Norco City Council
February 1, 2023

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

SUPPLEMENTAL LAW ENFORCEMENT BLOCK GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2022
(127)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental $ 100,000 $ 161,285 $ 161,285 $ -
Total Revenues 100,000 161,285 161,285 -

EXPENDITURES
Current:

Public Safety 100,000 161,285 161,285 -
Total Expenditures 100,000 161,285 161,285 -

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - $ - $ - $ -

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #1 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(128)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments $ 10,607 $ 10,607 $ 10,297 $ (310)
Total Revenues 10,607 10,607 10,297 (310)

EXPENDITURES
Current:

Streets and Highways 13,370 13,370 12,033 1,337
Total Expenditures 13,370 13,370 12,033 1,337
NET CHANGE IN FUND BALANCE (2,763) (2,763) (1,736) 1,027 Fund Balance - Beginning of Year 2,471 2,471 2,471 -
FUND BALANCE - END OF YEAR $ (292) $ (292) $ 735 $ 1,027

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #2 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(129)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments $ 159,058 $ 159,058 $ 159,783 $ 725
Investment Loss - - 60 60
Total Revenues 159,058 159,058 159,843 785

EXPENDITURES
Current:

Streets and Highways 227,098 227,098 121,788 105,310
Total Expenditures 227,098 227,098 121,788 105,310
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (68,040) (68,040) 38,055 106,095

OTHER FINANCING SOURCES
Transfers In 72,161 77,161 - (77,161)
Total Other Financing Sources 72,161 77,161 - (77,161)
NET CHANGE IN FUND BALANCE 4,121 9,121 38,055 28,934
Fund Balance (Deficit) - Beginning
of Year (38,811) (38,811) (38,811) -

FUND BALANCE (DEFICIT) - END
OF YEAR $ (34,690) $ (29,690) $ (756) $ 28,934

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #3 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(130)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments $ 89,201 $ 89,201 $ 89,466 $ 265
Investment Earnings (Loss) - - (131) (131)
Total Revenues 89,201 89,201 89,335 134

EXPENDITURES
Current:

Streets and Highways 104,788 104,788 92,598 12,190
Total Expenditures 104,788 104,788 92,598 12,190
NET CHANGE IN FUND BALANCE (15,587) (15,587) (3,263) 12,324 Fund Balance - Beginning of Year 12,485 12,485 12,485 - FUND BALANCE - END OF YEAR $ (3,102) $ (3,102) $ 9,222 $ 12,324

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #4 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(131)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments $ 461,877 $ 461,877 $ 464,122 $ 2,245
Investment Earnings - - (4,196) (4,196)
Other - - 57 57
Total Revenues 461,877 461,877 459,983 (1,894)

EXPENDITURES
Current:

Streets and Highways 484,037 484,037 481,440 2,597
Total Expenditures 484,037 484,037 481,440 2,597
NET CHANGE IN FUND BALANCE (22,160) (22,160) (21,457) 703 Fund Balance - Beginning of Year 352,538 352,538 352,538 - FUND BALANCE - END OF YEAR $ 330,378 $ 330,378 $ 331,081 $ 703

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #5 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(132)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments $ 60,838 $ 60,838 $ 64,524 $ 3,686
Investment Earnings - - (1,828) (1,828)
Total Revenues 60,838 60,838 62,696 1,858

EXPENDITURES
Current:

Streets and Highways 77,172 77,172 50,943 26,229
Total Expenditures 77,172 77,172 50,943 26,229
NET CHANGE IN FUND BALANCE (16,334) (16,334) 11,753 28,087 Fund Balance - Beginning of Year 139,764 139,764 139,764 - FUND BALANCE - END OF YEAR $ 123,430 $ 123,430 $ 151,517 $ 28,087

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STORM DRAIN CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(133)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 351,315 $ 351,315 $ 289,533 $ (61,782) Intergovernmental 11,175,252 11,175,252 (11,175,252) -
Charges for Services - - 85,067 85,067
Investment Earnings (Loss) 5,064 5,064 1,175 (3,889)
Total Revenues 11,531,631 11,531,631 375,775 (11,155,856)

EXPENDITURES
Current:

Streets and Highways 11,220,252 11,220,252 1,132,984 10,087,268 Total Expenditures 11,220,252 11,220,252 1,132,984 10,087,268 NET CHANGE IN FUND BALANCE 311,379 311,379 (757,209) (1,068,588) Fund Balance - Beginning of Year 611,071 611,071 611,071 - FUND BALANCE - END OF YEAR $ 922,450 $ 922,450 $ (146,138) $ (1,068,588)

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GENERAL GOVERNMENT IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(134)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 176,002 $ 176,002 $ 153,076 $ (22,926) Investment Earnings 4,776 4,776 (7,709) (12,485)
Other 195,757 195,757 240,000 44,243
Total Revenues 376,535 376,535 385,367 8,832

EXPENDITURES
Current:

General Government 344,491 566,974 358,630 208,344
Total Expenditures 344,491 566,974 358,630 208,344
Excess (Deficiency) of
Revenues Over (Under)
Expenditures 32,044 (190,439) 26,737 217,176

OTHER FINANCING USES
Transfers In - 7,685 7,685 -
Total Other Financing Uses - 7,685 7,685 -
NET CHANGE IN FUND BALANCE 32,044 (182,754) 34,422 217,176 Fund Balance - Beginning of Year 482,972 482,972 482,972 - FUND BALANCE - END OF YEAR $ 515,016 $ 300,218 $ 517,394 $ 217,176

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

FIRE IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(135)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 192,879 $ 192,879 $ 129,411 $ (63,468) Investment Earnings 6,925 6,925 (10,310) (17,235)
Total Revenues 199,804 199,804 119,101 (80,703)

EXPENDITURES
Current:

Public Safety 170,000 215,157 632 214,525
Total Expenditures 170,000 215,157 632 214,525
NET CHANGE IN FUND BALANCE 29,804 (15,353) 118,469 133,822 Fund Balance - Beginning of Year 693,301 693,301 693,301 - FUND BALANCE - END OF YEAR $ 723,105 $ 677,948 $ 811,770 $ 133,822

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

TRAILS IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(136)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 254,659 $ 254,659 $ 202,538 $ (52,121) Investment Earnings (Loss) 378 378 (2,727) (3,105)
Other - - 5,000 5,000
Total Revenues 255,037 255,037 204,811 (50,226)

EXPENDITURES
Current: .

Streets and Highways 35,000 35,000 36,768 (1,768)
Total Expenditures 35,000 35,000 36,768 (1,768)
NET CHANGE IN FUND BALANCE 220,037 220,037 168,043 (51,994) Fund Balance - Beginning of Year 38,143 38,143 38,143 - FUND BALANCE - END OF YEAR $ 258,180 $ 258,180 $ 206,186 $ (51,994)

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PARK IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(137)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 434,550 $ 434,550 $ 401,645 $ (32,905) Investment Earnings 4,365 4,365 (8,574) (12,939)
Other - - - -
Total Revenues 438,915 438,915 393,071 (45,844)

EXPENDITURES
Current:

Culture and Leisure 232,793 239,468 157,936 81,532
Capital Outlay:

Other 10,000 11,671 3,700 7,971
Total Expenditures 242,793 251,139 161,636 89,503
NET CHANGE IN FUND BALANCE 196,122 187,776 231,435 43,659 Fund Balance - Beginning of Year 429,746 429,746 429,746 - FUND BALANCE - END OF YEAR $ 625,868 $ 617,522 $ 661,181 $ 43,659

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PUBLIC MEETING CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(138)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 6,636 $ 6,636 $ 14,524 $ 7,888
Investment Earnings 1,075 1,075 (1,502) (2,577)
Total Revenues 7,711 7,711 13,022 5,311
NET CHANGE IN FUND BALANCE 7,711 7,711 13,022 5,311
Fund Balance - Beginning of Year 107,225 107,225 107,225 - FUND BALANCE - END OF YEAR $ 114,936 $ 114,936 $ 120,247 $ 5,311

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STREET IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(139)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 3,058,286 $ 3,058,286 $ 2,441,602 $ (616,684) Intergovernmental 319,000 319,000 319,000 -
Investment Earnings (Loss) 10,638 10,638 (28,167) (38,805) Total Revenues 3,387,924 3,387,924 2,732,435 (655,489)

EXPENDITURES
Current:

Streets and Highways 4,128,999 4,141,999 1,495,608 2,646,391 Total Expenditures 4,128,999 4,141,999 1,495,608 2,646,391 NET CHANGE IN FUND BALANCE (741,075) (754,075) 1,236,827 1,990,902 Fund Balance - Beginning of Year 1,087,963 1,087,963 1,087,963 - FUND BALANCE - END OF YEAR $ 346,888 $ 333,888 $ 2,324,790 $ 1,990,902

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

AQUATICS CENTER CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(140)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Investment Earnings $ - $ - $ 18 $ 18
Total Revenues - - 18 18

OTHER FINANCING SOURCES (USES)
Transfers Out - - (10,193) 10,193
Total Other Financing Uses - - (10,193) 10,193
NET CHANGE IN FUND BALANCE - - (10,175) (10,175)
Fund Balance - Beginning of Year 10,175 10,175 10,175 - FUND BALANCE - END OF YEAR $ 10,175 $ 10,175 $ - $ (10,175)

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

ANIMAL CONTROL CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(141)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees $ 27,992 $ 27,992 $ 24,747 $ (3,245)
Investment Earnings (Loss) 192 192 (540) (732)
Total Revenues 28,184 28,184 24,207 (3,977)

EXPENDITURES
Current:

Public Safety 35,000 35,000 - 35,000
Total Expenditures 35,000 35,000 - 35,000
NET CHANGE IN FUND BALANCE (6,816) (6,816) 24,207 31,023 Fund Balance - Beginning of Year 19,218 19,218 19,218 - FUND BALANCE - END OF YEAR $ 12,402 $ 12,402 $ 43,425 $ 31,023

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(143)

INTERNAL SERVICE FUNDS

(144)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO

INTERNAL SERVICE FUNDS DESCRIPTIONS
JUNE 30, 2022
(145)
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis.

Fleet Management Fund – This fund is used to account for the acquisition, rental, maintenance and operation of the City’s fleet of vehicles and the rolling stock.

Benefits and Insurance Fund – This fund is used to account for the accumulation and allocation of costs associated with providing certain employee benefits and City-wide insurance coverage.

Information Management Fund – This fund is used to account for the accumulation and allocation of costs associated with electronic data processing.

CITY OF NORCO

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2022
(146)
Fleet Benefits and Information
Management Insurance Management Total
ASSETS
Current Assets:

Cash and Investments 4,115,029 $ 1,320,433 $ 1,010,847 $ 6,446,309 $ Receivables, Net:

Accounts 5,620 - 35,980 41,600
Interest 6,342 1,746 1,582 9,670
Prepaids - - 30,490 30,490
Restricted Cash and Investments - 57,964 - 57,964
Total Current Assets 4,126,991 1,380,143 1,078,899 6,586,033 Noncurrent Assets:

Capital Assets:

Vehicles and Equipment 3,384,586 - 146,143 3,530,729
Less Accumulated Depreciation (2,168,468) - (102,819) (2,271,287) Right-to-Use Lease Equipment - - 207,453 207,453
Less: Accumulated Depreciation - - (41,491) (41,491)
Intangibles - - 436,609 436,609
Less Accumulated Amortization - - (427,794) (427,794)
Total Noncurrent Assets/
Capital Assets 1,216,118 - 218,101 1,434,219
Total Assets 5,343,109 1,380,143 1,297,000 8,020,252

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued
Liabilities 119,835 167,342 31,714 318,891
Compensated Absences - 203,742 - 203,742
Lease Payable - - 39,671 39,671
Claims and Judgements - 218,875 - 218,875
Total Current Liabilities 119,835 589,959 71,385 781,179 Noncurrent Liabilities:

Compensated Absences - 611,222 - 611,222
Lease Payable - - 128,976 128,976
Claims and Judgements - 930,466 - 930,466
Total Noncurrent Liabilities - 1,541,688 128,976 1,670,664 Total Liabilities 119,835 2,131,647 200,361 2,451,843

NET POSITION
Net Investment in Capital Assets 1,216,118 - 218,101 1,434,219 Unrestricted 4,007,156 (751,504) 878,538 4,134,190
Total Net Position $ 5,223,274 $ (751,504) $ 1,096,639 $ 5,568,409

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
(147)
Fleet Benefits and Information
Management Insurance Management Total

OPERATING REVENUES
Sales and Charges for Services 1,011,827 $ 618,580 $ 631,700 $ 2,262,107 $ Miscellaneous - - 19,942 19,942
Total Operating Revenues 1,011,827 618,580 651,642 2,282,049

OPERATING EXPENSES
General and Administrative 353,621 1,605,741 507,450 2,466,812 Amortization - - 7,544 7,544
Depreciation 219,762 - 54,989 274,751
Total Operating Expenses 573,383 1,605,741 569,983 2,749,107 OPERATING INCOME (LOSS) (987,161) 438,444 81,659 (467,058)

NONOPERATING REVENUES
Investment Earnings (51,285) (24,688) (12,768) (88,741) Gain on Disposal of Assets - - 665 665
Total Nonoperating Revenues (51,285) (24,688) (12,103) (88,076) CHANGE IN NET POSITION (1,011,849) 387,159 69,556 (555,134) Net Position - Beginning of Year 260,345 4,836,115 1,027,083 6,123,543 NET POSITION - END OF YEAR $ (751,504) 5,223,274 $ 1,096,639 $ 5,568,409 $

CITY OF NORCO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
(148)
Fleet Benefits and Information
Management Insurance Management Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash Received from Interfund
Services Provided 1,011,827 $ 618,580 $ 628,542 $ 2,258,949 $ Cash Payments to Suppliers (259,044) (720,138) (328,034) (1,307,216) Cash Payments to Employees
for Services - (109,318) (191,999) (301,317)
Net Cash Provided (Used) by
Operating Activities 752,783 (210,876) 108,509 650,416

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of
Capital Assets (323,088) - (14,874) (337,962)
Proceeds from Disposal of
Capital Assets - - 665 665
Principal Payments - Lease - - (38,806) (38,806)
Net Cash Provided (Used) by
Capital and Related Financing
Activities (323,088) - (53,015) (376,103)

CASH FLOWS FROM INVESTING ACTIVITIES
Change in Fair Value (65,017) (27,809) (16,168) (108,994) Interest Income 10,215 2,524 2,541 15,280
Net Cash Used by
Investing Activities (54,802) (25,285) (13,627) (93,714)

NET INCREASE (DECREASE) IN CASH AND
INVESTMENTS (236,161) 374,893 41,867 180,599
Cash and Investments - Beginning of Year 3,740,136 1,556,594 968,980 6,265,710 CASH AND INVESTMENTS - END OF YEAR $ 4,115,029 $ 1,320,433 $ 1,010,847 $ 6,446,309

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES
Operating Income (Loss) 438,444 $ (987,161) $ 81,659 $ (467,058) $ Adjustments to Reconcile Operating
Income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Amortization - - 7,544 7,544
Depreciation 219,762 - 54,989 274,751
Unrealized loss on investments
(Increase) Decrease in Assets:

Accounts Receivable - - (23,100) (23,100)
Prepaids - - (1,059) (1,059)
Increase (Decrease) in Liabilities:

Accounts Payable and Accrued
Liabilities 94,577 142,766 (11,524) 225,819
Compensated Absences - 20,077 - 20,077
Claims and Judgements - 613,442 - 613,442
Net Cash Provided (Used) by
Operating Activities $ 752,783 $ (210,876) $ 108,509 $ 650,416

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FIDUCIARY FUNDS

(150)

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CITY OF NORCO

CUSTODIAL FUNDS DESCRIPTIONS
JUNE 30, 2022
(151)
General Trust – To account for various deposits, etc. with the City from different groups.

Waste Management – To account for collections from citizens for solid waste by the City on behalf of Waste Management, Inc. and payments made by the City to Waste Management, Inc.

Community Facilities District 97-1 – To account for receipts of assessments from Norco Hills residences and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2000 for the construction of various infrastructure assets.

Community Facilities District 2001-1 – To account for receipts of assessments from Norco Ridge Ranch homes and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2002 for the acquisition of certain public facilities and the payment of certain environmental fees.

Community Facilities District 2002-1 – To account for receipts of assessments from KB Homes residences and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2003 for the construction of trail improvements and a traffic signal at 6th Street and California.

