City-and-SA-Audit-Reports-and-Financial-Statements — Montclair City Council, May 1, 2023

City of Montclair
Annual Financial Report
For the Fiscal Year Ended
June 30, 2022
Certified Public Accountants
Van Lant
Fankhanel LLP
&
,

CITY OF MONTCLAIR

FINANCIAL STATEMENTS
Year Ended June 30, 2022

CITY OF MONTCLAIR

FINANCIAL STATEMENTS

TABLE OF CONTENTS
Page
Independent Auditor’s Report 1 - 3
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 5
Statement of Activities 6 - 7
Fund Financial Statements:

Balance Sheet - Governmental Funds 8 - 9
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 10 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 11 – 12 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 13 Statement of Net Position - Proprietary Funds 14
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 15 Statement of Cash Flows - Proprietary Funds 16
Statement of Fiduciary Net Position - Fiduciary Funds 17 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 18 Notes to Financial Statements 19 – 45
Required Supplementary Information
Budgetary Comparison Schedules:

General Fund 47 – 48
Safety Department Grants Special Revenue Fund 49
Notes to Required Supplementary Information 50
Schedule of Changes in Total OPEB Liability and Related Ratios 51 Schedule of Changes in the Net Pension Liability and Related Ratios - Agent Multiple-employer Plan 52 Schedule of Contributions - Agent Multiple-employer Plan 53 Schedule of Proportionate Share of the Net Pension Liability – Cost-sharing Plan 54 Schedule of Contributions – Cost-sharing Plan 55
Supplementary Information
Non-Major Governmental Funds:

Combining Balance Sheet 57 – 65
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 66 - 74 Independent Auditor’s Report
The Honorable City Council
City of Montclair, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Montclair (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities each major fund, and the aggregate remaining fund information of the City of Montclair, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 error or fraud.

1 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 generally accepted auditing standards 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 generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, 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. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the required supplementary 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 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 accompanying combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 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 auditing standards generally accepted in the United States of America. In our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 30, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 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.

March 30, 2023
3 BASIC FINANCIAL STATEMENTS
4 Governmental Business-type
Activities Activities Total
ASSETS
Pooled Cash and Investments 59,581,637 $ 5,619,857 $ 65,201,494 $ Receivables:

Accounts 3,486,931 587,693 4,074,624
Notes and Loans 5,000 - 5,000
Accrued Interest 61,610 - 61,610
Prepaid Costs 965,635 - 965,635
Due From Other Governments 5,993,756 288,447 6,282,203
Internal Balances - - -
Restricted Assets:

Cash with Fiscal Agent 47,822,781 - 47,822,781
Capital Assets Not Being Depreciated 27,648,226 - 27,648,226 Capital Assets, Net of Accumulated Depreciation 85,347,060 2,047,184 87,394,244 Total Assets 230,912,636 8,543,181 239,455,817

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflow - Bond Refunding 219,936 - 219,936
Deferred Outflows Related to OPEB 2,044,663 94,646 2,139,309 Deferred Outflows Related to Pensions 75,333,196 2,809,263 78,142,459 Total Deferred Outflows of Resources 77,597,795 2,903,909 80,501,704

LIABILITIES
Accounts Payable 2,006,713 948,482 2,955,195
Accrued Liabilities 664,479 39,509 703,988
Accrued Interest 911,039 - 911,039
Deposits Payable 468,255 - 468,255
Unearned Revenue 300,000 - 300,000
Due to Other Governments 41,044 - 41,044
Noncurrent Liabilities:

Due Within One Year 6,405,055 117,417 6,522,472
Due in More Than One Year 211,467,971 4,718,811 216,186,782 Total Liabilities 222,264,556 5,824,219 228,088,775

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to OPEB 1,187,960 62,665 1,250,625 Deferred Inflows Related to Pensions 41,594,437 1,961,383 43,555,820 Total Deferred Inflows of Resources 42,782,397 2,024,048 44,806,445

NET POSITION
Net Investment in Capital Assets 72,089,515 2,047,184 74,136,699 Restricted for:

Housing 5,774,212 - 5,774,212
Public Safety 1,495,034 - 1,495,034
Transportation 20,997,851 20,997,851 -
Community Development 1,924,606 - 1,924,606
Unrestricted (58,817,740) 1,551,639 (57,266,101)
Total Net Position $ 43,463,478 $ 3,598,823 $ 47,062,301 City of Montclair
Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of this statement. 5 Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:

Governmental Activities:

General Government (24,137,050) $ 2,499,014 $ 4,822,853 $ - $ Public Safety (28,448,452) 694,391 437,826 12,909
Community Development (6,467,836) 919,091 622,696 245,439 Public Works (3,614,260) 3,761,472 5,229 5,359,640
Interest on Long-Term Debt (3,520,531) - - -
Total Governmental Activities (66,188,129) 7,873,968 5,888,604 5,617,988 Business-type Activities:

Sewer Maintenance (6,447,229) 5,954,457 - -
Total Business-type Activities (6,447,229) 5,954,457 - - Total Primary Government (72,635,358) $ 13,828,425 $ 5,888,604 $ 5,617,988 $ General Revenues:

Taxes:

Property Taxes
Transient Occupancy Taxes
Sales Taxes
Franchise Taxes
Business Licenses Taxes
Utility Users Tax
Other Taxes
Miscellaneous Revenues
Interest Income
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
Program Revenues
City of Montclair
Statement of Activities
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 6 Governmental Business-type
Activites Activities Total
$ - (16,815,183) $ (16,815,183) $
- (27,303,326) (27,303,326)
- (4,680,610) (4,680,610)
- 5,512,081 5,512,081
- (3,520,531) (3,520,531)
- (46,807,569) (46,807,569)
(492,772) - (492,772)
(492,772) - (492,772)
(492,772) (46,807,569) (47,300,341)
- 8,435,378 8,435,378
- 80,059 80,059
- 31,033,270 31,033,270
- 857,255 857,255
- 864,987 864,987
- 1,941,213 1,941,213
- 45,746 45,746
- 1,007,601 1,007,601
7,060 (219,809) (212,749)
(25,730) 25,730 -
(18,670) 44,071,430 44,052,760
(511,442) (2,736,139) (3,247,581)
4,110,265 46,199,617 50,309,882
$ 3,598,823 43,463,478 $ 47,062,301 $
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of this statement. 7 Special
Revenue
Safety Successor
General Department Agency Economic
Fund Grants Bonds Development
ASSETS
Pooled Cash and Investments 24,942,681 $ 287,516 $ 12,635,222 $ 4,908,799 $ Receivables:

Accounts 2,601,995 257,011 - 76
Notes and Loans 5,000 - - -
Accrued Interest 33,758 - 23,990 -
Prepaid Costs 960,380 - - -
Due from Other Governments 4,988,948 - - -
Due from Other Funds 172,704 - - -
Restricted Assets:

Cash with Fiscal Agent - - - -
Total Assets $ 33,705,466 $ 544,527 $ 12,659,212 $ 4,908,875

LIABILITIES
Accounts Payable $ 1,288,896 $ 7,010 $ 11,392 $ 52,070
Accrued Liabilities 545,905 - - 34,201
Deposits Payable 392,760 - - -
Unearned Revenue 300,000 - - -
Due to Other Governments 32,586 - - -
Due to Other Funds 31,725 295,588 - -
Total Liabilities 2,291,872 602,598 11,392 86,271

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants 194,230 218,659 - -
Total Deferred Inflows of Resources 194,230 218,659 - -

FUND BALANCES (DEFICITS)
Nonspendable 960,380 - - -
Restricted - 12,647,820 - -
Committed - - 4,822,604 -
Assigned 18,625,642 - - -
Unassigned 11,633,342 (276,730) - -
Total Fund Balances (Deficits) 31,219,364 (276,730) 12,647,820 4,822,604 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 33,705,466 $ 544,527 $ 12,659,212 $ 4,908,875 Capital Projects
City of Montclair
Balance Sheet
Governmental Funds
June 30, 2022
The accompanying notes are an integral part of this statement. 8 Capital Debt
Projects Service
2021 Lease Pension Other Total
Revenue Bonds Obligation Governmental Governmental
Project Fund Bonds Fund Funds Funds
$ - $ 16,807,419 - $ $ 59,581,637
- 627,849 3,486,931 -
- - - 5,000
- - 3,862 61,610
- - 5,255 965,635
- 1,004,808 5,993,756 -
- 1,031,448 - 1,204,152
47,817,767 5,006 47,822,781 8
$ 47,817,767 $ 5,006 $ 19,480,649 $ 119,121,502
$ 190,733 $ 456,612 - $ $ 2,006,713
3,624 - 80,749 664,479
- - 75,495 468,255
- - 300,000 -
- - 8,458 41,044
- 3,500 873,339 1,204,152
194,357 3,500 1,494,653 4,684,643
- - 18,216 431,105
- - 18,216 431,105
- - 5,255 965,635
47,623,410 18,055,306 - 78,326,536
- - 4,822,604 -
- 1,506 18,627,148 -
- - (92,781) 11,263,831
47,623,410 1,506 17,967,780 114,005,754
$ 47,817,767 $ 5,006 $ 19,480,649 $ 119,121,502
The accompanying notes are an integral part of this statement. 9 Fund Balances of Governmental Funds $ 114,005,754
Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 112,995,286
Long-term debt and compensated absences are not due and payable in the current period and, therefore, are not reported in the funds.

Bonds (148,640,032)
Claims and Judgements (2,747,710)
Compensated Absences (1,595,708)
Net Pension Liability (53,155,472)
Total OPEB Liability (11,734,104)
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (911,039) Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability and Net OPEB Liability are not reported in the funds.

Deferred Outflows Related to Pensions 75,333,196
Deferred Inflows Related to Pensions (41,594,437)
Deferred Outflows Related to OPEB 2,044,663
Deferred Inflows Related to OPEB (1,187,960)
Amounts for deferred outflows related to the City's defeasance of prior bonds are not reported in the funds. 219,936
Other long-term assets are not available to pay for current period expenditures and, therefore, are not reported as available revenues in the funds. 431,105 Net Position of Governmental Activities $ 43,463,478
City of Montclair
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of this statement. 10 Special
Revenue
Safety Successor
General Department Agency Economic
Fund Grants Bonds Development

REVENUES
Taxes $ 42,521,019 $ - $ - $ -
Licenses and Permits 515,789 - - -
Intergovernmental 118,561 61,229 1,813,484 -
Charges for Services 4,181,442 - - -
Use of Money and Property 35,033 (116,730) - -
Fines and Forfeitures 389,196 - - -
Miscellaneous 213,365 - - -
Total Revenues 47,974,405 61,229 (116,730) 1,813,484

EXPENDITURES
Current:

General Government 10,975,865 - - -
Public Safety 12,997,712 61,782 - -
Community Development 1,632,763 - 2,668,691 -
Public Works 3,127,997 254,048 - -
Capital Outlay 183,500 - - 2,852
Debt Service:

Bond Issuance Costs - - - -
Principal Retirement - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 28,917,837 61,782 254,048 2,671,543
Excess (Deficiency) of Revenues
Over Expenditures 19,056,568 (553) (370,778) (858,059)

OTHER FINANCING SOURCES (USES)
Bond Issuance - - - -
Premium on Bonds - - - -
Transfers In 942,280 22,243 - -
Transfers Out (5,549,057) (295,588) - -
Total Other Financing Sources (Uses) (4,606,777) (273,345) - -

SPECIAL ITEM
Payment towards Unfunded Pension Liability - - - -
Net Change in Fund Balances 14,449,791 (273,898) (370,778) (858,059) Fund Balance, Beginning of Year 16,769,573 (2,832) 13,018,598 5,680,663 Fund Balance, End of Year $ (276,730) 31,219,364 $ 12,647,820 $ 4,822,604 $ Capital Projects
Year Ended June 30, 2022
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Montclair
The accompanying notes are an integral part of this statement. 11 Capital Debt
Projects Service
2021 Lease Pension Other Total
Revenue Bonds Obligation Governmental Governmental
Project Fund Bonds Fund Funds Funds
$ - $ 2,519,988 - $ $ 45,041,007
- - 515,789 -
- 9,341,502 11,334,776 -
- 339,065 4,520,507 -
13,520 1,536,341 1,468,211 47
- 173,371 - 562,567
- 135,078 348,443 -
13,520 14,045,345 63,791,300 47
- 3,500 1,331,952 12,311,317
- 5,829,991 18,889,485 -
- 2,160,233 6,461,687 -
1,267,171 1,454,203 6,103,419 -
- 1,169,527 1,355,879 -
498,934 - 498,934 -
- 1,160,000 1,160,000 -
878,805 - 2,305,132 3,183,937
1,267,171 1,381,239 15,411,038 49,964,658
(1,253,651) (1,381,192) (1,365,693) 13,826,642
45,000,000 59,911,480 104,911,480 -
3,574,514 - 3,574,514 -
302,547 914,144 5,018,503 7,199,717
- (35,338) (1,294,004) (7,173,987)
48,877,061 60,790,286 3,724,499 108,511,724
(59,407,588) - (59,407,588) -
47,623,410 1,506 2,358,806 62,930,778
- 15,608,974 51,074,976 -
$ 47,623,410 $ 1,506 $ 17,967,780 $ 114,005,754
The accompanying notes are an integral part of this statement. 12 Net Change in Fund Balances - Total Governmental Funds $ 62,930,778 Amounts reported for Governmental Activities in the Statement of Activities are different because:

Governmental funds report capital outlays as an expenditures. However in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.

Acquisition of Capital Assets 3,982,372
Depreciation Expense (4,998,669)
Donation of Capital Assets -
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are amortized in the Statement of Activities.

Issuance of Bonds (104,911,480)
Premium on Bonds (3,574,514)
Amortization of Premium on Bonds 174,723
Principal Repayments 1,160,000
Amortization of Deferred Outflow on Refunding (9,563)
Claims and judgments expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. (601,645)
Accrued interest payable is not reported in the governmental funds. (501,754) To record the net change in compensated absences in the Statement of Activities. (46,121) Some revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and therefore are not reported as revenues in the governmental funds. (365,040)
Some expenses reported in the Statement of Activities relating to pensions and OPEB do not require the use of current financial resources and are not reported as governmental fund expenditures.

