42.4% decrease in property transfer tax from $125,626 in 2022 to $72,412 in 2023. 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.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Property Tax History
General Fund
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Sales Tax History
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
x
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 2013/2014. In
fiscal year 2022/2023, the City collected $2,943,157 in VLF revenue, an increase of $197,856 or
7.2% due to an increase in property values within the City.
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, 2023.
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, 2023. 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 2022/2023, Enterprise Fund operating revenues for Water, Sewer and LLCCP combined, totaled $13,733,940, an increase of 1.1% over fiscal year 2021/2022, while operating expenses increased by $6,978,448 or about 75.3%, over the same period. The increase in operating expenses is largely due to pension-related accounting adjustment to adjust net pension liability and amortization of deferred outflows/inflows.
City of Loma Linda
Vehicle License Fee (VLF)
Revenue History
$0
$1,000,000
$2,000,000
$3,000,000
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
-$10
-$5
$0
$5
$10
$15
$20
$25
$30
$35
14 15 16 17 18 19 20 21 22 23
City of Loma Linda
10-Year General Fund History
(in millions)
Revenues
Expenditures
Net Change in
Fund Balance
FY Ending June 30th
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
xi
Water Operations
For Water Operations specifically, the Water
fund had an operating deficit in the amount of
$2,345,649 this year. Last year the Water fund
showed an operating surplus of $2,612,397 for
the year. As previously mentioned, expenses
increased from prior year due to a pensionrelated accounting adjustment. Note that the chart to the right does not include any “nonoperating” revenues or expenses, such as gain on disposal of assets, interest revenue of
$114,561, transfers in of $805,699, capital
contributions of $1,844,315, interest expense
of $130,140 and transfer out of $18,901.
Interest expense in the Water Fund has
decreased to $130,140 from $138,689 in 2022 which constitutes a 6.2% 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 monitoring water usage more efficient. Additionally, the City conducted a five year rate study to address the ongoing operating needs of the water and sewer systems. Adjusted water rates were implemented in March of 2019 and have increased each January until 2024. The City is currently undergoing a water and sewer rate study to continue to address ongoing operating needs of the water and sewer systems in the next five years.
Sewer Operations
For the operating period ending
June 30, 2023, the Sewer Fund
ended the year with an operating
change in net position of $(55,734).
Sewer revenues increased by
$396,585, or 7.2%, and operating
expenses increased by $2,091,716
or 53.7%. Similar to the Water
Fund, expenses for the sewer fund
increased by a significant amount
due to a pension-related
accounting adjustment. The chart
to the left shows the ten-year
financial operating history of the
Sewer Enterprise Fund. Note that
this chart does not include “nonoperating” revenues or expenses (i.e., interest revenue or interest
expenses, etc.) or contributions and transfers. 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 a five year rate study to address the ongoing operating needs of sewer system. New $(5)
$-
$5
$10
$15
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Water Operations Fund History
(in millions)
Revenue
Expense
Net change
in net
position
($1)
$0
$1
$2
$3
$4
$5
$6
14 15 16 17 18 19 20 21 22 23
FY Ending June 30th
City of Loma Linda
Sewer Enterprise History
(in millions)
Revenue
Expense
Operating
change in net
position
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
xii
sewer rates were implemented March of 2019, and have increased each January until 2024. The increases were deemed necessary in order to eliminate any operating losses, repay cash loans and build an emergency reserve fund. The City is currently undergoing a water and sewer rate study to continue to address ongoing operating needs of the water and sewer systems in the next five years.
Loma Linda Connected Communities Program
(LLCCP)
In fiscal year 2003/2004, an Enterprise fund was set up for the purpose of establishing requirements for standardized residential and commercial telecommunications cabling systems.
This 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 2022/2023 was the nineteenth full year of operations. For the operating period ending June 30, 2023, LLCCP ended the year with operating revenues of $323,033 compared to $326,196 in 2021/2022. Operating expenses of $535,869 are $263,056 or 96.4% higher than expenses for fiscal year 2021/2022. Expenses for the LLCCP fund increased due to a pension-related accounting. This pension adjustment contributed to the operating deficit in net position of $212,837 for the LLCCP fund. Additionally, net non-operating expenses, interest revenue and interest
expense, is slightly lower as interest on
outstanding loans to construct the Fiber
Optic Network, continues to go unpaid and
adds to the outstanding loan balance. The
chart above shows the ten-year financial
operating history of the Loma Linda
Connected Communities Program Fund.
Note that this chart does not include “nonoperating” revenues or expenses (i.e., interest revenue or interest expenses, etc.)
and transfers.
PENSION FUNDING STATUS
The City provides its full-time and certain part-time employees’ retirement and disability benefits through four defined benefit pension plans; Classic Miscellaneous, Public Employees’ Pension Reform Act (PEPRA) Miscellaneous, Classic Safety and PEPRA Safety Fire groups. The plans are all part of the California Public Employees’ Retirement System (CalPERS). The City makes required employer contributions to the plans based on the amounts determined by CalPERS actuaries. All City employees pay their required employee contribution based on the employees’ group/individual retirement plan formulas. For this year, the City made $1,899,052 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, 2022, therefore payments made to reduce the UAL are reclassified to Deferred Outflows of Resources in the government-wide statements. In fiscal year 2022/2023, the “City’s” share of retirement costs changed for Miscellaneous employees from 10.880% to 10.870%, for Miscellaneous PEPRA from 7.590% to
7.470%, for Safety plan from 21.790% to 21.840% and for Safety PEPRA from 13.130% to
12.780%. 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.
‐$400,000
‐$200,000
$0
$200,000
$400,000
$600,000
$800,000
15 16 17 18 19 20 21 22 23
Revenues
Expenditures
Operating
Change in
Net Position
FY Ending June 30th
City of Loma Linda
Loma Linda Connected Communities Program
Fund
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
xiii
DEBT ADMINISTRATION
As of June 30, 2023, the City and the Successor Agency had bond debt outstanding in the amount of $24,885,000. 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, 2023, the balance of each bond respectively is $3,280,000 and $17,350,000. Also in 2016/2017, the City issued the 2016 Water Revenue Refunding bonds in the amount of $5,615,000; combined with the 1978 Water bonds (general obligation) of $10,000. The City had a total bond debt balance of $4,255,000 at June 30, 2023.
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, 2023 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, 2023, 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, 2022. This was the nineteenth 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 an easily readable and efficiently organized ACFR. This report must satisfy both 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.
City of Loma Linda
June 30, 2023 Annual Comprehensive Financial Report
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, 2022
Executive Director/CEO
[Y
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-xviCITY 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 Arreola .................................................................................................. City Clerk Sonia Fabela ............................................................................. Finance Director/Treasurer Lorena Mattarita ........................................................... Community Development Director Daniel Harker ....................................................................................................... Fire Chief This page intentionally left blank
CITY OF LOMA LINDA
ORGANIZATION CHART
DEPT.
ADMINISTRATION FINANCE
DEPT. DEPT.
COMMUNITY DEVELOPMENT FIRE
DEPT.
PUBLIC WORKS
DEPT.
CITY CLERK
DEPT. SYSTEMS
INFORMATION
DEPT.
LOMA LINDA HOUSING AUTHORITY
Chairman: Phill Dupper
Vice Chairman: Ron Dailey
Authority Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
The People of Loma Linda
CITY COUNCIL
Sonia Fabela
Finance Director/
Treasurer
Fire Chief
Daniel Harker
City Clerk
Lynette Arreola
Public Works
Commissions
Director/City Engineer
T. Jarb Thaipejr
and
Boards
T. Jarb Thaipejr
City Manager City Attorney
Diane Robbins
Executive Director
T. Jarb Thaipejr
Executive Director
T. Jarb Thaipejr
LOMA LINDA FINANCING AUTHORITY
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Agency Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
T. Jarb Thaipejr
City Manager
REDEVELOPMENT SUCCESSOR AGENCY
Chairman: Phill Dupper
Vice Chairman: Ron Dailey
Authority Members: Rhodes Rigsby
John Lenart, Bhavin Jindal
Community
Development Director City Manager T. Jarb Thaipejr
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Council Members: Rhodes Rigsby,
John Lenart, Bhavin Jindal
City Manager
T. Jarb Thaipejr Lorena Matarrita
ASSIST NEW BUSINESS
RETAIN EXISTING BUSINESS
ECONOMIC RESOURCES
PUBLIC INFORMATION
CITY FISCAL ADMINISTRATION
BUDGET ADMINISTRATION
ACCOUNTING
PAYROLL
UTILITY BILLING
BUSINESS LICENSE
PARKING CITATION/DOG LICENSE
PAYMENTS
FIRE PROTECTION/SUPPRESSION
EMERGENCY MEDICAL SERVICES
FIRE INSPECTIONS
FIRE PREVENTION EDUCATION
DISASTER PREPAREDNESS
CODE / PARKING ENFORCEMENT
CITY COUNCIL RELATIONS
CITY MANAGEMENT
COMMUNITY &
INTERGOVERNMENTAL
RISK MANAGEMENT
HUMAN RESOURCES
CITY COUNCIL/AUTHORITY
RISK MANAGEMENT
ELECTION & CONFLICT OF
ENGINEERING
CAPITAL IMPROVEMENT/
PROJECT MANAGEMENT
DEVELOPMENT REVIEW
FACILITIES MANAGEMENT
FIELD SERVICES
PARKS
LANDSCAPE MAINTENANCE DISTRICT
STREET REPAIR
UTILITY SERVICES
WATER
SEWER
FLEET SERVICES
HOUSING AUTHORITY SECRETARY
BOARD RELATIONS
HOUSING PROGRAMS
BUDGET PREPARATION
INTEREST OFFICIAL
LEGISLATIVE RECORDS
MANAGEMENT SHERIFF CONTRACT
RELATIONS
DEVELOPMENT
STREET SWEEPING
LLCCP
TECHNOLOGY
NETWORK
FINANCIAL REPORTING SYSTEM SUPPORT
ADMINISTRATION
CDBG MANAGEMENT PLANNING (CURRENT & ADVANCED)
LAND USE, ZONING, AMENDMENTS,
DEVELOPMENT & ENVIRONMENTAL REVIEW,
HISTORICAL PRESERVATION & TRAILS
DEVELOPMENT
BUILDING
PLANCHECK REVIEW, BUILDING PERMIT
ISSUANCE, INSPECTION & CONSTRUCTION
MONITORING
STREET LIGHT
TRAFFIC SIGNAL MAINTENANCE
SENIOR CENTER
ANIMAL CONTROL
-xvii-
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735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
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IIIIJ
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, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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.
Emphasis of Matter
As discussed in Note 1 to the financial statements, in the year ended June 30, 2023, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. 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 and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. -3-
Required Supplementary Information
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 December 20, 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
December 20, 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, 2023. 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 $163,098,232 (net position); of this amount $131,392,829 is from governmental activities and $31,705,403 is from business-type activities, with $21,046,810 positive and $7,643,448 in negative unrestricted net position, respectively.
In the Government-Wide – Statement of Activities: The City’s net position increased 4.11% or $6,443,410 from $156,654,822 at the beginning of the year, to $163,098,232 at the end of the year. The increase is the net result of a positive change of $6,528,169 in governmental activities and a negative change of $84,759 in business-type activities. In the Government-Wide – Statement of Activities: During the current year, Governmental activities program revenues increased by $9,067,097; due to a net increase in combined operating/capital contributions and grants of $10,328,397 offset by a decrease in charges for services of $1,261,300. The increase in combined operating/capital contributions is primarily due to capital asset contributions (donated infrastructure) from developers in the Citrus Trails development. The decrease in charges for services is mainly due to lower developer impact fees received in 2023. Revenues from developer impact fees fluctuate depending on the volume and timing of development projects. Business-type program revenues increased by a net of $2,888,407 primarily due to capital contributions from donated infrastructure. In the Governmental Fund – Statement of Revenues, Expenditures, and Changes in Fund Balance: During the year, the General Fund reported a positive net change in fund balance of $2,317,341 from higher expenditures over revenues in the amount of $1,377,135 offset with other financing sources of $3,694,476. Of the total other financing sources, $2,928,307 relates to the receipt of the second and final grant allocation of the American Rescue Plan Act of 2021 (ARPA) grant allocation. The City has used the funds to offset expenditures related to public safety. The City implemented GASB Statement No. 96, which requires government entities to account for subscription-based information technology agreements by requiring recognition of subscription assets and liabilities. See Notes 5 and 6 to the Basic Financial Statements for details. The City’s net pension liability was $8,525,331 as of June 30, 2023. In the previous year, the City’s pension status became momentarily fully funded at a net pension asset position of $2,454,170. This was as a result of California Public Employees’ Retirement System (CalPERS) experiencing a 21.3% investment return in 2021 while it was a negative 6.1% rate of return for 2022 impacting the value of the Pension Plans’ fiduciary net position. The shift from a net pension asset to a net pension liability as well as the amortization of deferred outflows/inflows (pension adjustments) were the primary factors in the increase of governmental activities expenses by $16,189,771 from $19,781,194 in 2022 to $35,970,965 in the fiscal year ended June 30, 2023.
The current year accounting adjustment increased pension expenses by $6,229,152 while the prior year adjustment decreased expenses by $8,583,132. The accounting adjustment does not impact cash flow or contribution rates.
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Last fiscal year ending June 30, 2022, the City implemented GASB Statement No. 87, 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. As of June 30, 2023, the City reported lease receivable of $5,703,728 and deferred inflows of $5,467,388 for leases where the City is in a lessor capacity, and $145,973 of lease liability for equipment leases.
In the Required Supplementary Information – Budgetary Comparison Schedule: For the General Fund, the actual revenues available for appropriation were less than the final budget by $1,213,058 while actual expenditures were $2,088,923 less than the final budget. Actual other financing sources, net, were $64,676 more than the final budget, resulting in a positive $940,541 net change in budgetary variance and an actual increase in fund balance of $2,317,341. In the 2022/2023 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 $1,916,700. 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 2022/2023, committed fund balance represent 8.21% 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. -7-
These two statements report the City’s net position and changes in it. The reader can think of the City’s net position - the difference between assets, deferred outflows of resources, deferred inflows of resources and liabilities - as one way to measure the City’s financial health. Over time, increases or decreases in the City’s net position is one indicator of whether its financial health is improving or deteriorating.
However, to assess the overall health of the City the reader will need to consider other non-financial factors, such as changes in the City’s property tax base and the condition of the City’s roads and other infrastructure.
The statement of net position and the statement of activities present information about the following:
Governmental activities - All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety and public works. General revenues, including property taxes, motor vehicle in lieu, sales taxes, and franchise fees, finance 42% 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. -8-
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 29-32.
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 changes in Fiduciary 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, 2023 and 2022.
2023 2022 2023 2022 2023 2022
$ 74,819,374 74,719,687 $ 16,482,502 $ 13,889,206 $ 91,202,189 $ 88,708,580 $ 54,668,183 66,660,265 43,035,350 41,027,321 109,695,615 95,695,504 141,379,952 129,487,557 59,517,852 54,916,527 200,897,804 184,404,084 Deferred Outflow of Resources
Pension & OPEB 6,668,852 5,591,642 2,513,212 3,382,539 9,182,064 8,974,181 922,545 7,729,072 25,937,278 23,619,363 33,666,350 24,541,908 3,607,586 3,247,153 2,409,230 1,184,466 5,656,383 4,792,052 10,976,225 4,530,131 28,346,508 24,803,829 39,322,733 29,333,960 Deferred Inflow of Resources
Pension, OPEB & Leases 5,679,750 5,684,408 1,979,153 1,705,075 7,658,903 7,389,483 Net Invested in Capital Assets 54,585,683 66,560,428 38,657,337 36,429,645 105,217,765 91,015,328 Restricted 43,785,591 43,645,029 691,514 685,433 44,477,105 44,330,462 Unrestricted 21,046,810 26,633,948 (7,643,448) (5,324,916) 13,403,362 21,309,032 $ 124,864,660 131,392,829 $ 31,705,403 $ 31,790,162 $ 163,098,232 $ 156,654,822 $ Total Assets
Long-term liabilities
Other liabilities
Total Liabilities
Net Position (Deficit):
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 $6,443,410 or 4.11% from $156,654,822 in 2022 to $163,098,232 in 2023. The City implemented GASB statement 96 effective July 1, 2022. GASB 96 requires the recognition of liability and rights-to-use assets associated with Subscription-Based Information Technology arrangements (SBITA). Additional information on both of these statements can be found on Note 1 of the financial statements.
For governmental activities, the increase of $6,528,169 in net position is the result of an increase in total assets of $11,892,395, offset by an increase in total liabilities of $6,446,094, contributing to a gain in net position of $5,446,301. That positive impact on net position was further improved by a decrease in leaserelated, pension and OPEB deferred inflows of $4,658, and an increase in pension & OPEB deferred outflows of $1,077,210, for a net positive effect of $1,081,868. For the business-type activities, the reduction in total net position of 0.27% or $(84,759) is attributable to an increase in total assets offset by an increase in total liabilities for a positive change of $1,058,646, offset with a decrease in pension & OPEB deferred outflows of $869,327 and an increase in lease-related, pension & OPEB deferred inflows of $274,078. 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 $6,528,169 for governmental activities and a negative $84,759 for business-type activities, with a combined total increase in net position of $6,443,410 for the fiscal year ending June 30, 2023.
2023 2022 2023 2022 2023 2022
$ 10,724,088 9,462,788 $ 13,256,508 $ 13,142,936 $ 22,719,296 $ 23,867,024 $ 3,913,570 3,973,992 - - 3,973,992 3,913,570
2,213,685 12,481,660 2,774,835 - 15,256,495 2,213,685
13,640,075 12,055,279 - - 12,055,279 13,640,075
2,745,301 2,943,157 - - 2,943,157 2,745,301
204,757 1,463,744 278,367 (64,894) 1,742,111 139,863
26,036 78,144 590,993 517,022 669,137 543,058
42,458,764 33,467,512 16,900,703 13,595,064 59,359,467 47,062,576 2,068,926 3,310,972 - - 3,310,972 2,068,926
10,634,051 20,947,648 - - 20,947,648 10,634,051
2,264,274 3,841,626 - - 3,841,626 2,264,274
4,811,300 7,867,724 - - 7,867,724 4,811,300
2,643 2,995 - - 2,995 2,643
- - 177,556 271,277 177,556 271,277
- - 9,683,633 4,974,785 9,683,633 4,974,785
- - 5,986,152 3,894,446 5,986,152 3,894,446
- - 1,097,751 834,694 1,097,751 834,694
35,970,965 19,781,194 16,945,092 9,975,202 52,916,057 29,756,396 Changes in Net Position before
6,487,799 13,686,318 (44,389) 3,619,862 6,443,410 17,306,180 Transfers 40,370 167,951 (40,370) (167,951) - -
13,854,269 6,528,169 (84,759) 3,451,911 6,443,410 17,306,180 Net Position at Beginning of Year 111,010,391 124,864,660 31,790,162 28,338,251 156,654,822 139,348,642 Net Position at End of Year $ 131,392,829 124,864,660 $ 31,705,403 $ 31,790,162 $ 163,098,232 $ 156,654,822 $ Operating grants and contributions
Motor Vehicle in-lieu, unrestricted
Investment Revenue
Water acquisition
Business-Type Activities:
Sewer
Expenses:
Governmental Activities:
General government
Public safety
Change in Net Position
Transfers
Water
Public works
LL Connected Communities
Total Expenses
Taxes
Total Revenues
Capital grants and contributions
General Revenues:
Interest on long-term debt
Other
Community development
Table 2
Program Revenues:
Charges for services
Governmental Activities Business-Type Activities
City of Loma Linda's Changes in Net Position
Total
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Total revenues for governmental activities shows an increase of $8,991,252 from 2022 to 2023. This increase was comprised of a net increase in governmental activity program revenue of $9,067,097 and a decrease in the governmental activity general revenue of $75,845. The increase in governmental activity program revenue includes 1) a decrease in charges for services of $1,261,300, 2) increase in operating grants and contributions of $60,422, and 3) an increase in capital grants and contributions of $10,267,975. The decrease in charges for services was due to the combination of increases in refuse fees and fire service fees offset by a decrease in developer impact fees. The increase in capital grants and contributions was primarily due to donated infrastructure in the Citrus Trails area from developers.
The operating grants and contributions include the receipt of the final grant allocation 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. The City has used the funds to offset expenditures related to public safety.
The decrease in governmental activity general revenue is due to increases in: Motor Vehicle in Lieu/Intergovernmental of $197,856, investment revenue of $1,258,987, and other general revenues of $52,108; offset by a decrease in taxes of $1,584,796. The decrease in governmental activity general taxes was attributed to the increases in: 1) property tax of $196,233, 2) transient occupancy tax of $22,259, 3) franchise tax of $188,868, 4) business license tax of $52,916, and 5) other taxes of $278; offset by a decrease in sales tax of $2,045,350. The decrease in sales tax is due to the higher collections in the prior year including a misallocation to the City that was reduced from this year’s collections, as well as one of the top sales tax producer closing their operations in the City as of December 2022. The increase in investment revenue is due to the combination of a higher average yield on investment, higher average investment balance in the current fiscal year, and lower negative fair market value adjustment.
Total revenue for business-type activities has an increase of $3,305,639 from fiscal year 2022. This increase was due to an increase in business type activity program revenue of $2,888,407 and an increase in business-type activity general revenue of $417,232. The increase in business type activity program revenues were primarily due to donated infrastructure from developers. The increase in business-type activity general revenues was due to a higher investment revenue as a result of a higher average yield on investment and higher average deposit balance in the City’s investment in the Local Agency Investment Fund (LAIF).
The governmental activity program expenses had a net increase of $16,189,771 compared to the prior year. As discussed earlier, this increase in governmental activity program expenses was mostly related to accounting adjustments from the Governmental Accounting Standards Board (GASB) Statement No. 68 pension. The current year accounting adjustments increased pension expenses by $6,229,152 with impact to functional categories as follows: $3,876,593 increase in public safety expense, $875,371 increase in general government expense, $656,528 increase in community development expense and $820,660 increase in public works expense. The prior year adjustment decreased pension expenses by $8,583,132; $5,419,395 in public safety expense, $1,177,205 in general government expense, $882,903 in community development expense and $1,103,629 in public works expense. The business type activities experienced an increase in expenses of $6,969,890 which was primarily due to the pension expense accounting adjustments as well as previously discussed. The current year adjustment increased pension expense by $2,628,258 while the prior year adjustment decreased expenses by $3,234,501.
In comparison to fiscal year 2022, the overall change in net position from operations for governmental activities was an increase of $6,528,169 and business-type activities decreased by $84,759 resulting in an overall City net position increase of $6,443,410.
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. -12-
2023 2022 Change 2023 2022 Change
Functions:
General government 3,310,972 $ 2,068,926 $ 1,242,046 $ 495,419 $ (855,396) $ 1,350,815 $ Public safety 20,947,648 10,634,051 10,313,597 13,650,716 3,077,823 10,572,893 Community development 3,841,626 2,264,274 1,577,352 (2,463,760) 802,235 (3,265,995) Public works 7,867,724 4,811,300 3,056,424 (1,632,845) (97,454) (1,535,391) Interest on long-term debt 2,995 2,643 352 2,995 2,643 352 Total Governmental Activities $ 35,970,965 19,781,194 $ 16,189,771 $ 10,052,525 $ 2,929,851 $ 7,122,674 $ 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 2023, total costs increased by $16,189,771 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 $60,679,861, a net increase of $2,225,197 in fund balance; included in this amount are increases in fund balance for General Fund of $2,317,341, an increase in the Housing Authority of $108,288, an increase in the Special Projects Construction Fund of $1,083,346, an increase in the Regional Traffic Development Impact Fund of $340,303, a decrease in the Park Fund of $522,347, and a decrease in the Non Major Governmental Funds of $1,101,734.
The General Fund had a net increase in fund balance of $2,317,341, resulting from net expenses exceeding revenues by $1,377,135, netted with total other financing sources of $3,694,476 (of which $2,928,307 was from the ARPA funds). During the fiscal year, tax revenues decreased by $1,675,221 primarily due to the decrease in sales tax revenue net of abatements by $2,062,689 offset by increases in: property tax revenue by $174,753, franchise fees by $188,867 and transient occupancy tax net of abatements by $22,260. The decrease in sales tax revenue is due to the prior year increased collections as well as misallocated revenue to the City that was recovered from the state and remitted to the correct jurisdiction. In addition, during the current year one of the top sales tax producers closed their operations in the City as of December 2022 which contributed to the decrease in sales tax revenues. Use of money and property increased by $519,050 due to higher interest earnings by $363,523 and lower negative fair market value adjustment of the City’s investments by $110,373. Intergovernmental revenue increased by $241,854 mainly due to increase in VLF revenue of $197,856 due to increase in property values within the City. General Fund expenditures increased by $1,028,218 compared to prior year. This increase is coming from the increase in current expenditures in the amount of $497,073 and increase in capital expenditures by $525,521. The increase in current expenditures is due to increases in: Public Safety for the Sheriff service contract and general services contractual agreements in the amount of $655,628, salaries and benefits for cost-of-living adjustments in the amount of $460,177, increase in repairs and maintenance of capital facilities and equipment in the amount of $196,614, offset by decrease in pension expenditure in the amount of $1,000,000 as the City made additional contribution towards the PERS unfunded liabilities in 2022.
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Increase in the Regional Traffic Development Impact Fund was attributed to investment earnings and Development Impact fees while there were no expenditures as there were no active projects for this fund during the current year. The increase in the Special Projects Construction Fund is due to less capital expenditures in the current year while revenues from investments was slightly higher from prior year.
The decrease in the Park Fund is due to lower Development Impact fees collected during the fiscal year while capital expenditures remain the same amount as the prior year. The decrease in Non-Major Funds is due to current year capital expenditures for the Traffic Impact Capital, Capital Project SA Bond Proceeds, and General Facilities funds exceeded current year revenues from interest earnings and developer fees.
In total, the Proprietary Funds reported a decrease in net position of $84,759, 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 $383,446. This was due to operating expenses exceeding operating revenue by $2,345,649 offset by net non-operating revenues in the amount of $97,982 and transfers and capital contributions of $2,631,113. Operating expenses exceeded operating revenue due to 1) lower water sales resulting from less water demand compared to prior year, 2) increase in cost of sales and services due to increases in repairs and maintenance and utility costs, and 3) the recognition of pension accounting adjustment in the amount of $1,823,689 which increased operating expenses while the prior year pension adjustment decreased expenses by $2,240,911. Interest revenue, lease income, capital contributions and transfers in contributed to the favorable change in the net position of the Water Fund. The transfers in for capital contributions totaling $805,699 in the Water Enterprise fund has a corresponding negative impact to the net position of $620,447 for the Water Acquisition fund. The Water Enterprise fund received donated infrastructure from developers in the amount of $1,844,315. The Sewer Fund ended the year with a positive change in net position of $922,710, current operating expenses of $5,985,069 exceeded $5,929,335 in revenues. Similar to the explanation for Water Enterprise, the Sewer fund recognized pension expense in the amount of $697,293 (while the prior year pension adjustment decreased expenses by $849,324) and asset donations from developers. 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 $770,468 (of which $107,276 relates to the pension accounting adjustment) 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 nonoperational expenses (interest on loans) continue to exceed revenues adding to the negative net position.
General Fund Budgetary Highlights
The actual net expenditures of the General Fund at year-end were $1,377,135 more than the actual revenues. However, there was a positive budget-to-actual variance of $2,088,923 in appropriations due to certain capital expenditures such as vehicle and equipment purchases were not received before the end of the fiscal year contributing to $714,583 of the total positive variance. The remainder budget-to-actual positive variance of $1,374,340 is due to the conservative spending city-wide with saving in personnel cost, professional services, repairs and maintenance, and materials. Actual revenues were $1,213,058 less than anticipated compared to the final budget due mainly to miscellaneous revenues from capital project-related overhead credits coming in less than budgeted due to the delay in the start of majority of Water fund capital projects. Revenues that came in higher than budgeted include charges for services, use of money and property, and licenses and permits, but were offset by shortfalls in taxes, intergovernmental revenue, and fines and forfeitures. 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 $2,284,668. While the expenditure appropriations budget was increased in total by $2,759,768, the major increases was for overtime for fire services provided while on Strike Team. -14-
Although the final adopted budget projected a $1,376,800 positive change in fund balance, favorable results in expenditures of $2,088,923 as discussed above offset by unfavorable results in revenues of $1,213,058; and favorable results in other financing uses of $64,676, resulted in the combined favorable results of $940,541, as the actual positive net change in fund balance was $2,317,341 for the fiscal year ending June 30, 2023.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
2023 2022 2023 2022 2023 2022
Asset Type:
Land 15,414,103 $ 14,651,396 $ 1,387,764 $ 1,387,764 $ 16,801,867 $ 16,039,160 $ Construction in progress 1,246,766 3,095,955 1,060,281 208,735 2,307,047 3,304,690 Structures, machinery & equipment 15,920,695 11,081,867 6,011,895 6,435,896 21,932,590 17,517,763 Infrastructure 33,784,76 25,759,15 8 34,479,33 2 32,929,500 2 68,264,100 58,688,65 2 Intangible assets 293,93 79,81 3 96,07 3 65,426 8 390,011 145,23 9 Total $ 54,668,183 66,660,265 $ 43,035,350 $ 41,027,321 $ 109,695,615 $ 95,695,504 $ 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 2023, the City had $109,695,615 invested in a broad range of capital assets, a total increase of $14,000,111 (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 2023 was 14.63% (a 21.93% increase in governmental activities and 4.89% increase in business-type activities). For fiscal year 2023, net increases are the result of new additions in greater amounts than deletions and disposals. The major capital assets added for governmental activities and business-type activities are highlighted in explanation of Table 5.
2023 2022 2023 2022 2023 2022
Asset Type:
Land 762,707 $ - $ - $ - $ $ 762,707 $ -
Construction in progress (1,849,189) 2,198,295 851,546 147,982 (997,643) 2,346,277 Structures, machinery and equipment 5,925,491 1,369,090 131,262 31,551 6,056,753 1,400,641 Infrastructure 8,969,098 567,446 2,774,835 1,597,320 11,743,933 2,164,766 Intangible assets 261,94 96,78 4 50,99 9 77,15 3 312,937 9 173,948 Total Additions 14,070,051 4,231,620 3,808,636 1,854,012 17,878,687 6,085,632 Less: Decreases, depreciation and amortization (2,077,969) (2,443,444) (1,800,607) (1,924,613) (3,878,576) (4,368,057) Capital Asset Increase/(Decrease) $ 11,992,082 1,788,176 $ 2,008,029 $ (70,601) $ 14,000,111 $ 1,717,575 $ GovernmentalActivities Total
Table 5
Schedule of Changes in Capital Assets/Infrastructure
Business-Type Activities
City of Loma Linda
-15-
As shown in Table 5, above, capital assets current year activity increased $11,992,082 (net of depreciation and amortization) for governmental activities and increased $2,008,029 (net of depreciation and amortization) for business-type activities for a total increase of $14,000,111. The City recorded capital contributions from external sources. Developer contributed capital assets (park and park improvements, streets, traffic signals and lights in the Citrus Trails area) with estimated acquisition value of $10,802,297 to governmental activities. Developers also contributed infrastructure assets of a combined $2,774,835 to business-type activities. In the governmental activities remaining increase in capital assets can be attributed to the completion of California street widening and improvement, construction of a walking track at Hulda Crooks Park, vehicle purchases, installation of various art sculptures throughout the City and various improvements. The increase in business-type activities is primarily attributed to donated infrastructure from the Citrus Trails development. Additional information regarding capital assets activities can be found in Notes 1I and 5 of the financial statements.
Long-Term Debt
In June 2012, GASB (Governmental Accounting Standards Board) issued Statement No. 68, requiring public employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement to record the net pension liability, pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their 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.
Governmental Activities - The City governmental funds have $7,729,072 in outstanding long-term debt as of June 30, 2023; with the majority related to the net pension liability. Tables 6 below and Notes 6, 8, and 9 to the financial statements offer a more detailed view of governmental long-term debt. 2023 2022 2023 2022 2023 2022
1978 Water Bonds (General Obligation) - $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 2016 Water Revenue Refunding Bonds 4,245,000 4,480,000 4,245,000 4,480,000 Compensated absences 818,591 706,726 286,295 278,414 1,104,886 985,140 Lease payable 80,393 82,500 65,580 67,447 145,973 149,947 Subscription-based IT arrangement payable 19,444 20,043 39,487 OPEB liability 133,319 199,214 162,993 109,079 362,207 242,398 Net Pension liability 6,611,430 - 1,913,901 - 8,525,331 - Add: Unamortized bond premium - - 37,390 40,229 37,390 40,229 Total 7,729,072 $ 922,545 $ 6,741,202 $ 4,985,169 $ 14,470,274 $ 5,907,714 $ Governmental Activities Business-Type Activities Total
Table 6
Long-Term Liabilities at Year End
City of Loma Linda
Business-type Activities - The enterprise funds have $6,741,202 in outstanding long-term debt as of June 30, 2023. The water enterprise fund has bonded debt of $4,255,000 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, net pension liability and OPEB liability total $1,913,901 and $162,993, respectively. Additional detailed information for businesstype long-term debt is shown in Note 6 to the financial statements. -16-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
As of March 2022, the Federal reserve has increased the federal reserve rate to 5.25% by increasing it ten times in increments of 25 to 75 basis points (0.25% to 0.75%) each time in order to tame inflation.
Despite this effort, inflation continues to be high, however, interest rates have also increased causing steady household spending and combined with low unemployment rates, has kept the economy from going into the recession that had been previously projected. Per HDL Company’s Sales Tax Update, during the past year, California experienced an anomaly of wet weather that delayed construction projects and hindered building-construction returns and higher interest rates may have potentially limited commercial development activity slowing public infrastructure projects and limiting homeowners ability to access equity for renovations. California’s local one cent sales and use tax receipts for the second quarter of the 2023 calendar year was 2.8% lower than the same quarter one year ago. A contributing factor to current recovery relates to the Logistics Industry as people and firms have relied heavily on online shopping during the pandemic and this shopping pattern has continued to a certain degree postpandemic. While online sales rose over the year, pool collections dropped as a result of sales generated from large warehouse fulfillment centers being allocated to local agencies.
According to the June 2023 Employment Report released by the Inland Empire Economist Partnership, although in June of 2022 unemployment rates dropped to a comparable pre-pandemic level of 4.0%; one year later the rate has increased to 5% declining employment by 28,000 and shrinking labor force by 10,000. The real estate market has started to cool down due to the rapid rise of housing prices and rising mortgage interest rates over the last couple of years. Median home prices in the inland empire peaked in May of 2022 at $575,000 but dropped to $535,000 in February of 2023. The median home price in Loma Linda was $$575,000 as of June 2023. This amount was 3.93% more than the $553,250 median home price in June 2022.