CITY OF NORCO

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2022
(152)
ASSETS
Cash and Investments
Cash and Investments with
Fiscal Agents
Receivables, Net:

Accounts
Interest
Due from Other Governments
Total Assets

LIABILITIES
Accounts payable
Deposits Payable
Due to Others
Total Liabilities

NET POSITION
Restricted for:

Waste Management
Debt service for special
assessment debt
Total Net Position
Community
General Waste Facilities
Trust Management District 97-1
$ - 1,102,795 $ $ 578,502
- - 211,105
69 646,250 -
- - 791
156 - 11,278
$ 1,103,020 $ 646,250 $ 801,676
$ 6,607 $ 555,730 $ 4,104
1,096,413 69,697 -
- 20,426 -
1,103,020 645,853 4,104
- 397 -
- - 797,572
$ - $ 397 $ 797,572

CITY OF NORCO

COMBINING STATEMENT OF FIDUCIARY NET POSITION (CONTINUED)

ALL CUSTODIAL FUNDS
JUNE 30, 2022
(153)
ASSETS
Cash and Investments
Cash and Investments with
Fiscal Agents
Receivables, Net:

Accounts
Interest
Due from Other Governments
Total Assets

LIABILITIES
Accounts payable
Deposits Payable
Due to Others
Total Liabilities

NET POSITION
Restricted for:

Waste Management
Debt service for special
assessment debt
Total Net Position
Community Community Total
Facilities Facilities Custodial
District 2001-1 District 2002-1 Funds
$ 174,342 2,376,473 $ 4,232,112 $
- 1,416,051 1,627,156
- 646,319 -
3,089 239 4,119
59,751 7,681 78,866
$ 3,855,364 $ 182,262 $ 6,588,572
$ 2,229 $ 2,199 $ 570,869
- 1,166,110 -
- - 20,426
2,229 2,199 1,757,405
- - 397
3,853,135 180,063 4,830,770
$ 3,853,135 $ 180,063 $ 4,831,167

CITY OF NORCO

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
(154)

ADDITIONS
Collections for Others
Investment Earnings (Loss)
Total Additions

DEDUCTIONS
Payment for collections to
Waste Management
Administration Expenses
Payments on Special Assessment Debt:

Principal
Interest
Total Deductions

CHANGE IN NET POSITION
Net Position - Beginning of the Year

NET POSITION - END OF THE YEAR
Community
General Waste Facilities
Trust Management District 97-1
$ - $ 6,619,287 $ 476,969
- - (16,812)
- 6,619,287 460,157
- 6,618,890 -
- - 43,994
- - 315,000
- - 109,731
- 6,618,890 468,725
- 397 (8,568)
- - 806,140
$ - $ 397 $ 797,572

CITY OF NORCO

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION (CONTINUED)

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2022
(155)

ADDITIONS
Collections for Others
Investment Earnings (Loss)
Total Additions

DEDUCTIONS
Payment for collections to
Waste Management
Administration Expenses
Payments on Special Assessment Debt:

Principal
Interest
Total Deductions

CHANGE IN NET POSITION
Net Position - Beginning of the Year

NET POSITION - END OF THE YEAR
Community Community Total
Facilities Facilities Custodial
District 2001-1 District 2002-1 Funds
$ 133,968 2,409,009 $ 9,639,233 $
(1,936) (113,370) (132,118)
2,295,639 132,032 9,507,115
- 6,618,890 -
83,928 21,629 149,551
1,080,000 68,638 1,463,638
1,142,350 35,773 1,287,854
2,306,278 126,040 9,519,933
(10,639) 5,992 (12,818)
3,863,774 174,071 4,843,985
$ 3,853,135 $ 180,063 $ 4,831,167

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CITY OF NORCO, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2022
(159)
This part of the City of Norco’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Pages
Financial Trends 142
These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 152
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity 156
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 164
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 168
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

CITY OF NORCO

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(160)
2013 2014 2015 2016 2017
Governmental activities
Invested in capital assets, net of related debt 173,830,963 $ 175,021,256 $ 173,699,189 $ 176,622,650 $ 174,442,174 $ Restricted 11,708,483 14,063,524 30,816,790 30,724,769 31,091,357 Unrestricted 3,873,573 4,748,301 248,067 2,515,519 3,194,792 Total governmental activities net position $ 193,833,081 189,413,019 $ 204,764,046 $ 209,862,938 $ 208,728,323 $ Business-type activities
Invested in capital assets, net of related debt 46,023,517 $ 32,343,900 $ 34,845,725 $ 32,641,357 $ 31,655,305 $ Restricted 1,505,296 1,439,385 1,450,167 1,503,178 1,712,000 Unrestricted (1,206,137) 13,165,677 14,549,779 20,575,188 24,802,130 Total business-type activities net position $ 46,948,962 46,322,676 $ 50,845,671 $ 54,719,723 $ 58,169,435 $ Primary Government
Invested in capital assets, net of related debt 219,854,480 $ 207,365,156 $ 208,544,914 $ 209,264,007 $ 206,097,479 $ Restricted 13,213,779 15,502,909 32,266,957 32,227,947 32,803,357 Unrestricted 2,667,436 17,913,978 14,797,846 23,090,707 27,996,922 Total primary government net position $ 240,782,043 235,735,695 $ 255,609,717 $ 264,582,661 $ 266,897,758 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(161)
(Continued)
2018 2019 2020 2021 2022
$ 176,345,781 174,890,993 $ 177,143,786 $ 176,797,895 $ 182,078,689 $ 29,152,904 30,074,012 22,301,118 21,842,280 25,833,667
(1,296,563) 3,061,188 13,797,616 20,048,961 27,741,235
$ 203,668,442 $ 208,559,873 $ 213,242,520 $ 218,689,136 $ 235,653,591 $ 32,636,095 $ 38,385,618 $ 32,451,604 $ 33,381,504 $ 36,596,095 1,476,331 2,483,441 137,489 26,475 1,830,956
22,717,620 20,722,463 31,586,101 34,373,885 33,870,562
$ 56,830,046 $ 61,591,522 $ 64,175,194 $ 67,781,864 $ 72,297,613 $ 207,527,088 $ 214,731,399 $ 209,595,390 $ 210,179,399 $ 218,674,784 31,550,343 31,636,345 22,438,607 21,868,755 27,664,623
21,421,057 23,783,651 45,383,717 54,422,846 61,611,797
$ 260,498,488 $ 270,151,395 $ 277,417,714 $ 286,471,000 $ 307,951,204 Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(162)
2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government 3,186,491 $ 3,804,607 $ 3,970,788 $ 4,546,424 $ 5,060,194 $ Public safety 8,523,623 8,508,710 8,943,161 9,570,143 9,698,034 Public works 3,954,013 3,628,672 3,769,407 4,655,515 4,631,223 Community development 615,851 800,996 756,389 1,276,946 1,487,998 Culture & leisure 2,390,293 2,252,157 2,252,339 2,449,518 2,640,415 Interest in long-term debt - - - - -
Loss on sale of land held for resale - - - - 26,630
Total governmental activities expenses 18,670,271 18,995,142 19,692,084 22,498,546 23,544,494 Business-type activities:

Water 9,259,377 9,592,836 9,138,304 9,673,588 9,209,912 Sewer 4,858,832 5,131,713 5,700,595 6,315,558 5,915,756 Total business-type activities expenses 14,118,209 14,724,549 14,838,899 15,989,146 15,125,668 Total primary government expenses $ 32,788,480 $ 33,719,691 $ 34,530,983 $ 38,487,692 $ 38,670,162 Program Revenues
Governmental activities:

Charges for services:

General government $ 2,244,812 $ 2,121,089 $ 1,989,162 $ 2,069,324 $ 2,127,348 Public safety 766,447 766,645 812,963 855,169 891,368
Public works 806,158 855,941 878,190 938,429 927,983
Community development 597,494 641,982 758,593 940,048 1,146,162 Culture & leisure 725,272 772,172 734,141 756,341 721,995 Operating grants and contributions 1,657,693 1,866,913 1,832,271 1,596,119 1,438,753 Capital grants and contributions 2,504,159 5,068,039 1,402,527 5,064,800 1,417,227 Total governmental activities program revenues 9,302,035 12,092,781 8,407,847 12,220,230 8,670,836 Business-type activities:

Charges for services:

Water 9,915,098 9,808,472 8,960,772 8,353,699 11,102,037 Sewer 5,466,709 5,546,893 5,857,823 6,296,636 7,065,681 Operating grants and contributions 28,481 - - - -
Capital grants and contributions 1,264,389 825,000 - 4,350,067 - Total business-type activities program revenues 16,674,677 16,180,365 14,818,595 19,000,402 18,167,718 Total program government program revenues $ 25,976,712 $ 28,273,146 $ 23,226,442 $ 31,220,632 $ 26,838,554 Net(Expense)/Revenue
Governmental activities $ (9,368,236) $ (6,902,361) $ (11,284,237) $ (10,278,316) $ (14,873,658) Business-type activities 2,556,468 1,455,816 (20,304) 3,011,256 3,042,050 $ (6,811,768) $ (5,446,545) $ (11,304,541) $ (7,267,060) $ (11,831,608) Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(163)
(Continued)
2018 2019 2020 2021 2022
$ 5,260,115 5,164,710 $ 5,752,506 $ 6,590,791 $ 9,554,751 $ 10,850,324 10,585,952 11,653,805 11,842,671 10,911,658
4,934,050 5,669,159 5,934,482 5,167,004 8,574,600
1,624,009 1,602,171 1,546,406 2,110,070 1,959,442
2,573,716 2,726,047 3,236,433 3,000,679 2,612,010
- - - - -
- - - - -
24,882,437 26,107,816 28,123,632 28,711,215 33,612,461
11,075,924 10,688,780 12,699,537 11,325,678 12,520,073
6,786,370 7,222,648 7,134,484 6,397,952 7,866,861
17,862,294 17,911,428 19,834,021 17,723,630 20,386,934
$ 42,744,731 $ 44,019,244 $ 47,957,653 $ 46,434,845 $ 53,999,395 $ 2,302,669 $ 2,396,727 $ 2,417,671 $ 2,180,587 $ 2,102,176 927,629 1,011,589 1,005,055 1,088,710 1,130,231
929,602 1,231,104 1,148,038 933,850 983,499
1,094,604 1,309,354 1,217,777 1,520,456 3,003,618
756,965 759,020 529,898 230,472 1,294,904
1,804,315 2,251,013 2,113,841 2,407,654 3,124,093
2,040,545 4,457,879 2,007,911 147,472 6,297,305
9,856,329 13,416,686 10,440,191 8,509,201 17,935,826
12,144,054 12,974,480 13,282,918 13,660,048 13,746,965
7,491,015 8,824,907 8,324,845 7,469,592 9,769,632
- - - - -
- - 122,408 12,599 1,931,129
19,635,069 21,799,387 21,730,171 21,142,239 25,447,726
$ 29,491,398 $ 35,216,073 $ 32,170,362 $ 29,651,440 $ 43,383,552 $ (15,026,108) $ (12,691,130) $ (17,683,441) $ (20,202,014) $ (15,676,635) 1,772,775 3,887,959 1,896,150 3,418,609 5,060,792
$ (13,253,333) $ (8,803,171) $ (15,787,291) $ (16,783,405) $ (10,615,843) Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(164)
General Revenues and Other Changes in
Net Position
Governmental activities: 2013 2014 2015 2016 2017
Taxes:

Property tax, levied for general purpose 1,898,467 $ 1,588,228 $ 1,739,484 $ 1,656,163 $ 4,062,986 $ Transient occupancy tax 257,277 295,641 427,260 519,548 561,766 Franchise tax 1,021,833 1,056,967 1,221,453 1,334,588 1,400,636 Sales tax in lieu 1,157,793 1,381,708 1,409,297 1,213,148 - Motor vehicle in lieu tax 1,974,292 2,040,184 2,138,532 2,258,119 12,124 Intergovernmental - Sales tax 3,942,554 4,308,901 4,603,115 5,613,795 6,837,653 Public service taxes 320,569 331,386 361,320 360,712 363,347 Gain/(Loss) on sale of capital assets - - 190 110 -
Unrestricted investment earnings (loss) 22,418 30,844 35,902 69,619 100,009 Contributions from other agency - - 53,809 - -
Other - - - - -
Intergovernmental 219,175 16,688 140,930 124,047 125,420 Special Item - Transfer of Assets to Housing
Successor Agency - - 17,767,484 - -
Special Item - Sale of Donated Item - - 3,086,508 - -
Transfers 289,023 271,876 276,652 276,568 275,102
Total governmental activities 11,103,401 11,322,423 33,261,936 13,426,417 13,739,043 Business-type activities:

Unrestricted investment earnings (loss) 34,537 74,856 148,249 619,897 682,764 Special Item - Sale of Donated Item - - 6,778,143 - -
Transfers (289,023) (271,876) (276,652) (276,568) (275,102) Total business-type activities (254,486) (197,020) 6,649,740 343,329 407,662 Total primary government $ 10,848,915 $ 11,125,403 $ 39,911,676 $ 13,769,746 $ 14,146,705 Change in Net Position
Governmental activities $ 1,735,165 $ 4,420,062 $ 21,977,699 $ 3,148,102 $ (1,134,615) Business-type activities 2,301,982 1,258,796 6,629,436 3,354,585 3,449,712 Total primary government $ 4,037,147 $ 5,678,858 $ 28,607,135 $ 6,502,687 $ 2,315,097 Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(165)
(Continued)
2018 2019 2020 2021 2022
$ 4,703,051 4,364,143 $ 5,071,222 $ 5,157,673 $ 5,408,797 $ 609,036 586,369 615,989 741,248 1,057,978
1,561,383 1,674,490 1,751,200 1,863,816 2,025,163
- - - - -
14,246 12,990 21,419 20,216 31,265
7,188,921 9,359,520 13,173,182 16,460,577 20,376,348
401,258 399,734 413,789 518,358 604,599
- - - - -
252,510 445,846 564,198 38,841 (553,147)
- - - -
- - - -
125,937 119,690 496,885 589,697 3,003,453
- - - - -
- - - - -
258,204 258,204 258,204 258,204 266,905
14,752,971 17,582,561 22,366,088 25,648,630 32,221,361
797,610 1,131,721 945,726 162,751 (115,150)
- - - - -
(258,204) (258,204) (258,204) (258,204) (266,905)
539,406 873,517 687,522 (95,453) (382,055)
$ 15,292,377 $ 18,456,078 $ 23,053,610 $ 25,553,177 $ 31,839,306 $ (273,137) $ 4,891,431 $ 6,689,453 $ 5,446,616 $ 16,266,446 2,312,181 4,761,476 5,748,314 3,323,156 4,957,017
$ 2,039,044 $ 9,652,907 $ 12,437,767 $ 8,769,772 $ 21,223,463 Fiscal Year

CITY OF NORCO

FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(166)
2013 2014 2015 2016 2017
General Fund
Nonspendable 5,444 $ - $ $ 2,883,058 $ 3,746,499 $ 3,634,919 Committed 3,560,200 3,923,015 1,725,254 229,659 528,820 Assigned 685,279 - - - -
Unassigned 771,477 2,238,434 7,841,852 10,083,161 11,250,211 Total general fund 5,022,400 6,161,449 12,450,164 14,059,319 15,413,950 Housing Successor Agency
Restricted - - 17,799,129 17,648,086 17,461,190
Total housing successor agency - - 17,799,129 17,648,086 17,461,190 All Other Governmental Funds
Nonspendable: 3,750 3,750 - 6,000 -
Restricted:

Public Safety - - - - -
Streets and Highways 3,315,085 3,902,507 4,886,148 4,137,649 4,009,389 Community and Economic
Development 79,788 111,247 95,441 138,391 147,822
Culture and Leisure - - - - -
Debt service - - - - -
Committed:

Emergencies 378,013 498,231 - - -
Assigned:

General Government 1,009,477 1,510,554 - - -
Public Safety 618,057 562,135 591,096 608,091 661,499
Streets and Highways 1,949,488 2,939,221 3,041,586 3,579,381 3,875,674 Culture and Leisure 663,896 1,166,786 767,184 632,122 622,612 Unassigned:

Public Safety - - - - (1,314)
Streets and Highways (33,968) (15,004) (357,529) (17,873) (26,054) Community and Economic
Development - - - - -
Total all other governmental funds 7,983,586 10,679,427 9,023,926 9,083,761 9,289,628 Total all governmental funds $ 13,005,986 $ 16,840,876 $ 39,273,219 $ 40,791,166 $ 42,164,768 Source: City's financial statements
Fiscal Year

CITY OF NORCO

FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(167)
(Continued)
2018 2019 2020 2021 2022
$ 2,591,357 3,404,066 $ 2,459,280 $ 2,325,075 $ 2,183,784 $ 133,326 671,779 124,578 115,657 2,111,067
- 7,527,137 4,614,689 8,050,460 12,607,576
11,718,584 9,877,022 17,455,468 21,824,732 27,463,836
15,794,429 20,128,842 24,654,015 32,315,924 44,366,263
17,303,845 17,172,128 17,060,012 16,778,372 16,591,918
17,303,845 17,172,128 17,060,012 16,778,372 16,591,918
- - 2,500 2,500 3,000
- 757,999 730,431 693,301 811,770
2,818,550 4,640,824 3,845,515 - 4,473,640
133,742 142,050 683,284 779,798 243,756
- 823,111 216,641 38,143 951,925
- - - - -
- - - - -
- - - - -
680,053 - - - -
3,813,411 - - - -
757,526 - - - -
- - - - -
(47,420) (222,280) (35,528) (38,811) (756)
(55,288) (5,428) (374,396) - -
8,100,574 6,136,276 5,068,447 1,474,931 6,483,335
$ 41,198,848 $ 43,437,246 $ 46,782,474 $ 50,569,227 $ 67,441,516 Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(168)
2013 2014 2015 2016 2017
Revenues
Taxes 11,174,643 $ 11,606,683 $ 12,536,053 $ 13,599,492 $ 13,923,344 $ Assessments 738,771 769,133 801,315 776,231 736,112
Licenses and permits 528,236 518,126 556,985 670,979 789,382 Fines and forfeitures 363,652 408,066 439,590 430,596 346,048 Development fees 158,983 23,571 270,977 250,418 846,664 Intergovernmental 3,590,364 6,185,123 1,910,287 2,238,833 1,262,117 Charges for services 1,620,822 2,889,825 2,641,613 2,962,066 3,098,643 Investment earnings (loss) and lease income 554,081 526,069 539,448 680,581 800,900 Reimbursements 79,114 115,286 13,281 127,277 -
Other 1,300,567 51,368 196,275 153,021 220,160
Total revenues 20,109,233 23,093,250 19,905,824 21,889,494 22,023,370 Expenditures
Current:

