Agenda packet — Ontario City Council, December 20, 2022 (part 1 of 3)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
DECEMBER 20, 2022
City Hall
303 East B Street, Ontario, CA 91764

MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA DORST-PORADA AND RUBEN VALENCIA CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL

All documents for public review are on ﬁle with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to ﬁll out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time. To comment by email, submit your comments no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comments to
[email protected].

All
comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Comments will be limited to 3 minutes. Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

ACCOMODATIONS

If you need special assistance or accommodations to participate in this meeting, please contact CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1

1. CERTIFICATION OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION the City Clerk's oﬃce at 909-395-2009. Notiﬁcation of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS

The regular City Council and Housing Authority meeting begins with Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council. (EQUIPMENT FOR THE HEARING IMPAIRED AVAILABLE IN THE RECORDS MANAGEMENT OFFICE)

CALL TO ORDER
(OPEN SESSION)

ROLL CALL
Wapner, Bowman, Dorst-Porada, Valencia, Mayor/Chairman Leon

PLEDGE OF ALLEGIANCE
Mayor pro Tem Wapner

INVOCATION
Pastor Maribel Zacapa Church of God of Prophecy
PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes with each speaker given a maximum of 3 minutes. An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests.

To comment by email, submit your comments by email no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comment to [email protected]
. All Comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and entered into the record. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION
That the City Council adopt a Resolution certifying the results of the November 8, 2022 General CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2

ATTACHMENT:

Election Canvass RESO^01^RM

ATTACHMENT:

Exhibit A1 Certification Election Results^02

ATTACHMENT:

Exhibit A2 District Total Canvass^03

2. APPROVAL OF MINUTES

ATTACHMENT:

20221115 Minutes (Not Official Until Approved).docx

ATTACHMENT:

20221122 Minutes (Adjourned-Not Official Until Approved).docx

Municipal Election as it relates to the positions of Mayor and City Council.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA,

RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2022, DECLARING THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW.

SPECIAL CEREMONIES

OATH OF OFFICE OF NEWLY ELECTED OFFICIALS

MEETING RECESS

AGENDA REVIEW/ANNOUNCEMENTS

The City Manager will go over all updated materials and correspondence received after the Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modifications or announcements regarding Agenda items to be considered.

CONSENT CALENDAR

All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below – there will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a speciﬁc item be removed from the Consent Calendar for a separate vote.

Each member of the public wishing to address the City Council on items listed on the Consent Calendar will be given a total of 3 minutes.

Minutes for the regular meetings of the City Council and Housing Authority of November 15, 2022, and adjourned regular meetings of the City Council and Housing Authority of November 22, 2022 and approving same as on file in the Records Management Department.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3

3. BILLS & PAYROLL

4. DESIGN SERVICES AGREEMENT FOR A TRAFFIC SIGNAL SYSTEM, SIGNAL MODIFICATIONS

AND BUS STOP IMPROVEMENTS

5. A DESIGN SERVICES AGREEMENT FOR THE EDISON AVENUE/ONTARIO RANCH ROAD

WIDENING PROJECT

ATTACHMENT:

ST2308 Edison ORR Location Map.pdf

6. A RESOLUTION APPROVING FINAL TRACT MAP NO. 20303, LOCATED AT THE NORTHEAST

CORNER OF VIA ALBA AND ONTARIO CENTER PARKWAY

ATTACHMENT:

20221220_Tract_Map_20303_1_Exhibit_A.pdf

ATTACHMENT:

20221220 Tract Map 20303^2 RESO^RM

7. AN AMENDMENT TO THE PROFESSIONAL SERVICES AND EQUIPMENT PURCHASE

AGREEMENT FOR THE ACQUISITION OF POLICE DEPARTMENT FRONTLINE PATROL

EQUIPMENT
Bills November 11, 2022 through December 1, 2022, and Payroll November 6, 2022 through November 19, 2022 when audited by the Finance Committee.

That the City Council approve a Design Services Agreement (on ﬁle in the Records Management Department) with AGA Engineers, Inc., of Fullerton, California, to provide Design Services for a Traﬃc Signal System at San Antonio Avenue at Francis Street, signal modiﬁcations at Campus Avenue at Mission Blvd and Sultana Avenue at Mission Blvd, and ADA-compliant bus stop improvements at various locations in the amount $117,766 plus a 10% contingency of $11,776 for a total authorized amount expenditure of $129,542; and authorize the City Manager, or his designee, to execute said Agreement and future amendments within the authorization limits.

That the City Council approve a Design Services Agreement (on ﬁle in the Records Management Department) with Wood Rodgers, Inc., of San Diego, California, to provide engineering design services for the Edison Avenue/Ontario Ranch Road Widening Project in the amount of $191,347; and authorize the City Manager, or his designee, to execute said Agreement and future amendments within the authorization limits.

That the City Council adopt a Resolution approving Final Tract Map No. 20303, located at the northeast corner of Via Alba and Ontario Center Parkway within the Ontario Center Speciﬁc Plan area.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FINAL TRACT MAP NO. 20303 LOCATED AT THE NORTHEAST CORNER OF VIA ALBA AND ONTARIO CENTER PARKWAY.

That the City Council authorize the City Manager to execute an amendment to the professional services and equipment purchase agreement with Axon Enterprise, Inc., of Scottsdale, Arizona, for the purchase of new and replacement equipment, including tasers and body-worn camera CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4

8. A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH NEW MILLENNIUM

CONSTRUCTION SERVICES FOR ADDITIONAL OFFICE IMPROVEMENT PROJECT MATERIALS

9. AMENDMENTS TO THE DESIGN SERVICES AGREEMENT FOR CITYWIDE ON-CALL

ARCHITECTURAL SERVICES WITH HOLT ARCHITECTURE

10. AUTHORIZE THE PURCHASE OF FLEET VEHICLES
systems for frontline police personnel, Fusus, Axon Air, Fleet 3 Advanced, as well as maintenance and data management services for 77 months in the amount of $9,254,760.

That the City Council take the following actions:

A
.

Authorize a Change Order to the Construction Contract (on ﬁle in the Records Management Department) with New Millennium Construction Services of Chino Hills, California, in the amount of $26,674, for the City Hall First Floor Oﬃce Improvements Project.

B
.

Authorize the City Manager or his designee to execute said contract and authorize the ﬁling of the notice of completion at the conclusion of all construction activities related to the project.

That the City Council authorize the City Manager or his designee to execute Amendment Nos. 4 and 5 to the existing Design Services Agreement (on ﬁle in the Records Management Department) with Holt Architecture of Palm Desert, California in an amount not to exceed $572,514.

That the City Council take the following actions:

A
.

Authorize the cooperative sole source purchase and delivery of one LP401 Low-Proﬁle Remote-Control Skid Steer Vehicle in the amount of $160,000 plus a 20% contingency of $32,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $192,000, for the Parks and Maintenance Department from Hard Line USA, Inc. of Draper, Utah.

B
.

Authorize the cooperative purchase and delivery of one EV Mitsubishi Forklift in the amount of $45,000 plus a 20% contingency of $9,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $54,000, for the Police Department from Naumann Hobbs Material Handling of Fontana, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 091520-MCF.

C
.

Authorize the cooperative purchase and delivery of one Bobcat Skid Steer in the amount of $55,000 plus a 20% contingency of $11,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $66,000, for the Parks and Maintenance Department from Bobcat Company of West Fargo, North Dakota, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 040319-CEC.

D
.

Authorize the cooperative purchase and delivery of one John Deere Commercial Mower CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5

11. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR LEGAL CONSULTING

12. AUTHORIZE THE PURCHASE OF PLAYGROUND EQUIPMENT FOR SAM ALBA MEMORIAL PARK

13. AWARD A PROFESSIONAL SERVICES AGREEMENT FOR PRINTING SERVICES RELATED TO THE

ONTARIO LIVING MAGAZINE

14. AWARD OF GOODS & SERVICES AGREEMENT WITH NEXT/NOW FOR BUILT ON WATER

EXHIBIT
in the amount of $30,000 plus a 20% contingency of $6,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $36,000, for the Parks and Maintenance Department from Stotz Equipment of Montclair, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 031121-DAC.

E
.

Authorize the cooperative purchase and delivery of one John Deere Heavy Equipment Loader in the amount of $270,000 plus a 20% contingency of $54,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $324,000, for the Parks and Maintenance Department and one John Deere Heavy Equipment Backhoe in the amount of $175,000 plus a 20% contingency of $35,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $210,000, for the Utilities Department from RDO Equipment of Riverside, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 032119-JDC.

That the City Council authorize the City Manager to execute Amendment No. 2 to the existing Professional Services Agreement with Jones & Mayer for legal consulting.

That the City Council authorize the cooperative purchase of playground equipment for Sam Alba Memorial Park in the amount of $189,898 plus a 5% contingency of $9,495 to mitigate any unforeseen issues with supply chain surcharges and manufactory price increases for a total not to exceed amount of $199,393 from Innovative Playgrounds, of Whittier, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 010521- BUR.

That the City Council take the following actions:

A
.

Authorize the City Manager to execute a three-year professional services agreement, with the option to extend for two additional years (on ﬁle in the Records Management Department), with Eclipse Printing & Graphics LLC, DBA James Litho located in Ontario, California, for an annual amount of $175,000 and a total compensation not to exceed of $875,000.

B
.

Authorize the future amendments to the scope of work consistent with City Council approved budgets for additional printing services that may be necessary or desired, related to the Ontario Living Magazine, a quarterly Publication distributed citywide.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6

15. ANNUAL COMPRENHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2022 AND AB 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2022

ATTACHMENT:

AB1600 DIF ANNUAL REPORT FOR YEAR ENDING JUNE 30, 2022.pdf

ATTACHMENT:

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022.pdf

16. DESIGNATION OF VOTING DELEGATE FOR THE WEST VALLEY MOSQUITO AND VECTOR

CONTROL DISTRICT

17. ADOPTION OF AN ORDINANCE ADOPTING A MAP FOR THE DISTRICT-BASED ELECTIONS

UNDER THE CALIFORNIA VOTING RIGHTS ACT

ATTACHMENT:

Changing to By-District Election ORD^RM

18. ADOPTION OF ORDINANCES REVISING THE CITY'S MUNICIPAL CODE BY (1) ADDING BARKING DOG VIOLATIONS AND CIVIL FINES, (2) AMENDING VARIOUS CODE That the City Council take the following actions:
a
.

Reject SimInsight Inc.'s protest against Next/Now for the development of a Virtual Reality experience.
b
.

Authorize the City Manager to execute a Goods &
Services Agreement with Next/Now
from Chicago, Illinois, for services involving the development of a virtual reality experience for the
Built on Water
exhibit at the Ontario Museum of History and Art in an
amount not to exceed $115,000.
c
.

Authorize a 10% contingency of $11,500 to address any unforeseen issues that may arise during the project.

That the City Council accept the City of Ontario’s Annual Comprehensive Financial Report (ACFR) for the ﬁscal year ending June 30, 2022, and the City of Ontario's AB1600 Development Impact Fee (DIF) Annual Report (unaudited) for Fiscal Year ended June 30, 2022.

That the City Council appoint Mayor Paul Leon as the City Delegate Representative for the West Valley Mosquito and Vector Control District Board of Trustees for the 2023-2024 term.

That the City Council adopt an Ordinance adding

a new article 3 to title 2 of volume 1 of the
Ontario Municipal Code to change the city’s electoral system from at-large to by-district elections.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING A NEW ARTICLE 3 TO TITLE 2 OF VOLUME 1 OF THE ONTARIO MUNICIPAL CODE TO CHANGE THE CITY’S ELECTORAL SYSTEM FROM AT-LARGE TO BY-

DISTRICT ELECTIONS WITH RESPECT TO ELECTING CITY COUNCIL MEMBERS AND

MAINTAINING AN ELECTIVE MAYOR, ESTABLISHING DISTRICT BOUNDARIES,

SCHEDULING ELECTIONS WITHIN THE DISTRICTS, AND MAKING CERTAIN FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7 ENFORCEMENT PROCEDURES, (3) ADOPTING STANDARDS FOR OVERSIZED VEHICLE PARKING AND FURTHER REGULATING COMMERCIAL VEHICLES, (4) ESTABLISHING ADMINISTRATIVE PENALTIES FOR VIOLATIONS OF THE ONTARIO FIRE CODE, (5)

AMENDING PARKING RESTRICTIONS RELATED TO STREET SWEEPING AND TRASH COLLECTION, (6) AMENDING AND CLARIFYING PERFORMANCE STANDARDS, REPORTING

OBLIGATIONS, AND ENFORCEMENT OUTCOMES RELATED TO THE TRANSIENT OCCUPANCY TAX, (7) IMPLEMENTING REGULATIONS FOR THE SHORT TERM RENTAL OF PROPERTY IN THE CITY, (8) UPDATING PENALTIES FOR THE ILLEGAL CULTIVATION OF CANNABIS, (9)

ESTABLISHING REGULATIONS PROHIBITING THE UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN THE CITY; (10) REFLECTING UPDATES TO THE ONTARIO POLICE DEPARTMENT COMMAND STRUCTURE.

That the City Council consider and take the recommend actions below on Ordinances that were introduced at a regular meeting on December 6, 2022.

A
.

Adopt an Ordinance to repeal certain sections of the Ontario Municipal Code and add a new Article 2.5 to Chapter 1 of Title 6, relating to the City’s regulation of barking dog violations and methods of enforcement related thereto.

B
.

Adopt an Ordinance to amend certain sections of the Ontario Municipal Code, relating to the City’s code enforcement procedures, including administrative civil penalties, citations, and appeals.

C
.

Adopt an Ordinance to amend Sections 4-6.1009 and 4-6.1016 of Article 10 of Chapter 6 of Title 4 of the Ontario Municipal Code, add Section 4-6.1117 to Article 1 of Chapter 6 of Title 4 of the Ontario Municipal Code, and add Section 4-6.1020 to Article 10 of Chapter 6 of Title 4 of the Ontario Municipal Code adopting standards for oversized vehicle parking and further regulating the parking of commercial vehicles.

D
.

Adopt an Ordinance to add Section 4-4.27 to Chapter 4 of Title 4 of the Ontario Municipal Code, relating to the City’s enforcement of the provisions of the Ontario Fire Code.

E
.

Adopt an Ordinance to amend Section 4-6.1019 of Article 10 of Chapter 6 of Title 4 of the Ontario Municipal Code, relating to parking restrictions on public streets for street sweeping and trash collection.

F
.

Adopt an Ordinance to amend Chapter 6 of Title 3 of the Ontario Municipal Code, relating to performance standards, reporting obligations, and enforcement outcomes related to the transient occupancy tax.

G
.

Adopt an Ordinance to add Section 5.03.363 to Division 5.03 of Chapter 5 of the Ontario Development Code, relating to regulations of short-term rentals.

H
.

Adopt an Ordinance to amend Chapter 18 of Title 6 of the Ontario Municipal Code, relating to penalties for the illegal cultivation of cannabis.

I
.

Adopt an Ordinance to add Chapter 24 to Title 4 of the Ontario Municipal Code relating to the prohibition of unlawful possession of catalytic converters in the City.

J
.

Adopt an Ordinance to amend Section 2-3.210 of Article 2 of Chapter 3 of Title 2 of the Ontario Municipal Code reﬂecting updates to the Ontario Police Department command structure.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8 REPEALING SECTIONS 6-1.217 THROUGH 6-1.223 OF ARTICLE 2 OF CHAPTER 1 OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE, AND ADDING ARTICLE 2.5, “BARKING DOG AND NOISY ANIMAL VIOLATIONS AND CIVIL FINES,” TO CHAPTER 1 OF TITLE 6

OF THE ONTARIO MUNICIPAL CODE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTERS 1-2, 1-4, 1-5, 2-11, 4-6, AND 5-22 OF THE ONTARIO MUNICIPAL CODE RELATED TO VARIOUS CODE ENFORCEMENT PROCEDURES.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING SECTIONS 4-6.1009 AND 4-6.1016 OF ARTICLE 10 OF CHAPTER 6 OF TITLE 4 OF THE ONTARIO MUNICIPAL CODE, ADDING SECTION 4-6.1117 TO ARTICLE 1 OF CHAPTER 6 OF TITLE 4 OF THE ONTARIO MUNICIPAL CODE, AND ADDING SECTION 4-6.1020 TO ARTICLE 10 OF CHAPTER 6 OF TITLE 4 OF THE

ONTARIO MUNICIPAL CODE ADOPTING STANDARDS FOR OVERSIZED VEHICLE PARKING AND FURTHER REGULATING COMMERCIAL VEHICLES.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING SECTION 4-4.27 TO CHAPTER 4 OF TITLE 4 OF THE ONTARIO MUNICIPAL

CODE ESTABLISHING ADMINISTRATIVE PENALTIES FOR VIOLATIONS OF THE ONTARIO FIRE CODE.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING SECTION 4-6.1019, “RESTRICTED PARKING FOR STREET SWEEPING SERVICES,” OF THE CITY’S MUNICIPAL CODE TO PROVIDE FOR RESTRICTED PARKING FOR PURPOSES OF TRASH COLLECTION.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTER 6, “TRANSIENT OCCUPANCY TAXES,” OF TITLE 3 OF THE ONTARIO MUNICIPAL CODE.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING A NEW SECTION 5.03.363, “SHORT TERM RENTALS,” TO DIVISION 5.03 OF CHAPTER 5 OF THE ONTARIO DEVELOPMENT CODE, IMPLEMENTING REGULATIONS FOR THE SHORT TERM RENTAL OF PROPERTY IN THE CITY.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTER 18 OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE UPDATING PENALTIES FOR THE ILLEGAL CULTIVATION OF CANNABIS.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING CHAPTER 24 (UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER PROHIBITED) OF TITLE 4 (PUBLIC SAFETY) OF THE ONTARIO MUNICIPAL CODE,

ESTABLISHING REGULATIONS PROHIBITING THE UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN THE CITY.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING SECTION 2-3.210 OF ARTICLE 2 OF CHAPTER 3 OF TITLE 2 OF THE CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9

ATTACHMENT:

Barking Dog and Noisy Animal Violations and Civil Fines^ORD^01^RM

ATTACHMENT:

Code Enforcement Update Amendment ORD^02^RM

ATTACHMENT:

Oversized Vehicle Parking ORD^03^RM

ATTACHMENT:

Administrative Citations for Fire Code Violations ORD^04^RM

ATTACHMENT:

Trash Collection Parking Restrictions ORD^05^RM

ATTACHMENT:

Updating Transient Occupancy Tax Chapter ORD^06^RM

ATTACHMENT:

Short Term Rentals^07^ORD^RM

ATTACHMENT:

Cannabis Enforcement^08^ORD^RM

ATTACHMENT:

Catalytic Converter Possession^09^ORD^RM

ATTACHMENT:

Deputy Police Chief Powers and Responsibilities^10^ORD^RM

19. A PUBLIC HEARING TO CONSIDER AN ORDINANCE FOR A PLANNED UNIT DEVELOPMENT (FILE NO. PUD20-001) AT 549 WEST HOLT BOULEVARD

ATTACHMENT:

File No. PUD20-001^01 PC Backup

ATTACHMENT:

File No. PUD20-001^02 ORD^RM

ATTACHMENT:

File No. PUD20-001^03 ORD-PUD ATTACHMENT A

20. A PUBLIC HEARING TO CONSIDER AN URGENCY ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA22-005, REVISING DIVISION 5.03 - SUPPLEMENTAL LAND USE REGULATIONS, SECTION 5.03.010 (ACCESSORY RESIDENTIAL

STRUCTURES) IN ORDER TO BRING THE CITY'S CURRENT PROVISIONS GOVERNING

ONTARIO MUNICIPAL CODE REFLECTING UPDATES TO THE ONTARIO POLICE DEPARTMENT COMMAND STRUCTURE.

PUBLIC HEARINGS

Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Aﬃdavits of posting compliance, for all items below, are on file with the Records Management Department.

That the City Council introduce and waive further reading of an Ordinance approving a Planned Unit Development, File No. PUD20-001, establishing development standards, design guidelines, and infrastructure requirements to facilitate the development of a mixed-use project located at 549 West Holt Boulevard.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PUD20-001, A PLANNED UNIT DEVELOPMENT (THE

ROOSEVELT TOWER PLANNED UNIT DEVELOPMENT) ESTABLISHING DEVELOPMENT

STANDARDS, DESIGN GUIDELINES, AND INFRASTRUCTURE REQUIREMENTS FOR

0.81-ACRE OF LAND LOCATED AT 549 WEST HOLT BOULEVARD, WITHIN THE MU- 1/LUA-3 (DOWNTOWN MIXED-USE/HOLT BOULEVARD DISTRICT) ZONING DISTRICT - APN: 1049-021-09.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10

ACCESSORY DWELLING UNITS INTO COMPLIANCE WITH THE REQUIREMENTS OF CALIFORNIA SENATE BILL NO. 897 (GOVERNMENT CODE SECTIONS 65852.2 AND 65852.22)

ATTACHMENT:

2022 ADU CC Urgency Ordinance Dec 2022^ORD^01^RM

ATTACHMENT:

Urgency Ord. Exhibit A - Amended ODC Sec. 5.03.010 (ADUs - Dec. 2022)-c1 (004)- Final-c1.docx
That the City Council consider and adopt an Urgency Ordinance approving File No. PDCA22- 005, amending Section 5.03.010 of Division 5.03 of Chapter 5 of the Ontario Development Code relating to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), consistent with the requirements of California Senate Bill No. 897 (Government Code sections 65852.2 and 65852.22).

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDCA22-005, AMENDING SECTION 5.03.010 OF DIVISION 5.03 OF CHAPTER 5 OF THE ONTARIO DEVELOPMENT CODE RELATING TO

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.

STAFF MATTERS

City Manager Ochoa

COUNCIL MATTERS

City Council Reorganization - Mayor pro Tem

Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
Council Member Dorst-Porada
Council Member Valencia

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11 Department: Records Management
Prepared By: Claudia Y Isbell
Staff Member Presenting:

Claudia Y. Isbell, Assistant City Clerk
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 1
SUBJECT:

CERTIFICATION OF THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

ADMINISTRATIVE

REPORTS/DISCUSSION/ACTION

RECOMMENDATION:

That the City Council adopt a Resolution certifying the results of the November 8, 2022 General Municipal Election as it relates to the positions of Mayor and City Council.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT:

There is no direct fiscal impact.

BACKGROUND & ANALYSIS:

A General Municipal Election was held in the City of Ontario, California, on Tuesday, November 8, 2022, for the election of the two members of the City of Council and the City Mayor.

The San Bernardino County Registrar of Voters has certified the election results as follows:

City Mayor Elect Paul S. Leon
City Council Member Elect Alan D. Wapner
City Council Member Elect Jim W. Bowman

Copies of the Statement of Certiﬁcation of Election Results for the 2022 General Municipal Election, Final Certified Election Results, and Total Canvass are attached. 12 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, RECITING THE FACT OF THE GENERAL MUNICIPAL
ELECTION HELD ON NOVEMBER 8, 2022, DECLARING THE RESULT AND SUCH OTHER MATTERS AS PROVIDED BY LAW.

WHEREAS, a General Municipal Election was held and conducted in the City of Ontario, California, on Tuesday, November 8, 2022, as required by law; and WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and
WHEREAS, pursuant to Resolution Nos. 2022-106, 2022-107, and 2022-108 adopted July 5, 2022, the Registrar of Voters canvassed the returns of the election and has certified the results to this City Council, the results are received and the appropriate sections are attached and made a part hereof as "Exhibit A."

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the whole number of votes cast in the precincts except Vote by Mail ballots was 4,037. That the whole number of Vote by Mail ballots cast in the City was 27,564. That the whole number of provisional ballots cast was 207, making a total of 31,809 votes cast in the City.

SECTION 2. That the names of persons voted for at the election for Mayor are as follows:

Ruben Valencia
Paul S. Leon
Christian Garcia
That the names of persons voted for at the election for Council are as follows:

Michael Duenas
Aaron Bratton
Jim W. Bowman
Norberto Corona
Alan D. Wapner
Celina Lopez
13 SECTION 3. That the number of votes given at each precinct and the number of votes given in the City to each of the persons above named for the respective offices for which the persons were candidates are listed in Exhibit "A" attached.

SECTION 4. The City Council does declare and determine that Paul S. Leon was elected Mayor of the City of Ontario for the full term of four years; that Alan D. Wapner was elected as Member of the City Council for the full term of four years; that Jim W.

Bowman was elected as Member of the City Council for the full term of four years; and SECTION 5. The City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election, showing: (1) The whole number of votes cast in the City; (2) The names of the persons voted for; (3) For what office each person was voted; (4) The number of votes given at each precinct to each person; and (5) The total number of votes given to each person.

SECTION 6. That the City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 20th day of December 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
14 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, Sheila Mautz, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022-_____ was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held December 20, 2022 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022-____ duly passed and adopted by the Ontario City Council at their regular meeting held December 20, 2022. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
15 EXHIBIT “A”
16 17
1 City of Ontario Mayor 2 City of Ontario Member, City Council 1 1
1 1
1 2
2 2
2 Registered
Voters
Voters Cast
Turnout (%)
RUBEN

VALENCIA
PAUL S.

LEON

CHRISTIAN
GARCIA
Over Votes
Under Votes

MICHAEL
DUENAS
AARON

BRATTON
JIM W.

BOWMAN

NORBERTO
CORONA
United States Representative,
District 35
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
State Senator, District 22
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
State Senator, District 29
Total
0 0
State Assembly, District 50
Total
10701
3459

32.32 %
965
1731
437
2 324
514
725
1115
296
State Assembly, District 53
Total
76318
28350

37.15 %
9164
13852
3024
39 2271
3769
5447
10447
2443
State of California, Board of
Equalization, District 4
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
San Bernardino County
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
Board of Supervisors, District 4
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
City of Ontario
Total
87019
31809

36.55 %
10129
15583
3461
41 2595
4283
6172
11562
2739
Printed: Thursday, December 8, 2022 6:55 AM

Page 197 of 207 ends

Data Refreshed: Thursday, December 8, 2022 6:54 AM
San Bernardino County
San Bdno November 2022 Statewide General Election
Statement of Vote - District Total Canvass
Election Date: November 8, 2022
18 1 City of Ontario Member, City Council
1 1
1 1
Registered
Voters
Voters Cast
Turnout (%)
ALAN D.

WAPNER
CELINA
LOPEZ
Over Votes
Under Votes
United States Representative,
District 35
Total
87019
31809

36.55 %
12438
9733
170
16521
State Senator, District 22
Total
87019
31809

36.55 %
12438
9733
170
16521
State Senator, District 29
Total
0 0
State Assembly, District 50
Total
10701
3459

32.32 %
1220
1175
14 1859
State Assembly, District 53
Total
76318
28350

37.15 %
11218
8558
156
14662
State of California, Board of
Equalization, District 4
Total
87019
31809

36.55 %
12438
9733
170
16521
San Bernardino County
Total
87019
31809

36.55 %
12438
9733
170
16521
Board of Supervisors, District 4
Total
87019
31809

36.55 %
12438
9733
170
16521
City of Ontario
Total
87019
31809

36.55 %
12438
9733
170
16521
Printed: Thursday, December 8, 2022 6:55 AM

Page 198 of 207 ends

ONTARIO HOUSING AUTHORITY

MINUTES
NOVEMBER 15, 2022
(Not Official Until Approved)
(Not Official Until Approved)

JOINT MEETINGS
The regular meetings of the Ontario City Council and Housing Authority were held on Tuesday, November 15, 2022 at Ontario City Hall, 303 E. B Street Ontario, California.

CALL TO ORDER
Mayor Leon called the joint meetings to order at 6:30 p.m.

ROLL CALL
PRESENT: Mayor/Chairman Paul S. Leon
Mayor pro Tem/Vice Chair: Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Dorst-Porada and Ruben Valencia
ABSENT: Council/Authority Members: None.

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Valencia.

INVOCATION
The invocation was led by Heather Freeman, Church of Jesus Christ of Latter-Day Saints.

PUBLIC COMMENTS
There were two emailed comments:

Tachera Harrington, regarding local housing programs.

Loree Masonis, regarding Item No. 03 of the agenda.
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Mayor Leon called upon the first speaker.

Lizbeth Hernandez, invited City Council to participate in National Walk to School Day on October 12, 2022.

Malyna Mendez, spoke regarding the search of a missing person and homelessness issues.

Maria del Socorro Razón, spoke regarding the search of a missing person.

Miguel Batease, spoke regarding the search of a missing person.

Carla Lopez, spoke regarding the search of a missing person.

Maria Lazarraga, spoke regarding the search of a missing person.

Hope Bilderain, spoke on upcoming fundraiser for the Relay for Life.

Nadya Bahena, Field Representive from Assemblymember Freddy Rodgriguez’s office announced upcoming events.

Marcellus McMillan, announced upcoming events with the D’Andre Lampkin Foundation.

Alisa Merchant, spoke on homelessness issues in the community.

AGENDA REVIEW/ANNOUNCEMENTS
City Manager Ochoa announced an update to Item No. 13, amending the recommended actions to read as follows:

A. Reject Interior Demolition Earthwise Demo JV’s bid for D&C21-005 – Grand Park Demolition as nonresponsive;
B. Reject Interior Demolition Earthwise Demo JV’s protest against Resource Environmental, Inc for D&C21005 – Grand Park Demolition; C. Authorize the City Manager to complete and execute Construction Contract No.

D&C21-005 - Grand Park Phase 1 Demolition with Resource Environmental, Inc of Cerritos, California for the demolition and debris removal in the Grand Park in the amount of $4,703,540;
D. Authorize a 15% contingency of $705,531 to address any unforeseen issues that may arise during the demolition;
E. Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities. 21 Ontario City Council/Ontario Housing
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CONSENT CALENDAR
Public Comments:

Val Carrick, gave a brief background on Beverly Cleary’s accomplishments.

MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried by unanimous vote 5-0, to approve the Consent Calendar with the amendments to Item No. 13 and, with the exception of Item No 16.

1. APPROVAL OF MINUTES
Minutes for the regular meetings of the City Council and Housing Authority of October 18, 2022, and approving same as on file in the Records Management Department.

2. BILLS & PAYROLL
Bills from October 14, 2022 through October 27, 2022 in the amount of $20,427,852.89 and Payroll from October 9, 2022 through October 22, 2022 in the amount of $4,136,451.15, when audited by the Finance Department.

3. A PROFESSIONAL SERVICE AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR THE PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT FOR THE EUCLID MIXED USE SPECIFIC PLAN (FILE NO.

PSP22-001)
The City Council approved and authorized the City Manager to execute an Agreement with Kimley-Horn and Associates, Inc., of Riverside, California, to prepare an Environmental Impact Report (EIR) for the Euclid Mixed Use Specific Plan, in the amount of $396,805, plus a 5% contingency of $19,840, for a total authorized expenditure of $416,645; and authorized the City Manager to approve any future budget adjustments necessary to complete the EIR.

4. NAME THE CHILDREN'S ROOM AT OVITT FAMILY COMMUNITY LIBRARY TO

THE BEVERLY CLEARY YOUNG READERS ROOM
The City Council approved naming the children's room at Ovitt Family Community Library, the Beverly Cleary Young Readers Room.

5. RESOLUTION APPROVING AN IMPROVEMENT AGREEMENT, IMPROVEMENT SECURITY AND FINAL PARCEL MAP NO. 20016, LOCATED AT THE

NORTHEAST CORNER OF EUCLID AVENUE AND MERRILL AVENUE
That the City Council adopt a Resolution approving an Improvement Agreement, Improvement Security and Final Parcel Map No. 20016, located at the northeast corner of Euclid Avenue and Merrill Avenue within the Ontario Ranch Business Park Specific Plan area.
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RESOLUTION NO. 2022-148 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, APPROVING AN IMPROVEMENT
AGREEMENT, IMPROVEMENT SECURITY AND FINAL PARCEL MAP NO. 20016

LOCATED AT THE NORTHEAST CORNER OF EUCLID AVENUE AND MERRILL AVENUE.

6. REJECT ALL BIDS AND AUTHORIZE RE-BIDDING OF THE ONTARIO POLICE

DEPARTMENT LOCKER ROOM AND GYM EXPANSION PROJECT
The City Council rejected all bids received for Bid No. 1558, D&C 20-019 for the Ontario Police Department Locker Room and Gym Expansion project and authorized the City Manager or his designee to solicit new bids for this project.

7. FISCAL YEAR 2022-23 FIRST QUARTER BUDGET UPDATE REPORT The City Council approved the budget adjustments and recommendations as presented in the Fiscal Year 2022-23 First Quarter Budget Update Report.

8. A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT (FILE NO. PDIF21-006) BETWEEN THE CITY OF ONTARIO AND DPIF3 CA 36 ONTARIO RANCH LLC.,

FOR FACILITY CONSTRUCTION ASSOCIATED WITH A DEVELOPMENT PLAN (FILE NO. PDEV22-001), LOCATED AT THE NORTHWEST CORNER OF

HAMNER AVENUE AND ONTARIO RANCH ROAD, WITHIN PLANNING AREA 7A (LIGHT INDUSTRIAL) LAND USE DISTRICT OF THE RICH HAVEN SPECIFIC PLAN
The City Council approved the Development Impact Fee Credit Agreement (File No.

PDIF21-006) between the City of Ontario and DPIF3 CA 36 Ontario Ranch LLC., for facility construction associated with a Development Plan (File No. PDEV22-001), located at the northwest corner of Hamner Avenue and Ontario Ranch Road, within Planning Area 7A (Light Industrial) land use district of the Rich Haven Specific Plan, and authorized the City Manager to execute the Agreement.

9. A PROFESSIONAL SERVICES AGREEMENT WITH DANKEN, INC. FOR

ON-CALL STRUCTURAL INSPECTION AND CONSTRUCTION MANAGEMENT

SERVICES
The City Council approved and authorized the City Manager or designee to execute a five-year Professional Services Agreement (on file in the Records Management Department) with Danken, of Ladera Ranch, California, to provide On-Call Structural Inspection and Construction Management Services for a not-to-exceed amount of $1,600,000.
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10. A GOODS AND SERVICES AGREEMENT FOR FURNITURE DESIGN FOR THE

BUILT ON WATER EXHIBIT
The City Council authorized the City Manager or designee to execute a Goods and Services Agreement with K2 Design and Fabrication of Norco, California for furniture for the Built on Water exhibit at the Ontario Museum of History and Art, for a total not to exceed amount of $269,563.

11. TWO AMENDMENTS FOR THE EQUIPPING OF WELL NO. 43 PROJECT The City Council took the following actions:

A. Approved and authorized the City Manager, or designee to execute Amendment No. 3 to the Professional Services Agreement (on file in the Records Management Department) with AKM Consulting Engineers Inc. of Irvine, California, for a total not-to-exceed amount of $39,908 for construction management and inspection services and a term from November 15, 2022 to September 30, 2023.

B. Approved and authorized the City Manager, or designee to execute Amendment No. 4 to the Maintenance Service Agreement (on file in the Records Management Department) with Bay Alarm Company of Ontario, California, for a total not-to-exceed amount of $25,271 for security system installation and a term from November 15, 2022 to June 30, 2025.

12. A PROFESSIONAL SERVICES AGREEMENT WITH 4LEAF, INC. FOR ON-CALL

STRUCTURAL PLAN CHECKING SERVICES
The City Council approved and authorized the City Manager or designee to execute a five-year Professional Services Agreement with 4Leaf, of Newport Beach, California, to provide On-Call Structural Plan Checking Services for a not-to-exceed amount of $300,000.

13. DEMOLITION OF THE BUILDINGS AND DEBRIS LOCATED ON THE PROPERTY FOR THE GRAND PARK PHASE 1
The City Council took the following actions:

A. Rejected Interior Demolition Earthwise Demo JV’s bid for D&C21-005 – Grand Park Demolition as nonresponsive;
B. Rejected Interior Demolition Earthwise Demo JV’s protest against Resource Environmental, Inc for D&C21005 – Grand Park Demolition; C. Authorize the City Manager to complete and execute Construction Contract No.

Page 6 of 14 ends

E. Authorized the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

14. A CONSTRUCTION CONTRACT, A PROFESSIONAL SERVICES AGREEMENT AND TWO AMENDMENTS FOR THE ONTARIO RANCH PHASE 2 WATER MAIN

IMPROVEMENTS PROJECT
The City Council took the following actions:

A. Approved the plans and specifications and award Contract No. UT 1050 to Norstar Plumbing and Engineering, Inc. of Alta Loma, California, for the construction of the Ontario Ranch Phase 2 Water Main Improvements, in the amount of $9,906,053 plus a 10% contingency of $990,605, for a total not-to- exceed amount of $10,896,658, a term of 260 calendar days after issuance of notice to proceed, and authorized the City Manager, or his designee, to execute said contract and file a notice of completion at the conclusion of all construction activities related to the project.

B. Approved and authorized the City Manager, or his designee, to execute a Professional Services Agreement with GeoTek, Inc. of Las Vegas, Nevada, for a total not-to-exceed amount of $160,918 and a term of 260 calendar days after issuance of notice to proceed for geotechnical and material testing services.

C. Approved and authorized the City Manager, or his designee, to execute Amendment No. 13 to the Professional Services Agreement (on file in the Records Management Department) with Infrastructure Engineering Corporation (IEC), of Irvine, California, for a total not-to exceed amount of $93,401 for construction engineering services and a term of 260 calendar days after issuance of notice to proceed for geotechnical and material testing services.

D. Approved and authorized the City Manager, or his designee, to execute Amendment No. 8 to the Professional Services Agreement with Wallace and Associates Consulting, Inc. of Murrieta, California, for a total not-to exceed amount of $235,013 for construction management services and a term of 260 calendar days.

15. AN AMENDMENT TO ON-CALL DESIGN SERVICES AGREEMENT FOR

LAUREL AVENUE, SULTANA AVENUE, AND NOCTA STREET SEWER MAIN

IMPROVEMENTS
The City Council approved and authorized the City Manager to execute Amendment No. 14 to the On-Call Design Services Agreement with Infrastructure Engineering Corporation of Irvine, California, for Laurel Avenue Sewer Main Improvements, UT 25 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 15, 2022

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1069 Sultana Avenue Sewer Main Improvements, and Nocta Street Sewer Main Improvements, in the amount not-to-exceed $372,026.

ITEMS PULLED FOR DISCUSSION

16. AN ORDINANCE ADOPTING A MAP FOR THE DISTRICT-BASED ELECTIONS

UNDER THE CALIFORNIA VOTING RIGHTS ACT
An Ordinance adding a new Article 3 to Title 2 of Volume 1 of the Ontario Municipal Code to change the city’s electoral system from at-large to by-district elections.

ORDINANCE NO. 3224 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING A NEW ARTICLE 3 TO TITLE 2 OF VOLUME 1 OF THE ONTARIO MUNICIPAL CODE TO CHANGE THE CITY’S

ELECTORAL SYSTEM FROM AT-LARGE TO BY DISTRICT ELECTIONS WITH

RESPECT TO ELECTING CITY COUNCIL MEMBERS AND MAINTAINING AN

ELECTIVE MAYOR, ESTABLISHING DISTRICT BOUNDARIES, SCHEDULING

ELECTIONS WITHIN THE DISTRICTS, AND MAKING CERTAIN FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

Mayor pulled Item 16 to discuss his concerns regarding sequencing. He expressed the proposed adoption of Map #17 with a revised sequencing of districts 1 and 4 in 2024 and 2 and 3 in 2026.

Council Member Valencia noted he understood there was a desire for districts 2 and 4 in 2026 and districts 1 and 3 in 2026. He asked City Attorney Duran if changing the sequencing could bring legal ramifications.

City Attorney Duran noted sequencing is within the Council’s full control and can be changed at the Council’s discretion.

PUBLIC COMMENTS:

Ted Burnett, spoke on the districting process.

Chris Robles, stated his desired sequencing of districts 2 and 4 in 2024 and 1 and 3 in 2026.

Mayor Leon closed the public hearing and entertained a motion.

MOTION: Moved by Council Member Leon, seconded by Mayor pro Tem Wapner and carried by a vote 4-1, with Council Member Valencia opposed, to reintroduce Ordinance 3224 to adopt Map #17 with the amended sequencing of districts 1 and 4 in 2024 and 2 and 3 in 2026.
26 Ontario City Council/Ontario Housing
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PUBLIC HEARINGS

17. A PUBLIC HEARING TO CONSIDER A MILLS ACT CONTRACT
(PRESERVATION AGREEMENT), FILE NO. PHP22-011, FOR A DESIGNATED

HISTORIC PROPERTY
The City Council considered and adopted a resolution approving and authorizing the City Manager or designee to enter into a Mills Act contract (Preservation Agreement), for the designated historic property located at 119 East Princeton Street (APN: 1047- 531-31), Rafael Marquez and Jacqueline Gonzalez.

RESOLUTION NO. 2022-149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PHP22-011, AND

AUTHORIZING THE CITY OF ONTARIO TO ENTER INTO A HISTORIC

PROPERTY PRESERVATION AGREEMENT (MILLS ACT CONTRACT) WITH

RAFAEL MARQUEZ AND JACQUELINE GONZALEZ, FOR THE PROPERTY LOCATED AT 119 EAST PRINCETON STREET (APN: 1047-531-31).

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item, hearing no speakers, closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Dorst-Porada and carried by unanimous vote 5-0, to adopt Resolution No. 2022-149.

18. A PUBLIC HEARING TO CONSIDER A RESOLUTION APPROVING THE DESIGNATION OF THE MAURICE JOHNSON HOUSE, LOCATED AT 409

NORTH SAN ANTONIO AVENUE, AS A LOCAL HISTORIC LANDMARK
The City Council adopted a resolution approving File No. PHP21-016, designating 409 North San Antonio (APN: 1048-314-11) as Local Historic Landmark No. 100.

RESOLUTION NO. 2022-150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PHP21-016, THE DESIGNATION OF THE MAURICE JOHNSON HOUSE, LOCATED AT 409 NORTH

SAN ANTONIO AVENUE, AS A LOCAL HISTORIC LANDMARK AND MAKING FINDINGS IN SUPPORT THEREOF — APN: 1048-314-11.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item, hearing no speakers, closed the public hearing and opened the item for Council discussion.
27 Ontario City Council/Ontario Housing
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Page 9 of 14 ends

MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman, and carried unanimously by a 5-0 vote, to adopt Resolution No. 2022-150.

19. A PUBLIC HEARING TO CONSIDER A DEVELOPMENT AGREEMENT (FILE NO.

PDA22-001) BETWEEN THE CITY OF ONTARIO AND BROOKCAL ONTARIO, LLC., TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20529 (FILE NO. PMTT22-010), AN 11.11-ACRE

PROPERTY GENERALLY LOCATED ON THE EAST SIDE OF TWINKLE
AVENUE, APPROXIMATELY 350 FEET SOUTH OF FUTURE CHINO AVENUE, WITHIN PLANNING AREAS 4A, 4B, AND 4C (RESIDENTIAL - SFD/ATTACHED) LAND USE DISTRICTS OF THE RICH HAVEN SPECIFIC PLAN (APN: 0218-161- 14).

The City Council introduced and waived further reading of an Ordinance approving a Development Agreement (File No. PDA22-001) between the City of Ontario and BrookCal Ontario LLC., to establish the terms and conditions associated with Tentative Tract Map 20529 (File No. PMTT22-010), an 11.11-acre property generally located on the east side of Twinkle Avenue, approximately 350 feet south of future Chino Avenue, within Planning Areas 4A, 4B, and 4C (Residential - SFD/Attached) land use district of the Rich Haven Specific Plan.

ORDINANCE NO. 3225 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO.

PDA22-001, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND BROOKCAL ONTARIO LLC., TO ESTABLISH THE TERMS AND
CONDITIONS FOR THE DEVELOPMENT OF TENTATIVE TRACT MAP NO. 20529 (FILE NO. PMTT22-010), AN 11.11 ACRE PROPERTY GENERALLY LOCATED ON THE EAST SIDE OF TWINKLE AVENUE APPROXIMATELY 350 FEET SOUTH OF FUTURE CHINO AVENUE, WITHIN PLANNING AREAS 4A, 4B, AND 4C (RESIDENTIAL – SFD/ATTACHED) LAND USE DISTRICTS OF THE RICH HAVEN SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 0218- 161-14.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing.

Tim Roberts, stated he attended the Planning Commission for the review and approval of the item. He wanted to be sure City Council was aware that when the Planning Commission approved the item, there was an agreement between Brookcal Ontario, LLC and City Staff to defer the phase two improvements until the Right of Way easements from Southern California Edison acquired.

Hearing no other speakers, Mayor Leon closed the public hearing and opened the item for Council discussion.
28 Ontario City Council/Ontario Housing
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MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried unanimously by a 5-0 vote, to introduce Ordinance No. 3225.

20. A PUBLIC HEARING TO CONSIDER ADOPTION OF AN ORDINANCE APPROVING THE 2021 INTERNATIONAL FIRE CODE AND THE 2022

CALIFORNIA BUILDING AND FIRE CODES ADOPTED BY THE CALIFORNIA

BUILDING STANDARDS COMMISSION IN THE CALIFORNIA CODE OF

REGULATIONS
The City Council introduced and waived further reading of:

A. An Ordinance amending Chapter 4, Title 4 of the Ontario Municipal Code entitled "Fire Code" adopting by reference, with certain amendments, additions, deletions, and exceptions, the 2021 International Fire Code and the 2022 California Fire Code (California Code of Regulations, Title 24, Part 9); and
B. An Ordinance amending Chapters 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, and 14 of Title 8 of the Ontario Municipal Code to adopt the California Building Standards Code by reference, with certain amendments, additions, and deletions.

ORDINANCE NO. 3226 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTER 4 OF TITLE 4 OF THE ONTARIO MUNICIPAL CODE; ADOPTING BY REFERENCE

WITH CERTAIN AMENDMENTS, ADDITIONS, DELETIONS, AND CHANGES THERETO, THE 2022 CALIFORNIA FIRE CODE AND THE 2021 INTERNATIONAL

FIRE CODE, PROVIDING FOR THE RECOVERY OF COSTS AND COLLECTION OF FEES; AND REPEALING ORDINANCE NO. 3062 OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA.

ORDINANCE NO. 3227 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTERS 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, AND 14 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE, ADOPTING BY REFERENCE THE 2022 EDITION OF THE CALIFORNIA BUILDING STANDARDS CODE, INCORPORATING THE 2022 CALIFORNIA ADMINISTRATIVE CODE, THE 2022 CALIFORNIA BUILDING CODE, THE 2022 CALIFORNIA MECHANICAL CODE, THE 1997 CALIFORNIA HOUSING CODE, THE 2022 CALIFORNIA ELECTRICAL CODE, THE 2022 CALIFORNIA RESIDENTIAL CODE, THE 2022 CALIFORNIA PLUMBING CODE, THE 2022 CALIFORNIA ENERGY CODE, THE 2021 INTERNATIONAL PROPERTY MAINTENANCE CODE, THE 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, THE 2022 HISTORIC BUILDING CODE, 2022 CALIFORNIA EXISTING BUILDING CODE, AND THE 2022 CALIFORNIA REFERENCED STANDARDS, TOGETHER WITH CERTAIN AMENDMENTS THERETO.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications. 29 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 15, 2022

Page 11 of 14 ends

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item, hearing no speakers, he opened the item for Council discussion.

MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried unanimously by a 5-0 vote, to introduce Ordinance No. 3226 and Ordinance No. 3227.

21. RESOLUTIONS OF NECESSITY FOR THE ACQUISITION BY EMINENT DOMAIN

OF FEE INTERESTS IN CERTAIN REAL PROPERTIES LOCATED ON EAST

HOLT BOULEVARD, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NOs. 1048-481-27; 1048-481-07; 1048-481-28; AND 1048-481-29 The City Council conducted a public hearing and adopted Resolutions of Necessity declaring that the acquisition of fee interests in certain real properties located on East Holt Boulevard, more particularly described as Assessor Parcel Nos. 1048-481-27; 1048-481-07; 1048-481-28; and 1048-481-29, is necessary for the construction of affordable housing.

