CITY OF LOMA LINDA
CITY COUNCIL AGENDA
REGULAR MEETING
Tuesday, December 10, 2024, 7:00 PM
25541 Barton Road
Loma Linda, CA 92354
The Regular Meeting of the Loma Linda City Council 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 pm. or as soon thereafter as possible. A recess may be called at the discretion of the City Council.
The Agenda and Reports are on file in the City Clerk's Office during normal business hours and are available on the City's website at www.lomlinda-ca.gov.
Persons wishing to speak on agenda items, including any closed session items, are asked to submit their names in the Kiosk or through the website. When the item is to be considered, the Mayor will recognize you. Please step to the podium, give your name, and offer your comments. The City Council meetings are recorded to assist in preparing the Minutes.
Under the Americans with Disabilities Act (ADA), if you need special assistance to provide public comment, or for other special assistance; please contact the City Clerk at least 48 hours before the meeting at (909) 799-2819 or at [email protected] to allow the City time to make reasonable arrangements to provide the accommodations or an alternative.
1. Call to Order
1A. Call to Order
1B. Roll Call
1C. Workshop - Community Room @ 5:30 pm - Audit Committee - Audit Report for Fiscal Year 2023-2024 1D. Invocation and Pledge of Allegiance - Councilmember Rigsby 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 2023/2024 [Finance] — Receive and File Annual Comprehensive Financial Report
3. Consent Calendar
3A. Demands Registers - November 12, and December 10, 2024 [Finance] — Approve the demands for payment
3B. Approval of Minutes November 12, 2024 [City Clerk]
3C. Treasurer's Report - November 2024 [Finance]
— Accept for Filing
3D. Fire Department's Activity Report - November 2024 [Fire] — Accept for Filing
3E. Request from Two Canyons Conservancy to Waive the Planning Application Fees for the Frink Adobe Historical Preserve Project [Community Development]
— Approve the request to waive the Planning application fees 3F. Council Bill #R-2024-40 - Cal OES Designation of Applicant's Agent Resolution– Hazard Mitigation Grant Program and Pre-Disaster Mitigation Program [Fire] — Adopt Council Bill #R-2024-40
3G. Authorization to apply for the Emergency Management Performance Grant (EMPG) FY 24-25 [Fire] — Authorize the Fire Department to apply for and appropriate the revenue from the Grant 3H. Community Development Block Grant (CDBG) Project Prioritization for Fiscal Year 2025-2026 [Public Works]
— Approve the proposed Public Service Projects and Construction Improvement projects for the FY 2025-2026 CDBG Program
3I. Council Bill #R-2024-41 - A Resolution Establishing the New Salary Table for Employees Effective January 1, 2025 [Human Resources]
— Adopt Council Bill #R-2024-41
4. Old Business
4A. Status Update on the Revenue-Generating Ad hoc Committee [Councilmember Spencer-Hwang] — Report by Councilmember Spencer-Hwang
5. New Business
6. Reports
6A. Reports of Council Members
6B. Reports Of Officers
7. Adjournment
Date Posted: December 5, 2024
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: 1) Loma Linda Branch Library, 25581 Barton Road, Loma Linda, California; 2) City Council Chambers, 25541 Barton Road, Loma Linda, California; 3) U. S. Post Office Annex, Newport Avenue, Loma Linda, California
Lynette Arreola, City Clerk
City of Loma Linda, California
City of Loma Linda
Regular City Council Staff Report
A. Joint meeting of the City Council and Housing Authority regarding presentation of Annual Comprehensive Financial Report for FY 2023/2024 [Finance]
Meeting
Tuesday, December 10, 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
Presentation by Rogers, Anderson, Malody & Scott (RAMS) and Finance.
Attachments
Annual Comprehensive Financial Report for Fiscal Year 2023-2024 Report on Internal Controls Over Financial Reporting And On Compliance Fiscal Year 2023-2024 Post-Audit Communication Letter Fiscal Year 2023-2024
Annual Comprehensive
Financial Report
Heritage Park
Art in Public Places
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
CITY OF LOMA LINDA, CALIFORNIA
For the Fiscal Year Ended June 30, 2024
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, 2024
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, 2024
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 ..................................................... 95 Nonmajor Governmental Fund Financial Statements:
Combining Balance Sheet .............................................................................................. 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ..... 106 Nonmajor Governmental Budgetary Comparison Schedules:
Nonmajor Governmental Funds – Special Revenue Funds:
Traffic Safety ............................................................................................................. 113 Gas Tax ..................................................................................................................... 114 Accessibility Compliance ........................................................................................... 115 Measure I .................................................................................................................. 116 Measure I MSART ..................................................................................................... 117 Street Lighting District ............................................................................................... 118 Landscape Maintenance District ............................................................................... 119 Air Quality Management District ................................................................................ 120 Public Improvements Per MOU ................................................................................. 121 Community Development Block Grant ...................................................................... 122 Grant Fund ................................................................................................................ 123 Citizens Option for Public Safety ............................................................................... 124 Traffic Congestion Relief Fund .................................................................................. 125 Development Agreement Consideration ................................................................... 126 Nonmajor Governmental Funds – Capital Projects Funds:
Park Development Capital Projects Fund ................................................................. 127 Storm Drain ............................................................................................................... 128 Traffic Impact ............................................................................................................ 129 Fire Facilities ............................................................................................................. 130 General Facilities ...................................................................................................... 131 Federal/State Construction ....................................................................................... 132 Public Meeting Facilities ............................................................................................ 133 Public Library Facilities ............................................................................................. 134 Art in Public Places ................................................................................................... 135 Capital Projects Bond Proceeds ............................................................................... 136
CITY OF LOMA LINDA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Supplementary Information:
Nonmajor Governmental Funds – Debt Service Funds:
Loma Linda Financing Authority ................................................................................ 137
STATISTICAL SECTION (UNAUDITED)
Net Position by Component ............................................................................................... 139 Changes in Net Position .................................................................................................... 141 Governmental Activities Tax and Assessments Revenues by Source .............................. 145 Fund Balances of Governmental Funds ............................................................................ 146 Changes in Fund Balances of Governmental Funds ......................................................... 148 General Fund Tax Revenues by Source ............................................................................ 150 Top 25 Sales Tax Producers ............................................................................................. 151 Taxable Sales by Category ................................................................................................ 153 Assessed Value and Estimated Actual Value of Taxable Property .................................... 154 Direct and Overlapping Property Tax Rate ........................................................................ 155 Principal Property Taxpayers ............................................................................................. 156 Property Tax Levies and Collections ................................................................................. 157 Ratios of Outstanding Debt by Type .................................................................................. 158 Ratios of General Bonded Debt Outstanding ..................................................................... 159 Direct and Overlapping Governmental Activities Debt ....................................................... 160 Computation of Legal Debt Margin .................................................................................... 161 Pledged Revenue Coverage .............................................................................................. 163 Demographic and Economic Statistics .............................................................................. 164 Principal Employers ........................................................................................................... 165 Full-Time Equivalent City Government Employees by Function ........................................ 166 Operating Indicators by Function ....................................................................................... 167 Capital Asset Statistics by Function ................................................................................... 168 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 L
December 4, 2024
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, 2024. 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, 2024. 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 12,017 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 2008 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, 2024 Annual Comprehensive Financial Report
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Loma Linda covers an area of 8.95 square miles and has a resident population of 24,965, as certified by the State Department of Finance, as of June 30, 2024. The City has decreased by 263 residents from the previous year. Loma Linda’s median income is $70,685, which is 8.7% lower 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 263 to the City’s
population of its current total of 24,965 as of
June 30, 2024 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
15 16 17 18 19 20 21 22 23 24
FY Ending June 30th
City of Loma Linda
Population History
City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
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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 2023/2024 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 2023/2024 Fiscal Year, the City’s Community Development Department, which is comprised of the Planning and Building and Safety Divisions, has achieved numerous commendable accomplishments. Throughout the fiscal year, Building staff continued to outperform in 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 addition to handling a surge in permits, the Community Development Department successfully completed various notable development activities over the past year, including:
x Issuance of building permits for the Courtyard by Marriott Hotel, expected to be completed by end of calendar year 2024.
x Initiation of construction for the 103 detached condominiums project and the 51-lot subdivision, which includes the expansion of the historic Frink Adobe site. x Approval of a 9-lot subdivision, which will feature one primary residence and an accessory dwelling unit per lot.
x Completion of the Canyon Ranch annexation, including the subdivision of 126 residential lots, now officially within Loma Linda jurisdiction, promising to expand housing opportunities within the community.
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June 30, 2024 Annual Comprehensive Financial Report
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The Department also carried out code amendments to prepare for new state housing laws, including a new ordinance for reasonable accommodations and an ordinance to allow housing projects with at least 20% affordable units be streamlined for processing. Additionally, the Housing Element received the coveted state certification, and staff has begun community engagement for the new Environmental Justice Element.
At the beginning of the calendar year, the Community Development Department implemented a new online permitting software system. 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.
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 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 2023/2024:
x 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 state mandated occupancies throughout the community.
x Disaster Preparedness Division produced a Gap Analysis, and Strategic Plan to help create a framework for future needs of the City. Emergency Management Preparedness Grant (EMPG) training project was awarded to the City. This will help to increase resiliency in the community through equipment purchases and training of City staff. x Code Enforcement and Animal Control continued to provide services in the community.
The team worked in partnership with community members to preserve and enhance our community's safety, appearance, and economic stability. x 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.
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June 30, 2024 Annual Comprehensive Financial Report
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x 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 closed the project regarding 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 was completed by the 2023- 2024 fiscal year as expected. This update has provided modern recording and streaming functions, video conferencing, a modern voting solution, greater public interaction tools, and more meeting control options to the City Clerk.
The Information Systems department overhauled its Wi-Fi network. This overhaul entailed replacing all previous units with new wireless access points. The new wireless access points have modern security protocols, and will extend the city’s wireless internet reliability and stability into the future.
A new data repository was implemented for the city’s data protection. This new network attached storage was placed in a secure offsite location within city limits to ensure data continuity in the event of failure of other data repositories or disaster event in the data center.
A switch was implemented for the city’s virtual server farm to improve security and performance amongst all city’s hosted resources. This switch is a high speed 100gb switch which interconnects city’s servers to each other and their resources. This high speed device ensures high functionality and performance for the city’s IS resources into the future.
The city implemented an endpoint management and mobile device management software. This software allows better visibility, control, security, and for the city to deploy new devices and software with ease.
The city migrated to a new Security Operation Center (SOC) for cyber security services. This migrated the city from its previous SOC to a new SOC, and that SOC into the city’s network for security scanning, monitoring, patching, and remediating. This allows for better coverage and preparation for known and unknown issues, faults, and threats.
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 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 City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
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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 2023/2024, the Loma Linda Housing Authority operated programs, including ongoing monitoring and enforcement of affordability covenants, leases, and agreements related to housing matters as previously entered into by the Redevelopment Agency and similar contracts as entered into by the Loma Linda Housing Authority. Units that are monitored for ongoing affordability include 49 single-family ownership units (26 mortgages held by the Loma Linda Housing Authority and 23 down-payment assistance loans) and 238 privately-owned rental units (most of which are operated under ground leases made by the Redevelopment Agency, which the Loma Linda Housing Authority has assumed). The Loma Linda Housing Authority actively manages the loans and/or the properties. One property in the Affordable Housing Program with a mortgage loan by the Loma Linda Housing Authority was sold to an eligible and qualifying family.
Under the Affordable Housing Agreements and its amendments, the Loma Linda Housing Authority is in agreement with:
1) Mary Erickson Community Housing (“MECH”), a non-profit affordable housing developer.
MECH continues to monitor the affordability covenants of Loma Sierra Apartments (24 units), City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
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four units on San Mateo Drive and four single-family homes on Juanita Street, which are all subject to long-term affordability covenants;
a) The Solar Voltaic System at Loma Sierra is up and functioning during this period. This provides direct benefit to our Residents and some small benefit to Mary Erickson Community Housing for house lights. Funding was provided through the State SOMAH program to cover the cost.
b) One of the two Residents at San Mateo who had been grandfathered in as a part of our Agreement and was therefore not income restricted has moved. This allows us to place an income qualifying household into that unit.
c) No updates on the Juanita homeowners. Two of the four installed solar through a partnership that we had with GRID Alternatives at no cost to the homebuyers or MECH in 2022.
2) Corporation for Better Housing, a non-profit affordable housing developer. Corporation for Better Housing continues to monitor the affordability covenants of Poplar Street Apartments, 10777 Poplar St. (43 units); Loma Linda Commons Apartments, 10799 Poplar St. (119 units); and Loma Linda Terrace Apartments, 10846 Poplar St. (49 units), which are all subject to long-term affordability covenants.
The City's housing consultant conducted affordability compliance audits for several affordable housing complexes for the 2021 Certificate Year. The audit covered multiple properties, all managed by different organizations. Detailed reports, including summaries, findings, and recommendations, were prepared for each facility and shared with both City staff and property managers.
Economic Development
Under the guidance of the City Manager’s Office and Community Development team, the Economic Development Department has fostered a substantial pipeline of private development projects and new businesses moving into Loma Linda. Approximately 50 use permits were issued last year, along with 37 home occupation permits for residents. This activity indicates strong economic interest and growth in the city.
Staff recently prepared a map for interested developers, highlighting available and vacant sites, as well as sites suitable for redevelopment. In addition, staff is working on business-friendly code amendments to make it easier for businesses to move into town and operate with fewer restrictions. These projects demonstrate Loma Linda’s dedication to enhancing its economic landscape and overall community well-being.
The Department has been leading various initiatives to promote and enhance the city’s appeal to potential investors and residents. Notably, the initiation of a video production project showcases the exceptional attributes of our city. These videos play a pivotal role in attracting investors and fostering economic growth within our community. Staff is also working on a decorative street banner program, funded and spearheaded by an outside company.
Moreover, the department has established the city’s inaugural social media presence. This growing platform serves as a powerful tool to amplify the city’s diverse range of events and success stories, bolstering its overall image and driving further engagement with residents and potential visitors. This forward-thinking approach promises to make a significant impact on our local economy.
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Capital Improvement Program (CIP) Projects:
Public Works
During the 2023/2024 fiscal year, the Public Works Department completed or continued with the following projects: pavement rehabilitation on Miramonte St., Chula Vista St., Lomas Verdes St., Juniper St., Amapolas St., Oak St., Myrtle St., Van Leuven St., Via Capri St., Via Lagos St., Via Rio St., Via Norte St., Via Lido St., Via Oro St., Newport Ave., Mariposa St., Hinckley St., Hudson St., Davis Wy., Kellogg St., Martin St., Emmerson St., Lozano Pl., Largo Ct., Nelson St., Chapman St., Gardner St., Reynolds St., Brentwood Ave., Bancroft St., Brookmere Ave., Butterfield St., Beverly Ct.; Install traffic signal at California St. and Citrus St.; Install 1.6 million gallon water reservoir; Install waterline at Beaumont Ave and Campus St; Replace pressure reducing valve at Mt. View Ave. and Huron St.; Installed generator at City Hall; Repaired sidewalks and ADA access ramps at various locations; 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 2024, the median price of a home in Loma Linda
was $610,000 an increase of $35,000 or 6.1%, from
$575,000 in 2023, 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
2024. 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
$800,000
15 16 17 18 19 20 21 22 23 24
FY Ending June 30th
City of Loma Linda
Median Housing Prices
City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
L[
The Sales Tax History chart is a ten year
historical presentation of the City’s sales
tax revenue through fiscal year ending
June 30, 2024. In 2024, the City received
$7,112,227. This is an increase of 20.4% or
$1,206,421 from $5,905,806 in fiscal year
2023. The net sales tax increase is due to
slightly higher collections compared to the
prior year by $220,000 or 2.4% and a
reduction in the sales tax incentive
primarily for one of the top producers by
$1,008,250.
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, 2024. 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, 2024,
property tax revenues were reported at
$2,890,058, a net increase of $178,552 or 6.6%
from fiscal year 2023. Property tax revenue is
reported in the attached Statistical table on pages 141-170.
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, 2024, the San Bernardino County’s Assessor reported an increase in city wide assessed property values of
7.16%, with Loma Linda showing a 6.65% 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 slowed down and it’s evident in the 21.6% decrease in property transfer tax from $72,412 in 2023 to $56,806 in 2024. 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
15 16 17 18 19 20 21 22 23 24
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
15 16 17 18 19 20 21 22 23 24
FY Ending June 30th
City of Loma Linda
Sales Tax History
City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
[
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 2014/2015. In
fiscal year 2023/2024, the City collected
$3,142,433 in VLF revenue, an increase of $199,276 or 6.8% due to an increase in property values within the City.
Water Operations
For Water Operations specifically, the Water
fund had an operating deficit in the amount of
$769,723 this year. Last year the Water fund
showed an operating deficit of $2,345,649 for
the year. As previously mentioned, expenses
decreased from prior year due to decrease in
pension-related accounting adjustment. Note
that the chart to the right does include any
“non-operating” revenues or expenses, such
as interest revenue of $291,724, transfers in
of $5,989,343, capital contributions of
$351,489 interest expense of $120,709 and
transfer out of $22,922. Interest expense in
the Water Fund has decreased to $120,709
from $130,140 in 2023 which constitutes a 7.8% decrease due to interest amortizing on a lower principal balance. More information on the 2016 Water Revenue Refunding Bonds can be found on page 61 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 on June 1, 2024 and will subsequently increase each January until 2028. $(5)
$-
$5
$10
$15
15 16 17 18 19 20 21 22 23 24
FY Ending June 30th
City of Loma Linda
Water Operations Fund History
(in millions)
Revenue
Expense
Net change
in net
position
City of Loma Linda
Vehicle License Fee (VLF)
Revenue History
-$500,000
$500,000
$1,500,000
$2,500,000
$3,500,000
15161718192021
2223
24 FY Ending June 30th
City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
[L
Sewer Operations
For the operating period ending
June 30, 2024, the Sewer Fund
ended the year with an operating
change in net position of $316,622.
Sewer revenues increased by
$393,548, or 6.6%, and operating
expenses increased by $21,192 or
0.40%. Similar to the Water Fund,
expenses for the sewer fund
decreased due to the decrease in
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. The study determined that current sewer revenues will be sufficient for the next five years and therefore no sewer rate increases were deemed necessary. However, potential rate increases in treatment costs from San Bernardino could occur, which would be a pass-through cost to the City.
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 2023/2024 was the twentieth full year of operations. For the operating period ending June 30, 2024, LLCCP ended the year with operating revenues of $329,202 compared to $323,032 in 2022/2023. Operating expenses of $463,430 are $72,439 or 13.5% less than expenses for fiscal year 2022/2023. Expenses for the LLCCP fund decreased due to the decrease in pension-related accounting adjustment. The operating deficit in net position for the LLCCP fund was $134,228. Additionally, net non-operating expenses, interest revenue and interest expense, is slightly
lower due to higher interest revenue.
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 tenyear financial operating history of the Loma Linda Connected Communities Program
Fund. Note that this chart does not include
“non-operating” revenues or expenses (i.e.,
($1)
$0
$1
$2
$3
$4
$5
$6
$7
15 16 17 18 19 20 21 22 23 24
FY Ending June 30th
City of Loma Linda
Sewer Enterprise History
(in millions)
Revenue
Expense
Operating
change in net
position
Ͳ$400,000
Ͳ$200,000
$0
$200,000
$400,000
$600,000
$800,000
15 16 17 18 19 20 21 22 23 24
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, 2024 Annual Comprehensive Financial Report
[LL
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 $1,262,594 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, 2023, therefore payments made to reduce the UAL are reclassified to Deferred Outflows of Resources in the government-wide statements. In fiscal year 2023/2024, the “City’s” share of retirement costs changed for Miscellaneous employees from 10.870% to 12.47%, for Miscellaneous PEPRA from 7.470% to
7.680%, for Safety plan from 21.840% to 24.15% and for Safety PEPRA from 12.780% to 13.54%.
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.
DEBT ADMINISTRATION
As of June 30, 2024, the City had bond debt outstanding in the amount of $4,010,000. 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. Additional information regarding long-term liabilities is presented in Note 6. 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, 2024 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, 2024, 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.
City of Loma Linda
June 30, 2024 Annual Comprehensive Financial Report
[LLL
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, 2023. This was the twentieth 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.
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
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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, 2023
Executive Director/CEO
[Y
-xviCITY OF LOMA LINDA
PRINCIPAL OFFICIALS
ELECTED OFFICIALS
Phill Dupper
Mayor
Ron Dailey Rhodes Rigsby
Mayor pro tempore Councilmember
Rhonda Spencer-Hwang Ovidiu Popescu
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
CITY OF LOMA LINDA
ORGANIZATION CHART
DEPT.
FINANCE ADMINISTRATION
DEPT. DEPT.
FIRE COMMUNITY DEVELOPMENT
DEPT.
PUBLIC WORKS
DEPT.
CITY CLERK
DEPT. SYSTEMS
INFORMATION
DEPT.
The People of Loma Linda
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
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Agency Members: Rhodes Rigsby,
Rhonda Spencer-Hwang,
T. Jarb Thaipejr
City Manager
Community
Development Director City Manager T. Jarb Thaipejr City Manager T. Jarb Thaipejr Lorena Matarrita Ovidiu Popescu
Chairman: Phill Dupper
Mayor pro tempore: Ron Dailey
Authority Members: Rhodes Rigsby,
Rhonda Spencer-Hwang,
Ovidiu Popescu
Mayor: Phill Dupper
Mayor pro tempore: Ron Dailey
Council Members: Rhodes Rigsby,
Rhonda Spencer-Hwang,
Ovidiu Popescu
Chairman: Phill Dupper
Mayor pro tempore: Ron Dailey
Authority Members: Rhodes Rigsby,
Rhonda Spencer-Hwang,
Ovidiu Popescu
LOMA LINDA HOUSING AUTHORITY CITY COUNCIL FINANCING AUTHORITY LOMA LINDA
REDEVELOPMENT SUCCESSOR AGENCY
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
HUMAN RESOURCES
RISK MANAGEMENT
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
SYSTEM SUPPORT FINANCIAL REPORTING
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
[YLL
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-1-
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Loma Linda
Loma Linda, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Loma Linda, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, 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 (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
-2-
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.
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, 2024, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. 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:
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x 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.
x 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.
x 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.
x 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.
-3-
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for the purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. -4-
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2024 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 4, 2024
-5-
MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Loma Linda’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2024. Please read it in conjunction with the accompanying transmittal letter and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
x 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 $165,017,785 (net position); of this amount $133,683,950 is from governmental activities and $31,333,835 is from business-type activities, with $20,487,539 positive and $13,857,693 in negative unrestricted net position, respectively. x In the Government-Wide – Statement of Activities: The City’s net position increased
1.18% or $1,919,553 from the $163,098,232 at the beginning of the year to $165,017,785 at the end of the year. The increase is the net result of a positive change of $2,291,121 in governmental activities and a negative change of $371,568 in businesstype activities. x In the Government-Wide – Statement of Activities: During the current year, Governmental activities program revenues decreased by $10,111,934, due to a net decrease in combined operating/capital contributions and grants of $12,543,009, offset by an increase in charges for services of $2,431,075. In the previous fiscal year, the City reported the final allocation of the American Rescue Plan Act (ARPA) federal COVID relief fund of $2,928,307, and received substantial capital asset contributions (donated infrastructure) from developers for the Citrus Trails development. There were no comparable operating or capital contributions during 2024. The increase in charges for services is due to higher developer impact fees from new housing developments, higher overhead from large capital projects, increased building permit, inspection and plan check fees, increased refuse collection, and a decrease in refunds and reimbursements primarily from Mutual Aid due to fewer large fire incident activities in fiscal year 2024.
Business-type program revenues decreased by a net of $1,370,986 primarily due to lower capital contributions from donated infrastructure offset by increase in charges for services.
x 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 $1,938,696. This resulted from higher revenues over expenditures amounting to $766,264, plus other financing sources of $1,172,432. The increase in revenues is primarily due to lower sales tax incentive, higher charges for services, and higher interest earnings. Spending increased at a slower rate compared to the revenue increase due to no required PERS unfunded accrued liability contribution in 2024 and a decrease in overtime due to fewer large fire incidents after a wet winter in 2023. x The City’s net pension liability increased from $8,525,331 to $10,174,817 as of June 30, 2024, which was a $1,649,486 or 19.3% increase compared to the prior fiscal year. The increase in net pension liability reflects the recognition of actuarial estimated future costs related to pension retirement.
-6-
x In the Required Supplementary Information – Budgetary Comparison Schedule: For the General Fund, the actual revenues available for appropriation were higher than the final budget by $695,554 while actual expenditures were $1,358,510 less than the final budget. Actual other financing sources, net, were $399,832 more than the final budget, resulting in a positive $2,453,896 net change in budgetary variance and an actual increase in fund balance of $1,938,696.
x In the 2023/2024 Adopted Budget – the City Council and management annually make great efforts to adopt a balanced budget that preserves General Fund - fund balance.
The City Council adopted a General Fund budget projecting a positive change in net position of $146,400. After budget amendments and supplemental appropriations, the final budget projected a negative change of $515,200. Despite the projected negative change in fund balance, the General Fund maintains a solid financial position with $2,000,000 in committed funds (emergency contingency) and $1,250,000 in assigned funds (capital equipment replacement). In the adopted budget for fiscal year 2023/2024, the committed fund balance represents 7.35% of the General Fund annual budget.
USING THIS ANNUAL REPORT
The discussion and analysis is intended to serve as an introduction to the City of Loma Linda’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
The government-wide statements provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. These statements consist of the statement of net position and statement of activities.
The fund financial statements, which consist of the governmental funds, proprietary funds and fiduciary funds, report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant (major) funds. The governmental fund statements also tell how City services were financed in the short term as well as what remains for future spending. The proprietary funds statements use the same accounting method as the business-type activities, but provide more detail of the activities. The fiduciary fund statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
Reporting the City as a Whole
The Government-Wide Financial Statements
One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of this year’s activities?” The statement of net position and the statement of activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and changes in it. The reader can think of the City’s net position - the difference between assets, deferred outflows of resources, deferred inflows of resources and liabilities - as one way to measure the City’s financial health. Over -7-
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:
x 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 59% of these activities.
x 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. x 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-one 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; which are considered to be major funds. The remaining twenty-seven nonmajor funds are combined and presented in the nonmajor governmental funds column. The Park Development Fund was presented as a major fund in previous years, but identified as a nonmajor fund in fiscal year 2024. Individual fund detail for the nonmajor funds is presented in the combining statements located on pages 100-113 of this report.