General government 3,442,691 3,719,499 3,828,322 4,396,554 4,839,346 Public safety 8,389,746 8,314,657 8,807,419 9,339,313 9,559,983 Public works 6,244,862 4,305,486 2,628,850 4,438,203 3,071,423 Community and economic development 582,154 830,309 790,798 1,251,035 1,408,931 Culture and leisure 2,107,965 2,217,201 2,548,736 1,871,207 2,018,557 Capital outlay - - - 805,000 26,630
Oher - - - - -
Total expenditures 20,767,418 19,387,152 18,604,125 22,101,312 20,924,870 Excess(deficiency) of revenues
over(under) expenditures (658,185) 3,706,098 1,301,699 (211,818) 1,098,500 Other Financing Sources (Uses)
Proceeds from the sale of property - - - - -
Transfers in 854,830 871,061 355,571 380,571 479,281
Transfers out (764,740) (742,269) (78,919) (104,003) (204,179) Bond/Loan Proceeds - - - - -
Total other financing sources (uses) 90,090 128,792 276,652 276,568 275,102 Special Item
Transfer of assets to successor housing agency - - 17,767,484 - - Sale of donated assets - - 3,086,508 - -
- - 20,853,992 - -
Net change in fund balances $ (568,095) $ 3,834,890 $ 4,664,859 $ 64,750 $ 1,373,602 Debt service as a percentage
of noncapital expenditures 0.00% 0.00% 0.00% 0.00% 0.00% Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(169)
(Continued)
2018 2019 2020 2021 2022
$ 17,592,048 14,861,023 $ 21,847,687 $ 25,769,374 $ 30,612,573 $ 698,499 703,369 751,608 779,905 788,192
750,245 946,402 795,991 1,279,186 2,608,829
499,446 497,029 513,918 727,315 593,357
178,282 2,014,321 493,303 62,717 5,657,076
2,883,189 3,132,740 3,971,705 2,849,251 5,068,404
2,976,824 3,311,339 3,074,413 2,771,734 4,003,280
1,042,306 1,429,531 1,354,353 409,776 (309,021)
71,432 10,504 196,165 11,263 4,956
263,294 362,391 203,238 123,299 685,096
24,229,410 29,994,804 33,202,381 34,783,820 49,712,742
5,155,987 5,464,926 6,052,709 6,593,217 10,666,317
10,526,624 11,037,921 11,706,532 11,440,255 10,097,288
5,442,522 7,957,631 6,466,151 4,248,556 6,665,225
1,633,480 1,641,538 1,570,339 2,072,422 1,858,797
2,649,142 2,431,862 2,500,633 2,435,751 3,247,813
45,779 - 1,755,564 1,454,185 5,193,726
- - - - 3,700
25,453,534 28,533,878 30,051,928 28,244,386 37,732,866
(1,224,124) 1,460,926 3,150,453 6,539,434 11,979,876
- - 10,600 802,585 -
890,498 432,466 377,520 258,204 286,283
(632,294) (174,262) (79,316) - (19,378)
- 519,268 - - -
258,204 777,472 308,804 1,060,789 266,905
- - - - -
- - - - -
- - - - -
$ (965,920) $ 2,238,398 $ 3,459,257 $ 7,600,223 $ 12,246,781

0.00% 0.00% 0.00% 0.00% 0.00%
Fiscal Year

CITY OF NORCO

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS)
(170)
Fiscal Total
Year Total Taxable Direct
Ended Secured Unsecured Assessed Tax
June 30, Property Property Value Rate
2012 2,450,112 $ 94,059 2,544,171 1.00000%
2013 2,461,226 69,942 2,531,168 1.00000%
2014 2,552,367 67,135 2,619,502 1.00000%
2015 2,683,938 63,072 2,747,010 1.00000%
2016 2,837,928 63,889 2,901,817 1.00000%
2017 2,944,477 70,594 3,015,071 1.00000%
2018 3,077,573 72,189 3,149,762 1.00000%
2019 3,267,723 81,622 3,349,345 1.00000%
2020 3,447,467 78,050 3,525,517 1.00000%
2021 3,619,573 83,988 3,703,561 1.00000%
Source: Riverside County Auditor Controller

CITY OF NORCO

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(RATE PER $100 OF ASSESSED VALUE)
(171)
City Direct Rates Overlapping Rates
Corona/Norco
Unified Metro
Fiscal Basic Total School Water
Year Rate Direct District District
2013 1.00000% 1.00000% 0.06543% 0.00350%
2014 1.00000% 1.00000% 0.06844% 0.00350%
2015 1.00000% 1.00000% 0.06473% 0.00350%
2016 1.00000% 1.00000% 0.08540% 0.00350%
2017 1.00000% 1.00000% 0.09416% 0.00350%
2018 1.00000% 1.00000% 0.08313% 0.00350%
2019 1.00000% 1.00000% 0.09034% 0.00350%
2020 1.00000% 1.00000% 0.09387% 0.00350%
2021 1.00000% 1.00000% 0.09818% 0.00350%
2022 1.00000% 1.00000% 0.09914% 0.00350%
Source: Riverside County Office of Auditor-Controller

CITY OF NORCO

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(172)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
Saddle Ranch APG LLC $ 1 53,228,269 1.36%
CRPF IV Elwood 40,125,858 2 1.02%
LDK Norco 36,175,817 3 0.92%
Norco Corona Associates 20,554,826 4 0.52% 16,388,623 1 0.63% Life Storage LP 18,421,184 5 0.47%
Target Corporation 16,929,532 6 0.43%
Yihua International Investment 16,893,090 7 0.43% 14,557,976 3 0.56% 620 Parkridge APG 14,725,000 8 0.38%
CRP LDF Saddle Ranch II LLC 14,133,258 9 0.37%
Balboa Management Group LLC 13,604,920 10 0.35%
H/H Properties 13,634,087 4 0.53%
Grayburn Properties Inc 11,511,544 5 0.45%
Dayton Hudson Corp 14,752,239 2 0.57%
CACERF Norco 11,292,543 6 0.44%
Dennis D Jacobsen Family Holding 9,610,960 7 0.37%
ASP Realty Inc 9,430,774 8 0.37%
140 Hidden Valley Parkway 8,815,000 9 0.33%
Rexco Norco 8,443,466 10 0.32%
$ 244,791,754 6.25% 118,437,212 $ 4.58%
Source: HDL 20-21 Property data - Preliminary Property Tax Reports Top ten property taxpayers
2022 2013

CITY OF NORCO

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(173)
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2013 1,138,081 1,070,527 94.1% 61,555 1,132,082 99.5%
2014 1,178,361 1,127,309 95.7% 51,578 1,178,887 100.0%
2015 1,237,395 1,192,560 96.4% 46,470 1,239,030 100.1%
2016 1,290,343 1,245,895 96.6% 37,237 1,283,132 99.4%
2017 1,332,220 1,298,564 97.5% 34,062 1,332,626 100.0%
2018 1,378,552 1,346,180 97.7% 32,572 1,378,752 100.0%
2019 1,455,419 1,426,216 98.0% 42,058 1,468,274 100.9%
2020 1,539,793 1,490,634 96.8% 35,406 1,526,040 99.1%
2021 1,566,020 1,528,417 97.6% 42,088 1,570,505 100.3%
2022 1,626,690 1,593,434 98.0% 58,253 1,651,687 101.5%
Source: Riverside County Office of Auditor-Controller
Note: The amounts collected in the subsequent years column reflects a combination of collections from multiple prior fiscal years and cannot be separated readily for the purpose of this schedule. Also, the taxes collected during the different fiscal years includes supplemental taxes that may not have been picked up in the original levy. For these reasons, the collection percentage for the various fiscal years is exceeding the amount levied by more than 100%.

CITY OF NORCO

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(174)
Business-Type Activities
Term Term Total
Fiscal Loan Loan Primary
Year Leases Payable Bonds Leases Payable Government
2013 20 $ 379 36,138 - 1,055 37,213
2014 8 291 35,485 - 839 36,332
2015 - 199 34,801 - 986 35,787
2016 - 102 34,093 - 3,533 37,626
2017 - - 33,354 - 5,585 38,939
2018 - - 32,585 - 6,542 39,127
2019 - - 31,777 - 6,446 38,223
2020 - - 44,239 - 6,175 50,414
2021 - - 42,901 - 5,884 48,785
2022 169 - 41,258 28 5,588 47,043
Note: Details regarding the City's outstanding debt can be found in the notes to the City's financial statements. **data not available
1 U.S. Department of Commerce, Bureau of Economic Analysis for Riverside County Governmental Activities

CITY OF NORCO

RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(175)
Percentage Percentage
of Personal of Assessed Per
Capita Valuation Capita1
5% 1.47% 1,375
5% 1.39% 1,367
5% 1.30% 1,322
10% 1.30% 1,399
** 1.29% 1,435
** 1.24% 1,459
** 1.14% 1,436
** 1.43% 1,829
** 1.32% 1,834
** 1.20% 1,804

CITY OF NORCO

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(176)
Net Percentage of
General Debt General Actual Taxable
Fiscal Obligation Service Bonded Value of Per
Year Bonds (1) Reserve Debt Property Capita(2)
2013 $ - $ - $ - 0.00% $ -
2014 - - - 0.00% -
2015 - - - 0.00% -
2016 - - - 0.00% -
2017 - - - 0.00% -
2018 - - - 0.00% -
2019 - - - 0.00% -
2020 - - - 0.00% -
2021 - - - 0.00% -
2022 - - - 0.00% -
(1) The City has no general obligation bonded debt for last ten fiscal years. (2) See population data in schedule of "Demographic and Economics Statistics".

Note: Details regarding the City's outstanding debt can be found in the notes to the City's financial statements.

CITY OF NORCO

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2022
(177)
2021-22 Assessed Valuation: $ 3,915,032,632
Direct and Overlapping Tax and Assessment Debt: % Applicable (1) Debt Metropolitan Water District 0.115 % $ 23,201
Riverside City Community College District 3.077 9,245,067 Alvord Unified School District 0.002 3,944
Corona-Norco Unified School District 9.256 46,162,382
City of Norco 100.000 -
City of Norco Community Facilities District No. 97-1 100.000 3,315,000 City of Norco Community Facilities District No. 2001-1 100.000 22,415,000 City of Norco Community Facilities District No. 2002-1 100.000 885,250 Total Direct and Overlapping Tax and Assessment Debt $ 82,049,844 Overlapping General Fund Debt:

Riverside County General Fund Obligations 1.183 % $ 8,520,183 Riverside County Pension Obligations 1.183 9,701,310
Western Municipal Water District Certificates of Participation 3.644 199,012 Corona-Norco Unified School District Certificates of Participation 9.256 2,006,439 Total Overlapping General Fund Debt $ 20,426,944
Overlapping Tax Increment Debt (Successor Agencies): 0.076 - 99.984 % $ 61,255,048 Total Direct Debt $ -
Total Overlapping Debt $ 163,731,836
Combined Total Debt $ 163,731,836 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2021-22 Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 2.10% Total Direct Debt 0.00%
Combined Total Debt 4.18%
Ratios to Redevelopment Incremental Valuation ($2,263,202,428):

Total Overlapping Tax Increment Debt 2.71%
Source: Avenu Insights & Analytics

CITY OF NORCO

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(178)
2013 2014 2015 2016
Debt limit $ 392,925 $ 412,052 $ 412,052 $ 452,261
Total net debt applicable to limit - - - -
Legal debt margin $ 392,925 $ 412,052 $ 412,052 $ 452,261 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00%
Source: City Finance Department
(1) The City has no general obligation bonded debt for last ten fiscal years.

Fiscal Year
(1)

CITY OF NORCO

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(179)
2017 2018 2019 2020 2021 2022
$ 472,464 452,261 $ 502,402 $ 528,828 $ 555,534 $ 587,255 $ - - - - - -
$ 452,261 $ 472,464 $ 502,402 $ 528,828 $ 555,534 $ 587,255

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Assessed value $ 3,915,033
Debt limit (15% of assessed value) 587,255
Debt applicable to limit:

General obligation bonds -
Less: Amount set aside for
repayment of general obligation debt -
Total net debt applicable to limit -
Legal debt margin $ 587,255
Fiscal Year

CITY OF NORCO

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(180)
Utility Less: Net
Fiscal Service Operating Available
Year Charges Expenses(1) Revenue Principal Interest Coverage 2013 $ 15,444 $ 10,093 $ 5,351 $ 645 $ 1,971 2.05
2014 15,355 10,492 4,863 670 1,945 1.86
2015 14,819 10,459 4,360 700 1,917 1.67
2016 14,650 11,474 3,176 725 1,889 1.21
2017 18,168 10,389 7,779 755 1,858 2.98
2018 19,635 12,974 6,661 785 1,822 2.56
2019 21,799 12,770 9,029 825 1,782 3.46
2020 21,172 13,996 7,176 870 1,740 2.75
2021 21,130 12,957 8,173 1,010 1,605 3.13
2022 23,517 15,633 7,884 1,045 1,569 3.02
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Operating expenses do not include depreciation, or amortization expenses. (2) The City is not liable for Special Assessment District or Community Facility District defaults; collections and remittances are accounted in an agency fund.
(3) The Bonds are limited obligation of the Successor Agency. (4) The Dept. of Finance approves the Recognized Obligation Payment Schedule, and the city receives payments from County of Riverside beginning fiscal year 2012.

Utility Revenue Bonds
Debt Service

CITY OF NORCO

PLEDGED-REVENUE COVERAGE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(181)
Special Redevelopment
Assessment Property
Collections Principal Interest Coverage Tax Principal Interest Coverage $ 3,217 $ 2,131 930 $ 1.05 7,592 (4) 2,240 $ 4,927$ 1.06 3,161 1,386 2,011 0.93 7,001 (4) 2,335 4,823 0.98
3,307 1,134 1,977 1.06 6,781 (4) 2,205 3,537 1.18
3,370 1,213 1,932 1.07 7,251 (4) 2,535 4,222 1.07
3,220 1,319 1,882 1.01 7,243 (4) 2,915 4,130 1.03
3,344 1,419 1,371 1.20 6,999 (4) 2,880 3,701 1.06
3,014 2,345 1,447 0.79 6,770 (4) 2,950 3,169 1.11
2,883 1,286 1,388 1.08 6,044 (4) 2,990 3,040 1.00
3,009 1,370 1,342 1.11 6,644 (4) 3,460 2,725 1.07
3,019 1,464 1,288 1.10 6,668 (4) 3,230 2,791 1.11
Special Assessment Bonds(2) Successor Agency Bonds (3)
Debt Service Debt Service

CITY OF NORCO

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(182)
Personal Per Capita
Estimated Income Personal School Unemployment
Year Population(1) (in thousands)(2) Income(3) Enrollment(4) Rate(5) 2013 27,063 685,794 81,359 53,522 9
2014 26,582 711,000 85,142 53,816 7
2015 27,063 767,453 88,051 53,618 6
2016 26,896 823,340 87,067 53,354 5
2017 27,143 ** ** 53,157 5
2018 26,809 ** ** 53,294 4
2019 26,610 ** ** 53,002 4
2020 27,564 ** ** 52,557 4
2021 26,604 ** ** 51,318 5
2022 26,077 ** ** 50,889 4
Sources:
(1) State Department of Finance, Demographic Research Unit (2) Estimated based on "Per Capita Personal Income".
(3) U.S. Department of Commerce, Bureau of Economic Analysis for Riverside County (4) Enrollment data for Corona Norco Unified School District obtained from the California State Department of Education. (5) State Employment Development Department, Labor Market Information Division. ** data not available

CITY OF NORCO

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
(183)
2022 2013
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment(1) Employees Rank Employment(1) Naval Surface Warfare Center 1,895 1 15.16% 1,300 2 9.49% Corona-Norco Unified School District* 1,231 2 9.85% 4,199 1 30.66% California Rehabilitation Center 1,004 3 8.03% 1,156 3 8.44% Norco College (RCCD) 465 4 3.72% 377 4 2.75%
Quick Crete Products Corp. 179 5 1.43% 157 6 1.15%
Target Stores 179 6 1.43% 187 5 1.37%
Winco Foods, LLC 134 7 1.07%
Stater Bros. Markets #199 112 9 0.90%
Hemborg Ford, Inc. 100 8 0.80% 93 9 0.68%
E-Z Up Instant Shelters 96 10 0.77% 110 7 0.80%
Computer Science Corp (formerly DynCorp) 93 8 0.68%
Avid Identification Systems, Inc. 85 10 0.62%
Total 5,395 43.16% 7,757 56.64%
* Schools within the City of Norco.

Source: Employment information obtained from State Employment Development Department, Labor Market Information Division. Hinderliter, De Llamas & Assoc.

CITY OF NORCO

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(184)
2013 2014 2015 2016 2017
Function/Program
General government
Administration 1 1 1 1 2
City Clerk 2 2 2 2 2
Fiscal & Support Svcs. 11 10 10 11 12
Human Resources 1 1 1 1 1
Public Safety
Police (Civilian) 1 1 1 1 1
Code Enforcement - 1 1 1 1
Animal Control 4 3 3 3 2
Public Works
Maintenance 15 15 14 13 12
Culture and leisure
Parks & Recreation 7 8 8 10 8
Community development
Planning 2 2 2 2 2
Engineering 1 1 2 2 3
Building 2 2 2 3 3
Total 47 47 47 48 51
Source: City's annual adopted budgets
Full-time Equivalent Employees as of June 30

CITY OF NORCO

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(185)
2018 2019 2020 2021 2022
22323
22233
12 12 12 10 11
11111
11111
11122
33344
15 15 15 18 18
10 10 10 14 14
2 2 2 2 3
3 3 3 3 4
3 3 3 3 3
55 55 56 63 67
Full-time Equivalent Employees as of June 30

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(186)
2013 2014 2015 2016 2017
Police
UCR Crime index total 659 628 709 752 850
Traffic collisions 480 528 556 603 674
Traffic violations 729 1,388 2,436 1,869 2,031
Fire
Total number of responses 2,562 1,996 2,287 2,419 2,443 Fires extinguished 212 64 (1) 53 57 62
Water
Number of service connections 7,471 7,451 7,471 7,475 7,481 Average daily consumption (in mil. of gallons) 8 8 8 5 6 Max. daily (groundwater wells) capacity (in mil. of gallons) 8 8 8 8 5 Max. daily import capacity (in mil. of gallons) 12 12 12 12 12 Storage capacity (in mil. of gallons) 11 11 11 11 11
Sewer
Number of sewer connections 6,876 6,866 6,897 6,913 6,954 Average daily treatment (in mil. of gallons) 2 2 2 2 2
Max. daily capacity of treatment plans (in mil. of gallons) 2 2 2 2 3 Source: Various City's departments
Function/Program
(1) 64 fires extinguished and 211 false fire alarms.