RESOLUTION NO. 2022-151 A RESOLUTION OF NECESSITY OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FOR THE ACQUISITION BY

EMINENT DOMAIN OF FEE INTERESTS IN CERTAIN REAL PROPERTY

LOCATED ON EAST HOLT BOULEVARD, MORE PARTICULARLY DEFINED AS ASSESSOR PARCEL NO. 1048-481-27.

RESOLUTION NO. 2022-152 A RESOLUTION OF NECESSITY OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FOR THE ACQUISITION BY

EMINENT DOMAIN OF FEE INTERESTS IN CERTAIN REAL PROPERTY

LOCATED ON EAST HOLT BOULEVARD, MORE PARTICULARLY DEFINED AS ASSESSOR PARCEL NO. 1048-481-07.

RESOLUTION NO. 2022-153 A RESOLUTION OF NECESSITY OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FOR THE ACQUISITION BY

EMINENT DOMAIN OF FEE INTERESTS IN CERTAIN REAL PROPERTY

LOCATED ON EAST HOLT BOULEVARD, MORE PARTICULARLY DEFINED AS ASSESSOR PARCEL NO. 1048-481-28.

RESOLUTION NO. 2022-154 A RESOLUTION OF NECESSITY OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FOR THE ACQUISITION BY

EMINENT DOMAIN OF FEE INTERESTS IN CERTAIN REAL PROPERTY

LOCATED ON EAST HOLT BOULEVARD, MORE PARTICULARLY DEFINED AS ASSESSOR PARCEL NO. 1048-481-29.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There was was written communication from the Law Office of David J. Habib requesting a postponement.
30 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 15, 2022

Page 12 of 14 ends

Economic Development Director Jennifer Hiramoto gave a short presentation on the matter.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item, hearing no speakers, he closed the public hearing and opened the item for Council discussion.

City Council discussed the matter.

MOTION: Moved by Council Member Dorst-Porada seconded by Council Member Bowman and carried unanimously by a 5-0 vote, to adopt Resolution Nos. 2022-151, 2022-152, 2022-153, and 2022-154.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION

22. A RESOLUTION AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 55 (PARKLANE) SPECIAL TAX BONDS, SERIES 2022, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $11 MILLION AND RELATED MATTERS
The City Council considered and adopted a Resolution authorizing the issuance of City of Ontario Community Facilities District No. 55 (Parklane) Special Tax Bonds, Series 2022, and took the following actions:

A. Authorized the issuance of special tax bonds for public improvements required to facilitate the development of the Parklane project and the Ontario Ranch development;
B. Approved the forms of the Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and the Preliminary Official Statement; C. Authorized a negotiated sale of the special tax bonds to Stifel, Nicolaus & Company, Incorporated in accordance with the terms of the Bond Purchase Agreement; and
D. Authorized the execution of the Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, a deemed final certification in connection with the Preliminary Official Statement, a final Official Statement and other documents in connection with the issuance of the bonds by the City Manager or the other specified authorized officers.

RESOLUTION NO. 2022-155 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 55 (PARKLANE) SPECIAL TAX BONDS, SERIES 2022, IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $11,000,000.00, AUTHORIZING THE EXECUTION AND DELIVERY

OF AN INDENTURE, A BOND PURCHASE AGREEMENT, AND A CONTINUING

DISCLOSURE AGREEMENT, AUTHORIZING THE DISTRIBUTION OF AN

OFFICIAL STATEMENT IN CONNECTION THEREWITH AND AUTHORIZING THE 31 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 15, 2022

Page 13 of 14 ends

EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND
RELATED ACTIONS.

23. AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO.

PDA22-001) BETWEEN THE CITY OF ONTARIO AND BROOKCAL ONTARIO, LLC., TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20529 (FILE NO. PMTT22-010), AN 11.11-ACRE

The City Council considered adopting an Ordinance approving a Development Agreement (File No. PDA22-001) between the City of Ontario and BrookCal Ontario LLC., to establish the terms and conditions associated with Tentative Tract Map 20529 (File No. PMTT22-010), an 11.11-acre property generally located on the east side of Twinkle Avenue, approximately 350 feet south of future Chino Avenue, within Planning Areas 4A, 4B, and 4C (Residential -SFD/Attached) land use district of the Rich Haven Specific Plan.

ORDINANCE NO. 3225 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDA22-001, A

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND
BROOKCAL ONTARIO LLC., TO ESTABLISH THE TERMS AND CONDITIONS FOR THE DEVELOPMENT OF TENTATIVE TRACT MAP NO. 20529 (FILE NO.

PMTT22-010), AN 11.11 ACRE PROPERTY GENERALLY LOCATED ON THE EAST SIDE OF TWINKLE AVENUE APPROXIMATELY 350 FEET SOUTH OF FUTURE CHINO AVENUE, WITHIN PLANNING AREAS 4A, 4B, AND 4C (RESIDENTIAL – SFD/ATTACHED) LAND USE DISTRICTS OF THE RICH HAVEN SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 0218- 161-14.

Mayor Leon announced the item needed to be adjourned to November 22, 2022 at 9:00 a.m. He added that the notice of the adjourned meeting would be posted on the City’s website and bulletin board.

STAFF MATTERS
City Manager Ochoa made no comments.

COUNCIL MATTERS
Council Member Dorst-Porada announced upcoming volunteer opportunities. 32 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 15, 2022

Page 14 of 14 ends

Mayor pro Tem Wapner spoke on public safety concerns and requested a report on the use of fentanyl and suggestions on how to mitigate the problem.

Council Member Bowman wished all a Happy Thanksgiving.

Mayor Leon spoke on recent events for Veteran’s Day and asked Ontario Fire Chief Gayk to provide an update on emergency evacuation of the wash.

Council Member Valencia extended his condolences to families of those who lost their lives in the recent storm and announced upcoming events.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 8:13 p.m. in memory of Katie Roberts and announced the adjourned meeting on November 22, 2022 at 9:00 a.m.

Respectfully submitted,
____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
APPROVED:
_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
33 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
NOVEMBER 22, 2022
(Not Official Until Approved)
(Not Official Until Approved)

JOINT MEETINGS
The adjourned meetings of the Ontario City Council and Housing Authority were held on Tuesday, November 22, 2022 at Ontario City Hall, 303 E. B Street Ontario, California.

CALL TO ORDER
Mayor Leon called the joint meetings to order at 9:01 a.m.

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor pro Tem Wapner.

PUBLIC COMMENTS
There were no public comments

AGENDA REVIEW/ANNOUNCEMENTS
City Manager Ochoa made no announcements.

CONSENT CALENDAR
MOTION: Moved by Council Member Dorst-Porada, seconded by Council Member Bowman and carried by unanimous vote 5-0, to approve the Consent Calendar as presented.
34 Ontario City Council/Ontario Housing
Adjourned Meeting Minutes – November 22, 2022

Page 2 of 3 ends

1. AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO.

PDA22-001) BETWEEN THE CITY OF ONTARIO AND BROOKCAL ONTARIO, LLC., TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20529 (FILE NO. PMTT22-010), AN 11.11-ACRE

The City Council considered and adopted an Ordinance approving a Development Agreement (File No. PDA22-001) between the City of Ontario and BrookCal Ontario LLC., to establish the terms and conditions associated with Tentative Tract Map 20529 (File No. PMTT22-010), an 11.11-acre property generally located on the east side of Twinkle Avenue, approximately 350 feet south of future Chino Avenue, within Planning Areas 4A, 4B, and 4C (Residential -SFD/Attached) land use district of the Rich Haven Specific Plan. Introduction and first reading took place at a regular Council meeting on November 15, 2022.

ORDINANCE NO. 3225 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDA22-001, A

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND
BROOKCAL ONTARIO LLC., TO ESTABLISH THE TERMS AND CONDITIONS FOR THE DEVELOPMENT OF TENTATIVE TRACT MAP NO. 20529 (FILE NO.

STAFF MATTERS
City Manager Ochoa made no comments.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 9:04 a.m.

Respectfully submitted,
____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
35 Ontario City Council/Ontario Housing
Adjourned Meeting Minutes – November 22, 2022

Page 3 of 3 ends

APPROVED:
_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
36 Department: Engineering
Prepared By: Francisco Herrera
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT:

DESIGN SERVICES AGREEMENT FOR A TRAFFIC SIGNAL SYSTEM, SIGNAL

MODIFICATIONS AND BUS STOP IMPROVEMENTS

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council approve a Design Services Agreement (on ﬁle in the Records Management Department) with AGA Engineers, Inc., of Fullerton, California, to provide Design Services for a Traﬃc Signal System at San Antonio Avenue at Francis Street, signal modiﬁcations at Campus Avenue at Mission Blvd and Sultana Avenue at Mission Blvd, and ADA- compliant bus stop improvements at various locations in the amount $117,766 plus a 10% contingency of $11,776 for a total authorized amount expenditure of $129,542; and authorize the City Manager, or his designee, to execute said Agreement and future amendments within the authorization limits.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The Fiscal Year 2022-2023 Adopted Budget includes appropriations for the traﬃc signal system at San Antonio Avenue at Francis Street signal modiﬁcations at Campus Avenue at Mission Blvd and Sultana Avenue at Mission Blvd and bus stop improvements in the amount of $1,025,000 from Road Maintenance and Rehabilitation (RMRA-SB1). The total recommended expenditure authorization with AGA Engineers, Inc. for design services consists of $117,766 plus a ten percent (10%) contingency of $11,776 for a total of $129,542. The remaining $895,458 in RMRA- SB1 funds will be used for the construction phase.

BACKGROUND & ANALYSIS:

The Agreement will provide for engineering design services towards preparation of plans, speciﬁcations, estimates (PS&E), permit and utility coordination, design support during construction and an optional task of legal and plat preparation for the new traﬃc signal, signal improvements and ADA compliant passenger boarding improvements.

In September 2022, the City solicited proposals for the project and received 3 responses. A selection 37 team of 3 City staﬀ members reviewed the proposals. After evaluation of the ﬁrms, the selection team recommends AGA Engineers, Inc. based upon the quality of their proposal, past performance on similar projects, and favorable references. AGA Engineers Inc. has agreed to a base fee of $117,766, which is deemed a fair and reasonable fee for the specified scope of work. 38 Department: Engineering
Prepared By: Tricia Espinoza
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT:

A DESIGN SERVICES AGREEMENT FOR THE EDISON AVENUE/ONTARIO RANCH

ROAD WIDENING PROJECT

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT:

The Fiscal Year 2022-23 Adopted Budget appropriated funds in the amount of $100,000 in Road Maintenance and Rehab Account (RMRA-SB1) for the feasibility/preliminary engineering phase of the project (ST2308). The total recommended expenditure authorization for Wood Rodgers, Inc. consists of $173,952, plus a ten percent (10%) contingency of $17,395 for a total amount of $191,347. The additional $91,347 will be funded from RMRA-SB1 fund balance. Upon approval, the additional appropriations from RMRA-SB1 will be included in the Fiscal Year 2022- 2023 Mid-year Budget Update.

BACKGROUND & ANALYSIS:

Edison Avenue/Ontario Ranch Road is a Truck Route and Principal Arterial. Edison Avenue/Ontario Ranch Road has been greatly impacted by new development and ongoing construction in Ontario Ranch. In its ultimate conﬁguration, Edison Avenue/Ontario Ranch Road will be four lanes in each direction with a raised median and a 160-foot right-of-way. This project will analyze the feasibility of providing an interim widening of a three-mile stretch of Edison Avenue/Ontario Ranch Road from two lanes to four lanes from Euclid Avenue to Cucamonga Creek Channel (see attached project location exhibit).

39 The Agreement will include engineering design services for the feasibility analysis and preliminary engineering for the interim Edison Avenue/Ontario Ranch Road Widening (Project). This initial phase will include a feasibility analysis of alternates, preliminary engineering, utility and right-of- way impact analysis, environmental determination and traﬃc analysis. Upon completion of this preliminary phase of the project, the City will have the option to proceed with the ﬁnal design, including environmental document, utility relocation/coordination, right-of-way appraisal and acquisition, and plans, specifications and estimates (PS&E) as an amendment to this agreement.

In September 2022, the City solicited proposals and received four responses. A selection team comprised of City Staﬀ reviewed the proposals and recommends Wood Rodgers, Inc., based upon the quality of their proposal, past performance on similar projects, and favorable references. Wood Rodgers, Inc., has agreed to a base fee of $173,952, which is deemed a fair and reasonable fee for the specified scope of work.
40 41
Department: Engineering
Prepared By: Antonio Alejos
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Reviewed By: Raymond Lee, Khoi Do
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT:

A RESOLUTION APPROVING FINAL TRACT MAP NO. 20303, LOCATED AT THE

NORTHEAST CORNER OF VIA ALBA AND ONTARIO CENTER PARKWAY

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council adopt a Resolution approving Final Tract Map No. 20303, located at the northeast corner of Via Alba and Ontario Center Parkway within the Ontario Center Specific Plan area.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

There is not a direct ﬁscal impact associated with this action. All public infrastructure improvements required for this subdivision will be constructed by the Developer at its sole cost.

BACKGROUND & ANALYSIS:

Final Tract Map No. 20303, consisting of one numbered lot on approximately 4.63 acres of land, as shown on Exhibit A, has been submitted by Taylor Morrison of California, LLC, a California Limited Liability Company. Tentative Tract Map No. 20303 was approved by the Planning Commission on December 22, 2020.

Improvements will include domestic water main, sewer main, recycled water services, ﬁber optic conduits and parkway landscaping with irrigation. All landscape improvements will be consistent with current City approved drought measures.

The Developer has posted adequate security to ensure construction of the required improvements.

This map meets all conditions of the Subdivision Map Act and the Ontario Municipal Code and has been reviewed and approved by the City Engineer.
42 VIA ALBA

CONCOURSONTARIO CENTER PARKWAY
PARCEL 28PARCEL 31PARCEL 23
PARCEL 22PARCEL 30

AXIS PRIVADO

RADIUS PRIVADO

CIRCLE PASEOCIRCLE PASEOCIRCLE PASEO

AXIS PRIVADO
TANGENT PRIVADOAXISPRIVADOLOT 14.63 ACRES
TRACT NO. 20303PREPARED BY:
1 OF 1RADIUS @ PIEMONTECITY OF ONTARIOVICINITY MAPONTARIOINTERNATIONALAIRPORT

FOURTH STREETSIXTH ST

INLAND EMPIREBLVD

HAVEN AVENUE

ARCHIBALD AVENUEHERMOSA AVENUE

MILLIKENAVENUE
METROLINK15
10CONCOURS
NTS

PROJECTSITE

EXHIBIT 'A'

AEXHIBIT
43 RESOLUTION NO.________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FINAL TRACT MAP NO. 20303 LOCATED AT

THE NORTHEAST CORNER OF VIA ALBA AND ONTARIO CENTER
PARKWAY.

WHEREAS, Tentative Tract Map No. 20303 submitted for approval by LCD Residential at Ontario, LLC, was approved by the Planning Commission of the City of Ontario on December 22, 2020; and
WHEREAS, Tentative Tract Map No. 20303 consists of one numbered lot, being a subdivision of Parcel 30 of Parcel Map No. 17550, recorded in Book 216 of Parcel Maps, Pages 7 through 20, in the office of the County Recorder of San Bernardino County; and WHEREAS, Tentative Tract Map No. 20303 was subsequently sold to Taylor Morrison of California, LLC, a California Limited Liability Company; and WHEREAS, to meet the requirements established as prerequisite to final approval of Final Tract Map No. 20303, Taylor Morrison of California, LLC, a California Limited Liability Company has posted sufficient improvement security; and WHEREAS, the requirement for the preparation of Covenants, Conditions and Restrictions (CC&R’s), approved by the City Attorney’s Office, to ensure the right to mutual ingress and egress and continued maintenance of common facilities by the commonly affected property owners has been deferred to a date that coincides with the recordation of the subject Tract Map.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California, that Final Tract Map No. 20303, be approved and that the City Clerk be authorized to execute the statement thereon on behalf of said City.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 20th day of December 2022. _____________________________________
PAUL S. LEON, MAYOR
44 ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
45 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held December 20, 2022 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022- duly passed and adopted by the Ontario City Council at their regular meeting held December 20, 2022. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
46 Department: Police Department
Prepared By: Nicole Alvarez
Staff Member Presenting:

Mike Lorenz, Chief of Police
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 7
SUBJECT:

AN AMENDMENT TO THE PROFESSIONAL SERVICES AND EQUIPMENT PURCHASE

AGREEMENT FOR THE ACQUISITION OF POLICE DEPARTMENT FRONTLINE

PATROL EQUIPMENT

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council authorize the City Manager to execute an amendment to the professional services and equipment purchase agreement with Axon Enterprise, Inc., of Scottsdale, Arizona, for the purchase of new and replacement equipment, including tasers and body-worn camera systems for frontline police personnel, Fusus, Axon Air, Fleet 3 Advanced, as well as maintenance and data management services for 77 months in the amount of $9,254,760.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Operate in a Businesslike Manner
FISCAL IMPACT:

The proposed Amendment to the Professional Services and Equipment Purchase Agreement increases the existing ﬁve-year term and $3,802,634 contract amount to a new not-to- exceed contract amount of $9,254,760. The Information Technology Fund includes appropriations for $803,675 per year for the Axon Agreement. Additional appropriations of $1,736,699 will be included in the General Fund on the next quarterly budget update.

Additionally, by allowing the longer term for the Agreement, the City will save $1,710,555 over the term of the contract. If approved, appropriations will be added to Information Technology’s fund for future years' budgets consistent with the annual adoption process.

BACKGROUND & ANALYSIS:

The Police Department currently has an Agreement with Axon Enterprise, Inc. (formerly known as TASER International, Inc.) for body-worn cameras, maintenance and data management services for Police ﬁeld and Airport personnel which expires April 2, 2026.

Axon is combining three current contracts to streamline into one to support multiple products across the Axon ecosystem. Upon execution of an updated contract referred to as "the Oﬃcer Safety Plan 7 Plus" or OSP, Axon will grant a refund to prorate the ﬁnal years of the existing contract. The OSP is structured to support programs for body worn cameras, dash cameras, air drones, interview rooms, and real time information centers. With emerging technology and 47 systems, it is necessary to upgrade and provide frontline personnel with up-to-date equipment. All equipment will utilize Axon' s Evidence.com data storage and management feature which protects the integrity of video and data ﬁles captured using tasers, body-worn cameras and interview rooms to provide security, tracking and redaction assistance of ﬁle viewing, and integrates with a proposed County-wide initiative under the San Bernardino County District Attorney' s Office. 48 Department: Public Works
Prepared By: Adrian Escamilla
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam, Vanny Khu
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 8
SUBJECT:

A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH NEW MILLENNIUM

CONSTRUCTION SERVICES FOR ADDITIONAL OFFICE IMPROVEMENT PROJECT

MATERIALS

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

B
.

Authorize the City Manager or his designee to execute said contract and authorize the filing of the notice of completion at the conclusion of all construction activities related to the project.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The proposed change order will include the 10% contingency of $11,600 plus the additional funding of $15,074 for a total amount of $26,674. This will increase the current not-to- exceed authorization for the Construction Contract from $116,000 to $142,674. The Fiscal Year 2022-23 Adopted Budget includes appropriations in the Capital Projects Fund for this project.

BACKGROUND & ANALYSIS:

On August 16, 2022, the City Council approved a Construction Contract with New Millennium Construction Services for the City Hall First Floor Oﬃce Improvements project in the amount of $116,000 plus a 10% contingency of $11,600 for a total amount of $127,600. As the work progressed, the contractor found certain materials speciﬁed on the plans were discontinued. This alters the scope of work and cost to match existing materials (i.e., oﬃce doors, oﬃce blinds and tempered obscured glass) and all contingency funds have been exhausted. This Change Order will allow the funding needed to complete the City Hall First Floor Office improvements project.
49 Department: Public Works
Prepared By: Adrian Escamilla
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam, Vanny Khu
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 9
SUBJECT:

AMENDMENTS TO THE DESIGN SERVICES AGREEMENT FOR CITYWIDE ON-CALL

ARCHITECTURAL SERVICES WITH HOLT ARCHITECTURE

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

Holt Architecture will be compensated for on-call, as-needed services at the ﬁxed hourly rates set forth in their Design Services Agreement for the work it performs on City Council approved capital improvement projects. The proposed Amendment No. 4 in the amount of $98,992 is for the design cost of the John Galvin Park Restroom Facilities. The Fiscal Year 2022-23 Adopted Budget includes appropriations in the Capital Projects Fund for this project. The proposed Amendment No. 5 in the amount of $152,202 is for the design cost of the Police Department Real Time Information Center and Training Division Renovations. The Fiscal Year 2022-23 Adopted Budget includes appropriations in the Grants Fund and Law Enforcement Impact Fund for this project. The total compensation paid by the City under the original term and any subsequent term extensions will not exceed $572,514.

BACKGROUND & ANALYSIS:

On January 21, 2020, the City Council authorized executing a three- year, on-call Design Services Agreement with Holt Architecture. Utilizing the on-call agreement with Holt Architecture, the City has exceeded the $100,000 threshold. At this time, staﬀ recommends authorizing a not to exceed amount of $572,514 with Holt Architecture for on-call architectural services including design for the Police Department Real Time Information Center and Training Division Renovation and the John Galvin Park Restroom Facilities. 50 Department: Fleet Services
Prepared By: Manuel Rebolledo
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam, Vanny Khu
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 10
SUBJECT:

AUTHORIZE THE PURCHASE OF FLEET VEHICLES

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

B
.

C
.

D
.

Authorize the cooperative purchase and delivery of one John Deere Commercial Mower in the amount of $30,000 plus a 20% contingency of $6,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $36,000, for the Parks and Maintenance Department from Stotz Equipment of Montclair, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 031121-DAC.

E
.

Authorize the cooperative purchase and delivery of one John Deere Heavy Equipment Loader in the amount of $270,000 plus a 20% contingency of $54,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $324,000, for the Parks and Maintenance Department and one John Deere Heavy Equipment Backhoe in the amount of $175,000 plus a 20% contingency of $35,000 to 51 mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $210,000, for the Utilities Department from RDO Equipment of Riverside, California, consistent with the terms and conditions of the Sourcewell Cooperative Contract No. 032119-JDC.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Operate in a Businesslike Manner
FISCAL IMPACT:

The Fiscal Year 2022-23 Adopted Budget includes appropriations in the Equipment Services Fund for the purchase of replacement vehicles. The total cost of the vehicles recommended for purchase is $735,000 plus a 20% contingency of $147,000 to mitigate any unforeseen issues with supply chain surcharges and manufactures price increases, for a total not to exceed amount of $882,000.

BACKGROUND & ANALYSIS:

The vehicles recommended for replacement in this action have outlived their useful life and it is no longer cost eﬀective to maintain them. They are scheduled for replacement pursuant to ongoing eﬀorts to reduce expenses, maximize useful life expectancy and extend replacement cycles of ﬂeet equipment, while ensuring safe and reliable operations. This procurement action will result in the replaced vehicles being available to surplus, with any auction sale proceeds returning to the Equipment Service Fund.

Fleet Services and Parks and Maintenance Staﬀ evaluated the LP 401 Low-Proﬁle Remote-Control Skid Steer that can be used in a variety of restrictive areas where a normal man-operated machine cannot operate and recommends the purchase from Hard-Line USA Inc., the sole source manufacturer and provider of LP401 Low-Profile Remote-Control Skid Steer.

In general conformation with the provisions of Government Code Section 54201 through 54204, Ontario Municipal Code Section 2-6.29 allows for the purchase of supplies and equipment through cooperative purchasing programs, pursuant to California Government Code Section 6502 and City of Ontario Resolution No. 91-141. Cooperative purchasing allows the City to pool its procurement power with other public agencies to obtain lower pricing than otherwise might be possible.

QUANTITY
TYPE

DEPARTMENT
PRICE
1 LP401 Low Profile
Remote Skid Steer
PKS/MT
$192,000
1 EV Mitsubishi Forklift
PD
$54,000
1 Bobcat Skid Steer
PKS/MT
$66,000
1 John Deere Commercial
Mower
PKS/MT
$36,000
1 John Deere Heavy
Equipment Loader
PKS/MT
$324,000
52 1
John Deere Heavy
Equipment Backhoe
PU
$210,000
TOTAL

TOTAL
6 $882,000
53 Department: Police Department
Prepared By: Lizceth Zazueta
Staff Member Presenting:

Mike Lorenz, Chief of Police
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 11
SUBJECT:

AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR LEGAL

CONSULTING

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council authorize the City Manager to execute Amendment No. 2 to the existing Professional Services Agreement with Jones & Mayer for legal consulting.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Maintain the Current High Level of Public Safety
Operate in a Businesslike Manner
FISCAL IMPACT:

The estimated annual cost for legal services is $200,000 per Fiscal Year (FY) not to exceed $400,000 for the two (2) year term. Appropriations of $200,000 will be included in the General Fund on the next quarterly budget update for FY 2022-23. Appropriations for the future ﬁscal year will be included in the respective ﬁscal year budgets for City Council consideration and approval. A request for any additional budget appropriations will occur should the Department experience an increase in legal services far more than anticipated.

BACKGROUND & ANALYSIS:

Jones & Mayer provides services to public entities and serves as City Attorney to various cities throughout Southern California. Periodically, the Police Department ﬁnds it necessary to retain counsel for litigation and various other legal review to best protect the City's interest. In 2019, the City established a contract with Jones & Mayer to provide consulting, representational, and legal services pertaining to representation in litigation proceedings.

The current contract term was for June 30, 2022, with two (2) successive one (1) year extensions.

Amendment No. 2 will increase the authorized contract of $200,000 per year and extend the contract term to June 30, 2024. This increase and extension reﬂects the costs associated with counsel and representation needed for current and pending litigation cases and other legal services.
54 Department: Community Life & Culture
Prepared By: Lacey A Rightmer
Staff Member Presenting:

Helen McAlary, Executive Director Community
Life and Culture
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 12
SUBJECT:

AUTHORIZE THE PURCHASE OF PLAYGROUND EQUIPMENT FOR SAM ALBA

MEMORIAL PARK

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Encourage, Provide or Support Enhanced Recreational, Educational, Cultural and Healthy City Programs, Policies and Activities
FISCAL IMPACT:

The City of Ontario has been awarded a total of $286,906 from the California Department of Parks and Recreation through the Parks, Environment and Water Bond Act of 2018 (Proposition 68). The not-to-exceed amount for this purchase is $199,393, which will be reimbursed through the grant funds. Appropriations and revenues will be included in the Grants Fund on the next FY 2022-23 Quarterly Budget Update. Matching funds are not required for this grant.

BACKGROUND & ANALYSIS:

On September 7, 2021, City Council approved the ﬁling of an application for grant funds through the California Department of Parks and Recreation for the Statewide Per Capita Grant Program under the Parks, Environment and Water Bond Act of 2018 (Proposition 68). Under the Proposition 68 Per Capita Grant Program, more than 700 agencies were awarded noncompetitive funds on a per capita basis to support the rehabilitation, creation, and improvement of local parks. State Grant recipients are encouraged to utilize awards to rehabilitate existing infrastructures and to address deﬁciencies in neighborhoods that lack access to outdoor recreation facilities. The Sam Alba Park Revitalization Project is consistent with the grant program criteria. The grant amount awarded to the City of Ontario is $286,906.

The Playground equipment at Sam Alba Memorial Park is outdated and in need of replacement to keep it in working order and reduce future maintenance expenses. The selected playground vendor 55 is BCI Burke and the playground will be purchased through their representative Innovative Playgrounds, Inc. The remaining grant funds will be used for other enhancements to the park including the installation of picnic tables and exercise equipment.

In general conformation with the provisions of Government Code Section 54201 through 54204, Ontario Municipal Code Section 2-6.29 allows for the purchase of supplies and equipment through cooperative purchasing programs. Cooperative purchasing allows the City to pool its procurement power with other public agencies to obtain lower pricing than otherwise might be possible.

On November 28, 2022, the Recreation & Parks Commission approved the design for the new playground to be installed at Sam Alba Memorial Park with a vote of 6-0 and recommends that the City Council authorize the cooperative purchase.
56 Department: Community Life & Culture
Prepared By: Lacey A Rightmer
Staff Member Presenting:

Helen McAlary, Executive Director Community
Life and Culture
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 13
SUBJECT:

AWARD A PROFESSIONAL SERVICES AGREEMENT FOR PRINTING SERVICES

RELATED TO THE ONTARIO LIVING MAGAZINE

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

B
.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Encourage, Provide or Support Enhanced Recreational, Educational, Cultural and Healthy City Programs, Policies and Activities
FISCAL IMPACT:

The Community Life & Culture Adopted Fiscal Year 2022-23 General Fund Budget includes appropriations for printing services related to the Ontario Living Magazine. The proposed Professional Services Agreement provides for 65,500 copies of the magazine to be printed per quarter for an annual not-to-exceed amount of $175,000. As residential units are developed throughout the City, additional appropriations will be included in future years' budgets for printing additional copies for these new residences.

BACKGROUND & ANALYSIS:

The Ontario Living Magazine is a quarterly publication providing the residents and businesses in Ontario with the latest news, programs, and community events within the City of Ontario. Ontario prides itself in having a comprehensive publication that provides a modern design and high-quality printing of each issue.

57 In October 2022, the City solicited proposals from qualiﬁed ﬁrms for professional printing services related to the Ontario Living Magazine and received one response from the following vendor:

Eclipse Printing & Graphics LLC, DBA James Litho of Ontario, CA

Community Life & Culture requests City Council approval to enter into a three-year agreement with the option to extend for two additional years with Eclipse Printing & Graphics LLC, DBA James Litho for an annual amount of $175,000 and a total compensation not to exceed $875,000. 58 Department: Community Life & Culture
Prepared By: Lacey A Rightmer
Staff Member Presenting:

Helen McAlary, Executive Director Community
Life and Culture
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 14
SUBJECT:

AWARD OF GOODS & SERVICES AGREEMENT WITH NEXT/NOW FOR BUILT ON

WATER EXHIBIT

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:
a
.

Reject SimInsight Inc.'s protest against Next/Now for the development of a Virtual Reality experience.
b
.

Authorize the City Manager to execute a Goods &
Services Agreement with Next/Now from
Chicago, Illinois, for services involving the development of a virtual reality experience for the Built on Water
exhibit at the Ontario Museum of History and Art in an amount not to exceed $115,000.
c
.

Authorize a 10% contingency of $11,500 to address any unforeseen issues that may arise during the project.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Encourage, Provide or Support Enhanced Recreational, Educational, Cultural and Healthy City Programs, Policies and Activities
FISCAL IMPACT:

The contract has a not to exceed amount of $126,500, which includes $115,000 plus a 10% contingency.

Appropriations of $110,000 are included in the General Fund FY 2022-23 Adopted Budget and will
be included in subsequent years for Council approval. Appropriations of an additional $16,500 are included in the Museum’s CIP Fund.

BACKGROUND & ANALYSIS:

In 2018, the Ontario Museum of History & Art received a federal grant from the Institute of Museum and Library Services (IMLS) for a new permanent exhibition, Built on
Water: Ontario and Inland Southern California
. The exhibition focuses on the history and future of
water in Ontario and the surrounding region. This multi-year project supports the development of the exhibition, related programming, and technological components. To shape the narrative, the exhibition planning process brought together Museum staﬀ, water conservation districts, researchers, local archives, school districts, as well as the Ovitt Family Community Library, Ontario Municipal Utilities Company, and residents. City Staﬀ consulted with multiple external entities 59 throughout the planning process to bring this exhibit to fruition.

In October 2021, preliminary designs of the exhibit were presented to the Museum Board of Trustees and a request to add an additional technological component was made. Museum Staﬀ presented various options at the November 2021 Musuem board meeting and a virtual reality (VR) experience was selected. In February 2022, $110,000 was allocated for the project. Over the following months Museum Staﬀ researched various VR experiences and vendors in order to identify goals for the project and develop a Request for Proposals (RFP). Museum staﬀ looked for vendors that could present a semi-immersive VR experience narrated as a storyline that would follow an object, individual, and/or animal and allow museum visitors to interact with and further visualize key themes of the exhibit.

The project was listed in Planet Bids in early October. Ten vendors bid on the project and three ﬁnalists were selected for second interviews.

Staﬀ selected Next/Now, a full-service marketing and
technology company with extensive experience designing VR environments for high proﬁle brands and museums in a range of aesthetic styles, based on their superior understanding of the Museum’s needs and goals for the project
.

On December 7, 2022, a protest letter was submitted by
SimInsight Inc. Staﬀ reviewed the protest letter and determined that the protest has no merit and should be denied. Staﬀ recommends City Council authorize awarding the bid and entering a Goods & Services Agreement with Next/Now. Staﬀ is conﬁdent in Next/Now's ability to translate Staﬀ's ideas into a fully realized VR experience that will complement the exhibit and stand out as an attraction for visitors.
60 Department: Financial Services
Prepared By: Jialuan Ning
Staff Member Presenting:

Armen Harkalyan, Executive Director of Finance
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 15
SUBJECT:

ANNUAL COMPRENHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2022 AND AB 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2022

CITY OF ONTARIO
Agenda Report
December 20, 2022
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

There are no direct ﬁscal impacts as a result of both of these actions. However, the City’s receipt of an unqualiﬁed audit report with no material internal control weaknesses or signiﬁcant deﬁciencies reported, can result in enhanced bond ratings.

In addition, the AB1600
Development Impact Fee (DIF) annual report (unaudited) is submitted to the City Council for informational purposes only, as it strictly reports on the DIF funds.

BACKGROUND & ANALYSIS:

The primary objectives of a ﬁnancial audit are: (1) to express an opinion on the fairness of the ﬁnancial statements in conformity with generally accepted accounting principles; and (2) to determine whether the City has complied with applicable legal requirements in obtaining and expending public funds. The audit for Fiscal Year 2021-22 was performed in accordance with generally accepted auditing standards by the accounting ﬁrm of Badawi & Associates. These standards are required to obtain reasonable assurances that the general-purpose financial statements are free from material misstatements.

The opinion given in the Independent Auditors Report states that “the ﬁnancial statements referred to above present fairly, in all material respects, the respective ﬁnancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ontario, California, as of June 30, 2022, and the respective changes in ﬁnancial position and, where applicable, cash ﬂows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.” Also, it is 61 worth noting that Staﬀ did make the audited ﬁnancial statements available for the public and the City Council review prior to the December 31, 2022, deadline, as required by law.

On July 1, 2003, the City Council adopted Ordinance Nos. 2779 and 2780 approving the collection of Development Impact Fees (DIF) to mitigate the impacts of future development. In accordance with the provisions of Ordinance Nos. 2779 and 2780, the City began collecting DIF on September 1, 2003; and the impact fees have been updated periodically by Resolutions of the City Council. The fees that were used for the attached AB 1600 DIF Annual Report for Fiscal Year Ended June 30, 2022, was authorized by the City Council on September 17, 2019, by Resolution No. 2019-135. This update, as well as the previous update, incorporates the results of the City's 2012 Water, Sewer, Storm Drain and Circulation Master Plan updates, along with the land use assumptions underlying the City's most recently updated General Plan (The Ontario Plan). It is worth noting that the latest DIF update was authorized by the City Council on August 16, 2022, by Resolution No. 2022-133, and will be used for future AB 1600 DIF Reports.

California Government Code Sections §66001 and §66006 require making certain Development Impact Fee information available to the public. The City of Ontario addresses these reporting requirements through issuance of the AB 1600 DIF Annual Report along with the release of periodic updates to the City’s development impact fee calculation and nexus schedules. As of the date of preparation of this report, the AB 1600 DIF Annual Report for Fiscal Year Ended June 30, 2022, represents the unaudited DIF financials and is available at www.ontarioca.gov/Building/Fees
.

The AB 1600 DIF Annual Report for Fiscal Year Ended June 30, 2022, consists of three schedules.

The ﬁrst schedule reports each DIF category’s beginning and ending fund balances, its annual revenue and earnings, and its expenditures for the ﬁscal year. The second schedule provides a summary listing of DIF expenditure amounts by individual public improvement projects. The third provides the ﬁve-year ﬁndings with regards to unexpended funds, whether committed or uncommitted, from FY 2017-18 through FY 2021-22. Currently, all unexpended funds are committed to future projects, which are detailed in the September 2019 Master Facilities Plan. The September 2019 Development Impact Fee Calculation and Nexus Report contains the amount and
purpose of each DIF, the public improvements the fees will fund, and the reasonable relationship between the fees and the purposes for which they are being assessed.

The City of Ontario’s AB 1600 DIF Annual Report for Fiscal Year Ended June 30, 2022 (unaudited), as well as the September 2019 Development Impact Fee Calculation and Nexus Report, and the September 2019 Master Facilities Plan are available for review and reference at the City’s Records Management Department and on the City’s website at
www.ontarioca.gov/Building/Fees
.
62 AB 1600 DEVELOPMENT IMPACT FEE (DIF)

ANNUAL REPORT
For Fiscal Year Ended June 30, 2022
Prepared By:

Development Administration Department of
Community Development Agency
63 Fund Development Impact Fee Purpose
Fund Balance
July 1, 2021 DIF Fees
Interest/
Gains/Losses
Other
Sources/(Uses)
DIF Refunds/
Reimbursements
Project
Expenditures
Fund Balance
June 30, 2022
007 Park Land Acquisition and Facilities Development 33,310,746 14,133,834 (706,108) (27,000) 1 - 5,033,109 41,678,364 101 Law Enforcement Facilities, Vehicles and Equipment 1,447,762 576,381 (18,044) - 5,907 - 2,000,191 106 Refuse Collection Facilities and Equipment 6,685,424 1,233,098 (131,847) - (113) 81,022 7,705,764 107 General Facilities, Vehicles and Equipment 5,963,932 950,841 (116,505) - (24) - 6,798,294 108 Library Facilities and Collection 8,406,089 1,485,226 (165,548) - - - 9,725,767 109 Public Use Facilities 8,951,931 1,700,513 (179,057) - - - 10,473,388 110 Aquatics Facilities 754,866 114,288 (14,600) - - - 854,554 112 NMC Open Space Land Acquisition 6,805,316 1,314,922 (132,145) - - - 7,988,093 170 OMC Regional Circulation (Streets, Bridges and Signals) System 6,702,636 562,074 (113,917) - 6,310 485,390 6,659,093 171 OMC Local Adjacent Circulation (Streets, Bridges and Signals) System 3,440,916 374,694 (70,118) - 4,209 2,715,394 1,025,890 172 OMC Regional Storm Drainage Collection Facilities 1,722,224 36,580 (30,130) - (99) - 1,728,773 173 OMC Local Adjacent Storm Drainage Collection Facilities 11,760,390 680,011 (224,966) 3,493 2 (1,737) - 12,220,664 174 OMC Regional Water System 18,627,899 533,211 (327,735) - 1,280 - 18,832,095 175 OMC Local Adjacent Water System 3,006,227 286,896 (55,390) - 692 - 3,237,040 176 OMC Regional Sewer Collection System 2,973,258 24,483 (51,546) - 89 - 2,946,107 177 OMC Local Adjacent Sewer Collection System 6,747,786 217,695 (92,894) - 1,924,980 225,065 4,722,542 178 OMC Fire Facilities, Vehicles and Equipment (1,613,917) 50,764 - - 9,006 512,534 (2,084,692) 180 NMC Regional Circulation (Streets, Bridges and Signals) System 3,035,225 6,815,025 (154,638) - 2,415,000 938,916 3 6,341,695 181 NMC Local Adjacent Circulation (Streets, Bridges and Signals) System 11,693,770 8,613,135 (310,782) - 1,778,370 - 18,217,753 182 NMC Regional Storm Drainage Collection Facilities 4,713,407 2,696,132 (128,084) - 3,513,404 - 3,768,050 183 NMC Local Adjacent Storm Drainage Collection Facilities 14,974,244 7,954,729 (295,259) - 5,832,561 - 16,801,153 184 NMC Regional Water System 1,101,476 10,384,037 (213,984) 20,000 2 1,451,248 972,142 8,868,139 185 NMC Local Adjacent Water System 20,419,167 4,574,661 (399,513) - 918,889 552,339 23,123,087 186 NMC Regional Sewer Collection System 1,224,122 737,625 (33,380) - 318 368,813 1,559,236 187 NMC Local Adjacent Sewer Collection System 302,536 781,329 (15,569) - 237,433 390,664 440,198 188 NMC Regional Fiber Optic Telecommunication System (11,424,650) 525,224 - - 247,207 306,529 (11,453,161) 189 NMC Local Adjacent Fiber Optic Telecommunication System 219,592 2,079,253 (7,880) - 145,374 753,310 1,392,282 190 NMC Fire Facilities, Vehicles and Equipment (4,319,586) 458,882 (89,514) 9,819,324 4 166,156 1,764,296 3,938,654 167,632,789$ 69,895,541$ (4,079,154)$ 9,815,817$ 18,656,459$ 15,099,522$ 209,509,011$ 3 TSR-60 Archibald Interchange, Reimbursement and Settlement Agreements. 4 Transfer In for Fire Stations 9 &11.

CITY OF ONTARIO
AB 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT
PURSUANT TO GOVERNMENT CODE SECTION 66006
FOR FISCAL YEAR ENDED JUNE 30, 2022 (unaudited)
Revenues
1 Rental of City Property.
2 Miscellaneous Receipts.
64 City Project DIF Project Description
Annual
Expenditure
PA1904 PK-001 Ontario Ranch Great Park 5,011,033
PA1903 PK-001 Skate Park Development 22,076
Fund 007 Subtotal 5,033,109
N/A RC-003 Refuse Containers 81,022
Fund 106 Subtotal 81,022
ST0308 ST-094 S. Milliken Grade Separation 59,200
ST1711 ST-116 I-10 Vineyard Interchange 318,604
ST1712 ST-114 I-10 Euclid Interchange 107,586
Fund 170 Subtotal 485,390
ST1510 ST-036 Mountain & Holt Intersection Widening 2,565,619 ST1710 ST-129 Fourth Street Bridge Undercrossing 149,775 Fund 171 Subtotal 2,715,394
SE1701 SW-022 Archibald Ave Sewer Diversion 225,065
Fund 177 Subtotal 225,065
PF2207 FS-023 Fire Station #1 Relocation & City Hall Expansion 512,534 Fund 178 Subtotal 512,534
ST0308 ST-094 S. Milliken Grade Separation 20,800
ST1411 ST-106 SR60 @ Archibald Interchange 918,116
Fund 180 Subtotal 938,916
WA1907 WT-032 Groundwater Wellhead Treatment 52,268
WA2004 WT-009/WT-010 Ontario Ranch Phase 2 Water Main Improvements 198,675 WA9910 WT-002 New Well Number 43 721,200
Fund 184 Subtotal 972,142
WA1903 WT-016 Haven Recycled Water & Pressure Reducing Station 247,681 WA2004 WT-009/WT-010 Ontario Ranch Phase 2 Water Main Improvements 304,658 Fund 185 Subtotal 552,339
SE1801 SW-001 Payment to IEUA for Eastern Trunk Sewer 2 368,813
Fund 186 Subtotal 368,813
SE1801 SW-001 Payment to IEUA for Eastern Trunk Sewer 2 390,664
Fund 187 Subtotal 390,664
MS-0205 FO-001 Head-End Network - Creekside POP 27,714
MS-0205 FO-002 Core Network 40,406
MS-0205 FO-005 High-Speed Telecomm System-NMC 178,656
MS-0205 FO-007 Fiber Equipment for Residential Units 59,753

CITY OF ONTARIO

DEVELOPMENT IMPACT FEE PROJECTS/EXPENDITURES
FISCAL YEAR ENDED JUNE 30, 2022 (unaudited)
65 Fund 188 Subtotal 306,529
MS-0205 FO-004 Major Steets Conduit System 10,938
MS-0205 FO-005 High-Speed Telecomm System - NMC 48,919
MS-0205 FO-006 The Cabling System Project - NMC 318,613 MS-0205 FO-007 Fiber Equipment for Residential Units 374,839 Fund 189 Subtotal 753,310
PF0506 FS-001 Fire Station #9 Land Acquisiton and Construction 1,764,296 Fund 190 Subtotal 1,764,296
15,099,521.75
Interceptor Sewer Extension, And RP-1 Outfall, Dated June 4, 2004. 2 Pursuant to Cooperative Agreement For The Sewer Conveyance Facilities Of The Eastern Trunk Sewer, Kimball 66 Fund Balance Unexpended
Fund Development Impact Fee Purpose June 30, 2017 2018 2019 2020 2021 2022 Total Funds (Note 1) Note 007 Park Land Acquisition and Facilities Development (5,281,737) - - 8,365,863 5,368,994 5,033,109 18,767,966 - 101 Law Enforcement Facilities, Vehicles and Equipment (1,032,588) - - - - - - - 106 Refuse Collection Facilities and Equipment 2,942,141 98,890 - 93,130 136,914 81,022 409,956 2,532,185 2 107 General Facilities, Vehicles and Equipment 2,680,680 - - - - - - 2,680,680 3 108 Library Facilities and Collection 2,744,956 - - - - - - 2,744,956 4 109 Public Use Facilities 3,738,916 - - 1,299,998 - - 1,299,998 2,438,918 5 110 Aquatics Facilities 316,618 - - - - - - 316,618 6 112 NMC Open Space Land Acquisition 2,120,313 - - - - - - 2,120,313 7 170 OMC Regional Circulation (Streets, Bridges and Signals) System 8,791,273 439,591 475,531 730,998 641,231 485,390 2,772,741 6,018,532 8 171 OMC Local Adjacent Circulation (Streets, Bridges and Signals) System 10,540,373 3,508,146 317,253 282,242 5,544,150 2,715,394 12,367,185 - 172 OMC Regional Storm Drainage Collection Facilities 1,349,867 - - - - - - 1,349,867 9 173 OMC Local Adjacent Storm Drainage Collection Facilities 16,116,885 1,095,854 2,595,509 2,564,236 3,015,406 - 9,271,005 6,845,880 10 174 OMC Regional Water System 13,398,149 - - - - - - 13,398,149 11 175 OMC Local Adjacent Water System 1,685,884 345,321 247,427 - - - 592,748 1,093,136 12 176 OMC Regional Sewer Collection System 2,422,471 - - - - - - 2,422,471 13 177 OMC Local Adjacent Sewer Collection System 4,027,843 5,708 - - 105,675 225,065 336,448 3,691,395 14 178 OMC Fire Facilities, Vehicles and Equipment (135,621) 156,920 343,942 1,518,680 35,291 512,534 2,567,367 - 180 NMC Regional Circulation (Streets, Bridges and Signals) System 1,517,783 531,606 868,658 1,962,394 8,859,996 938,916 13,161,570 - 181 NMC Local Adjacent Circulation (Streets, Bridges and Signals) System 2,178,991 - - - - - - 2,178,991 15 182 NMC Regional Storm Drainage Collection Facilities 844,931 - - - - - - 844,931 16 183 NMC Local Adjacent Storm Drainage Collection Facilities 3,255,279 - - - - - - 3,255,279 17 184 NMC Regional Water System (12,681,792) - - 9,878 294,176 972,142 1,276,196 - 18 185 NMC Local Adjacent Water System 14,476,840 - - 484,614 531,678 552,339 1,568,631 12,908,209 19 186 NMC Regional Sewer Collection System 274,348 163,370 288,203 285,981 144,772 368,813 1,251,139 - 20 187 NMC Local Adjacent Sewer Collection System 248,172 43,141 220,119 345,779 103,222 390,664 1,102,925 - 21 188 NMC Regional Fiber Optic Telecommunication System (2,943,595) - 895,273 478,342 287,458 306,529 1,967,602 - 22 189 NMC Local Adjacent Fiber Optic Telecommunication System 3,312,379 - 1,745,459 1,260,891 647,304 753,310 4,406,963 - 23 190 NMC Fire Facilities, Vehicles and Equipment 8,098,877 41,086 1,111,713 3,036,764 8,749,747 1,764,296 14,703,606 - 24 Notes:

1. All unexpended funds indicate the amount being held beyond the five year limit as described by AB1600.

2. 3.

4. 5.

6. 7.

The unexpended Library Facilities and Collection funds will be expended on the Library projects detailed in the 2019 Master Facilities Plan on pages 419-420.

