CITY OF POMONA
CALIFORNIA
FOR THE YEAR ENDING
June 30, 2021
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Attachment No.1
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Attachment No.1
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Attachment No.1
CITY OF POMONA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ................................................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................. vi Organizational Chart ............................................................................................................................. vii Directory of City Officials ...................................................................................................................... viii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Required Supplementary Information) (Unaudited) ............................................................................... 5
BASIS FINANCIAL STATEMENTS
Governmental Wide Financial Statements:
Statement of Net Position ............................................................................................................... 21 Statement of Activities .................................................................................................................... 22
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ............................................................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Governmental Wide Statement of Net Position ........................................................................................................ 31 Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Wide Statement of Activities ..................................... 34
Proprietary Funds:
Statement of Net Position ............................................................................................................ 36 Statement of Revenues, Expenses and Changes in Fund Net Position ..................................... 38 Statement of Cash Flows ............................................................................................................ 40
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................ 44 Statement of Changes in Fiduciary Net Position ......................................................................... 45
Notes to Financial Statements ........................................................................................................... 53 Attachment No.1
CITY OF POMONA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule:
General Fund ................................................................................................................................ 130 Housing Authority Special Revenue Fund .................................................................................... 131 Miscellaneous Grants Special Revenue Fund ............................................................................. 132
Notes to the Budgetary Comparison Schedule ............................................................................... 133
Schedule of Changes in the Net Pension Liability and Related Ratios:
Miscellaneous Plan – Agent Multiple – Employer Defined Benefit Plan ...................................... 134 Safety Plan – Agent Multiple – Employer Defined Benefit Plan ................................................... 136 Collateral Benefits Plan ................................................................................................................ 139
Schedule of Contributions - Pensions:
Miscellaneous Plan – Agent Multiple – Employer Defined Benefit Plan ...................................... 140 Safety Plan – Agent Multiple – Employer Defined Benefit Plan ................................................... 142 Collateral Benefits Plan ................................................................................................................ 144
Schedule of Changes in Net Other Post-Employment Benefits Liability and Related Ratios:
Other Post-Employment Benefits Plan ......................................................................................... 146
SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Change in Fund Balance – Budget and Actual:
Capital Outlay Capital Projects Fund ........................................................................................ 150 Assessment District Improvement ............................................................................................. 151 General Government Debt Service Fund .................................................................................. 152 Public Financing Authority Debt Service Fund .......................................................................... 153
Nonmajor Governmental Funds:
Combining Balance Sheets .......................................................................................................... 154 Combining Statements of Revenues, Expenditures, and Change in Fund Balance .................... 160 Schedule of Revenues, Expenditures, and Change in Fund Balance – Budget and Actual:
Community Development Block Grant Special Revenue Fund ................................................ 165 State Gas Tax ........................................................................................................................... 166 Proposition A ............................................................................................................................. 167 Proposition C ............................................................................................................................. 168 Attachment No.1
CITY OF POMONA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
SUPPLEMENTARY INFORMATION (CONTINUED)
Vehicle Parking District ............................................................................................................. 169 Air Quality Improvement ............................................................................................................ 170 Landscape Maintenance District ............................................................................................... 171 Asset Forfeiture ......................................................................................................................... 172 Traffic Offender ......................................................................................................................... 173 Measure R ................................................................................................................................. 174 Measure M................................................................................................................................. 175 Special Fees .............................................................................................................................. 176 PEG Fee .................................................................................................................................... 177 OATH Initiative .......................................................................................................................... 178 Measure W ................................................................................................................................ 179
Internal Service Funds:
Combining Statement of Net Position........................................................................................... 182 Combining Statements of Revenues, Expenditures, and Change in Net Position ....................... 184 Combining Statement of Cash Flows ........................................................................................... 186
Custodial Funds:
Combining Statements of Fiduciary Assets and Liabilities – All Custodial Funds ....................... 190 Combining Statements Changes in Fiduciary Assets and Liabilities – All Custodial Funds ........ 191
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ......................................................................................... 195
Financial Trends:
Net Position by Component ............................................................................................................. 197 Change in Net Position .................................................................................................................... 198 Fund Balances – Governmental Funds ........................................................................................... 200 Changes in Fund Balances – Governmental Funds ........................................................................ 201 Governmental Activities Tax Revenue by Source ........................................................................... 202
Reven
ue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property ................................................. 203 Property Tax Rates – Direct and Overlapping Governments .......................................................... 204 Principal Property Taxpayers ........................................................................................................... 205 Top 25 Sales Tax Generators .......................................................................................................... 206 Property Tax Levies and Collections ............................................................................................... 207
Attachment No.1
CITY OF POMONA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION (Unaudited) (CONTINUED)
Debt Capacity:
Ratios of Outstanding Debt by Type ................................................................................................ 208 Ratio of General Bonded Debt Outstanding .................................................................................... 209 Direct and Overlapping Debt ........................................................................................................... 210 Legal Debt Margin Information ........................................................................................................ 211 Pledged Revenue Coverage – Water .............................................................................................. 212 Pledged Revenue Coverage – Sewer ............................................................................................. 213
Demographic and Economic Information:
Demographic and Economic Statistics ............................................................................................ 214 Principal Employers ......................................................................................................................... 215
Operating Information:
Authorization Full – Time City Employees by Function ................................................................... 216 Operating Indicators by Function ..................................................................................................... 217 Capital Asset Statistics by Function ................................................................................................. 218
OTHER REPORT
Independent Auditors’ Report on Internal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................. 219 Attachment No.1
7 January 6, 2022
Honorable Mayor and City Council
and Citizens of the City of Pomona, Pomona, California
The audited Annual Comprehensive Financial Report (ACFR) of the City of Pomona, California (City) for the fiscal year ended June 30, 2021 is hereby submitted.
An independent certified public accounting firm audits the basi c financial statements. The purpose of the audit is to ensure that the basic financial statements present fairly, in all material respects, the financial position and the results of operations of the City. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all di sclosures, rests with the City. Lance Soll & Lunghard, LLP has issued an unmodified opinion of the City of P omona’s financial statements for the fiscal year ended June 30, 2021. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States. This means that the statements have been prepared using guidelines designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds. The independent auditor’s report is located on page 1 of the Financial Section. All disclosures necessary t o enable the reader to gain the maximum understanding of the City’s financial activities have been included.
Generally Accepted Accounting Principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.
In addition to the comprehensive audit, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 as amended and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Information related to this single audit, including a schedule of federal financial assistance, findings and recommendations and auditor’s report on the internal control structure and compliance with applicabl e laws and regulations, is provided in a separate single audit report.
REPORTING ENTITY
The primary unit of the government is the City, and includes component units all of which are described below:
The Primary Government
The City was founded on January 6, 1888 and became a charter city in 1911. The City operates under a Council-Manager form of municipal government.
The accompanying Annual Comprehensive Financial Report includes the activities of the City, the primary government, and its component units, which are the Pomona Publi c Financing Authority, the City of Pomona Housing Authority, and the Canon Water Company. Financial information for the City and these component units are accounted for in the accompanying financial statements in accordance with principles defining the report ing entity adopted by the Governm ental Accounting Standards Board. The City Council serves as the governing board of the Housing Autho rity. The City Manager, City Attorney,
ANDREW MOWBRAY
Finance Director
THE CITY OF
POMONA
Finance Department
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Attachment No.1
Finance Director/City Treasurer, Accounting Manager, and the Deputy City Manager serve as the governing board for the Pomona Public Financing Authority. The Water Resources Director, Water Resource Operations Manager, Wat er Treatment/Water Quality Supervisor, Senior Accountant, and Senior Management Analyst for the City serve as the governing board of the Canon Water Company. All of these component units are presented on a blended basis.
The former Redevelopment Agency, now Successor Agency, is a separate legal entity, which was formed to hold the assets of the form er Redevelopment Agency pursuant to City Council action taken on January 9, 2012 with members of the City Council, sitting as th e Successor Agency to the Redevelopment Agency. The activity of the Successor Agency is o verseen by an Oversight Board which is comprised of individuals appointed by various government agencies including the City of Pomona.
The Pomona Public Financing Authority (the Authority) is a joint exercise of powers agreement organized under Section 6500 of the California Government Code on October 27, 1988 between the City, the Redevelopment Agency, and the Redevelopment Agency of the City of West Covina. The purpose of the Authority is to act as a vehicle for various financing activities of the City and the Agency. The funds of the Authority have been included in the governmental activities in the financial statements. Separate audited statements are also issued for the Authority.
The Housing Authority of the City of Pomona (the Housing Authority) was organized pursuant to the State of California Health and Safety Code, Section 34242. The Housing Authority exists pursuant to adopted resolution No. 93-114 adopted June 7, 1993. Its purpos e is to prepare and carry out plans to ensure sanitary and safe housing exists in the City of Pomona a nd that such housing is available to persons of low income at affordable rental rates. The City pro vides management assistance to the Housing Authority, and the members of the City Council also act as the governing body of the Housing Authority. The Housing Authority’s financial data and transact ions are blended with the major governmental funds. Separate audited statements are also issued for the Housing Authority.
This report includes all funds of the City of Pomona, Californi a, and each of its component units.
Component units are legally separate entities for which the primary government is financially accountable.
The City provides full services to its residents including publ ic safety, land use planning and zoning, housing and economic development, building and safety regulatio n and inspection, water, sewer and refuse services, maintenance of parks, streets and related infrastructure, recreational activities and library services.
THE CITY OF POMONA
The City is located at the southeast end of Los Angeles County and borders San Bernardino County’s western boundary and is just five miles north of Orange County. The City has a population of 151,319 and covers an area of approximately 23 square miles. The City is a charter city and is governed by a mayor and six council members. Council members are elected by district with the mayor elected from the City at large. Each member of the Council is elected to a term of four years.
LOCAL ECONOMY
The City of Pomona continues to enjoy a broadly based diverse economy, albeit one with an emphasis upon government, healthcare, and other service-oriented industr ies. Among Pomona’s large employers are Pomona Valley Hospital, the school district (Pomona USD), C alifornia State Polytechnic University, the City of Pomona itself, and Casa Colina Rehabilitation Cente r. As a regional healthcare hub, Pomona boasts a premier facility in the Pomona Valley Hospital Medical Center and the non-profit Casa Colina Centers for Rehabilitation.
Per 2021 estimates published by the Labor Market Information Di vision of the California Employment Development Department (the most recent such data available), the City’s civilian labor force presently stands at approximately 67,500 wo rkers with 61,700 employed. Th is results in an unemployment rate of
8.5%.
ii
Attachment No.1
Retail Sales and Use Tax remains an extremely significant sourc e of revenue for the City. In spite of the Pandemic, sales tax remained strong. The City of Pomona remains central to the region’s building and construction industry, while other business-to-business sales r epresent a notable share of local sales tax receipts.
Property values increased from the prior years keeping the prop erty tax base strong as well through the Pandemic. Current taxable assessed valuation for the City of Po mona including redevelopment areas is $13,046,851,688 according to the Office of the Los Angeles Coun ty Auditor-Controller. Based on the City assessed valuation, overall property tax receipts (secured, uns ecured, transfer tax, etc.) were 34.62% of the 2020-21 General Fund revenues, while sales tax and related line items were 28.28% of that same total.
LONG-TERM FINANCIAL PLANNING
Pomona’s vigilant ongoing review and control over expenditure g rowth has been, and will continue as, a critical factor in maintaining and improving the City’s overall financial health. To ensure its fiscal health, on May 2, 2011, the City Council adopted resolution number 2011 -49 approving the City’s Fiscal Sustainability Policy. This policy established guidelines for the City’s overall fiscal planning and management and is intended to foster and support continued fina ncial strength and stability of the City.
The policy is quite comprehensive and covers areas of Budget, E conomic Development, Risk Management, Accounting-Auditing-Financial Reporting, Cash Manag ement and Investments, and Debt Management. The policy also required a separate Fund Balance Policy to ensure fiscal health of the City.
Part of the Fund Balance Policy adopted by the City Council on June 20, 2011, requires the General Fund to have a ‘Committed Fund Balance’ of 17% of operating expenditures by June 30, 2020. The policy provides a scale for reaching the 17% starting with 8% as of June 2012 and ending with the 17% in 2020.
Based on 2020-21 General Fund expenditure and fund balance numbers, the General Fund has already exceeded the final goal of 17%. The City is currently working on a new expansive fund balance policy and will bring it to council for approval. The City realized the importance of long term financial planning especially with increased pension costs so the City along with Urban Futures Inc. created a 10 year sustainability plan. The 10 year sustainability plan was a grea t tool to help plan for the future and be proactive instead of reactive. The City passed the sales tax me asure which significantly aided the City during the COVID-19 pandemic.
To address long term concern of the City’s growing Pension Liab ility, The City issued a Pension Obligation bond (Series BJ) in August of 2021. The bond was issued to pay down the City’s Pension Liability. The proceeds of the bond were sent directly to PERS for investment. For June 30, 2021, the new Pension Obligation bond and the Net Pens ion Liability are presented in the government wide statement of Net Position. This is due to the N et Pension Liability actuarial having a measurement date of June 30, 20 20. Any contributions made after the measurement date are presented as a deferred outflow in the stat ement of Net Position. In the fiscal year ending June 30, 2022, the deferred outflow or contribution to PERS will reduce the Net Pe nsion Liability and only the Pension Obligation bond will be presented.
OUTLOOK FOR THE FUTURE
As everyone is aware, the world was struck with a Global pandemic from COVID-19 towards the second half of last fiscal year. This resulted in stay at home orders and business shut downs which in turn affects the national, state and local economies. Government entities ma in source of revenues are taxes with an emphasis on property tax, sales tax and other various taxes. With the various orders in place it was anticipated tax revenues and revenues as a whole would decrease. The City proved to be able to weather the storm of the Pandemic. The National Government took action and passed the CARES Act (in the beginning of Fiscal Year 2020-21) to help the City navigate thr ough the impacts of COVID. As the City looks ahead to Fiscal Year 2021-22 and beyond, in spite of the pandemic, staff is encouraged by the General Fund reserve balance and actual results from Fiscal Yea r 2020-21. The Fiscal Year 2021-22 budget was adopte
d as a balanced budget. The City of Pomona sta ff continues to look to the future to ensure the City can continue to serve the Citizens in the best possible way. iii
Attachment No.1
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparat ion of financial statements in conformity with accounting principles gener ally accepted in the United Sta tes of America. The internal control structure is designed to provide r easonable, but not absolute, assurance that these objectives are met.
The concept of reasonable assurance recognizes that: (1) the co st of control should not exceed the benefits likely to be derived; and (2) the valuation of costs a nd benefits requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in plac e to ensure compliance with applicable laws and regulations related to those programs. This internal contr ol structure is subject to periodic evaluation by management and the staff of the City. The City is required to undergo an annual single audit in conformance with Single Audit Act of 1996 as amended and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). The results of the City’s single au dit for the fiscal year ended June 30, 2020 are published under separate cover.