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(187)
2018 2019 2020 2021 2022
707 682 732 631 715
608 618 502 482 558
2,175 2,384 2,770 2,721 3,168
2,515 2,520 2,602 2,799 3,025
75 67 109 67 87
7,485 7,468 7,650 7,476 7,471
6 6 6 6 6
5 5 5 5 5
12 12 12 9 9
11 11 11 14 14
6,972 6,969 6,970 6,963 6,963
2 2 2 2 2
2 3 3 3 3

CITY OF NORCO

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(188)
2013 2014 2015 2016 2017
Function/Program
Public safety
Fire stations 2 2 2 2 2
Culture and leisure
Parks 15 15 15 15 15
Park Acreage 168 168 168 168 168
Open Space Acreage 835 835 835 835 835
Tennis court 1 1 1 1 1
Community center 1 1 1 1 1
Public playgrounds/Tot lots 9 9 9 9 9
Water
Water mains (miles) 102 102 103 103 103
Fire hydrants 1,282 1,282 1,297 1,363 1,400
Sewer
Sanitary sewers (miles) 92 92 92 92 97
Treatment plant 1 1 1 1 1
Source: Various City's departments
Fiscal Year

CITY OF NORCO

CAPITAL ASSETS BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(189)
2018 2019 2020 2021 2022
2 2 2 2 2
15 15 15 15 15
168 168 168 168 168
835 835 835 835 835
1 1 1 1 1
1 1 1 1 1
9 9 9 9 9
117 114 117 122 122
1,415 1,443 1,393 1394 1406
105 104 104 107 109
1 1 1 11
Fiscal Year

Honorable Mayor and
Members of the City Council
City of Norco
Norco, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Norco as of and for the year ended June 30, 2022, and have issued our report thereon dated December 19, 2022. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as certain information related to the planned scope and timing of our audit in our engagement letter June 15, 2022. Professional standards also require that we communicate to you the following information related to our audit. related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Norco are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to leases by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases, in fiscal year 2022.

Accordingly, the accounting change has been applied to the beginning period of adoption.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the financial statements was (were):
 The annual required contributions, pension expense, net pension liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s cost sharing employer defined benefit pension plans are based on actuarial valuations provided by California Public Employee Retirement System actuaries and for the City’s single employer defined benefit pension plan are based on an actuarial valuation provided by a third-party actuary.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and
Members of the City Council
City of Norco

 The other postemployment benefits (OPEB) expense and total OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plan are based on an actuarial valuation provided by a third-party actuary.

We evaluated the key factors and assumptions used to develop these estimated in determining that they reasonable in relation to the financial statements taken as a whole.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were Note 5 for the City’s pension plans and Note 13 for the City’s other post-employment benefits.

The financial statement disclosures are neutral, consistent, and clear.

Significant unusual transactions
We identified no significant unusual transactions.

Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management did not identify, and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements
The following material misstatement was corrected by management.  In prior years, the district recorded inspection fees related to sewer connections in the sewer enterprise fund instead of the general fund. A restatement of beginning net position/fund balance was recorded in the current year to report the sewer inspection fees in the appropriate fund. In addition, in prior year, revenues were improperly classified as deposits payable in the general fund. A restatement of beginning fund balance was recorded in the general fund to correct this error.

Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Management representations
We have requested certain representations from management that are included in the management representation letter dated December 19, 2022.

Honorable Mayor and
Members of the City Council
City of Norco

Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

Supplementary information in relation to the financial statements as a whole With respect to the combining and individual nonmajor fund financial statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated December 19, 2022.

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.

Honorable Mayor and
Members of the City Council
City of Norco

We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information.

If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements. * * *
This communication is intended solely for the information and use of the [Identify the body or individual(s) charged with governance] and management of City of Norco and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

INDEPENDENT AUDITORS’ 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 Honorable Mayor and
Members of the City Council
City of Norco
Norco, 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 Norco (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon December 19, 2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Norco’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Norco’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 or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings as item 2022-01, that we consider to be a material weakness.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and
Members of the City Council
City of Norco
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Norco’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 financial statements. 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 instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Norco’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Norco’s response to the findings identified in our audit and described in the accompanying schedule of findings. City of Norco’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

CITY OF NORCO

SCHEDULE OF FINDINGS
YEAR ENDED JUNE 30, 2022
2022-001 – Restatement of Prior Year Financial Statements Type of Finding: Material Weakness in Internal Control over Financial Reporting.

Condition: The City recorded inspection fees for sewer connections in the sewer enterprise fund rather than the general fund. Additionally, revenue collected was improperly recorded as deposits payable in the general fund.

Criteria or Specific Requirement: Under generally accepted accounting principles, revenue collected should be reported in the correct fund and liabilities should not be recorded for revenues.

Effect: A prior period adjustment was made to transfer the revenue from the sewer enterprise fund to the general fund in the amount of $441,268 and a prior period adjustment was made to remove deposit liabilities in the amount of $256,741 which should have reported as revenues in the prior year.

Cause: The City performed a thorough review and noted revenue being recorded in wrong fund and that the deposits collected should have been reported as revenue.

Repeat finding: This is not a repeat finding.

Recommendation: We recommend the City review its procedures for recording of revenue in the appropriate fund and proper classification.

Views of Responsible Officials and Planned Corrective Actions: The City will review the procedures for recording revenues in the appropriate funds and set up a periodic schedule for evaluation of deposit accounts for timely reclassifications.

CITY OF NORCO, CALIFORNIA
APPROPRIATIONS LIMIT WORKSHEET NO. 6
INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022

(1)
INDEPENDENT ACCOUNTANTS’ REPORT

ON APPLYING AGREED-UPON PROCEDURES
Honorable Mayor and Members
of the City Council
City of Norco
Norco, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 of the City of Norco, California, (the City) for the year ended June 30, 2022. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.

The City and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limit Uniform Guidelines) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30, 2022, and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council.

No exceptions were noted as a result of performing this procedure.

2. For the Appropriations Limit Worksheet No. 6, we added last year’s limit to the total adjustments and compared the resulting amount to this year’s limit. We also recalculated the adjustment factors, and the adjustment for inflation and population, and compared the results to the amounts on Worksheet No. 6.

No exceptions were noted as a result of performing this procedure.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and Members of the City Council
of the City of Norco
City of Norco
(2)

3. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

No exceptions were noted as a result of performing this procedure.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

CITY OF NORCO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Appropriations Limit Worksheet No. 6. (3)
Appropriations Limit for Fiscal Year Ended June 30, 2021 (see Note 2) $ 46,228,578 Adjustments Factors for the Fiscal Year Ended June 30, 2022 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.0573000 1.0002000 1.0575115 x 0.0575115
Adjustment for Inflation and Population 2,658,673
Other Adjustments (Note 5) -
Total Adjustments 2,658,673
Appropriations Limit for Fiscal Year Ended June 30, 2022 $ 48,887,251

CITY OF NORCO
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2022
(4)
NOTE 1 PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from the proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to an agreed-upon procedures review in connection with the annual audit.

NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.

NOTE 3 INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in the fourth quarter per capita personal income from the preceding year (which percentages are supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Norco for the fiscal year 2021- 2022 represents the annual percentage change for per capita personal income from the preceding year.

NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the county where the jurisdiction is located. The factor adopted by the City of Norco for fiscal year 2021-2022 represents the annual percentage change in population for the City of Norco.

NOTE 5 OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City of Norco had no such adjustments for the year ended June 30, 2022.

CITY OF NORCO, CALIFORNIA

SINGLE AUDIT OF FEDERALLY ASSISTED

GRANT PROGRAMS
JUNE 30, 2022

CITY OF NORCO
JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
Independent Auditors’ 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 Auditors’ Report on Compliance for Each Major Federal Program, Report on Internal Control over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 - 5
Schedule of Expenditures of Federal Awards and Schedule of Findings and Questioned Costs:

Schedule of Expenditures of Federal Awards 6
Notes to Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs 8 - 9
Summary Schedule of Prior Audit Findings 10

(1)
INDEPENDENT AUDITORS’ 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
Honorable Mayor and
Members of the City Council
of the City of Norco
Norco, 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Norco (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated December 19, 2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of 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 combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’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 or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2022-01, that we consider to be a material weakness.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and
Members of the City Council
of the City of Norco
(2)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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.

City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding identified in our audit and described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

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

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

(3)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND

REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL

AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and
Members of the City Council
of the City of Norco
Norco, California
Report on Compliance for Each Major Federal Program
Opinion on the Major Federal Program
We have audited the City of Norco’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended June 30, 2022. The City’s major federal program is identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

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

Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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 Auditors’ Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City 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 the major federal program. Our audit does not provide a legal determination of the City’s compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the 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.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Honorable Mayor and
Members of the City Council
of the City of Norco
(4)
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 the 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 GAAS, 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 omission, misrepresentations, or 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 aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, 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 the 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 the 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 the 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 a 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 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.

Honorable Mayor and
Members of the City Council
of the City of Norco
(5)
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above 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 in internal control over compliance 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We have issued our report thereon, dated December 19, 2022 which contained unmodified opinions on those 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 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

AND SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Federal
Assistance Pass-Through PassedListing Entity Identifying Federal Through to Federal Grantor / Pass - Through Grantor / Program / Cluster Title / Project Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Passed-through the County of Riverside:

Community Development Block Grant - Entitlement Grants Cluster:

Community Development Block Grant 14.218 2.NR.57-21 14,049 $ - $ Total U.S. Department of Housing and
Urban Development 14,049 -
U.S. Department of Treasury
Direct Assistance:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 2,884,273 - Passed-through the State Water Resource Control Board:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 CA3310025 272,853 - Total U.S. Department of Treasury 3,157,126 -
U.S. Department of Homeland Security
Passed-through the County of Riverside:

Emergency Management Performance Grant 97.042 2020-0006 9,676 - State Homeland Security Program Grant 97.067 2020-0095 3,454 Total U.S. Department of Homeland Security 13,130 -
TOTAL EXPENDITURES OF FEDERAL AWARDS $ - 3,184,305 $

CITY OF NORCO

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2022
See accompanying notes to the Schedule of Expenditures of Federal Awards. (6) Page 442 of 514

CITY OF NORCO

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
(7)

1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) include the federal award activities of the City of Norco, California (the City), under programs of the federal government, as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in accordance with the 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). Because the Schedule present only a selected portion of the operations of the City, they are not intended to, and do not, present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.

2. BASIS OF ACCOUNTING
The accompanying Schedule is presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass-through entity identifying numbers are identified where available.

3. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

4. CONTINGENCIES
Under the terms of federal grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

CITY OF NORCO

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
(8)
Section I – Summary of Auditors’ Results
Financial Statements

1. Type of auditors’ report issued: Unmodified

2. Internal control over financial reporting:
 Material weakness(es) identified? x yes no
 Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:
 Material weakness(es) identified? yes x no
 Significant deficiency(ies) identified? yes x none reported

2. Type of auditors’ report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? yes x no
Identification of Major Federal Programs
Assistance Listing Number(s) Name of Federal Program or Cluster

21.027 COVID-19 Coronavirus State and Local Recovery
Funds
Dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000
Auditee qualified as low risk auditee? yes x no

CITY OF NORCO

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
(9)
Section II – Financial Statement Findings
2022 – 001 Restatement
Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The City recorded inspection fees for sewer connections in the sewer enterprise fund rather than the general fund. Additionally, revenue collected was improperly recorded as deposits payable in the general fund.

Criteria or Specific Requirement: Under generally accepted accounting principles, revenue collected should be reported in the correct fund and liabilities should not be recorded for revenues.

Effect: A prior period adjustment was made to transfer the revenue from the sewer enterprise fund to the general fund in the amount of $441,268 and a prior period adjustment was made to remove deposit liabilities in the amount of $256,741 which should have reported as revenues in the prior year.

Cause: The City performed a thorough review and noted revenues were being recorded in the wrong fund and that the deposits collected should have been recorded as revenue.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City review its procedures for recording of revenue in the appropriate fund and proper classification.

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The City will review the procedures for recording revenues in the appropriate funds, and set up a periodic schedule for evaluation of deposit accounts for timely reclassifications.

Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a).

CITY OF NORCO

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2022
(10)
Financial Statement Findings
There were no financial statement audit findings in the prior year.

Federal Program Award Findings
A single audit of Federal Awards was not required in the prior year.

Measure R Citizens' Oversight
Committee

STAFF REPORT
Date: January 25, 2023 Agenda Item:

4.A.

To: Honorable Chair and Commission Members
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:

FY 2021-2022 Measure R Transactions and Use Tax Audited Financial Reports RECOMMENDATION:

Review FY 2021-2022 Measure R Transactions and Use Tax Audited Financial Reports and recommend transmittal to the City Council.

SUMMARY:

As required by Measure R, the City's independent auditors have completed their FY 2021- 2022 audit of Measure R Transactions and Use Tax Fund. Staff is recommending that the independent auditors’ report be reviewed by Measure R Citizens’ Oversight Committee (COC) and for the COC to transmit the report to the City Council to receive and file.

BACKGROUND:

The implementation of Measure R requires annual independent audit, and one of the primary responsibilities of Measure R Citizens Oversight Committee is to review the annual independent accountants’ audit report on Measure R revenues and expenditures and provide appropriate recommendations to the City Council. City Independent Auditors, CliftonLarson Allen (CLA) LLP, has completed the annual required audit for the Fiscal Year ended June 30, 2022 and has prepared their report. CLA will be in attendance at the COC meeting to present the results of their audit.

Their report expressed unqualified opinion on the financial reports and finds no instance of non-compliance with rules or regulations. The report consists of the following:

1. Independent Auditors Report on the Financial Statements

2. Measure R Transactions and Use Tax Financial Statements with Note Disclosures

3. Independent Auditors 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 FISCAL IMPACT:

There is no fiscal impact for this item.

RELATIONSHIP TO STRATEGIC PLAN:

The FY 2021-22 Measure R Transactions and Use Tax Fund Audited Financial Reports and auditing processes are consistent with Strategic Direction #3 - “Assure financial stability by identifying new revenue sources and continuing prudent financial management."
REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
ATTACHMENT(S):

Norco Measure R Final

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2022

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1

FUND FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 5
NOTES TO FINANCIAL STATEMENTS 6

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE 9
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 10

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 11

(1)
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Norco
Norco, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City), as of and for the year ended June 30, 2022, and the related notes to the 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 Measure R Transaction and Use Tax Fund of the City of Norco, California, as of June 30, 2022, and the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Norco 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 opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Measure R Transaction and Use Tax Fund and do not purport to and do not present fairly the financial position of the City of Norco as of June 30, 2022, or the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

City Council Members
of the City of Norco
(2)
Auditors’ 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 auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’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.

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.

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

City Council Members
of the City of Norco
(3)
Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the 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 financial statements and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the required supplementary information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2022 on our consideration of the City’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over the Measure R Transaction and Use Tax Fund’s 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 the Measure R Transaction and Use Tax Fund’s financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(4)
ASSETS
Cash and Investments $ 12,425,571
Accounts Receivable -
Accrued Interest Receivable 20,146
Due from Other Governments 1,757,704
Total Assets $ 14,203,421

LIABILITIES
Accounts Payable $ 1,397,353
Retention Payable 198,494
Total Liabilities 1,595,847

FUND BALANCE
Unrestricted:

Committed 12,607,574
Total Fund Balances 12,607,574
Total Liabilities and Fund Balance 14,203,421 $

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(5)

REVENUES
Taxes $ 8,769,901
Investment Earnings (166,089)
Total Revenues 8,603,812

EXPENDITURES
Current:

General Government 5,000
Public Works 723,073
Capital Outlay 5,193,727
Total Expenditures 5,921,800
NET CHANGE IN FUND BALANCE 2,682,012
Fund Balance - Beginning of Year 9,925,562
FUND BALANCE - END OF YEAR $ 12,607,574

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(6)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are intended to reflect the fund balance and net change in fund balance attributable to the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City). These financial statements are exclusively for Measure R Transaction and Use Tax Fund and do not purport to, and do not, present fairly the financial position and changes in the financial position of the City.

The Measure R Transaction and Use Tax Fund is a component of the City’s General Fund and is used to account for the collection and use of Measure R transaction and use tax revenue. Measure R is the City of Norco’s one-cent transaction and use tax that was approved by voters on the November 6, 2018 ballot. Measure R funds are to be used for investment in infrastructure. Measure R allows the City of Norco to preserve its quality of life, and restore deteriorating streets, trails, parks, facilities, and equestrian amenities.

Measure R will also prevent additional cuts to the City of Norco’s public safety services in order to maintain safe levels of sheriff and fire protection without risking emergency response times. With the approval of Measure R, the sales tax rate in the City of Norco increased by 1%, from 7.75% to 8.75% effective April 1, 2019.

Basis of Presentation
The Measure R Transaction and Use Tax Fund financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation Governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except that revenues subject to accrual (generally these received within 60 days after year-end) are recognized when due.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(7)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance and Flow Assumptions
The Measure R Transaction and Use Tax Fund financial statements report the following unrestricted fund balance classifications:
 Committed – Includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is through resolution.

When the components of unrestricted fund balance can be used for the same purpose, it is the City’s policy to consider all committed, assigned and unassigned amounts when determining which classification to apply to an expenditure.

Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized in investment earnings for that fiscal year.

Investment earnings include interest earnings, changes in fair value (realized/unrealized), gains or losses realized upon the liquidation, and maturity or sale of investments.

Cash and investments are pooled with other City funds for investment purposes, with interest being allocated monthly to various funds based on each fund’s prior month-end cash and investment balance.

Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(8)
NOTE 2 CASH AND INVESTMENTS
Equity in the Cash and Investment Pool of the City of Norco The Measure R Transaction and Use Tax Fund has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The Measure R Transaction and Use Tax Fund is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Measure R Transaction and Use Tax Fund has not adopted an investment policy separate from that of the City. The fair value of the Measure R Transaction and Use Tax Fund’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Measure R Transaction and Use Tax Fund’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Norco’s Annual Comprehensive Financial Report.

Fair Value Measurements
The Measure R Transaction and Use Tax Fund categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; and, Level 3 inputs are significant unobservable inputs.