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 2022, the City saw the completion of its third major hotel and has issued a building permit to a fourth hotel in 2023. There are other housing and commercial development projects at various stages of development/construction currently under way. Despite the economic challenges, the City, for fiscal year 2022/2023, 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 (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. On the same table, a decline in sales tax is noted and as it was previously explained, a misallocation to the City and the loss of a major sales tax producer contributed to this decline. 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.
-17-
On June 27, 2023, the City Council adopted the City of Loma Linda Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2023 and ending June 30, 2024. The General Fund operating budget totals $25,355,500 and is funded by operating revenue of $24,434,100 transfers in and other financing sources of $921,400, leaving an addition to fund balance of $146,400. The fund balance in the General Fund is expected to increase to $18,240,909 with $14,990,909 in unassigned and $3,250,000 designated (committed or assigned) as budgetary reserves. The total City operating budget amounts to $52,333,700, with total estimated resources available for budget purposes of $50,730,400, for fiscal year 2023/2024. The approved CIP budget for fiscal year 2023/2024 totals $8,341,500 with a fiveyear CIP investment plan estimated at $33,031,500.
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, 2023
The accompanying notes are an integral part of these financial statements. -18-
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 44,680,531 $ 10,967,965 $ 55,648,496 $ Receivables:
Accounts 750,420 1,703,388 2,453,808
Taxes 1,279,850 - 1,279,850
Interest 368,027 94,407 462,434
Lease 4,317,719 1,386,009 5,703,728
Contracts and loans 17,831,453 - 17,831,453
Internal balances (1,354) 1,354 -
Due from other governments 740,217 171,246 911,463
Inventories 24,688 226,804 251,492
Prepaid items 17,923 10,009 27,932
Loan receivable from the Successor Agency 2,174,518 1,229,806 3,404,324 Land held for resale 2,535,695 - 2,535,695
Restricted assets:
Cash and investments with fiscal agents - 691,514 691,514 Capital assets:
Non-depreciable 16,660,869 2,448,045 19,108,914
Depreciable, net 49,999,396 40,587,305 90,586,701
Total capital assets 66,660,265 43,035,350 109,695,615
Total assets 59,517,852 141,379,952 200,897,804
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 6,604,026 2,460,174 9,064,200
OPEB related items 64,826 53,038 117,864
Total deferred outflows of resources 2,513,212 6,668,852 9,182,064
LIABILITIES
Accounts payable 1,571,402 1,897,327 3,468,729
Interest payable - 66,040 66,040
Accrued liabilities 311,425 84,005 395,430
Due to other governments 1,875 - 1,875
Due to other Agency 395,332 - 395,332
Deposits payable 476,711 361,858 838,569
Unearned revenue 490,408 - 490,408
Long-term liabilities - due within one year 353,746 366,424 720,170 Long-term liabilities - due in more than one year:
Advances from the Loma Linda Successor Agency 19,196,076 - 19,196,076 Due in more than one year 564,682 4,297,884 4,862,566
Net pension liability 6,611,430 1,913,901 8,525,331
Net OPEB liability 199,214 162,993 362,207
Total liabilities 28,346,508 10,976,225 39,322,733
DEFERRED INFLOWS OF RESOURCES
Pension related items 1,471,090 548,022 2,019,112
OPEB related items 94,822 77,581 172,403
Lease 4,113,838 1,353,550 5,467,388
Total deferred inflows of resources 1,979,153 5,679,750 7,658,903
NET POSITION
Net investment in capital assets 66,560,428 38,657,337 105,217,765 Restricted for:
Public works projects 23,238,701 - 23,238,701
Public safety 1,632,568 - 1,632,568
Community development 17,997,513 - 17,997,513
General government 863,741 - 863,741
Debt service 53,068 691,514 744,582
Unrestricted (deficit) 21,046,810 (7,643,448) 13,403,362 Total Net Position $ 31,705,403 131,392,829 $ 163,098,232 $ Primary Government
CITY OF LOMA LINDA
Statement of Activities
For the year ended June 30, 2023
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 3,310,972 $ 2,815,553 $ - $ - $ 2,815,553 $ Public safety 20,947,648 4,124,985 3,157,957 13,990 7,296,932 Community development 3,841,626 519,865 133,988 5,651,533 6,305,386 Public works 7,867,724 2,002,385 682,047 6,816,137 9,500,569 Interest on long-term debt 2,995 - - - -
Total governmental activities 35,970,965 9,462,788 3,973,992 12,481,660 25,918,440 Business-type activities:
Water acquisition 177,556 273,729 - - 273,729
Water enterprise 9,683,633 6,764,478 - 1,844,315 8,608,793 Sewer capital 5,986,152 5,895,903 - 930,520 6,826,423
Loma Linda Connected Communities 1,097,751 322,398 - - 322,398 Total business-type activities 16,945,092 13,256,508 - 2,774,835 16,031,343 Total primary government $ 22,719,296 52,916,057 $ 3,973,992 $ 15,256,495 $ 41,949,783 $ 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
Gain on sale of assets
Miscellaneous
Transfers in (out)
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Functions/Programs
Program Revenues
-20-
Governmental Business-type
Activities Activities Total
$ - (495,419) $ (495,419) $
- (13,650,716) (13,650,716)
- 2,463,760 2,463,760
- 1,632,845 1,632,845
- (2,995) (2,995)
- (10,052,525) (10,052,525)
96,173 - 96,173
(1,074,840) - (1,074,840)
840,271 - 840,271
(775,353) - (775,353)
(913,749) - (913,749)
(913,749) (10,052,525) (10,966,274)
- 3,586,971 3,586,971
- 5,905,806 5,905,806
- 1,535,743 1,535,743
- 631,126 631,126
- 381,713 381,713
- 13,920 13,920
- 2,943,157 2,943,157
278,367 1,463,744 1,742,111
2,500 9,450 11,950
588,493 68,694 657,187
(40,370) 40,370 -
828,990 16,580,694 17,409,684
(84,759) 6,528,169 6,443,410
31,790,162 124,864,660 156,654,822
$ 31,705,403 131,392,829 $ 163,098,232 $
Net (Expense) Revenue and Changes in Net Position
Primary Government
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-21-
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, 2023
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 19,039,974 $ 1,429,190 $ 11,753,864 $ Receivables:
Accounts 698,449 51,671 -
Taxes 1,113,869 - -
Interest 168,386 13,390 89,857
Contract and loans 9,659 17,801,620 -
Lease 4,317,719 - -
Due from other funds 265,660 - -
Due from other governments 331,722 - -
Inventories 24,688 - -
Prepaid items 17,781 39 -
Land held for resale - 2,535,695 -
Advances to other funds - - -
Loan receivable from Successor Agency - - -
Total assets $ 21,831,605 25,987,907 $ 11,843,721 $
Liabilities, Deferred Inflows of Resources, and
Fund Balances
Liabilities:
Accounts payable 1,267,103 $ 9,867 $ - $
Accrued liabilities 311,102 - -
Due to other funds 1,900 - -
Due to other governments 1,875 - -
Due to other Agency 395,332 - -
Deposits payable 451,583 25,128 -
Unearned revenue 39,837 - -
Advances from other funds - - -
Total liabilities 34,995 2,468,732 -
Deferred inflows of resources:
Leases 4,113,838 - -
Unavailable revenue 75,727 4,248,990 -
Total Deferred inflows of resources 4,189,565 4,248,990 - Fund balances (deficit):
Non spendable:
Inventories 24,688 - -
Prepaid items 17,781 - -
Restricted for:
Cultural and recreational - - -
State mandated - - -
Public safety - - -
Street improvements - - 11,843,721
Storm drains - - -
Municipal facilities - - -
Air quality management - - -
Debt service - - -
Low/mod housing programs - 17,547,620 -
Committed for:
Emergency contingency 2,000,000 - -
Assigned for:
Refuse services 276,796 - -
Fire equipment replacement 514,929 - -
Fire training 32,714 - -
Capital equipment replacement 1,250,000 - -
Unassigned 15,212,702 - -
Total fund balances (deficit) 17,547,620 19,329,610 11,843,721 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 21,831,605 25,987,907 $ 11,843,721 $ Special Revenue Funds
-23-
Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ 460,302 4,097,665 $ 7,899,536 $ 44,680,531 $
- - 300 750,420
- - 165,981 1,279,850
4,061 31,345 60,988 368,027
- - 20,174 17,831,453
- - - 4,317,719
- - - 265,660
- - 408,495 740,217
- - - 24,688
- - 103 17,923
- - - 2,535,695
- 2,804,500 - 2,804,500
- 2,174,518 - 2,174,518
$ 464,363 9,108,028 $ 8,555,577 $ 77,791,201 $
$ 99,187 700 $ 194,545 $ 1,571,402 $
- - 323 311,425
- - 265,114 267,014
- - - 1,875
- - - 395,332
- - - 476,711
- - 450,571 490,408
2,804,500 - - 2,804,500
2,903,687 700 910,553 6,318,667
- - - 4,113,838
- 2,174,517 179,601 6,678,835
2,174,517 - 179,601 10,792,673
- - - 24,688
- - - 17,781
- - 229,384 229,384
- - 36,690 36,690
- - 1,632,568 1,632,568
- 6,932,811 3,294,264 22,070,796
- - 1,167,905 1,167,905
- - 848,927 848,927
- - 14,814 14,814
- - 53,068 53,068
- - 220,509 17,768,129
- -
- - - 2,000,000
- - -
- - - 276,796
- - - 514,929
- - - 32,714
- - - 1,250,000
(2,439,324) - (32,706) 12,740,672
(2,439,324) 6,932,811 7,465,423 60,679,861
$ 464,363 9,108,028 $ 8,555,577 $ 77,791,201 $
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, 2023
The accompanying notes are an integral part of these financial statements. -24-
Fund Balances - Total Governmental Funds 60,679,861 $
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. 66,366,332 293,933
Long-term liabilities are not due and payable in the current period. Therefore, they are not reported in the governmental funds:
Compensated absences (818,591)
Net pension liability (6,611,430)
Net OPEB liability (199,214)
Lease liability (80,393)
Subscription liability (19,444)
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 6,668,852 Deferred inflows of resources - pension and OPEB related items (1,565,912) 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. 6,678,835 Net Position of Governmental Activities 131,392,829 $
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, 2023
The accompanying notes are an integral part of these financial statements. -25-
Housing Regional Traffic
General Authority Development Impact
REVENUES
Taxes 10,580,088 $ - $ - $
Licenses and permits 522,625 - -
Intergovernmental 3,033,854 - -
Charges for services 4,769,224 1,438 -
Use of money and property 836,059 159,882 230,875
Fines and forfeitures 3,240 - -
Miscellaneous 3,777,920 3,439 -
Developer fees - - 109,428
Total revenues 164,759 23,523,010 340,303
EXPENDITURES
Current:
General government 2,235,295 - -
Public safety 16,443,497 - -
Community development 1,909,157 55,795 -
Public works 3,349,278 - -
Capital outlay 935,988 570 -
Debt service:
Principal retirement 24,022 183 -
Interest and fiscal charges 2,908 24 -
Total expenditures 56,572 24,900,145 -
REVENUES OVER (UNDER) EXPENDITURES 108,187 (1,377,135) 340,303
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets 9,450 - -
Transfers in 3,763,365 - -
Transfers out (120,000) - -
Lease acquisition 17,793 - -
Subscription acquisition 23,868 101 -
Total other financing sources (uses) 101 3,694,476 -
Net change in fund balances 108,288 2,317,341 340,303
FUND BALANCE (DEFICIT)
Beginning of year 17,012,269 17,439,332 11,503,418
End of year $ 17,547,620 19,329,610 $ 11,843,721 $
Special Revenue Funds
-26-
Nonmajor Total
Special Projects Park Governmental Governmental
Construction Development Funds Funds
$ - - $ 1,476,650 $ 12,056,738 $
- - - 522,625
- - 5,934,858 8,968,712
- - 19,803 4,790,465
20,137 1,117,323 185,720 2,549,996
- - 59,337 62,577
- - 94 3,781,453
79,227 - 85,287 273,942
99,364 1,117,323 7,761,749 33,006,508
- - 315 2,235,610
- - 90,980 16,534,477
103,619 - 652,519 2,721,090
- 5,544 636,694 3,991,516
518,092 42,434 3,865,696 5,362,780
- - 486 24,691
- - 63 2,995
621,711 47,978 5,246,753 30,873,159
(522,347) 1,069,345 2,514,996 2,133,349
- - - 9,450
- 14,001 120,000 3,897,366
- - (3,736,996) (3,856,996)
- - - 17,793
- - 266 24,235
- 14,001 (3,616,730) 91,848
(522,347) 1,083,346 (1,101,734) 2,225,197
(1,916,977) 5,849,465 8,567,157 58,454,664
$ (2,439,324) 6,932,811 $ 7,465,423 $ 60,679,861 $
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, 2023
The accompanying notes are an integral part of these financial statements. -27-
Net change in Fund Balance - Total Governmental Funds 2,225,197 $ 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 14,154,458
Lease acquisitions (17,793)
Subscription acquisitions (24,235)
Amortization Expenses (47,824)
Depreciation expense (2,114,552) 11,950,054
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 (6,229,152)
OPEB related net adjustments 28,735
Lease payments 19,900
SBITA payments (6,175,726) 4,791
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. (111,865)
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. (1,359,491) Change in Net Position of Governmental Activities 6,528,169 $ -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, 2023
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 4,066,261 $ 3,324,762 $ 3,387,088 $ 189,854 $ 10,967,965 $ Receivables:
Accounts - 881,177 733,325 88,886 1,703,388
Interest 31,790 32,696 28,461 1,460 94,407
Lease - 1,386,009 - - 1,386,009
Inventories - 226,230 574 - 226,804
Due from other funds - 59,488 - - 59,488
Due from other governments - 134,818 36,428 - 171,246
Prepaid items - 8,931 1,078 - 10,009
Total current assets 4,098,051 6,054,111 4,186,954 280,200 14,619,316 Noncurrent assets:
Advances to other funds - 1,152,395 - - 1,152,395
Loan receivable from Successor Agency 1,229,806 - - - 1,229,806 Restricted assets:
Cash and investments with fiscal agents - 691,514 - - 691,514 Capital assets:
Non-depreciable - 2,437,945 10,100 - 2,448,045
Depreciable, net - 32,947,664 3,763,089 3,876,552 40,587,305 Total capital assets - 35,385,609 3,773,189 3,876,552 43,035,350 Total noncurrent assets 1,229,806 37,229,518 3,773,189 3,876,552 46,109,065 Total assets 43,283,629 5,327,857 7,960,143 4,156,752 60,728,381
DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 1,707,060 652,699 100,415 2,460,174 OPEB related items - 31,823 15,381 5,834 53,038
Total deferred outflows of resources - 1,738,883 668,080 106,249 2,513,212
LIABILITIES
Current liabilities:
Accounts payable 705,161 315,663 846,158 30,345 1,897,327 Interest payable - Bonds - 65,899 141 - 66,040
Accrued liabilities - 63,214 20,019 772 84,005
Deposits payable - 174,560 174,719 12,579 361,858
Due to other funds - 113 57,797 224 58,134
Long-term debt - due within one year - 333,093 31,285 2,046 366,424 Total current liabilities 705,161 952,542 1,130,119 45,966 2,833,788 Noncurrent liabilities:
Advances from other funds - - 1,152,395 - 1,152,395
Advances from Loma Linda Successor Agency - - - 19,196,076 19,196,076 Long-term debt - due in more than one year - 4,213,764 83,083 1,037 4,297,884 Net pension liability - 1,328,013 507,770 78,118 1,913,901 Net OPEB liability - 97,796 47,268 17,929 162,993
Total noncurrent liabilities - 5,639,573 1,790,516 19,293,160 26,723,249 Total liabilities 6,592,115 705,161 2,920,635 19,339,126 29,557,037
DEFERRED INFLOWS OF RESOURCES
Pension related items - 380,260 145,393 22,369 548,022
OPEB related items - 46,549 22,498 8,534 77,581
Lease - 1,353,550 - - 1,353,550
Total deferred inflows of resources - 1,780,359 167,891 30,903 1,979,153
NET POSITION (DEFICIT)
Net investment in capital assets - 31,041,089 3,739,696 3,876,552 38,657,337 Restricted for debt service - 691,514 - - 691,514
Unrestricted 4,622,696 4,917,435 1,800,001 (18,983,580) (7,643,448) Total net position (deficit) $ 36,650,038 4,622,696 $ 5,539,697 $ (15,107,028) $ 31,705,403 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
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 273,729 $ 6,764,478 $ 5,895,903 $ 322,398 $ 13,256,508 $ Miscellaneous - 443,366 33,432 634 477,432
Total operating revenues 7,207,844 273,729 5,929,335 323,032 13,733,940
OPERATING EXPENSES
Treatment - - 4,409,263 - 4,409,263
Cost of sales and services 177,556 4,007,335 - 268,363 4,453,254 Administration and general - 2,205,865 698,279 27,783 2,931,927 Pension adjustment - 1,823,689 697,293 107,276 2,628,258 Depreciation and amortization - 1,516,604 180,234 132,447 1,829,285 Total operating expenses 9,553,493 177,556 5,985,069 535,869 16,251,987 Operating change in net position (2,345,649) 96,173 (55,734) (212,837) (2,518,047)
NONOPERATING REVENUES (EXPENSES)
Gain on disposal of assets - 2,500 - - 2,500
Interest revenue 103,080 114,561 56,475 4,251 278,367
Interest expense - (130,140) (1,083) (561,882) (693,105) Lease income - 111,061 - - 111,061
Net nonoperating revenues (expenses) 97,982 103,080 55,392 (557,631) (301,177) Change in net position (deficit) before
transfers and capital contributions (2,247,667) 199,253 (342) (770,468) (2,819,224)
TRANSFERS AND CAPITAL CONTRIBUTIONS
Capital contributions - 1,844,315 930,520 - 2,774,835
Transfer in - 805,699 - - 805,699
Transfer out (819,700) (18,901) (7,468) - (846,069)
Total transfers and capital contributions 2,631,113 (819,700) 923,052 - 2,734,465 Change in net position (620,447) 383,446 922,710 (770,468) (84,759)
NET POSITION (DEFICIT)
Beginning of year 5,243,143 36,266,592 4,616,987 (14,336,560) 31,790,162 End of year 4,622,696 $ 36,650,038 $ 5,539,697 $ (15,107,028) $ 31,705,403 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
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 273,729 $ 7,167,687 $ 5,964,800 $ 277,371 $ 13,683,587 $ Cash payments to suppliers for goods and services 512,368 (3,766,831) (4,131,058) (253,840) (7,639,361) Cash payments to employees for services - (2,209,260) (695,749) (30,757) (2,935,766) Net cash provided (used) by
operating activities 1,191,596 786,097 1,137,993 (7,226) 3,108,460
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Proceeds (repayment) of due to/from other funds - 35,821 (169,870) (23) (134,072) Proceeds from (payments to) other governmental entities - (94,672) 421 - (94,251) Transfers in - 805,699 - - 805,699
Transfers out (819,700) (18,901) (7,468) - (846,069)
Net cash provided (used) by
noncapital financing activities 727,947 (819,700) (176,917) (23) (268,693)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of capital assets - (990,005) (27,247) (9,160) (1,026,412) Proceeds from sale of assets - 2,500 - - 2,500
Proceeds from loan receivable 544,265 - - - 544,265
Lease payments - (9,910) (5,536) - (15,446)
Subscription payments - (1,489) (957) - (2,446)
Lease receipts - 81,093 - - 81,093
Payments on long-term debt - (235,000) - - (235,000)
Interest paid on long-term debt - (137,289) (1,015) - (138,304) Net cash provided (used) by capital and related
financing activities (1,290,100) 544,265 (34,755) (9,160) (789,750)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 94,854 104,526 52,394 3,447 255,221
Change in fair market value of investments (16,995) (17,379) (20,119) (275) (54,768) Net cash provided by investing activities 87,147 77,859 32,275 3,172 200,453 Net increase (decrease) in cash and equivalents 716,590 588,521 958,596 (13,237) 2,250,470
CASH AND CASH EQUIVALENTS
Beginning of year 3,477,740 3,299,686 2,428,492 203,091 9,409,009 End of year $ 4,016,276 4,066,261 $ 3,387,088 $ 189,854 $ 11,659,479 $ Reconciliation to the Statement of Net Position:
Cash and cash equivalents 4,066,261 $ 3,324,762 $ 3,387,088 $ 189,854 $ 10,967,965 $ Cash and investments with fiscal agents - 691,514 - - 691,514 Total cash and investments $ 4,016,276 4,066,261 $ 3,387,088 $ 189,854 $ 11,659,479 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows, continued
Proprietary Funds
For the year ended June 30, 2023
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 96,173 $ (2,345,649) $ (55,734) $ (212,837) $ (2,518,047) $ Adjustments to reconcile operating change in net position to net cash provided (used) by operating activities:
Depreciation and amortization - 1,516,604 180,234 132,447 1,829,285 (Increase) decrease in accounts receivable - (40,157) 35,465 (45,661) (50,353) (Increase) decrease in inventories - 5,857 - - 5,857
(Increase) decrease in prepaid items - (100) 179 - 79
(Increase) decrease in deferred outflows of resources - pension and OPEB related - 606,496 229,773 33,058 869,327 (Increase) decrease in net pension asset - 536,055 204,962 31,533 772,550 Increase (decrease) in accounts payable 689,924 132,908 278,026 14,564 1,115,422 Increase (decrease) in accrued liabilities - 9,237 2,608 (60) 11,785 Increase (decrease) in deposits payable - 101,839 - (41) 101,798 Increase (decrease) in net OPEB liability - 32,349 15,635 5,930 53,914 Increase (decrease) in compensated absences - 1,470 6,739 (327) 7,882 Increase (decrease) in net pension liability - 1,328,013 507,770 78,118 1,913,901 Increase (decrease) in deferred inflows of resources -
pension and OPEB related - (693,326) (267,664) (43,950) (1,004,940) Total adjustments 3,537,245 689,924 1,193,727 205,611 5,626,507 Net cash provided (used) by operating activities $ 1,191,596 786,097 $ 1,137,993 $ (7,226) $ 3,108,460 $
NONCASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Lease acquisition - $ 7,843 $ 5,737 $ - $ 13,580 $
Subscription acquisition - 12,600 9,889 - 22,489
Capital Contributions - 1,844,315 930,520 - 2,774,835
Enterprise Funds
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-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, 2023
The accompanying notes are an integral part of these financial statements. -34-
Private Purpose
Custodial Funds Trust Fund
ASSETS
Cash and investments 131,228 $ 3,846,918 $
Receivables:
Interest - 17,379
Contract and loans - 79,862
Prepaid items - 119,803
Advances to the City of Loma Linda - 19,196,076
Restricted assets:
Cash and investments with fiscal agents - 29
Total assets 23,260,067 131,228
LIABILITIES
Accounts payable 124 685
Interest payable - 285,430
Due to other governments 131,104 184,581
Deposits payable - 28,686
2016 Tax Allocation Refunding Bonds - 20,619,273
Loan payable to the City of Loma Linda - 3,404,324
Total liabilities 24,522,979 131,228
DEFERRED INFLOWS OF RESOURCES
Gain on debt refunding - 16,950
NET POSITION (DEFICIT)
Net position (deficit) held in trust - (1,279,862)
Total net position (deficit) - $ (1,279,862) $
CITY OF LOMA LINDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -35-
Private Purpose
Custodial Funds Trust Fund
ADDITIONS
Property taxes - $ 4,896,524 $
Use of money and property - 583,590
Miscellaneous 2,750 -
Total additions 5,480,114 2,750
DEDUCTIONS
General and administrative - 204,322
Miscellaneous 29,739 -
Debt service:
Interest and fiscal charges - 787,243
Total deductions 991,565 29,739
Change in net position (deficit) 4,488,549 (26,989)
NET POSITION (DEFICIT)
Beginning of year 26,989 (5,768,411)
End of year - $ (1,279,862) $
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CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-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, 2023
-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, 2023
-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, 2023
-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, 2023
-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, 2023
-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, 2023
-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, 2023
-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, 2023
-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 or subscription-based information technology arrangements are recorded at the amount of the initial measurement of the liabilities plus any initial direct costs that are ancillary charges necessary to place the asset into service.
Intangible right to use assets are amortized using the straight-line method over the shorter of the 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, 2023
-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 liability, 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, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-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, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
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, 2023
-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, 2023
-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, 2023
-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. Subscriptions
The City participates in subscription-based Information Technology (IT) arrangements for the use of various software. The City recognizes a subscription liability and an intangible right to use assets in the financial statements.
At the commencement of the arrangement, the City initially measures the liability at the present value of payments expected to be paid during the arrangement term. Subsequently, the liability is reduced by the principal portion of payments made. Also refer to Note 1. I. Capital Assets.
V. Implementation of New GASB Pronouncement
GASB Statement No. 96 – As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The implementation of this standard establishes a single model for accounting for SBITAs. The standard requires recognition of certain right to use assets and liabilities for SBITAs. As a result of implementing this standard, the City recognized a subscription liability of $39,487 and right-to-use subscription asset of $51,204 as of July 1, 2022. As a result of these adjustments there was no effect on beginning net position. The additional disclosures required by this standard are included in Note 5 and Note 6.
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, 2023:
Governmental Business-Type Custodial Private Purpose
Activities Activities Funds Trust Fund Totals
Cash and investments 44,680,531 $ 10,967,965 $ 131,228 $ 3,846,918 $ 59,626,642 $ Restricted cash and investments - 691,514 - 29 691,543
Total cash and investments 44,680,531 $ 11,659,479 $ 131,228 $ 3,846,947 $ 60,318,185 $ Government-Wide Statements Fiduciary Funds Statements
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-50-
Note 2: CASH AND INVESTMENTS, Continued
The City’s cash and investments at June 30, 2023 in more detail were as follows:
Cash and cash equivalents
Petty cash 1,850 $
Demand deposits 1,357,588
Total cash and cash equivalents 1,359,438
Investments
Local Agency Investment Fund 58,267,204
Total cash and investments 59,626,642
Cash and Investments with Fiscal Agents 691,543
Total cash and investments 60,318,185 $
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, 2023, the City was a voluntary participant and had $58,267,204 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-51-
Note 2: CASH AND INVESTMENTS, Continued
B. Investments, Continued
The City’s investments with LAIF at June 30, 2023 included 2.78% of the pooled funds invested in structured notes and asset-backed securities. This is an increase of 0.90% from the prior year. These investments included the following:
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.
Asset-Backed Securities: generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute.
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the Code or the City’s investment policy.
D. Risk Disclosures
Interest Rate Risk – The City’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City has elected to invest all in LAIF which has a maturity of less than one year.
External Pool: Less than 1 Year
State of California - Local Agency
Investment Fund $ 58,267,204
Invested Maturities in Years
Credit Risk – As of June 30, 2023, 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-52-
Note 2: CASH AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
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, $691,543 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, 2023.
Concentration of Credit Risk – The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the Code. Although the City’s policy allows other forms of investments, per City Council direction, the City currently only invests in LAIF.
E. Fair Value Measurements
Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. For the fiscal year ended June 30, 2023, the City of Loma Linda did not maintain any investments subject to the fair value hierarchy.
Note 3: RECEIVABLES
A. Leases
Governmental Activities
The City entered into various leases as the lessor. The leases range from 66 to 500 months.
The lessees are required to make monthly payments ranging from $2,400 to $10,736. The leases have interest rates ranging from 1% to 4%. The combined value of lease receivable and deferred inflow of resources as of June 30, 2023 was $4,317,719 and $4,113,838, respectively.
In addition, the City recognized lease revenue of $270,442 during the fiscal year.
Business-type Activities
The City entered into various leases as the lessor. The leases range from 136 to 311 months.
The lessees are required to make monthly payments ranging from $1,980 to $6,829. The leases have interest rates at 4%. The combined value of lease receivable and deferred inflow of resources as of June 30, 2023, was $1,386,009 and $1,353,550, respectively. In addition, the City recognized lease revenue of $82,107 during the fiscal year.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-53-
Note 3: RECEIVABLES, Continued
B. Contracts and Notes Receivable
Contracts and loans receivable consisted of the following at June 30, 2023:
Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
Big Bear Valley Water Stock 1,075 $ - $ - $ 1,075 $
LL Chamber of Commerce Loan 8,584 - - 8,584
Deferred Housing Plan 7,014 - (6,550) 464
Developers Loans 13,891,666 345,529 - 14,237,195
First Time Homebuyers 3,708,710 8,373 (132,948) 3,584,135 Total 17,617,049 $ 353,902 $ (139,498) $ 17,831,453 $
Note 4: INTERFUND TRANSACTIONS
A. Fund Financial Statements
Due To/Due From Other Funds - At June 30, 2023, the City had the following due to/from other funds:
Due From Other Funds General Fund
Nonmajor
Governmental
Funds Sewer Capital
Loma Linda
Connected
Communities
Water
Enterprise Total
Governmental Funds:
General Fund - $ 265,114 $ 433 $ - $ 113 $ 265,660 $
Enterprise Funds:
Water Enterprise 1,900 - 57,364 224 - 59,488
Total 1,900 $ 265,114 $ 57,797 $ 224 $ 113 $ 325,148 $
Due to Other Funds
Governmental Funds Proprietary Funds
The due from in the General Fund is made up of $265,114 from the Non-major funds, $433 from the Sewer Capital, and $113 from Water Enterprise to cover grant related expenditures that have not yet been reimbursed by the granting agencies or were not disbursed to the General Fund prior to June 30. The due from the Water Enterprise fund is for end of year reclassification of accounts receivables.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-54-
Note 4: INTERFUND TRANSACTIONS, Continued
A. Fund Financial Statements, Continued
Advances To/From Other Funds - At June 30, 2023, 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, 2023, the City had the following transfers in and out:
Fund receiving transfers Fund making transfers Amount
General Fund Nonmajor Governmental Funds 3,736,996 $
Sewer Capital 7,468
Water Enterprise 18,901
Special Projects Construction Water Acquisition 14,001
Nonmajor Governmental Funds General Fund 120,000
Water Enterprise Water Acquisition 805,699
Total transfers 4,703,065 $
Certain nonmajor governmental funds made payments in the amount of $3,736,996 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 $805,699 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, 2023
-55-
Note 5: CAPITAL ASSETS
The following is a summary of capital assets for the governmental activities:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets, not being depreciated:
Land 14,651,396 $ 762,707 $ - $ 15,414,103 $
Construction in progress 3,095,955 2,242,685 (4,091,874) 1,246,766 Total capital assets, not being depreciated 17,747,351 3,005,392 (4,091,874) 16,660,869 Capital assets, being depreciated:
Structures and improvements 25,416,027 4,405,682 - 29,821,709 Machinery and equipment 9,621,381 1,604,216 (84,407) 11,141,190 Infrastructure 55,095,487 8,969,098 - 64,064,585
Total capital assets, being depreciated 90,132,895 14,978,996 (84,407) 105,027,484 Less accumulated depreciation/amortization for:
Structures and improvements (17,754,691) (650,540) - (18,405,231) Machinery and equipment (6,200,850) (520,530) 84,407 (6,636,973) Infrastructure (29,336,335) (943,482) - (30,279,817)
Total accumulated depreciation (53,291,876) (2,114,552) 84,407 (55,322,021) Total capital assets, being depreciated net 36,841,019 12,864,444 - 49,705,463 Intangible assets, being amortized:
Intangible assets (perpetual license software) - 216,822 - 216,822 Intangible right to use asset 96,789 17,793 - 114,582
Intangible right to use asset - SBITA - 27,329 - 27,329 Total Intangible Assets, being amortized 96,789 261,944 - 358,733 Less accumulated amortization for:
Intangible assets (perpetual license software) - (21,683) - (21,683) Intangible right to use asset (16,976) (21,254) - (38,230) Intangible right to use asset - SBITA - (4,887) - (4,887) Total accumulated depreciation (16,976) (47,824) - (64,800) Total Intangible assets, net 79,813 214,120 - 293,933
Governmental activities capital assets, net 54,668,183 $ 16,083,956 $ (4,091,874) $ 66,660,265 $ Depreciation and amortization expense was charged to functions of the primary government's governmental activities as follows:
Governmental activities: Depreciation Amortization Total General government 144,982 $ 30,548 $ 175,530 $
Public safety 429,510 5,618 435,128
Community development 449,447 5,153 454,600
Public works 1,090,613 6,505 1,097,118
Total 2,114,552 $ 47,824 $ 2,162,376 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-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 208,735 851,546 - 1,060,281
Total capital assets, not being depreciated 1,596,499 851,546 - 2,448,045 Capital assets, being depreciated:
Structures and improvements 26,968,959 - - 26,968,959
Machinery and equipment 6,613,497 159,940 (28,678) 6,744,759 Infrastructure 45,386,052 2,774,835 - 48,160,887
Total capital assets, being depreciated 78,968,508 2,934,775 (28,678) 81,874,605 Less accumulated depreciation for:
Structures and improvements (21,588,719) (403,373) - (21,992,092) Machinery and equipment (5,557,841) (180,568) 28,678 (5,709,731) Infrastructure (12,456,552) (1,225,003) - (13,681,555)
Total accumulated depreciation (39,603,112) (1,808,944) 28,678 (41,383,378) Total capital assets, being depreciated net 39,365,396 1,125,831 - 40,491,227 Intangible assets, being amortized:
Intangible assets (perpetual license software) - 13,718 - 13,718 Intangible right to use asset 77,159 13,580 - 90,739
Intangible right to use asset - SBITA - 23,695 - 23,695 Total Intangible Assets, being amortized 77,159 50,993 - 128,152 Less accumulated amortization for:
Intangible assets (perpetual license software) - (1,372) - (1,372) Intangible right to use asset (11,733) (16,637) - (28,370) Intangible right to use asset - SBITA - (2,332) - (2,332) Total accumulated depreciation (11,733) (20,341) - (32,074) Total Intangible assets, net 65,426 30,652 - 96,078
Business-type activities capital assets, net 41,027,321 $ 2,008,029 $ - $ 43,035,350 $ 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 1,504,615 $ 11,989 $ 1,516,604 $
Sewer Capital 171,882 8,352 180,234
Loma Linda Connected Communities 132,447 - 132,447
Total 1,808,944 $ 20,341 $ 1,829,285 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-57-
Note 6: LONG-TERM LIABILITIES
The following is a summary of long-term debt transactions for the fiscal year ended June 30, 2023:
Beginning Ending Due within
Governmental activities: Balance Additions Deletions Balance One Year Compensated absences 706,726 $ 837,788 $ (725,923) $ 818,591 $ 323,297 $ Lease liability 82,500 17,793 (19,900) 80,393 21,813
Subscription liability - 24,235 (4,791) 19,444 8,636
Total governmental activities $ 879,816 789,226 $ (750,614) $ 918,428 $ 353,746 $ 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 4,480,000 - (235,000) 4,245,000 245,000 Unamortized bond premium 40,229 - (2,839) 37,390 2,840
Compensated absences 278,414 273,550 (265,669) 286,295 85,153 Lease liability 67,447 13,580 (15,447) 65,580 17,256
Subscription liability 22,489 - (2,446) 20,043 6,175
Total business-type activities $ 309,619 4,876,090 $ (521,401) $ 4,664,308 $ 366,424 $ A. Governmental Activities Long-Term Liabilities
For the governmental activities, compensated absences, the OPEB liability and the net pension liability (if any) are generally liquidated primarily by the General Fund, with a small portion by the Street Lighting District and Land Maintenance District.
