Norco City Council
February 4, 2026

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(110)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Major to Nonmajor Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Special Revenue Funds
Supplemental
Air Quality Law Landscape Landscape
Improvement Enforcement Maintenance Maintenance
NPDES Trust Block Grant District #1 District #2
$ - 73,819 $ - $ - $ - $
- - - 12,422 188,208
- - - - -
33,414 - 194,663 - -
- - - - -
- 1,083 - (413) (594)
- - - - -
34,497 73,819 194,663 12,009 187,614
- - - - -
- - 194,663 - -
116,020 2,920 - 12,692 172,547
- - - - -
- - - - -
- - - - -
2,920 116,020 194,663 12,692 172,547
(42,201) 31,577 - (683) 15,067
- 49,402 - - -
(34,124) - - - -
(34,124) 49,402 - - -
(2,547) 7,201 - (683) 15,067
36,277 (7,201) - (6,528) (11,607)
- - - - -
36,277 (7,201) - (6,528) (11,607) $ 33,730 - $ - $ (7,211) $ 3,460 $

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(111)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Major to Nonmajor Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Landscape Landscape Landscape
Maintenance Maintenance Maintenance CalHome Total Special District #3 District #4 District #5 Grant Revenue Funds $ - - $ - $ - $ 1,036,054 $
532,277 107,700 71,790 - 912,397
- - - - -
- - - - 3,054,615
- - - - 2,132
15,792 236 4,495 9,349 148,652
- - - - -
548,069 107,936 76,285 9,349 5,153,850
- - - - -
- - - - 204,175
518,331 97,540 82,246 - 1,771,463
- - - - 31,485
- - - - 992,710
- - - - 307,650
518,331 97,540 82,246 - 3,307,483
29,738 10,396 (5,961) 9,349 1,846,367
- - - - 77,238
- - - - (34,124)
- - - - 43,114
29,738 10,396 (5,961) 9,349 1,889,481
348,852 5,158 85,139 192,581 2,367,896
- - - - -
348,852 5,158 85,139 192,581 2,367,896 $ 378,590 15,554 $ 79,178 $ 201,930 $ 4,257,377 $ Special Revenue Funds

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(112)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Major to Nonmajor Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
General
Government Fire Trails Park
Storm Drain Improvement Improvement Improvement Improvement $ - - $ - $ - $ - $
- - - - -
43,440 2,468,917 330,899 67,662 3,184,367
- 90,108 - - -
- 23,930 - - -
- 23,435 39,775 11,042 155,255
- - - - -
66,875 2,582,955 370,674 78,704 3,339,622
- - - - -
- - - - -
16,758 - - 45,250 -
- - - - -
- - - - -
- 3,502,235 - - 606,734
- 3,518,993 - 45,250 606,734
(936,038) 66,875 370,674 33,454 2,732,888
- - - - -
- - - - -
- - - - -
66,875 (936,038) 370,674 33,454 2,732,888
451,449 - 684,605 215,849 1,097,884
- 1,590,443 - - -
451,449 1,590,443 684,605 215,849 1,097,884 $ 518,324 654,405 $ 1,055,279 $ 249,303 $ 3,830,772 $ Capital Projects Funds

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(113)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Major to Nonmajor Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Total
Nonmajor
Public Street Animal Facility Total Capital Governmental Meeting Improvement Control Improvement Projects Funds Funds $ - - $ - $ - $ - $ 1,036,054 $
- - - - - 912,397
812,580 893,957 82,299 - 7,884,121 7,884,121
- - - - 90,108 3,144,723
- - - - 23,930 26,062
50,769 28,024 2,389 5,809 316,498 465,150
25,000 - - - 25,000 25,000
888,349 921,981 84,688 5,809 8,339,657 13,493,507
- - - - - -
- - - - - 204,175
333,809 - - - 395,817 2,167,280
- - - - - 31,485
- - - - - 992,710
521,216 - 32,065 - 4,662,250 4,969,900
855,025 - 32,065 - 5,058,067 8,365,550
33,324 921,981 52,623 5,809 3,281,590 5,127,957
583,016 - - - 583,016 660,254
- - - - - (34,124)
583,016 - - - 583,016 626,130
616,340 921,981 52,623 5,809 3,864,606 5,754,087
931,131 233,402 33,890 131,298 3,779,508 6,147,404
- - - - 1,590,443 1,590,443
931,131 233,402 33,890 131,298 5,369,951 7,737,847 $ 1,547,471 1,155,383 $ 86,513 $ 137,107 $ 9,234,557 $ 13,491,934 $ Capital Projects Funds

(114)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO

NONMAJOR SCHEDULES OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2025
(115)
The budgetary comparison statement is presented as required supplementary information for the General Fund as provided for by GASB Statement No. 34. The City did not adopt a budget for the Housing Successor Agency Low- and Moderate-Income Housing Special Revenue Fund.

The schedules for the remaining funds are presented to aid in additional analysis and are not a required part of the financial statements.

The City did not adopt a budget for the CalHome Grant Special Revenue Fund and Facility Improvement Capital Projects Fund.

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(116)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 1,187,111 $ 1,190,897 $ 1,127,221 $ (63,676) $ Charges for Services - 2,500 2,132 (368) Total Revenues 1,187,111 1,193,397 1,129,353 (64,044) EXPENDITURES Current:

General Government 10,000 10,000 - 10,000 Public Safety 33,946 33,946 9,512 24,434 Community and Economic
Development 29,700 31,486 31,485 1 Culture and Leisure 1,113,465 1,117,965 979,660 138,305 Total Expenditures 1,177,111 1,193,397 1,020,657 172,740 NET CHANGE IN FUND BALANCE - 10,000 108,696 108,696 Fund Balance - Beginning of Year (108,696) (108,696) (108,696) - FUND BALANCE (DEFICIT) - END OF YEAR $ (108,696) (98,696) $ - $ 108,696 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(117)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 290,600 $ 338,741 $ 290,351 $ (48,390) $ Total Revenues 290,600 338,741 290,351 (48,390) EXPENDITURES Culture and Leisure 13,200 13,200 13,050 150 Capital Outlay 277,400 266,235 277,301 (11,066) Total Expenditures 290,600 279,435 290,351 (10,916) NET CHANGE IN FUND BALANCE 59,306 - - (59,306) Fund Balance - Beginning of Year - - - - FUND BALANCE - END OF YEAR $ 59,306 - $ - $ (59,306) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(118)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 744,000 $ 780,570 $ 682,312 $ (98,258) $ Investment Earnings (Loss) 5,000 5,000 349 (4,651) Total Revenues 749,000 785,570 682,661 (102,909) EXPENDITURES Current:

Streets and Highways 780,700 780,700 758,965 21,735 Total Expenditures 780,700 780,700 758,965 21,735 NET CHANGE IN FUND BALANCE 4,870 (31,700) (48,468) (53,338) Fund Balance - Beginning of Year 48,468 48,468 48,468 - FUND BALANCE (DEFICIT) - END OF YEAR $ 53,338 16,768 $ - $ (53,338) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
SB1 ROAD MAINTENANCE REHABILITATION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2025
(119)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 682,267 $ 672,337 $ 726,654 $ 54,317 $ Investment Earnings (Loss) 2,970 2,970 28,708 25,738 Total Revenues 685,237 675,307 755,362 80,055

EXPENDITURES
Current:

Streets and Highways 750,000 750,000 10,202 739,798 Total Expenditures 750,000 750,000 10,202 739,798 NET CHANGE IN FUND BALANCE (74,693) (64,763) 745,160 819,853 Fund Balance - Beginning of Year 309,896 309,896 309,896 - FUND BALANCE - END OF YEAR $ 235,203 245,133 $ 1,055,056 $ 819,853 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MEASURE A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(120)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 987,000 $ 987,000 $ 962,235 $ (24,765) $
Investment Earnings 24,055 24,055 89,647 65,592 Total Revenues 1,011,055 1,011,055 1,051,882 40,827

EXPENDITURES
Capital Outlay:

Other 150,000 1,186,879 30,349 1,156,530 Total Expenditures 150,000 1,186,879 30,349 1,156,530 NET CHANGE IN FUND BALANCE (175,824) 861,055 1,021,533 1,197,357 Fund Balance - Beginning of Year 1,475,557 1,475,557 1,475,557 - FUND BALANCE - END OF YEAR $ 1,299,733 2,336,612 $ 2,497,090 $ 1,197,357 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

NPDES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(121)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 133,000 $ 133,000 $ 73,819 $ (59,181) $
Total Revenues 133,000 133,000 73,819 (59,181) EXPENDITURES Current:

Streets and Highways 169,200 169,200 116,020 53,180 Total Expenditures 169,200 169,200 116,020 53,180

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (36,200) (36,200) (42,201) (6,001) OTHER FINANCING SOURCES Transfers In - 80,000 49,402 (30,598) NET CHANGE IN FUND BALANCE 43,800 (36,200) 7,201 (36,599) Fund Balance - Beginning of Year (7,201) (7,201) (7,201) - FUND BALANCE (DEFICIT) - END OF YEAR $ 36,599 (43,401) $ - $ (36,599) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

AIR QUALITY IMPROVEMENT TRUST SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
(122)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 35,000 $ 35,000 $ 33,414 $ (1,586) $
Investment Earnings - - 1,083 1,083 Total Revenues 35,000 35,000 34,497 (503) OTHER FINANCING USES Transfers Out (1,500) (1,500) (34,124) (32,624) Total Other Financing Uses (1,500) (1,500) (34,124) (32,624) NET CHANGE IN FUND BALANCE (66,500) (66,500) (2,547) 63,953 Fund Balance - Beginning of Year 36,277 36,277 36,277 - FUND BALANCE (DEFICIT) - END OF YEAR $ (30,223) (30,223) $ 33,730 $ 63,953 $

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, 2025
(123)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 140,000 $ 195,000 $ 194,663 $ (337) $ Total Revenues 140,000 195,000 194,663 (337) EXPENDITURES Current:

Public Safety 140,000 195,000 194,663 337 Total Expenditures 140,000 195,000 194,663 337 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, 2025
(124)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 12,813 $ 12,813 $ 12,422 $ (391) $
Investment Earnings (Loss) - - (413) (413) Total Revenues 12,813 12,813 12,009 (804)

EXPENDITURES
Current:

Streets and Highways 13,685 13,685 12,692 993 Total Expenditures 13,685 13,685 12,692 993 NET CHANGE IN FUND BALANCE (872) (872) (683) 189 Fund Balance (Deficit) - Beginning of Year (6,528) (6,528) (6,528) - FUND BALANCE (DEFICIT) - END OF YEAR $ (7,400) (7,400) $ (7,211) $ 189 $

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, 2025
(125)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 190,802 $ 190,802 $ 188,208 $ (2,594) $
Investment Loss - - (594) (594) Total Revenues 190,802 190,802 187,614 (3,188) EXPENDITURES Current:

Streets and Highways 196,538 196,538 172,547 23,991 Total Expenditures 196,538 196,538 172,547 23,991 NET CHANGE IN FUND BALANCE (5,736) (5,736) 15,067 20,803 Fund Balance (Deficit) - Beginning of Year (11,607) (11,607) (11,607) - FUND BALANCE (DEFICIT) - END OF YEAR $ (17,343) (17,343) $ 3,460 $ 20,803 $

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, 2025
(126)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 107,002 $ 107,002 $ 107,700 $ 698 $
Investment Loss - - 236 236 Total Revenues 107,002 107,002 107,936 934

EXPENDITURES
Current:

Streets and Highways 107,003 107,003 97,540 9,463 Total Expenditures 107,003 107,003 97,540 9,463 NET CHANGE IN FUND BALANCE (1) (1) 10,396 10,397 Fund Balance - Beginning of Year 5,158 5,158 5,158 - FUND BALANCE (DEFICIT) - END OF YEAR $ 5,157 5,157 $ 15,554 $ 10,397 $

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, 2025
(127)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 533,986 $ 533,986 $ 532,277 $ (1,709) $
Investment Earnings - - 15,792 15,792 Total Revenues 533,986 533,986 548,069 14,083

EXPENDITURES
Current:

Streets and Highways 533,995 533,995 518,331 15,664 Total Expenditures 533,995 533,995 518,331 15,664 NET CHANGE IN FUND BALANCE (9) (9) 29,738 29,747 Fund Balance - Beginning of Year 348,852 348,852 348,852 - FUND BALANCE - END OF YEAR $ 348,843 348,843 $ 378,590 $ 29,747 $

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, 2025
(128)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 70,989 $ 70,989 $ 71,790 $ 801 $
Investment Earnings - - 4,495 4,495 Total Revenues 70,989 70,989 76,285 5,296

EXPENDITURES
Current:

Streets and Highways 93,533 93,533 82,246 11,287 Total Expenditures 93,533 93,533 82,246 11,287 NET CHANGE IN FUND BALANCE (22,544) (22,544) (5,961) 16,583 Fund Balance - Beginning of Year 85,139 85,139 85,139 - FUND BALANCE (DEFICIT) - END OF YEAR $ 62,595 62,595 $ 79,178 $ 16,583 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STORM DRAIN CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(129)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 2,468,917 $ 2,468,917 $
Intergovernmental 16,908,960 16,908,960 90,108 (16,818,852) Charges for Services - - 23,930 23,930 Investment Earnings (Loss) 19,498 19,498 - (19,498) Total Revenues 16,928,458 16,928,458 2,582,955 (14,345,503) EXPENDITURES Current:

Streets and Highways 16,758 16,758 16,758 - Capital Outlay 16,892,202 17,548,345 3,502,235 14,046,110 Total Expenditures 16,908,960 17,565,103 3,518,993 14,046,110 NET CHANGE IN FUND BALANCE (636,645) 19,498 (936,038) (299,393) Fund Balance - Beginning of Year 1,590,443 1,590,443 1,590,443 - FUND BALANCE - END OF YEAR $ 953,798 1,609,941 $ 654,405 $ (299,393) $

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, 2025
(130)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 43,440 $ 43,440 $
Investment Earnings 8,195 8,195 23,435 15,240 Total Revenues 8,195 8,195 66,875 58,680

EXPENDITURES
Capital Outlay:

Other 109,800 70,800 - 70,800 Total Expenditures 109,800 70,800 - 70,800 NET CHANGE IN FUND BALANCE (62,605) (101,605) 66,875 129,480 Fund Balance - Beginning of Year 451,449 451,449 451,449 - FUND BALANCE - END OF YEAR $ 388,844 349,844 $ 518,324 $ 129,480 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

FIRE IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(131)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 330,899 $ 330,899 $
Investment Earnings 9,941 9,941 39,775 29,834 Total Revenues 9,941 9,941 370,674 360,733 NET CHANGE IN FUND BALANCE 9,941 9,941 370,674 360,733 Fund Balance - Beginning of Year 684,605 684,605 684,605 - FUND BALANCE - END OF YEAR $ 694,546 694,546 $ 1,055,279 $ 360,733 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

TRAILS IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(132)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 67,662 $ 67,662 $
Investment Earnings 4,346 4,346 11,042 6,696 Total Revenues 4,346 4,346 78,704 74,358 EXPENDITURES Current:

Streets and Highways 50,000 50,000 45,250 4,750 Total Expenditures 50,000 50,000 45,250 4,750 NET CHANGE IN FUND BALANCE (45,654) (45,654) 33,454 79,108 Fund Balance - Beginning of Year 215,849 215,849 215,849 - FUND BALANCE - END OF YEAR $ 170,195 170,195 $ 249,303 $ 79,108 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PARK IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(133)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 3,184,367 $ 3,184,367 $
Investment Earnings 20,708 20,708 155,255 134,547 Total Revenues 20,708 20,708 3,339,622 3,318,914 EXPENDITURES Capital Outlay:

Other 630,000 689,214 606,734 82,480 Total Expenditures 630,000 689,214 606,734 82,480 NET CHANGE IN FUND BALANCE (668,506) (609,292) 2,732,888 3,401,394 Fund Balance - Beginning of Year 1,097,884 1,097,884 1,097,884 - FUND BALANCE - END OF YEAR $ 429,378 488,592 $ 3,830,772 $ 3,401,394 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PUBLIC MEETING CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(134)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 893,957 $ 893,957 $
Investment Earnings 4,353 4,353 28,024 23,671 Total Revenues 4,353 4,353 921,981 917,628 NET CHANGE IN FUND BALANCE 4,353 4,353 921,981 917,628 Fund Balance - Beginning of Year 233,402 233,402 233,402 - FUND BALANCE - END OF YEAR $ 237,755 237,755 $ 1,155,383 $ 917,628 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STREET IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(135)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees 141,220 $ 141,220 $ 812,580 $ 671,360 $ Investment Earnings 10,000 10,000 50,769 40,769 Other Revenue - - 25,000 25,000 Total Revenues 151,220 151,220 888,349 737,129 EXPENDITURES Current:

Streets and Highways - - 333,809 (333,809) Capital Outlay:

Other 450,000 1,071,216 521,216 550,000 Total Expenditures 450,000 1,071,216 855,025 216,191 Excess (Deficiency) of
Revenues Over (Under)
Expenditures (298,780) (919,996) 33,324 953,320 OTHER FINANCING USES Transfers In 300,000 582,000 583,016 1,016 Total Other Financing Uses 300,000 582,000 583,016 1,016 - - - - NET CHANGE IN FUND BALANCE (337,996) 1,220 616,340 954,336 Fund Balance - Beginning of Year 931,131 931,131 931,131 - FUND BALANCE (DEFICIT) - END OF YEAR $ 593,135 932,351 $ 1,547,471 $ 954,336 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

ANIMAL CONTROL CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2025
(136)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 82,299 $ 82,299 $
Investment Earnings 829 829 2,389 1,560 Total Revenues 829 829 84,688 83,859 EXPENDITURES Capital Outlay:

Other 40,000 30,479 32,065 (1,586) Total Expenditures 40,000 30,479 32,065 (1,586) NET CHANGE IN FUND BALANCE (29,650) (39,171) 52,623 82,273 Fund Balance - Beginning of Year 33,890 33,890 33,890 - FUND BALANCE - END OF YEAR $ 4,240 (5,281) $ 86,513 $ 82,273 $

(137)

INTERNAL SERVICE FUNDS

(138)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO

INTERNAL SERVICE FUNDS DESCRIPTIONS
JUNE 30, 2025
(139)
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, 2025
(140)
Fleet Benefits and Information
Management Insurance Management Total
ASSETS
Current Assets:

Cash and Investments $ 4,773,754 $ 1,110,612 $ 1,772,762 $ 7,657,128 Receivables, Net:

Accounts 3,951 - 16,038 19,989
Interest 26,694 4,514 9,698 40,906
Prepaids - - 33,338 33,338
Total Current Assets 4,804,399 1,115,126 1,831,836 7,751,361 Noncurrent Assets:

Capital Assets:

Vehicles and Equipment 4,882,607 - 158,362 5,040,969
Less: Accumulated Depreciation (3,106,177) - (137,838) (3,244,015) Right-to-Use Lease Equipment - - 301,790 301,790
Less: Accumulated Amortization - - (162,327) (162,327)
Subscription Asset - - 645,214 645,214
Less: Accumulated Amortization - - (415,137) (415,137)
Intangibles - - 436,609 436,609
Less: Accumulated Amortization - - (436,609) (436,609)
Total Noncurrent Assets/
Capital Assets 1,776,430 - 390,064 2,166,494
Total Assets 6,580,829 1,115,126 2,221,900 9,917,855

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued
Liabilities 46,244 - 47,309 93,553
Compensated Absences - 253,174 - 253,174
Lease Payable - - 42,969 42,969
Subscription Liability - - 6,565 6,565
Claims and Judgements - 409,591 - 409,591
Total Current Liabilities 46,244 662,765 96,843 805,852 Noncurrent Liabilities:

Compensated Absences - 759,517 - 759,517
Lease Payable - - 102,021 102,021
Subscription Liability - - 36,347 36,347
Claims and Judgements - 460,107 - 460,107
Total Noncurrent Liabilities - 1,219,624 138,368 1,357,992 Total Liabilities 46,244 1,882,389 235,211 2,163,844

NET POSITION
Net Investment in Capital Assets 1,776,430 - 202,162 1,978,592 Unrestricted 4,758,155 (767,263) 1,784,527 5,775,419
Total Net Position $ 6,534,585 $ (767,263) $ 1,986,689 $ 7,754,011

CITY OF NORCO

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

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(141)
Fleet Benefits and Information
Management Insurance Management Total

OPERATING REVENUES
Sales and Charges for Services 894,908 $ 1,700,700 $ 1,220,290 $ 3,815,898 $ Total Operating Revenues 894,908 1,700,700 1,220,290 3,815,898 OPERATING EXPENSES General and Administrative 473,356 1,570,712 660,842 2,704,910 Depreciation and Amortization 370,599 - 247,467 618,066 Total Operating Expenses 843,955 1,570,712 908,309 3,322,976 OPERATING INCOME (LOSS) 129,988 50,953 311,981 492,922 NONOPERATING REVENUES Investment Earnings 220,318 25,602 73,822 319,742
Interest and Fiscal Charges - - (9,762) (9,762) Loss on Disposal of Assets (43,492) - - (43,492) Total Nonoperating Revenues 176,826 25,602 64,060 266,488 INCOME (LOSS) BEFORE TRANSFERS 155,590 227,779 376,041 759,410 TRANSFERS IN 32,624 - - 32,624 CHANGE IN NET POSITION 155,590 260,403 376,041 792,034 Net Position - Beginning of Year 6,274,182 (922,853) 1,610,648 6,961,977 NET POSITION - END OF YEAR $ (767,263) 6,534,585 $ 1,986,689 $ 7,754,011 $

CITY OF NORCO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(142)
Fleet Benefits and Information
Management Insurance Management Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash Received from Interfund
Services Provided 894,908 $ 1,700,700 $ 1,220,290 $ 3,815,898 $ Cash Payments to Suppliers (542,421) (1,488,436) (294,476) (2,325,333) Cash Payments to Employees for Services - 87,447 (337,763) (250,316) Net Cash Provided by Operating Activities 352,487 299,711 588,051 1,240,249 CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfer from Other Funds 32,624 - - 32,624 Net Cash Provided by Noncapital Financing Activities 32,624 - - 32,624 CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of
Capital Assets (221,746) - (6,210) (227,956) Principal Payments - Subscription Liability - - (148,562) (148,562) Principal Payments - Lease - - (37,036) (37,036) Interest and Fiscal Charges - - (9,762) (9,762) Net Cash Used by Capital and Related Financing Activities (221,746) - (201,570) (423,316) CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Income 209,284 23,034 68,863 301,181 Net Cash Provided by Investing Activities 209,284 23,034 68,863 301,181 NET INCREASE IN CASH AND INVESTMENTS 322,745 372,649 455,344 1,150,738 Cash and Investments - Beginning of Year 4,401,105 787,867 1,317,418 6,506,390 CASH AND INVESTMENTS - END OF YEAR $ 1,110,612 4,773,754 $ 1,772,762 $ 7,657,128 $

CITY OF NORCO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(143)
Fleet Benefits and Information
Management Insurance Management Total

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

BY OPERATING ACTIVITIES
Operating Income 50,953 $ 129,988 $ 311,981 $ 492,922 $ Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:

Depreciation and Amortization 370,599 - 247,467 618,066 Unrealized Loss on Investments (Increase) Decrease in Assets:

Prepaids - - 11,538 11,538
Increase (Decrease) in Liabilities:

Accounts Payable and Accrued
Liabilities (69,065) - 17,065 (52,000) Compensated Absences - 129,328 - 129,328 Claims and Judgements - 40,395 - 40,395 Net Cash Provided by Operating Activities 352,487 $ 299,711 $ 588,051 $ 1,240,249 $

SUPPLEMENTAL DISCLOSURE OF

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Loss on Disposal of Capital Assets 43,492 $ - $ - $ 43,492 $ Acquisition of Leased & Subscription
Assets $ - - $ 133,685 $ 133,685 $

(144)

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(145)

FIDUCIARY FUNDS

CITY OF NORCO

CUSTODIAL FUNDS DESCRIPTIONS
JUNE 30, 2025
(146)
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, 2025
(147)
Community Community Community Total
General Waste Facilities Facilities Facilities Custodial Trust Management District 97-1 District 2001-1 District 2002-1 Funds ASSETS
Cash and Investments $ 918,484 $ - $ 602,483 $ 2,844,019 $ 179,336 $ 4,544,322 Cash and Investments With
Fiscal Agents - - 241,734 1,539,870 - 1,781,604
Receivables, Net:

Accounts - - - - - -
Interest - - 3,009 13,821 893 17,723
Due from Other Governments - - 10,246 40,460 2,692 53,398 Total Assets 918,484 - 857,472 4,438,170 182,921 6,397,047

LIABILITIES
Accounts payable 40,898 - 207 356 - 41,461
Deposits Payable 877,586 - - - - 877,586
Total Liabilities 918,484 - 207 356 - 919,047

NET POSITION
Restricted for:

Debt Service for Special
Assessment Debt - - 857,265 4,437,814 182,921 5,478,000 Total Net Position $ - $ - $ 857,265 $ 4,437,814 $ 182,921 $ 5,478,000

CITY OF NORCO

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2025
(148)
Community Community Community Total
General Waste Facilities Facilities Facilities Custodial Trust Management District 97-1 District 2001-1 District 2002-1 Funds

ADDITIONS
Collections for Others $ - $ 733,311 $ 451,206 $ 2,493,255 $ 123,179 $ 3,800,951 Investment Earnings - - 32,830 160,484 7,655 200,969
Total Additions - 733,311 484,036 2,653,739 130,834 4,001,920

DEDUCTIONS
Payment for collections to
Waste Management - 747,811 - - - 747,811
Administration Expenses - - 43,729 85,102 20,982 149,813 Payments on Special Assessment
Debt:

Principal - - 345,000 1,380,000 79,092 1,804,092
Interest - - 78,447 964,250 27,643 1,070,340
Total Deductions - 747,811 467,176 2,429,352 127,717 3,772,056 CHANGE IN NET POSITION - (14,500) 16,860 224,387 3,117 229,864 Net Position - Beginning of the Year - 14,500 840,405 4,213,427 179,804 5,248,136