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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 30-33.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain amounts held in custodial funds on behalf of 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 35.
Fiduciary Fund - Private Purpose Trust Fund - The City acting as Successor Agency to the Former Loma Linda Redevelopment Agency (Successor Agency) is the trustee, or fiduciary, for amounts held on behalf of bond holders, enforceable obligations, and taxing entities. The City’s fiduciary activities are reported in separate statement of private purpose trust fund net position and changes in net position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City acting as the Successor Agency is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The statement of private purpose trust fund net position can be found on page 36.
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 36-87 of this report.
Required supplementary information - The budget and budgetary accounting and postemployment benefit plans information can be found on pages 88-95 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, 2024 and 2023.
2024 2023 2024 2023 2024 2023
$ 74,719,687 80,756,550 $ 12,646,419 $ 16,482,502 $ 93,402,969 $ 91,202,189 $ 66,660,26 67,374,089 48,798,274 5 43,035,350 116,172,36 109,695,61 3 5 148,130,639 141,379,952 61,444,693 59,517,852 209,575,332 200,897,804 Deferred Outflow of Resources
Pension & OPEB 5,144,94 0 6,668,852 1,734,623 2,513,212 6,879,563 9,182,064 7,729,072 9,465,936 26,413,096 25,937,278 35,879,032 33,666,350 3,247,153 5,196,066 3,685,910 2,409,230 8,881,976 5,656,383 14,662,002 10,976,225 30,099,006 28,346,508 44,761,008 39,322,733 Deferred Inflow of Resources
Pension, OPEB & Leases 4,929,627 5,679,750 1,746,475 1,979,153 6,676,102 7,658,903 Net Invested in Capital Assets 66,560,428 67,010,163 44,485,017 38,657,337 111,495,180 105,217,765 Restricted 46,186,248 43,785,591 706,511 691,514 46,892,759 44,477,10 5 Unrestricted 20,487,539 21,046,810 (13,857,693) (7,643,448) 6,629,846 13,403,362 $ 133,683,950 131,392,829 $ 31,333,835 $ 31,705,403 $ 165,017,785 $ 163,098,232 $ Table 1
City of Loma Linda's Net Position
Current and other assets
Capital assets
Governmental Activities Business-Type Activities Total
Total Assets
Long-term liabilities
Other liabilities
Total Liabilities
Net Position:
Total Net Position
During fiscal year 2024, the net position of government-wide activities increased by $1,919,553 or 1.18% from $163,098,232 in 2023 to $165,017,785 in 2024, where $2,291,121 relates to the increase in governmental activities, and $371,568 to the decrease in business-type activities.
For governmental activities, the net position increase of $2,291,121 is the result of a $6,750,687 increase in total assets, offset by a $3,685,777 increase in total liabilities, contributing to a gain in net position of $3,064,910. This positive impact was further improved by a $750,123 decrease in lease-related, pension & OPEB deferred inflows, and partially offset by a $1,523,912 decrease in pension & OPEB deferred outflows contributing to a net decrease in net position of $773,789. For the business-type activities, the net position decreased by $371,568 or 1.17% due to an increase in total assets and total liabilities for a net positive change of $174,343, improved by a $232,678 decrease in lease-related, pension & OPEB deferred inflows, and offset by a $778,589 decrease in pension & OPEB deferred outflows. Further detail on prior year comparisons is provided in Table 2.
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As shown in Table 2, the change in net position is a positive $2,291,121 for governmental activities and a negative $371,568 for business-type activities, with a combined total increase in net position of $1,919,553 for the fiscal year ending June 30, 2024. 2024 2023 2024 2023 2024 2023
$ 9,462,788 11,893,863 $ 13,714,899 $ 13,256,508 $ 25,608,762 $ 22,719,296 $ 3,973,992 1,350,353 - - 1,350,353 3,973,992
12,481,660 2,562,290 945,458 2,774,835 3,507,748 15,256,495 12,055,279 13,566,338 - - 13,566,338 12,055,279
2,943,157 3,142,433 - - 3,142,433 2,943,157
1,463,744 2,841,791 703,425 278,367 3,545,216 1,742,111 78,144 22,114 803,437 590,993 825,551 669,137
42,458,764 35,379,182 16,167,219 16,900,703 51,546,401 59,359,467 3,310,972 2,765,554 - - 2,765,554 3,310,972
20,947,648 19,028,767 - - 19,028,767 20,947,648
3,841,626 3,501,151 - - 3,501,151 3,841,626
7,867,724 7,820,046 - - 7,820,046 7,867,724
2,995 4,546 - - 4,546 2,995
- - 1,268,450 177,556 1,268,450 177,556
- - 8,205,930 9,683,633 8,205,930 9,683,633
- - 6,007,093 5,986,152 6,007,093 5,986,152
- - 1,025,311 1,097,751 1,025,311 1,097,751
35,970,965 33,120,064 16,506,784 16,945,092 49,626,848 52,916,057 Changes in Net Position before
6,487,799 2,259,118 (339,565) (44,389) 1,919,553 6,443,410 Transfers 32,003 40,370 (32,003) (40,370) - -
6,528,169 2,291,121 (371,568) (84,759) 1,919,553 6,443,410 NetPosition atBeginning ofYear 124,864,660 131,392,829 31,705,403 31,790,162 163,098,232 156,654,822 Net Position at End of Year $ 131,392,829 133,683,950 $ 31,333,835 $ 31,705,403 $ 165,017,785 $ 163,098,232 $ 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
Total revenues for governmental activities decreased by $7,079,582 from 2023 to 2024. This was due to a net decrease in governmental activity program revenue of $10,111,934 and an increase in the governmental activity general revenue of $3,032,352. The change in governmental activity program revenue includes 1) an increase in charges for services of $2,431,075, 2) decrease in operating grants and contributions of $2,623,639, and 3) a decrease in capital grants and contributions of $9,919,370. The increase in charges for services was due to a combination of increased developer impact fees associated with new housing developments, increased overhead charges, offset by a decrease in refunds and reimbursements. The decrease in operating grants and contributions reflects the impact of the final grant allocation from the American Rescue Plan Act of 2021 (ARPA) funding in the amount of $2,928,307 received in 2023. The decrease in capital grants and contributions was primarily -11-
due to a substantial donated infrastructure from developers for the Citrus Trails area in the previous year, with no comparable donation in 2024.
The increase in governmental activity general revenue is due to higher taxes of $1,511,059, Motor Vehicle in Lieu/Intergovernmental of $199,276, and investment revenue of $1,378,047; offset by other general revenues in the amount of $56,030. The increase in governmental activity general taxes was from increases in: 1) sales tax of $1,206,421, 2) property tax of $177,497, 3) transient occupancy tax of $34,594, 4) franchise tax of $119,471, 5) other taxes of $2,832; offset by a decrease in business license tax of $29,756. The net sales tax increase is due to slightly higher collections compared to the prior year by $220,000 or 2.4% and a reduction in the sales tax incentive primarily for one of the top producers by $1,008,250. This was due to a delay in sales tax revenue collection in the third quarter and a $371,000 audit adjustment in the fourth quarter for a major sales tax producer. The increase in investment revenue is due to higher average yields and investment balances.
Total revenue for business-type activities decreased by $733,484 from fiscal year 2023. This was due to a $1,370,986 decrease in program revenue, partially offset by a $637,502 increase in general revenue. The reduction in program revenues was mainly due to larger infrastructure donations from developers in the prior year compared to the current year. The increase in general revenue was due to higher investment revenue resulting from a higher average yield on investment and a larger average deposit balance.
Governmental activity program expenses decreased by $2,850,901 compared to the prior year, mostly due to accounting adjustments from Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. Current year accounting adjustments increased pension expenses by $2,732,532, while prior year adjustments had a larger increase of $6,229,152. Note that these GASB adjustments do not impact cash flow or contribution rates. Business-type activities experienced a decrease in expenses of $438,308 primarily due to these pension expense accounting adjustments. Current year adjustments increased pension expense by $788,803 compared to $2,628,258 in the prior year. These favorable pension expense adjustments were offset by higher operating expenses for the Water Acquisition fund associated with the installation of the 1.6 million gallon reservoir.
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.
2024 2023 Change 2024 2023 Change
Functions:
General government 2,765,554 $ 3,310,972 $ (545,418) $ (1,035,309) $ 495,419 $ (1,530,728) $ Public safety 19,028,767 20,947,648 (1,918,881) 14,799,899 13,650,716 1,149,183 Community development 3,501,151 3,841,626 (340,475) 1,994,006 (2,463,760) 4,457,766 Public works 7,820,046 7,867,724 (47,678) 1,550,416 (1,632,845) 3,183,261 Interest on long-term debt 4,546 2,995 1,551 4,546 2,995 1,551 Total Governmental Activities $33,120,064 35,970,965 $ (2,850,901) $ 17,313,558 $ 10,052,525 $ 7,261,033 $ Total Cost Net Cost
Net Cost of Governmental Activities
City of Loma Linda
Table 3
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In looking at table 3, you will note the major changes both in total cost and net cost. In 2024, total costs decreased by $2,850,901 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 $65,656,819, a net increase of $4,976,958 in fund balance; included in this amount are increases in fund balance for General Fund of $1,938,696, an increase in the Housing Authority of $143,139, an increase in the Special Projects Construction Fund of $1,210,161, an increase in the Regional Traffic Development Impact Fund of $884,810, and a increase in the Non Major Governmental Funds of $800,152. Note that the Park Development Fund was presented as a major fund in previous years, but identified as a nonmajor fund in fiscal year 2024. Due to this change, the beginning fund balance for nonmajor funds was restated from $7,465,423 to $5,026,099.
The General Fund had a net increase in fund balance of $1,938,696, resulting from net revenues exceeding expenditures by $766,264, netted with total other financing sources of $1,172,432. Revenue increases were in taxes of $1,513,807, use of money and property of $609,537, charges for services of $557,070, intergovernmental revenue of $148,075, licenses and permits of $115,434 and miscellaneous revenue of $166,572. Tax revenues increased by $1,513,807 due to increases in: sales tax net of abatements by $1,224,655, property tax revenue by $162,945, franchise fees by $119,471, transient occupancy tax by $34,593; offset by decrease in business license tax by $30,690. The net increase in sales tax is due to slightly higher collections compared to the prior year by $220,000 or 2.4%, and a reduction in the sales tax incentive primarily for one of the top producers by $1,008,250. This was due to a delay in sales tax revenue collection in the third quarter and a $371,000 audit adjustment in the fourth quarter for a major sales tax producer. The increase in use of money and property is primarily due to investment revenue resulting from higher interest earnings by $353,320, and favorable mark-to-market value adjustment in the City’s investments in the amount of $294,188. Charges for services increased by $557,070 due to higher engineering inspection, plan check and planning fees associated with development-related activities in the City and higher refuse passthru fees. Intergovernmental revenue increased by $148,075 mainly due to increase in VLF revenue associated with increase in property values within the City. General Fund expenditures rose by $965,445 compared to the previous year. This increase includes a rise of $271,904 in current expenditures and an increase of $674,804 in capital expenditures. The rise in current expenditures can be attributed to several factors: an additional $495,214 allocated for Public Safety, covering the Sheriff service contract and general services agreements; an increase of $858,366 in salaries and benefits for personnel, including cost-of-living adjustments; offset by a decrease of $659,172 in pension expenditures for the PERS unfunded accrued liability, as no contribution is required in 2024 due to favorable CalPERS investment returns in 2021.
Additionally, there was a $586,450 reduction in overtime costs, attributed to fewer fire incidents following a wet winter in 2023, along with increases in professional services and utilities of $53,815 and $64,977, respectively.
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 use of money and property was slightly higher from prior year. The increase in Non-Major Funds is due to current year revenues from developer fees and interest earnings exceeded capital expenditures primarily for the Park Development, Fire Facilities and Public Meeting Facilities funds.
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The Proprietary Funds reported an overall decrease in net position of $371,568. The Water Enterprise and Sewer Capital Funds showed positive changes, while the Water Acquisition and Connected Communities Funds reported negative net changes. The Water Enterprise's net position rose by $5,808,675, despite ongoing operating expenses surpassing operating revenue by $769,723. This was partially balanced by $260,488 in net non-operating revenues and $6,317,910 in transfers and capital contributions. Lower water sales resulting from reduced water demand compared to the prior year further impacted the operating deficit. The transfers in for capital contributions totaling $5,989,343 in the Water Enterprise fund has a corresponding transfers out in the Water Acquisition fund contributing to the Water Acquisition fund’s $6,576,618 net position decrease. Rate adjustments have been adopted and efforts to manage overall expenses continue. The Sewer Fund’s net position increased by $672,542, with current revenues exceeded operating expenses by $316,622. The Loma Linda Connected Communities Fund reported a negative change in fund balance of $276,167 which reflects the ongoing operational gap between charges for services (revenues), operating expenses and interest expenses. Efforts to reduce operational expenses have been implemented, but annual depreciation expense and non-operational expenses (interest on loans) continue to exceed revenues adding to the negative net position.
General Fund Budgetary Highlights
The actual revenues of the General Fund at year-end were $695,554 more than the actual revenues. The positive budget-to-actual expenditure variance of $1,358,510 or 4.99% in appropriations was due to the conservative spending city-wide with saving in personnel cost, contractual agreements, professional services, repairs and maintenance, and materials. Actual revenues were $695,554 or 2.7% higher than anticipated compared to the final budget. This increase was due to several factors: 1) sales tax revenue was lower than budgeted by $438,402, however, this was offset by a reduction in sales tax incentives in the amount of $864,391, resulting in a net favorable variance for tax revenues, 2) charges for services, as well as licenses and permits, had favorable budget variances of $463,294 and $176,759, respectively, due to higher building permit, engineering inspection, plan check and planning fees associated with development-related activities in the City, and 3) use of money and property exceeded the budget by $357,196 due to higher interest revenue and a favorable fair value adjustment of the City’s investment in LAIF. These favorable variances were partially offset by shortfalls in fines and forfeitures, and miscellaneous revenue.
Favorable budget amendments and supplemental appropriations were made during the year to diminish budget overruns and to increase appropriations for unanticipated expenditures after adoption of the original budget. The original revenue budget was increased by $1,512,200.
While the expenditure appropriations budget was increased in total by $2,135,000, the major increases was for overtime for fire services provided while on Strike Team, refuse contractual agreement, and capital expenditure.
Although the final adopted budget projected a $515,200 negative change in fund balance, favorable results in expenditures of $1,358,510 as discussed above offset by favorable results in revenues of $695,554; and favorable results in other financing sources and uses of $399,832 resulted in the combined favorable results of $2,453,896, as the actual positive net change in fund balance was $1,938,696 for the fiscal year ending June 30, 2024. -14-
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
2024 2023 2024 2023 2024 2023
Asset Type:
Land 15,278,220 $ 15,414,103 $ 1,387,764 $ 1,387,764 $ 16,665,984 $ 16,801,867 $ Construction in progress 645,741 1,246,766 7,192,051 1,060,281 7,837,792 2,307,047 Structures, machinery & equipment 16,017,445 15,920,695 6,229,383 6,011,895 22,246,828 21,932,590 Infrastructure 34,780,47 33,784,76 7 33,922,61 8 34,479,33 3 68,703,09 2 68,264,10 0 0 Intangible assets 652,206 293,933 66,46 96,078 3 718,669 390,011 Total $ 66,660,265 67,374,089 $ 48,798,274 $ 43,035,350 $ 116,172,363 $ 109,695,615 $ 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 2024, the City had $116,172,363 invested in a broad range of capital assets, a total increase of $6,476,748 (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 2024 was 5.9% (a 1.1% increase in governmental activities and 13.4% increase in business-type activities). For fiscal year 2024, 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. 2024 2023 2024 2023 2024 2023
Asset Type:
Land (135,883) $ 762,707 $ - $ - $ $ (135,883) $ 762,707 Construction in progress (601,025) (1,849,189) 6,131,770 851,546 5,530,745 (997,643) Structures, machinery and equipment 823,656 5,925,491 634,733 131,262 1,458,389 6,056,753 Infrastructure 2,045,071 8,969,098 703,703 2,774,835 2,748,774 11,743,933 Intangible assets 514,473 261,944 (4,572) 50,993 509,901 312,937 Total Additions 2,646,292 14,070,051 7,465,634 3,808,636 10,111,926 17,878,687 Less: Decreases, depreciation and amortization (1,932,468) (2,077,969) (1,702,710) (1,800,607) (3,635,178) (3,878,576) Capital Asset Increase/(Decrease) $ 11,992,082 713,824 $ 5,762,924 $ 2,008,029 $ 6,476,748 $ 14,000,111 $ GovernmentalActivities Total
Table 5
Schedule of Changes in Capital Assets/Infrastructure
Business-Type Activities
City of Loma Linda
As shown in Table 5, above, capital assets current year activity increased $713,824 (net of depreciation and amortization) for governmental activities and increased $5,762,924 (net of depreciation and amortization) for business-type activities for a total increase of $6,476,748. In the governmental activities the increase in capital assets can be attributed to the donated infrastructure from developers (streets, traffic signals and lights), installation of traffic signal at California St. and Citrus St., installation of generator at the Civic Center, refurbishment of the 2006 Smeal truck, Council Chamber audio/visual upgrade, vehicle purchases, installation of various art sculptures throughout the City, subscription-based I.T. arrangements, and various other improvements. The increase in business-type activities is primarily attributed to the installation of waterline at Beaumont Avenue and Campus St. and installation of a 1.6 million -15-
gallon water reservoir which was still in progress at year-end. Additional information regarding capital assets activities can be found in Notes 1i and 5 of the financial statements.
Long-Term Debt
Governmental Activities - Governmental Activities - The City governmental funds have $9,465,936 in outstanding long-term debt as of June 30, 2024; with the majority related to the net pension liability. Table 6 below and Note 8 to the financial statements offer a more detailed view of governmental long-term debt.
2024 2023 2024 2023 2024 2023
1978 Water Bonds (General Obligation) - $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 2016 Water Revenue Refunding Bonds 4,000,000 4,245,000 4,000,000 4,245,000 Compensated absences 820,81 818,591 6 313,973 286,295 1,134,78 1,104,88 9 6 Lease payable 58,680 80,393 48,224 65,580 106,904 145,973 Subscription-based IT arrangement payable 305,24 19,444 6 11,21 20,04 5 316,461 3 39,48 7 Net OPEB liability 199,214 188,955 154,599 162,993 343,554 362,207 Net Pension liability 6,611,430 8,092,239 2,082,57 1,913,901 8 10,174,81 8,525,331 7 Add: Unamortized bond premium - - 34,550 37,390 34,550 37,390 Total 9,465,93 $ 7,729,07 6 $ 6,655,13 2 $ 6,741,20 9 $ 16,121,07 2 $ 14,470,274 5 $ Governmental Activities Business-Type Activities Total
Table 6
Long-Term Debt at Year End
City of Loma Linda
Business-type Activities - The enterprise funds have $6,655,139 in outstanding long-term debt as of June 30, 2024. The water enterprise fund has bonded debt of $4,010,000 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 net OPEB liability total $2,082,578 and $154,599, respectively. Additional detailed information for business-type long-term debt is shown in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
As of September 2024, the Federal Reserve has reduced the federal funds rate target range to
4.75% to 5.00% after implementing 11 interest rate hikes in 2022 and 2023, and holding rates steady for many months thereafter in order to combat the surging inflation. The reduction in interest rate was a move designed to cushion the economy from a further slowdown by encouraging demand and boosting hiring. The central bank noted job gains had slowed while inflation had made further progress of moving towards the Fed’s 2% target. Per HDL Company’s Sales Tax Trends and Economic Drivers Report, the Fed’s action may spur some changes in consumer spending patterns, but overall does not translate into a short-term burst in sales taxes. Interest rates have significantly influenced consumer credit and spending. Although an increase of about $600,000 in California's local one-cent sales and use tax was expected, receipts for the fiscal year remained somewhat unchanged compared to the previous year.
Looking ahead, no significant sales tax gains are expected due to the Fed’s slow rate reductions.
According to the September 2024 Employment Report released by the Employment Development Department, the unemployment rate for the Inland Empire was 6.0%, which is above the previous year’s 5.3% rate. The unemployment rates have dropped to a comparable -16-
pre-pandemic level of 4.0% in June of 2022, however two years later the rate has increased to
6.0% as anticipated due to the contractionary monetary policy stance of the Federal Reserve and the slowdown in the hiring boom in the logistics industry following the pandemic. According to the Inland Empire Economic Partnership, unemployment rate is not necessarily something to worry about as the current rate is considerably lower than the region’s average 7.8% since 2010. The real estate market has continued to face challenges due to record-high housing prices, high mortgage interest rates by recent standards, and tight inventory of homes for sale.
The median home price in Loma Linda was $610,000 as of June 2024. This amount was 5.7% more than the $575,000 median home price in June 2023.
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 its fourth hotel is expected to be completed by end of calendar year 2024. 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 2023/2024, maintained economic growth and employment remained stable. Consumer spending shifted to ecommerce, property valuations increased and property sales continued, and ultimately leading to steady flows in City revenues (sales tax, property tax, franchise fees, transient occupancy tax, and business license) as reflected in the governmental activities tax and assessment revenues by source table in the statistical section. The challenges facing the City with the recent growth will be balancing the resources available to meet the increasing demands on city services (fire, police and general community services), the ongoing maintenance of new and existing infrastructure (parks, landscaping, streets, and utility services), rising pension liabilities and contractual service costs that are outside the control of the City. Work continues with staff and designated committees to address the demands for services by implementing new policies, and working on economic development project proposals that will maintain solid economic growth for the community while preserving the necessary level of services. Although the City has seen growth in revenues, it continues to operate at a lean conservative capacity. To protect Loma Linda's future and maintain the current standard of service, the City has explored different approaches to generate revenue, with the goal of securing a stable, reliable source of generalpurpose funding. The City is currently in the process of forming a Revenue-Generating Committee, an ad-hoc group comprising community members. This committee will focus on identifying and prioritizing new revenue sources to promote sustainable financial growth and further improve residents’ quality of life. The committee will serve for a period of one year. -17-
On July 9, 2024, the City Council adopted the City of Loma Linda Operating and Capital Improvement Program (CIP) Budget for the Fiscal Year beginning July 1, 2024 and ending June 30, 2025. The General Fund operating budget totals $27,121,500 and is funded by operating revenue of $25,812,200 transfers in and other financing sources of $902,300, leaving a reduction to fund balance of $407,000. The fund balance in the General Fund is expected to decrease to $17,854,277 with $14,604,277 in unassigned and $3,250,000 designated (committed or assigned) as budgetary reserves. The City Council and management make great efforts annually to adopt a balanced budget that preserves General Fund - fund balance.
Despite the projected reduction, it’s important to note that the City maintains a healthy budgetary reserves to ensure financial stability and continues to explore new revenue sources and implement efficiencies. The total City operating budget amounts to $51,917,600, with total estimated resources available for budget purposes of $52,639,600, for fiscal year 2024/2025.
The approved CIP budget for fiscal year 2024/2025 totals $4,579.100 with a five-year CIP investment plan estimated at $30,189,100.
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, 2024
The accompanying notes are an integral part of these financial statements. -18-
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 46,998,024 $ 12,370,767 $ 59,368,791 $ Receivables:
Accounts 1,031,262 1,551,321 2,582,583
Taxes 1,550,596 - 1,550,596
Interest 517,633 141,454 659,087
Lease 3,925,486 1,351,041 5,276,527
Contracts and loans 18,068,706 - 18,068,706
Internal balances 4,427,447 (4,427,447) -
Due from other governments 507,473 74,612 582,085
Inventories 21,480 184,589 206,069
Prepaid items 9,471 5,941 15,412
Loan receivable from the Successor Agency 1,163,277 687,630 1,850,907 Land held for resale 2,535,695 - 2,535,695
Restricted assets:
Cash and investments with fiscal agents - 706,511 706,511 Capital assets:
Non-depreciable 15,923,961 8,579,815 24,503,776
Depreciable and amortizable, net 51,450,128 40,218,459 91,668,587 Total capital assets 67,374,089 48,798,274 116,172,363
Total assets 61,444,693 148,130,639 209,575,332
DEFERRED OUTFLOWS OF RESOURCES
Pension related items 5,099,793 1,697,687 6,797,480
OPEB related items 45,147 36,936 82,083
Total deferred outflows of resources 1,734,623 5,144,940 6,879,563
LIABILITIES
Accounts payable 1,943,395 3,121,434 5,064,829
Interest payable - 61,487 61,487
Accrued liabilities 361,438 108,989 470,427
Due to other governments 1,919 - 1,919
Due to other Agency 1,943,276 - 1,943,276
Deposits payable 535,848 394,000 929,848
Unearned revenue 410,190 - 410,190
Long-term liabilities - due within one year 421,511 374,780 796,291 Long-term liabilities - due in more than one year:
Advances from the Loma Linda Successor Agency - 19,757,957 19,757,957 Due in more than one year 763,231 4,043,182 4,806,413
Net pension liability 8,092,239 2,082,578 10,174,817
Net OPEB liability 188,955 154,599 343,554
Total liabilities 30,099,006 14,662,002 44,761,008
DEFERRED INFLOWS OF RESOURCES
Pension related items 1,218,580 405,660 1,624,240
OPEB related items 93,793 76,738 170,531
Lease related items 3,617,254 1,264,077 4,881,331
Total deferred inflows of resources 1,746,475 4,929,627 6,676,102
NET POSITION
Net investment in capital assets 67,010,163 44,485,017 111,495,180 Restricted for:
Public works projects 25,292,070 - 25,292,070
Public safety 1,777,046 - 1,777,046
Community development 18,165,082 - 18,165,082
General government 896,890 - 896,890
Debt service 55,160 706,511 761,671
Unrestricted (deficit) 20,487,539 (13,857,693) 6,629,846 Total Net Position $ 31,333,835 133,683,950 $ 165,017,785 $ Primary Government
CITY OF LOMA LINDA
Statement of Activities
For the year ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -19-
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants Total
Primary Government:
Governmental activities:
General government 2,765,554 $ 3,800,863 $ - $ - $ 3,800,863 $ Public safety 19,028,767 3,981,857 247,011 - 4,228,868
Community development 3,501,151 1,498,296 8,849 - 1,507,145 Public works 7,820,046 2,612,847 1,094,493 2,562,290 6,269,630 Interest on long-term debt 4,546 - - - -
Total governmental activities 33,120,064 11,893,863 1,350,353 2,562,290 15,806,506 Business-type activities:
Water acquisition 1,268,450 461,280 - - 461,280
Water enterprise 8,205,930 6,678,997 - 351,489 7,030,486 Sewer capital 6,007,093 6,246,593 - 185,080 6,431,673
Loma Linda Connected Communities 1,025,311 328,029 - 408,889 736,918 Total business-type activities 16,506,784 13,714,899 - 945,458 14,660,357 Total primary government $ 25,608,762 49,626,848 $ 1,350,353 $ 3,507,748 $ 30,466,863 $ 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 (loss) 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
CITY OF LOMA LINDA
Statement of Activities (Continued)
For the year ended June 30, 2024
-20-
Governmental Business-type
Activities Activities Total
$ - 1,035,309 $ 1,035,309 $
- (14,799,899) (14,799,899)
- (1,994,006) (1,994,006)
- (1,550,416) (1,550,416)
- (4,546) (4,546)
- (17,313,558) (17,313,558)
(807,170) - (807,170)
(1,175,444) - (1,175,444)
424,580 - 424,580
(288,393) - (288,393)
(1,846,427) - (1,846,427)
(1,846,427) (17,313,558) (19,159,985)
- 3,764,468 3,764,468
- 7,112,227 7,112,227
- 1,655,214 1,655,214
- 665,720 665,720
- 351,957 351,957
- 16,752 16,752
- 3,142,433 3,142,433
703,425 2,841,791 3,545,216
- (152,472) (152,472)
803,437 174,586 978,023
(32,003) 32,003 -
1,474,859 19,604,679 21,079,538
(371,568) 2,291,121 1,919,553
31,705,403 131,392,829 163,098,232
$ 31,333,835 133,683,950 $ 165,017,785 $
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.