The Measure R Transaction and Use Tax Fund’s investment in the City investment pool is not subject to the fair value hierarchy.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (9)
Variance
with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
FUND BALANCE - BEGINNING OF YEAR $ 9,925,562 9,925,562 $ 9,925,562 $ - $

RESOURCES (INFLOWS)
Taxes 5,141,000 7,968,496 8,769,901 801,405
Investment Earnings 30,000 90,762 (166,089) (256,851)
Amount Available for Appropriations 5,171,000 8,059,258 8,603,812 544,554

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 10,000 11,400 5,000 6,400
Public Works 161,429 817,000 723,073 93,927
Capital Outlay 5,671,708 14,440,033 5,193,727 9,246,306 Total Charges to Appropriations 5,843,137 15,268,433 5,921,800 9,346,633 Excess of Resources Over (Under)
Charges for Appropriations (672,137) (7,209,175) 2,682,012 9,891,187 FUND BALANCE - END OF YEAR $ 9,253,425 $ 2,716,387 $ 12,607,574 $ 9,891,187

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(10)
NOTE 1 BUDGETARY ACCOUNTING
The budget for the Measure R Transaction and Use Tax Fund is formally adopted annually and is prepared in accordance with accounting principles generally accepted in the United States of America. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. Department heads are responsible for monitoring their department’s appropriated budget. The legal level of budgetary control is at the fund level. The City’s management may transfer resources between operating line items within a department in the same fund as they see appropriate. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are included in the restricted fund balance since they do not constitute expenditures or liabilities.

(11)

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 Members
City of Norco
Norco, 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 City of Norco, California (the City) including the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City), as of and for the year ended June 30, 2022 and the related notes to the financial statements, which collectively comprise the Measure R Transaction and Use Tax fund’s financial statements, and have issued our report thereon dated December 19, 2022.

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

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 Measure R Transaction and Use Tax Fund’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. 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.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

City Council Members
City of Norco
(12)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure R Transaction and Use Tax Fund’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 financial statements. 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 compliance related to the Measure R Transactions and Use Tax Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control related to the Measure R Transactions and Use Tax Fund.

Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
December 19, 2022

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

2.G.

To: Honorable Mayor and City Council Members
Prepared By: Cindy Balderas, Human Resources Manager
Department: Human Resources
SUBJECT:

Approve the Position Title and Salary Range for Part-Time Code Enforcement Supervisor RECOMMENDATION:

Adopt Resolution No. 2023-05 to approve the position title and salary range for PartTime Code Enforcement Supervisor; and appropriate $20,000 to the Fiscal Year 2022- 2023 Operating Budget.

SUMMARY:

Code Enforcement is responsible for enforcing the Norco Municipal Codes related to property maintenance, permitted land uses, and other matters related to the City's quality of life and property value preservation. The Code Enforcement Division procedures and policies are currently being assessed and revised to increase the efficiency and effectiveness of the Division. Creation of a part-time Supervisor is recommended to give the Division direction and guidance as the new procedures and processes are implemented.

BACKGROUND:

The current Code Enforcement model relies on the Director of Community Development to supervise the Code Enforcement Division, which is staffed by two (2) Code Enforcement Officers.

The Code Enforcement Division procedures and policies are currently being assessed and revised to increase the efficiency and effectiveness of the Division. The assistance of a Part-Time Code Enforcement Supervisor is necessary to ensure that a new program for Code Enforcement is implemented effectively. In addition, the Supervisor will assist in monitoring complex and technical cases requiring higher level of administration not in the job scope of the Senior Code Enforcement Officer.

Staff is requesting the authority to create and add a new part-time position of Code Enforcement Supervisor in order to address the current needs to the Code Enforcement

Division. In order to maintain internal equity and also be competitive with other agencies, staff recommends the Part-Time Code Enforcement Supervisor salary range be set at PT34 ($36.14 to $45.15 hourly). Approval of the position title and salary range will allow Community Development to fill the position.

FISCAL IMPACT:

This is a part-time position limited to 1,000 hours per fiscal year. The estimated annual cost to add this position to the budget is approximately $47,000; the additional cost for the remainder of the Fiscal Year 2022-2023 Operating Budget would be approximately $20,000. Staff recommends an appropriation of $20,000 to the FY 2022-2023 Operating Budget.

RELATIONSHIP TO STRATEGIC PLAN:

This action is consistent with Strategic Plan Direction No. 2 - Human Capital: Build a sustainable workforce to meet the needs of all stakeholders.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Resolution No. 2023-XX
Part-Time Salary Schedule

RESOLUTION NO. 2023-05

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, APPROVING THE POSITION TITLE AND SALARY

RANGE FOR PART-TIME CODE ENFORCEMENT SUPERVISOR
WHEREAS, part-time employees customarily work less than 1,000 hours per fiscal year, or an average of 20 hours per week on a regular year-round basis; and WHEREAS, it is necessary and desirable to employ persons on a part-time basis to provide valuable services to augment the provision of City services; and WHEREAS, such part-time employees are unrepresented “at-will” individuals nor receive any benefits, and
WHEREAS, the City Council desires to provide guidelines for the compensation to such employees for the rendering of such valuable service; and WHEREAS, the functions and activities of the Code Enforcement Division have gradually increased over the last few years; and
WHEREAS, the Community Development Director has the need for a part-time supervisory position with responsibilities to oversee the Code Enforcement Division; and WHEREAS, the City Council now desires to adopt the salary schedule (Attachment A) for the Part-Time position title to include a Part-Time Code Enforcement Supervisor with the salary range set at PT34 ($36.14 to $45.14 hourly); and NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco, California, approve the following:

1. Part-time salary schedule that includes the position title and salary range for PartTime Code Enforcement Supervisor.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on February 1, 2023.
__________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

Resolution No. 2023-05 – Approve Title and Salary for Code Enforcement Supervisor

February 1, 2023
I, DANA ROA, CMC, City Clerk of the City of Norco, California do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on February 1, 2023 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California on February 1, 2023.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Attachment A: Part Time Salary Schedule, Effective 02/04/2023

Classification/Position Title Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Administrative Aide PT5 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 $ 22.0562 Animal Care Technician PT5 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 $ 22.0562 Code Enforcement Supervisor PT34 $ 36.1416 $ 37.0452 $ 37.9713 $ 38.9206 $ 39.8936 $ 40.8909 $ 41.9132 $ 42.9610 $ 44.0350 $ 45.1359 Communications Specialist PT12 $ 20.9934 $ 21.5182 $ 22.0562 $ 22.6076 $ 23.1728 $ 23.7521 $ 24.3459 $ 24.9545 $ 25.5784 $ 26.2179 Community Services Aide PT1 $ 16.0000 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 Community Services Assistant I PT2 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 Community Services Assistant II PT4 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 Community Services Assistant III PT5 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 $ 22.0562 Community Services Officer PT18 $ 24.3459 $ 24.9545 $ 25.5784 $ 26.2179 $ 26.8733 $ 27.5451 $ 28.2338 $ 28.9396 $ 29.6631 $ 30.4047 Community Services Specialist PT6 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 $ 22.0562 $ 22.6076 Emergency Services Assistant PT18 $ 24.3459 $ 24.9545 $ 25.5784 $ 26.2179 $ 26.8733 $ 27.5451 $ 28.2338 $ 28.9396 $ 29.6631 $ 30.4047 Facilities & Maintenance Assistant PT2 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 Facility Attendant PT2 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 Intern PT4 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 $ 20.9934 $ 21.5182 Kennel Aide PT1 $ 16.0000 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 Kennel Assistant PT2 $ 16.4000 $ 16.8100 $ 17.2303 $ 17.6610 $ 18.1025 $ 18.5551 $ 19.0190 $ 19.4944 $ 19.9818 $ 20.4814 STEP

CITY OF NORCO

PART-TIME SALARY SCHEDULE

CLASSIFICATIONS & SALARY RANGES
EFFECTIVE 02/04/2023
Per Resolution No. 2023-XX (Approved 02-01-2023)

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

2.H.

To: Honorable Mayor and City Council Members
Prepared By: Cindy Balderas, Human Resources Manager
Department: Human Resources
SUBJECT:

Authorize Participation in the Employment Risk Management Authority (ERMA) for Employment Practice Liability Insurance Coverage
RECOMMENDATION:

Adopt Resolution No. 2023-06, to authorize the City's Participation in the Employment Risk Management Authority (ERMA)
SUMMARY:

The City participates in the Public Entity Risk Management Authority (PERMA) along with numerous other public agencies in Riverside, San Bernardino, and San Diego Counties for purposes of providing oversight, administration, and pooling in various insurance programs.

The City currently does not have any employment practice liability (EPL) coverage that would cover claims arising out of employment related liabilities. Potential costs of investigation and litigation for employment law matters can be significant to an employer, and is best addressed through a pooling of resources and coordinated effort towards ensuring best management practices are followed to avoid claims. Maintenance of EPL coverage is a best practice among local governments.

BACKGROUND:

The Employment Risk Management Authority (ERMA) is a self-insured joint powers authority created for the sole purpose of Employment Practices Liability Coverage. ERMA is comprised of various public entities who risk share up to $1 million against potential unlawful employment practices claims.

ERMA formed primarily due to the fact that government entities have not historically been able to secure EPL coverage at a competitive cost through the commercial insurance marketplace.

ERMA has met all of the high professional standards established by the California Association of Joint Powers Authorities (CAJPA) in the areas of governance, finance, claims control, safety and loss control and ERMA is fully accredited by CAJPA. CAJPA’s accreditation process requires reviews by independent consultants in the areas of accounting, claims adjusting, and actuarial analysis. ERMA provides services to both Joint Powers Insurance Authorities and individual public entities.

As a member of PERMA, the City has the option to request to join ERMA for EPL coverage. The proposed action will permit the City to become a member of ERMA for the purposes of obtaining EPL coverage, at a retention limit of $100,000 claims up to $1M.

Our existing liability excess carrier already provides the City coverage from $1M to $50M.

By securing EPL coverage for the first $1M of any claim, the City now has insurance that can buffer the financial impact of any future EPL claim.

ERMA provided an initial quote for EPL Coverage of an annual cost of $34,000 for the fiscal year 2023-2024. Final insurance pricing each year will typically be given by ERMA in late Spring for budget planning purposes.

FISCAL IMPACT:

The fiscal impact for the fiscal year 2023-2024 to obtain EPL Coverage is estimated at $34,000. The cost will be incorporated into the fiscal year 2023-2024 operating budget.

RELATIONSHIP TO STRATEGIC PLAN:

This action is consistent with Strategic Plan Direction No. 2 - Human Capital: Build a sustainable workforce to meet the needs of all stakeholders.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Resolution No. 2023-06

RESOLUTION NO. 2023-06

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, AUTHORIZING PARTICIPATION IN THE EMPLOYMENT

RISK MANAGEMENT AUTHORITY (ERMA)
WHEREAS, the City of Norco wishes to obtain Employment Practices Liability coverage for the period July 1, 2023 through June 30, 2024; and WHEREAS, the Employment Risk Management Authority (ERMA) is a self-insured Joint Powers Authority created for the sole purpose of Employment Practices Liability Coverage. ERMA is comprised of various public entities who share up to $1 million against potentially unlawful employment practices and discrimination claims; and WHEREAS, ERMA formed primarily due to the fact that government entities have not historically been able to secure Employment Practices Liability (EPL) coverage at a competitive cost through the commercial insurance marketplace; and WHEREAS, ERMA has met all of the high professional standards established by the California Association of Joint Powers Authorities (CAJPA) in the areas of governance, finance, claims control, safety and loss control and ERMA is fully accredited by CAJPA. CAJPA’s accreditation process requires reviews by independent consultants in the areas of accounting, claims adjusting, and actuarial analysis; and WHEREAS, ERMA provides services to both Joint Powers Insurance Authorities and individual public entities; and
WHEREAS, the City of Norco has determined that it is in its best interest to become a member of ERMA for the purpose of obtaining Employment Practices Liability coverage; and
WHEREAS, ERMA requires the City of Norco to pass a resolution expressing the desire and commitment of the City of Norco’s participation in ERMA, which requires a three-year minimum participation period. The City of Norco also understands its entity will be bound by the provisions in the ERMA Joint Powers Agreement just as though it were fully set forth and incorporated herein whether its entity had signed it individually or through an underlying Joint Powers Insurance Authority.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco, California, approves the following:

1. Participation in ERMA beginning July 1, 2023;

2. The City Manager, on behalf of the City of Norco, is hereby authorized to take any and all actions necessary to implement the foregoing resolution.

Resolution No. 2023-06 – Participation in the Employment Risk Management Authority

February 1, 2023
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on February 1, 2023.
__________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, DANA ROA, CMC, City Clerk of the City of Norco, California do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on February 1, 2023 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 1, 2023
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

5.A.

To: Honorable Mayor and City Council Members
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:

Ordinance No. 1092, Second Reading: Repealing Ordinance No's 902, 928 and 984, and amending Norco Municipal Code Chapter 2.26 "Historic Preservation Commission" RECOMMENDATION:

Adopt Ordinance No. 1092, Second Reading: Repealing Ordinance No's 902, 928 and 984, and amending Norco Municipal Code Chapter 2.26 "Historic Preservation Commission" to change the name of the commission, add two additional member seats and update requirements for membership. Code Amendment 2023-01 SUMMARY:

The first reading of Ordinance No. 1092 was held January 18, 2023 and was adopted by the City Council.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

Strategic Plan #4: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Ordinance No. 1092

ORDINANCE NO. 1092

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, REPEALING ORDINANCE NOs 902, 928 AND 984;
AND TO AMEND NORCO MUNICIPAL CODE CHAPTER 2.26
“HISTORIC PRESERVATION COMMISSION”. CODE AMENDMENT
2023-01
WHEREAS, the CITY OF NORCO, initiated Code Amendment 2023-01, to amend Norco Municipal Code (NMC) Chapter 2.26 “Historic Preservation Commission” to revise its title, and update the Commission’s membership requirements; and WHEREAS, the Code Amendment was duly submitted to said City’s City Council for decision at a public hearing for which proper notice was given; and WHEREAS, the Code Amendment was scheduled for public hearing on January 18, 2023, on or about 7:00 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Code Amendment.

NOW, THEREFORE, the City Council of the City of Norco, California, does hereby ordain, determine, and order the NMC Chapter 2.26, newly titled “Heritage and Agricultural Preservation Commission” to be amended as follows:

SECTION 1:

Chapter 2.26

HISTORIC PRESERVATION AND AGRICULTURAL HERITAGE COMMISSION Sections:

2.26.001 Purpose.

2.26.005 Definitions.

2.26.010 Established—Number of members.

2.26.020 Terms of office.

2.26.030 Appointment of members.

2.26.040 Requirements for membership.

2.26.050 Vacancies.

2.26.060 Removal from office.

2.26.070 Organization.

2.26.080 Conduct of meetings.

2.26.090 Duties—Limitations on authority.

2.26.100 Records.

2.26.001 Purpose.

The purpose of this chapter is to promote the public health, safety and general welfare by providing for the identification, protection, enhancement, perpetuation and use of improvements, buildings, structures, signs, objects, features, sites, places, areas, districts, neighborhoods, streets, works of art, natural features and significant permanent landscaping

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February 1, 2023
having special historical, archaeological, cultural, architectural, community, aesthetic or artistic value in the City for the following reasons:

A. To safeguard the City’s heritage and agriculture as embodied and reflected in such resources;
B. As part of that heritage, to preserve and promote animal keeping, small farms, and agricultural activities as a distinctive part of Norco’s history and a defining value; C. To encourage public knowledge, understanding and appreciation of the City’s past; D. To foster civic and neighborhood pride and a sense of identity based on the recognition and use of cultural resources;
E. To promote the enjoyment and use of cultural resources appropriate for the education and recreation of the people of the City;
F. To preserve diverse and harmonious architectural styles and design preferences reflecting phases of the City’s history and to encourage complementary contemporary design and construction;
G. To enhance property values and to increase economic and financial benefits to the City and its inhabitants;
H. To protect and enhance the City’s attraction to tourists and visitors, thereby stimulating business and industry;
I. To identify as early as possible and resolve conflicts between the preservation of cultural resources and alternative land uses;
J. To integrate the preservation of cultural resources and the extraction of relevant data from such resources into public and private land management and development processes;
K. To conserve valuable material and energy resources by ongoing use and maintenance of the existing built environment. (Ord. 902 Sec. 1, 2008)

2.26.005 Definitions.

For the purposes of this title, the following words and phrases shall have the meanings respectively ascribed to them by this section:

A. “Commission” means the Historic Preservation and Agricultural Heritage Commission.

B. “Certificate of Appropriateness” means a certificate issued by the City Council approving such plans, specifications, statements of work, and any other information that is reasonably required by the City Council to make a decision on any proposed alteration, restoration, rehabilitation, construction, removal, relocation or demolition, in whole or in part, of or to a cultural resource, or a building or structure or site within a historic preservation overlay zone.

C. “Certified local government (CLG)” means a local government certified under federal law by the California State Office of Historic Preservation for the purpose of more direct participation in federal and State historic preservation programs. Local governments become certified by demonstrating their ability to enforce national, State, and local preservation laws and to provide for adequate public participation in the programs resulting from these. In addition, the CLG must have a qualified historic preservation review Commission and must have completed or be in the process of completing a comprehensive historic inventory. If certification is granted, CLGs are eligible for special federal matching grants. Certification is a way of ensuring the historic preservation

Ordinance No. 1092 – Amending NMC Chapter 2.26

February 1, 2023
program in Norco meets all federal standards.

D. “Cultural resource” means improvements, buildings, structures, signs, sites, landscape features, or other objects within the City of Norco which are of historical or archaeological significance to the citizens of the City of Norco, the State of California, or the nation, which may be determined eligible for designation or designated as a landmark or contributor to a historic preservation overlay zone and determined to be appropriate for preservation by the City Council, or which may be eligible for listing or designation on any State or federal register.