NET POSITION -
END OF THE YEAR $ - - $ 857,265 $ 4,437,814 $ 182,921 $ 5,478,000 $

(150)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2025
(151)
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 152
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 162
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity 166
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 174
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 178
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)
(152)
2016 2017 2018 2019
Governmental activities
Invested in capital assets, net of related debt $ 176,622,650 $ 174,442,174 $ 174,890,993 $ 176,345,781 Restricted 30,724,769 31,091,357 30,074,012 29,152,904
Unrestricted 2,515,519 3,194,792 (1,296,563) 3,061,188
Total governmental activities net position $ 208,728,323 209,862,938 $ 203,668,442 $ 208,559,873 $ Business-type activities
Invested in capital assets, net of related debt 32,641,357 $ 31,655,305 $ $ 32,636,095 $ 38,385,618 Restricted 1,503,178 1,712,000 1,476,331 2,483,441
Unrestricted 20,575,188 24,802,130 22,717,620 20,722,463 Total business-type activities net position $ 58,169,435 54,719,723 $ 56,830,046 $ 61,591,522 $ Primary Government
Net Investment in capital assets 209,264,007 $ 206,097,479 $ 207,527,088 $ 214,731,399 $ Restricted 32,227,947 32,803,357 31,550,343 31,636,345
Unrestricted 23,090,707 27,996,922 21,421,057 23,783,651 Total primary government net position $ 266,897,758 264,582,661 $ 260,498,488 $ 270,151,395 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2020 2021 2022 2023 2024 2025
$ 177,143,786 $ 176,797,895 $ 182,078,689 $ 189,484,053 $ 204,666,015 $ 211,546,730 22,301,118 21,842,280 25,833,667 28,296,980 25,295,237 34,672,140 13,797,616 20,048,961 27,741,235 40,597,542 34,241,563 35,450,178 $ 218,689,136 213,242,520 $ 235,653,591 $ 255,376,832 $ 267,204,558 $ 281,669,048 $ $ 32,451,604 $ 33,381,504 $ 36,596,095 $ 42,861,862 38,586,712 $ 45,542,559 $ 137,489 26,475 1,830,956 493,645 790,396 986,356
31,586,101 34,373,885 33,870,562 35,685,503 32,637,099 35,568,277 $ 67,781,864 64,175,194 $ 72,297,613 $ 74,765,860 $ 76,289,357 $ 82,097,192 $ $ 210,179,399 209,595,390 $ 218,674,784 $ 228,070,765 $ 247,527,877 $ 257,089,289 $ 22,438,607 21,868,755 27,664,623 25,788,882 29,087,376 35,658,496 45,383,717 54,422,846 61,611,797 76,283,045 66,878,662 71,018,455 $ 286,471,000 277,417,714 $ 307,951,204 $ 330,142,692 $ 343,493,915 $ 363,766,240 $ Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2016 2017 2018 2019
Expenses
Governmental activities:

General government 4,546,424 $ 5,060,194 $ $ 5,164,710 $ 5,260,115 Public safety 9,570,143 9,698,034 10,585,952 10,850,324 Streets and highways 4,655,515 4,631,223 4,934,050 5,669,159 Community and economic development 1,276,946 1,487,998 1,624,009 1,602,171 Culture and leisure 2,449,518 2,640,415 2,573,716 2,726,047 Loss on sale of land held for resale - 26,630 - - Total governmental activities expenses 22,498,546 23,544,494 24,882,437 26,107,816 Business-type activities:

Water 9,673,588 9,209,912 11,075,924 10,688,780
Sewer 6,315,558 5,915,756 6,786,370 7,222,648
Recylced Water - - - - Total business-type activities expenses 15,989,146 15,125,668 17,862,294 17,911,428 Total primary government expenses 38,487,692 $ 38,670,162 $ 42,744,731 $ 44,019,244 $ Program Revenues
Governmental activities:

Charges for services:

General government $ 2,069,324 $ 2,127,348 $ 2,302,669 $ 2,396,727 Public safety 855,169 891,368 927,629 1,011,589
Streets and highways 938,429 927,983 929,602 1,231,104
Community and economic development 940,048 1,146,162 1,094,604 1,309,354 Culture and leisure 756,341 721,995 756,965 759,020
Operating grants and contributions 1,596,119 1,438,753 1,804,315 2,251,013 Capital grants and contributions 5,064,800 1,417,227 2,040,545 4,457,879 Total governmental activities program revenues 12,220,230 8,670,836 9,856,329 13,416,686 Business-type activities:

Charges for services:

Water 8,353,699 11,102,037 12,144,054 12,974,480
Sewer 6,296,636 7,065,681 7,491,015 8,824,907
Recylced Water - - - - Operating grants and contributions - - - - Capital grants and contributions 4,350,067 - - - Total business-type activities program revenues 19,000,402 18,167,718 19,635,069 21,799,387 Total program government program revenues 31,220,632 $ 26,838,554 $ 29,491,398 $ 35,216,073 $ Net(Expense)/Revenue
Governmental activities (10,278,316) $ (14,873,658) $ (15,026,108) $ (12,691,130) $ Business-type activities 3,011,256 3,042,050 1,772,775 3,887,959 $ (11,831,608) (7,267,060) $ (13,253,333) $ (8,803,171) $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2020 2021 2022 2023 2024 2025
$ 5,752,506 $ 6,590,791 $ 9,639,441 $ 9,343,449 11,844,908 $ 11,199,457 $ 11,653,805 11,842,671 10,991,835 9,311,148 14,569,065 14,990,768 5,934,482 5,167,004 8,627,523 7,155,522 6,061,354 6,986,114 1,546,406 2,110,070 1,974,201 1,693,419 2,489,190 2,358,248 3,236,433 3,000,679 2,637,799 2,579,776 6,368,248 6,058,431 - - - - - -
28,123,632 28,711,215 33,870,799 31,490,605 39,925,474 41,593,018 12,699,537 11,325,678 12,368,339 11,821,081 13,591,585 14,029,653 7,134,484 6,397,952 7,740,315 7,271,045 6,335,901 7,033,114 - - - - 19,270 25,858
19,834,021 17,723,630 20,108,654 18,156,982 20,881,900 21,088,625 $ 46,434,845 47,957,653 $ 53,979,453 $ 49,647,587 $ 60,807,374 $ 62,681,643 $ $ 2,417,671 $ 2,180,587 $ 2,082,234 $ 2,426,873 $ 2,076,768 $ 2,197,511 1,005,055 1,088,710 1,130,231 1,506,435 1,107,141 1,323,936 1,148,038 933,850 983,499 1,412,390 1,410,933 1,703,582 1,217,777 1,520,456 3,003,618 1,657,698 2,227,596 1,978,522 529,898 230,472 1,294,904 1,481,366 1,345,245 2,421,627 2,113,841 2,407,654 3,124,093 2,847,772 4,024,936 3,988,000 2,007,911 147,472 6,297,305 6,752,086 5,090,952 8,156,032 10,440,191 8,509,201 17,915,884 16,457,969 18,910,222 21,769,210 13,282,918 13,660,048 13,746,965 12,505,225 12,424,207 13,395,548 8,324,845 7,469,592 9,769,632 7,387,390 8,092,304 7,783,074 - - - - - -
- - - - - 1,450,031
122,408 12,599 1,931,129 170,421 256,742 2,698,492
21,730,171 21,142,239 25,447,726 19,982,018 20,854,271 25,327,145 $ 29,651,440 32,170,362 $ 43,363,610 $ 36,439,987 $ 39,764,493 $ 47,096,355 $ $ (20,202,014) (17,683,441) $ (15,954,915) $ (15,032,636) $ (21,015,252) $ (19,823,808) $ 1,896,150 3,418,609 5,339,072 1,825,036 (27,629) 4,238,520 $ (16,783,405) (15,787,291) $ (10,615,843) $ (13,207,600) $ (21,042,881) $ (15,585,288) $ Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(156)
General Revenues and Other Changes in
Net Position
Governmental activities: 2016 2017 2018 2019
Taxes:

Property tax, levied for general purpose 1,656,163 $ 4,062,986 $ $ 4,364,143 $ 4,703,051 Transient occupancy tax 519,548 561,766 586,369 609,036 Franchise tax 1,334,588 1,400,636 1,561,383 1,674,490
Sales tax in lieu 1,213,148 - - - Motor vehicle in lieu tax 2,258,119 12,124 14,246 12,990 Intergovernmental - Sales tax 5,613,795 6,837,653 7,188,921 9,359,520 Public service taxes 360,712 363,347 401,258 399,734
Gain/(Loss) on sale of capital assets 110 - - - Unrestricted investment earnings(losses) 69,619 100,009 252,510 445,846 Intergovernmental 124,047 125,420 125,937 119,690
Transfers 276,568 275,102 258,204 258,204
Total governmental activities 13,426,417 13,739,043 14,752,971 17,582,561 Business-type activities:

Unrestricted investment earnings(losses) 619,897 682,764 797,610 1,131,721 Transfers (276,568) (275,102) (258,204) (258,204)
Total business-type activities 343,329 407,662 539,406 873,517 Total primary government $ 13,769,746 $ 14,146,705 $ 15,292,377 $ 18,456,078 Change in Net Position
Governmental activities 3,148,102 $ (1,134,615) $ (273,137) $ 4,891,431 $ Business-type activities 3,354,585 3,449,712 2,312,181 4,761,476 Total primary government 6,502,687 $ 2,315,097 $ 2,039,044 $ 9,652,907 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(157)
2020 2021 2022 2023 2024 2025
$ 5,071,222 $ 5,157,673 $ 5,408,797 $ 6,528,686 6,103,888 $ 7,112,823 $ 615,989 741,248 1,057,978 1,154,480 1,189,207 1,316,238 1,751,200 1,863,816 2,025,163 2,128,390 2,228,055 2,673,933 - - - - - -
21,419 20,216 31,265 27,326 32,929 41,984
13,173,182 16,460,577 20,376,348 19,916,654 18,873,345 19,312,667 413,789 518,358 604,599 454,979 512,318 432,958
- - - - - -
564,198 38,841 (553,147) 3,261,054 1,011,976 3,110,046
496,885 589,697 3,003,453 16,523 3,615,015 29,449
258,204 258,204 266,905 285,830 258,200 258,200
22,366,088 25,648,630 32,221,361 34,755,877 32,842,978 34,288,298 945,726 162,751 (115,150) 1,809,326 929,041 1,827,515
(258,204) (258,204) (266,905) (285,830) (258,200) (258,200) (95,453) 687,522 (382,055) 643,211 1,551,126 1,569,315 $ 23,053,610 $ 25,553,177 $ 31,839,306 $ 35,399,088 $ 34,394,104 $ 35,857,613 $ 5,446,616 6,411,173 $ 16,266,446 $ 19,723,241 $ 11,827,726 $ 14,464,490 $ 3,323,156 6,026,594 4,957,017 2,468,247 1,523,497 5,807,835 $ 8,769,772 12,437,767 $ 21,223,463 $ 22,191,488 $ 13,351,223 $ 20,272,325 $ Fiscal Year

CITY OF NORCO

FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(158)
2016 2017 2018 2019
General Fund
Nonspendable $ 3,746,499 $ 3,634,919 $ 3,404,066 $ 2,591,357 Restricted 229,659 528,820 671,779 133,326
Committed - - - 7,527,137
Unassigned 10,083,161 11,250,211 11,718,584 9,877,022
Total general fund 14,059,319 15,413,950 15,794,429 20,128,842 Housing Successor Agency
Restricted 17,648,086 17,461,190 17,303,845 17,172,128
Strom Drain Capital Project
Restricted - - - - All Other Governmental Funds
Nonspendable: 6,000 - - - Restricted:

Public Safety - - - 757,999
Streets and Highways 4,137,649 4,009,389 2,818,550 4,640,824 Community and Economic Development 138,391 147,822 133,742 142,050 Culture and Leisure - - - 823,111
Committed:

Emergencies - - - - Assigned:

General Government - - - -
Public Safety 608,091 661,499 680,053 -
Streets and Highways 3,579,381 3,875,674 3,813,411 -
Culture and Leisure 632,122 622,612 757,526 - Unassigned:

Public Safety - (1,314) - -
Streets and Highways (17,873) (26,054) (47,420) (222,280) Community and Economic Development - - (55,288) (5,428) Total all other governmental funds 9,083,761 9,289,628 8,100,574 6,136,276 Total all governmental funds $ 40,791,166 $ 42,164,768 $ 41,198,848 $ 43,437,246 Source: City's financial statements
Fiscal Year

CITY OF NORCO

FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(159)
2020 2021 2022 2023 2024 2025
$ 2,459,280 $ 2,325,075 $ 2,183,784 $ 2,065,474 $ 2,855,149 $ 2,690,840 124,578 115,657 2,358,746 2,111,067 3,377,190 4,079,607 4,614,689 9,925,562 12,607,576 14,025,552 12,491,173 13,106,474 17,455,468 19,949,630 27,463,836 30,368,537 29,976,648 30,930,118 24,654,015 32,315,924 44,366,263 48,818,309 48,700,160 50,807,039 17,060,012 16,778,372 16,591,918 16,640,503 16,777,797 16,805,149 - - - - 1,590,443 -
2,500 2,500 3,000 - - -
730,431 693,301 811,770 682,008 684,605 1,055,279
- 3,845,515 3,871,499 3,674,845 3,871,499 6,998,431
- 216,641 290,723 228,858 228,858 235,660
- 683,284 1,496,474 1,270,883 1,496,474 5,209,775
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - (108,696) -
(35,528) (38,811) (25,336) (10,354) (25,336) (7,211)
(374,396) - - - - -
323,007 5,402,430 6,386,265 5,908,105 6,147,404 13,491,934 $ 42,037,034 $ 54,496,726 $ 67,344,446 $ 71,366,917 $ 73,215,804 $ 81,104,122 Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(160)
2016 2017 2018 2019 2020
Revenues
Taxes $ 13,599,492 $ 13,923,344 $ 14,861,023 $ 17,592,048 $ 21,847,687 Assessments 776,231 736,112 703,369 698,499 751,608
Licenses and permits 670,979 789,382 750,245 946,402 795,991 Fines and forfeitures 430,596 346,048 499,446 497,029 513,918 Development fees 250,418 846,664 178,282 2,014,321 493,303 Intergovernmental 2,238,833 1,262,117 2,883,189 3,132,740 3,971,705 Charges for services 2,962,066 3,098,643 2,976,824 3,311,339 3,074,413 Investment earnings (losses) and lease income 680,581 800,900 1,042,306 1,429,531 1,354,353 Reimbursements 127,277 - 71,432 10,504 196,165
Other 153,021 220,160 263,294 362,391 203,238
Total revenues 21,889,494 22,023,370 24,229,410 29,994,804 33,202,381 Expenditures
Current:

General government 4,396,554 4,839,346 5,155,987 5,464,926 6,052,709 Public safety 9,339,313 9,559,983 10,526,624 11,037,921 11,706,532 Streets and highways 4,438,203 3,071,423 5,442,522 7,957,631 6,466,151 Community and economic development 1,251,035 1,408,931 1,633,480 1,641,538 1,570,339 Culture and leisure 1,871,207 2,018,557 2,649,142 2,431,862 2,500,633 Pass through payments - - - - - ERAF payment - - - - - Debt Service Principal - - - - -
Interest - - - - - Capital outlay
Special Assessment 805,000 26,630 45,779 - 1,755,564
Other - - - - - Total expenditures 22,101,312 20,924,870 25,453,534 28,533,878 30,051,928 Excess(deficiency) of revenues
over(under) expenditures (211,818) 1,098,500 (1,224,124) 1,460,926 3,150,453 Other Financing Sources (Uses)
Issuance of Leases - - - - -
Issuance of Subscriptions - - - - - Proceeds from the sale of property - - - - 10,600 Transfers in 380,571 479,281 890,498 432,466 377,520
Transfers out (104,003) (204,179) (632,294) (174,262) (79,316) Bond/Loan Proceeds - - - 519,268 - Total other financing sources (uses) 276,568 275,102 258,204 777,472 308,804 Net change in fund balances $ 64,750 $ 1,373,602 $ (965,920) $ 2,238,398 $ 3,459,257 Debt service as a percentage
of noncapital expenditures 0.00% 0.00% 0.00% 0.00% 0.00% Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(161)
Revenues
Taxes
Assessments
Licenses and permits
Fines and forfeitures
Development fees
Intergovernmental
Charges for services
Investment earnings (losses) and lease income
Reimbursements
Other
Total revenues
Expenditures
Current:

General government
Public safety
Streets and highways
Community and economic development
Culture and leisure
Pass through payments
ERAF payment
Debt Service
Principal
Interest
Capital outlay
Special Assessment
Other
Total expenditures
Excess(deficiency) of revenues
over(under) expenditures
Other Financing Sources (Uses)
Issuance of Leases
Issuance of Subscriptions
Proceeds from the sale of property
Transfers in
Transfers out
Bond/Loan Proceeds
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage
of noncapital expenditures
Source: City's financial statements
2021 2022 2023 2024 2025
$ 25,769,374 $ 30,612,573 $ 30,938,594 $ 30,396,959 $ 31,884,673 779,905 788,192 838,662 882,166 912,397
1,279,186 2,608,829 1,998,851 1,190,078 1,692,391
727,315 593,357 772,981 591,654 531,246
62,717 5,657,076 545,416 6,172,101 8,094,121
2,849,251 5,068,404 10,059,259 2,908,012 3,231,264
2,771,734 4,003,280 3,543,095 4,259,661 4,447,609
409,776 (309,021) 2,006,456 3,942,391 4,613,779
11,263 4,956 203,833 7,094 4,082
123,299 685,096 169,419 779,929 179,323
34,783,820 49,712,742 51,076,566 51,130,045 55,590,885
6,593,217 10,666,317 12,465,010 8,730,827 10,579,753
11,440,255 10,097,288 11,034,098 13,951,976 14,223,501
4,248,556 6,665,225 9,878,316 3,894,103 3,230,760
2,072,422 1,858,797 1,964,611 2,434,917 2,282,201
2,435,751 3,247,813 3,321,462 5,070,313 4,794,098
- - - - -
- - - - -
- - 34,255 99,897 93,183
- - 575 983 611
1,454,185 5,193,726 6,417,810 9,676,713 7,540,739
- 3,700 2,185,653 5,786,710 5,183,297
28,244,386 37,732,866 47,301,790 49,646,439 47,928,143
6,539,434 11,979,876 3,774,776 1,483,606 7,662,742
- - 94,280 248,692 -
- - 41,134 - -
802,585 - - - -
258,204 286,283 259,705 379,549 919,954
- (19,378) (244,494) (262,960) (694,378)
- - - - -
1,060,789 266,905 150,625 365,281 225,576
$ 7,600,223 $ 12,246,781 $ 3,925,401 $ 1,848,887 $ 7,888,318

0.00% 0.00% 0.11% 0.29% 0.26%
Fiscal Year

CITY OF NORCO

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS)
(162)
June 30, Property Property Value Rate
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%
2022 3,829,904 85,129 3,915,033 1.00000%
2023 4,201,767 107,416 4,309,183 1.00000%
2024 4,508,541 112,908 4,621,449 1.00000%
2025 4,949,482 117,817 5,067,299 1.00000%
Source: Riverside County Office of Auditor-Controller

CITY OF NORCO

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(RATE PER $100 OF ASSESSED VALUE)
(163)
City Direct Rates Overlapping Rates
Corona/Norco
Unified Metro
Fiscal Basic Total School Water
Year Rate Direct District District
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%
2023 1.00000% 1.00000% 0.09925% 0.00350%
2024 1.00000% 1.00000% 0.09000% 0.00350%
2025 1.00000% 1.00000% 0.09000% 0.00350%
Source: Riverside County Office of Auditor-Controller

CITY OF NORCO

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(164)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
CRPF IV Elwood $ 231,808,249 1 4.57%
Saddle Ranch APG LLC 119,645,999 2 2.36%
CRP LDF Saddle Ranch II LLC 110,151,587 3 2.17%
LDK Norco 35,647,143 4 0.70%
Life Storage LP 33,207,000 5 0.66%
LBA Or Core-Co XII 32,252,400 6 0.64%
Parkridge Realty Partners 29,391,300 7 0.58%
Norco Corona Associates 21,812,920 8 0.43% 18,247,632 1 0.63% Target Corporation 18,191,963 9 0.36% 13,341,481 4 0.46% Yihua International Investment 17,927,076 10 0.35% 15,214,572 2 0.52% H/H Properties 14,821,967 3 0.51%
WinCo Food LLC 10,649,878 5 0.37%
Rbe Norco Hidden Valley LLC 10,164,245 6 0.35%
1900 Prop 10,008,471 7 0.34%
Grayburn Prop Inc 9,146,550 8 0.32%
Copperfield Investment 9,045,394 9 0.31%
140 Hidden Valley Parkway 8,185,000 10 0.28%
$ 12.82% 118,825,190 650,035,637 $ 4.09%
* Pending Appeals on Parcels
Source: HDL 24-25 Property data - Preliminary Property Tax Reports Top ten property taxpayers
2025 2016

CITY OF NORCO

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(165)
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 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%
2023 1,717,650 1,679,098 97.8% 47,142 1,726,240 100.5%
2024 1,810,319 1,791,260 98.9% 65,261 1,856,521 102.6%
2025 1,858,359 1,820,906 98.0% 47,769 1,868,675 100.6%
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)
(166)
Business-Type Activities
Term Term
Fiscal Loan Loan
Year Payable Bonds Payable
2016 $ - $ - $ 102 $ 34,093 $ - $ - $ 3,533
2017 - - - 33,354 - - 5,585
2018 - - - 32,585 - - 6,542
2019 - - - 31,777 - - 6,446
2020 - - - 44,239 - - 6,175
2021 - - - 42,901 - - 5,884
2022 169 - - 41,258 28 - 5,588
2023 199 256 - 40,105 22 108 5,285
2024 315 174 - 38,642 15 56 4,978
2025 290 54 - 37,134 27 38 4,664
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 Leases
Payable
Leases
Payable
Governmental Activities
Subscription
Liability
Subscription
Liability

CITY OF NORCO

RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(167)
Fiscal
Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total Percentage Percentage
Primary of Personal of Assessed Per
Government Capita Valuation Capita1
$ 37,728 10% 1.30% 1,403
38,939 ** 1.29% 1,435
39,127 ** 1.24% 1,459
38,223 ** 1.14% 1,436
50,414 ** 1.43% 1,829
48,785 ** 1.32% 1,834
47,043 ** 1.20% 1,804
45,975 ** 1.07% 1,836
44,180 ** 0.96% 1,740
42,207 ** 0.83% 1,674

CITY OF NORCO

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(168)
Net Percentage of
General Debt General Actual Taxable
Fiscal Obligation Service Bonded Value of Per
Year Bonds(1) Reserve Debt Property Capita(2)
2016 $ - $ - $ - 0.00% $ - 2017 - - - 0.00% - 2018 - - - 0.00% - 2019 - - - 0.00% - 2020 - - - 0.00% - 2021 - - - 0.00% - 2022 - - - 0.00% - 2023 - - - 0.00% - 2024 - - - 0.00% - 2025 - - - 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, 2025
(169)
2024-25 Assessed Valuation: $ 5,067,299,152
Direct and Overlapping Tax and Assessment Debt: % Applicable (1) Debt Metropolitan Water District 0.124 % $ 21,272
Riverside City Community College District 3.105 14,868,306 Alvord Unified School District 0.002 4,900
Corona-Norco Unified School District 9.704 45,132,065
City of Norco 100.000 - City of Norco Community Facilities District No. 97-1 100.000 2,310,000 City of Norco Community Facilities District No. 2001-1 100.000 18,595,000 City of Norco Community Facilities District No. 2002-1 100.000 658,047 Lease Payable 100.000 290,492
Subscription Liability 100.000 54,180
Total Direct and Overlapping Tax and Assessment Debt $ 81,934,262 Overlapping General Fund Debt:

Riverside County General Fund Obligations 1.194 % $ 13,542,465 Riverside County Pension Obligations 1.194 7,200,477
Riverside Community College District Certificates of Participation 3.105 739,922 Western Municipal Water District Certificates of Participation 3.765 51,866 Corona-Norco Unified School District Certificates of Participation 9.704 1,431,436 Total Overlapping General Fund Debt $ 22,966,166
Overlapping Tax Increment Debt (Successor Agencies): 0.066 - 99.986 % $ 50,723,502 Total Direct Debt $ - Total Overlapping Debt $ 155,623,930 Combined Total Debt $ 155,623,930 (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 2024-25 Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 1.65% Total Direct Debt 0.00%
Combined Total Debt 3.07%
Ratios to Redevelopment Incremental Valuation ($3,182,028,516):

Total Overlapping Tax Increment Debt 1.59%
Source: MuniServices, LLC\Neumo
California Municipal Statistics, Inc.

CITY OF NORCO

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(170)
2016 2017 2018 2019 2020
Debt limit $ 472,464 $ 452,261 $ 472,464 $ 502,402 $ 528,828 Total net debt applicable to limit - - - - - Legal debt margin $ 472,464 $ 452,261 $ 472,464 $ 502,402 $ 528,828 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 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)
(171)
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Source: City Finance Department
(1)
2021 2022 2023 2024 2025
$ 555,534 $ 587,255 $ 646,378 $ 693,217 $ 760,095
- - - - - $ 555,534 $ 587,255 $ 646,378 $ 693,217 $ 760,095

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

CITY OF NORCO

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(172)
Utility Less: Net
Fiscal Service Operating Available
Year Charges Expenses(1) Revenue Principal Interest Coverage 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
2023 19,812 13,522 6,290 1,095 1,526 2.40
2024 20,598 16,189 4,409 1,135 1,482 1.68
2025 21,179 16,472 4,707 1,180 1,435 1.80
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.
(4) The Dept. of Finance approves the Recognized Obligation Payment Schedule, and the city receives payments from County of Riverside beginning fiscal year 2012.
(3) The Bonds are limited obligation of the Successor Agency.

Utility Revenue Bonds
Debt Service

CITY OF NORCO

PLEDGED-REVENUE COVERAGE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(173)
Special Redevelopment
Fiscal Assessment Property
Year Collections Principal Interest Coverage Tax Principal Interest Coverage 2016 $ 3,370 $ 1,213 $ 1,932 1.07 $ 7,251 (4) $ 2,535 $ 4,222 1.07 2017 3,220 1,319 1,882 1.01 7,243 (4) 2,915 4,130 1.03
2018 3,344 1,419 1,371 1.20 6,999 (4) 2,880 3,701 1.06
2019 3,014 2,345 1,447 0.79 6,770 (4) 2,950 3,169 1.11
2020 2,883 1,286 1,388 1.08 6,044 (4) 2,990 3,040 1.00
2021 3,009 1,370 1,342 1.11 6,644 (4) 3,460 2,725 1.07
2022 3,019 1,464 1,288 1.10 6,668 (4) 3,230 2,791 1.11
2023 3,028 1,567 1,224 1.08 6,520 (4) 3,360 2,650 1.08
2024 3,062 1,681 1,150 1.08 6,307 (4) 3,510 2,500 1.05
2025 3,068 1,804 1,070 1.07 6,307 (4) 3,655 2,344 1.05
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.
(4) The Dept. of Finance approves the Recognized Obligation Payment Schedule, and the city receives payments from County of Riverside beginning fiscal year 2012.