Compensated Absences
The City’s liability for vested and unpaid compensated absences in the governmental activities has been accrued and amounted to $818,591. 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 four 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 City is required to make annual payments ranging from $2,218 to $28,008 with discount rates ranging from 2.536% to 3.81%. As of June 30, 2023, the City recognized right to use asset of $76,352, net of amortization, and lease liability of $80,393. During the fiscal year, the City recorded $21,254 in amortization expense.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 6: LONG-TERM LIABILITIES, Continued
A. Governmental Activities Long-Term Liabilities, Continued Estimated future lease liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2024 21,813 $ 6,327 $ 28,140 $
2025 22,267 6,414 28,681
2026 23,037 6,641 29,678
2027 11,839 4,634 16,473
2028 1,437 569 2,006
Total 80,393 $ 24,585 $ 104,978 $
Governmental Lease Liability
Subscription liabilities
The City has entered into three subscription-based IT agreements for the use of software with subscription terms ranging from two to five years. The subscription liability has been recorded at the present value of payments expected to be paid during the contract term.
The City is required to make annual payments ranging from $1,970 to $8,222 with discount rates ranging from 2.50% to 3.35%. As of June 30, 2023, the City recognized right to use asset of $22,442, net of amortization, and subscription liability of $19,444. During the fiscal year, the City recorded $4,887 in amortization expense.
Estimated future subscription liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2024 8,636 $ 385 $ 9,021 $
2025 4,329 274 4,603
2026 4,518 164 4,682
2027 1,961 49 2,010
Total 19,444 $ 872 $ 20,316 $
Governmental Subscription liability
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 6: LONG-TERM LIABILITIES, Continued
B. Business-Type Activities Long-Term Liabilities
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, 2023 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.
All net revenues of the Water Enterprise fund have 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 6: LONG-TERM LIABILITIES, Continued
B. Business-Type Activities Long-Term Liabilities, Continued The annual requirements to amortize the 2016 Water Revenue Refunding Bonds outstanding at June 30, 2023 were as follows:
Year Ending
June 30, Principal Interest Total
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 280,000 92,725 372,725
2029-2033 1,535,000 343,038 1,878,038
2034-2038 1,400,000 106,500 1,506,500
Total 4,245,000 $ 1,011,226 $ 5,256,226 $
2016 Water Revenue Refunding Bonds
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 $286,295 at June 30, 2023. 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.
Lease Liabilities
The City has entered into four 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 City is required to make annual payments ranging from $2,218 to $28,008, with discount rates ranging from 2.536% to 3.81%. As of June 30, 2023, the City recognized right to use asset of $62,369, net of amortization, and lease liabilities of $65,580. During the fiscal year, the City recorded $16,637 of amortization expense.
Estimated future lease liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2024 17,256 $ 1,938 $ 19,194 $
2025 17,582 1,334 18,916
2026 18,201 712 18,913
2027 11,274 163 11,437
2028 1,267 10 1,277
Total 65,580 $ 4,157 $ 69,737 $
Business-Type Lease Liability
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 6: LONG-TERM LIABILITIES, Continued
B. Business-Type Activities Long-Term Liabilities, Continued Subscription liabilities
The City has entered into three subscription-based IT agreements for the use of software with subscription terms ranging from two to five years. The subscription liability has been recorded at the present value of payments expected to be paid during the contract term.
The City is required to make annual payments ranging from $1,970 to $8,222 with discount rates ranging from 2.50% to 2.54%. As of June 30, 2023, the City recognized right to use asset of $21,363, net of amortization, and subscription liability of $20,043. During the fiscal year, the City recorded $2,332 in amortization expense.
Estimated future subscription liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2024 6,175 $ 215 $ 6,390 $
2025 6,203 353 6,556
2026 6,521 196 6,717
2027 1,144 30 1,174
Total 20,043 $ 794 $ 20,837 $
Business-Type Subscription liability
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, 2023
Series 2008 A 9,000,000 $ 970,000 $
Multifamily Housing Revenue Bonds Original Outstanding at Loma Linda Commons Project Amount June 30, 2023
Series 2009 A 13,275,000 $ 6,107,565 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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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.
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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 8: EMPLOYEE RETIREMENT PLAN, Continued
A. General Information about the Pension Plan, Continued The Plan’s provisions and benefits in effect during the year ended June 30, 2023 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 1.426% to 2.418% 1.000% to 2.500% Required employer contribution rates 10.870% 7.470%
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 2.400% to 3.000% 2.000% to 2.700% Required employer contribution rates 21.840% 12.780%
Miscellaneous
Safety
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023, were $1,899,052. The actual employer payments of $3,090,643 made to CalPERS by the City during the measurement period ended June 30, 2022, differed from the City’s proportionate share of the employer’s contributions of $4,059,381 by ($968,738), which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-64-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
Actuarial Methods and Assumptions Used to Determine Total Pension Asset All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from 2000 to 2019, 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, 2021
Measurement Date June 30, 2022
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 6.90%
Inflation 2.30%
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 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 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, 2023
-65-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability, 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
Global Equity - cap weighted 30.0% 4.54%
Global Equity - non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed securities 5.0% 0.50%
Investment grade corporation 10.0% 1.56%
High yield 5.0% 2.27%
Emerging market debt 5.0% 2.48%
Private debt 5.0% 3.21%
Real assets 15.0% 3.21%
Leverage -5.0% -0.59%
100.0%
2 Figures are based on the 2021-22 Assets Liability Management Study. 1 An expected inflation of 2.3% used for this period.
Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-66-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability, Continued
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. 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 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.
This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended 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, 2023
-67-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.
Plan Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Plan Net Pension
Liability (Asset)
(c) = (a) - (b)
Balance at: 6/30/2021 (VD) 72,129,684 $ 74,583,854 $ (2,454,170) $ Balance at: 6/30/2022 (MD) 77,057,019 68,531,688 8,525,331 Net changes during 2021-22 4,927,335 $ (6,052,166) $ 10,979,501 $ Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.
The City’s proportionate share of the net pension liability for the total Plan as of June 30, 2021 and 2022 measurement dates was as follows:
Proportionate Share - June 30, 2021 (0.045378%)
Proportionate Share - June 30, 2022 0.073807%
Change - Increase (Decrease) 0.119185%
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentagepoint lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate + 1%
(7.90%)
$ 8,525,331 19,098,335 $ (144,418) $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-68-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability, 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, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (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, 2021), the City’s net pension asset was $(2,454,170). For the measurement period ending June 30, 2022 (the measurement date), the City recognized a pension expense of $10,756,466.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
-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, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions 866,020 $ - $
Differences Between Expected and
Actual Experience 269,619
Differences Between Projected and Actual
Investment Earnings
Differences between Employer's Contributions
and Proportionate Share of Contributions
Change in Employer's Proportion 4,261,343 386,265
Pension Contributions Made Subsequent
to the Measurement Date
$ 2,019,112 9,064,200 $
102,698
- 1,899,052
- 1,444,931
1,530,149 323,235
These amounts above are net of outflows and inflow recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $1,899,052 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Fiscal Year
Ended June 30:
Deferred
Outflows/(Inflows)
of Resources
2024 1,692,429 $
2025 1,597,995
2026 973,027
2027 882,585
2028 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2023, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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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 June 30, 2022), 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, 2022 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, 2023
-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
Global Equities 59% 7.55%
Fixed Income 25% 4.25%
Treasury Inflation-Protected Securities 5% 3.00%
Real Estate Investment Trusts 8% 7.25%
Commodities 3% 7.55%
Total 100%
1 An expected inflation of 2.3% used for this period.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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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, 2022
(Valuation Date June 30, 2021) 898,840 $ 656,442 $ 242,398 $ Changes recognized for the measurement period:
Service cost 30,067 - 30,067
Interest 60,740 - 60,740
Benefit payments (28,032) (28,032) -
Expected investment income - 45,350 (45,350)
Administrative expenses - (166) 166
Employer contributions to trust - 31,000 (31,000)
Employer contributions as benefits payments - 28,032 (28,032) Investment gains/(losses) - (133,218) 133,218
Net Changes (57,034) 62,775 119,809
Balance at June 30, 2023
(Measurement Date June 30, 2022) 961,615 $ 599,408 $ 362,207 $ 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, 2022:
Current
1% Decrease Discount Rate 1% Increase
5.75% 6.75% 7.75%
Net OPEB Liability 504,448 $ 362,207 $ 245,949 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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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, 2022:
Current
1% Decrease Healthcare Cost Trend Rates 1% Increase
Net OPEB Liability 220,771 $ 362,207 $ 540,693 $
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, 2023, the City recognized OPEB expense of $37,787. As of June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date 31,000 $ - $ Changes of assumptions 35,764 -
Differences between expected
and actual experience - 172,403
Net difference between projected and actual earnings on OPEB plan investments 51,100 -
Total 117,864 $ 172,403 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued Contributions subsequent to the measurement date of $31,000 reported with deferred outflows of resources will be recognized as a reduction of the net OPEB liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows:
Fiscal Year Ended
June 30:
Deferred
Outflows/(Inflows) of
Resources
2024 (7,009) $
2025 (8,002)
2026 (11,432)
2027 9,675
2028 (16,967)
Thereafter (51,804)
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 124 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, 2023
-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 2022-23, 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, 2023
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Note 10: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION, Continued
C. Purchased Insurance
Pollution Legal Liability Insurance
The City 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 claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City 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 $60,062,193. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Crime Insurance
The City 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 City owned 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 2022-23.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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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 created by and through State Legislation to serve as the owner, developer, and operator of the aeronautical portion of the former Norton Air Force Base, now known as the San Bernardino International Airport. The SBIAA oversees a U.S. Department of Transportation, Federal Aviation Administration (FAA) Part-139 Certified 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 (JPA) comprised of the County of San Bernardino and the cities of Colton, Loma Linda and 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.
Formed in 1990, the Inland Valley Development Agency (IVDA) is a special military base reuse Joint Powers Authority (JPA) created by and through specific State of California Legislation (AB 419) pursuant to Public Law 100-526 under BRAC-I (the “Deference Authorization Amendments and Based Closure and Realignment Act”). As of June 30, 2023, 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, 2023
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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 2023, the City of Loma Linda’s contribution totaled $324,498. 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, 2023, the following governmental funds had deficit fund balances:
Fund Type Deficit
Major funds:
Park Development Capital Projects (2,439,324) $
Nonmajor governmental funds:
Community Development Block Grant Special Revenue (81,330) Grant Fund Special Revenue (341)
Citizens Option for Public Safety Fund Special Revenue (7,994) Funds
Park Development – The Park Development has an accumulated deficit balance of $2,439,324 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 $81,330 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, 2023
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Note 13: DEFICIT FUND BALANCES, Continued
Grant Fund – The Grant fund has a deficit balance of $341 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 $7,994 which resulted from the negative fair value adjustment of the fund’s investments.
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, 2023 are as follows:
General Fund 592,204 $
Park Development 57,422
Water Acquisition 1,729,056
Water Enterprise 45,917
Non-major governmental funds 56,606
Significant Encumbrances as of June 30, 2023
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, 2023, 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, 2023
-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, 2023
-81-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt
The bonded debt of the Successor Agency as of June 30, 2023 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 $2,455,000. 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, 2023
-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, 2023 were as follows:
Year Ending
June 30, Principal Interest Total
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 380,000 72,500 452,500
2029-2032 1,260,000 96,500 1,356,500
Total 3,280,000 $ 620,400 $ 3,900,400 $
2016 Successor Agency - Series A
Year Ending
June 30, Principal Interest Total
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 2,295,000 275,363 2,570,363
2029-2032 6,720,000 335,476 7,055,476
Total 17,350,000 $ 2,340,698 $ 19,690,698 $
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, 2023
-83-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt, 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, 2023:
Beginning Ending Due within
TAX ALLOCATION BONDS Balance Additions Deletions Balance One Year 2016 Tax Allocation Refunding Bonds Series A 3,715,000 $ - $ (435,000) $ 3,280,000 $ 455,000 $ 2016 Tax Allocation Refunding Bonds Series B 19,240,000 - (1,890,000) 17,350,000 1,930,000 Unamortized bond premium 388,121 - (46,114) 342,007 46,113 Unamortized bond discount (400,294) - 47,560 (352,734) (47,560) Loan payable to the City of Loma Linda - direct borrowings 4,961,764 - (1,557,440) 3,404,324 1,639,148 Total 27,904,591 $ - $ (3,880,994) $ 24,023,597 $ 4,022,701 $ 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 19,236 $ - (2,286) $ 16,950 $ - $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2023
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Note 17: TAX ABATEMENTS
The City of Loma Linda (City) entered into an agreement with Loma Linda University Adventist Health Sciences Center dba Loma Linda University Health, hereinafter called “Medical Center”.
On June 21, 2016 the City approved Precise Plan of Design No. 15-128 for the construction of a new hospital building, with conditions of approval requiring that the Medical Center enter into a staffing support agreement to mitigate the additional needs for police and fire services created by the construction of the new hospital; and whereas, the Medical Center requires law enforcement and fire suppression services on an ongoing basis to encourage a safe environment for employees, patients and visitors. The City has the ability to provide such law enforcement services required by the Medical Center through the City’s contract with the San Bernardino County Sheriff’s Department and the City has the ability to provide such fire suppression services as required by the Medical Center through the City’s Fire Department.
This agreement is binding and in effect upon full execution and delivery by the City and Medical Center. The initial term of this agreement 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, 2023, the City has accrued a liability due to the Medical Center in the amount of $395,332, 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, 2023
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Note 18: NET POSITION
Net Investment in Capital Assets
Net position for governmental activities and business-type activities is classified as 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2023, was determined as follows:
Governmental
Activities
Capital assets, net of accumulated depreciation 66,660,265 $ Less: Lease liability (80,393)
Subscription liability (19,444)
Net investment in capital assets 66,560,428 $
Loma Linda Total
Water Sewer Connected Enterprise
Enterprise Capital Communities Funds
Capital assets, net of accumulated depreciation 35,385,609 $ 3,773,189 $ 3,876,552 $ 43,035,350 $ Less capital related debt balance:
Outstanding principal balance of 2016 Water Revenue Refunding Bond (4,245,000) - - (4,245,000) Outstnding principal balance of 1978 Water Bonds (General Obligation) (10,000) - - (10,000) Outstanding unamortized bond premium balance (37,390) - - (37,390) Lease liability (41,019) (24,561) - (65,580)
Subscription liability (11,111) (8,932) - (20,043)
Net investment in capital assets 31,041,089 $ 3,739,696 $ 3,876,552 $ 38,657,337 $ Business-type Activities
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2023
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1. BUDGET AND BUDGETARY ACCOUNTING
A. General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end, all operating budget appropriations lapse.
B. Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgets were legally adopted for all governmental funds with the exception of the Traffic Congestion Relief Grant Fund, 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 187,800 $ 194,957 $ (7,157) $ Community development - Planning - building and safety 243,700 277,446 (33,746) Public works - refuse 1,468,800 1,697,141 (228,341)
Debt Service - Principal 20,100 24,022 (3,922)
Nonmajor Funds:
CASp CERT & Training - 759 (759)
Landscape Maintenance District 700 717 (17)
Capital Projects Bond Proceeds 48,800 48,902 (102)
Loma Linda Financing Authority 300 315 (15)
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2023
-88-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
D. Budgetary Comparison Schedule
The following is the budgetary comparison schedule for the General Fund.
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 10,665,100 $ 10,910,000 $ 10,580,088 $ (329,912) $ Licenses and permits 283,000 412,300 522,625 110,325
Intergovernmental 2,763,300 3,066,868 3,033,854 (33,014) Charges for services 4,481,700 4,467,900 4,769,224 301,324 Use of money and property 409,600 684,100 836,059 151,959 Fines and forfeitures 5,000 5,800 3,240 (2,560)
Miscellaneous 3,843,700 5,189,100 3,777,920 (1,411,180) Total revenues 24,736,068 22,451,400 23,523,010 (1,213,058)
EXPENDITURES
Current:
General government
City council 122,200 187,800 194,957 (7,157)
City clerk 198,500 230,300 190,679 39,621
City manager 402,100 416,600 361,532 55,068
Finance 612,400 614,300 494,790 119,510
Information system 217,900 183,200 134,474 48,726
Senior Center 69,100 67,500 47,492 20,008
General government 760,800 887,200 811,371 75,829
Public safety
Parking control 246,300 241,400 216,216 25,184
Fire prevention 376,700 400,300 339,148 61,152
Fire and rescue services 7,578,500 8,886,373 8,600,733 285,640 Disaster preparedness 299,300 315,600 265,114 50,486
Police 6,762,300 6,800,000 6,790,625 9,375
Code enforcement 303,900 339,600 231,661 107,939
Community development
Planning 424,800 574,300 341,050 233,250
Planning - building and safety 121,800 243,700 277,446 (33,746) Parks 1,275,100 1,455,900 1,290,661 165,239
Public works
Traffic safety 216,400 275,700 187,125 88,575
Engineering 323,700 409,000 323,041 85,959
Street maintenance 891,400 758,100 645,176 112,924
Facilities maintenance 386,500 491,100 466,995 24,105
Refuse 1,278,200 1,468,800 1,697,141 (228,341)
Recycling 28,900 67,600 29,800 37,800
Capital outlay 1,332,500 1,651,095 935,988 715,107
Debt service:
Principal retirement - 20,100 24,022 (3,922)
Interest and fiscal charges - 3,500 2,908 592
Total expenditures 26,989,068 24,229,300 24,900,145 2,088,923 REVENUES OVER (UNDER) EXPENDITURES (2,253,000) (1,777,900) (1,377,135) 875,865
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - 10,000 9,450 (550)
Transfers in 3,814,600 3,739,800 3,763,365 23,565
Transfers out (120,000) (120,000) (120,000) -
Lease acquisition - - 17,793 17,793
Subscription acquisition - - 23,868 23,868
Total other financing sources (uses) 3,629,800 3,694,600 3,694,476 64,676 Net change in fund balance 1,376,800 1,916,700 2,317,341 940,541
FUND BALANCE (DEFICIT)
Beginning of year 17,012,269 17,012,269 17,012,269 -
End of year $ 18,389,069 18,928,969 $ 19,329,610 $ 940,541 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2023
-89-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
D. 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 154,600 149,500 159,882 10,382 Miscellaneous 1,300 1,800 3,439 1,639
Total revenues 152,700 157,300 164,759 12,059
EXPENDITURES
Current:
Community development 118,000 117,800 55,795 62,005
Capital outlay 50,600 50,700 570 50,130
Debt service:
Principal retirement - 200 183 17
Interest and fiscal charges - 100 24 76
Total expenditures 168,800 168,600 56,572 112,228
REVENUES OVER (UNDER) EXPENDITURES (16,100) (11,300) 108,187 124,287 Net change in fund balance (16,100) (11,300) 108,187 124,287
FUND BALANCE (DEFICIT)
Beginning of year 17,439,332 17,439,332 17,439,332 -
End of year 17,428,032 $ 17,423,232 $ 17,547,519 $ 124,287 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2023
-90-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
D. 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 25,000 $ 145,500 $ 230,875 $ 85,375 $ Developer fees 154,000 124,700 109,428 (15,272)
Total revenues 270,200 179,000 340,303 70,103
REVENUES OVER (UNDER) EXPENDITURES 270,200 179,000 340,303 70,103 Net change in fund balance 270,200 179,000 340,303 70,103
FUND BALANCE (DEFICIT)
Beginning of year 11,503,418 11,503,418 11,503,418 -
End of year 11,682,418 $ 11,773,618 $ 11,843,721 $ 70,103 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information For the year ended June 30, 2023 -91-
2. SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS – LAST TEN YEARS* Measurement Period 2017 2018 2019 2020 2021 2022
Total OPEB LiabilityService Cost $ 19,486 18,964 $ 20,022 $ 23,526 $ 24,173 $ 30,067 $ Interest on the Total OPEB Liability 56,269 59,253 62,267 58,442 61,981 60,740 Changes in assumptions - - (23,320) - 44,181 -
Experience gains/(losses) - - (104,915) (30,790) (88,498) - Benefit payments (35,165) (31,110) (13,410) - (32,698) (28,032) Net change in Total OPEB Liability 43,574 44,123 (59,356) 51,178 9,139 62,775 Total OPEB Liability - beginning 854,305 810,182 897,879 838,523 889,701 898,840 Total OPEB Liability - ending (a) 897,879 854,305 838,523 889,701 898,840 961,615 Plan Fiduciary Net PositionEmployer contributions as benefits payments 120,160 35,165 23,320 - - 28,032 Investment income 29,955 24,458 28,324 16,215 141,595 45,350 Investment gains/losses - 4,140 (4,955) - - (133,218)
Actual benefit payments from employer (31,110) (35,165) (23,320) - (32,698) (28,032) Administrative expense (156) (651) (81) (223) (194) (166) Employer contributions to trust - - 54,000 44,095 32,698 31,000 Net change in Plan Fiduciary Net Position 27,947 118,849 77,288 60,087 141,401 (57,034) Plan Fiduciary Net Position - beginning 349,719 230,870 377,666 454,954 515,041 656,442 Plan Fiduciary Net Position - ending (b) 377,666 349,719 454,954 515,041 656,442 599,408 Net OPEB Liability - ending (a) - (b) $ 520,213 504,586 $ 383,569 $ 374,660 $ 242,398 $ 362,207 $ Plan fiduciary net position as a percentage of the total OPEB liability 40.94% 42.06% 54.26% 57.89% 73.03% 62.33%Covered-employee payroll 5,508,005 $ 5,953,235 $ 6,292,694 $ 6,511,763 $ 6,551,541 $ 6,698,124 $ Net OPEB liability as a percentage of covered-employee payroll 9.16% 8.74% 6.10% 5.75% 3.70% 5.41%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, 2023
-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%
2022-23 28,608 (31,000) (2,392) 6,728,813 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, 2023
-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 -0.04538% (2,454,170) 6,602,744 -37.17% 103.40% 6/30/2022 0.07381% 8,525,331 6,762,128 126.07% 88.94%
Measurement
Date
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2023
-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% 2022-23 1,899,052 (1,899,052) - 6,792,816 27.96%
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, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. 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. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
-95-
SUPPLEMENTARY INFORMATION
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-96-
MAJOR GOVERNMENTAL FUNDS BUDGETARY
COMPARISON SCHEDULES
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CITY OF LOMA LINDA
Special Projects Construction Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2023
-97-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,072,400 $ 1,102,900 $ 1,117,323 $ 14,423 $ Total revenues 1,102,900 1,072,400 1,117,323 14,423
EXPENDITURES
Current:
Public works 24,800 29,400 5,544 23,856
Capital outlay 127,300 151,000 42,434 108,566
Total expenditures 180,400 152,100 47,978 132,422
REVENUES OVER (UNDER) EXPENDITURES 922,500 920,300 1,069,345 146,845
OTHER FINANCING SOURCES (USES)
Transfers in - - 14,001 14,001
Total other financing sources (uses) - - 14,001 14,001
Net change in fund balance 922,500 920,300 1,083,346 160,846
FUND BALANCE (DEFICIT)
Beginning of year 5,849,465 5,849,465 5,849,465 -
End of year 6,769,765 $ 6,771,965 $ 6,932,811 $ 160,846 $ Budgeted Amounts
CITY OF LOMA LINDA
Park Development Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2023
-98-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 2,500 $ 10,500 $ 20,137 $ 9,637 $ Developer fees 235,500 84,900 79,227 (5,673)
Total revenues 95,400 238,000 99,364 3,964
EXPENDITURES
Current:
Community development 158,000 191,200 103,619 87,581
Capital outlay 790,000 956,000 518,092 437,908
Total expenditures 1,147,200 948,000 621,711 525,489
REVENUES OVER (UNDER) EXPENDITURES (1,051,800) (710,000) (522,347) 529,453 Net change in fund balance (1,051,800) (710,000) (522,347) 529,453
FUND BALANCE (DEFICIT)
Beginning of year (1,916,977) (1,916,977) (1,916,977) - End of year (2,626,977) $ (2,968,777) $ (2,439,324) $ 529,453 $ Budgeted Amounts
-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 2022-2023.
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 2022-2023.
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 2022-2023.