CITY OF LOMA LINDA
Balance Sheet
Governmental Funds
June 30, 2024
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 23,071,162 $ 1,655,545 $ 12,593,656 $ Receivables:
Accounts 950,041 81,160 -
Taxes 1,365,310 - -
Interest 264,283 18,517 134,875
Contract and loans 9,659 18,039,249 -
Lease 3,925,486 - -
Due from other funds 51,897 - -
Due from other governments 258,361 - -
Inventories 21,480 - -
Prepaid items 9,471 - -
Land held for resale - 2,535,695 -
Advances to other funds - - -
Loan receivable from Successor Agency - - -
Total assets $ 22,330,166 29,927,150 $ 12,728,531 $
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities
Accounts payable 1,862,965 $ 13,296 $ - $
Accrued liabilities 361,053 - -
Due to other funds 14,314 - -
Due to other governments 1,919 - -
Due to other Agency 1,943,276 - -
Deposits payable 514,621 21,227 -
Unearned revenue 12,640 - -
Advances from other funds - - -
Total liabilities 34,523 4,710,788 -
Deferred inflows of resources
Leases 3,617,254 - -
Unavailable revenue 330,802 4,604,884 -
Total Deferred inflows of resources 3,948,056 4,604,884 - Fund balances (deficit)
Non spendable:
Inventories 21,480 - -
Prepaid items 9,471 - -
Restricted for:
Cultural and recreational - - -
State mandated - - -
Public safety - - -
Street improvements - - 12,728,531
Storm drains - - -
Municipal facilities - - -
Air quality management - - -
Debt service - - -
Low/mod housing programs - 17,690,759 -
Committed for:
Emergency contingency 2,000,000 - -
Assigned for:
Refuse services 259,235 - -
Fire equipment replacement 529,390 - -
Fire training 34,316 - -
Capital equipment replacement 1,250,000 - -
Unassigned 17,164,414 - -
Total fund balances (deficit) 17,690,759 21,268,306 12,728,531 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 22,330,166 29,927,150 $ 12,728,531 $ Special Revenue Funds
CITY OF LOMA LINDA
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Nonmajor Total
Special Projects Governmental Governmental
Construction Funds Funds
$ 8,417,634 1,260,027 $ 46,998,024 $
61 - 1,031,262
185,286 - 1,550,596
86,227 13,731 517,633
19,798 - 18,068,706
- - 3,925,486
- 14,715 66,612
249,112 - 507,473
- - 21,480
- - 9,471
- - 2,535,695
- 6,955,065 6,955,065
- 1,163,277 1,163,277
$ 8,958,118 9,406,815 $ 83,350,780 $
$ 67,134 - $ 1,943,395 $
385 - 361,438
75,416 - 89,730
- - 1,919
- - 1,943,276
- - 535,848
397,550 - 410,190
2,504,500 - 2,504,500
3,044,985 - 7,790,296
- - 3,617,254
86,882 1,263,843 6,286,411
86,882 9,903,665 1,263,843
- - 21,480
- - 9,471
242,428 - 242,428
42,310 - 42,310
1,777,046 - 1,777,046
3,144,635 8,142,972 24,016,138
1,275,932 - 1,275,932
894,907 - 894,907
1,983 - 1,983
55,160 - 55,160
231,895 - 17,922,654
- - 2,000,000
- - 259,235
- - 529,390
- - 34,316
- - 1,250,000
(1,840,045) - 15,324,369
5,826,251 8,142,972 65,656,819
$ 8,958,118 9,406,815 $ 83,350,780 $
Capital Projects Funds
CITY OF LOMA LINDA
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Fund Balances - Total Governmental Funds 65,656,819 $
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. 67,374,089 Long-term liabilities are not due and payable in the current period. Therefore, they are not reported in the governmental funds:
Compensated absences (820,816)
Net pension liability (8,092,239)
Net OPEB liability (188,955)
Lease liability (58,680)
Subscription liability (305,246)
Pension and OPEB related deferred outflows and inflows of resources in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.
Deferred outflows of resources - pension and OPEB related items 5,144,940 Deferred inflows of resources - pension and OPEB related items (1,312, 373) 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. 6,286,411 Net Position of Governmental Activities 133,683,950 $
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CITY OF LOMA LINDA
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the year ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -25-
Housing Regional Traffic
General Authority Development Impact
REVENUES
Taxes 12,093,895 $ - $ - $
Licenses and permits 638,059 - -
Intergovernmental 3,181,929 - -
Charges for services 5,326,294 1,438 -
Use of money and property 1,445,596 202,005 615,649
Fines and forfeitures 1,589 - -
Miscellaneous 3,944,492 2,520 -
Developer fees - - 269,161
Total revenues 205,963 26,631,854 884,810
EXPENDITURES
Current:
General government 2,222,341 - -
Public safety 16,370,178 - -
Community development 1,915,728 61,034 -
Public works 3,708,334 - -
Capital outlay 1,611,316 808 -
Debt service:
Principal retirement 35,152 948 -
Interest and fiscal charges 2,541 34 -
Total expenditures 62,824 25,865,590 -
REVENUES OVER (UNDER) EXPENDITURES 143,139 766,264 884,810
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets 15,625 - -
Transfers in 913,910 - -
Transfers out (120,124) - -
Subscription acquisition 363,021 - -
Total other financing sources (uses) - 1,172,432 -
Net change in fund balances 143,139 1,938,696 884,810
FUND BALANCE (DEFICIT)
Fund balance, beginning, as previously reported 19,329,610 17,547,620 11,843,721 Change within financial reporting entity (major to non-major) - - - Fund balance, beginning, as restated 19,329,610 17,547,620 11,843,721 End of year 21,268,306 $ 17,690,759 $ 12,728,531 $
Special Revenue Funds
CITY OF LOMA LINDA
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the year ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -26-
Nonmajor Total
Special Projects (Formerly major) Governmental Governmental Construction Park Development Funds Funds
$ 1,529,527 - $ 13,623,422 $
- - 638,059
2,192,993 - 5,374,922
69,330 - 5,397,062
393,976 1,226,092 3,883,318
43,036 - 44,625
- - 3,947,012
1,026,751 - 1,295,912
5,255,613 1,226,092 34,204,332
- - 2,222,341
43,622 - 16,413,800
555,782 - 2,532,544
547,773 7,526 4,263,633
2,578,206 8,405 4,198,735
66,428 - 102,528
1,971 - 4,546
3,793,782 15,931 29,738,127
1,461,831 1,210,161 4,466,205
100,104 - 115,729
120,000 - 1,033,910
(881,783) - (1,001,907)
- - 363,021
(661,679) - 510,753
800,152 1,210,161 4,976,958
(2,439,324) 6,932,811 7,465,423 60,679,861
2,439,324 - (2,439,324) -
- 6,932,811 5,026,099 60,679,861
$ - 8,142,972 $ 5,826,251 $ 65,656,819 $
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, 2024
The accompanying notes are an integral part of these financial statements. -27-
Net change in Fund Balance - Total Governmental Funds 4,976,958 $ Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds report capital outlays as expenditures. However, in the Government-Wide Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.
Capital outlay, capitalized 3,164,557
Loss on disposal of capital asset not fully depreciated (268,201) Amortization Expense (155,848)
Depreciation Expense (2,389,705) 350,803
Governmental funds report revenues and expenditures primarily pertaining to longterm 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 (2,732,532)
OPEB related net adjustments (8,391)
Lease payments 21,713
SBITA payments (2,641,991) 77,219
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, long-term 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. (2,225)
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. (392,424) Change in Net Position of Governmental Activities 2,291,121 $ -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.
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CITY OF LOMA LINDA
Statement of Net Position
Proprietary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -29-
Loma Linda
Water Water Sewer Connected
Acquisition Enterprise Capital Communities Total
ASSETS
Current assets:
Cash and cash equivalents 3,501,532 $ 4,939,900 $ 3,680,853 $ 248,482 $ 12,370,767 $ Receivables:
Accounts - 746,964 767,427 36,930 1,551,321
Interest 38,553 58,723 41,659 2,519 141,454
Lease - 1,351,041 - - 1,351,041
Inventories - 184,015 574 - 184,589
Due from other funds - 23,118 - - 23,118
Due from other governments - 37,306 37,306 - 74,612
Prepaid items - 5,941 - - 5,941
Total current assets 3,540,085 7,347,008 4,527,819 287,931 15,702,843 Noncurrent assets:
Advances to other funds - 652,395 - - 652,395
Loan receivable from Successor Agency 687,630 - - - 687,630 Restricted assets:
Cash and investments with fiscal agents - 706,511 - - 706,511 Capital assets:
Non-depreciable - 8,387,493 192,322 - 8,579,815
Depreciable and amortizable, net - 32,309,782 3,767,993 4,140,684 40,218,459 Total capital assets - 40,697,275 3,960,315 4,140,684 48,798,274 Total noncurrent assets 687,630 42,056,181 3,960,315 4,140,684 50,844,810 Total assets 49,403,189 4,227,715 8,488,134 4,428,615 66,547,653
DEFERRED OUTFLOWS OF RESOURCES
Pension related items - 1,244,970 414,990 37,727 1,697,687 OPEB related items - 26,964 9,234 738 36,936
Total deferred outflows of resources - 1,271,934 424,224 38,465 1,734,623
LIABILITIES
Current liabilities:
Accounts payable 1,731,072 313,979 1,063,740 12,643 3,121,434 Interest payable - Bonds - 61,336 151 - 61,487
Accrued liabilities - 78,316 28,038 2,635 108,989
Deposits payable - 210,446 171,214 12,340 394,000
Long-term debt - due within one year - 341,015 32,000 1,765 374,780 Total current liabilities 1,731,072 1,005,092 1,295,143 29,383 4,060,690 Noncurrent liabilities:
Advances from other funds 4,450,565 - 652,395 - 5,102,960 Advances from Loma Linda Successor Agency - - - 19,757,957 19,757,957 Long-term debt - due in more than one year - 3,953,660 86,510 3,012 4,043,182 Net pension liability - 1,527,223 509,075 46,280 2,082,578 Net OPEB liability - 112,857 38,650 3,092 154,599
Total noncurrent liabilities 4,450,565 5,593,740 1,286,630 19,810,341 31,141,276 Total liabilities 6,598,832 6,181,637 2,581,773 19,839,724 35,201,966
DEFERRED INFLOWS OF RESOURCES
Pension related items - 297,483 99,161 9,016 405,660
OPEB related items - 56,018 19,185 1,535 76,738
Lease - 1,264,077 - - 1,264,077
Total deferred inflows of resources - 1,617,578 118,346 10,551 1,746,475
NET POSITION (DEFICIT)
Net investment in capital assets - 36,572,443 3,771,890 4,140,684 44,485,017 Restricted for debt service - 706,511 - - 706,511
Unrestricted (1,953,922) 5,179,759 2,440,349 (19,523,879) (13,857,693) Total net position (deficit) $ 42,458,713 (1,953,922) $ 6,212,239 $ (15,383,195) $ 31,333,835 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
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 461,280 $ 6,678,997 $ 6,246,593 $ 328,029 $ 13,714,899 $ Miscellaneous - 636,501 76,290 1,173 713,964
Total operating revenues 7,315,498 461,280 6,322,883 329,202 14,428,863
OPERATING EXPENSES
Treatment - - 4,880,731 - 4,880,731
Cost of sales and services 1,167,885 3,756,873 - 244,854 5,169,612 Administration and general - 2,203,316 737,863 56,322 2,997,501 Pension adjustment - 578,524 192,782 17,497 788,803
Depreciation and amortization - 1,546,508 194,885 144,757 1,886,150 Total operating expenses 8,085,221 1,167,885 6,006,261 463,430 15,722,797 Operating change in net position (769,723) (706,605) 316,622 (134,228) (1,293,934)
NONOPERATING REVENUES (EXPENSES)
Interest revenue 219,647 291,724 181,001 11,053 703,425 Interest expense (100,565) (120,709) (832) (561,881) (783,987) Lease income - 89,473 - - 89,473
Net nonoperating revenues (expenses) 260,488 119,082 180,169 (550,828) 8,911 Change in net position (deficit) before
transfers and capital contributions (509,235) (587,523) 496,791 (685,056) (1,285,023)
TRANSFERS AND CAPITAL CONTRIBUTIONS
Capital contributions - 351,489 185,080 408,889 945,458 Transfer in - 5,989,343 - - 5,989,343
Transfer out (5,989,095) (22,922) (9,329) - (6,021,346) Total transfers and capital contributions 6,317,910 (5,989,095) 175,751 408,889 913,455 Change in net position (6,576,618) 5,808,675 672,542 (276,167) (371,568)
NET POSITION (DEFICIT)
Beginning of year 4,622,696 36,650,038 5,539,697 (15,107,028) 31,705,403 End of year (1,953,922) $ 42,458,713 $ 6,212,239 $ (15,383,195) $ 31,333,835 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
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 461,280 $ 7,449,711 $ 6,288,781 $ 381,159 $ 14,580,931 $ Cash payments to suppliers for goods and services (141,974) (3,677,466) (4,665,576) (262,795) (8,747,811) Cash payments to employees for services - (2,148,055) (720,415) (69,505) (2,937,975) Net cash provided (used) by
operating activities 1,624,190 319,306 902,790 48,859 2,895,145
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Advances from other funds 4,350,000 - - - 4,350,000
Proceeds (repayment) of due to/from other funds - 536,257 (557,797) (224) (21,764) Proceeds from (payments to) other governmental entities - 97,512 (878) - 96,634 Transfers in - 5,989,343 - - 5,989,343
Transfers out (5,989,095) (22,922) (9,329) - (6,021,346) Net cash provided (used) by
noncapital financing activities 6,600,190 (1,639,095) (568,004) (224) 4,392,867
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition of capital assets - (6,507,678) (200,158) - (6,707,836) Loss on disposition of intangible right to use assets - 993 3,227 - 4,220 Proceeds from loan receivable 542,176 - - - 542,176
Lease payments - (11,129) (6,227) - (17,356)
Subscription payments - (3,984) (4,844) - (8,828)
Lease receipts - 34,968 - - 34,968
Payments on long-term debt - (245,000) - - (245,000)
Interest paid on long-term debt - (128,112) (822) - (128,934) Net cash provided (used) by capital and related
financing activities (6,859,942) 542,176 (208,824) - (6,526,590)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 164,276 231,833 130,077 8,032 534,218 Change in fair value of investments 48,608 33,864 37,726 1,962 122,160 Net cash provided by investing activities 265,697 212,884 167,803 9,994 656,378 Net increase (decrease) in cash and equivalents 1,630,135 (564,729) 293,765 58,629 1,417,800
CASH AND CASH EQUIVALENTS
Beginning of year 4,066,261 4,016,276 3,387,088 189,853 11,659,478 End of year 3,501,532 $ 5,646,411 $ 3,680,853 $ 248,482 $ 13,077,278 $ Reconciliation to the Statement of Net Position:
Cash and cash equivalents 3,501,532 $ 4,939,900 $ 3,680,853 $ 248,482 $ 12,370,767 $ Cash and investments with fiscal agents - 706,511 - - 706,511 Total cash and investments $ 5,646,411 3,501,532 $ 3,680,853 $ 248,482 $ 13,077,278 $ Enterprise Funds
CITY OF LOMA LINDA
Statement of Cash Flows, continued
Proprietary Funds
For the year ended June 30, 2024
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 (706,605) $ (769,723) $ 316,622 $ (134,228) $ (1,293,934) $ Adjustments to reconcile operating change in net position to net cash provided (used) by operating activities:
Depreciation and amortization - 1,546,508 194,885 144,757 1,886,150 (Increase) decrease in accounts receivable - 134,213 (34,102) 51,957 152,068 (Increase) decrease in inventories - 42,215 - - 42,215
(Increase) decrease in prepaid items - 2,990 1,078 - 4,068 (Increase) decrease in deferred outflows of resources - pension and OPEB related - 466,949 243,856 67,784 778,589 Increase (decrease) in accounts payable 1,025,911 (1,684) 217,582 (17,702) 1,224,107 Increase (decrease) in accrued liabilities - 15,102 8,019 1,863 24,984 Increase (decrease) in deposits payable - 35,886 (3,505) (239) 32,142 Increase (decrease) in net OPEB liability - 15,061 (8,618) (14,837) (8,394) Increase (decrease) in compensated absences - 10,771 15,213 1,694 27,678 Increase (decrease) in net pension liability - 199,210 1,305 (31,838) 168,677 Increase (decrease) in deferred inflows of resources -
pension and OPEB related - (73,308) (49,545) (20,352) (143,205) Total adjustments 2,393,913 1,025,911 586,168 183,087 4,189,079 Net cash provided (used) by operating activities $ 1,624,190 319,306 $ 902,790 $ 48,859 $ 2,895,145 $
NONCASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital Contributions - $ 351,489 $ 185,080 $ 408,889 $ 945,458 $ Enterprise Funds
-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 Fund - The Custodial Funds is 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.
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CITY OF LOMA LINDA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -34-
Private Purpose
Custodial Fund Trust Fund
ASSETS
Cash and investments 124 $ 3,961,165 $
Receivables:
Interest - 26,411
Contract and loans - 79,862
Prepaid items - 103,650
Advances to the City of Loma Linda - 19,757,957
Restricted assets:
Cash and investments with fiscal agents - 31
Total assets 23,929,076 124
LIABILITIES
Accounts payable 124 660
Interest payable - 257,742
Due to other governments - 183,687
Deposits payable - 28,686
2016 Tax Allocation Refunding Bonds - 18,235,720
Loan payable to the City of Loma Linda - 1,850,907
Total liabilities 20,557,402 124
DEFERRED INFLOWS OF RESOURCES
Gain on debt refunding - 14,665
NET POSITION
Net position held in trust - 3,357,009
Total net position - $ 3,357,009 $
CITY OF LOMA LINDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -35-
Private Purpose
Custodial Fund Trust Fund
ADDITIONS
Property taxes - $ 4,902,315 $
Use of money and property - 658,746
Miscellaneous 2,940 -
Total additions 5,561,061 2,940
DEDUCTIONS
General and administrative - 199,026
Miscellaneous 2,940 -
Debt service:
Interest and fiscal charges - 725,164
Total deductions 924,190 2,940
Change in net position 4,636,871 -
NET POSITION (DEFICIT)
Beginning of year - (1,279,862)
End of year - $ 3,357,009 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-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:
x 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. x The component unit is fiscally dependent upon the City. x 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, 2024
-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, 2024
-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. x Due to and from other funds
x Advances to and from other funds
x 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 unrestrictednet 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 GovernmentWide 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, 2024
-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, 2024
-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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-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 developments 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 Fund – 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, 2024
-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:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
x 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 yearend.
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, 2024
-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 five years. 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 depreciation 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, 2024
-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, 2024
-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 GovernmentWide 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.
GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-46-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Other Postemployment Benefits (OPEB)
For purposes of measuring net OPEB liability, 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, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
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, 2024
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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.
The City defines emergency commitment as funds designated for addressing conditions that qualify as an “emergency” under Loma Linda municipal code section 2.28.020. These include actual or threatened disasters or extreme peril to the safety of persons or property- such as fire, flood, storm, epidemic, or other events beyond the city’s control that require external support. The commitment is intended for use during a declared state or federal emergency, or a local emergency as established by resolution.
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:
x Restricted
x Committed
x Assigned
x Unassigned
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Fund Balance, Continued
A City Council Action is the formal action required by the Government to establish and modify or rescind a fund balance commitment.
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. x 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-49-
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued T. Leases, Continued
x 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.
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. 100 – As of July 1, 2023, the City adopted GASB Statement No. 100, Accounting Changes and Error Corrections. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. See Note 19 for details.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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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, 2024:
Governmental Business-Type Custodial Private Purpose
Activities Activities Funds Trust Fund Totals
Cash and investments 46,998,024 $ 12,370,767 $ 124 $ 3,961,165 $ 63,330,080 $ Restricted cash and investments - 706,511 - 31 706,542
Total cash and investments 46,998,024 $ 13,077,278 $ 124 $ 3,961,196 $ 64,036,622 $ Government-Wide Statements Fiduciary Funds Statements
The City’s cash and investments at June 30, 2024 in more detail were as follows:
Cash and cash equivalents
Petty cash 1,850 $
Demand deposits 1,587,533
Total cash and cash equivalents 1,589,383
Investments
Local Agency Investment Fund 61,740,697
Total cash and investments 63,330,080
Cash and Investments with Fiscal Agents 706,542
Total cash and investments 64,036,622 $
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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 2: CASH AND INVESTMENTS, Continued
B. Investments
Under the provisions of the City’s investment policy, and in accordance with the Code, the following investments were authorized:
x Securities of the U.S. Government, or its agencies
x Certificates of Deposits (or Time Deposits)
x State of California Local Agency Investment Fund (LAIF) x Other investments that are approved through the State of California Government Code As of June 30, 2024, the City was a voluntary participant and had $61,740,697 invested in LAIF.
The City has complied with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools.
The City’s investments with LAIF at June 30, 2024 included 3.00% of the pooled funds invested in structured notes and asset-backed securities. This is an increase of 0.22% 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 2: CASH AND INVESTMENTS, Continued
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 61,740,697 $
Invested Maturities in Years
Credit Risk – As of June 30, 2024, the City’s investments in external investment pools are unrated.
Custodial Credit Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a deposit financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.
The City’s investment policy does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the provision for deposits stated in Note 2A. City’s bank participates in the FDIC‘s temporary Transaction Account Guarantee Program which provides unlimited coverage. Of the City and Successor Agency’s investments, $706,542 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, 2024.
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, 2024, the City of Loma Linda did not maintain any investments subject to the fair value hierarchy.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 3: RECEIVABLES
A. Leases
Governmental Activities
The City entered into various leases as the lessor. The leases range from 166 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, 2024 was $3,925,486 and $3,617,254, respectively. In addition, the City recognized lease revenue of $225,213 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, 2024, was $1,351,041 and $1,264,077, respectively. In addition, the City recognized lease revenue of $89,473 during the fiscal year.
B. Contracts and Notes Receivable
Contracts and loans receivable consisted of the following at June 30, 2024:
Beginning Ending
Balance Additions Deletions Balance
Big Bear Valley Water Stock 1,075 $ - $ - $ 1,075 $
LL Chamber of Commerce Loan 8,584 - - 8,584
Deferred Housing Plan 464 - (464) -
Developers Loans 14,237,195 355,893 - 14,593,088
First Time Homebuyers 3,584,135 137,624 (255,800) 3,465,959 Total 17,831,453 $ 493,517 $ (256,264) $ 18,068,706 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 4: INTERFUND TRANSACTIONS
A. Fund Financial Statements
Due To/Due From Other Funds - At June 30, 2024, the City had the following due to/from other funds:
Due From Other Funds General Fund
Nonmajor
Governmental
Funds Total
Governmental Funds:
General Fund - $ 51,897 $ 51,897 $
Special Projects Construction Fund - 14,715 14,715
Enterprise Funds:
Water Enterprise 14,314 8,804 23,118
Total 14,314 $ 75,416 $ 89,730 $
Due to Other Funds
Governmental Funds
The due from in the General Fund is made up of $51,897 from the Non-major funds 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 Special Projects Construction fund is to cover capital project costs. The due from the Water Enterprise fund is for end of year utility billings.