Special Assessment Bonds(2) Successor Agency Bonds (3)
Debt Service Debt Service

CITY OF NORCO

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(174)
Personal Per Capita
Estimated Income Personal School Unemployment
Year Population(1) (in thousands)(2) Income(3) Enrollment(4) Rate(5) 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
2023 25,042 ** ** 50,790 5
2024 25,398 ** ** 50,256 5
2025 25,211 1,381,385 54,771 49,487 4
Sources:

Source: MuniServices, LLC / Neumo
Source: FY2016 thru FY2024, City of Norco -- ACFR Publication

1.) Population Projections are provided by the California Department of Finance Estimates.

2.) Income Data is provided by the U.S. Census Bureau.

3.) Unemployment Data is provided by the EDD's Labor Market Information Division.

4.) Student Enrollment reflects the total number of students enrolled in the Corona-Norco Unified School District.

Other school districts within the City are not accounted for in this statistic. (**) Data unavailable.

CITY OF NORCO

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
(175)
2025 2016
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment(1) Employees Rank Employment(1) Naval Surface Warfare Center (NSWC) - Corona* 2,077 17.91% 1,500 1 2 12.81% Corona-Norco Unified School District 1,281 11.04% 4,823 2 1 41.21% California Rehabilitation Center (CRC) - CDCR 1,034 8.91% 1,120 3 3 9.56% Norco College (RCCD) 499 4.30% 456 4 4 3.90%
Target Stores 166 1.43% 161 5 5 1.38%
Quick Crete Products (QCP) 142 1.22% 160 6 6 1.37%
Winco Foods 128 1.10% 109 7 9 0.93%
City of Norco 123 1.06% 9
E-Z Up Instant Shelters 114 0.98% 129 8 7 1.10%
Hemborg Ford, Inc. 106 0.91% 110 10 8 0.97%
Keller Williams Realty 10 102 0.87%
Total 5,670 48.88% 8,670 74.10%
Total City Labor Force (1) 11,600
Source: MuniServices / Neumo
Source: FY2016, City of Norco -- ACFR Publication Report (1) Total City Labor Force provided by EDD Labor Force Data.

Notes:

CITY OF NORCO

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(176)
2016 2017 2018 2019 2020
Function/Program
General government
Administration 1 2 2 2 3
City Clerk 2 2 2 2 2
Finance 11 12 12 12 12
Human Resources 1 1 1 1 1
Public Safety
Police (Civilian) 1 1 1 1 1
Code Enforcement 1 1 1 1 1
Animal Services 3 2 3 3 3
Infrastructure
Facilities & Maintenance 0 0 0 0 0
Public Works 13 12 15 15 15
Culture and leisure
Community Services 8 10 10 10 10
Community development
Planning 2 2 2 2 2
Engineering 2 3 3 3 3
Building 3 3 3 3 3
Total 48 51 55 55 56 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
(177)
Function/Program
General government
Administration
City Clerk
Finance
Human Resources
Public Safety
Police (Civilian)
Code Enforcement
Animal Services
Infrastructure
Facilities & Maintenance
Public Works
Culture and leisure
Community Services
Community development
Planning
Engineering
Building
Total
Source: City's annual adopted budgets
2021 2022 2023 2024 2025
2 3 6 7 7
3 3 3 3 3
10 11 12 12 12
1 1 1 1 1
1 1 1 1 1
2 2 2 2 2
4 4 4 4 4
0 0 12 12 12
18 18 25 25 25
14 14 9 9 9
2 3 3 3 3
3 4 2 2 2
3 3 2 2 2
67 63 82 83 83
Full-time Equivalent Employees as of June 30

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(178)
2016 2017 2018 2019 2020
Function/Program
Police
UCR Crime index total 752 850 707 732 682
Traffic collisions 603 674 608 618 502
Traffic violations 1,869 2,031 2,175 2,384 2,770
Fire
Total number of responses 2,419 2,443 2,515 2,520 2,602 Fires extinguished 57 62 75 67 67
Water
Number of service connections 7,475 7,481 7,485 7,468 7,650 Average daily consumption (in mil. of gallons) 5 6 6 6 6 Max. daily (groundwater wells) capacity (in mil. of gallons) 8 5 5 5 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 6,913 6,954 6,972 6,969 6,970 Average daily treatment (in mil. of gallons) 2 2 2 2 2
Max. daily capacity of treatment plans (in mil. of gallons) 2 3 2 3 3 Source: Various City's departments
Fiscal Year

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(179)
Function/Program
Police
UCR Crime index total
Traffic collisions
Traffic violations
Fire
Total number of responses
Fires extinguished
Water
Number of service connections
Average daily consumption (in mil. of gallons)
Max. daily (groundwater wells) capacity (in mil. of gallons) Max. daily import capacity (in mil. of gallons)
Storage capacity (in mil. of gallons)
Sewer
Number of sewer connections
Average daily treatment (in mil. of gallons)
Max. daily capacity of treatment plans (in mil. of gallons) Source: Various City's departments
2021 2022 2023 2024 2025
631 715 757 694 555
482 558 516 524 585
2,721 3,168 2,977 3,182 3,186
2,799 3,025 2,930 3,403 3,398
109 87 58 71 65
7,476 7,471 7,488 7,958 7,958
6 6 6 5 5
5 5 6 4 4
9 9 9 9 9
14 14 14 14 14
6,963 6,963 6,963 6,963 6,963
2 2 2 2 2
3 3 3 3 3
Fiscal Year

CITY OF NORCO

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(180)
2016 2017 2018 2019 2020
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) 103 103 117 114 117
Fire hydrants 1,363 1,400 1,415 1,443 1,393
Sewer
Sanitary sewers (miles) 92 97 105 104 104
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
(181)
Function/Program
Public safety
Fire stations
Culture and leisure
Parks
Park Acreage
Open Space Acreage
Tennis court
Community center
Public playgrounds/Tot lots
Water
Water mains (miles)
Fire hydrants
Sewer
Sanitary sewers (miles)
Treatment plant
Source: Various City's departments
2021 2022 2023 2024 2025
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
122 122 122 120 120
1,394 1,406 1,406 1,406 1,406
107 109 109 109 109
1 1 1 1 1
Fiscal Year

(182)

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Honorable 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, 2025, and have issued our report thereon dated December 30, 2025. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our Statement of Work dated June 6, 2025.

Professional standards also require that we communicate to you the following information 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 1V, the entity changed accounting policies related to compensated absences by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 101, Compensated Absences, in the current year. In addition, the entity adopted GASB Statement No. 102, Certain Risk Disclosures, in the current year The adoption of these standards did not have a significant impact on the City’s financial reporting process.

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 affecting the financial statements was:
 The other post-employment benefits (OPEB) actuarially determined contribution, OPEB expense, total OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plan are based on certain actuarial assumptions and methods prepared by an outside consultant.
 Management’s estimate of the claims liability is based on actuarial valuation reports obtained from third party specialists.

Honorable City Council
City of Norco

We evaluated the key factors and assumptions used to develop these estimates in determining that they were 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 disclosure affecting the financial statements was Note 13 regarding the OPEB plan.

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

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
Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.

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 30, 2025.

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.

Honorable City Council
City of Norco

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 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 30, 2025.

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.

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. * * *

Honorable City Council
City of Norco

This communication is intended solely for the information and use of the City Council 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 30, 2025

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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 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, 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, 2025, and the related notes to the financial statements, which collectively comprise the City of Norco’s basic financial statements, and have issued our report thereon dated December 30, 2025.

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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Honorable Mayor and Members of 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

CliftonLarsonAllen LLP
Irvine, California
December 30, 2025

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, 2025

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(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, 2025. 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, 2025, 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 the Appropriations Limit Worksheet No. 6.

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

Honorable Mayor and Members of the City Council
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
August 20, 2025

CITY OF NORCO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Appropriations Limit Worksheet No. 6. (3)
Appropriations Limit for Fiscal Year Ended June 30, 2024 (see Note 2) 53,949,789 $ Adjustments Factors for the Fiscal Year Ended June 30, 2025 (see Note 2):

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

1.03620000 0.99850000 1.03464570 x 0.03464570
Adjustment for Inflation and Population 1,869,128
Other Adjustments (Note 5) -
Total Adjustments 1,869,128
Appropriations Limit for Fiscal Year Ended June 30, 2025 55,818,917 $

CITY OF NORCO
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2025
(4)
NOTE 1 PURPOSE OF AGREED UPON PROCEDURES
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 agreed-upon procedures 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 2024- 2025 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 2024-2025 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, 2025.

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
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

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 11

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(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, 2025, 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, 2025, and the changes in financial position 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, 2025, 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.

City Council Members
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.

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.

(3)
City Council Members
City of Norco
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 30, 2025 on our consideration of the City of Norco’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 of Norco’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 of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
December 30, 2025

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BALANCE SHEET
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(4)
ASSETS
Cash and Investments $ 13,009,392
Accrued Interest Receivable 73,283
Due from Other Governments 1,563,981
Total Assets $ 14,646,656

LIABILITIES
Accounts Payable $ 1,302,194
Retention Payable 237,991
Total Liabilities 1,540,185

FUND BALANCE
Unrestricted:

Committed 13,106,471
Total Fund Balances 13,106,471
Total Liabilities and Fund Balance 14,646,656 $

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(5)

REVENUES
Taxes $ 8,155,906
Investment Earnings 625,151
Other 14,211
Total Revenues 8,795,268

EXPENDITURES
Current:

General Government 6,600
Public Works 632,629
Capital Outlay 7,540,739
Total Expenditures 8,179,968
NET CHANGE IN FUND BALANCE 615,300
Fund Balance - Beginning of Year 12,491,171
FUND BALANCE - END OF YEAR $ 13,106,471

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(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 and vital services. 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, 2025
(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 quarterly 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, 2025
(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, 2025
See accompanying Note to Required Supplementary Information. (9)
Variance
with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
FUND BALANCE - BEGINNING OF YEAR $ 12,491,171 12,491,171 $ 12,491,171 $ - $

RESOURCES (INFLOWS)
Taxes 8,463,000 8,128,000 8,155,906 27,906
Investment Earnings 250,000 250,000 625,151 375,151
Other - - 14,211 14,211
Amount Available for Appropriations 8,713,000 8,378,000 8,795,268 417,268

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 11,400 11,400 6,600 4,800
Public Works 650,000 679,000 632,629 46,371
Capital Outlay 17,746,000 20,355,101 7,540,739 12,814,362 Total Charges to Appropriations 18,407,400 21,045,501 8,179,968 12,865,533 Excess of Resources Over (Under)
Charges for Appropriations (9,694,400) (12,667,501) 615,300 13,282,801 FUND BALANCE - END OF YEAR $ (176,330) 2,796,771 $ 13,106,471 $ 13,282,801 $

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(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)
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
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, as of and for the year ended June 30, 2025 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 30, 2025.

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 were not 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 on 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 30, 2025

City Council

STAFF REPORT
Date: February 4, 2026 Agenda Item:

3.E.

To: Honorable Mayor and City Council Members
From: Lisette Free, City Manager
Prepared By: Theresa Brennan, Assistant City Attorney
Department: Administration
SUBJECT:

Approval of a Use Restriction in Connection with the Transfer of Real Property (APN 122-080-049) from the Successor Agency to the City of Norco Pursuant to Health and Safety Code Section 34181(a)(1)).

RECOMMENDATION:

1. Adopt a resolution approving and authorizing the City Manager to execute and cause to be recorded a Use Restriction governing the transfer of approximately

0.34 acres of real property (APN 122-080-049) from the Successor Agency to the City of Norco; and

2. Authorize staff to submit the executed Use Restriction to the Countywide Oversight Board and the California Department of Finance for final approval.

SUMMARY:

On December 17, 2025, the Successor Agency adopted Resolution No. 2025-03 authorizing the transfer of approximately 0.34 acres of real property (APN 122-080-049) to the City of Norco for governmental use pursuant to Health and Safety Code Section 34181(a)(1). The City Council concurrently adopted Resolution No. 2025-76 accepting the transfer for continued governmental use as part of the City’s equestrian trail system and related open-space purposes.

The Riverside Countywide Oversight Board subsequently reviewed and approved the property transfer, subject to the condition that a recorded use restriction be imposed on the property to ensure its continued use for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1). This staff report and accompanying resolution implement that condition by approving a Use Restriction to be recorded against the property.

Approval of the proposed resolution will satisfy the Oversight Board’s condition and allow the Oversight Board to transmit the transfer and associated documents to the California Department of Finance (DOF) for final approval.

BACKGROUND:

The subject property is located on Lonesome Dove Court and is identified as Assessor’s Parcel Number 122-080-049. The property consists of approximately 0.34 acres and is intended to be maintained by the City for use as a public equestrian trail corridor and related open-space purposes. The legal description of the property is attached to this staff report.

Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), successor agencies may transfer real property used for governmental purposes to a sponsoring city pursuant to Health and Safety Code Section 34181(a)(1), subject to Oversight Board and Department of Finance review.

On December 17, 2025, the Successor Agency approved the transfer of the property to the City of Norco for governmental use as part of the City’s equestrian trail system, and the City Council accepted the transfer on the same date. Both actions were found to be exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15312.