E. “Cultural Resources Administrator” is the City Manager or designee assigned by the City Manager to administer the cultural resources program, including professional support to the Historic Preservation and Agricultural Heritage Commission and the management of both the Certificate of Appropriateness and the Administrative Certificate of Appropriateness process.

F. “Preservation” means and includes the identification, study, protection, restoration, rehabilitation, and/or acquisition of cultural resources. (Ord. 902 Sec. 1, 2008) G. “Stakeholder” is a resident, or person who is employed or owns a business in the City of Norco.

2.26.010 Established—Number of members.

The Historic Preservation and Agricultural Heritage Commission shall consist of seven members. (Ord. 902 Sec. 1, 2008)

2.26.020 Terms of office.

Appointments will be made for four-year terms. Terms will end on July 1st or until a qualified successor is appointed. The City Clerk shall keep a record of dates of appointments and the terms of office of the members. Terms will be staggered every two years to provide continuity on the Commission. (Ord. 902 Sec. 1, 2008)

2.26.030 Appointment of members.

The Mayor and City Council shall appoint Commission members. (Ord. 902 Sec. 1, 2008)

2.26.040 Requirements for membership.

Commission members shall be persons who, as a result of their education, training, knowledge, and experience, are qualified to analyze and interpret architectural and site planning information, including but not limited to licensed landscape architects and architects, urban planners, engineers, and licensed general contractors, as well as individuals qualified by education or experience with specialization in agriculture, biological science or a closely related field. To the extent available in the community, at least two of the members shall have professional experience or academic credentials in urban planning, architectural history or historic preservation, archaeology, American studies or history, cultural geography, or cultural anthropology and at least two of the members shall have professional, education, or personal experience in agriculture, biological science or a closely related field. These minimum professional qualifications may be waived by the City Council pursuant to aggressive outreach efforts failing to produce qualified candidates. All members shall have a general knowledge of architectural styles and agriculture prevalent in Norco. All members of the Historic Preservation and Agricultural Heritage Commission shall meet the following requirements:

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February 1, 2023
A. Be a citizen of the United States.

B. Be at least 18 years of age.

C. Be a stakeholder in the City of Norco.

D. Possess the qualifications as listed in this section.

E. Have taken and filed with the City Clerk the Oath required by Section 36507 of the Government Code.

F. Have never been convicted of a felony. (Ord. 984 Sec. 1, 2015; Ord. 928 Sec. 1, 2011; Ord. 902 Sec. 1, 2008)

2.26.050 Vacancies.

Persons appointed to fill a vacancy shall serve only for the unexpired term of the member whose vacancy they fill. (Ord. 902 Sec. 1, 2008)

2.26.060 Removal from office.

Members of the Commission shall be removed from office or their office declared vacant in the following manner and for any one of the following reasons:

A. Failure to meet any one of the requirements for membership in Section 2.26.040, at which time the removal shall be automatic and no action by the City Council shall be necessary.

B. By a majority vote of the entire City Council.

C. The office of any member of the Commission who misses three successive regular meetings without cause, or five meetings in a 12-month period, including adjourned and special meetings, shall be deemed to be vacant. The City Clerk shall immediately inform the City Council of such vacancy. A written notice to the City Clerk on or before the day of the meeting stating there was an unavoidable absence or an absence due to illness shall be deemed absence for cause.

D. At the end of the member’s term of office, in which event the removal shall be automatic and no action of the City Council is necessary. At the end of the member’s term of office, the Commission member shall continue to serve until the successor’s appointment. (Ord. 902 Sec. 1, 2008)

2.26.070 Organization.

The Commission shall elect a Chair and Vice Chair at their first meeting in July of each year. (Ord. 902 Sec. 1, 2008)

2.26.080 Conduct of meetings.

The Commission shall hold not less than one regular meeting each quarter, such meeting schedules and times to be established by the Commission. Adjourned and special meetings may be called, noticed and held in the manner established by Section 54956 of the California Government Code.

All meetings of the Commission shall be open and public and a majority of the membership shall constitute a quorum for the transaction of business. A public record (minutes) shall be prepared indicating all actions, findings and determinations of the Commission. A written agenda shall be prepared and distributed to Commission members in advance of all regular meetings. Rules of conduct of the meetings shall be determined by the Commission but shall

Ordinance No. 1092 – Amending NMC Chapter 2.26

February 1, 2023
be in accordance with those rules adopted for the conduct of City Council meetings. The Commission constitutes a “legislative body” as described in the California Government Code. (Ord. 902 Sec. 1, 2008)

2.26.090 Duties—Limitations on authority.

The Heritage and Agricultural Preservation Commission shall have the following duties:

A. The Historic Preservation and Agricultural Heritage Commission shall act solely in an advisory capacity to the City Council, through the City Clerk or designee, staff and other City Commissions, in matters affecting the preservation of cultural resources. The Commission shall not exercise any independent final decision-making authority or expend City funds. Actions of the Heritage and Agricultural Preservation Commission shall not be considered actions of the City and shall not be represented as such; B. The Historic Preservation and Agricultural Heritage Commission shall recommend to the City Council, through the City Clerk or designee, the designation of cultural resources, including individual properties and historic preservation overlay zones; C. The Historic Preservation and Agricultural Heritage Commission shall recommend to the City Council the establishment and maintenance of a register of cultural resources within the City, including all pertinent information for each designation; D. The Historic Preservation and Agricultural Heritage Commission shall review and comment on land use, redevelopment, municipal improvement, and other planning matters and programs undertaken by the City, as they relate to cultural resources of the community when so directed by the City Council or City Clerk; E. The Historic Preservation and Agricultural Heritage Commission shall make recommendations to the City Council, through the City Clerk or designee, on the use of various federal, State, local or private funding sources and mechanisms available to promote cultural resource preservation in the City;
F. The Historic Preservation and Agricultural Heritage Commission shall review applications for certificates of appropriateness related to demolition permits for any designated cultural resource within the City of Norco and make recommendations to the City Council, through the City Clerk or designee, including considerations of economic hardship;
G. The Historic Preservation and Agricultural Heritage Commission shall review and make recommendations on applications for development plan approval in compliance with the development code with regard to applications and actions to restore, rehabilitate or alter cultural resources or with regard to any construction within the Historic Preservation Overlay Zone;
H. The Historic Preservation and Agricultural Heritage Commission shall make recommendations to the City Council, through the City Clerk or designee, for recognition of owners of cultural resources who have rehabilitated their property in an exemplary manner;
I. The Historic Preservation and Agricultural Heritage Commission shall recommend the adoption of criteria and conduct or cause to be conducted a continuing comprehensive survey of cultural resources within the boundaries of the City in conformance with the State Office of Historic Preservation survey standards and guidelines, and publicize and periodically update the survey results;
J. The Historic Preservation and Agricultural Heritage Commission shall recommend the

Ordinance No. 1092 – Amending NMC Chapter 2.26

February 1, 2023
adoption of standards, including design guidelines to be used by the City Council and Planning Commission in reviewing applications for permits to rehabilitate, construct, alter, remove, or significantly affect any landmark or property within a historic preservation overlay zone;
K. The Historic Preservation and Agricultural Heritage Commission shall work for the continuing education of the citizens of Norco about the heritage of the City and its cultural resources;
L. The Historic Preservation and Agricultural Heritage Commission shall coordinate its activities with Riverside County, the State of California, and the federal government; M. The Historic Preservation and Agricultural Heritage Commission shall advise the City Council on the acceptance of historic preservation easements, property tax incentives, or other mechanisms for the purpose of cultural resource preservation; N. The Historic Preservation and Agricultural Heritage Commission shall assume any responsibilities and duties as may be assigned to the Commission by the City Council under Certified Local Government provisions of the National Historic Preservation Act of 1966, as amended, including but not limited to cultural resources provisions of the National Environmental Protection Act (NEPA) and California Environmental Quality Act (CEQA);
O. Through the City Clerk or designee, as part of the City’s CEQA review procedures, the Historic Preservation and Agricultural Heritage Commission shall advise appropriate city departments and governmental entities of known cultural resources; assess and advise the City Council whether any proposed project could have an adverse effect on the significance of such cultural resources; and recommend to the City Council appropriate action in compliance with CEQA;
P. The Historic Preservation and Agricultural Heritage Commission shall encourage public participation in the performance of the City of Norco’s historic preservation program and in the nomination of cultural resources to the California Register of Historical Resources and the National Register of Historic Places;
Q. The Historic Preservation and Agricultural Heritage Commission shall recommend the adoption of, make available nomination application and review procedures by which individuals, organizations, property owners, corporate or governmental entities may nominate cultural resources for designation as landmarks or historic preservation overlay zones;
R. The Historic Preservation and Agricultural Heritage Commission shall undertake any other action or activity directed by the City Council. (Ord. 902 Sec. 1, 2008)

2.26.100 Records.

The Historic Preservation and Agricultural Heritage Commission shall keep complete minutes, books and accounts of their meetings on file in the office of the City Clerk. (Ord. 902 Sec. 1, 2008)
SECTION 2: EFFECTIVE DATE:

This Ordinance shall become effective 30 days after final passage thereof.

SECTION 3: SEVERABILITY:

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction,

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February 1, 2023
such decision shall not affect the validity of the remaining portions of the Ordinance. The Council hereby declares that it would have passed this Ordinance, and each section, subsection, sentence, clause, and phrase, hereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases hereof be declared invalid or unconstitutional.

SECTION 4: POSTING: The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall cause the same within 15 days of its passage to be posted at no less than five public places within the City of Norco.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held February 1, 2023.
_____________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
_______________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, Dana Roa, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on January 18, 2023 and thereafter at a regular meeting of said City Council duly held on February 1, 2023, it was duly passed and adopted by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 1, 2023. ______________________
_______________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

6.A.

To: Honorable Mayor and City Council Members
Prepared By: Kelli Newton, Communications Manager
Department: Communications
SUBJECT:

Celebrating the 100th Anniversary of the Creation of the Norco Township RECOMMENDATION:

Provide feedback on recommended opportunities to celebrate the 100th Anniversary of the creation of the Norco Township and allocate $25,000 to the Fiscal Year 2022-2023 Operating Budget to support the recommended celebratory opportunities.

SUMMARY:

At the City Council Regular Meeting of Wednesday, January 18, 2023, Council Member Kevin Bash made a motion to agendize an item at the next regular meeting to discuss the celebration of the 100th Anniversary of the creation of the Norco Township. The motion was approved 5-0. Staff has recommended opportunities to celebrate this significant anniversary.

BACKGROUND:

In January 2022, the Norco City Council took action to formally recognize various national holidays, observances and commemorative days, including the anniversary of the creation of the Norco Township.

Observance Background:

On May 13, 1923, Rex B. Clark officially unveiled his new community called “Norco” and put the first properties up for sale, marking this year (2023) as the 100th Anniversary of the creation of the Norco Township. Clark saw Norco as a refuge for city dwellers and sought to create a community of independent farmers with an economy based on small, self-sustaining farms and ranches. The Los Angeles Times reported, “Despite threatening weather, approximately 5,000 visitors motored to this district….and enjoyed a program which included band concerts, contests of various kinds, speeches and fireworks.” The article noted that an aerial bomb burst at 12:30 p.m., releasing a large American flag as the band played the national anthem.

Celebratory Opportunities:

It is customary for organizations to develop a slogan, design a logo, sell limited edition merchandise and host an event to celebrate a significant anniversary. It is important to note that the anniversary of the creation of a township differs from a city's 'birthday,' also referred to as the anniversary of incorporation. While still historically significant, a township anniversary should celebrate the original inspiration for creating the township.

Slogan: Staff recommends the slogan "A Century Rooted in Rural Living" to pay homage to Norco's agrarian roots and continued dedication to preserving Norco's unique, rural lifestyle.

Logo: Staff recommends retaining a consultant to design a logo that is visually inspired by the aforementioned slogan. The logo would be accompanied by the slogan and would be displayed in conjunction with the City's current brand on print and digital marketing materials for a specific time period.

Merchandise: Staff recommends selling limited edition merchandise (e.g., apparel, cups, pins, etc.) that features the anniversary logo.

Event: Staff recommends hosting a free community event at the Norco Community Center on Saturday, May 13, 2023. To further pay homage to Norco's agrarian roots and the activities held on opening day in Norco, the event could include free ice cream and coffee, games for all ages, a famers market, agricultural demonstrations and live music.

Additionally, the Heritage and Agricultural Preservation Commission could prepare a satellite display of archived photos, documents and relics from this period of Norco's history for public viewing at the event, and prepare a time capsule to be sealed for opening in the future.

Promotion: Staff will create multimedia content using archived video footage to promote the 100th Anniversary via its official communication platforms.

Time Period
Staff recommends recognizing the 100th Anniversary from May 1 - August 31, 2023 (four months). The logo and slogan can be incorporated with summer events, and the limited edition merchandise can be sold during this period.

FISCAL IMPACT:

This event is not included in the Fiscal Year 2022-23 Operating Budget. Staff recommends allocating $25,000 to support the aforementioned celebratory opportunities.

RELATIONSHIP TO STRATEGIC PLAN:

This agenda item is consistent with Strategic Direction #4 Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

6.B.

To: Honorable Mayor and City Council Members
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:

Discuss Pilot Program for Youth Commissioners.

RECOMMENDATION:

Discuss and provide direction on a pilot program for the inclusion of Youth Members on City Committees/Commissions.

SUMMARY:

City Council to discuss and provide direction on the creation of a pilot program to include Youth Commissioners to City Committees/Commissions
BACKGROUND:

At the December 7, 2022 City Council meeting Council Member Katherine Aleman proposed a discussion of adding youth commission seats to our current Committee/Commissions. At the December 21, 2022 City Council meeting the City Council discussed various options regarding this, and asked that staff bring back information on a possible pilot program to include Youth Commissioners to City Committees/Commissions.

At this time a pilot program that starts with a single, advisory Youth Commissioner on the Planning Commission and a single, advisory Youth Commissioner on the Parks and Recreation Commission may be an appropriate starting point. The following outline of a program is suggested for the Council's consideration and further discussion:

Applicant Requirements:
• Must be a Norco resident.
• Must be 12-21 years of age.
• Must watch or attend a Commission meeting prior to appointment and have an understanding of the Commissions' mission.

Recruitment process:
• The open youth seat/s on City Committees/Commissions will be advertised utilizing multiple types of advertising, social media and networking opportunities. • Applicants for youth seats will complete a written application, from which the candidates will be appointed. The Council should discuss the preferred method for appointment; selection could be made by the Mayor, a Council ad-hoc committee, or by a panel of city staff.

Responsibilities and roles:
• Commissioners are expected to attend meetings, except for cases of emergency, in which case the youth member should alert the City Clerk of their absence prior to the meeting; and are expected to stay for the entirety of their Commission's meeting. Youth Commissioner attendance will not count towards the quorum necessary to conduct the business meeting.
• Youth members are expected to clearly communicate opinions on topics and cast an advisory vote.
• Youth members are expected to read through all materials and stay updated on current topics, and to attend all events in which their respective Commission is concerned.
• Youth members will remain respectful, professional, and engaged while serving as representatives of the Commission.
• Youth members will receive the same stipend for serving as other members of their commission. All other policies applicable to commissioners will apply to Youth Commissioners, such as volunteer policies, social media policy, and ethics policy.

Term of Office:
• Youth members will serve a two year, non-renewable term, to allow for turnover in the position.

During the two-year pilot program, communication with staff, the Youth Commissioner and Commission Chairs will take place on a regular basis to gather feedback on the program. At the end of the two-year pilot program staff will return to City Council with an updated report on the status of the program and consideration of continuance and/or expansion.

With the approval of this program by City Council, city staff will implement this as the Youth Commissioner Program. No Resolution or Ordinance will be needed.

FISCAL IMPACT:

Not applicable at this time.

RELATIONSHIP TO STRATEGIC PLAN:

Strategic Plan #4: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney

City Council

STAFF REPORT
Date: February 1, 2023 Agenda Item:

7.A.

To: Honorable Mayor and City Council Members
Prepared By: Alma Robles, Planning Director
Department: Planning
SUBJECT:

Continued Public Hearing: An Ordinance of the City of Norco to amend Norco Municipal Code Section 18.30.46 – “Accessory Dwelling Units and Junior Accessory Dwelling Units” to address development standards for compliance with new State Law. Zone Code Amendment 2022-05.

RECOMMENDATION:

Adopt Ordinance No. 1093, First Reading: Amending Norco Municipal Code (NMC) Section 18.30.46 “Accessory Dwelling Units and Junior Accessory Dwelling Units” to address development standards for compliance with new State Law standards. Zone Code Amendment 2022-05.

SUMMARY:

Zone Code Amendment (ZCA) 2022-05 was presented to the City Council at their meeting held on January 18, 2023. The ordinance was not adopted but continued to the meeting of February 1, 2023 with direction that the section in the Accessory Dwelling Unit (ADU) Ordinance addressing the required animal keeping area be revised to preserve these areas and the access to the areas.

BACKGROUND:

New State-enacted housing laws revising Government Code Section 65852.2 and 65852.22, which regulate accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”) became effective January 1, 2023, including AB 2221 and SB 897. Any existing ordinances not in compliance by the effective date would be rendered null and void.

Because a Zone Code Amendment to reflect the new State laws would not be in effect prior to January 1, 2023, an Urgency Ordinance was approved and adopted by the City Council on December 7, 2022. The Urgency Ordinance became effective immediately and will remain in place until a Zone Code Amendment is approved to formally codify the contents of the Urgency Ordinance into the NMC.

ZCA 2022-05 was drafted to reflect the contents of the Urgency Ordinance, and presented to the Planning Commission at their meeting on December 14, 2022. The Planning Commission recommended approval of ZCA 2022-05, with the recommendation that the definition for "Public Transit/Transit Stop" be amended to specifically state that private rideshares or scooter (i.e. E-Scooters) pick-ups and drop-offs are not included in the definition. The requirement for parking can be waived if an ADU is within one-half walking distance of public transit. The Commission wanted to make sure the definition of public transit was more specific to prevent "loop-holes" in the waiver of parking requirements for ADUs.