Net change in Deferred Outflows Related to Pensions 61,015,889 Net change in Deferred Inflows Related to Pensions (39,337,857) Net change in Net Pension Liability 22,455,971
Net change in Deferred Outflows Related to OPEB (304,240) Net change in Deferred Inflows Related to OPEB 367,249
Net change in Total OPEB Liability (172,238)
Change in Net Position of Governmental Activities $ (2,736,139) City of Montclair
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 13 Business-Type
Activities -
Enterprise Funds
Sewer
Maintenance Fund
ASSETS
Current:

Pooled Cash and Investments $ 5,619,857
Receivables:

Accounts (net of allowance) 587,693
Due from Other Governments 288,447
Total Current Assets 6,495,997
Noncurrent:

Capital Assets Not Being Depreciated -
Capital Assets - Net of Accumulated Depreciation 2,047,184 Total Noncurrent Assets 2,047,184
Total Assets 8,543,181

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to OPEB 94,646
Deferred Outflows Related to Pensions 2,809,263
Total Deferred Outflows of Resources 2,903,909

LIABILITIES
Current:

Accounts Payable 948,482
Accrued Liabilities 39,509
Due to Other Funds -
Current Portion of Pension Obligation Bonds Payable 106,140 Accrued Compensated Absences 11,277
Total Current Liabilities 1,105,408
Noncurrent:

Accrued Compensated Absences 40,610
Pension Obligation Bonds 2,172,110
OPEB Liability 465,870
Net Pension Liability 2,040,221
Total Noncurrent Liabilities 4,718,811
Total Liabilities 5,824,219

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to OPEB 62,665
Deferred Inflows Related to Pensions 1,961,383
Total Deferred Inflows of Resources 2,024,048

NET POSITION
Net Investment in Capital Assets 2,047,184
Unrestricted 1,551,639
Total Net Position $ 3,598,823
City of Montclair
Statement of Net Position
Proprietary Funds
June 30, 2022
The accompanying notes are an integral part of this statement. 14 Business-Type
Activities -
Enterprise Funds
Sewer
Maintenance Fund

OPERATING REVENUES
Sales and Service Charges $ 5,954,457
Total Operating Revenues 5,954,457

OPERATING EXPENSES
Salaries and Benefits 2,577,049
Supplies and Services 108,299
Treatment 3,653,392
Depreciation Expense 73,151
Total Operating Expenses 6,411,891
Operating Income (Loss) (457,434)

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 7,060
Interest Expense (35,338)
Total Nonoperating Revenues (Expenses) (28,278)
Income Before Transfers (485,712)
Transfers Out (25,730)
Changes in Net Position (511,442)
Net Position, Beginning of Year 4,110,265
Net Position, End of Fiscal Year $ 3,598,823
City of Montclair
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 15 Business-Type
Activities -
Enterprise Funds
Sewer
Maintenance Fund
Cash Flows from Operating Activities
Cash Received from Customers and Users $ 5,860,103
Cash Paid to Suppliers for Goods and Services (3,439,981) Cash Paid to Employees for Services (3,592,706)
Net Cash Provided (Used) by Operating Activities (1,172,584) Cash Flows from Non-Capital Financing Activities
Proceeds from Issuance of Pension Obligation Bonds 2,278,250 Interest Paid on Pension Obligation Bonds (35,338)
Cash Received From (Paid to) Other Funds (32,595)
Net Cash Provided (Used) by Non-Capital Financing Activities 2,210,317 Cash Flows from Capital and Related Financing Activities Acquistion of Capital Assets -
Net Cash Provided (Used) by Capital and Related Financing Activities - Cash Flows from Investing Activities
Interest Received 7,060
Net Cash Provided (Used) by Investing Activities 7,060
Net Increase (Decrease) in Cash and Cash Equivalents 1,044,793 Cash and Cash Equivalents at Beginning of Year 4,575,064 Cash and Cash Equivalents at End of Year 5,619,857 $
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating Income (Loss) (457,434) $
Adjustments to Reconcile Operating Income (Loss) Net Cash Provided (Used) by Operating Activities:

Depreciation 73,151
(Increase) Decrease in Accounts Receivable 31,735
(Increase) Decrease in Due from Other Governments (126,089) (Increase) Decrease in Deferred Outflows - OPEB -
(Increase) Decrease in Deferred Outflows - Pensions (2,351,984) Increase (Decrease) in Accounts Payable 321,710
Increase (Decrease) in Accrued Liabilities 17,766
Increase (Decrease) in Compensated Absences 6,366
Increase (Decrease) in Deferred Inflows - OPEB -
Increase (Decrease) in Deferred Inflows - Pension 1,899,885 Increase (Decrease) in Total OPEB Liability -
Increase (Decrease) in Net Pension Liability (587,690)
Total Adjustments (715,150)
Net Cash Provided (Used) by Operating Activities $ (1,172,584) City of Montclair
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 16 Successor
Agency
Private-purpose Custodial
Trust Fund Fund
ASSETS
Pooled Cash and Investments $ 1,106,881 $ 3,884,381
Restricted Cash with Fiscal Agent 2,071,947 -
Total Assets 3,178,828 3,884,381

LIABILITIES
Accounts Payable - -
Accrued Liabilities 3,382 -
Due to Other Governments - -
Interest Payable 260,287 -
Bonds Payable 32,360,029 -
Total Liabilities 32,623,698 -

NET POSITION
Net Position Held for the Benefit of Others 3,884,381 - Net Position Held in Trust for Successor Agency (29,444,870) - Total Net Position $ (29,444,870) $ 3,884,381
City of Montclair
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
The accompanying notes are an integral part of this statement. 17 Successor
Agency
Private-purpose Custodial
Trust Fund Fund

ADDITIONS
Taxes and Assessments 23,853,248 $ 3,559,993 $
Investment Income 339 -
Other Revenue - -
Total Additions 23,853,587 3,559,993

DEDUCTIONS
Administrative Costs 224,933 -
Distributions to other governments - 2,449,081
Pass-through Payments 20,601,540 -
Interest on Bonds 854,455 -
Total Deductions 21,680,928 2,449,081
Change in Net Position 2,172,659 1,110,912
Net Position - Beginning of Year (31,617,529) 2,773,469 Net Position - End of Year $ 3,884,381 (29,444,870) $
City of Montclair
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 18 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of Entity
The reporting entity is a municipal corporation governed by an elected mayor and a four-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Montclair (the City), and its component units, entities for which the City is considered financially accountable. Blended component units, although legally separate entities, are in substance, part of the government's operation, so data from these units are combined herein. The following criteria were used in the determination of blended units:

The members of the City Council also act as the governing body of the Montclair Housing Corporation, the Montclair Housing Authority, the Montclair Public Financing Authority (PFA), and the Montclair Community Foundation (Foundation). The City, Housing Corporation, Housing Authority, PFA, and Foundation are financially interdependent. The Housing Corporation, Housing Authority, PFA, and Foundation are managed by employees of the City. A portion of the City's salary and overhead expenses are billed to the Housing Corporation and Housing Authority each year. The City of Montclair was incorporated April 25, 1956, under the general laws of the State of California and enjoys all the rights and privileges pertaining to "General Law" cities.

Blended Component Units
The Montclair Housing Corporation was established in September 1993. The Corporation presently manages 98 residential units which are occupied by over 300 people. Those properties are covered by 55 year deed restrictions for affordability and approximately 80 percent of those deed restrictions are for very low income families.

The Montclair Housing Authority (the Authority) was established on July 18, 2011 to minimize the amount of unsanitary and unsafe inhabited dwelling accommodations and to provide decent, safe, sanitary, and affordable dwelling accommodations to persons of low income. On January 12, 2012, the Authority elected to serve as the Successor Housing Agency of the City of Montclair Redevelopment Agency (former redevelopment agency) and in accordance with that role it has received transferred Low and Moderate Housing assets of the former redevelopment agency as part of the dissolution process.

The Montclair Public Financing Authority was established through a Joint Exercise of Powers Agreement, dated as of September 1, 2014, by and between the City and the Montclair Housing Authority. The Authority is qualified to assist in the financing of certain public improvements and to issue Bonds under the Bond Law.

The Montclair Community Foundation, a separate 501(c)(3) organization, was established to provide various community services, and is funded by contributions from the community.

Separate financial statements are not prepared for the Corporation, the Authority, the PFA, or Foundation.

B) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. 19 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not property included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this period, the government considers revenues to be available if they are collected within 90 days of the end of the current fiscal period, to include revenues received later than 60 days due to delays in processing payments to the City by other levels of government. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.

Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

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 Safety Department Grants Special Revenue Fund accounts for grant monies to fund public safety related services and activities.

The Successor Agency Bonds Capital Projects Fund accounts for bond funds to be expended on various approved projects.

20 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The Economic Development Capital Projects Fund accounts for monies set aside by City Council for the purpose of economic development within the City.

The 2021 Lease Revenue Bonds Capital Projects Fund accounts for projects funded by the issuance of the 2021 Lease Revenue Bonds.

The Pension Obligation Bonds Debt Service Fund accounts for the debt service payments on the Pension Obligation Bonds.

The City reports the following major proprietary fund:

The Sewer Maintenance Fund accounts for sewer service revenues and the corresponding sewer maintenance expenses.

Additionally, the City reports the following fund types:

The Custodial funds are used to account for assets held by a governmental unit as an agent for individual, private organizations and/or other governmental units. The Successor Agency Private-Purpose Trust Fund accounts for the balances and activities relating to the dissolution of the former Redevelopment Agency.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reporting as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted, as they are needed.

D) Assets, Liabilities and Net Position or Equity
Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash and investments in the Proprietary funds.

Investments for the City, as well as for its component units, are reported at fair value. The City's policy is generally to hold investments until maturity or until market values equal or exceed costs. The State Treasurer's Investment Pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. 21 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Receivables and Payables
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 non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
Advances between funds, if reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation.

All trade and property tax receivables are shown net of an allowance for uncollectibles.

Policy for Eliminating Internal Activity in Government-Wide Statement of Activities Administrative overhead charges are made to funds and programs and are thereby included in the direct expenses of those funds and programs.

Property Tax Calendar
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 then due or pass due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter 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 are 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 onehalf 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 January each year and are delinquent, if unpaid, on August 31.

Functional Classifications
Expenditures of the Governmental funds are classified by function. Functional classifications are defined as follows:
 General Government includes legislative activities which have a primary objective of providing legal and policy guidelines for the City. Also included in this classification are those activities which provide management or support services across more than one functional area.  Public Safety includes those activities which involve the protection of people and property.  Community Development includes those activities which involve the enhancing of the general quality of life.

22 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued  Public Works includes those activities which involve the maintenance and improvement of City streets, roads and park development and maintenance.
 Debt Service includes those activities that account for the payment of long-term principal, interest and fiscal charges.

Prepaid Items
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.

Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution.

Capital Assets
Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets (roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities column 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 for equipment and $50,000 for infrastructure. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets received prior to the implementation of GASB 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received.

The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Sewer Lines 100 years
Structures and Improvements 20 to 99 years
Furniture and Equipment 5 to 20 years
Infrastructure Assets 5 to 30 years
Compensated Absences
Compensated absences are the City's liabilities for future vacation, sick and other leave benefits. The shortterm portion is determined to be the amount due to employees for future absences which is attributable to services already rendered and which is expected to be paid during the next fiscal year. The total amount of liability for compensated absences is segregated between short-term and long-term as indicated above, with both portions being reflected in the government-wide financial statements. Compensated absences are paid, when matured, out of the general fund.
23 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued For Proprietary funds, the total amount of the liability for compensated absences is segregated between shortterm and long-term as indicated above and both portions are reflected in the fund involved.

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 two times his or her regular annual entitlement without approval of the City Manager.

Sick leave is payable when an employee is unable to work because of illness. Sick leave may be accumulated indefinitely or an employee may convert one-half of unused sick leave accrued during the preceding year for cash providing the person has been employed on a full-time basis for two years immediately preceding November 30 of each year. Unused sick leave may be redeemed in the two years prior to retirement at the rate of two days of sick leave for one day of absence leave. All unused sick leave is forfeited upon termination, other than for normal retirement.

Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefits
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, 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: June 30, 2020 Valuation Date, June 30, 2021 Measurement Date, July 1, 2020 through June 30, 2021 Measurement Period.

Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, longterm debt and other obligations are reported as liabilities in the applicable governmental activities, businesstype activities or proprietary fund type statement of net assets. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental funds recognize bond premiums and discounts, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

24 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City reports deferred outflows relating to the Total OPEB Liability as well as the Net Pension Liability.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the City reports deferred inflows related to the Total OPEB Liability and also the Net Pension Liability.

Net Position
Net Investment in Capital Assets – this category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.

Restricted Net Position – this category represents external restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position - this category represents the net position of the City that is not externally restricted for any project or other purpose.

Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position, is applied.

Fund Balances
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance).

In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance

25 City of Montclair
Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued 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 government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, 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.

The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.

Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.

Committed Fund Balance - Amounts constrained for a specific purpose by City Council action. It would require the same action by City Council to remove the constraint.

Assigned Fund Balance - Amounts that are constrained by the City Manager with the intent to use specified financial resources for specific purposes, but are neither restricted nor committed as defined by the City’s fund balance policy adopted by Resolution No. 11-2932.

Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances.

E) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:

GASB 96 – Subscription-Based Information Technology Arrangements (SBITAs): The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023.
2) STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
The following deficits in non-major funds at June 30, 2022 will be funded by future revenues:

Special Revenue Funds:

Community Development Block Grant $ 1,544
After School Program 49,466
SB2 Planning Grant 3,218
Statewide Park Development 16,837
LEAP Grant 18,216
Debt Service Funds:
2021 Lease Revenue Bonds 3,500
26 City of Montclair
Notes to Financial Statements
June 30, 2022
3) CASH AND INVESTMENTS
As of June 30, 2022, cash and investments were reported in the accompanying financial statements as follows:

The City of Montclair maintains a cash and investment pool that is available for use for all funds. Each fund's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.

Deposits
The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure Agency deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC.

The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local government agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Investments
Under provisions of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized:
 Bonds issued by the local agency
 United States Treasury notes, bonds, bills or certificates  Registered state warrants or treasury notes or bonds of California  Bonds, notes, warrants or other evidences of indebtedness of any local agency of the State of California  Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments.
 Bankers' Acceptances and commercial paper
 Negotiable certificates of deposit
 Repurchase Agreements and reverse repurchase agreements  Medium-term notes
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments 59,581,637 $ 5,619,857 $ 4, $ 70, 991,262 $ 192,756 Cash and Investments with Fiscal Agent 47,822,781 - 2, 49, 071,947 894,728 Total Cash and Investments 107,404,418 $ 5,619,857 $ 7, $ 063,209 $ 120,087,484 Government-wide
Statement of Net Position
27 City of Montclair
Notes to Financial Statements
June 30, 2022
3) CASH AND INVESTMENTS – Continued
 Money market funds
 Notes, bonds, or other obligations that are at all times secured by a valid first priority security interest  Mortgage pass-through securities
 Local Agency Investment fund
Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

GASB Statement No. 31
GASB Statement No. 31 established fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement.

Credit Risk
The City's investment policy limits investments in medium-term notes (MTN's) to those rated "A" or higher by Standard and Poor's (S&P) or by Moody's. As of June 30, 2022, the City has no investment in medium-term notes. All securities were investment grade and were legal under State law. Investments in U.S. treasuries are not considered to have credit risk and, therefore, their credit quality is not disclosed. As of June 30, 2022, the City's investments in external investment pools and money market mutual funds are unrated.