Budgetary Controls. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual adopted budget approved by the City’s governing body. The legal level of budgetary control (that is, the level at which expenditures can not exceed the appropriated amount) is at the department level in the General Fund and by fund total for all other funds. For budgeting purposes, the General Fund is composed of several departments while all other budgeted funds are each considered to be a single department. The City maintains an en cumbrance accounting system as one technique of accomplishing budgetary control, however all opera ting encumbrances lapse at year-end unless specifically approved by City Council resolution per the City Charter.
OTHER INFORMATION
Risk Management. The City maintains a self-insurance program to provide for th e general liability, workers compensation and unemployment benefits claims.
Independent Audit. The accounting firm, Lance Soll & Lunghard LLP was selected t o perform the annual independent audit. The annual audit is designed to meet the requirements of generally accepted auditing standards in the United States, the standards applicab le to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Federal Single Audit Act of 1996 as amended and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Prin ciples, and Audit Requirements for Federal Awards (the “Uniform Guidance”). The auditors’ report on the basic financial statements is included in the financial section of this report. The auditors’ report related specifically to the single audit is included in a separate Single Audit Report.
Certificate of Achievement. The Government Finance Officers Association of the United State s and Canada (GFOA) awarded a Certificate of Achievement for Excellen ce in Financial Reporting to the City of Pomona for its Annual Comprehensive Financial Report (A CFR) for the fiscal year ended June 30, 2019. The City of Pomona has received a Certificate o f Achievement for the last twenty-seven consecutive years (1993-2019). T he Certificate of Achievement is a prestigious national award recognizing c onfo
rmance with the highest standards for preparat ion of state and local government financial reports. The City’s award for year ending June 30, 20 20 is still pending review. GFOA indicated results will be delayed due to the Pandemic.
In order to be awarded a Certificate of Achievement, a governme nt unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program iv
Attachment No.1
standards. The ACFR must satisfy both generally accepted accounting principles in the United States and applicable legal requirements.
The Certificate of Achievement is valid for a period of one yea r only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA for consideration.
Additional Information. For additional information, please refer to the Management’s Di scussion and Analysis in the Introductory Section of this report. This disc ussion and analysis of the City’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021.
Please read it in conjunction with the basic financial statemen ts and the accompanying notes to the basic financial statements.
Acknowledgments. The preparation of this report could not have been accomplish ed without the efficient and dedicated services of the entire Finance Departme nt staff. Special recognition is given to all the Accounting division staff and the City’s audit firm for the ir services in the coordination and assistance in the preparation of this year’s report.
In closing, without the leadership and support of the City Coun cil, preparation of this report would not have been possible.
Respectfully submitted,
Andrew Mowbray
Finance Director
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Attachment No.1
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pomona
California
For its
Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
vi
Attachment No.1
CITY OF POMONA
Organizational Chart
vii
Attachment No.1
CITY OF POMONA
DIRECTORY OF CITY OFFICIALS
at June 30, 2021
CITY COUNCIL
Tim Sandoval
Mayor
John Nolte
Councilmember
District 1
Elizabeth
Ontiveros-Cole
Councilmember
District 4
Victor Preciado
Councilmember
District 2
Steve Lustro
Councilmember
District 5
Nora Garcia
Councilmember
District 3
Robert S. Torres
Councilmember
District 6
APPOINTED ADMINISTRATIVE OFFICIALS
City Manager ............................................................ James Makshanoff City Attorney .................................................................. Sonia Carvalho City Clerk ......................................................................... Rosalia Butler City Treasurer ............................................................ Andrew Mowbray
DEPARTMENT DIRECTORS
Finance ....................................................................... Andrew Mowbray Fire (Los Angeles County) ................................................ Jim Robinson Human Resources ........................................................ Linda Matthews Information Technology .................................................... John DePolis Library.................................................................................. Mark Gluba Development Services .................................................... Anita Gutierrez Neighborhood Services .................................................. Benita DeFrank Police Chief ............................................................................. Mike Ellis Public Works .................................................................... Rene Guerrero Water Resources .................................................................. Chris Diggs
viii
Attachment No.1
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Pomona, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund i nformation of City of Pomona, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, t he business-type activities, each major fund, and the aggregate remaining fund information of the City of Pomona, California, as of June 30, 2021, and the respective changes in financial position and, where applica ble, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards ge nerally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our re sponsibilities under those standards are further described in the Auditor’s Responsibiliti es for the Audit of the Financial Statements section of our report. We are required to be independent of th e City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting prin ciples generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control rel evant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt about the City’s ability to continue as a going concern for twelve months beyond the date of the financial statements.
Attachment No.1
To the Honorable Mayor and Members of the City Council
City of Pomona, California
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 opinion. 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 t he GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Th e risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mi srepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skept icism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate th e overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis, the budgetary comparison schedules for the general fund, housing authority and miscellaneous grants fund, the schedules of changes in net pens ion liability and related ratios, the schedules of plan contributions, the schedule of changes in total other postemployment benefits and related ratios as listed in the table of contents be presented to suppl ement the basic financial statements. Such information, although not a part of the basic financial stateme nts, 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 supplem entary information in accordance with auditing standards generally accepted in the United States of A merica, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financi al statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 Attachment No.1
To the Honorable Mayor and Members of the City Council
City of Pomona, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures a pplied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional pro cedures 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 schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of as surance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statem ents, or the other information otherwise appears to be materially misstated. If, b ased on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated January 6, 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, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the 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 of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Brea, California
January 6, 2022
3 Attachment No.1
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4 Attachment No.1
MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2021
The following Management’s Discussion and Analysis (MD&A) of th e City of Pomona’s financial performance provides an introduction and overview to the financial activities of the City for the fiscal year ended June 30, 2021.
This narrative discussion and analysis focuses on the fiscal year 2020-21 activities, resulting changes and current known facts; therefore, the information presented here should be considered in conjunction with additional information furnished in the transmittal letter and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $127.2 million. The Net Position is composed of $308.9 million of Net Investment in Capital As sets, $78.6 million Restricted a nd $(260.3) Unrestricted. The negative unrestricted Net Position is mainly due to GASB 68 and GASB 75 which required the City to report the total unfunded pension and Other Post Employment Benefit liabilities in the amount of $326.5 million combined.
As of the close of the current f iscal year, the City’s governm ental funds reported combined ending fund balances of $113.7 million.
At the end of the current fiscal year, committed fund balance for fiscal sustainability in the General Fund was $18.5 million, which is 17% of total general fund expenditures, including transfers out. The City was able to substantially increase fund balance in the General Fund resulting in $17.8 million in excess of the Fiscal Sustainability requirement.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis portion of the annual financial re port is intended to serve as an introduction to, and provide the reader with a fundamental understanding of, the Annual Comprehensive Financial Report (ACFR) for the City of Pomona. The ACFR is divided into four main sections. First is the Introductory Section which provides the letter of transmittal, an organizational chart, and a list of City officials. The Introductory Section is followed by the Financial Section, which contains the independent auditor’s report, the management’s discussion and analysis, and finally the basic financial statements. These statements contain the “core” f inancial information for the City of Pomona. The basic financial statements include the government-wide financial statements, followed by the fund financial statements, and finally, the notes to the financial statements. The Financial Section is followed by the Supplemental Data portion of the report, which provides individual fund and combining information that rolls up into the amounts shown in the basic financial sta tements. The final portion of the ACFR is the Statistical Section. This section presents selected financial and demographic information, generally presented on a multi-year basis.
Government-wide financial statements. The government-wide financial statements are designed to provid e the reader with a broad overview of the City of Pomona’s finances, in a manner similar to a private sector business.
Information contained within the government-wide statements includes the entire City government (except fiduciary funds) and the City’s component units. These statements use the accrual basis of accounting with the measurement focus on that of economic resources. All assets and deferred outflows of resources and liabilities and deferred inflows of resources, both financial and capital, short-term and long-term, are included. All revenues and expenses during the year, regardless of when cash is received or disbursed, are reported. The government-wide financial statements include the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents information on all of the City of Pomona’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as Andrew Mowbray
Finance Director
THE CITY OF
POMONA
Finance Department
5 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
“net position”. Increases or decreases in net position may serve as a useful indicator as to whether the financial condition of the City of Pomona is improving or deteriorating over time.
The Statement of Activities presents information showing how the City’s net position change d during the most recent fiscal year. All changes in net position are reported a s soon as the underlying event causing the change occurs, regardless of when cash i s actually received or disburs ed. This means that revenues and expenses in this statement are recorded wh en earned or a liability is incur red. Thus, items such as the value of earned but unused vacation leave will be reco rded as an expense of the current period, even though the actual use of the vacation time may not be until subsequent periods.
Both of the government-wide statements distinguish between functions of the City of Pomona that are principally supported by taxes or intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Pomona include general government, public safety, urban development and public works, neighborhood services and library, and interest o n long term debt. The business-type activities of the City of Pomona include water, sewer, refuse, Pomona Choice Energy Authority and Canon Water Company operations.
Fund financial statements. A “fund” is a grouping of related accounts that is used to ma intain control over resources that have been segregated for specific activities or objectives. The City of Pomona, like other state and local governments, uses fund accounting to ensure and demonstra te compliance with finance related legal requirements. The fund financial statements provide more detai led information about the City’s most significant funds, not the City as a whole. All of the funds of the City o f Pomona can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds include activities of the City that are not proprietary or fid uciary. These funds are used to account for, essentially, the same functions reported as “governmental activities” in the government-wide financial statements. Unlike the government-wide financial statements, however, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows and outflows of spendable resources, as well as the balances of spendable resources available at the end of the fiscal year. Only assets expected to be used and liabilities that come due during the year or soon t hereafter are reported on the Balance Sheet. No capital assets are included. Revenues for which cash is receiv ed during or soon after the end of the year, and expenditures for goods and services that have actually been rec eived during the year, are included within the Statement of Revenues, Expenditures, and Changes in Fund Balance.
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 in the fund financial statements with similar information presented for “governmental activities” in the government-wide financial statements. By doing so, the reader may better understand the long-term impact of the City’s near-term financing decisions. Both the Governmental Fund Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate this comparison.
The City of Pomona maintains 21 individual governmental funds. Individual fund information is presented for the “major” funds in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance. The major funds presented include the General Fund, the Housing Authority Fund, the Miscellaneous Grants Fund, the American Rescue Plan Fund, the Capital Outlay Capital Projects Fund, the General Government Debt Service Fund , and the Public Financing Authority Debt Service Fund. Information for the remaining governmental funds is combined into a single “other governmental funds” column on the
face of the financial statements. Individ ual fund data for each of these non-major governmental funds is provided in the form of “combining statements” presented in the Supplemental Data portion of the report.
Proprietary funds are used to report two types of funds: enterprise funds and in ternal service funds. Enterprise funds report the same functions presented as “business-type” activities in the government-wide financial statements. These include activ ities that the City operates similar to a private business. The City of Pomona uses enterprise funds to account for the operations of the City and Canon Water Company all of which are 6 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
considered “major” funds. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City of Pom ona uses internal service funds to account for its self-insurance activities, equipment maintenance activities, in formation technology activities, and printing/mail service activities. Because these four services predominately benefit governmental rather than business-type functions, the activity has been included within “governmental activities” in the government-wide financial statements. All internal service funds are combined into a single aggregated column presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements presented in the Supplemental Data portion of the report. Proprietary funds use the accrual basis of accounting and focus on the accumulation and use of ec onomic resources. Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows. All assets and liabilities, both financial and capital, short and long-term are included within these statements. All revenues earned and expenses incurred during the year are also included, regardless of when cash is actually received or paid.
Fiduciary funds are used to account for resources held for the benefit of part ies outside of the government.
Fiduciary funds are not reflected in the government-wide financial statements because the funds are custodial in nature, and therefore, these resources are not available to fund the City of Pomona programs. The City implemented GASB 84 during the fiscal year. GASB 84 redefined w hat a Fiduciary activity is and how it should be reported. The implementation resulted in several activities no longer meeting the new criteria and had to be moved to the City’s General Fund.
Notes to the financial statements. The notes to the financial statements provide additional inform ation that is essential to a full understanding of the information contained in the government-wide and fund financial statements.
The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the notes to the financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position. As m
entioned earlier, net position may serve over time as a use ful indicator of a government’s financial position. Total net position has increased when comp ared to the prior year mainly due to a slight decrease in long term debt and an increase in Investment in Fixed Assets. Below is a summary schedule showing the components that make up the City’s net position (in millions) at June 30, 2020 and 2021. 2021 2020 2021 2020 2021 2020
Current and other assets 173.8 $ 129.7$ 94.9$ 83.6 $ 268.7 $ 213.3 $ Capital assets 291.3 287.7 155.8 159.0 447.1 446.7 Total assets 465.1 417.4 250.7 242.6 715.8 660.0 Deferred outflows of resources
Deferred charge 0.3 0.4 0.5 0.5 0.8 0.9 Deferred pension related items 211.3 23.3 23.1 2.3 234.4 25.6 Deferred OPEB related items 11.4 3.5 2.9 1.9 14.3 5.4 Total deferred outflows of resources 223.0 27.2 26.5 4.7 249.5 31.9 Current and other liabilities 40.0 31.4 11.2 11.2 51.2 42.6 Long-term liabilities outstanding 607.5 364.8 173.8 147.2 781.3 512.0 Total liabilities 647.5 396.2 185.0 158.4 832.5 554.6 Deferred inflows of resources
Deferred charge on refunding 0.3 0.4 2.9 3.0 3.2 3.4 Deferred pension related items 0.7 2.5 0.2 0.3 0.9 2.8 Deferred OPEB related items 1.2 3.1 0.3 0.7 1.5 3.8 Total deferred inflows of resources 2.2 6.0 3.4 4.0 5.6 10 .0 Net Position:
Net Investment in capital assets 254.4 249.6 54.5 52.6 308.9 302.2 Restricted 78.6 73.5 - 7.5 78.6 81.0 Unrestricted (294.6) (280.7) 34.3 24.8 (260.3) (255.9) Total net position 38.4$ 42.4 $ 88.8 $ 84.9 $ 127.2 $ 127.3 $ Business-TypeGover nmental
TotalActivities Activities
7 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
For the City o
f Pomona, total assets and deferred outflow of re sources exceeded total liabilities and deferred inflows of resources by $127. 2 million at June 30, 2021. $308.9 million is reported as Net investment in capital assets. This amount represents those capital assets (land, buildings , improvements, equipment, and work in progress), some of which have been acquired over time and financed by the issuance of long-term debt. The City of Pomona uses these capital assets to provide services to the citizens of the City, and the assets are therefore not available for meeting current financial obligations. Although net investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt must come from other operating sources, since the capital assets themselves cannot be used to make debt service payments.
An additional portion of net position, in the amount of $78.6 million, reported as restricted net position represents resources that are subject to external restrictions on how it m ay be used. Restrictions include assets that are legally set aside for future capital development, capital projects, housing-related activities, debt service reserves, and other legally restricted amounts. The remaining balance is unrestricted net position of $(260.3 million). It is not uncommon in government entities to see an unrestricted net position deficit. There are many reasons why this could occur but the City of Pomona has a deficit due to the iss uance of several bonds, the City’s net pension liability in the amount of $218 million, and the net OPEB liability in the amount of $108.5 million.