ZCA 2022-05 was presented to the City Council at their meeting held on January 18, 2023. The ordinance was continued with direction that the verbiage in the Accessory Dwelling Unit (ADU) Ordinance addressing the required animal keeping area be revised, primarily to preserve these areas and the access to the areas. To address this concern, staff is recommending that Section 18.30.46, E.19 be amended to read as follows (new verbiage is in red and text to be eliminated is crossed out):

19. Animal Area Required. To preserve the health, welfare and safety of large and small animals, the location of the accessory dwelling unit must preserve the recorded Primary Animal Keeping Area (PAKA). For lots that do not have a recorded PAKA, the proposed location of the accessory dwelling unit building must preserve an open animal area equal to 576 square feet multiplied by the allowed number of animal units (au) on the property (e.g., 576 x 5 au = 2,880 square feet open animal area). unless such precludes the construction of an 800-square-foot ADU which shall be allowed to encroach to the minimum extent possible. To preserve the health, welfare and safety of the animals in case of an emergency, a minimum 12-foot wide (or as required in the underlying zone, whichever is more) access way shall be maintained to the required animal area or existing PAKA.

Attached Exhibit "A" provides a redline of the NMC Section 18.30.46 to show details of all the changes (consistent with the Urgency Ordinance and also includes the recommendations of the Planning Commission and the proposed change noted above).

Attached Ordinance 1093 provides the clean version of what will be codified with the approval of ZCA 2022-05. Following adoption of the ordinance after the second reading, it will be submitted to the Department of Housing and Community Development (HCD) for review.

California Environmental Quality Act (CEQA): The adoption of the proposed Zone Code Amendment is exempt from review under CEQA pursuant to its Guidelines Sections 15060(c)(2), the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and 15061(b)(3), there is no possibility the activity in question may have a significant effect on the environment.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Exhibit A
Ordinance No. 1093

Exhibit “A”
Existing Norco Municipal Code with
Changes

New verbiage is in red and verbiage that has been
removed has a strike through (which are consistent with the Urgency Ordinance) and Planning Commission’s
additional recommendations are in blue

18.30.46 Accessory Dwelling Units and Junior Accessory Dwelling Units.

A. Intent and Purpose. This section is intended to provide for the creation of accessory dwelling units and junior accessory dwelling units as accessory uses to existing single-family dwellings that meet the intent of State regulations regarding accessory dwelling units while maintaining the rural and low-density character of Norco’s residential neighborhoods and that such dwelling units do not adversely impact surrounding residents or the community. This section is intended to retain the maximum ability of the City to regulate accessory dwelling units and to comply with the requirements of State law.

B. Definition. For the purposes of this section the following definitions shall apply:

1. “Accessory dwelling unit (ADU)” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an “efficiency unit” and a manufactured home as defined in Section 18007 of the State Health and Safety Code.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

2. 3. “Efficiency unit” means a unit for occupancy by no more than two persons which has a minimum floor area of 150 square feet, and which may also have partial kitchen or bathroom facilities.

3.4. “Junior accessory dwelling unit (JADU)” means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure.

5. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

6. “Neighborhood” has the same meaning as set forth in Section 65589.5.

Exhibit “A”
Existing Norco Municipal Code with
Changes

7. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

8. “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

9. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

10. “Public transit/Transit Stop” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. A Public transit/Transit Stop does not include private rideshares and scooter (i.e. E-Scooters) pick-ups and drop-offs.

11. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

C. Occupancy. Except as otherwise provided by law, accessory dwelling units and junior accessory dwelling units may be rented separate from the primary residence for a minimum period of 30 days, but may not be sold or otherwise conveyed separate from the primary residence.

D. Application for Accessory Dwelling Unit and Junior Accessory Dwelling Unit.

1. Accessory review procedures dwelling units and junior accessory dwelling units, where permitted, are subject to the issuance of a building permit. Any application for an accessory dwelling unit that meets the unit size standards and development standards of this section shall be approved ministerially by applying the standards herein and without a public hearing.

2. An application for an accessory dwelling unit or junior accessory dwelling unit permit shall be made by the owner of the parcel on which the primary unit sits and shall be filed on a City-approved application form (a building permit application) and subject to the established fee set by City Council resolution as it may be amended from time to time.

3. Applications for an accessory dwelling unit or junior accessory dwelling unit shall conform to the requirements for, and shall obtain, a building permit consistent with the California Building Code.

4. An application to create or serve an accessory dwelling unit or a junior accessory dwelling unit shall either be approved or denied within 60 days from the date the City receives a completed application if there is an existing single-family or

Exhibit “A”
Existing Norco Municipal Code with
Changes

multifamily dwelling on the lot. If the application to create or serve an accessory dwelling unit is submitted in conjunction with an application to create a new single-family or multifamily dwelling unit on the lot, the City may delay approving or denying the application for the accessory dwelling unit until the City approves or denies the application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the sixty-day time period shall be tolled for the period of the agreed-upon delay. If the City has not approved or denied the completed application within 60 days, the application shall be deemed approved.

5. Denial of an ADU application shall be accompanied with a full set of comments listing the specific items that are defective or deficient. These comments shall also describe how the application can be remedied by the applicant. An application to create an ADU shall not be denied solely because corrections are needed to address nonconforming zoning conditions, building code violations, or unpermitted structures elsewhere on a lot that do not present a threat to public health and safety and are not affected by the construction of the ADU.

6. A demolition permit for a detached garage that is to be replaced with an ADU shall be reviewed with the ADU application and issued at the same time. The permit applicant shall not be required to provide a written notice or posted placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.

E. Accessory Dwelling Units—Development Requirements.

1. Unit Size Standards. All accessory dwelling units shall not exceed the size standards listed below.
a. Attached Accessory Dwelling Units. Maximum floor area for an accessory dwelling unit shall be the higher of: with zero to one bedrooms, 850 square feet; two bedrooms, 1,000 square feet. If the accessory unit is created from converting existing space in the primary accessory structure, there is no size limitation.
b. Detached Accessory Dwelling Units. Not more than 1,200 square feet of living area.

2. Setback and Lot Coverage Requirements.
a. No setbacks are required for those portions of accessory dwelling units that are created by converting existing living area or existing accessory buildings to new accessory dwelling units. No setbacks are required when constructing

Exhibit “A”
Existing Norco Municipal Code with
Changes

new accessory dwelling units in the same location and to the same dimensions as an existing building.
b. For all other accessory dwelling units, there must be a minimum of four feet to side and rear lot lines.
c. The required minimum distance between a detached accessory dwelling unit and all other buildings shall be 10 feet.
d. All existing and proposed buildings including an accessory unit shall not exceed the lot coverage requirement of the underlying zone. This shall not apply to accessory dwellings of 800 square feet or less.
e. An ADU shall not be allowed in any portion of the front yard setback area but must yield to the extent necessary to enable the construction of an 800 square foot ADU with four-foot side- and rear-yard setbacks.

3. The lot upon which the accessory dwelling unit shall be allowed must contain a legal single-family or multifamily residence as an existing or proposed primary unit on the lot.

4. Accessory dwelling units are accessory to the primary dwelling. For multifamily residential dwellings, the project plans and application shall clearly identify the unit the proposed accessory dwelling unit is accessory to. Detached accessory dwelling units shall be assigned an address separate from that of the primary dwelling unit.

5. Number of Accessory Dwelling Units per Lot.
a. For lots with proposed or existing single-family residence: one accessory dwelling unit provided the lot contains no other accessory dwelling unit. The lot may contain one junior accessory dwelling unit in addition to an accessory dwelling unit.
b. Except as provided in Government Code Sections 65852.2(a) and (e), for lots with existing multifamily residential dwellings: no more than 25 percent of the number of existing units, but at least one unit shall be permitted as accessory dwelling units constructed within the nonlivable space (e.g., storage rooms, boiler rooms, hallways, attics, basements or garages) of the existing multifamily building structure; provided, that applicable building codes are met; or, no more than two detached accessory dwelling units; provided, that no such unit shall be more than 16 18 feet in height, and each such unit complies with front yard setbacks and meets rear yard and side yard setbacks of four feet. The maximum square footage of detached accessory dwelling units on lots with existing multifamily residential dwellings shall comply with the limits calculated

Exhibit “A”
Existing Norco Municipal Code with
Changes

pursuant to Section 18.17.14 (Lot Area Per Dwelling Unit). In no event shall less than 5,445 square feet of lot area per dwelling unit be provided.

6. Except as otherwise provided in this section, accessory dwelling units shall comply with all development requirements for new single-family dwelling units as specified for the land use district in which they are located, including, but not limited to, total maximum lot coverage, subject to the provisions of subsection (E)(2)(d) of this section. Setback requirements shall be per this section. Height requirements shall be per subsection (E)(15)(b) of this section. Notwithstanding such, the correction of a nonconforming zoning condition may not be required as a condition of permit approval.

7. All new accessory dwelling units must comply with California Building Code standards as adopted in Title 15 including fire sprinklers, unless not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling, provided the additional square footage of an attached ADU does not exceed the threshold to require fire sprinklers. Accessory dwelling units shall not be constructed on utility and flowage easements. Accessory dwelling units shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this clause shall be interpreted to prevent a local agency the City from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section.

8. The accessory dwelling unit shall be architecturally compatible with the primary dwelling.

9.8. The accessory dwelling unit shall be provided with parking that is in addition to that required for the main dwelling. Parking for the main dwelling is pursuant to Chapter 18.38 (Off-Street Parking and Loading). Parking for accessory dwelling units shall be as listed below.
a. Parking spaces for an accessory dwelling unit shall be nine feet by 20 feet and are not required to be covered or within a garage.
b. The number of required spaces for the accessory dwelling unit shall be equal to one space per unit, except there is no parking requirement for an accessory dwelling unit that has no bedrooms (e.g., a studio).

Exhibit “A”
Existing Norco Municipal Code with
Changes

c. Parking can be provided in tandem in the existing driveway of the primary dwelling provided it does not encroach onto a public trail or sidewalk and otherwise complies with City parking requirements. Parking is not allowed within in the required front or side yard setbacks unless if it is within the existing driveway of the primary dwelling. unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions d. The parking space requirement is waived if the location of the accessory dwelling unit is within one-half mile of a public transit bus stop. e. There is no parking requirement if an accessory dwelling unit is part of a proposed or existing primary residence.
d. Parking requirements will not be imposed in any of the following instances and upon verifiable proof of the applicant:
(i.) The accessory dwelling unit is located within one-half mile walking distance of public transit. For the purposes of this section “public transit” shall include any bus stop.
(ii.) The accessory dwelling unit is located within an architecturally and historically significant historic district.
(iii.) The accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
(iv.) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(v.) When there is a designated, fixed pick-up or drop-off location for a car share vehicle located within one block of the accessory dwelling unit. (vi.) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in Section (d). f.e. When a garage, carport, or covered parking structure or an existing accessory dwelling is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, those off-street parking spaces do not have to be replaced.
10 9. Siting. Subject to the setback requirements of subsection (E)(2) of this section a detached accessory dwelling unit may not be located within the area between front property line and the line parallel to, and touching, the back of the

Exhibit “A”
Existing Norco Municipal Code with
Changes

primary residence. On a corner lot the unit may not be located in the side yard adjacent to the street within the area between the street side property line and a line parallel to the most distant part of the primary dwelling. A converted accessory unit, or an accessory unit created under Government Code Section 65852.2(e)(1)(B), is not subject to the siting limitations.
11 10. Exterior Entrance. There shall not be more than one exterior entrance on the front or on any street side of the building and no exterior stairway shall be located on the front of the primary dwelling, where feasible. 12 11. Wall and/or Fence Requirement. A wall or fence meeting at least the minimum State standards shall be constructed and maintained along that portion of a side or rear yard boundary where an accessory dwelling unit is closer than five feet to the boundary, subject to the issuance of a building permit as needed. 13 12. Windows and doors are permitted along walls adjacent to the side or rear property lines in compliance with State standards.
14 13. Conversion of Existing Primary Dwelling Unit. An existing primary dwelling unit may be converted to an accessory dwelling unit if it complies with all applicable requirements of this section.
1514. Objective Design Criteria. All new accessory dwelling units (not converted from an existing structure and where no change to the exterior of an existing building are needed other than windows and doors) must comply with the following design requirements:
a. The exterior materials (i.e. stucco on the main house will require a stucco exterior on the accessory dwelling unit), colors, roof pitch and architecture shall match the primary unit.
b. Accessory dwelling units shall not exceed 16 feet in height at peak from finished floor.
b. The maximum height of an accessory dwelling unit shall be as follows:
(i.) A detached ADU shall not exceed 16 feet in height measured from finished floor to the tallest roof peak.
(ii.) When an ADU is located within a half-mile of a major transit stop or high-quality transit corridor, a detached ADU that is on a lot with a single-family or multifamily dwelling may be up to 18 feet in height, and the ADU may be up to two feet taller (for a maximum of 20 feet) if necessary to match the roof pitch of the ADU to that of the main house. (iii.) If a detached ADU is on a lot with an existing or proposed multistory multifamily dwelling, the ADU may be up to 18 feet in height (measured from finished floor to the tallest roof peak), regardless of how close it is to transit.

Exhibit “A”
Existing Norco Municipal Code with
Changes

(iv.) An attached ADU shall not exceed a height of 25 feet (measured from finished floor to the tallest roof peak) or the height of the primary dwelling whichever is lower, but in no case shall the ADU exceed two stories. c. Any attached accessory dwelling unit shall be attached to the living area of the primary dwelling unit by a common wall or floor/ceiling, or by an attached breezeway, porch, or patio.
16 15. An accessory dwelling unit shall not be considered a new residential unit for purposes of calculating connection fees or capacity fees for water and sewer services. Attached accessory dwelling units are not required to be metered separately from the primary dwelling for any City utility or other public utility.

Detached accessory dwelling units are required to be metered separately from the primary dwelling for water services. No new private wastewater disposal systems shall be permitted for accessory dwelling units. For accessory dwelling units proposed on lots with existing septic systems, the existing septic system shall be expanded to accommodate the accessory dwelling unit unless sewer service is available within 200 feet of the property line. Where sewer service is available within 200 feet of the property line, one sewer connection to serve both units shall be installed prior to the issuance of an occupancy permit for the accessory dwelling unit.
1716. Notwithstanding Chapter 18.44, there shall be no variance or exemption granted from the requirements contained in this section. 1817. Subject to the requirements of Health and Safety Code Section 17890.12, this section shall not validate any existing illegal unit. 1918. The accessory dwelling unit shall be assessed all applicable building permit and development impact fees.
a. Accessory dwelling units up to 750 square feet are exempt from impact fees.
b. Accessory dwelling units 750 square feet or greater are subject to impact fees that are proportional to the relationship of the accessory dwelling unit to the primary dwelling.
2019. Animal Area Required. To preserve the health, welfare and safety of large and small animals, the location of the accessory dwelling unit must preserve the recorded Primary Animal Keeping Area (PAKA). For lots that do not have a recorded PAKA, the proposed location of the accessory dwelling unit building must preserve an open animal area equal to 576 square feet multiplied by the allowed number of animal units (au) on the property (e.g., 576 x 5 au = 2,880 square feet open animal area). unless such precludes the construction of an 800-square-foot

Exhibit “A”
Existing Norco Municipal Code with
Changes

ADU which shall be allowed to encroach to the minimum extent possible. To preserve the health, welfare and safety of the animals in case of an emergency, a minimum 12-foot wide (or as required in the underlying zone, whichever is more) access shall be maintained to the required animal area or existing PAKA.

20. No development standard regarding a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings, shall apply that would not permit at least a new eight hundred square foot, sixteen foot tall accessory dwelling unit with at least four-foot side and rear setbacks.

F. Junior Accessory Dwelling Units—Development Requirements.

1. Junior accessory units will be constructed within the walls of an existing or proposed single-family residence and require owner occupancy in the single-family residence where the unit is located. Enclosed uses within a residence, such as attached garages, are considered part of the existing or proposed single-family residence.

2. A junior accessory dwelling unit shall not exceed 500 square feet in size.

3. Owner Occupancy. The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling. Owner occupancy is not required if the owner is a governmental agency, land trust, or “housing organization” as that term is defined in Government Code Section 65589.5(k)(2), as that section may be amended from time to time.

4. Sale Prohibited. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel.

5. Short-Term Rentals. The junior accessory dwelling unit shall not be rented for periods of 30 days or less.

6. Location of Junior Accessory Dwelling Unit. A junior accessory dwelling unit shall be entirely within a single-family residence. A junior accessory dwelling unit shall have an interior entry to the primary dwelling’s main living area, independent of an exterior entrance of the junior accessory and primary dwelling.

7. Kitchen Requirements. The junior accessory dwelling unit shall include an efficiency kitchen, including a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

Exhibit “A”
Existing Norco Municipal Code with
Changes

8. Parking. No additional parking is required beyond that already required for the primary dwelling.

9. Fire Protection—Utility Service. For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit, unless the junior accessory dwelling unit was constructed in conjunction with a new single-family dwelling. No separate connection between the junior accessory dwelling unit and the utility shall be required for units created within a single-family dwelling, unless the junior accessory dwelling unit is being constructed in connection with a new single-family dwelling.

G. Codes, Covenants, and Restrictions (CC&Rs). CC&Rs that either effectively prohibit or unreasonably restrict the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use are void and unenforceable.

H. Finding. The following finding shall be made in order to approve an accessory dwelling unit or junior accessory dwelling permit:

1. The accessory dwelling unit or junior accessory dwelling unit is compatible with the design of the main dwelling unit in terms of height, architectural style, and exterior treatment.

IH. Compliance with General Plan. An accessory dwelling unit and/or junior accessory dwelling unit which conforms to the standards of this section shall not be considered to exceed the allowable density for the lot upon which it is located and shall be deemed to be a residential use which is consistent with the existing General Plan and land use designation for the lot.