On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer subject to the condition that a use restriction be recorded to ensure continued governmental use consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities.

The proposed Use Restriction memorializes the Oversight Board’s condition of approval and formally restricts the use of the property to governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1), including use as a public horse trail or related open-space purposes.

The Use Restriction further provides that no compensation shall be due to the taxing entities so long as the property is used for an authorized governmental or public purpose. In the event the City proposes to sell, lease, or otherwise transfer the property for non-governmental purposes, the Use Restriction establishes notice, appraisal, and compensation provisions consistent with the Dissolution Act.

Approval of the Use Restriction does not modify or reopen the previously approved property transfer. Rather, it implements a condition imposed by the Oversight Board as part of its approval and is necessary to complete the transfer process and obtain final approval from the Department of Finance.

FISCAL IMPACT:

There is no immediate fiscal impact associated with approval of the proposed Use Restriction.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 5 - "Infrastructure and Asset Management."

REVIEWED AND APPROVED BY:

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

CC Resolution Use Restriction
Draft Use Restriction
Exhibit A - Legal Description

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NORCO APPROVING AND AUTHORIZING THE

EXECUTION AND RECORDATION OF A USE

RESTRICTION AFFECTING CERTAIN REAL PROPERTY

LOCATED AT LONESOME DOVE COURT, ASSESSOR
PARCEL NUMBER 122-080-049, PURSUANT TO HEALTH
AND SAFETY CODE SECTION 34181(a)(1)
WHEREAS, Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), the Successor Agency to the former Norco Community Redevelopment Agency (“Successor Agency”) is authorized to transfer real property used for governmental purposes to the City of Norco pursuant to Health and Safety Code Section 34181(a)(1), subject to review and approval by the applicable oversight board and the California Department of Finance; and WHEREAS, On December 17, 2025, the Successor Agency adopted Resolution No. 2025-03 approving the transfer of approximately 0.34 acres of real property identified as Assessor’s Parcel Number 122-080-049 (“Property”) to the City of Norco for governmental use; and
WHEREAS, On the same date, the City Council of the City of Norco adopted Resolution No. 2025-76 accepting the transfer of the Property for continued governmental use as part of the City’s equestrian trail system; and WHEREAS, On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer of the Property, subject to the condition that a use restriction be recorded against the Property to ensure continued governmental use consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities; and
WHEREAS, The City of Norco desires to approve and record the Use Restriction required by the Riverside Countywide Oversight Board as a condition of the previously approved transfer.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Norco as follows:

1. That the above recitals are true and correct and are a substantive part of this Resolution and are incorporated herein.

2. That the City Council hereby approves the Use Restriction governing the Property, substantially in the form presented to the City Council, as required by the Riverside Countywide Oversight Board in connection with its approval of the transfer of the Property.

3. That the City Manager, or designee, is hereby authorized to execute the Use Restriction on behalf of the City and to cause the Use Restriction to be recorded against the Property.

4. That the City Manager, or designee, is authorized to take all actions necessary or convenient to carry out the intent of this Resolution, including submission of the executed Use Restriction to the Riverside Countywide Oversight Board and the California Department of Finance for final approval.

5. That this Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Norco, at a regular meeting held on February 4, 2026.
_______________________________
Robin Grundmeyer, Mayor
ATTEST:
_______________________________
Interim City Clerk

CERTIFICATION
I, ____________, Interim City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Norco acting as the Successor Agency, held on February 4, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco on ______________, 2026.
_______________________________
Interim City Clerk

RECORDING REQUESTED BY:

City of Norco
City Clerk’s Office
WHEN RECORDED MAIL TO:

City of Norco
City Clerk’s Office
2870 Clark Avenue
Norco, CA 92860
Space above this line for recorder use

USE RESTRICTION
(Health and Safety Code § 34181(a)(1))
This Use Restriction (“Use Restriction”) is made as of ____________, 2026, by and between the City of Norco, a California municipal corporation (“City” or “Owner”), and the Successor Agency to the Former Norco Community Redevelopment Agency, California (“Successor Agency”).

RECITALS
WHEREAS, Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), the Successor Agency is authorized to transfer real property used for governmental purposes to the City pursuant to Health and Safety Code Section 34181(a)(1), subject to review and approval by the applicable oversight board and the California Department of Finance.

WHEREAS, On December 17, 2025, the Successor Agency approved the transfer of approximately 0.34 acres of real property identified as Assessor’s Parcel Number 122-080-049 (“Property”) to the City for governmental use, and the City Council accepted the transfer for such purpose.

WHEREAS, On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer of the Property, subject to the condition that a use restriction be recorded against the Property to ensure its continued use for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities.

WHEREAS, The City desires to comply with the Oversight Board’s condition of approval by recording this Use Restriction against the Property.

NOW, THEREFORE, the City agrees as follows:

1. Restricted Use
The Property shall be retained and used by the City solely for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1), including but not limited to use as a

public equestrian trail corridor, open space, or similar governmental use.

So long as the Property is used for a governmental or public purpose consistent with Health and Safety Code Section 34181(a)(1), no compensation shall be due or payable to the taxing entities.

2. Non-Governmental Transfer
In the event the City sells, leases, or otherwise transfers the Property, or any portion thereof, to a third party for a non-governmental purpose not consistent with Health and Safety Code Section 34181(a)(1) (a “Non-Governmental Transfer”), the City shall comply with the compensation provisions set forth below.

The City shall provide written notice of any proposed Non-Governmental Transfer to the Riverside Countywide Oversight Board at least forty-five (45) days prior to the proposed transfer.

3. Valuation and Compensation
In the event of a Non-Governmental Transfer:
a. The Property shall be valued by formal appraisal, and the appraised value shall be used as the purchase price (“Purchase Price”).
b. The “Net Purchase Price” shall mean the Purchase Price received by the City, less the City’s actual and reasonable costs paid to third-party vendors for appraisal, legal, real estate consulting, marketing, title, escrow, closing, and other transaction-related costs (“Costs of Sale”). c. The City shall maintain complete and accurate records of all Costs of Sale and the calculation of the Net Purchase Price.
d. The additional compensation payable to each taxing entity shall be determined by multiplying the applicable tax rate for each taxing entity, as provided by the County Auditor-Controller, by the Net Purchase Price (“Additional Compensation Amount”).

4. Distribution of Proceeds
Within five (5) business days following approval by the Riverside Countywide Oversight Board of the Additional Compensation Amount, the City or escrow agent acting on behalf of the City shall remit the Additional Compensation Amount to the County Auditor-Controller for distribution to the taxing entities in accordance with Health and Safety Code Sections 34183 and 34188.

5. Covenant Running with the Land
This Use Restriction is a covenant running with the land and shall be binding upon the City and any successors or assigns.

6. Recordation
This Use Restriction shall be recorded against the Property in the Official Records of the County of Riverside.

7. No Third-Party Beneficiaries
Nothing in this Use Restriction shall be construed to create any rights in any third party except as expressly provided for the benefit of the taxing entities pursuant to the Dissolution Act.

LEGAL DESCRIPTION
The legal description of the Property is attached hereto as Exhibit A and incorporated herein by reference.

IN WITNESS WHEREOF:

CITY OF NORCO
By: _______________________________
Lisette Free, City Manager
Date: _____________________________

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF NORCO
By: _______________________________
Lisette Free, Executive Director
Date: _____________________________

PAGE FOR NOTARY ACKNOWLEDGEMENT FOR CITY

PAGE FOR NOTARY ACKNOWLEDGEMENT FOR SUCCESSOR AGENCY

Exhibit "A"
Legal Descriptions of Proposed Parcels
PROPOSED PARCEL B (portion of APN 122-080-040)
Those portions of parcel 3, a; shown en a map recorded in Book 42 page 87, Record of Survey, records of Riverside County, California, together with a portion of parcel 3 a; shown en a map filed in Book 41, page 63, Record of Survey, records of said County, more particularly described a; follows:

Beginning a: the northeast comer of first said parcel 3, said comer also being the radius point of a private driveway easement (Hillkirk Avenue) a; shown en said map, thence °
along the northerly line of first said parcel 3, North 79 59' 40" West, 182.92 feet 1D the northwest comer of first said parcel 3; thence southerly along the westerly line of first said parcel 3, South 24 ° 09' 00" West, 128.65 feet to the northeast comer of that certain parcel of land described in a deed 1D the Norco Redevelopment Agency by Director's Deed DDOl5401 -0I-OI, recorded July 20, 2000 a; Instrument No. 2000-280476, records of said County, said comer being the TRUE POINT OF BEGINNING; thence continuing along said westerly line, South 24 ° 09'00" West, 35.28 feet; thence leaving said westerly line, South 'i9
° 31' 16' West, 96.56 feet to a point lying en the easterly right of way line for Valley View Avenue; thence along said easterly line, South 10°27' 15" East, 25.00 feet; thence South 51 °
51' 45" East, 67.25 feet; thence South ffi
0 36' 58" East,

75.84 feet to a point lying en the southeasterly line of first said parcel 3; thence southwesterly along the southerly line of second said parcel 3, South 63° 19' 45" West, 160.5 l feet to the westerly line of that certain parcel of land described il said Director's Deed; thence along said westerly line, North 10° 28' 44" West, 189.54 feet; thence along the northerly line of said Director's Deed, North 'i9
° 31' 16' East, 102.43 feet; thence
continuing along said northerly line, North 10°
28'44" West, 1432 feet; thence continuing
along said northerly line, North ffi O 52 '3 I" East, 62.66 feet to the TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM that portion described a; follows:

Created: August I 0, 2007

Exhibit "A"
Legal Descriptions of Proposed Parcels
That portion of parcel 3 as shown m a map filed in Book 41, page 63, Record of Survey, in the Office of the County Recorder of said County, more particularly described as follows:

BEGINNING at the northeast comer of that certain parcel of land described in a deed to the Norco Redevelopment Agency by Director's Deed CXX) 15401-01-0 I, recorded July 20, 2000 as Instrwnent No. 2000-280476, records of said County; thence along the westerly line of Parcel 3 as shown m a map filed in Book 42, page 87, Record of Survey, i1 the Office of the County Recorder of said County, South 24° 09'00" West,

35.28 feet; thence leaving said westerly line, South 79 ° 31' 16" West, 96.56 feet to a
point lying m the easterly right of way line for Valley View A venue; thence along said easterly right of way line, North !0°
27' 15" West 25.97 feet to a point m the
north line of said Director's Deed; thence along the northerly line of said Director's Deed, North 79° 31' 16" East, 54.96 feet; thence continuing along said northerly line, North 10°
28'44" West, 14.32 feet; thence continuing along said northerly line, North 89 °
52'31" East, 62.66 feet to the POINT OF BEGINNING.

Area of said parcel is approximately 14,719 square feet.

Prepared by or under the direction of:

R���

CONSUL TING GROUP
398 Lemon Creek Drive, Suite E
Walnut, California 91789
r I a g j / 9 4 -265: / , /4
6 7
David G. Gilbertson, LS 6941 Date

Created: August IO, 2007 Page 270 of 296
City Council

STAFF REPORT
Date: February 4, 2026 Agenda Item:

3.F.

To: Honorable Mayor and City Council Members
From: Lisette Free, City Manager
Prepared By: Theresa Brennan, Assistant City Attorney
Department: Administration
SUBJECT:

Approval of a Use Restriction in Connection with the Transfer of Real Property (APN 122-080-049) to the City of Norco Pursuant to Health and Safety Code Section 34181(a)(1)
RECOMMENDATION:

1. Adopt a resolution approving and authorizing the City Manager to execute and cause to be recorded a Use Restriction governing the transfer of approximately

0.34 acres of real property (APN 122-080-049) from the Successor Agency to the City of Norco; and

2. Authorize staff to submit the executed Use Restriction to the Countywide Oversight Board and the California Department of Finance for final approval.

SUMMARY:

On December 17, 2025, the Successor Agency adopted Resolution No. 2025-03 authorizing the transfer of approximately 0.34 acres of real property (APN 122-080-049) to the City of Norco for governmental use pursuant to Health and Safety Code Section 34181(a)(1). The City Council concurrently adopted Resolution No. 2025-76 accepting the transfer for continued governmental use as part of the City’s equestrian trail system and related open-space purposes.

The Riverside Countywide Oversight Board subsequently reviewed and approved the property transfer, subject to the condition that a recorded use restriction be imposed on the property to ensure its continued use for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1). This staff report and accompanying resolution implement that condition by approving a Use Restriction to be recorded against the property.

Approval of the proposed resolution will satisfy the Oversight Board’s condition and allow the Oversight Board to transmit the transfer and associated documents to the California Department of Finance (DOF) for final approval.

BACKGROUND:

The subject property is located on Lonesome Dove Court and is identified as Assessor’s Parcel Number 122-080-049. The property consists of approximately 0.34 acres and is intended to be maintained by the City for use as a public equestrian trail corridor and related open-space purposes. The legal description of the property is attached to this staff report.

Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), successor agencies may transfer real property used for governmental purposes to a sponsoring city pursuant to Health and Safety Code Section 34181(a)(1), subject to Oversight Board and Department of Finance review.

On December 17, 2025, the Successor Agency approved the transfer of the property to the City of Norco for governmental use as part of the City’s equestrian trail system, and the City Council accepted the transfer on the same date. Both actions were found to be exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15312.

On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer subject to the condition that a use restriction be recorded to ensure continued governmental use consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities.