28 City of Montclair
Notes to Financial Statements
June 30, 2022
3) CASH AND INVESTMENTS – Continued
Concentration of Credit Risk
The City's investment policy imposes restrictions for certain types of investments with any one issuer. With respect to concentration risk, as of June 30, 2022, the City is in compliance with the investment policy restrictions.

Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement. In accordance with GASB Statement No. 40, if the City has invested more than 5% of its investments in any one issuer, then they are exposed to credit risk. The City had no investments in any one issuer that exceeded 5% of total investments.

Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that at least 15% of the City's portfolio shall mature in one year or less, and 50% in three years or less. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. As of June 30, 2022, the City had the following investments and original maturities:

Fair Value of Investments
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has no investments that are subject to the fair value hierarchy.

12 Months 1 to 3 4 to 5 Fair
Investment Type Or Less Years Years Value
Local Agency Investment Fund 32,140,303 $ - $ - $ 32, $ 140,303 Money Market Mutual Funds 2,611,004 - - 2, 611,004
Cash with Fiscal Agent
Money Market Mutual Funds 49,894,728 - - 49, 894,728
Total 84,646,035 $ - $ - $ 84, $ 646,035
Remaining Investment Maturities
29 City of Montclair
Notes to Financial Statements
June 30, 2022
4) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:

Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:

Capital Assets, Not Depreciated:

Land $ 10,917,565 $ 1,503,256 $ 12,420,821 - $
Work in Progress 20,186,152 1,463,353 9,013,245 12,636,260 Land Improvements 2,591,145 - 2,591,145 -
Total Capital Assets Not Depreciated 33,694,862 2,966,609 9,013,245 27,648,226 Capital Assets, Being Depreciated:

Structures and Improvements 21,996,002 386,880 22,382,882 - Furniture and Equipment 8,870,657 628,883 9,499,540 -
Infrastructure 104,020,565 9,013,245 - 113,033,810
Total Capital Assets Being Depreciated 134,887,224 10,029,008 - 144,916,232 Less Accumulated Depreciation:

Structures and Improvements 9,748,386 509,650 10,258,036 - Furniture and Equipment 6,032,695 767,083 6,799,778 -
Infrastructure 38,789,422 3,721,936 42,511,358 -
Total Accumulated Depreciation 54,570,503 4,998,669 59,569,172 - Total Capital Assets Being
Depreciated, Net 80,316,721 5,030,339 85,347,060 -
Governmental Activities
Capital Assets, Net $ 114,011,583 $ 7,996,948 $ 9,013,245 $ 112,995,286 Beginning Ending
Business-Type Activities: Balance Increases Decreases Balance Capital Assets, Not Depreciated:

Work in Progress $ - $ - $ - $ -
Total Capital Assets Not Depreciated - - - -
Capital Assets, Being Depreciated:

Sewer Lines 3,333,838 - 3,333,838 -
Infrastructure 106,985 - 106,985 -
Furniture and Equipment 1,143,859 - 1,143,859 -
Total Capital Assets Being Depreciated 4,584,682 - 4,584,682 - Less Accumulated Depreciation:

Sewer Lines 1,608,516 33,338 1,641,854 -
Infrastructure 47,350 36,247 - 83,597
Furniture and Equipment 808,481 3,566 812,047 -
Total Accumulated Depreciation 2,464,347 73,151 2,537,498 - Total Capital Assets Being
Depreciated, Net 2,120,335 (73,151) 2,047,184 -
Business-Type Activities
Capital Assets, Net $ 2,120,335 $ (73,151) $ 2,047,184 - $ 30 City of Montclair
Notes to Financial Statements
June 30, 2022
4) CAPITAL ASSETS – Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
5) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2022, was as follows:

Interfund receivables and payables are used for temporary loans between funds, which will be repaid through future tax and grant collections.

Interfund transfers for the 2021-22 fiscal year were as follows:

The General Fund received $906,942 from non-major funds in reimbursement for costs incurred applicable to grant funded programs. In addition, the General Fund transferred $914,144 to the Pension Obligation Funds to pay debt service. The General Fund made transfers of $4,310,123 to non-major funds for debt service costs and to cover deficits in various funds. Significant transfer activity in the non-major funds includes transfers of $906,942 to the General Fund to close out the non-major After School Program and to reimburse for other costs. The remaining transfers were to reimburse various operating costs and project costs.

Governmental Activities:

General Government $ 3,561,370
Public Safety 1,293,816
Community Development 6,149
Public Works 137,334
Total Governmental Activities $ 4,998,669
Business-Type Acitivities: Sewer $ 73,151
Safety Pension
General Department Obligation Non-Major
DUE TO Fund Grants Bonds Fund Funds Total
General Fund - $ - $ 3,500 $ 169,204 $ 172,704 $
Non-Major Funds 31,725 295,588 - 704,135 1,031,448
Total $ 31,725 $ 295,588 $ 3,500 $ 873,339 $ 1,204,152

DUE FROM
Safety 2021 Lease Pension
General Department Revenue Obligation Non-Major
TRANSFERS OUT Fund Grants Bonds Bonds Fund Funds Total
General Fund - $ 22,243 $ $ 302,547 $ 4, 914,144 $ 5,549,057 310,123 $ Safety Department Grants - - - - 295,588 295,588
Pension Obligation Bonds 35,338 - - - - 35,338
Sewer Maintenance - - - - 25,730 25,730
Non-Major Funds 906,942 - - - 1, 387,062 294,004
Total 942,280 $ 22,243 $ $ 302,547 $ 5, 914,144 $ 7,199,717 018,503 $

TRANSFERS IN
31 City of Montclair
Notes to Financial Statements
June 30, 2022
6) LONG-TERM DEBT
A) Long-Term Debt Activity
2014 Lease Revenue Refunding Bonds
During fiscal year 2014-15, the Montclair Public Financing Authority (Authority) issued $45,000,000 of 2014 Lease Revenue Refunding Bonds. The Bonds were issued to refund the outstanding 2005 Lease Revenue Bonds, and provide funds for various public improvements and infrastructure projects. The City and the Authority have entered into a lease agreement, pursuant to which the City will make lease payments to the Authority. The Bonds are secured by these lease payments. Interest on the Bonds is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2015. The Bonds carry various interest rates ranging from 3% to 5%. Principal maturities commenced on October 1, 2015, and continue on October 1 of each year through 2049. The outstanding balance at June 30, 2022 is $39,225,000. The annual requirements to amortize the outstanding indebtedness as of June 30, 2022, including interest, are as follows:

Beginning Ending Due Within
Governmental Activities: Balance Additions Deletions Balance One Year Lease Revenue Bonds:
2014 Refunding Bonds $ 40,155,000 $ 930,000 - $ $ 39,225,000 $ 975,000 Premium 1,333,761 55,573 - 1,278,188 55,573
2021A Bonds 45,000,000 - 230,000 44,770,000 900,000
Premium 3,574,514 - 119,150 3,455,364 119,150
2021 Pension Obligation Bonds 59,911,480 - 59,911,480 - 2,793,860 Claims and Judgments 2,146,065 1,309,611 707,966 2,747,710 1,263,947 Total OPEB Liability 11,561,866 172,238 11,734,104 - -
Net Pension Liablity 75,611,443 22,455,971 - 53,155,472 - Compensated Absences 1,549,587 46,121 1,595,708 - 297,525 Total $ 132,357,722 $ 110,013,964 $ 24,498,660 $ 217,873,026 $ 6,405,055 Business-type Activities:
2021 Pension Obligation Bonds $ 2,278,520 - $ $ 2,278,520 - $ $ 106,140 Compensated Absences 45,521 6,366 51,887 - 11,277
Total OPEB Liability 465,870 - 465,870 - -
Net Pension Liability 2,627,911 587,690 - 2,040,221 -
Total $ 3,139,302 $ 2,284,886 $ 587,690 $ 4,836,498 $ 117,417 Fiscal Year Ending
June 30, Principal Interest Total
2023 $ 975,000 $ 1,612,762 $ 2,587,762
2024 1,025,000 1,562,762 2,587,762
2025 1,075,000 1,510,263 2,585,263
2026 1,125,000 1,466,513 2,591,513
2027 1,165,000 1,432,162 2,597,162
2028 - 2032 6,420,000 6,526,581 12,946,581
2033 - 2037 8,025,000 4,845,450 12,870,450
2038 - 2042 9,935,000 2,920,700 12,855,700
2043 - 2046 9,480,000 776,800 10,256,800
Totals 39,225,000 $ $ 22,653,993 $ 61,878,993
32 City of Montclair
Notes to Financial Statements
June 30, 2022
6) LONG-TERM DEBT – Continued
2021A Lease Revenue Bonds
During fiscal year 2021-22, the Montclair Public Financing Authority (Authority) issued $45,000,000 of 2021A Lease Revenue Bonds. The Bonds were issued to finance either all or a portion of various public improvements and infrastructure projects. The City and the Authority have entered into a lease agreement, pursuant to which the City will make lease payments to the Authority. The Bonds are secured by these lease payments. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2022. The Bonds carry various interest rates ranging from 2% to 4%. Principal maturities commenced on April 1, 2022 and continue each year through April 1, 2051. Future debt service requirements are as follows:
2021 Pension Obligation Bonds
On October 13, 2021, the City issued $62,190,000 in 2021 Taxable Pension Obligation Bonds, to refund the City’s unfunded accrued liability to the California Public Employees’ Retirement System. The bonds are payable from any lawfully available City funds. No debt service reserve fund for the bonds will be established under the related Trust Agreement. Interest on the Bonds is payable semiannually on June 1 and December 1 of each year, commencing on June 1, 2022, with interest rates ranging from .534% to 3.149%. Principal is due on June 1 of each year, from 2023 through 2041. Future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2023 900,000 $ 1,494,413 $ 2,394,413 $
2024 930,000 1,467,412 2,397,412
2025 955,000 1,439,513 2,394,513
2026 985,000 1,410,862 2,395,862
2027 1,015,000 1,381,313 2,396,313
2028 - 2032 5,710,000 6,264,762 11,974,762
2033 - 2037 6,950,000 5,027,163 11,977,163
2038 - 2042 8,455,000 3,521,562 11,976,562
2043 - 2047 9,910,000 2,064,288 11,974,288
2048 - 2051 8,960,000 624,250 9,584,250
Totals 44,770,000 $ 24,695,538 $ 69,465,538 $
Fiscal Year Ending
June 30, Principal Interest Total
2023 $ 2,900,000 $ 1,537,813 $ 4,437,813
2024 2,915,000 1,522,327 4,437,327
2025 2,940,000 1,495,334 4,435,334
2026 2,980,000 1,458,995 4,438,995
2027 3,020,000 1,414,713 4,434,713
2028 - 2032 16,050,000 6,135,200 22,185,200
2033 - 2037 18,285,000 3,900,391 22,185,391
2038 - 2041 13,100,000 913,659 14,013,659
Totals $ 62,190,000 $ 18,378,432 $ 80,568,432
33 City of Montclair
Notes to Financial Statements
June 30, 2022
6) LONG-TERM DEBT – Continued
Claims and Judgments
The City is self-insured to some extent for general liability and workers' compensation claims. For more detail, see Note 9. The balance of claims payable at June 30, 2022 is $2,747,710.

B) Fiduciary Fund Long-Term Debt Activity
Tax Allocation Bonds
2019 A and B (Taxable) Tax Allocation Refunding Bonds
In December 2019, the Successor Agency to the City of Montclair Redevelopment Agency issued the 2019 Series A and B (Taxable) Tax Allocation Refunding Bonds in the amount of $19,890,000 and $12,660,000.

Proceeds from 2019 Bonds were applied to: (i) refund bonds (2007A, 2007B, 2006A, 2006B, 2004, 2001 and 1997) incurred by the Former Agency, (ii) pay for the premium for a debt service reserve insurance policy to be issued by Build America Mutual Assurance Company and (iii) pay costs of issuance of the 2019 Bonds.

The prior bonds were issued to finance and refinance the former Redevelopment Agency’s undertakings with respect to four project areas known as Redevelopment Project Area No. 1, Montclair Redevelopment Project Area No. III, Redevelopment Project Area No. IV, and Redevelopment Project Area No. V.

The 2019 Bonds are payable from and secured by a pledge of Tax Revenues derived from the Bond Project Areas. Interest on the bonds is payable semi-annually on April 1 and October 1 commencing on April 1, 2020. The bonds carry interest rates ranging from 3.00% to 4.00% on the Series A Bonds and 1.856% to

2.897% on the Series B Bonds. Bond maturities begin October 1, 2020, and continue annually through October 1, 2035, ranging from $800,000 to $1,705,000 on Series A Bonds and $255,000 to $1,740,000 on Series B Bonds. The future debt service requirements are as follows:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Bonds:
2019A 18,565,000 $ - $ 1,070,000 $ 17,495,000 $ 1,105,000 $ 2019B 12,405,000 285,000 - 12,120,000 445,000
Premium on Bonds 2,941,103 196,074 - 2,745,029 -
Total $ 33,911,103 $ 1,551,074 - $ $ 32,360,029 $ 1,550,000 Fiscal Year Ending
June 30, Principal Interest Total
2023 1,105,000 $ 672,175 $ 1,777,175 $
2024 1,140,000 632,800 1,772,800
2025 1,195,000 586,100 1,781,100
2026 1,240,000 537,400 1,777,400
2027 1,285,000 486,900 1,771,900
2028 - 2032 7,490,000 1,543,200 9,033,200
2033 - 2036 4,040,000 310,000 4,350,000
Totals 17,495,000 $ 4,768,575 $ 22,263,575 $
2019 A Tax Allocation Bonds
34 City of Montclair
Notes to Financial Statements
June 30, 2022
6) LONG-TERM DEBT – Continued
Dissolution of the former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill X126 (the Bill) that provided for the dissolution of all redevelopment agencies in the State of California. The Bill provided that upon dissolution of the City’s former Redevelopment Agency, either the City or another unit of local government were to serve as the “Successor Agency” to hold the assets of the dissolved redevelopment agency until they are distributed to other units of state and local government. The City elected to become the Successor Agency for the former Redevelopment Agency in accordance with the Bill.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California were prohibited from entering into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution, including the completion of any unfinished projects that were subject to legally enforceable contractual commitments.

A Redevelopment Property Tax Trust Fund (RPTTF) has been established, in accordance with State law, to allocate revenue to the Successor Agency in the amount that is necessary to pay the estimated annual payments on enforceable obligations of the former Redevelopment Agency until all enforceable obligations have been paid in full and all assets have been liquidated.