Advances To/From Other Funds - At June 30, 2024, the City had the following advances to/from other funds:
Governmental Funds
Nonmajor
Governmental Water Sewer
Advances To Other Funds Funds Acquisition Capital Total Governmental Funds:
Special Projects Construction 2,504,500 $ 4,450,565 $ - $ 6,955,065 $ Enterprise Funds:
Water Enterprise - - 652,395 652,395
Total 2,504,500 $ 4,450,565 $ 652,395 $ 7,607,460 $
Enterprise Funds
Advances From Other Funds
Advances from the Water Enterprise fund to the Sewer Capital Fund in the amount of $652,395 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. The advance to the Water Acquisition fund from the Special Projects Construction fund in the amount of $4,450,565, including accrued interest, was to assist with the installation of the 1.6 million gallon water reservoir and waterline distribution at Beaumont and Nevada Street.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 4: INTERFUND TRANSACTIONS
A. Fund Financial Statements, Continued
Transfers – For the year ended June 30, 2024, the City had the following transfers in and out:
Fund receiving transfers Fund making transfers Amount
General Fund Nonmajor Governmental Funds 881,783 $
Sewer Fund 9,205
Water Enterprise 22,922
Nonmajor Governmental Funds General Fund 120,000
Water Enterprise Water Acquisition Fund 5,989,095
General Fund 124
Sewer Fund 124
Total transfers 7,023,253 $
Certain nonmajor governmental funds made payments in the amount of $881,783 to the General Fund for street maintenance and to cover costs. The General Fund transferred $120,000 to a non-major fund in the amount of to assist with Landscape Maintenance fund. Transfers of $5,989,343 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, 2024
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Note 5: CAPITAL ASSETS
The following is a summary of capital assets for the governmental activities:
Beginning Ending
Balance Additions Adjustments Deletions Balance
Governmental activities:
Capital assets, not being depreciated:
Land 15,414,103 $ 120,868 $ - $ (256,751) $ 15,278,220 $ Construction in progress 1,246,766 682,996 - (1,284,021) 645,741 Total capital assets, not being depreciated 16,660,869 803,864 - (1,540,772) 15,923,961 Capital assets, being depreciated and amortized:
Structures and improvements 29,821,709 86,486 - - 29,908,195 Machinery and equipment 11,141,190 1,362,057 - (624,887) 11,878,360 Infrastructure 64,064,585 2,045,071 - - 66,109,656
Intangible assets (perpetual license software) 216,822 - - - 216,822 Intangible right to use asset - machinery and equipment 114,582 - - - 114,582 Intangible right to use asset - SBITA 27,329 514,473 - - 541,802 Total capital assets, being depreciated and amortized 105,386,217 4,008,087 - (624,887) 108,769,417 Less accumulated depreciation/amortization for:
Structures and improvements (18,405,231) (726,675) - - (19,131,906) Machinery and equipment (6,636,973) (613,668) - 613,437 (6,637,204) Infrastructure (30,279,817) (1,049,362) - - (31,329,179) Intangible assets (perpetual license software) (21,683) (43,364) - - (65,047) Intangible right to use asset - machinery and equipment (38,230) (22,019) - - (60,249) Intangible right to use asset - SBITA (4,887) (90,465) (352) - (95,704) Total accumulated depreciation and amortization (55,386,821) (2,545,553) (352) 613,437 (57,319,289) Total capital assets, being depreciated and amortized net 49,999,396 1,462,534 (352) (11,450) 51,450,128 Governmental activities capital assets, net 66,660,265 $ 2,266,398 $ (352) $ (1,552,222) $ 67,374,089 $ Depreciation and amortization expense was charged to functions of the primary government's governmental activities as follows:
Governmental activities: Depreciation Amortization Total General government $ 64,888 165,895 $ 230,783 $
Public safety 37,856 444,387 482,243
Community development 46,538 562,746 609,284
Public works 6,566 1,216,677 1,223,243
Total $ 155,848 2,389,705 $ 2,545,553 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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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 1,060,281 6,175,901 (44,131) 7,192,051 Total capital assets, not being depreciated 2,448,045 6,175,901 (44,131) 8,579,815 Capital assets, being depreciated and amortized:
Structures and improvements 26,968,959 326,097 (8,020) 27,287,036 Machinery and equipment 6,744,759 491,724 (175,068) 7,061,415 Infrastructure 48,160,887 703,703 - 48,864,590
Intangible assets (perpetual license software) 13,718 - - 13,718 Intangible right to use asset - machinery and equipment 90,739 - - 90,739 Intangible right to use asset - SBITA 23,695 - (4,572) 19,123 Total capital assets, being depreciated and amortized 82,002,757 1,521,524 (187,660) 83,336,621 Less accumulated depreciation/amortization for:
Structures and improvements (21,992,092) (403,772) 8,020 (22,387,844) Machinery and equipment (5,709,731) (196,561) 175,068 (5,731,224) Infrastructure (13,681,555) (1,260,422) - (14,941,977)
Intangible assets (perpetual license software) (1,372) (2,744) - (4,116) Intangible right to use asset - machinery and equipment (28,370) (17,377) - (45,747) Intangible right to use asset - SBITA (2,332) (5,274) 352 (7,254) Total accumulated depreciation and amortization (41,415,452) (1,886,150) 183,440 (43,118,162) Total capital assets, being depreciated net 40,587,305 (364,626) (4,220) 40,218,459 Business-type activities capital assets, net 43,035,350 $ 5,811,275 $ (48,351) $ 48,798,274 $ 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 1,532,243 $ 14,265 $ 1,546,508 $
Sewer Capital 183,755 11,130 194,885
Loma Linda Connected Communities 144,757 - 144,757
Total $ 25,395 1,860,755 $ 1,886,150 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 6: LONG-TERM LIABILITIES
The following is a summary of long-term debt transactions for the fiscal year ended June 30, 2024:
Beginning Ending Due within
Governmental activities: Balance Additions Deletions Balance One Year Compensated absences 818,591 $ 783,785 $ (781,560) $ 820,816 $ 284,863 $ Lease liability 80,393 - (21,713) 58,680 22,293
Subscription liability 19,444 363,021 (77,219) 305,246 114,355 Total governmental activities $ 1,146,806 918,428 $ (880,492) $ 1,184,742 $ 421,511 $ 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 4,245,000 - (245,000) 4,000,000 255,000 Unamortized bond premium 37,390 - (2,840) 34,550 2,840
Compensated absences 286,295 281,587 (253,909) 313,973 84,481 Lease liability 65,580 - (17,356) 48,224 17,557
Subscription liability 20,043 - (8,828) 11,215 4,902
Total business-type activities $ 281,587 4,664,308 $ (527,933) $ 4,417,962 $ 374,780 $ A. Governmental Activities Long-Term Debt
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 $820,816. 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, 2024, the City recognized right to use asset of $54,333, net of amortization, and lease liability of $58,680. During the fiscal year, the City recorded $22,019 in amortization expense.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-59-
Note 6: LONG-TERM LIABILITIES, Continued
A. Governmental Activities Long-Term Debt, Continued
Estimated future lease liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2025 22,293 $ 6,414 $ 28,707 $
2026 23,037 6,641 29,678
2027 11,839 4,634 16,473
2028 1,511 569 2,080
Total 58,680 $ 18,258 $ 76,938 $
Governmental Lease Liability
Subscription liabilities
The City has entered into 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 total subscription principal payment includes a reclassification adjustment of $3,945 between governmental activities and business-type activities. This adjustment was necessary due to a change in allocation of a split subscription asset between the two.
The City is required to make annual payments ranging from $1,970 to $42,500 with discount rates ranging from 2.50% to 3.65%. As of June 30, 2024, the City recognized right to use asset of $446,098, net of amortization, and subscription liability of $305,246. During the fiscal year, the City recorded $90,465 in amortization expense.
Estimated future subscription liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2025 114,355 $ 8,676 $ 123,031 $
2026 65,855 5,770 71,625
2027 62,361 3,407 65,768
2028 62,675 1,069 63,744
Total 305,246 $ 18,922 $ 324,168 $
Governmental Subscription liability
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-60-
Note 6: LONG-TERM LIABILITIES, Continued
B. Business-Type Activities Long-Term Debt
1978 Water Bonds (General Obligation) – Original Issue $1,000,000 On February 14, 1978, the City issued $1,000,000 of 1978 Water Bonds (General Obligation).
The purpose of the bonds was to finance water system improvements.
The bonds matured from April 1, 1979 to April 1, 2003 in varying amounts. The bonds accrued interest at rates between 4.80% and 6.75%. Interest on the bonds was payable semiannually on each April 1 and October 1. Principal was payable in annual installments commencing April 1, 1979. The revenues of the Water Fund were being used to pay the annual debt service requirements of the bonds. The bonds matured in fiscal year 2003; however, at June 30, 2010, not all bonds have been presented for payment. The amount outstanding as of June 30, 2024 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, 2024
-61-
Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt, Continued
The annual requirements to amortize the 2016 Water Revenue Refunding Bonds outstanding at June 30, 2024 were as follows:
Year Ending
June 30, Principal Interest Total
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 290,000 85,025 375,025
2030-2034 1,580,000 300,013 1,880,013
2035-2039 1,065,000 64,500 1,129,500
Total 4,000,000 $ 879,876 $ 4,879,876 $
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 $313,973 at June 30, 2024. 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, 2024, the City recognized right to use asset of $44,992, net of amortization, and lease liabilities of $48,224. During the fiscal year, the City recorded $17,377 of amortization expense.
Estimated future lease liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2025 17,557 $ 1,334 $ 18,891 $
2026 18,201 712 18,913
2027 11,274 163 11,437
2028 1,192 10 1,202
Total 48,224 $ 2,219 $ 50,443 $
Business-Type Lease Liability
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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Note 6: LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt, 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 $1,207 to $5,509 with discount rates ranging from 2.50% to 2.54%. As of June 30, 2024, the City recognized right to use asset of $11,869, net of amortization, and subscription liability of $11,215. During the fiscal year, the City recorded $5,274 in amortization expense.
Estimated future subscription liability requirements are as follows:
Year Ending
June 30, Principal Interest Total
2025 4,902 $ 285 $ 5,187 $
2026 5,146 161 5,307
2027 1,167 30 1,197
Total 11,215 $ 476 $ 11,691 $
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, 2024
Series 2008 A 9,000,000 $ 945,000 $
Multifamily Housing Revenue Bonds Original Outstanding at Loma Linda Commons Project Amount June 30, 2024
Series 2009 A 13,275,000 $ 6,008,035 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
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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, 2024
-64-
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, 2024 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% 1.0% to 2.5% Required employer contribution rates 12.470% 7.680%
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 - 57
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% Required employer contribution rates 24.150% 13.540%
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, 2024, were $1,262,594. The actual employer payments of $1,899,052 made to CalPERS by the City during the measurement period ended June 30, 2023, differed from the City’s proportionate share of the employer’s contributions of $2,942,191 by ($1,043,137), 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, 2024
-65-
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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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 The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry Age Actuarial Cost Method
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 and Review of Actuarial Assumptions. Mortality rates incorporate full 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 2021 experience study 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, 2024
-66-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
B. Net Pension Liability, Continued
Long-term Expected Rate of Return, continued
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
The expected real rates of return by asset class are as follows:
Asset Class1
Assumed
Asset
Allocation Real Return1,2
Global Equity - cap weighted 30.00% 4.54%
Global Equity - non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporation 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.21%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.0%
2 Figures are based on the 2021 Assets Liability Management Study. 1 An expected inflation of 2.3% used for this period.
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-67-
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
There were no subsequent events that would materially affect the results presented in this disclosure.
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.
Investments are reported at fair value.
C. Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s 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: 6/30/2022 (VD) 77,057,019 $ 68,531,688 $ 8,525,331 $ Balance at: 6/30/2023 (MD) 82,443,909 72,269,092 10,174,817 Net Changes during 2022-23 5,386,890 $ 3,737,404 $ 1,649,486 $ Increase (Decrease)
Valuation Date (VD), Measurement Date (MD).
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-68-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability, Continued 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, 2022 and 2023 was as follows:
Proportion - June 30, 2022 0.073807%
Proportion - June 30, 2023 0.081559%
Change - Increase/(Decrease) 0.007752%
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 percentage-point 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%)
$ 10,174,817 21,405,654 $ 962,380 $
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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-69-
Note 8: EMPLOYEE RETIREMENT PLAN, Continued
C. Proportionate Share of Net Pension Liability, Continued Amortization of Deferred Outflows and Deferred Inflows of Resources, Continued 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, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (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, 2022), the City’s net pension liability was $8,525,331. For the measurement period ending June 30, 2023 (the measurement date), the City recognized a pension expense of $4,783,929.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-70-
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, 2024, 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 603,133 $ - $
Differences Between Expected and
Actual Experience 643,663
Differences Between Projected and Actual
Investment Earnings
Differences between Employer's Contributions
and Proportionate Share of Contributions
Change in Employer's Proportion 2,779,696 -
Pension Contributions Made Subsequent
to the Measurement Date
$ 1,624,240 6,797,480 $
71,539
- 1,262,594
- 1,508,394
1,552,701 -
The amounts above are net of outflows and inflows recognized in the 2022-23 measurement period expense. Contributions subsequent to the measurement date of $1,262,594 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
2025 1,737,087 $
2026 1,083,797
2027 1,047,074
2028 42,688
2029 -
Thereafter -
E. Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-71-
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, 2023, actuarial valuation (measurement date 6/30/2023), the following current and former employees were covered by the benefit terms under the OPEB Plan.
Active employees 81
Inactive employees or beneficiaries currently receiving benefits 20 Total 101
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, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions.
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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-72-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued Net OPEB Liability, Continued
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 2.5% used for this period.
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.
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CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-73-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued 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, 2023
(Valuation Date June 30, 2022) 961,615 $ 599,408 $ 362,207 $ Changes recognized for the measurement period:
Service cost 30,894 - 30,894
Interest 64,887 38,362 26,525
Benefit payments (31,536) (31,536) -
Administrative expenses - (174) 174
Employer contributions to trust - 31,000 (31,000)
Employer contributions as benefits payments - 31,536 (31,536) Experience (gains)/losses (21,293) - (21,293)
Changes in assumptions 7,583 - 7,583
Net Changes 69,188 50,535 (18,653)
Balance at June 30, 2024
(Measurement Date June 30, 2023) 1,012,150 $ 668,596 $ 343,554 $ 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, 2023:
Current
1% Decrease Discount Rate 1% Increase
5.75% 6.75% 7.75%
Net OPEB Liability 494,388 $ 343,554 $ 220,687 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-74-
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, 2023:
Current
1% Decrease Healthcare Cost Trend Rates 1% Increase
Net OPEB Liability 203,607 $ 343,554 $ 519,848 $
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, 2024, the City recognized OPEB expense of $46,793. As of June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes of assumptions 38,431 $ - $
Differences between expected
and actual experience - 170,531
Net difference between projected and actual earnings on OPEB plan investments 43,652 -
Total 82,083 $ 170,531 $
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-75-
Note 9: OTHER POSTEMPLOYMENT BENEFITS (OPEB), Continued OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued 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
2025 (8,655) $
2026 (12,085)
2027 9,022
2028 (17,622)
2029 (18,248)
Thereafter (40,860)
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 a member of the California Joint Powers Insurance Authority (Authority).
The Authority is composed of 126 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. 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, 2024
-76-
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 2023-24 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 through reinsurance policies, 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, 2024
-77-
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 of Loma Linda participates in the all-risk property protection program of the Authority.
This insurance protection is underwritten by several insurance companies. City of Loma Linda property is currently insured according to a schedule of covered property submitted by the City of Loma Linda to the Authority. City of Loma Linda property currently has all-risk property insurance protection in the amount of $64,852,219. 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 2023-24.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-78-
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, 2024, 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, 2024
-79-
Note 12: JOINT VENTURES
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 2024, the City of Loma Linda’s contribution totaled $372,214. 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, 2024, the following governmental funds had deficit fund balances:
Fund Type Deficit
Nonmajor governmental funds:
Community Development Block Grant Special Revenue (45,662) $ Grant Fund Special Revenue (17,151)
Park Development Capital Projects (1,762,517)
General Facilities Capital Projects (14,715)
Funds
Community Development Block Grants – The Community Development Block Grant fund has a deficit of $45,662 which resulted from grant reimbursement not received prior to the end of the year, therefore declaring it unavailable revenue.
Grant Fund – The Grant fund has a deficit balance of $17,151 which resulted from grant reimbursement prior to the end of the year, therefore declaring it unavailable revenue and grants received in advance that resulted in unearned revenue.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-80-
Note 13: DEFICIT FUND BALANCES, Continued
Park Development – The Park Development has an accumulated deficit balance of $1,762,517 as a result from the purchase of open space property in the City’s South Hills with advances from other funds.
General Facilities Fund – The General Facilities Fund has a deficit balance of $14,715 which resulted from having the General Fund cover negative cash.
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, 2024 are as follows:
General Fund 306,633 $
Water Acquisition 1,221,620
Water Enterprise 225,014
Significant Encumbrances as of June 30, 2024
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, 2024, 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, 2024
-81-
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, 2024
-82-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt
The following is a summary of the bonded debt activity of the Successor Agency as of June 30, 2024:
Beginning Ending Due within
TAX ALLOCATION BONDS Balance Additions Deletions Balance One Year 2016 Tax Allocation Refunding Bonds Series A 3,280,000 $ - $ (455,000) $ 2,825,000 $ 470,000 $ 2016 Tax Allocation Refunding Bonds Series B 17,350,000 - (1,930,000) 15,420,000 1,985,000 Unamortized bond premium 342,007 - (46,113) 295,894 46,113 Unamortized bond discount (352,734) - 47,560 (305,174) (47,560) Loan payable to the City of Loma Linda - direct borrowings 3,404,324 85,731 (1,639,148) 1,850,907 1,616,998 Total 24,023,597 $ 85,731 $ (4,022,701) $ 20,086,627 $ 4,070,551 $ 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 16,950 $ - $ (2,285) $ 14,665 $ - $ The bonded debt of the Successor Agency as of June 30, 2024 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.
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-83-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt, Continued
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.
The annual requirements for the 2016 Tax Allocation Refunding Bonds, Series A and B outstanding at June 30, 2024 were as follows:
Year Ending
June 30, Principal Interest Total
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 400,000 53,000 453,000
2030-2031 860,000 43,500 903,500
Total 2,825,000 $ 481,900 $ 3,306,900 $
Year Ending
June 30, Principal Interest Total
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 2,380,000 193,550 2,573,550
2030-2031 4,340,000 141,926 4,481,926
Total 15,420,000 $ 1,827,392 $ 17,247,392 $
2016 Successor Agency - Series B
2016 Successor Agency - Series A
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-84-
Note 16: SUCCESSOR AGENCY, Continued
Successor Agency Long-Term Debt, Continued
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.
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 annual requirements for the loan payable – direct borrowing outstanding at June 30, 2024 were as follows:
Year Ending
June 30, Principal Interest Total
2025 1,616,998 $ 22,150 $ 1,639,148 $
2026 233,909 4,093 238,002
Total 1,850,907 $ 26,243 $ 1,877,150 $
Loan Payable to the City of Loma Linda
CITY OF LOMA LINDA
Notes to Basic Financial Statements
For the year ended June 30, 2024
-85-
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, 2024, the City has accrued a liability due to the Medical Center in the amount of $1,943,276, 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, 2024
-86-
Note 18: NET POSITION
Net Investment in Capital Assets
Net position for governmental activities and business-type activities is classified as 1) net investments in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2024, was determined as follows:
Governmental
Activities
Capital assets, net of accumulated depreciation 67,374,089 $ Less: Lease liability (58,680)
Subscription liability (305,246)
Net investment in capital assets 67,010,163 $
Loma Linda Total
Water Sewer Connected Enterprise
Enterprise Capital Communities Funds
Capital assets, net of accumulated depreciation 40,697,275 $ 3,960,315 $ 4,140,684 $ 48,798,274 $ Less capital related debt balance:
Outstanding principal balance of 2016 Water Revenue Refunding Bond (4,000,000) - - (4,000,000) Outstanding principal balance of 1978 Water Bonds (General Obligation) (10,000) - - (10,000) Outstanding principal balance of non-debt capital related liabilities (43,266) (166,002) - (209,268) Outstanding unamortized bond premium balance (34,550) - - (34,550) Lease liability (29,889) (18,335) - (48,224)
Subscription liability (7,127) (4,088) - (11,215)
Net investment in capital assets 36,572,443 $ 3,771,890 $ 4,140,684 $ 44,485,017 $ Business-type Activities
Note 19: PRIOR PERIOD RESTATEMENT
As a result of the implementation of GASB 100, as described in Note 1, the City is required to restate its June 30, 2023, governmental funds’ fund balance, as well as governmental activities’ net position. The Park Improvements Fund was previously reported as a major fund and qualified as nonmajor for the year ending June 30, 2024. This qualifies as a change to or within the financial reporting entity under the guidance of GASB 100. The reclassification of these funds did not result in any changes to the government-wide financial statements’ net position. Changes in fund balance as of June 30, 2023, were as follows:
Balance Sheet
Balance Sheet Nonmajor
Governmental Funds
Park Development Park Development
Fund Balance, beginning of year, as previously reported (2,439,324) $ - $ Change from major to nonmajor fund 2,439,324 (2,439,324) Fund Balance, beginning of year, as restated $ (2,439,324) - $ Governmental Funds
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
-87-
1. BUDGET AND BUDGETARY ACCOUNTING
A. General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the Council. Supplemental appropriations, where required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the department level. At fiscal year-end, all operating budget appropriations lapse.
B. Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgets were legally adopted for all governmental funds with the exception of the Traffic Congestion Relief Grant Fund, Asset Forfeiture Fund, and the Water Bond Redemption Fund.
C. Budgets
Excess of expenditures over appropriations are as follows:
Fund Appropriated Expended Excess
General Fund:
Community development - Planning - building and safety 348,500 $ 395,013 $ (46,513) $ Public works - refuse 1,848,800 1,880,581 (31,781)
Special Projects Construction:
Public works 7,300 7,526 (226)
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
-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 11,074,000 $ 11,757,800 $ 12,093,895 $ 336,095 $
Licenses and permits 703,100 461,300 638,059 176,759
Intergovernmental 3,099,900 3,110,900 3,181,929 71,029
Charges for services 4,651,500 4,863,000 5,326,294 463,294 Use of money and property 816,100 1,088,400 1,445,596 357,196 Fines and forfeitures 5,800 3,000 1,589 (1,411)
Miscellaneous 4,073,700 4,651,900 3,944,492 (707,408)
Total revenues 25,936,300 24,424,100 26,631,854 695,554
EXPENDITURES
Current:
General government
City council 193,900 195,500 192,361 3,139
City clerk 248,500 218,700 150,769 67,931
City manager 429,200 461,800 380,680 81,120
Finance 637,800 564,700 471,027 93,673
Information system 237,800 191,200 146,237 44,963
Senior Center 81,400 85,000 57,269 27,731
General government 814,300 931,300 823,998 107,302
Public safety
Parking control 240,900 240,900 214,916 25,984
Fire prevention 400,800 423,500 358,946 64,554
Fire and rescue services 7,605,000 8,435,683 8,203,760 231,923 Disaster preparedness 209,400 254,200 208,472 45,728
Police 7,150,900 7,176,400 7,175,826 574
Code enforcement 265,200 257,700 208,258 49,442
Community development
Planning 480,000 525,900 372,914 152,986
Planning - building and safety 361,400 348,500 395,013 (46,513) Parks 1,287,000 1,245,200 1,147,801 97,399
Public works
Traffic safety 237,200 269,900 219,810 50,090
Engineering 330,100 301,000 266,763 34,237
Street maintenance 893,900 903,400 822,064 81,336
Facilities maintenance 535,200 514,100 467,269 46,831
Refuse 1,530,000 1,848,800 1,880,581 (31,781)
Recycling 66,100 73,700 51,847 21,853
Capital outlay 853,100 1,713,517 1,611,316 102,201
Debt service:
Principal retirement - 37,700 35,152 2,548
Interest and fiscal charges - 5,800 2,541 3,259
Total expenditures 27,224,100 25,089,100 25,865,590 1,358,510 REVENUES OVER (UNDER) EXPENDITURES (1,287,800) (665,000) 766,264 2,054,064
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets 10,000 10,000 15,625 5,625 Transfers in 921,400 882,600 913,910 31,310
Transfers out (120,000) (120,000) (120,124) (124)
Subscription acquisition - - 363,021 363,021
Total other financing sources (uses) 772,600 811,400 1,172,432 399,832 Net change in fund balance (515,200) 146,400 1,938,696 2,453,896
FUND BALANCE
Beginning of year 19,329,610 19,329,610 19,329,610 -
End of year 19,476,010 $ 18,814,410 $ 21,268,306 $ 2,453,896 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
-89-
1. BUDGET AND BUDGETARY ACCOUNTING, Continued
D. Budgetary Comparison Schedule, Continued
The following is the budgetary comparison schedule for the 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 160,300 189,500 202,005 12,505 Miscellaneous 1,800 1,800 2,520 720
Total revenues 192,700 163,500 205,963 13,263
EXPENDITURES
Current:
Community development 121,400 120,000 61,034 58,966
Capital outlay 51,000 51,400 808 50,592
Debt service:
Principal retirement - 1,100 948 152
Interest and fiscal charges - 300 34 266
Total expenditures 172,800 172,400 62,824 109,976
Net change in fund balance 19,900 (8,900) 143,139 123,239
FUND BALANCE (DEFICIT)
Beginning of year 17,547,620 17,547,620 17,547,620 -
End of year 17,538,720 $ 17,567,520 $ 17,690,759 $ 123,239 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
-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 229,300 $ 406,800 $ 615,649 $ 208,849 $ Developer fees 504,600 69,100 269,161 200,061
Total revenues 475,900 733,900 884,810 408,910
Net change in fund balance 475,900 733,900 884,810 408,910
FUND BALANCE (DEFICIT)
Beginning of year 11,843,721 11,843,721 11,843,721 -
End of year 12,577,621 $ 12,319,621 $ 12,728,531 $ 408,910 $ Budgeted Amounts
CITY OF LOMA LINDA
Required Supplementary Information For the year ended June 30, 2024 -91-
2. SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS – LAST TEN YEARS* Measurement Period 2017 2018 2019 2020 2021 2022 2023
Total OPEB LiabilityService Cost 18,964 $ 19,486 $ 20,022 $ 23,526 $ 24,173 $ 30,067 $ 30,894 $ Interest on the Total OPEB Liability 56,269 59,253 62,267 58,442 61,981 60,740 64,887 Changes in assumptions - - (23,320) - 44,181 - 7,583
Experience gains/(losses) - - (104,915) (30,790) (88,498) - (21,293)Benefit payments (31,110) (35,165) (13,410) - (32,698) (28,032) (31,536) Net change in Total OPEB Liability 44,123 43,574 (59,356) 51,178 9,139 62,775 50,535 Total OPEB Liability - beginning 810,182 854,305 897,879 838,523 889,701 898,840 961,615 Total OPEB Liability - ending (a) 854,305 897,879 838,523 889,701 898,840 961,615 1,012,150 Plan Fiduciary Net PositionEmployer contributions as benefits payments 120,160 35,165 23,320 - - 28,032 31,536 Investment income 29,955 24,458 28,324 16,215 141,595 45,350 38,362 Investment gains/losses - 4,140 (4,955) - - (133,218) - Actual benefit payments from employer (31,110) (35,165) (23,320) - (32,698) (28,032) (31,536) Administrative expense (156) (651) (81) (223) (194) (166) (174)Employer contributions to trust - - 54,000 44,095 32,698 31,000 31,000 Net change in Plan Fiduciary Net Position 118,849 27,947 77,288 60,087 141,401 (57,034) 69,188Plan Fiduciary Net Position - beginning 230,870 349,719 377,666 454,954 515,041 656,442 599,408 Plan Fiduciary Net Position - ending (b) 349,719 377,666 454,954 515,041 656,442 599,408 668,596 Net OPEB Liability - ending (a) - (b) 504,586 $ 520,213 $ 383,569 $ 374,660 $ 242,398 $ 362,207 $ 343,554 $ Plan fiduciary net position as a percentage of the total OPEB liability 40.94% 42.06% 54.26% 57.89% 73.03% 62.33% 66.06%Covered-employee payroll 5,508,005 $ 5,953,235 $ 6,292,694 $ 6,511,763 $ 6,551,541 $ 6,698,124 $ 6,728,813 $ Net OPEB liability as a percentage of covered-employee payroll 9.16% 8.74% 6.10% 5.75% 3.70% 5.41% 5.11%Notes to schedule:*Historical information is required only for measurement period for which GASB 75 is applicable. Future years' information will be Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in this schedule.displayed up to 10 years as information becomes available.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
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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%
2023-24 37,680 - 37,680 7,525,191 0.00%
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, 2024
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4. SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE PLAN'S NET PENSION LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE LAST 10 YEARS 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%
6/30/2023 0.08156% 10,174,817 6,792,816 149.79% 87.66%
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.