The unexpended Public Use Facilities funds will be expended on the Public Use Facilities projects detailed in the 2019 Master Facilities Plan on page 423.

The unexpended Aquatics Facilities funds will be expended on the Aquatics Centers projects detailed in the 2019 Master Facilities Plan on page 426.

The NMC Open Space Land Acquisition Development Impact Fee amount is based on a lawsuit settlement. The unexpended funds will be expended on one of the seven scenarios that were contemplated The unexpended General Facilities, Vehicles and Equipment funds will be expended on the General Facilities projects detailed in the 2019 Master Facilities Plan on pages 412-416.

CITY OF ONTARIO

FIVE-YEAR REVENUE TEST USING FIRST IN FIRST OUT METHOD
FISCAL YEAR ENDED JUNE 30, 2022 (unaudited)
Project Expenditures
The unexpended Refuse Collection Equipment funds will be expended on the Solid Waste projects detailed in the 2019 Master Facilities Plan on pages 403-409. 67 8.

Calculation and Nexus Report on page 196 and detailed in the 2019 Master Facilities Plan on pages 61-191.

9. 10.

11. 12.

13. 14.

15. 16.

17. 18.

19. 20.
on page 210 and detailed in the 2019 Master Facilities Plan on pages 350-400.

21. 22.
and Nexus Report on page 212 and detailed in the 2019 Master Facilities Plan on pages 434-441.

23. 24.

The unexpended NMC Regional Sewer Collection System funds will be expended on the Ontario Ranch Regional Sewer projects identified in the 2019 Development Impact Fee Calculation and Nexus Report The unexpended NMC Local Sewer Collection System funds will be expended on the Ontario Ranch Local Sewer projects detailed in the 2019 Master Facilities Plan on pages 350-400.

The unexpended NMC Regional Fiber Optic Communication System funds will be expended on the Ontario Ranch Regional Fiber Optic projects identified in the 2019 Development Impact Fee Calculation The unexpended NMC Local Fiber Optic Communication System funds will be expended on the Ontario Ranch Local Fiber Optic projects detailed in the 2019 Master Facilities Plan on pages 434-441.

The unexpended NMC Fire Facilities, Vehicles and Equipment funds will be expended on the Fire projects detailed in the 2019 Master Facilities Plan on pages 27-52.

The unexpended NMC Local Adjacent Water System funds will be expended on the Ontario Ranch Local Adjacent Water projects detailed in the 2019 Master Facilities Plan on pages 308-345.

The unexpended OMC Local Adjacent Water System funds will be expended on the General City Local Adjacent Water projects detailed in the 2019 Master Facilities Plan on pages 308-345.

The unexpended OMC Regional Sewer Collection System funds will be expended on the General City Regional Sewer projects identified in the 2019 Development Impact Fee Calculation and Nexus Report on page 202 and detailed in the 2019 Master Facilities Plan on pages 350-400.

The unexpended OMC Local Sewer Collection System funds will be expended on the General City Local Sewer projects identified detailed in the 2019 Master Facilities Plan on pages 350-400.

The unexpended NMC Local Adjacent Circulation (Streets, Bridges and Signals) System funds will be expended on the Local Adjacent Ontario Ranch Street projects detailed in the 2019 Master Facilities Plan on pages 61-191.

The unexpended NMC Regional Storm Drainage System funds will be expended on the Ontario Ranch Regional Storm Drainage projects identified in the 2019 Development Impact Fee Calculation and Nexus Report on page 206 and detailed in the 2019 Master Facilities Plan on pages 199-303.

The unexpended NMC Local Adjacent Storm Drainage System funds will be expended on the Local Adjacent Ontario Ranch Storm Drainage projects detailed in the 2019 Master Facilities Plan on pages 199-303.

The unexpended NMC Regional Water System funds will be expended on the Ontario Ranch Regional Water projects identified in the 2019 Development Impact Fee Calculation and Nexus Report on page 208 and detailed in the 2019 Master Facilities Plan on pages 308-345. page 200 and detailed in the 2019 Master Facilities Plan on pages 308-345. to determine the amount needed to be collected to meet the settlement agreeement funding requirement. These scenerios are outlined in the 2019 Development Impact Fee Calcultion and Nexus Report on pages 170-171.

The unexpended OMC Regional Circulation (Streets, Bridges and Signals) System funds will be expended on the General City Street Regional Circulation projects identified in the 2019 Development Impact Fee The unexpended OMC Regional Storm Drainage Facilities funds will be expended on the General City Regional Storm Drainage projects identified in the 2019 Development Impact Fee Calculation and Nexus Report on page 198 and detailed in the 2019 Master Facilities Plan on pages 199-303.

The unexpended OMC Local Storm Drainage Facilities funds will be expended on the General City Local Storm Drainage projects detailed in the 2019 Master Facilities Plan on pages 199-303.

The unexpended OMC Regional Water System funds will be expended on the General City Regional Water projects identified in the 2019 Development Impact Fee Calculation and Nexus Report on 68 Annual
Comprehensive
Financial Report

FISCAL YEAR
ENDED
JUNE 30, 2022
69 Since Ontario’s founding in 1882 by the Chaffey Brothers, the “Model Colony” remains distinctive in its commitment to creating opportunity and building value in the community. For over a century, Ontario has attracted settlement, development, and investment which have resulted in a sustainable well-balanced place to live, work, and play. The images included in the exhibit highlight events, people, and places that helped shape Ontario from “The Vision” Era to the “Commitment to Community” Era. Ontario Through the Years commemorates and celebrates Ontario’s past and the framework it has established for the future.

The compilation of images is organized into ten periods of history. Each decade is in chronological order and identified by title and date. Selected images within each decade represent milestones that define the period in City’s history. While each decade has brought challenges through local, regional, and worldwide events, it has also brought innovation and prosperity. Ontario’s resilience, sense of community, and leadership has resulted in an ever thriving “Model” City as envisioned by its founders.

Visit the mural today at the Ontario Town Square or learn more online at www.OntarioTownSquare.org/Mural.

MURAL

ONTARIO THROUGH THE YEARS
70 City of Ontario, California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For Fiscal Year Ending June 30, 2022
Prepared By:

Financial Services Agency
71 72
City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Principal Officers ....................................................................................................................................................... xiii Citywide Organizational Chart ............................................................................................................................... xiv

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... .................................. 39 Statement of Activities ..................................................................................................... ..................................... 40 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... .................... 44 Reconciliation of the Governmental Fu nds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 46 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 48 Reconciliation of the Govern mental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 50 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds .............................................................................. ............... 52 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 53 Statement of Cash Flows – Proprietary Funds ................................................................................ ............... 54 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................... 56 Statement of Changes in Fiduciary Net Position – Fidu ciary Funds .......................................................... 57 Notes to Basic Financial Statements ......................................................................................... .......................... 61 73 City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
ii
FINANCIAL SECTION, Continued
Required Supplemental Information:

Budget and Comparison Information – General Fund Budget Policies ......................................................... 141 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 142 Measure I .................................................................................................................. ........................................... 146 Ontario Housing Authority ................................................................................................... ............................ 147 Modified Approach for Infrastructure Capital Assets ............................................................................................... 149 Schedule of Changes in the Net Pension Liability and Related Ratios:

Miscellaneous Plan ......................................................................................................................................................... 152 Safety Police Plan .......................................................................................................... ....................................... 154 Safety Fire Plan ............................................................................................................ ......................................... 156 Schedule of Pension Plan Contributions ....................................................................................................................... 158 Schedule of Changes in the OPEB Liability and Related Ratios ........................................................................... 160 Schedule of OPEB Contributions ............................................................................................... ............................ 161 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Fund s ....................................................................... 166 Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................ ....... 170 Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Special Revenue Funds:

Special Gas Tax ............................................................................................................ ..................................... 174 Quiet Home Program ......................................................................................................... ............................. 175 Park Impact/Quimby ......................................................................................................... ............................. 176 Community Development ...................................................................................................... ........................ 177 Asset Seizure .............................................................................................................. ....................................... 178 Mobile Source Air Pollution ................................................................................................ ........................... 179 Special Assessment/Fee Districts ........................................................................................... ....................... 180 Grants .................................................................................................................... ........................................... 181 Cable Access ............................................................................................................... ...................................... 182 Storm Drain Maintenance .................................................................................................... ........................... 183 Historic Preservation ...................................................................................................... ................................. 184 NMC Public Services ........................................................................................................ ............................... 185 Broadband/Fiber ........................................................................................................... ................................. 186 Affordability in Lieu ..................................................................................................... .................................. 187 Fire Mutual Aid ........................................................................................................... .................................... 188 NMC CFD .................................................................................................................... ..................................... 189 OMC CFD .................................................................................................................... ...................................... 190 74 City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
iii
FINANCIAL SECTION, Continued
Supplementary Information (Continued):

Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Capital Project Funds:

Capital Projects ........................................................................................................... ...................................... 191 Impact Fees ................................................................................................................ ....................................... 192 Combining Statement of Net Position – Internal Service Funds ................................................................. .... 194 Combining Statement of Revenu es, Expenses and Changes in Fund Net Position – Internal Service Funds .................................................................................................... 196 Combining Statement of Cash Flows – Internal Service Funds ................................................................... .... 198 Combining Statement of Fiduciary Net Position – Custodial Funds .............................................................. 202 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ......................................... 210

STATISTICAL SECTION
Financial Trends:

Schedule 1 – Net Position by Component ....................................................................................... .................... 223 Schedule 2 – Changes in Net Position ......................................................................................... ........................ 224 Schedule 3 – Changes in Fund Balances, Governmental Funds .................................................................... .. 226 Schedule 4 – Fund Balances, Governmental Funds ....... .................................................................................... 228 Revenue Capacity:

Schedule 5 – Assessed Value and Estimated Actual Value of Taxable Property .......................................... 229 Schedule 6 – Direct and Overlapping Property Tax Rates ....................................................................... ........ 230 Schedule 7 – Principal Property Taxpayers .................................................................................... .................... 231 Schedule 8 – Property Tax Levies and Collections ............................................................................. ............... 232 Schedule 9 – Taxable Sales by Category ................... ........................................................................................... 233 Schedule 10 – Direct and Overlapping Sales Tax Rates ......................................................................... ........... 234 Schedule 11 – Sales Tax Revenue Payers by Industry ... .................................................................................... 235 Debt Capacity:

Schedule 12 – Ratio of Outstanding Debt by Type .............................................................................. .............. 236 Schedule 13 – Ratio of General Bonded Debt Outstanding .............................................................................. 237 Schedule 14 – Direct and Overlapping Governmental Activities Debt .......................................................... 2 38 Schedule 15 – Legal Debt Margin Information .................................................................................. ................. 239 Schedule 16 – Pledged Revenue Coverage ....................................................................................... .................. 240 Demographic and Economic Information:

Schedule 17 – Demographic and Economic Statistics ............................................................................ ........... 241 Schedule 18 – Principal Employers ............................................................................................ .......................... 242 Operating Information:

Schedule 19 – Full-Time City Government Employees by Function .............................................................. 2 44 Schedule 20 – Operating Indicators by Function/Program ....................................................................... ...... 245 Schedule 21 – Capital Asset Statistics by Function/Program ................................................................... ....... 246 75 iv
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76 C I T y 0 F 0 N TA R I 0
303 EAST B STREET I ONTARIO, CALIFORNIA 9 1764 (909) 395 -2000 FAX (909) 395 -2070 OntorioCA.gov PAULS. LEON
MAYOR
ALAND . WAPNER

MAYOR PRO TEM
JIM W. BOWMAN

DEBRA DORST-PORADA

RUBEN VALENCIA

COUNCIL MEMBERS
December 13, 2022

SHEILA MAUTZ

CITY CLERK
JAMES R. MILHISER

TREASURER

SCOTT OCHOA

CITY MANAGER
To the Honorable Mayor, City Council, City Manager, and Citizens of the City of Ontario:

State law requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed ce1iified public accountants . Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report (ACFR) of the City of Ontario for the fiscal year ended June 30, 2022. This report provides a broad view of the City's financial activities for the Fiscal Year 2021-22 and its financial position as of June 30, 2022. Although addressed to the elected officials and the citizens of the City, this report has several other users. Foremost among these other users are bondholders of the City, financial institutions, credit rating agencies, educational institutions, and other governmental entities. In producing an ACFR, the City of Ontario has chosen to provide financial information that is significantly greater than that which is required under state law.

Responsibility for both the accuracy of the information presented in the ACFR as well as the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that the information, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position of the City and the results of its operations; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been i!1cluded.

The management of the City has established a system of internal control that is designed to assure that the assets of the City are safeguarded against loss, theft, or misuse. The system of internal control also assures that the accounting system compiles reliable financial data for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP).

Internal accounting controls are designed to provide reasonable , but not absolute, assurance that these objectives will be met. The concept ofreasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of the costs and benefits requires estimates and judgments by management. As management, we assert that, FINANCIAL SERVICES j Armen Horkolyan, Executive Director 200 North Cherry Avenue • Ontario, CA 917 64 j (909) 395-2442 j OntarioCA .gov /Financial Services v
77 to the best of our knowledge and belief, this financial report is complete and reliable in all material respects .

The City of Ontario's financial statements have been audited by Badawi & Associates, CP As, a firm of licensed ce1iified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Ontario for the fiscal year ended June 30, 2022, are free from material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Ontario's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City of Ontario was paii of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies .

The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Ontario's separately issued Single Audit Report.

Profile of the Government
The City of Ontario was founded as a "Model Colony" and incorporated on December 10, 1891.

Ontario is located approximately 35 miles east of downtown Los Angeles and encompasses nearly 50 square miles. Ontario is one of the 150 largest cities in the United States and is home to more than 12,000 businesses, 119,000 jobs and a population of 179,516 Ontario is ideally situated as a gateway to Southern California and beyond, with direct access to the I-10, I-210, and I-15 freeways, State Routes 60 and 83, and two major railways. Ontario International Airport (ONT) was recently ranked as both the fastest growing airport in the United States and the largest outbound cargo gateway. Today, ONT offers nonstop commercial jet service to 18 major airp01is in the U.S ., Mexico and Taiwan, including the only transpacific services from a Southern California airport other than LAX.

The City of Ontario operates under the council-manager form of government. Policy-making and legislative authority are vested in a governing council consisting of the mayor and four other members. The governing council is responsible, amongst other things, for passing ordinances, adopting the budget, appointing committees, and hiring both the City's manager and attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government and for appointing the heads of the various agencies. The council is elected on a non-partisan basis. Council members serve four year staggered terms, with two council members elected every two years. The mayor is elected to serve a four-year term. The mayor and the four council members are elected at large. vi
78 The City of Ontario is a full-service city with approximately 1,219 full-time employees. Services provided include police and fire protection; development including the construction and maintenance of streets, parks, water and sewer lines, traffic signals and other infrastructure; water, sewer and integrated waste services; recreation and community services; and aiis, cultural, and social programs. In addition to general government activities, the City Council also serves as the Board of Directors for the Ontario Industrial Development Authority, the Ontario Redevelopment Financing Authority, Ontario Public Financing Authority, and the Ontario Housing Authority.

These activities have therefore been included as an integral part of the City of Ontario's financial statements . Additional information on these entities can be found in Note 1 in the notes to the financial statements.

The Ontario Municipal Code requires that the City Manager present the Annual Operating Budget to the City Council for approval. The Financial Services Agency, under the direction of the Executive Director of Finance, is responsible for compiling the estimated revenues and appropriations for the City Manager. Prior to the beginning of the new fiscal year, the City Council adopts the Annual Operating Budget at a public budget workshop.

The development of the Fiscal Year Annual Operating Budget begins in February with the dissemination of the budget preparation guidelines. The guidelines include policies and procedures to ensure that the preparation of the budget conforms to fiscal policies and guidelines established by the City Council. Before the Agency budget requests are submitted to the City Manager, the Financial Services staff reviews and analyzes all Agency requests. This review includes comparative analysis of historical and current expenditure levels. The City Manager and the Financial Services staff then hold meetings with each Agency Executive Director to discuss the budget requests and obtain additional information to assist in the assessment of the requests. A proposed budget is then submitted to City Council for consideration in June. The budget must be approved by City Council before the staii of the new fiscal year: July 1st.

The City's budget policy is that all appropriations lapse at fiscal year-end. Outstanding encumbrance balances at fiscal year-end require re-approval by City Council at the First Quaiier Budget Update. City Council may amend the budget at any time during the fiscal year. Budget reports are presented to City Council and the public on a quarterly basis. They include appropriations adjustments and revised revenue projections as needed. The City Manager may authorize budget transfers between line items, programs and agencies as long as the total budget does not exceed the amount approved by City Council. Budgetary changes between funds require City Council approval. The level of budgetary controls is set at the Agency level by fund to ensure compliance with the budget as approved by City Council. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Additional information regarding the City's general budget policies can be found in the Required Supplementary Information.
vii
79 Economic Condition and Outlook
Economic indicators suggest a slow recovery over the next several years. Although it is unlikely to realize structural balance until the crisis is resolved; the City has been able to sustain its operationally balance structure with continued expenditure restraint, ongoing fiscal monitoring, and the use of additional fund balance reserves. The City joined California Employers' Retiree Benefit Trust (CERBT) to pre-fund its Other Post Employment Benefit (OPEB) liability. Section 115 Trust was established in Fiscal Year 2019-20 with the initial deposit of $140 million and a contribution of $5,077,000 for Fiscal Year 2021-22 paid from the OPEB Internal Service Fund.

The contribution amount, at the City's discretion, may increase each year by the Annual CPI Index with a 5% cap. The balance in the OPEB trust fund as of June 30, 2022 was $155,487,072.

The California State Public Employees Retirement System (CalPERS) is considerably underfunded, primarily due to the lower than projected earning rates combined with significant investment losses incurred during the Great Recession. Over the last several years, CalPERS has made significant changes to the assumptions used in the calculations of local agencies' pension liabilities. These changes have resulted in (1) an increased overall unfunded pension liability as the discount rate has been lowered from 7.0 percent to 6.8 percent in July 2021, and (2) sharp increase in annual payments to CalPERS in earlier years followed by declining payments in later years due to the method of amortizing the Unfunded Accrued Liability (UAL) payments. In addition, as a result of offering a two-year service credit as a retirement incentive during the COVID pandemic, the City estimates the additional UAL for this incentive will be approximately $50 to $60 million.

The City issued pension obligation bonds on May 12, 2020, in the amount of $236.6 million for the CalPERS Safety Plans (Police and Fire) per City Council direction. The pay down of the City's CalPERS safety plans UAL will potentially save the city up to $110 million over the life of the bond financing. Also, to stabilize future pension cost increases for its Miscellaneous employee group, on May 19, 2020, City Council authorized staff to utilize the City's Investment Portfolio with available cash balances to pay down the current UAL amount of $102.5 million for this group.

This will result in the City saving approximately $60 million, with a combined savings of about $170 million for all three CalPERS pension plans: Fire Safety, Police Safety and Miscellaneous.

The issuance of pension obligation bonds help the City achieve General Fund goals to stabilize existing CalPERS cost, but it will come at heightened levels in the coming years.

Other major challenges are the City's revenues which will soon be outpaced in the forthcoming fiscal years by increasing pension expenses, rising medical benefits costs, and the overall cost of labor. Moreover, the City should be mindful that in providing service to Ontario International Airport Authority (OIAA) and Ontario Ranch, there is an absorption factor to consider as service demands continue to grow and evolve. Additionally, it is crucial that recurring operating expenditures are strategically contained and are not outpacing recurring revenues. In addition, funding of the Internal Service Allocations for Equipment Services, Information Technology Services, Facilities Maintenance, and Risk Liability have not increased to levels that ensure the sustainability of these services. For the City to successfully manage these significant fiscal issues, while coping with a lean organization as a result of the retirement separation incentive program for the recent budget balancing strategies, it is recommended that the City continue to practice fiscal discipline and establish proactive measures to safely navigate the current and upcoming fiscal challenges.
viii
80 Although there are a lot of unknowns about the rate of the nation's recovery, there is no doubt Ontario will recover. As the economy continues to bounce back, public health guidelines have become almost non-existent and businesses have safely reopened, travel restrictions are almost entirely diminished, and revenue sources are anticipated to increase in the coming years. With the City Council's leadership and their prudent fiscal policies, the City's long-term financial health will further solidify its standing as the economic leader in the Inland Empire, and a formidable player in California, and the nation.

It is also worth noting that the Fiscal Year 2022-23 Proposed Operating Budget continues to focus on City Council's Strategic Goals and impacts from the COVID pandemic. The operationally balanced budget addresses the shortfalls in Fiscal Year 2021-22 and Fiscal Year 2022-23 utilizing responsibly the $45.6 million one-time funding from the American Rescue Plan Act (ARPA), of which $22.8 million was allocated for FY 2020-21, $3.4 million for Fiscal Year 2021-22, $9.5 million for FY 2022-23, and the remaining $9.9 million to be used in the following fiscal year through December 2024. The ARP A money was and will continue to be used on bringing back positions that were lost during the COVID pandemic.

Long-Term Financial Plan
In addition to managing the City's money in a manner that ensures Ontario is financially stable, the long-term goals, efforts and actions reflect the City Council's continued commitment to support high quality public safety and municipal services, provides for the maintenance and expansion needs of the City's infrastructure and facilities, profiles an aggressive economic development strategy, and assures the investment and reinvestment of City resources into the community - all in the name of affording Ontario residents and businesses an exceptional quality of life.

Ontario's commitment to infrastructure improvements 1s demonstrated by the City's Capital Improvement Program that includes projects such as:
• $21,272,910 in water and storm drain projects;
• $ 9,176,050 in street improvements;
• $ 5,715,189 in public facilities projects; and
• $ 2,925,000 in other miscellaneous improvements
The City of Ontario has, through prudent long-range policy decisions and sound fiscal management, maintained its position as an economic leader in Southern California. The City will continue to monitor key economic indicators, sources of revenues, and spending levels as part of its sound conservative fiscal approach. In order to maintain this structural balance, however, the City will have to proceed with caution. Balancing fiscal discipline and long-term vision, Ontario is well-positioned to address its obligations while capitalizing on opportunities.

Through the combined leadership of City Council and the implementation of its prudent fiscal policies, the City has been able to enhance service levels to the community, invest in capital projects to enhance public facilities and infrastructure. ix
81 Relevant Financial Policies
Fund Balance Policy
The City's Fund Balance Policy, which was approved on June 22, 2011, established the procedures for reporting unrestricted fund balance in the General Fund financial statements. Certain commitments and assignments of the fund balance will help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. The policy also authorizes and directs the Financial Services Agency in preparing financial rep01is that accurately categorize fund balance as per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

Included in the Fund Balance Policy is the 18 Percent Stabilization Plan - the goal of City Council to achieve a minimum of 18 percent of the annual general fund appropriations, as Assigned Fund Balance in the general fund. Based on the current year general fund appropriations, the amount assigned to the 18 percent Stabilization Plan will either increase or decrease accordingly. This assigned balance is intended to be used for specific and defined emergency events, such as an eaiihquake, to address immediate needs in resources without impacting City services and to minimize the potential for disruption of municipal services to its citizens. Included as part of the General Fund balancing strategies for Fiscal Year 2020-21 was the reduction of the General Fund Reserve from 18 percent to 15 percent due to the COVID pandemic. However, for Fiscal Year 2021-2022, the General Fund balancing strategies were to achieve a reserve level of 16% with the goal to reach 20%. As of June 30, 2022, the City's General Fund had an assigned fund balance for the stability arrangement of $30.3 million, which achieves the goal of 16 percent of the General Fund Adopted Budget for Fiscal Year 2021-2022.

This 16 percent of the General Fund is separate from the General Fund Contingency, also established in the Fund Balance Policy. The City's General Fund Contingency consists of amounts formally set aside and/or arrangements to maintain amounts for working capital needs, contingencies and contractual obligations. Assigned amounts under General Fund Contingency include: Economic Uncertainties, Compensated Absences, and Continuing Appropriations.

Cash and Investments
The City of Ontario follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various fund based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. As of June 30, 2022, the City of Ontario's cash and investments were $942,613,468.
x
82 Major Initiatives
Complete Community
Ontario is committed in building a "Complete Community" by investing in the growth and evolution of the area's economy while providing a balance of jobs, housing, and educational and recreational opportunities for our residents in a safe, well-maintained community . Ontario is evolving into an urban landscape of activity centers - complete with a full range of educational opportunities and health care providers, high paying jobs, a diverse mix of housing and rich in cultural and recreational amenities.

Ontario offers businesses, residents, and visitors the oppo1iunity to be part of a culturally diverse community with a rich history, unlimited economic opportunities, and convenient access to the region's abundant recreational, cultural and entertainment amenities. Within a short drive of Ontario are some of the world's premier outdoor destinations, colleges and universities, medical centers, and research facilities.

Livability is a big paii of the Ontario story. The City is home to premium entertainment venues such as the Ontario Convention Center, Toyota Arena, and Ontario Mills Mall. Five highly rated school districts operate within the City's boundaries. Home prices are more affordable, and as the City grows and evolves, developments are being designed to advance the economic dynamics of the City. An 8,200-acre former agricultural preserve, now known as the Ontario Ranch, will add approximately 47,000 homes and 165,000 new residents to Ontario.

The Ontario Plan
The Ontario Plan is a dynamic Framework for sustained, comprehensive leadership in building our community. It integrates components of city governance that are typically disconnected. The Plan states community direction at a point in time (2020) and integrates it into a single guidance system that will shape the Ontario community 20 years or more into the future (2050). The Ontario Plan provides for lasting policies to accommodate change.

Fiber Optic Master Plan
Currently, Ontario is developing a Fiber Optic Master Plan to guide the design, construction, and operation of a fiber optic backbone infrastructure. The City Fiber Optic network - OntarioNet - will result in cost effective, secure, fast, and reliable communications capabilities. OntarioNet high speed internet services continue to be extended and are available in the Ontario Ranch community, at the Ontai·io International Airport (ONT), the Toyota Arena, Ontario Convention Center, and many local businesses , as well as at several City facilities and over sixty traffic cabinets.
xi
83 Service to the Community
The "Approach to Public Service" is the underlaying principal for each Agency citywide. This "Approach to Public Service" emphasizes that City employees "choose public service to make a positive impact on the community". The three principles behind this approach are the following:
• Be Committed to the Community- Whatever job you do, do it well! • Achieve Excellence Through Teamwork - Take ownership of your job and support other team members.
• Do the Right Thing the Right Way - Focus on what is impmiant and never compromise integrity.

Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Financial Services Agency who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor, City Council, and the City Manager for their unfailing suppmi for maintaining the highest standards of professionalism in the management of the City of Ontario's finances.
(la
Armen Harkalyan
Executive Director of / nee
xii
84 City of Ontario, California
Form of Government
The City of Ontario operates under the council-
manager form of local government. The five
members of the City Council are elected by the
citizens as the legislative, policy-making branch of
City government; and the City Manager is
appointed by the City Council to implement policy
and manage day-to-day operations. All Council
Members serve at large and serve four-year terms.

Every even-numbered year, either the Mayor and
two Council Members or two Council Members,
the City Clerk and City Treasurer stand for
election. The Council Members also sit as the
Commissioners of the Ontario Housing Authority.

Elected Officials
PAUL S. LE
ON………………….……Mayor
ALAN D. WAPNER……………...……Mayor pro Tem
DEBRA DORST-PORADA…...……..Council Member
JIM W. BOWMAN………………...…..Council Member
RUBEN VALENCIA…………………..Council Member
JAMES R. MILHISER……...………...City Treasurer
SHEILA MAUTZ…….………………...City Clerk
Executive Team

SCOTT OCHOA
City Manger
Executive Director of the Housing Authority

DARLENE SANCHEZ
Assistant City Manger

RUBEN DURAN
City Attorney

MICHAEL LORENZ
Police Chief

RAY GAYK
Fire Chief

SCOTT BURTON
Utilities General Manager

TITO HAES
Executive Director of Public Works

SCOTT MURPHY
Executive Director Community Development

HELEN MCALARY
Executive Director Community Life & Culture

ARMEN HARKALYAN
Execute Director of Finance

ANGELA LOPEZ
Executive Director Human Resouces & Risk
Management

COLIN FERNANDES
Executive Director Information Technology
xiii
85 City Manager
Mayor & City Council City Clerk City Treasurer
City Attorney Boards & Commissions
Management Services
Human Resources Financial Services
Information Technology
Fire Police
Public Works Ontario Municipal Utilities
Company
Community Development

CITY OF ONTARIO

CITYWIDE ORGANIZATIONAL
CHART FISCAL YEAR 2021-22
People of Ontario
Community Life & Culture
xiv
86 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the govern mental activities, the business-type activities, each major fund, and the aggregate remaining fund informatio n of the City of Ontario (City), as of and for the year ended June 30, 2022, and the related notes to th e financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, based on our report and the report of the other auditors, the accompanying financial statements present fairly, in all material respects, th e respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective chan ges in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the financial statements of the Water Facilities Authority and Chino Basin Desalter Authority, which represent 2.0 percent and 12.3 percent, respectively, of the assets, and (0.1) percent and 0.5 percent, respectively, of the revenues of the Wate r Enterprise Fund. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Water Faciliti es Authority and Chino Basin Desalter Authority, are based solely on the reports of the other auditors.

Basis for Opinions
We conducted our audit in accordance with auditing st andards 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 Un ited States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethica l requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 87 To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 2 ends

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substa ntial doubt about the City’s ability to continue as a going concern for twelve months beyond the financ ial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 in volve 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 aggr egate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstat ement 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 rega rding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
88 To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 3 ends

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

Required Supplementary Information
Accounting principles generally accepted in the Unit ed States of America require that the management discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, the modified approach for the City’s infrastructure capital assets, and the required pension and OPEB schedules on pages 5-33 and 141-161 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s response s to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opin ions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are pres ented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financ ial statements and budgetary comparison schedules are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconc iling such information directly to the underlying accounting and other records used to prepare the ba sic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedule s are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
89 To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 4 ends

4 Other Information
Management is responsible for the other information. The other information comprises the introductory and statistical section but does not include the financ ial statements and our audi tor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and co nsider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work perfor med, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 13, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cont racts, and grant agreements and other matters. The p u r p o s e o f t h a t r e p o r t i s s o l e l y t o d e s c r i b e t h e s cope 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 o f i n t e r n a l c o n t r o l o v e r f i n a n c i a l r e p o r t i n g o r o n c o m p l i a n c e . T h a t r e p o r t i s a n i n t e g r a l p a r t o f a n a u d i t performed in accordance with Government Auditing St andards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
December 13, 2022
90 MANAGEMENT'S DISCUSSION AND ANALYSIS
5 Management’s Discussion and Analysis
The following Management Discussion and Analysis (MD&A) of the City of Ontario’s (City) financial performance provides an introduction and overview to the financial activities of the City for the fiscal year ended June 30, 2022. This narrative discussion and analysis focus on the current year’s activities, resulting changes and currently known facts; therefore, the information presented here should be considered in conjunction with additional information furnished in the Letter of Transmittal and the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
Government-Wide
x Total assets and deferred outflows of the City exceeded liabilities and deferred inflows by $1.99 billion (net position). Of this amount, $503.91 million (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors. x For the fiscal year ended June 30, 2022, total net position increased by $163.88 million before a ($43.76) million restatement. Total revenues from all sources were $643.71 million and total expenses for all functions/programs were $436.08 million. x Of total revenues, program revenues were $386.26 million and general revenues were $257.46 million. Program revenues are broken into three categories: Charges for Services, $288.97 million; Operating Contributions and Grants, $52.58 million; and Capital Contributions and Grants, $44.71 million.

Fund Based
x For the fiscal year ended June 30, 2022, the assigned fund balance of the General Fund was $55.64 million. The assigned portion of $30.30 million represents the City Council’s goal to achieve a minimum of 16 percent of the annual general fund appropriations (stabilization policy).
91 CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT 6 OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include all the activities of the City of Ontario and its component units as prescribed by GASB Statement No. 34. This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The Government-Wide Financial Statements present both long-term and short-term information about the City’s overall financial picture. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities.

The Statement of Net Position is measured as the difference between (a) assets and deferred outflow of resources and (b) liabilities and deferred inflow of resources. This is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position may serve as an indicator of whether or not its financial health is improving or deteriorating.

The Statement of Activities presents information on how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (i.e., uncollected taxes or earned but unused vacation leaves).

In both the Statement of Net Position and Statement of Activities, we divide the City into two kinds of activities:

Governmental activities – Most of the City’s basic services are reported here, including General Government (City Council, Office of the City Manager, Records Management, Financial Services and Human Resources), Public Safety, Community Development, and Public Works. Revenues from property taxes, transient occupancy tax (TOT), sales tax, parking tax, business license tax, etc., finance most of these activities.

Business-type activities – The City charges a fee to customers to recover all or most of the cost of certain services it provides. The City’s water, sewer, and integrated waste are reported in this category.
92 MANAGEMENT'S DISCUSSION AND ANALYSIS
7 The Government-Wide Financial Statements include not only the City, known as the primary government, but also the legally separate component units. The Ontario Housing Authority, the Industrial Development Authority, the Ontario Redevelopment Financing Authority, and the Ontario Public Financing Authority are known as Blended Component Units.

Fund Financial Statements
The Fund Financial Statements are designed to report information about groupings ( funds) of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The City uses all three types, each using different accounting methods.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements , governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements . By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains twenty-four individual governmental funds. These funds report financial transactions using the modified accrual accounting method. Information for five out of the nineteen funds are presented separately in the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances. The following five funds are major funds: General Fund, Measure I Fund, Ontario Housing Authority Fund, Capital Projects Fund, and Impact Fees Fund. Data for other governmental funds (non- major) are combined into a single presentation as part of the additional required supplementary information. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements that follow the notes to the financial statements.

The City adopts an annual appropriated budget for the General Fund, the Special Revenue Funds, and the Capital Project Funds. A budgetary comparison statement has been provided for each of the funds to demonstrate compliance with this budget. 93 CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT 8 Proprietary Funds – Proprietary funds are primarily used to account for when the City charges for the services it provides, whether to outside customers or to other units of the City. These funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities, using an accrual basis of accounting. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities that is reported in the government-wide financial statements but provide more detail information, such as the statement of cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities, such as Equipment Services, Self-Insur ance, Information Technology, Facility Maintenance, Pension Benefit Funds and Other Post Employment Benefit funds. Since these activities predominantly benefit governmental rather than business-type functions, they are included within the governmental activities in the government-wide financial statements.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as a trustee. The Statement of Fiduciary Net Position separately reports all of the City’s fiduciary activities. The City excludes these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. However, the City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to the Financial Statements
Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements, and it is an integral part of the financial statements.

Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain combining statements referred to earlier in connection with non-major governmental and proprietary funds. These combining and individual fund statements and schedules can be found immediately following the Notes to the Financial Statements. 94 MANAGEMENT'S DISCUSSION AND ANALYSIS
9 GOVERNMENT -W IDE FINANCIAL ANALYSIS
This analysis will focus on the City’s net position (Table 1) and changes in net position (Table 2) of the governmental and business-type activities for the fiscal year ended June 30, 2022.

Management has included comparative data from fiscal year ended June 30, 2021, in its analysis.

Net Position (Table 1)
(in millions)
The City’s Government-wide total net position was $1.99 billion, with assets of $2.88 billion, deferred outflows of $67.17 million, liabilities of $693.42 million and deferred inflows of $266.09 million. The net investment in capital assets of $1.25 billion represents 62.8 percent of the City’s total net position. This is an increase of $9.64 million from the previous year. The net investment in capital assets (e.g., infrastructure, land, structures and improvements, furniture, and equipment) component of net position consists of capital assets, net of accumulated depreciation, reduced by any related outstanding debt used to acquire, construct, or improve those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate these liabilities.
95 CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT 10 Another portion of the City’s net position of $235.37 million (11.9 percent of the total net position) represents resources that are subject to external restrictions in how they may be used. The remaining balance of $503.91 million or 25.33 percent of the total net position (unrestricted position) may be used to meet the government’s ongoing obligations to citizens and creditors within the program areas.

Overall Financial Activities
Overall, the City’s financial position increased from the prior year by $163.88 million (see Table 2 on the following page).

The overall cost of all governmental and business-type activities this year was $436.09 million and was an overall net decrease of $53.11 million or 10.9 percent compared to the prior year.

Total revenue of all governmental and business-type activities was $643.72 million for this fiscal year; an increase of $97.89 million or 18 percent. Program revenues were $386.26 million and general revenues were $257.46 million. The largest single revenue category was Charges for Services, at $288.97 million, which is program revenue. This revenue goes directly against the expenses in recovering the costs of providing those services. Charges for Services revenue increased by $59.77 million or more than 26.1 percent. Sales Taxes, which are considered general revenues, were the second largest revenue at $129.33 million. The third largest revenue source was Property Taxes ( general revenue) at $79.33 million. Operating Contributions and Grants, another program revenue source, at $52.58 million was the fourth largest revenue category.
96 MANAGEMENT'S DISCUSSION AND ANALYSIS
11 Changes in Net Position (Table 2)
(in millions)
97 CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT 12 Governmental Activities
Under the governmental activities, the City’s net position at the end of the year increased to $1.51 billion after a 153.65 million net difference between revenue and expense, transfers out of $(0.46) million and restatement of $12.37 million. The cost of all governmental activities this year was $340.57 million or 78.1 percent of the government-wide total expenses and was a decrease of $11.91 million or three percent from last fiscal year.

Graph 1 below presents the costs of each of the City’s five governmental functions – general government, public safety, community development, public works, and interest on long-term debt, as well the governmental program’s revenues. The net cost (total cost less program revenues) is the amount that was paid from general revenues.

Expenses and Program Revenues – Governmental Activities (Graph 1) (In millions)

20.00 40.00

60.00 80.00
100.00
120.00
140.00
160.00
180.00
General Government Public Safety Community Development Public Works Program Revenue Expense
98 MANAGEMENT'S DISCUSSION AND ANALYSIS
13 Expenses in General Government were $53.01 million or 15.6 percent of total Governmental Activities expenses. Of this amount, $21.57 million was funded by program revenues, while the remaining $31.44 million was funded by general revenues. General Government expenditures increased by $32.76 million, or 169 percent compared to the previous year because of increased funding in future economic activity
Public Safety expenses were $171.92 million or 50.5 percent of the total Governmental Activities expenses. Of this amount, $49.10 million was funded by program revenues, while the remaining $122.82 million was funded by general revenues. Expenses for Public Safety decreased by $28.53 million or 14.3 percent due to the one-time retirement separation incentive program that was paid out in FY 2021 and these positions remained vacant for the majority of the FY 2022.

Expenses in Community Development were $97.86 million or 28.73 percent of the total Governmental Activities expenditures. These expenses decreased by $14.07 million or 12.6 percent due to one-time retirement separation incentive that was paid out in FY2021 as well as projects that were completed during the year. Program revenues relating to the funding of community development activities amounted to $164.09 million, which were primarily from charges for services of $109.38 million, operating grants and contributions of 11.79 million, capital contributions and grants of $42.92 million.

Public Works expenses were $5.18 million or 1.6 percent of the total Governmental Activities expenditures. Of this amount, $0.76 million was funded by program revenues, with the remaining $4.42 million funded by general revenues. Public Works expenses decreased by $2.27 million or

30.5 percent from the prior year due to majority of the projects were completed during the year.

Interest on long-term debt had expenses of $12.60 million or three percent of total Governmental Activities and is funded entirely by general revenues.

Graph 2 below presents governmental activities revenue by source. Total revenue for governmental activities was $494.21 million (before transfers); an increase of $97.68 million or

24.63 percent compared to the previous fiscal year. The four largest revenue sources under governmental activities were the categories of Charges for Services, Sales Taxes, Property Taxes, and Operating Contributions and Grants.

Charges for Services (program revenue) was $141.02 million or 28.6 percent of total governmental activities revenue. Compared to the prior year, charges for services revenue increased by $52.93 million or 60 percent. Sales Taxes (general revenue) were $129.33 million or 26.2 percent of total governmental activities revenue. It had an increase of $23.91 million or

22.68 percent compared to the previous fiscal year – primarily as the COVID restrictions were lift off as well as increased economic activity and new business added in City of Ontario. Property Taxes (general revenue) was $79.33 million or 16.1 percent of total governmental activities revenue. Growth in assessed valuations and new development are primarily the reason for this 99 CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT 14 increase in revenue. Operating Contributions and Grants (program revenue) was $50.33 million or 10.2 percent of the total governmental activities’ revenue. The overall program revenue experienced an increase of $58.10 million or 32.75 percent over the prior year – mainly due to the COVID restriction being lift over, increase in business activities across City of Ontario, and the additional funding from the American Rescue Plan Act (ARPA).

Revenues by Source – Governmental Activities (Graph 2)
Property Tax
16%
Transient Occupancy
Tax
3%
Sales Tax
26%
Franchise Tax
1%
Business License
2%
Other Taxes
1%
Other
3%
Charges for Services
29%
Operating
Contributions & Grants
10%
Capital Contributions
& Grants
9%
100

MANAGEMENT'S DISCUSSION AND ANALYSIS
15 Business-type Activities
Net position for business-type activities was $477.65 mill ion as of June 30, 2022, with assets of $608.89 million, deferred outflows of resources of $8.23 million, liabilities of $85.57. million and deferred inflows of resources of $53.90 million. Unrestricted net position of $333.80 million represented 69.88 percent of total business-type activities net position; this amount may be used to meet the government’s on-going obligations. Net investment in capital assets of $143.49 million represented 30.04 percent of the total net position from business-type activities. Compared to the prior year, the City’s net position from business-type activities from the prior year decreased slightly by $1.68 million or less than one percent.

Total revenue (excluding transfers) for the City’s business-type activities was $149.51 million, which represented a small gain of $0.21 million or less than one percent from the prior year.

Program revenues amounted to $150.74 million, and it increased by $6.94 million or 4.9 percent.

General revenue for business-type activities was $(1.23) million. Business-type activities incurred $95.52 million of expenditures for the year; a decrease of $41.2 million due to large amount of water rights acquired in the previous year
101
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
16 Graph 3 presents revenues by source for business-type activities. Total revenue for business- type activities was $149.51 million (before transfers); this was a small increase of $0.21 million or less than one percent compared to the previous year. Charges for Services (program revenue) amounted to $147.95 million or 98.95 percent of total business-type activities revenues. The remaining revenues are Operating Contributions and Grants amount to $2.25 million and capital contributions and grants amount to $0.54 million and General Revenues which amount to ($1.23) million. Revenue from Water Services is the largest revenue source at $73.24 million or 49.5 percent of the total revenues from business-type activities. It had a minor increase of $4.06 million or 5.0 percent compared to the previous fiscal year due to increase in water rate in this fiscal year.

The second largest revenue source was revenue from Integrated Waste services at $46.40 million or 30.78 percent of total business-type activities revenues. Integrated Waste services revenue had an increase of $4.49 million or 10.7% due to increase in fees for trash collection and development activities.

Revenues by Source – Business-Type Activities (Graph 3) Water
49%
Sewer
19%
Integrated Waste
31%
Operating Grants and
Contribution
1%
Capital Grants and
Contributions
0%
102

MANAGEMENT'S DISCUSSION AND ANALYSIS
17 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

During the current fiscal year, the City had five major governmental funds: General Fund, Measure I Fund, Ontario Housing Authority, Capital Projects Fund, and Impact Fees Fund. The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund is discussed in depth later in the MD&A. The special revenue fund for the Measure I Fund accounts for revenues from a one-half percent sales tax on all retail transactions within the County. The proceeds are to be used for transportation improvements, railroad grade separation projects, and traffic management programs. The special revenue fund for the Ontario Housing Authority Fund accounts for low and moderate housing funds to implement various programs and projects to assist in affordable housing. The Capital Projects Fund accounts for financial transactions of general capital improvements. The capital projects fund for the Impact Fees Fund accounts for developer-paid impact fees for infrastructure construction. Each major fund is discussed in the Notes to the Financial Statements.

As of June 30, 2022, governmental funds reported combined ending fund balances of $638.30 million. Approximately 8.71 percent or $55.64 million of this total amount constitutes assigned/unassigned fund balance. The remaining fund balance of $582.66 million is comprised of the following: Nonspendable $57.98 million, Restricted $233.76 million and Committed $290.92 million. Included in the Nonspendable fund balance are as follows: Advances to Successor Agency $3.50 million; Inventories 0.28 million; Prepaid costs 0.16 million; and Advances to other fund 54.04 million. For the Restricted fund balance (external enforceable limitations on usage), they are comprised as follows: Endowment/trust $0.36 million, Community Development projects $95.03 million; Public Safety $2.82 million; Park Development projects $41.68 million; Transportation improvement projects $18.55 million; Affordable Housing $48.22 million; AQMD activities $1.26 million; Fiber/Broadband $17.32 million and Public Services $8.50 million. Included in the Committed fund balance (self-imposed limitations on usage) is $290.92 million for City Facilities infrastructure improvements and capital replacement. 103
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
18 Governmental Revenues
Revenues of governmental funds for Fiscal Year 2021-22 were $461.59 million, with an increase of $100.59 million or 27.9 percent compared to the previous fiscal year. This increase in governmental revenue is primarily attributable to the increase in Sale Taxes, Transient Occupancy Tax and Charges for Services revenues for the FY 2021-22.

Table 3 below presents a summary of governmental fund revenues for the fiscal year ended June 30, 2022, with comparative amounts from the prior year.

Comparison of Governmental Fund Revenues (Table 3)
Fiscal Years 2021-22 and 2020-21
104

MANAGEMENT'S DISCUSSION AND ANALYSIS
19 Governmental Expenditures
Total expenditures for governmental funds were $413.15 million, an increase of $42.48 million.

This was primarily due to increased reimbursements to local businesses that have sales tax abatement agreements with the City due to increased sales, increased in contractual service expenses, internal service allocation costs, rising material costs due to inflation, and increased in number of WIP project during the FY 2022. The increase in principal retirement was due to the refinancing of the prior CIP bond.

Table 4 presents a summary of governmental fund expenditures for the Fiscal Year ended June 30, 2022, with comparative amounts from the prior year.

Comparison of Major Governmental Expenditures (Table 4) Fiscal Years 2021-22 and Fiscal Years 2020-21
105
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
20 Proprietary Funds
The City’s Proprietary funds consist of four Enterprise Funds and four Internal Service Funds.

The Internal Service Funds are presented as Governmental Activities in the Proprietary Funds financial statements. Individual fund data is provided in the form of combining statements.

Operating revenues for Enterprise Funds include sales and service charges, interdepartmental charges and miscellaneous. Total operating revenues for all Enterprise Funds for Fiscal Year 2021-22 were $147.66 million, while non-operating revenues were $33.24 million and capital grants and contributions were 0.54 million. Operating expenses for Fiscal Year 2021-2022 were $112.75 million. During the fiscal year, the net amount transferred out to the City’s Governmental Funds was $0.46 million to support for the various governmental activities.

The City also has four Internal Service funds to allocate costs of the City’s information systems, equipment services, risk management, facilities maintenance, and other post-employment benefits operations to the various departments. The interdepartmental charges for service (revenues) in Fiscal Year 2021-22 were $58.33 million.