The former Redevelopment Agency pledged, as security for bonds it issued, a portion of the tax increment revenue that it would have received. The Successor Agency currently receives distributions from the RPTTF, as described above, to pay the debt service on the outstanding bonds. The Successor Agency appropriates each year, from these resources, amounts sufficient to cover the principal and interest requirements on the debt. Total principal and interest remaining on the debt is $37,126,027 with debt service requirements as indicated above. Below is a summarization, by project area, which shows the gross amount of property taxes, and county and tax entity payments made for the fiscal year:

Fiscal Year Ending
June 30, Principal Interest Total
2023 445,000 $ 347,975 $ 792,975
2024 450,000 338,829 788,829
2025 675,000 1, 326,679 001,679
2026 610,000 312,062 922,062
2027 715,000 1, 295,976 010,976
2028 - 2032 5,185,000 6, 944,378 129,378
2033 - 2036 4,040,000 4, 176,552 216,552
Totals 12,120,000 $ 2,742,451 $ 14,862,451 $
2019 B Tax Allocation Bonds
Project Project Project Project Project Mission Blvd
Items Area I Area II Area III Area IV Area V Project Area Total City of Montclair as Successor Agency
for the City of Montclair
Redevelopment Agency
Allocations to Redevelopment Obligation
Retirement Fund (RORF)
Tax Increment Collections $ 192,033 -$ 8,747,650 $ 4,267,337$ 8,086,827$ 2,559,401$ $ 23,853,248 County Administration Charges (915) (42,156) - (14,212) (39,027) (12,288) (108,598) Payments to Taxing Entities (171,708) (7,097,392) - (3,913,391) (6,922,537) (2,546,899) (20,651,927) Net Tax Increment Available for
Debt Service $ 19,410 -$ 1,608,102 $ 339,734$ 1,125,263$ $ 3,092,723 214 $ 35 City of Montclair
Notes to Financial Statements
June 30, 2022
7) PENSIONS PLANS
General Information about the Pension Plans
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. 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 nine rate plans (three miscellaneous and six 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.

Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2020 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2020 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications.

The rate plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

Prior to On or after On or after
Hire date June 21, 2010 June 21, 2010 January 1, 2013
Benefit formula 3% @ 60 2% @ 60 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation (1) (1) (1) Required employee contribution rates 7.80% 6.92% 6.75%
Required employer contribution rates 13.16% + $2,207,462 10.54% + $19,675 9.95% + $11,716 Prior to On or after On or after
Hire date June 27, 2005 June 27, 2005 January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation (1) (1) (1) Required employee contribution rates 8.99% 8.99% 13%
Required employer contribution rates 23.71% + $1,911,292 21.79 + $76,385 13.13% + $11,495 Safety - Police
Miscellaneous
36 City of Montclair
Notes to Financial Statements
June 30, 2022
7) PENSIONS PLANS – Continued
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $5,959,415 in fiscal year 2022.

The City’s contributions to the Plan for the year ended June 30, 2022 were $69,374,294.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported a liability of $55,195,693 for its proportionate share of the net pension liability. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

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

For the year ended June 30, 2022, the City recognized pension expense of $28,901,962. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources:

Prior to On or after On or after
Hire date June 27, 2005 June 27, 2005 January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible compensation (1) (1) (1) Required employee contribution rates 8.99% 8.99% 13.75% Required employer contribution rates 25.59% + $1,683,692 23.62% + $35,141 13.98% + $2,557 (1) - Depending on years of service
Safety - Fire
Proportion - June 30, 2020 0.72631%
Proportion - June 30, 2021 1.02058%
Change - Increase (Decrease) 0.29427%
37 City of Montclair
Notes to Financial Statements
June 30, 2022
7) PENSIONS PLANS – Continued
$69,374,294 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 69,374,294 $ - $ Differences between actual and expected experience 8,094,179 - Changes in assumptions - -
Change in employer's proportion 673,986 2, 028,772
Differences between the employer's contributions and
the employer's proportionate share of contributions - 2, 354,619 Net differences between projected and actual
earnings on plan investments - 39, 172,429
Total 78,142,459 $ 43, $ 555,820
Year Ending
June 30,
2023 $ (7,041,780)
2024 (7,790,531)
2025 (9,152,549)
2026 (10,802,795)
2027 -
Thereafter -
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 7.15%
Inflation 2.75%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. 38 City of Montclair
Notes to Financial Statements
June 30, 2022
7) PENSIONS PLANS – Continued
The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) 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 best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows.

Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.

The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Discount Rate - The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21.

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

New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Global Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 39 City of Montclair
Notes to Financial Statements
June 30, 2022
7) PENSIONS PLANS – Continued
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

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 each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1–percentage point lower or 1–percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.
8) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS
Plan Description – The City’s defined benefit OPEB plan, (the Plan), provides OPEB for all eligible miscellaneous and public safety employees of the City. The plan is a single-employer defined benefit OPEB plan administered by the City. The benefit terms are defined in the applicable Memorandum’s of Understanding for each bargaining unit and may be amended by City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.

Benefits Provided – Substantially all of the City's employees may become eligible for those benefits if they retire after 15 years of continuous service to the City under a normal service retirement. Those and similar benefits for active employees are provided through several insurance companies whose premiums are based on the benefits paid during the year. Benefits are provided as shown below:

1% Decrease Discount Rate 1% Increase
(6.15%) (7.15%) (8.15%)
Net Pension Liability 87,799,202 $ 55, $ 28, 195,693 $ 345,929 40 City of Montclair
Notes to Financial Statements
June 30, 2022
8) OTHER POSTEMPLOYMENT EMPLOYEE BENEFITS - Continued
1) 48 consecutive months of City employment in a management position contiguous to retirement date. 2) PEPRA Employees must be age 52 to retire under CalPERS. 3) Hired < 7/1/04, retired < 7/1/20. Active single cap currently $825 for SBPEA and Fire, $875 for Management, and $948.75 for Police (generally unchanged since 2008/09). 4) Cap can be used towards spouse premium. All other caps can only be used toward retiree premium.

Employees Covered by Benefit Terms – As of the June 30, 2020 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Contributions - The contribution requirements of plan members and the City are established and may be amended by the City Council, and/or the employee associations. Currently, contributions are not required from plan members. The City is currently funding this OPEB liability on a pay-as-you-go basis. This obligation is typically liquidated from the General Fund and responsible Enterprise Funds.

Total OPEB Liability - The City’s Total OPEB liability was measured as of June 30, 2021 and was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

SBPEA Management(1) Police Fire
Eligibility
- Lesser of: - Lesser of: - Lesser of: - n/a
$200/mo. If
retired < 7/1/13
$551/mo. $200/mo. If
retired <
$230/mo. If
retired > 7/1/13
Act Single Cap $230/mo. If
retired >
Act Single Cap Act Single Cap
- Lesser of: - Lesser of: (4) - Lesser of: - Greater of:
$532.16/mo. $551/mo. $532.16/mo. $300/mo.

Act Single Cap Act Single Cap
or 2-party Cap
Act Single Cap $400/mo. at 30
years
Dental & Vision
if Single Medical
Max
$532.16/mo.

Surviving Spouse Benefit
Medicare Part A & B
- City also contributes toward Part A premiums if hired < 4/1/86 Dental, Vision, & Life - None other than management at 25 years service - Retire directly from City under CalPERS (age 50 and 5 years of service or disability) (2)
Age 50 and 15 Years
Service (3)
Age 50 and 25 Years
Service
- Surviving spouse can elect medical, dental, and vision coverage at own cost
- City Contributes toward Part B premiums subject to caps Retirees or spouses of retirees currently receiving benefits 101 Inactives entitled to but not yet receviging benefits - Active employees 148
Total 249
41 City of Montclair
Notes to Financial Statements
June 30, 2022
8) OTHER POSTEMPLOYMENT BENEFITS - Continued
Valuation Date June 30, 2020
Actuarial Cost Method Entry Age Actuarial Cost
Contribution Policy Pay-as-you-go
Mortality Mortality projected fully generational with Scale MP-2021 CalPERS 1997-2015 Experience Study
Age at Retirement 50 (52 for PEPRA)
Health Care Trend Rate 6.75% initial, 3.75% ultimate - Non-Medicare

4.85% initial, 3.75% ultimate - Medicare
Inflation Rate 2.50%
Salary Changes 3.75%
Discount Rate 2.16% - Bond Buyer 20-year Bond index as of 6/30/21

2.21% - Bond Buyer 20-year Bond index as of 6/30/20

3.50% - Bond Buyer 20-year Bond index as of 6/30/19

3.87% - Bond Buyer 20-year Bond index as of 6/30/18

3.58% - Bond Buyer 20-year Bond Index as of 6/30/17
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:

Sensitivity of the Total OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the total OPEB liability of the City, as well as what the City’s total OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:

Total OPEB
Liability (TOL)
Balance at June 30, 2021 (June 30, 2020 measurement date) 12,027,736 $ Changes in the year:

Service cost 312,347
Interest on the total OPEB liability 267,379
Assumption Changes 75,471
Actual vs. Expected Experience -
Changes in benefit terms -
Benefit payments, including refunds (482,959)
Net changes 172,238
Balance at June 30, 2022 (June 30, 2021 measurement date) $ 12,199,974 1% Decrease Discount Rate 1% Increase
(1.16%) (2.16%) (3.16%)
Total OPEB liability (asset) 13,874,069 $ $ 12,199,974 $ 10,817,249 42 City of Montclair
Notes to Financial Statements
June 30, 2022
8) OTHER POSTEMPLOYMENT BENEFITS - Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB - For the year ended June 30, 2022, the City recognized OPEB expense/(income) of $555,376. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

The $446,147 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2023.
9) SELF-INSURANCE PROGRAM
The City is self-insured for workers' compensation claims up to $500,000 for each occurrence and for general liability claims up to $200,000. Excess liability coverage above the self-insurance amounts is provided through the California Insurance Pool Authority (CIPA). CIPA, a public entity risk pool was established to pool resources, share risk, purchase excess insurance and share costs for professional risk management, and claims administration.

Workers' Compensation and Employers Liability Pool Contract is limited per accident at $3,000,000 in excess of the City's self-insurance retention stated above. Portions of general liability exceeding the above-mentioned amounts are covered by CIPA up to a maximum $40,000,000 each occurrence and in the aggregate by Everest National Insurance Company (up to $10,000,000), and American Merchants Casualty Insurance Company (up to $15,000,000), and by Arch Specialty Insurance Company (up to $15,000,000), in that order.

Current
Healthcare
1% Decrease Trend 1% Increase
Total OPEB liability (asset) 11,850,337 $ $ 12,199,974 $ 12,524,927 Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB Contributions Subsequent to the Measurement Date 446,147 $ - $ Changes of Assumptions 1,693,162 400,658
Differences between expected and actual
experience - 849,967
Total 2,139,309 $ 1, $ 250,625
Year Ending
June 30,
2023 (24,350) $
2024 20,525
2025 141,499
2026 158,683
2027 110,233
Thereafter 35,947
43 City of Montclair
Notes to Financial Statements
June 30, 2022
9) SELF-INSURANCE PROGRAM - Continued
Member cities make payments to CIPA based on underwriting estimates. Additional coverage for general liability claims is maintained through CIPA from a commercial insurer for claims in excess of per claim and annual aggregate amounts. Complete financial statements for CIPA may be obtained from their offices at the following address: CIPA, 240 Newport Center Drive, Suite 210, Newport Beach, CA 92660.

As of June 30, 2022, third party claims administrators estimated $2,747,710 in necessary liability reserves for both general liability and workers' compensation claims. The City has not experienced a significant reduction in insurance coverage from the prior year. Additionally, the amount of settlements has not exceeded budgeted coverage for each of the past three fiscal years.

While the ultimate losses incurred through June 30, 2022 are dependent on future developments, based upon information from the City Attorney, outside counsel, service agents and others involved with the administration of the programs, City management believes that the estimated aggregate amount is adequate to cover such losses. Costs relating to the litigation of claims are charged to expenditures as incurred. Claims liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated.

These losses include an estimate of claims that have been incurred but not reported.

Claims liabilities at June 30, 2022 represent the City's best estimate, based on available information, as follows:
10) COMMITMENTS AND CONTINGENCIES
The City participates in several federal and state programs. These programs are subject to examination by the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies, cannot be determined at this time.

The estimated amount of remaining construction obligations at year-end is $5,262,789.

Beginning End
of Year Current Year Claim of Year
Fiscal Year Liability Claims Payments Liability
2021-22 2,146,065 $ 1,309,611 $ 707,966 $ 2, $ 747,710
2020-21 1,910,458 533,053 2, 297,446 146,065
44 City of Montclair
Notes to Financial Statements
June 30, 2022
11) FUND BALANCES
The details of the fund balances as of June 30, 2022 are presented below:
.