CITY OF LOMA LINDA
Required Supplementary Information
For the year ended June 30, 2024
-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%
2023-24 1,262,594 (1,262,594) - 7,589,835 16.64%
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 rampdown 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.
SUPPLEMENTARY INFORMATION
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MAJOR GOVERNMENTAL FUNDS BUDGETARY
COMPARISON SCHEDULES
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CITY OF LOMA LINDA
Special Projects Construction Capital Projects Fund
Major Governmental Fund Budgetary Comparison Schedule
For the year ended June 30, 2024
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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,133,600 $ 1,175,100 $ 1,226,092 $ 50,992 $ Total revenues 1,175,100 1,133,600 1,226,092 50,992
EXPENDITURES
Current:
Public works 7,300 7,300 7,526 (226)
Capital outlay 37,400 37,400 8,405 28,995
Total expenditures 44,700 44,700 15,931 28,769
Net change in fund balance 1,130,400 1,088,900 1,210,161 79,761
FUND BALANCE (DEFICIT)
Beginning of year 6,932,811 6,932,811 6,932,811 -
End of year 8,021,711 $ 8,063,211 $ 8,142,972 $ 79,761 $ Budgeted Amounts
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NONMAJOR GOVERNMENTAL
FUNDS
COMBINING SCHEDULES
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Nonmajor Governmental Funds
Special Revenue Funds
The Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted for expenditures related to specific purposes.
Traffic Safety Fund – This fund is to account for monies received from parking control violation fines.
Gas Tax Fund – This fund is to account for monies received and expended from the state and county gas allocation.
Accessibility Compliance Fund – This fund is used to collect and track a set fee included in each business license to be used for increased certified access specialist 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 2023-2024.
Community Development Block Grant Fund – This fund is to account for Federal grants received from the Department of Housing and Urban Development and expended in community development.
Grant Fund – This fund is to account for miscellaneous grants provided by Federal, State and County agencies such as the Code Enforcement Grant Program to purchase capital items related to Code Enforcement and California Healthy Cities to promote health and physical activity for Loma Linda residents.
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Nonmajor Governmental Funds
Special Revenue Funds, Continued
Citizens Option for Public Safety Fund – This fund is to account for AB3229 Public Safety Grant revenue received from the State and expended for front-line law enforcement.
Traffic Congestion Relief Grant Fund – This fund is to account for allocation from the state for street or road maintenance or reconstruction. The City is required to maintain existing commitment of general funds for street or roadwork in order to remain eligible for allocation of the specified funds.
Development Agreement Consideration Fund – This fund is to account for the monies received from developers to produce, improve, or preserve affordable housing within Redevelopment Project Areas that meet the needs to those whose income is 80% of the county median or below.
Capital Projects Funds
The Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities by the City except for those financed by Proprietary Funds.
The Capital Projects Funds account for the following projects:
Park Development Fund – This fund is to account for developer fees collected and expended for future park development and acquisition.
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. -98-
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 2023-2024.
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, 2024
-99-
Traffic Gas Accessibility
Safety Tax Compliance Measure I
ASSETS
Cash and investments - $ 63,113 $ 42,341 $ 285,395 $
Receivables:
Accounts - - 61 -
Taxes - 173,316 - -
Interest - - - 2,467
Contract and loans - - - -
Due from other governments 4,740 - - 157,490
Total assets $ 236,429 4,740 $ 42,402 $ 445,352 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable 432 $ - $ 92 $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Advances from other funds - - - -
Total liabilities - 432 92 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
FUND BALANCE
Restricted for:
Cultural and recreational - - - -
State mandated - - 42,310 -
Public safety - - - -
Street improvements 4,308 236,429 - 445,352
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - - -
Total fund balances (deficit) 236,429 4,308 42,310 445,352 Total liabilities, deferred inflows of resources
and fund balance $ 236,429 4,740 $ 42,402 $ 445,352 $
Special Revenue Funds
(Continued)
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Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 107,008 254,689 $ 155,136 $ 4,998 $
- - - -
8,211 - 3,759 -
1,445 2,754 2,119 32
- - - -
- - - 8,488
$ 116,664 257,443 $ 161,014 $ 13,518 $
$ 22,849 - $ 24,935 $ 3,047 $
385 - - -
- - 8,805 -
- - - -
- - - -
23,234 - 33,740 3,047
- - - 8,488
- - - -
- - - -
- - - -
93,430 257,443 127,274 -
- - - -
- - - -
- - - 1,983
- - - -
- - - -
- - - -
93,430 257,443 127,274 1,983
$ 116,664 257,443 $ 161,014 $ 13,518 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
-101-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
ASSETS
Cash and investments 68,299 $ 2 $ - $ - $
Receivables:
Accounts - - - -
Taxes - - - -
Interest 739 - - -
Contract and loans - - - -
Due from other governments - - 45,130 33,264
Total assets $ 2 69,038 $ 45,130 $ 33,264 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable - $ - $ - $ 824 $
Accrued liabilities - - - -
Due to other funds - - 45,662 6,234
Unearned revenue - - - 10,093
Advances from other funds - - - -
Total liabilities - - 45,662 17,151
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 45,130 33,264
FUND BALANCE
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - 2 - -
Street improvements 69,038 - - -
Storm drains - - - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned - - (45,662) (17,151)
Total fund balances (deficit) 2 69,038 (45,662) (17,151) Total liabilities, deferred inflows of resources
and fund balance $ 2 69,038 $ 45,130 $ 33,264 $
Special Revenue Funds
(Continued)
-102-
Citizens Option Traffic Development Total
for Public Congestion Agreement Special
Safety Fund Relief Grant Consideration Revenue Funds
$ 1,829 382,747 $ 209,829 $ 1,575,386 $
- - - 61
- - - 185,286
20 4,710 2,268 16,554
- - 19,798 19,798
- - - 249,112
$ 1,849 387,457 $ 231,895 $ 2,046,197 $
$ - - $ - $ 52,179 $
- - - 385
- - - 60,701
- 387,457 - 397,550
- - - -
- 387,457 - 510,815
- - - 86,882
- - - -
- - - 42,310
- - - 2
1,849 - - 1,235,123
- - - -
- - - -
- - - 1,983
- - - -
- - 231,895 231,895
- - - (62,813)
1,849 - 231,895 1,448,500
$ 1,849 387,457 $ 231,895 $ 2,046,197 $
Special Revenue Funds
CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
-103-
(Formerly major)
Park Storm Traffic Fire
Development Drain Impact Facilities
ASSETS
Cash and investments 751,874 $ 1,262,606 $ 1,468,964 $ 1,758,344 $ Receivables:
Accounts - - - -
Taxes - - - -
Interest 4,973 13,326 15,497 18,700
Contract and loans - - - -
Due from other governments - - - -
Total assets $ 1,275,932 756,847 $ 1,484,461 $ 1,777,044 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable 14,864 $ - $ - $ - $
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenue - - - -
Advances from other funds 2,504,500 - - -
Total liabilities - 2,519,364 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
FUND BALANCE
Restricted for:
Cultural and recreational - - - -
State mandated - - - -
Public safety - - - 1,777,044
Street improvements - - 1,484,461 -
Storm drains - 1,275,932 - -
Municipal facilities - - - -
Air quality management - - - -
Debt service - - - -
Low mod housing programs - - - -
Unassigned (1,762,517) - - -
Total fund balances (deficit) 1,275,932 (1,762,517) 1,484,461 1,777,044 Total liabilities, deferred inflows of resources
and fund balance $ 1,275,932 756,847 $ 1,484,461 $ 1,777,044 $ Capital Projects Funds
(Continued)
-104-
Total
Public Public Art in Capital Capital
General Federal/State Meeting Library Public Project Bond Projects Facilities Construction Facilities Facilities Places Proceeds Funds $ 59,274 - $ 886,055 $ 32,879 $ 207,322 $ 360,224 $ 6,035,668 $ - - - - - - -
- - - - - - -
641 - 8,852 356 1,962 4,912 64,246
- - - - - - -
- - - - - - -
$ 59,915 - $ 894,907 $ 33,235 $ 209,284 $ 365,136 $ 6,099,914 $ $ - - $ - $ - $ 91 $ - $ 91 $
- - - - - - -
- 14,715 - - - - 14,715
- - - - - - -
- - - - - - -
- 14,715 - - 91 - 14,806
- - - - - - -
- - - 33,235 209,193 - 242,428
- - - - - - -
- - - - - - 1,777,044
59,915 - - - - 365,136 1,909,512
- - - - - - 1,275,932
- - 894,907 - - - 894,907
- - - - - - -
- - - - - - -
- - - - - - -
- (14,715) - - - - (14,715)
59,915 (14,715) 894,907 33,235 209,193 365,136 6,085,108 $ 59,915 - $ 894,907 $ 33,235 $ 209,284 $ 365,136 $ 6,099,914 $ Capital Projects Funds
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CITY OF LOMA LINDA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024 (Concluded)
-105-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds
ASSETS
Cash and investments 12,756 $ 41,950 $ 54,706 $ 8,417,634 $ Receivables:
Accounts - - - 61
Taxes - - - 185,286
Interest - 454 454 86,227
Contract and loans - - - 19,798
Due from other governments - - - 249,112
Total assets $ 42,404 12,756 $ 55,160 $ 8,958,118 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable - $ - $ - $ 67,134 $
Accrued liabilities - - - 385
Due to other funds - - - 75,416
Unearned revenue - - - 397,550
Advances from other funds - - - 2,504,500
Total liabilities - - - 3,044,985
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 86,882
FUND BALANCE
Restricted for:
Cultural and recreational - - - 242,428
State mandated - - - 42,310
Public safety - - - 1,777,046
Street improvements - - - 3,144,635
Storm drains - - - 1,275,932
Municipal facilities - - - 894,907
Air quality management - - - 1,983
Debt service 12,756 42,404 55,160 55,160
Low mod housing programs - - - 231,895
Unassigned - - - (1,840,045)
Total fund balances (deficit) 42,404 12,756 55,160 5,826,251 Total liabilities, deferred inflows of resources
and fund balance $ 42,404 12,756 $ 55,160 $ 8,958,118 $ 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, 2024
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Traffic Gas Accessibility
Safety Tax Compliance Measure I
REVENUES
Taxes - $ - $ - $ 711,923 $
Intergovernmental - 1,346,909 - -
Charges for services - - 6,281 -
Use of money and property - - - 9,115
Fines and forfeitures 43,036 - - -
Developer fees - - - -
Total revenues 1,346,909 43,036 6,281 721,038
EXPENDITURES
Current:
Public safety - - - -
Community development - - 661 -
Public works - - - -
Capital outlay - 627,000 - 613,480
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 627,000 - 661 613,480
REVENUES OVER (UNDER) EXPENDITURES 719,909 43,036 5,620 107,558
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - - - -
Transfers in - - - -
Transfers out (48,121) (695,874) - -
Total other financing sources (uses) (695,874) (48,121) - - Net change in fund balances (5,085) 24,035 5,620 107,558
FUND BALANCE (DEFICIT)
Fund balance, beginning, as previously reported 9,393 212,394 36,690 337,794 Change within financial reporting entity (major to non-major) - - - - Fund balance, beginning, as restated 9,393 212,394 36,690 337,794 End of year 4,308 $ 236,429 $ 42,310 $ 445,352 $
Special Revenue Funds
(Continued)
-107-
Street Landscape Air Quality
Measure I Lighting Maintenance Management
MSART District District District
$ 365,250 - $ 452,354 $ - $
- 216,773 - 25,447
- - - -
4,753 10,495 4,473 406
- - - -
- - - -
370,003 227,268 456,827 25,853
- - - 38,684
- - 532,644 -
387,757 - - -
1,036 191,509 946 -
259 - 237 -
28 - 25 -
389,080 191,509 533,852 38,684
(19,077) 35,759 (77,025) (12,831)
- - - -
- - 120,000 -
- - - -
- - 120,000 -
(19,077) 35,759 42,975 (12,831)
112,507 221,684 84,299 14,814
- - - -
112,507 221,684 84,299 14,814
$ 93,430 257,443 $ 127,274 $ 1,983 $
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, 2024
-108-
Public Community
Improvement Asset Development Grant
Per MOU Forfeiture Block Grant Fund
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - 364,684 -
Charges for services - - - -
Use of money and property 3,407 - - -
Fines and forfeitures - - - -
Developer fees - - - -
Total revenues - 3,407 364,684 -
EXPENDITURES
Current:
Public safety - - - -
Community development - - - 15,226
Public works - - - -
Capital outlay - - 329,016 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - - 329,016 15,226
REVENUES OVER (UNDER) EXPENDITURES - 3,407 35,668 (15,226)
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - - - -
Transfers in - - - -
Transfers out - - - (1,584)
Total other financing sources (uses) - - - (1,584)
Net change in fund balances 3,407 - 35,668 (16,810)
FUND BALANCE (DEFICIT)
Fund balance, beginning, as previously reported 65,631 2 (81,330) (341) Change within financial reporting entity (major to non-major) - - - - Fund balance, beginning, as restated 65,631 2 (81,330) (341) End of year 69,038 $ 2 $ (45,662) $ (17,151) $
Special Revenue Funds
(Continued)
-109-
Citizens Option Traffic Development Total
for Public Congestion Agreement Special
Safety Fund Relief Fund Consideration Revenue Funds
$ - - $ - $ 1,529,527 $
- 239,180 - 2,192,993
- - - 6,281
91 26,633 11,386 70,759
- - - 43,036
- - - -
91 265,813 11,386 3,842,596
- 4,938 - 43,622
- - - 548,531
- - - 387,757
- 48,827 - 1,811,814
- 65,932 - 66,428
- 1,918 - 1,971
- 121,615 - 2,860,123
91 144,198 11,386 982,473
- - - -
- - - 120,000
- (136,204) - (881,783)
- (136,204) - (761,783)
91 7,994 11,386 220,690
1,758 (7,994) 220,509 1,227,810
- - - -
1,758 (7,994) 220,509 1,227,810
$ 1,849 - $ 231,895 $ 1,448,500 $
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, 2024
-110-
(Formerly major)
Park Storm Traffic Fire
Development Drain Impact Facilities
REVENUES
Taxes - $ - $ - $ - $
Intergovernmental - - - -
Charges for services - 63,049 - -
Use of money and property 13,853 60,400 69,958 84,868
Fines and forfeitures - - - -
Developer fees 606,352 - 153,662 59,610
Total revenues 123,449 620,205 223,620 144,478
EXPENDITURES
Current:
Public safety - - - -
Community development 7,251 - - -
Public works - 2,517 23,949 -
Capital outlay 36,251 12,905 122,816 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 15,422 43,502 146,765 -
REVENUES OVER (UNDER) EXPENDITURES 108,027 576,703 76,855 144,478
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets 100,104 - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - 100,104 - -
Net change in fund balances 676,807 108,027 76,855 144,478
FUND BALANCE (DEFICIT)
Fund balance, beginning, as previously reported - 1,167,905 1,407,606 1,632,566 Change within financial reporting entity (major to non-major) (2,439,324) - - - Fund balance, beginning, as restated (2,439,324) 1,167,905 1,407,606 1,632,566 End of year (1,762,517) $ 1,275,932 $ 1,484,461 $ 1,777,044 $ Capital Projects Funds
(Continued)
-111-
Total
Public Public Art in Capital Capital
General Federal/State Meeting Library Public Project Bond Projects Facilities Construction Facilities Facilities Places Proceeds Funds $ - - $ - $ - $ - $ - $ - $
- - - - - - -
- - - - - - 63,049
2,956 5,827 37,644 1,640 9,168 34,811 307,272
- - - - - - -
- 12,667 137,439 - 57,021 - 420,399
2,956 18,494 175,083 1,640 66,189 34,811 790,720
- - - - - - -
- - - - - - -
- 41,245 - - 8,941 83,364 160,016
- 121,067 - - 45,844 427,509 730,141
- - - - - - -
- - - - - - -
- 162,312 - - 54,785 510,873 890,157
2,956 (143,818) 175,083 1,640 11,404 (476,062) (99,437) - - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
2,956 (143,818) 175,083 1,640 11,404 (476,062) (99,437) 56,959 129,103 719,824 31,595 197,789 841,198 6,184,545 - - - - - - -
56,959 129,103 719,824 31,595 197,789 841,198 6,184,545 $ 59,915 (14,715) $ 894,907 $ 33,235 $ 209,193 $ 365,136 $ 6,085,108 $ 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, 2024 (Concluded)
-112-
Total Total
Water Bond Loma Linda Debt Nonmajor
Redemption Financing Service Governmental
Fund Authority Funds Funds
REVENUES
Taxes - $ - $ - $ 1,529,527 $
Intergovernmental - - - 2,192,993
Charges for services - - - 69,330
Use of money and property - 2,092 2,092 393,976
Fines and forfeitures - - - 43,036
Developer fees - - - 1,026,751
Total revenues 2,092 - 2,092 5,255,613
EXPENDITURES
Current:
Public safety - - - 43,622
Community development - - - 555,782
Public works - - - 547,773
Capital outlay - - - 2,578,206
Debt service:
Principal retirement - - - 66,428
Interest and fiscal charges - - - 1,971
Total expenditures - - - 3,793,782
REVENUES OVER (UNDER) EXPENDITURES 2,092 - 2,092 1,461,831
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - - - 100,104
Transfers in - - - 120,000
Transfers out - - - (881,783)
Total other financing sources (uses) - - - (661,679)
Net change in fund balances - 2,092 2,092 800,152
FUND BALANCE (DEFICIT)
Fund balance, beginning, as previously reported 12,756 40,312 53,068 7,465,423 Change within financial reporting entity (major to non-major) - - - (2,439,324) Fund balance, beginning, as restated 12,756 40,312 53,068 5,026,099 End of year 12,756 $ 42,404 $ 55,160 $ 5,826,251 $
Debt Service Funds
NONMAJOR GOVERNMENTAL BUDGETARY
COMPARISON SCHEDULES
This page intentionally left blank
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Safety
For the year ended June 30, 2024
-113-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures 55,200 $ 55,200 $ 43,036 $ (12,164) $ Total revenues 55,200 55,200 43,036 (12,164)
REVENUES OVER (UNDER) EXPENDITURES 55,200 55,200 43,036 (12,164)
OTHER FINANCING SOURCES (USES)
Transfers out (55,200) (55,200) (48,121) 7,079
Total other financing sources (uses) (55,200) (55,200) (48,121) 7,079 Net change in fund balance - - (5,085) (5,085)
FUND BALANCE (DEFICIT)
Beginning of year 9,393 9,393 9,393 -
End of year 9,393 $ 9,393 $ 4,308 $ (5,085) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Gas Tax
For the year ended June 30, 2024
-114-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,354,700 $ 1,293,200 $ 1,346,909 $ 53,709 $ Total revenues 1,293,200 1,354,700 1,346,909 53,709
EXPENDITURES
Capital outlay 627,000 627,000 627,000 -
Total expenditures 627,000 627,000 627,000 -
REVENUES OVER (UNDER) EXPENDITURES 666,200 727,700 719,909 53,709
OTHER FINANCING SOURCES (USES)
Transfers out (728,000) (728,000) (695,874) 32,126
Total other financing sources (uses) (728,000) (728,000) (695,874) 32,126 Net change in fund balance (61,800) (300) 24,035 85,835
FUND BALANCE (DEFICIT)
Beginning of year 212,394 212,394 212,394 -
End of year 212,094 $ 150,594 $ 236,429 $ 85,835 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Accessibility Compliance
For the year ended June 30, 2024
-115-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 8,000 $ 7,100 $ 6,281 $ (819) $
Total revenues 7,100 8,000 6,281 (819)
EXPENDITURES
Current:
Community development - - 661 (661)
Total expenditures - - 661 (661)
Net change in fund balance 7,100 8,000 5,620 (1,480)
FUND BALANCE (DEFICIT)
Beginning of year 36,690 36,690 36,690 -
End of year 44,690 $ 43,790 $ 42,310 $ (1,480) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I
For the year ended June 30, 2024
-116-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 642,900 $ 669,200 $ 711,923 $ 42,723 $
Use of money and property 8,100 4,300 9,115 4,815
Total revenues 673,500 651,000 721,038 47,538
EXPENDITURES
Capital outlay 643,000 690,000 613,480 76,520
Total expenditures 690,000 643,000 613,480 76,520
Net change in fund balance (16,500) 8,000 107,558 124,058
FUND BALANCE (DEFICIT)
Beginning of year 337,794 337,794 337,794 -
End of year 345,794 $ 321,294 $ 445,352 $ 124,058 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Measure I MSART
For the year ended June 30, 2024
-117-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 207,000 $ 207,000 $ 216,773 $ 9,773 $ Use of money and property 2,800 5,500 10,495 4,995
Total revenues 212,500 209,800 227,268 14,768
EXPENDITURES
Capital outlay 207,000 219,300 191,509 27,791
Total expenditures 219,300 207,000 191,509 27,791
Net change in fund balance (6,800) 2,800 35,759 42,559
FUND BALANCE (DEFICIT)
Beginning of year 221,684 221,684 221,684 -
End of year 224,484 $ 214,884 $ 257,443 $ 42,559 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Street Lighting District
For the year ended June 30, 2024
-118-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 371,400 $ 371,400 $ 365,250 $ (6,150) $
Use of money and property 1,800 2,200 4,753 2,553
Miscellaneous 100 100 - (100)
Total revenues 373,700 373,300 370,003 (3,697)
EXPENDITURES
Current:
Public works 410,300 460,900 387,757 73,143
Capital outlay 1,100 1,600 1,036 564
Debt service:
Principal retirement - 400 259 141
Interest and fiscal charges - 200 28 172
Total expenditures 463,100 411,400 389,080 74,020
Net change in fund balance (89,400) (38,100) (19,077) 70,323
FUND BALANCE (DEFICIT)
Beginning of year 112,507 112,507 112,507 -
End of year 74,407 $ 23,107 $ 93,430 $ 70,323 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Landscape Maintenance District
For the year ended June 30, 2024
-119-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 447,800 $ 457,500 $ 452,354 $ (5,146) $
Use of money and property 1,200 2,400 4,473 2,073
Miscellaneous 100 100 - (100)
Total revenues 460,000 449,100 456,827 (3,173)
EXPENDITURES
Current:
Community development 628,600 672,100 532,644 139,456
Capital outlay 1,000 1,400 946 454
Debt service:
Principal retirement - 400 237 163
Interest and fiscal charges - 200 25 175
Total expenditures 674,100 629,600 533,852 140,248
REVENUES OVER (UNDER) EXPENDITURES (214,100) (180,500) (77,025) 137,075
OTHER FINANCING SOURCES (USES)
Transfers in 120,000 120,000 120,000 -
Total other financing sources (uses) 120,000 120,000 120,000 - Net change in fund balance (94,100) (60,500) 42,975 137,075
FUND BALANCE (DEFICIT)
Beginning of year 84,299 84,299 84,299 -
End of year 23,799 $ (9,801) $ 127,274 $ 137,075 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Air Quality Management District
For the year ended June 30, 2024
-120-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 32,500 $ 32,500 $ 25,447 $ (7,053) $
Use of money and property 200 200 406 206
Total revenues 32,700 32,700 25,853 (6,847)
EXPENDITURES
Current:
Public safety 38,600 38,600 38,684 (84)
Total expenditures 38,600 38,600 38,684 (84)
Net change in fund balance (5,900) (5,900) (12,831) (6,931)
FUND BALANCE (DEFICIT)
Beginning of year 14,814 14,814 14,814 -
End of year 8,914 $ 8,914 $ 1,983 $ (6,931) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Improvements Per MOU
For the year ended June 30, 2024
-121-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,300 $ 2,300 $ 3,407 $ 1,107 $ Total revenues 2,300 1,300 3,407 1,107
Net change in fund balance 2,300 1,300 3,407 1,107
FUND BALANCE (DEFICIT)
Beginning of year 65,631 65,631 65,631 -
End of year 66,931 $ 67,931 $ 69,038 $ 1,107 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Community Development Block Grant
For the year ended June 30, 2024
-122-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 273,000 $ 335,200 $ 364,684 $ 29,484 $ Use of money and property 200 200 - (200)
Total revenues 335,400 273,200 364,684 29,284
EXPENDITURES
Capital outlay 240,000 330,000 329,016 984
Total expenditures 330,000 240,000 329,016 984
Net change in fund balance 5,400 33,200 35,668 30,268
FUND BALANCE (DEFICIT)
Beginning of year (81,330) (81,330) (81,330) -