Fiduciary Funds
As mentioned earlier, the City uses Fiduciary Funds to account for resources held for the benefit of parties outside the City, in which the City is acting as trustee. The Statement of Fiduciary Net Position reports thirty-five activities for which the City has a fiduciary responsibility. These include:

West End Communications Authority, a seven-member JPA that operates and maintains a consolidated 800MHZ communication system designed to serve public safety agencies; the Sanitary Collection Treatment Fund which collects sewer capital assessment fees on behalf of the Inland Empire Utilities Agency; the West End Fire and Emergency Response Commission, a JPA of five local fire departments to establish a hazardous materials response team, an urban search and rescue team and the servicing of joint authority breathing apparatus equipment used for emergency purposes; and the Private Purpose Trust Fund for the Successor Agency of the Former Redevelopment Agency, which was formed upon dissolution of the Ontario Redevelopment Agency. The successor agency is subject to the control of newly established County Oversight Board and can only pay enforceable obligations in existence at the date of dissolution. Furthermore, it will hold the remaining assets of the former Redevelopment Agency until they are distributed to other units of state and local government. The remaining are assessment/special assessment bond redemption funds and community facility district debt service funds used to collect assessments and administer the debt service of the districts. 106

MANAGEMENT'S DISCUSSION AND ANALYSIS
21 GENERAL FUND –F UND BALANCE ANALYSIS
The General Fund is the primary operating fund of the City. The fund balance of $113.98 million as of June 30, 2022, had a decrease of $12.71 million compared to the previous year. The decrease in fund balance was due to an increase in expenditures as a result of the one-time ARPA premium paid for FY2022, an increase in reimbursements to local businesses that have sales tax abatement agreements with the City due to increased sales and transfers out. As a measure of the General Fund’s liquidity, it may be useful to compare both Assigned and Unassigned fund balance and total fund balance to total fund operating expenditures. Assigned and Unassigned fund balance of $55.64 million represents 48.8 percent of total General Fund’s fund balance, while the total Nonspendable, Restricted, and Committed fund balance amounts to $58.34 million and comprises 51.11 percent of the total fund balance.

Total fund balance of the General Fund consists of three components: 1) Nonspendable fund balance of $57.98 million – represents $54.04 million in advances to other funds and $0.15 million in prepaid, $0.28 million in inventory, and $3.5 million in advances to Successor Agency; 2) Restricted fund balance of $0.36 million – consists of endowment and trust funds; 3) Assigned fund balance of $55.64 million – consists of the stability arrangement of $30.31 million, compensated absences of $17.23 million, and continuing appropriations of $8.1 million.

For additional details of the City’s General Fund Balance, please refer to Note 13 in the Notes to the Basic Financial Statements.
107
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
22 GENERAL FUND –R EVENUE AND EXPENDITURE ANALYSIS
Revenues
For Fiscal Year 2021-22, General Fund revenues were $324.61 million, an increase of $50.07 million or 18.24 percent from the prior fiscal ye ar. Sales Tax revenues were $129.33 million, an increase of $23.91 million from the prior fiscal year mainly due to the business recovery after COVID-19 and rapid increase in commodity prices because of inflation. Transient Occupancy Tax was $16.40 million, an increase of $5.79 million or 54.52 percent because of reopening of many hotels after the COVID-19 restriction was removed. Charges for Services revenue was $47.44 million, an increase of $15.72 million or 49.56 percent. This was due to the classification change of the revenue allocation from the City’s special districts. Property Tax revenues were $79.33 million, an increase of $6.85 million or 9.45 pe rcent from the prior year because of increased property assessed valuations.

General Fund Revenues (Table 5)
Fiscal Years 2021-22 and 2020-21
Following is an in-depth analysis of each of the revenue sources:
x Property Tax revenues increased $6.85 million or 9.5 percent from prior year, comprising 24.4 percent of total General Fund revenue. This gain was the result of increased property assessed valuations.
x Sales Tax revenues experienced an increase of $23.9 million or 22.7 percent from the prior year. Of the total General Fund revenue, 39.8 percent comes from sales taxes. This increase 108

MANAGEMENT'S DISCUSSION AND ANALYSIS
23 was due to the reopening of business after COVID19, new business opening in city of Ontario and the increase in commodity prices because of inflation. x Transient Occupancy Tax (TOT) increased by $5.79 million or 54.5 percent from prior year because of hotel reopening for business and more people are traveling after COVID 19. it comprises 5.1 percent of the City’s total General Fund revenue base. x Other tax revenues include Franchise Fee, Business License Tax, Property Transfer Tax and Parking Tax, comprising 5.6 percent of the City’s total General Fund revenue. This revenue category reflected an increase of $3.1 million or 20.6 percent from prior year. This increase was primarily attributed to increase in parking tax due to increase in travel as COVID 19 restrictions were removed and property transfer tax due to increase in property sales. x License and Permit revenues experienced an increase of $2.35 million or 27.9 percent from the prior year due to growth in development related activity. x Intergovernmental revenues slightly decreased by $0.18 million, or 1.2 percent compared to the previous year, and it accounts for 4.7% of total General Fund revenue. x Charges for Services revenues were $47.44 million; an increase of $15.72 million or 49.6 percent from the prior year. This is mainly due to the new addition of revenue source for special districts to service charges, increase in building plan check fees, as well as increase in charges to the Ontario International Airport for city services. Of the total General Fund revenue, 14.62 percent comes from charges for services. x Use of Money and Property category experienced a decrease of $3.68 million compared to prior year. This is mainly due to the rise in federal interest rate as some of the treasury securities were purchased at low interest rate which result in the decline of fair market value of those securities.
x Fines and Forfeitures were $1.06 million; an increase of $0.40 million or 61.6 percent from the prior year. This is mainly due to the increase in vehicle code fines for the FY2022. It accounts for less than one percent of the overall General Fund revenue. x Miscellaneous revenues of $9.47 million, representing 2.9 percent of the total General Fund revenue, decreased by $4.18 million compared to the prior year primarily due to the reclassification in fire mutual aid reimbursements to a new special revenue account, and as well as the decrease in cost allocation revenue for the FY 2022. 109
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
24 Expenditures
For Fiscal Year 2021-22, total General Fund expenditures were $283.27 million, and increased $29.55 million or 11.65 percent compared to the previous year.

General Fund Expenditures (Table 6)
Fiscal Years 2021-22 and 2020-21
x General Government expenditures were $33.88 million, an increase of $4.03 million or

13.51 percent from the prior fiscal year. This was primarily due to increased reimbursements to local businesses that have sales tax abatement agreements with the city due to increased sales and contractual service expenses.
x Public Safety expenditures were $194.52 million, an increase of $25.06 million or 14.8 percent compared to the previous year, mainly from increases in internal service allocation costs and Contractual services.
x Community Development expenditures were $39.30 million, an increase of $2.31 million or

6.2 percent from the prior fiscal year mainly from contractual services increases. x Public Works expenditures were $13.90 million, an increase of $0.36 million or 2.7 percent compared to the previous fiscal year. This increase is the result of rising material costs due to inflation
x Debt Service expenditures were $1.68, a decrease of $2.2 million or 56.8 percent. This is the result of decrease in debt service expenses from the refinancing of a prior bond. 110

MANAGEMENT'S DISCUSSION AND ANALYSIS
25 MEASURE IF UND –F UND BALANCE ANALYSIS
The Measure I Fund accounts for revenues from a one-half percent sales tax on all retail transactions within the County. The proceeds are to be used for transportation improvements, railroad grade separation projects, and traffic management programs. It is one of the five major funds included in the City’s Annual Comprehensive Financial Report for June 30, 2022. The fund balance of $18.55 million as of June 30, 2022, had an increase of $1.5 million compared to the prior year. Total Assets were $18.76 million, an increase of 0.86 million from the prior fiscal year.

MEASURE IF UND –R EVENUE AND EXPENDITURE ANALYSIS
Revenues
For Fiscal Year 2021-22, total Measure I Fund revenues were $4.63 million or $0.12 million less compared to the prior year.

Expenditures
For Fiscal Year 2021-22, total Measure I Fund expenditures were $3.12 million, a decrease of $1.42 million as majority of the project expense were incurred in the prior year and were completed in the current year.
111
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
26 ONTARIO HOUSING AUTHORITY –F UND BALANCE ANALYSIS
The Ontario Housing Authority Fund accounts for financial transactions for the Ontario Housing Authority. It is one of the five major funds included in the City’s Annual Comprehensive Financial Report for June 30, 2022. The fund balance of $20.44 million as of June 30, 2022, which is a slight decrease of only $0.17 million compared to the prior year. Total Assets were $55.72 million; a decrease of $1.10 million from the prior year. This is primarily due to the decrease in Cash and Investment. Total Liabilities were $11.98 million and a very minimal increase of about $100,000 compared to the previous fiscal year.

ONTARIO HOUSING AUTHORITY –R EVENUE AND EXPENDITURE ANALYSIS Revenues
For Fiscal Year 2021-22, total Ontario Housing Authority Fund revenues were $2.22 million; an increase of $0.95 million compared to the prior year. This increase is mainly due to loan repayment under Ontario Emporia Housing loan and Virginia Holt housing loan during the year.

Expenditures
For Fiscal Year 2021-22, total Ontario Housing Authority Fund expenditures were $2.82 million.

There is an increase of $0.52 million compared to prior year due to the increase in relocation payments.
112

MANAGEMENT'S DISCUSSION AND ANALYSIS
27 CAPITAL PROJECTS FUND –F UND BALANCE ANALYSIS
The Capital Projects Fund accounts for financial transactions of general capital improvements. It is one of the five major funds included in the City’s Annual Comprehensive Financial Report for June 30, 2022. The fund balance of $123.09 million as of June 30, 2022, reflected an increase of $94.34 million compared to the prior year. The increase was due to the issuance of 2022 lease revenue bond in the amount of $90.83 million fo r the Civic Center improvements. Total Assets were $127.25 million; an increase of $91.0 million from the previous year. This is mainly attributable to increase in cash and investments because of the issuance of 2022 lease revenue bond for the Civic Center improvements. The total liabilities were $4.16 million, which is a decrease of $1.45 million.

CAPITAL PROJECTS FUND –R EVENUE AND EXPENDITURE ANALYSIS Revenues
For Fiscal Year 2021-2022, total Capital Projects Fund revenues were $1.84 million; an increase of $0.86 million compared to the prior year. The increase was due to the recognition of the revenue related to Holt underground project as it was previously classified as unavailable revenue in FY 2021
Expenditures
For Fiscal Year 2021-2022, total Capital Projects Fund expenditures were $50.48 million. This was an increase of $35.18 million over the previous fiscal year due to the refinancing of the 2013 lease revenue bond with the 2021 lease revenue refunding bonds in the amount of $35 million 113
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
28 IMPACT FEES FUND –F UND BALANCE ANALYSIS
The Impact Fees Fund accounts for revenues from developer-paid impact fees for infrastructure or construction. It is one of the five major funds included in the City’s Annual Comprehensive Financial Report for June 30, 2022. The fund balance of $167.83 million as of June 30, 2022, reflected an increase of $33.67 million. Total Assets were $179.36 million; an increase of $29.02 million from the previous year which is mainly attributable to the increase in Cash and Investments of $28.5 million which is increased impact fee received during the year. As these project progress, development impact fees are incurred and paid to the city. Total Liabilities of $11.53 million decreased by $4.652 million due to the decrease in Accounts Payable.

IMPACT FEES FUND –R EVENUE AND EXPENDITURE ANALYSIS
Revenues
For Fiscal Year 2021-22, total Impact Fees Fund revenues were $52.41 million; an increase of $27.14 million which is due to increased development activity after an extended hiatus during COVID19.

Expenditures
For Fiscal Year 2021-2022, total Impact Fees Fund expenditures were $28.72 million. This was a decrease of $10.27 million as a result of major projects being completed in FY 2021. 114

MANAGEMENT'S DISCUSSION AND ANALYSIS
29 GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year, the City Council revised the city budget several times. Budget revisions fall into three categories. The first ca tegory includes carry-forward encumbrances and capital projects that are approved shortly after the beginning of the year. The second category includes changes that the Council makes during the quarterly budget process. Finally, the Council approves supplemental appropriations through-out the year based on individual items that are brought forward by various departments. The General Fund budgetary comparison statement is located in the Basic Financial Statements.

Resources (Inflows)
The budgeted amount for revenues (resources available for appropriation) including transfers had an increase of $22.71 million between the original budget of $276.16 million and the final amended budget of $298.87 million. The increase was mainly due to budget adjustments for Transfers-In (decrease of 4 million), as well as increase in tax amount of $25.92 million primarily from gains in sales tax, property tax, and transient occupancy tax. Actual revenues were $25.74 million more than the final amended budget.

Charges to Appropriations (Outflows)
The difference between the original budget and the final budget was an increase of $80.35 million in appropriations. This increase was mainly due to increases for transfers to other funds which includes Economic Development activities ($15 million), Future CalPERS pension costs ($15 million), internal services funds ($12.6 million), carryforward encumbrance from the prior fiscal year ($2.8 million), and one time ARPA premium pay ($7.4 million) as well as increased appropriations for personnel, operating and contractual services and capital purchases. The actual was 13.42 million lower than budgeted amount due to the lower personnel costs because of vacant personnel positions and savings in operating and contractual services as some of the city’s operations were not fully opened during the fiscal year as a result of COVID-19 restrictions.

Table 7 on the next page is a comparison of actual inflow and outflow with the final budget. 115
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
30 Budgetary Comparison for General Fund (Table 7)
Fiscal Year 2021-22
(In millions)
116

MANAGEMENT'S DISCUSSION AND ANALYSIS
31 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets (Table 8) for its governmental and business-type activities as of June 30, 2022, is $1.42 billion (net of accumulated depreciation). This investment in capital assets includes land, structures and improvements, furniture and equipment, infrastructure, and construction in progress. For more information, please refer to Note 6 in the Notes to the Basic Financial Statements. The Capital Assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. Depreciation on capital assets is recognized in the Government-wide financial statements.

Capital Assets (Table 8)
(net of depreciation)
(in millions)
Additional detail information is provided on Capital Assets in the Notes to Financial Statements, Note 6.

The City has elected to use the “Modified Approach” as defined by GASB Statement No. 34 for its Governmental Activities infr astructure reporting. Under GASB Statement No. 34, eligible infrastructure capital asset is not required to be depreciated under the following requirements:
¾ The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. ¾ The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established disclosed assessment. 117
CITY OF ONTARIO:A NNUAL COMPREHENSIVE FINANCIAL REPORT
32 The City’s streets are constantly deteriorating resulting from the following four factors: (1) traffic using the streets; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development interests trenching operations; and (4) water damage from natural precipitation and other urban runoff. The City is continuously taking actions to arrest the deterioration through short-term maintenance activities such as pothole patching, street sweeping, and street paving.

The City expended $8.3 million on street maintenance for the fiscal year ended June 30, 2022, to delay deterioration. The City has estimated that the amount of annual expenditures required maintaining the City’s streets at the minimum PCI rating of “Good” through the year of 2022 is a minimum of $5.7 million per year. As of June 30, 2022, the City had approximately 115.37 million square feet of streets with a carrying amount of approximately $371.82 million and a replacement cost of approximately $1,048.75 million.

The City is also continuously taking actions to arrest the deterioration of other infrastructure assets through short-term maintenance activities. The City expended $8.0 million on other infrastructure (sidewalks, traffic signals/streetlights and catch basins/storm drains) maintenance for the fiscal year ended June 30, 2022. These expenditures delayed deterioration and improved the overall condition through these maintenance efforts. It is estimated that it will cost approximately $4.0 million per year to maintain other infrastructure assets at their present level. For more information, see Required Supplemental Information following the footnotes to the financial statements. 118

MANAGEMENT'S DISCUSSION AND ANALYSIS
33 Long-term Debt
At year end, the City had $497.63 million in outstanding long-term debt. This debt consisted of revenue bonds, loans payable, installment sale and advances from Successor Agency. For additional details of the City’s long-term debt, please refer to Note 7 in the Notes to the Basic Financial Statements.

Table 9 below is a summary of the City’s long-term debt for the year ended June 30, 2022.

Long-Term Debt (Table 9)
(in millions)
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

Executive Director of Finance
City of Ontario
303 East “B” Street
Ontario, California 91764
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BASIC

FINANCIAL STATEMENTS
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36 122

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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38 124
City of Ontario
Statement of Net Position
June 30, 2022
Governmental Business-t ype
Activities Activities Total
ASSETS
Current assets:

Cash and investments 522,270,233$ 174,849,06 9$ 697,119,302 $ Receivables:

Accounts 60,755,928 14,697,917 75,453,845
Taxes 1,597,830 - 1,597,830
Accrued interest 1,975,394 683,192 2,658,586
Leases 314,319 184,968 499,287
Internal balances 4,731,593 (4,731,593) -
Prepaid costs 3,311,631 42,012 3,353,643
Deposits 634,264 - 634,264
Inventories 3,914,000 1,814,127 5,728,127
Advances to Successor Agency 3,500,000 - 3,500,000
Restricted assets:

Cash and investments 100,112,367 356,847 100,469,214
Cash and investments with fiscal a gent 19,175,100 15,14 9 19,190,249 Total current assets 722,292,659 187,911,688 910,204,347 Noncurrent assets:

Notes and Loans 56,755,800 - 56,755,800
Leases receivable 2,731,214 1,257,114 3,988,328
Investment in joint venture - 70,968,418 70,968,418
Other investments - 120,799,255 120,799,255
Land held for resale 133,773,958 - 133,773,958
Net pension asset 133,783,636 16,677,015 150,460,651
OPEB asset 8,596,575 3,555,778 12,152,353
Capital assets:

Nondepreciable 797,117,477 84,444,370 881,561,847
Depreciable 740,044,804 286,708,547 1,026,753,351
Less accumulated depreciation (322,357,049) (163,423,220) (485,780,269) Total capital assets 1,214,805,232 207,729,697 1,422,534,92 9 Total noncurrent assets 1,550,446,415 420,987,277 1,971,433,692 Total assets 2,272,739,074 608,898,965 2,881,638,03 9

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 2,461,252 3,311,48 9 5,772,741 Deferred pension related items 50,759,411 2,563,725 53,323,136 Deferred OPEB related items 5,714,742 2,363,774 8,078,516 Total deferred outflows of resources 58,935,405 8,238,988 67,174,393

LIABILITIES
Current liabilities:

Accounts payable 16,558,706 12,147,970 28,706,676
Accrued liabilities 5,909,916 824,506 6,734,422
Accrued interest 2,944,775 837,714 3,782,48 9
Unearned revenue 36,057,125 1,447,535 37,504,660
Deposits payable 28,669,532 905,570 29,575,102
Due to other governments 3,460,187 - 3,460,187
Compensated absences - current 3,087,991 1,437,487 4,525,478 Claims and judgements - current 12,209,058 - 12,209,058 Long-term debt - current portion 14,765,818 2,360,000 17,125,818 Total current liabilities 123,663,108 19,960,782 143,623,890 Noncurrent liabilities:

Compensated absences 15,462,922 424,395 15,887,317
Claims and judgements 23,889,942 - 23,889,942
Long-term debt 444,833,092 65,190,000 510,023,092
Total noncurrent liabilities 484,185,956 65,614,395 549,800,351 Total liabilities 607,849,064 85,575,177 693,424,241

DEFERRED INFLOWS OF RESOURCES
Deferred charges on refunding 874,010 - 874,010 Deferred inflows of resources - pension 112,814,688 12,953,340 125,768,028 Deferred inflows of resources - leases 2,952,875 1,420,346 4,373,221 Deferred inflows of resources - OPEB 95,569,521 39,530,169 135,099,690 Total deferred inflows of resources 212,211,094 53,903,855 266,114,94 9

NET POSITION
Net investment in capital assets 1,106,500,917 143,491,186 1,249,992,103 Restricted for:

Community development projects 104,793,693 - 104,793,693 Public safety 30,608,558 - 30,608,558
Capital projects 1,879,410 371,996 2,251,406
Affordable housing 45,020,937 - 45,020,937
Other purposes 52,694,998 - 52,694,998
Total restricted 234,997,596 371,996 235,369,592
Unrestricted 170,115,808 333,795,739 503,911,547 Total net position 1,511,614,321$ 477,658,921 $ 1,989,273,242 $ Primary Government
See accompanying Notes to Basic Financial Statements.
39 125
City of Ontario
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 53,007,368 $ 7,124,318 $ 14,381,291 $ 63,732 $ 21,569,341$ Public safety 171,919,144 24,510,827 24,162,815 426,368 49,100,010 Community development 97,855,487 109,380,406 11,790,257 42,920,676 164,091,339 Public works 5,178,760 - - 757,454 757,454 Interest on long-term debt 12,602,410 - - - - Total governmental activities 340,563,169 141,015,551 50,334,363 44,168,230 235,518,144 Business-type Activities:

Water 32,072,665 73,241,767 1,394,484 538,336 75,174,587 Sewer 26,519,496 28,308,242 790,926 - 29,099,168 Integrated Waste 36,928,273 46,404,294 59,717 - 46,464,011 Total Business-Type activities 95,520,434 147,954,303 2,245,127 538,336 150,737,766 Total primary government 436,083,603$ 288,969,854 $ 52,579,490 $ 44,706,566 $ 386,255,910 $ General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Other taxes
Total taxes
Motor vehicle in lieu, unrestricted
Use of money and property
Other
Gain on sale of investments
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
40 126
Governmental Business-Type
Activities Activities Total
(31,438,027)$ - $ (31,438,027)$ (122,819,134) - (122,819,134) 66,235,852 - 66,235,852 (4,421,306) - (4,421,306) (12,602,410) - (12,602,410) (105,045,025) - (105,045,025) - 43,101,922 43,101,922 - 2,579,672 2,579,672 - 9,535,738 9,535,738 - 55,217,332 55,217,332 (105,045,025) 55,217,332 (49,827,693)
79,329,716 - 79,329,716 16,400,754 - 16,400,754 129,332,341 - 129,332,341 3,824,973 - 3,824,973 8,856,928 - 8,856,928 5,997,517 - 5,997,517 243,742,229 - 243,742,229 210,261 - 210,261 (6,213,473) (1,229,512) (7,442,985)
9,067,222 - 9,067,222 11,881,432 - 11,881,432 (458,557) 458,557 -
258,229,114 (770,955) 257,458,159
153,184,089 54,446,377 207,630,466
1,358,430,232 423,212,544 1,781,642,776
1,511,614,321$ 477,658,921 $ 1,989,273,242 $
and Changes in Net Position
Net (Expense) Revenue
41 127
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42 128
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
43 129
City of Ontario
Balance Sheet
Governmental Funds
June 30, 2022
Capital Project
Funds
Ontario
Housing Capital
General Measure I Authority Projects
ASSETS
Cash and investments 58,992,190 $ 17,386,483 $ 4,595,832 $ 27,087,103 $ Receivables:

Accounts 40,313,187 1,155,946 16,912 - Taxes 1,461,562 - - - Notes and loans 66,851 - 31,560,846 - Leases 3,045,533 - - - Accrued interest 512,326 24,557 17,958 86,474 Prepaid costs 158,153 - - - Deposits - 191,320 267,965 2,199 Due from other funds 3,701,965 - - - Advances to other funds 54,040,183 - - - Advances to Successor Agency 3,500,000 - - - Inventories 282,742 - - - Land held for resale - - 19,258,625 - Restricted assets:

Cash and investments - - - 100,076,592 Cash and investments with fiscal agents - - - (93) Total assets 166,074,692$ 18,758,306 $ 55,718,138 $ 127,252,275 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 7,126,415 $ 203,494 $ 12,856 $ 2,113,865$ Accrued liabilities 5,182,079 - 14,567 - Unearned revenues 21,579,294 - 5,025,000 - Deposits payable 15,251,827 - - 2,048,653 Due to other governments - - 970,861 - Due to other funds - - - - Advances from other funds - - 5,961,399 - Total liabilities 49,139,615 203,494 11,984,683 4,162,518 Deferred Inflows of Resources
Unavailable revenues - - 23,296,524 - Leases 2,952,875 - - - Total deferred inflows of resources 2,952,875 - 23,296,524 - Fund Balances:

Nonspendable 57,981,078 - - - Restricted 361,579 18,554,812 20,436,931 - Committed - - - 123,089,757 Assigned 55,639,545 - - - Unassigned - - - - Total fund balances 113,982,202 18,554,812 20,436,931 123,089,757 Total liabilities, deferred inflows of resources and
fund balances 166,074,692$ 18,758,306 $ 55,718,138 $ 127,252,275 $ Special Revenue Funds
See accompanying Notes to Basic Financial Statements.
44 130
Capital Project
Funds
Other Total
Governmental Governmental
Impact Fees Funds Funds
178,441,785$ 98,639,274 $ 385,142,667 $ - 9,632,759 51,118,804 - 136,268 1,597,830 - 25,128,103 56,755,800 - - 3,045,533 749,912 366,923 1,758,150 - - 158,153 172,780 - 634,264 - - 3,701,965 - 5,961,399 60,001,582 - - 3,500,000 - 2,698,632 2,981,374 - 57,883,282 77,141,907 - 35,775 100,112,367 - 14,169,590 14,169,497 179,364,477$ 214,652,005 $ 761,819,893 $ 1,673,922$ 3,369,592 $ 14,500,144 $ - 360,720 5,557,366 - 9,452,831 36,057,125 9,859,905 506,695 27,667,080 - 2,489,326 3,460,187 - 3,701,965 3,701,965 - - 5,961,399 11,533,827 19,881,129 96,905,266 - 368,576 23,665,100 - - 2,952,875 - 368,576 26,617,975 - - 57,981,078 - 194,402,300 233,755,622 167,830,650 - 290,920,407 - - 55,639,545 - - - 167,830,650 194,402,300 638,296,652 179,364,477$ 214,652,005 $ 761,819,893 $ 45 131
Total Fund Balances - Total Governmental Funds 638,296,652$ Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciabl
e 797,117,477$ (34,731,692 )$ 762,385,785
Depreciable, net 417,687,755 (39,357,654 ) 378,330,101
Total capital assets 1,214,805,232$ (74,089,346 )$ 1,140,715,886 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position. (144,565,918)
Unavailabl
e revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 23,665,100 In th
e Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Government-
Wide Statement
of Net Position
Internal Service
Funds
Deferred outflows of resources related to pension 50,759,411 (1,032,149 ) 49,727,262 Deferred outflows of resources related to OPEB 5,714,742 (5,714,742) - Deferred inflows of resources related to pension (112,814,688) 5,214,981 (107,599,707) Deferred inflows of resources related to OPEB (95,569,521) 95,569,521 - Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (3,087,991) $ 830,795 $ (2,257,196)$ Interest payable (2,944,775) 1,610,002 (1,334,773) Long-term debt - due within one year (14,765,818) 6,794,667 (7,971,151) Unamortized deferred gain on refunding (874,010) - (874,010) Unamortized deferred loss on refunding 2,461,252 - 2,461,252 Unamoritzed prepaid bond insurance premium 136,430 - 136,430 Compensated absences - due in more than one year (15,462,922) 168,411 (15,294,511) Long-term debt - due in more than one year (444,833,092) 254,272,584 (190,560,508) Net pension liability 133,783,636 (6,714,123) 127,069,513 Net OPEB liability 8,596,575 (8,596,575 ) -
Total long-term liabilities (336,990,715)$ 248,365,76 1$ (88,624,954 ) Net Position of Governmental Activities 1,511,614,321$
City of Ontario
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
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47 133
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022
Capital Project
Funds
Ontario
Housing Capital
General Measure I Authority Projects
REVENUES:

Taxes 243,176,826 $ - $ - $ - $ Special assessment taxes ----
Licenses and permits 10,772,502 - - -
Intergovernmental 15,306,488 4,690,545 - 60,545
Charges for services 47,443,658 - - -
Use of money and property (2,618,811) (62,469) 2,122,106 (104,060 ) Fines and forefeitures 1,060,576 - - -
Miscellaneous 9,466,875 - 95,902 1,879,410
Total revenues 324,608,114 4,628,076 2,218,008 1,835,895 EXPENDITURES:

Current:

General government 33,878,368 - - 54,590
Public safety 194,515,870 - - 260,283
Community development 39,299,440 3,120,177 2,812,282 15,632,272 Public works 13,895,991 - - 13,048
Debt service:

Principal retirement 560,000 - 12,000 34,516,908
Interest and fiscal charges 1,121,331 ---
Total expenditures 283,271,000 3,120,177 2,824,282 50,477,101

REVENUES OVER (UNDER)
EXPENDITURES 41,337,114 1,507,899 (606,274) (48,641,206) OTHER FINANCING SOURCES (USES):

Transfers in - - 3,500 6,464,116 Transfers out (55,516,961) - - - Notes and loans issued - - - 136,526,765 Total other financing sources (uses) (55,516,961) - 3,500 142,990,881 Net change in fund balances (14,179,847) 1,507,899 (602,774) 94,349,675 FUND BALANCES:

Beginning of year 126,701,209 17,046,913 20,261,93 1 28,740,082 Restatements 1,460,840 - 777,774 -
Beginning of year, as restated 128,162,049 17,046,913 21,039,705 28,740,082 End of year 113,982,202$ 18,554,812 $ 20,436,93 1$ 123,089,757 $ Special Revenue Funds
See accompanying Notes to Basic Financial Statements.
48 134
Capital Project
Funds
Other Total
Governmental Governmental
Impact Fees Funds Funds
-$ - $ 243,176,826$ - 11,775,704 11,775,704
- - 10,772,502
- 35,802,667 55,860,245
55,761,707 27,038,151 130,243,516
(3,373,046) (1,455,070) (5,491,350)
- - 1,060,576
23,493 2,728,017 14,193,697
52,412,154 75,889,469 461,591,716 - 14,290,235 48,223,193
1,764,294 2,911,483 199,451,930
26,958,577 18,442,707 106,265,455
- 4,095,975 18,005,014
- 4,675,812 39,764,720
- 324,188 1,445,519
28,722,871 44,740,400 413,155,831 23,689,283 31,149,069 48,435,885 9,819,324 1,347,334 17,634,274 - (10,121,225) (65,638,186) - 18,031,000 154,557,765 9,819,324 9,257,109 106,553,853 33,508,607 40,406,178 154,989,738 134,155,056 189,734,859 516,640,050
166,987 (35,738,737) (33,333,136)
134,322,043 153,996,122 483,306,914
167,830,650$ 194,402,300 $ 638,296,652 $ 49 135
City of Ontario
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds 154,989,738$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service 44,644,973 Depreciation expens e on capital asset s was reported in th e Government-Wide Statement of Activities , but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (19,106,117) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (2,238,978) Debt proceeds provide current financial resource s to governmental funds , but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayment
s 39,764,720
Issuance of long-term debt (154,557,765)
Interest payable (580,010)
Amortization of prepaid bond insurance (8,783)
Amortization of deferred charges 62,060
Amortization of bonds premium (discount), net 106,480
Capital assets and pension amounts transferred from the business type activities Current year employer pension contribution s are recorded a s expenditures in th e governmental funds , however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position. 17,513,613
Pension expens e is reported in th e Government-Wide Statement of Activitie s does not requir e the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (3,769,065) Unavailable revenues recorded in th e fund financial statement s resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. (3,094,154)
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 79,457,377
Change in Net Position of Governmental Activities 153,184,089$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
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51 137
City of Ontario
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities -
Integrated Internal
Water Sewer Waste Total s Service Funds
ASSETS
Current Assets:

Cash and investments 95,055,336$ 58,763,063 $ 21,030,67 0$ 174,849,069 $ 137,127,56 6$ Receivables:

Accounts 5,803,782 2,498,031 6,396,10 4 14,697,917 9,637,12 4 Accrued interest 371,404 229,612 82,176 683,192 217,244 Leases 184,968 - - 184,968 - Prepaid costs 15,483 17,700 8,829 42,012 3,017,047 Inventories 1,451,302 362,825 - 1,814,127 932,62 6
Restricted:

Cash and investments 356,847 - - 356,847 -
Cash with fiscal agent 15,149 - - 15,149 5,005,603
Total current assets 103,254,271 61,871,231 27,517,779 192,643,281 155,937,21 0 Noncurrent:

Leases receivable 1,257,11 4 - - 1,257,11 4 -
Advances to other funds 11,613,153 5,214,477 10,902,63 4 27,730,264 13,035,193 Investment in joint venture 70,968,41 8 - - 70,968,41 8 - Other investments 120,799,255 - - 120,799,25 5 -
L a n d h e l d f o r r e s a l e ---- 5 6 , 632,051 Net pension asset 5,910,481 1,744,07 6 9,022,458 16,677,015 6,714,123 OPEB asset 1,260,199 371,861 1,923,71 8 3,555,778 8,596,575 Capital assets:

Nondepreciable 77,888,64 8 3,391,393 3,164,329 84,444,37 0 34,731,692 Depreciable 224,417,539 55,556,66 8 6,734,340 286,708,547 96,555,621 Less accumulated depreciation (120,126,187) (41,579,164) (1,717,869) (163,423,220) (57,197,967) Net capital assets 182,180,000 17,368,897 8,180,80 0 207,729,697 74,089,34 6 Total noncurrent assets 392,731,506 24,699,311 30,029,61 0 447,460,427 159,067,28 8 Total assets 495,985,777 86,570,542 57,547,389 640,103,708 315,004,498

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 3,311,489 - - 3,311,489 - Deferred pension related items 908,607 268,113 1,387,00 5 2,563,725 1,032,149 Deferred OPEB related items 837,742 247,203 1,278,829 2,363,77 4 5,714,742 Total deferred outflows of resources 5,057,838 515,316 2,665,834 8,238,988 6,746,891

LIABILITIES
Current liabilities:

Accounts payable 5,810,38 6 4,819,605 1,517,979 12,147,97 0 2,058,562 Accrued liabilities 316,577 138,23 2 369,697 824,50 6 352,550 Accrued interest 837,71 4 - - 837,71 4 1,610,002
Unearned revenues 50,000 1,345,704 51,831 1,447,53 5 -
Deposits payable 347,86 2 45,661 512,047 905,57 0 1,002,452 Compensated absences - current 884,627 70,93 6 481,924 1,437,487 830,79 5 Claims and judge m e n t s - c u r r e n t ---- 1 2 , 209,058 Long-term debt - current portion 2,360,000 - - 2,360,00 0 6,794,667 Total current liabilities 10,607,166 6,420,138 2,933,478 19,960,782 24,858,086 Noncurrent liabilities:

Advances from other funds ---- 9 4 , 805,640
Compensated absences 245,165 102,078 77,152 424,395 168,411 Claims and judgements ---- 2 3 , 889,942
Long-term debt 65,190,00 0 - - 65,190,00 0 254,272,584
Total noncurrent liabilities 65,435,165 102,078 77,152 65,614,395 373,136,577 Total liabilities 76,042,331 6,522,21 6 3,010,630 85,575,177 397,994,663

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 4,590,777 1,354,655 7,007,908 12,953,340 5,214,981 Deferred leases related amounts 1,420,346 - - 1,420,346 - Deferred OPEB related items 14,009,838 4,134,050 21,386,281 39,530,169 95,569,521 Total deferred inflows of resources 20,020,961 5,488,705 28,394,189 53,903,855 100,784,502

NET POSITION
Net investment in capital assets 117,941,489 17,368,897 8,180,80 0 143,491,186 46,402,377 Restricted 371,996 - - 371,99 6 -
Unrestricted 287,923,95 2 57,706,040 20,627,604 366,257,596 (223,430,153) Total net position 406,237,437$ 75,074,937 $ 28,808,40 4$ 510,120,77 8$ (177,027,776)$ Reconciliation of Net Position to the Government-Wide Statement of Net Position:

Net Position per Statement of Net Position - Proprietary Funds 510,120,778 $ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds, as restated (52,668,102) Current year's adjustment to reflect the consolidation of internal service activities related to enterprise funds 20,206,245 Net Position per Government-Wide Statement of Net Position 477,658,921$ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
52 138
City of Ontario
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Integrated Internal
Water Sewer Wast e Totals Service Funds
OPERATING REVENUES:

Sales and service charges 70,403,725$ 28,093,362 $ 45,574,84 9$ 144,071,93 6$ - $ Interdepartamental charges 1,968,703 162,27 4 715,669 2,846,646 58,331,847 Miscellaneous 577,015 52,60 6 113,776 743,397 40,047,27 4 Total operating revenues 72,949,443 28,308,242 46,404,294 147,661,979 98,379,121 OPERATING EXPENSES:

Administration and general 9,432,658 5,227,082 12,550,967 27,210,707 25,790,758 Source and supply 19,273,526 - - 19,273,52 6 12,816,380 Pumping 4,822,164 - - 4,822,16 4 -
Transmission/collection 7,743,829 3,024,867 25,888,06 6 36,656,762 - Treatment - 17,914,161 - 17,914,161 - Claims expense ---- 5 7 3 , 5 7 4
Depreciation expense 5,501,443 1,086,742 284,16 9 6,872,354 7,914,723 Total operating expenses 46,773,620 27,252,852 38,723,202 112,749,674 47,095,435 Operating income (loss) 26,175,823 1,055,390 7,681,092 34,912,305 51,283,686 NONOPERATING REVENUES (EXPENSES):

Grant revenue 1,394,484 790,926 59,717 2,245,127 -
Interest revenue 155,877 (1,037,128 ) (348,261) (1,229,512) (310,215) Interest expense (2,977,005) - - (2,977,005 ) (10,736,638) Gain on joint venture 292,324 - - 292,32 4 -
Gain on sale of other investments ---- 1 1 , 881,432
Total nonoperating revenues (expenses) (1,134,320) (246,202) (288,544) (1,669,066) 834,579 Income before contributions and transfers 25,041,503 809,188 7,392,548 33,243,239 52,118,265 CONTRIBUTIONS AND TRANSFERS:

Capital grants and contributions 538,336 - - 538,336 - Transfers in 686,700 128,700 787,500 1,602,900 47,846,070 Transfers out (401,639) (166,462) (576,242) (1,144,343) (300,715) Total contributions and transfers 823,397 (37,762) 211,258 996,893 47,545,355 Change in net position 25,864,900 771,426 7,603,806 34,240,132 99,663,620 NET POSITION:

Beginning of year 414,249,526 89,954,712 44,044,435 548,248,673 (325,944,136 ) Restatements (33,876,989) (15,651,201) (22,839,837) (72,368,027) 49,252,740 Beginning of year, as restated 380,372,537 74,303,51 1 21,204,598 475,880,64 6 (276,691,396) End of year 406,237,437$ 75,074,937 $ 28,808,40 4$ 510,120,778 $ (177,027,776 )$ Reconciliation of Changes in Net Position to the Statement of Activities:

Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 34,240,132 $ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds 20,206,245 Changes in Net Position of Business-Type Activities per Statement of Activities 54,446,377$ Business-Type Activities - Enterprise Funds
53 139
City of Ontario
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 71,387,500$ 28,248,635 $ 44,353,717 $ 143,989,852 $ - $ Cash received from/(paid to) interfund services ---- 9 6 , 182,743 Cash paid to suppliers for goods and services (36,414,751) (20,833,869) (27,773,738) (85,022,358) (14,004,702) Cash paid to employees for services (13,101,650) (6,412,629) (18,558,027) (38,072,306) (47,096,329) Net cash provided by (used in) operating activities 21,871,099 1,002,137 (1,978,048) 20,895,188 35,081,712 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 686,700 128,700 787,500 1,602,900 47,846,070 Cash transfers out (401,639) (166,462) (576,242) (1,144,343) (300,715) Due to other funds ---- (1,494)
Advance from other funds 10,447,137 5,200,755 419,76 1 16,067,653 (18,148,208) Interest paid on pension obligation bonds ---- (9,180,719) Principal paid on pension obligation bonds ---- (4,360,000) Grant subsidy 1,394,484 790,92 6 59,717 2,245,127 -
Net cash provided by (used in)
noncapital financing activities 12,126,682 5,953,91 9 690,736 18,771,337 15,854,934 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (12,437,059) (1,702,959) (1,415,707) (15,555,725) (25,449,435) Acquisition of other investments (8,103,243) -- (8,103,243) 23,813,113 Proceeds from leases receivable 181,512 - - 181,512 -
Interest paid on capital debt (3,621,391) -- (3,621,391) (757,961) Principal paid on capital debt (68,671,649) -- (68,671,649) (1,232,392) Proceed from issuance of debt 67,550,000 - - 67,550,00 0 - Reimbursement agreement 538,336 - - 538,33 6 -
Net cash provided by (used in)
capital and related financing activities (24,563,494) (1,702,959) (1,415,707) (27,682,160) (3,626,675) CASH FLOWS FROM INVESTING ACTIVITIES:

Change in investments -----
Interest received (17,760) (1,134,844) (373,899) (1,526,503) 11,355,160 Net cash provided by (used in) investing activities (17,760) (1,134,844) (373,899) (1,526,503) 11,355,160 Net cash flows 9,416,527 4,118,253 (3,076,918) 10,457,862 58,665,13 1 CASH AND INVESTMENTS - Beginning of year 86,010,805 54,644,810 24,107,588 164,763,203 83,468,038 CASH AND INVESTMENTS - End of year 95,427,332$ 58,763,063 $ 21,030,670 $ 175,221,065 $ 142,133,169 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 26,175,823$ 1,055,39 0$ 7,681,092 $ 34,912,305 $ 51,283,68 6$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 5,501,443 1,086,742 284,16 9 6,872,354 7,914,723 (Increase) decrease in accounts receivable (1,358,695) (91,478) (2,098,215) (3,548,388) (2,196,378) (Increase) decrease in prepaid expense 8,389 669 96,326 105,384 (493,613) (Increase) decrease in inventories (403,688) (100,922) - (504,610) (89,709) Increase (decrease) in accounts payable 1,280,985 127,87 0 (1,099,178) 309,677 (1,348,037) Increase (decrease) in accrued liabilities 61,504 32,368 84,25 6 178,128 70,96 1 Increase (decrease) in unearned revenues - 31,87 1 47,638 79,50 9 - Increase (decrease) in deposits payable (5,522,422) 45,174 (967,076) (6,444,324) 1,002,452 Increase (decrease) in claims and judgements ---- 5 9 1 , 3 5 7 Increase (decrease) in compensated absences 259,353 (26,364) (10,368) 222,621 19,945 Increase (decrease) in deferred leases related amounts (203,248) -- (203,248) Increase (decrease) in net pension liability (6,149,631) (1,814,645) (9,387,527) (17,351,803) (6,985,790) Increase (decrease) in deferred pension related items 5,248,425 1,548,71 6 8,011,820 14,808,961 5,962,049 Increase (decrease) in OPEB liability (4,079,365) (1,203,746) (6,227,228) (11,510,339) (27,827,800) Increase (decrease) in deferred OPEB related items 1,052,226 310,492 1,606,243 2,968,96 1 7,177,866 Net cash provided by (used in) operating activities 21,871,099$ 1,002,137 $ (1,978,048) $ 20,895,188 $ 35,081,712 $ NONCASH TRANSACTIONS:

Gain on investment in joint venture 292,324$ - $ - $ - $ - $ Amortization of deferred cost 5 6 , 3 5 7----
Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
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55 141
City of Ontario
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
Private Purpose
Trust Fund
Successor
Custodial Agency of th e
Funds Former RDA
ASSETS
Cash and investments 32,406,517$ 9,633,450 $ Receivables:

Accounts 21,839 -
Taxes 187,694 -
Notes and leases - 35,000
Accrued interest 58,613 1,219
Advances to City - 1,600,000
Land held for resale - 10,904,18 1
Restricted assets:

Cash and investments with fiscal agents 82,641,775 1,152,96 1 Total assets 115,320,547 23,326,811

LIABILITIES
Accounts payable 125,723 -
Accrued interest - 2,774,12 1
Deposits payable 721,035 305,887
Due to other governments 10,929,507 -
Long-term liabilities:

Long-term debt - due within one year - 7,056,822
Long-term debt - due in more than one year - 27,062,548 Total liabilities 11,776,265 37,199,378

NET POSITION
Restricted for:

Individuals, organizations, and other governments 103,544,282 - Held in trust for private purposes - (13,872,567 )
Total Net Position 103,544,282$ (13,872,567) $ See accompanying notes to Basic Financial Statements.
56 142
City of Ontario
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
Private Purpose
Trust Fund
Successor
Custodial Agency of th e
Funds Former RDA
ADDITIONS:

Taxes 12,282,119$ 9,451,821$
Interest and change in fair value of investments (16,375) (76,627) Fee collections for other governments 45,224,492 17
Bond proceeds and premiums 53,260,247 -
Total additions 110,750,483 9,375,211
DEDUCTIONS:

Administrative expenses 24,187,330 270,899
Payments on conduit bonds - principal 5,780,000 -
Interest expense 7,309,655 4,736,424
Contributions to other governments 44,957,535 101,117
Total deductions 82,234,520 5,108,440
Change in net position 28,515,963 4,266,771 NET POSITION:

Beginning of year 93,308,155 (18,388,795 )
Restatements (18,279,836) 249,457
Beginning of year, restated 75,028,319 (18,139,338)
End of year 103,544,282 $ (13,872,567) $
See accompanying notes to Basic Financial Statements.
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58 144
59 NOTES TO BASIC

FINANCIAL STATEMENTS
145
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146
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
61 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Ontario, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City is a municipal corporation governed by an elected mayor and a four-member council. The City was incorporated December 10, 1891, under the general laws of the State of California and enjoys all the rights and privileges pertaining to “General Law” citi es. As required by accounting principles generally accepted in the Unites States of America, these financial statements present the City of Ontario, California, and its component units for which the City is considered financially accountable.

The criteria used in determining the scope of the re porting entity is based on the provisions of GASB Statement No. 14 and amended by GASB Statement No. 61, Blended Component Units, although legally separate entities, are in substance part of the gove rnment’s operation, so data from these units are combined herein. The following criteria were used in the determination of blended units: (1) the members of the City Council also act as the governing body of the Industrial Development Authority, the Ontario Redevelopment Financing Authority, the Ontario Publ ic Financing Authority, and the Ontario Housing Authority (collectively, the “Authorities”), and (2) the Authorities are managed by employees of the City.

Blended Component Units
The former Ontario Redevelopment Agency (Agency) was activated November 1, 1977, pursuant to the State of California Health and Safety Code, Section 33000 entitled “Community Development Law.” The primary purpose of the Agency was to encourage priv ate redevelopment of property and to rehabilitate areas suffering from economic disuse arising from poor and inadequate planning, inadequate street layout and street access, lack of open space, landscaping and other improvements and facilities necessary to establish and maintain the economic growth of the City. The former Redevelopment Agency was dissolved as of January 31, 2012, through the Suprem e Court decision on Assembly Bill 1X 26. See Note 18 for more information on the dissolution.

The Industrial Development Authority was establis hed August 18, 1981, pursuant to the California Industrial Development Financing Act (AB74). The law authorizes limited issuance of small-issue industrial development bonds to assist private industry. The sole function of the Industrial Development Authority is to review and approve the issuance of bo nds to finance eligible projects. Separate financial statements are not available for the Industrial Development Authority. 147
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
62 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
The Ontario Redevelopment Financing Authority was established November 5, 1991, pursuant to Article 1 (commencing with Section 6500) of Chapter 5, Division 7, of Title 1 of the California Government Code in order to jointly exercise powers of the Ontari o Redevelopment Financing Authority and the City, and to establish a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments. Separate fi nancial statements are not availa ble for the Ontario Redevelopment Financing Authority.

The Ontario Public Financing Authority was created by a joint exercise of joint powers agreement between the City of Ontario and the Ontario Housing Authority (the “Members”) on June 1, 2013. The purpose of the Ontario Public Financing Authority is to assist in the financing of capital improvement projects of the Members and other activities of the Members as permitted under Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the Government Code, as amended. Separate financial statements are not available for the Ontario Public Financing Authority.

The Ontario Housing Authority was established on December 2, 1997. The primary purpose of the Ontario Housing Authority is to assist property owners in rejuvenating and improv ing substandard housing conditions within the City. Separate financial st atements are not available for the Ontario Housing Authority.

Since the City Council serves as the governing board for these component units, all of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the primary government.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues, and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regu lations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.
148
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
63 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred inflows/outflows of resources, and liabilities, including capital assets, as well as infras tructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liabilities are incurred.

Certain types of transactions reported as program revenues for the City are reported in three categories:
x Charges for services
x Operating grants and contributions
x Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transaction balances have been eliminated; however, th ose transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/from other funds
x Advances to/from other funds
x Transfers in/out
The City applies all applicable GASB pronou ncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position in the government-wide financial statements.

The City has presented all major funds that meet specific qualifications. 149
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
64 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued All governmental funds are accounted for on a spendi ng or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. 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 in the current period. For this purpose, the City considers revenue to be available if collected within 60 days of the end of the current fiscal period except for sales taxes and grant revenue where the City considers revenue to be available if collected within 90 days and 180 days, respectively, of the end of the current fiscal year.

The City reports the following major governmental funds in the accompanying financial statements:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Measure I Fund accounts for revenues from a one-half percent sales tax on all retail transactions within the County. The proceeds are to be used for transportation improvements, railroad grade separation projects, and traffic management programs.