The City issued a Pension Obligation bond (Series BJ) in August of 2021. The bond was issued to pay down the City’s Pension Liability. The proceeds of the bond were sent directly to PERS for investment. For June 30, 2021, the new Pension Obligation bond and the Net Pension Liability a re presented in the government wide statement of Net Position. This is due to the Net Pension Liability actua rial having a measurement date of June 30, 2020.
Any contributions made after the measurement date are presented as a deferred outflow in the statement of Net Position. In the fiscal year ending June 30, 2022, the deferred outflow or contribution to PERS will reduce the Net Pension Liability and only the Pension Obligation bond will be presented.
Changes in net position. The statement of net position provides a snapshot at a given point in time of the assets and liabilities of the City. The other citywide statement provided is the Statement of Activities. This statement provides the reader with information regarding the revenues, expenses, and changes in net position over the fiscal year. Generally, all changes to the City’s net position from one fiscal year to the next flow through the statement of activities. The City’s programs for governmental activities include legislative and support services, Police, Fire, Public Works, Urban Development, Community Services, and Librar y. The programs for the business-type activities include water utilities, sewer, residential refuse o perations, Pomona Choice Energy Authority and Canon Water Company. The following is a summary schedule showin g the components that make up the City’s changes in net position (in millions) for the years ended June 30, 2021 and 2020. 2021 2020 2021 2020 2021 2020
Revenues:
Program Revenues:
Charges for services 23.6 $ 33.6 $ -$ - $ 23.6$ 33.6$ Water - - 37.7 32.5 37.7 32.5
Sewer - - 6.5 5.5 6.5 5.5
Refuse - - 11.1 10.9 11.1 10.9
Pomona Choice Energy Authority - - 10.6 - 10.6 - Operating contributions and grants 33.9 30.0 - 0.1 33.9 30.1 Capital contributions and grants 14.9 14.9 - - 14.9 14.9 General Revenues:
Taxes:
Property taxes 44.1 38.6 - - 44.1 38.6
Sales taxes 34.3 30.4 - - 34.3 30.4
Transient occupancy taxes 2.2 2.4 - - 2.2 2.4 Franchises taxes 5.1 4.9 - - 5.1 4.9
Utility users taxes 16.5 15.5 - - 16.5 15.5
Other taxes 2.2 1.8 - - 2.2 1.8
Use of money and properties 3.2 4.8 - 1.6 3.2 6.4 Misce
llaneous 0.3 0.3 0.2 0.3 0.5 0.6
Total revenues 180.3 177.2 66.1 50.9 246.4 228.1 Total
Gove r nm e nta l
Activities
Business-Type
Activities
8 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
Governmental Activities - The City’s program revenues t otaled $72.4 million. The City paid for the remaining “public benefit” portion of governmental activities with $107.9 million in taxes (some of which is restricted for certain programs).The cost of all governmental activities this year was $192.1 million. However, as shown above in the changes in net position, the amou nt taxpayers ultimately financed for these activities was $104.4 million since some of the cost was paid by Charge for Services revenue $(23.6 million), or by other governments and organizations that subsidized certain programs with operating contributions and grants $(33.9 million), and capital contributions and grants $(14.9 million). The City had a $8.7 m illion decrease in net position from governmental activities (see Financial Analysis of the City’s Funds – General Fund for explanation) in 2020-21.
Expenses:
General government 12.1 9.1 - - 12.1 9.1 Public safety 105.6 105.0 - - 105.6 105.0 Urban development 61.5 58.9 - - 61.5 58.9 Neighborhood services 6.6 5.8 - - 6.6 5.8 Interest on long-term debt 6.3 3.2 - - 6.3 3.2 Water - - 33.8 28.1 33.8 28.1 Sewer - - 4.1 2.7 4.1 2.7 Refuse - - 11.2 9.9 11.2 9.9 Pomona Choice Energy Authority - - 10.0 0.8 10.0 0.8 Canon Water Company - - - - - - Total expenses 192.1 182.0 59.1 41.5 251.2 223.5 Increase(decrease) in net position before transfers (11.8) (4.8) 7.0 9.4 (4.8) 4.6 Transfers 3.1 3.6 (3.1) (3.6) - - Increase (decrease) in net position (8.7) (1.2) 3.9 5.8 (4.8) 4.6 Beginning Net Position as restated 47.1 48.3 84.9 79.1 1 32.0 127.4 Ending Net Position 38.4$ 47.1$ 88.8 $ 84.9$ 127.2 $ 132.0 $ 9 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
Business Type Activities - The cost of all business-type activities in 2020-21 was $59.1 million and the amount of resources received was $66.1 million. Total business-type activities resources available at the fiscal year end is $88.8 million. This is calculated by taking beginning Net Position of $84.9 million adding revenues of $66.1 million, subtracting expenditures of $59.1 million and $(3.1 million) in transfers. This equates to an increased net position by $3.9 million.
10 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain control over resources that are legally, or otherwise, restricted for specific purposes. Following is a discussion of the individual “major” funds as s hown on the Balance Sheet for Governmental Funds in the basic financial statements.
General Fund - The General Fund is used to account for the general operations of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. The General Fund is always reported as a “major fund”. The General Fund reported $121.4 mi llion in revenues and $103.0 million in expenditures resulting in revenues over expenditures in the amo unt of $18.4 million before accounting for net other financing uses of $(3.8) million, resulting in the General Fund fund balance to increase by $14.6 million for the fiscal year. Total fund balance at June 30, 2021 is $36.3 million, composed of $45.2 million in assets combined with $7.2 million in liabilities and $1.7 million in deferred inflows and resources. Total fund balance includes less than $0.1 million in nonspendable and zero restricted fund balance. Committed fund balance totals $18.4 million for fiscal sustainability. The City has a fiscal sustainabilit y policy that was adopted by resolution 2011-49 for the purpose of guiding the City’s financial planning to meet financial obligations while providing high quality services.
The policy states that 17% of the general fund operating expend itures including transfers out is to be committed for fiscal sustainability. The committed portion of fund balance can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, and r emains in-place unless removed in the same manner. The remaining portion of fund balance of $17.8 million is considered unassigned and above the fiscal sustainability policy. General fund revenues increased $8.2 million in the fiscal year when compared to the prior year. The anticipated impact of COVID was not felt in the major revenues of the City. Property tax increased from the PY at its normal rate due to the tax roll being prepared on assessed values prior to COVID. The City received 11 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
significantly more sales tax than anticipated and more than the prior year. It was anticipated due to the lockdowns that sales tax would decrease but that wasn’t the case for Pomo na. Pomona isn’t a destination City and has a significant industrial presence which kept the tax base strong, in addition, Measure PG which enacted a 0.75 percent Transaction Use Tax was in full effect during FY 2020-21. The City took action in years past to consolidate the Successor Agencies debt reducing the amount on Required Obligation Payment Schedule (ROPS). The result of less ROPS obligation increases residual Redevelopment property tax funds. Lastly the City received $1.9 million one-time Corona Virus Relief (CRF) funds to help the City navigate through the impacts of COVID. General fund expenditures decreased by $6.6 million when compared to the pri or year. A large reason for the decrease is the issuance of a Pension Obligation Bond. The Bond was issued to p ay the City’s outstanding pension liability with CalPERS. The payment of the debt service in FY 2020-21 was sign ificantly less than the Unfunded Accrued Liability that was required to be paid in the prior fiscal year . All in all, FY 2020-21 was a busy year with a lot different factors affecting how the City performed compared to the budget.
Housing Authority Fund – The Housing Authority Fund accounts for grant revenues for housing assistance program payments and acquisition, rehabilitation, and administr ation of properties used to provide affordable rental housing. The Housing Authority fund has historically been a “major” fund based on criterion set forth by GASB 34. For the fiscal year the Housing Authority reported $22 .6 million in revenues a nd $21.3 million in expenditures and transfers, resulting in a net change in fund balance in the amount of $1.3 million. The Housing Authority fund is made up of $22.9 million in assets, combined with $1.3 million in liabilities and $3.0 million in deferred inflows and resources resulting in $18.6 million in fu nd balance. The $18.6 million in fund balance is restricted for Urban Development. Housing Authority fund revenu es increased by $1.8 million in the fiscal year when compared to the prior year. This was due to increased grant activity as a result of receiving additional COVID relief monies.
Miscellaneous Grants Fund – The Miscellaneous Grants fund accounts for the revenues received and expenditures made for federal, state and or county approved pro grams and projects. The Miscellaneous Grants fund has historically been a “major” fund based on criterion se t forth by GASB 34. For the fiscal year, the Miscellaneous Grants fund reported $7.1 million in revenues and $6.5 million in expenditures resulting in revenues over expenditures of $0.6 milli on. After a total other financin g sources of $0.1, the resulting net change in fund balance totals $0.7 million. Most grants are on the reimbursement type basis therefore the City will be reimbursed for the funds used in excess of revenue. The fund is made up of $24.5 million in assets combined with $0.8 million in liabilities and $2.9 million in deferred inflows and resources resulting in $20.8 million in fund balance. The entire fund balance is restricted for specific purposes.
American Rescue Plan Fund – The American Rescue Plan fund was created to account for the City’s award of the Federal Bill passed by Congress called American Rescue Plan Act of 2021. The City was awarded $45 million and received half of the award in FY 2020-21. A spending plan w as created and approved by City Council. The City has until 2024 to obligate the money and spend by 2026. Until the money is spent it will remain a liability on the balance sheet and recognized as revenue when spent. The ass et balance is $22.6 million while being offset by a liability of the same amount. There were no revenues or expenditures in FY 2020-21.
Capital Project Fund – The Capital Project fund accounts for the various capital projects throughout the City. The Capital Project is a “major” fund based on criterion set forth by GASB 34. For the fiscal year, the Capital Project fund reported $5.5 million in revenues and $12.7 million in expenditures. See the Capital Asset section for more detailed information on the expenditures. Many of the projects are funded by other funding sources so a large transfer in helps make the fund balanced. After total other fin ancing sources of $7.3 million, the resulti ng net
change in fund balance totals $0.1 million. The fund is made up of $7.5 million in assets combined with $3.0 million in liabilities and $0.9 million in deferred inflows and resources resulting in $3.6 million in fund balance. The entire fund balance is restricted for specific capital projects.
General Government Debt Service Fund – The General Government Debt Service fund accounts for the various debts that are exclusively in t he City’s name. For the fiscal year, the General Government Debt Service fund reported $0.3 million in revenues and $202.7 million in expenditures. The expenditures are mainly principal and interest debt service payments. The huge expense in the current year is a result of the issuance of Series BJ, Pension Obligation Bond. The expense is offset by the proceeds of the bonds recorded in other financing sources and uses totaling $195.3 million. Other funds transfer in monie s to help pay for the debt in the amount of $8.7 12 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
million. After total other financing sources of $204 million, t he resulting net change in fund balance totals $1.6 million. The liability is an advance from the Public Financing Authority for Series BC & BG.
Public Financing Authority Debt Service Fund – The Public Financing Authority (PFA) Debt Service fund accounts for the various City debts that are issued for the City in the name of the PFA. For the fiscal year, the PFA Debt Service fund reported $0.2 million in revenues and $3.0 in expenditures. The expenditures are all principal and interest debt service payments. The resulting net change in fun d balance totals $(2.8) million. The asset is an advance to the General Government Debt Service fund for Series BC & BG.
Non-Major Funds - The Non-Major Governmental Funds show a net increase of $2.8 million in fund balance.
The following funds were reported as “major” funds on the Statement of Net Position for Proprietary Funds in the basic financial statements:
Water Fund – The Water Fund is used to account for all activities associated with the distribution and transmission of potable water as well as reclaimed water to users. The Water Fund reported $37.7 million in operating revenues and operating expenses of $31.1 million resulting in operating income of $6.6 million. After consideration of non- operating revenues, expenses and transfers the total change in net position is $1.7 million with total revenues in excess of expenses. The Water Fund is made up of $65.8 million in current assets, $124.3 in non-current assets, $19.3 million in deferred outflow s of resources, $10.5 million in current liabilities, $12 8.8 million in non-current liabilities and $3.3 million in deferred inflow of resources resulting in net position of $66.8 million.
Sewer Fund – The Sewer Fund is used to account for the operation and maintenance of the City’s sewer network.
The Sewer Fund reported $6.6 million in operating revenues and operating expenses of $2.7 million resulting in operating income of $3.9 million. After consideration of non-op erating revenues, non-operating expenses, and transfers, the total change in net position is $2.1 million wit h total revenues in excess of expenses. The Sewer Fund is made up of $14.9 million in current assets, $31.3 million in non-current assets, $2.4 million in deferred outflows of resources, $0.7 million in current liabilities, $28.4 in non-current liabilities and less than $0.1 million in deferred inflow of resources resulting in net position of $19.4 million.
Refuse Fund – The Refuse Fund is used to account for all activities associated with residential refuse collection, and curbside collection of recycling materials. The Refuse Fund reported $11.2 million in operating revenues and operating expenses of $11.4 million resulting in an operating loss of $(0.2) million. After consideration of non- operating revenues, non-operating expenses and transfers the total change in net position is a decrease of $(0.5) million with total revenues defic ient of expenses. The Refuse F und is made up of $9.1 milli on in current assets, $1.0 in non-current assets, $4.8 million in deferred outflows of resources, $0.7 million in current liabilities, $13 in non-current liabilities and $0.1 million in deferred inflow of resources resulting in net position of $1.1 million.
Pomona Choice Energy Authority Fund – The Pomona Choice Energy Authority was established in FY 201 9-20 to offer the Citizens of Pomona an alternative source of energy to their homes. The Water fund loaned Pomona Choice Energy Authority (PCEA) startup costs in order to establish operations. FY 2020-21 was the first full year of activity for the PCEA. The PCEA recorded operating revenue s of $10.5 million and operating expenses of $10
million resulting in a positive fund balance of $0.5 million. FY 2021-22 has proven thus far to be a more challenging year for PCEA and required a loan from the Water fund to help pay for basic operating costs.
Canon Water Company – The Canon Water Company Fund is used to account for the acti vities of the Canon Water Company. The Canon Water Company was elected as a major fund by the City. The fund reported minimal activity in FY 2020-21 due to it being dissolved in early FY 20 21-22. The Canon Water Company Fund is made up of $0.4 million in assets and less than $10 thousand in liabilities resulting in net position of $0.4 million. Canon Water Company was dissolved in FY 2021-22 and the assets will be transferred over to the Water Fund.
GENERAL FUND BUDGETARY INFORMATION
The originally adopted General Fund budget contained $111.9 mil lion in appropriations to fund operations and services. This amount decreased to $107.6 million by the end of the fiscal year through City Council approved 13 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
budget amendments. This was a decrease in the amount of $4.3 mi llion. The decrease was a planned response to anticipated decreased revenues. The City implemented costs savings throughout the departments:
General Fund revenues were over budget approximately $10 million. General Fund expenditures as a whole were under budget at the completion of the fiscal year. The above chart includes transfers in and transfers out.