End of year (48,130) $ (75,930) $ (45,662) $ 30,268 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Grant Fund
For the year ended June 30, 2024
-123-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 65,400 $ 115,522 $ - $ (115,522) $
Total revenues 115,522 65,400 - (115,522)
EXPENDITURES
Current:
Community development 53,900 53,900 15,226 38,674
Capital outlay - 50,122 - 50,122
Total expenditures 104,022 53,900 15,226 88,796
REVENUES OVER (UNDER) EXPENDITURES 11,500 11,500 (15,226) (26,726)
OTHER FINANCING SOURCES (USES)
Transfers out - - (1,584) (1,584)
Total other financing sources (uses) - - (1,584) (1,584) Net change in fund balance 11,500 11,500 (16,810) (28,310)
FUND BALANCE (DEFICIT)
Beginning of year (341) (341) (341) -
End of year 11,159 $ 11,159 $ (17,151) $ (28,310) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Citizens Option for Public Safety
For the year ended June 30, 2024
-124-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 185,500 $ 252,900 $ 239,180 $ (13,720) $ Use of money and property 10,100 19,100 26,633 7,533
Total revenues 272,000 195,600 265,813 (6,187)
EXPENDITURES
Current:
Public safety 47,300 16,600 4,938 11,662
Capital outlay - 55,000 48,827 6,173
Debt service:
Principal retirement - 66,100 65,932 168
Interest and fiscal charges - 2,000 1,918 82
Total expenditures 139,700 47,300 121,615 18,085
REVENUES OVER (UNDER) EXPENDITURES 132,300 148,300 144,198 11,898
OTHER FINANCING SOURCES (USES)
Transfers out (138,200) (138,200) (136,204) 1,996
Total other financing sources (uses) (138,200) (138,200) (136,204) 1,996 Net change in fund balance (5,900) 10,100 7,994 13,894
FUND BALANCE (DEFICIT)
Beginning of year (7,994) (7,994) (7,994) -
End of year 2,106 $ (13,894) $ - $ 13,894 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Congestion Relief Grant
For the year ended June 30, 2024
-125-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 100 $ 100 $ 91 $ (9) $
Total revenues 100 100 91 (9)
Net change in fund balance 100 100 91 (9)
FUND BALANCE (DEFICIT)
Beginning of year 1,758 1,758 1,758 -
End of year 1,858 $ 1,858 $ 1,849 $ (9) $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Development Agreement Consideration
For the year ended June 30, 2024
-126-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 4,800 $ 7,900 $ 11,386 $ 3,486 $ Total revenues 7,900 4,800 11,386 3,486
Net change in fund balance 7,900 4,800 11,386 3,486
FUND BALANCE (DEFICIT)
Beginning of year 220,509 220,509 220,509 -
End of year 225,309 $ 228,409 $ 231,895 $ 3,486 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Park Development Fund
For the year ended June 30, 2024
-127-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 15,500 $ 4,600 $ 13,853 $ 9,253 $ Developer fees 1,133,700 122,900 606,352 483,452
Total revenues 127,500 1,149,200 620,205 492,705
EXPENDITURES
Current:
Community development 95,900 95,900 7,251 88,649
Capital outlay 479,400 479,400 36,251 443,149
Total expenditures 575,300 575,300 43,502 531,798
REVENUES OVER (UNDER) EXPENDITURES (447,800) 573,900 576,703 1,024,503
OTHER FINANCING SOURCES (USES)
Proceeds from disposal of assets - - 100,104 100,104
Total other financing sources (uses) - - 100,104 100,104 Net change in fund balance (447,800) 573,900 676,807 1,124,607
FUND BALANCE (DEFICIT)
Beginning of year (2,439,324) (2,439,324) (2,439,324) - End of year (1,865,424) $ (2,887,124) $ (1,762,517) $ 1,124,607 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Storm Drain
For the year ended June 30, 2024
-128-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 95,800 $ 13,800 $ 63,049 $ 49,249 $ Use of money and property 22,600 39,800 60,400 20,600
Total revenues 53,600 118,400 123,449 69,849
EXPENDITURES
Current:
Public works - 2,900 2,517 383
Capital outlay - 15,000 12,905 2,095
Total expenditures 17,900 - 15,422 2,478
Net change in fund balance 35,700 118,400 108,027 72,327
FUND BALANCE (DEFICIT)
Beginning of year 1,167,905 1,167,905 1,167,905 -
End of year 1,286,305 $ 1,203,605 $ 1,275,932 $ 72,327 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Traffic Impact
For the year ended June 30, 2024
-129-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 30,800 $ 44,800 $ 69,958 $ 25,158 $ Developer fees 210,800 98,800 153,662 54,862
Total revenues 143,600 241,600 223,620 80,020
EXPENDITURES
Current:
Public works 25,700 27,200 23,949 3,251
Capital outlay 132,000 139,700 122,816 16,884
Total expenditures 166,900 157,700 146,765 20,135
Net change in fund balance (23,300) 83,900 76,855 100,155
FUND BALANCE (DEFICIT)
Beginning of year 1,407,606 1,407,606 1,407,606 -
End of year 1,491,506 $ 1,384,306 $ 1,484,461 $ 100,155 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Fire Facilities
For the year ended June 30, 2024
-130-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 31,600 $ 56,100 $ 84,868 $ 28,768 $ Developer fees 47,200 13,900 59,610 45,710
Total revenues 70,000 78,800 144,478 74,478
Net change in fund balance 70,000 78,800 144,478 74,478
FUND BALANCE (DEFICIT)
Beginning of year 1,632,566 1,632,566 1,632,566 -
End of year 1,711,366 $ 1,702,566 $ 1,777,044 $ 74,478 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
General Facilities
For the year ended June 30, 2024
-131-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 6,300 $ 3,000 $ 5,827 $ 2,827 $ Developer fees 30,700 3,000 12,667 9,667
Total revenues 6,000 37,000 18,494 12,494
EXPENDITURES
Current:
Public works 321,000 42,600 41,245 1,355
Capital outlay 175,300 218,600 121,067 97,533
Total expenditures 261,200 496,300 162,312 98,888
Net change in fund balance (255,200) (459,300) (143,818) 111,382
FUND BALANCE (DEFICIT)
Beginning of year 129,103 129,103 129,103 -
End of year (330,197) $ (126,097) $ (14,715) $ 111,382 $ Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Federal/State Construction
For the year ended June 30, 2024
-132-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 1,300 $ 2,000 $ 2,956 $ 956 $ Total revenues 2,000 1,300 2,956 956
Net change in fund balance 2,000 1,300 2,956 956
FUND BALANCE (DEFICIT)
Beginning of year 56,959 56,959 56,959 -
End of year 58,259 $ 58,959 $ 59,915 $ 956 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Meeting Facilities
For the year ended June 30, 2024
-133-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 13,900 $ 24,800 $ 37,644 $ 12,844 $ Developer fees 260,000 25,800 137,439 111,639
Total revenues 50,600 273,900 175,083 124,483
Net change in fund balance 50,600 273,900 175,083 124,483
FUND BALANCE (DEFICIT)
Beginning of year 719,824 719,824 719,824 -
End of year 993,724 $ 770,424 $ 894,907 $ 124,483 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Public Library Facilities
For the year ended June 30, 2024
-134-
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 600 $ 1,100 $ 1,640 $ 540 $
Total revenues 1,100 600 1,640 540
Net change in fund balance 1,100 600 1,640 540
FUND BALANCE (DEFICIT)
Beginning of year 31,595 31,595 31,595 -
End of year 32,195 $ 32,695 $ 33,235 $ 540 $
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Art in Public Places
For the year ended June 30, 2024
-135-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 4,500 $ 5,800 $ 9,168 $ 3,368 $ Developer fees 43,500 7,700 57,021 49,321
Total revenues 13,500 48,000 66,189 52,689
EXPENDITURES
Current:
Public works 9,800 9,800 8,941 859
Capital outlay 50,000 50,000 45,844 4,156
Total expenditures 59,800 59,800 54,785 5,015
Net change in fund balance (46,300) (11,800) 11,404 57,704
FUND BALANCE (DEFICIT)
Beginning of year 197,789 197,789 197,789 -
End of year 185,989 $ 151,489 $ 209,193 $ 57,704 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Capital Projects Bond Proceeds
For the year ended June 30, 2024
-136-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 22,800 $ 20,000 $ 34,811 $ 14,811 $ Total revenues 20,000 22,800 34,811 14,811
EXPENDITURES
Current:
Public works 19,500 117,000 83,364 33,636
Capital outlay 600,000 600,000 427,509 172,491
Total expenditures 717,000 619,500 510,873 206,127
Net change in fund balance (697,000) (596,700) (476,062) 220,938
FUND BALANCE (DEFICIT)
Beginning of year 841,198 841,198 841,198 -
End of year 244,498 $ 144,198 $ 365,136 $ 220,938 $
Budgeted Amounts
CITY OF LOMA LINDA
Budgetary Comparison Schedule
Loma Linda Financing Authority
For the year ended June 30, 2024
-137-
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 800 $ 1,400 $ 2,092 $ 692 $
Total revenues 1,400 800 2,092 692
EXPENDITURES
Current:
General government 400 400 - 400
Total expenditures 400 400 - 400
Net change in fund balance 1,000 400 2,092 1,092
FUND BALANCE (DEFICIT)
Beginning of year 40,312 40,312 40,312 -
End of year 40,712 $ 41,312 $ 42,404 $ 1,092 $
Budgeted Amounts
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STATISTICAL SECTION
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-138-
Contents Page
Financial Trends 140
Revenue Capacity 151
Debt Capacity 159
Demographic and Economic Information 165
Operating Information 168
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)
-139-
Fiscal Year 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $ 54,701,694 55,885,140 $ 54,669,551 $ 53,645,346 $ Restricted 27,181,403 41,158,883 34,485,340 40,009,123
Unrestricted (6,245,613) 10,216,095 15,833,197 11,961,248 Total governmental activities net position 76,820,930 $ 106,076,672 $ 104,988,088 $ 105,615,717 $ Business-type activities
Net investment in capital assets $ 36,315,946 37,347,912 $ 35,575,964 $ 35,053,848 $ Restricted 40,840 41,054 760,313 684,561
Unrestricted (13,846,636) (6,145,456) (7,140,329) (7,304,285) Total business-type activities net position 23,542,116 $ 30,211,544 $ 29,195,948 $ 28,434,124 $ Primary government
Net investment in capital assets $ 91,017,640 93,233,052 $ 90,245,515 $ 88,699,194 $ Restricted 27,222,243 41,199,937 35,245,653 40,693,684
Unrestricted (20,092,249) 4,070,639 8,692,868 4,656,963 Total primary government net position 100,363,046 $ 136,288,216 $ 134,184,036 $ 134,049,841 $ Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Net Position by Component, Continued
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-140-
2019 2020 2021 2022 2023 2024
$ 52,098,547 53,363,136 $ 52,880,007 $ 54,585,683 $ 66,560,428 $ 67,010,163 $ 41,042,155 40,255,257 43,777,701 43,645,029 43,785,591 46,186,248 16,553,951 13,949,530 13,952,683 26,633,948 21,046,810 20,487,539 $ 109,694,653 107,567,923 $ 110,610,391 $ 124,864,660 $ 131,392,829 $ 133,683,950 $ $ 35,564,416 35,191,938 $ 36,344,853 $ 36,429,645 $ 38,657,337 $ 44,485,017 $ 681,788 396,401 682,253 685,433 691,514 706,511
(8,564,601) (8,176,541) (8,688,855) (5,324,916) (7,643,448) (13,857,693) $ 27,681,603 27,411,798 $ 28,338,251 $ 31,790,162 $ 31,705,403 $ 31,333,835 $ $ 87,662,963 88,555,074 $ 89,224,860 $ 91,015,328 $ 105,217,765 $ 111,495,180 $ 41,723,943 40,651,658 44,459,954 44,330,462 44,477,105 46,892,759 7,989,350 5,772,989 5,263,828 21,309,032 13,403,362 6,629,846 $ 137,376,256 134,979,721 $ 138,948,642 $ 156,654,822 $ 163,098,232 $ 165,017,785 $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-141-
Fiscal Year 2015 2016 2017 2018
Expenses
Governmental activities:
General government 3,387,169 $ 3,671,993 $ 4,183,558 $ 3,446,226 $ Public safety 8,772,658 9,304,542 11,026,804 12,531,692 Community development 2,278,470 1,841,405 2,390,338 2,530,022 Public works 3,948,235 4,676,124 4,411,533 6,231,901
Interest on long-term debt 128,956 (12,257) 6,053 -
Total governmental activities expenses 18,515,488 19,481,807 22,018,286 24,739,841 Business-type activities:
Water acquisition 32,458 47,594 231,003 142,488
Water enterprise 6,529,987 5,697,329 5,956,326 6,581,432 Sewer capital 4,128,121 4,100,045 4,237,844 4,484,711
Loma Linda Connected Communities 1,183,177 1,118,342 1,056,877 1,082,358 Total business-type activities expenses 11,873,743 10,963,310 11,482,050 12,290,989 Total primary government expenses 30,389,231 $ 30,445,117 $ 33,500,336 $ 37,030,830 $ Program Revenues
Governmental activities:
Charges for services:
General Government 2,230,122 $ 1,914,239 $ 2,411,391 $ 2,601,912 $ Public Safety 576,908 982,772 2,072,189 2,542,110
Community development 1,247,138 7,689,602 703,820 1,311,497 Public works 1,523,530 1,329,226 1,318,224 1,561,965
Operating contributions and grants 227,592 675,510 918,093 772,551 Capital contributions and grants 1,276,451 1,321,811 349,723 151,081 13,913,160 7,081,741 7,773,440 8,941,116
Business-type activities:
Charges for services:
Water acquisition 249,351 506,018 124,489 392,278
Water enterprise 4,970,004 4,570,660 4,910,137 5,620,078 Sewer capital 3,843,936 3,853,476 4,187,465 4,675,647
Loma Linda Connected Communities 399,978 362,285 389,793 317,575 Capital Grants and Contributions - - - -
9,292,439 9,463,269 9,611,884 11,005,578
Total primary government revenues 16,545,010 $ 23,205,599 $ 17,385,324 $ 19,946,694 $ Net (expense)/revenue
Governmental activities (11,433,747) $ (5,568,647) $ (14,244,846) $ (15,798,725) $ Business-type activities (2,410,474) (1,670,871) (1,870,166) (1,285,411) $ (7,239,518) (13,844,221) $ (16,115,012) $ (17,084,136) $ Total governmental activities program revenues
Total business-type activities program revenues
Total primary government net (expense)/revenue
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Changes in Net Position, Continued
Last Ten (10) Fiscal Years
(accrual basis of accounting)
-142-
2019 2020 2021 2022 2023 2024
$ 4,655,547 6,425,416 $ 2,432,363 $ 2,068,926 $ 3,310,972 $ 2,765,554 $ 13,132,883 13,454,286 15,816,365 10,634,051 20,947,648 19,028,767 3,646,694 2,309,000 3,405,290 2,264,274 3,841,626 3,501,151 7,191,106 7,202,335 6,691,119 4,811,300 7,867,724 7,820,046 3,148 7,778 1,606 2,643 2,995 4,546
28,629,378 29,398,815 28,346,743 19,781,194 35,970,965 33,120,064 163,718 651,998 34,407 271,277 177,556 1,268,450
7,321,257 7,334,056 7,451,276 4,974,785 9,683,633 8,205,930 4,780,642 4,655,471 4,848,037 3,894,446 5,986,152 6,007,093 1,075,479 981,077 998,596 834,694 1,097,751 1,025,311
13,341,096 13,622,602 13,332,316 9,975,202 16,945,092 16,506,784 $ 41,970,474 43,021,417 $ 41,679,059 $ 29,756,396 $ 52,916,057 $ 49,626,848 $ $ 2,947,216 3,237,396 $ 3,309,689 $ 2,924,322 $ 2,815,553 $ 3,800,863 $ 2,326,787 2,701,403 3,572,136 4,423,248 4,124,985 3,981,857 3,465,549 3,102,051 7,298,611 1,310,861 519,865 1,498,296 1,782,676 1,820,291 3,049,457 2,065,657 2,002,385 2,612,847 664,307 2,552,498 - 3,913,570 3,973,992 1,350,353
1,510,791 1,308,805 - 2,213,685 12,481,660 2,562,290
12,697,326 14,722,444 17,229,893 16,851,343 25,918,440 15,806,506 1,141,226 643,278 521,151 283,721 273,729 461,280
6,076,134 5,745,814 6,908,052 7,001,145 6,764,478 6,678,997 5,327,464 5,021,365 5,565,852 5,531,874 5,895,903 6,246,593 359,079 326,992 342,360 326,196 322,398 328,029
- - - - 2,774,835 945,458
12,903,903 11,737,449 13,337,415 13,142,936 16,031,343 14,660,357 $ 25,601,229 26,459,893 $ 30,567,308 $ 29,994,279 $ 41,949,783 $ 30,466,863 $ $ (15,932,052) (14,676,371) $ (11,116,850) $ (2,929,851) $ (10,052,525) $ (17,313,558) $ (437,193) (1,885,153) 5,099 3,167,734 (913,749) (1,846,427) $ (16,369,245) (16,561,524) $ (11,111,751) $ 237,883 $ (10,966,274) $ (19,159,985) $
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting) (Continued)
-143-
Fiscal Year 2015 2016 2017 2018
General Revenues and Other Changes in
Net Position
Government activities:
Taxes
Property taxes 2,424,066 $ 2,119,528 $ 2,193,323 $ 2,489,895 $ Sales taxes 5,721,938 7,575,743 6,692,095 8,692,611
Franchise tax 848,712 852,859 886,502 960,660
Other taxes 831,258 1,065,353 1,116,979 882,677
Motor vehicle in lieu, unrestricted - - - -
Intergovernmental 2,205,319 1,258,590 1,987,145 2,197,430 Transfers - - (290,619) (84,916)
Total taxes and transfers 12,031,293 12,872,073 12,585,425 15,138,357 Investment income 503,598 610,671 487,762 970,488
Miscellaneous 36,389 26,759 8,523 210,983
Gain (Loss) on sale of capital assets - - 74,552 426,863 Total governmental activities 12,571,280 13,509,503 13,156,262 16,746,691 Business-type activities:
Investment income 7,932 128,012 86,522 167,515
Miscellaneous 650,590 680,341 477,429 458,106
Transfers - - 290,619 84,916
Gain (Loss) on sale of capital assets - - 20,062
Total business-type activities 658,522 808,353 854,570 730,599 Total primary government 13,229,802 $ 14,317,856 $ 14,010,832 $ 17,477,290 $ 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 1,137,533 $ 29,255,742 $ (1,088,584) $ 947,966 $ Business-type activities (1,751,952) 6,669,428 (1,015,596) (554,812) Total primary government (614,419) $ 35,925,170 $ (2,104,180) $ 393,154 $ Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Changes in Net Position
Last Ten (10) Fiscal Years
(accrual basis of accounting) (Continued)
-144-
2019 2020 2021 2022 2023 2024
$ 3,086,116 2,787,070 $ 3,043,003 $ 3,390,738 $ 3,586,971 $ 3,764,468 $ 9,008,051 7,700,848 3,673,588 7,951,156 5,905,806 7,112,227 990,531 961,693 1,060,786 1,346,875 1,535,743 1,655,214 850,823 1,003,817 922,825 951,306 1,026,759 1,034,429
2,433,722 2,293,699 2,504,220 2,745,301 2,943,157 3,142,433 - - - - - -
9,305 4,799 (83,538) 167,951 40,370 32,003
16,378,548 14,751,926 11,120,884 16,553,327 15,038,806 16,740,774 1,472,804 1,290,647 (388,070) 204,757 1,463,744 2,841,791 196,705 555,160 1,274,064 53,959 68,694 174,586
10,725 30,844 25,710 (27,923) 9,450 (152,472)
18,058,782 16,628,577 12,032,588 16,784,120 16,580,694 19,604,679 208,279 271,702 62,642 (64,894) 278,367 703,425
508,024 595,149 501,164 517,022 588,493 803,437
(9,305) (4,799) 83,538 (167,951) (40,370) (32,003)
- 775 4,205 - 2,500 -
706,998 862,827 651,549 284,177 828,990 1,474,859
$ 18,765,780 17,491,404 $ 12,684,137 $ 17,068,297 $ 17,409,684 $ 21,079,538 $ $ - - $ - $ - $ - $ - $
- - - - - -
$ - - $ - $ - $ - $ - $
$ 2,126,730 1,952,206 $ 915,738 $ 13,854,269 $ 6,528,169 $ 2,291,121 $ 269,805 (1,022,326) 656,648 3,451,911 (84,759) (371,568) $ 2,396,535 929,880 $ 1,572,386 $ 17,306,180 $ 6,443,410 $ 1,919,553 $ 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) -145-
Fiscal Sales & Use Property Franchise Transfer Transient Business Misc.
Year Tax Taxes Fees Tax Tax License Taxes Assessments Total2015 6,097,691 $ 3,432,704 $ 848,712 $ 47,546 $ 49,442 $ 390,291 $ 25,449 $ 732,770 $ 11,624,605 $ 2016 7,967,387 3,155,172 852,859 98,258 271,443 385,533 26,316 732,970 13,489,938 2017 7,105,414 3,390,512 886,501 39,340 347,981 345,257 21,463 739,575 12,876,0432018 7,969,204 3,866,981 960,660 70,346 464,980 406,853 23,755 737,087 14,499,866 2019 8,389,129 1,978,818 961,693 65,828 670,867 321,975 2,293,698 * 753,400 15,435,408 2020 5,681,899 2,224,740 990,532 112,203 530,943 308,457 2,433,722 * 760,596 13,043,092 2021 7,034,866 2,135,818 1,060,786 145,433 622,280 235,034 2,504,220 * 773,788 14,512,225 2022 7,951,156 2,483,539 1,346,875 125,626 608,867 328,797 13,642 * 781,573 13,640,0752023 5,906,330 2,711,506 1,535,743 72,412 631,126 382,648 13,920 * 803,053 12,056,738 2024 7,169,311 2,890,058 1,655,214 56,805 665,720 351,957 16,752 817,605 13,623,422 Includes General, Special Revenue, Debt Service and Capital Projects Funds.* 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.
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-146-
Fiscal year 2015 2016 2017 2018 2019
General Fund
Non Spendable:
Inventories 18,966 $ 12,299 $ 10,933 $ 14,944 $ 9,298 $ Prepaid items 8,569 619,657 19,063 3,261 1,577
Restricted for:
- - - 5,848 6,399
General government 18,872 - - - -
Committted for:
Emergency contingency 3,500,000 5,500,000 5,500,000 5,500,000 2,000,000 Assigned for:
Refuse services 95,832 97,690 91,540 99,033 103,035
Fire equipment replacement 270,040 104,144 88,812 224,776 272,593 Fire training
Sewer loan - - - - -
Capital equipment replacement 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 Unfunded liabilities - - - 2,000,000 -
Unassigned 6,827,235 5,868,335 5,836,876 6,664,717 7,720,336 Total general fund 11,989,514 $ 13,452,125 $ 12,797,224 $ 15,762,579 $ 11,363,238 $ All other governmental funds
Non Spendable:
Prepaid items 40,672 $ 1,259 $ 1,036 $ 20 $ - $
Restricted for:
Cultural and recreational 332,436 345,310 370,928 375,309 447,552 State mandated - - - - -
Public safety 452,514 672,745 701,990 735,937 818,020
Street improvements 4,295,300 15,919,327 14,596,849 19,814,982 19,684,580 Storm drains 771,018 792,052 801,366 847,125 797,517
Municipal facilities 195,306 204,971 133,774 165,984 378,816 Air quality management 86,456 63,454 47,451 27,763 25,952 Debt service 137,614 136,148 137,112 139,030 142,206
Low/mod hosing programs 17,810,779 17,933,640 17,695,044 17,903,020 17,960,614 Unassigned (6,363,912) (2,635,280) (2,935,592) (3,534,374) (2,186,552) Total all other governmental funds 17,758,183 $ 33,433,626 $ 31,549,958 $ 36,474,796 $ 38,068,705 $ State Mandated
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-147-
2020 2021 2022 2023 2024
$ 18,268 20,290 $ 30,427 $ 24,688 $ 21,480 $
1,763 2,816 8,537 17,781 9,471
- - - - -
- - - - -
2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
167,204 135,495 210,124 276,796 259,235
365,170 282,099 470,908 514,929 529,390
34,316 32,714
424,303 422,673 124,738 - -
1,250,000 1,250,000 1,250,000 1,250,000 1,250,000
- - - - -
8,378,141 5,970,489 12,917,535 15,212,702 17,164,414
$ 12,604,849 10,083,862 $ 17,012,269 $ 19,329,610 $ 21,268,306 $ $ - - $ - $ - $ - $
326,905 362,529 282,110 229,384 242,428
24,550 18,952 30,542 36,690 42,310
1,572,294 1,046,468 1,591,101 1,632,568 1,777,046
22,567,239 20,182,145 21,857,232 22,070,796 24,016,138
1,113,026 900,539 1,132,285 1,167,905 1,275,932
1,022,630 767,588 1,062,504 848,927 894,907
27,245 32,944 12,194 14,814 1,983
53,256 144,929 52,583 53,068 55,160
17,151,467 17,605,013 17,655,020 17,768,129 17,922,654
(1,853,102) (2,754,783) (2,233,176) (2,472,030) (1,840,045) $ 42,005,510 38,306,324 $ 41,442,395 $ 41,350,251 $ 44,388,513 $
CITY OF LOMA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-148-
Fiscal Year 2015 2016 2017 2018
Revenues
Taxes 11,624,605 $ 13,489,938 $ 12,876,043 $ 14,499,866 $ Licenses and permits 629,954 478,522 398,756 463,878
Intergovernmental revenues 961,314 1,516,208 994,225 888,521 Charges for services 1,789,325 1,848,851 3,153,168 3,563,490 Use of money and property 451,109 508,805 757,656 2,820,221 Fines, forfeitures, and penalties 154,642 142,437 129,123 115,205 Miscellaneous 2,811,345 2,625,326 2,353,757 2,848,072
Developer fees 518,956 7,092,505 188,523 735,690
Total Revenues 18,941,250 27,702,592 20,851,251 25,934,943 Expenditures
General government 2,816,532 3,057,584 3,831,946 2,870,793 Public safety 8,494,523 9,522,944 11,005,886 12,153,050 Community development 1,997,868 1,725,470 2,279,446 2,372,587 Public works 2,235,090 2,789,413 2,659,712 2,821,934
Capital outlay 3,024,351 1,033,346 2,606,365 3,410,812
Debt service
Principal retirement 1,905,590 31,853 33,165 34,532
Interest and fiscal charges 132,266 28,855 7,419 6,053
Total Expenditures 20,606,220 18,189,465 22,423,939 23,669,761 Excess of revenues
over (under) expenditures (1,664,970) 9,513,127 (1,572,688) 2,265,182 Other Financing Sources (Uses)
Lease acquisition - - - -
Gain on disposal of assets 20,000 56,415 74,552 567,549 Loss of disposal of assets (114,031) - - -
Subscription acquisition - - - -
Transfers in 2,218,439 829,833 834,210 743,146
Transfers out (2,218,439) (829,833) (1,124,829) (828,062) Total Other Financing Sources (Uses) (94,031) 56,415 (216,067) 482,633 Net Change in Fund Balances Before Extraordinary Item (1,759,001) 9,569,542 (1,788,755) 2,747,815 Extraordinary Item* - 7,568,512 - -
Net Change in Fund Balances (1,759,001) $ 17,138,054 $ (1,788,755) $ 2,747,815 $ Debt Service as a percentage of
non-capital expenditures 11.4% 0.4% 0.2% 0.2%
*Extraordinary item did not apply to prior years.