The Ontario Housing Authority Fund accounts for the financial transactions of the Ontario Housing Authority. Revenue sources for the Authority includ e rent proceeds from properties, housing loan repayments and agency fees.

The Capital Projects Fund accounts for financial transactions of general capital improvements.

The Impact Fees Fund accounts for revenues from developer- paid impact fees for infrastructure construction.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, a ll assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increase (revenues) and decreases (expenses) in total net position. 150
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
65 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in whic h a liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following major proprietary funds in the accompanying financial statements:

The Water Enterprise Fund accounts for the operation and maintenance of the City’s water distribution system.

The Sewer Enterprise Fund accounts for the financial transactions of the City’s waste collection system.

The Integrated Waste Enterprise Fund accounts for collection and disposal of integrated waste from industrial, commercial and residential users throughout the Ontario area.

The City also reports the following proprietary fund type:

Internal Service Funds account for financial transactions related to repair, replacement and maintenance of City-owned equipment, the City’s self-insurance programs, the City’s general information systems and telecommunications hardware and software, the City’s facilities maintenance, and the City’s defined benefit healthcare plan for its retired employees. These services are provided to other departments or agencies of the City on a cost reimbursement basis.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Stat ement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has two types of fiduciary funds, a private-purpose trust fund and custodial funds. Private purpose trust funds accounts for all other trust arrangements in which principal and income benefit individuals, private or ganizations, and other governments (i.e. unclaimed property/escheat property). Custodial funds are used to account for the assets held for distribution by the City as an agent for another entity for which the City has a custodial responsibility and accounts for the flow of assets. Fiduciary funds are accounted for using the accrual basis of accounting. 151
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
66 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The City reports the following types of fiduciary funds:

Private-purpose Trust Funds are used to account for the assets and liabilities of the former redevelopment agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Custodial Funds are used to account for fiduciary activities not required to be reported in investment trust, pension trust, or private purpose trust funds.

The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate fiduciary fund financial statements.

C. Cash and Investments
The City maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed as cash and investments on the balance sheets for the governmental funds and the statements of net position for the proprietary fund and agency funds as cash and investments.

Investments are stated at fair value.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3) , certain disclosure requirements for deposits and investment risks were made in the following areas:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified includin g use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 152
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
67 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one-year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significan t other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not have any investments measured using Level 3 inputs as of June 30, 2022.

The City participates in an investment pool manage d by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates.

The City’s cash and equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both unrestricted and restricted cash and investments.

For the purpose of the Statement of Cash Flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Leases Receivable
The City’s leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Deferred inflows of resources are recorded for the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable.
153
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
68 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Inventories, Prepaid Items and Land Held for Resale All inventories are valued at cost using the first-in/first-out (FIFO) method, except water stock inventory which is valued at fair value at the end of the fiscal year. Inventories in the Internal Service Funds consist of expendable supplies held for consumption, wherea s in the Enterprise Funds it represents water stock in the water utility fund and expendable supplies he ld for consumption in both water utility and sewer utility funds. Inventory costs are recorded as expenditures when used.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the purchases method.

Land purchased for resale is capitalized as inventory at acquisition costs or net realizable value if lower.

F. Capital Assets
Capital assets, which include property , plant, equipment, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the governmentwide financial statements. Capital assets and infrastructure are defined by the City as assets with an initial, individual cost of more than $15,000 and $50,000 respectively (amount not rounded) and an estimated useful life in excess of five years. Capital assets purchased with federal grant money with a cost of more than $5,000 should be capitalized. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as pr ojects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

The Governmental Accounting Standards Board (GASB) issued Statement No. 34, which requires the inclusion of infrastructure capital assets in local government’s basic financial statements. The City defines infrastructure as long-lived capital assets that normally can be preserved for a significant greater number of years than most capital assets (non-infrastructure assets). Infrastructure assets are normally stationary in nature and are of value only to the government en tity. They are basic physical assets that allow the government entity to function. Examples include st reet systems, water purification and distribution systems, sewer collection and treatment systems, parks and recreation lands and improvement systems, storm water conveyance systems, fiber optics, bridges, tunnels, dams and buildings combined with the site amenities such as parking and landscaped areas us ed by the government entity in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.

Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.
154
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
69 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Capital Assets, Continued
In accordance with GASB Statement No. 34, the City has elected the Modified Approach for reporting its pavement system. In 1999, the City commissioned a physical condition assessment of the streets, which was completed and dated July 15, 1999. Each year the City completes review of the streets to provide an updated assessment. These streets, primarily asphalt concrete, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. This condition assessment will be performed every three years. Each street was assigned a physical condition on 17 potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street.

The following conditions were defined: excellent condition was assigned to those segments with a rating between 86 to 100, very good condition was assigned a rating between 71 to 85, good condition was assigned a rating between 56 to 70, fair condition was assigned a rating between 41 to 55, poor condition was assigned with a rating between 26 to 40, very poor condition was assigned with a rating between 11 to 25, and a failed condition was assigned to those segments with a rating between 0 to 10.

The City’s policy, relative to maintaining the street assets, is to maintain the existing weighted average rate of “Good”, which is a PCI in dex range between 56 and 70. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. A detailed description of the modified approach for the City’s infrastructure capital assets can be found in the Required Supplementary Information section.

For all other capital assets, structures and improvem ents, furniture and equipment, infrastructure and intangible assets, the City has elected to use the Basic Approach as defined by GASB Statement No. 34.

Accordingly, these capital assets are depreciated using the straight-line method over the following estimated useful lives:
155
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
70 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Property Taxes
Property tax revenue is recognized on the modified accr ual basis, that is, in the fiscal year for which the taxes have been levied providing they become avai lable. Available means then due or past due and receivable within the current period and collected with in the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach a nnually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured property taxes and one-half of the taxes on real prop erty are due November 1; the second installment is due February 1. All taxes are delinquent if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first March each year and are delinquent, if unpaid, on August

31. H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial st atement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The first item that qualifies for reporting in this category is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price.

This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also has deferred outflows of resources related to pensions and OPEB as discussed in Notes 10 and

11. In addition to liabilities, the statement of net position or balance sheet report a separate section for deferred inflows of resources. This separate financ ial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Th e first item which qualifies for reporting in this category arises only under a modi fied accrual basis of accounting. Accordingly, the item, unavailable revenue, is only reported in the governmental fu nds balance sheet. The governmental funds report unavailable revenues from three sources: loans receiv able, grants receivable and interest on interfund advances. The City also has deferred inflows of resources related to leases receivable as discussed in Note 1D, and deferred inflows related to pensions and OPEB as discussed in Notes 10 and 11. 156
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
71 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Position and Fund Balances
Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt at tributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

Fund Balance
Fund balance is essentially the difference between th e assets, deferred outflows and deferred inflows of resources and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent:

Nonspendable fund balance (inherently nonspendable)
Restricted fund balance (external enforceable limitations on use) Committed fund balance (self-imposed limitations on use) Assigned fund balance (limitation resulting from intended use) Unassigned fund balance (residual net resources)
157
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
72 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Position and Fund Balances, Continued
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently.

Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as as signed fund balance. Pursuant to the City’s fund balance policy established by the City Council on Ju ne 22, 2011 by resolution, (#2011-041), the City Council has delegated the authority to assign amount s to be used for specific purposes to the City Manager or Finance Director for the purpose of reporting these amounts on the annual financial statements.

Included in the Fund Balance Policy is the 18 percent Stabilization Plan. This is the goal of City Council to achieve a minimum of 18 percent of annual General Fund appropriations, as assigned fund balance in the General Fund. Based on the current year General Fund appropriations, the amount assigned to the 18 percent stabilization plan will either increase or decr ease accordingly. This assigned balance is intended to be used for specific and defined emergency servic es and to minimize the potential for disruption of municipal services to its citizens. However, included as part of the General Fund balancing strategies for fiscal year 2021-22 is the reduction of the General Fund stabilization assignment from 18 percent to 15 percent. As of June 30, 2022, the City’s General Fund has an assigned fund balance for the stability arrangement of $30.3 million, which achieves the goal of 16 percent of the General Fund adopted budget for fiscal year 2021-22.

In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. The City consider restricted fund balance to have been spent first when expenditure is incurred for pu rposes for which both restricted and unrestricted fund balance is available. Similarly, when expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

J. Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts when employees separate from service with the government. City employees receive from 10 to 25 days’ vacation each year, depending on the length of service. All vacation pay is accrued when incurred in the government-wide financial statements and in the proprietary funds financial statements.
158
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
73 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses when incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issu ances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refund s of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

N. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported am ounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 159
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
74 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. New Pronouncements
In 2022, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
¾ GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for le ases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
¾ GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of the Construction Period – The objective of this statement is to (1) to enha nce the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business- type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 92, Omnibus 2020 – The objectives of this statement are to enhance comparability in accounting and financial reporting and to improv e the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 97, Certain Component Unit Criteria, and Ac counting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensat ion Plans – an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 – The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a pote ntial component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employe benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the re levance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (457 plans) that meet the definition of a pension plan and for benefits provided through those plans. 160
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
75 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. New Pronouncements, Continued
¾ GASB Statement No. 99, Omnibus 2022 – The primary objectives of this statement are to enhance the comparability in accounting and financial reportin g and to improve the consistency of authoritative literature by addressing practice issues that have been identified during the implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.

2. CASH AND INVESTMENTS
The following is a summary of the cash and investments at June 30, 2022:

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond inde ntures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund. 161
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
76 2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments
Cash and investments at June 30, 2022 consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $40,345,104 as of June 30, 2022. Bank balances before reconciling items were a positive amount of $51,222,753 at June 30, 2022. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Commission. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

Fair value of pledged securities mu st equal at least 110% of the City’s cash deposits. California law also allows institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

Cash on hand 5,686 $
Deposits with financial institutions 40,345,104
Total cash on hand and deposits 40,350,790
Investments:

U.S. Treasury securities 379,792,073
Federal government agency 129,895,146
Medium-term corporate notes 96,454,394
Asset-backed securities 1,201,719
Supranational 18,716,165
Local Agency Investment Fund (LAIF) 72,748,982
Total investments 698,808,479
Total City Treasury 739,159,269
Investments with fiscal agent:

Money market funds 203,454,199
Total cash and investments 942,613,468 $
162
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
77 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy Under the City’s investment policy, and in accord ance with the Code, the following investments are authorized at June 30, 2022:
x United States Treasury Bills, Notes, and Bonds. Th ere is no limitation as to the percentage of the fund, which can be invested in this category.
x Obligations—including U.S. Government Agency Mortgage pass-through securities— issued by various agencies of the Federal Government. Ther e is no percentage limitation on the dollar amount which can be invested in Agency issues in total, no more than 20% of the cost value of the portfolio may be invested in the securities of any one issuer. x Bills of exchange or time drafts drawn on and accepted by a commercial bank, commonly known as banker’s acceptances. Banker’s acceptances may not exceed 180 days to maturity. To be eligible f o r p u r c h a s e , b a n k e r ’ s a c c e p t a n c e s m u s t h a v e s h o r t - t e r m d e b t o b l i g a t i o n s r a t e d “ A - 1 ” o r i t s equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 40% of the cost value of the portfolio may be invested in ba nker’s acceptances and no more than 5% of the cost value of the portfolio may be invested in banker’s acceptances of any single bank. x Commercial paper rated “A-1” or its equivalent by at least two NRSROs and issued by a domestic corporation having assets in excess of $500 million and having at least an “A” or its equivalent rating on its long-term debentures as provided by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper on an issuing corporation. Purchases of commercial paper may not exceed 15% of the portfolio, which may be invested pursuant to this section. An additional 15% or a total of 30% of the City’s money may be invested pursuant to thissubdivision. The additional 15% may be so invested only if the dollar weighted average maturity of the entire amount does not exceed 31 days. x Negotiable certificates of deposit issued by a nationally or State chartered bank or a State or Federal savings institution, or a State licensed br anch of a foreign bank (“Yankee”). Purchases of negotiable certificates of deposit may not exceed 30% of the cost value of the portfolio. To be eligible for purchase by the City, the certificate of deposit must be rated “A-1” or its equivalent by at least two NRSROs.
x Repurchase Agreements – The City may invest in repurchase agreements with primary dealers of the Federal Reserve Bank of New York with which the City has entered into a master repurchase agreement. The Public Securities Association master repurchase agreement is the “master repurchase agreement”. The maturity of repurchase agreements shall not exceed one year. The market value of securities used as collateral for re purchase agreements shall be valued at no less than 102% of the value of the repurchase agreement. Investments in repurchase agreements may not exceed 20% of the cost value of the fund.
x Local Agency Investment Fund of the State of California x Time Deposits – No more than 25% of the fund may be invested in this category. 163
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
78 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued x Medium-term notes of a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any State and operating within the United States. The issuing corporation must have a minimum rating of “A” or its equivalent by at least two NRSROs and have in excess of $500 million in shareholder equity. Purchase of medium-term notes may not exceed 30% of the cost value of the fund with no more than 15% of the cost value of the fund rated below “AA” or its equivalent by at least two NRSROs. No more than 5% of the fund (at time of purchase) may be invested in any one corporate name, including the parent corporation or subsidiaries. x Any collateralized mortgage obligations, mortgage-backed or other pay-through bond, equipment lease-backed certificate, or consumer receivable -backed bond. Securities eligible for investment under this section shall be rated in a rating category of “AA” by a nationally recognized statistical rating organization and have a maximum remaining maturity of 5 years or less. Investment in this type of securities may not exceed 20% of the cost value of the fund. x Bonds, notes, warrants or other evidences of indebtedness of any local agency of this state. x Registered state warrants or treasury notes or bonds of this state. x United States dollar denominated senior unse cured unsubordinated obligations issued or unconditionally guaranteed by the Internationa l Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and el igible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 10 percent of the City's moneys that may be invested pursuant to this section. x Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
o Mutual Funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. N o m o r e t h a n 1 0 % o f t h e t o t a l p o r t f o l i o m a y b e i n v e s t e d i n s h a r e s o f a n y o n e mutual fund.
o Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
164
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
79 2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
o No more than 20% of the total portfolio may be invested in these securities.

The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022 include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage backed securities, entitle their purchasers to receive a share of the cash flows from a pool of asse ts such as principal and interest repayments from a pool of mortgages (such as collateralized mortgage obligations) or credit card receivables.

At June 30, 2022, the City had $72,748,982 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of .98712 was used to calculate the fair value of the investments in LAIF. 165
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
80 2. CASH AND INVESTMENTS, Continued
D. Investments Authorized by Debt Agreements
The above investments do not address investment in debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of debt agreements, rather than the general provisions of the Code or the City’s investment policy.

E. Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment po licy states that weighted average of the City’s portfolio will be limited to two and a half years. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

At June 30, 2022, the City had the following investments and original maturities:
166
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
81 2. CASH AND INVESTMENTS, Continued
F. Credit Risk
The City's investment in medium-term notes consisted of investments with various corporations and were rated “Baa2” to “Aa2” by Moody’s and “BBB+” to “AA-” by Standard & Poor’s. Investment in g o v e r n m e n t a g e n c i e s i s s u e d b y t h e F e d e r a l N a t i onal Mortgage Association, the Federal Home Loan Banks, and the Federal Home Loan Mortgage Corporation were rated “Aaa” by Moody’s and “AA+” by Standard & Poor’s. Asset-Backed Securities were rated “Aaa” by Moody’s and “AAA” by Standard & Poor’s.

All securities were investment grade and were lega l under State and City law. Investments in U.S.

Treasury securities are not considered to have credit risk; therefore, their credit quality is not disclosed.

As of June 30, 2022, the City's investments in external investment pools and money market mutual funds are unrated.

G. Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recove r deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpar ty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. At June 30, 2022, none of the City’s deposits or investments were subject to custodial credit risk.

H. Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. In accordance with the disclosure requirement of GASB Statement No. 40, if the City has invested more than 5% of its investment in any one issuer, it is exposed to credit risk. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement. During the fiscal year ending June 30, 2022, the City did not hold any investments in any one issuer (other than mutual funds and external investment pools) that represents 5% or more of total City investments.
167
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
82 2. CASH AND INVESTMENTS, Continued
I. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of the City’s investments as of June 30, 2022:
168
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
83 3. INTERFUND ACTIVITIES
A. Due To/From Other Funds
At June 30, 2022, the City’s due to/from other fund balances comprised of the following:

The current year due to/from other fund balances are to cover negative cash balances in the Community Development Fund and Grants Fund and are expected to be repaid in the next fiscal year when funds are available.

B. Advances To/From Other Funds
At June 30, 2022, the City’s advances to/from other fund balances comprised of the following:

During prior years, the Community Development Fund, included in nonmajor governmental funds, loaned $5,961,399 to the Ontario Housing Authority for the acquisition, relocation, and rehabilitation of various properties. In fiscal year 2019-2020, the City Council authorized an internal financing of $102,069,692 to pay down 100% of the City’s June 30, 2018 unfunded liability for the Miscellaneous Plan within the California Public Employees’ Retirement System (CalPERS). This internal loan bears interest ranging between 1% and 2% with principal and interest payable annually over 25 years beginning fiscal year 2020-2021.
169
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
84 3. INTERFUND ACTIVITIES, Continued
C. Transfers In/Out
For the year ended June 30, 2022, the City’s transfers in/out comprised of the following:

General Fund transfers out to the Capital Projects Fund pertains to various City construction projects, including Bon View Sports Park, C-Block Parking Structure, Economic Development Office construction, landscaping installations, and pr ior year CIP carryforwards. Transfers from the General Fund to nonmajor governmental funds include monthly budgeted amounts. The transfers to internal service funds include regular OPEB budgeted amou nts, funding for economic development activities of $16 million, future PERS unfunded liabilities of $15 million, pu blic safety equipment funding of $1 million, and funding for a computer aided dispatch program in Broadband/Fiber for $8 million.

Transfers from nonmajor governmental funds to the Impact Fees Fund included budgeted amounts and two lump sum payments for funding of the services related to the new Fire Station 9 in Ontario Ranch.

4. NOTES AND LOANS RECEIVABLE
The City’s loans receivable were comprised of the following at June 30, 2022:

The City provides loans to City police officers to assist them in acquiring personal residence within the City or reducing an existing loan on an officer’s residence within the City. The loans are non-interest bearing until maturity, and thereafter interest shall be 7% per annum. The outstanding balance at June 30, 2022, was $33,000.
170
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
85 4. NOTES AND LOANS RECEIVABLE, Continued
In order to assist those individuals and families who are the most in need, the former Ontario Redevelopment Agency’s Combined Low and Moderate Housing Fund provided down payment assistance and deferred repayment loans to low and moderate income residents for the acquisition and rehabilitation of single-family homes, condominiums or townhouses located within the Ontario HUD Revitalization Target Area. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2022, was $2,292,095.

On June 7, 1994, the former Ontario Redevelopment Agency's Combined Low and Moderate Housing Fund loaned $43,000 to a developer to finance the purchase of low and moderate income property located outside of redevelopment project areas. The note is non-interest bearing and was due in full on March 7, 1995. A new note was negotiated on November 11, 1996 and will ma ture on October 31, 2026. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2022, was $43,000.

On June 7, 1994, the former Ontario Redevelopment Agency's Combined Low and Moderate Housing Fund loaned $39,000 to a developer to finance the purchase of low and moderate income property located outside of redevelopment project areas. The note is non-interest bearing and was due in full on March 7, 1995. A new note was negotiated on November 8, 1996 and will mature on October 31, 2026. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2022, was $39,000.

On March 16, 1993, the former Ontario Redevelopment Agency accepted a note receivable of $112,000 from a developer as consideration for housing located outside of the redevelopment areas. The note is noninterest bearing and is due and payable upon the sale or transfer of property. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The unpaid principal balance at June 30, 2022, was $77,000.

On May 29, 1997, the former Ontario Redevelopment Agency agreed to loan up to $2,656,200 to Ontario Housing Investors, L.P. to finance development of re sidential improvements to the Ground Lease premises as defined in a disposition and deve lopment agreement dated March 19, 1996. The note bears interest at the rate of 3% per annum. The note is due and payable either: (a) on the first day of the first full calendar month following the date of the last disbursement of the agency loan proceeds, or (b) on the first day of the 15th full calendar month following the date of recordation of the Agency Loan Deed and Trust in the Official Records of the County. Upon dissolution of the Ontario Redeve lopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2022, was $4,758,093.

On September 11, 2003, the former Ontario Redevelopment Agency and Ontario Housing Investors entered into a Residual Receipts promissory note in the amount of $487,408. The loan bears interest of 7% per annum and requires principal and interest payments from residual receipts. On May 1, 2007, the Authority agreed to provide a gap loan in the amount of $168,469. The loan has a 40-year term and a 6% simple interest per annum.

Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2022, was $1,151,546. 171
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
86 4. NOTES AND LOANS RECEIVABLE, Continued
On February 15, 2005, the City Council approved the Ontario OPEN (Ownership Program Enhancing Neighborhoods) House Program to assist low-income first-time homebuyers. This program was funded with American Dream Down Payment Initiative (ADDI) funds from HUD. As of June 30, 2022, 4 households have been assisted with these funds. The receivable at June 30, 2022, was $28,740.

Pursuant to the disposition and development agreement dated August 12, 2003, between the Ontario Housing Authority and the Ontario Senior Housing, Inc., the Authority accepted a promissory note for the principal amount of $950,000. This promissory note bears a rate of 0% per annum and is secured by a deed of trust. The receivable balance at June 30, 2022, was $922,636.

The City uses Community Development Block Grant (CDBG) and HOME funds in a custodial capacity to provide housing rehabilitation loans and grants to eligible applicants. The City makes deferred loans to low and moderate income families based on income and residency guidelines. These loans have been secured by a note and deed of trust. The deferred loan is due an d payable when the title of the property changes. The balance at June 30, 2022, was $2,449,325.

Pursuant to the disposition and development agreement between the Ontario Housing Authority and D Street Senior Housing, Inc., the Authority approved a gap loan in the amount of $1,276,909 to provide new housing development opportunities to address regional needs. The Agency gap loan is a zero percent residual receipts note that will be paid from available cash flow over the term of the affordable covenant period of the project. The receivable balance at June 30, 2022, was $1,200,909.

Pursuant to the disposition and development agre ement between the Ontario Housing Authority and Ontario Senior Housing Partners, LP, the Authority ap proved a gap loan in the amount of $5,155,500 to provide new housing development opportunities to addr ess regional needs. The Authority’s gap loan will have a 55-year term with an interest rate of 1% simple interest. The loan will be paid back utilizing 85% of the residual cash flow. Any remaining balance at the end of the 55-year term is due and payable. The receivable balance at June 30, 2022, was $5,449,512.

The Ontario Housing Authority was approved a maximum of $1,590,300 BEGIN (Building Equity and Growth In Neighborhoods) funds provided by th e California Department of Housing and Community Development. BEGIN funds are used for down payment assistance loans to moderate households in the form of a deferred payment loan with a 30-year term and a 3% deferred simple interest per annum, the receivable balance at June 30, 2022, was $229,080.

On February 21, 2014, the Ontario Housing Authority entered into a HOME loan agreement with Mercy House Living Centers. The loan was made in the amount of $1,000,000 to be used to finance the purchase price of property and up to $523,858 in rehabilitation costs. The rehabilitation costs balance of $523,858 was placed in a bank account where Mercy House is allowed to draw monies, as needed, to rehabilitate the property. As these monies are drawn from the bank, the amount is added to the loans receivable balance. The receivable balance at June 30, 2022, was $1,523,858.
172
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
87 4. NOTES AND LOANS RECEIVABLE, Continued
On January 22, 2018, the Ontario Housing Authority entered into a HOME loan agreement with Mercy House CHDO, Inc. in the amount of $1,145,000 to finance th e acquisition, rehabilitation and operation of a multi- family property located at 411 North Parkside Avenue. The loan is an interest-free residual receipts note with a 30-year term. The receivable balance at June 30, 2022, was $1,145,000.

The Ontario Housing Authority entered into two CalHo me Mortgage Assistance Program totaling $108,200 to assist in the purchase of single family residences. The loans have simple interest at the rate of 1% with repayment occurring either 30 years from the date of record ation, upon sale or transfer of the property, or if they fail to occupy the home as a primary residence. The receivable balance at June 30, 2022, was $123,158.

On November 15, 2018, pursuant to the disposition and development agreement between the Ontario Housing Authority and Ontario Emporia Housing Partners , L.P., the Authority approved a gap loan in the amount of $15,700,000 for the development of a 75-unit affordable housing development. The Authority’s gap loan is a residual receipt note that will be paid ba ck over a 65-year term. The land purchase price of the loan is $3,400,000 with a 20-year term and a 3.31% interest rate. The remaining portion of the loan, $12,300,000, bears a rate of 0% per annum. At June 30, 2022 the outstanding principal balance was $15,593,610.

Pursuant to the disposition and development agreement between the Ontario Housing Authority and the National Community Renaissance of California, the Authority approved a gap loan in the amount of $2,000,000 to finance the cash portion of the purchase price and other project costs that will provide affordable multifamily rental housing. The loan is due and paya ble on the 55th anniversary of the Recordation Date bearing a simple interest rate of 3.00% per annum. At June 30, 2022 the outstanding principal balance was $2,000,000 with accrued interest of $10,000, totaling $3,962,200.

On March 21, 2019, pursuant to the Transformative Climate Communities (TCC) Loan Agreement the City funded a loan to Virginia-Holt Housin g, LP in the amount of $14,729,325 to be used for the development, operation, and maintenance of a residential rental Affordable Housing Development currently known as Vista Verde. The City is responsible for submitting al l invoices and reporting documents to the California Strategic Growth Council (SGC) and disbursing all grant/loan funds to all applicants/partners. Any unused funds that have not been expended according to the agreement gives the City the right to take action either with developer forfeiture of funds or repayment of previously expended funds. In accordance with the agreement the state will reimburse the City for the making of the TCC Loan Agreement. At June 30, 2022 the outstanding principal balance was $14,729,325.

On March 2, 2010, the former Ontario Redevelopment Agency provided a loan amount of $557,966 to the Ontario Housing Authority. It was for the acquisition of the Mission and Oakland site. The loan is due and payable upon demand by the Ontario Redevelopment Agency with an annual simple interest of 6%. The receivable balance at June 30, 2022 was $970,861.

Other note receivable amounts at June 30, 2022 included $8,852 for code abatement loan program and $25,000 of Gibson advances.
173
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
88 5. LEASES RECEIVABLE
Sprint Nextel Property Services 2001
In January 2001, the City entered into a lease with Sprint Nextel Property Services. Under the lease, the lessee pays the City $1,000 per month for 10 years, with a 3% increase every year in exchange for use of the cell tower site. The lease term shall automatically be extended for 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. If the lessee remains in possession of the site at the expiration of the final renewal term, the lease shall continue upon the same terms and conditions for additional periods of 1- year, and for like annual periods thereafter, unless terminated by either party. The City estimates that the lessee will extend the lease term until 2030. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $17,787 of lease revenue and $5,781 of interest revenue under the lease.

Verizon Wireless (American Tower)
In August 2004, the City entered into a lease with Verizon Wireless. Under the lease, the lessee pays the City $1,600 per month for 10 years, with an increase every year equal to the greater of the increase in the Consumer Price Index All Urban Consumers of the Los Angeles Or ange Riverside County area during the period 12- month period or 3%, in exchange for use of the cell tower site. The lease term shall be automatically extended for up to 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The City estimates that the lessee will extend the lease term until 2034. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. Fo r the year ended June 30, 2022, the City recognized $21,516 of lease revenue and $11,799 of interest revenue under the lease.

T-Mobile USA, Inc. (Vertical Bridge)
In October 1999, the City entered into a lease with T-Mobile USA, Inc. Under the lease, the lessee pays the City $2,000 per month for 5 years, with an increase every year equal to the greater of 4% or an amount equal to the increase in the Consumer Price Index All Ur ban Consumers of the Los Angeles Orange Riverside County area during the period 12-month period, provid ed that no annual increase shall exceed 10%, in exchange for use of the cell tower site. The lease term sh all be automatically extended for up to 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. If the lessee remains in possession of the site at the expiration of the final renewal term without a written agreement, the lease shall be deemed month-to-month. The City estimates that the lessee will extend the lease term until 2029. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $39,889 of lease revenue and $11,930 of interest revenue under the lease. 174
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
89 5. LEASES RECEIVABLE, Continued
Wells Fargo
In July 1990, the City entered into a lease with Wells Fa rgo. Under the lease, the lessee pays the City $12,100 per month for 5 years in exchange for use of the commercial lease space with an additional five years optional renewal term. The City estimates that the lessee will exte nd the lease term until 2025. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-yea r U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $128,748 of lease revenue and $16,452 of interest revenue under the lease.

Verizon Wireless (NG60439 – Palmetto)
In October 2004, the City entered into a lease with Verizon Wireless. Under the lease, the lessee pays the City $1,600 per month for 10 years, with an increase every year equal to the greater of the increase in the Consumer Price Index or 3%, in exchange for use of the cell tower site. The City estimates that the lessee will extend the lease term until 2034. The lease receivable is measur ed as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S.

Treasury Rate. For the year ended June 30, 2022, the City recognized $24,163 of lease revenue and $12,987 of interest revenue under the lease.

T-Mobile USA, Inc. (Crown Castle)
In December 2010, the City entered into a lease with T- Mobile USA, Inc. Under the lease, the lessee pays the City $2,000 per month for 5 years, with an increase every year equal to the greater 4% or an amount equal to the increase in the Consumer Price Index of Los Angeles Orange Riverside County Area during the prior 12- month period for use of the cell tower site. The lease term shall be automatically extended for up to 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The City estimates that the lessee will extend the lease term until 2036. The leas e receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $52,765 of lease revenue and $26,916 of interest revenue under the lease. 175
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
90 5. LEASES RECEIVABLE, Continued
American Tower, Inc.

In April 2007, the City entered into a lease with American Tower, Inc. (formerly Royal Street Communications). Under the lease, the lessee pays the City $2,000 per month for 10 years, with an increase every year equal 5% for use of the cell tower site. The le ase term shall be automatically extended for up to 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The City estimates that the lessee will extend the lease term until 2037. The leas e receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $24,051 of lease revenue and $22,713 of interest revenue under the lease.

AT&T
In November 2006, the City entered into a lease with AT&T (formerly Cingular Wireless). Under the lease, the lessee pays the City $1,375 per month for 10 years, with a 3% increase every year in exchange for use of the cell tower site. The lease term shall automatically be extended for 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The Ci ty estimates that the lessee will extend the lease term until 2036. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a disc ount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recogn ized $19,073 of lease revenue and $13,908 of interest revenue under the lease.

U.S. Auctions
In October 2018, the City entered into a lease with U.S. Auctions. Under the lease, the lessee pays the City $26,135 per month for 3 years. The lessee shall have the option to extend the term by 1 additional year. The City estimates that the lessee will extend the lease term until October 2022. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $306,586 of lease revenue and $7,034 of interest revenue under the lease.

Verizon Wireless (NG182885 – Metrolink)
In December 2017, the City entered into a lease with Verizon Wireless. Under the lease, the lessee pays the City $3,326 per month for 5 years, with a 3.5% increase every year in exchange for use of the cell tower site.

The lease term shall automatically be extended for 4 additional 5-year periods unless the lessee elects to not exercise such renewal term. The City estimates that the lessee will extend the lease term until December 2022.

The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.98%, which is the 10-year U.S. Treasury Rate. For the year ended June 30, 2022, the City recognized $39,164 of lease revenue and $1,099 of interest revenue under the lease.
176
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
91 5. LEASES RECEIVABLE, Continued
Verizon Wireless (NG167669 – Creekside-Stallion)
In December 2019, the City entered into a lease with Verizon Wireless. Under the lease, the lessee pays the City $3,105 per month for 5 years, with a 3.5% increase every year in exchange for use of the cell tower site.

The future lease payments on the leases as of June 30, 2022 were as follows:

Governmental Activities
Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 18,478 $ 5,797 $ 22,049 $ 12,266 $ 42,554 $ 11,856 $ 24,778 $ 13,488 $ 24,993 $ 24,109 $ 2024 19,775 5,229 23,759 11,586 46,597 10,533 26,690 12,723 28,237 23,321 2025 21,132 4,621 25,551 10,853 50,900 9,087 28,695 11,901 31,703 22,432 2026 22,554 3,972 27,430 10,066 55,478 7,508 30,796 11,017 35,404 21,438 2027 24,042 3,280 29,399 9,222 60,346 5,789 32,998 10,070 39,355 20,330 2028-2032 96,928 5,356 179,947 31,251 161,086 5,969 201,838 33,677 265,795 80,488 2033-2037 - - 113,424 4,474 - - 117,966 4,345 394,672 30,390 Total 202,909$ 28,255 $ 421,559 $ 89,718 $ 416,961 $ 50,742 $ 463,761 $ 97,221 $ 820,159 $ 222,508 $ Year Ending
June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2023 20,670 $ 14,622 $ 103,894 $ 646 $ 20,477$ 178 $ 36,426$ 2,363 $ 314,319 $ 85,325 $ 2024 22,368 13,983 - - - - 38,903 1,244 206,329 78,619 2025 24,149 13,292 - - - - 20,477 178 202,607 72,364 2026 26,017 12,547 - - - - - - 197,679 66,548 2027 27,976 11,745 - - - - - - 214,116 60,436 2028-2032 172,704 44,507 - - - - - - 1,078,298 201,248 2033-2037 206,123 14,424 - - - - - - 832,185 53,633 Total 500,007$ 125,120 $ 103,894 $ 646 $ 20,477$ 178 $ 95,806$ 3,785 $ 3,045,533$ 618,173 $ Year Ending
June 30, Principal Interest Principal Interest Principal Interest 2023 132,638$ 12,563 $ 52,330 $ 27,900 $ 184,968 $ 40,463 $ 2024 136,644 8,556 54,520 26,311 191,164 34,867 2025 140,773 4,427 56,782 24,655 197,555 29,082 2026 71,973 627 59,117 22,932 131,090 23,559 2027 - - 61,526 21,137 61,526 21,137 2028-2032 - - 346,575 76,136 346,575 76,136 2033-2037 - - 329,204 20,521 329,204 20,521 Total 482,028$ 26,173 $ 960,054 $ 219,592 $ 1,442,082 $ 245,765 $ Total
Sprint Nextel 2001 (American Tower) (Vertical Bridge)
Wells Fargo
(Palmetto) American Tower, Inc.

AT&T U.S. Auction (Metrolink) (Creekside-Stallion)
Total
Business-Type Activities
Verizon Wireless T-Mobile USA, Inc. Verizon Wireless
T-Mobile USA, Inc.

Verizon Wireless Verizon Wireless
(Crown Castle)
177
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
92 6. CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the government-wide financial statements. The City elected to use the “modified approach” for its infrastructure street pavement system as defined by GASB Statement No. 34. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the “modified approach” is presented in the Required Supplementary Information section of this report. All other capital assets including other infr astructure systems were reported using the basic approach, whereby accumulated depreciation and depreciation expense has been recorded.

The following is a summary of capital assets for governmental activities:

Depreciation expense on governmental activities capi tal assets was charged to programs/functions of the primary government as follows:
178
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
93 6. CAPITAL ASSETS, Continued
The following is a summary of capital assets for business-type activities:

Depreciation expense on business-type activities capi tal assets was charged to programs/functions of the primary government as follows:
179
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
94 7. COMPENSATED ABSENCES
As described in Note 1, it is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay is accrued when incurred in the government-wide financial statements and in the proprietary fund financial statements. For the governmental activities, the liability will be paid in future years by the General Fund and for business-type activities by the Proprietary Funds. The following is a summary of changes in compensated absences for the year ended June 30, 2022:

8. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of changes in governmental activities long-term debt for the year ended June 30, 2022:

There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. 180
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
95 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2013 Lease Revenue Bonds
In August 2013, the Ontario Public Financing Authority issued revenue bonds in the amount of $33,390,000 to finance construction of City public facilities. The bonds dated August 20, 2013, and issued at a discount of $380,848 mature in 2043, and are payable semiannually on April 1 and October 1 of each year, commencing April 2014, from base rental payments to be made by the City for the right to the use certain real property and improvements of the City pursuant to a Lease Agreement, dated September 1, 2013. The bonds were refunded during the year ended June 30, 2022 by the issuance of the 2021 Lease Revenue Bonds.
2017 Lease Revenue Refunding Bonds
In July 2017, the Ontario Public Financing Authori ty issued lease revenue bonds in the amount of $26,810,000 to provide funds to refinance the City’s remaining lease payment obligations under the City’s 2001 Lease Revenue Bonds and to fully refund the 2007 Lease Revenue Bonds. The bonds dated July 1, 2018, and issued at a premium of $3,260,875, are payable semiannually on November 1 and May 1 of each year, commencing May 1, 2019, and mature in 2042. The bonds are payable from base rental payments to be made by the City for the right to the use certain real property and improvements of the City pursuant to a Lease Agreement, dated July 1, 2018. The balanc e at June 30, 2022, including the unamortized bond premium of $2,756,402 amounted to $27,776,402.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
181
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
96 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority under the Lease Agreement, may terminate the Lease Agreement and recover certain damages from the City, or may retain the Le ase Agreement and hold the City liable for all base rental payments thereunder on an annual basis.
2021 Lease Revenue Refunding Bonds
In December 2021, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $35,045,000 to provide funds to fully refund the 20 13 Lease Revenue Bonds. The bonds dated December 1, 2021, are payable semiannually on April 1 and October 1 of each year, commencing April 1, 2022, and mature in 2043. The bonds are payable from base rental payments to be made by the City for the right to the use certain real property and improvements of the City pursuant to a Lease Agreement, dated December 1, 2021. The refunding resulted in an overall debt service savings of $7,665,166. The net present value of the debt service savings is called an econom ic gain and amounted to $4,017,520. The balance at June 30, 2022, amounted to $35,045,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
182
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
97 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2022 Lease Revenue Refunding Bonds
In May 2022, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $90,830,000 to finance the acquisition and construction of capital projects. The bonds dated May 26, 2022, are payable semiannually on May 1 and November 1 of each year, commencing November 1, 2022, and mature in 2042. The bonds are payable from base rental payments to be made by the City for the right to the use certain real property and improvements of the City pursuant to a Lease Agreement, dated June 1, 2022. The balance at June 30, 2022, including the unamortized bond premium of $10,651,765 amounted to $101,481,765.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Pension Obligation Bonds
In May 2020, the City of Ontario issued taxable pension obligation bonds in the amount of $236,585,000 to pay a portion of the City’s unfunded pension liability to the California Public Employees’ Retirement System (“CalPERS”) for the benefit of the City public safety police and fire employees. The bonds are payable semiannually on June 1 and December 1 of each year, commencing June 1, 2020 and maturing in 2050 at an interest rate ranging from 1.971% to 3.379% per annum. The balance at June 30, 2022 amounted to $228,855,000.

For the Years
Ending June 30, Principal Interest Total
2023 - $ 3,986,428$ 3,986,428 $ 2024 1,335,000 4,508,125 5,843,125
2025 1,405,000 4,439,625 5,844,625
2026 1,480,000 4,367,500 5,847,500
2027 1,555,000 4,291,625 5,846,625
2028-2032 9,050,000 20,177,750 29,227,750 2033-2037 11,615,000 17,607,375 29,222,375 2038-2042 14,920,000 14,307,000 29,227,000 2043-2047 19,160,000 10,068,250 29,228,250 2048-2052 24,605,000 4,624,875 29,229,875 2053 5,705,000 142,625 5,847,625
Total 90,830,000 $ 88,521,178 $ 179,351,178 $
2022 Lease Revenue Bonds
183
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
98 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

Pursuant to the Retirement Law, the City Council is required to make the appropriations to pay the amounts required to be paid by the City, includin g the portion of the unfunded pension liability. The remedies available to the Trustee and the Owners of the Bonds upon an event of default are dependent upon regulatory and judicial actions. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. In the case of any bankruptcy proceeding involving the City, the rights of the Owners could be modified at the direction of the court.

Loan Payable
On May 19, 2015, the Ontario Housing Authority ( Authority) negotiated the purchase of the Vesta property and assumed a promissory note and deed from Housing Opportunities Group Inc. (HOGI).

HOGI entered into a promissory note secured by a subordinated deed of trust with the Inland Fair Housing and Mediation Board (Board) and agreed to assign the Authority such property and promissory note with a balance of $158,566, effective September 11, 2015. Monthly payments in the amount of $1,000, shall commence one year after the effective date. The loan is payable within 20 years from the effective date at zero interest. A monthly payment may be de ferred by Borrower, upon providing notice to the Lender, should Borrower have insufficient net revenue from operation of the Property for the relevant month, as determined by Borrower in its reasonable discretion. In such case, the subsequent month's payment shall remain One Thousand Dollars ($1,000), and the payment period shall be extended. No monthly payment was received during fiscal year 2021-2022. The outstanding balance at June 30, 2022 amounted to $90,566.
184
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
99 8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding lo an as of June 30, 2022, including interest, are as follows:

Loan Payable – Fiber Broadband
In August 2021, the City entered into a lease-leaseback agreement with Citizens Business Bank in an amount not to exceed $18,250,000 for the purpose of financing fiber optic broadband network equipment.

The loan bears a maximum interest rate of 3.55%. Interest payments are due annually commencing August 12, 2022. Principal payments are due annually commencing August 12, 2023. At June 30, 2022, the outstanding balance of the was $18,031,000.

The annual requirements to amortize the outstanding loan as of June 30, 2022, including interest, are as follows:
185
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
100

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Installment Sale
In November 2019, the City entered into an installm ent sale agreement in the amount of $33,100,000 for the purchase of a parcel of land in the Ontario Ranch for the future Great Park. The purchase and sale agreement includes an initial payment amount of $8,100,000 to be paid at close of the escrow and five (5) equal annual payments of $5,000,000 each to the seller with an imputed interest rate of 1.690%. The outstanding balance at June 30, 2022 amounted to $14,506,926.

The annual requirements for the installment sale agreement outstanding as of June 30, 2022, including imputed interest, as follows:

Climatec Loan
The energy related improvements being financed are to be installed pursuant to an Energy Services Agreement between the City and Climatec, LLC of Phoenix AZ approved by the City Council on July 21, 2020. Such agreement is being implemented in acco rdance with California Government Code Section 4217. 10 to 4217. 18; in which the City Council adopted findings that the cost to the City to implement the energy related improvements are less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City absent of purchasing the energy improvements.

The efficient energy improvements funded under the Lease Agreement will be installed at the Toyota Arena; the Convention Center; the Police Department; the Ovitt Family Library; and the City Hall Annex primarily. Project completion timeline is approximately 18 months. 186
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
101

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
California Energy Commission Loan
In June 2021, the City entered into a direct borrowing loan agreement with the California Energy Commission in the amount of $2,898,220. The purpose of the loan is to provide funding for the installation of LED lights. The loan bears a 1% interest rate an d is due in semi-annual payments in December and June through December 2030. During the year ended June 30, 2022, no principal repayment on the loan was paid and the California Energy Commission amended the repayment schedule.

The annual debt service requirements on the loan are as follows:
187
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
102

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Advances from Successor Agency
During previous fiscal years, the former Redevelopment Agency advanced the Capital Projects fund $1,600,000 for the purchase of property adjacent to Ontario Mills. There is no repayment schedule for the advances.

B. Business-Type Activities
The following is a summary of changes in business-type activities long-term debt for the year ended June 30, 2022:
2013 Water Revenue Bonds
In September 2013, the Ontario Public Financing Authority issued revenue bonds in the amount of $74,545,000 to finance the acquisition and construction of certain improvements to the water enterprise of the City of Ontario, and refinance an installment payment obligation of the City and the related City of Ontario Certificates of Participation (2004 Water System Improvement Project). The bonds dated September 10, 2013, and issued at a premium of $2,362,578 mature in 2043, and are payable semiannually on January 1 and July 1 of each year, commencing January 2014, from certain revenues consisting primarily of installment payments to be made by the City to the Ontario Public Financing Authority under an Installment Purchase Agreement dated September 1, 2013 between the City and the Authority. The bonds were refunded during the year ended June 30, 2022 by the issuance of the 2021 Water Revenue Bonds.
2021 Water Revenue Bonds
In December 2021, the City issued revenue bonds in the amount of $67,550,000 to refund all of the outstanding Ontario Public Financing Authority 2013 Water Revenue Bonds. The bonds dated December 2, 2021, mature in 2043, and are payable semiannually on February 1 and August 1 of each year, commencing August 1, 2022, from net revenues, whic h consist of gross revenues of the City’s Water System remaining after the payment of maintenance and operation costs of the City’s Water System. The refunding resulted in an overall debt service saving s of $14,912,873. The net present value of the debt service savings is called an economic gain and amou nted to $7,816,238. The outstanding balance on the bonds at June 30, 2022 amounted to $67,550,000.
188
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
103

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:

The outstanding bonds are secured by a pledge of revenues of the Water System and payable solely from net revenues of the Water System. The bonds contain a provision that if any event of default should occur by the City, it will not result in the loss of the Water System or water rights held by or on behalf of the City or the Water System. Furthermore, any remedies available upon the occurrence of an event of default under the Indenture are in many respects dependent upon judicial actions.

9. NON-CITY OBLIGATIONS
A. Special Assessment Bonds
The City has entered into a number of Special Assessment Bond programs. The City of Ontario is not obligated in any manner for the Special Assessment Bonds as the bonds are secured by unpaid assessments against the property owners. Accordingly, the City is only acting as an agent for the property owners/bondholders in collecting and forwarding the special assessments. Special Assessment Bonds payable at June 30, 2022, totaled $162,040,000. This amount is not reported in the City’s financial statements. The construction phase is reported in the Capital Projects Funds. Likewise, amounts recorded in the Custodial Funds repr esent only debt service activities, i.e., collection from property owners and payment to bondholders.
189
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
104

9. NON-CITY OBLIGATIONS, Continued
B. Other Bond and Loan Programs
T h e C i t y h a s e n t e r e d i n t o a n u m b e r o f b o n d p r o g r a m s t o p r o v i d e l o w - i n t e r e s t f i n a n c i n g f o r v a r i o u s residential and industrial developments within the City. Although the City has arranged these financing programs, these debts are not payable from any revenues or assets of the City. Neither the faith or credit, nor the taxing power of the City, or any political subdivision of the City is pledged to repay the indebtedness. Generally, the bondholders may look only to assets held by trustees for security on the indebtedness. Accordingly, since th ese debts do not constitute an obligation of the City, they are not reflected in the accompanying financial statements. The bond programs are as follows:
190
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
105

10. DEFINED BENEFIT PENSION PLAN
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2022:

A. General Information about the Pension Plans
Plan Descriptions – The City of Ontario contributes to th e California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS’ annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost- of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The plans’ provisions and benefits in effect at June 30, 2022 are summarized as follows:
191
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
106

10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued Employees Covered – As of the June 30, 2021 measurement date, the following employees were covered by the benefit terms of the plans:
192
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
107

10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued Contributions - Section 20814(c) of the California Public Employees’ Retirement Law (PERSL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annu al actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the City to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2022, the contributions that were recognized as a reduction to the net pension liability were $5,232,930, $7,489,804, and $4,913,650, for the Miscellaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively.

B. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021 using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard updated procedures.

A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions: 193 City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
108

10. DEFINED BENEFIT PENSION PLAN, Continued
B. Net Pension Liability, Continued
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

Discount Rate – The discount rate used to measure the to tal pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, staff took into account both short-term and long- term market return expectations as well as the expe cted pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent ex pected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate ca lculated above and rounded down to the nearest one quarter of one percent.
194
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
109

10. DEFINED BENEFIT PENSION PLAN, Continued
B. Net Pension Liability, Continued
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions ap plied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014.