The proposed Use Restriction memorializes the Oversight Board’s condition of approval and formally restricts the use of the property to governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1), including use as a public horse trail or related open-space purposes.

The Use Restriction further provides that no compensation shall be due to the taxing entities so long as the property is used for an authorized governmental or public purpose. In the event the City proposes to sell, lease, or otherwise transfer the property for non-governmental purposes, the Use Restriction establishes notice, appraisal, and compensation provisions consistent with the Dissolution Act.

Approval of the Use Restriction does not modify or reopen the previously approved property transfer. Rather, it implements a condition imposed by the Oversight Board as part of its approval and is necessary to complete the transfer process and obtain final approval from the Department of Finance.

FISCAL IMPACT:

There is no immediate fiscal impact associated with approval of the proposed Use Restriction.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction No. 5 - Infrastructure and Asset Management."

REVIEWED AND APPROVED BY:

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

SA Resolution Use Restriction
Draft Use Restriction
Exhibit A - Legal Description

RESOLUTION NO. _______

A RESOLUTION OF THE CITY OF NORCO AS

SUCCESSOR AGENCY TO THE FORMER NORCO

COMMUNITY REDEVELOPMENT AGENCY, CALIFORNIA,

APPROVING A USE RESTRICTION IN CONNECTION

WITH THE TRANSFER OF CERTAIN REAL PROPERTY

LOCATED AT LONESOME DOVE COURT, ASSESSOR
PARCEL NUMBER 122-080-049, PURSUANT TO HEALTH
AND SAFETY CODE SECTION 34181(a)(1)
WHEREAS, Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), the Successor Agency to the former Norco Community Redevelopment Agency (“Successor Agency”) is authorized to transfer real property used for governmental purposes to the City of Norco pursuant to Health and Safety Code Section 34181(a)(1), subject to review and approval by the applicable oversight board and the California Department of Finance; and WHEREAS, On December 17, 2025, the Successor Agency adopted Resolution No. 2025-03 approving the transfer of approximately 0.34 acres of real property identified as Assessor’s Parcel Number 122-080-049 (“Property”) to the City of Norco for governmental use; and
WHEREAS, On the same date, the City Council of the City of Norco adopted Resolution No. 2025-76 accepting the transfer of the Property for continued governmental use as part of the City’s equestrian trail system; and WHEREAS, On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer of the Property, subject to the condition that a use restriction be recorded against the Property to ensure continued governmental use consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities; and
WHEREAS, The Successor Agency desires to approve the Use Restriction required by the Oversight Board as a condition of the previously approved transfer.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Norco as Successor Agency to the former Norco Community Redevelopment Agency, California, as follows:

1. That the above recitals are true and correct and are a substantive part of this Resolution and are incorporated herein.

2. That the Successor Agency hereby approves the Use Restriction governing the Property, substantially in the form presented to the Successor Agency, as required by the Riverside Countywide Oversight Board in connection with its approval of the transfer of the Property.

3. That the City Manager, or designee, is hereby authorized to execute the Use Restriction on behalf of the Successor Agency and to cause the Use Restriction to be recorded against the Property.

4. That the City Manager, or designee, is authorized to take all actions necessary or convenient to carry out the intent of this Resolution, including submission of the executed Use Restriction to the Riverside Countywide Oversight Board and the California Department of Finance for final approval.

5. That this Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Norco, acting as the Successor Agency to the former Norco Community Redevelopment Agency, at a regular meeting held on February 4, 2026.
_______________________________
Robin Grundmeyer, Mayor / Successor Agency Chairperson
ATTEST:
_______________________________
Interim City Clerk

CERTIFICATION
I, ____________, Interim City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Norco acting as the Successor Agency, held on February 4, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco on ______________, 2026.
_______________________________
Interim City Clerk

RECORDING REQUESTED BY:

City of Norco
City Clerk’s Office
WHEN RECORDED MAIL TO:

City of Norco
City Clerk’s Office
2870 Clark Avenue
Norco, CA 92860
Space above this line for recorder use

USE RESTRICTION
(Health and Safety Code § 34181(a)(1))
This Use Restriction (“Use Restriction”) is made as of ____________, 2026, by and between the City of Norco, a California municipal corporation (“City” or “Owner”), and the Successor Agency to the Former Norco Community Redevelopment Agency, California (“Successor Agency”).

RECITALS
WHEREAS, Pursuant to the Dissolution Act (Health & Safety Code §§ 34170 et seq.), the Successor Agency is authorized to transfer real property used for governmental purposes to the City pursuant to Health and Safety Code Section 34181(a)(1), subject to review and approval by the applicable oversight board and the California Department of Finance.

WHEREAS, On December 17, 2025, the Successor Agency approved the transfer of approximately 0.34 acres of real property identified as Assessor’s Parcel Number 122-080-049 (“Property”) to the City for governmental use, and the City Council accepted the transfer for such purpose.

WHEREAS, On January 15, 2026, the Riverside Countywide Oversight Board approved the transfer of the Property, subject to the condition that a use restriction be recorded against the Property to ensure its continued use for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1) and to protect the interests of the taxing entities.

WHEREAS, The City desires to comply with the Oversight Board’s condition of approval by recording this Use Restriction against the Property.

NOW, THEREFORE, the City agrees as follows:

1. Restricted Use
The Property shall be retained and used by the City solely for governmental or public purposes consistent with Health and Safety Code Section 34181(a)(1), including but not limited to use as a

public equestrian trail corridor, open space, or similar governmental use.

So long as the Property is used for a governmental or public purpose consistent with Health and Safety Code Section 34181(a)(1), no compensation shall be due or payable to the taxing entities.

2. Non-Governmental Transfer
In the event the City sells, leases, or otherwise transfers the Property, or any portion thereof, to a third party for a non-governmental purpose not consistent with Health and Safety Code Section 34181(a)(1) (a “Non-Governmental Transfer”), the City shall comply with the compensation provisions set forth below.

The City shall provide written notice of any proposed Non-Governmental Transfer to the Riverside Countywide Oversight Board at least forty-five (45) days prior to the proposed transfer.

3. Valuation and Compensation
In the event of a Non-Governmental Transfer:
a. The Property shall be valued by formal appraisal, and the appraised value shall be used as the purchase price (“Purchase Price”).
b. The “Net Purchase Price” shall mean the Purchase Price received by the City, less the City’s actual and reasonable costs paid to third-party vendors for appraisal, legal, real estate consulting, marketing, title, escrow, closing, and other transaction-related costs (“Costs of Sale”). c. The City shall maintain complete and accurate records of all Costs of Sale and the calculation of the Net Purchase Price.
d. The additional compensation payable to each taxing entity shall be determined by multiplying the applicable tax rate for each taxing entity, as provided by the County Auditor-Controller, by the Net Purchase Price (“Additional Compensation Amount”).

4. Distribution of Proceeds
Within five (5) business days following approval by the Riverside Countywide Oversight Board of the Additional Compensation Amount, the City or escrow agent acting on behalf of the City shall remit the Additional Compensation Amount to the County Auditor-Controller for distribution to the taxing entities in accordance with Health and Safety Code Sections 34183 and 34188.

5. Covenant Running with the Land
This Use Restriction is a covenant running with the land and shall be binding upon the City and any successors or assigns.

6. Recordation
This Use Restriction shall be recorded against the Property in the Official Records of the County of Riverside.

7. No Third-Party Beneficiaries
Nothing in this Use Restriction shall be construed to create any rights in any third party except as expressly provided for the benefit of the taxing entities pursuant to the Dissolution Act.

LEGAL DESCRIPTION
The legal description of the Property is attached hereto as Exhibit A and incorporated herein by reference.

IN WITNESS WHEREOF:

CITY OF NORCO
By: _______________________________
Lisette Free, City Manager
Date: _____________________________

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF NORCO
By: _______________________________
Lisette Free, Executive Director
Date: _____________________________

PAGE FOR NOTARY ACKNOWLEDGEMENT FOR CITY

PAGE FOR NOTARY ACKNOWLEDGEMENT FOR SUCCESSOR AGENCY

Exhibit "A"
Legal Descriptions of Proposed Parcels
PROPOSED PARCEL B (portion of APN 122-080-040)
Those portions of parcel 3, a; shown en a map recorded in Book 42 page 87, Record of Survey, records of Riverside County, California, together with a portion of parcel 3 a; shown en a map filed in Book 41, page 63, Record of Survey, records of said County, more particularly described a; follows:

Beginning a: the northeast comer of first said parcel 3, said comer also being the radius point of a private driveway easement (Hillkirk Avenue) a; shown en said map, thence °
along the northerly line of first said parcel 3, North 79 59' 40" West, 182.92 feet 1D the northwest comer of first said parcel 3; thence southerly along the westerly line of first said parcel 3, South 24 ° 09' 00" West, 128.65 feet to the northeast comer of that certain parcel of land described in a deed 1D the Norco Redevelopment Agency by Director's Deed DDOl5401 -0I-OI, recorded July 20, 2000 a; Instrument No. 2000-280476, records of said County, said comer being the TRUE POINT OF BEGINNING; thence continuing along said westerly line, South 24 ° 09'00" West, 35.28 feet; thence leaving said westerly line, South 'i9
° 31' 16' West, 96.56 feet to a point lying en the easterly right of way line for Valley View Avenue; thence along said easterly line, South 10°27' 15" East, 25.00 feet; thence South 51 °
51' 45" East, 67.25 feet; thence South ffi
0 36' 58" East,

75.84 feet to a point lying en the southeasterly line of first said parcel 3; thence southwesterly along the southerly line of second said parcel 3, South 63° 19' 45" West, 160.5 l feet to the westerly line of that certain parcel of land described il said Director's Deed; thence along said westerly line, North 10° 28' 44" West, 189.54 feet; thence along the northerly line of said Director's Deed, North 'i9
° 31' 16' East, 102.43 feet; thence
continuing along said northerly line, North 10°
28'44" West, 1432 feet; thence continuing
along said northerly line, North ffi O 52 '3 I" East, 62.66 feet to the TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM that portion described a; follows:

Created: August I 0, 2007

Exhibit "A"
Legal Descriptions of Proposed Parcels
That portion of parcel 3 as shown m a map filed in Book 41, page 63, Record of Survey, in the Office of the County Recorder of said County, more particularly described as follows:

BEGINNING at the northeast comer of that certain parcel of land described in a deed to the Norco Redevelopment Agency by Director's Deed CXX) 15401-01-0 I, recorded July 20, 2000 as Instrwnent No. 2000-280476, records of said County; thence along the westerly line of Parcel 3 as shown m a map filed in Book 42, page 87, Record of Survey, i1 the Office of the County Recorder of said County, South 24° 09'00" West,

35.28 feet; thence leaving said westerly line, South 79 ° 31' 16" West, 96.56 feet to a
point lying m the easterly right of way line for Valley View A venue; thence along said easterly right of way line, North !0°
27' 15" West 25.97 feet to a point m the
north line of said Director's Deed; thence along the northerly line of said Director's Deed, North 79° 31' 16" East, 54.96 feet; thence continuing along said northerly line, North 10°
28'44" West, 14.32 feet; thence continuing along said northerly line, North 89 °
52'31" East, 62.66 feet to the POINT OF BEGINNING.

Area of said parcel is approximately 14,719 square feet.

Prepared by or under the direction of:

R���

CONSUL TING GROUP
398 Lemon Creek Drive, Suite E
Walnut, California 91789
r I a g j / 9 4 -265: / , /4
6 7
David G. Gilbertson, LS 6941 Date

Created: August IO, 2007 Page 283 of 296
City Council

STAFF REPORT
Date: February 4, 2026 Agenda Item:

3.G.

To: Honorable Mayor and City Council Members
From: Sam Nelson, Public Works Director
Prepared By: Sam Nelson, Public Works Director
Department: Public Works
SUBJECT:

Approval of Parcel Map 39067
RECOMMENDATION:

Approve Parcel Map 39067 and authorize the City Clerk to sign the map and authorize the Final Map be transmitted to the County Recorder.

SUMMARY:

The City Council considered this matter on November 19, 2025, when Tentative Parcel Map 39067 was approved by Resolution No. 2025-73. The map proposes to subdivide

2.22 acres into two (2) parcels. The map meets the City requirements and is ready for acceptance.

BACKGROUND:

On November 19, 2025, the City Council approved Tentative Tract Map 39067 which subdivides 2.22 acres into two parcels (See Parcel Map 39067). The property is located at the westerly intersection of River Road and Corydon Avenue. The map proposes to subdivide 2.22 acres into two (2) parcels. Parcel 2 of Parcel Map No. 36999 will be subdivided into the two parcels as well as a lot line adjustment to Parcel 1.

The map has been submitted for review and is in substantial compliance with the approved Tentative Tract Map, as well as all applicable codes. The subdivision meets all requirements of the resolution approving the tentative map.

FISCAL IMPACT:

This agenda item will not result in a fiscal impact.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction No. 3 - "Economic Development and Financial Stability."
REVIEWED AND APPROVED BY:

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

PM 39067

City Council

STAFF REPORT
Date: February 4, 2026 Agenda Item:

5.A.

To: Honorable Mayor and City Council Members
From: Mark Tomich, Interim Community Development
Director
Prepared By: Mark Tomich, Interim Community Development Director
Department: Community Development
SUBJECT:

Second Reading, Ordinance No.1138 adopting Zone Code Amendment 2025-02 (City of Norco): A City initiated amendment to Title 18, Section 18.30.46 – Accessory Dwelling Units and Junior Accessory Dwelling Units, updating/clarifying the provisions for compliance with State law.