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, 2023
-103-
Traffic Gas CASp Cert &
Safety Tax Training Measure I
ASSETS
Cash and investments - $ 56,759 $ 36,567 $ 227,923 $
Receivables:
Accounts - - 300 -
Taxes - 155,635 - -
Interest - - - 1,426
Contract and loans - - - -
Due from other governments 9,393 - - 165,530
Prepaid items - - - -
Total assets $ 212,394 9,393 $ 36,867 $ 394,879 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 177 $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities - - 177 -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - 57,085
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - 36,690 -
Public safety - - - -
Street improvements 9,393 212,394 - 337,794
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 212,394 9,393 36,690 337,794 Total liabilities, deferred inflows of resources
and fund balance $ 212,394 9,393 $ 36,867 $ 394,879 $
Special Revenue Funds
(Continued)
-104-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 129,921 238,470 $ 102,558 $ 12,348 $
- - - -
6,625 - 3,721 -
1,240 1,482 1,072 106
- - - -
- 31,898 - 8,454
54 - 49 -
$ 137,840 271,850 $ 107,400 $ 20,908 $
$ 25,010 24,902 $ 23,101 $ 6,094 $
323 - - -
- - - -
- - - -
25,333 24,902 23,101 6,094
25,264 - - -
- - - -
- - - -
- - - -
112,507 221,684 84,299 -
- - - -
- - - -
- - - 14,814
- - - -
- - - -
- - - -
112,507 221,684 84,299 14,814
$ 137,840 271,850 $ 107,400 $ 20,908 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
-105-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
ASSETS
Cash and investments 65,133 $ 2 $ - $ - $
Receivables:
Accounts - - - -
Taxes - - - -
Interest 498 - - -
Contract and loans - - - -
Due from other governments - - 92,207 101,013
Prepaid items - - - -
Total assets $ 2 65,631 $ 92,207 $ 101,013 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 1,835 $ 2,746 $
Accrued liabilities - - - -
Due to other funds - - 90,904 72,061
Unearned revenue - - - 10,093
Total liabilities - - 92,739 84,900
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - 80,798 16,454
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - 2 - -
Street improvements 65,631 - - -
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - (81,330) (341)
Total fund balances (deficit) 2 65,631 (81,330) (341)
Total liabilities, deferred inflows of resources
and fund balance $ 2 65,631 $ 92,207 $ 101,013 $
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 $ 1,745 530,540 $ 198,816 $ - $ 1,600,782 $
- - - - 300
- - - - 165,981
13 4,093 1,519 - 11,449
- - 20,174 - 20,174
- - - - 408,495
- - - - 103
$ 1,758 534,633 $ 220,509 $ - $ 2,207,284 $
$ - - $ - $ - $ 83,865 $
- - - - 323
- 102,149 - - 265,114
- 440,478 - - 450,571
- 542,627 - - 799,873
- - - - 179,601
- - - - -
- - - - 36,690
- - - - 2
1,758 - - - 1,045,460
- - - - -
- - - - -
- - - - 14,814
- - - - -
- - 220,509 - 220,509
- (7,994) - - (89,665)
1,758 (7,994) 220,509 - 1,227,810
$ 1,758 534,633 $ 220,509 $ - $ 2,207,284 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-107-
Storm Traffic Fire General
Drain Impact Facilities Facilities
ASSETS
Cash and investments 1,159,047 $ 1,412,577 $ 1,620,183 $ 221,292 $ Receivables:
Accounts - - - -
Taxes - - - -
Interest 8,858 10,817 12,383 1,840
Contract and loans - - - -
Due from other governments - - - -
Prepaid items - - - -
Total assets $ 1,423,394 1,167,905 $ 1,632,566 $ 223,132 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ 15,788 - $ - $ 94,029 $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Total liabilities 15,788 - - 94,029
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCE:
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - - 1,632,566 -
Street improvements - 1,407,606 - -
Storm drains 1,167,905 - - -
Municipal facilities - - - 129,103
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 1,407,606 1,167,905 1,632,566 129,103 Total liabilities, deferred inflows of resources
and fund balance $ 1,423,394 1,167,905 $ 1,632,566 $ 223,132 $ 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 $ 714,371 56,527 $ 31,355 $ 196,254 $ 834,386 $ 6,245,992 $ - - - - - -
- - - - - -
5,453 432 240 1,535 7,675 49,233
- - - - - -
- - - - - -
- - - - - -
$ 719,824 56,959 $ 31,595 $ 197,789 $ 842,061 $ 6,295,225 $ $ - - $ - $ - $ 863 $ 110,680 $
- - - - - -
- - - - - -
- - - - - -
- - - - 863 110,680
- - - - - -
- - 31,595 197,789 - 229,384
- - - - - -
- - - - - 1,632,566
- - - - 841,198 2,248,804
- - - - - 1,167,905
719,824 - - - - 848,927
- - - - - -
- - - - - -
- - - - - -
- 56,959 - - - 56,959
719,824 56,959 31,595 197,789 841,198 6,184,545
$ 719,824 56,959 $ 31,595 $ 197,789 $ 842,061 $ 6,295,225 $ Capital Projects Funds
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CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
-109-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds
ASSETS
Cash and investments 12,756 $ 40,006 $ 52,762 $ 7,899,536 $ Receivables:
Accounts - - - 300
Taxes - - - 165,981
Interest - 306 306 60,988
Contract and loans - - - 20,174
Due from other governments - - - 408,495
Prepaid items - - - 103
Total assets $ 40,312 12,756 $ 53,068 $ 8,555,577 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ - $ 194,545 $
Accrued liabilities - - - 323
Due to other funds - - - 265,114
Unearned revenue - - - 450,571
Total liabilities - - - 910,553
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - 179,601
FUND BALANCE:
Restricted for:
Cultural and recreational - - - 229,384
State mandated - - - 36,690
Public safety - - - 1,632,568
Street improvements - - - 3,294,264
Storm drains - - - 1,167,905
Municipal facilities - - - 848,927
Air quality management - - - 14,814
Debt service 12,756 40,312 53,068 53,068
Low mod housing programs - - - 220,509
Unassigned - - - (32,706)
Total fund balances (deficit) 40,312 12,756 53,068 7,465,423 Total liabilities, deferred inflows of resources
and fund balance $ 40,312 12,756 $ 53,068 $ 8,555,577 $ 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, 2023
-110-
Traffic Gas CASp CERT &
Safety Tax Training Measure I
REVENUES
Taxes - $ - $ - $ 673,597 $
Intergovernmental - 1,214,311 - -
Charges for services - - 6,907 -
Use of money and property - - - 10,449
Fines and forfeitures 59,337 - - -
Miscellaneous - - - -
Developer fees - - - -
Total revenues 1,214,311 59,337 6,907 684,046
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - 759 -
Public works - - - -
Capital outlay - 556,125 - 962,942
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 556,125 - 759 962,942
REVENUES OVER (UNDER) EXPENDITURES 658,186 59,337 6,148 (278,896)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (57,955) (648,585) - -
Subscription acquisition - - - -
Total other financing sources (uses) (648,585) (57,955) - - Net change in fund balances 9,601 1,382 6,148 (278,896)
FUND BALANCE (DEFICIT)
Beginning of year 8,011 202,793 30,542 616,690
End of year 9,393 $ 212,394 $ 36,690 $ 337,794 $
Special Revenue Funds
(Continued)
-111-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 364,425 - $ 438,628 $ - $
- 1,200,925 - 41,650
- - - -
2,606 (6) 1,406 289
- - - -
51 - 43 -
- - - -
367,082 1,200,919 440,077 41,939
- - - -
- - - 39,319
- - 529,720 -
396,539 - - -
785 1,113,555 717 -
254 - 232 -
33 - 30 -
397,611 1,113,555 530,699 39,319
(30,529) 87,364 (90,622) 2,620
- - 120,000 -
- - - -
139 - 127 -
139 - 120,127 -
(30,390) 87,364 29,505 2,620
142,897 134,320 54,794 12,194
$ 112,507 221,684 $ 84,299 $ 14,814 $
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, 2023
-112-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - 57,323 157,627
Charges for services - - - -
Use of money and property 1,289 - 142 -
Fines and forfeitures - - - -
Miscellaneous - - - -
Developer fees - - - -
Total revenues - 1,289 57,465 157,627
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - 105,586 16,454
Public works - - - -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - - 105,586 16,454
REVENUES OVER (UNDER) EXPENDITURES - 1,289 (48,121) 141,173
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Subscription acquisition - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - 1,289 (48,121) 141,173
FUND BALANCE (DEFICIT)
Beginning of year 64,342 2 (33,209) (141,514)
End of year $ 2 65,631 $ (81,330) $ (341) $
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 $ - - $ - $ - $ 1,476,650 $
- 142,094 - 2,928,307 5,742,237
- - - - 6,907
35 8,966 4,821 - 29,997
- - - - 59,337
- - - - 94
- - - - -
35 151,060 4,821 2,928,307 7,315,222
- - - - -
- 51,661 - - 90,980
- - - - 652,519
- - - - 396,539
- - - - 2,634,124
- - - - 486
- - - - 63
- 51,661 - - 3,774,711
35 99,399 4,821 2,928,307 3,540,511
- - - - 120,000
- (102,149) - (2,928,307) (3,736,996)
- - - - 266
- (102,149) - (2,928,307) (3,616,730)
35 (2,750) 4,821 - (76,219)
1,723 (5,244) 215,688 - 1,304,029
$ 1,758 (7,994) $ 220,509 $ - $ 1,227,810 $
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, 2023
-114-
Storm Traffic Fire General
Drain Impact Facilities Facilities
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - - -
Charges for services 12,896 - - -
Use of money and property 22,724 45,624 31,915 7,905
Fines and forfeitures - - - -
Miscellaneous - - - -
Developer fees - 47,159 9,552 5,605
Total revenues 92,783 35,620 41,467 13,510
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works - 138,605 - 40,047
Capital outlay - 710,796 - 205,380
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 849,401 - - 245,427
REVENUES OVER (UNDER) EXPENDITURES (756,618) 35,620 41,467 (231,917)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Subscription acquisition - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (756,618) 35,620 41,467 (231,917)
FUND BALANCE (DEFICIT)
Beginning of year 1,132,285 2,164,224 1,591,099 361,020 End of year $ 1,407,606 1,167,905 $ 1,632,566 $ 129,103 $ 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 $ - - $ - $ - $ - $ - $
- 192,621 - - - 192,621
- - - - - 12,896
14,058 570 620 5,184 26,323 154,923
- - - - - -
- - - - - -
4,282 - - 18,689 - 85,287
18,340 193,191 620 23,873 26,323 445,727
- - - - - -
- - - - - -
- - - - - -
- - - 12,601 48,902 240,155
- - - 64,618 250,778 1,231,572
- - - - - -
- - - - - -
- - - 77,219 299,680 1,471,727
18,340 193,191 620 (53,346) (273,357) (1,026,000)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
18,340 193,191 620 (53,346) (273,357) (1,026,000)
701,484 (136,232) 30,975 251,135 1,114,555 7,210,545
$ 719,824 56,959 $ 31,595 $ 197,789 $ 841,198 $ 6,184,545 $ 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, 2023
-116-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds
REVENUES
Taxes - $ - $ - $ 1,476,650 $
Intergovernmental - - - 5,934,858
Charges for services - - - 19,803
Use of money and property - 800 800 185,720
Fines and forfeitures - - - 59,337
Miscellaneous - - - 94
Developer fees - - - 85,287
Total revenues 800 - 800 7,761,749
EXPENDITURES
Current:
General government - 315 315 315
Public safety - - - 90,980
Community development - - - 652,519
Public works - - - 636,694
Capital outlay - - - 3,865,696
Debt service:
Principal retirement - - - 486
Interest and fiscal charges - - - 63
Total expenditures 315 - 315 5,246,753
REVENUES OVER (UNDER) EXPENDITURES 485 - 485 2,514,996
OTHER FINANCING SOURCES (USES)
Transfers in - - - 120,000
Transfers out - - - (3,736,996)
Subscription acquisition - - - 266
Total other financing sources (uses) - - - (3,616,730)
Net change in fund balances 485 - 485 (1,101,734)
FUND BALANCE (DEFICIT)
Beginning of year 12,756 39,827 52,583 8,567,157
End of year $ 40,312 12,756 $ 53,068 $ 7,465,423 $
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, 2023
-118-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures 45,000 $ 46,000 $ 59,337 $ 13,337 $ Total revenues 46,000 45,000 59,337 13,337
REVENUES OVER (UNDER) EXPENDITURES 46,000 45,000 59,337 13,337
OTHER FINANCING SOURCES (USES)
Transfers out (45,000) (46,000) (57,955) (11,955)
Total other financing sources (uses) (46,000) (45,000) (57,955) (11,955) Net change in fund balance - - 1,382 1,382
FUND BALANCE (DEFICIT)
Beginning of year 8,011 8,011 8,011 -
End of year $ 8,011 8,011 $ 9,393 $ 1,382 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Gas Tax
For the year ended June 30, 2023
-119-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,299,400 $ 1,205,900 $ 1,214,311 $ 8,411 $ Total revenues 1,205,900 1,299,400 1,214,311 8,411
EXPENDITURES
Capital outlay 567,000 567,000 556,125 10,875
Total expenditures 567,000 567,000 556,125 10,875
REVENUES OVER (UNDER) EXPENDITURES 638,900 732,400 658,186 19,286
OTHER FINANCING SOURCES (USES)
Transfers out (731,900) (656,100) (648,585) 7,515
Total other financing sources (uses) (656,100) (731,900) (648,585) 7,515 Net change in fund balance (17,200) 500 9,601 26,801
FUND BALANCE (DEFICIT)
Beginning of year 202,793 202,793 202,793 -
End of year $ 185,593 203,293 $ 212,394 $ 26,801 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
CASp CERT & Training
For the year ended June 30, 2023
-120-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 6,000 $ 8,000 $ 6,907 $ (1,093) $
Total revenues 8,000 6,000 6,907 (1,093)
EXPENDITURES
Current:
Community development - - 759 (759)
Total expenditures - - 759 (759)
REVENUES OVER (UNDER) EXPENDITURES 8,000 6,000 6,148 (1,852) Net change in fund balance 8,000 6,000 6,148 (1,852)
FUND BALANCE (DEFICIT)
Beginning of year 30,542 30,542 30,542 -
End of year $ 38,542 36,542 $ 36,690 $ (1,852) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I
For the year ended June 30, 2023
-121-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 638,700 $ 638,700 $ 673,597 $ 34,897 $
Use of money and property 1,000 6,000 10,449 4,449
Total revenues 644,700 639,700 684,046 39,346
EXPENDITURES
Capital outlay 810,000 990,700 962,942 27,758
Total expenditures 990,700 810,000 962,942 27,758
REVENUES OVER (UNDER) EXPENDITURES (346,000) (170,300) (278,896) 67,104 Net change in fund balance (346,000) (170,300) (278,896) 67,104
FUND BALANCE (DEFICIT)
Beginning of year 616,690 616,690 616,690 -
End of year $ 270,690 446,390 $ 337,794 $ 67,104 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I MSART
For the year ended June 30, 2023
-122-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 2,269,900 $ 2,269,900 $ 1,200,925 $ (1,068,975) $ Use of money and property 400 1,500 (6) (1,506)
Total revenues 2,271,400 2,270,300 1,200,919 (1,070,481)
EXPENDITURES
Capital outlay 2,595,800 2,595,800 1,113,555 1,482,245
Total expenditures 2,595,800 2,595,800 1,113,555 1,482,245 REVENUES OVER (UNDER) EXPENDITURES (324,400) (325,500) 87,364 411,764 Net change in fund balance (324,400) (325,500) 87,364 411,764
FUND BALANCE (DEFICIT)
Beginning of year 134,320 134,320 134,320 -
End of year (191,180) $ (190,080) $ 221,684 $ 411,764 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Street Lighting District
For the year ended June 30, 2023
-123-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 324,000 $ 361,500 $ 364,425 $ 2,925 $
Use of money and property 200 1,500 2,606 1,106
Miscellaneous - 100 51 (49)
Total revenues 363,100 324,200 367,082 3,982
EXPENDITURES
Current:
Public works 314,100 441,800 396,539 45,261
Capital outlay 700 800 785 15
Debt service:
Principal retirement - 300 254 46
Interest and fiscal charges - 100 33 67
Total expenditures 443,000 314,800 397,611 45,389
REVENUES OVER (UNDER) EXPENDITURES (79,900) 9,400 (30,529) 49,371
OTHER FINANCING SOURCES (USES)
Subscription acquisition - - 139 139
Total other financing sources (uses) - - 139 139
Net change in fund balance (79,900) 9,400 (30,390) 49,510
FUND BALANCE (DEFICIT)
Beginning of year 142,897 142,897 142,897 -
End of year 152,297 $ 62,997 $ 112,507 $ 49,510 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Landscape Maintenance District
For the year ended June 30, 2023
-124-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 383,400 $ 437,500 $ 438,628 $ 1,128 $
Use of money and property 200 600 1,406 806
Miscellaneous - 100 43 (57)
Total revenues 438,200 383,600 440,077 1,877
EXPENDITURES
Current:
Community development 520,200 609,600 529,720 79,880
Capital outlay 600 700 717 (17)
Debt service:
Principal retirement - 300 232 68
Interest and fiscal charges - 100 30 70
Total expenditures 610,700 520,800 530,699 80,001
REVENUES OVER (UNDER) EXPENDITURES (172,500) (137,200) (90,622) 81,878
OTHER FINANCING SOURCES (USES)
Transfers in 120,000 120,000 120,000 -
Subscription acquisition - - 127 127
Total other financing sources (uses) 120,000 120,000 120,127 127 Net change in fund balance (52,500) (17,200) 29,505 82,005
FUND BALANCE (DEFICIT)
Beginning of year 54,794 54,794 54,794 -
End of year 37,594 $ 2,294 $ 84,299 $ 82,005 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Air Quality Management District
For the year ended June 30, 2023
-125-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 31,200 $ 24,000 $ 41,650 $ 17,650 $
Use of money and property 100 100 289 189
Total revenues 24,100 31,300 41,939 17,839
EXPENDITURES
Current:
Public safety 53,000 53,000 39,319 13,681
Total expenditures 53,000 53,000 39,319 13,681
REVENUES OVER (UNDER) EXPENDITURES (28,900) (21,700) 2,620 31,520 Net change in fund balance (28,900) (21,700) 2,620 31,520
FUND BALANCE (DEFICIT)
Beginning of year 12,194 12,194 12,194 -
End of year (9,506) $ (16,706) $ 14,814 $ 31,520 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Improvements Per MOU
For the year ended June 30, 2023
-126-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 200 $ 1,500 $ 1,289 $ (211) $ Total revenues 1,500 200 1,289 (211)
REVENUES OVER (UNDER) EXPENDITURES 1,500 200 1,289 (211) Net change in fund balance 1,500 200 1,289 (211)
FUND BALANCE (DEFICIT)
Beginning of year 64,342 64,342 64,342 -
End of year $ 65,842 64,542 $ 65,631 $ (211) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Community Development Block Grant
For the year ended June 30, 2023
-127-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 140,000 $ 273,000 $ 57,323 $ (215,677) $ Use of money and property - 400 142 (258)
Total revenues 273,400 140,000 57,465 (215,935)
EXPENDITURES
Current:
Community development 20,000 153,000 105,586 47,414
Capital outlay 120,000 120,000 - 120,000
Total expenditures 273,000 140,000 105,586 167,414
REVENUES OVER (UNDER) EXPENDITURES 400 - (48,121) (48,521) Net change in fund balance 400 - (48,121) (48,521)
FUND BALANCE (DEFICIT)
Beginning of year (33,209) (33,209) (33,209) -
End of year $ (32,809) (33,209) $ (81,330) $ (48,521) $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Grant Fund
For the year ended June 30, 2023
-128-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 220,600 $ 220,600 $ 157,627 $ (62,973) $ Total revenues 220,600 220,600 157,627 (62,973)
EXPENDITURES
Current:
Community development 220,600 220,600 16,454 204,146
Total expenditures 220,600 220,600 16,454 204,146
REVENUES OVER (UNDER) EXPENDITURES - - 141,173 141,173
Net change in fund balance - - 141,173 141,173
FUND BALANCE (DEFICIT)
Beginning of year (141,514) (141,514) (141,514) -
End of year (141,514) $ (141,514) $ (341) $ 141,173 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Citizens Option for Public Safety
For the year ended June 30, 2023
-129-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 108,900 $ 157,400 $ 142,094 $ (15,306) $ Use of money and property 1,000 6,000 8,966 2,966
Total revenues 163,400 109,900 151,060 (12,340)
EXPENDITURES
Current:
Public safety 4,800 53,300 51,661 1,639
Total expenditures 53,300 4,800 51,661 1,639
REVENUES OVER (UNDER) EXPENDITURES 110,100 105,100 99,399 (10,701)
OTHER FINANCING SOURCES (USES)
Transfers out (109,400) (109,400) (102,149) 7,251
Total other financing sources (uses) (109,400) (109,400) (102,149) 7,251 Net change in fund balance 700 (4,300) (2,750) (3,450)
FUND BALANCE (DEFICIT)
Beginning of year (5,244) (5,244) (5,244) -
End of year $ (4,544) (9,544) $ (7,994) $ (3,450) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Development Agreement Consideration
For the year ended June 30, 2023
-130-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,500 $ 4,000 $ 4,821 $ 821 $ Total revenues 4,000 1,500 4,821 821
REVENUES OVER (UNDER) EXPENDITURES 4,000 1,500 4,821 821 Net change in fund balance 4,000 1,500 4,821 821
FUND BALANCE (DEFICIT)
Beginning of year 215,688 215,688 215,688 -
End of year $ 219,688 217,188 $ 220,509 $ 821 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
American Rescue Plan Act
For the year ended June 30, 2023
-131-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 2,928,300 $ 2,928,300 $ 2,928,307 $ 7 $ Total revenues 2,928,300 2,928,300 2,928,307 7
REVENUES OVER (UNDER) EXPENDITURES 2,928,300 2,928,300 2,928,307 7
OTHER FINANCING SOURCES (USES)
Transfers out (2,928,300) (2,928,300) (2,928,307) (7)
Total other financing sources (uses) (2,928,300) (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, 2023
-132-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 29,400 $ 13,800 $ 12,896 $ (904) $ Use of money and property 2,500 15,000 22,724 7,724
Total revenues 28,800 31,900 35,620 6,820
REVENUES OVER (UNDER) EXPENDITURES 28,800 31,900 35,620 6,820 Net change in fund balance 28,800 31,900 35,620 6,820
FUND BALANCE (DEFICIT)
Beginning of year 1,132,285 1,132,285 1,132,285 -
End of year $ 1,161,085 1,164,185 $ 1,167,905 $ 6,820 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Impact
For the year ended June 30, 2023
-133-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 7,000 $ 21,000 $ 45,624 $ 24,624 $ Developer fees 66,500 51,900 47,159 (4,741)
Total revenues 72,900 73,500 92,783 19,883
EXPENDITURES
Current:
Public works 280,600 320,900 138,605 182,295
Capital outlay 1,645,700 1,645,700 710,796 934,904
Total expenditures 1,966,600 1,926,300 849,401 1,117,199 REVENUES OVER (UNDER) EXPENDITURES (1,893,700) (1,852,800) (756,618) 1,137,082 Net change in fund balance (1,893,700) (1,852,800) (756,618) 1,137,082
FUND BALANCE (DEFICIT)
Beginning of year 2,164,224 2,164,224 2,164,224 -
End of year $ 270,524 311,424 $ 1,407,606 $ 1,137,082 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Fire Facilities
For the year ended June 30, 2023
-134-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 3,500 $ 19,500 $ 31,915 $ 12,415 $ Developer fees 22,700 10,200 9,552 (648)
Total revenues 29,700 26,200 41,467 11,767
REVENUES OVER (UNDER) EXPENDITURES 29,700 26,200 41,467 11,767 Net change in fund balance 29,700 26,200 41,467 11,767
FUND BALANCE (DEFICIT)
Beginning of year 1,591,099 1,591,099 1,591,099 -
End of year 1,617,299 $ 1,620,799 $ 1,632,566 $ 11,767 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
General Facilities
For the year ended June 30, 2023
-135-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 800 $ 4,500 $ 7,905 $ 3,405 $ Developer fees 10,800 5,800 5,605 (195)
Total revenues 10,300 11,600 13,510 3,210
EXPENDITURES
Current:
Public works 286,800 293,200 40,047 253,153
Capital outlay 77,300 269,200 205,380 63,820
Total expenditures 562,400 364,100 245,427 316,973
REVENUES OVER (UNDER) EXPENDITURES (552,100) (352,500) (231,917) 320,183 Net change in fund balance (552,100) (352,500) (231,917) 320,183
FUND BALANCE (DEFICIT)
Beginning of year 361,020 361,020 361,020 -
End of year 8,520 $ (191,080) $ 129,103 $ 320,183 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Federal/State Construction
For the year ended June 30, 2023
-136-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - $ 192,700 $ 192,621 $ (79) $
Use of money and property - 1,500 570 (930)
Total revenues 194,200 - 193,191 (1,009)
REVENUES OVER (UNDER) EXPENDITURES 194,200 - 193,191 (1,009) Net change in fund balance 194,200 - 193,191 (1,009)
FUND BALANCE (DEFICIT)
Beginning of year (136,232) (136,232) (136,232) -
End of year $ 57,968 (136,232) $ 56,959 $ (1,009) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Meeting Facilities
For the year ended June 30, 2023
-137-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,500 $ 9,000 $ 14,058 $ 5,058 $ Developer fees 22,000 5,000 4,282 (718)
Total revenues 14,000 23,500 18,340 4,340
REVENUES OVER (UNDER) EXPENDITURES 14,000 23,500 18,340 4,340 Net change in fund balance 14,000 23,500 18,340 4,340
FUND BALANCE (DEFICIT)
Beginning of year 701,484 701,484 701,484 -
End of year 724,984 $ 715,484 $ 719,824 $ 4,340 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Library Facilities
For the year ended June 30, 2023
-138-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 100 $ 600 $ 620 $ 20 $
Total revenues 600 100 620 20
REVENUES OVER (UNDER) EXPENDITURES 600 100 620 20
Net change in fund balance 600 100 620 20
FUND BALANCE (DEFICIT)
Beginning of year 30,975 30,975 30,975 -
End of year 31,075 $ 31,575 $ 31,595 $ 20 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Art in Public Places
For the year ended June 30, 2023
-139-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 700 $ 3,000 $ 5,184 $ 2,184 $ Developer fees 55,700 19,500 18,689 (811)
Total revenues 22,500 56,400 23,873 1,373
EXPENDITURES
Current:
Public works 19,500 19,500 12,601 6,899
Capital outlay 100,000 100,000 64,618 35,382
Total expenditures 119,500 119,500 77,219 42,281
REVENUES OVER (UNDER) EXPENDITURES (97,000) (63,100) (53,346) 43,654 Net change in fund balance (97,000) (63,100) (53,346) 43,654
FUND BALANCE (DEFICIT)
Beginning of year 251,135 251,135 251,135 -
End of year 188,035 $ 154,135 $ 197,789 $ 43,654 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Capital Projects Bond Proceeds
For the year ended June 30, 2023
-140-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 3,000 $ 7,500 $ 26,323 $ 18,823 $ Total revenues 7,500 3,000 26,323 18,823
EXPENDITURES
Current:
Public works 48,800 48,800 48,902 (102)
Capital outlay 250,000 290,000 250,778 39,222
Total expenditures 338,800 298,800 299,680 39,120
REVENUES OVER (UNDER) EXPENDITURES (331,300) (295,800) (273,357) 57,943 Net change in fund balance (331,300) (295,800) (273,357) 57,943
FUND BALANCE (DEFICIT)
Beginning of year 1,114,555 1,114,555 1,114,555 -
End of year 818,755 $ 783,255 $ 841,198 $ 57,943 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Loma Linda Financing Authority
For the year ended June 30, 2023
-141-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 100 $ 600 $ 800 $ 200 $
Total revenues 600 100 800 200
EXPENDITURES
Current:
General government 300 300 315 (15)
Total expenditures 300 300 315 (15)
REVENUES OVER (UNDER) EXPENDITURES 300 (200) 485 185
Net change in fund balance 300 (200) 485 185
FUND BALANCE (DEFICIT)
Beginning of year 39,827 39,827 39,827 -
End of year $ 40,127 39,627 $ 40,312 $ 185 $
Budgeted Amounts
-142-
FIDUCIARY FUNDS
CUSTODIAL FUNDS COMBINING SCHEDULE
CITY OF LOMA LINDA
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
-143-
Custodial Funds include Association Fire Equipment Fund and Customer Deposits Fund.
Association Fire
Equipment Customer Deposits
Total Custodial
Funds
ASSETS
Cash and investments 32,838 $ 98,390 $ 131,228 $
Total assets 98,390 32,838 131,228
LIABILITIES
Accounts payable 124 - 124
Due to other governments 32,714 98,390 131,104
Total liabilities 98,390 32,838 131,228
NET POSITION (DEFICIT)
Restricted for other organizations - $ - $ - $
CITY OF LOMA LINDA
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2023
-144-
Association Fire
Equipment Customer Deposits
Total Custodial
Funds
ADDITIONS
Miscellaneous 2,750 $ - $ 2,750 $
Total additions - 2,750 2,750
DEDUCTIONS
Miscellaneous 29,739 - 29,739
Total deductions - 29,739 29,739
Change in net position (deficit) - (26,989) (26,989)
NET POSITION:
Beginning of year 26,989 - 26,989
End of year - $ - $ - $
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-145-
STATISTICAL SECTION
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-146-
Contents Page
Financial Trends 147
Revenue Capacity 153
Debt Capacity 166
Demographic and Economic Information 172
Operating Information 175
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 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $ 55,885,140 53,642,388 $ 54,701,694 $ 54,669,551 $ Restricted 29,305,083 27,181,403 41,158,883 34,485,340
Unrestricted 2,258,815 (6,245,613) 10,216,095 15,833,197 Total governmental activities net position 85,206,286 $ 76,820,930 $ 106,076,672 $ 104,988,088 $ Business-type activities
Net investment in capital assets $ 37,347,912 38,186,940 $ 36,315,946 $ 35,575,964 $ Restricted 40,839 40,840 41,054 760,313
Unrestricted (9,816,996) (13,846,636) (6,145,456) (7,140,329) Total business-type activities net position 28,410,783 $ 23,542,116 $ 30,211,544 $ 29,195,948 $ Primary government
Net investment in capital assets $ 93,233,052 91,829,328 $ 91,017,640 $ 90,245,515 $ Restricted 29,345,922 27,222,243 41,199,937 35,245,653
Unrestricted (7,558,181) (20,092,249) 4,070,639 8,692,868 Total primary government net position 113,617,069 $ 100,363,046 $ 136,288,216 $ 134,184,036 $ Source: City of Loma Linda Finance Department
-148-
2018 2019 2020 2021 2022 2023
$ 53,363,136 53,645,346 $ 52,098,547 $ 52,880,007 $ 54,585,683 $ 66,560,428 $ 40,255,257 40,009,123 41,042,155 43,777,701 43,645,029 43,785,591 13,949,530 11,961,248 16,553,951 13,952,683 26,633,948 21,046,810 $ 107,567,923 105,615,717 $ 109,694,653 $ 110,610,391 $ 124,864,660 $ 131,392,829 $ $ 35,191,938 35,053,848 $ 35,564,416 $ 36,344,853 $ 36,429,645 $ 38,657,337 $ 396,401 684,561 681,788 682,253 685,433 691,514
(8,176,541) (7,304,285) (8,564,601) (8,688,855) (5,324,916) (7,643,448) $ 27,411,798 28,434,124 $ 27,681,603 $ 28,338,251 $ 31,790,162 $ 31,705,403 $ $ 88,555,074 88,699,194 $ 87,662,963 $ 89,224,860 $ 91,015,328 $ 105,217,765 $ 40,651,658 40,693,684 41,723,943 44,459,954 44,330,462 44,477,105 5,772,989 4,656,963 7,989,350 5,263,828 21,309,032 13,403,362 $ 134,979,721 134,049,841 $ 137,376,256 $ 138,948,642 $ 156,654,822 $ 163,098,232 $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-149-
Fiscal Year 2014 2015 2016 2017
Expenses
Governmental activities:
General government 1,818,573 $ 3,387,169 $ 3,671,993 $ 4,183,558 $ Public safety 8,430,753 8,772,658 9,304,542 11,026,804
Community development 1,948,836 2,278,470 1,841,405 2,390,338 Public works 5,451,342 3,948,235 4,676,124 4,411,533
Interest on long-term debt 180,289 128,956 (12,257) 6,053 Total governmental activities expenses 17,829,793 18,515,488 19,481,807 22,018,286 Business-type activities:
Water acquisition - 32,458 47,594 231,003
Water enterprise 6,414,771 6,529,987 5,697,329 5,956,326 Sewer capital 4,135,446 4,128,121 4,100,045 4,237,844
Loma Linda Connected Communities 923,887 1,183,177 1,118,342 1,056,877 Total business-type activities expenses 11,474,104 11,873,743 10,963,310 11,482,050 Total primary government expenses 29,303,897 $ 30,389,231 $ 30,445,117 $ 33,500,336 $ Program Revenues
Governmental activities:
Charges for services:
General Government 2,017,576 $ 2,230,122 $ 1,914,239 $ 2,411,391 $ Public Safety 566,346 576,908 982,772 2,072,189
Community development 2,598,727 1,247,138 7,689,602 703,820 Public works 1,729,660 1,523,530 1,329,226 1,318,224
Operating contributions and grants 238,064 227,592 675,510 918,093 Capital contributions and grants 5,425,257 1,276,451 1,321,811 349,723 7,081,741 12,575,630 13,913,160 7,773,440
Business-type activities:
Charges for services:
Water acquisition 60,113 249,351 506,018 124,489
Water enterprise 4,813,653 4,970,004 4,570,660 4,910,137 Sewer capital 3,457,741 3,843,936 3,853,476 4,187,465
Loma Linda Connected Communities 414,429 399,978 362,285 389,793 Capital Grants and Contributions - - - -
9,463,269 8,745,936 9,292,439 9,611,884
Total primary government revenues 21,321,566 $ 16,545,010 $ 23,205,599 $ 17,385,324 $ Net (expense)/revenue
Governmental activities (5,254,163) $ (11,433,747) $ (5,568,647) $ (14,244,846) $ Business-type activities (2,728,168) (2,410,474) (1,670,871) (1,870,166) $ (13,844,221) (7,982,331) $ (7,239,518) $ (16,115,012) $ Total governmental activities program revenues
Total business-type activities program revenues
Total primary government net (expense)/revenue
Source: City of Loma Linda Finance Department
Continued
-150-
2018 2019 2020 2021 2022 2023
$ 6,425,416 3,446,226 $ 4,655,547 $ 2,432,363 $ 2,068,926 $ 3,310,972 $ 13,454,286 12,531,692 13,132,883 15,816,365 10,634,051 20,947,648 2,309,000 2,530,022 3,646,694 3,405,290 2,264,274 3,841,626 7,202,335 6,231,901 7,191,106 6,691,119 4,811,300 7,867,724 7,778 - 3,148 1,606 2,643 2,995
29,398,815 24,739,841 28,629,378 28,346,743 19,781,194 35,970,965 651,998 142,488 163,718 34,407 271,277 177,556
7,334,056 6,581,432 7,321,257 7,451,276 4,974,785 9,683,633 4,655,471 4,484,711 4,780,642 4,848,037 3,894,446 5,986,152 981,077 1,082,358 1,075,479 998,596 834,694 1,097,751
13,622,602 12,290,989 13,341,096 13,332,316 9,975,202 16,945,092 $ 43,021,417 37,030,830 $ 41,970,474 $ 41,679,059 $ 29,756,396 $ 52,916,057 $ $ 3,237,396 2,601,912 $ 2,947,216 $ 3,309,689 $ 2,924,322 $ 2,815,553 $ 2,701,403 2,542,110 2,326,787 3,572,136 4,423,248 4,124,985 3,102,051 1,311,497 3,465,549 7,298,611 1,310,861 519,865 1,820,291 1,561,965 1,782,676 3,049,457 2,065,657 2,002,385 2,552,498 772,551 664,307 - 3,913,570 3,973,992
1,308,805 151,081 1,510,791 - 2,213,685 12,481,660
14,722,444 8,941,116 12,697,326 17,229,893 16,851,343 25,918,440 643,278 392,278 1,141,226 521,151 283,721 273,729
5,745,814 5,620,078 6,076,134 6,908,052 7,001,145 6,764,478 5,021,365 4,675,647 5,327,464 5,565,852 5,531,874 5,895,903 326,992 317,575 359,079 342,360 326,196 322,398
- - - - - 2,774,835
11,737,449 11,005,578 12,903,903 13,337,415 13,142,936 16,031,343 $ 26,459,893 19,946,694 $ 25,601,229 $ 30,567,308 $ 29,994,279 $ 41,949,783 $ $ (14,676,371) (15,798,725) $ (15,932,052) $ (11,116,850) $ (2,929,851) $ (10,052,525) $ (1,885,153) (1,285,411) (437,193) 5,099 3,167,734 (913,749) $ (16,561,524) (17,084,136) $ (16,369,245) $ (11,111,751) $ 237,883 $ (10,966,274) $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-151-
Fiscal Year 2014 2015 2016 2017
General Revenues and Other Changes in
Net Position
Government activities:
Taxes
Property taxes 2,391,993 $ 2,424,066 $ 2,119,528 $ 2,193,323 $ Sales taxes 3,733,160 5,721,938 7,575,743 6,692,095
Franchise tax 811,238 848,712 852,859 886,502
Other taxes 871,103 831,258 1,065,353 1,116,979
Motor vehicle in lieu, unrestricted 1,688,439 - - -
Intergovernmental 213,852 2,205,319 1,258,590 1,987,145 Transfers - - - (290,619)
Total taxes and transfers 9,709,785 12,031,293 12,872,073 12,585,425 Investment income 227,033 503,598 610,671 487,762
Capital contribution 89,413 - - -
Miscellaneous 139,192 36,389 26,759 8,523
Gain (Loss) on sale of capital assets - - - 74,552
Total governmental activities 10,165,423 12,571,280 13,509,503 13,156,262 Business-type activities:
Investment income 8,608 7,932 128,012 86,522
Capital contribution (89,413) - - -
Miscellaneous 589,923 650,590 680,341 477,429
Transfers - - - 290,619
Gain (Loss) on sale of capital assets - - -
Total business-type activities 509,118 658,522 808,353 854,570 Total primary government 10,674,541 $ 13,229,802 $ 14,317,856 $ 14,010,832 $ 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 4,911,260 $ 1,137,533 $ 29,255,742 $ (1,088,584) $ Business-type activities (2,219,050) (1,751,952) 6,669,428 (1,015,596) Total primary government 2,692,210 $ (614,419) $ 35,925,170 $ (2,104,180) $ Source: City of Loma Linda Finance Department
-152-
2018 2019 2020 2021 2022 2023
$ 2,787,070 2,489,895 $ 3,086,116 $ 3,043,003 $ 3,390,738 $ 3,586,971 $ 7,700,848 8,692,611 9,008,051 3,673,588 7,951,156 5,905,806 961,693 960,660 990,531 1,060,786 1,346,875 1,535,743
1,003,817 882,677 850,823 922,825 951,306 1,026,759
2,293,699 - 2,433,722 2,504,220 2,745,301 2,943,157
- 2,197,430 - - - -
4,799 (84,916) 9,305 (83,538) 167,951 40,370
14,751,926 15,138,357 16,378,548 11,120,884 16,553,327 15,038,806 1,290,647 970,488 1,472,804 (388,070) 204,757 1,463,744 - - - - - -
555,160 210,983 196,705 1,274,064 53,959 68,694
30,844 426,863 10,725 25,710 (27,923) 9,450
16,628,577 16,746,691 18,058,782 12,032,588 16,784,120 16,580,694 271,702 167,515 208,279 62,642 (64,894) 278,367
- - - - - -
595,149 458,106 508,024 501,164 517,022 588,493
(4,799) 84,916 (9,305) 83,538 (167,951) (40,370)
775 20,062 - 4,205 - 2,500
862,827 730,599 706,998 651,549 284,177 828,990
$ 17,491,404 17,477,290 $ 18,765,780 $ 12,684,137 $ 17,068,297 $ 17,409,684 $ $ - - $ - $ - $ - $ - $
- - - - - -
$ - - $ - $ - $ - $ - $
$ 1,952,206 947,966 $ 2,126,730 $ 915,738 $ 13,854,269 $ 6,528,169 $ (1,022,326) (554,812) 269,805 656,648 3,451,911 (84,759) $ 929,880 393,154 $ 2,396,535 $ 1,572,386 $ 17,306,180 $ 6,443,410 $ 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 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 7,951,156 1,346,875 125,626 608,867 328,797 13,642 * 781,573 13,640,075 2023 2,711,506 5,906,330 1,535,743 72,412 631,126 382,648 13,920 803,053 12,056,738 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 2014 2015 2016 2017 2018
General Fund
Non Spendable:
Inventories 22,934 $ 18,966 $ 12,299 $ 10,933 $ 14,944 $ Prepaid items 764 8,569 619,657 19,063 3,261
Restricted for:
- - - - 5,848
General government 15,768 18,872 - - -
Committted for:
Emergency contingency 3,500,000 3,500,000 5,500,000 5,500,000 5,500,000 Assigned for:
Refuse services 91,540 95,832 97,690 91,540 99,033
Fire equipment replacement 88,812 270,040 104,144 88,812 224,776 Sewer loan - - - - -
Fire training - - - - -
Capital equipment replacement 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Unfunded liabilities - - - - 2,000,000
Unassigned 5,836,876 6,827,235 5,868,335 5,836,876 6,664,717 Total general fund 10,806,694 $ 11,989,514 $ 13,452,125 $ 12,797,224 $ 15,762,579 $ All other governmental funds
Non Spendable:
Prepaid items - $ 40,672 $ 1,259 $ 1,036 $ 20 $
Restricted for:
Cultural and recreational 304,711 332,436 345,310 370,928 375,309 State mandated - - - - -
Public safety 442,199 452,514 672,745 701,990 735,937
Street improvements 5,156,456 4,295,300 15,919,327 14,596,849 19,814,982 Storm drains 757,919 771,018 792,052 801,366 847,125
Municipal facilities 271,092 195,306 204,971 133,774 165,984 Air quality management 80,988 86,456 63,454 47,451 27,763 Debt service 1,205,057 137,614 136,148 137,112 139,030
Low/mod hosing programs 17,956,592 17,810,779 17,933,640 17,695,044 17,903,020 Unassigned (5,475,010) (6,363,912) (2,635,280) (2,935,592) (3,534,374) Total all other governmental funds 20,700,004 $ 17,758,183 $ 33,433,626 $ 31,549,958 $ 36,474,796 $ State Mandated
Source: City of Loma Linda Finance Department
-155-
2019 2020 2021 2022 2023
$ 20,290 9,298 $ 18,268 $ 30,427 $ 24,688 $
2,816 1,577 1,763 8,537 17,781
- 6,399 - - -
- - - - -
2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
135,495 103,035 167,204 210,124 276,796
282,099 272,593 365,170 470,908 514,929
422,673 - 424,303 124,738 -
- - - - 32,714
1,250,000 1,250,000 1,250,000 1,250,000 1,250,000
- - - - -
5,970,489 7,720,336 8,378,141 12,917,535 15,212,702
$ 10,083,862 11,363,238 $ 12,604,849 $ 17,012,269 $ 19,329,610 $ $ - - $ - $ - $ - $
362,529 447,552 326,905 282,110 229,384
18,952 - 24,550 30,542 36,690
1,046,468 818,020 1,572,294 1,591,101 1,632,568
20,182,145 19,684,580 22,567,239 21,857,232 22,070,796
900,539 797,517 1,113,026 1,132,285 1,167,905
767,588 378,816 1,022,630 1,062,504 848,927
32,944 25,952 27,245 12,194 14,814
144,929 142,206 53,256 52,583 53,068
17,605,013 17,960,614 17,151,467 17,655,020 17,768,129
(2,754,783) (2,186,552) (1,853,102) (2,233,176) (2,472,030) $ 38,306,324 38,068,705 $ 42,005,510 $ 41,442,395 $ 41,350,251 $
CITY OF LOMA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-156-
Fiscal Year 2014 2015 2016 2017
Revenues
Taxes 9,398,391 $ 11,624,605 $ 13,489,938 $ 12,876,043 $ Licenses and permits 532,046 629,954 478,522 398,756
Intergovernmental revenues 900,263 961,314 1,516,208 994,225 Charges for services 1,921,614 1,789,325 1,848,851 3,153,168 Use of money and property 468,283 451,109 508,805 757,656 Fines, forfeitures, and penalties 166,014 154,642 142,437 129,123 Miscellaneous 6,976,393 2,811,345 2,625,326 2,353,757
Developer fees 814,556 518,956 7,092,505 188,523
Total Revenues 21,177,560 18,941,250 27,702,592 20,851,251 Expenditures
General government 1,269,463 2,816,532 3,057,584 3,831,946 Public safety 8,372,894 8,494,523 9,522,944 11,005,886
Community development 1,834,266 1,997,868 1,725,470 2,279,446 Public works 2,338,243 2,235,090 2,789,413 2,659,712
Capital outlay 6,668,468 3,024,351 1,033,346 2,606,365
Debt service
Principal retirement 914,378 1,905,590 31,853 33,165
Interest and fiscal charges 164,563 132,266 28,855 7,419 Total Expenditures 21,562,275 20,606,220 18,189,465 22,423,939 Excess of revenues
over (under) expenditures (384,715) (1,664,970) 9,513,127 (1,572,688) Other Financing Sources (Uses)
Lease acquisition - - - -
Subscription acquisition - - - -
Gain on disposal of assets 97,996 20,000 56,415 74,552
Loss of disposal of assets - (114,031) - -
Transfers in 2,438,425 2,218,439 829,833 834,210
Transfers out (2,438,425) (2,218,439) (829,833) (1,124,829) Total Other Financing Sources (Uses) 97,996 (94,031) 56,415 (216,067) Net Change in Fund Balances Before Extraordinary Item (286,719) (1,759,001) 9,569,542 (1,788,755) Extraordinary Item* - - 7,568,512 -
Net Change in Fund Balances (286,719) $ (1,759,001) $ 17,138,054 $ (1,788,755) $ Debt Service as a percentage of
non-capital expenditures 6.4% 11.4% 0.4% 0.2%
*Extraordinary item did not apply to prior years.