C. Changes in the Net Pension Liability
The changes in the net pension liability for each plan follows:
195
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
110

10. DEFINED BENEFIT PENSION PLAN, Continued
C. Changes in the Net Pension Liability, Continued
196
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
111

10. DEFINED BENEFIT PENSION PLAN, Continued
C. Changes in the Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were ca lculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the fu nding actuarial valuation report due to several reasons. First, for the accoun ting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OP EB expense included as assets. These amounts are excluded for rate setting purposes in the funding actu arial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2020), the combined net pension asset for the Miscellaneous Plan, the Safety Police Plan and the Safety Fire Plan was $150,460,651. For the measurement period ending June 30, 2021, (the measurement date), the City recognized pension (income) expense of $(3,094,844), $3,396,778, and $2,197,007 for the Misce llaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively. Note that no adjustments have been made for contributions subsequent to the measurement date.
197
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
112

10. DEFINED BENEFIT PENSION PLAN, Continued
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions, Continued As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

No amounts reported as deferred outflows of resources for the Miscellaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively, represent contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the subsequent fiscal period rather than in the current fiscal period. 198
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
113

10. DEFINED BENEFIT PENSION PLAN, Continued
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions, Continued Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

11. OTHER POST-EMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB plan amounts for the year ended June 30, 2022:

A. General Information about the City’s OPEB Plan
Plan Description – The City has established the City of Ontario Retiree Healthcare Plan, an agent multiple employer defined benefit healthcare plan. The plan, which is administered by the CalPERS, provides health insurance for its retired employees according to the Personnel Rules and Regulations for each of the ten employee groups. The City pays monthly health insurance benefits subjects to caps which vary by bargaining group. The authority to do so is incl uded annually in the Memorandum of Understanding between the City and each of its employee groups and ultimately passed by Council action.

Employees Covered – At June 30, 2021, the measurement date, the following numbers of participants were covered by the benefit terms:
199
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
114

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
A. General Information about the City’s OPEB Plan, Continued Contributions – The City participates in the California Employers’ Retiree Benefit Trust (CERBT) administered by CalPERS for purposes of funding the required retiree medical payments and is evaluating various options for funding its post-employment benefits liability. For fiscal year 2021-2022, the City paid $6,570,084 in benefits and made a one-time contribution to the trust (CERBT) of $5,076,624.

Thereafter, the City will contribute $5,000,000 per year adjusted for inflation.

B. Total OPEB Liability
The City's net OPEB liability was measured as of June 30, 2021 for the measurement period July 1, 2020 through June 30, 2021. The net OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial assumptions:

Actuarial Assumptions – The June 30, 2019 valuation was rolled forward to determine the June 30, 2022 total pension liability, based on the following actuarial methods and assumptions:
200
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
115

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
B. Total OPEB Liability, Continued
Discount Rate – The discount rate used to measure the net OPEB liability was 6.25%. The discount rate is based on the long-term expected asset return described below:

C. Changes in the Net OPEB Liability
The changes in the net OPEB liability (asset) for the plan are as follows:

The net OPEB liability for the City’s plan has been liquidated by funding from governmental funds and proprietary funds.
201
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
116

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2021:

E. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated usin g healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:

F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB income of $22,548,955. At June 30, 2022, the City's deferred outflows of resources and defe rred inflows of resources related to OPEB from the following sources:

The $6,642,354 reported as deferred outflows of resources represents contributions made after the measurement date of the OPEB liability but before the end of the City's reporting period and will be recognized as a reduction of the OPEB liability in the subsequent fiscal period rather than in the current fiscal period.
202
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
117

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

12. SELF-INSURANCE PROGRAM
On December 22, 1974, the City initiated a program of self-insurance for workers’ compensation liability claims. The City will pay all claims up to $750,000 per claim; amounts in excess of $750,000 are covered through an outside insurance carrier.

On January 1, 1975, the City initiated a program of self-insurance for unemployment liability claims. By this action, the City will pay all claims based on the individual reimbursement account method, as provided by the State of California.

On April 6, 1979, the City initiated a program of self-insurance for general liability claims. At present, the City will pay all claims up to $2,000,000 per clai m arising from general liability claim actions brought against the City. Amounts in excess of $2,000,000 pe r claim are covered by the Authority for California Cities Excess Liability (ACCEL).

ACCEL is organized under a joint powers agreement pursuant to the California Government Code. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self- insured losses and to purchase excess insurance co verage. ACCEL pools catast rophic general liability, automobile liability and public officials errors and omissions losses. ACCEL members share risk from $1,000,000 to $4,000,000, and insurance in layers exceeding $5,000,000.

The City has not experienced a significant reduction in insurance coverage from coverage in the prior year. Additionally, the amount of settlements has not exceeded budgeted coverage for each of the past three fiscal years.
203
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
118

12. SELF-INSURANCE PROGRAM, Continued
The City has entered into contracts with third-party administrators who supervise the general liability and worker’s compensation programs. When it is probable that a claims liability has been incurred and the amount of the loss can be reasonably estimated th rough historical trends and calculation of incurred but not reported claims (IBNR), the City accrues the estimated liability in an internal service fund for expected claims and judgments. The following is a su mmary of the changes in the claims liability over the past two fiscal years:

Of the total estimated claims liabilities, $12,209,058 is estimated due within one year or less. The liability will be paid in future years from the Self Insurance Fund. 204
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
119

13. FUND BALANCE CLASSIFICATIONS
Fund balances of governmental funds at June 30, 2022 have been classified as follows:
205
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
120

14. JOINT VENTURES
A. Water Facilities Authority
On February 19, 1980, the Water Facilities Authority (Authority) was created under a joint exercise of powers agreement between the City of Chino, the City of Ontario, the City of Upland, the City of Chino Hills and the Monte Vista Water District. It was form ed for the purpose of acquisition and construction of facilities directly benefiting the participants by supplying potable water to the inhabitants within the boundaries of its members. Thus, each participant has an ongoing financial interest in the Authority.

The governing Board of Directors consists of one member appointed from each participating agency and has approval of all budget and finance activities. The City's investment in the Authority has been recorded under the equity method of accounting and is shown as an investment in joint venture in the Water Enterprise Fund.

On September 30, 1997, the Authority issued $24,455,00 0 in 1997 Refunding Certificates of Participation (COPs) to refund $25,820,000 of then outstanding 1986 COPs. The 1997 Refunding COPs carry interest rates from 4.0% to 5.3% and will be repaid in various principal increments with the final payment due on October 1, 2015. Each participant in the joint vent ure has pledged gross revenues from its respective Enterprise Fund and has agreed to restrictive covenants that establish rates and charges for each respective water enterprise fund at levels sufficient to maintain net revenues equal to at least 1.25 times the aggregate amount of each respective party's installment payments to the Authority as well as any parity debt that shall become due and payable within the succeeding twelve months. Each City has an ongoing financial responsibility as each has assume d a portion of the Authority's debt. The City of Ontario’s percentage share of the installment payment is 41.51681% and the outstanding balance was paid in full during the fiscal year ending June 30, 2016.

At June 30, 2022, the City's investment in the Aut hority, including its share of Authority’s debt, was $9,893,504.
206
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
121

14. JOINT VENTURES, Continued
A. Water Facilities Authority, Continued
Audited financial information of the Authority for the year ended June 30, 2022 is summarized as follows:

The current participants and their financial contributions through June 30, 2022 were as follows:

Financial statements of the Authority can be obtained from the Water Facilities Authority’s office located at 1775 North Benson Avenue, Upland, California, 91784. 207
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
122

14. JOINT VENTURES, Continued
B. Chino Basin Desalter Authority
On January 15, 2002, the Chino Basin Desalter Authority (the Authority) was created under a joint exercise of powers agreement between the City of Ontario and other neighboring government agencies. This agreement was formed to successfully manage the groundwater resources in the Chino Basin.

The governing Board of Director consists of one representative appointed from each participating agency and has the power and responsibility to adopt budgets, operating plans and finance activities to further the purpose of the Authority. As of June 30, 2022, the City’s investment in the Authority was $61,074,914.

On June 22, 2016, the Chino Basin Desalter Authority issued the Desalter Revenue Refunding Bonds, Series 2016A in the amount of $67,105,000 to refund the Desalter Revenue Refunding Bonds, Series 2008A.

The new revenue refunding bond has various debt pa yment schedules tailored to each member agency, based on their respective election. This provision affords each member the ability to prepay their share of debt service.

The financial information of the Authority for the fi scal year ended June 30, 2022, is summarized as follows:
208
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
123

14. JOINT VENTURES, Continued
B. Chino Basin Desalter Authority, Continued
The current participants and their financial contributions through June 30, 2022 were as follows:

Financial statements of the Authority can be obtained from the Chino Basin Desalter Authority Treasurer’s office located at 6075 Kimball Avenue, Chino, California 91710.

C. West End Communications Authority
The “Authority” governed by a seven-member board is a joint exercise of powers between the following entities as created by a joint powers:

City of Chino City of Upland
City of Montclair Rancho Cucamonga Fire Protection District City of Rancho Cucamonga Chino Valley Independent Fire Protection District City of Ontario
The purpose of the Authority is to provide a cooperative voluntary association to establish operate and maintain a consolidated 800MHZ communication syst em designed to serve public safety agencies throughout the western end of San Bernardino County, California. The City has an ongoing financial interest in the residual assets of the Authority upon disbandment. 209
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
124

14. JOINT VENTURES, Continued
C. West End Communications Authority, Continued
The following is a summary of the West End Communications Authority financial information for the fiscal year ended June 30, 2022:

Separate financial statements of the West End Communications Authority are available upon request from the City of Ontario, Fiscal Services Department, 303 East "B" Street, Ontario, California 91764.

D. West End Fire and Emergency Response Commission
On January 23, 1989, the West End Fire and Emergency Response Commission was created under the Joint Exercise Powers Agreement between the Fire Departments of the City of Ontario, Upland, Montclair, Rancho Cucamonga and Chino. The governing board of directors consists of the Fire Chief from each city.

The purpose of the Authority is to establish a hazardous materials response team. It has been amended to include an Urban Search and Rescue Team and the servicing of joint authority breathing apparatus equipment for emergency purposes.
210
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
125

14. JOINT VENTURES, Continued
D. West End Fire and Emergency Response Commission, Continued The following is a summary of the West End Fire and Emergency Response Commission financial information for the fiscal year ended June 30, 2022:

Separate financial statements of the West End Fire and Emergency Response Commission are available upon request from the City of Ontario, Fiscal Services Department, 303 East "B" Street, Ontario, California 91764.
211
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
126

15. OTHER INVESTMENTS
Other investments of $63,730,042 at June 30, 2022 in the Water Fund represents water rights, investment in stored water and air quality credits. The City valu es its other investments at fair value in accordance with the fair value hierarchy estab lished by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2022:

16. CONTINGENCIES
Liabilities
Claims and suits have been filed against the City in the normal course of business. Based upon information received from the City Attorney and the self-insurance administrator, the estimated liability under such claims would be adequately covered by self-insurance designations and insurance coverage.

Grant
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures unde r the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City mana gement believes disallowances, if any, will be immaterial.

Proposition 218
Proposition 218, which was approved by the voters in November, 1996, will regulate the City’s ability to impose, increase and extend taxes, assessments and fees. Any new, increased or extended taxes, assessments and fees subject to the provisions of Pr oposition 218 require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City’s ability to finance the services for which the taxes, assessm ents and fees were imposed may be significantly impaired. At this time, it is uncertain how Propositio n 218 will affect the City’s ability to maintain or increase the revenue it receives from taxes, assessments and fees. 212
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
127

17. COMMITMENTS
Construction Commitments
The following material construction commitments existed at June 30, 2022:

18. TAX ABATEMENTS
The City entered into various tax abatement agreements with local businesses. The abatements may be granted to any business located within or promising to relocate to the City. For the fiscal year ended June 30, 2022, the City abated taxes totaling $9,544,877 under this program. The City has the following tax abatement agreements:
x A professional agreement with a consultant to provide sales tax audit and information services to the City. The audit services will detect and correct ta xpayer reporting errors and generate new revenue without causing additional tax liability to business es. The City agreed to pay quarterly 20% of new sales and use tax revenues received as a result of corrections identified by the consultant. In fiscal year 2021‐2022, the amount paid was $145,921.
x A professional agreement with a consultant to provide sales tax audit and information services to the City. The audit services will detect and correct ta xpayer reporting errors and generate new revenue without causing additional tax liability to business es. The City agreed to pay quarterly 20% of new sales and use tax revenues received as a result of corrections identified by the consultant. In fiscal year 2021‐2022, the amount paid was $187,745.
x An operating covenant agreement with a retailer of equipment and merchandise of health care products and services to establish its only regional sales office in California within the City for not less than 20 years. The establishment of such retailer will generate local sales tax revenue, create high paying/management jobs and provide opportunity for additional job growth. The City agreed to rebate quarterly 50% of sales tax revenues attributable to taxable sales. In fiscal year 2021 ‐2022, the abatement amounted to $2,287,961.
213
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
128

18. TAX ABATEMENTS, Continued
x An operating covenant agreement with an automotive dealership which agreed to operate the entirety of its dealership facilities within the City for a period of 26 years. The dealership will generate substantial tax revenue, create potential for addi tional job growth and stimulate the economy. The City agreed to rebate 50% of sales tax revenues in excess of $700,000 during the period April 1, 2018 through March 31, 2028. In fiscal year 2021‐2022, the abatement amounted to $389,770. x An operating covenant agreement with a retailer of consumer products to establish its warehouse and distribution center in the City and remain in the City for no less than 41 years. The establishment of such retailer in the City will generate substantial revenue, create new jobs, revitalize the City, and result in community and public improvements. The City agreed to refund quarterly, 55% of sales tax revenues attributable to annual taxable sales up to $500 million and 60% of sales tax revenues over $500 million of annual taxable sales. In fiscal year 2021‐2022, the abatement amounted to $639,410. x An operating covenant agreement with a retailer of consumer products to ensure that it maintains its existing warehouse and distribution center in the City and expands its operations within the City.

This will generate substantial revenue for the City, possibly create job growth, continue to stimulate the economy and result in community and public improvements. For the period beginning January 1, 2020, provided the City receives not less than $1.2 million of sales tax revenue from the retailer, the City agreed to rebate 50% of sales tax revenues attr ibutable to taxable sales, not to exceed an annual amount of $1.8 million. In fiscal year 2021‐2022, the abatement amounted to $1,913,736. x An operating covenant agreement with an auto dealership to develop and operate a facility in the City for its Inland Empire sales territory. The City will receive additional local sales tax revenues, property taxes, employment benefits, and other tangible and intangible benefits arising from the operation of the Dealership within the City. The eligibility period of this agreement is from July 1, 2009 until June 30, 2034. The City agreed to make quarterly payments not to exceed $200,000 for any computation year during the eligibility period for (1) computatio n period up to $500,000 in aggregate, an amount equal to 50% of the local sales tax revenues received above the quarterly base amount of $50,000; (2) computation period up to $1,000,000 in aggregate, an amount equal to 50% of the local sales tax revenues received above the quarterly base amou nt of $56,250; (3) computation period up to $1,950,000 in aggregate, an amount equal to 50 % of local sales tax revenues received above the quarterly base amount of $62,500; and (4) computat ion period up to $2,900,000 in aggregate, an amount equal to 50% of the local sales tax revenu es received above the quarterly base amount of $68,750. In fiscal year 2021‐2022, the abatement amounted to $100,192. x An operating covenant agreement with a global retailer of healthcare services and products to retain and operate its two facilities in the City for transacting sales. The City will receive additional sales tax revenues, maintain and create jobs and stimulate the economic recovery of the Inland Empire. The eligibility period of this agreement commenced on April 1, 2018 and will continue until terminated by either party. The City agreed to make quarterly payments equal to 50% of sales tax revenues. In fiscal year 2021‐2022, the abatement amounted to $1,023,343.
214
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
129

18. TAX ABATEMENTS, Continued
x An operating covenant agreement with a sanitary supplies distributor to retain existing jobs, allow for the potential increase in job opportunities, foster a business and civic environment that may attract additional businesses and investments and create additional job opportunities in the City. The eligibility period of this agreement began on July 1, 2017. The City agreed to make quarterly payments equal to 25% of sales tax revenues in excess of $201 ,000 quarterly up to $500,000. In fiscal year 2021 ‐ 2022, the abatement amounted to $26,809.
x An operating covenant agreement with several concrete companies to establish a sale office and/or a business location that participate in the sale proc ess within the City, expand operations within the City as appropriate and remains in the City for no t less than 40 years. The establishment of such businesses is expected to generate substantial revenue for the City, create new jobs, revitalize an area of the City which has suffered a loss of jobs and result in community and public improvements. The eligibility period of this agreement began on October 1, 2018. The City agreed to make quarterly payments equal to 50% of the sales tax revenue attributable to annual taxable sales for the calendar year which is directly allocated to the City. In fiscal year 2021 ‐2022, the abatement amounted to $1,350,871.
x A retention agreement with an auto dealership to encourage the auto dealership to remain in the City and consider future sales expansions in consideratio n of the local sales tax revenues, property taxes, employment benefits, and other tangible and intangible benefits that are expected to be received by the City arising from the Dealership within the City . During the eligibility peri od the City agreed to pay on a quarterly basis for (1) operating years 1 ‐5, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $75,000; (2) for operating years 6 ‐10, an amount equal to 50% of the local sales tax revenues receiv ed above the annual base amount of $100,000; and (3) for operating years 11 ‐15, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $125,000. The cumulative total of any and all covenant payments paid by the City pursuant to this Agreement shall not exceed $1,200,000. In fiscal year 2021 ‐2022, the abatement amounted to $179,266
x An operating covenant agreement with a retailer of consumer products that will generate substantial sales tax revenue and create approximately 325 new permanent jobs. The incentives provided in this Agreement are intended to ensure the retailer commences operations and remains in the City for no less than 11.5 years. The eligibility period of this agreement began on October 1, 2020. The City agreed to make quarterly payments equal to 50% of sales tax revenues received. In fiscal year 2021 ‐2022, the abatement amounted to $983,728.
215
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
130

18. TAX ABATEMENTS, Continued
x An operating covenant agreement with an auto dealership who recently established a new state ‐of‐ the‐art automobile sales and service center in the City. The covenanted operation of the Dealership serves to foster a business and civic environment that may attract additional businesses and investment in the community due to the availability of the increased public and private services and economic activity resulting therefrom. The eligibil ity period of this agreement began on January 1, 2021. During the eligibility period the City agreed to pay on an annual basis for (1) operating years 1‐ 4, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $100,000 and (2) for operating years 5 ‐8, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $125,000 for a period of up to eight (8) years or a maximum amount of $800,000. In fiscal year 2021‐2022, the abatement amounted to $251,231. x An operating covenant agreement with an industrial equipment company distributing more than 1.5 million metalworking and other industrial products . By establishing the Ontario sales offices, the company will consolidate other office locations across Southern California to the City. This will, in turn, result in an increase revenue to the City, and there may be other community and public improvements that might not otherwise be available to the community for many years. The eligibility period of this agreement began on January 1, 2022. The City agreed to make quarterly payments equal to 50% of sales tax revenue received. In fiscal year 2021‐2022, the abatement amounted to $64,893.

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court uphe ld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Ontario that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopm ent agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 20 12, the City Council electe d to become the Successor Agency for the former redevelopment ag ency in accordance with the Bill as part of City resolution number 2012-001.
216
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
131

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

Successor agencies are only allocating revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractua lly committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Management believes, in consultation with legal counse l, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regardin g this issue. It is reasonably poss ible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

A. Cash and Investments
As of June 30, 2022, cash and investments were reported in the accompanying financial statements as follows:

B. Notes Receivable
On October 19, 1993, the Ontario Redevelopment Agency accepted a note receivable of $35,000 from a developer as part of a transaction involving the sale of property. The note bears interest at 0% annually and was due in full on June 20, 1995. A new note was negotiated on November 8, 1996 and will mature on October 31, 2026. The unpaid principal balance at June 30, 2022, was $35,000. 217
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
132

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued C. Advances to City
During prior fiscal years, the Former RDA loaned $1,600,000 to the Capital Project Fund for the purchase of property adjacent to Ontario Mills. At June 30, 2022, the balance of the advance was $1,600,000.

D. Long-Term Debt
The following is a summary of changes in Successor Agency long-term debt for the year ended June 30, 2022:
1993 Tax Allocation Bond
The 1993 Tax Allocation Bonds in the amount of $45,708,900 were issued on June 11, 1993, to finance redevelopment activities related to Project Area #1. The Agency sold the bonds to the Financing Authority at a purchase price equal to the principal amount of the bonds plus a premium. The investment by the Authority in the bonds is held in an agency fund. The terms were negotiated in a prior year and reduced the outstanding principal balance by $800. Additionally, the maturity date was extended two years to August 1, 2025. The interest is paid semi-annually at the stated rate of 12%. The balance at June 30, 2022, amounted to $21,933,441.
218
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
133

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued D. Long-Term Debt, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, including interest, are as follows:

The bonds were sold to the Ontario Redevelopment Financing Authority at par plus premium. All proceeds of the 1995 Bonds will be used to finance redevelopment projects related to Project Area #1. The 1995 Bonds were issued on parity with the Agency’s existing Project Area #1 1992 and 1993 Tax Allocation Bonds. The 1995 Bonds were issued with an interest rate of 12.00%, provided that the interest rate for the period from August 1, 1995 through July 1, 1996, sha ll be 10.55% per annum, the interest rate for the period from August 1, 1996 through July 31, 1997, sh all be 11.70% per annum, and the interest for the period from August 1, 1997 through July 31, 1999, shall be 11.86% per annum. Interest is paid semi- annually each year and commenced February 1, 1996, until final maturity on August 1, 2025. The balance at June 30, 2022, amounted to $1,939,459.
219
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
134

The outstanding bonds contain a provision that if any event of default should occur, the Trustee shall at the written direction of the Owner of a majority in aggregate principal amount outstanding, declare the principal of all the bonds then outstanding, and th e interest accrued thereon, to be due and payable immediately.
2002 Refunding Revenue Bonds
In February 2002, the Ontario Redevelopment Financing Authority issued revenue bonds in the amount of $35,290,000 to provide funds to concurrently refund on a current basis a portion of the Authority’s 1992 Revenue Bonds and certain outstanding tax allocation bonds of the Agency, and to finance redevelopment activities within the Agency’s Project Area #1, Ce nter City and Cimarron redevelopment projects. The bonds issued at a premium of $1,702,231, consist of $17,472,433 capital appreciation bonds maturing annually through 2018 and $9,795,000 interest bonds with interest payable semiannually on February 1 and August 1 of each year and maturing in 2021.

The bonds are secured by a pledge and a lien on a po rtion of the taxes levied on all taxable property within the related project of the Agency. The outstanding balance at June 30, 2022, amounted to $0. 220
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
135

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued D. Long-Term Debt, Continued
Loans Payable
Pursuant to a loan agreement dated February 1, 2002, the Ontario Redevelopment Agency issued the Ontario Redevelopment Project #1 2002 Housing Set-Aside Loan in the amount of $15,145,000 to finance low and moderate income activities of the Agency within or of the benefit to the Ontario Redevelopment Agency Project Area #1. The loan matures in 2029 an d is payable from Housing Tax Revenues allocated to the Agency. Interest is paid semi-annually at a rate of 5.30% per annum. The balance at June 30, 2022, amounted to $6,739,364.

At June 30, 2022, the annual requirements to repay the outstanding indebtedness were as follows:

The remedies available upon the occurrence of an event of default under the loan agreement are in many respects dependent upon regulatory and judicial actions. 221
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
136

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued D. Long-Term Debt, Continued
Advance from City
The General Fund made an advance in the amount of $3,500,000 to the Successor Agency of the Former Redevelopment Agency to assist the Agency in implementation of the redevelopment plan.

Debt Service Requirements
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate-Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds.

A s s e m b l y B i l l 1 X 2 6 p r o v i d e d t h a t u p o n d i s s o l u t i o n o f t h e R e d e v e l o p m e n t A g e n c y , p r o p e r t y t a x e s allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and in terest remaining on the debt is $52,054,163 with annual debt service requirements as indicated on the previous pages. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of obligations incurred by the dissolved redevelopment agency was $9,451,821 an d the debt service oblig ation on the bonds was $9,917,767.
222
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
137

20. PRIOR PERIOD ADJUSTMENTS
The City recorded the following prior period adjustments:

Prior period adjustments were to correct accounts receiv able for a negative balance, to correct capital assets accumulated depreciation for prior years error in calcul ation, to record land purchased in a prior year not recorded with land held for resale, to correct allocation of OPEB amounts to the enterprise and internal service funds, to correct prior year CERBT contribution and deposits payable, to remove duplicate amounts reported in the Redevelopment Financing Agency custodial fund and move the fund’s remaining balances to the Successor Agency, and to reclassify NMC CFD and OMC CFD funds reported as capital project funds in prior year to custodial funds as of beginning of the current year.

21. SUBSEQUENT EVENTS
On September 15, 2022, the Community Facilities District issued a new special tax bond (non-City obligation) for Community Facilities District No. 57 (District) in the total amount of $12,915 ,000. The proceeds will be used for development within the District.
223
138
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224
139

REQUIRED

SUPPLEMENTARY INFORMATION
225
140
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226
City of Ontario
Required Supplementary Information
For the Year Ended June 30, 2022
141

1. BUDGET AND COMPARISON INFORMATION
General Budget Policies

1. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted approp riations and any amendments to appropriations throughout the year. All amendments made duri ng the year are included in the budgetary amounts reported herein. The “appropriated budge t” covers all City expenditures, including capital improvement projects carried forward from the prior year, which is re-appropriated every year. Actual expenditures may not exceed budgeted appropriations at the fund level, which is the legal level of control. The City Manager is au thorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter total expenditures of any fund must be approved by the City Council.

3. Formal budgetary integration is employed as a management control device during the year.

Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures. Appropriations that are encumbered lapse at year-end and then are added to the following year budgeted appropriations.

4. Budgets for the General, Special Revenue, Capital Projects and Debt Service Funds are adopted on a basis substantially consistent with gene rally accepted accounting principles (GAAP).

Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. Budget comparisons are not presented for the Proprietary Funds, as the City is not legally required to adopt a budget for those type funds.

5. Capital projects are budgeted through the Capital Projects Fund. Appropriations for capital projects authorized, but not constructed or completed during the year, are re-appropriated in the following year’s budget.

6. Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to t he amount of annual a p propriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must be either refunded to the State Controller or returned to the taxpayers through re vised tax rates or revised fee schedules, or an excess in one year may be offset by a deficit in the following year. For the fiscal year ended June 30, 2022, based on calculations by City staff, proceeds of taxes did not exceed appropriations.

Further, Section 5 of Article XIII-B allows the City to designate a portion of fund balance for general contingencies to be used for any purpos e. On August 10, 1996, the City Council passed Resolution 96-073 setting aside all unappropriat ed fund balances in the General Fund as a contingency fund.
227
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 199,121,754 $ 225,046,610 $ 243,176,826 $ 18,130,216 $ Licenses and permits 4,752,000 9,737,125 10,772,502 1,035,377 Intergovernmental 15,033,623 5,116,496 15,306,488 10,189,992 Charges for services 41,471,754 48,859,318 47,443,658 (1,415,660 ) Use of money and property 1,661,198 1,462,798 (2,618,811 ) (4,081,609) Fines and forefeitures 703,000 966,789 1,060,576 93,787 Miscellaneous 9,417,060 7,683,28 1 9,466,875 1,783,594
Total revenues 272,160,389 298,872,417 324,608,114 25,735,697 EXPENDITURES:

General government
Mayor and city council 565,154 602,249 465,444 136,805
Planning commissioners 42,975 42,975 25,296 17,679
City treasurer/city clerk 118,350 118,530 99,822 18,708 Records management 870,811 1,012,939 963,325 49,614
City attorney 389,900 389,900 2,478,037 (2,088,137 )
Office of the city manager 1,675,752 1,868,107 1,673,71 1 194,396 General government 491,630 491,630 374,174 117,456
Financial services administration 904,983 1,048,574 655,828 392,746 Fiscal services 8,281,853 9,073,996 6,388,659 2,685,337 Business licenses 1,053,726 1,159,846 1,124,435 35,41 1 Central services 486,118 858,100 540,655 317,445
Human resources 4,224,127 5,147,684 3,852,774 1,294,910 Economic development 10,882,466 14,455,352 13,268,68 1 1,186,671 Airport HR and risk management services 162,818 173,82 1 193,345 (19,524 ) Communication and community services 1,027,955 1,093,786 860,854 232,932 Innovation and performance audit 888,721 1,082,898 913,328 169,570 Total general government 32,067,339 38,620,387 33,878,368 4,742,019 Budget Amounts
142 228
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund (Continued)
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Public safety
Police administration 4,185,703 5,145,178 5,159,662 (14,484 ) Traffic support services 4,384,465 4,775,896 4,641,655 134,24 1 Community engagement team 3,856,464 5,391,187 4,749,689 641,498 Patrol 38,199,646 40,708,710 39,898,769 809,94 1
Extra duty - other 361,830 1,052,307 1,092,173 (39,866 ) Canine 1,621,005 1,743,670 1,712,614 31,056
Air support 3,516,263 3,795,624 3,704,267 91,357
Crime analysis and prevention 751,351 79,463 108,222 (28,759 ) Communications/records 5,387,309 5,981,174 5,598,462 382,712 Personnel recruit and training 1,896,747 2,323,928 2,390,545 (66,617 ) Airport operations bureau 12,598,679 14,988,965 14,271,838 717,127 Detective division 10,276,544 10,785,257 10,966,200 (180,943 ) Career criminal division 7,563,466 8,274,627 8,099,658 174,969 ID/evidence 2,121,577 2,359,932 2,272,774 87,158
Office of the fire chief 2,356,820 2,830,674 2,902,838 (72,164 ) Fire prevention bureau 2,749,009 2,983,544 2,796,875 186,669 Emergency services 40,458,249 42,344,842 48,252,759 (5,907,917 ) Personnel training and development 2,612,764 2,742,315 2,603,762 138,553 E.M.S. technical services 1,337,385 2,391,018 1,973,610 417,408 Emergency management 312,061 438,028 378,336 59,692
Operations support services 2,307,019 3,227,923 2,996,122 231,80 1 Community improvement 4,319,443 5,842,105 4,914,042 928,063 SWAT 412,769 619,087 514,673 104,414
Office of the police chief 1,928,313 2,411,613 2,507,038 (95,425 ) Fire communications 2,197,633 2,493,435 2,401,925 91,510 Airport fire operations 7,635,807 8,641,355 8,302,482 338,873 Fire station No. 9 7,032,181 7,519,669 7,520,913 (1,244 ) Police/Ontario ranch 2,091,101 2,234,633 1,783,967 450,666 Total public safety 174,471,603 194,126,159 194,515,870 (389,711 ) Budget Amounts
143 229
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund (Continued)
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Community development
Community life and culture admin. 1,763,129 2,007,677 1,546,52 1 461,156 Recreation administration 3,189,039 3,834,573 3,626,933 207,640 Sports/fitness 929,763 899,528 699,156 200,372
Special events/facility rental 323,637 591,250 480,865 110,385 Community programs 2,054,900 2,289,176 2,208,434 80,742 Development administration 1,406,155 1,532,625 1,200,550 332,075 Planning administration 669,203 819,81 1 770,712 49,099 Planning land development 1,647,979 2,348,378 1,819,892 528,486 Advanced long range planning 1,722,298 2,780,439 1,391,206 1,389,233 Building 4,308,362 5,411,715 4,560,85 1 850,864
Engineering administration 1,695,572 1,844,935 1,497,559 347,376 Engineering land development 3,715,636 4,485,560 3,960,67 1 524,889 Transportation 402,705 427,286 298,553 128,733
Traffic engineer and signal operation 2,974,847 3,348,708 3,117,007 231,70 1 Field services 368,862 444,190 382,332 61,858
Museum 1,515,220 1,685,729 1,283,597 402,132
Community outreach 3,885,612 4,529,705 3,521,627 1,008,078 Senior services 632,251 804,106 476,312 327,794
Youth/teen services 979,324 1,024,879 655,825 369,054
CIP design administration 32,160 29,543 20,492 9,05 1
Town Square Park 274,863 279,994 215,878 64,116
Library administration 1,070,048 1,381,170 1,335,278 45,892 Ovitt Family Community Library 3,464,645 3,921,779 3,359,328 562,45 1 Branch library 750,700 839,439 869,86 1 (30,422)
Total community development 39,776,910 47,562,195 39,299,440 8,262,755 Public works
Paint striping and sign maintenance 7,500 - 200 (200 )
Sidewalk 1,716,009 1,913,622 1,623,608 290,014
Street lighting maintenance 744,335 881,832 730,423 151,409 Parks and maintenance supervision 322,859 424,214 377,100 47,114 Park maintenance 6,100,779 6,383,579 5,653,302 730,277
Parkway tree trimming 1,380,510 1,956,77 1 1,818,556 138,215 Public grounds maintenance 2,258,811 2,390,376 1,924,942 465,434 Civic center grounds maintenance 196,724 198,73 1 174,335 24,396 Public facilities building maintenance 1,131,182 1,203,63 1 845,950 357,68 1 Community events 42,574 42,574 4,743 37,83 1
Graffiti 620,535 631,96 1 605,863 26,098
Storm drain maintenance 21,967 - 83,965 (83,965 )
Weed and refuse abatement 138,394 151,730 53,004 98,726 Total public works 14,682,179 16,179,02 1 13,895,991 2,283,030 Budget Amounts
144 230
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund (Continued)
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Debt service:

Principal retirement - - 560,000 (560,000 )
Interest and fiscal charges - - 1,121,33 1 (1,121,331)
Total debt service - - 1,681,33 1 (1,681,331)
Total expenditures 260,998,031 296,487,762 283,271,000 13,216,762 REVENUES OVER (UNDER) EXPENDITURES 11,162,358 2,384,655 41,337,114 12,518,935 OTHER FINANCING SOURCES (USES):

Transfers in 4,000,000 - - -
Transfers out (10,860,303) (55,716,457) (55,516,961) 199,496 Total other financing sources (uses) (6,860,303) (55,716,457) (55,516,961) 199,496 Net change in fund balances 4,302,055$ (53,331,802)$ (14,179,847) 12,718,431 $ FUND BALANCES:

Beginning of year 128,162,049
End of year 113,982,202$
Budget Amounts
145 231
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure I
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 3,547,532 $ 3,547,532 $ 4,690,545 $ 1,143,013 $ Use of money and property -- ( 6 2 , 4 6 9 ) (62,469)
Miscellaneous ----
Total revenues 3,547,532 3,547,532 4,628,076 1,080,544 EXPENDITURES:

Current:

Community development 31,916,034 31,916,034 3,120,177 28,795,857 Total expenditures 31,916,034 31,916,034 3,120,177 28,795,857

REVENUES OVER (UNDER)
EXPENDITURES (28,368,502) (28,368,502) 1,507,899 (27,715,313) Net change in fund balances (28,368,502)$ (28,368,502) $ 1,507,899 (27,715,313)$ FUND BALANCES:

Beginning of year, as restated 17,046,913
End of year 18,554,812$
Budget Amounts
146 232
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Ontario Housing Authority
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 5,000,000 $ 5,000,000 $ - $ (5,000,000)$ Contribution from property owners 5,027,300 5,027,300 - (5,027,300 ) Use of money and property 508,630 508,630 2,122,106 1,613,476 Miscellaneous 66,800 66,800 95,902 29,102
Total revenues 10,602,730 10,602,730 2,218,008 (8,384,722) EXPENDITURES:

Current:

Community development 15,731,271 15,731,271 2,812,282 12,918,989 Debt service:

Principal retirement - - 12,000 (12,000 )
Total expenditures 15,731,271 15,731,271 2,824,282 12,906,989

REVENUES OVER (UNDER)
EXPENDITURES (5,128,541) (5,128,541) (606,274) (21,291,711) OTHER FINANCING SOURCES (USES):

Transfers in - - 3,500 3,500 Total other financing sources (uses) - - 3,500 3,500 Net change in fund balances (5,128,541)$ (5,128,541) $ (602,774) (21,288,211)$ FUND BALANCES:

Beginning of year 21,039,705
End of year 20,436,931$
Budget Amounts
147 233
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234
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Modified Approach for City Infrastructure Capital Assets Rating
86-100
71-85
56-70
41-55
26-40
11-25
0-10
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure assets. The City defines infrastructure as the basic physical assets including the street system; water purification and distribution system; wastewater collection and treatment system; and buildings combined with site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, si gnals and pavement markings), landscaping and land.

Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.

The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Street Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
x The City manages the eligible infrastructure assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established assessment level. x The City documents that the eligible infrastructure assets are being preserved approximately at or above the established and disclosed condition assessment level.

In February 2022, the City completed a study to update the physical condition assessment of the streets. The prior assessment study was completed in March 2021. The streets, primarily surfaced with asphalt and concrete, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. City owned streets are classified based on land use, access and traffic utilization into the following four classifications: arterial, collector local, and alley. Currently, 50% of the City’s arterial and collectors and 25% of the local streets and alleys are being assessed each year. Each street and its related subsystems were assigned a physical condition based on 17 potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. The following conditions were defined in the 2010 study:

Poor
Very poor
Failed
Condition
Excellent
Very good
Good
Fair
149 235
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Modified Approach for City Infrastructure Capital Assets (Continued) % of Streets
79%
18%
3%
PCI Index

80.8 81.3

82.8 82.7

82.0 78.3

76.3 74.7

70.6 71.1

69.0 65.0

67.0 68.0

65.0 71.0

69.0 As of February 2022, the City had some of its streets rated below a “fair” rating. The City will require several years to rehabilitate these segments of the streets.

February 2018
Condition
Excellent to Very Good
Good to fair
Poor to Failed
The following is the condition assessment for the most recent years since implementation:

Report's Date
March 2021
February 2020
January 2019
The City's policy is to maintain the existing weighted average rating of "Good". This rating allows for minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of February 2022, the City’s average street and its related subsystem’s PCI rating was 80.8, with the detail condition as follows:

Feburary 2022
July 15, 1999
April 2017
May 2016
March 2015
January 2013
May 14, 2012
March 18, 2010
February 18, 2008
January 11, 2007
February 21, 2006
April 11, 2005
February 28, 2002
150 236
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Modified Approach for City Infrastructure Capital Assets (Continued) Maintenance Category 2017 2018 2019 2020 2021 2022
Streets Estimated 13,008,613 $ 12,441,858 $ 12,273,799 $ 12,694,852 $ 11,151,458 $ 11,865,000 $ Actuals 8,219,379 8,696,188 11,067,305 9,155,000 7,112,536 8,356,883 Sidewalks Estimated 1,669,078 1,700,699 1,790,476 1,698,940 1,586,450 1,913,622 Actuals 1,578,819 1,488,652 1,602,108 1,649,357 1,557,834 1,623,608 Storm Drain Estimated 1,894,890 1,735,524 1,824,635 2,587,972 2,255,702 2,276,383 Actuals 1,714,063 1,452,261 1,407,071 1,925,921 1,856,150 1,765,742 Traffic
Signal/Stree
t Lights
Estimated 4,383,271 4,687,717 4,744,781 5,004,117 4,707,980 4,873,341 Actuals 4,024,946 4,330,956 4,108,176 4,279,727 4,509,065 4,628,351 The City’s streets are constantly deteriorating resulting from the following four factors: (1) traffic using the streets, (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement, (3) utility company/private development interests trenching operations, and (4) water damage from natural precipitation and other urban runoff. The City is continuously taking actions to arrest the deterioration through short-term maintenance activities such as pothole patching, street sweeping, and street paving. The City expended $8.3 million on street maintenance for the fiscal year ended June 30, 2022. These expenditures delayed deterioration however, the overall condition of the streets was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required maintaining the City’s streets at the average PCI rating of “Good” through the year 2022 is a minimum of $5.6 million per year. A schedule of estimated annual amount required to maintain and preserve the City’s streets at the current level compared to actual expenditures for street maintenance for the last five years is presented below.

Fiscal Year ending June 30th,
As of June 30, 2022, the City had approximately 115,365,840 square feet (551.9 centerline miles) of streets with a carrying amount of $371,827,139 and a replacement cost of approximately $1,048,745,500.

The City is also continuously taking actions to arrest the deterioration of other infrastructure assets through short- term maintenance activities. For the fiscal year ended J une 30, 2022, the City expended $ 8 million on infrastructure maintenance for sidewalks, catch basin/storm drains, and traffic signal/street lightings. These expenditures delayed deterioration and improved the overall condition of t hese infrastructures. It is estimated that it will cost approximately $4.0 million per year to maintain these other infrastructure assets at their present level as shown on the schedule presented below.
151 237
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Miscellaneous Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* 2014 2015 2016 2017

TOTAL PENSION LIABILITY
Service cost 6,439,440 $ 6,295,399 $ 6,785,157 $ 8,020,608 $ Interest 19,741,927 20,680,719 22,042,754 23,255,948
Differences between expected and actual experience - (2,539,125 ) 2,960,090 1,183,589 Changes in assumptions - (5,069,730 ) - 19,573,224
Benefit payments, including refunds of employee contributions (11,000,119) (11,779,873) (12,973,536) (13,196,500) Net change in the total pension liability 15,181,248 7,587,390 18,814,465 38,836,869 Total pension liability - beginning 265,506,030 280,687,278 288,274,668 307,089,133 Total pension liability - ending (a) 280,687,278$ 288,274,668 $ 307,089,133 $ 345,926,002 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 4,373,874$ 5,965,663 $ 6,919,250 $ 7,142,812 $ Contributions - employee 2,619,805 3,288,408 3,496,228 3,300,315 Net investment income 35,255,810 5,225,720 1,288,913 26,063,000 Benefit payments, including refunds of employee contributions (11,000,119) (11,779,873) (12,973,536) (13,196,500) Plan to plan resource movement - (670 ) 221 -
Administrative expense - (270,392 ) (144,268) (347,413) Other miscellaneous income (expense) ----
Net change in plan fiduciary net position 31,249,370 2,428,856 (1,413,192) 22,962,214 Plan fiduciary net position - beginning 203,040,903 234,290,273 236,719,129 235,305,937 Plan fiduciary net position - ending (b) 234,290,273$ 236,719,129 $ 235,305,937 $ 258,268,151 $ Net pension liability - ending (a) - (b) 46,397,005 $ 51,555,539 $ 71,783,196 $ 87,657,851 $ Plan fiduciary net position as a percentage of the total pension liabilit y 83.47% 82.12% 76.62% 74.66% Covered payroll 38,282,148 $ 39,204,13 1$ 43,085,834 $ 46,066,325 $ Net pension liability as a percentage of covered payroll 121.20 % 131.51% 166.61% 190.29% * Fiscal year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as informati on becomes available.

Notes to the Schedule:

Benefit Changes: There were no changes in benefits.

Changes in Assumptions:

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent .

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study a nd Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. 152 238
2018 2019 2020 2021
8,293,305$ 8,873,061 $ 9,303,101 $ 9,554,732 $ 24,357,078 26,179,759 27,711,756 29,123,37 1
833,264 7,329,159 2,223,422 1,890,25 1
(3,104,763) -- -
(14,285,430) (15,269,344) (16,860,141) (21,715,949)
16,093,454 27,112,635 22,378,138 18,852,405 345,926,002 362,019,456 389,132,091 411,510,229 362,019,456$ 389,132,091 $ 411,510,229 $ 430,362,634 $ 8,845,306$ 9,750,907 $ 113,590,085 $ 5,232,930 $ 4,098,899 3,976,957 4,187,458 3,680,504
21,684,987 18,145,412 14,846,554 91,365,820
(14,285,430) (15,269,344) (16,860,141) (21,715,949)
(1,183) -3 , 7 5 3 -
(402,453) (197,990) (414,257) (408,770)
(764,265) 641 --
19,175,861 16,406,583 115,353,452 78,154,535 258,268,151 277,444,012 293,850,595 409,204,047 277,444,012$ 293,850,595 $ 409,204,047 $ 487,358,582 $ 84,575,444$ 95,281,496 $ 2,306,182 $ (56,995,948) $

76.64% 75.51% 99.44% 113.24%
48,007,553$ 51,795,345 $ 55,145,826 $ 57,593,322 $ 176.17% 183.96% 4.18% -98.96%
153 239
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Safety Police Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* 2014 2015 2016 2017

TOTAL PENSION LIABILITY
Service cost 6,239,776 $ 6,095,464 $ 6,630,087 $ 7,755,445 $ Interest 20,403,337 21,492,97 1 22,805,001 23,727,296
Differences between expected and actual experience - (435,228 ) 1,866,294 (3,343,535 ) Changes in assumptions - (5,448,420 ) - 20,461,012
Benefit payments, including refunds of employee contributions (11,427,473) (12,128,407) (13,014,228) (13,724,815) Net change in the total pension liability 15,215,640 9,576,380 18,287,154 34,875,403 Total pension liability - beginning 274,638,342 289,853,982 299,430,362 317,717,516 Total pension liability - ending (a) 289,853,982$ 299,430,362 $ 317,717,516 $ 352,592,919 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 5,606,239$ 8,077,089 $ 9,031,995 $ 10,241,924 $ Contributions - employee 1,562,761 2,077,172 2,185,576 2,309,239 Net investment income 32,668,031 4,795,601 1,073,635 24,253,009 Benefit payments, including refunds of employee contributions (11,427,473) (12,128,407) (13,014,228) (13,724,815) Plan to plan resource movement - 607 - -
Administrative expens
e - (246,269 ) (133,344) (321,771)
Other miscellaneous income (expense) ----
Net change in plan fiduciary net position 28,409,558 2,575,793 (856,366) 22,757,586 Plan fiduciary net position - beginning 187,809,183 216,218,741 218,794,534 217,938,168 Plan fiduciary net position - ending (b) 216,218,741$ 218,794,534 $ 217,938,168 $ 240,695,754 $ Net pension liability - ending (a) - (b) 73,635,241 $ 80,635,828 $ 99,779,348 $ 111,897,165 $ Plan fiduciary net position as a percentage of the total pension liabilit y 74.60% 73.07% 68.59% 68.26% Covered payroll 21,107,423 $ 21,416,900 $ 23,375,007 $ 24,563,537 $ Net pension liability as a percentage of covered payroll 348.86 % 376.51% 426.86% 455.54% * Fiscal year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as informati on becomes available.

Notes to the Schedule:

Benefit Changes: There were no changes in benefits.

Changes in Assumptions:

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent .

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study a nd Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. 154 240
2018 2019 2020 2021
8,903,620$ 9,490,945 $ 10,397,206 $ 11,110,950 $ 25,115,253 27,456,414 29,448,493 31,081,768
3,330,790 14,622,182 8,260,014 3,286,194
(1,542,087) ---
(15,142,297) (17,240,114) (18,358,394) (22,933,112)
20,665,279 34,329,427 29,747,319 22,545,800 352,592,919 373,258,198 407,587,625 437,334,944 373,258,198$ 407,587,625 $ 437,334,944 $ 459,880,744 $ 12,590,271$ 13,281,118 $ 154,440,41 1$ 7,489,804 $ 3,082,481 3,171,669 3,557,026 3,727,094
20,500,833 17,108,327 14,435,085 96,551,012
(15,142,297) (17,240,114) (18,358,394) (22,933,112)
(60) -( 3 , 7 5 5 ) -
(375,070) (185,998) (390,183) (429,999)
(712,265) 603 - -
19,943,893 16,135,605 153,680,190 84,404,799 240,695,754 260,639,647 276,775,252 430,455,442 260,639,647$ 276,775,252 $ 430,455,442 $ 514,860,241 $ 112,618,551$ 130,812,373 $ 6,879,502 $ (54,979,497)$

69.83% 67.91% 98.43% 111.96%
28,650,190$ 30,612,990 $ 33,746,205 $ 36,465,213 $ 393.08% 427.31% 20.39% -150.77%
155 241
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Safety Fire Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years* 2014 2015 2016 2017

TOTAL PENSION LIABILITY
Service cost 4,207,185 $ 3,826,254 $ 4,011,720 $ 4,694,688 $ Interest 15,722,984 16,115,504 17,007,366 17,663,790
Differences between expected and actual experience - (5,049,828 ) 2,059,569 (205,847 ) Changes in assumptions - (3,893,081 ) - 14,596,257
Benefit payments, including refunds of employee contributions (9,226,093) (10,326,665) (10,544,779) (11,502,192) Net change in the total pension liability 10,704,076 672,184 12,533,876 25,246,696 Total pension liability - beginning 212,149,220 222,853,296 223,525,480 236,059,356 Total pension liability - ending (a) 222,853,296$ 223,525,480 $ 236,059,356 $ 261,306,052 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 2,989,253$ 5,643,212 $ 5,475,379 $ 5,785,138 $ Contributions - employee 1,181,692 1,673,250 1,513,475 1,535,337 Net investment income 26,898,837 3,958,046 890,970 19,188,945 Benefit payments, including refunds of employee contributions (9,226,093) (10,326,665) (10,544,779) (11,502,192) Plan to plan resource movement - - (221 ) -
Administrative expense - (200,094 ) (108,343) (258,375) Other miscellaneous income (expense) ----
Net change in plan fiduciary net position 21,843,689 747,749 (2,773,519) 14,748,853 Plan fiduciary net position - beginning 155,181,255 177,024,944 177,772,693 174,999,174 Plan fiduciary net position - ending (b) 177,024,944$ 177,772,693 $ 174,999,174 $ 189,748,027 $ Net pension liability - ending (a) - (b) 45,828,352 $ 45,752,787 $ 61,060,182 $ 71,558,025 $ Plan fiduciary net position as a percentage of the total pension liabilit y 79.44% 79.53% 74.13% 72.62% Covered payroll 15,672,135 $ 14,881,78 1$ 15,700,218 $ 16,311,760 $ Net pension liability as a percentage of covered payroll 292.42 % 307.44% 388.91% 438.69% * Fiscal year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as informati on becomes available.