As adopted, the City's FY 2020-21 General Fund Revenue Budget reflected $109 million in anticipated revenues.
With approved budget adjustments the total was amended to $113 million. To date $123 million has been received.
The total revenue came in over budget due to conservative reven ue projections as a result from the COVID-19 pandemic. Revenue sources anticipated to be received far exceeded the anticipated amounts. See the Financial Analysis of City Funds portion for further explanation.
DEBT ADMINISTRATION
At the end of the fiscal year, the City and its component units (Pomona Public Financing Authority and Pomona Housing Authority) had total long-term debt outstanding of $434.6 million.
Additional information on the City’s long-term debt may be foun d in Note 10 in the Notes to the Basic Financial Statements.
CASH MANAGEMENT
To obtain flexibility in cash management, the City employs a pooled cash system (Reference Note 3 in the Notes to the Basic Financial Statements). Under the pooled cash conce pt, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is in vested in certain eligible securities as constrained by law and further limited by the City’s Investment Policy. The goals of the City’s Investment Policy are safety, liquidity and yield.
CAPITAL ASSETS
The capital assets of the City are those assets, which are used in the performance of the City’s functions including infrastructure assets. At June 30, 2021, net capital assets of the governmental activities totaled $291.4 million and the net capital assets of the bu siness-type activities totaled $155.9 million. Depreciation on capital assets is recognized in the government-wide financial statements.
For Government Activities, the City had a total of 47 projects which varied in the amount of activity in FY 2020-21.
The largest increase in Capital Assets was in the Construction in Progress class. A t otal of $11.8 million was added to Construction in Progress in FY 2020-21. The major projects were:
Project #73369 – Police Departm ent Roof Replacement ($2.5 million) Project #68561 – Street Preserv ation City Wide ($1.8 million) Project #67918 – Major Stree t Rehab – 2015 Metro Call ($1.8 million) Project #68562 – Street Preserv ation – Local FY 20-21 ($1.4 million) Project #67921 – St reet Rehab – District 6 ($1 million)
14 Attachment No.1
CITY OF POMONA
Management’s Discussion and Analysis, Continued
Year Ended June 30, 2021
For Enterprise Activities, the largest increase in Capital Asse ts was in the Construction in Progress class. There was $0.8 million added to Construction in Progress. The main project was:
Project #93135 – Water Resource s Admin & Op Facility ($0.46 million)
Additional information on the City of Pomona’s capital assets m ay be found in Note 8 in the Notes to the Basic Financial Statements.
ECONOMIC FACTORS
The National and Statewide economy played a role in City’s financial position for FY 2020-21. As everyone is aware, the world was struck with a Global pandemic from COVID-1 9. This resulted in stay at home orders and business shut downs which in turn affects the national, state a nd local economies. Government entities main source of revenues are taxes with an emphasis on property tax, sales tax, Utility Users tax and other various taxes. With the various orders in place it was anticipated tax revenues and revenues as a whole would decrease.
The National Government took action and passed the CARES Act (in the beginning of Fiscal Year 2020-21) and the American Rescue Plan of 2021 which would aid businesses, individuals, States, Counties and local governments.
In spite of the pandemic, the City of Pomona’s total Fiscal Yea r 2020-21 General Fund revenues grew by $8.2 million versus prior year actuals. The anticipated impact of COVID was not felt in the major revenues of the City.
Property tax increased from the PY at its normal rate due to the tax roll being prepared on assessed values prior to COVID. The City received significantly more sales tax than a nticipated and more than the prior year. It was anticipated due to the lockdowns that sales tax would decrease but that wasn’t the case for Pomona. Pomona isn’t a destination City and has a significant industrial prese nce which kept the tax base strong. The City took action in years past to consolidate the Successor Agencies debt reducing the amount of monies needed on Required Obligation Payment Schedule (ROPS). The result of less ROPS monies equals more General Fund residual funds. Lastly the City received Corona Virus Relief (C RF) funds to help the City navigate through the impact of COVID. General fund expenditures decreased by $6.6 million when compared to the prior year. A large reason for the decrease is the issuance of a Pension Obligation Bond. The Bond was issued to pay the City’s outstanding pension liability with CalPERS. The payment of the debt service in FY 2020-21 was significantly less than the Unfunded Accrued Liability that was required to be paid in the prior fiscal year. All in all, FY 2020-21 was a busy year with a lot different factors affecting how the City performed compared to the budget.
The Federal government issued the America Rescue Plan Act of 2021. This provided funding sources in several different aspects in order to relieve the United States from the Pandemic. Part of the plan provided funding to State, County and Local governments. The City of Pomona was awarded $54 million which it received half in FY 2021-22. These monies support the public health response to the pandemic and lay the foundation for a strong and equitable economic recovery.
The City has ongoing deferred maintenance and capital improveme nt expenditures that are essential and unavoidable costs of doing business. Over the past few years, the City has only been able to do minimal capital and maintenance projects with one time money sources. Per the City’s Fiscal Sustainability policy (eff. FY 2014) staff is to dedicate at least .25% of annual General Fund reven ues to the Capital Improvement program and will increase by 0.10% each year until reaching 1.0%. However, during the last four budget cycles (FY2017-FY 2021) Council suspended this provision of the policy due to lack of General Fund Revenues received each year. Going forward, the City would like to reinstate that part of the Policy but will continue to remain conservative with its future.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide Pomona residents, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions about this report, separate reports of the City’s component units, or any add itional financial information, should be
directed to the City of Pomona Finance Department at 505 S. Garey Avenue (P.O. Box 660), Pomona, California, 91769.
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CITY OF POMONA
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 110,268,178$ 66,348,008$ 176,616,186$ Receivables (net):
Accounts 5,753,644 13,865,688 19,619,332
Notes and loans 32,979,461 - 32,979,461 Interest 205,211 143,732 348,943
Internal balances (375,466) 375,466 - Prepaid costs 761,866 11,079 772,945 Deposits - 147,000 147,000 Due from other governments 14,969,263 - 14,969,263 Inventories 373,292 478,638 851,930 Land held for resale 4,490,541 - 4,490,541 Restricted assets:
Cash and investments 42,156 1,242,959 1,285,115 Cash with fiscal agent 4,279,842 12,237,850 16,517,692 Other investments - 9,000 9,000 Capital assets not being depreciated 154,824,690 22,019,300 176,843,990 Capital assets, net of depreciation 136,539,038 133,889,315 270,428,353 Total Assets 465,111,716 250,768,035 715,879,751
Deferred Outflows of Resources:
Deferred charges on refunding 329,109 466,274 795,383 Deferred outflows of resources related to pensions 211,311,713 23,117,933 234,429,646 Deferred outflows of resources related to
other postemployment benefits 11,406,912 2,926,835 14,333,747 Total Deferred Outflows
of Resources 223,047,734 26,511,042 249,558,776 Liabilities:
Accounts payable 6,840,347 5,943,263 12,783,610 Accrued liabilities 722,238 - 722,238 Accrued interest 522,355 635,403 1,157,758 Unearned revenue 25,522,200 - 25,522,200 Retentions payable 767,840 - 767,840 Deposits payable 3,745,726 4,199,255 7,944,981 Payroll payable 1,982,027 359,797 2,341,824 Noncurrent liabilities:
Due within one year
Long-term debt, due within one year 4,490,475 2,520,000 7,010,475 Compensated absences, due within one year 5,228,000 1,119,000 6,347,000 Claims and judgements, due within one year 20,787,000 - 20,787,000 Due in more than one year
Long-term debt, due in more than one year 280,702,152 125,866,314 406,568,466 Compensated absences, due in more than one year 3,185,531 541,246 3,726,777 Claims and judgements, due in more than one year 10,319,168 - 10,319,168 Total other postemployment benefits liability 86,368,040 22,160,692 108,528,732 Net pension liability 196,383,842 21,646,800 218,030,642 Total Liabilities 647,566,941 184,991,770 832,558,711 Deferred Inflows of Resources:
Deferred charges on refunding 357,275 2,927,035 3,284,310 Deferred inflows of resources related to pensions 669,256 221,195 890,451 Deferred inflows of resources related to
other postemployment benefits 1,205,631 309,348 1,514,979 Total Deferred Inflows
of Resources 2,232,162 3,457,578 5,689,740 Net Position:
Net investment in capital assets 254,387,674 54,505,060 308,892,734 Restricted for:
Community development projects 71,791,521 - 71,791,521 Capital projects 3,583,453 - 3,583,453 Debt service 3,193,908 - 3,193,908 Unrestricted (294,596,209) 34,324,669
(260,271,540)
Total Net Position 38,360,347$ 88,829,729$ 127,190,076$ JUNE 30, 2021
Primary Government
See Notes to Financial Statements.
21 Attachment No.1
CITY OF POMONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 12,118,537$ 9,960,044$ 291,441$ -$ Public safety 105,638,667 4,644,618 2,370,886 - Urban development and public works 61,542,341 8,598,962 31,238,482 14,909,220 Neighborhood services and library 6,562,941 409,782 - - Interest on long-term debt 6,318,687 - - - Total Governmental Activities 192,181,173 23,613,406 33,900,809 14,909,220 Business-Type Activities:
Water 33,815,407 37,712,920 - - SewerSewer 4,077,798 6,575,382 - - Solid WasteRefuse 11,274,763 11,089,435 17,006 - Golf courseCanon Water Company - February 28, 2021 12,213 - - - Convention CenterPomona Choice Energy Authority 9,999,345 10,578,321 - - Total Business-Type Activities 59,179,526 65,956,058 17,006 - Total Primary Government 251,360,699$ 89,569,464$ 33,917,815$ 14,909,220$ General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Utility users tax
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and properties
Other
Gain on sale of capital asset
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
22 Attachment No.1
Primary Government
Governmental Business-Type
Activities Activities Total
(1,867,052)$ -$ (1,867,052)$ (98,623,163) - (98,623,163) (6,795,677) - (6,795,677) (6,153,159) - (6,153,159) (6,318,687) - (6,318,687) (119,757,738) - (119,757,738) - 3,897,513 3,897,513 - 2,497,584 2,497,584 - (168,322) (168,322) - (12,213) (12,213) - 578,976 578,976 - 6,793,538 6,793,538 (119,757,738) 6,793,538 (112,964,200) 44,131,198 - 44,131,198 2,181,603 - 2,181,603 34,340,732 - 34,340,732 5,134,724 - 5,134,724 16,542,842 - 16,542,842 1,929,816 - 1,929,816 113,548 - 113,548 3,256,265 (20,541) 3,235,724 318,952 191,297 510,249 - 14,650 14,650 3,092,248 (3,092,248) -
111,041,928 (2,906,842) 108,135,086 (8,715,810) 3,886,696 (4,829,114) 47,072,799 84,943,033 132,015,832 3,358 - 3,358 38,360,347$ 88,829,729$ 127,190,076$ Net (Expenses) Revenues and Changes in Net Position
See Notes to Financial Statements.
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27 Attachment No.1
CITY OF POMONA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Capital
Projects Funds
General
Assets:
Cash and investments 29,624,589$ 3,910,121$ 2,215,591$ 22,683,207$ 5,838,484$ Receivables (net):
Accounts 5,182,450 253,434 165 - 205,463 Notes and loans - 10,665,819 20,765,946 - - Interest 83,036 6,840 1,796 - 465 Prepaid items 11,795 - - - - Due from other governments 9,040,735 2,390,337 1,557,946 - 927,028 Due from other funds 1,289,246 - - - - Advances to other funds - - - - - Land held for resale - 4,490,541 - - - Restricted assets:
Cash and investments 27,706 - - - 14,450 Cash with fiscal agent - 1,168,251 - - 575,863 Total Assets 45,259,557$ 22,885,343$ 24,541,444$ 22,683,207$ 7,561,753$ Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 1,962,654$ 525,738$ 454,150$ -$ 2,177,001$ Payroll payable 1,597,609 58,380 52,453 - 37,617 Accrued liabilities - 233,641 - - - Deposits payable 3,394,683 32,046 - - 68,814 Retention payables - - - - 767,840 Due to other funds - - - - - Advances from other funds 304,435 - - - - Unearned revenues - 486,667 288,702 22,683,207 - Total Liabilities 7,259,381 1,336,472 795,305 22,683,207 3,051,272 Deferred inflows of resources:
Unavailable revenues 1,660,688 2,946,930 2,868,260 - 927,028 Total Deferred inflows of Resources 1,660,688 2,946,930 2,868,260 - 927,028 Fund Balances:
Nonspendable:
Prepaid costs 11,795 - - - - Restricted
Development and public works - 18,601,941 - - - Public safety - - - - - Neighborhood service - - 20,877,879 - - Assessment district improvement - - - - - Capital projects - - - - 3,583,453 Debt service - - - - - Committed
Fiscal sustainability 18,472,905 - - - - Unassigned (deficit) 17,854,788 - - - - Total Fund Balances 36,339,488 18,601,941 20,877,879 - 3,583,453 Total Liabilities, deferred inflows of
resources, and Fund Balances 45,259,557$ 22,885,343$ 24,541,444$ 22,683,207$ 7,561,753$ Special Revenue Funds
Housing
Authority
Miscellaneous
Grants
American
Rescue Plan
Capital Outlay
Capital Projects
Fund
See Notes to Financial Statements.
28 Attachment No.1
CITY OF POMONA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables (net):
Accounts
Notes and loans
Interest
Prepaid items
Due from other governments
Due from other funds
Advances to other funds
Land held for resale
Restricted assets:
Cash and investments
Cash with fiscal agent
Total Assets
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Payroll payable
Accrued liabilities
Deposits payable
Retention payables
Due to other funds
Advances from other funds
Unearned revenues
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred inflows of Resources
Fund Balances:
Nonspendable:
Prepaid costs
Restricted
Development and public works
Public safety
Neighborhood service
Assessment district improvement
Capital projects
Debt service
Committed
Fiscal sustainability
Unassigned (deficit)
Total Fund Balances
Total Liabilities, deferred inflows of
resources, and Fund Balances
Other Total
Governmental Governmental
Funds Funds
-$ 102,611$ 34,011,852$ 98,386,455$ - - 105,404 5,746,916 - - 1,547,696 32,979,461 - 215 66,566 158,918 748,633 - - 760,428 17,339 - 1,035,878 14,969,263 - - - 1,289,246 - 69,200,000 304,435 69,504,435 - - - 4,490,541 - - - 42,156 731,558 1,804,170 - 4,279,842 1,497,530$ 71,106,996$ 37,071,831$ 232,607,661$ 6,736$ 168$ 1,327,653$ 6,454,100$ - 2,947 145,153 1,894,159 488,597 - - 722,238 - - 250,183 3,745,726 - - - 767,840 915,576 - 134,602 1,050,178 69,200,000 - - 69,504,435 - - 2,063,624 25,522,200 70,610,909 3,115 3,921,215 109,660,876 - - 838,915 9,241,821 - - 838,915 9,241,821 748,633 - - 760,428 - - 29,679,936 48,281,877 - - 1,901,203 1,901,203 - - - 20,877,879 - - 730,562 730,562 - - - 3,583,453 - 71,103,881 - 71,103,881 - - - 18,472,905 (69,862,012) - - (52,007,224) (69,113,379) 71,103,881 32,311,701 113,704,964 1,497,530$ 71,106,996$ 37,071,831$ 232,607,661$ Debt Service Funds
General
Government
Public
Financing
Authority
See Notes to Financial Statements.