Source: City of Loma Linda Finance Department
-157-
2019 2020 2021 2022 2023
$ 15,435,408 14,499,866 $ 13,043,092 $ 14,512,225 $ 13,635,005 $ 12,056,738 $ 495,979 463,878 858,993 639,968 674,337 522,625
3,669,009 888,521 1,632,833 2,644,460 8,443,940 8,968,712 4,053,022 3,563,490 4,006,691 4,067,319 4,701,339 4,790,465 2,412,446 2,820,221 2,322,671 1,744,388 1,297,574 2,549,996 472,114 115,205 79,897 58,347 77,790 62,577
3,681,395 2,848,072 2,869,489 3,903,673 3,640,957 3,781,453 2,182,962 735,690 2,476,701 6,288,823 995,616 273,942
32,402,335 25,934,943 27,290,367 33,859,203 33,466,558 33,006,508 6,595,193 2,870,793 3,778,105 2,289,017 3,093,515 2,235,610 17,476,968 12,153,050 13,294,924 14,090,224 15,429,737 16,534,477 2,411,105 2,372,587 3,173,643 3,032,467 2,824,271 2,721,090 3,233,008 2,821,934 3,386,611 3,700,043 3,713,343 3,991,516 5,486,524 3,410,812 4,678,287 4,428,866 5,334,219 5,362,780 35,955 34,532 37,436 38,979 14,289 24,691
4,630 6,053 3,148 1,606 2,643 2,995
35,243,383 23,669,761 28,352,154 27,581,202 30,412,017 30,873,159 (2,841,048) 2,265,182 (1,061,787) 6,278,001 3,054,541 2,133,349 - - - - 96,789 17,793
- - - - - 24,235
30,844 567,549 10,725 25,710 125,024 9,450
- - - - - -
771,153 743,146 771,715 1,106,744 4,005,222 3,897,366
(766,354) (828,062) (762,410) (1,190,282) (3,837,271) (3,856,996) 35,643 482,633 20,030 (57,828) 389,764 91,848
(2,805,405) 2,747,815 (1,041,757) 6,220,173 3,444,305 2,225,197 - - - - - -
$ (2,805,405) 2,747,815 $ (1,041,757) $ 6,220,173 $ 3,444,305 $ 2,225,197 $
0.2% 0.1% 0.2% 0.2% 0.1% 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
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 2023 5,232,733 2,711,506 1,535,743 72,412 631,126 382,648 13,920 10,580,088 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, 2023
-159-
Business Name Business Category
ABI Document Support Services Business Services
Anixter Electrical Equipment
Arco AM PM Service Stations
Baker Distributing Company Plumbing/Electrical Supplies Bear Oil Union 76 Service Stations
Chevron Service Stations
Clarks Nutritional Center Food Store Non-Grocery
Farmers Boys Fast-Casual Restaurants
Hirsch Pipe & Supply Plumbing/Electrical Supplies
Honda Lease Trust Auto Lease
Hyundai Inland Empire New Motor Vehicle Dealers
Hyundai Lease Titling Trust Auto Lease
Loma Linda Mercantile Medical/Biotech
Loma Linda Optical Department Government/Social Org.
Loma Linda University Medical Center Medical/Biotech
Mansfield Oil Petroleum Prod/Equipment
McDonalds Quick-Service Restaurants
Mountain View Shell Service Stations
Quaid Harley Davidson Boats/Motorcycles
Rite Aid Drug Stores
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=94.84% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies For Fiscal year 2022-2023
CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2023 (Continued)
-160-
Business Name Business Category
Anixter Electrical Equipment
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 New Motor Vehicle Dealers
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 University 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=92.88% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies For Fiscal Year 2013-14
CITY OF LOMA LINDA
Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) As of June 30, 2023 -161-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Food Stores 12,244 $ 14,974 $ 17,040 $ 17,761 $ 18,016 $ 17,835 $ 17,672 $ 20,833 $ 19,919 $ 19,946 $ Eating and Drinking Places 21,575 23,684 27,887 27,559 29,054 28,868 29,513 24,916 30,278 31,610 Auto Dealers and Supplies 97,189 101,129 112,499 122,391 132,069 135,623 123,557 112,882 130,380 141,841 Other Retail Stores 65,540 68,307 72,844 68,605 71,709 76,991 73,048 59,736 78,615 92,251 All Other Outlets 177,631 354,140 400,130 394,144 433,870 611,789 678,554 596,536 769,285 830,982 Total 374,179 $ 562,234 $ 630,400 $ 630,460 $ 684,718 $ 871,106 $ 922,344 $ 814,903 $ 1,028,477 $ 1,116,630 $ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL CompaniesNote: 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 2023 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 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%2023 4,217,100,516 559,836,160 206,591,370 4,983,528,046 2,155,738,473 2,827,789,573 0.11638 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 San Bernardino Total Total
Fiscal Basic Debt Colton Redlands Community Tax Direct
Year Levy Service Unified Unified College Water Rate Rate 1 2014 1.0000 0.00000 0.11870 0.06290 0.04190 0.16250 1.38600 0.11793 2015 1.0000 0.00000 0.09730 0.05940 0.03930 0.16250 1.35850 0.11792 2016 1.0000 0.00000 0.11690 0.05670 0.04030 0.16250 1.37640 0.11792 2017 1.0000 0.00000 0.14540 0.05240 0.03500 0.16250 1.39530 0.11792 2018 1.0000 0.00000 0.09390 0.04940 0.03760 0.15250 1.33340 0.11792 2019 1.0000 0.00000 0.11160 0.03240 0.04070 0.15250 1.33720 0.11805 2020 1.0000 0.00000 0.10160 0.03390 0.05620 0.14250 1.33420 0.11805 2021 1.0000 0.00000 0.10310 0.03600 0.06510 0.14250 1.34670 0.11804 2022 1.0000 0.00000 0.10810 0.06620 0.05340 0.13000 1.35770 0.11599 2023 1.0000 0.00000 0.06560 0.02790 0.04500 0.13000 1.26850 0.11638 Sources: HdL Coren & Cone, San Bernardino County Assessor combined tax rolls.
Note: In 1978 California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1. shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, prope are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 1 Total Direct Rate is the weighted average of all individual direct rates.
Schools
CITY OF LOMA LINDA
Principal Property Taxpayers
As of June 30, 2023
-164-
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Taxpayer Valuation Rank Assessed Value Valuation Rank Assessed Value Wi Loma Linda LLC 141,948,400 $ 1 5.02%
Loma Linda University/Medical Center1 63,220,765 2 2.24% 34,545,680 3 2.14% Timber Hills Associates LP 60,369,642 3 2.13% 41,916,286 1 2.60% Sierra Vista Apartments SPE 37,873,345 4 1.34%
Loma Linda Heritage Associates 31,225,645 5 1.10% 26,909,307 4 1.67% Oasis Townhomes LLC 28,960,429 6 1.02% 24,957,211 5 1.55% WOHL Westport LLC 21,926,345 7 0.78%
Chancellor Properties LLC2 8 0.77% 12,000,000 21,633,855 7 0.74% DRC Industrial CBC 20,337,622 9 0.72%
Spreen Investment Company 1 LLC 16,890,138 10 0.60%
Blossom Grove California LLC
General American Life Insurance Company 39,062,962 2 2.42% Granite Lakes Apartments LP 20,000,000 6 1.24%
Spreen Investment Company II 10,529,785 9 0.65%
Monterey Pines LLC 8 0.65% 10,544,440
Loma of California Health Center LLC 10,165,764 10 0.63% $ 15.7200% 230,631,435 444,386,186 $ 14.29%
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 2023 2014
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 1 Amount of Levy 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%
2023 1,434,030 1,403,586 97.9% - 1,403,586 97.9%
Source: San Bernardino County Auditor-Controller Property Tax Division Note:
1 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-
General Total Percentage
Fiscal Lease Subscription Revenue Obligation Lease Subscription Water Primary of Personal Per Year Liability Liability Bonds Bonds Liability Liability Bonds Government Income Capita1 2014 242,515 $ - $ 1,879,100 $ 10,000 - $ - $ 5,885,000 $ 8,016,615 $ 1.10% 3392015 211,922 - 2,052 10,000 - - 5,490,000 5,713,974 0.80% 2412016 180,072 - - 10,000 - - 5,075,000 5,265,072 0.71% 2142017 146,907 - - 10,000 - - 5,669,428 5,826,335 0.81% 2382018 112,375 - - 10,000 - - 5,421,588 5,543,963 0.80% 2322019 76,420 - - 10,000 - - 5,203,748 5,290,168 0.76% 2172020 38,984 - - 10,000 - - 4,980,908 5,029,892 1% 2052021 - - - 10,000 - - 4,753,069 4,763,069 1% 1912022 82,500 - - 10,000 67,447 - 4,520,229 4,680,176 1% 179 2023 80,393 19,444 - 10,000 65,580 20,043 4,282,390 4,477,850 1% 177 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
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
2014 10,000 $ - $ 10,000 $ 0.000% 0.42 $
2015 10,000 - 10,000 0.000% 0.42
2016 10,000 - 10,000 0.000% 0.41
2017 10,000 - 10,000 0.000% 0.41
2018 10,000 - 10,000 0.000% 0.42
2019 10,000 - 10,000 0.000% 0.41
2020 10,000 - 10,000 0.000% 0.41
2021 10,000 - 10,000 0.000% 0.41
2022 10,000 - 10,000 0.000% 0.39
2023 10,000 - 10,000 0.000% 0.40
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, 2023
-168-
2022-2023 Assessed Valuation 2,827,789,573 $
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/23 Applicable (1) Debt 6/30/23 San Bernardino Valley Joint Community College District 708,007,978 $ 3.059% 21,657,964 $ Colton Joint Unified School District 181,552,661 0.710% 1,289,024 Colton Joint Unified School District Community Facilities District No.2 3,165,000 26.425% 836,351 Redlands Unified School District 54,383,512 12.713% 6,913,776 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 30,697,115 $ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Bernardino County General Fund Obligations 160,860,000 $ 0.973% 1,565,168 $ San Bernardino Country Pension Obligations 62,960,000 0.973% 612,601 San Bernardino County Flood Control District General Fund Obligations 41,065,000 0.973% 399,562 Colton Joint Unified School District Certificates of Participation 0 0.000% 0 Redlands Unified School District Certificates of Participation 0 0.000% 0 City of Loma Linda Lease Liability 0 0.000% 80,393
City of Loma Linda Subscription Liability 0 0.000% 19,444 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 2,677,168 $ OVERLAPPING TAX INCREMENT DEBT: 235,765,000 $ 3.737-100% 28,669,595 $ TOTAL DIRECT DEBT 99,837
TOTAL OVERLAPPING OBLIGATION DEBT 61,944,041
COMBINED TOTAL DEBT $ 62,043,878
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Debt (excluding tax increment)…….……………… 1.09% Total Direct Debt ($0)…………….……………………………………… 0.00%
Combined Total Debt (excluding tax increment)……………………… 2.19% Ratios to Redevelopment Incremental Valuation ($1,667,161,937):
Total Overlapping Tax Increment Debt………………………………… 1.72% (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. (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.
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-
2014 2015 2016 2017 2018
Debt Limit 61,135,079 $ 65,100,609 $ 67,899,250 $ 71,833,863 $ 79,766,211 $ Total net debt applicable to limit 87,512,815 84,255,561 80,940,806 79,042,798 76,408,050 Legal debt margin (26,377,736) $ (19,154,952) $ (13,041,556) $ (7,208,935) $ 3,358,161 $ Total net debt applicable to the limit
as a percentage of debt limit 143.15% 129.42% 119.21% 110.04% 95.79% 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-
2019 2020 2021 2022 2023
$ 88,334,356 83,537,933 $ 91,585,287 $ 99,308,410 $ 106,597,250 $ 75,904,018 70,956,788 71,068,061 67,167,503 61,944,041
$ 12,430,338 12,581,145 $ 20,517,226 $ 32,140,907 $ 44,653,209
84.94% 85.93% 77.60% 67.64% 58.11%
Net Assessed Value 2,827,789,573
Plus Exempt Property 14,803,751
Total Assessed Value 2,842,593,324 $
Debt Limit: 3.75 percent of Total
Assessed Value 106,597,250
Less: Debt applicable to Limitation:
Total net debt applicable to limitation 62,043,878
Legal Debt Margin 44,553,372 $
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 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%
2023 8,241,665 6,232,101 ** 2,009,564 375,162 536%
Note:
*Bond was refinanced in FY 2017, no principal payment due until 7/1/2017 Source: City of Loma Linda Finance Department
** Excludes GASB No. 68 actuarial pension non-cash adjustment 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 1 Income 2 Income 3 Enrollment 4 Enrollment 5 Enrollment 5 Enrollment 5 (percentage) 6 2014 23,614 728,563,000 30,853 $ 1,242 666 550 21,233 5.02015 23,751 717,247,000 30,406 1,255 681 538 21,326 4.62016 24,649 738,747,000 29,970 1,289 658 561 21,264 3.72017 24,528 721,317,000 29,407 1,246 691 551 21,395 3.22018 23,946 690,762,000 28,162 1,247 665 561 21,261 2.92019 24,335 698,833,000 28,717 1,246 675 579 21,240 2.42020 24,535 680,521,000 27,736 1,239 684 550 21,062 2.42021 24,895 684,049,000 27,477 1,272 636 581 20,352 7.12022 25,349 740,821,000 29,224 1,294 612 560 20,162 8.02023 25,228 838,550,000 33,238 1,309 624 587 20,019 2.9 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 population4 Loma Linda Academy's registrar's office (except in 2011 the City used www.trulia.com)5 California Department of Education6 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 EmploymentLoma Linda University Medical Center 9,129 1 42.89% 7,369 1 41.89%Jerry L. Pettis VA Med. Ctr. 3,914 2 18.39% 2,899 3 16.48%Loma Linda University 2,709 3 12.73% 3,847 2 21.87%University Health Care 1,418 4 6.66% 1,540 4 8.75% Total 17,170 80.67% 15,655 88.99%
Veterans Affairs Personnel DepartmentTotal number of jobs within City limits provided by Employment Development Department,Labor Market Information DivisionSource: City of Loma Linda Finance Department 2023 2014
CITY OF LOMA LINDA
Full-Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
-174-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 30.5 31.5 32.5 33 34.5 35.5 34.5 36.5 39 38 Public safety
* Sheriff
Officers 12.77 12.77 15.26 19.02 19.36 19.36 19.36 19.36 20.74 20.74 Civilians 5.03 5.03 5.81 7.1 7.1 7.1 7.2 7.2 7.6 7.64
Fire
Firefighters and officers 23 23 26 26 24 28 28 28 27 27 Civilians 5 5 5 5 44 3 3 5 5
Highways and streets
Maintenance 4 4 4 4 3 6 5 5 3 3
LL Connected Communities 3.5 2.5 2 2 2 2 2 2 2 1
Sewer 2 2 2 2 2 2 2 2 2 2
Water 12 11 11 11 11 11 11 11 9 11
Total: 97.8 96.8 103.57 109.12 106.96 115 112.1 114.06 115.34 115.38 * 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-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Sheriff
Calls for service 21,673 22,759 42,044 27,588 26,662 26,580 28,845 29,274 26,768 26,924 Citations issued by Deputies 5,988 1,034 1,161 2,373 2,068 1,061 1,548 760 1,257 N/A Physical arrests 730 669 828 863 729 878 638 641 536 526 Fire
Total number of calls answered 3,797 4,005 4,404 5,343 4,996 4,654 4,371 4,576 5,276 5,336 % of calls for medical aid 65 64 57 54 60 60 61 62 58 62.6 Highways and streets
Street resurfacing (miles) 2.0 1.2 3.7 1.6 6.1 3.7 4.9 2.5 9.0 6.6 Potholes repaired 7 18 15 21 59 19 30 25 19 50
Water
New connections 1 - 8 5 23 43 52 90 47 9
Water main breaks 21 8 14 10 19 6 23 6 9 23
Average daily consumption 13.75 13.00 11.10 11.18 12.70 11.81 11.87 13.78 13.24 11.95 (acre foot)
Wastewater
Average daily sewage treatment 4.0 4.0 3.5 3.0 4.0 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.
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-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public safety
* Sheriff
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 11.77 11.77 11.77 11.00 11.00 11.00 11.00 11.00 12.00 12 Fire Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 16 15 15 17 17 15 16 18 17 18
Highways and streets
Streets (miles) 64.64 64.64 64.64 65.00 65.70 66.23 68.86 70.71 70.10 70.1 Streetlights 1,472 1,483 1,024 1,532 1,551 1,607 1,758 1,821 1,833 1,833 Culture and recreation
Parks 13 13 13 13 13 13 13 13 13 15
Park acreage 90.33 90.33 90.3 90.33 90.33 90.33 90.33 90.33 90.33 106.42 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 77.20 111.45 112.98 112.98 118.37 92.74 92.74 91.67 Fire hydrants 997 917 939 950 991 995 1,002 1,048 1,080 1,154 Maximum daily capacity 12,220 12,220 13,800 13,200 13,320 13,320 13,200 13,200 12,955 9,633 (gallons per minute)
Sewer
Sanitary sewers (miles) 67.50 67.50 61.30 65.00 66.43 66.43 70.33 70.33 74.80 72.3 Storm sewers (miles)** 15.45 15.61 15.61 15.61 16.47 17.11 17.16 17.16 17.90 18.0 * Sheriff services are contracted through the County of San Bernardino Sheriff's Dept.
Sources: City of Loma Linda Public Works and Fire Departments, San Bernardino County Sheriff's Department
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Hulda Crooks Park Walking Track
Heritage Park
BuƩerŇy Sculpture along Anderson St.
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
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, 2023. 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, 2023. 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
December 20, 2023
-3-
CITY OF LOMA LINDA
APPROPRIATIONS LIMIT WORKSHEET
2022 – 2023
Change in Per Capita Cost of Living 7.55%
Change in City Population 0.18%
Change in Per Capita Cost of Living converted to a ratio 1.0755 Change in City Population converted to a ratio 1.0018
Calculation of factor for ratio of change (1.0755 x 1.0018) 1.0774 2021-2022 Limit 55,858,190 $
2022-2023 Limit ($55,858,190 x 1.0774) 60,183,619 $
735 E. Carnegie Dr. Suite I 00
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Terry P Shea. CPA
Scott W Manno, CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A Weleb,r. CPA. MBA. CGMA
Jenny W Liu, CPA. MST
Gardenya Duran, CPA. CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle, CPA. MST (Partner Emeritus)
MANAGERS/ STAFF
Seong-Hyea Lee, CPA. MBA
Evelyn Mo, entin-Barcena, CPA
Veronica Hernandez, CPA
Laura Arvizu, CPA
John Maldonado, CPA. MSA
Julia Rodnguez Fuentes. CPA. MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
MEMBERS
Amencan lnslltute of
Certified Public Accountants
PCPS Tlie A/CPA All,ance
for CPA Fmns
Governmental Aud,1
Qua/11y Cenre,
California Society of
Cert1f1ed Public Accountants
dil5b Proud Member of 9 AlliottGlobalAlliance~
mm
IIIIJ
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
December 20, 2023
To the Honorable City Council
City of Loma Linda, California
We have audited the financial statements of the City of Loma Linda (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated December 20, 2023. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 28, 2023, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
Honorable City Council
City of Loma Linda
-2-
Significant Risks Identified
We have identified the possibility of the following significant risks:
Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.
Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.
These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City adopted GASB Statement No. 96, Subscription-Based Information Technology Arrangements, during 2023. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate of depreciation expense is based on the useful lives of acquired assets.
We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.
Honorable City Council
City of Loma Linda
-3-
Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole.
Management’s estimate of leases receivable, deferred inflows of resources related to leases, and lease amortization is based on present value calculations using certain terms and assumptions in the lease agreements in accordance with generally accepted accounting principles. Management’s estimate of lease liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the lease agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the lease related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of subscription liabilities and subscription amortization is based on present value calculations using certain terms and assumptions in the subscription agreements in accordance with generally accepted accounting principles. Management’s estimate of subscription liabilities, right-to-use assets, and asset amortization is based on present value calculations using certain terms and assumptions in the subscription agreements and estimated useful lives of assets in accordance with generally accepted accounting principles. We evaluated the key factors and assumptions used to develop the subscription related estimates in determining that it is reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
The disclosure of accumulated depreciation in the basic financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.
The disclosure of the other post-employment benefits (OPEB) and related deferred inflows and outflows of resources in the basic financial statements identifies the annual OPEB cost and the funded status of the actuarial accrued liability. The information disclosed is based on actuarial assumptions which could differ from actual costs.
The disclosure of leases receivable, deferred inflows of resources related to leases, lease amortization, leases liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the lease agreements which could differ from actual amounts.
The disclosure of subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the subscription agreements which could differ from actual amounts.
The financial statement disclosures are neutral, consistent, and clear.
Honorable City Council
City of Loma Linda
-4-
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. No misstatements were identified during our audit.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 20, 2023.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.
Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the Plan’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios, the Schedule of Changes in the Net OPEB Liability and Related Ratios, and the Schedule of OPEB Plan Contributions which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
Honorable City Council
City of Loma Linda
-5-
We were engaged to report on the combining and individual non-major fund financial statements and the budgetary comparison schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.
This report is intended solely for the information and use of the Honorable City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
San Bernardino, California.
December 20, 2023
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Demands Registers - December 26, 2023 and January 9, 2024 [Finance] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3A
To
City Council
From
Sonia Fabela, Finance Director
Attachments
CC DR 12.26.23.pdf
CC DR 01.09.24.pdf
Approved/Continued/Denied by City Council
Date:
RECOMMENDATION:
It is recommended that the City Council approve the attached list of demands for payment.
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Approval of Minutes 12-12-2023 [City Clerk]
Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3B
To
City Council
From
Lynette Arreola, City Clerk
Attachments
12-12-23 Draft Mins. AgendaLink.pdf
Approval of Minutes for Regular City Council held on December 12, 2023.
1. Call to Order
1A. Call to Order- 7:03 PM
1B. Roll Call- 7:04 PM
Staff Present:
1C. Closed Session/Workshop - NoneNone.
1D. Invocation and Pledge of Allegiance- 7:04 PM
** The following document is a draft of the minutes and not the official approved minutes ** Minutes for the Regular City Council
25541 Barton Road, Loma Linda, CA 92354
December 12, 2023, 7:03 PM - December 12, 2023, 8:18 PM Roll Call: (The following members were in attendance)
Ronald Dailey, Mayor pro tempore
Phillip Dupper, Mayor
Bhavin Jindal, Councilmember
John Lenart, Councilmember
Rhodes Rigsby, Councilmember
T. Jarb Thaipejr, City Manager
Diane Robbins, City Attorney
Lynette Arreola, City Clerk
Sonia Fabela, Finance Director
Dan Harker, Fire Chief
Lorena Matarrita, Community Development Director
Lt. Kaysie Smith, SB County Sheriff's Department
Shawn MacGavin, Information Systems Analyst
Councilman Rigsby led the Invocation and Pledge of Allegiance. 1E. Items to be Added or Deleted- 7:05 PM
No items were added or deleted.
1F. Oral Reports/Public Participation - Non-Agenda Items (Each Speaker limited to 3 minutes.
Pursuant to the Brown Act, no action or discussion can be taken by City Council)- 7:05 PM Dick Wiley thanked the City Council for their efforts throughout 2023. He thanked the Sheriff and Fire Departments for their dedicated services to the City. He appreciated the Fire Department Staff for organizing the Parade of Lights. He concluded by wishing the City Council and staff a happy and safe holiday season.
Mayor Dupper thanked Mr. Wiley for his support and participation with the City.
Touchar Ozo noted that he has been attending City Council meetings to voice his disappointment regarding the neglect of the Senior Center. He has expressed his willingness to volunteer and his suggestion to form an advisory committee. However, he sensed a lack of enthusiasm from the City; that the City currently has shown no interest in establishing an advisory committee since the prior Senior Board had met its goals; and that the City requested additional time to expand on the senior programs before forming a committee. He stated that, in December, the line dancing class canceled a few classes and that the distribution of bus passes was not done. In the last month, he had not seen an expansion of programs. He was disgusted.
He presented a petition signed by over 60 citizens requesting more resources, activities, and services for seniors, veterans, and disabled individuals; requesting an advisory committee for the Senior Center; and requesting to promote the City's designation as a Blue Zone city. 1G. Conflict of Interest Disclosure- 7:15 PM
There were no foreseen conflicts of interest.
2. Scheduled and Related Items
2A. Proclamation - City of Collegedale, Tennessee- 7:15 PM Mayor Dupper read the proclamation for Collegedale, Tennessee, and mentioned that he intends to present the proclamation to Collegedale during his visit later in the month. 2B. Mission Elementary School Presentation [Chamber of Commerce]- 7:19 PM This item was continued to a future meeting.
2C. Water and Waste Water Rate Study Presentation by Tuckfield and Associates [Clayton Tuckfield]- 7:19 PM
City Manager Thaipejr introduced Mr. Clayton Tuckfield who has prepared the City's Water and Wastewater Rate Study for about 20 years and prepares this report every five years.
Clayton Tuckfield from Tuckfield and Associates presented the findings of the Water and Wastewater Rate Study, noting the study involved projecting a five-year financial plan based on historical data, expenses, and budgets, as required by legislation. However, they extend the projection to ten years to provide a more comprehensive view. Key tasks included conducting a cost-of-service analysis and designing water and wastewater rates. According to the study, the results indicate a 4.3% annual revenue increase for the next five years. Diagrams were presented to illustrate expenses, revenues, and the proposed percentage increase, demonstrating how the city would meet its financial obligations, as well as a diagram displaying the cash and investments of the water funds with the implementation of rate increases. He discussed the actual proposed water rate increase amounts, pointing out that the City will send notifications citywide of the 5- year rate increases per Prop 218 requirements.
In regards to the wastewater system rates, he stated that no rate increases are necessary. The existing wastewater revenue is projected to be sufficient for the next five years, along with satisfactory cash flow. However, he acknowledged there will be potential rate increases in treatment expenses from San Bernardino, but it would be a pass-through cost. Despite the appearance of an increase, it would be from treatment services. Mr. Tuckfield noted that in comparison to other communities, Loma Linda's water and wastewater rates are positioned in the middle. He concluded with a proposed timeline and required steps to be taken to implement the new rates by May 1, 2024.
City Manager Thaipejr stated that the City would work to pay off wastewater debt from the cash flow.
Councilman Jindal asked if there is a buffer collected for infrastructure repairs. City Manager Thaipejr explained that the City would borrow from special projects and water reserve funds should there be a need for infrastructure repairs.
Councilman Jindal asked why the expenses increase more than inflation in reference to one of the diagrams. Mr. Tuckfield explained that they are borrowing funds to pay for the 1.6 mg reservoir as well as the capital spending program.
3. Consent Calendar
Mayor pro tempore Dailey had a question on Agenda Item 3f, Flock Cameras, relating to the cost of the cameras and why the city did not choose a local vendor.
In response, City Manager Thaipejr clarified that the Flock Camera company is one of two companies providing the required service and equipment, and they offer at a lower cost. He noted that the funding comes from the Citizens Option for Public Safety (COPS) grant. He went on to outline the locations for the additional cameras, noting the City would have a total of 26 cameras. He mentioned that several neighboring cities use the same camera system, which has proven beneficial in aiding the Sheriff's Department in solving various criminal activities. Discussion ensued on the benefits of this camera system.
Milford Harrison stated that he appreciated the City installing these cameras in the City because he was aware of how it assisted in solving criminal activity. He stated that it also assisted the Sheriff's Department in locating his stolen vehicle. He thanked the City for installing holiday lights along Barton Road.
Mayor Dupper stated that the City is one of the first cities to install the cameras. He commended Lt.
Kaysie Smith for initiating this program. He noted that the City leases the equipment. The company maintains the equipment.
Lt. Kaysie Smith stated that the Flock cameras are a much better technology and, by approving the agreement, the City is locking in this rate for the next five years.
Mayor pro tempore Dailey had another question on Agenda Item 3g, Solar Walkway Lights, asked where they are being installed and why they chose a vendor out of state.
In response, City Manager Thaipejr stated that they were purchasing the equipment directly from the manufacturer, which was through a bid process. He noted that the lights are being installed along the Edison Easement Trail between Mission St. and Van Leuven St.
City Manager Thaipejr stated that the City is gradually working on supplementing street lights with solar street lighting. He noted that some street light poles are owned and maintained by Southern California Edison. The City no control over those poles.
Motion by Ronald Dailey, seconded by Bhavin Jindal, and passing by a vote of 5-0-0-0 To Approve
the Consent Calendar as submitted.
3A. Demands Registers for November 28, and December 12, 2023 [Finance]- Approved the Demands Registers dated:
3B. Approval of Minutes 11-15-2023-
Approved the minutes of November 15, 2023, as submitted. 3C. Treasurer's Report - November 2023 [Finance]-
Accepted the Treasurer's Report for November 2023 for filing. 3D. Fire Department's Activity Report - November 2023 [Fire]- Accepted the Fire Department's Activity Report for November 2023 for filing. 3E. Authorization to apply for the Emergency Management Performance Grant (EMPG) [Fire]- Authorized the Fire Department to apply for and appropriate the revenue from the 2023 Emergency Management Performance Grant (EMPG) funds into account no. 0010000-49334; the City Manager to execute the related documents; and the City Manager to accept additional grant funding should it become available.
3F. Approve Appropriation and Award Contract for 9 Additional LPR Cameras [Public Works]- Approved a supplemental appropriation of $33,200 from the Citizens Option for Public Safety (COPS) Grant fund balance into the COPS contractual agreement account no. 1355430-51830 and awarded a contract to Flock Group, Inc. for the installation and monitoring of nine (9) additional LPR cameras at various locations.
3G. Award Contract to Southcoast Lighting to Purchase Twelve Solar Walkway Lights [Public Works]-
Awarded contract to Southcoast Lighting of Norman, OK, for $16,616.80 to purchase twelve (12) solar-powered bollard-style walkway lights.
November 28, 2023, with a commercial demand totaling $3,418,012.40 and a payroll demand dated November 22, 2023, totaling 361,586.60; and
December 12, 2023, with a commercial demand totaling $928,148.68, and two payroll demands dated December 7, 2023, totaling $370,517.87.
3H. Approve Purchase of 96 Domestic Water Meters from HydroPro Solutions, Inc. [Public Works]-
Awarded contract to HydroPro Solutions, Inc., of Ontario, CA, for $25,435.90, for the purchase of 96 Allegro 4G domestic water meters.
3I. Change Order for the Audio/Visual Equipment in the Council Chambers [Information Systems]-
Approved a change order to the contract with Western Audio Visual & Security for $18,800.00 to upgrade functions on monitors at the dias and add accessible network connections and switches. 3J. Approval of Agreement with Colantuono, Highsmith, and Whatley for Legal Services [City Attorney]-
Authorized the City Attorney to enter into an agreement with the law firm of Colantuono, Highsmith & Whatley (CHW) for legal services primarily in connection with land use issues on an as-needed basis.
3K. Council Bill #R-2023-40 - Approving a Loan from Special Projects Construction Fund to Water Acquisition Fund [Finance]-
Adopted Council Bill #R-2023-40 a Resolution approving a $4,350,000.00 loan from the City's Special Projects Construction Fund to the Water Acquisition Fund as well as supplemental appropriations into the following accounts: Infrastructure Account for $2,008,800.00; General Fund Overhead Account for $387,000.00; and Interest Expense Account for $59,200.00 to ensure available funds for the construction completion of the 1.6MG Reservoir.
RESOLUTION NO. 3204
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA, CALIFORNIA, APPROVING A
LOAN FROM THE SPECIAL PROJECTS CONSTRUCTION FUND TO THE WATER ACQUISITION FUND
4. Old Business
5. New Business
5A. Appoint Three Historic Commission Members Whose Terms Expired - 7:59 PM Community Development Director Mataritta presented the report, explaining that three member terms have expired; and that the City received five (5) applications, three of which were the three incumbents. She explained that this past year the Commission projects have been slower than usual; however, she anticipates the Commission's schedule will be busier in the coming year with upcoming projects. She stated that the three incumbents have made a positive contribution to the Commission, are passionate about the heritage of the community, and maintain consistent attendance.
Discussion ensued about the Commission membership number, which is established by the Ordinance; and about the member applications received. It was noted that the current Commission members are dedicated and have collaborated effectively with City staff and other Commission members.
Dick Wiley suggested adding an alternate who can fill in if there is a need for a quorum.
Motion by Bhavin Jindal, seconded by Ronald Dailey, and passing by a vote of 5-0-0-0 to Appoint
Wiliam Coffman, Joseph Frink, and Michael Stewart to the Historic Commission.
6. Reports
6A. Reports of Council Members- 8:15 PM
Councilman Jindal mentioned that SBCTA has publicized that Brightline received Federal funding for a high-speed railroad connecting Rancho Cucamonga to Las Vegas. He noted that such a development would be good for the local economy.