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Changes in Fund Balances of Governmental Funds
Last Ten (10) Fiscal Years
(modified accrual basis of accounting)
-149-
2019 2020 2021 2022 2023 2024
$ 13,043,092 15,435,408 $ 14,512,225 $ 13,635,005 $ 12,056,738 $ 13,623,422 $ 858,993 495,979 639,968 674,337 522,625 638,059
1,632,833 3,669,009 2,644,460 8,443,940 8,968,712 5,374,922 4,006,691 4,053,022 4,067,319 4,701,339 4,790,465 5,397,062 2,322,671 2,412,446 1,744,388 1,297,574 2,549,996 3,883,318 79,897 472,114 58,347 77,790 62,577 44,625
2,869,489 3,681,395 3,903,673 3,640,957 3,781,453 3,947,012 2,476,701 2,182,962 6,288,823 995,616 273,942 1,295,912 27,290,367 32,402,335 33,859,203 33,466,558 33,006,508 34,204,332 3,778,105 6,595,193 2,289,017 3,093,515 2,235,610 2,222,341 13,294,924 17,476,968 14,090,224 15,429,737 16,534,477 16,413,800 3,173,643 2,411,105 3,032,467 2,824,271 2,721,090 2,532,544 3,386,611 3,233,008 3,700,043 3,713,343 3,990,992 4,263,633 4,678,287 5,486,524 4,428,866 5,334,219 5,363,304 4,198,735 37,436 35,955 38,979 14,289 24,691 102,528
3,148 4,630 1,606 2,643 2,995 4,546
28,352,154 35,243,383 27,581,202 30,412,017 30,873,159 29,738,127 (1,061,787) (2,841,048) 6,278,001 3,054,541 2,133,349 4,466,205 - - - 96,789 17,793 -
10,725 30,844 25,710 125,024 9,450 115,729
- - - - - -
- - - - 24,235 363,021
771,715 771,153 1,106,744 4,005,222 3,897,366 1,033,910 (762,410) (766,354) (1,190,282) (3,837,271) (3,856,996) (1,001,907) 20,030 35,643 (57,828) 389,764 91,848 510,753
(1,041,757) (2,805,405) 6,220,173 3,444,305 2,225,197 4,976,958 - - - - - -
$ (1,041,757) (2,805,405) $ 6,220,173 $ 3,444,305 $ 2,225,197 $ 4,976,958 $
0.1% 0.2% 0.2% 0.1% 0.1% 0.4%
CITY OF LOMA LINDA
General Fund Tax Revenues by Source Last Ten (10) Fiscal Years (modified accrual basis of accounting) -150-
Fiscal Sales & Use Property Franchise Transfer Transient Business Misc.
Year Tax Taxes Fees Tax Tax License Taxes Total
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 5,232,734 2,711,506 1,535,743 72,412 631,126 379,901 13,920 10,577,342 2024 6,457,390 2,890,058 1,655,214 56,805 665,720 351,957 16,751 12,093,895 * Amount includes Motor vehicle in-lieu revenue. Motor vehicle in-lieu revenue was reclassified as intergovernmental revenues beginning in fiscal year 2022.
Source: City of Loma Linda Finance Department
CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2024, and Ten Years Ago
-151-
Business Name Business Category
Anixter Electrical Equipment
Arco AM PM Services Stations
Bakers Burgers Quick Services Restaurants
Bear Oil Union 76 Services Stations
Chevron Services Stations
Clarks Nutritional Center Food Stores Non-Grocery
Farmers Boys Fast-Casual Restaurants
Hometown Buffet Casual Dining
Honda Lease Trust Auto Lease
Hyundai Inland Empire
Hyundai Lease Tilting Trust Auto Lease
KD Sales Plumbing Supplies Plumbing/Electrical Supplies Loma Linda Foundation Government/Social Org.
Loma Linda Mercantile Medical/Biotech
Loma Linda Optical Department Government/Social Org.
Loma Linda University Bookstore Stationary/Book stores
Loma Linda University Medical Center Medical/Biotech
Mansfield Oil Petroleum Prod/Equipment
McDonald's Quick Services Restaurants
Party Rentals Specialty Stores
Quaid Harley Davidson Boats/Motorcycles
Rite Aid Drug Store
Spreen Honda New Motor Vehicle Dealers
Stater Bros Grocery Stores
Walmart Neighborhood Market 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 2014-15
CITY OF LOMA LINDA
Top 25 Sales Tax Producers
As of June 30, 2024 (Continued)
-152-
Business Name Business Category
ABI Document Support Services Business Services
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
Daikin Comfort Technologies Distribution Light Industrial/Printers Direct Auto Group Used Automotive Dealers
Dollar Tree Variety Stores
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 University Medical Center Medical/Biotech
Mansfield Oil Petroleum Prod/Equipment
McDonalds
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
Walmart Neighborhood Market Grocery Stores
Percent of Fiscal Year Total Paid by Top 25 Accounts=93.96% Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HDL Companies For Fiscal year 2023-2024
CITY OF LOMA LINDA
Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) As of June 30, 2024 -153-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Food Stores 14,974 $ 17,040 $ 17,761 $ 18,016 $ 17,835 $ 17,672 $ 20,833 $ 19,919 $ 19,946 $ 20,129 $ Eating and Drinking Places 23,684 27,887 27,559 29,054 28,868 29,513 24,916 30,278 31,610 36,616 Auto Dealers and Supplies 101,129 112,499 122,391 132,069 135,623 123,557 112,882 130,380 141,841 133,331 Other Retail Stores 68,307 72,844 68,605 71,709 76,991 73,048 59,736 78,615 92,251 39,069 All Other Outlets 354,140 400,130 394,144 433,870 611,789 678,554 596,536 769,285 830,982 757,756 Total 562,234 $ 630,400 $ 630,460 $ 684,718 $ 871,106 $ 922,344 $ 814,903 $ 1,028,477 $ 1,116,630 $ 986,901 $ 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 2024 not yet available.
CITY OF LOMA LINDA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten (10) Calendar Years -154-
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 2,252,005,169 $ 285,082,390 $ 214,346,968 $ 2,751,434,527 $ 1,031,386,807 $ 1,720,047,720 $ 0.11792 100% 2015 2,284,323,332 301,381,457 201,361,852 2,787,066,641 992,101,567 1,794,965,074 0.11792 100%2016 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% 2017 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% 2018 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% 2019 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%2020 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%2021 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%2022 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% 2023 4,502,279,175 590,964,202 229,485,314 5,322,728,691 2,306,789,091 3,015,939,600 0.11605 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
-155-
San Bernardino Total Total
Fiscal Basic Colton Redlands Community Tax Direct
Year Levy Unified Unified College Water Rate Rate 1
2015 1.0000 0.09730 0.05940 0.03930 0.16250 1.35850 0.11792 2016 1.0000 0.11690 0.05670 0.04030 0.16250 1.37640 0.11792 2017 1.0000 0.14540 0.05240 0.03500 0.16250 1.39530 0.11792 2018 1.0000 0.09390 0.04940 0.03760 0.15250 1.33340 0.11792 2019 1.0000 0.11160 0.03240 0.04070 0.15250 1.33720 0.11805 2020 1.0000 0.10160 0.03390 0.05620 0.14250 1.33420 0.11805 2021 1.0000 0.10310 0.03600 0.06510 0.14250 1.34670 0.11804 2022 1.0000 0.10810 0.06620 0.05340 0.13000 1.35770 0.11599 2023 1.0000 0.06560 0.02790 0.04500 0.13000 1.26850 0.11638 2024 1.0000 0.06870 0.03160 0.04520 0.12000 1.26550 0.11605 Sources: HdL Coren & Cone, San Bernardino County Assessor combined tax rolls. 1 Total Direct Rate is the weighted average of all individual direct rates.
Schools
Note: In 1978 California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
CITY OF LOMA LINDA
Principal Property Taxpayers
As of June 30, 2024, and Ten Years Ago
-156-
Percentage of Percentage of
Assessed Total Taxable Assessed Total Taxable
Taxpayer Valuation Rank Assessed Value Valuation Rank Assessed Value Wi Loma Linda LLC 144,787,368 $ 1 4.80%
Timber Hills Associates LP 61,583,858 2 2.04% 41,893,310 $ 2 2.44% Loma Linda University/Medical Center1 60,995,155 3 2.02% 51,535,109 1 3.00% Sierra Vista Apartments SPE 38,630,812 4 1.28%
Loma Linda Heritage Associates 31,850,158 5 1.06% 27,031,475 4 2% Oasis Townhomes LLC 29,539,636 6 0.98% 25,070,517 5 1.46% WOHL Westport LLC 21,134,995 7 0.70%
Luxliving LLC 18,870,000 8 0.63%
Spreen Investment Company 1 LLC 17,227,942 9 0.57%
Blossom Grove California LLC 15,490,980 10 0.51%
Chancellor Properties LLC2 7 0.72% 12,309,568
General American Life Insurance Company 38,259,392 3 2.22% Granite Lakes Apartments LP 6 0.93% 16,000,000
Spreen Investment Company II 10,563,302 9 0.61%
Monterey Pines LLC 8 0.62% 10,604,024
Loma of California Health Center LLC 10,211,917 10 0.59% $ 14.5900% 243,478,614 440,110,904 $ 14.16%
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. 2024 2015
CITY OF LOMA LINDA
Property Tax Levies and Collections
Last Ten (10) Fiscal Years
-157-
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 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% 38,029 1,284,814 97.8%
2021 1,241,788 1,301,268 104.8% 63,527 1,364,795 104.8% 2022 1,371,196 1,353,754 98.7% 51,536 1,405,290 98.7%
2023 1,434,030 1,403,586 97.9% 14,658 1,418,244 98.9%
2024 1,495,856 1,466,812 98.1% - 1,466,812 98.1%
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 -158-
General Total Percentage
Fiscal Capital Lease Subscription Revenue Obligation Lease Subscription Water Primary of Personal Per Year Leases Liability Liability Bonds Bonds Liability Liability Bonds Government Income Capita1 2015 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% 214 2017 146,907 - - - 10,000 - - 5,669,428 5,826,335 0.81% 238 2018 112,375 - - - 10,000 - - 5,421,588 5,543,963 0.80% 232 2019 76,420 - - - 10,000 - - 5,203,748 5,290,168 0.76% 217 2020 38,984 - - - 10,000 - - 4,980,908 5,029,892 1% 205 2021 - - - - 10,000 - - 4,753,069 4,763,069 1% 191
2022 - 82,500 - - 10,000 67,447 - 4,520,229 4,680,176 1% 179 2023 - 80,393 19,444 - 10,000 65,580 20,043 4,282,390 4,477,850 1% 177 2024 - 58,680 305,246 - 10,000 48,224 11,215 4,034,550 4,467,915 1% 179 Details regarding the government's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Demographic and Economic Statistics for personal income and population.
Note:Source: City of Loma Linda Finance Department
Business-Type Activities Governmental Activities
CITY OF LOMA LINDA
Ratios of General Bonded Debt Outstanding
Last Ten (10) Fiscal Years
-159-
Less: amounts Percentage of
General Available in Debt Estimated
Fiscal Obligation Service Actual Taxable Per
Year Bonds Fund Total Value of Property1 Capita2
2015 10,000 $ - $ 10,000 $ 0.000% 42%
2016 10,000 - 10,000 0.000% 41%
2017 10,000 - 10,000 0.000% 41%
2018 10,000 - 10,000 0.000% 42%
2019 10,000 - 10,000 0.000% 41%
2020 10,000 - 10,000 0.000% 41%
2021 10,000 - 10,000 0.000% 41%
2022 10,000 - 10,000 0.000% 39%
2023 10,000 - 10,000 0.000% 40%
2024 10,000 - 10,000 0.000% 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, 2024
-160-
2023-2024 Assessed Valuation 3,015,939,600 $
Total Debt Percent
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/24 Applicable (1) Debt 6/30/24 San Bernardino Valley Joint Community College District 905,105,266 $ 2.979% 26,963,086 $ Colton Joint Unified School District 211,632,220 0.666% 1,409,471 Colton Joint Unified School District Community Facilities District No.2 2,975,000 26.425% 786,144 Redlands Unified School District 48,943,512 12.527% 6,131,154 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 35,289,855 $ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Bernardino County General Fund Obligations 131,565,000 $ 0.947% 1,245,921 $ San Bernardino County Flood Control District General Fund Obligations 37,295,000 0.947% 353,184 Colton Joint Unified School District Certificates of Participation 5,715,443 0.666% 38,065 Redlands Unified School District Certificates of Participation 21,210,000 12.527% 2,656,977 City of Loma Linda Lease Liability - 0.000% 58,680
City of Loma Linda Subscription Liability - 0.000% 305,246 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 4,658,073 $ OVERLAPPING TAX INCREMENT DEBT: 227,810,000 $ 3.575-100 % 25,736,949 $ TOTAL DIRECT DEBT 363,925
TOTAL OVERLAPPING OBLIGATION DEBT 65,320,951
COMBINED TOTAL DEBT $ (2) 65,684,876
Ratios to 2023-24 Assessed Valuation:
Total Overlapping Debt (excluding tax increment)…….………………… 1.17% Total Direct Debt…………….……………………………………………… 0.01%
Combined Total Debt (excluding tax increment)………………………… 2.18% Ratios to Redevelopment Incremental Valuation ($1,802,895,055):
Total Overlapping Tax Increment Debt……………………………………. 1.43% (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics and City of Loma Linda Finance Department
CITY OF LOMA LINDA
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
-161-
2015 2016 2017 2018 2019
Debt Limit 67,899,250 $ 71,833,863 $ 79,766,211 $ 83,537,933 $ 88,334,356 $ Total net debt applicable to limit 80,940,806 79,042,798 76,408,050 70,956,788 75,904,018 Legal debt margin (13,041,556) $ (7,208,935) $ 3,358,161 $ 12,581,145 $ 12,430,338 $ Total net debt applicable to the limit
as a percentage of debt limit 119.21% 110.04% 95.79% 84.94% 85.93% 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%).
CITY OF LOMA LINDA
Computation of Legal Debt Margin
Last Ten (10) Fiscal Years
-162-
2020 2021 2022 2023 2024
$ 99,308,410 91,585,287 $ 99,308,410 $ 106,597,250 $ 113,644,689 $ 67,167,503 71,068,061 67,167,503 61,944,041 65,320,951
$ 32,140,907 20,517,226 $ 32,140,907 $ 44,653,209 $ 48,323,738 $
77.60% 67.64% 67.64% 58.11% 57.48%
Net Assessed Value 3,015,939,600 $
Plus Exempt Property 14,585,438
Total Assessed Value 3,030,525,038 $
Debt Limit: 3.75 percent of Total
Assessed Value 113,644,689 $
Less: Debt applicable to Limitation:
Total net debt applicable to limitation 65,684,876
Legal Debt Margin 47,959,813 $
CITY OF LOMA LINDA
Pledged Revenue Coverage
Last Ten (10) Fiscal Years
-163-
Operating Net Revenue
Fiscal Gross Expenses Available for Debt Service
Year Revenues Less Depreciation Debt Service Requirements Coverage 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%
2024 13,686,038 5,983,111 ** 7,702,927 376,350 2047%
Note:
Bond was refinanced in FY 2017, no principal payment due until 7/1/2017 Source: City of Loma Linda Finance Department
Water Revenue Bonds
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation. ** Excludes GASB No. 68 actuarial pension non-cash adjustment.
CITY OF LOMA LINDA
Demographic and Economic Statistics Last Ten (10) Fiscal Years -164-
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 2015 23,751 717,247,000 $ 30,406 $ 1,255 681 538 21,326 4.6% 2016 24,649 738,747,000 29,970 1,289 658 561 21,264 3.7 2017 24,528 721,317,000 29,407 1,246 691 551 21,395 3.2 2018 23,946 690,762,000 28,162 1,247 665 561 21,261 2.9 2019 24,335 698,833,000 28,717 1,246 675 579 21,240 2.4 2020 24,535 680,521,000 27,736 1,239 684 550 21,062 2.4 2021 24,895 684,049,000 27,477 1,272 636 581 20,352 7.1 2022 25,349 740,821,000 29,224 1,294 612 560 20,162 8.0 2023 25,228 838,550,000 33,238 1,309 624 587 20,019 2.9 2024 24,695 941,588,000 37,716 1,312 630 573 19,920 3.5 Sources: 1 State of California, Department of Finance
2 Data provided by HdL Companies 3 Per Capita personal income is calculated by dividing personal income by population4 Loma Linda Academy's registrar's office5 California Department of Education6 California Employment Development Department
CITY OF LOMA LINDA
Principal Employers Current Fiscal Year and Ten Years Ago -165-
Percentage Percentageof total City of total City
Employer Employees Rank Employment Employees Rank EmploymentLoma Linda University Medical Center 9,254 1 43.10% 8,075 1 45.31%Jerry L. Pettis VA Med. Ctr. (as of 2023) 3,914 2 18.23% 3,148 3 18.46%Loma Linda University 2,763 3 12.87% 3,290 2 17.60%University Health Care 1,401 4 6.52% 1,603 4 8.99% Total 17,332 80.72% 16,116 90.36%
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 2024 2015
CITY OF LOMA LINDA
Full-Time Equivalent City Government Employees by Function Last Ten (10) Fiscal Years
-166-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 31.5 32.5 33 34.5 35.5 34.5 36.5 39 38 39 Public safety
* Sheriff
Officers 12.77 15.26 19.02 19.36 19.36 19.36 19.36 20.74 20.74 20.74 Civilians 5.03 5.81 7.1 7.1 7.1 7.2 7.2 7.6 7.64 7.64
Fire
Firefighters and officers 23 26 26 24 28 28 28 27 27 27 Civilians 5 5 5 4 4 3 3 5 5 5
Highways and streets
Maintenance 4 4 4 3 6 5 5 3 3 3
LL Connected Communities 2.5 2 2 2 2 2 2 2 1 1
Sewer 2 2 2 2 2 2 2 2 2 2
Water 11 11 11 11 11 11 11 9 11 12
Total: 96.8 103.6 109.12 106.96 114.96 112.1 114.1 115.34 115.38 117.38 * 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
-167-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Sheriff
Calls for service 22,759 42,044 27,588 26,662 26,580 28,845 29,274 26,768 26,924 22,587 Citations issued by Deputies 1,034 1,161 2,373 2,068 1,061 1,548 760 1,257 * * Physical arrests 669 828 863 729 878 638 641 536 526 363 Fire
Total number of calls answered 4,005 4,404 5,343 4,996 4,654 4,371 4,576 5,276 5,336 5,177 % of calls for medical aid 64 57 54 60 60 61 62 58 63 69 Highways and streets
Street resurfacing (miles) 1.2 3.7 1.6 6.1 3.7 4.9 2.5 9.0 6.6 7.1 Potholes repaired 18 15 21 59 19 30 25 19 50 50
Water
New connections - 8 5 23 43 52 90 47 9 10
Water main breaks 8 14 10 19 6 23 6 9 23 33
Average daily consumption 13.00 11.10 11.18 12.70 11.81 11.87 13.78 13.24 11.95 11.97 (acre foot)
Wastewater
Average daily sewage treatment 4.0 3.5 3.0 4.0 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.
Potholes repaired are reported in tons prior to 2009.
Sewer treatment is contracted through the City of San Bernardino * Data not available from the County of San Bernardino Sheriff's Department.
Sources: City of Loma Linda Public Works and Fire Departments, and San Bernardino
CITY OF LOMA LINDA
Capital Assets Statistics by Function
Last Ten (10) Fiscal Years
-168-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Public safety
* Sheriff
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 11.77 11.77 11.00 11.00 11.00 11.00 11.00 12.00 12.00 12.00 Fire Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 15 15 17 17 15 16 18 17 18 21
Highways and streets
Streets (miles) 64.64 64.64 65.00 65.70 66.23 68.86 70.71 70.10 70.10 71.25 Streetlights** 1,239 1,241 1,286 1,294 1,260 1,383 1,394 1,394 1,394 1,428 Culture and recreation
Parks 13 13 13 13 13 13 13 13 15 15
Park acreage 90.33 90.3 90.33 90.33 90.33 90.33 90.33 90.33 106.42 106.42 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 77.20 111.45 112.98 112.98 118.37 92.74 92.74 91.67 91.67 Fire hydrants 917 939 950 991 995 1,002 1,048 1,080 946 964 Maximum daily capacity 12,220 13,800 13,200 13,320 13,320 13,200 13,200 12,955 9,633 9,500 (gallons per minute)
Sewer
Sanitary sewers (miles) 67.50 61.30 65.00 66.43 66.43 70.33 70.33 74.80 72.30 72.46 Storm sewers (miles)** 15.61 15.61 15.61 16.47 17.11 17.16 17.16 17.90 17.97 17.97 * Sheriff services are contracted through the County of San Bernardino Sheriff's Dept. ** Counts for the previous years were updated to reflect corrected counts.
Sources: City of Loma Linda Public Works and Fire Departments, San Bernardino County Sheriff's Department
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1.6 Million Gallon Tank at Beaumont Avenue
Pavement RehabilitaƟon
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
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Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA
MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Loma Linda
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Loma Linda (the entity) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated December 4, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
-2-
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
December 4, 2024
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA
MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~
ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
December 4, 2024
To the Honorable City Council
City of Loma Linda
Loma Linda, California
We have audited the financial statements of the City of Loma Linda (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 4, 2024. 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 3, 2024, our responsibility, as described by professional standards, is to form and express opinions 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 the system 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 system of internal control of the entity 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
Honorable City Council
City of Loma Linda
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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.
We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:
Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.
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 entity is included in Note 1 to the financial statements. The City adopted GASB Statement No. 100, Accounting Changes and Error Corrections, during 2024. 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.
Honorable City Council
City of Loma Linda
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Significant Accounting Estimates and Related Disclosures 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 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.
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.
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 entity’s financial statements relate to:
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.
Honorable City Council
City of Loma Linda
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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. There were no uncorrected misstatements noted.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.
None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion unit.
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 entity’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 4, 2024.
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 entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, 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 entity’s auditors.
Honorable City Council
City of Loma Linda
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Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the entity’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have:
Read the transmittal letter and statistical section (or “other information”) and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated.
Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the entity 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 4, 2024
City of Loma Linda
Regular City Council Staff Report
A. Demands Registers - November 12, and December 10, 2024 [Finance] Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3A.
To
City Council
From
Sonia Fabela, Finance Director
RECOMMENDATION:
It is recommended that the City Council approve the attached list of demands for payment.
Attachments
CC Demands Register - 11-12-2024.pdf
CC Demands Register 12-10-2024.pdf
City of Loma Linda
Regular City Council Staff Report
Approval of Minutes November 12, 2024 [City Clerk]
Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3B.
To
City Council
From
Lynette Arreola, City Clerk
Attachments
Regular City Council-11-12-2024-minutesDraft.pdf
Approval of Minutes for Regular City Council held on November 12, 2024.
Minutes for the Regular City Council
25541 Barton Road, Loma Linda, CA 92354
November 12, 2024, 7:03 PM - November 12, 2024, 8:11 PM Roll Call: (The following members were in attendance)
Phillip Dupper, Mayor
Ronald Dailey, Mayor pro tempore
Ovidiu Popescu, Councilmember
Rhodes Rigsby, Councilmember
Rhonda Spencer-Hwang, Councilmember
1. Call to Order
1A. Call to Order- 7:03 PM
1B. Roll Call- 7:03 PM
City Council all present; Staff Present: 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; Andrew Sanchez. Customer Support Technician; and Lt. Kaysie Smith, San Bernardino County Sheriff's Department
1C. Closed Session/Workshop- 7:03 PM
No items scheduled.
1D. Invocation and Pledge of Allegiance - Mayor pro tempore Dailey- 7:03 PM The Invocation and Pledge of Allegiance was led by Councilmember Popescu. Mayor pro tempore Dailey entered the Council Chambers at 7:05 pm.
1E. Items to be Added or Deleted- 7:06 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)- 7:06 PM No public participation upon invitation by the Mayor.
1G. Conflict of Interest Disclosure- 7:06 PM
No items of conflict were noted.
2. Scheduled and Related Items
2A. Public Hearing - Council Bill #R-2024-36 - Ordering Annexations 78 (Gold Crest - Tract 20417) & 79 (Sierra Crest - Tract 20442) into the Landscape Maintenance District No. 1- 7:06 PM The City Manager presented the report, stating staff recommended approval of the project as recommended. He noted that assessment ballots to annex into the Landscape Maintenance District were mailed and received.
The City Clerk opened the two ballots received, one for each Annexation. For Annexation 78, she noted the ballot vote was in favor of annexing into Landscape Maintenance District No. 1; and for Annexation 79, she noted the ballot vote was in favor of annexing into Landscape Maintenance District No. 1.
Motion by Phillip Dupper, seconded Rhodes Rigsby, and passing by a vote of 5-0-0-0-0 to Adopt Council Bill #R-2024-36 - Resolution No. 3234 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA CONFIRMING THE ANNEXATION OF ANNEXATION NO. 78 (GOLD CREST – TRACT 20417) AND ANNEXATION NO. 79 (SIERRA CREST – TRACT 20442) (ANNEXATION TERRITORIES) INTO LOMA LINDA LANDSCAPE MAINTENANCE DISTRICT NO. 1, THE DIAGRAM AND ASSESSMENTS RELATED THERETO,
OVERRULING ALL PROTESTS CONCERNING THE ASSESSMENTS AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS BEGINNING IN FTHE ISCAL YEAR 2025/2026 (IF NOT MAINTAINED BY HOMEOWNER’S
ASSOCIATION)
2B. Community Garden Operations and Needs Analysis Report [Amy Jones]- 7:15 PM Amy Jones introduced her garden expert, Jane, and presented a PowerPoint presentation included with the agenda packet. The presentation exhibited photos of the garden, its gardeners, volunteers, activities, and support provided by the City. She explained that she reopened the community garden approximately six and a half years ago. After gaining an understanding of the community's needs, she modified the format from individual plots to a shared community space where she developed various garden sections. She discussed a few of its benefits such as food production, flower gardens, and community building. She displayed an aerial photo comparing the garden's appearance at its reopening to its current state highlighting its progress. She discussed the various programs and activities, the partnerships with community-based organizations, and the volunteer support. She also discussed the challenges including thefts, operation expenses, and labor demands. She suggested community event ideas and extended an invitation to the Council.