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30 Attachment No.1
CITY OF POMONA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund balances of governmental funds 113,704,964$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 291,140,896
Net pension liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as governmental funds' liabilities. They are reported in the Statement of Net Position.
Deferred outflows of resources related to pensions 205,166,440$ Net pension liability (190,629,629)
Deferred inflows of resources related to pensions (610,457) 13,926,354 Net other postemployment benefits liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.
Deferred outflows of resources related to other postemployment benefits 10,742,142 Net other postemployment benefits liability (81,334,701) Deferred inflows of resources related to other postemployment benefits (1,135,369) (71,727,928) Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.
Pollution remediation (51,786)
Capital leases (1,220,449)
Notes payable (450,888)
Revenue bonds (72,128,082)
Pension obligation refunding bonds (198,513,295)
Accreted interest related to the pension obligation refunding bonds (4,179,108) Collateralized borrowing (3,022,746)
Deferred losses on refunding (357,275)
Deferred gains on refunding 329,109
Compensated absences (8,205,396) (287,799,916)
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.
(522,355)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 9,241,821
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position.
(29,603,489)
Net Position of governmental activities 38,360,347$
See Notes to Financial Statements.
31 Attachment No.1
CITY OF POMONA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
General
Revenues:
Taxes 108,106,252$ -$ -$ -$ -$ Special assessments - - - - - Licenses, permits and fees 5,042,930 - - - 217,025 Intergovernmental 2,316,535 21,773,724 5,461,747 - 1,351,874 Charges for services 2,116,735 18,786 366,678 - 51,284 Use of money and properties 1,412,001 497,763 1,050,618 - (74,835) Fines and forfeitures 1,531,634 - - - - Contributions from Successor Agency - 182,425 - - 3,656,052 Miscellaneous 903,124 156,385 235,964 - 337,272 Total Revenues 121,429,211 22,629,083 7,115,007 - 5,538,672 Expenditures:
Current:
General government 6,231,593 - - - - Public safety 82,241,417 - 690,819 - - Urban development 10,973,498 21,306,887 4,729,306 - - Neighborhood services and library 3,260,011 - 604,961 - - Capital outlay 65,159 49,097 453,021 - 12,565,136 Debt service:
Principal retirement 195,758 - - - 180,612 Interest and fiscal charges 17,006 - - - 30,760 Cost of issuance - - - - - Total Expenditures 102,984,442 21,355,984 6,478,107 - 12,776,508 Excess (Deficiency) of Revenues
Over (Under) Expenditures 18,444,769 1,273,099 636,900 - (7,237,836) Other Financing Sources (Uses):
Transfers in 1,831,314 - 159,545 - 7,561,065 Transfers out (5,679,708) (5,022) (50,079) - (213,110) Pension bonds issued - - - - - Proceeds from sale of capital assets - - - - 7,563 Total Other Financing Sources (Uses) (3,848,394) (5,022) 109,466 - 7,355,518 Net Change in Fund Balances 14,596,375 1,268,077 746,366 - 117,682 Fund Balances, Beginning of Year, as
previously reported 21,742,454 17,333,864 20,131,513 - 3,465,771 Restatements 659 - - - - Fund Balances, Beginning of Year, as restated 21,743,113 17,333,864 20,131,513 - 3,465,771 Fund Balances, End of Year 36,339,488$ 18,601,941$ 20,877,879$ -$ 3,583,453$ Special Revenue Funds
Capital Projects
Funds
Housing
Authority
Miscellaneous
Grants
American
Rescue Plan
Capital Outlay
Capital Projects
Fund
See Notes to Financial Statements.
32 Attachment No.1
CITY OF POMONA
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Special assessments
Licenses, permits and fees
Intergovernmental
Charges for services
Use of money and properties
Fines and forfeitures
Contributions from Successor Agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Urban development
Neighborhood services and library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Cost of issuance
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Pension bonds issued
Proceeds from sale of capital assets
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
Other Total
Governmental Governmental
Funds Funds
17,339$ -$ 312,397$ 108,435,988$ - - 1,252,382 1,252,382 - - 563,654 5,823,609 291,441 - 20,984,757 52,180,078 - - 265,733 2,819,216 313 211,003 205,601 3,302,464 - - - 1,531,634 - - - 3,838,477 - - 73,408 1,706,153 309,093 211,003 23,657,932 180,890,001 55,070,552 - 602,846 61,904,991 139,071,987 - 2,298,007 224,302,230 - - 11,781,227 48,790,918 - - - 3,864,972 - - 182,927 13,315,340 833,302 2,880,000 85,148 4,174,820 6,616,983 148,397 324 6,813,470 1,141,091 - - 1,141,091 202,733,915 3,028,397 14,950,479 364,307,832 (202,424,822) (2,817,394) 8,707,453 (183,417,831) 8,733,814 - 131,750 18,417,488 - - (6,051,841) (11,999,760) 195,304,996 - - 195,304,996 - - - 7,563 204,038,810 - (5,920,091) 201,730,287 1,613,988 (2,817,394) 2,787,362 18,312,456 (70,727,367) 73,921,275 29,521,640 95,389,150 - - 2,699 3,358 (70,727,367) 73,921,275 29,524,339 95,392,508 (69,113,379)$ 71,103,881$ 32,311,701$ 113,704,964$ Debt Service Funds
General
Government
Public
Financing
Authority
See Notes to Financial Statements.
33 Attachment No.1
CITY OF POMONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds 18,312,456$ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlay 13,403,128$
Depreciation (9,624,273)
Loss on disposal of capital assets (162,674) 3,616,181 Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Principal repayments 4,580,767
Accreted interest of pension obligation refunding bonds (34,474) Amortization of bond premium and deferred charges 113,810 Bond issuance (195,304,996) (190,644,893)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 9,500
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
(533,192)
Other postemployment benefits expense adjustment, which is the net change in net other postemployment benefits liabilties and related deferred outflows and inflows of resources. 446,626
Pension obligation expenses are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position. 175,552,326 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.
(470,687)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with governmental activities.
(15,004,127)
Change in net position of governmental activities (8,715,810)$ See Notes to Financial Statements.
34 Attachment No.1
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35 Attachment No.1
CITY OF POMONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments 49,686,788$ 9,455,535$ 6,932,521$ 273,164$ Receivables (net):
Accounts 6,793,455 1,223,758 2,120,159 128,442 Interest 107,170 24,149 12,413 - Prepaid items 9,000 - - 2,079 Deposits - - - - Inventories 478,638 - - - Restricted:
Cash and investments - 750,932 - - Cash with fiscal agent 8,791,011 3,446,839 - - Total Current Assets 65,866,062 14,901,213 9,065,093 403,685 Noncurrent:
Advances to other funds 735,836 - - - Other investments 9,000 - - - Capital assets - net of accumulated depreciation 123,540,573 31,286,163 1,046,445 35,434 Total Noncurrent Assets 124,285,409 31,286,163 1,046,445 35,434 Total Assets 190,151,471 46,187,376 10,111,538 439,119 Deferred Outflows of Resources:
Deferred charges on refunding - 466,274 - - Deferred outflows of resources related to pensions 17,213,651 1,729,972 4,174,310 - Deferred outflows of resources related to
other postemployment benefits 2,075,352 222,479 629,004 - Total Deferred Outflows of Resources 19,289,003 2,418,725 4,803,314 - Liabilities:
Current:
Accounts payable 2,671,097 8,777 468,186 9,334 Accrued interest 531,127 70,957 33,319 - Deposits payable 4,199,255 - - - Due to other funds - - - - Payroll payable 272,876 25,150 61,771 - Compensated absences, due within one year 914,000 54,000 151,000 - Claims and judgements, due within one year - - - - Long-term debt, due in one year 1,925,000 595,000 - - Total Current Liabilities 10,513,355 753,884 714,276 9,334 Noncurrent:
Advances from other funds - - - - Compensated absences, due in more than one year 442,483 25,313 73,450 - Claims and judgements, due in more than one year - - - - Long-term debt, due in more than one year 96,581,438 25,046,692 4,238,184 - Total other postemployment benefit liability 15,713,640 1,684,511 4,762,541 - Net pension liability 16,118,243 1,619,883 3,908,674 - Total Noncurrent Liabilities 128,855,804 28,376,399 12,982,849 - Total Liabilities 139,369,159 29,130,283 13,697,125 9,334 Deferred Inflows of Resources:
Deferred charges on refunding 2,927,035 - - - Deferred inflows of resources related to pensions 164,702 16,553 39,940 - Deferred inflows of resources related to
other postemployment benefits 219,351 23,515 66,482 - Total Deferred Inflows of Resources 3,311,088 40,068 106,422 - Net Position:
Net investment in capital assets 43,657,715 9,765,466 1,046,445 35,434 Unrestricted 23,102,512 9,670,284 64,860 394,351 Total Net Position 66,760,227$ 19,435,750$ 1,111,305$ 429,785$ Business-Type Activities - Enterprise Funds
Water Sewer Refuse
Canon Water
Company - February
28, 2021
See Notes to Financial Statements.
36 Attachment No.1
CITY OF POMONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments
Receivables (net):
Accounts
Interest
Prepaid items
Deposits
Inventories
Restricted:
Cash and investments
Cash with fiscal agent
Total Current Assets
Noncurrent:
Advances to other funds
Other investments
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Deferred charges on refunding
Deferred outflows of resources related to pensions
Deferred outflows of resources related to
other postemployment benefits
Total Deferred Outflows of Resources
Liabilities:
Current:
Accounts payable
Accrued interest
Deposits payable
Due to other funds
Payroll payable
Compensated absences, due within one year
Claims and judgements, due within one year
Long-term debt, due in one year
Total Current Liabilities
Noncurrent:
Advances from other funds
Compensated absences, due in more than one year
Claims and judgements, due in more than one year
Long-term debt, due in more than one year
Total other postemployment benefit liability
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred charges on refunding
Deferred inflows of resources related to pensions
Deferred inflows of resources related to
other postemployment benefits
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Governmental
Activities-
Internal
Totals Service Funds
-$ 66,348,008$ 11,881,723 $ 3,599,874 13,865,688 6,728 - 143,732 46,293 - 11,079 1,438 147,000 147,000 - - 478,638 373,292 492,027 1,242,959 -
- 12,237,850 - 4,238,901 94,474,954 12,309,474 - 735,836 - - 9,000 - - 155,908,615 222,832 - 156,653,451 222,832 4,238,901 251,128,405 12,532,306 - 466,274 - - 23,117,933 6,145,273 - 2,926,835 664,770 - 26,511,042 6,810,043 2,785,869 5,943,263 386,247 - 635,403 - - 4,199,255 - 183,484 183,484 55,584 - 359,797 87,868 - 1,119,000 208,135 - - 20,787,000 - 2,520,000 - 2,969,353 14,960,202 21,524,834 735,836 735,836 - - 541,246 - - - 10,319,168 - 125,866,314 5,626,273 - 22,160,692 5,033,339 - 21,646,800 5,754,213 735,836 170,950,888 26,732,993 3,705,189 185,911,090 48,257,827 - 2,927,035 - - 221,195 58,799 - 309,348 70,262 - 3,457,578 129,061 - 54,505,060 222,832 533,712 33,765,719 (29,267,371) 533,712$ 88,270,779$ (29,044,539)$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 88,270,779$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds 582,501 Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds (23,551) Net Position per Statement of Net Position 88,829,729$
Pomona Choice
Energy Authority
Business-Type Activities - Enterprise
Funds
See Notes to Financial Statements.
37 Attachment No.1
CITY OF POMONA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Charges for services 37,712,920$ 6,575,382$ 11,089,435$ -$ Miscellaneous 62,412 35,252 93,633 - Total Operating Revenues 37,775,332 6,610,634 11,183,068 - Operating Expenses:
Personnel services 11,198,241 1,131,213 2,788,741 - Operations 15,450,326 808,853 7,878,476 6,365 Claims expense 3,705 5,763 67,932 - Depreciation expense 3,457,457 668,888 522,026 5,848 Insurance 1,056,694 55,832 148,167 - Total Operating Expenses 31,166,423 2,670,549 11,405,342 12,213 Operating Income (Loss) 6,608,909 3,940,085 (222,274) (12,213) Nonoperating Revenues (Expenses):
Intergovernmental - - 17,006 - Investment income 12,624 34,419 (64,179) 6 Interest expense (3,016,845) (885,259) - - Gain on disposal of capital assets 14,650 - - - Total Nonoperating
Revenues (Expenses) (2,989,571) (850,840) (47,173) 6 Income (Loss) Before Transfers 3,619,338 3,089,245 (269,447) (12,207) Transfers in 691,680 - - - Transfers out (2,572,177) (935,815) (275,936) - Changes in Net Position 1,738,841 2,153,430 (545,383) (12,207) Net Position:
Beginning of Fiscal Year 65,021,386 17,282,320 1,656,688 441,992 End of Fiscal Year 66,760,227$ 19,435,750$ 1,111,305$ 429,785$ Business-Type Activities - Enterprise Funds
Water Sewer Refuse
Canon Water
Company - February
28, 2021
See Notes to Financial Statements.
38 Attachment No.1
CITY OF POMONA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Charges for services
Miscellaneous
Total Operating Revenues
Operating Expenses:
Personnel services
Operations
Claims expense
Depreciation expense
Insurance
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Intergovernmental
Investment income
Interest expense
Gain on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position:
Beginning of Fiscal Year
End of Fiscal Year
Totals
10,578,321$ 65,956,058$ 47,018,859$ - 191,297 96,116 10,578,321 66,147,355 47,114,975 - 15,118,195 34,924,505 9,999,345 34,143,365 3,400,952 - 77,400 20,294,660 - 4,654,219 40,031 - 1,260,693 110,826 9,999,345 55,253,872 58,770,974 578,976 10,893,483 (11,655,999) - 17,006 - (3,411) (20,541) (46,999) - (3,902,104) - - 14,650 - (3,411) (3,890,989) (46,199) 575,565 7,002,494 (11,702,198) - 691,680 95,577 - (3,783,928) (3,421,057) 575,565 3,910,246 (15,027,678) (41,853) 84,360,533 (14,016,861) 533,712$ 88,270,779$ (29,044,539)$ 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 3,910,246$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (23,551) Changes in Net Position of Business-Type Activities per Statement of Activities 3,886,695$ Governmental
Activities -
Internal Service
Funds
Business-Type Activities - Enterprise
Funds
Pomona Choice
Energy Authority
See Notes to Financial Statements.