Safety Pension Other Total
General Department Successor Economic 2021 Lease Obigation Governmental Governmental Nonspendable: Fund Grants Agency Bonds Development Revenue Bonds Bonds Funds Funds Prepaids $ 960,380 $ - $ - $ - $ - $ - $ 5,255 $ 965,635 Restricted for:

Housing - - - - - 5,774,212 - 5,774,212
Public Safety - - - - - 1,510,058 - 1,510,058
Transportation - - - 47,623,410 - 8,350,031 - 55,973,441 Comm. Development - 12,647,820 - - - 1,924,606 - 14,572,426 Debt Service - - - - - 496,399 - 496,399
Committed to:

Comm. Development - - 4,822,604 - - - 4,822,604 -
Assigned to:

Post-employ. Benefits 3,000,000 - - - - - 3,000,000 -
Retiree Medical Liab. 1,500,000 - - - - - 1,500,000 -
Technology 993,938 - - - - - 993,938 -
Self Insurance 850,000 - - - - - 850,000 -
Equip. Replacement 2,369,544 - - - - - 2,369,544 -
Unanticipated Pers. 1,000,000 - - - - - 1,000,000 -
Building Maintenance 1,913,000 - - - - - 1,913,000 -
Parking Facility 4,794,353 - - - - - 4,794,353 -
POB 2,000,000 - - - - 1,506 2,001,506 -
Contingencies 204,807 - - - - - 204,807 -
Unassigned 11,633,342 (276,730) - - - (92,781) - 11,263,831 Total Fund Balance 31,219,364 $ $ (276,730) $ 12,647,820 $ 4,822,604 $ 47,623,410 $ 17,967,780 1,506 $ $ 114,005,754 45 REQUIRED SUPPLEMENTARY INFORMATION
46 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 16,769,573 $ 16,769,573 $ 16,769,573 $ - Resources (Inflows):

Taxes 21,418,906 36,112,476 42,521,019 6,408,543
Licenses and Permits 514,325 506,375 515,789 9,414
Intergovernmental 564,155 140,900 118,561 (22,339)
Charges for Services 3,810,200 3,807,725 4,181,442 373,717 Use of Money and Property 377,760 505,010 35,033 (469,977) Fines and Forfeitures 470,400 332,200 389,196 56,996
Miscellaneous 293,400 134,500 213,365 78,865
Transfers In - 942,280 942,280 -
Amounts Available for Appropriation 44,218,719 58,308,759 65,686,258 7,377,499 Charges to Appropriation (Outflow):

General Government
City Council 354,581 354,581 307,535 47,046
City Manager 206,579 290,821 380,400 (89,579)
Administration 44,961 42,961 32,981 9,980
Financial Services 624,311 624,311 617,414 6,897
Solid Waste Disposal 2,495,473 2,495,473 2,916,892 (421,419) City Clerk 239,678 228,678 240,933 (12,255)
Personnel/Risk Assessment 441,199 452,199 411,613 40,586 Information Technology Services 907,382 1,035,219 1,270,327 (235,108) Central Services 414,840 457,840 495,483 (37,643)
City Attorney 298,437 304,937 456,950 (152,013)
Non-Departmental 3,563,502 3,688,502 3,845,337 (156,835) Public Safety
Police Administration 252,573 253,093 269,741 (16,648)
Police Support Services 729,960 731,450 766,468 (35,018) Technical Services 342,778 340,704 335,637 5,067
Records Bureau 506,577 511,577 541,644 (30,067)
Investigations 1,118,045 1,140,903 1,088,829 52,074
Uniform Patrol 7,768,390 8,155,304 3,041,854 5,113,450
Communications 850,657 848,049 649,033 199,016
Volunteer Services 58,618 57,618 48,988 8,630
Fire Administration 418,203 417,853 461,881 (44,028)
Fire Prevention 500 500 135,795 (135,295)
Emergency Services 4,749,081 5,195,029 5,224,197 (29,168) Personnel Development 66,160 66,160 64,204 1,956
Buildings and Grounds 13,250 35,652 16,827 18,825
Emergency Preparedness 79,171 76,171 35,872 40,299
Code Enforcement 427,690 531,266 316,742 214,524
City of Montclair
Budgetary Comparison Schedule
General Fund
Year Ended June 30, 2022
Budgeted Amounts
47 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Charges to Appropriation (Outflow): - Continued
Community Development
Planning Commission $ 8,075 $ 8,075 $ 6,920 $ 1,155
Community Development Administration 94,971 94,971 84,423 10,548 Current Planning 245,415 245,415 146,491 98,924
Advance Planning 134,433 134,433 101,557 32,876
Field Inspection 118,499 118,499 123,920 (5,421)
Plan Check 65,848 65,848 96,743 (30,895)
Building Operations 150,978 150,978 159,857 (8,879)
Recreation 1,095,745 1,200,901 704,650 496,251
Clinic 72,884 72,884 61,766 11,118
Senior Citizens 87,080 87,080 36,427 50,653
Nutritional Meals 86,463 86,463 78,309 8,154
Family and Health Education 67,620 67,620 31,700 35,920 Public Works
Management and Construction 332,927 354,909 345,777 9,132 Public Works Inspection 86,444 86,444 121,384 (34,940)
Traffic Safety Engineering 11,878 11,878 141,283 (129,405) Graffiti Abatement 54,437 54,437 17,256 37,181
Street Maintenance 484,246 500,246 691,968 (191,722)
Signing/Painting 27,154 27,154 54,824 (27,670)
Street Sweeping 27,277 27,277 25,862 1,415
Parks Maintenance 468,171 486,171 383,243 102,928
Tree Maintenance 89,252 87,522 73,196 14,326
Vehicle Maintenance 406,822 447,022 474,821 (27,799)
Building Maintenance Services 651,960 1,299,353 374,277 925,076 Heating and Air Conditioning 122,044 122,044 122,084 (40) Janitorial Services 357,529 357,529 302,022 55,507
Capital Outlay 45,000 149,080 183,500 (34,420)
Transfers Out - 35,000 5,549,057 (5,514,057)
Total Charges to Appropriations 32,365,748 34,716,084 34,466,894 249,190 Budgetary Fund Balance, June 30 $ 23,592,675 11,852,971 $ 31,219,364 $ 7,626,689 $ Year Ended June 30, 2022
Budgeted Amounts
City of Montclair
Budgetary Comparison Schedule - Continued
General Fund
48 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 - $ - $ (2,832) $ (2,832) $ Resources (Inflows):

Intergovernmental 209,630 581,888 61,229 (520,659)
Transfers In - - 22,243 22,243
Amounts Available for Appropriation 209,630 581,888 80,640 (501,248) Charges to Appropriation (Outflow):

Public Safety - 714,811 61,782 (653,029)
Transfers Out - - 295,588 (295,588)
Total Charges to Appropriations - 714,811 357,370 (948,617) Budgetary Fund Balance, June 30 $ (132,923 209,630 $ ) $ (276,730) $ (143,807) Budgeted Amounts
City of Montclair
Budgetary Comparison Schedule
Safety Department Grants Special Revenue Fund
Year Ended June 30, 2022
49 City of Montclair
Notes to Required Supplementary Information
June 30, 2022
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. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

The following funds did not have an adopted budget:

Justice Assistance Grant
Montclair Community Foundation
Montclair Housing Authority
Homeless Housing Assistance
50 City of Montclair
Required Supplementary Information
June 30, 2022

CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
Last 10 Years*
*Fiscal year 2018 was the first year of implementation; therefore, 10 years of information are not yet available.

Notes to Schedule:

No assets are accumulated in a trust that meets the criteria in GASBS No. 75, paragraph 4, to pay related benefits.

Benefit Changes: As of the June 30, 2020 Measurement Date, non-management actives who retired from the City will not be able to elect a City medical plan at retirement. Additionally, the City reimbursed cap amount was decreased until the eligible employee reaches the age CalPERS retirement formula.

Changes in Assumptions: As of the June 30, 2021 Measurement Date, the discount rate was decreased from

2.21% to 2.16%, the mortality improvement scale was updated to Scale MP-2021, and general inflation decreased from 2.75% to 2.5%

2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 312,347 $ 301,328 $ 269,472 $ 279,017 $ 318,968 Interest on total OPEB liability 267,379 428,974 449,101 423,080 363,789 Changes in assumptions 75,471 722,177 463,716 (363,175) (1,002,248) Changes in benefits (1,094,234) - - - -
Benefit payments, including refunds (482,959) (571,193) (553,563) (531,634) (642,745) Net change in total OPEB liability 172,238 (212,948) 628,726 (192,712) (962,236) Total OPEB liability - beginning 12,027,736 12,240,684 11,611,958 11,804,670 12,766,906 Total OPEB liability - ending (a) $ 12,199,974 $ 12,027,736 $ 12,240,684 $ 11,611,958 $ 11,804,670 Covered - employee payroll $ 11,990,558 $ 12,337,306 $ 12,201,903 $ 11,361,672 $ 11,850,580 Total OPEB liability as a percentage of
covered-employee payroll 101.75% 97.49% 100.32% 102.20% 99.61% 51 City of Montclair
Required Supplementary Information
June 30, 2022
Schedule of Changes in the Net Pension Liability
And Related Ratios – Last 10 Years*
Agent Multiple-employer Plan
*Fiscal Year 2015 was the first year of implementation; therefore, only four years are reported. In addition, the plan was converted to the cost-sharing pool for the measurement period ended June 30, 2018.

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2017, the accounting discount rate changed from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.165 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 discount rate. In 2018, the Agent multiple-employer miscellaneous pension plan was converted to the cost-sharing pool with CalPERS.

` 2017 2016 2015 2014
Total Pension Liability
Service cost $ 1,116,309 $ 1,034,296 $ 1,051,926 $ 1,111,086 Interest on total pension liability 5,776,058 5,661,587 5,487,626 5,293,536 Differences between expected and actual experience (422,026) (408,943) (299,514) - Changes in assumptions 4,515,966 (1,247,901) - -
Changes in benefits - - - -
Benefit payments, including refunds (4,197,477) (3,911,463) (3,784,153) (3,564,687) Net change in total pension liability 6,788,830 2,375,477 1,207,984 2,839,935 Total pension liability - beginning 78,230,670 75,855,193 74,647,209 71,807,274 Total pension liability - ending (a) $ 85,019,500 $ 78,230,670 $ 75,855,193 $ 74,647,209 Plan Fiduciary Net Position
Contributions - employer $ 1,693,037 $ 1,526,904 $ 1,316,337 $ 1,139,453 Contributions - employee 511,740 615,134 560,336 471,260 Net investment income 5,990,392 263,579 1,262,238 8,533,869 Benefit payments (4,197,477) (3,911,463) (3,784,153) (3,564,687) Administrative Expense (79,948) (33,940) (62,571) -
Net change in plan fiduciary net position 3,917,744 (1,539,786) (707,813) 6,579,895 Plan fiduciary net position - beginning 54,149,399 55,689,185 56,396,998 49,817,103 Plan fiduciary net position - ending (b) $ 58,067,143 $ 54,149,399 $ 55,689,185 $ 56,396,998 Net pension liability - ending (a) - (b) $ 26,952,357 $ 24,081,271 $ 20,166,008 $ 18,250,211 Plan fiduciary net position as a percentage
of the total pension liability 68.30% 69.22% 73.42% 75.55% Covered payroll $ 6,106,387 $ 6,138,986 $ 6,056,685 $ 5,950,546 Net pension liability as percentage of
covered payroll 441.38% 392.27% 332.95% 306.70%
Measurement Period
52 City of Montclair
Required Supplementary Information
June 30, 2022
Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan
*Fiscal year 2015 was the first year of implementation, therefore, only four years are reported. In addition, the plan was converted to the cost-sharing pool for the measurement period ended June 30, 2018.

Valuation Date: 6/30/13, 6/30/14, 6/30/15, and 6/30/16

Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2018 1,898,964 $ (1,898,964) $ - $ 6,106,387 $ 31.10%
2017 1,693,037 (1,693,037) - 6,138,986 27.58%
2016 1,526,904 (1,526,904) - 6,056,685 25.21%
2015 1,164,198 (1,164,198) - 5,950,546 19.56%
53 City of Montclair
Required Supplementary Information
June 30, 2022
Schedule of the City’s Proportionate Share
of the Net Pension Liability – Last 10 Years*
Cost-sharing Plan
*Fiscal year 2015 was the first year of implementation; therefore, ten years of information are not yet available.

Notes to Schedule of the City’s Proportionate Share of the Net Pension Liability:

Changes in Assumptions: In 2018, the City’s miscellaneous Agent multiple-employer plan was converted to the risk pools and is now included as part of the risk pool reporting. In 2017, the accounting discount rate changed from 7.65% to 7.15%. In 2016, there were no changes. 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 discount rate.

Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Covered Pension Liability a % of the Total Measurement Date Liability Pension Liability Payroll as a % of Payroll Pension Liability 2021 1.02058% 55,195,693 $ 11,990,558 $ 460.33% 77.39%
2020 0.71908% 78,239,354 12,337,306 634.17% 75.10%
2019 0.71404% 73,168,182 11,799,285 620.11% 68.61%
2018 0.71058% 68,473,398 12,111,468 565.36% 69.53%
2017 0.40340% 40,005,736 5,742,193 696.70% 69.71%
2016 0.40861% 35,357,128 5,706,922 619.55% 70.87%
2015 0.41915% 28,770,251 5,523,210 520.90% 75.56%
2014 0.40976% 25,497,439 5,309,711 480.20% 78.20%
54 City of Montclair
Required Supplementary Information
June 30, 2022
Schedule of Pension Contributions – Last 10 Years*
Cost-sharing Plan
*Fiscal year 2015 was the first year of implementation; therefore, ten years of information are not yet available.

Valuation Date: 6/30/13, 6/30/14, 6/30/15, 6/30/16, 6/30/17, 6/30/18, 6/30/19 and 6/30/20 Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 $ 7,699,512 $ (69,374,294) $ (61,674,782) $ 12,824,490 60.04% 2021 7,002,204 (7,002,204) 11,990,558 - 58.40%
2020 6,528,038 (6,528,038) 12,337,506 - 52.91%
2019 5,540,282 (5,540,282) 11,799,285 - 46.95%
2018 2,870,221 (2,870,221) 6,005,081 - 47.80%
2017 2,687,316 (2,687,316) 5,742,193 - 46.80%
2016 2,418,705 (2,418,705) 5,706,922 - 42.38%
2015 1,960,293 (1,960,293) 5,523,210 - 35.49%
55 SUPPLEMENTARY INFORMATION
56 City of Montclair
Combining Balance Sheet
Non-major Funds
June 30, 2022
Community
Park Development
Gas Tax Measure I Traffic Safety Development Block Grant ASSETS
Pooled Cash and Investments 1,113,601 $ 4,654,534 $ 17,998 $ 1,154,807 $ 5,411 $ Restricted Cash with Fiscal Agent - - - - -
Receivables:

Accounts 46,507 - - - 53,620
Notes and Loans - - - - -
Accrued Interest - - - - -
Prepaid Costs - - - - -
Due from Other Governments 243,962 149,225 8,837 - -
Due from Other Funds - 442,941 31,725 - -
Total Assets $ 1,404,070 $ 5,246,700 $ 58,560 $ 1,154,807 $ 59,031

LIABILITIES
Accounts Payable $ 97,401 $ 1,395 - $ $ 2,955 - $
Accrued Liabilities 17,901 - - - -
Deposits Payable - - - - -
Due to Other Governments - 4,458 - 4,000 -
Due to Other Funds 5,477 - - 53,620 -
Total Liabilities 120,779 5,853 - 60,575 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - - - -
Total Deferred Inflows of Resources - - - - -

FUND BALANCES (DEFICITS)
Nonspendable - - - - -
Restricted 1,283,291 5,246,700 52,707 1,154,807 -
Unassigned - - - (1,544) -
Total Fund Balances (Deficits) 1,283,291 5,246,700 52,707 1,154,807 (1,544) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 1,404,070 $ $ 5,246,700 $ 58,560 $ 1,154,807 $ 59,031 Special Revenue Funds
57 State Asset Federal Asset
Air Quality Older State Asset Public Forfeiture Forfeiture Forfeiture School Improvement American Act Forfeiture Safety DOJ Section 11489 Treasury District Grant $ - 130,894 $ 118,279 $ 235,304 $ 309,718 $ 42,224 $ 132,345 $ - $ - - - - - - - -
20,485 - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 13,024 440 45,958 - 78 - -
- - - - - - - -
$ 143,918 $ 20,485 $ 118,719 $ 281,262 $ 309,718 $ 42,302 $ 132,345 $ - $ 1,506 $ 2,827 $ 33,023 - $ $ - $ 6,733 - $ $ -
4,634 - - - - - - -
- - - - - - - -
- - - - - - - -
13,024 - - - - - - -
1,506 20,485 33,023 - - 6,733 - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
142,412 118,719 - 248,239 309,718 42,302 125,612 -
- - - - - - - -
142,412 118,719 248,239 309,718 42,302 125,612 - -
$ 143,918 $ 20,485 $ 118,719 $ 281,262 $ 309,718 $ 42,302 $ 132,345 $ - Continued
Special Revenue Funds
58 City of Montclair
Combining Balance Sheet
Non-major Funds - Continued
June 30, 2022
Justice Crime Recycling After
Assistance Prevention Block School
SSLEF Grant PC 1202.5 Grant Program
ASSETS
Pooled Cash and Investments 410,732 $ 15,024 $ 2,282 $ 76,313 $ 53,498 $ Restricted Cash with Fiscal Agent - - - - -
Receivables:

Accounts - - - - -
Notes and Loans - - - - -
Accrued Interest - - - - -
Prepaid Costs - - - - -
Due from Other Governments - - 26 - -
Due from Other Funds - - - - -
Total Assets $ 410,732 $ 15,024 $ 2,308 $ 76,313 $ 53,498

LIABILITIES
Accounts Payable - $ - $ - $ - $ 52,207 $
Accrued Liabilities - - - - 50,532
Deposits Payable - - - - 225
Due to Other Governments - - - - -
Due to Other Funds - - - - -
Total Liabilities - - - - 102,964

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - - - -
Total Deferred Inflows of Resources - - - - -

FUND BALANCES (DEFICITS)
Nonspendable - - - - -
Restricted 410,732 15,024 2,308 76,313 -
Unassigned - - - - (49,466)
Total Fund Balances (Deficits) 410,732 15,024 2,308 76,313 (49,466) Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 410,732 $ 15,024 $ 2,308 $ 76,313 $ 53,498 $ Special Revenue Funds
59 Disability Mt. Baldy Montclair Kaiser
Immunization E.M.S. Prop 30 Access- United Way Housing Permanente CARES Act Grant Paramedic SB 109 Bus. License Grant Corporation Grant $ 1,371 - $ 9,387 $ 99,956 $ 46,106 $ - $ 2,063,191 $ 4,187 $ - - - - - - - -
- - 6,972 - - - 49,305 -
- - - - - - - -
- - - - - - 3,211 -
- - - - - - 5,255 -
- - - - 2,371 - - -
- - - - - - - -
$ 1,371 - $ 16,35 $ 9 $ 99,956 $ 48,477 $ 2,120,96 - $ 2 $ 4,187 $ - $ 6,858 - $ $ 1,091 $ 979 $ 27,266 - $ $ 365
- - - - - 5,731 - -
- - - - - 75,270 - -
- - - - - - - -
- - - - - - - -
- 6,858 1,091 - 979 108,267 - 365
- - - - - - - -
- - - - - - - -
- - - - - 5,255 - -
1,371 - 9,501 98,865 47,498 2,007,440 - 3,822
- - - - - - - -
1,371 - 9,501 98,865 47,498 2,012,695 - 3,822
$ 1,371 - $ $ 16,359 $ 99,956 $ 48,477 $ 2,120,962 - $ $ 4,187 Continued
Special Revenue Funds
60 City of Montclair
Combining Balance Sheet
Non-major Funds - Continued
June 30, 2022
Resource Title IIIB ASES Hope Thru
Center Sr. Supportive Community Supplemental Housing
Grant Services Foundation Grant Grant
ASSETS
Pooled Cash and Investments $ 19,591 $ 169,945 - $ $ 2,900 $ - Prepaid Costs - - - - -
Receivables:

Accounts 3,839 - - - -
Notes and Loans - - - - -
Accrued Interest - - - - -
Prepaid Costs - - - - -
Due from Other Governments - - - - -
Due from Other Funds 20,536 - - - -
Total Assets $ 24,37 19,591 $ 5 $ 169,945 $ 2,900 $ -

LIABILITIES
Accounts Payable $ 1,089 $ - $ 2,900 - $ $ -
Accrued Liabilities 1,826 - - - -
Deposits Payable - - - - -
Due to Other Governments - - - - -
Due to Other Funds 22,549 - - - -
Total Liabilities 1,089 24,375 2,900 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - - - -
Total Deferred Inflows of Resources - - - - -

FUND BALANCES (DEFICITS)
Nonspendable - - - - -
Restricted 18,502 169,945 - - -
Unassigned - - - - -
Total Fund Balances (Deficits) 18,502 169,945 - - -
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 19,591 $ 24,375 $ 169,945 $ 2,900 $ - Special Revenue Funds
61 Montclair Public Homeless Healthy
Park CFD 2011-1 CFD 2011-2 Housing Education Emergency Community SB2 Planning Maintenance Paseos Arrow Station Authority Govt. PEG Aid Program Strategic Plan Grant $ 71,600 $ 166,205 $ 90,071 $ 3,178,960 $ 78,062 $ 15,107 - $ $ - - - - - - - - -
- - - 9,266 - - 17,625 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 131 - - - - -
- - - - 43,645 - - -
$ 71,600 $ 166,205 $ 90,202 $ 3,178,960 $ 87,328 $ 43,645 $ 15,107 $ 17,625 $ 39,318 40,245 $ 1,162 $ 446 $ - $ - $ - $ - $
125 - - - - - - -
- - - - - - - -
- - - - - - - -
- - 7,500 - - 43,645 - 20,843
39,443 40,245 8,662 446 - 43,645 - 20,843
- - - - - - - -
- - - - - - - -
- - - - - - - -
126,762 31,355 81,540 3,178,514 87,328 - 15,107 -
- - - - - - - (3,218)
31,355 126,762 81,540 3,178,514 87,328 15,107 (3,218) - $ 71,600 $ 166,205 $ 90,202 $ 3,178,960 $ 87,328 $ 43,645 $ 15,107 $ 17,625 Continued
Special Revenue Funds
62 City of Montclair
Combining Balance Sheet
Non-major Funds - Continued
June 30, 2022
Capital
Project
Funds
Homeless Statewide
Housing Park LEAP Pavement
Assistance Development Grant ARPA Impact Fees
ASSETS
Pooled Cash and Investments 32,550 $ - $ 26,329 $ - $ 158,350 $ Restricted Cash with Fiscal Agent - - - - -
Receivables:

Accounts - 174,976 68,427 - -
Notes and Loans - - - - -
Accrued Interest - - - - -
Prepaid Costs - - - - -
Due from Other Governments - - - - 19,447
Due from Other Funds - - - - -
Total Assets $ 32,550 $ 174,976 $ 94,756 $ 177,79 - $ 7

LIABILITIES
Accounts Payable - $ - $ 26,329 $ - $ - $
Accrued Liabilities - - - - -
Deposits Payable - - - - -
Due to Other Governments - - - - -
Due to Other Funds - 191,813 68,427 - -
Total Liabilities - 191,813 94,756 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - - 18,216 - -
Total Deferred Inflows of Resources - - 18,216 - -

FUND BALANCES (DEFICITS)
Nonspendable - - - - -
Restricted 32,550 - - - 177,797
Unassigned - (16,837) (18,216) - -
Total Fund Balances (Deficits) 32,550 (16,837) (18,216) - 177,797 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 32,550 $ 174,976 $ 94,756 $ - $ 177,797 $ Special Revenue Funds
63 Debt Service
Capital Project Funds Fund
2014 2014
Underground General Plan Refunding PUC Housing Development Refunding In-lieu Update Bonds Infrastructure Reimbursement Fund Impact Fee Bonds $ 340,517 $ 100,122 $ (361,218) - $ $ 262,502 $ 555,708 $ 1,202,956 $ - - - - - - - - 8
- - 176,827 - - - - -
- - - - - - - -
- - 651 - - - - -
- - - - - - - -
- - 24,918 - - - 496,391 -
- - 492,601 - - - - -
$ 340,517 $ 100,122 $ 651 $ 333,128 $ 262,502 $ 555,708 $ 1,202,956 $ 496,399 $ - - $ - $ 110,517 $ - $ - $ - $ - $
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - 442,941 -
- - - 110,517 - - 442,941 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
100,122 340,517 651 222,611 262,502 555,708 760,015 496,399 - - - - - - - -
100,122 340,517 651 222,611 262,502 555,708 760,015 496,399 $ 340,517 $ 100,122 $ 651 $ 333,128 $ 262,502 $ 555,708 $ 1,202,956 $ 496,399 64 City of Montclair
Combining Balance Sheet
Non-major Funds - Continued
June 30, 2022
Debt Service
Fund
2021 Lease Non-Major
Revenue Governmental
Bonds Total
ASSETS
Pooled Cash and Investments - $ 16,807,419 $
Restricted Cash with Fiscal Agent - 8
Receivables:

Accounts 627,849 -
Notes and Loans - -
Accrued Interest 3,862 -
Prepaid Costs 5,255 -
Due from Other Governments - 1,004,808
Due from Other Funds 1,031,448 -
Total Assets $ 19,480,64 - $ 9

LIABILITIES
Accounts Payable $ 456,612 - $
Accrued Liabilities 80,749 -
Deposits Payable 75,495 -
Due to Other Governments 8,458 -
Due to Other Funds 873,339 3,500
Total Liabilities 1,494,653 3,500

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Grants - 18,216
Total Deferred Inflows of Resources - 18,216

FUND BALANCES (DEFICITS)
Nonspendable 5,255 -
Restricted 18,055,306 -
Unassigned (92,781) (3,500)
Total Fund Balances (Deficits) (3,500) 17,967,780
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances - $ 19,480,649 $
65 City of Montclair
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Funds
Year Ended June 30, 2022
Community
Park Development
Gas Tax Measure I Traffic Safety Development Block Grant

REVENUES
Taxes 1,796,480 $ - $ - $ - $ - $
Intergovernmental - 998,942 - - 165,242
Charges for Services - - - 5,600 -
Use of Money and Property 1,496 5,785 - - -
Fines and Forfeitures - - 109,456 - -
Miscellaneous - - - - -
Total Revenues 1,797,976 1,004,727 109,456 5,600 165,242

EXPENDITURES
Current:

General Government 59,050 - - - -
Public Safety - - - - -
Community Development - - - - 165,242
Public Works 869,003 - - - -
Capital Outlay 127,915 - - - -
Debt Service:

Principal Retirement - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 1,055,968 - - - 165,242
Excess (Deficiency) of Revenues
Over (Under) Expenditures 742,008 1,004,727 109,456 5,600 -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out (94,628) (100,000) - - -
Total Other Financing Sources (Uses) (94,628) (100,000) - - - Net Change in Fund Balances 647,380 1,004,727 9,456 5,600 - Fund Balance, Beginning of Year 635,911 4,241,973 43,251 1,149,207 (1,544) Fund Balance, End of Year $ 1,283,291 $ 5,246,700 $ 52,707 $ 1,154,807 $ (1,544) Special Revenue Funds
66 State Asset Federal Asset
Air Quality Older State Asset Public Forfeiture Forfeiture Forfeiture School Improvement American Act Forfeiture Safety DOJ Section 11489 Treasury District Grant $ - $ - $ 541,931 - $ $ - $ - $ - $ -
50,875 177,592 - - - - 98,315 -
- - - - - - - -
162 - 148 - 385 54 165 -
- 6,773 - 15,605 - 1,195 40,162 -
48,347 - - - - - - -
51,037 225,939 6,921 541,931 15,990 1,249 40,327 98,315 - - - - - - - -
- - 528,992 - 110,000 4,224 7,346 98,315
139,770 252,274 - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
139,770 252,274 528,992 - 110,000 4,224 7,346 98,315
(88,733) (26,335) 6,921 12,939 (94,010) (2,975) 32,981 - 26,335 - - - - - - -
- - - - - - - -
26,335 - - - - - - -
(88,733) 6,921 - 12,939 (94,010) (2,975) 32,981 -
231,145 111,798 235,300 403,728 - 45,277 92,631 -
$ 142,412 $ 118,719 - $ $ 248,239 $ 309,718 $ 42,302 $ 125,612 $ - Continued
Special Revenue Funds
67 City of Montclair
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Funds - Continued
Year Ended June 30, 2022
Justice Crime Recycling After
Assistance Prevention Block School
SSLEF Grant PC 1202.5 Grant Program

REVENUES
Taxes - $ - $ - $ - $ - $
Intergovernmental 161,330 27,914 - 5,229 1,487,665
Charges for Services - - - - -
Use of Money and Property 510 19 2 95 -
Fines and Forfeitures - - 180 - -
Miscellaneous - - - - -
Total Revenues 161,840 27,933 182 5,324 1,487,665

EXPENDITURES
Current:

General Government - - - - 86,815
Public Safety 100,000 13,020 - - -
Community Development - - - 10,121 1,204,056
Public Works - - - - -
Capital Outlay - - - - -
Debt Service:

Principal Retirement - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 100,000 13,020 - 10,121 1,290,871
Excess (Deficiency) of Revenues
Over (Under) Expenditures 61,840 14,913 182 (4,797) 196,794

OTHER FINANCING SOURCES (USES)
Transfers In - 111 - - -
Transfers Out - - - (772,097) -
Total Other Financing Sources (Uses) - 111 - (772,097) - Net Change in Fund Balances 61,840 15,024 182 (4,797) (575,303) Fund Balance, Beginning of Year 348,892 2,126 81,110 525,837 - Fund Balance, End of Year $ 410,732 $ 15,024 $ 2,308 $ 76,313 $ (49,466) Special Revenue Funds
68 Disability Mt. Baldy Montclair Kaiser
Immunization E.M.S. Prop 30 Access- United Way Housing Permanente CARES Act Grant Paramedic SB 109 Bus. License Grant Corporation Grant $ - - $ - $ - $ - $ - $ - $ - $
- 411,874 - - - - - -
- - 45,642 - 9,335 - - -
- - - 124 - - 952,487 -
- - - - - - - -
1,371 - - - - - - -
1,371 411,874 45,642 124 9,335 - 952,487 -
- - - - - - 1,180,451 -
- - 36,141 - - - - -
- - - - - - - 798
- - - 23,875 - - - -
1,568 - - - - - - -
- - - - - - - -
- - - - - - - -
1,568 36,141 - 23,875 - 1,180,451 - 798
410,306 1,371 9,501 (23,751) 9,335 (227,964) - (798)
24,355 - - - - - - -
- - - - - - - -
24,355 - - - - - - -
434,661 1,371 9,501 (23,751) 9,335 (227,964) - (798)
(434,661) - 122,616 - 38,163 2,240,659 - 4,620
$ 1,371 - $ $ 9,501 $ 98,865 $ 47,498 $ 2,012,695 - $ $ 3,822 Continued
Special Revenue Funds
69 City of Montclair
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Funds - Continued
Year Ended June 30, 2022
Resource Title IIIB ASES Hope Thru
Center Sr. Supportive Community Supplemental Housing
Grant Services Foundation Grant Grant