Notes to the Schedule:

Benefit Changes: There were no changes in benefits.

Changes in Assumptions:

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent .

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study a nd Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. 156 242
2018 2019 2020 2021
5,450,102$ 5,774,916 $ 6,188,402 $ 6,831,688 $ 18,731,153 20,209,053 21,509,14 1 22,591,435
5,431,927 9,490,435 6,351,419 3,455,873
(1,280,641) ---
(12,416,436) (13,911,900) (14,806,228) (17,869,994)
15,916,105 21,562,504 19,242,734 15,009,002 261,306,052 277,222,157 298,784,661 318,027,395 277,222,157$ 298,784,661 $ 318,027,395 $ 333,036,397 $ 7,480,185$ 7,800,187 $ 103,651,019 $ 4,913,650 $ 1,996,292 2,057,562 2,467,276 2,428,156
15,891,350 13,135,037 10,819,335 69,748,734
(12,416,436) (13,911,900) (14,806,228) (17,869,994)
(468) ---
(295,680) (144,039) (297,147) (312,282)
(561,501) 468 - -
12,093,742 8,937,315 101,834,255 58,908,264 189,748,027 201,841,769 210,779,084 312,613,339 201,841,769$ 210,779,084 $ 312,613,339 $ 371,521,603 $ 75,380,388$ 88,005,577 $ 5,414,056 $ (38,485,206)$

72.81% 70.55% 98.30% 111.56%
19,029,023$ 20,523,547 $ 22,228,457 $ 25,162,755 $ 396.13% 428.80% 24.36% -152.95%
157 243
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Schedule of Pension Plan Contributions - Last 10 Years* 2014 2015 2016 2017
Miscellaneous Plan
Actuarially determined contribution 4,373,874 $ 5,965,663 $ 6,919,250 $ 7,142,812 $ Contributions in relation to actuarially deemed contributions (4,373,874) (5,965,663) (6,919,250) (7,142,812) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 38,282,148 $ 39,204,13 1$ 43,085,834 $ 46,066,325 $ Contributions as a percentage of covered payroll 11.43 % 15.22% 16.06% 15.51% Safety Police Plan
Actuarially determined contribution 5,606,239 $ 8,077,089 $ 9,031,995 $ 10,241,924 $ Contributions in relation to actuarially deemed contributions (5,606,239) (8,077,089) (9,031,995) (10,241,924) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 21,107,423 $ 21,416,900 $ 23,375,007 $ 24,563,537 $ Contributions as a percentage of covered payroll 26.56 % 37.71% 38.64% 41.70% Safety Fire Plan
Actuarially determined contribution 2,989,253 $ 5,643,212 $ 5,475,379 $ 5,785,138 $ Contributions in relation to actuarially deemed contributions (2,989,253) (5,643,212) (5,475,379) (5,785,138) Contribution deficiency (excess) - $ - $ - $ - $ Covered payroll 15,672,135 $ 14,881,78 1$ 15,700,218 $ 16,311,760 $ Contributions as a percentage of covered payroll 19.07 % 37.92% 34.87% 35.47% * Fiscal year 2015 was the 1st year of implementation.

Notes to the Schedule:

Valuation date: June 30, 2020
Actuarial cost method: Entry Age Normal
Amortization of unfunded
actuarial accrued liability:

Assumption/ Benefit Golden
Driver Investment Non-Investment Method Chang e Change Handshake Amortization period 30 year s 30 years 20 years 20 years 5 years Escalation rate
Active plans 2.875% 2.875% 2.875% 2.875% 2.875%
Inactive plans 0% 0% 0% 0% 0%
Ramp up -----
Ramp down - - - - -
Asset valuation method: Market Value of Assets
Discount rate: 7.15%
Overall pay growth: 2.75%
Inflation: 2.50%
Retirement age: 2017 CalPERS Experience Study
Mortality: 2017 CalPERS Experience Study, with ongoing improvements using 90 percent of Scale MP-2016 (Gain) / Loss
Source
158 244
2018 2019 2020 2021 2022
8,845,306$ 9,750,907 $ 11,520,393 $ 5,233,815 $ 5,595,658 $ (8,845,306) (9,750,907) (113,590,085) (5,233,815) (5,595,658) -$ - $ (102,069,692)$ - $ - $ 48,007,553$ 51,795,345 $ 55,145,826 $ 51,492,952 $ 54,124,236 $

18.42% 18.83% 205.98% 10.16% 10.34%
12,590,271$ 13,281,118 $ 15,237,147 $ 7,489,804 $ 8,305,580 $ (12,590,271) (13,281,118) (154,440,411) (7,489,804) (8,305,580) -$ - $ (139,203,264)$ - $ - $ 28,650,190$ 30,612,990 $ 33,746,205 $ 33,334,679 $ 34,988,94 1$

43.94% 43.38% 457.65% 22.47% 23.74%
7,480,185$ 7,800,187 $ 9,470,927 $ 4,913,650 $ 5,912,718 $ (7,480,185) (7,800,187) (103,651,019) (4,913,650) (5,912,718) -$ - $ (94,180,092)$ - $ - $ 19,029,023$ 20,523,547 $ 22,228,457 $ 25,162,755 $ 26,648,320 $

39.31% 38.01% 466.30% 19.53% 22.19%
159 245
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Schedule of Changes in OPEB Liability and Related Ratios - Last 10 Years* 2017 2018 2019 2020 2021
Total OPEB Liability
Service cost 12,423,938$ 10,440,905 $ 9,940,30 1$ 4,576,154 $ 4,643,850 $ Interest on the total OPEB
liability 8,541,783 9,882,614 10,698,499 11,065,136 11,460,588 Actual and expected experience
difference - - (31,315,151) - (16,740,290) Changes in assumptions (37,838,070) (13,680,004) (90,154,275) (2,893,024) 1,635,626 Benefit payments (4,213,032) (5,398,279) (6,094,869) (6,553,703) (7,361,127) Net change in the total OPEB liab (21,085,381) 1,245,236 (106,925,495 ) 6,194,563 (6,361,353 ) Total OPEB liability - beginning 289,394,278 268,308,897 269,554,133 162,628,638 168,823,20 1 Total OPEB liabilty - ending (a) 268,308,897 269,554,133 162,628,638 168,823,20 1 162,461,848 Plan Fiduciary Net Position (1)
Contribution - employer 4,213,032 5,398,279 6,108,66 1 146,570,084 1,485,734 Net investment income - - - 1,670,786 38,924,113
Benefit payments (4,213,032) (5,398,279) (6,094,869) (6,553,703) (7,361,127) Administrative expense -- ( 1 3 , 7 9 2 ) (49,752) (71,934) Net change in plan fiduciary
net position - - - 141,637,415 32,976,786 Plan fiduciary net position -
beginning - - - - 141,637,415 Plan fiduciary net position -
ending (b) - - - 141,637,415 174,614,201 Net OPEB liability/asset -
ending (a) - (b) 268,308,897$ 269,554,133 $ 162,628,638 $ 27,185,786 $ (12,152,353) $ Covered-employee payroll 111,311,408$ 127,657,357 $ 135,622,457 $ 137,353,524 $ 115,761,497 $ Net OPEB liability as a
percentage of covered-
em
ployee payroll 241.04% 211.15% 119.91% 122.91% 140.34%
* Fiscal year 2018 was the 1st year of implementation.

Notes to Schedule:
(1) The City opened a trust during fiscal year 2019-20, as such the presentation includes plan fiduciary net position, although no contributions were made to the trust during the measurement period ended June 30, 2019.

Changes in assumptions: The discount rate was changed from 3.87 percent to 6.75 percent for the measurement period ended June 30, 2019. Eligibility for Medicare assumption was changed based on recent plan experience. Mortality improvement scale was updated to Scale MP-2019.
160 246
City of Ontario
Required Supplementary Information
For the year ended June 30, 2022
Schedule of OPEB Contributions - Last 10 Years*
2018 2019 2020 2021 2022
Actuarially determined contribut 26,527,000$ 28,414,000 $ 30,643,000 $ 7,470,000 $ 7,806,000 $ Contribution in relation to the
actuarially determined
contribution (5,398,279) (6,108,661) (146,570,084) (1,485,734) (6,642,354) Contribution deficiency
(excess) 21,128,721 22,305,339 (115,927,084) 5,984,266 1,163,646 Covered-employee payroll 127,657,357$ 135,622,457 $ 142,599,18 1$ 137,353,524 $ 115,761,497 $ Contributions as a percentage
of covered-employee payroll -4.23% -4.50% -102.78% -1.08% -5.74% * Fiscal year 2018 was the 1st year of implementation.

Notes to Schedule:

Methods and assumptions used to determine contributions:

Actuarial cost method Entry Age Normal
Amortization valuation
method/
period Level percent of payroll; 15- year fixed period
Inflation 2.50% per annum
Discount rate 6.25%
Medical trend Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076 Mortality CalPERS 2000-2019 Experience Study
Mortality improvement Post-retirement mortality projected fully generational with Scape MP-2021 (1) The City opened a trust during fiscal year 2019-20, as such the presentation includes plan fiduciary net position, although no contributions were made to the trust during the measurement period ended June 30, 2019.

Actuarial methods and assumptions used to set the actuarially determined contribution for fiscal year 2021 were from the June 30, 2019 actuarial valuation.
161 247
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162 248

SUPPLEMENTARY INFORMATION
163 249
City of Ontario
Nonmajor Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds:

Special Gas Tax Fund is used to account for the receipts and disbursements of the state gas tax allocation that may be used for street related purposes.

Quiet Home Program Fund is used to account for purchase of house near the City of Ontario Airport to reduce the interior noise level within treated homes.

Park Impact / Quimby Fund is used to account for impact fees collected in relation to the use of the park and recreational facilities by inhabitants and the impact fees will be used to improve or rehabilitate existing parks.

Community Development Fund is used to account for housing rehab loan/grants from the California Department of Housing and Community development for single-family rehabilitation and first time buyer.

Asset Seizure Fund is used to account for receipt of seized assets that were the proceeds from, or used in illegal activities.

Mobile Source Air Pollution Fund is used to account for motor vehicle registration received from the South Coast Air Quality Management District to reduce air pollution from motor vehicles under the California Clean Air Act of 1988.

Special Assessment / Fee Districts Fund is used to account for handling the financial transactions of the City’s assessment districts, including Parks, Street Lights, and CFD Admin.

Grants Funds is used to account for miscellaneous grants monies that were received and are not accounted for in other specific grant funds
Cable Access Fund is used to account for PEG fee that was established to account for cost related to local public education and government access stations
Storm Drain Maintenance Fund is used to account for annual inspection and cleaning of all city storm drain and cleaning of debris and clearance of drainage system
Historic Preservation Fund is used to provide funding for the conservation, preservation, restoration and rehabilitation of historic resources within the city
NMC Public Services Fund is used to account for special revenues related to development projects that are then used for future public services needed due to those developments.

Broadband/Fiber Fund is used to account for assessment, design, and financially model the operational structure and technical requirements for the city-wide "Ontario Net" broadband initiative.

Affordability in Lieu Fund is used to account for non developer impact fee charged to the builders who are choosing to opt out of the construction of affordable housing.
164 250
City of Ontario
Nonmajor Governmental Funds, Continued
Year Ended June 30, 2022
Fire Mutual Aid Fund is used to account for financial transactions for any outside fire services provided to other agencies for local, state, or federal fire support.

NMC CFD Fund is used to account for newly created Ontario Ranch Areas special tax districts with imposed tax on properties to fund services, public improvements or infrastructure, schools, parks, fire, police to the development areas.

OMC Fund is used to account for established Ontario Area with special tax districts with imposed tax on properties to funds services, public improvements or infrastructure, schools, parks, fire, police to the development areas. 165 251
City of Ontario
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Quiet Home Park Impact / Community
Gas Tax Progra m Quimby Development
ASSETS
Cash and investments 7,630,010 $ 1,037,780 $ 41,516,143 $ - $ Receivables:

Accounts 946,712 - - 1,839,132 Taxes - - - - Notes and loans - - - 10,398,778 Accrued interest 29,814 - 162,219 - Advances to other funds - - - 5,961,399 Inventories - - - - Land held for resale - 57,832,232 - 51,050 Restricted assets:

Cash and investments - - - 35,775 Cash and investments with fiscal agents - - - - Total assets 8,606,536 58,870,012 41,678,362 18,286,134

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 485,491 - - 413,635 Accrued liabilities 54,325 - - 22,446 Unearned revenues - 863,420 - 8,012,591 Deposits payable - - - - Due to other governments - - - 2,489,326 Due to other funds - - - 648,248 Advances from other funds - - - - Total liabilities 539,816 863,420 - 11,586,246 Deferred Inflows of Resources
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund Balances:

Restricted for:

Community development projects 8,066,720 58,006,592 - 6,699,888 Public safety - - - - Park development - - 41,678,362 - Affordable housing - - - AQMD activities - - - Fiber/broadband - - - - Public services - - - Total fund balances 8,066,720 58,006,592 41,678,362 6,699,888 Total liabilities, deferred inflows of resources and
fund balances 8,606,536$ 58,870,012 $ 41,678,362 $ 18,286,134 $ Special Revenue Funds
166 252
Special
Asset Mobile Source Assessment / Cable Storm Drain
Seizure Air Pollution Fee Districts Grants Access Maintenance 3,343,202$ 1,345,232 $ 5,752,659 $ - $ 2,045,411$ 574,426 $ 950 59,861 17,611 5,640,591 51,252 67,273 - - 8,914 - - - - - - 14,729,325 - - 13,063 5,256 9,082 - 7,993 2,245 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,357,215 1,410,349 5,788,266 20,369,916 2,104,656 643,944 - 146,391 150,202 1,703,782 - 62,047 75,869 478 12,494 31,028 - 23,195 - - - 576,820 - - 432,672 - - 44,241 - 29,782 - - - - - - - - - 3,053,717 - - - - - - - - 508,541 146,869 162,696 5,409,588 - 115,024 - - - - - - - - - - - - - - 5,625,570 14,960,328 - 528,920 2,823,515 - - - - - - - - - - - 25,159 - - - - - - 1,263,480 - - - - - - - - - - - - - - 2,104,656 - 2,848,674 1,263,480 5,625,570 14,960,328 2,104,656 528,920 3,357,215$ 1,410,349 $ 5,788,266 $ 20,369,916 $ 2,104,656 $ 643,944 $ Special Revenue Funds
167 253
City of Ontario
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Historic NMC Public Broadband Affordability
Preservation Service s /Fiber in Lieu
ASSETS
Cash and investments 1,141,907 $ 4,470,962 $ 809,939 $ 27,651,837$ Receivables:

Accounts - 345,233 295,568 - Taxes - - - - Notes and loans - - - - Accrued interest 4,462 17,471 3,165 108,047 Advances to other funds - - - - Inventories - - 2,698,632 - Land held for resale - - - - Restricted assets:

Cash and investments - - - - Cash and investments with fiscal agents - - 14,169,590 - Total assets 1,146,369 4,833,666 17,976,894 27,759,884

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable - - 514,322 - Accrued liabilities - - 140,885 - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total liabilities - - 655,207 - Deferred Inflows of Resources
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund Balances:

Restricted for:

Community development projects 1,146,369 - - - Public safety - - - - Park development - - - - Affordable housing - - - 27,759,884 AQMD activities - - - - Fiber/broadband - - 17,321,687 - Public services - 4,833,666 - - Total fund balances 1,146,369 4,833,666 17,321,687 27,759,884 Total liabilities, deferred inflows of resources and
fund balances 1,146,369$ 4,833,666 $ 17,976,894 $ 27,759,884 $ Special Revenue Funds
168 254
S
Total Nonmajor
Fire Mutual Governmental
Aid NMC CFD OMC CFD NMC CFD OMC CFD Funds
1,015,107$ 206,441 $ 98,218 $ - $ - $ 98,639,274$ - 368,576 - - - 9,632,759 - 126,840 514 - - 136,268 - - - - - 25,128,103 3,967 139 - - - 366,923 - - - - - 5,961,399 - - - - - 2,698,632 - - - - - 57,883,282 - - - - - 35,775 - - - - - 14,169,590 1,019,074 701,996 98,732 - - 214,652,005 - (106,278) - - - 3,369,592 - - - - - 360,720 - - - - - 9,452,831 - - - - - 506,695 - - - - - 2,489,326 - - - - - 3,701,965 - - - - - - - (106,278) - - - 19,881,129 - 368,576 - - - 368,576 - 368,576 - - - 368,576 - - - - - 95,034,387 - - - - - 2,823,515 - - - - - 41,678,362 - - - - - 27,785,043 - - - - - 1,263,480 - - - - - 17,321,687 1,019,074 439,698 98,732 - - 8,495,826 1,019,074 439,698 98,732 - - 194,402,300 1,019,074$ 701,996 $ 98,732 $ - $ - $ 214,652,005$ Capital Project FundsSpecial Revenue Funds
169 255
City of Ontario
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Special Quiet Home Park Impact / Community
Gas Tax Program Quimby Development
REVENUES:

Taxes -$ - $ - $ - $ Special assessment taxes ----
Licenses and permits ----
Intergovernmental 7,934,252 - - 3,737,132
Contribution from property owners ----
Charges for services - - 14,133,834 -
Use of money and property (127,131) - (733,108 ) 180,036 Fines and forefeitures ----
Miscellaneous 13,848 - - -
Total revenues 7,820,969 - 13,400,726 3,917,168 EXPENDITURES:

Current:

General government ----
Public safety - - - 174,445
Community development 4,398,553 - 33,109 3,391,187
Public works 1,861,538 - - 171,500
Capital outlay ----
Debt service:

Principal retirement - - 4,675,812 -
Interest and fiscal charges - - 324,188 -
Total expenditures 6,260,091 - 5,033,109 3,737,132

REVENUES OVER (UNDER)
EXPENDITURES 1,560,878 - 8,367,617 180,036 OTHER FINANCING SOURCES (USES):

Transfers in 90,000 - - - Transfers out (67,104) - - - Notes and loans issued - - - - Total other financing sources (uses) 22,896 - - -
Special item - - - -
Net change in fund balances 1,583,774 - 8,367,617 180,036 FUND BALANCES:

Beginning of year 6,482,946 58,006,592 33,310,745 6,519,852 Restatement ----
Beginning of year, as restated 6,482,946 58,006,592 33,310,745 6,519,852 End of year 8,066,720$ 58,006,592 $ 41,678,362 $ 6,699,888 $ Special Revenue Funds
170 256
Special
Asset Mobile Source Assessment / Cable Storm Drain
Seizure Air Pollution Fee Districts Grants Access Maintenance -$ - $ - $ - $ - $ - $ - - 1,021,338 - 263,969 -
------
199,795 235,212 - 21,860,197 - 6,939
------
- - - - - 1,263,087
(61,743
) (22,296) (49,524) -( 3 5 , 6 6 9 ) (8,676)
------
- - 2,112,055 539,992 - -
138,052 212,916 3,083,869 22,400,189 228,300 1,261,350 - 1,677 739,093 - - -
112,893 - - 1,120,22
1 --
- 153,040 3,152,347 6,334,425 - 749,779
- 549,595 1,085,850 - - 427,492
------
------
------
112,893 704,312 4,977,290 7,454,646 - 1,177,271 25,159 (491,396) (1,893,421) 14,945,543 228,300 84,079 - - 238,983 258,351 - 22,500 - (1,231) (176,975) - - (27,513) - - - - - - -( 1 , 2 3 1 ) 62,008 258,35 1 -( 5 , 0 1 3 )
------
25,159 (492,627) (1,831,413) 15,203,894 228,300 79,066 2,823,515 1,756,107 7,456,983 (243,566 ) 1,876,356 449,854 ------
2,823,515 1,756,107 7,456,983 (243,566 ) 1,876,356 449,854 2,848,674$ 1,263,480 $ 5,625,570 $ 14,960,328 $ 2,104,656 $ 528,920 $ Special Revenue Funds
171 257
City of Ontario
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Historic NMC Public Broadband Affordability
Preservation Services /Fiber in Lieu
REVENUES:

Taxes -$ - $ - $ - $ Special assessment taxes ----
Licenses and permits ----
Intergovernmental ----
Contribution from property owners ----
Charges for services 661,736 4,122,064 1,056,580 5,800,850 Use of money and property (16,691) (90,022) (14,703) (467,653) Fines and forefeitures ----
Miscellaneous - - 62,599 -
Total revenues 645,045 4,032,042 1,104,476 5,333,197 EXPENDITURES:

Current:

General government - - 3,502,134 -
Public safety ----
Community development ----
Public works ----
Capital outlay ----
Debt service:

Principal retirement ----
Interest and fiscal charges ----
Total expenditures - - 3,502,134 -

REVENUES OVER (UNDER)
EXPENDITURES 645,045 4,032,042 (2,397,658) 5,333,197 OTHER FINANCING SOURCES (USES):

Transfers in - - 37,500 - Transfers out - (9,819,324) (29,078) - Notes and loans issued - - 18,031,000 - Total other financing sources (uses) - (9,819,324 ) 18,039,422 - Special item - - - -
Net change in fund balances 645,045 (5,787,282) 15,641,764 5,333,197 FUND BALANCES:

Beginning of year 501,324 10,620,948 1,679,923 22,426,687 Restatement ----
Beginning of year, as restated 501,324 10,620,948 1,679,923 22,426,687 End of year 1,146,369$ 4,833,666 $ 17,321,687 $ 27,759,884 $ Special Revenue Funds
172 258
Total Nonmajor
Fire Mutual Governmental
Aid NMC CFD OMC CFD NMC CFD OMC CFD Funds
-$ - $ - $ - $ - $ - $ - 10,377,606 112,79 1 - - 11,775,704
------
1,829,140 - - - - 35,802,667
------
- - - - - 27,038,15
1 (5,665) (1,678) (547) - - (1,455,070 )
------
(477) - - - - 2,728,017
1,822,998 10,375,928 112,244 - - 75,889,469 - 10,033,504 13,827 - - 14,290,235
1,503,924 - - - - 2,911,483
- 224,917 5,350 - - 18,442,707
- - - - - 4,095,975
------
- - - - - 4,675,812
- - - - - 324,188
1,503,924 10,258,421 19,177 - - 44,740,400 319,074 117,507 93,067 - - 31,149,069 700,000 - - - - 1,347,334 - - - - - (10,121,225) - - - - - 18,031,000 700,000 - - - - 9,257,109
------
1,019,074 117,507 93,067 - - 40,406,178 - 322,19 1 5,665 35,716,683 22,054 189,734,859
- - - (35,716,683 ) (22,054) (35,738,737)
- 322,19 1 5,665 - - 153,996,122
1,019,074$ 439,698 $ 98,732 $ - $ - $ 194,402,300$ Capital Project FundsSpecial Revenue Funds
173 259
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Special Gas Tax
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 8,609,538 $ 8,609,538 $ 7,934,252 $ (675,286) $ Use of money and property 76,550 76,550 (127,131 ) (203,681) Miscellaneous - - 13,848 13,848
Total revenues 8,686,088 8,686,088 7,820,969 (865,119) EXPENDITURES:

Current:

Community development 9,552,363 9,552,363 4,398,553 5,153,810 Public works 2,261,391 2,261,391 1,861,538 399,853
Total expenditures 11,813,754 11,813,754 6,260,091 5,553,663

REVENUES OVER (UNDER)
EXPENDITURES (3,127,666) (3,127,666) 1,560,878 (6,418,782) OTHER FINANCING SOURCES (USES):

Transfers in 90,000 90,000 90,000 - Transfers out (67,104) (67,104) (67,104) - Total other financing sources (uses) 22,896 22,896 22,896 - Net change in fund balances (3,104,770)$ (3,104,770) $ 1,583,774 (6,418,782) $ FUND BALANCES:

Beginning of year 6,482,946
End of year 8,066,720$
Budget Amounts
174 260
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Quiet Home Program
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 439,000 $ 439,000 $ - $ (439,000)$ Contribution from property owners 627,550 627,550 - (627,550 ) Total revenues 1,066,550 1,066,550 - (1,066,550) EXPENDITURES:

Current:

Community development 1,066,550 1,066,550 - 1,066,550
Total expenditures 1,066,550 1,066,550 - 1,066,550

REVENUES OVER (UNDER)
EXPENDITURES - - - (2,133,100) Net change in fund balances -$ - $ - (2,133,100)$ FUND BALANCES:

Beginning of year 58,006,592
End of year 58,006,592$
Budget Amounts
175 261
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park Impact/Quimby
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 2,617,000 $ 2,617,000 $ 14,133,834 $ 11,516,834 $ Use of money and property 469,125 469,125 (733,108 ) (1,202,233) Total revenues 3,086,125 3,086,125 13,400,726 10,314,601 EXPENDITURES:

Current:

Community development 2,803,098 2,803,098 33,109 2,769,989 Debt service:

Principal retirement 4,598,104 4,598,104 4,675,812 (77,708 ) Interest and fiscal charges 401,896 401,896 324,188 77,708 Total expenditures 7,803,098 7,803,098 5,033,109 2,769,989

REVENUES OVER (UNDER)
EXPENDITURES (4,716,973) (4,716,973) 8,367,617 7,544,612 Net change in fund balances (4,716,973)$ (4,716,973) $ 8,367,617 7,544,612 $ FUND BALANCES:

Beginning of year 33,310,745
End of year 41,678,362$
Budget Amounts
176 262
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 8,953,806 $ 8,953,806 $ 3,737,132 $ (5,216,674) $ Use of money and property - - 180,036 180,036
Total revenues 8,953,806 8,953,806 3,917,168 (5,036,638) EXPENDITURES:

Current:

General government 44,682 44,682 - 44,682
Public safety 189,783 189,783 174,445 15,338
Community development 8,542,656 8,542,656 3,391,187 5,151,469 Public works 175,000 175,000 171,500 3,500
Total expenditures 8,952,121 8,952,121 3,737,132 5,214,989

REVENUES OVER (UNDER)
EXPENDITURES 1,685 1,685 180,036 (10,251,627) Net change in fund balances 1,685$ 1,685 $ 180,036 (10,251,627)$ FUND BALANCES:

Beginning of year 6,519,852
End of year 6,699,888$
Budget Amounts
177 263
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Asset Seizure
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental - $ - $ 199,795$ 199,795 $ Use of money and property -- ( 6 1 , 7 4 3 ) (61,743)
Total revenues - - 138,052 138,052 EXPENDITURES:

Current:

Public safety 661,000 661,000 112,893 548,107
Total expenditures 661,000 661,000 112,893 548,107

REVENUES OVER (UNDER)
EXPENDITURES (661,000) (661,000) 25,159 (410,055) Net change in fund balances (661,000)$ (661,000) $ 25,159 (410,055)$ FUND BALANCES:

Beginning of year 2,823,515
End of year 2,848,674$
Budget Amounts
178 264
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Mobile Source Air Pollution
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 215,000 $ 215,000 $ 235,212 $ 20,212 $ Use of money and property 24,495 24,495 (22,296 ) (46,791) Total revenues 239,495 239,495 212,916 (26,579) EXPENDITURES:

Current:

General government 1,646 1,646 1,677 (31 )
Community development 211,259 211,259 153,040 58,219
Public works 1,089,014 1,089,014 549,595 539,419
Total expenditures 1,301,919 1,301,919 704,312 597,607

REVENUES OVER (UNDER)
EXPENDITURES (1,062,424) (1,062,424) (491,396) (624,186) OTHER FINANCING SOURCES (USES):

Transfers out (805) (805) (1,231) (426) Total other financing sources (uses) (805) (805) (1,231) (426) Net change in fund balances (1,063,229)$ (1,063,229) $ (492,627) (624,612) $ FUND BALANCES:

Beginning of year 1,756,107
End of year 1,263,480$
Budget Amounts
179 265
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Special Assessment / Fee Districts
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessment taxes 1,045,000 $ 1,045,000 $ 1,021,338 $ (23,662) $ Use of money and property 107,310 107,310 (49,524 ) (156,834) Miscellaneous 2,842,900 2,842,900 2,112,055 (730,845 )
Total revenues 3,995,210 3,995,210 3,083,869 (911,341) EXPENDITURES:

Current:

General government 357,799 357,799 739,093 (381,294 )
Community development 3,666,913 3,666,913 3,152,347 514,566 Public works 1,695,723 1,695,723 1,085,850 609,873
Total expenditures 5,720,435 5,720,435 4,977,290 743,145

REVENUES OVER (UNDER)
EXPENDITURES (1,725,225) (1,725,225) (1,893,421) (1,654,486) OTHER FINANCING SOURCES (USES):

Transfers in 397,000 397,000 238,983 (158,017) Transfers out (176,975) (176,975) (176,975) - Total other financing sources (uses) 220,025 220,025 62,008 (158,017) Net change in fund balances (1,505,200)$ (1,505,200) $ (1,831,413) (1,812,503) $ FUND BALANCES:

Beginning of year 7,456,983
End of year 5,625,570$
Budget Amounts
180 266
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Grants
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 40,932,775 $ 40,932,775 $ 21,860,197 $ (19,072,578) $ Miscellaneous 685,780 685,780 539,992 (145,788 )
Total revenues 41,618,555 41,618,555 22,400,189 (19,218,366) EXPENDITURES:

Current:

General government 72,225 72,225 - 72,225
Public safety 2,998,284 2,998,284 1,120,22 1 1,878,063
Community development 38,809,367 38,809,367 6,334,425 32,474,942 Total expenditures 41,879,876 41,879,876 7,454,646 34,425,230

REVENUES OVER (UNDER)
EXPENDITURES (261,321) (261,321) 14,945,543 (53,643,596) OTHER FINANCING SOURCES (USES):

Transfers in 258,351 258,351 258,351 - Total other financing sources (uses) 258,351 258,351 258,351 - Net change in fund balances (2,970)$ (2,970) $ 15,203,894 (53,643,596) $ FUND BALANCES:

Beginning of year (243,566)
End of year 14,960,328$
Budget Amounts
181 267
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cable Access
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessment taxes 200,000 $ 200,000 $ 263,969 $ 63,969 $ Use of money and property -- ( 3 5 , 6 6 9 ) (35,669)
Total revenues 200,000 200,000 228,300 28,300 EXPENDITURES:

Current:

Community development 52,000 52,000 - 52,000
Total expenditures 52,000 52,000 - 52,000

REVENUES OVER (UNDER)
EXPENDITURES 148,000 148,000 228,300 (23,700) Net change in fund balances 148,000$ 148,000 $ 228,300 (23,700) $ FUND BALANCES:

Beginning of year 1,876,356
End of year 2,104,656$
Budget Amounts
182 268
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain Maintenance
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental - $ - $ 6,939$ 6,939 $ Charges for services 1,380,000 1,380,000 1,263,087 (116,913 ) Use of money and property 7,400 7,400 (8,676 ) (16,076) Total revenues 1,387,400 1,387,400 1,261,350 (126,050) EXPENDITURES:

Current:

Community development 997,489 997,489 749,779 247,710
Public works 518,299 518,299 427,492 90,807
Total expenditures 1,515,788 1,515,788 1,177,271 338,517

REVENUES OVER (UNDER)
EXPENDITURES (128,388) (128,388) 84,079 (464,567) OTHER FINANCING SOURCES (USES):

Transfers in 22,500 22,500 22,500 - Transfers out (27,513) (27,513) (27,513) - Total other financing sources (uses) (5,013) (5,013) (5,013) - Net change in fund balances (133,401)$ (133,401) $ 79,066 (464,567)$ FUND BALANCES:

Beginning of year 449,854
End of year 528,920$
Budget Amounts
183 269
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Historic Preservation
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services - $ - $ 661,736$ 661,736 $ Use of money and property 6,250 6,250 (16,691 ) (22,941) Total revenues 6,250 6,250 645,045 638,795 Net change in fund balances 6,250$ 6,250 $ 645,045 638,795 $ FUND BALANCES:

Beginning of year 501,324
End of year 1,146,369$
Budget Amounts
184 270
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual NMC Public Services
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 1,140,000 $ 1,140,000 $ 4,122,064 $ 2,982,064 $ Use of money and property 248,610 248,610 (90,022 ) (338,632) Total revenues 1,388,610 1,388,610 4,032,042 2,643,432 OTHER FINANCING SOURCES (USES):

Transfers out (4,900,000) (4,900,000) (9,819,324) (4,919,324) Total other financing sources (uses) (4,900,000) (4,900,000) (9,819,324) (4,919,324) Net change in fund balances (3,511,390)$ (3,511,390) $ (5,787,282) (2,275,892) $ FUND BALANCES:

Beginning of year 10,620,948
End of year 4,833,666$
Budget Amounts
185 271
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Broadband/Fiber
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 1,500,621 $ 1,500,621 $ 1,056,580 $ (444,041) $ Use of money and property 56,075 56,075 (14,703 ) (70,778) Miscellaneous - - 62,599 62,599
Total revenues 1,556,696 1,556,696 1,104,476 (452,220) EXPENDITURES:

Current:

General government 17,879,895 17,879,895 3,502,134 14,377,76 1 Community development 6,431 6,431 -6 , 4 3 1
Total expenditures 17,886,326 17,886,326 3,502,134 14,384,192

REVENUES OVER (UNDER)
EXPENDITURES (16,329,630) (16,329,630) (2,397,658) (14,836,412) OTHER FINANCING SOURCES (USES):

Transfers in 37,500 37,500 37,500 - Transfers out (29,078) (29,078) (29,078) - Notes and loans issued - - 18,031,000 18,031,000 Total other financing sources (uses) 8,422 8,422 18,039,422 18,031,000 Net change in fund balances (16,321,208)$ (16,321,208) $ 15,641,764 3,194,588 $ FUND BALANCES:

Beginning of year 1,679,923
End of year 17,321,687$
Budget Amounts
186 272
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Affordability in Lieu
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 5,694,000 $ 5,694,000 $ 5,800,850 $ 106,850 $ Use of money and property 255,100 255,100 (467,653 ) (722,753) Total revenues 5,949,100 5,949,100 5,333,197 (615,903) EXPENDITURES:

Current:

Community development 9,730,190 9,730,190 - 9,730,190
Total expenditures 9,730,190 9,730,190 - 9,730,190

REVENUES OVER (UNDER)
EXPENDITURES (3,781,090) (3,781,090) 5,333,197 (10,346,093) Net change in fund balances (3,781,090)$ (3,781,090) $ 5,333,197 (10,346,093)$ FUND BALANCES:

Beginning of year 22,426,687
End of year 27,759,884$
Budget Amounts
187 273
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Mutual Aid
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 1,420,000 1,420,000 1,829,140 409,140 Use of money and property -- ( 5 , 6 6 5 ) (5,665)
Miscellaneous -- ( 4 7 7 ) (477)
Total revenues 1,420,000 1,420,000 1,822,998 402,998 EXPENDITURES:

Current:

Public safety 1,418,000 1,418,000 1,503,924 (85,924 )
Total expenditures 1,418,000 1,418,000 1,503,924 (85,924)

REVENUES OVER (UNDER)
EXPENDITURES 2,000 2,000 319,074 488,922 OTHER FINANCING SOURCES (USES):

Transfers in 700,000 700,000 700,000 - Total other financing sources (uses) 700,000 700,000 700,000 - Net change in fund balances 702,000$ 702,000 $ 1,019,074 488,922 $ FUND BALANCES:

Beginning of year -
End of year 1,019,074$
Budget Amounts
188 274
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

NMC CFD
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessment taxes 10,229,656 $ 10,229,656 $ 10,377,606 $ 147,950 $ Use of money and property 2,375 2,375 (1,678 ) (4,053)
Total revenues 10,232,031 10,232,031 10,375,928 143,897 EXPENDITURES:

Current:

General government 620,000 620,000 10,033,504 (9,413,504 ) Community development 74,000 74,000 224,917 (150,917 )
Total expenditures 694,000 694,000 10,258,421 (9,564,421)

REVENUES OVER (UNDER)
EXPENDITURES 9,538,031 9,538,031 117,507 9,708,318 Net change in fund balances 9,538,031$ 9,538,031 $ 117,507 9,708,318 $ FUND BALANCES:

Beginning of year 322,191
End of year 439,698$
Budget Amounts
189 275
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

OMC CFD
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessment taxes 112,934 $ 112,934 $ 112,791 $ (143) $ Use of money and property 652 652 (547 ) (1,199)
Total revenues 113,586 113,586 112,244 (1,342) EXPENDITURES:

Current:

General government 9,000 9,000 13,827 (4,827 )
Community development 16,000 16,000 5,350 10,650
Total expenditures 25,000 25,000 19,177 5,823

REVENUES OVER (UNDER)
EXPENDITURES 88,586 88,586 93,067 (7,165) Net change in fund balances 88,586$ 88,586 $ 93,067 (7,165) $ FUND BALANCES:

Beginning of year 5,665
End of year 98,732$
Budget Amounts
190 276
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental 532,097 $ 532,097 $ 60,545 $ (471,552)$ Use of money and property 144,110 144,110 (104,060 ) (248,170) Miscellaneous 693,896 693,896 1,879,410 1,185,514
Total revenues 1,370,103 1,370,103 1,835,895 465,792 EXPENDITURES:

Current:

General government - - 54,590 (54,590 )
Public safety 2,961,699 2,961,699 260,283 2,701,416
Community development 71,476,410 71,476,410 15,632,272 55,844,138 Public works - - 13,048 (13,048 )
Debt service:

Principal retirement - - 34,516,908 (34,516,908 )
Total expenditures 74,438,109 74,438,109 50,477,101 23,961,008

REVENUES OVER (UNDER)
EXPENDITURES (73,068,006) (73,068,006) (48,641,206) (23,495,216) OTHER FINANCING SOURCES (USES):

Transfers in 6,509,095 6,509,095 6,464,116 (44,979) Notes and loans issued 51,500,000 51,500,000 136,526,765 85,026,765 Total other financing sources (uses) 58,009,095 58,009,095 142,990,881 84,981,786 Net change in fund balances (15,058,911)$ (15,058,911) $ 94,349,675 61,486,570 $ FUND BALANCES:

Beginning of year 28,740,082
End of year 123,089,757$
Budget Amounts
191 277
City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Impact Fees
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services 12,996,000 $ 12,996,000 $ 55,761,707 $ 42,765,707 $ Use of money and property 2,881,390 2,881,390 (3,373,046 ) (6,254,436) Miscellaneous - - 23,493 23,493
Total revenues 15,877,390 15,877,390 52,412,154 36,534,764 EXPENDITURES:

Current:

General government 5,701 5,701 -5 , 7 0 1
Public safety 7,782,150 7,782,150 1,764,294 6,017,856
Community development 79,722,053 79,722,053 26,958,577 52,763,476 Total expenditures 87,509,904 87,509,904 28,722,871 58,787,033

REVENUES OVER (UNDER)
EXPENDITURES (71,632,514) (71,632,514) 23,689,283 (22,252,269) OTHER FINANCING SOURCES (USES):

Transfers in 4,900,000 4,900,000 9,819,324 4,919,324 Total other financing sources (uses) 4,900,000 4,900,000 9,819,324 4,919,324 Net change in fund balances (66,732,514)$ (66,732,514) $ 33,508,607 (17,332,945) $ FUND BALANCES:

Beginning of year 134,322,043
End of year 167,830,650$
Budget Amounts
192 278
City of Ontario
Internal Service Funds
Year Ended June 30, 2022
Equipment Services Fund is used to account for costs of Ci ty's Vehicle and equipment maintenance.

Self Insurance Fund is used to account for costs of operating self insurance programs for general liability and worker's compensation.

Information Technology Fund is used to account for support for the operational departments with reliable system and information on a daily basis.

Facility Maintenance Fund is used to account for the maintenance of all city facilities. This includes improvements to existing facilities such as parks and city buildings.

Other Post Employment Benefits Fund is used to account for liability for all the benefit that the employee may receive after their retirement.

Pension Benefits Fund is used to account for liability and annual CALPERS contribution for employee retirement benefit.
193 279
City of Ontario
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Equipment Self Informatio n Facility
Services Insuranc e Technology Maintenance
ASSETS
Current Assets:

Cash and investments 37,262,353 $ 36,023,032 $ 6,543,59 9$ 7,804,898 $ Receivables:

Accounts 357,007 - 155,535 -
Accrued interest 145,60
0 13,732 25,56 9 31,790
N o t e s a n d l o a n s ----
Prepaid costs 2,44 0 539,470 2,472,354 -
D u e f r o m o t h e r f u n d s ----
Inventories 932,62
6 ---
Restricted:

Cash with fiscal agent - 435,31 4 - 4,525,282
Total current assets 38,700,02 6 37,011,548 9,197,057 12,361,97 0 Noncurrent:

Advances to other funds 3,792,438 7,347,03 6 1,895,719 - Land held for resale ----
Net pension asset 2,633,213 410,37 1 3,670,539 -
OPEB asset 561,44 0 87,496 782,611 -
Capital assets:

Nondepreciable 846,675 - 6,934,65 6 26,950,361
Depreciable 80,663,322 - 14,247,183 1,645,11 6
Less accumulated depreciation (49,447,046) - (7,723,502) (27,419) Net capital assets 32,062,95 1 - 13,458,337 28,568,058
Total noncurrent assets 39,050,042 7,844,903 19,807,20 6 28,568,058 Total assets 77,750,068 44,856,451 29,004,263 40,930,028

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension related items 404,798 63,087 564,26 4 - Deferred OPEB related items 373,227 58,16 6 520,257 -
Total deferred outflows of resources 778,025 121,253 1,084,521 -

LIABILITIES
Current liabilities:

Accounts payable 236,694 947,632 734,972 125,73 4
Accrued liabilities 93,19 9 32,884 163,835 62,632
Accrued interest - - - 251,50 1
Deposits payable - 1,002,452 - -
Compensated absences - current 221,88 1 27,083 506,503 75,328 Claims and judgements - current - 12,209,058 - -
Long-term debt - current portion - - - 1,604,667
Total current liabilities 551,77 4 14,219,109 1,405,310 2,119,862 Noncurrent liabilities:

A d v a n c e s f r o m o t h e r f u n d s ----
Com
pensated absences 39,155 4,77 9 111,184 13,293
Claims and judgements - 23,889,942 - -
Long-term debt - - - 30,607,58 4
Total noncurrent liabilities 39,155 23,894,72 1 111,184 30,620,877 Total liabilities 590,929 38,113,830 1,516,494 32,740,739

DEFERRED INFLOWS OF RESOURCES
Deferred pension related items 2,045,265 318,743 2,850,973 - Deferred OPEB related items 6,241,60 6 972,718 8,700,42 0 - Total deferred inflows of resources 8,286,871 1,291,461 11,551,393 -

NET POSITION
Net investment in capital assets 32,062,95 1 - 13,458,337 881,08 9 Unrestricted 37,587,342 5,572,413 3,562,56 0 7,308,200
Total net position 69,650,293$ 5,572,413 $ 17,020,897 $ 8,189,289 $ 194 280
Other Post
Employment Pensio n
Benefits Benefits Fund Totals
141,648$ 49,352,03 6$ 137,127,56 6$ 6,462,583 2,661,99 9 9,637,124
553 - 217,24 4
---
2,783 - 3,017,047
---
- - 932,62
6 - 45,007 5,005,603
6,607,567 52,059,042 155,937,21 0
- - 13,035,193
- 56,632,05 1 56,632,051
- - 6,714,123
7,165,028 - 8,596,575
- - 34,731,692
- - 96,555,62 1
-- (57,197,967)
- - 74,089,34 6
7,165,028 56,632,05 1 159,067,288
13,772,595 108,691,093 315,004,498 - - 1,032,14 9
4,763,092 - 5,714,742
4,763,092 - 6,746,891 13,530 - 2,058,562
- - 352,55 0
- 1,358,50 1 1,610,002
- - 1,002,452
- - 830,795
- - 12,209,058
- 5,190,00
0 6,794,667
13,530 6,548,501 24,858,086
- 94,805,64 0 94,805,640
- - 168,41 1
- - 23,889,942
- 223,665,00 0 254,272,584
- 318,470,64 0 373,136,577
13,530 325,019,141 397,994,663 - - 5,214,98 1
79,654,777 - 95,569,52 1
79,654,777 - 100,784,502 - - 46,402,377
(61,132,620) (216,328,048) (223,430,153)
(61,132,620)$ (216,328,048) $ (177,027,776) $ 195 281
City of Ontario
Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds
For the year ended June 30, 2022
Equipment Self Information Facility
Services Insurance Technology Maintenance
OPERATING REVENUES:

Interdepartamental charges 17,796,218$ 14,890,025 $ 14,694,387 $ 10,910,597 $ Miscellaneous 401,737 8,260 36,982 56,739
Total operating revenues 18,197,955 14,898,285 14,731,369 10,967,336 OPERATING EXPENSES:

Administration and general 3,689,334 14,640,848 5,151,387 6,982,099 Source and supply 5,251,242 - 7,565,138 -
Claims expense - 573,574 - -
Depreciation expense 6,294,311 - 1,592,993 27,419
Total operating expenses 15,234,887 15,214,422 14,309,518 7,009,518 Operating income (loss) 2,963,068 (316,137) 421,851 3,957,818 NONOPERATING REVENUES (EXPENSES):

Interest revenue (376,313) (78,154) (8,262) (75,678)
Interest expense - - - (880,431 )
Gain on joint venture ----
Gain on sale of other investments - - 1,980 -
Total nonoperating revenues (expenses) (376,313) (78,154) (6,282) (956,109) Income before contributions and transfers 2,586,755 (394,291) 415,569 3,001,709 CONTRIBUTIONS AND TRANSFERS:

Transfers in 3,203,100 23,100 8,419,300 9,831 Transfers out (128,392) (24,247) (148,076) - Total contributions and transfers 3,074,708 (1,147) 8,271,224 9,831 Change in net position 5,661,463 (395,438) 8,686,793 3,011,540 NET POSITION:

Beginning of year 68,696,820 7,005,085 17,535,043 5,177,749 Restatements (4,707,990) (1,037,234) (9,200,939) -
Beginning of year, as restated 63,988,830 5,967,85 1 8,334,104 5,177,749 End of year 69,650,293$ 5,572,413 $ 17,020,897 $ 8,189,289 $ 196 282
Other Post
Employment Pension
Benefits Benefits Fund Total s
40,620$ - $ 58,331,847$ 6,462,583 33,080,973 40,047,274
6,503,203 33,080,973 98,379,121 (5,191,752) 518,842 25,790,758 - - 12,816,380
- - 573,574
- - 7,914,723
(5,191,752) 518,842 47,095,435 11,694,955 32,562,131 51,283,686 1,310 226,882 (310,215
)
- (9,856,207 ) (10,736,638)
---
- 11,879,452 11,881,432
1,310 2,250,127 834,579 11,696,265 34,812,258 52,118,265 5,390,739 30,800,000 47,846,070 - - (300,715) 5,390,739 30,800,000 47,545,355 17,087,004 65,612,258 99,663,620 (142,418,527) (281,940,306) (325,944,136)
64,198,903 - 49,252,740
(78,219,624) (281,940,306) (276,691,396)
(61,132,620)$ (216,328,048 )$ (177,027,776 )$ 197 283
City of Ontario
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022
Equipment Self Information Facilitity
Services Insurance Technology Maintenance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from/(paid to) interfund services 18,287,989 $ 14,870,11 1$ 14,629,372 $ 12,019,593 $ Cash paid to suppliers for goods and services (5,809,749) 727,771 (8,870,152) - Cash paid to employees for services (5,443,084) (14,922,393) (7,554,596) (7,020,168) Net cash provided by (used in) operating activities 7,035,156 675,489 (1,795,376) 4,999,425 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 3,203,100 23,100 8,419,300 9,83 1
Cash transfers out (128,392) (24,247) (148,076) -
D u e t o o t h e r f u n d s ----
Advance from other funds 5,146,004 10,282,882 73,002 -
Interest
paid on pension obliga t i o n b o n d s ----
Principal paid on pension obliga t i o n b o n d s ---- Grant subsidy ----
Net cash provided by (used in)
noncapital financing activities 8,220,712 10,281,735 8,344,226 9,831 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (4,935,970) - (6,029,550) (14,483,915) Acqu i s i t i o n o f o t h e r i n v e s t m e n t s ---- Interest paid on capi t a l d e b t --- (757,961)
Principal paid on debt - - - (1,232,392)
P r o c e e d f r o m i s s u a n c e o f d e b t ---- Net cash provided by (used in)
capital and related financing activities (4,935,970) - (6,029,550) (16,474,268) CASH FLOWS FROM INVESTING ACTIVITIES:

Change i n i n v e s t m e n t s ----
Interest received (521,913) (91,887) (31,851) (107,390) Net cash provided by (used in) investing activities (521,913) (91,887) (31,851) (107,390) Net cash flows 9,797,985 10,865,337 487,449 (11,572,402) CASH AND INVESTMENTS - Beginning of year 27,464,368 25,593,009 6,056,150 23,902,582 CASH AND INVESTMENTS - End of year 37,262,353$ 36,458,346 $ 6,543,599 $ 12,330,180 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 2,963,068$ (316,137)$ 421,85 1$ 3,957,818 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 6,294,31 1 - 1,592,993 27,419
(Increase) decrease in accounts receivable 90,034 (28,174) (101,997) 1,052,257 (Increase) decrease in prepaid expense (1,976) (539,470) (324,727) 3,891 (Increase) decrease in inventories (89,709) ---
Increase (decrease) in accounts payable (479,739) 232,278 (1,015,653) (45,881) Increase (decrease) in accrued liabilities 12,917 14,728 35,366 7,950 Increase (decrease) i n u n e a r n e d r e v e n u e s ---- Increase (decrease) in deposits payable - 1,002,452 - - Increase (decrease) in claims and judgements - 591,357 - - Increase (decrease) in compensated absences (3,610) (8,796) 36,380 (4,029) Increase (decrease) in net pension liability (2,739,758) (426,975) (3,819,057) - Increase (decrease) in deferred pension related items 2,338,257 364,403 3,259,389 - Increase (decrease) in OPEB liability (1,817,423) (283,234) (2,533,376) - Increase (decrease) in deferred OPEB related items 468,784 73,057 653,455 - Net cash provided by (used in) operating activities 7,035,156$ 675,489 $ (1,795,376)$ 4,999,425 $ 198 284
Other Post
Employment Pension
Benefits Benefits Fund Total s
5,934,366$ 30,441,312 $ 96,182,743 $ - (52,572) (14,004,702)
(11,637,246) (518,842) (47,096,329)
(5,702,880) 29,869,898 35,081,712 5,390,739 30,800,000 47,846,070
-- (300,715)
- (1,494) (1,494)
- (33,650,096) (18,148,208)
- (9,180,719) (9,180,719)
- (4,360,000) (4,360,000)
---
5,390,739 (16,392,309) 15,854,934 -- (25,449,435)
- 23,813,113 23,813,113
-- (757,961)
-- (1,232,392)
---
- 23,813,113 (3,626,675) ---
1,867 12,106,334 11,355,160
1,867 12,106,334 11,355,160 (310,274) 49,397,036 58,665,131 451,922 7 83,468,038 141,648$ 49,397,043 $ 142,133,169 $ 11,694,955$ 32,562,13 1$ 51,283,686 $ - - 7,914,723
(568,837) (2,639,661) (2,196,378)
368,669 - (493,613)
-- (89,709)
13,530 (52,572) (1,348,037)
- - 70,96 1
---
- - 1,002,452
- - 591,357
- - 19,945
--
(6,985,790)
- - 5,962,049
(23,193,767) - (27,827,800)
5,982,570 - 7,177,866
(5,702,880)$ 29,869,898 $ 35,081,712 $ 199 285
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200 286
City of Ontario
Custodial Funds
Year Ended June 30, 2022
Redevelopment Financing Authority Fund was used to account for amounts related to the redevelopment agency's financing authority. The City made the determination to roll the fund up into the Successor Agency Fund during the current year, and as such, the fund will no longer be separately reported after June 30, 2022.