39 Attachment No.1
CITY OF POMONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:
Cash received from customers and users 37,106,008$ 6,413,336$ 10,907,719$ -$
Cash paid to suppliers for goods and services (15,394,165) (992,907) (8,078,580) (5,704) Cash paid for general and administrative expenses (23,792,879) (2,599,551) (6,760,700) - Net Cash Provided (Used) by Operating Activities (2,081,036) 2,820,878 (3,931,561) (5,704) Cash Flows from Non-Capital
Financing Activities:
Cash transfers in 691,680 - - - Cash transfers out (2,572,177) (935,815) (275,936) - Cash received from other funds - - - - Repayment made to other funds - - - - Grant subsidy - - 17,006 - Proceeds from pension obligation bonds 15,178,614 1,691,989 4,238,184 - Net Cash Provided (Used) by
Non-Capital Financing Activities 13,298,117 756,174 3,979,254 -
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (1,365,388) (139,952) - - Principal paid on capital debt (1,875,000) (580,000) - - Interest paid on capital debt (3,248,741) (872,253) - - Proceeds from sales of capital assets 14,650 - - - Net Cash Provided (Used) by
Capital and Related Financing Activities (6,474,479) (1,592,205) - -
Cash Flows from Investing Activities:
Interest received 50,406 34,795 (53,651) 6 Net Cash Provided (Used) by
Investing Activities 50,406 34,795 (53,651) 6 Net Increase (Decrease) in Cash
and Cash Equivalents 4,793,008 2,019,642 (5,958) (5,698)
Cash and Cash Equivalents at Beginning of Year 53,684,791 11,633,664 6,938,479 278,862 Cash and Cash Equivalents at End of Year 58,477,799$ 13,653,306$ 6,932,521$ 273,164$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) 6,608,909$ 3,940,085$ (222,274)$ (12,213)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 3,457,457 668,888 522,026 5,848 (Increase) decrease in accounts receivable (669,324) (197,298) (275,349) -
(Increase) decrease in deposits - - - - (Increase) decrease in prepaid expense - - - (2,079) (Increase) decrease in inventories (8,380) - - - (Increase) decrease in deferred outflows
of resources related to pensions (15,520,658) (1,541,251) (3,701,591) - (Increase) decrease in deferred outflows
of resources related to other postemployment benefits (726,311) (70,410) (184,234) - Increase (decrease) in accounts payable 1,019,193 (122,459) 15,995 2,740 Increase (decrease) in payroll payable (165,839) (15,502) (69,128) - Increase (decrease) in deposits payable 105,747 - - - Increase (decrease) in claims and judgments - - - - Increase (decrease) in compensated absences 163,207 15,653 (112,403) - Increase (decrease) in net other postemployment benefit liability 2,213,432 162,718 311,605 - Increase (decrease) in net pension liability 1,774,650 20,976 (96,355) - Increase (decrease) in deferred outflows
of resources related to pensions (36,830) (5,912) (16,332) - Increase (decrease) in deferred outflows
of resources related to other postemployment benefits (296,289) (34,610) (103,521) - Total Adjustments (8,689,945) (1,119,207) (3,709,287) 6,509 Net Cash Provided (Used) by
Operating Activities (2,081,036)$ 2,820,878$ (3,931,561)$ (5,704)$ Non-Cash Investing, Capital, and Financing Activities:
Amortization of bond premium/(discount) (111,206)$ 4,464$ -$ -$ Amortization of deferred charges on refunding (113,304)$ 9,622$ -$ -$ Business-Type Activities - Enterprise Funds
Water Sewer Refuse
Canon Water
Company - February
28, 2021
See Notes to Financial Statements.
40 Attachment No.1
CITY OF POMONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid for general and administrative expenses
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in
Cash transfers out
Cash received from other funds
Repayment made to other funds
Grant subsidy
Proceeds from pension obligation bonds
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deposits
(Increase) decrease in prepaid expense
(Increase) decrease in inventories
(Increase) decrease in deferred outflows
of resources related to pensions
(Increase) decrease in deferred outflows
of resources related to other postemployment benefits
Increase (decrease) in accounts payable
Increase (decrease) in payroll payable
Increase (decrease) in deposits payable
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Increase (decrease) in net other postemployment benefit liability Increase (decrease) in net pension liability
Increase (decrease) in deferred outflows
of resources related to pensions
Increase (decrease) in deferred outflows
of resources related to other postemployment benefits
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:
Amortization of bond premium/(discount)
Amortization of deferred charges on refunding
Governmental
Activities-
Internal
Totals Service Funds
6,831,447$ 61,258,510$ 47,108,838$ (7,214,415) (31,685,771) (8,285,468) - (33,153,130) (39,941,044) (382,968) (3,580,391) (1,117,674) - 691,680 (3,421,057) - (3,783,928) 95,577 183,484 183,484 - - - (5,260) - 17,006 - - 21,108,787 5,626,273 183,484 18,217,029 2,295,533 - (1,505,340) - - (2,455,000) - - (4,120,994) - - 14,650 800 - (8,066,684) 800 (3,411) 28,145 (27,817) (3,411) 28,145 (27,817) (202,895) 6,598,099 1,150,842 694,922 73,230,718 10,730,881 492,027$ 79,828,817$ 11,881,723$ 578,976$ 10,893,483$ (11,655,999)$ - 4,654,219 40,031 (3,599,874) (4,741,845) (6,137) (147,000) (147,000) - - (2,079) - - (8,380) 2,132 - (20,763,500) (5,517,730) - (980,955) (206,109) 2,784,930 3,700,399 (52,551) - (250,469) (55,952) - 105,747 - - - 15,571,389 - 66,457 3,338 - 2,687,755 443,411 - 1,699,271 437,459 - (59,074) (15,904) - (434,420) (105,052) (961,944) (14,473,874) 10,538,325 (382,968)$ (3,580,391)$ (1,117,674)$ -$ (106,742)$ -$ -$ (103,682)$ -$ Business-Type Activities - Enterprise
Funds
Pomona Choice
Energy Authority
See Notes to Financial Statements.
41 Attachment No.1
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42 Attachment No.1
),'8&,$5<)81'),1$1&,$/67$7(0(176
43 Attachment No.1
CITY OF POMONA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
Custodial
Funds
Assets:
Cash and investments 16,921$ 10,429,392$
Receivables:
Accounts - 5,952
Notes and loans - 1,660,600
Accrued interest - 13,140
Deposits 284 600
Due from other governments 57,798 -
Land held for resale - 788,130
Restricted assets:
Cash and investments - 110,615
Cash and investments with fiscal agents - 20,422,829 Capital assets:
Capital assets, not being depreciated - 125,423 Capital assets, net of accumulated depreciation - 41,663 Total Assets 75,003 33,598,344
Deferred Outflows of Resources:
Deferred charge on refunding - 460,380 Total Deferred Outflows of Resources - 460,380 Liabilities:
Accounts payable 74,719 7,280
Payroll payable - 9,979
Accrued interest - 1,825,693
Deposits payable - 169,040
Due to external parties/other agencies 891,004 - Noncurrent liabilities:
Due within one year
Long-term debt - 7,830,000
Compensated absences - 71,000
Due in more than one year
Long-term debt - 167,374,182
Compensated absences - 8,628
Total Liabilities 965,723 177,295,802
Net Position:
Restricted for organizations and other governments (890,720) (143,237,078) Total Net Position (890,720)$ (143,237,078)$
Private-Purpose
Trust Fund
Successor
Agency of the
Former RDA
See Notes to Financial Statements.
44 Attachment No.1
CITY OF POMONA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
Custodial
Funds
Additions:
Collection of special taxes -$ 11,027,735$ Interest 1,017 120,630
Gain on sale of fixed asset - 140,000 Contributions from City - 103,076 Total Additions 1,017 11,391,441
Deductions:
Refunds of contributions 907,925 -
Administrative expenses - 328,385 Contractual services - 505,310
Interest expense - 4,737,371
Depreciation expense - 1,263
Payments to city 62,412 3,941,553
Total Deductions 970,337 9,513,882
Changes in Net Position (969,320) 1,877,559
Net Position:
Beginning of fiscal year, as originally reported - (145,114,637) Restatements 78,600 -
Beginning of fiscal year, as restated 78,600 (145,114,637) Net Position - End of the Year (890,720)$ (143,237,078)$ Private-
Purpose Trust
Fund
Successor
Agency of the
Former RDA
See Notes to Financial Statements.
45 Attachment No.1
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46 Attachment No.1
127(6727+(%$6,&),1$1&,$/67$7(0(176
47 Attachment No.1
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48 Attachment No.1
CITY OF POMONA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies .................................................................. 53
a. Financial Reporting Entity ................................. ............................................................. 53 b. Financial Statements Present ation, Basis of Accounting and Measurement Focus ..... 54 c. Cash, Cash Equivalents, and Investments .................... ................................................ 58 d. Cash and Investments with F iscal Agents and Restricted Cash and Investments ........ 59 e. Fair Value Measurement ................................................................................................ 59 f. Interfund Tr ansactions ................................................................................................... 59 g. Inventories and Prepaid Items .............................. ......................................................... 59 h. Land Held fo r Resale ..................................................................................................... 60 i. Capital Assets ............................................. ................................................................... 60 j. Long-Term Debt ............................................. ................................................................ 61 k. Compensated Absences ................................................................................................ 61 l. Claims Payable ............................................. ................................................................. 61 m. Deferred Outflows of Resourc es and Deferred Inflows of Resources ........................... 62 n. Pensions ................................................... ..................................................................... 62 o. Other Post-Employment Benefits (“OPEB”) .................... ............................................... 63 p. Net Position ............................................... ..................................................................... 63 q. Fund Position .............................................. ................................................................... 64 r. Use of Estimates ........................................... ................................................................. 64 s. Property taxes ............................................. ................................................................... 65
Note 2: Stewardship, Compliance and Accountability ................................................................ 65
a. Deficit Fund Balances or Net Positions...................... .................................................... 65
Note 3: Cash and Investments ....................................................................................................... 66
a. Demand Deposits ........................................................................................................... 66 b. Investments Authorized by the California Government Code and the City’s Investment Policy .................................................................................... 67 c. Investments Authorized by Debt Agreement ................... .............................................. 68 d. Fair Value Measurement D isc
losure .............................................................................. 68 e. Risk Disclosures ............................................................................................................. 69 f. Investment in Local Agency Investment Funds ................ ............................................. 71
Note 4: Loans Receivable ............................................................................................................... 72
a. Section 108 Loans .......................................... ............................................................... 7 2 b. Deferred Home Improvement Loans .............................................................................. 72 c. Prototype Pomona Apartment Loans ............................................................................. 72 d. Rental Rehabilitation Loans ........................................................................................... 73 e. Community Housing Development Organization (“CHDO”) Loan (Sh ield of Faith) ....... 73 f. HOPE III Loans ............................................. ................................................................. 73 g. Shield o f Faith ................................................................................................................ 73 h. Manufactured Housing Rehabilitation Loans ................................................................. 73 i. Owner Occupied Loans ....................................... .......................................................... 74 49 Attachment No.1
CITY OF POMONA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Loans Receivable (Continued) ..............................................................................................
j. Mortgage Assistance Program (“MAP”) Loans .................. ............................................ 74 k. Neighborhood In Process (“N IP”) Home Improvement Loans ....................................... 74 l. Neighborhood Stabilization Program ............................................................................. 74 m. Multi – Unit Rental R ehabilitation Program .................................................................... 75 n. Holt Avenue Housing Partners LP Loans ...................... ................................................ 75 o. Telacu Housing Pomona Loans ................................ ..................................................... 75 p. Tri – City Mental H ealth Center Hope Loan ................................................................... 75
Note 5: Interfund Transactions ....................................................................................................... 75
a. Government – Wide Financial Statements ..................... ............................................... 75 b. Fund Financia l Statements ............................................................................................ 76
Note 6: Due from Other Governments ........................................................................................... 77
Note 7: Land Held for Resale .......................................................................................................... 78
Note 8: Capital Assets ..................................................................................................................... 78
a. Government – Wide Financial Statements ..................... ............................................... 78 b. Governmental Activities .................................... ............................................................. 79 c. Business – Type Activities ................................. ............................................................ 80
Note 9: Other Investments .............................................................................................................. 80
Note 10: Long – Term Liabilities ...................................................................................................... 81
Governmental Activities ........................................................................................................ 84 Business – Type Activities .................................................................................................... 87
Note 11: Compensated Absences .................................................................................................... 96
Note 12: Non – City Obligations ....................................................................................................... 96
Note 13: Defined Benefit Pension Plan ............................................................................................ 97
a. CalPERS Plans .............................................. ................................................................ 97 b. Collateral Benefits Plan ................................... ............................................................. 105
Note 14: Other Post – Employment ............................................................................................... 109
a. Gene
ral Information About Public Employee’s Medical and
Hospital Care Program (“PEMHCA”) Plan (“OPEB”) ................................................... 109 b. Net OPEB Liability ........................................................................................................ 110 c. Change in the Net OPEB Liability ........................... ..................................................... 112 d. OPEB Expense and Deferred Outfl ows of Resources Related to OPEB .................... 113
50 Attachment No.1
CITY OF POMONA
INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements ............................................................................................... 114
a. Alameda Corridor – Eas t Construction Authority ......................................................... 114 b. California State Association of Countries Excess Insurance Authority ........................ 114 c. Foothill Air Support Team ............................................................................................ 114 d. Foothill Transit .............................................................................................................. 114 e. Gold Line Phase II Con struction Authority ................................................................... 115 f. Interagency Communications Interoperability System ................................................. 115 g. Los Angeles County Di saster Management Area D .................................................... 116 h. Los Angeles Interagency Metropolitan Police Apprehensive Crime Task Force ......... 116 i. Pomona Valley Transpo rtation Authority ..................................................................... 116 j. Pomona – Walnut – Rowland Jo int Water Line Commission ...................................... 117 k. San Gabriel Valley Council of Governments .................. ............................................. 118 l. Tri – City Ment al Health Center .................................................................................... 118
Note 16: Risk Management ............................................................................................................. 119
Note 17: Commitments and Contingencies .................................................................................. 120
a. Agency Participation Agreement .................................................................................. 120 b. Contractual Commitments .................................... ....................................................... 120 c. Lawsuits ................................................... .................................................................... 120
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency ................... 121
a. Government – Wide Financial Statements ..................... ............................................. 122 b. Fund Financia l Statements .......................................................................................... 122 c. Land Held fo r Resale ................................................................................................... 123 d. Capital Assets ............................................. ................................................................. 123 e. Long – Term L iabilities ................................................................................................. 123 f. Compensated Absences .............................................................................................. 127 g. Insurance .................................................. ................................................................... 127 h. Agreement for Allocation o f Tax Increment Revenues ................................................ 128
Note 19: Res ta
tement – GASB Statement No. 84, Fiduciary Activities ...................................... 128
51 Attachment No.1
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52 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of Pomona, Californi a (the “City”), have been prepared in accordance with accounting principles generally acc epted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (the “GASB”) is t he accepted standard setting b ody 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 was incorporated in 1888 and became a “Charter Law” Ci ty in 1911 under the laws of the State of Californi a. The City operates under the Co uncil – Manager form of governments. The City principally provides general administrati ve services, public safety services, library, recreational services, street, highway and b ridge repairs and maintenance, and water and sanitation services.