ORDINANCE NO. 1093

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO
AMENDING SECTION 18.30.46 “ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS” OF THE NORCO MUNICIPAL

CODE (NMC) TO ADDRESS DEVELOPMENT STANDARDS FOR
COMPLIANCE WITH STATE LAW. ZONE CODE AMENDMENT 2022-05
WHEREAS, the CITY OF NORCO initiated Zone Code Amendment 2022-05, a proposal to amend Section18.30.46 to Norco Municipal Code Title 18 (Zoning Code), Chapter

18.30 relating to Accessory Dwelling Units (ADUs); and
WHEREAS, the Zone Code Amendment was duly submitted to said City’s Planning Commission for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on December 14, 2022 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the Planning Commission held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the Planning Commission adopted Resolution No. 2022-16 recommending that the City Council adopt the Zone Code Amendment; and WHEREAS, the Zone Code Amendment was duly submitted to said City’s City Council for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on January 18, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, said Zone Code Amendment was continued to the City Council meeting of February 1, 2023; and
WHEREAS, the City of Norco acting as the Lead Agency has determined in accordance with California Environmental Quality Act (CEQA) and the City of Norco Environmental Guidelines that project is exempt from CEQA.

NOW, THEREFORE, the City Council of the City of Norco, California, does hereby make the following FINDINGS AND DETERMINATION:

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

I. FINDINGS.

A. The proposed Zone Code Amendment is necessary for compliance with the new revisions to Government Code Sections 65852.2 and 65852.22 including AB 2221 and SB 897 pertaining to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs).

B. The proposed Zone Code Amendment is necessary to ensure and maintain internal consistency with all of the objectives, policies, general land uses, programs, and actions of all elements of the General Plan. None of the amendments conflict with current General Plan policies, objectives or programs.

C. The proposed amendments are necessary in order to preserve the residential character of single-family residential neighborhoods, and will not be detrimental to the public convenience, health, safety, or general welfare of the City because the amendments will maintain existing standard in place along with new regulations for compliance with State Law, thus maintaining order and consistency among residential zones.

D. Pursuant to CEQA Guidelines (California Code of Regulations, §§ 15000 et seq.) Section 15061(b)(3), it can be seen with certainty that there is no possibility that the adoption and implementation of this Zone Code Amendment will have a significant effect on the environment, and per Section 15060(c) (2) it can be seen certainty that this Zone Code Amendment will not result in a direct or reasonably foreseeable indirect physical change in the environment as defined by the California Environmental Quality Act ("CEQA") (Public Resources Code § 21000 et seq.) and the City's Guidelines for Implementation of CEQA.

II. DETERMINATION:

NOW THEREFORE, the City Council of the City of Norco, California does hereby amend and approve NMC Section 18.30.46 “Accessory Dwelling Units and Junior Accessory Dwelling Units” in its entirety to read as follows
SECTION 1:

18.30.46 Accessory Dwelling Units and Junior Accessory Dwelling Units.

A. Intent and Purpose. This section is intended to provide for the creation of accessory dwelling units and junior accessory dwelling units as accessory uses to existing singlefamily dwellings that meet the intent of State regulations regarding accessory dwelling units while maintaining the rural and low-density character of Norco’s residential

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

neighborhoods and that such dwelling units do not adversely impact surrounding residents or the community. This section is intended to retain the maximum ability of the City to regulate accessory dwelling units and to comply with the requirements of State law.

B. Definition. For the purposes of this section the following definitions shall apply:

1. “Accessory dwelling unit (ADU)” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an “efficiency unit” and a manufactured home as defined in Section 18007 of the State Health and Safety Code.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.

3. “Efficiency unit” means a unit for occupancy by no more than two persons which has a minimum floor area of 150 square feet, and which may also have partial kitchen or bathroom facilities

4. Junior accessory dwelling unit (JADU)” means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure.

5. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

6. “Neighborhood” has the same meaning as set forth in Section 65589.5.

7. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

8. “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.

9. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

10. “Public transit/Transit Stop” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

of transportation that charge set fares, run on fixed routes, and are available to the public. A Public transit/Transit Stop does not include private rideshares and scooter (i.e. E-Scooters) pick-ups and drop-offs.

11. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

C. Occupancy. Except as otherwise provided by law, accessory dwelling units and junior accessory dwelling units may be rented separate from the primary residence for a minimum period of 30 days, but may not be sold or otherwise conveyed separate from the primary residence.

D. Application review procedures for Accessory Dwelling Unit and Junior Accessory Dwelling Unit.

1. Accessory dwelling units and junior accessory dwelling units, where permitted, are subject to the issuance of a building permit. Any application for an accessory dwelling unit that meets the unit size standards and development standards of this section shall be approved ministerially by applying the standards herein and without a public hearing.

2. An application for an accessory dwelling unit or junior accessory dwelling unit permit shall be made by the owner of the parcel on which the primary unit sits and shall be filed on a City-approved application form (a building permit application) and subject to the established fee set by City Council resolution as it may be amended from time to time.

3. Applications for an accessory dwelling unit or junior accessory dwelling unit shall conform to the requirements for, and shall obtain, a building permit consistent with the California Building Code.

4. An application to create or serve an accessory dwelling unit or a junior accessory dwelling unit shall either be approved or denied within 60 days from the date the City receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the application to create or serve an accessory dwelling unit is submitted in conjunction with an application to create a new single-family or multifamily dwelling unit on the lot, the City may delay approving or denying the application for the accessory dwelling unit until the City approves or denies the application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the sixty-day time period shall be tolled for

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

the period of the agreed-upon delay. If the City has not approved or denied the completed application within 60 days, the application shall be deemed approved.

5. Denial of an ADU application shall be accompanied with a full set of comments listing the specific items that are defective or deficient. These comments shall also describe how the application can be remedied by the applicant. An application to create an ADU shall not be denied solely because corrections are needed to address nonconforming zoning conditions, building code violations, or unpermitted structures elsewhere on a lot that do not present a threat to public health and safety and are not affected by the construction of the ADU.

6. A demolition permit for a detached garage that is to be replaced with an ADU shall be reviewed with the ADU application and issued at the same time. The permit applicant shall not be required to provide a written notice or posted placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.

E. Accessory Dwelling Units - Development Requirements.

1. Unit Size Standards. All accessory dwelling units shall not exceed the size standards listed below.
a. Attached Accessory Dwelling Units. Maximum floor area for an accessory dwelling unit shall be the higher of: with zero to one bedroom, 850 square feet; two bedrooms, 1,000 square feet. If the accessory unit is created from converting existing space in the primary accessory structure, there is no size limitation. b. Detached Accessory Dwelling Units. Not more than 1,200 square feet of living area.

2. Setback and Lot Coverage Requirements.
a. No setbacks are required for those portions of accessory dwelling units that are created by converting existing living area or existing accessory buildings to new accessory dwelling units. No setbacks are required when constructing new accessory dwelling units in the same location and to the same dimensions as an existing building.
b. For all other accessory dwelling units, there must be a minimum of four feet to side and rear lot lines.
c. The required minimum distance between a detached accessory dwelling unit and all other buildings shall be 10 feet.

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

d. All existing and proposed buildings including an accessory unit shall not exceed the lot coverage requirement of the underlying zone. This shall not apply to accessory dwellings of 800 square feet or less.
e. An ADU shall not be allowed in any portion of the front yard setback area but must yield to the extent necessary to enable the construction of an 800 square foot ADU with four-foot side- and rear-yard setbacks.

4. The lot upon which the accessory dwelling unit shall be allowed must contain a legal single-family or multifamily residence as an existing or proposed primary unit on the lot.

5. Accessory dwelling units are accessory to the primary dwelling. For multifamily residential dwellings, the project plans and application shall clearly identify the unit the proposed accessory dwelling unit is accessory to. Detached accessory dwelling units shall be assigned an address separate from that of the primary dwelling unit.

6. Number of Accessory Dwelling Units per Lot.
a. For lots with proposed or existing single-family residence: one accessory dwelling unit provided the lot contains no other accessory dwelling unit. The lot may contain one junior accessory dwelling unit in addition to an accessory dwelling unit. b. Except as provided in Government Code Sections 65852.2(a) and (e), for lots with existing multifamily residential dwellings: no more than 25 percent of the number of existing units, but at least one unit shall be permitted as accessory dwelling units constructed within the non-livable space (e.g., storage rooms, boiler rooms, hallways, attics, basements or garages) of the existing multifamily building structure; provided, that applicable building codes are met; or, no more than two detached accessory dwelling units; provided, that no such unit shall be more than 18 feet in height, and each such unit complies with front yard setbacks and meets rear yard and side yard setbacks of four feet. The maximum square footage of detached accessory dwelling units on lots with existing multifamily residential dwellings shall comply with the limits calculated pursuant to Section 18.17.14 (Lot Area Per Dwelling Unit). In no event shall less than 5,445 square feet of lot area per dwelling unit be provided.

7. Except as otherwise provided in this section, accessory dwelling units shall comply with all development requirements for new single-family dwelling units as specified for the land use district in which they are located, including, but not limited to, total maximum lot coverage, subject to the provisions of subsection (E)(2)(d) of this section.

Setback requirements shall be per this section. Height requirements shall be per

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

subsection (E)(15)(b) of this section. Notwithstanding such, the correction of a nonconforming zoning condition may not be required as a condition of permit approval.

8. All new accessory dwelling units must comply with California Building Code standards as adopted in Title 15 including fire sprinklers, unless not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling, provided the additional square footage of an attached ADU does not exceed the threshold to require fire sprinklers. Accessory dwelling units shall not be constructed on utility and flowage easements. Accessory dwelling units shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this clause shall be interpreted to prevent a local agency the City from changing the occupancy code of a space that was inhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section.

9. The accessory dwelling unit shall be provided with parking that is in addition to that required for the main dwelling. Parking for the main dwelling is pursuant to Chapter

18.38 (Off-Street Parking and Loading). Parking for accessory dwelling units shall be as listed below:
a. Parking spaces for an accessory dwelling unit shall be nine feet by 20 feet and are not required to be covered or within a garage.
b. The number of required spaces for the accessory dwelling unit shall be equal to one space per unit, except there is no parking requirement for an accessory dwelling unit that has no bedrooms (e.g., a studio).
c. Parking can be provided in tandem in the existing driveway of the primary dwelling provided it does not encroach onto a public trail or sidewalk and otherwise complies with City parking requirements. Parking is allowed in the required front or side yard setbacks if it is within the existing driveway of the primary dwelling unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. d. Parking requirements will not be imposed in any of the following instances and upon verifiable proof of the applicant:

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

(i.) The accessory dwelling unit is located within one-half mile walking distance of public transit. For the purposes of this section “public transit” shall include any bus stop.
(ii.) The accessory dwelling unit is located within an architecturally and historically significant historic district.
(iii.) The accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
(iv.) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(v.) When there is a designated, fixed pick-up or drop-off location for a car share vehicle located within one block of the accessory dwelling unit. (vi.) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in Section (d). e. When a garage, carport, or covered parking structure or an existing accessory dwelling is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, those off-street parking spaces do not have to be replaced.

10.Siting. Subject to the setback requirements of subsection (E)(2) of this section a detached accessory dwelling unit may not be located within the area between front property line and the line parallel to, and touching, the back of the primary residence.

On a corner lot the unit may not be located in the side yard adjacent to the street within the area between the street side property line and a line parallel to the most distant part of the primary dwelling. A converted accessory unit, or an accessory unit created under Government Code Section 65852.2(e)(1)(B), is not subject to the siting limitations.

11.Exterior Entrance. There shall not be more than one exterior entrance on the front or on any street side of the building and no exterior stairway shall be located on the front of the primary dwelling, where feasible.

12.Wall and/or Fence Requirement. A wall or fence meeting at least the minimum State standards shall be constructed and maintained along that portion of a side or rear yard boundary where an accessory dwelling unit is closer than five feet to the boundary, subject to the issuance of a building permit as needed.

13.Windows and doors are permitted along walls adjacent to the side or rear property lines in compliance with State standards.

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

14.Conversion of Existing Primary Dwelling Unit. An existing primary dwelling unit may be converted to an accessory dwelling unit if it complies with all applicable requirements of this section.

15.Objective Design Criteria. All new accessory dwelling units (not converted from an existing structure and where no change to the exterior of an existing building are needed other than windows and doors) must comply with the following design requirements:
a. The exterior materials (i.e. stucco on the main house will require a stucco exterior on the accessory dwelling unit), colors, roof pitch and architecture style shall match the primary unit.
b. The maximum height of an accessory dwelling unit shall be as follows:
(i.) A detached ADU shall not exceed 16 feet in height measured from finished floor to the tallest roof peak.
(ii.) When an ADU is located within a half-mile of a major transit stop or highquality transit corridor, a detached ADU that is on a lot with a single-family or multifamily dwelling may be up to 18 feet in height, and the ADU may be up to two feet taller (for a maximum of 20 feet) if necessary to match the roof pitch of the ADU to that of the main house.
(iii.) If a detached ADU is on a lot with an existing or proposed multistory multifamily dwelling, the ADU may be up to 18 feet in height (measured from finished floor to the tallest roof peak), regardless of how close it is to transit.
(iv.) An attached ADU shall not exceed a height of 25 feet (measured from finished floor to the tallest roof peak) or the height of the primary dwelling whichever is lower, but in no case shall the ADU exceed two stories. c. Any attached accessory dwelling unit shall be attached to the living area of the primary dwelling unit by a common wall or floor/ceiling, or by an attached breezeway, porch, or patio.

16.An accessory dwelling unit shall not be considered a new residential unit for purposes of calculating connection fees or capacity fees for water and sewer services. Attached accessory dwelling units are not required to be metered separately from the primary dwelling for any City utility or other public utility. Detached accessory dwelling units are required to be metered separately from the primary dwelling for water services. No new private wastewater disposal systems shall be permitted for accessory dwelling units. For accessory dwelling units proposed on lots with existing septic systems, the existing septic system shall be expanded to accommodate the accessory dwelling unit unless sewer service is available within 200 feet of the property line. Where sewer

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

service is available within 200 feet of the property line, one sewer connection to serve both units shall be installed prior to the issuance of an occupancy permit for the accessory dwelling unit.

17.Notwithstanding Chapter 18.44, there shall be no variance or exemption granted from the requirements contained in this section.

18.Subject to the requirements of Health and Safety Code Section 17890.12, this section shall not validate any existing illegal unit.

19.The accessory dwelling unit shall be assessed all applicable building permit and development impact fees.
a. Accessory dwelling units up to 750 square feet are exempt from impact fees. b. Accessory dwelling units 750 square feet or greater are subject to impact fees that are proportional to the relationship of the accessory dwelling unit to the primary dwelling.

20.Animal Area Required. To preserve the health, welfare and safety of large and small animals, the location of the accessory dwelling unit must preserve the recorded Primary Animal Keeping Area (PAKA). For lots that do not have a recorded PAKA, the proposed location of the accessory dwelling unit must preserve an open animal area equal to 576 square feet multiplied by the allowed number of animal units (au) on the property (e.g., 576 x 5 au = 2,880 square feet open animal area). To preserve the health, welfare and safety of the animals in case of an emergency, a minimum 12-foot wide (or as required in the underlying zone, whichever is more) access shall be maintained to the required animal area or existing PAKA.

21.No development standard regarding a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings, shall apply that would not permit at least a new eight hundred square foot, sixteen foot tall accessory dwelling unit with at least four-foot side and rear setbacks.

F. Junior Accessory Dwelling Units - Development Requirements.

1. Junior accessory units will be constructed within the walls of an existing or proposed single-family residence and require owner occupancy in the single-family residence where the unit is located. Enclosed uses within a residence, such as attached garages, are considered part of the existing or proposed single-family residence.

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

2. A junior accessory dwelling unit shall not exceed 500 square feet in size.

3. Owner Occupancy. The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling. Owner occupancy is not required if the owner is a governmental agency, land trust, or “housing organization” as that term is defined in Government Code Section 65589.5(k)(2), as that section may be amended from time to time.

4. Sale Prohibited. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel.

5. Short-Term Rentals. The junior accessory dwelling unit shall not be rented for periods of 30 days or less.

6. Location of Junior Accessory Dwelling Unit. A junior accessory dwelling unit shall be entirely within a single-family residence. A junior accessory dwelling unit shall have an interior entry to the primary dwelling’s main living area, independent of an exterior entrance of the junior accessory and primary dwelling.

7. Kitchen Requirements. The junior accessory dwelling unit shall include an efficiency kitchen, including a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

8. Parking. No additional parking is required beyond that already required for the primary dwelling.

9. Fire Protection—Utility Service. For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit, unless the junior accessory dwelling unit was constructed in conjunction with a new singlefamily dwelling. No separate connection between the junior accessory dwelling unit and the utility shall be required for units created within a single-family dwelling, unless the junior accessory dwelling unit is being constructed in connection with a new singlefamily dwelling.

G. Codes, Covenants, and Restrictions (CC&Rs). CC&Rs that either effectively prohibit or unreasonably restrict the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use are void and unenforceable.

H. Compliance with General Plan. An accessory dwelling unit and/or junior accessory dwelling unit which conforms to the standards of this section shall not be considered to exceed the

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

allowable density for the lot upon which it is located and shall be deemed to be a residential use which is consistent with the existing General Plan and land use designation for the lot.

SECTION 2. EFFECTIVE DATE: This Ordinance shall become effective 30 days after final passage thereof.

SECTION 3. SEVERABILITY: If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance, and each section, subsection, sentence, clause, sentences, clauses, or phrases here of irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases hereof be declared invalid or unconstitutional.

SECTION 4. POSTING: The Mayor shall sign this Ordinance and the City clerk shall attest hereto and shall cause the same within 15 days of its passage to be posted at no less than five public places within the City of Norco.

PASSED AND ADOPTED by the City Council of the City of Norco, California at a regular meeting held February 15, 2023.
__________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

Ordinance No. 1093, Zone Code Amendment 2022-05
February 15, 2023

I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Norco, California, duly held on January 18, 2023, continued to a regular meeting in said City on February 1, 2023, and thereafter at a regular meeting of said City Council duly held on February 15, 2023, it was duly passed and adopted by the following roll call vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS THEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 15, 2023.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California