REVENUES
Taxes $ - $ - $ - $ - $ -
Intergovernmental - - 141,105 - -
Charges for Services 31,555 - - - -
Use of Money and Property - - - - -
Fines and Forfeitures - - - - -
Miscellaneous 28,500 56,860 - - -
Total Revenues 28,500 31,555 56,860 141,105 -

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - - - -
Community Development 26,739 35,553 45,058 119,712 -
Public Works - - - - -
Capital Outlay - - - - -
Debt Service:

Principal Retirement - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 26,739 35,553 45,058 119,712 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,761 (3,998) 11,802 21,393 -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - (34,846) - -
Total Other Financing Sources (Uses) - - (34,846) - -
Net Change in Fund Balances 1,761 (3,998) 11,802 (13,453) - Fund Balance, Beginning of Year 16,741 3,998 158,143 13,453 - Fund Balance, End of Year $ 18,502 $ 169,945 - $ $ - $ - Special Revenue Funds
70 Montclair Public Homeless Healthy
Park CFD 2011-1 CFD 2011-2 Housing Education Emergency Community SB2 Planning Maintenance Paseos Arrow Station Authority Govt. PEG Aid Program Strategic Plan Grant $ 140,573 - $ 41,004 $ - $ - $ - $ - $ - $
- - - - - - - 17,625
- 33,730 - - 37,054 - - -
207 - 112 574,582 - - - -
- - - - - - - -
- - - - - - - -
140,780 33,730 41,116 574,582 37,054 - - 17,625
- - 1,875 - - 261 - -
59,391 - 9,782 - - - - -
- 84,063 - - - - 1,829 20,843
96,225 - 31,156 - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
84,063 155,616 42,813 - - 261 1,829 20,843
(50,333) (14,836) (1,697) 574,582 37,054 (261) (1,829) (3,218) - - - - - 261 - -
- - - - - - - -
- - - - - 261 - -
(50,333) (14,836) (1,697) 574,582 37,054 (1,829) - (3,218) 81,688 141,598 83,237 2,603,932 50,274 16,936 - -
$ 31,355 $ 126,762 $ 81,540 $ 3,178,514 $ 87,328 $ 15,107 - $ $ (3,218) Continued
Special Revenue Funds
71 City of Montclair
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Funds - Continued
Year Ended June 30, 2022
Capital
Project
Funds
Homeless Statewide
Housing Park LEAP Pavement
Assistance Development Grant ARPA Impact Fees

REVENUES
Taxes - $ - $ - $ - $ - $
Intergovernmental 75,000 355,610 50,211 4,794,353 -
Charges for Services - - - - 76,393
Use of Money and Property - - - - -
Fines and Forfeitures - - - - -
Miscellaneous - - - - -
Total Revenues 75,000 355,610 50,211 4,794,353 76,393

EXPENDITURES
Current:

General Government - - - - -
Public Safety - - 68,427 4,794,353 -
Community Development 54,175 - - - -
Public Works - - - - 150,005
Capital Outlay - - - - -
Debt Service:

Principal Retirement - - - - -
Interest and Fiscal Charges - - - - -
Total Expenditures 54,175 - 68,427 4,794,353 150,005
Excess (Deficiency) of Revenues
Over (Under) Expenditures 20,825 355,610 (18,216) (73,612) -

OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out (191,813) - - - -
Total Other Financing Sources (Uses) (191,813) - - - -
Net Change in Fund Balances 20,825 163,797 (18,216) (73,612) - Fund Balance, Beginning of Year 11,725 (180,634) - 251,409 - Fund Balance, End of Year $ 32,550 $ (16,837) $ (18,216) $ 177,797 - $ Special Revenue Funds
72 Debt Service
Fund
2014 2014
Underground General Plan Refunding PUC Housing Development Refunding In-lieu Update Bonds Infrastructure Reimbursement Fund Impact Fee Bonds $ - $ - $ - $ - $ - $ - $ - $ -
- - 322,620 - - - - -
11,501 - - - - 381 87,874 -
- - - - - - - 8
- - - - - - - -
- - - - - - - -
11,501 - 322,620 - - 381 87,874 8
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 283,939 - - - - - -
- - 1,040,044 - - - - -
- - - - - - 930,000 -
- - - - - - 1,663,888 -
- 283,939 - 1,040,044 - - 2,593,888 -
11,501 - (283,939) (717,424) - 381 87,874 (2,593,880)
- 284,590 - 721,328 - - 3,090,279 -
- - - (61,609) - (39,011) - -
- 284,590 - 721,328 (61,609) (39,011) - 3,090,279
11,501 - 651 3,904 (61,609) 381 48,863 496,399
340,517 88,621 218,707 - 324,111 555,327 711,152 -
$ 340,517 $ 100,122 $ 651 $ 222,611 $ 262,502 $ 555,708 $ 760,015 $ 496,399 Capital Project Funds
73 City of Montclair
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Funds - Continued
Year Ended June 30, 2022
Debt Service
Fund
2021 Lease Non-Major
Revenue Governmental
Bonds Total

REVENUES
Taxes $ 2,519,988 - $
Intergovernmental 9,341,502 -
Charges for Services 339,065 -
Use of Money and Property 1,536,341 -
Fines and Forfeitures 173,371 -
Miscellaneous 135,078 -
Total Revenues 14,045,345 -

EXPENDITURES
Current:

General Government 1,331,952 3,500
Public Safety 5,829,991 -
Community Development 2,160,233 -
Public Works 1,454,203 -
Capital Outlay 1,169,527 -
Debt Service:

Principal Retirement 1,160,000 230,000
Interest and Fiscal Charges 641,244 2,305,132
Total Expenditures 874,744 15,411,038
Excess (Deficiency) of Revenues
Over (Under) Expenditures (874,744) (1,365,693)

OTHER FINANCING SOURCES (USES)
Transfers In 5,018,503 871,244
Transfers Out (1,294,004) -
Total Other Financing Sources (Uses) 871,244 3,724,499
Net Change in Fund Balances (3,500) 2,358,806
Fund Balance, Beginning of Year - 15,608,974
Fund Balance, End of Year $ 17,967,780 (3,500) $
74 City of Montclair
Single Audit Report on
Federal Awards Programs
For the Fiscal Year Ended June 30, 2022
Certified Public Accountants
Van Lant
Fankhanel LLP
&
,

CITY OF MONTCLAIR
Single Audit Report on
Federal Award Programs
June 30, 2022

CITY OF MONTCLAIR

SINGLE AUDIT REPORT ON FEDERAL AWARD PROGRAMS
Year Ended June 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance 3 - 5 Schedule of Expenditures of Federal Awards 6 - 7
Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9 - 11
Summary Schedule of Prior Audit Findings 12
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of Montclair
Montclair, California
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, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Montclair (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 30, 2023.

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

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

Our consideration of internal control 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 and therefore, material weaknesses may exist that were not identified. 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 have not been identified.
1 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

March 30, 2023

2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance City Council
City of Montclair
Montclair, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Montclair’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City of Montclair, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City of Montclair and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the requirements referred to above.
3 Responsibilities of Management for Compliance
Management is responsible for compliance with requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City’s compliance based on our audit. 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 generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal 4 program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information, of the City of Montclair, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 30, 2023, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

March 30, 2023
5 CITY OF MONTCLAIR

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(SUPPLEMENTARY INFORMATION)
Year Ended June 30, 2022

Federal Program Program
Federal Grantor/Pass-Through ALN Identification ExpendGrantor/Program or Cluster Title Number Number itures Department of Housing and Urban Development
CDBG - Entitlement Grants Cluster
Passed through the County of San Bernardino:

Community Development Block Grant 14.218 MONT-21-1-05Z/0793 20,429 $ Community Development Block Grant 14.218 MONT-21-1-15Z/1002 10,175 Community Development Block Grant 14.218 MONT-21-1-05A/2220 2,662 COVID-19 - Community Development Block Grant 14.218 MONT-19CV-1-03T/0206 68,685 COVID-19 - Community Development Block Grant 14.218 MONT-19CV-1-05W/0205 63,290 Total Department of Housing and Urban Development Programs 165,241 Department of Justice
Passed through the County of San Bernardino:

COVID-19 - Coronavirus Emergency Supplemental Funding 16.034 2020-VD-BX-0532 13,020 Total Department of Justice Programs 13,020
Department of the Transportation
Highway Planning and Construction Cluster
Passed through the California Department of Transportation:

Highway Planning and Construction 20.205 BRLS-5326 (018) 393,941 Total Highway Planning and Construction Cluster 393,941 Highway Safety Cluster
Passed through the California Office of Traffic Safety:

State and Community Highway Safety 20.600 PT-21117 1,797 Subtotal Highway Safety Cluster 1,797
Passed through the California Office of Traffic Safety:

Minimum Penalties for Repeat Offenders 20.608 PT-21117 6,504 Total Department of Transportation Programs 402,242
Department of Treasury
Passed through the State of California:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 4,794,353 Total Department of Treasury Programs 4,794,353 *
6 CITY OF MONTCLAIR

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(SUPPLEMENTARY INFORMATION)
Year Ended June 30, 2022
Federal Program Program
Federal Grantor/Pass-Through ALN Identification ExpendGrantor/Program or Cluster Title Number Number itures Department of Health and Human Services
Aging Cluster
Passed through the County of San Bernardino:

Special Programs for the Aging Titile III, Part B 93.044 15-41 35,553 Passed through the County of San Bernardino:

Special Programs for the Aging Titile III, Part C 93.045 16-388 164,091 Passed through the County of San Bernardino:

Nutrition Services Incentive Program 93.053 19-47 13,500 Subtotal Aging Cluster 213,144
Total Department of Health and Human Services Programs 213,144 Department of Homeland Security
Passed through the County of San Bernardino OES:

Homeland Security Grant 97.067 2018-0054 14,577
Subtotal 14,577
Total Department of Homeland Security Programs 14,577
Total Expenditures of Federal Awards 5,602,577$
* = Major Program
7 CITY OF MONTCLAIR

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLICABLE TO THE SCHEDULE

OF FEDERAL AWARDS
A) Scope of Presentation
The accompanying schedule presents only the expenditures incurred (and related awards received) by the City of Montclair that are reimbursable under programs of federal agencies providing financial assistance. For the purpose of this schedule, financial assistance includes both federal financial assistance received directly from a federal agency, as well as federal funds received from pass-through entities by the City of Montclair. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule.

Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with the state, local or other non-federal funds are excluded from the accompanying schedule.

B) Basis of Accounting
The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are incurred when the City of Montclair becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the federal program. The City did not elect to use the 10% de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs.

C) Major Programs
The City had one major program for the year ended June 30, 2022, consisting of the Coronavirus State and Local Fiscal Recovery Fund, which had total disbursements of $4,794,353. This amount calculates to 84% of the total disbursements from federal awards. 8 CITY OF MONTCLAIR

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of Auditor’s Report Issued: Unmodified
Internal Control Over Financial Reporting:

Material Weakness(es) Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? None reported
Noncompliance Material to Financial Statements Noted? No Federal Awards
Internal Control Over Major Programs:

Material Weakness(es) Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? None reported
Type of Auditors’ Report Issued on Compliance for Major Programs: Unmodified Any Audit Findings Disclosed that are Required to be Reported in Accordance With Uniform Guidance? No
Identification of Major Programs:

CFDA Numbers Name of Federal Program or Cluster
U.S. Department of Treasury

21.027 Coronavirus State and Local Fiscal Recovery Fund Dollar Threshold used to Distinguish Between Type A
And Type B Programs: $ 750,000

Auditee Qualified as Low-Risk Auditee? No

9 CITY OF MONTCLAIR

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
There were no auditor’s findings to be reported in accordance with Government Auditing Standards.

10 CITY OF MONTCLAIR

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no auditor’s findings to be reported in accordance with the Uniform Guidance. 11 CITY OF MONTCLAIR

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
There were no auditor’s findings to be reported in accordance with Government Auditing Standards.

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no auditor’s findings required to be reported in accordance with the Uniform Guidance in the prior year.
12 City of Montclair as Successor Agency for
the City of Montclair Redevelopment Agency
(Successor Agency)
Bonding Requirement Financial Disclosure
Financial Statement
Fiscal Year Ended June 30, 2022
Certified Public Accountants
Van Lant
Fankhanel LLP
&
,
City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Bonding Requirement Financial Disclosure Financial Statement Year Ended June 30, 2022
City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Bonding Requirement Financial Disclosure Financial Statement Year Ended June 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor's Report ........................................................................................ 1 Bonding Financial Disclosure Basis Financial Statements Combining Project Area Balance Sheet –
All Debt Service Funds ........................................................................................ 4 Combining Project Area Statement of Revenues,
Expenditures and Changes in Fund Balance –
All Debt Service Funds ........................................................................................ 5 Notes to Financial Statements ................................................................................ 6 Independent Auditor’s Report
City of Montclair as Successor Agency for the
City of Montclair Redevelopment Agency
Montclair, California
Opinion
We have audited the accompanying financial statements of the City of Montclair as Successor Agency for the City of Montclair Redevelopment Agency (Successor Agency), which comprise the bonding financial disclosure basis project area balance sheet, all debt services funds as of June 30, 2022, and the bonding financial disclosure basis project area revenues, expenditures and changes in fund balances, all debt service funds for the year then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and liabilities of the Successor Agency as of June 30, 2022, and its revenues, expenditures and changes in fund balances for the year then ended in accordance with the financial reporting disclosure provisions applicable to its bond issues outstanding.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 Successor Agency, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with financial reporting disclosure requirements of bond issues of the Successor Agency, 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 Successor Agency’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.
1 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 generally accepted 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 generally accepted auditing standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Successor Agency’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Successor Agency’s ability to continue as a going concern for a reasonable period of time.

Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting and the reporting entity. The financial statements are prepared by the Successor Agency on the basis of the financial reporting provisions of bonding financial disclosure requirements, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to comply with the financial disclosure provisions of the bonding contractual relationships referred to above. Our opinion is not modified with respect to this matter.

2 Restriction on Use
Our report is intended solely for the information and use of the City of Montclair as Successor Agency for the City of Montclair Redevelopment Agency and organizations assessing compliance with bonding provisions. It is not intended to be and should not be used by anyone other than these specified parties.