As required by U.S. GAAP, these basic financial statements pres ent the City and its component units, entities for which the City is considered to be financially accountable. The following blended component units, although legally separate en tities, are, in substance, part of the City’s operations and data from these units are com bined with the data of the City. They are reported as blended for the following reasons: ( 1) the governing board is substantively the same as the primary government, and there is a financial benefit or burden relationship between the primary government and the comp onent unit; (2) the component unit provides services entirely, or almost en tirely, to the primary government or otherwise exclusively, or almost exclusively, ben efits the primary government even though it does not provide services directly to it; and (3) the component unit’s total debt outstanding, including leases, is expected to be repaid entirely or almost entirely with the resources of the primary government.
Management determined that the following component units should be blended based on the criteria above. These component units are included in the primary government because of the fiscal dependence and financial benefit/burden relations hip. Each of the blended component units in the accompanying basic financial statements of the City are described below:
City of Pomona Housing Authority
The City of Pomona Housing Authority (the “Housing Authority”) was organized in 1993 under the California Health and Safety Code. The objective of t he Housing Authority is to aid low-income families in obtaining decent, safe, and sanitary housing through Federal assistance programs and low/moderate income housing programs. The Housing Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of City staff and the City has operational responsi bility for the Housing Authority. The Housing Authority is blended in as a special revenue fund based on the criteria discussed above.
53 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
City of Pomona Public Financing Authority
The City of Pomona Public Financing Authority (the “Authority”) is a joint exercise of powers authority created by a joint powers agreement between the City, the former Redevelopment Agency of the City of Pomona (t he “Agency”) and the former Rede velopment Agency of the City of West Covina, dated October 27, 1988. The purpose of the Authority is to provide, through the issuance of debt, financing necessary for the const ruction of public improvements. The Authority is not subject to federal or state income taxes. The Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of City staff and the City has operational responsi bility for the Authority. The Authority is blended in as a debt service fund based on the criteria discussed above.
Canon Water Company
The Canon Water Company of Pomona (the “Company”) was incorpora ted on August 6, 1897. The Company owns and maintains a pipeline which transports water to the City. The Company was included within the scope of reporting entity of the City because it provides service almost ent irely to the City and its governi ng body is composed of City staff. The Company is blended in a s an enterprise fund since th e governing boards for these entities were composed of either City Council members or City employees. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government based on the criteria discussed above.
All component units had a fiscal year ended June 30, 2021, except for Canon Water Company, which had a fiscal year ended February 28, 2021.
The component units listed above issue separate financial state ments which can be obtained at City Hall and online at www.pomonaca.gov.
b. Financial Statements Presenta tion, 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 account entity. The operations of each fund are acco unted for by providing a separate set of self-balancing ac counts that comprise its asset s, liabilities, fund balance, revenues and expenditures or expenses, as appropriate. Governme ntal resources are allocated to and accounted for in individual funds based upon the purpose of which they are to be spent and 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 o f governmental and business-type activities for the City accompanied by a total co lumn. Fiduciary activities of the City are not included in these statements.
54 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
These basic financial statements are presented on an “economic resources” measurement focus and the accrual basis of acc ounting. Economic resources m easurement focus considers all of the assts available for the purpose of providing goods and services and reports all inflows, outflows, and balances affecting or reflec ting an entity’s net position.
Accordingly, all of the City’s a ssets and liabilities, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes i n net position. Under the accrual basis of accounting, rev enues are recognized in the per iod in which they are earned, and expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regard to interfund activities. 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, if any. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activ ities have not been eliminated. The following interfund activities have been eliminated:
Due to and from other funds
Advances to and from other funds
Transfers in and out
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 governmental 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 presented in the government – wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance shee ts. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and de creases (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 of the current period.
55 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Revenues are recognized as soon as they are both “measurable” a nd “available.” Revenues are considered to be available when it is collectible within the current period as soon enough thereafter to pay li abilities of the current period . For this purpose, the government considers revenues to be available if it is collecte d within 60 days of the end of the current fiscal period except for grant revenue where the government considers revenue to be available if collected within 120 days of the end of current fiscal year. The primary revenue sources, which have been treated as susceptible to accrual by the City, are real and personal property tax, other local taxes, franchis e fees, forfeitures and penalties, rents and concessions, interest revenue, and state a nd federal grants.
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unavailable revenue arises when potential revenues do not meet the “available” criteria for recognition in the current period. Unearned revenue arises when the government receives resources before it has legal claim to it, as when grant monies are received prior to incurring qualifying expenditures or when prepaid charges are received for services. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unavailable revenue and unearned revenue are removed from the balance sheet and revenue is recognized.
The reconciliations of the Fund Financial Statements to the Government – Wide Financial Statements are provided to explain the differences.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all fina ncial resources of the general governm ent, except those required to b e accounted for in another fund.
The Housing Authority Special Revenue Fund accounts for grant revenues received for the acquisition, rehabilitation and administration of prope rties used to provide affordable rental housing and the low and moderate income housing functions of the former Redevelopment Agency.
The Miscellaneous Grants Special Revenue Fund accounts for revenues received and expenditures made for Federal and/or State approved programs/projects.
The American Rescue Plan Fund accounts for the American Rescue Plan Act of 2021 revenues received and related expenditures.
The Capital Outlay Capital Projects Fund accounts for accumulation of the cost of capital projects.
The General Government Debt Service Fund accounts for the payment of interest and principal on debt incurred by the City.
56 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The Public Financing Authority Debt Service Fund accounts for the payment of interest and principal on the local agency revenue bonds and ot her debt of the Authority.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Ne t Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds.
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increase (revenue s) and decreases (expenses) in total net position. Under the accrual basis of ac counting, revenues are recognized in the period in which they are earned while expense s are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the f und. All other revenues are repo rted as nonoperating revenues. Operating expenses are those expenses that are essent ial to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major proprietary funds:
The Water Enterprise Fund accounts for activities associated with the distribution and transmission of portable water to users and recycled water.
The Sewer Enterprise Fund accounts for the operation and maintenance of the City’s sewer network.
The Refuse Enterprise Fund accounts for activities associated with residential refuse collection, curbside collection of recycling materials, and various related programs.
The Canon Water Company Enterprise Fund accounts for the activities of the Canon Water Company.
The Pomona Choice Energy Authority accounts for the activities aimed to reduce energy usage.
The Internal Service Funds account for the maintenance and repair of City vehicles and equipment, risk management (general liability workers’ comp ensation and unemployment), information technology and printing/mailing service provided to other departments or agencies of the City.
57 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fidu ciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds consist of one private purpose trust fund and custodial funds. Fiduciary fund types are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period which the revenue is earned, which expenses are recognized in the period in which the liability is incurred.
The City uses its private-purpose trust fund to account for the assets and liabilities of the former Redevelopment Agency and the receipt of funds to make installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated.
The Custodial Funds account for assets held by the City for oth er governments. These funds include receipts and disbursements of funds for the debt service activity of the 1911 Act assessment districts.
c. Cash, Cash Equivalent, and Investments
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displaye d as cash and investments.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are reported at fair value.
Certain disclosure requirements, if applicable, are provided for deposit and investment risk in the following areas:
Interest Rate Risk
Credit Risk
O v e r a l l
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
The City operated an internal cash management pool where the pr oprietary funds do not own specific identifiable securities in the City’s pool. For purposes of the statement of cash flows, the proprietary funds r eport the investments at the amortized cost and considered as cash equivalents.
58 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
d. Cash and Investment with Fiscal Agents and Restricted Cash and Investments
Cash and investments with fiscal agents and restricted cash and investments are restricted due to limitations on their use by bond covenants or donor limitations. Fiscal agents acting on behalf of the City hold investment funds arising from the pr oceeds of long-term debt issuance. The funds may be used for specific purposes of for the payment of certain bonds and have been invested only as per mitted by specific State stat ues, applicable City ordinance, resolution, or bond indentures.
e. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investmen ts, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgement associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical a ssets or liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1 , that are observable for the assets of liabilities thro ugh corroboration with market data at the measurement date.
Level 3 – Unobservable inputs t hat reflect management’s best e stimate of what market participants would use in pricing the assets or liabilities at the measurement date.
f. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fisca l year are referred to as “d ue to/from other funds” (i.e., current portion of interfund loans) or “advances to/from other funds” (i.e., noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the gov ernmental – wide financial statements as “internal balances.”
g. Inventories and Prepaid Items
Inventories within the various fund types consist of materials and supplies which are valued at cost on a first-in, first-ou t basis. Purchase of supplies ha ve been reported based on consumption method to recognize inventory-related expenditures.
Certain payments to vendors reflect cost applicable to future a ccounting periods and are recorded as prepaid items in both government – wide and fund financial statements, such as prepaid bond insurance.
59 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
h. Land Held for Resale
Land purchased for resale is reported at lower of acquisition costs or net realized value.
i. Capital Assets
Capital assets, which include land, construction in progress, buildings and improvements, improvements other than buildings, machinery and equipment, autos, and trucks, equipment under capitalized lease and infrastructure assets (e. g., roads, bridges, traffic signals, and similar items), are reported in applicable governmental or business-type activities in the Government – Wide Financial Statements. City policy has set the capitalization threshold for reporting capital assets at $5,000 and capital projects at $250,000.
Capital assets are valued at historical cost or estimated histo rical cost if actual historical cost was not available. Donated assets are valued at acquisition value on the date donated.
Depreciation is reported on a straight-line basis over estimate d useful lives of the assets as follows:
Assets Years
Building and building improvememts 10-50
Improvements other than buildings 10-75
Machinery and equipment 5-100
Furniture and fixtures 5-10
Autos and trucks 5-10
Equipment under capitalized lease 5-15
Infrastructure 25-75
For infrastructure systems, the City elected to use the basic a pproach for infrastructure reporting.
The City defines infrastructure as the basic physical assets that allow the City to function.
The assets include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major infrastructure system can be divided into subsy stems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, and landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department main tains information regarding the subsystems.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
60 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The long-term principal portion of debt on non-proprietary capital assets acquired through lease purchase contracts is acc ounted for in the government – w ide financial statements as “capital lease obligations”. Capital assets acquired under capital leases are capitalized at the net present value of the total lease payments in the gov ernment – wide financial statements.
j. Long – Term Debt
In the government – wide financial statements and propriety fun d 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 amortize d over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium o r discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are expensed when incurred.
In the fund financial statements, governmental funds types recognize bonds premiums and discounts, as well as bond issuance costs, during the current p eriod. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing used. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.
k. Compensated Absences
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid compen sated absences at June 30 from future resources, rather than currently available financia l resources. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as long-term liability of the fund. Vested or accumulated compensated absences in proprietary funds are recorded as an expense and liability of those funds as the benefits accrue to employees. The compensated absences liability will be liquidated through the G eneral Fund for governmental activities and through the proprietary funds for the business-type activities.
l. Claims Payable
The City records a liability to reflect an actuarial estimate o f ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (IBNR) claims. There is no fixed payment schedule to pay these liabilities.
61 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
m. Deferred Outflows of Resources and Deferred Inflows of Resou rces
In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This sep arate financial statement elemen t represents a consumption of net position that applies to future periods and will not be recognized as an outflow of resources (expense/expenditures) until then. The City reports deferred charges on refunding in the government – wide and proprietary fund financial statements. Deferred loss 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 life of the refunded or refunding debt. The City also reports pensions and other post-employment benefits related deferred outflows of resources in the governme nt – wide and proprietary fund financial statements.
In addition to liabilities, the Statement of Net Position and Governmental Funds Balance Sheet reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position or fund balance that applies to a future period and will not be recognized as an inflow of reso urces (revenue) until that time. The governmental funds report unavailable revenue for rev enues not available for current spending. These amounts are deferred and recognized as an inflow of resources in the period when the amounts become available. In addition, t he City reports deferred charges on refunding in the government – wide and proprietary fund financial statements.
Deferred gains 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 repor ts pensions related deferred inflows of resources in the government – wide and proprietary fund financial statements.
n. Pensions
For purposes of measuring the net pension liability, deferred o utflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans.
For this purpose, benefit payments (including refunds of employ ee contributions) are recognized when due and payable in accordance with benefit term s. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Collateral Benefits Plan
CalPERS
62 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and inflows of sources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected an d actual earnings is amortized over five years. All other amounts are amortized stra ight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
o. Other Post – Employment Benefits ( “OPEB”)
For the purpose of m easuring the net OPEB li ability, 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 the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
The following timeframes are reported OPEB reporting:
Valuation Date December 31, 2019
Measurement Date December 31, 2020
Measurement Period January 1, 2020 to December 31, 2020
Gains and losses rel ated to changes in total OPEB liability are recognized in OPEB expense systematically over time. The first amortized amounts a re recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The gains and losses are amortized on a straight-line basis over the average expected remaining service lives of all members.
p. Net Position
In the government – wide financial statements, net position is classified in the following:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt and re lated deferred outflows and inflows of resources that is attributed to the acq uisition, construction, or improvement of the assets, net of unspent debt proceeds.
Restricted – This amount is restricted by external creditors, grantors, contributors, or laws of regulations of other governments.
Unrestricted – This amount is all net position that does not meet the defin ition of ”net investment in capital assets” or “restricted net position.” 63 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
When expenses are incurred for purposes for which both restrict ed and unrestricted net position are available, the City’s policy is to apply restr icted net position first, then unrestricted net position as they are needed.
q. Fund Position
In the fund financial statements, governmental funds report the following fund balance classification:
Non-spendable – This includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted – This includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.
Committed – This includes amounts that can only be used for specific pur poses pursuant to constraints imposed by formal action of the government’s highest authority.
The City Council, as a City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints impo sed by resolution.
These committed amounts cannot be used for any other purpose un less 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.
Assigned – This includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor co mmitted. The City Council adopted Resolution No. 2011-63A and gave the Finance Director authority to assign amounts for specific purposes.
Unassigned – This is the residual amounts that have not been restricted, committed, or assigned to specific purposes. Only the General Fund can rep ort positive unassigned fund balance. All other funds’ fund balances have be en restricted, committed, or assigned for the purpose of those particular funds.
When an expenditure is incurred for purposes for which both res tricted and unrestricted fund balances are available, the City’s policy is to apply rest ricted fund balance first.
Further, when the components of unrestricted fund balance can b e used for the same purpose, the City uses the unrestricted resources in the follow ing order: committed, assigned, and unassigned.
r. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
64 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
s. Property Taxes
Property taxes attach a legally enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on Decembe r 10 and April 10. The County of Los Angeles (the “County”) bills and collects the pro perty taxes and remits it to the City in installments during the year. The City’s property t ax revenues are recognized when an enforceable legal lien is attached to the property. The County is permitted by State Law (Proposition 13) to levy taxes at 1% of full market v alue (at time of purchase) and can increase the property tax base not more than 2% per yea r. The City receives a share of this basic levy proportionate to the amount received prior to the passage of Proposition 13 in 1978.