RECOMMENDATION:

Adopt Second Reading of Ordinance No. 1138 approving Zone Code Amendment 2025-02
SUMMARY:

The First Reading of Ordinance No. 1138 was introduced by the City Council on January 21, 2026.

BACKGROUND:

Government Code Sections 66310-66342 (“State ADU Law”) require local agencies to permit accessory dwelling units (“ADUs”) on lots with proposed or existing primary residences. State ADU Law authorizes local agencies to adopt ordinances regulating ADUs provided that such local regulations must be consistent with the limitations in State ADU Law. Any locally adopted regulations must be submitted to the Department of Housing and Community Development (“HCD”) for review, and HCD is required to make findings as to whether the local ordinance is consistent with State ADU Law.

Section 18.30.46 of the Norco Municipal Code contains the City’s ADU regulations (“City ADU Ordinance”). The City ADU Ordinance has been amended several times over the years to address changes in State ADU Law. The last amendment was by Ordinance No. 1117, adopted on June 19, 2024. The City submitted Ordinance No. 1117 to HCD as required by State ADU Law, and on July 23, 2025, HCD sent the City a

letter making several findings of inconsistency with State ADU Law. The City responded to these findings by letter dated August 20, 2025. In its response, the City disputed some of the findings while also committing to make certain amendments to the City ADU Ordinance to clarify provisions.

On October 10, 2025, Governor Newsom signed SB 543 and AB 1154 into law, which amends State ADU Law effective January 1, 2026.

This Zone Code Amendment makes the amendments the City committed to make in its letter to HCD, the amendments necessitated by the adoption of SB 543 and AB 1154, and other edits for clarity and consistency with State ADU Law and to eliminate repetition.

Summary of the Amendments: HCD’s comments on the City ADU Ordinance primarily centered on clarifying exceptions to the City’s standards, specifically with respect to ADUs permitted under Section 66323 of the State ADU Law (“State Exempt ADUs”) and the requirement in Section 66321 of the State ADU Law that the City waive compliance with certain development standards if compliance would preclude an “at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” In its response to HCD, the City committed to amending the City ADU Ordinance to clarify these exceptions.

State Exempt ADUs are those ADUs that meet the requirements of Section 66323(a)(1)-(4) of the State ADU Law. If an ADU qualifies as State Exempt ADU then the City can only require compliance with the development standards in Section 66323; compliance with the development standards in the City ADU Ordinance is not required.

For single-family properties, Section 66323 requires the City to allow up to three (3) ADUs on the lot: one JADU, one detached ADU (new construction only, not too exceed 800 square feet), and one attached ADU (within the existing space of the home or an accessory structure on the lot, or within the proposed space of the home if home is new construction). Notably, Section 66323 does not apply to ADUs that are additions to an existing single-family residence.

In addition, HCD demanded that certain provisions of the City ADU Ordinance be removed, however, the City disagreed with those demands as they were inconsistent with State ADU Law and HCD’s ADU Handbook. Findings have been included in the proposed resolution (that will be included in the proposed ordinance for adoption by the City Council) to support the City’s refusal to make those changes as required by State ADU Law.

The biggest change to the City ADU Ordinance as a result of new legislation is the addition of application processing timelines and procedures. SB 543 added a requirement that local agencies determine an application for an ADU complete or incomplete within 15 days of receipt of the application or any resubmittal, and requires that the application be deemed complete if a timely determination of completeness is not made. SB 543 also provides an applicant with a right to appeal a determination of incompleteness and a denial of a permit for an ADU. The Proposed Ordinance includes provisions consistent with these new procedural requirements. In addition, as required by SB 543, the maximum square footages for ADUs are updated to specify that they are the maximum “interior livable space” and, as required by AB 1154, owner occupancy

will no longer be required for a JADU if it has its own sanitation facilities apart from the primary residence.

Other clarifying edits to the City ADU Ordinance include:
 Add definitions for “attached” and “detached” ADUs and revising existing language to consistently utilize these defined terms.
 Add definitions included in the State ADU Law that were missing from the City ADU Ordinance.
 The maximum size of a detached ADU is decreased from 1,200 square feet to 850 square feet (studio or one (1) bedroom) or 1,000 square feet (two+ (2+) bedrooms), as permitted by Section 66321(b)(2) of the State ADU Law.  Increase the number of detached ADUs permitted on a lot with existing multifamily residences from two (2) to eight (8), consistent with a previous amendment to the State ADU Law.
 Add a new subsection regarding the legalization of unpermitted ADUs constructed before January 1, 2020 consistent with previous amendments to the State ADU Law.

Planning Commission: The Planning Commission reviewed Zone Code Amendment 2025-02 at their meeting on October 8, 2025. The Commission recommended approval of Zone Code Amendment 2025-02 per the amendments noted above, with direction that: we reach out to our legal team to see if there was anyway the City could push back on the State's ADU fire sprinklers law, especially in instances where a property owner builds all three exempt ADUs that could potentially double the square-footage of livable space on a property, due to the recent statewide fire hazard situation and in light of the new fire hazards maps.

The language reflected in the proposed ordinance is lifted verbatim from the State ADU Law, Government Code Section 66314(d). Per the State's ADU law, "fire sprinklers cannot be required for an ADU if they are not required for the primary residence. The construction of an accessory dwelling unit cannot not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling". In other words (per the opinion of our legal team), if the existing primary residence has sprinklers then the ADU must have sprinklers. If it does not, then the ADU is not required to have sprinklers.

Furthermore, HCD seems to take the position that if an attached ADU is built to a primary dwelling without sprinklers then neither the ADU or the primary dwelling need to have sprinklers, even if under the Building Code a fire sprinkler retrofit would normally be required for an addition of that size to the structure.

Based on the information on fire sprinklers noted above, there are no recommendations for deviations from State ADU law with the proposed ordinance.

California Environmental Quality Act (CEQA): The adoption of the proposed ordinance is statutorily exempt from review under the California Environmental Quality Act (CEQA)

pursuant to Public Resources Code Section 21080.17, which exempts from CEQA review the adoption of an ordinance to implement State ADU Law.

Charter Issue: This is a charter issue that requires a 4/5 vote for approval. The pros of adopting this Ordinance is that it will bring the City's ADU Ordinance into compliance with state law. The cons to adopting this ordinance is that it will further reduce the City's control/discretion over new structures on private property not only in the City of Norco, but statewide, for which compliance is mandatory.

FISCAL IMPACT:

This agenda items will not result in a fiscal impact.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Plan Direction No. 3, Economic Development and Financial Stability.

REVIEWED AND APPROVED BY:

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

CC Odinance No.1138, for Zone Code Amendment 2025-02

ORDINANCE NO. 1138

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, APPROVING ZONE CODE AMENDMENT 2025-02: A
CITY INITIATED AMENDMENT TO TITLE 18, SECTION 18.30.46 –

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS, UPDATING/CLARIFYING THE PROVISIONS

RELATED TO ACCESSORY DWELLING UNITS (ADUS) AND JUNIOR

ACCESSORY DWELLING UNITS (JADUS) TO COMPLY WITH STATE
LAW.

WHEREAS, the CITY OF NORCO initiated Zone Code Amendment 2025-02, a proposal to amend Section 18.30.46 of the Norco Municipal Code Title 18 (Accessory Dwelling Units and Junior Accessory Dwelling Units); and WHEREAS, Section 18.30.46 of the Norco Municipal Code contains regulations on the development of accessory dwelling units within the City, and is regularly amended to remain consistent with evolving State laws impacting local regulation of accessory dwelling units; and
WHEREAS, State law requires the City to submit any amendments to its accessory dwelling unit ordinance to the Department of Housing and Community Development (HCD) within sixty (60) days of adoption, and HCD will render findings of conformity or non-conformity with State law to the City, and the City has thirty (30) days to respond to the letter; and
WHEREAS, the City last amended Section 18.30.46 through the adoption of Ordinance No. 1117, adopted June 19, 2024, and submitted the ordinance to HCD for its review. HCD provided the City with a letter making certain findings of inconsistency and additional recommendations for clarity on July 23, 2025. The City responded to HCD’s letter on August 20, 2025 agreeing to make certain amendments to Section 18.30.46 while refusing to make three amendments requested by HCD; and WHEREAS, the purpose of Zone Code Amendment 2025-05 is to make the amendments the City committed to make in its August 20, 2025 letter to HCD, adopt findings supporting its refusal to make certain changed requested by HCD, further update Section 18.30.46 as necessitated by the adoption of SB 543 and AB 1154 which go into effect on January 1, 2026, and make other clarifying edits.

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 on December 10, 2025 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, the Planning Commission adopted Resolution 2025-33, recommending approval of Zone Code Amendment 2025-02 to the City Council; and

Ordinance No 1138 for Zone Code Amendment 2025-02
February 4, 2026
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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 21, 2026 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, Zone Code Amendment 2025-02 is exempt from review under the California Environmental Quality Act (CEQA).

NOW, THEREFORE, the City Council of the City of Norco ordains as follows:

SECTION 1. FINDINGS.

The City Council makes the following findings, as required by Government Code Section 66326(b)(2)(B), in support of its determination to not incorporate the following changes to Section 18.30.46 of the Norco Municipal Code as demanded by HCD in its letter dated July 23, 2025:

A. HCD Demand: “The City must remove the requirement that converted units not exceed 50 percent of the existing primary dwelling.” Finding: Section 18.30.46.E.1.a (renumbered by this Ordinance to Section

18.30.46.E.1) restricts the size of a conversion of existing space in a primary dwelling to no more than 50% of the existing space. This provision is expressly authorized by Government Code Section 66314(d)(4) (“If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling.”). HCD’s ADU Handbook (updated January 2025) acknowledges this size limitation on pages 39-40.

Therefore, the finding that the City must remove this provision entirely is not supported by the State ADU Law or HCD’s guidance and the City will not remove this provision. However, the City has clarified the exemptions from compliance in the new paragraph E.19 of Section 18.30.46, as shown in Exhibit A hereto.

B. HCD Demand: “The City must remove the language requiring minimum distance between structures.”
Finding: Section 18.30.46.E.2.c (renumbered by this Ordinance to Section

18.30.46.E.2.d) requires 10 feet of distance between a detached ADU and all other buildings on the lot. This provision is allowed by Government Code Section 66314(b)(1)’s authorization for local agencies to impose objective standards on

Ordinance No 1138 for Zone Code Amendment 2025-02
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ADUs that include, but are not limited to parking, height, and other examples listed.

The authority to impose building separation objective standards is acknowledged on page 38 of HCD’s ADU Handbook. Therefore, the finding that the City must remove this provision entirely is not supported by the State ADU Law or HCD’s guidance and the City will not remove this provision. However, the City has clarified the exemptions from compliance in the new paragraph E.19 of Section 18.30.46, as shown in Exhibit A hereto.

C. HCD Demand: “Section 66314 and indeed State ADU Law does not provide for additional standards such as the City’s primary animal keeping area. Therefore, the City must remove this section from its Ordinance.”
Finding: The City requires that an animal keeping area be preserved on lots where large animal keeping is a permitted use. The size of the required animal keeping area is informed by the size of the lot, with most lots subject to this requirement exceeding 20,000 square feet in size (just under .5 acres). The size of the animal keeping area also informs the number of animals that may be kept on the property.

The City’s animal keeping area requirement is a lot coverage and open space requirement, which Government Code Section 66321(b)(3) acknowledges the City may impose on ADUs, provided that the open space requirement does not preclude an at least 800 square foot ADU from being constructed in compliance with other applicable local development standards. Government Code Section 66314(b)(1) provides that a local agency may impose objective standards on ADUs “that include, but are not limited to” the examples listed therein. HCD’s assertion that the City may not impose an animal keeping area requirement because it is not expressly listed in Section 66314 is inconsistent with Section 66321(b)(3), which lists several types of development standards a local agency may impose that are not also listed in Section 66314(b)(1), including lot coverage, floor area ratio, and open space. Therefore, the finding that the City must remove the animal keeping area requirement from its ADU regulations is not supported by the State ADU Law and the City will not remove this provision. However, the City has clarified the exemptions from compliance in the new paragraph E.19 of Section 18.30.46, as shown in Exhibit A hereto.

SECTION 2. CEQA.

The adoption of this Ordinance is exempt from review under the California Environmental Quality Act pursuant to Public Resources Code Section 21080.17.

SECTION 3. AMENDMENT OF SECTION 18.30.46.

Section 18.30.46 of the Norco Municipal Code is hereby amended in its entirety to read as shown in Exhibit “A” attached hereto.

Ordinance No 1138 for Zone Code Amendment 2025-02
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SECTION 4. SEVERABILITY
If any chapter, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each Chapter, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more Sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.”
SECTION 5. EFFECTIVE DATE.

This ordinance shall take effect thirty (30) days after its final passage by the City Council.

SECTION 6. POSTING
The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Chapter 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Chapter 39633(c).

PASSED AND ADOPTED by the City Council of the City of Norco, California at a regular meeting held February 4, 2026.
__________________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Janet Martinez, Interim City Clerk
City of Norco, California

Ordinance No 1138 for Zone Code Amendment 2025-02
February 4, 2026
Page5
4908-8610-4956 v1
I, 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 21, 2026 and thereafter at a regular meeting of said City Council duly held February 4, 2026, it was duly passed and adopted by the following 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 4, 2026. ________________________
Janet Martine, Interim City Clerk
City of Norco, California