Murrieta, California
March 30, 2023
3 Project Area Project Area Project Area Project Area Project Area Mission Blvd. 2019 Series A 2019 Series B No. 1 No. 2 No. 3 No. 4 No. 5 Project Area Refunding Bonds Refunding Bonds Total ASSETS
Cash and investments 18,304$ $ 369,284$ - 52,734$ 700,592$ $ 445 $ - $ 1,141,359 - $ Cash and investments with trustee - - - - - 1,450,355 - 621,592 2,071,947 Total Assets 18,304$ $ 369,284$ - 52,734$ 700,592$ $ 1,450,355 445 $ $ 621,592 $ 3,213,306

FUND BALANCES
Fund Balances: Restricted 18,304$ $ 369,284$ - 52,734$ 700,592$ $ 1,450,355 445 $ $ 621,592 $ 3,213,306 Total Fund Balances 18,304$ $ 369,284$ - 52,734$ 700,592$ $ 1,450,355 445 $ $ 621,592 $ 3,213,306

CITY OF MONTCLAIR AS SUCCESSOR AGENCY

FOR THE CITY OF MONTCLAIR REDEVELOPMENT AGENCY

COMBINING BONDING FINANCIAL DISCLOSURE BASIS PROJECT AREA BALANCE SHEET

ALL DEBT SERVICE FUNDS
JUNE 30, 2022
4 Project Area Project Area Project Area Project Area Project Area Mission Blvd. 2019 Series A 2019 Series B Revenues: No. 1 No. 2 No. 3 No. 4 No. 5 Project Area Refunding Bonds Refunding Bonds Total Taxes and Assessments: Tax Increment 192,033$ $ 8,747,650$ - 4,267,337$ 8,086,827$ $ 2,559,401 $ - $ 23,853,248 - $ Use of Money and Property: Interest income - - - - - - 339 - 339 Total Revenues 192,033 8,747,650 - 4,267,337 8,086,827 2,559,401 339 23,853,587 - Expenditures: Current: General Government: Administrative costs 915 42,156 - 14,212 39,027 12,288 - 108,598 - Debt Service: Interest expense - - - - - 704,800 - 355,112 1,059,912 Long-term debt repayments - - - - - 1,070,000 - 285,000 1,355,000 Total Expenditures 915 42,156 - 14,212 39,027 12,288 1,774,800 640,112 2,523,510 Excess of Revenues over (under) Expenditures 191,118 8,705,494 - 4,253,125 8,047,800 2,547,113 (1,774,461) (640,112) 21,330,077 Other Financing Sources (Uses): Transfers in - Debt Service - - - - - 1,793,750 - 797,396 2,591,146 Transfers out - Debt Service (15,948) (1,355,307) - (287,000) (932,891) - - (2,591,146) - Refunding Bonds: Bond Proceeds - - - - - - - - -
Issuance Premium - - - - - - - - -
Interest Income - - - - - - - - -
Defeasance Cost - - - - - - - - -
Administrative and operational fund payments (328) (17,282) - (9,442) (17,423) (5,912) - (50,387) - Pass through and residual taxing entity payments (171,380) (7,080,110) - (3,903,949) (6,886,063) (2,540,987) - (20,582,489) - Total Other Financing Sources (Uses) (187,656) (8,452,699) - (4,200,391) (7,836,377) (2,546,899) 1,793,750 797,396 (20,632,876) Excess of Revenues and Other Sources over (under) Expenditures and Other Uses 3,462 252,795 - 52,734 211,423 214 19,289 157,284 697,201Fund Balances: Beginning of Year 14,842 116,489 - 489,169 - 1,431,066 231 464,308 2,516,105 End of Year 18,304$ $ 369,284$ - $ 52,734 700,592$ $ 1,450,355 445 $ $ 621,592 $ 3,213,306 FOR THE FISCAL YEAR ENDED JUNE 30, 2022

CITY OF MONTCLAIR AS SUCCESSOR AGENCY

FOR THE CITY OF MONTCLAIR REDEVELOPMENT AGENCY

COMBINING BONDING FINANCIAL DISCLOSURE BASIS PROJECT AREA STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

ALL DEBT SERVICE FUNDS
5 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Description of Entity
This reporting entity is for the City of Montclair as Successor Agency for the City of Montclair Redevelopment Agency (Successor Agency).

The City of Montclair Redevelopment Agency (the Agency) was activated June 6, 1977, pursuant to the State of California Health and Safety Code, Section 33000, entitled "Community Development Law." The primary purpose of the Agency was to encourage private redevelopment of property and to rehabilitate areas suffering from economic disuse arising from poor and inadequate planning, inadequate street layout and street access, lack of open space, landscaping and other improvements and facilities necessary to establish and maintain the economic growth of the City. However, the Agency was dissolved as of February 1, 2012 as a result of State legislation and its assets and obligations were transferred to the Successor Agency for disposition.

The City of Montclair as Successor Agency for the City of Montclair Redevelopment Agency became effective on February 1, 2012 because on December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. The Bill provides 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 12, 2012, the City Council of the City of Montclair elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution No. 12-2934.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, successor agencies will only be 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. The State Controller’s Office review has been done and the Successor Agency complied with all findings present. 6 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final several months of the activity of the redevelopment agency continued to be reported in the governmental funds of the Former Redevelopment Agency. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are maintained in the same accounting structure as previously utilized by the Successor Agency; however, they are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City of Montclair.

The Successor Agency is the continuing entity arising from the dissolution of the former Redevelopment Agency. Therefore, ending balances displayed in the accompanying financial statements represent balances applicable to the Successor Agency only.

B) Government-Wide and Fund Financial Statements
The financial statements (i.e., balance sheet and statement of revenues, expenditures and changes in fund balance – all debit service funds) report information on all of the activities relating to bond financial disclosure requirements of the Successor Agency.

C) Measurement Focus, Basis of Accounting and Financial Statement Presentation The financial statements are prepared by the Successor Agency on the basis of the financial reporting provisions of bonding financial disclosure requirements, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This is done to comply with the financial disclosure provisions of the bonding contractual relationships as explained below.

The former Redevelopment Agency was a party to various bonding arrangements and those bond issues require financial reporting of the various assets, liabilities, revenues and expenditures segregated by redevelopment project area for pledged revenues and bonding transactions. To demonstrate that reporting, the accompanying financial statements have been prepared which are segregated by the project areas of the former Redevelopment Agency. The various governmental funds presented are limited to those that involve debt service operations of the Successor Agency. Since that is only a portion of the total operations of the Successor Agency (surviving entity of the dissolution process), these financial statements do not report the financial position and results of operations of the complete Successor Agency which has been done as part of the City of Montclair's financial reporting.
7 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The accompanying fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this period, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

The County of San Bernardino collects property taxes for the entities. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. 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 January each year and are delinquent on August 31. All property taxes are deposited, by the County of San Bernardino, into a Redevelopment Property Tax Trust Fund (RPTTF). Allocations from the RPTTF occur twice during the fiscal year and cover an upcoming six-month period.

These allocations are based upon Department of Finance (DOF) approved enforceable obligations that are reported, by the Successor Agency, on Redevelopment Obligation Payment Schedules (ROPS). The County of San Bernardino deducts from the RPTTF administrative charges and pass through obligations that it calculates and, if sufficient monies remain, the DOF approved amount of enforceable obligations. Any remaining balance in the RPTTF after the enforceable obligation distribution, is distributed to the taxing entities by the County as residual balances. If insufficient monies are present to accomplish the required allocation for DOF approved enforceable obligations then the subordination of pass through obligations will be considered. Enforceable obligation allocations serve as the resources to accomplish debt service payments. Based upon information received from the County, the RPTTF allocations have been grossed up in the accompanying financial statements to show the total of property taxes received as well as administrative costs, pass through payments and residual balance allocations made.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures are recorded only when payment is due. 2) CASH AND INVESTMENTS
As of June 30, 2022, cash and investments were reported in the accompanying financial statements as follows:

Cash and Investments $ 1,141,359
Cash and Investments with Trustee 2,071,947
Total Cash and Investments $ 3,213,306
8 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
2) CASH AND INVESTMENTS - Continued
The Successor Agency maintains a cash and investment pool that is available for use for all of its funds. The amounts above represent only a portion of that investment pool applicable to its debt service funds. Monies held by its fiscal agents, under the provisions of bond indentures, are not part of this cash and investment pool and are reported separately as cash and investments with trustees. The Successor Agency has adopted an investment policy, which authorizes it to invest in various investments. Since the amounts above represent only a portion of the cash and investment pool of the Successor Agency, information on specific investments has not been included here. That information is available in the City of Montclair's financial report where the Successor Agency is reported as a private-purpose trust fund.

Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Successor Agency’s investment policy. The debt agreements, available at the City, identify the investment types that are authorized for investments held by bond trustees, and also include provisions relating to interest rate risk, credit risk, and concentration of credit risk.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

As of June 30, 2022, the Successor Agency had no investments.

Fair Value of Investments
The Successor Agency categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Successor Agency has no investments at year-end that are subject to recurring fair value measurements.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The Successor Agency held no investments at June 30, 2022.
9 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
2) CASH AND INVESTMENTS - Continued
Concentration of Credit Risk
The Successor Agency does not have investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total Successor Agency investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository 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. The custodial risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Successor Agency’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Successor Agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: The Successor Agency did not have any deposits with financial institutions in excess of federal depository insurance limits and held in uncollateralized accounts. As of June 30, 2022, the Successor Agency held no investments.
3) INTERFUND TRANSFERS
The accompanying financial statements report debt service funds for the Successor Agency.

These funds receive pledged revenue and then transfer those amounts to the funds specified in the applicable bond indentures. Once the pledged revenues exceed the requirements of the bond indentures then the pledge is satisfied and any remaining amounts are available for use in accordance with applicable legal requirements. Transfers In and Out have been reported in the accompanying financial statements as follows:
10 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
3) INTERFUND TRANSFERS - Continued
Transfers In
Debt Service Requirements 2,591,146 $
Transfers Out
Debt Service Requirements 2,591,146 $
Only accounting funds applicable to the debt servicing operations of the Successor Agency are presented in these financial statements. Administrative allowance and operational fund payments were made from the tax increment operations of the Successor Agency to remove monies from accounting funds handling pledged revenue to accounting funds which would accomplish distributions to taxing entities and pay administrative costs of the Successor Agency.
4) LONG-TERM DEBT
The following is a summary of changes in long-term debt of the Successor Agency for the year ended June 30, 2022:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Refunding Bonds 30,970,000 $ $ 1, - $ 355,000 $ 29,615,000 $ 1,550,000 During Fiscal Year 2019-20, the Successor Agency issued Tax Allocation Refunding Bonds, 2019 Series A and B to refund bonds incurred by the Former Agency (the “Prior Bonds”), pay for a debt service reserve insurance policy to be established under the Indenture and pay costs of issuance. This issuance was done to achieve substantial debt service savings over the remaining life of the Prior Bonds. The refunding bond plan has been approved by the Successor Agency’s Board of Directors, County Oversight Board and the Department of Finance.

The Prior Bonds were issued to finance and refinance the Former Agency’s undertakings with respect to four project areas (Project Area No. 1, Project Area No. III, Project Area No.

IV, and Project Area No. V).

The Prior Bonds consist of the following series of bonds issued by the Former Agency:
 Montclair Redevelopment Project Area No. I 1997 Taxable Tax Allocation Bonds, of which $55,000 remains outstanding (the “1997 PA1 Bonds”);  Montclair Redevelopment Project Area No. III Tax Allocation Bonds, Issue of 2007A, of which $18,845,000 remains outstanding (the “2007A PA3 Bonds”); 11 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
4) LONG-TERM DEBT - Continued
 Montclair Redevelopment Project Area No. III Taxable Tax Allocation Bonds, Issue of 2007B, of which $1,870,000 remains outstanding (the “2007B PA3 Bonds”);  Montclair Redevelopment Project No. IV 2004 Tax Allocation Refunding Bonds, of which $3,275,000 remains outstanding (the “2004 PA4 Bonds”);  Montclair Redevelopment Project No. V 2001 Tax Allocation Refunding Bonds, of which $6,255,000 remains outstanding (the “2001 PA5 Bonds”);  Montclair Redevelopment Project No. V Taxable Tax Allocation Refunding Bonds, Issue of 2006A, of which $4,830,000 remains outstanding (the “2006A PA5 Bonds”);  Montclair Redevelopment Project No. V Tax Allocation Refunding Bonds, Issue of 2006B, of which $3,280,000 remains outstanding (the “2006B PA5 Bonds”).

Proceeds of the 2019A Bonds were used to refund a portion of the 2007A Project Area III Bonds, a portion of the 2004 Project Area IV Bonds, a portion of the 2001 Project Area V Bonds and a portion of the 2006 Project Area V Bonds. Proceeds of the 2019B Bonds were used to refund all of remaining balance of the Prior Bonds.

Interest on the 2019 Series A and B Bonds is payable semiannually on April 1 and October 1 of each year, commencing April 1, 2020. The Bonds carry various interest rates from 1.856% to 4%. Principal maturities begin on October 1, 2020, and continue on October 1 of each year through 2035. The outstanding balance at June 30, 2022 is $29,615,000. The debt service requirements to maturity for bonds outstanding as of June 30, 2022, are as follows:

Principal Interest Principal Interest Principal Interest 2022 - 2023 1,105,000 $ $ 672,175 $ 445,000 $ 347,975 $ 1,550,000 $ 1,020,150 2023 - 2024 1,140,000 632,800 450,000 338,829 1,590,000 971,629 2024 - 2025 1,195,000 586,100 675,000 326,679 1,870,000 912,779 2025 - 2026 1,240,000 537,400 610,000 312,062 1,850,000 849,462 2026 - 2027 1,285,000 486,900 715,000 295,976 2,000,000 782,876 2027 - 2032 7,490,000 1,543,200 5,185,000 1,111,677 12,675,000 2,654,877 2032 - 2035 4,040,000 310,000 4,040,000 176,550 8,080,000 486,550 Totals 17,495,000 $ $ 4,768,575 $ 12,120,000 $ 2,909,748 $ 29,615,000 $ 7,678,323 2019 Tax Allocation Refunding
Bonds, Series A
2019 Taxable Tax Allocation
Refunding Bonds, Series B Total
12 City of Montclair as Successor Agency
for the City of Montclair Redevelopment Agency (Successor Agency) Notes to Financial Statements
June 30, 2022
5) AVAILABLE RESOURCES OF SUCCESSOR AGENCY
As part of the elimination of the City of Montclair Redevelopment Agency, AB 1484 required that "due diligence" reviews be conducted on the Successor Agency to determine amounts that were to be paid to the county for allocation to taxing entities. Two reviews were required. The first related to Low- and Moderate-income Housing Funds held by the Successor Agency and the second was for all other funds of the Successor Agency. The Lowand Moderate-income Housing review was completed, approved by the Department of Finance and resulted in $7,884,597 being paid to the County of San Bernardino for allocation to the respective taxing entities. The Other Funds review has also been completed by the Successor Agency, approved by the Department of Finance and it resulted in $7,876,440 being paid to the County of San Bernardino for allocation to the respective taxing entities.

As a result of these payments, the resources available to the Successor Agency to provide monies for debt service, etc. have been substantially depleted. On May 16, 2013, DOF issued a Finding of Completion to the Successor Agency indicating that all required payments specified under the legislation had been met.
13

Montclair City CouncilMay 1, 2023

Montclair City Council
May 1, 2023