Councilman Lenart stated that he has received inquiries regarding the water tower in the hills, particularly about flooding. City Manager Thaipejr explained that following the flood of 2010, the tank was designed to ensure water drainage on the south side. This drainage is directed towards a storm drain, intercepting the flow to the detention basin. 6B. Reports Of Officers- 8:18 PM
7. Adjournment
The meeting adjourned at 8:18 pm.
City of Loma Linda
Regular City Council Staff Report
Prepared By: Sonia Fabela
Treasurer's Report - December 2023 [Finance]
Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3C
To
City Council
From
Sonia Fabela, Finance Director
Via
T Jarb Thaipejr, City Manager
Attachments
Dec 23 TREAS REPORT.pdf
Accepted for filing by City Council
Date:
RECOMMENDATION:
It is recommended that the City Council receive the report for filing.
DEMAND DEPOSIT ACCOUNTS
CITY - BANK OF AMERICA - MAIN CHECKING ACCOUNT $ 3,938,870.99 Outstanding Checks as of month-end (3,072,115.83)
CITY - MAIN CHECKING ACCOUNT AVAILABLE BALANCE 866,755.16 $ BANK OF AMERICA - PAYROLL $ 19,742.67
HOUSING AUTHORITY - BANK OF AMERICA - CHECKING ACCOUNT 212,096.05 Outstanding Checks as of month-end (1,386.37)
HOUSING AUTHORITY - CHECKING ACCOUNT AVAILABLE BALANCE 210,709.68 $ SUCCESSOR AGENCY - BANK OF AMERICA - CHECKING ACCOUNT 1,162,388.79 Outstanding Checks as of month-end -
SUCCESSOR AGENCY - CHECKING ACCOUNT AVAILABLE BALANCE 1,162,388.79 $ DEMAND DEPOSIT ACCOUNTS - TOTAL $ 2,259,596.30
YIELD
LOCAL AGENCY INVESTMENT FUND (LAIF)
CITY 3.843% * 49,453,362.64 $
CITY - Former RDA Bond Proceeds 3.843% * 423,696.57
CITY -Total 49,877,059.21
SUCCESSOR RDA 3.843% * 1,486,483.25
HOUSING AUTHORITY 3.843% * 1,350,278.27
INVESTMENTS TOTALS $ 52,713,820.73
OTHER CASH
IMPREST ACCOUNT $ 500.00
CASH ON HAND 1,350.00
OTHER CASH TOTAL $ 1,850.00
CASH AND INVESTMENTS - GRAND TOTAL 54,975,267.03
PREVIOUS MONTH 51,232,996.14
CHANGE +/(-) $ 3,742,270.89
All investments are in accordance with the City Investment Policy, and as such, sufficient funds are available to meet the cash flow requirements of Loma Linda, including the next thirty days' obligations.
Treasurer
*LAIF Yield interest rate shown is for November 2023 as the December 2023 Rate has not been released as of 1/3/2024 Dec 2023
CITY OF LOMA LINDA
COMPOSITION OF CASH
INVESTMENTS
-
10,000,000.00 20,000,000.00 30,000,000.00 40,000,000.00 50,000,000.00 60,000,000.00 70,000,000.00 12/22 1/23 2/23 3/23 4/23 5/23 6/23 7/23 8/23 9/23 10/23 11/23 12/23
CITY OF LOMA LINDA
MONTHLY TREASURER'S REPORT 12/22-12/23
CITY, SUCCESSOR RDA & HA - TOTAL CASH AVAILABLE CITY- FORMER RDA BOND PROCEEDS BASELINE City of Loma Linda
Regular City Council Staff Report
Prepared By: Nataly Alvizar
Fire Department's Activity Report - December 2023 [Fire] Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3D
To
City Council
From
Nataly Alvizar, Executive Aide
Via
Tom Ingalls, Fire Marshal
Attachments
December 2023 Fire Department Activity Report
Accepted for filing by City Council
Date:
RECOMMENDATION:
It is recommended that the City Council receive the report for filing. 1 of 1
SUBJECT: December 2023 Fire Department Activity Report
Operations Division:
The Fire Department’s Operations Division responded to 475 incidents in December 2023. Of the 475 incidents, 32 calls were given in Mutual/Automatic Aid. The alarm types are broken down as follows:
Fire & Rescue Month YTD
Medical Aid (MA) 311 65.5% 3469 68.0%
Traffic Collision (TC) 13 2.7% 149 2.9%
MA + TC 324 68.2% 3618 71.0%
Hazardous Conditions 1 2.40% 23 0.70%
Hazardous Material 1 0.40% 13 0.40%
Public Assistance 35 6.90% 191 5.50%
Rescue 1 0.90% 22 0.60%
Structure Fire 5 2.10% 36 1.00%
Cooking 1 0.00% 2 0.10%
Vegetation Fire 0 0.40% 24 0.70%
Vehicle Fire 2 0.00% 4 0.10%
Refuse Fire 8 1.10% 48 1.40%
All Fires 16 3.60% 114 3.30%
Good Intent/Dispatched
& Cancelled Enroute 47 9.9% 532 10.4%
Fire Alarm Activation* 18 3.8% 176 3.5%
*Note: Includes accidental activation, burnt food, system malfunction, malicious, etc.
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lorena Matarrita
Council Bill #R-2024-01 - Resolution of a Purchase and Sale Agreement [Administration/Community Development]
Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3E
To
City Council
From
Lorena Matarrita, Community Development Director
Via
T Jarb Thaipejr, City Manager
Approved/Continued/Denied
by City Council
Date:
RECOMMENDATION
Adopt City Council Bill #R-2024-01 approving the Resolution authorizing the execution of a Purchase and Sale Agreement as to that certain property previously designated as surplus with Anlai Jiao and Kelsey Bullock.
BACKGROUND
The recommended action concerns that certain real property owned by the City of Loma Linda (the “City”) identified as APN 0284-202-47- 0000 (Parcel A of Lot Line Adjustment 12-02) consisting of approximately 1.318 acres (approximately 57,412 square feet) located on the south side of Allen Way, west of Mountain View Avenue (near Hulda Crooks Park) (the “Property”), as more particularly described in Exhibit “A” and depicted in Exhibit “B” to the attached Resolution (the “Property”).
During 1995, the City purchased approximately 60 acres of land, which included a grove house known as the Allen Break Estate. During 2010, the City Council declared a portion of the estate surplus property and authorized disposal. The remaining parcel, approximately 1.4 acres, is a gently sloping orange grove next to Allen Way and encompasses the end of a splinter fault from the San Jacinto fault zone. At that time, it was determined to be impractical to extend Hulda Crooks Park into the Property due to the topography and location. Further, the Property was not acquired or used for public park purposes. Additionally, a lot line adjustment was recorded during 2021 to allow for the construction of a garage, reducing the parcel in question to 1.318 acres, now known as Parcel A of Lot Line Adjustment 12-02.
Consistent with the California Surplus Land Act, Government Code (the “GC”) §§ 54220-54234 (the “Act” or “SLA”), as amended by AB 1486 (Chapter 664, Statutes of 2019; “AB 1486”) and Guidelines promulgated thereunder by the California Department of Housing and Community Development (the “HCD”) dated as of April 2021 (the “Guidelines”), by Resolution No. 3185 on June 27, 2023, the City Council designated the Property as surplus land pursuant to the Act. On June 28, 2023, a Notice of Availability (the “NOA”) was issued to local agencies and housing sponsors as required by the Act, which allowed any interested party to submit a written statement of interest in the Property. The NOA was not intended to be a request for proposals. Further and in response to their requests, the NOA was also provided to two residents from the neighborhood of the Property. As specified within the NOA, to be eligible for further consideration, an interested party had to submit a statement of interest by 5:00 PM Monday, August 28, 2023 (the “NOA Deadline”). By the NOA Deadline, the City only received statements of interest from the two residents from the neighborhood of the Property (the “Interested Parties”).
On September 6, 2023, the Interested Parties were issued identical requests for proposals (“RFP”) letters. By the September 22, 2023 deadline specified within the RFP, the Interested Parties submitted their proposals. Thereafter, both proposals were evaluated and compared. On October 5, 2023, the Interested Parties were requested to submit or confirm by October 10, 2023, their last and best Attachments
Attachment A - Resolution Approving PSA Surplus Property APN 0284-202-47.pdf Attachment B - Purchase and Sale Agreement Surplus Property APN 0284-202-47.pdf purchase offer price for the Property. Based on their proposal and purchase price offer, it has been determined that the offer submitted by Anlai Jiao and Kelsey Bullock, husband, and wife (collectively “Buyer”) in the amount of One Hundred Two Thousand Dollars ($102,000.00) (the “Purchase Price”) was the higher of the two offers.
ANALYSIS
Consistent with the requirements of the SLA and the Guidelines, on October 30, 2023, City staff filed with HCD its completion report with respect to the SLA in connection with the Property. Thereafter, it its letter dated November 30, 2023, HCD informed the City that it had successfully completed compliance with the SLA and authorized the City’s sale of the Property.
Based on the above, City staff has caused to be prepared a draft Purchase and Sale Agreement (PSA) by and between the City of Loma Linda (as “Seller”) and Buyer which provides for the sale of the Property by City to Buyer on the terms and conditions set forth in the Agreement. The Buyer has reviewed and accepted the form of the PSA. In addition, under the Act, if 10 or more housing units are developed on the Property, at least 15% of the units must be restricted for use as affordable housing. The Agreement includes that requirement, which has been fully disclosed to Buyer. Notwithstanding, the Buyer has not indicated any plans for the development of the Property.
ENVIRONMENTAL
Pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387), approval of the attached Resolution is exempt from CEQA because the actions described therein will not result in a direct or indirect physical change in the environment and the actions described therein are not a “Project”, as defined within§ 15378 of the CEQA Guidelines.
FISCAL IMPACT
Upon close of escrow, the net sale price (i.e., the PSA price less certain title and escrow charges applicable to the City, as described in the PSA) will become an asset of the City’s General Fund.
Council Bill No. R-2024-01
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA,
CALIFORNIA, AUTHORIZING THE EXECUTION OF A PURCHASE AND
SALE AGREEMENT AS TO CERTAIN PROPERTY PREVIOUSLY
DESIGNATED AS SURPLUS WITH ANLAI JIAO AND KELSEY BULLOCK WHEREAS, this Resolution concerns that certain real property owned by the City of Loma Linda (the “City”) identified as APN 0284-202-47-0000 (Parcel A of Lot Line Adjustment 12-02) consisting of approximately 1.318 acres (approximately 57,412 square feet) located on the south side of Allen Way, west of Mountain View Avenue (near Hulda Crooks Park), as more particularly described in Exhibit “A” and depicted in Exhibit “B” to this Resolution (the “Property”); and WHEREAS, during 1995, the City purchased approximately 60 acres of land, which included a grove house known as the Allen Break Estate. During 2010, the City Council declared a portion of the estate surplus property and authorized disposal. The remaining parcel, approximately 1.4 acres, is a gently sloping orange grove next to Allen Way and encompasses the end of a splinter fault from the San Jacinto fault zone. At that time, it was determined to be impractical to extend Hulda Crooks Park into the Property due to the topography and location and, therefore, the Property has not been used for public park purposes. Additionally, a lot line adjustment was recorded during 2021 to allow for the construction of a garage, reducing the parcel in question to 1.318 acres, now known as Parcel A of Lot Line Adjustment 12-02; and
WHEREAS, pursuant to the California Surplus Land Act, Government Code (the “GC”) §§ 54220-54234 (the “Act”), as amended by AB 1486 (Chapter 664, Statutes of 2019; “AB 1486”) and Guidelines promulgated thereunder by the California Department of Housing and Community Development (the “HCD”) dated as of April 2021 (the “Guidelines”), by Resolution No. 3185 on June 27, 2023, the City Council designated the Property as surplus and directed that notice be given calling for written notices of interest; and
WHEREAS, two proposals were received for the purchase of the Property with the higher of the two offers being that submitted by Anlai Jiao and Kelsey Bullock (collectively “Buyer”) in the amount of One Hundred Two Thousand Dollars ($102,000.00) (the “Purchase Price”); and WHEREAS, following its review of the process conducted heretofore by the City concerning the designation of the Property as surplus and calling for written notices of interest, the California Department of Housing and Community Development (“HCD”) indicated in its writing dated as of November 30, 2023 (the “HCD Letter”) that the City had successfully completed compliance with the Act and Guidelines with respect to disposition of the Property; and WHEREAS, City staff has caused to be prepared a draft agreement entitled “Purchase and Sale Agreement and Joint Escrow Instructions” by and between the City of Loma Linda (as “Seller”) and Buyer which provides for the sale of the Property by City to Buyer on the terms and conditions set forth in the Agreement; and
WHEREAS, under the Act, if housing units are developed on the Property, at least 15% of the units must be restricted for use as affordable housing. The Agreement includes that requirement, which has been fully disclosed to Buyer; and
2 WHEREAS, pursuant to § 15060 (c) (3) of the California Environmental Quality Act (the “CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000- 15387), approval of this Resolution is exempt from CEQA because the actions described herein will not result in a direct or indirect physical change in the environment and the actions described herein are not a “Project”, as defined within§ 15378 of the CEQA Guidelines; and WHEREAS, all the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Loma Linda, as follows:
Section 1. The foregoing recitals are true and correct and are a substantive part of this Resolution.
Section 2. The City Council hereby approves the Agreement and authorizes and directs the City Manager to execute the Agreement and attachments thereto, including without limitation a grant deed, to execute supplemental escrow instructions if necessary, and to take all actions, necessary or convenient to the implementation of the Agreement.
Section 3. Any actions previously taken in connection with the designation of the Property as surplus and arranging for the sale of the Property are hereby ratified and confirmed.
Such actions include negotiating in good faith in accordance with the requirements of the Act and the Guidelines.
Section 4. This Resolution has been reviewed with respect to the applicability of the CEQA (Public Resources Code § 21000 et seq.). City staff has determined that the designation of the Property as surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines§ 15060(c)(3) because it is not a project as defined by the CEQA Guidelines§ 15378. Adoption of the Resolution does not have the potential for resulting in either a direct or indirect physical change in the environment. If and when the Property is sold or leased and that new owner or lessee proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.
Section 5. Pursuant to the foregoing, the City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines § 15062.
Section 6. This Resolution shall take effect upon the date of its adoption.
PASSED AND ADOPTED, at a meeting of the City Council of the City of Lorna Linda held on January 9, 2024.
AYES:
NOES:
ABSTAIN:
ABSENT:
3 Phillip Dupper, Mayor
ATTEST:
Lynette Arreola, City Clerk
4 CERTIFICATION:
I, Lynette Arreola, City Clerk for the City of Loma Linda, do hereby certify that the foregoing Resolution No. ____ was duly adopted by the City Council of the City of Loma Linda, at a meeting thereof held on January 9, 2024, by the following vote:
Lynette Arreola, City Clerk
5 EXHIBIT “A”
PROPERTY DESCRIPTION
Legal Description
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
LOT A, AS DESCRIBED AND SHOWN ON LOT LINE ADJUSTMENT 12-02, IN THE CITY
OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED MAY 7, 2021, AS INSTRUMENT NO. 2021-0212584 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
PARCEL 1 OF PARCEL MAP NO. 19268, IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, FILED IN BOOK 237, PAGE 49 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THE EASTERLY 20 FEET THEREOF.
APN: 0284-202-47-0000
6 EXHIBIT “B”
PROPERTY DEPICTION
(the Image is Not to Scale and is for Information Only) Loma Linda surplus property
PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
SELLER: City of Loma Linda
BUYER: Anlai Jiao and Kelsey Bullock
DATED: January 9, 2024
i
Loma Linda surplus property
BASIC TERMS
Agreement, Declaration of
Restrictive Covenants An instrument substantially in the form of Exhibit “E” hereto Buyer: Anlai Jiao and Kelsey Bullock
Buyer’s Address: Anlai Jiao and Kelsey Bullock
25599 Allen Way
Loma Linda, California 92354
City: The City of Loma Linda, a municipal corporation
City Manager: The City Manager of the City or his or her designee Closing: The conveyance of the Real Property by Seller to Buyer in accordance with this Agreement.
Closing Date: April 18, 2024 as further set forth in Section 3(b); with the mutual consent of the parties, escrow may close prior to April 18, 2024 Contingency Date: Thirty (30) days after the Effective Date.
Deed: A grant deed as to the Real Property from Seller to Buyer as described more particularly in Section 8(a)(i). The Deed shall be substantially in the form of Exhibit “C” hereto.
Disclosure Statement: An instrument substantially in the form of Exhibit “B” hereto.
Down Payment: One Hundred Dollars ($100.00)
Effective Date: The date (i) the Anlai Jiao and Kelsey Bullock or (ii) the Seller approve this Agreement, whichever should later occur.
Escrow Holder: Granite Escrow
450 Newport Center Drive, Suite 600
Newport Beach, California 92660
Attention: Arwen Estelle
Telephone No.: (949) 720-0110
Official Records: The official land records of the County Recorder of the County of San Bernardino
Purchase Price: One Hundred Two Thousand Dollars ($102,000.00).
Real Property: That property described in Exhibit “A” hereto; the subject property is sometimes referred to as APN 0284-202-47-000.
Seller: City of Loma Linda
Seller’s Address: 25541 Barton Road, Loma Linda, California 92354 ii
Loma Linda surplus property
Title Company: Commonwealth Land Title
4400 MacArthur Blvd., Suite 800
Newport Beach, California 92660
Attention: David Noble
Telephone No.: (714) 289-3379
Loma Linda surplus property
PURCHASE AND SALE AGREEMENT
AND
JOINT ESCROW INSTRUCTIONS
This PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (“Agreement”) is made and entered into as of the Effective Date by and between Seller and Buyer.
RECITALS
A. Seller is the fee owner of that real property which is legally described on Exhibit “A” attached hereto and made a part hereof (the “Real Property”). The Real Property is not improved with a residence; any improvements existing on the Real Property were previously installed by the Buyer.
B. Seller has determined, as evidenced by its Resolution No. 3185 as adopted on June 27, 2023 (the “Surplus Resolution”) that the Real Property is surplus to the needs of the Seller. Following approval of the Surplus Resolution, Seller undertook a process to invite bids consistent with provisions of the California Surplus Land Law (Government Code sections 54220 to 54234) and guidelines concerning the disposition of surplus land as published by the California Department of Housing and Community Development (“HCD”) dated as of April 2021 (the “Guidelines”). Seller communicated with HCD concerning the process conducted by Seller and received written confirmation from HCD (dated as of November 30, 2023) that the process to allow the sale of the Real Property had been completed. As part of the process, Seller received two monetary bids; the first was submitted by Buyer herein for the amount of the Purchase Price, with no conditions regarding land use entitlement included, and the second by a different private party for a lower amount. As Buyer proposed the higher amount, and preconditions to move forward with the sale of the Real Property having been completed, Seller is agreeing with Buyer to cause the consummation of the sale of the Real Property to Buyer on the terms and conditions set forth in this Agreement.
C. Seller has offered to sell to Buyer the Real Property described herein for the price and subject to the terms set forth below. Buyer acknowledges that: (i) if ten or more dwelling units are developed on the Real Property, the not fewer than fifteen percent (15%) of the dwelling units so developed will be required to be sold or rented at affordable housing cost for a period of time more fully described in Exhibit “B” hereto; and (ii) the Real Property is being sold without warranty on a where is/as is basis; Buyer expressly acknowledges that Seller has disclosed that there is a fault line running across the Real Property. Buyer has considered the offer by Seller and agrees to buy from Seller the Real Property on the terms and conditions as more particularly set forth below. Covenants which include such requirements will be incorporated in the Deed as well as in the Agreement, Declaration of Restrictive Covenants.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows:
1. Purchase and Sale. Seller hereby agrees to sell the Real Property to Buyer, and Buyer hereby agrees to purchase the Real Property from Seller, on the terms and conditions set forth in this Agreement. The term Real Property is defined collectively as the following:
2 Loma Linda surplus property
(a) The fee interest in the Real Property;
(b) All rights, privileges, easements, licenses and interests appurtenant to the Real Property. Such rights shall be deemed to include, without limitation, all royalties, minerals, oil and gas rights and profits, water and water rights (whether or not appurtenant) owned by Seller; and (c) All personal property, equipment, supplies, and fixtures owned by Seller and located at the Real Property;
(d) All of Seller’s interest under contracts, leases, and other agreements associated with the Real Property, including without limitation all moneys held by the Authority in an impound account to defray taxes, assessments, insurance, and other costs with respect to the Real Property (as such moneys were funded by Seller or a predecessor in interest to Seller); and (e) All of Seller’s interest as lessor in any lease or agreement to rent all or any portion of the Real Property.
2. Payment of Consideration. As consideration for the Seller to enter into this Agreement, Buyer shall within two (2) days after the Effective Date deposit the Down Payment. As consideration for the sale of the Real Property from Seller to Buyer, Buyer shall, prior to Closing (as defined below), deposit with Escrow Holder: (i) immediately available funds in the amount of the Purchase Price (less the Down Payment if earlier paid), and (v) documents to the extent referenced in Section 9 or otherwise necessary to effect the Closing.
3. Escrow and Deposit.
(a) Opening of Escrow. For the purposes of this Agreement, the escrow (“Escrow”) shall be deemed opened (“Opening of Escrow”) on the date that Escrow Holder receives a copy of this Agreement fully executed by Buyer and Seller. Buyer shall remit to Escrow the Down Payment within two (2) business days after the Effective Date. Buyer and Seller shall use their best efforts to cause the Opening of Escrow to occur on or before two (2) business days after the Effective Date. Escrow Holder shall promptly notify Buyer and Seller in writing of the date of the Opening of Escrow. Buyer and Seller agree to execute, deliver and be bound by any reasonable or customary supplemental escrow instructions or other instruments reasonably required by Escrow Holder to consummate the transaction contemplated by this Agreement; provided, however, that no such instruments shall be inconsistent or in conflict with, amend or supersede any portion of this Agreement. If there is any conflict or inconsistency between the terms of such instruments and the terms of this Agreement, then the terms of this Agreement shall control. Without limiting the generality of the foregoing, no such instruments shall extinguish any obligations imposed by this Agreement or any other agreement between Seller and Buyer. (b) Closing. For purposes of this Agreement, the “Closing” or “Closing Date” shall be the date the Deed (as defined below) is recorded pursuant to applicable law in the county in which the Real Property is located. Unless changed in writing by Buyer and Seller, the Closing shall occur on the Closing Date, April 18, 2024 or such later date as may be approved by Buyer and Seller for such purpose, each acting at its discretion (the “Closing Date”) or as soon thereafter as the conditions precedent to closing are satisfied pursuant to Sections 6 and 7 of this Agreement. If the Closing has not, for any reason, occurred by the Closing Date, then either Buyer or Seller may terminate this Agreement by delivering written notice to the other at any time after the outside Closing 3 Loma Linda surplus property
Date; provided, however, that if either party is in default under this Agreement at the time of such termination, then such termination shall not affect the rights and remedies of the non-defaulting party against the defaulting party.
Seller and Buyer agree that Escrow Holder shall have authority to assist in filling out the Special Disclosures and in inserting dates, names, and recording information as necessary and customary.
4. Seller’s Delivery of Real Property and Formation Documents. Within ten (10) days after the Effective Date, Seller shall deliver to Buyer the following items (collectively, the Property Documents”):
(a) Copies of tax bills.
(b) Such proof of Sellers’ authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company.
5. Buyer’s Right of Entry. From and after the Opening of Escrow through the earlier to occur of the termination of this Agreement or the Closing, Buyer and Buyer’s employees, agents, consultants and contractors shall have the right to enter upon the Real Property during normal business hours, provided reasonable prior notice has been given to Seller.
6. Buyer’s Conditions Precedent and Termination Right.
(a) Conditions Precedent. The Closing and Buyer’s obligation to consummate the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following conditions precedent (collectively, “Buyer’s Contingencies”), which are for Buyer’s benefit only.
(i) Title Review. Seller has obtained an preliminary title report as to the Real Property from the Title Company; the preliminary title report is designated as Order No. 92022709-920-DNE-DN0, dated as of December 6, 2023 (the “Prelim”). Within five (5) calendar days after the Opening of Escrow, Seller shall cause the Title Company to deliver to Buyer a copy of the Prelim, together with copies of the exceptions (the “Exceptions”) set forth in the Prelim; provided that the cost of the Prelim shall be borne by Seller. On or before the Contingency Date, Buyer shall have approved in writing, in Buyer’s sole discretion, any matters of title disclosed by the following (collectively, the “Title Documents”): (i) the Prelim including the following documents which are not of record as of the date of the Prelim; (ii) the legal description of the Real Property, and (iii) any survey Buyer desires to obtain at Buyer’s sole cost and expense. Buyer shall have the same rights to approve or disapprove any exceptions to title that are not created by Buyer and that come into existence after issuance of the Report but prior to Closing. Seller shall, on or before the Closing, remove all deeds of trust, mortgages and delinquent taxes (but not the lien for any real property taxes or assessments not yet delinquent).
(ii) Buyer’s Title Policy. On or before the Closing, the Title Company shall, upon payment (by Seller) of the Title Company’s premium, have agreed to issue to Buyer, a standard ALTA owner’s policy of title insurance (“Buyer’s Title Policy”) in the amount of the Purchase Price, showing fee title to the Real Property vested solely in Buyer and subject only to the (i) the standard, preprinted exceptions to Buyer’s Title Policy; (ii) liens to secure payment of real 4 Loma Linda surplus property
estate taxes or assessments not yet delinquent; (iii) matters affecting the Real Property created by or with the written consent of Buyer; (iv) matters disclosed in the Prelim, (v) provisions to be contained in the Deed; and (vi) those additional matters specifically approved in writing by Buyer. Buyer shall have the right, at its sole cost and expense, to obtain coverage beyond that offered by a standard ALTA policy; provided, however, that Buyer’s ability to obtain such extended coverage shall not be a Buyer’s Contingency and Buyer’s obligations hereunder shall in no way be conditioned or contingent upon obtaining such extended coverage. Buyer shall have sole responsibility for obtaining, and bearing the cost of, any endorsements and for any survey or other matters required by the Title Company for such extended coverage.
(iii) Physical and Legal Inspections and Studies. On or before the Contingency Date, Buyer may undertake as to the Real Property, at Buyer’s cost, physical and legal inspections, investigations, tests and studies Buyer elects to make or obtain, including, but not limited to, investigations with regard to zoning, building codes and other governmental regulations; engineering tests; soils, seismic and geologic reports; environmental audits, inspections and studies; environmental investigation or other invasive or subsurface testing; and any other physical or legal inspections and/or investigations as Buyer may elect to make or obtain. Buyer shall give prior notice to Seller a reasonable time prior to conducting any such activities and shall seek to conduct any such activities within normal working hours or at other times approved by Seller. (iv) Natural Hazard Report. Seller shall cause the Escrow Holder to provide to Buyer prior to the Contingency Date, at Seller’s cost, the National Hazard Report described at Section 8(a)(iii) of this Agreement.
(v) Delivery of Documents. Seller’s delivery of all documents described in Section 8, below.
(vi) Representations and Warranties. All representations and warranties of Seller contained in this Agreement shall be materially true and correct as of the date made and as of the Closing.
(vii) No Default. As of the Closing, Seller shall not be in default in the performance of any material covenant or agreement to be performed by Seller under this Agreement. (b) Termination Right. Should any of Buyer’s Contingencies not be met, Buyer may, by written notice to Seller, terminate this Agreement. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be paid by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. If Buyer has neither terminated this Agreement in writing (“Termination Notice”) on or before 5:00 p.m. on the Contingency Date as to the items set forth in Sections 6(a)(i)- (vi) inclusive, nor provided a written satisfaction or waiver notice to Seller of each Buyer’s Contingency to be satisfied as of the Contingency Date, then all such Buyer’s Contingencies shall be deemed to have been satisfied and this Agreement shall continue pursuant to its terms. If Buyer has not delivered a Termination Notice as the items set forth in Sections 6(a)(vii)-(viii) inclusive, prior to the Closing, such Buyer’s Contingencies shall be deemed to have been satisfied. (c) Seller’s Cure Right. Buyer shall notify Seller, in Buyer’s Termination Notice, of Buyer’s disapproval or conditional approval of any Title Documents. Seller shall then have the right, but not the obligation, to (i) remove from title any disapproved or conditionally approved 5 Loma Linda surplus property
Exception(s) (or cure such other title matters that are the basis of Buyer’s disapproval or conditional approval of the Title Documents) within five (5) business days after Seller’s receipt of Buyer’s Termination Notice, or (ii) provide assurances reasonably satisfactory to Buyer that such Exception(s) will be removed (or other matters cured) on or before the Closing. With respect to any such Exception, it shall be sufficient for purposes hereof for Seller to commit in writing, within the applicable period, to remove such Exception at or before the Closing. Seller’s failure to remove such Exception after committing to do so shall be a default hereunder. An Exception shall be deemed removed or cured if Seller furnishes Buyer with evidence that the Title Company will issue the Buyer’s Title Policy, as defined herein, at the Closing deleting such Exception or providing an endorsement (at Seller’s expense) reasonably satisfactory to Buyer concerning such Exception. If Seller cannot or does not remove or agree to remove any of the disapproved Exception(s) (or cure other matters) within such five (5) business day period, Buyer shall have three (3) business days after the expiration of such five (5) business day period to give Seller written notice that Buyer elects to proceed with the purchase of the Real Property subject to the disapproved Title Document(s), it being understood that Buyer shall have no further recourse against Seller for such disapproved Title Exception(s).
7. Seller’s Condition Precedent. The Closing and Seller’s obligations with respect to the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following condition precedent (“Seller’s Contingency”), which is for Seller’s benefit only:
Buyer’s delivery of all documents described in Section 9(a) and Section 9(e), below.
8. Seller’s Deliveries to Escrow Holder.
(a) Seller’s Delivered Documents. At least one (1) business day prior to the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder the following items, duly executed and, where appropriate, acknowledged (“Seller’s Delivered Items”):
(i) Deed. A grant deed substantially in the form attached hereto as Exhibit “D” (the “Deed”); vesting shall be in the name of Buyer or, with the prior written approval of the City Manager, a different entity to accommodate for family estate planning. (ii) Agreement, Declaration of Restrictive Covenants. A recordable instrument substantially in the form of Exhibit “E” hereto (the Agreement; Declaration of Restrictive Covenants).
(iii) FIRPTA/Tax Exemption Forms. The Transferor’s Certification of Non-Foreign Status which may be in the form attached hereto as Exhibit “D” or a format provided by the Title Company (the “FIRPTA Certificate”), together with any necessary tax withholding forms, and a duly executed California Form 593-C, as applicable (the “California Exemption Certificate”). (iv) Hazard Disclosure Report. Seller shall cause Escrow Holder to obtain and deliver to Buyer, at Seller’s cost, a National Hazard Report as provided for under Sections 1102 and 1103 of the California Civil Code (the “National Hazard Report”) on or before the Contingency Date.
(v) Possession of Real Property. Rights of possession of the Real Property free of any tenancies or occupancy.
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(vi) Authority. Such proof of Seller’s authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company.
(vii) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company.
(b) Failure to Deliver. Should any of Seller’s Delivered Items not be timely delivered to Escrow, Buyer may, by written notice to Seller, terminate this Agreement; provided, however, that Buyer may (but shall not be obligated to) in such notice provide Seller with five (5) business days to deliver all of Seller’s Delivered Items. If Buyer’s notice provides Seller such five (5) business days to deliver Seller’s Delivered Items, and if Seller’s Delivered Items are not delivered within such period, then this Agreement shall automatically terminate without further action or notice.
In the event of any such termination, any cash deposited by Buyer shall immediately be returned to Buyer. Under no circumstances shall Buyer have any responsibility to or duty to pay consultants or real estate brokers retained by Seller, Seller being solely responsible in connection with any such contractual arrangements of Seller.
9. Buyer’s Deliveries to Escrow. At least one (1) business day prior to the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following, each duly executed and acknowledged, by Buyer as appropriate (“Buyer’s Delivered Items”):
(a) Money from Buyer. The Purchase Price, together with additional funds necessary to pay Buyer’s closing costs set forth in Section 10(b) herein; provided, however, that in the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code, as evidenced by the delivery at Closing of the California Exemption Certificate duly executed by Seller, Title Company shall withhold an amount equal to three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer for payment to the California Franchise Tax Board in accordance with Section 11(b) hereof. In the event Seller is not exempt from such withholding or does not otherwise deliver the California Exemption Certificate at Closing, Buyer shall execute and deliver three (3) originals of California Form 593 to Title Company at or immediately after Closing.
(b) Change of Ownership Report. One (1) original Preliminary Change of Ownership Report.
(c) Final Escrow Instructions. Buyer’s final written escrow instructions to close escrow in accordance with the terms of this Agreement.
(d) Authority. Such proof of Buyer’s authority and authorization to enter into this Agreement and to consummate the transaction contemplated hereby as may be reasonably requested by Seller or the Title Company.
(e) Further Documents or Items. Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company. 7 Loma Linda surplus property
10. Costs and Expenses.
(a) Seller’s Costs. If the transaction contemplated by this Agreement is consummated, then Seller shall be debited for and bear the following costs: (i) Seller’s share of prorations; (ii) the cost of the Natural Hazard Report; (iii) the premium for a standard ALTA owner’s policy of title insurance based upon the Purchase Price (the “Owner’s Policy”); (iv) one-half of the Escrow Holder’s fee; (v) documentary transfer taxes, if any; (vii) one-half of recording fees and charges other closing costs not otherwise enumerated in this subsection (a); and (viii) costs, if any, allocable to Seller under this Agreement and costs for such services as Seller may additionally request that Escrow perform on its behalf (which foregoing items collectively constitute “Seller’s Costs and Debited Amounts”).
(b) Buyer’s Costs. If the transaction contemplated by this Agreement is consummated, then Buyer shall bear the following costs and expenses: (i) one-half of the Escrow Holder’s fee; (ii) Buyer’s share of prorations, (iii) one-half of recording fees and charges and other closing costs not otherwise enumerated in this subsection (b) or in subsection (a); and (iv) costs, if any, for such services as Buyer may additionally request that Escrow Holder perform on its behalf (collectively, “Buyer’s Costs and Debited Amounts”).
(c) Generally. Each party shall bear the costs of its own attorneys, consultants, and real estate brokers in connection with the negotiation and preparation of this Agreement and the consummation of the transaction contemplated hereby. Buyer represents to each Seller and the Authority that Buyer has not engaged the services of any consultants, finders or real estate brokers in connection with the purchase of the Real Property from the Seller. Seller represents to each Buyer and the Authority that Seller has not engaged the services of any consultants, finders or real estate brokers in connection with the sale of the Real Property to the Buyer.