A discussion followed regarding the garden's budget and expenses. Finance Director Fabela commended Amy for the incredible work she and her team have accomplished. In response to budget questions, she explained the City’s fiscal year budget process, adding that donations, expenses, supplies, equipment, City labor hours, and water and electrical costs should be tracked and reported to the City for audit purposes.
She explained that all those costs are factored into the garden's overall budget. Ms. Jones agreed to work with the City.
Councilmembers appreciated the efforts and hard work of Amy and her team in the growth of the garden.
It was noted that the City is also facing budget challenges. The Mayor thanked Amy and Jane for their comprehensive presentation.
3. Consent Calendar
Motion by Rhodes Rigsby, seconded Ovidiu Popescu, and passing by a vote of 5-0-0-0-0 to Approve the Consent Calendar as submitted.
3A. Demands Registers - November 12, 2024 [Finance]- 7:58 PM Approved the Demands Registers dated:
3B. Approval of Minutes of October 22, 2024 [City Clerk]- 7:58 PM November 12, 2024, with commercial demands totaling $2,120,011.05 and Payroll dated October 24, 2024, totaling $440,935.38 and Payroll dated November 7, 2024, totaling $413,535.94.
Approved the minutes of October 22, 2024, as submitted. 3C. Treasurer's Report - October 2024 [Finance]- 7:58 PM Accept the October Treasurer's Report for filing.
3D. Fire Department's Activity Report - October 2024 [Fire]- 7:58 PM Accept the October Fire Department's Activity Report for filing. 3E. Agreement for Professional Services with CSG Consultants [Community Development]- 7:58 PM
Approved Agreement with CSG Consultants as recommended. 3F. Agreement for Professional Services with Moore Iacofano Goltsman, Inc. (MIG) [Community Development]- 7:58 PM
Approved agreement with Moore Iacofano Goltsman, Inc. (MIG) as recommended. 3G. Supplemental Appropriation Funding of $59,000 and Award Contract for Council Chamber AC Unit (2) Replacement [Public Works]- 7:58 PM
Approved the supplemental appropriation of $59,000, awarded the contract to Loma Linda Heat & Air Conditioning, Inc.. for $48,946.17, and authorized a contingency allocation of $10,000. 3H. Council Bill # R-2024-37 - Approve Final Tract Map No. 20403 (Canyon Ranch, North) [Public Works]- 7:58 PM
Adopted Council Bill #R-2024-37 - Resolution No. 3235
RESOLUTION NO 3235
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA, CALIFORNIA, APPROVING FINAL TRACT MAP 20403 (SOUTH OF BARTON ROAD AND WEST OF SAN TIMOTEO CANYON ROAD) 3I. Council Bill #R-2024-38 - Approve Final Tract Map No. 20404 (Canyon Ranch, South) [Public Works]- 7:58 PM
Adopted Council Bill #R-2024-38 - Resolution No. 3236
RESOLUTION NO 3236
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA, CALIFORNIA, APPROVING FINAL TRACT MAP 20404 (NORTH OF BEAUMONT AVENUE AND WEST OF NEVADA STREET) 3J. Notice of Completion of the Installation of Water Valves at Various Locations (CIP 24-670) - Contractor: MCC Pipeline, Inc. [Public Works]- 7:58 PM
Accepted as complete and authorized recordation of Notice of Completion documents.
4. Old Business
4A. Council Bill No. O-2024-06 (Second Reading) an ordinance of the City of Loma Linda to establish a Small Home Lot Development - 10 Residential Units Maximum Chapter in Title 17 (Zoning) of the Loma Linda Municipal Code (Master Development Application No. 2024- 0027/Development Code Amendment No. 2024-0006) [Community Development]- 7:59 PM Community Development Director Matarrita noted no document changes or public comments received for the second reading of the ordinance and recommended the adoption of Council Bill #O-2024-06.
Motion by Ovidiu Popescu, seconded Rhodes Rigsby, and passing by a vote of 5-0-0-0-0 to Waive the full reading of the Ordinance, but read by title only and Adopt Council Bill #O-2024-06 - Ordinance No. 782 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO ESTABLISH A SMALL HOME LOT DEVELOPMENT-10 RESIDENTIAL UNITS MAXIMUM CHAPTER IN TITLE 17 (ZONING) OF THE LOMA LINDA MUNICIPAL 4B. Council Bill No. O-2024-07 (Second Reading) an ordinance of the City Council of the City of Loma Linda amending in part, Title 17 (Zoning), Chapter 17.110 (Accessory Dwelling Units and Junior Accessory Dwelling Units) of the Loma Linda Municipal Code (Master Development Application No. 2024-0026/Development Code Amendment No. 2024-0005) [Community Development]- 8:01 PM
Community Development Director Matarrita noted no document changes or public comments received for the second reading of the ordinance and recommended the adoption of Council Bill #O-2024-07.
Motion by Rhodes Rigsby, seconded Rhonda Spencer-Hwang, and passing by a vote of 5-0-0-0-0 to Waive the full reading of the Ordinance, but read by title only and Adopt Council Bill #O-2024-07 - Ordinance No. 783 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA, CALIFORNIA, AMENDING IN PART, TITLE 17 (ZONING), CHAPTER 17.110 (ACCESSORY DWELLING UNITS AND JUNIOR
ACCESSORY DWELLING UNITS) OF THE LOMA LINDA MUNICIPAL CODE
5. New Business
No items scheduled.
6. Reports
6A. Reports of Council Members- 8:03 PM
Mayor Dupper noted a complaint he received from a resident who was disputing some very high-intensity lighting from his neighbors that shines into his property.
Mayor Pro Tempore Dailey commended the City for the repaving on Redlands Boulevard, noting that the streets in the City are in better condition than some neighboring cities. He inquired about the building located at the northwest corner of Richardson and Redlands Blvd. Community Development Director Matarrita explained that the property owner is gradually completing construction.
Councilmember Spencer-Hwang was asked by residents if overgrown vegetation on the south side of the wash can be maintained. City Manager Thaiperj stated that the City will maintain it if it is in the city's rightof-way. 6B. Reports Of Officers- 8:09 PM
City Manager Thaipejr noted that he would be on vacation from November 15 to December 2 and that Chief Harker would be the Acting City Manager. He announced the Christmas Tree Lighting is December 2; the Lopers Holiday Classic is Dec. 8 and the Fire Department's Parade of Lights will be on three dates in December.
7. Adjournment
The meeting adjourned at 8:09 pm.
City of Loma Linda
Regular City Council Staff Report
C. Treasurer's Report - November 2024 [Finance]
Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3C.
To
City Council
From
Sonia Fabela, Finance Director
RECOMMENDATION:
It is recommended that the City Council receive the report for filing.
Attachments
Treasurers Report November 2024.pdf
DEMAND DEPOSIT ACCOUNTS
CITY - BANK OF AMERICA - MAIN CHECKING ACCOUNT $ 1,795,585.50 Outstanding Checks as of month-end (830,325.79)
CITY - MAIN CHECKING ACCOUNT AVAILABLE BALANCE 965,259.71 $ BANK OF AMERICA - PAYROLL $ 21,629.51
HOUSING AUTHORITY - BANK OF AMERICA - CHECKING ACCOUNT 397,553.17 Outstanding Checks as of month-end (38,405.12)
HOUSING AUTHORITY - CHECKING ACCOUNT AVAILABLE BALANCE 359,148.05 $ SUCCESSOR AGENCY - BANK OF AMERICA - CHECKING ACCOUNT 18,795.10 Outstanding Checks as of month-end -
SUCCESSOR AGENCY - CHECKING ACCOUNT AVAILABLE BALANCE 18,795.10 $ DEMAND DEPOSIT ACCOUNTS - TOTAL $ 1,364,832.37
YIELD
LOCAL AGENCY INVESTMENT FUND (LAIF)
CITY 4.477% $ 53,562,642.90
CITY - Former RDA Bond Proceeds 4.477% 438,669.68
CITY -Total 54,001,312.58
SUCCESSOR RDA 4.477% 222,949.28
HOUSING AUTHORITY 4.477% 1,410,499.31
INVESTMENTS TOTALS $ 55,634,761.17
OTHER CASH
IMPREST ACCOUNT $ 500.00
CASH ON HAND 1,350.00
OTHER CASH TOTAL $ 1,850.00
CASH AND INVESTMENTS - GRAND TOTAL 57,001,443.54
PREVIOUS MONTH 56,450,269.86
CHANGE +/(-) $ 551,173.68
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
November 2024
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 11/23 12/23 1/24 2/24 3/24 4/24 5/24 6/24 7/24 8/24 9/24 10/24 11/24
CITY OF LOMA LINDA
MONTHLY TREASURER'S REPORT 11/23-11/24
CITY, SUCCESSOR RDA & HA - TOTAL CASH AVAILABLE CITY- FORMER RDA BOND PROCEEDS BASELINE City of Loma Linda
Regular City Council Staff Report
D. Fire Department's Activity Report - November 2024 [Fire] Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3D.
To
City Council
From
Nataly Alvizar, Executive Aide
RECOMMENDATION:
It is recommended that the City Council receive the report for filing.
Attachments
November 2024 Fire Activity Report.pdf
1 of 1
SUBJECT: November 2024 Fire Department Activity Report
Operations Division:
The Fire Department’s Operations Division responded to 480 incidents in November 2024.
There were 39 calls/incidents given or received in Mutual/Automatic Aid. The alarm types are broken down as follows:
Fire & Rescue Month YTD
Medical Aid (MA) 317 66.0% 3239 67.4%
Traffic Collision (TC) 10 2.1% 136 2.8%
MA + TC 327 68.1% 3375 70.3%
Hazardous Conditions 2 2.40% 39 0.70%
Hazardous Material 1 0.40% 11 0.40%
Public Assistance 19 6.90% 229 5.50%
Rescue 2 0.90% 15 0.60%
Structure Fire 1 2.10% 28 1.00%
Cooking 2 0.00% 6 0.10%
Vegetation Fire 7 0.40% 41 0.70%
Vehicle Fire 0 0.00% 12 0.10%
Refuse Fire 8 1.10% 82 1.40%
All Fires 18 3.60% 169 3.30%
Good Intent/Dispatched
& Cancelled Enroute 51 10.6% 415 8.6%
Fire Alarm Activation* 21 4.4% 206 4.3%
*Note: Includes accidental activation, burnt food, system malfunction, malicious, etc.
City of Loma Linda
Regular City Council Staff Report
E. Request from Two Canyons Conservancy to Waive the Planning Application Fees for the Frink Adobe Historical Preserve Project [Community Development]
Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3E.
From
Lorena Matarrita, Community Development Director
Via
T Jarb Thaipejr, City Manager
RECOMMENDATION
Approve the Two Canyons Conservancy request to waive planning application fees for the Minor Precise Plan of Design Application and Certificate of Appropriateness, totaling $2,630.
BACKGROUND
Two Canyons Conservancy (TCC), a 501(c)(3) non-profit organization, is collaborating with Lennar Homes to secure ownership of the historic Frink Adobe site at 26248 Mission Road. TCC plans to rehabilitate the 1860s-era Frink Adobe residence and transform the surrounding property into a public historic preserve. This project will include:
Restoring the historic Frink Adobe residence.
Relocating elements of the old barn/shed to the subject lot.
Providing limited parking, including space for vehicles and a school bus.
Preserving and expanding the historic Frink orange trees.
Adding historically appropriate landscaping to enhance the site.
Upon completion, the site will be accessible to the public, with a focus on educating local schoolchildren about the Frink family’s history, the pre-contact Native American era, and the historic Zanja ditch that once crossed the property. Additional improvements include a detached restroom facility and repurposing the old barn/shed for private storage use.
ANALYSIS/DISCUSSION
The Frink Adobe will remain a historic residence but will be repurposed as a public preserve rather than a private dwelling. In addition to restoring the Adobe, the proposal includes a public parking area, a new garden, the repurposing of the old barn/shed for accessory storage, and the addition of a detached restroom facility for visitors.
In accordance with Chapter 17.30 of the Loma Linda Municipal Code, minor aesthetic, land use, or traffic-impacting projects, including large accessory structures, require submission of a Minor Precise Plan of Design (PPD) application. The Minor PPD ensures the project complies with applicable design standards, guidelines, and ordinances, and aligns with the general plan. Minor PPD applications are reviewed by the Community Development Director, without formal discretionary review. However, due to the site’s location in the Mission Historic District, the proposal will also be reviewed by the Historical Commission and requires a Certificate of Appropriateness, in line with district guidelines.
TCC’s plans are consistent with the approved Management and Maintenance Plan for the Frink Adobe, ensuring preservation standards are met.
The total application fees of $2,630 consist of:
$2,270 for the Minor Precise Plan of Design
$360 for the Certificate of Appropriateness
TCC has requested a waiver of these fees, which would reduce the administrative costs associated with the planning application. Building review, permits, and inspection fees will still apply. To clarify, the fee waiver would not be considered a financial contribution to the project, the rehabilitation efforts, or the non-profit organization.
GENERAL PLAN AND CODE CONSISTENCY
The fee waiver request aligns with the City’s objectives for fostering partnerships with local non-profits to enhance community vitality and quality of life. Specifically, this project supports the following:
· The Groves at Loma Linda Specific Plan (Planning Area 3-6): Community Benefiting Improvement project conditional of approval.
· General Plan Policy 9.7.5: Preserve and protect the City’s historic structures and neighborhoods. · General Plan Policy 2.2.7.4: Preserve reminders of Loma Linda’s history and provide opportunities for historical preservation and passive recreation.
While there are no explicit criteria for fee waivers, the Council has historically supported similar requests for nonprofits, particularly for special event permits. Staff recommends continuing to evaluate future waiver requests on a case-by-case basis.
ENVIRONMENTAL IMPACT
Not applicable.
FINANCIAL IMPACT
The total planning application fee of $2,630 covers the director-level review for the Minor Precise Plan of Design and the Historical Commission's review for the Certificate of Appropriateness (requiring Council ratification). The City’s general fund would absorb the cost of staff time for processing these applications if the waiver is approved.
ATTACHMENT
A. Request Letter for Fee Waiver
Attachments
Attachment A - Request Letter for Fee Waiver.pdf
City of Loma Linda
Regular City Council Staff Report
F. Council Bill #R-2024-40 - Cal OES Designation of Applicant's Agent Resolution– Hazard Mitigation Grant Program and Pre-Disaster Mitigation Program [Fire]
Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3F.
To
City Council
From
Nataly Alvizar, Executive Aide
Via
Dan Harker, Fire Chief
RECOMMENDATION:
It is recommended that the City Council adopt Council Bill #R-2024-40 designating the applicant's agents for nonstate agencies.
BACKGROUND:
When a State or Federal Declaration of Disaster is made, that act can sometimes open the doors to Disaster related Hazard Mitigation, Pre-Disaster Mitigation, and/or Recovery funding. If the City of Lorna Linda has damages or costs associated with responding to an incident that has been recognized as a declared disaster, we can apply for funding to help recover or be reimbursed for expenses. The City of Lorna Linda may also apply for Hazard Mitigation and Pre-Disaster Mitigation grant funding.
The process of petitioning for this funding requires an action by an authorized body or agent of the City of Loma Linda.
ANALYSIS:
On October 10, 2017, in response to the California Wildfires, a Presidential declaration of a major disaster for the State of California was declared under authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This declaration, FEMA-4344-DR, allows for federal disaster assistance, including assistance under the Hazard Mitigation Grant Program throughout the state.
Adoption of this resolution succeeds Loma Linda Resolution 3032, dated August 13, 2019, which formally designated the City Manager, Assistant City Manager, and Fire Chief as authorized agents to execute a disaster funding application.
Additionally, adoption of this resolution will again formally designate the City Manager, Assistant City Manager, or Fire Chief as authorized agents to execute Disaster Funding applications for the FEMA-4344-DR and future incidents. This would allow the City to be able to act quickly when disaster funding sources become available.
Designations established by this resolution are good for three (3) years, but can be changed by the City Council at any time.
FINANCIAL IMPACT:
Adoption of this resolution will allow the designate authorized agents to apply for and manage the documentation associated with receiving any federal or state disaster assistance funding.
Attachments
Cal OES Form 130 - 12-10-24.pdf
City Council City of Loma Linda
City Manger
Assistant City Manager
Fire Chief
City of Loma Linda
City of Loma Linda
Council Bill #R-2024-40
x
10 December 24
Phill Dupper, Mayor
Ron Daily, Mayor Pro Tempore
TBD - Councilmember
Lynette Arreola City Clerk
City of Loma Linda
City Council
City of Loma Linda 10th December 24
City Clerk
City of Loma Linda
Regular City Council Staff Report
G. Authorization to apply for the Emergency Management Performance Grant (EMPG) FY 24-25 [Fire] Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3G.
To
City Council
From
Dan Harker, Fire Chief
Via
Tom Ingalls, Fire Marshal
RECOMMENDATION:
It is recommended that the City Council authorize the Fire Department to apply for and the 2024 Emergency Management Performance Grant (EMPG) and to authorize the City Manager to execute related documents. It is also recommended that the City Manager be able to accept additional grant funding should it become available.
BACKGROUND:
On an annual basis, the Emergency Management Performance Grant (EMPG) funds are distributed through the State's Office of Emergency Service regions and awarded to jurisdictions within the Operational Areas. If approved the anticipated amount will be approximately $14,188.00.
ANALYSIS:
EMPG funds will be utilized to hire a consultant and provide an Emergency Operations Center (EOC) table top exercise and an EOC functional exercise. These exercises will help better prepare City staff to respond, and work within the EOC and utilize the City's Emergency
ENVIRONMENTAL IMPACT:
N/A
FINANCIAL IMPACT:
The grant proceeds will decrease the financial impact on the City by offsetting the total maximum cost of the consultant's fees by $14,188.00. The EMPG grant is a matching grant, City will be responsible for matching the amount used for EMPG funds. T
City of Loma Linda
Regular City Council Staff Report
H. Community Development Block Grant (CDBG) Project Prioritization for Fiscal Year 2025-2026 [Public Works] Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3H.
From
T Jarb Thaipejr, City Manager
RECOMMENDATION:
It is recommended that the City Council approve the proposed Public Service Projects and Construction Improvement projects and fund allocations for the FY 2025-2026 CDBG program as follows:
Public Service Projects:
Girls on the Run Inland Empire $ 9,768 San Bernardino County Library $ 10,000 Public Service Activities Total $ 19,768 City Projects:
Replace Access Ramps and Sidewalks Citywide $ 112,018 FY 2024-2025 Allocation Total $ 131,786 BACKGROUND:
The County of San Bernardino, which administers the local CDBG Program, calculated the estimated allocation. The calculation includes the Census poverty and overcrowded housing counts in addition to the population estimates.
The County has submitted a list of public service projects (see attached), which identify benefits to the City. The City has been tasked with much of the administrative duties previously handled by the County. Public service projects must be adequately funded to provide a new service or a quantifiable increase in the present level of service. A maximum of 15% of the total allocation is available for public service projects.
ANALYSIS:
Public Service Projects
Two (2) public service project proposal were screened by the San Bernardino County Economic Development Agency and forwarded to the City for consideration. The San Bernardino County Library, Loma Linda Branch, will be one of the recommended beneficiaries of this grant. The other is a new applicant, Girls on the Run, which proposes to provide improved physical activity, healthy behaviors, boost confidence and build positive connections by creating a 5K run event specifically for low- to moderate-income households with girls 8-14 years old.
Construction Improvement Projects
Citywide access ramps and sidewalks replacement is proposed as the public construction improvement projects.
ENVIRONMENTAL IMPACT:
N/A
FINANCIAL IMPACT:
N/A
Attachments
Loma Linda Eligible Applications 2025.pdf
San Bernardino County
Department of Community Development and Housing
2025-26 CDBG Project Proposals
Location Applicant Application # Project Title Amount
Requested Comments Eligible: Yes/NO
Loma Linda
T. Jarb Thaipejr, City Manager
City of Loma Linda
25541 Barston Road
Loma Linda, CA 92354
[email protected]
909-799-2811
LOMA25CN-006 Loma Linda: ADA Sidewalk Improvements and
ADA Ramps $120,000.00
Construction Project - ADA improvements. Activities under this project are limited to the removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severely disabled persons to public facilities and improvements. Federal Labor Standards and Section 3 requirements apply, which could increase construction costs by as much as 20%. City General Fund ($20,000) will be used to pay for Architectural and Engineering services. Disability Characteristics estimate number is 1,122 - Source: U.S. Census Bureau 2000 - HUD Exchange CDBG Disability Data by Census Tract and Block Group.
Yes
Loma Linda
Molly Widdicombe, Council Director
Girls on the Run Inland Empire
P.O. Box 21044
Riverside, CA 92516
mollywiddicombe@girlson the
run.org
(951) 394-3141
LOMA25PS-043 Loma Linda: Girls on the Run $10,000.00
Public Service - Girls on the Run, under contract with the City of Loma Linda, will provide a 8-10 week program for approximately 40 girls ages 8-14 from low-to moderate-income households to empower themselves, improve physical activity, adopt healthy behaviors, boost their confidence, and develop positive connections by creating a 5K run event. This will include recruit and train at least 4 local coaches using the organization's National Coach Training, which prepares coaches to build positive relationships, create inclusive and trauma sensitive environments, and deliver the curriculum effectively. Staff will provide ongoing support to ensure a positive experience for all. Public Services are limited to low-and moderate-income persons and requires documentation of at least 51% of the persons served are from are low- to moderate-income households. Since this is a new request for CDBG funding, if Girls on the Run - Loma Linda has other funding sources currently identified to fund the program, a quantifiable increase in the level of service or a new additional service is required in order to be eligible for CDBG funding. CDBG funds cannot replace another funding source. If the program is new and has no other sources currently identified to date then an increase in services is not required.
Yes
San Bernardino County
Department of Community Development and Housing
2025-26 CDBG Project Proposals
Loma Linda
Melanie Orosco, County Librarian
268 W. Hospitality Lane, 3rd Floor
San Bernardino, CA 92415
[email protected]
909-387-2220
LOMA25PS-049 Loma Linda: Adult Literacy Program $10,000.00 Public Service. Services are limited to low- and moderate-income clients and requires documentation of at least 51% of the clients are low- to moderate-income.
Client eligibility (for all clients including illiterate adults) must be evidenced by documentation and data concerning beneficiary family size and income. CDBG funds will be used to pay for personnel services. Should the program receive an increase in funding allocation from the previous year a quantifiable increase in the level of service or a new additional service is required in order to continue to be eligible for CDBG funding. This activity was funded in previous years (less than 12 months) and is a continuing activity. Services are provided by San Bernardino County Library Department staff and volunteers. Service Location: 25581 Barton Road, Loma Linda, CA 92354.
Yes
City of Loma Linda
Regular City Council Staff Report
I. Council Bill #R-2024-41 - A Resolution Establishing the New Salary Table for Employees Effective January 1, 2025 [Human Resources]
Meeting
Tuesday, December 10, 2024, 7:00 PM
Agenda Group
Consent Calendar Item: 3I.
To
City Council
From
Jennifer Pearsall, Human Resources/Risk Management Analyst Via
T Jarb Thaipejr, City Manager
RECOMMENDATION:
It is recommended that the City Council approve Council Bill #R-2024-41, adopting and establishing the new salary table for employees effective January 1, 2025.
BACKGROUND:
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 Department of Finance calculates the average U.S. CPI-W for the 12-month period from July 1, 2023, to June 30, 2024, increased by 3.18 percent compared to the 12-month period from July 1, 2022, to June 30, 2023. As a result, pursuant to section 1182.12(c), Finance has determined that the minimum wage shall increase by 3.18 percent to $16.50 per hour and shall be implemented for all employers on January 1, 2025.
ANALYSIS:
Effective January 1, 2025, California’s minimum wage will increase, as mandated by state law. This change will affect all employers, requiring an adjustment in compensation for eligible employees. Staff will need to ensure compliance with the new wage requirements, and any necessary budget adjustments should be considered to accommodate the increase in labor expenses.
ENVIRONMENTAL IMPACT:
N/A
FINANCIAL IMPACT:
The upcoming State of California mandated minimum wage increase will impact two (2) employees in the Student Intern classification. Part-time employees are limited to working no more than one thousand (1,000) hours per fiscal year. The salary increase for the affected employees is estimated to be an additional $500.00 for the remainder of the 2024-2025 fiscal year.
Attachments
RESOLUTION Minimum Wage 2025 (1).pdf
Resolution Exhibit A - Pay Scale by Classification.pdf
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMA LINDA,
CALIFORNIA, ESTABLISHING THE NEW SALARY TABLE FOR
EMPLOYEES EFFECTIVE JANUARY 1, 2025.
WHEREAS, the City of Loma Linda (“City”) contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide retirement benefits for its employees; and WHEREAS, 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 in accordance with public meeting laws; and
WHEREAS, the pay schedule must identify each position by title, the individual pay rate amount or ranges for that position, and the time base upon which the amounts are based; and WHEREAS, the City of Loma Linda desires to establish a new salary table for employees, due to the State of California mandated minimum wage increase, effective January 1, 2025; and
NOW THEREFORE, BE THE LOMA LINDA CITY COUNCIL DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: This Resolution shall take the place of all existing Resolutions or orders of the City Council as they relate to the subject matter contained herein. However, in no event shall this Resolution rescind, supersede, alter or in any way, regarding subject matter that is not contained in this Resolution. In the event that any provision of this Resolution is in conflict with an employment contract of an unrepresented and/or unaffiliated City employee, the applicable employment contract shall supersede and govern the City’s policies and practices with regard to that particular employee.
Section 2: The pay schedule for all employees of the City, which shall be effective January 1, 2025, is hereby updated in the Salary Table, attached hereto as Exhibit A.
Section 3: The pay schedule contained in the Salary Table in Exhibit A is hereby adopted and will be made available for public viewing via the City website for no less than five (5) years.
PASSED AND ADOPTED by the City Council of Loma Linda, California this 10th day of December 2024 with the attached certified vote:
Phillip Dupper, Mayor
ATTEST:
Lynette Arreola, City Clerk
Resolution
Council Bill #R-2024-41