West End Communications Authority Fund is used to account for the financial activities of the 7 member, now dissolved, JPA Board with the purpose of providing a cooperative voluntary association, to establish, operate and maintain a consolidated 800 MHZ communication system designed to serve public safety agencies throughout the western end of San Bernardino County, California.

Assessment District Bond Redemption Funds are used to account for the financial activities of old Community Facilities Districts, these funds are the older version of modern CFD funds, the City is the fiduciary for any special tax levies used for bond payments, services, and facilities.

Sanitary Collection Treatment Fund is used to account for the collection of wastewater fees, some of which are collected on behalf of Inland Empire Utilities Agency and then passed through as payments to them.

West End Fire Emergency Response Commission Fund is used to account for the financial activities of the five member Commission formed by a JPA for which Ontario is the treasurer. The Commission was established as a hazardous materials response team to carry out the abatement and emergency control of hazardous waste conditions and to stabilize such conditions until they can be turned over to the County Environmental Health Department.

NMC CFD Funds are used to account for newly created Ontario Ranch Areas special tax districts with imposed tax on properties to fund services, public improvements or infrastructure.

OMC CFD Funds are used to account for established Ontario Area with special tax districts with imposed tax on properties to funds services, public improvements or infrastructure.

CFD Fund is used to account for the purpose of financing public improvement services , the services may include streets, water, sewage , electrical, schools, or parks and other public services to newly developed areas. 201 287
City of Ontario
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2022
Redevelopment West End Assessment District Sanitary
Financing Communications 106 Bond Collection
Authority Authority Redemption Treatment
ASSETS
Cash and investments -$ 1,373,078$ 165,195 $ 27,510,733 $ Receivables:

Accounts - - - 21,839
Taxes ----
Notes and leases ----
Accrued interest - 5,365 645 -
Restricted assets:

Cash and investments with fiscal agents ----
Total assets - 1,378,443 165,840 27,532,572

LIABILITIES
Accounts payable ----
Due to other governments - - - 10,929,507
Total liabilities - - - 10,929,507

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 1,378,443 165,840 16,603,065 Held in trust for private purposes ----
Total Net Position -$ 1,378,443$ 165,840 $ 16,603,065$ 202 288
Reassessment Assessment District Assessment District Assessment District Assessment District Assessment District Bond 100C Bond 103 Bond 104 Bond 108 Bond 107 Bond
Redemption Redemption Redemption Redemption Redemption Redemption -$ - $ - $ - $ 140,666$ - $ ------
------
------
---- 5 5 0-
------
- - - - 141,216 - ------
------
- - - - - - ---- 141,216 -
------
-$ - $ - $ - $ 141,216$ - $ 203 289
City of Ontario
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2022
West End Fire
and Emergency
Response NMC CFD
Commission Developer Deposits NMC CFD #28 NMC CFD #30
ASSETS
Cash and investments 757,383$ 721,035 $ 62,728 $ (80,035 )$ Receivables:

Accounts ----
Taxes - - 6,830 9,746
Notes and leases ----
Accrued interest 2,959 - 1,334 1,03 1
Restricted assets:

Cash and investments with fiscal agents - - 1,293,552 1,855,692 Total assets 764,451 721,035 1,364,444 1,786,434

LIABILITIES
Accounts payable 19,443 - - -
Due to other governments ----
Total liabilities 19,443 721,035 - -

NET POSITION
Restricted for:

Individuals, organizations, and other governments 745,008 - 1,364,444 1,786,434 Held in trust for private purposes ----
Total Net Position 745,008$ - $ 1,364,444$ 1,786,434 $ 204 290
NMC CFD #34 NMC CFD #24 NMC CFD #25 NMC CFD #26 NMC CFD #3 1 NMC CFD #39 25,128$ 41,145 $ (58,031 )$ (51,560 )$ 238,964 $ 214,70 1$ ------
4,974 8,216 11,632 5,893 - -
------
674 1,789 688 923 1,70 1 1,194
1,036,038 1,934,29 1 1,237,993 1,663,887 913,000 639,708 1,066,814 1,985,441 1,192,282 1,619,143 1,153,665 855,603 ------
------
- - - - - - 1,066,814 1,985,44 1 1,192,282 1,619,143 1,153,665 855,603 ------
1,066,814$ 1,985,441 $ 1,192,282 $ 1,619,143 $ 1,153,665 $ 855,603 $ 205 291
City of Ontario
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2022
OMC CFD #5 OMC CFD #13 NMC CFD #38 CFD #33
ASSETS
Cash and investments -$ 237,033$ 13,944 $ - $ Receivables:

Accounts ----
Taxes - - 10,236 -
Notes and leases ----
Accrued interest - 1,340 1,258 -
Restricted assets:

Cash and investments with fiscal agents - 743,178 2,146,152 - Total assets - 981,551 2,171,590 -

LIABILITIES
Accounts payable ----
Due to other governments ----
Total liabilities - - - -

NET POSITION
Restricted for:

Individuals, organizations, and other governments - 981,55 1 2,171,590 - Held in trust for private purposes ----
Total Net Position -$ 981,551$ 2,171,590 $ - $ 206 292
NMC CFD #40 NMC CFD #43 NMC CFD #45 NMC CFD #33 NMC CFD #46 NMC CFD #4 1 36,580$ (8,553 )$ 417,973 $ 508,635 $ (55,433 )$ 530 $ ------
2,207 6,366 8,904 3,316 9,513 62,018
------
1,184 1,468 6,560 1,454 2,555 8,714
1,873,184 2,640,046 8,864,40 1 1,220,508 4,599,885 15,677,332 1,913,155 2,639,327 9,297,838 1,733,913 4,556,520 15,748,594 106,280 - - - - -
------
106,280 - - - - - 1,806,875 2,639,327 9,297,838 1,733,913 4,556,520 15,748,594 ------
1,806,875$ 2,639,327 $ 9,297,838 $ 1,733,913 $ 4,556,520 $ 15,748,594 $ 207 293
City of Ontario
Combining Statement of Fiduciary Net Position
Custodial Funds
For the year ended June 30, 2022
NMC CFD #42 NMC CFD #53 NMC CFD #54 NMC CFD #55
ASSETS
Cash and investments 8,567$ (68,638 )$ 8,654 $ 105,440 $ Receivables:

Accounts ----
Taxes 1,706 27,852 6,345 1,940
Notes and leases ----
Accrued interest 222 11,547 3,457 -
Restricted assets:

Cash and investments with fiscal agents 7,113,859 20,757,874 6,431,195 - Total assets 7,124,354 20,728,635 6,449,651 107,380

LIABILITIES
Accounts payable ----
Due to other governments ----
Total liabilities - - - -

NET POSITION
Restricted for:

Individuals, organizations, and other governments 7,124,354 20,728,635 6,449,65 1 107,380 Held in trust for private purposes ----
Total Net Position 7,124,354$ 20,728,635 $ 6,449,651 $ 107,380 $ 208 294
Total
Custodial
NMC CFD #57 Fund s
140,655$ 32,406,517 $
- 21,839
- 187,694
--
1 58,613
- 82,641,775
140,656 115,320,547
- 125,723
- 10,929,507
- 11,776,265
140,656 103,544,282
--
140,656$ 103,544,282$
209 295
City of Ontario
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
Redevelopment West End Assessment District Sanitary
Financing Communications 106 Bond Collection
Authority Authority Redemption Treatment
ADDITIONS:

Taxes -$ - $ - $ - $ Interest and change in fair value of investments -( 2 4 , 2 4 5 ) (2,909) - Fee collections for other governments ----
Bond proceeds and premiums ----
Total additions - (24,245) (2,909) - DEDUCTIONS:

Administrative expenses -6 , 4 4 2 - -
Payments on conduit bonds - principal ----
Interest and fiscal charges ----
Contributions to other governments ----
Total deductions - 6,442 - - Change in net position - (30,687) (2,909) - NET POSITION:

Beginning of year 54,018,572 1,409,130 168,749 16,603,065 Restatements (54,018,572) ---
Beginning of year, as restated - 1,409,130 168,749 16,603,065 End of year - $ 1,378,443$ 165,840 $ 16,603,065$ 210 296
Reassessment Assessment District Assessment District Assessment District Assessment District Assessment District Bond 100C Bond 103 Bond 104 Bond 108 Bond 107 Bond
Redemption Redemption Redemption Redemption Redemption Redemption -$ - $ - $ - $ - $ - $ ---- ( 2 , 4 7 3 ) -
------
------
- - - - (2,473) - ------
------
------
------
- - - - - - - - - - (2,473) - ---- 143,689 -
------
---- 143,689 -
-$ - $ - $ - $ 141,216$ - $ 211 297
City of Ontario
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
West End Fire
and Emergency
Response NMC CFD
Commission Developer Deposits NMC CFD #28 NMC CFD #30
ADDITIONS:

Taxes -$ - $ 627,766$ 965,362 $ Interest and change in fair value of investments (12,857) -( 2 2 7 ) 1,317 Fee collections for other governments 124,741 - 414 88
Bond proceeds and premiums ----
Total additions 111,884 - 627,953 966,767 DEDUCTIONS:

Administrative expenses 68,184 - 67,500 92,552
Payments on conduit bonds - principal - - 180,000 280,000 Interest and fiscal charges - - 377,394 511,619
Contributions to other governments - - 406 48
Total deductions 68,184 - 625,300 884,219 Change in net position 43,700 - 2,653 82,548 NET POSITION:

Beginning of year 701,308 - 1,360,406 1,696,019
Restatements - - 1,385 7,867
Beginning of year, as restated 701,308 - 1,361,79 1 1,703,886 End of year 745,008 $ - $ 1,364,444$ 1,786,434 $ 212 298
NMC CFD #34 NMC CFD #24 NMC CFD #25 NMC CFD #26 NMC CFD #3 1 NMC CFD #39 540,957$ 1,099,572 $ 691,202 $ 697,899 $ 360,102 $ 402,895 $ 129 1,442 1,068 1,467 (3,097 ) (5,367)
73 789,609 47,627 314,862 5,855 33
------
541,159 1,890,623 739,897 1,014,228 362,860 397,561 51,423 15,220 107,650 1,655,095 38,934 40,146
160,000 335,000 145,000 150,000 105,000 100,000
291,756 652,169 376,575 384,550 202,843 191,200
27 789,594 3
1 221,093 5,414 18
503,206 1,791,983 629,256 2,410,738 352,191 331,364 37,953 98,640 110,641 (1,396,510) 10,669 66,197 1,015,797 1,886,769 1,059,586 1,221,893 995,519 784,948 13,064 32 22,055 1,793,760 147,477 4,458
1,028,861 1,886,801 1,081,641 3,015,653 1,142,996 789,406 1,066,814$ 1,985,441 $ 1,192,282 $ 1,619,143 $ 1,153,665 $ 855,603 $ 213 299
City of Ontario
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
OMC CFD #5 OMC CFD #13 NMC CFD #38 CFD #33
ADDITIONS:

Taxes -$ 308,437$ 807,946 $ - $ Interest and change in fair value of investments -( 3 , 7 3 8 ) 1,116 - Fee collections for other governments - 6 103 -
Bond proceeds and premiums ----
Total additions - 304,705 809,165 - DEDUCTIONS:

Administrative expenses - 34,876 126,040 -
Payments on conduit bonds - principal - 3,610,000 180,000 - Interest and fiscal charges - 201,353 460,369 -
Contributions to other governments -3 3 9 -
Total deductions - 3,846,232 766,448 - Change in net position - (3,541,527) 42,717 - NET POSITION:

Beginning of year - 4,523,077 1,431,026 -
Restatements - 1 697,847 -
Beginning of year, as restated - 4,523,078 2,128,873 -
End of year - $ 981,551$ 2,171,590 $ - $ 214 300
NMC CFD #40 NMC CFD #43 NMC CFD #45 NMC CFD #33 NMC CFD #46 NMC CFD #4 1 495,628$ 1,062,970 $ 645,219 $ 502,95 1$ 539,614 $ 606,082 $ (1,094) (1,539) (1,916) (3,275) 4,369 12,685
6,213 5,138 72 60 157,864 14,334,955
----- 1 5 , 2 7 5 , 7 8 3
500,747 1,066,569 643,375 499,736 701,847 30,229,505 2,916,730 4,633,678 686,864 5,377,36 1 3,950,479 60,60 1 95,000 200,000 140,000 100,000 - -
293,396 709,044 395,336 308,135 227,790 408,330
6,174 5,038 30 22 157,864 14,334,955
3,311,300 5,547,760 1,222,230 5,785,518 4,336,133 14,803,886 (2,810,553) (4,481,191) (578,855) (5,285,782) (3,634,286) 15,425,619 677,298 1,495,80 1 871,384 821,197 422,922 -
3,940,130 5,624,717 9,005,309 6,198,498 7,767,884 322,975 4,617,428 7,120,518 9,876,693 7,019,695 8,190,806 322,975 1,806,875$ 2,639,327 $ 9,297,838 $ 1,733,913 $ 4,556,520 $ 15,748,594 $ 215 301
City of Ontario
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the year ended June 30, 2022
NMC CFD #42 NMC CFD #53 NMC CFD #54 NMC CFD #55
ADDITIONS:

Taxes 327,189$ 1,041,597 $ 283,06 1$ 119,61 1$ Interest and change in fair value of investments (5) 18,309 4,465 - Fee collections for other governments 6,436,129 22,883,960 116,690 - Bond proceeds and premiums 7,138,628 24,627,006 6,218,830 - Total additions 13,901,941 48,570,872 6,623,046 119,611 DEDUCTIONS:

Administrative expenses 26,976 4,176,906 26,039 12,23 1 Payments on conduit bonds - principal ----
Interest and fiscal charges 320,848 915,035 81,913 -
Contributions to other governments 6,436,129 22,883,960 116,690 - Total deductions 6,783,953 27,975,901 224,642 12,231 Change in net position 7,117,988 20,594,971 6,398,404 107,380 NET POSITION:

Beginning of year ----
Restatements 6,366 133,664 51,247 -
Beginning of year, as restated 6,366 133,664 51,247 -
End of year 7,124,354 $ 20,728,635 $ 6,449,651 $ 107,380 $ 216 302
Total
Custodial
NMC CFD #57 Fund s
156,059$ 12,282,119 $
-( 1 6 , 3 7 5 )
- 45,224,492
- 53,260,247
156,059 110,750,483
15,403 24,187,330
- 5,780,000
- 7,309,655
- 44,957,535
15,403 82,234,520
140,656 28,515,963
- 93,308,155
- (18,279,836
)
- 75,028,319
140,656$ 103,544,282$
217 303
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218 304

STATISTICAL

SECTION (UNAUDITED)
219 305
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220 306
Financial Trends
Schedule 1 - Net Position by Component
Schedule 2 - Changes in Net Position
Schedule 3 - Changes in Fund Balances, Governmental Funds Schedule 4 - Fund Balances, Governmental Funds
Revenue Capacity
Schedule 5 - Assessed Value and Estimated Actual Value of Taxable Property Schedule 6 - Direct and Overlapping Property Tax Rates
Schedule 7 - Principal Property Taxpayers
Schedule 8 - Property Tax Levies and Collections
Schedule 9 - Taxable Sales by Category
Schedule 10 - Direct and Overlapping Sales Tax Rates
Schedule 11 - Sales Tax Revenue Payers by Industry
Debt Capacity
Schedule 12 - Ratio of Outstanding Debt by Type
Schedule 13 - Ratio of General Bonded Debt Outstanding
Schedule 14 - Direct and Overlapping Governmental Activities Debt Schedule 15 - Legal Debt Margin Information
Schedule 16 - Pledged Revenue Coverage
Demographic and Economic Information
Schedule 17 - Demographic and Economic Statistics
Schedule 18 - Principal Employers
These schedules contain trend information to help the readers assess the factors affecting the City’s most significant local revenue sources: property taxes and sales taxes.

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

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time:

City of Ontario
June 30, 2022

STATISTICAL SECTION
The statistical section of the City’s annual comprehens ive 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. 221 307
Operating Information
Schedule 19 - Full-Time City Government Employees by Function Schedule 20 - Operating Indicators by Function/Program
Schedule 21 - Capital Asset Statistics by Function/Program These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs.

City of Ontario
June 30, 2022
222 308
City of Ontario
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Schedule 1
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets 830,764,191 $ 812,874,736 $ 838,484,374 $ 908,309,555 $ 940,354,455 $ 950,420,687 $ 961,901,972 $ 997,856,845 $ 1,076,360,215 $ 1,106,500,917 $ Restricted 216,149,880 254,103,989 240,480,450 156,425,046 168,765,518 173,159,152 204,484,800 215,606,868 258,821,167 234,997,596 Unrestricted 128,154,505 137,590,247 (66,639,420) (1,666,599) 179,846,318 16,250,642 95,440,937 59,045,553 42,386,017 170,115,808 Total governmental activities net position 1,175,068,576$ 1,204,568,972 $ 1,012,325,404 $ 1,063,068,002 $ 1,288,966,291 $ 1,139,830,481 $ 1,261,827,709 $ 1,272,509,266 $ 1,377,567,399 $ 1,511,614,321 $ Business-type activities
Net investment in capital assets 152,493,698 $ 143,574,879 $ 140,873,539 $ 136,336,952 $ 143,660,797 $ 161,791,743 $ 184,562,565 $ 182,086,718 $ 163,989,647 $ 143,491,186 $ Restricted 4,270,391 10,578,881 5,289,769 1,528,395 369 373 378 3,140,719 3,171,019 371,996 Unrestricted 240,354,654 273,069,164 271,397,325 299,336,371 329,045,082 345,926,734 298,224,116 301,316,946 312,160,529 333,795,739 Total business-type activities net position 397,118,743$ 427,222,924 $ 417,560,633 $ 437,201,718 $ 472,706,248 $ 507,718,850 $ 482,787,059 $ 486,544,383 $ 479,321,195 $ 477,658,921 $ Primary government
Net investment in capital assets 983,257,889 $ 956,449,615 $ 979,357,913 $ 1,044,646,507 $ 1,084,015,252 $ 1,112,212,430 $ 1,146,464,537 $ 1,179,943,563 $ 1,240,349,862 $ 1,249,992,103 $ Restricted 220,420,271 264,682,870 245,770,219 157,953,441 168,765,887 173,159,525 204,485,178 218,747,587 261,992,186 235,369,592 Unrestricted 368,509,159 410,659,411 204,757,905 297,669,772 508,891,400 362,177,376 393,665,053 360,362,499 354,546,546 503,911,547 Total primary government net position 1,572,187,319$ 1,631,791,896 $ 1,429,886,037 $ 1,500,269,720 $ 1,761,672,539 $ 1,647,549,331 $ 1,744,614,768 $ 1,759,053,649 $ 1,856,888,594 $ 1,989,273,242 $ Fiscal Year
Source: Statement of net position
primary government
223
309
City of Ontario
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Schedule 2
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government 34,081,969 $ 28,982,239 $ 81,855,829 $ 40,011,028 $ 36,656,658 $ 27,554,284 $ 34,587,604 $ 31,859,857 $ 20,241,805 $ 53,007,368 $ Public safety 103,814,741 110,981,159 121,981,375 125,884,228 136,032,820 178,835,586 178,045,825 177,840,309 200,452,838 171,919,144 Community development 45,485,896 41,524,328 62,623,670 19,114,534 38,552,339 42,623,892 76,420,858 92,310,831 111,927,829 97,855,487 Library 3,745,405 4,602,190 4,542,196 4,850,620 5,026,299 5,938,560 - - - - Public works 18,519,391 25,092,721 23,852,377 38,104,811 50,703,275 42,308,931 40,398,759 28,825,751 7,449,126 5,178,760 Interest on long-term debt 1,880,787 3,017,116 1,786,957 1,712,433 1,630,517 3,921,536 2,661,754 3,493,124 12,416,810 12,602,410 Total governmental activities expenses 207,528,189$ 214,199,753 $ 296,642,404 $ 229,677,654 $ 268,601,908 $ 301,182,789 $ 332,114,800 $ 334,329,872 $ 352,488,408 $ 340,563,169 $ Business-type activities:

Water 21,485,576 $ 30,814,880 $ 54,841,770 $ 42,639,260 $ 41,413,255 $ 41,340,763 $ 52,901,637 $ 57,700,824 $ 68,700,692 $ 32,072,665 $ Sewer 13,167,026 16,136,421 17,047,306 15,971,504 17,211,364 20,270,716 24,733,369 23,255,045 26,008,652 26,519,496 Integrated Waste 21,664,001 23,164,916 23,877,028 24,970,912 26,663,301 31,337,795 39,475,286 34,380,261 42,010,179 36,928,273 I.T. Fiber - - - - 993,456 1,770,591 2,027,814 3,943,666 - - Total business-type activities expenses 56,316,603 $ 70,116,217 $ 95,766,104 $ 83,581,676 $ 86,281,376 $ 94,719,865 $ 119,138,106 $ 119,279,796 $ 136,719,523 $ 95,520,434 $ Total primary government expenses 263,844,792 $ 284,315,970 $ 392,408,508 $ 313,259,330 $ 354,883,284 $ 395,902,654 $ 451,252,906 $ 453,609,668 $ 489,207,931 $ 436,083,603 $ Program Revenues
Governmental activities:

Charges for services:

General government 379,325 $ 445,079 $ 1,641,300 $ 2,622,684 $ 4,141,068 $ 6,149,697 $ 5,507,407 $ 6,965,874 $ 7,634,307 $ 7,124,318 $ Public safety 4,166,801 3,824,528 3,757,586 3,883,304 7,311,246 20,271,669 27,682,493 26,688,490 19,435,556 24,510,827 Community development 14,780,312 25,244,830 35,769,080 36,046,159 42,262,153 50,699,117 80,911,897 78,671,622 61,020,723 109,380,406 Library 124,581 121,043 155,962 131,407 137,689 122,329 - - - - Public works - - - - - - - - - - Operating contributions and grants 7,859,746 12,081,691 15,015,783 8,710,100 10,220,710 12,542,758 8,465,032 6,542,904 61,503,453 50,334,363
Capital contributions and grants 23,737,443 33,842,540 37,210,682 35,628,037 78,825,884 56,737,883 58,825,481 46,201,742 59,321,543 44,168,230 Total governmental activities
program revenues 51,048,208 $ 75,559,711 $ 93,550,393 $ 87,021,691 $ 142,898,750 $ 146,523,453 $ 181,392,310 $ 165,070,632 $ 208,915,582 $ 235,518,144 $ Business-type activities:

Charges for services:

Water 58,276,359 $ 63,193,036 $ 67,342,593 $ 65,653,131 $ 64,533,049 $ 68,933,067 $ 55,447,675 $ 57,676,762 $ 69,185,768 $ 73,241,767 $ Sewer 20,479,875 21,484,811 21,986,463 23,136,811 25,780,456 27,952,825 28,080,727 27,685,371 30,011,850 28,308,242 Integrated Waste 29,905,739 30,332,538 31,742,051 33,024,400 34,937,033 36,995,472 38,361,984 38,341,478 41,913,089 46,404,294 I.T. Fiber - - - 4,126 38,954 276,033 466,522 747,095 - - Operating grants and contributions 100,546 145,881 539,519 174,073 133,279 126,452 119,686 137,783 112,134 2,245,127 Capital grants and contributions 2,405,396 6,642,816 1,329,404 3,505,475 11,223,634 11,256,557 4,460,250 4,548,485 2,576,714 538,336 Total business-type activities
program revenues 111,167,915 $ 121,799,082 $ 122,940,030 $ 125,498,016 $ 136,646,405 $ 145,540,406 $ 126,936,844 $ 129,136,974 $ 143,799,555 $ 150,737,766 $ Total primary government program revenues 162,216,123$ 197,358,793 $ 216,490,423 $ 212,519,707 $ 279,545,155 $ 292,063,859 $ 308,329,154 $ 294,207,606 $ 352,715,137 $ 386,255,910 $ Net (Expense)/Revenue
Governmental activities (156,479,981) $ (138,640,042) $ (203,092,011) $ (142,655,963) $ (125,703,158) $ (154,659,336) $ (150,722,490) $ (169,259,240) $ (143,572,826) $ (105,045,025) $ Business-type activities 54,851,312 51,682,865 27,173,926 41,916,340 50,365,029 50,820,541 7,798,738 9,857,178 7,080,032 55,217,332 Total primary government net expense (101,628,669) $ (86,957,177) $ (175,918,085) $ (100,739,623) $ (75,338,129) $ (103,838,795) $ (142,923,752) $ (159,402,062) $ (136,492,794) $ (49,827,693) $ Fiscal Year
224
310
City of Ontario
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Schedule 2Continued
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year
General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes - general purpose 45,700,153 $ 45,144,867 $ 48,695,469 $ 60,338,698 $ 53,414,598 $ 56,199,666 $ 63,156,933 $ 67,236,079 $ 72,483,313 $ 79,329,716 $ Transient occupancy taxes 9,731,382 10,614,156 12,057,576 13,090,992 13,886,637 14,586,233 14,945,483 12,160,235 10,614,109 16,400,754 Sales taxes 67,150,866 67,509,611 84,294,827 78,533,022 86,168,797 87,910,014 94,486,731 90,290,690 105,424,829 129,332,341 Franchise taxes 3,047,369 3,251,592 3,476,151 3,413,854 3,020,829 3,352,120 3,420,656 3,426,464 3,512,001 3,824,973 Business licenses taxes 6,078,094 6,405,595 6,825,185 6,954,932 7,167,613 7,478,153 7,786,821 7,793,962 8,559,248 8,856,928 Other taxes 5,274,601 3,700,067 4,073,788 4,107,065 4,047,435 4,642,529 4,506,129 4,044,908 3,507,185 5,997,517 Intergovernmental, unrestricted:

Motor vehicle in lieu 74,047 - 71,526 68,099 76,099 91,740 85,244 141,091 134,124 210,261 Use of money and property 979,899 5,174,360 3,755,010 5,422,398 2,617,545 10,834,185 32,107,405 18,599,331 2,779,387 (6,213,473) Other 3,866,279 4,414,323 2,656,703 2,000,930 3,414,919 2,394,865 1,647,848 4,198,849 12,116,507 9,067,222 Gain on sale of capital asset 1,000,000 - 87,267 - 1,953,200 - - 605,267 862 11,881,432 Special Item Note 15 (42,373,148) - - Extraordinary gain on dissolution of RDA - - - - - - - - - - Transfers 25,526,208 21,925,867 22,762,488 24,793,699 15,961,453 18,448,756 4,647,613 14,472,260 24,150,952 (458,557) Total governmental activities 168,428,898$ 168,140,438 $ 188,755,990 $ 198,723,689 $ 191,729,125 $ 205,938,261 $ 226,790,863 $ 180,595,988 $ 243,282,517 $ 258,229,114 $ Business-type activities:

Use of money and property 308,392 $ 1,604,534 $ 1,435,511 $ 2,509,989 $ 1,087,037 $ 2,187,574 $ 7,873,778 $ 8,345,624 $ 5,503,540 $ (1,229,512) $ Other 17,237 23,416 105,193 8,455 13,917 24,988 245,676 474,940 - - Transfers (25,526,208) (21,925,867) (22,762,488) (24,793,699) (15,961,453) (18,448,756) (4,647,613) (14,472,260) (24,150,952) 458,557 Total business-type activities (25,200,579) $ (20,297,917) $ (21,221,784) $ (22,275,255) $ (14,860,499) $ (16,236,194) $ 3,471,841 $ (5,651,696) $ (18,647,412) $ (770,955) $ Total primary government 143,228,319 $ 147,842,521 $ 167,534,206 $ 176,448,434 $ 176,868,626 $ 189,702,067 $ 230,262,704 $ 174,944,292 $ 224,635,105 $ 257,458,159 $ Change in Net Position
Governmental activities 11,948,917 $ 29,500,396 $ (14,336,021) $ 56,067,726 $ 66,025,967 $ 51,278,925 $ 76,068,373 $ 11,336,748 $ 99,709,691 $ 153,184,089 $ Business-type activities 29,650,733 31,384,948 5,952,142 19,641,085 35,504,530 34,584,347 11,270,579 4,205,482 (11,567,380) 54,446,377 Total primary government 41,599,650 $ 60,885,344 $ (8,383,879) $ 75,708,811 $ 101,530,497 $ 85,863,272 $ 87,338,952 $ 15,542,230 $ 88,142,311 $ 207,630,466 $ 225
311
City of Ontario
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
Schedule 3
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes 134,629,408 $ 132,908,792 $ 156,988,002 $ 176,088,421 $ 167,601,178 $ 173,605,420 $ 186,594,649 $ 184,275,840 $ 203,537,145 $ 243,176,826 $ Special assessment taxes 1,479,517 1,514,889 1,634,568 2,180,091 3,301,654 3,143,892 5,303,668 8,581,407 11,926,636 11,775,704 Licenses and permits 1,805,849 2,199,674 3,283,593 3,845,404 4,384,727 4,887,991 5,067,374 5,488,023 8,423,831 10,772,502 Intergovernmental 27,864,489 39,695,371 44,390,225 37,492,730 35,412,862 24,359,686 21,912,280 17,814,256 51,794,726 55,860,245 Charges for services 16,108,550 25,895,011 40,368,010 39,628,058 54,446,655 80,404,296 109,518,406 114,818,886 80,961,161 130,243,516 Use of money and property 1,533,296 3,906,235 3,507,845 5,339,722 2,576,499 4,004,514 14,899,017 18,759,439 2,911,661 (5,491,350) Fines and forfeitures 1,298,235 1,134,395 1,267,994 1,125,237 1,189,956 1,042,090 1,185,128 786,630 656,407 1,060,576 Contributions from property owners - - - - 24,682,518 25,349,912 34,658,232 15,503,662 38,408,435 - Miscellaneous 6,408,027 7,062,253 4,556,170 4,534,158 6,017,657 12,389,218 8,275,990 8,286,111 14,645,386 14,193,697 Contributions - - - - - - 928,875 - - - Total Revenues 191,127,371 $ 214,316,620 $ 255,996,407 $ 270,233,821 $ 299,613,706 $ 329,187,019 $ 388,343,619 $ 374,314,254 $ 413,265,388 $ 461,591,716 $ Expenditures
Current:

General government 22,926,658 $ 16,565,106 $ 66,943,163 $ 28,292,531 $ 24,500,521 $ 23,830,837 $ 33,100,934 $ 33,754,652 $ 33,016,792 $ 48,223,193 $ Public safety 106,934,164 114,109,242 120,286,742 127,942,682 136,721,141 160,838,334 160,884,992 180,119,824 180,834,045 199,451,930 Community development 52,081,393 58,988,089 98,405,497 104,688,312 95,398,612 67,805,408 102,279,086 130,014,298 130,585,988 106,265,455 Library 4,077,037 4,196,204 4,368,241 4,568,202 4,654,465 4,768,627 - - - - Public works 18,851,564 17,231,048 18,784,827 21,003,964 23,834,203 21,279,011 24,047,574 22,694,083 17,347,477 18,005,014 Debt service:

Principal retirement 1,290,000 1,350,000 1,410,000 1,480,000 1,565,000 12,000 175,000 1,050,000 5,718,104 39,764,720 Interest and fiscal charges 1,931,758 1,876,513 1,815,778 1,745,753 1,667,190 3,930,914 2,824,049 2,802,938 3,169,583 1,445,519 Bond issuance costs - 965,190 - - - 526,390 - - - - Pass-through agreement payments - - - - - 4,770,057 - - - - Total Expenditures 208,092,574 $ 215,281,392 $ 312,014,248 $ 289,721,444 $ 288,341,132 $ 287,761,578 $ 323,311,635 $ 370,435,795 $ 370,671,989 $ 413,155,831 $ Excess (deficiency) of revenues over
(under) expenditures (16,965,203) $ (964,772) $ (56,017,841) $ (19,487,623) $ 11,272,574 $ 41,425,441 $ 65,031,984 $ 3,878,459 $ 42,593,399 $ 48,435,885 $ Fiscal Year
226
312
City of Ontario
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(accrual basis of accounting)
Schedule 3Continued
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year
Other Financing Sources (Uses)
Transfers in 37,357,867 $ 34,628,235 $ 34,856,839 $ 34,615,190 $ 36,101,144 $ 58,065,111 $ 43,871,997 $ 52,691,271 $ 49,197,305 $ 17,634,274 $ Transfers out (12,209,848) (17,288,068) (9,564,945) (8,310,991) (29,588,174) (49,353,662) (45,445,779) (29,030,349) (57,656,404) (65,638,186) Long-term debt issued - 33,390,000 - - - 26,810,000 - 23,780,842 - 154,557,765 Bond Discount - (380,848) - - - 3,260,875 - - - - Pass-through agreement payments - - - - - (28,554,885) - - - - Gain (loss) on sale of assets - 4,551 87,267 - - - - - - - Proceeds from sale of capital equipment 1,000,000 - - - - - - - - - Total Other Financing Sources (Uses) 26,148,019$ 50,353,870 $ 25,379,161 $ 26,304,199 $ 6,512,970 $ 10,227,439 $ (1,573,782) $ 47,441,764 $ (8,459,099) $ 106,553,853 $ Special Item - - - - - - - (42,373,148) - - Extraordinary gain/(loss) on dissolu- - - tion of redevelopment agency - - - - - - - - - - Net change in fund balances 9,182,816 $ 49,389,098 $ (30,638,680) $ 6,816,576 $ 17,785,544 $ 51,652,880 $ 63,458,202 $ 8,947,075 $ 34,134,300 $ 154,989,738 $ Total Current Expenditures 208,092,574 $ 215,281,392 $ 312,014,248 $ 289,721,444 $ 288,341,132 $ 287,761,578 $ 323,311,635 $ 370,435,795 $ 370,671,989 $ 413,155,831 $ Less: Capital outlay (22,072,081) (29,585,954) (41,745,591) (79,957,813) (45,292,825) (24,876,172) (26,388,451) (70,262,127) (53,552,016) (44,644,973) Total Non-Capital Expenditures 186,020,493$ 185,695,438 $ 270,268,657 $ 209,763,631 $ 243,048,307 $ 262,885,406 $ 296,923,184 $ 300,173,668 $ 317,119,973 $ 368,510,858 $ Total Debt Service Expenditures 3,221,758 $ 3,226,513 $ 3,225,778 $ 3,225,753 $ 3,232,190 $ 3,942,914 $ 2,999,049 $ 3,852,938 $ 8,887,687 $ 41,210,239 $ Debt service as a percentage of
non-capital expenditures 1.7% 1.7% 1.2% 1.5% 1.3% 1.5% 1.0% 1.3% 2.8% 11.2% 227
313
City of Ontario
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Schedule 4
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable 3,869,157 $ 4,911,968 $ 3,785,154 $ 20,002,802 $ 33,893,841 $ 46,318,442 $ 46,472,802 $ 4,052,097 $ 4,001,189 $ 57,981,078 Restricted 408,576 412,411 415,723 419,644 424,497 430,484 438,872 417,464 361,579 361,579 Committed 42,685,082 43,817,117 42,436,574 23,195,527 28,877,191 21,066,012 415,884 595,469 - - Assigned 64,892,830 77,628,587 56,798,002 80,398,228 52,081,697 47,410,303 84,063,218 99,862,976 135,143,086 55,639,545 Unassigned - - - - - - - 2,622,364 - - Total General Fund 111,855,645 $ 126,770,083 $ 103,435,453 $ 124,016,201 $ 115,277,226 $ 115,225,241 $ 131,390,776 $ 107,550,370 $ 139,505,854 $ 113,982,202 $ All Other Governmental Funds
Nonspendable 107,297,677 $ 108,638,002 $ 108,436,971 $ - $ - $ - $ - $ - $ 32,759$ - $ Restricted 46,333,050 46,603,397 30,597,699 156,005,402 168,341,021 172,728,668 204,045,928 215,189,404 227,287,269 233,394,043 Committed 64,646,487 82,201,933 102,233,386 75,173,595 91,585,019 113,795,063 121,913,367 134,372,092 162,862,379 290,920,407 Assigned 3,462,343 14,169,115 5,653,602 22,785,386 14,197,954 6,098,646 13,872,159 22,962,330 - Unassigned (4,614,745) (12,975) (2,626,236) (23,149,529) (16,784,621) (402,755) (521,927) (464,083) (243,566) - Total All Other Governmental Funds 217,124,812$ 251,599,472 $ 244,295,422 $ 230,814,854 $ 257,339,373 $ 292,219,622 $ 339,309,527 $ 372,059,743 $ 389,938,841 $ 524,314,450 $ Grand Total Governmental Funds 328,980,457$ 378,369,555 $ 347,730,875 $ 354,831,055 $ 372,616,599 $ 407,444,863 $ 470,700,303 $ 479,610,113 $ 529,444,695 $ 638,296,652 $ Note: The City implemented GASB Statement No. 54 in fiscal year ended June 30, 2011. Information prior to the implementation of GASB 54 is not presented.

Fiscal Year
228
314
City of Ontario
Assessed Value and Estimated Actual Value of Taxable Property* Last Ten Fiscal Years
(dollars in thousands)
Schedule 5
City Redevelopment Agency
Fiscal Year Taxable Taxable Total
Ended Less: Assessed Assessed Direct
June 30 Secured Unsecured Exemptions Value Secured Unsecured Value Tax Rate (a) 2013 12,065,269$ 1,788,106 $ (112,198) $ 13,741,177 $ 3,999,768 $ 737,016 $ 4,736,784 $ 1.0039 2014 12,465,751 1,758,596 (110,182) 14,114,165 4,137,730 774,208 4,911,938 1.0035 2015 12,413,859 2,552,384 (108,252) 14,857,991 4,295,948 786,273 5,082,221 1.0035 2016 13,124,582 2,611,079 (105,864) 15,629,797 4,494,605 786,273 5,280,877 1.0035 2017 13,781,901 2,543,614 (109,080) 16,216,435 4,697,741 781,204 5,478,946 1.0035 2018 14,844,332 2,624,317 (108,915) 17,359,734 5,060,484 781,204 5,841,689 1.0035 2019 16,575,762 2,814,842 (108,701) 19,281,903 5,458,072 781,204 6,239,276 1.0035 2020 18,181,749 2,910,729 (110,654) 20,981,823 5,754,326 781,204 6,535,530 1.0035 2021 19,529,581 3,147,303 (111,223) 22,565,661 6,217,924 781,204 6,999,129 1.0035 2022 21,666,906 3,257,643 (112,096) 24,812,452 6,723,763 781,204 7,504,967 1.0035 Source: San Bernardino County Auditor-Controller Property Tax Division, Agency Net Valuations (a) See Schedule 6 for Total Direct Tax Rate information. *In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. The value of the property was set at its 1975-76 level but was allowed to increase by an "inflation factor" (limited to a maximum increase of 2% each year. With few exceptions, property is only reassessed at its value when acquired through a change of ownership or by new construction. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described earlier. The estimated actual taxable value is, therefore, not readily available for cities in the State of California.
229
315
City of Ontario
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of taxable value)
Schedule 6
Agency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Basic Levy 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Chaffey Community College Bond 0.0111 0.0157 0.0109 0.0113 0.0116 0.0088 0.0153 0.0241 0.0111 0.0177 Chaffey High School Bond 0.0101 0.0371 0.0294 0.0409 0.0319 0.0279 0.0402 0.0375 0.0352 0.0371 Chino Unified School Bond 0.0357 0.0358 0.0331 0.0331 0.0383 0.0934 0.0849 0.0790 0.0897 0.0862 Metropolitan Water Agency 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Mt. View Elementary 0.0328 0.0351 0.0336 0.0314 0.0255 0.0263 0.0206 0.0180 0.0183 0.0615 Ontario-Montclair Elementary Bond 0.0274 0.0294 0.0260 0.0268 0.0264 0.0557 0.0555 0.0428 0.0458 0.0455 Total Direct & Overlapping Tax Rates 1.1206 1.1566 1.1365 1.1470 1.1372 1.2156 1.2200 1.2049 1.2036 1.2515 City's Share of 1% Levy Per Prop 13 0.1681 0.1681 0.1681 0.1681 0.1681 0.1681 0.1681 0.1681 0.1681 0.1681 Total Direct Rate 0.3840 0.1705 0.1706 0.1706 0.1706 0.1706 0.1708 0.1709 0.1703 0.1708 Source: The HDL Companies (San Bernardino County Assessor 2012/13 - 2021-22 tax rate table) Fiscal Year
230
316
City of Ontario
Principal Property Taxpayers
Current Year and Ten Years Ago
Schedule 7
Taxpayer Taxable Value ($)
Percent of Total City
Taxable Value (%) Taxable Value ($)
Percent of Total City
Taxable Value (%)
United Parcel Service Company 709,439,327 2.19% 367,419,177 1.98% Prologis 690,196,633 2.13% 196,075,546 1.06%
Ontario Mills LP 421,371,045 1.30% 253,294,667 1.37%
Watson Land Company 365,371,221 1.13%
Costco Wholesale Corporation 326,162,037 1.01%
Vineyard Industrial LLC 296,324,795 0.92%
Palmer Ontario Properties LP 240,101,984 0.74%
Bre Jupiter WCA LLC 215,206,680 0.67%
Colony Commerce Ontario West LP 203,437,590 0.63%
Ontario Land Ventures 200,968,925 0.62%
Catellus Finance 1 LLC 217,639,189 1.17%
Majestic-CCC IV Partners 124,049,070 0.67%
SVF Safari LLC 113,563,778 0.61%
Niagara Bottling LLC 108,035,401 0.58%
Comref So California Industrial 94,644,660 0.51%
Southwest Airlines Company Inc 92,794,870 0.50%
Landmark Pr I Ontario LLC 89,815,303 0.48%
Total Top 10 Taxpayers 3,668,580,237 11.34% 1,657,331,661 8.94% Total Taxable Value 32,357,655,207 100.00% 18,536,210,794 100.00% Source: HdL, Coren & Cone
2022 2013
231
317
City of Ontario
Property Tax Levies and Collections
Last Ten Fiscal Years
Schedule 8
Collected within the
Fiscal Year Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Ended for the Percent of Subsequent Percent of
June 30 Fiscal Year Amount Levy Years Amount Levy
2013 24,076,262$ 23,032,185 $ 95.66% 1,250,281 $ 24,282,466 $ 100.86% 2014 24,858,740 24,518,130 98.63% 812,490 25,330,619 101.90% 2015 25,868,724 25,584,269 98.90% 768,052 26,352,321 101.87% 2016 27,397,660 27,022,201 98.63% 755,577 27,777,778 101.39% 2017 28,598,396 28,237,630 98.74% 628,491 28,866,121 100.94% 2018 30,476,605 30,258,907 99.29% 662,586 30,921,494 101.46% 2019 33,855,137 33,811,751 99.87% 275,397 34,087,147 100.69% 2020 36,873,998 36,420,730 98.77% 332,350 36,753,080 99.67% 2021 39,726,164 39,415,629 99.22% 341,296 39,756,925 100.08% 2022 43,670,142 43,614,885 99.87% 496,967 44,111,852 101.01% Schedule presents City's property tax only.

Ontario City CouncilDecember 20, 2022

Ontario City Council
December 20, 2022