11. Prorations; Withholding.
(a) Expenses relating to the Real Property (including, but not limited to, property taxes, utility costs and expenses, water charges and sewer rents and refuse collection charges) shall be the responsibility of Buyer (whether incurred before or after the Effective Date). (b) Seller, as a governmental agency, is exempt from withholding under Section 18662 of the California Revenue and Taxation Code and will submit to Escrow Holder a writing which sets forth such governmental status and exemption.
12. Closing Procedure. When the Title Company is ready to issue the Buyer’s Title Policy and all required documents and funds have been deposited with Escrow Holder, Escrow Holder shall immediately close Escrow in the manner and order provided below. (a) Recording. Escrow Holder shall cause each of the Deed and the Agreement; Declaration of Restrictive Covenants to be recorded among the official land records of the County Recorder of the County of San Bernardino (“Official Records”) and obtain conformed copies thereof for distribution to each Buyer, Seller and the Authority. (b) Disburse Funds. Escrow Holder shall debit or credit (as provided herein) all Buyer’s Costs and Debited Amounts, Seller’s Costs and Debited Amounts and General Expenses, prorate matters and withhold funds as provided herein. Seller authorizes Escrow Holder to request 8 Loma Linda surplus property
demands for payment and to make such payments from the Purchase Price (or such other funds, if any, as are advanced by Seller) to defray the cost of removing deeds of trust, liens and other encumbrances. Seller agrees that, notwithstanding any other provision of this Agreement to contrary effect, the total moneys to be disbursed to Seller upon Closing in connection with the sale of the Real Property under this Agreement shall be the sum of Five Hundred Dollars ($500.00). (c) Documents to Seller. Escrow Holder shall deliver to Seller a conformed copy of the Deed, a conformed copy of the Covenants, and a copy of each other document (or copies thereof) deposited into Escrow by Buyer pursuant hereto. Escrow Holder shall also provide to Authority a copy of each document provided to Seller. Escrow Holder shall also provide for the original Covenants to be delivered to Seller following the recording of the Covenants. (d) Documents to Buyer. Escrow Holder shall deliver to Buyer the original FIRPTA Certificate, the original California Exemption Certificate (as applicable), a conformed copy of the Deed, the Natural Hazard Report, and each other document (or copies thereof) deposited into Escrow by Seller pursuant hereto, including, without limitation, those documents referenced in Section 8. Escrow Holder shall also provide to Authority a copy of each document provided to Buyer. (e) Title Company. Escrow Holder shall cause the Title Company to issue the Buyer’s Title Policy to Buyer.
(f) Closing Statement. Escrow Holder shall forward to both Buyer and Seller a separate accounting of all funds received and disbursed for each party with a copy to the Authority. (g) Informational Reports. Escrow Holder shall file any information reports required by Internal Revenue Code Section 6045(e), as amended.
13. Representations and Warranties.
(a) Seller’s Representations and Warranties. In consideration of Buyer entering into this Agreement and as an inducement to Buyer to purchase the Real Property, Seller makes the following representations and warranties as of the Effective Date and as of the Closing, each of which is material and is being relied upon by Buyer (and the truth and accuracy of which shall constitute a condition precedent to Buyer’s obligations hereunder), and all of which are material inducements to Buyer to enter into this Agreement (and but for which Buyer would not have entered into this Agreement) and shall survive Closing:
(i) Seller has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby.
(ii) All requisite action (corporate, trust, partnership or otherwise) has been taken by Seller in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby. By the Closing no additional consent of any individual, director, manager, shareholder, partner, member, trustee, trustor, beneficiary, creditor, investor, judicial or administrative body, governmental authority or other party shall be required for Buyer to consummate the transaction contemplated by this Agreement. 9 Loma Linda surplus property
(iii) The individual executing this Agreement and the instruments referenced herein on behalf of Seller has the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof.
(iv) Neither the execution or delivery of this Agreement or the documents or instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement or the documents or instruments referenced herein or therein conflict with or result in the breach of any terms, conditions or provisions of, or constitute a default under, any note, contract, mortgage, deed of trust, loan, lease or other agreement or instrument to which Seller is a party or that affect the Real Property, including, but not limited to, any of the Title Documents or the Property Documents. (v) Seller has made no written or oral commitments to or agreements with any governmental authority or agency materially and adversely affecting the Real Property, or any part hereof, or any interest therein, which will survive the Closing. Seller has entered into no understanding or agreement with any taxing or assessing authority respecting the imposition or deferment of any taxes or assignments respecting the Real Property. For purposes of this Agreement, “best of Seller’s knowledge” means the actual knowledge of the City Manager, no investigation having been made.
(vi) To the best of the Seller’s knowledge, no document supplied to Buyer by Seller contains any untrue statement of a material fact, and no document omits any facts that would be necessary, in the circumstances, to make the document supplied not misleading. (b) Subsequent Changes to Seller’s Representations and Warranties. If, prior to the Closing, Buyer or Seller should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Seller set forth herein incorrect or untrue in any respect (collectively, the “Seller Representation Matter”), then the party who has learned, discovered or become aware of such Representation Matter shall promptly give written notice thereof to the other party and Seller’s representations and warranties shall be automatically limited to account for the Representation Matter. Buyer shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Seller if Buyer reasonably disapproves any such change. If Buyer does not elect to terminate this Agreement, Seller’s representation shall be qualified by such Seller Representation Matter and Seller shall have no obligation to Buyer for such Seller Representation Matter.
(c) Buyer’s Representations and Warranties. In consideration of Seller entering into this Agreement and as an inducement to Seller to sell the Real Property, Buyer makes the following representations and warranties as of the date hereof and at and as of the Closing, each of which is material and is being relied upon by Seller (and the truth and accuracy of which shall constitute a condition precedent to Seller’s obligations hereunder), and all of which shall survive Closing:
(i) Buyer has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby.
(ii) All requisite action has been taken by Buyer in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such 10 Loma Linda surplus property
necessary action will have been taken to authorize the consummation of the transaction contemplated hereby. By the Closing no additional consent of any individual, judicial or administrative body, governmental authority or other party shall be required for Seller to consummate the transaction contemplated by this Agreement.
(iii) The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right and actual authority to bind Buyer to the terms and conditions hereof and thereof.
(iv) Buyer agrees, acknowledges, and represents that the use of the Real Property prior to the Effective Date and continuing to the conveyance of the Real Property to Buyer has been a nonconforming use and that any improvements may not be made to the Real Property without the prior written approval of the City of Loma Linda, a municipal corporation; this provision shall survive the close of escrow.
(v) Buyer agrees and acknowledges that by the City approving this Agreement and/or conveying the Real Property to Buyer, no commitment, assurance or any representation has been made that either the City or the Loma Linda Housing Authority will provide any financial assistance in connection with the development of affordable housing units on the Real Property. Buyer agrees and acknowledges that there is no expectation that either the City or the Loma Linda Housing Authority will provide any financial assistance in connection with any development which hereafter occurs on the Real Property.
(vi) Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement and the documents and instruments referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Buyer is a party or by which any of Buyer’s properties are bound.
(d) Subsequent Changes to Buyer’s Representations and Warranties. If, prior to the Closing, Seller or Buyer should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Buyer set forth herein incorrect or untrue in any respect (collectively, the “Buyer’s Representation Matter”), then the party who has learned, discovered or become aware of such Buyer’s Representation Matter shall promptly give written notice thereof to the other party and Buyer’s representations and warranties shall be automatically limited to account for the Buyer’s Representation Matter. Seller shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Buyer if Seller reasonably disapproves any such change. If Seller does not elect to terminate this Agreement, Buyer’s representation shall be qualified by such Buyer’s Representation Matter and Buyer shall have no obligation to Seller for such Buyer’s Representation Matter.
14. Limitation on the Issuance of Building Permits. In the event Buyer hereafter has pulled permits for the development of eight (8) dwelling units on the Real Property, no additional building permits shall be issued unless and until Buyer executes and causes to be recorded as to the Real Property an amendment to the Agreement; Declaration of Restrictive Covenants; such amendment shall more fully delineate the number of units to be developed on the Real Property, the number of units to be restricted as affordable units, and the income category (or categories) at which 11 Loma Linda surplus property
such units will be restricted. The provisions of this Section 14 shall run with the land and shall survive the Closing.
15. General Provisions.
(a) Condemnation. If any material portion of the Real Property shall be taken or appropriated by a public or quasi-public authority exercising the power of eminent domain, Buyer shall have the right, at its option, to (i) terminate this Agreement or (ii) proceed with the purchase of the Real Property and receive all of the award or payment made in connection with such taking. (b) Notices. All notices, demands, requests or other communications required or permitted hereunder (collectively, “Notices”) shall be in writing, shall be addressed to the receiving party as provided in the Basic Term section above, and shall be personally delivered, sent by overnight mail (Federal Express or another carrier that provides receipts for all deliveries), sent by certified mail, postage prepaid, return receipt requested, or sent by facsimile transmission (provided that a successful transmission report is received), or sent by email (for Buyer, [email protected]; for Seller, [email protected]). All Notices shall be effective upon receipt at the appropriate address. Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no Notice in accordance with this Section was given shall be deemed to constitute receipt of such Notice. The providing of copies of Notices to the parties’ respective counsels is for information only, is not required for valid Notice and does not alone constitute Notice hereunder. Notice to either Anlai Jiao or Kelsey Bullock shall be deemed to constitute notice to both Anlai Jiao and Kelsey Bullock.
(c) Brokers. Seller assumes sole responsibility for any consultants or brokers (“Seller’s Agents”) it may have retained in connection with the sale of the Real Property. Seller represents to Buyer that Seller has engaged no finders or real estate brokers in connection with the sale of the Real Property to the Buyer, and there are no brokerage commission, finder’s fee or other compensation of any kind is due or owing to any person or entity in connection with this Agreement.
Seller agrees to and does hereby indemnify and hold Buyer free and harmless from and against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Seller in connection with this Agreement.
Buyer assumes sole responsibility for any consultants or brokers (“Buyer’s Agents”) it may have retained in connection with the purchase of the Real Property. Buyer represents to Seller that Buyer has engaged no finders or real estate brokers in connection with the purchase of the Real Property by the Buyer, and there are no brokerage commission, finder’s fee or other compensation of any kind is due or owing to any person or entity in connection with this Agreement. Buyer agrees to and does hereby indemnify and hold Seller free and harmless from and against any and all costs, liabilities or causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the Buyer in connection with this Agreement.
(d) Waiver, Consent and Remedies. Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any breach thereof by Buyer or Seller shall be deemed a material default hereunder. Either party may specifically and 12 Loma Linda surplus property
expressly waive in writing any portion of this Agreement or any breach thereof, but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any similar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement.
All rights, remedies, undertakings, obligations, options, covenants, conditions and agreements contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other.
Except as otherwise specified herein, either party hereto may pursue any one or more of its rights, options or remedies hereunder or may seek damages or specific performance in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement.
(e) Cooperation. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated and shall use all reasonable efforts to accomplish the Closing in accordance with the provisions hereof.
(f) Remedies. Without limitation as to the availability of other remedies, this Agreement may be enforced by an action for specific enforcement. (g) Time. Time is of the essence of every provision herein contained. In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which said period of time runs shall be excluded, and the last day of such period shall be included, unless it is a Saturday, Sunday, or legal holiday, in which case the period shall be deemed to run until 5:00 p.m. of the next day that is not a Saturday, Sunday, or legal holiday. Except as otherwise expressly provided herein, all time periods expiring on a specified date or period herein shall be deemed to expire at 5:00 p.m. on such specified date or period. (h) Counterparts; Facsimile Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. A facsimile signature shall be deemed an original signature.
(i) Captions; Interpretation. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. This Agreement shall be interpreted as if prepared jointly and equally by both of the Seller and the Buyer.
(j) No Third Party Beneficiaries. The execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties to this Agreement to, any person or entity other than the parties hereto.
(k) Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. 13 Loma Linda surplus property
(l) Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. (m) Applicable Law. This Agreement shall be governed by and construed in accordance with the local law of the State of California. (n) Exhibits and Schedules. The exhibits and schedules attached hereto are incorporated herein by this reference for all purposes. (o) Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between, and the final expression of, Buyer and Seller with respect to the subject matter hereof. The parties hereto expressly agree and confirm that this Agreement is executed without reliance on any oral or written statements, representations or promises of any kind which are not expressly contained in this Agreement. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. (p) Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto. (q) Assignment. This Agreement may not be assigned without the prior written consent of the other party hereto and the prior written consent of the Authority. [The remainder of this page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
“SELLER”
CITY OF LOMA LINDA
By:
City Manager, City of Loma Linda
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“BUYER”
ANLAI JIAO
By:
Anlai Jiao
KELSEY BULLOCK
By: ____________________________________
Kelsey Bullock
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Loma Linda surplus property 4810-8257-1138v3/200371-0000 Acceptance by Escrow Holder:
Granite Escrow hereby acknowledges that it has received a fully executed copy of the foregoing Purchase and Sale Agreement and Joint Escrow Instructions by and between City of Loma Linda (“Seller”), and the Anlai Jiao and Kelsey Bullock, collectively, as Buyer, and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder.
Dated: _____________, 2024
GRANITE ESCROW
By:
Name:
Its:
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EXHIBIT A
LEGAL DESCRIPTION
(Real Property)
The land referred to herein is situated in the State of California, County of San Bernardino, City of Loma Linda, described as follows:
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
LOT A, AS DESCRIBED AND SHOWN ON LOT LINE ADJUSTMENT 12-02, IN THE CITY OF
LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED MAY 7, 2021, AS INSTRUMENT NO. 2021-0212584 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
PARCEL 1 OF PARCEL MAP NO. 19268, IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, FILED IN BOOK 237, PAGE 49 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THE EASTERLY 20 FEET THEREOF.
APN: 0284-202-47-0000
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EXHIBIT B
DISCLOSURE STATEMENT
I/we Anlai Jiao and Kelsey Bullock (collectively, "Buyer") understand and agree that the Purchase and Sale Agreement and Joint Escrow Instructions by and between Buyer and the City of Loma Linda, a municipal corporation and charter city (“Seller”) dated as of January 9, 2024 (the “Agreement”) has been approved and entered into based upon the following understandings, affirmations, and representations by Buyer, as listed below:
I/we are buying an unimproved area of land defined in the Agreement as the “Real Property”, which Real Property is subject to a fault line traversing the Real Property. Seller has disclosed to me that a portion of the San Jacinto Fault (USGS Designation No. 125a) underlies the Real Property. As a consequence, any development proposed for the Real Property will require a geotechnical investigation, which shall include an evaluation of all of the following potential geologic and seismic hazards: i) slope instability; ii) liquefaction; iii) total and differential settlement; and iv) surface displacement due to faulting or seismically induced lateral spreading or lateral flow. Depending on the occupancy category of a proposed development, a corresponding seismic design category shall be determined for a proposed development that may constrain potential Property uses.
I/we have been advised by Seller of the provisions of California Government Code Section 54222.5; in essence those provisions require that in the event at such future time as an owner of the Real Property develops ten (10) or more residential units on the Real Property, not less than fifteen percent (15%) of all residential units developed on the Real Property shall be sold or rented an affordable housing cost as described in Sections 50052.5 and 50053 of the California Health and Safety Code, with all such units being rented or sold to households having an income of not greater than eighty percent (80%) of area median income as more particularly defined in Health and Safety Code Section 50079.5. I/we agree and acknowledge that if any such development (which results in ten or more dwelling units being constructed on the Real Property) is to occur, I/we will execute recorded covenants running with the line, in form prepared by Seller, which will restrict the Real Property in conformity with the foregoing for a period of not less than 45 years (if the resulting unit(s) is/are held by a private party as owner) or not less than 55 years in the case of rental housing. I/we agree that as of such time as I/we have pulled permits for the development of eight (8) dwelling units on the Real Property, no additional building permits shall be issued unless and until I/we execute and cause to be recorded as to the Real Property an amendment to the Agreement; Declaration of Restrictive Covenants; such amendment shall more fully delineate the number of units to be developed on the Real Property, the number of units to be restricted as affordable units, and the income category (or categories) at which such units will be restricted.
(signatures on following page)
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BUYER
ANLAI JIAO
_____________________________________
Dated: _____________________, 2024
KELSEY BULLOCK
_____________________________________
Dated: _____________________, 2024
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EXHIBIT C
GRANT DEED
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
Anlai Jiao and Kelsey Bullock
25599 Allen Way
Loma Linda, California 92354
________________________________________________________________________________ APN: 0284-202-47-0000 DOCUMENTARY TRANSFER TAX
$____________________
______ computed on the consideration or value of property conveyed; OR ______ computed on the consideration or value less liens or encumbrances remaining at time of sale. ___________________________________________
Signature of Declarant or Agent determining tax - Firm Name
GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Loma Linda, a municipal corporation and charter city (“Grantor” or “City”) hereby grants to Kelsey Megan Bullock and Anlai Jiao, Wife and Husband as Community Property with Right of Survivorship (collectively, “Grantee”) that certain real property located in the County of San Bernardino, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference (the “Real Property”); such grant is subject to the provisions in Sections 1 to 2, inclusive, as follows:
1. The Real Property has been sold by Grantor to Grantee following conduct of a process by City to dispose of surplus property under the Surplus Land Act (Government Code Sections 54220 to 54234) (the “SLA”). Due to the nature of such statutory requirements, and as provided in that certain unrecorded “Purchase and Sale Agreement and Joint Escrow Instructions” (the “PSA”) dated as of January 9, 2024 by and between Grantor and Grantee (a copy of which is on file with Grantor as a public record), at such future time as an owner of the Real Property develops ten (10) or more residential units on the Real Property, not less than fifteen percent (15%) of all residential units developed on the Property shall be sold or rented an affordable housing cost as described in Sections 50052.5 and 50053 of the California Health and Safety Code, with all such units being rented or sold to households having an income of not greater than eighty percent (80%) of area median income as more particularly defined in Health And Safety Coe Section 50079.5.
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2. Grantee agrees and acknowledges that if any such development (which results in ten or more dwelling units being constructed on the Real Property) is to occur, Grantee (and any successors in interest as to the Real Property) will execute recorded covenants running with the line, in form prepared by City, which will restrict the Real Property in conformity with the foregoing for a period of not less than forty five (45) years (if the resulting unit(s) is/are held by a private party as owner) or not less than fifty five (55) years in the case of rental housing.
3. Grantee agrees that in the event Grantee (including without limitation a successor in interest as to the Real Property) hereafter has pulled permits for the development of eight (8) dwelling units on the Real Property, no additional building permits shall be issued unless and until the Grantee (or the then current owner of the Real Property) executes and causes to be recorded as to the Real Property an amendment to the Agreement; Declaration of Restrictive Covenants; such amendment shall more fully delineate the number of units to be developed on the Real Property, the number of units to be restricted as affordable units, and the income category (or categories) at which such units will be restricted.
4. The provisions set forth in Sections 1, 2, and 3 of this Deed shall run with the land.
IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of ____________, 2024. “GRANTOR”
CITY OF LOMA LINDA, a municipal corporation and charter city By:
T. Jarb Thaipejr, City Manager
Attest: ___________________________
Lynette Arreola, City Clerk
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AGREEMENT OF GRANTEE: Grantee agrees to be bound by and take subject to the provisions set forth in Sections 1, 2 and 3 this Grant Deed.
Anlai Jiao
Dated: ________________
Kelsey Bullock
Dated: ________________
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ATTACHMENT NO. 1 TO GRANT DEED
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of San Bernardino, City of Loma Linda, described as follows:
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
LOT A, AS DESCRIBED AND SHOWN ON LOT LINE ADJUSTMENT 12-02, IN THE CITY OF
LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED MAY 7, 2021, AS INSTRUMENT NO. 2021-0212584 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
PARCEL 1 OF PARCEL MAP NO. 19268, IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, FILED IN BOOK 237, PAGE 49 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THE EASTERLY 20 FEET THEREOF.
APN: 0284-202-47-0000
Loma Linda surplus property
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Loma Linda surplus property
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Buyer’s Initials (__________) (__________) Seller’s Initials (__________) (__________) TDS REVISED 4/14 (PAGE 3 OF 3) Reviewed by __________ Date __________ REAL ESTATE TRANSFER DISCLOSURE STATEMENT (TDS PAGE 3 OF 3) D-1
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EXHIBIT “D”
FIRPTA CERTIFICATE
SELLER’S AFFIDAVIT OF NONFOREIGN STATUS
AND/OR CALIFORNIA WITHHOLDING EXEMPTION
FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA)
AND CALIFORNIA WITHHOLDING LAW
(Use a separate form for each Transferor)
Internal Revenue Code (“IRC”) Section 1445 provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a “foreign person.” California Revenue and Taxation Code Section 18662 provides that a transferee of a California real property interest must withhold tax unless an exemption applies.
I understand that this affidavit may be disclosed to the Internal Revenue Service and to the California Franchise Tax Board by the transferee, and that any false statement I have made herein may result in a fine, imprisonment or both.
1. PROPERTY ADDRESS (property being transferred): (“Property”)
2. TRANSFEROR’S INFORMATION:
Full Name (“Transferor”)
Telephone Number
Address
(Use HOME address for individual transferors. Use OFFICE address for an “Entity” i.e.: corporations, partnerships, limited liability companies, trusts and estates.) Social Security No., or Federal Employer Identification No.
For a corporation qualified to do business in California, California Corporation No.
Note: In order to avoid withholding, IRC Section 1445 (b) requires that the Seller (a) provides this affidavit to the Buyer with the Seller’s taxpayer identification number (“TIN”), or (b) provides this affidavit, including Seller’s TIN, to a “qualified substitute” who furnishes a statement to the Buyer under penalty of perjury that the qualified substitute has such affidavit in their possession. A qualified substitute may be (i) an attorney, title company, or escrow company (but not the Seller’s agent) responsible for closing the transaction, or (ii) the Buyer’s agent.
3. AUTHORITY TO SIGN: If this document is signed on behalf of an Entity Transferor, THE UNDERSIGNED INDIVIDUAL DECLARES THAT HE/SHE HAS AUTHORITY TO SIGN THIS DOCUMENT ON BEHALF OF THE TRANSFEROR.
4. FEDERAL LAW: I, the undersigned, declare under penalty of perjury that, for the reason checked below, if any, I am exempt (or if signed on behalf of an Entity Transferor, the Entity is exempt) from the federal withholding law (FIRPTA):
☐ (For individual Transferors) I am not a nonresident alien for purposes of U.S. income taxation. ☐ (For corporation, partnership, limited liability company, trust and estate Transferors) The Transferor is not a foreign corporation, foreign partnership, foreign limited liability company, foreign trust or foreign estate, as those terms are defined in the Internal Revenue Code and Income Tax Regulations.
5. CALIFORNIA LAW: I, the undersigned, declare under penalty of perjury that, for the reason checked below, if any, I am exempt (or if signed on behalf of an Entity Transferor, the Entity is exempt) from the California withholding law.
Certifications which fully exempt the sale from withholding:
☐ The total sales price for the Property is $100,000 or less. ☐ The Property qualifies as my principal residence (or the decedent’s, if being sold by the decedent’s estate) within the meaning of IRC Section 121 (owned and occupied as such for two of the last five years).
☐ The Property was last used as my principal residence (or the decedent’s, if being sold by the decedent’s estate) within the meaning of IRC Section 121 without regard to the two-year time period.
☐ The transaction will result in a loss or zero gain for California income tax purposes. (Complete FTB Form 593-E.) ☐ The Property has been compulsorily or involuntarily converted (within the meaning of IRC Section 1033) and Transferor intends to acquire property similar or related in service or use to be eligible for non-recognition of gain for California income tax purposes under IRC Section 1033. ☐ Transferor is a corporation (or an LLC classified as a corporation) that is either qualified through the California Secretary of State or has a permanent place of business in California.
☐ Transferor is a partnership (or an LLC that is not a disregarded single member LLC, classified as a partnership) and recorded title to the Property is in the name of the partnership or LLC. If so, the partnership or LLC must withhold from nonresident partners or members as required. ☐ Transferor is exempt from tax under California or federal law. ☐ Transferor is an insurance company, qualified pension/profit sharing plan, IRA or charitable remainder trust.
Certifications which may partially or fully exempt the sale from withholding:
☐ The Property is being, or will be, exchanged for property of like kind within the meaning of IRC Section 1031. ☐ Payments for the Property are being made in installments, the transferor is a non-resident seller and withholding will be applied to each principal payment. ☐ As a result of the sale of the Property, Seller’s tax liability, calculated at the maximum tax rate regardless of Seller’s actual rate, will be less than the 3 1/3% withholding otherwise required. Seller will be required to sign a certification, under penalty of perjury, specifying the amount to be withheld. (Not to be used for sales closing prior to January 1, 2007)
By Date _______________
(Transferor’s Signature) (Indicate if you are signing as the grantor of a revocable/grantor trust) Typed or printed name Title (if signed on behalf of Entity Transferor) Buyer’s unauthorized use or disclosure of Seller’s TIN could result in civil or criminal liability.
Buyer Date _______________
(Buyer acknowledges receipt of a Copy of this Seller’s Affidavit) Buyer Date _______________
(Buyer acknowledges receipt of a Copy of this Seller’s Affidavit) Buyer’s Initials (__________) (__________) Seller’s Initials (__________) (__________) TDS REVISED 4/14 (PAGE 3 OF 3) Reviewed by __________ Date __________ REAL ESTATE TRANSFER DISCLOSURE STATEMENT (TDS PAGE 3 OF 3) D-2
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IMPORTANT NOTICE: An Affidavit should be signed by each individual or entity Transferor to whom or to which it applies. Before you sign, any questions relating to the legal sufficiency of this form, or to whether it applies to you or to a particular transaction, or about the definition of any of the terms used, should be referred to an attorney, certified public accountant, or other professional tax advisor, the Internal Revenue Service, or the California Franchise Tax Board. For further information on federal guidelines, see C.A.R. Legal Q & A “Federal Withholding: The Foreign Investment in Real Property Tax Act,” and/or IRS Publication 515 or 519. For further information on state guidelines, see C.A.R. Legal Q & A “California Nonresident Withholding,” and/or California FTB Pub. 1016.
FEDERAL GUIDELINES
FOREIGN PERSONS DEFINED. The following general information is provided to assist sellers in determining whether they are “foreign persons” for purposes of the Foreign Investment in Real Property Tax Act (FIRPTA), IRC §1445. FIRPTA requires a buyer to withhold and send to the Internal Revenue Service 10% of the gross sales price of a United States (U.S.) real property interest if the seller is a foreign person. No withholding is required for a seller who is a U.S. person (that is, not a foreign person). In order for an individual to be a U.S. person, he/she must be either a U.S. citizen or a U.S. resident alien. The test must be applied separately to each seller in transactions involving more than one seller. Even if the seller is a foreign person, withholding will not be required in every circumstance.
NONRESIDENT ALIEN INDIVIDUAL. An individual whose residence is not within the U.S. and who is not a U.S. citizen is a nonresident alien.
The term includes a nonresident alien fiduciary. An alien actually present in the U.S. who is not just staying temporarily (i.e., not a mere transient or sojourner), is a U.S. resident for income tax purposes. An alien is considered a U.S. resident and not subject to withholding under FIRPTA if the alien meets either the green card test or the substantial presence test for the calendar year.
GREEN CARD TEST. An alien is a U.S. resident if the individual was a lawful permanent resident of the U.S. at any time during the calendar year.
This is known as the “green card test.”
SUBSTANTIAL PRESENCE TEST. An alien is considered a U.S. resident if the individual meets the substantial presence test for the calendar year.
Under this test, the individual must be physically present in the U.S. on at least: (1) 31 days during the current calendar year; and (2) 183 days during the current year and the two preceding years, counting all the days of physical presence in the current year but only 1/3 the number of days present in the first preceding year, and 1/6 the number of days present in the second preceding year.
DAYS OF PRESENCE IN THE U.S. TEST. Generally, a person is treated as physically present in the country at any time during the day. However, if a person regularly commutes to work in the U.S. from a residence in Canada or Mexico, or is in transit between two points outside the U.S. and is physically present in the country for less than 24 hours, he/she is not treated as present in the U.S. on any day during the transit or commute. In addition, the individual is not treated as present in the U.S. on any day during which he/she is unable to leave the U.S. because of a medical condition which arose while in the U.S.
EXEMPT INDIVIDUAL. For the substantial presence test, do not count days for which a person is an exempt individual. An exempt individual is anyone in the following categories:
(1) An individual temporarily present in the U.S. because of (a) full-time diplomatic or consular status, (b) full-time employment with an international organization or (c) an immediate family member of a person described in (a) or (b). (2) A teacher or trainee temporarily present in the U.S. under a “J” visa (other than as a student) who substantially compiles with the requirements of the visa. An individual will not be exempt under this category for a calendar year if he/she was exempt as a teacher or trainee or as a student for any two calendar years during the preceding six calendar years. (3) A student temporarily present in the U.S. under an “F” or “J” visa who substantially complies with the requirements of the visa. Generally, a person will not be exempt as a student for any calendar year after the fifth calendar year for which he/she was exempt as a student, teacher or trainee. However, the individual may continue to be exempt as a student beyond the fifth year if he/she is in compliance with the terms of the student visa and does not intend to permanently reside in the U.S.
CLOSER CONNECTION TO A FOREIGN COUNTRY. Even if an individual would otherwise meet the substantial presence test, that person is not treated as meeting the test for the current calendar year if he/she:
(1) Is present in the U.S. on fewer than 183 days during the current year, and (2) Has a tax home in a foreign country and has a closer connection to that country than to the U.S.
SPECIAL RULES. It is possible to be both a nonresident alien and a resident alien during the same tax year. Usually this occurs for the year a person arrives in or departs from the U.S. Other special provisions apply to individuals who were U.S. residents for at least three years, cease to be U.S. residents, and then become U.S. residents again.
NONRESIDENT ALIEN INDIVIDUALS MARRIED TO U.S. CITIZENS OR RESIDENT ALIENS may choose to be treated as resident aliens for most income tax purposes. However, these individuals are considered nonresidents for purposes of withholding taxes.
A FOREIGN PERSON OR PARTNERSHIP is one that does not fit the definition of a domestic corporation or partnership. A domestic corporation or partnership is one that was created or organized in the U.S., or under the laws of the U.S., or of any U.S. state or territory.
GUAM AND U.S. VIRGIN ISLANDS CORPORATIONS. A corporation created or organized in or under the laws of Guam or the U.S. Virgin Islands is not considered a foreign corporation for the purpose of withholding tax for the tax year if:
(1) at all times during the tax year, less than 25% in value of the corporation’s stock is owned, directly or indirectly, by foreign persons, and (2) at least 20% of the corporation’s gross income is derived from sources within Guam or at least 65% of the corporation’s income is effectively connected with the conduct of a trade or business in the U.S. Virgin Islands or the U.S. for the 3-year period ending with the dose of the preceding tax year of the corporation, or the period the corporation has been in existence if less.
A NONRESIDENT ALIEN TRUSTEE, ADMINISTRATOR OR EXECUTOR of a trust or an estate is treated as a nonresident alien, even though all the beneficiaries of the trust or estate are citizens or residents of the U.S.
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EXHIBIT “E”
AGREEMENT; DECLARATION OF RESTRICTIVE COVENANTS
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APN: 0284-202-47-0000 Space above for recorder.
EXEMPT FROM RECORDING FEES
(Government Code §§ 6103 &27383)
The undersigned declarant declares the documentary transfer tax is $0.00
AGREEMENT, DECLARATION OF RESTRICTIVE COVENANTS
THIS AGREEMENT, DECLARATION OF RESTRICTIVE COVENANTS (“Restrictive Covenants”) is made this ____ day of _____________, 2024 by KELSEY BULLOCK and ANLAI JIAO, Wife and Husband as Community Property with Right of Survivorship (collectively, “Owner” and “Declarant”) and the CITY OF LOMA LINDA, a municipal corporation and charter city “City”), with reference to the following facts:
RECITALS
A. This Declaration of Restrictive Covenants shall confirm City’s compliance with the provisions of the California Surplus Land Act (Government Code (“GC”) §§ 54220 et seq.) (the “Act”), which is a requirement of the State of California.
B. City has agreed to sell to Declarant a fee interest, subject to the provisions contained herein and subject to provisions contained in a deed entitled “Grant Deed” to be recorded of event date hereof, a fee interest in that certain vacant real property, consisting of an approximately 1.318-acre parcel, located on the south side of Allen Way in the City of Loma Linda, County of San Bernardino, State of California (Assessor’s Parcel Number 0284-202-47-0000) (the “Property”).
C. The conveyance of the Property by City to Declarant under the Grant Deed is in furtherance of that certain unrecorded agreement dated as of January 9, 2024 between City and Declarant, entitled “Purchase and Sale Agreement and Joint Escrow Instructions” (the “PSA”); a copy of the PSA is on file with the City as a public record.
D. The Loma Linda General Plan and zoning designation for the Property as in effect as of the date the PSA has been approved by the City Council of the City is Low Density Residential (R-1), (0-4 dwelling units per acre). The ultimate development of the Property is anticipated to be consistent with the existing General Plan and zoning designations; such designations may change from time to time.
E. On June 27, 2023, the City Council of the City of Loma Linda adopted Resolution No. 3185, which among other things, declared the Property as non-exempt surplus land pursuant to the Act; a copy of such Resolution, which is unrecorded, is on file with the City as a public record.
F. On June 28, 2023, City caused the issuance of an unrecorded Notice of Availability of Surplus Land (as defined within the Act) for the Property to all designated local agencies and housing sponsors (as defined in the Act). A copy of the Notice of Availability of Surplus Land is on file with the City as a public record.
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN
TO:
City of Loma Linda
Attn: City Manager
25541 Barton Road
Loma Linda, CA 92354
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G. Within the 60-day period of availability (as specified in the Act), which was concluded on August 28, 2023, the City received two unrecorded Statements of Interest. Neither Statement of Interest indicated an intention to cause the Property to be developed with affordable housing. The City accepted the offer of Declarant, as the higher nominal bidder. The two Statements of Interest are on file with the City as public records.
H. While Declarant has not indicated a present intention to develop affordable housing units on the Property, the disposition of the Property, consisting with the Act, is nevertheless subject to subject to requirements concerning the provision of affordable units in the event ten (10) or more dwelling units are developed on the Property.
RESTRICTIVE COVENANTS, TERMS, CONDITIONS
In consideration of the above recitals, each of City and Declarant herby declares that the Property shall be held, transferred, conveyed, leased, occupied, or otherwise disposed of, and used subject to the following restrictive covenants; Declarant makes such declarations on behalf of itself and any and all successors to the Property (and acknowledges that the provisions hereof shall run with the land for the benefit of each of City and the Loma Linda Housing Authority, a public body, corporate and politic (the “Housing Authority”), which Housing Authority shall be deemed to be a third party beneficiary of the provisions hereof:
1. Requirement of Affordability. In the event at such future time as an owner of the Property develops ten (10) or more residential units on the Property, not less than fifteen percent (15%) of all residential units developed on the Property shall be sold or rented an affordable housing cost as described in Sections 50052.5 and 50053 of the California Health and Safety Code, with all such units being rented or sold to households having an income of not greater than eighty percent (80%) of area median income as more particularly defined in Health and Safety Code Section 50079.5. If any such development (which results in ten or more dwelling units being constructed on the Property) is to occur, Declarant shall execute recorded covenants running with the line, in form prepared by City, which will restrict the Property in conformity with the foregoing for a period of not less than 45 years (if the resulting unit(s) is/are held by a private party as owner) or not less than 55 years in the case of rental housing.
2. Limitation Upon Issuance of Building Permits. As of such time as Declarant (and/or its successors with respect to the Property) have pulled permits for the development of eight (8) dwelling units on the Property, no additional building permits shall be issued unless and until I/we execute and cause to be recorded as to the Property an amendment to these Restrictive Covenants; such amendment shall more fully delineate the number of units to be developed on the Property, the number of units to be restricted as affordable units, and the income category (or categories) at which such units will be restricted. At the election of City, the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of GC § 65915.
3. No Financial Responsibility and Hold Harmless; No Financial Assistance. Neither City nor the Housing Authority will be responsible for any costs or financial losses incurred by any owner of the Property with respect to complying with these Restrictive Covenants. Any costs or financial losses incurred by any owner of the Property shall be borne solely by the Declarant and its successors in interest as to the Property. Declarant agrees and acknowledges that by the City approving the PSA and/or conveying the Property to Declarant, no commitment, assurance or any representation has been made that either the City or the Housing Authority will provide any financial assistance in connection with the development of affordable housing units on the Property. Declarant agrees and acknowledges that there is no expectation that either the City or the Housing Authority will provide any financial assistance in connection with any development which hereafter occurs on the Property.
4. Term: These Restrictive Covenants shall run with the land and shall be enforceable against the Declarant, any successor owner, and any occupant of the Property for a period commencing as of the date these Restrictive Covenants are recorded and continuing for a period of seventy (70) years commencing with the recording of these Restrictive Covenants; provided that in the event development occurs on the Property, City will consider in good faith a modification to such covenant period to accomplish a covenants period of (i) forty five (45) years in the E-4
Loma Linda surplus property
event ownership housing is developed on the Property or (ii) fifty five (55) years if rental housing is developed on the Property; the applicable period shall be deemed to constitute the “Term.” For this purpose, any unit the rental of which is not precluded by recorded instrument shall be deemed to constitute a rental unit absent modification of this requirement hereafter expressly approved and executed by City. Further, in the event that during the Term, the Property is developed as an affordable housing project wherein there are additional affordable housing restrictive covenants wherein the lender/grantor requires a higher priority lien position (e.g., covenants required by the LowIncome Housing Tax Credit Program, HOME Investment Partnership Program, Multifamily Housing Program, etc.) and that the Declarant has confirmed exceed the number of affected affordable units, depth of affordability, and/or duration of covenants, then these Restrictive Covenants shall be deemed modified to reflect such longer periods or greater requirements. While not necessary to implement such modification, Declarant (or its successor) shall, upon request therefor by City, execute a further recordable modification to these Restrictive Covenants which expressly acknowledges that such greater requirements are, within limitation as to the provisions hereof, applicable hereunder and shall be enforceable by City.
5. Exemptions: These Restrictive Covenants shall not apply to projects as defined in subdivision (j) of Section 32121 of the California Health and Safety Code (i.e., generally, health care and health services related facilities).
IN WITNESS WHEREOF, the City and the Declarant have executed this Agreement, Declaration of Restrictive Covenants.
This ____ day of , 2024.
CITY:
CITY OF LOMA LINDA, a municipal corporation and
charter city
By:
T. Jarb Thaipejr
City Manager
DECLARANT:
Kelsey Bullock
Anlai Jiao
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Loma Linda surplus property
EXHIBIT A
LEGAL DESCRIPTION
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
LOT A, AS DESCRIBED AND SHOWN ON LOT LINE ADJUSTMENT 12-02, IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED MAY 7, 2021, AS INSTRUMENT NO. 2021-0212584 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
PARCEL 1 OF PARCEL MAP NO. 19268, IN THE CITY OF LOMA LINDA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, FILED IN BOOK 237, PAGE 49 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPTING THE EASTERLY 20 FEET THEREOF.
APN: 0284-202-47-0000
E-6
Loma Linda surplus property
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of San Bernardino )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of San Bernardino )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
E-7
Loma Linda surplus property
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
)
County of San Bernardino )
On , before me, , Notary Public, personally
appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
City of Loma Linda
Regular City Council Staff Report
Prepared By: Lynette Arreola
Council Bill #R-2024-02 - Resolution to amend the Miscellaneous and Fire Compensation Plans [Administration]
Meeting
Tuesday, January 9, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3F
To
City Council
From
Jennifer Pearsall, Human Resources/Risk Management Analyst Via
T Jarb Thaipejr, City Manager
Approved/Continued/Denied by City Council
Date:
RECOMMENDATION:
It is recommended that the City Council approve Council Bill R-2024-02, adopting and establishing the new salary table for employees effective January 1, 2024, and establishing two new classifications of Distribution Superintendent and Treatment Superintendent.
BACKGROUND:
The minimum wage in California, effective January 1, 2024, has risen to $16.00 per hour for all employers. The proposed Resolution provides for salary increases for affected hourly classification to ensure compliance with the upcoming State of California-mandated minimum wage increase.
California Code of Regulations, Title 2, Section 570.5 requires governing bodies of local agencies contracting with CalPERS to approve and adopt a publicly available pay schedule at a public meeting.
The City has determined the need to alter the current class specification of the Utility Services Superintendent and create the Distribution and Treatment Superintendent to replace the classification.
ANALYSIS:
N/A
ENVIRONMENTAL IMPACT:
N/A
FINANCIAL IMPACT:
The upcoming State of California-mandated minimum wage increase will impact one (1) employee in the Student Intern classification. Part-time employees are limited to work, on average, no more than twenty-nine (29) hours per week. The increase in salary for the affected employee is estimated to be $1,040.00 annually.
Attachments
Exhibit A
Exhibit B
Exhibit C
RESOLUTION NO R-2024-XX.pdf
The estimated cost savings of altering the current classification of Utility Services Superintendent is $10,000.
Attachment – Exhibit “A”: Salary Table All Units Revised 01-01-2024 Attachment – Exhibit “B”: Distribution Superintendent Job Classification Attachment – Exhibit “C”: Treatment Superintendent Job Classification
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 ACCOUNTANT PAEA Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135 ACCOUNTING MANAGER UMCE Annual 24 85,419.2642 89,690.2227 94,174.7328 98,883.4653 103,827.6396 109,019.0237 111,744.4995 114,538.1094 Monthly 7,118.2720 7,474.1852 7,847.8944 8,240.2888 8,652.3033 9,084.9186 9,312.0416 9,544.8425Bi‐weekly 3,285.3563 3,449.6240 3,622.1051 3,803.2102 3,993.3708 4,193.0394 4,297.8654 4,405.3119Hourly 41.0670 43.1203 45.2763 47.5401 49.9171 52.4130 53.7233 55.0664 ACCOUNTING SPECIALIST LLPAEA Annual 17 49,841.3255 52,333.3881 54,950.0544 57,697.5551 60,582.4313 63,611.5554 65,201.8433 66,831.8855 Monthly 4,153.4438 4,361.1157 4,579.1712 4,808.1296 5,048.5359 5,300.9630 5,433.4869 5,569.3238Bi‐weekly 1,916.9741 2,012.8226 2,113.4636 2,219.1367 2,330.0935 2,446.5983 2,507.7632 2,570.4571Hourly 23.9622 25.1603 26.4183 27.7392 29.1262 30.5825 31.3470 32.1307 ACCOUNTING TECHNICIAN I LLPAEA Annual 14 39,565.6592 41,543.9375 43,621.1307 45,802.1862 48,092.2997 50,496.9152 51,759.3357 53,053.3238 Monthly 3,297.1383 3,461.9948 3,635.0942 3,816.8489 4,007.6916 4,208.0763 4,313.2780 4,421.1103Bi‐weekly 1,521.7561 1,597.8437 1,677.7358 1,761.6225 1,849.7038 1,942.1890 1,990.7437 2,040.5125Hourly 19.0220 19.9730 20.9717 22.0203 23.1213 24.2774 24.8843 25.5064
ACCOUNTING TECHNICIAN
II LLPAEA Annual 16 46,149.3770 48,456.8474 50,879.6892 53,423.6778 56,094.8576 58,899.6041 60,372.0985 61,881.3977 Monthly 3,845.7814 4,038.0706 4,239.9741 4,451.9732 4,674.5715 4,908.3003 5,031.0082 5,156.7831Bi‐weekly 1,774.9760 1,863.7249 1,956.9111 2,054.7568 2,157.4945 2,265.3694 2,322.0038 2,380.0538Hourly 22.1872 23.2966 24.4614 25.6845 26.9687 28.3171 29.0250 29.7507 ADMINISTRATIVESPECIALIST I LLPAEA Annual 13 36,634.8704 38,466.6134 40,389.9435 42,409.4459 44,529.9228 46,756.4148 47,925.3231 49,123.4598 Monthly 3,052.9059 3,205.5511 3,365.8286 3,534.1205 3,710.8269 3,896.3679 3,993.7769 4,093.6217Bi‐weekly 1,409.0335 1,479.4851 1,553.4594 1,631.1325 1,712.6893 1,798.3236 1,843.2817 1,889.3638Hourly 17.6129 18.4936 19.4182 20.3892 21.4086 22.4790 23.0410 23.6170 ADMINISTRATIVESPECIALIST II LLPAEA Annual 14 39,565.6592 41,543.9375 43,621.1307 45,802.1862 48,092.2997 50,496.9152 51,759.3357 53,053.3238 Monthly 3,297.1383 3,461.9948 3,635.0942 3,816.8489 4,007.6916 4,208.0763 4,313.2780 4,421.1103Bi‐weekly 1,521.7561 1,597.8437 1,677.7358 1,761.6225 1,849.7038 1,942.1890 1,990.7437 2,040.5125Hourly 19.0220 19.9730 20.9717 22.0203 23.1213 24.2774 24.8843 25.5064 1 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8ADMINISTRATIVESPECIALIST III LLPAEA Annual 17 49,841.3255 52,333.3881 54,950.0544 57,697.5551 60,582.4313 63,611.5554 65,201.8433 66,831.8855 Monthly 4,153.4438 4,361.1157 4,579.1712 4,808.1296 5,048.5359 5,300.9630 5,433.4869 5,569.3238Bi‐weekly 1,916.9741 2,012.8226 2,113.4636 2,219.1367 2,330.0935 2,446.5983 2,507.7632 2,570.4571Hourly 23.9622 25.1603 26.4183 27.7392 29.1262 30.5825 31.3470 32.1307 ASSISTANT CITY MANAGER UMCE Annual 32 158,105.0993 166,010.3568 174,310.8705 183,026.4192 192,177.7443 201,786.6326 206,831.2950 212,002.0826 Monthly 13,175.4249 13,834.1964 14,525.9059 15,252.2016 16,014.8120 16,815.5527 17,235.9413 17,666.8402Bi‐weekly 6,080.9654 6,385.0137 6,704.2643 7,039.4777 7,391.4517 7,761.0243 7,955.0498 8,153.9263Hourly 76.0121 79.8127 83.8033 87.9935 92.3931 97.0128 99.4381 101.9241 ASSISTANT PLANNER UMCE Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755 ASSISTANT PUBLIC WORKS UMCE Annual 28 116,211.9632 122,022.5567 128,123.6850 134,529.8693 141,256.3653 148,319.1846 152,027.1653 155,827.8405DIRECTOR/ CITY Monthly 9,684.3303 10,168.5464 10,676.9738 11,210.8224 11,771.3638 12,359.9321 12,668.9304 12,985.6534ENGINEER Bi‐weekly 4,469.6909 4,693.1753 4,927.8340 5,174.2257 5,432.9371 ` 5,847.1987 5,993.3785 Hourly 55.8711 58.6647 61.5979 64.6778 67.9117 71.3073 73.0900 74.9172 ASSOCIATE ENGINEER UMCE Annual 26 99,633.0330 104,614.6847 109,845.4194 115,337.6883 121,104.5738 127,159.7999 130,338.7920 133,597.2618 Monthly 8,302.7528 8,717.8904 9,153.7850 9,611.4740 10,092.0478 10,596.6500 10,861.5660 11,133.1052Bi‐weekly 3,832.0397 4,023.6417 4,224.8238 4,436.0649 4,657.8682 4,890.7615 5,013.0305 5,138.3562Hourly 47.9005 50.2955 52.8103 55.4508 58.2234 61.1345 62.6629 64.2295 ASSOCIATE PLANNER UMCE Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135 CITY CLERK UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 2 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8CITY MANAGER UMCE Annual 263,238.9535 Monthly 21,936.5795Bi‐weekly 10,124.5751Hourly 126.5572
COUNCIL MEMBER ELECTED
OFFICIAL Annual 12,800.7600
Monthly 1,066.7300
CODECOMPLIANCE/ANIMALCONTROL OFFICER
LLPAEA Annual 18 53,828.6319 56,520.0666 59,346.0720 62,313.3756 65,429.0465 68,700.4952 70,418.0052 72,178.4574 Monthly 4,485.7193 4,710.0056 4,945.5060 5,192.7813 5,452.4205 5,725.0413 5,868.1671 6,014.8715Bi‐weekly 2,070.3320 2,173.8487 2,282.5412 2,396.6683 2,516.5018 2,642.3267 2,708.3848 2,776.0945Hourly 25.8791 27.1731 28.5318 29.9584 31.4563 33.0291 33.8548 34.7012
COMMUNICATIONSINFRASTRUCTUREINSPECTOR
UMCE Annual 23 79,091.9159 83,046.5163 87,198.8432 91,558.7807 96,136.7202 100,943.5604 103,467.1491 106,053.8315 Monthly 6,590.9930 6,920.5430 7,266.5703 7,629.8984 8,011.3934 8,411.9634 8,622.2624 8,837.8193Bi‐weekly 3,041.9968 3,194.0968 3,353.8017 3,521.4916 3,697.5662 3,882.4446 3,979.5057 4,078.9935Hourly 38.0250 39.9262 41.9225 44.0186 46.2196 48.5306 49.7438 50.9874 COMMUNITYDEVELOPMENT DIRECTOR UMCE Annual 30 135,549.6341 142,327.1142 149,443.4741 156,915.6462 164,761.4327 172,999.5048 177,324.4904 181,757.6024 Monthly 11,295.8028 11,860.5929 12,453.6228 13,076.3039 13,730.1194 14,416.6254 14,777.0409 15,146.4669Bi‐weekly 5,213.4475 5,474.1198 5,747.8259 6,035.2172 6,336.9782 6,653.8271 6,820.1727 6,990.6770Hourly 65.1681 68.4265 71.8478 75.4402 79.2122 83.1728 85.2522 87.3835 CUSTOMER SERVICE/METER TECH LLPWEA Annual 18 53,828.6319 56,520.0666 59,346.0720 62,313.3756 65,429.0465 68,700.4952 70,418.0052 72,178.4574 Monthly 4,485.7193 4,710.0056 4,945.5060 5,192.7813 5,452.4205 5,725.0413 5,868.1671 6,014.8715Bi‐weekly 2,070.3320 2,173.8487 2,282.5412 2,396.6683 2,516.5018 2,642.3267 2,708.3848 2,776.0945Hourly 25.8791 27.1731 28.5318 29.9584 31.4563 33.0291 33.8548 34.7012 3 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8CUSTOMER SUPPORTTECHNICIAN PAEA Annual 16 46,149.3770 48,456.8474 50,879.6892 53,423.6778 56,094.8576 58,899.6041 60,372.0985 61,881.3977 Monthly 3,845.7814 4,038.0706 4,239.9741 4,451.9732 4,674.5715 4,908.3003 5,031.0082 5,156.7831Bi‐weekly 1,774.9760 1,863.7249 1,956.9111 2,054.7568 2,157.4945 2,265.3694 2,322.0038 2,380.0538Hourly 22.1872 23.2966 24.4614 25.6845 26.9687 28.3171 29.0250 29.7507 DISTRIBUTIONSUPERINTENDENT UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 ENGINEERINGTECHNICIAN/GIS ANALYST LLPAEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773 EXECUTIVE AIDE UMCE Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773 EXECUTIVE ASSISTANT UMCE Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755
FACILITY MAINTENANCE
COORDINATOR LLPWEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773 FIELD MAINTENANCE TECH I LLPWEA Annual 15 42,730.9078 44,867.4570 47,110.8299 49,466.3760 51,939.6948 54,536.6754 55,900.0913 57,297.5897 Monthly 3,560.9090 3,738.9548 3,925.9025 4,122.1980 4,328.3079 4,544.7230 4,658.3409 4,774.7991Bi‐weekly 1,643.4965 1,725.6714 1,811.9550 1,902.5529 1,997.6806 2,097.5644 2,150.0035 2,203.7534Hourly 20.5437 21.5709 22.6494 23.7819 24.9710 26.2196 26.8750 27.5469 4 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8FIELD MAINTENANCE TECH II LLPWEA Annual 18 53,828.6319 56,520.0666 59,346.0720 62,313.3756 65,429.0465 68,700.4952 70,418.0052 72,178.4574 Monthly 4,485.7193 4,710.0056 4,945.5060 5,192.7813 5,452.4205 5,725.0413 5,868.1671 6,014.8715Bi‐weekly 2,070.3320 2,173.8487 2,282.5412 2,396.6683 2,516.5018 2,642.3267 2,708.3848 2,776.0945Hourly 25.8791 27.1731 28.5318 29.9584 31.4563 33.0291 33.8548 34.7012
FIELD MAINTENANCE TECH
III LLPWEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773
FIELD SERVICES
SUPERINTENDENT UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 FINANCE DIRECTOR UMCE Annual 30 135,549.6341 142,327.1142 149,443.4741 156,915.6462 164,761.4327 172,999.5048 177,324.4904 181,757.6024 Monthly 11,295.8028 11,860.5929 12,453.6228 13,076.3039 13,730.1194 14,416.6254 14,777.0409 15,146.4669Bi‐weekly 5,213.4475 5,474.1198 5,747.8259 6,035.2172 6,336.9782 6,653.8271 6,820.1727 6,990.6770Hourly 65.1681 68.4265 71.8478 75.4402 79.2122 83.1728 85.2522 87.3835 FIRE BATTALION CHIEF USFMC Annual FIRE 14 130,318.5578 136,834.4831 143,676.2057 150,860.0165 158,403.0137 162,363.0893 166,422.1626 170,582.7177 Monthly 10,859.8798 11,402.8736 11,973.0171 12,571.6680 13,200.2511 13,530.2574 13,868.5136 14,215.2265Bi‐weekly 5,012.2522 5,262.8647 5,526.0079 5,802.3083 6,092.4236 6,244.7342 6,400.8524 6,560.873840‐hour 62.6532 65.7858 69.0751 72.5289 76.1553 78.0592 80.0107 82.0109 56‐hour 44.7523 46.9899 49.3394 51.8063 54.3966 55.7566 57.1505 58.5792 FIRE CAPTAIN LLPF Annual FIRE 8 97,245.7227 102,108.0078 107,213.4041 112,574.0727 118,202.7753 121,157.8452 124,186.7934 127,291.4622 Monthly 8,103.8102 8,509.0007 8,934.4503 9,381.1727 9,850.2313 10,096.4871 10,348.8995 10,607.6219Bi‐weekly 3,740.2201 3,927.2311 4,123.5925 4,329.7720 4,546.2606 4,659.9171 4,776.4151 4,895.825540‐hour 46.7528 49.0904 51.5449 54.1222 56.8283 58.2490 59.7052 61.1978 56‐hour 33.3948 35.0646 36.8178 38.6587 40.5916 41.6064 42.6466 43.7127 5 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8FIRE CHIEF USFMC Annual 33 170,753.5031 179,291.1767 188,255.7360 197,668.5228 207,551.9448 217,929.5379 223,377.7779 228,962.2239 Monthly 14,229.4586 14,940.9314 15,687.9780 16,472.3769 17,295.9954 18,160.7948 18,614.8148 19,080.1853Bi‐weekly 6,567.4424 6,895.8145 7,240.6052 7,602.6355 7,982.7671 8,381.9053 8,591.4530 8,806.2394Hourly 82.0930 86.1977 90.5076 95.0329 99.7846 104.7738 107.3932 110.0780 FIRE DIVISION CHIEF USFMC Annual FIRE 14 130,318.5578 136,834.4831 143,676.2057 150,860.0165 158,403.0137 162,363.0893 166,422.1626 170,582.7177 Monthly 10,859.8798 11,402.8736 11,973.0171 12,571.6680 13,200.2511 13,530.2574 13,868.5136 14,215.2265Bi‐weekly 5,012.2522 5,262.8647 5,526.0079 5,802.3083 6,092.4236 6,244.7342 6,400.8524 6,560.873840‐hour 62.6532 65.7858 69.0751 72.5289 76.1553 78.0592 80.0107 82.0109 56‐hour 44.7523 46.9899 49.3394 51.8063 54.3966 55.7566 57.1505 58.5792 FIRE ENGINEER LLPF Annual FIRE 6 88,204.7390 92,614.9775 97,245.7227 102,108.0078 107,213.4041 109,893.7436 112,641.0890 115,457.1170 Monthly 7,350.3949 7,717.9148 8,103.8102 8,509.0007 8,934.4503 9,157.8120 9,386.7574 9,621.4264Bi‐weekly 3,392.4900 3,562.1145 3,740.2201 3,927.2311 4,123.5925 4,226.6824 4,332.3496 4,440.658340‐hour 42.4061 44.5264 46.7528 49.0904 51.5449 52.8335 54.1544 55.5082 56‐hour 30.2901 31.8046 33.3948 35.0646 36.8178 37.7382 38.6817 39.6487 FIRE MARSHAL I USFMC Annual FIRE 8 97,245.7227 102,108.0078 107,213.4041 112,574.0727 118,202.7753 121,157.8452 124,186.7934 127,291.4622 Monthly 8,103.8102 8,509.0007 8,934.4503 9,381.1727 9,850.2313 10,096.4871 10,348.8995 10,607.6219Bi‐weekly 3,740.2201 3,927.2311 4,123.5925 4,329.7720 4,546.2606 4,659.9171 4,776.4151 4,895.825540‐hour 46.7528 49.0904 51.5449 54.1222 56.8283 58.2490 59.7052 61.1978 56‐hour 33.3948 35.0646 36.8178 38.6587 40.5916 41.6064 42.6466 43.7127 FIRE MARSHAL II USFMC Annual FIRE 14 130,318.5578 136,834.4831 143,676.2057 150,860.0165 158,403.0137 162,363.0893 166,422.1626 170,582.7177 Monthly 10,859.8798 11,402.8736 11,973.0171 12,571.6680 13,200.2511 13,530.2574 13,868.5136 14,215.2265Bi‐weekly 5,012.2522 5,262.8647 5,526.0079 5,802.3083 6,092.4236 6,244.7342 6,400.8524 6,560.873840‐hour 62.6532 65.7858 69.0751 72.5289 76.1553 78.0592 80.0107 82.0109 56‐hour 44.7523 46.9899 49.3394 51.8063 54.3966 55.7566 57.1505 58.5792 FIREFIGHTER/PARAMEDIC LLPF Annual FIRE 4 80,004.2994 84,004.5123 88,204.7390 92,614.9775 97,245.7227 99,676.8653 102,168.7830 104,723.0078 Monthly 6,667.0250 7,000.3760 7,350.3949 7,717.9148 8,103.8102 8,306.4054 8,514.0653 8,726.9173Bi‐weekly 3,077.0884 3,230.9428 3,392.4900 3,562.1145 3,740.2201 3,833.7256 3,929.5686 4,027.808040‐hour 38.4636 40.3868 42.4061 44.5264 46.7528 47.9216 49.1196 50.3476 56‐hour 27.4740 28.8477 30.2901 31.8046 33.3948 34.2297 35.0854 35.9626 6 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8FIREFIGHTER‐EMT LLPF Annual FIRE 1 69,110.7201 72,566.2512 76,194.5679 80,004.2994 84,004.5123 86,104.6205 88,257.2342 90,463.6679 Monthly 5,759.2267 6,047.1876 6,349.5473 6,667.0250 7,000.3760 7,175.3850 7,354.7695 7,538.6390Bi‐weekly 2,658.1046 2,791.0097 2,930.5603 3,077.0884 3,230.9428 3,311.7162 3,394.5090 3,479.371840‐hour 33.2263 34.8876 36.6320 38.4636 40.3868 41.3965 42.4314 43.4921 56‐hour 23.7331 24.9197 26.1657 27.4740 28.8477 29.5689 30.3081 31.0658
FIRE PREVENTION
INSPECTOR LLPAEA Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135 HUMAN RESOURCES ‐ RISK
MANAGEMENT ANALYST UMCE Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135
INFORMATION SYSTEMS
ANALYST I UMCE Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755
INFORMATION SYSTEMS
ANALYST II UMCE Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135
INFORMATION SYSTEMS
ANALYST III UMCE Annual 22 73,233.2570 76,894.9214 80,739.6669 84,776.6534 89,015.4855 93,466.2650 95,802.9224 98,197.9952 Monthly 6,102.7714 6,407.9101 6,728.3056 7,064.7211 7,417.9571 7,788.8554 7,983.5769 8,183.1663Bi‐weekly 2,816.6637 2,957.4970 3,105.3718 3,260.6405 3,423.6725 3,594.8563 3,684.7278 3,776.8460Hourly 35.2083 36.9687 38.8171 40.7580 42.7959 44.9357 46.0591 47.2106
0.0000
7 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8INFORMATION SYSTEMS ANALYST IV UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 LEAD MECHANIC/FLEETSVCS COORDINATOR LLPWEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773 PARKING CONTROL OFFICER‐
SPECIAL EVENTSCOORDINATOR
LLPAEA Annual 16 46,149.3770 48,456.8474 50,879.6892 53,423.6778 56,094.8576 58,899.6041 60,372.0985 61,881.3977 Monthly 3,845.7814 4,038.0706 4,239.9741 4,451.9732 4,674.5715 4,908.3003 5,031.0082 5,156.7831Bi‐weekly 1,774.9760 1,863.7249 1,956.9111 2,054.7568 2,157.4945 2,265.3694 2,322.0038 2,380.0538Hourly 22.1872 23.2966 24.4614 25.6845 26.9687 28.3171 29.0250 29.7507
PARKINGENFORCEMENT/ANIMALCONTROL OFFICER
LLPAEA Annual 18 53,828.6319 56,520.0666 59,346.0720 62,313.3756 65,429.0465 68,700.4952 70,418.0052 72,178.4574 Monthly 4,485.7193 4,710.0056 4,945.5060 5,192.7813 5,452.4205 5,725.0413 5,868.1671 6,014.8715Bi‐weekly 2,070.3320 2,173.8487 2,282.5412 2,396.6683 2,516.5018 2,642.3267 2,708.3848 2,776.0945Hourly 25.8791 27.1731 28.5318 29.9584 31.4563 33.0291 33.8548 34.7012 PLANNING TECHNICIAN UMCE Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773 PUBLIC WORKSDIRECTOR/CITY ENGINEER UMCE Annual 31 146,393.6085 153,713.2941 161,398.9557 169,468.9025 177,942.3440 186,839.4627 191,510.4488 196,298.2139 Monthly 12,199.4674 12,809.4412 13,449.9130 14,122.4085 14,828.5287 15,569.9552 15,959.2041 16,358.1845Bi‐weekly 5,630.5234 5,912.0498 6,207.6521 6,518.0347 6,843.9363 7,186.1332 7,365.7865 7,549.9313Hourly 70.3815 73.9006 77.5957 81.4754 85.5492 89.8267 92.0723 94.3741 8 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8SENIORACCOUNTANT/FINANCIALANALYST UMCE Annual 23 79,091.9159 83,046.5163 87,198.8432 91,558.7807 96,136.7202 100,943.5604 103,467.1491 106,053.8315 Monthly 6,590.9930 6,920.5430 7,266.5703 7,629.8984 8,011.3934 8,411.9634 8,622.2624 8,837.8193Bi‐weekly 3,041.9968 3,194.0968 3,353.8017 3,521.4916 3,697.5662 3,882.4446 3,979.5057 4,078.9935Hourly 38.0250 39.9262 41.9225 44.0186 46.2196 48.5306 49.7438 50.9874 SENIOR CENTER MANAGER UMCE Annual 21 67,808.5736 71,199.0059 74,758.9608 78,496.9047 82,421.7489 86,542.8395 88,706.4138 90,924.0773 Monthly 5,650.7145 5,933.2505 6,229.9134 6,541.4087 6,868.4791 7,211.9033 7,392.2012 7,577.0064Bi‐weekly 2,608.0221 2,738.4233 2,875.3446 3,019.1117 3,170.0673 3,328.5707 3,411.7851 3,497.0799Hourly 32.6003 34.2303 35.9418 37.7389 39.6258 41.6071 42.6473 43.7135 SENIOR CODEENFORCEMENT OFFICER UMCE Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755 SENIOR PLANNER UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 STORMWATER INSPECTOR UMCE Annual 18 53,828.6319 56,520.0666 59,346.0720 62,313.3756 65,429.0465 68,700.4952 70,418.0052 72,178.4574 Monthly 4,485.7193 4,710.0056 4,945.5060 5,192.7813 5,452.4205 5,725.0413 5,868.1671 6,014.8715Bi‐weekly 2,070.3320 2,173.8487 2,282.5412 2,396.6683 2,516.5018 2,642.3267 2,708.3848 2,776.0945Hourly 25.8791 27.1731 28.5318 29.9584 31.4563 33.0291 33.8548 34.7012 STUDENT INTERN PT Annual 1 33,280.0000
Monthly 2,773.3333Bi‐weekly 1,280.0000Hourly 16.0000
9 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8SUPERVISING ACCOUNTING TECHNICIAN UMCE Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773
TREATMENT PLANT
OPERATOR I LLPWEA Annual 17 49,841.3255 52,333.3881 54,950.0544 57,697.5551 60,582.4313 63,611.5554 65,201.8433 66,831.8855 Monthly 4,153.4438 4,361.1157 4,579.1712 4,808.1296 5,048.5359 5,300.9630 5,433.4869 5,569.3238Bi‐weekly 1,916.9741 2,012.8226 2,113.4636 2,219.1367 2,330.0935 2,446.5983 2,507.7632 2,570.4571Hourly 23.9622 25.1603 26.4183 27.7392 29.1262 30.5825 31.3470 32.1307
TREATMENT PLANT
OPERATOR II LLPWEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773
TREATMENT PLANT
OPERATOR III LLPWEA Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755 TREATMENTSUPERINTENDENT UMCE Annual 25 92,252.8103 96,865.4534 101,708.7255 106,794.1670 112,133.8769 117,740.5754 120,684.0947 123,701.1921 Monthly 7,687.7342 8,072.1211 8,475.7271 8,899.5139 9,344.4897 9,811.7146 10,057.0079 10,308.4327Bi‐weekly 3,548.1850 3,725.5944 3,911.8741 4,107.4680 4,312.8414 4,528.4837 4,641.6959 4,757.7382Hourly 44.3523 46.5699 48.8984 51.3433 53.9105 56.6060 58.0212 59.4717 UTILITIES AIDE LLPWEA Annual 15 42,730.9078 44,867.4570 47,110.8299 49,466.3760 51,939.6948 54,536.6754 55,900.0913 57,297.5897 Monthly 3,560.9090 3,738.9548 3,925.9025 4,122.1980 4,328.3079 4,544.7230 4,658.3409 4,774.7991Bi‐weekly 1,643.4965 1,725.6714 1,811.9550 1,902.5529 1,997.6806 2,097.5644 2,150.0035 2,203.7534Hourly 20.5437 21.5709 22.6494 23.7819 24.9710 26.2196 26.8750 27.5469 10 of 11
CITY OF LOMA LINDA
Pay Schedule By Classification
Fiscal Year 2023/2024
Effective January 1, 2024
Revised: December 27, 2023
TITLE UNIT PAY TYPE GRADE STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8UTILITIES MAINTENANCE TECHNICIAN I LLPWEA Annual 16 46,149.3770 48,456.8474 50,879.6892 53,423.6778 56,094.8576 58,899.6041 60,372.0985 61,881.3977 Monthly 3,845.7814 4,038.0706 4,239.9741 4,451.9732 4,674.5715 4,908.3003 5,031.0082 5,156.7831Bi‐weekly 1,774.9760 1,863.7249 1,956.9111 2,054.7568 2,157.4945 2,265.3694 2,322.0038 2,380.0538Hourly 22.1872 23.2966 24.4614 25.6845 26.9687 28.3171 29.0250 29.7507
UTILITIES MAINTENANCE
TECHNICIAN II LLPWEA Annual 19 58,134.9254 61,041.6711 64,093.7516 67,298.4428 70,663.3623 74,196.5315 76,051.4481 77,952.7328 Monthly 4,844.5771 5,086.8059 5,341.1460 5,608.2036 5,888.6135 6,183.0443 6,337.6207 6,496.0611Bi‐weekly 2,235.9587 2,347.7566 2,465.1443 2,588.4016 2,717.8216 2,853.7127 2,925.0557 2,998.1820Hourly 27.9495 29.3470 30.8143 32.3550 33.9728 35.6714 36.5632 37.4773
UTILITIES MAINTENANCE
TECHNICIAN III LLPWEA Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755
UTILITIES PLANT
MAINTENANCE MECHANIC LLPWEA Annual 20 62,785.7186 65,925.0081 69,221.2554 72,682.3161 76,316.4288 80,132.2461 82,135.5507 84,188.9390 Monthly 5,232.1432 5,493.7507 5,768.4380 6,056.8597 6,359.7024 6,677.6872 6,844.6292 7,015.7449Bi‐weekly 2,414.8353 2,535.5772 2,662.3560 2,795.4737 2,935.2473 3,082.0095 3,159.0596 3,238.0361Hourly 30.1854 31.6947 33.2794 34.9434 36.6906 38.5251 39.4882 40.4755
UNIT LEGEND
Loma Linda Professional and Administrative Employees Association (LLPAEA) Loma Linda Public Works Employees Association (LLPWEA)
Loma Linda Professional Firefighters (LLPF)
Unrepresented Safety Fire Management/Confidential Employees (USFMCE) Unrepresented Miscellaneous Management/Confidential Employees (UMCE) 11 of 11
CITY OF LOMA LINDA
Approved: 11/14/2023 Group: Unrepresented
FLSA Exemption Status: Exempt DOT Participant: No