Note 2: Stewardship, Comp liance and Accountability
a. Deficit Fund Balance or Net Positions
At June 30, 2021, the following funds had the deficit fund balance/net position:
(21,860,353)$
(4,776,568)
(2,740,379)
(59,530) Printing/Mail Services
Internal Service Funds
Self Insurance
Equipment Maintenance
Information Technology
The Self-Insurance Fund deficit is due to increasing claims. Th e Equipment Maintenance Fund and the Information Technology Fund deficits are due to th e net pension liabilities and the net OPEB liabilities. The Printing and Mailing Service Fund deficit is due to not charging sufficient amounts from user funds. The City will elim inate the internal service deficit with future charges to user departments. The Successor Agency of Former RDA will be recovered by future Redevelopment Property Tax Trust Fund revenue approved in the Recognized Obligation Payment Schedule.
65 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The pooled interest earned is allocated to the funds based on average quarter-end cash balances of various funds.
The following is a summary of cash and investments at June 30, 2021:
Governmental
Activities
Business-Type
Activies
Fiduciary
Funds Total
Cash and Investments 110,268,178$ 66,348,008$ 10,446,313$ 187,062,499$ Restricted Cash and Investments 4,321,998 13,480,809 20,533,444 38,336,251 Total 114,590,176$ 79,828,817$ 30,979,757$ 225,398,750$
Cash and Investments is comprised of the following at June 30, 2021:
Petty cash and change funds 10,151$
Demand deposits 49,364,816
Restricted cash held by City 506,477
Cash held in trust 59,255
Total Cash 49,940,699
Investments 137,766,598
Investments with fiscal agent 37,691,453
Total Investments 175,458,051
Total Cash and Investments 225,398,750$
a. Demand Deposits
The carrying amounts of the City’s cash deposits were $49,940,699 at June 30, 2021. Bank balances at June 30, 2021, were $39,632,939 which were fully in sured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. The $10,307,760 difference represents outstanding checks , deposits in transits, and other reconciling items.
The California Government Code requires California banks and sa vings and loan associations to secure the City’s cash deposits by pledging sec urities as collateral. This Code states that collateral pledged in this manner shall have t he effect of perfecting a security interest in such collateral superior to those of a gen eral creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive c ollateral requirements for cash deposits, which are fully insured up to $250,000 by Federa l Deposit Insurance Corporation (“FDIC”). The City has waived the collateralization requirements.
66 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
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 i ndentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the quarter-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
b. Investments Authorized by the California Government Code and t h e C i t y ’ s Investment Policy
The table below identifies the in vestment types that are author ized for the City by the California Government Code Section 53601 (or the City’s investm ent policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not add ress investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Maximum
Maturity
Maximum Percentage
Allowed
Maximum Investment in
One Issuer
5 years No Limit N/A
5 years No Limit N/A
5 years No Limit N/A
5 years No Limit N/A
5 years 15% N/A
5 years 30% surplus funds
180 days 40% 5%
270 days 25% 10%
5 years 15% 3%*
5 years 10% $250,000
5 years 10% N/A
N/A 15% N/A
92 days 20% N/A
N/A No Limit $50,000,000
5 years 30% N/A
U.S. Agency or U.S. government- sponsored
enterprise obligations
Authorized Investment Type
City of Pomona bonds
U.S. Treasury obligations
California and local agency obligations
*Certificate of deposit guaranteed by FDIC is limited to $250,000 per issuer.
Other State and local agency obligations
Medium-term notes
Bankers' acceptance
Commercial Paper
Negotiable certificates of deposit
Time deposits
Savings accounts
Money market mutual funds
Repurchase agreements
Local Agency Investment Fund ("LAIF")
Supranational
67 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
c. Investments Authorized by Debt Agreement
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the Californi a Government Code or the City’s Investment policy. Investments authorized for funds held by bond trustee include, Federal securities, Federal Agency securities, U.S. Government Sponsored Enterprise securities, money market funds, certificate of deposit collater alized by Federal or Federal Agency securities or fully Insured by Federal Deposit Insurance Corporation, investment agreements, commercial papers, bonds or notes issued by any state or municipality, federal funds or bankers acceptances with maximum term of one year, repurchase agreements, pre-refunded municipal bonds rated “Aaa” , Local Agency Investment Fund of the State of California, and any other investments permitted in writing by the Insurer. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except noted otherwise.
d. Fair Value Measurement Disclosure
At June 30, 2021, investments are reported at fair value. The f ollowing table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2021:
Quoted Prices in
Activ e Markets
for Identical
Assets (Lev el 1)
Significant Other
Observable
Inputs (Level 2) Uncategorized Total
-$ -$ 55, 094,546$ 55,094,546$ - 27,875,702 - 27, 875,702 361,869 - - 361,869 14,577,324 17,673,509 - 32, 250,833 1,203,165 - - 1, 203,165 1,379,047 - 36,113 1,415,160 - 606,637 - 606,637 3,798,587 11,413,112 - 15, 211,699 - 3,746,987 - 3, 746,987 37,099,453 - - 37, 099,453 592,000 - - 592,000 59,011,445$ 61,315,947$ 55,130,659$ 175,458,051$ Municipal Bond
Corporate
Supranational
Municipal Bonds
Total
Measurement Input
U.S. Agency Securities
Negotiable Certificate of Deposit
Money Market Mutual Funds
Comercial Paper
Investments with Fiscal Agent:
Money Market Mutual Funds
Inv estment Type
Inve stme nts
Local Agency Investment Fund
U.S. Treasury Obligations
68 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
e. Risk Disclosures
Interest Rate Risk
As means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy (Policy) limits investments to a maxim um maturity of five years.
The weighted average days to maturity of the total portfolio sh all not exceed the City’s anticipated liquidity needs for the next six (6) months. The Ci ty is in compliance with this provision of the Policy.
At June 30, 2021, the City had the following investment maturities:
1 Year or Less 1 to 3 Years 3 to 5 Years Over 5 Years Total 55,094,546$ -$ -$ -$ 55, 094,546$ 5,547,396 14,803,109 7,525,197 - 27, 875,702 4,953,800 16,750,020 10,547,013 - 32, 250,833 361,869 - - - 361,869 1,203,165 - - - 1, 203,165 1,415,160 - - - 1, 415,160 3,746,987 - - - 3, 746,987 3,610,766 9,966,751 1,634,182 - 15, 211,699 - 606,637 - - 606,637 37,099,453 - - - 37,099,453 592,000 - - - 592,000 113,625,142$ 42,126,517$ 19,706,392$ -$ 175, 458,051$ Municipal bonds
Total
Investments with Fiscal Agent:
Supranational
Investments:
Money Market Mutual Funds
Commercial Paper
Negotiable certificates of deposit
Municipal Bond
U.S. treasury obligations
Local Agency Investment Fund
Money Market Mutual Funds
U.S. agency securities
Corporate notes
69 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. The City’s investment policy p rovides that his risk be mitigated by investing in investment grade securities and by di versifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. At June 30, 2021, the City’s i nvestments are rated as following:
Fair Value at
June 30, 2021
Minimum
Legal Rating AAA AA A Not Rated
55,094,546$ N/R -$ -$ -$ 55, 094,546$ 27,875,702 N/R 27,875,702 - - - - N/R - - - - 32,250,833 A 32,250,833 - - - 361,869 A 361,869 - - - 15,211,699 A 528,793 1,018,878 13,664,028 - 1,203,165 N/R 1,203,165 -
1,415,160 AAA 1,415,160 - - - 3,746,987 A - - 3, 746,987 - 606,637 N/R 606,637 - - - -
-
37,099,453 N/R - - - - 592,000 AA - - - - 175,458,051$ 64,242,159 $ 1,018,878 $ 17,411,015 $ 55,094,546 $ N/R- Not required in California
Municipal bonds
Total
Investments with Fiscal Agent:
Supranational
Inve stm e nts:
Money Market Mutual Funds
Commercial Paper
Negotiable certificates of deposit
Corporate notes
Municipal Bond
U.S. government sponsored enterprise securities
U.S. treasury obligations
Local Agency Investment Fund
Money Market Mutual Funds
U.S. agencies securities
Concentration of Credit Risk
The investment policy of the City and California Government Code contains limitations on the amount that can be invested in any one issuer. The City is exposed to credit risk if it has invested more than 5% of its investments in any one issuer. Investments guaranteed by the U.S. government and investments in mutual funds and exte rnal investment pools are excluded from this requirement.
70 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 3: Cash and Investments (Continued)
Custodial Credit Risk
For deposits, custodial credit risk is the risk that, in the ev ent of the failure of a deposit financial institution, a government will not be able to recover its deposit or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the values of its investments or collateral securities that are in the possession of an outside party. The City’s investment policy contains requirements that would limit the exposure to custodia l credit risk for deposits or investments, other that the provision for deposits stated in th e California Government Code. Bank balances of $49,940,699 was held in collateralized a ccounts. Of the City’s investments held by trustees and fiscal agents, $37,691,453 of securities was held by the counterparty’s trust department, the trustee for the bonds, not in the name of the City as of June 30, 2021.
f. Investment in Local Agency Investment Funds
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Tr easurer of the State of Cali fornia. The City’s investments with LAIF at June 30, 2021, include a portion of th e pool funds invested in Structured Notes and Asset-Backed Securities:
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 that have embedded forwards or options.
Asset-Backed Securities are generally mortgage-backed securitie s that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2021, the City had $55,094,546 invested in LAIF, which had invested
0.016% of the pool investment funds in Structured Notes and Ass et-Backed Securities.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with Stat e statue. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF at amortized cost.
71 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Loans Receivable
At June 30, 2021, the City’s net loans receivable consisted of the following:
Balance at
June 30, 2020 Additions Deletions
Balance at
June 30, 2021
Section 108 Loans 140,000 $ - $ (10,000)$ 130,000 $ Deferred Home Improvement Loans 6,948,846 12,684 (107,307) 6,854,223 Prototype Pomona Apartment Loans 1,374,427 28,423 - 1,402,850 Rental Rehabilitation Loans 526,357 7,043 - 533,400 CHDO Loan (Shield of Faith) 1,677,966 - - 1,677,966 HOPE III Loans 406,556 18,687 - 425,243 Shield of Faith 4,741,393 - (31,410) 4,709,983 Manufactured Housing Rehabiliatation Loans 1,844,990 - (74,916) 1,770,074 Owner Occupied Loans 2,289,616 - (175,988) 2,113,628 Mortgage Assistance Programs Loans 7,518,291 208,000 (103,741) 7,622,550 Neighborhood In Progress Loans 2,511,577 - (136,703) 2,374,874 Neighborhood Stabilzation Program 311,716 - (80,000) 231,716 Multi-Unit Rental Rehabilitation Program 30,000 - (30,000) - Holt Avenue Housing Partners LP Loans 2,001,142 19,000 - 2,020,142 Telacu Housing Pomona 1,017,173 36,766 - 1,053,939 Tri-City Mental Health Center HOPE III Loan 88,310 - (29,437) 58,873 Total 33,428,360 $ 330,603 $ (779,502) $ 32,979,461 $
a. Section 108 Loans
The City used the Section 108 loan fund and entered into loan a greement with local businesses for projects that benefit low- and moderate-income p ersons. The principal balance outstanding at June 30, 2021 was $130,00.
b. Deferred Home Improvement Loans
The Housing Improvement loans funds for Health & Safety Repairs and Exterior Home Improvements. During the term of the loan, a portion of the loan shall be forgiven each full year provided that the owner is in good standing and complies w ith all of the covenants, conditions, and restrictions. The principal balance outstanding at June 30, 2021 was $6,854,223.
c. Prototype Pomona Apartment Loans
The former Redevelopment Agency entered into promissory note ag reement with Prototypes Pomona Apartments, L.P. in the amount of $947,417 on May 4, 2005 for purpose of construction and development of a 32-unit multi-fami ly, very low-income affordable housing project. The loan bears simple interest of three percent (3%) per annum.
In the event the project is sold or refinanced prior to the 30- year covenant period, the net proceeds of the sale or refinancing will be used to pay the accrued interest computed at a rate of six percent (6%) per annum from the date of default and the outstanding balance of the loan. Total outstanding principal and accrued interest at June 30, 2021 was $1,402,850. 72 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Loans Receivable (Continued)
d. Rental Rehabilitation Loan
The City used HOME fund and entered into sixteen various loan agreements for rental unit rehabilitation. Total principal borrowed from the City was in t he amount of $313,000. The loan bears simple interest at 2.25% annum. Total outstanding pr incipal and accrued interest at June 30, 2021 was $533,400.
e. Community Housing Development Organization (“CHDO”) Loan (Sh ield of Faith)
The City used HOME funds and entered into loan agreement with Shield of Faith Economic Development Corporation in July 2009 for a development project where Shield of Faith purchased properties and developed them from Low- and Moderate- income persons and families. The term of the loan is 15 years and bears zero inter est. The principal balance outstanding at June 30, 2021 was in the amount of $1,677,966 an d will be forgiven upon the fulfillment of the terms of the agreement upon maturity date.
f. HOPE III Loans
The former Redevelopment Agency entered into two types of loans agreements through the HOPE III Program under which the former Agency provided subsidy to assist persons and families of low income to purchase residential property as the principal resident at all times throughout the term of the agreement. The 20-year loans entered into during the year ended June 30, 1995 bears compound interests at 5% per annum and began to be reduced by 1/13 of the outstanding balance on August 1, 2002 annually. The loans entered into during the year ended June 30, 2008 bears interest at 2% annum and is due upon sale of the property. The outstanding balance at June 30, 2021 was in the amount of $425,243.
g. Shield of Faith
The loan between the City and Shield of Faith Economic Development Corporation was for a development project where Shield of Faith purchased properties and developed them for Low- and Moderate-income persons and families. The principal ba lance of the loan amounts to $3,715,000 with simple annual 3% interest rate, for a total of $4,709,983. The loan matures 55 years from the Certificate of Occupancy date ma turing on August 28, 2063.
h. Manufactured Housing Rehabilitation Loans
The City used CalHOME funds to provide funding for manufactured housing rehabilitation loans. The loan matures between 15 to 20 years and bears zero interest. One Tenth (1/10) of the loan balance is forgiven each year starting from year 11. The unpaid balances are due upon refinancing or transfer of the titles. At June 30, 2021, total outstanding balance was in the amount of $1,770,074.
73 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Loans Receivable (Continued)
i. Owner Occupied Loans
The City used CalHOME funds to provide two types of owner-occupied loans.
The home improvement loan bears simple interest at 1% annum and mature in 15 years or at 2% and mature in 30 years, the unpaid principal and interest are due upon (a) transfer of title, (b) refinancing of any debt secured by a lien on the property and (c) failure to occupy the property as principal residence.
The second loan program is the first-time home buyer program. The first-time home buyer can borrow up to $60,000. The loan bears zero interest and matu res in 30 years or upon sale, foreclosure, transfer of title and refinance of the property with cash out.
Total outstanding principal and accrued interest at June 30, 20 21 was in the amount of $2,113,628.
j. Mortgage Assistance Program (“MAP”) Loans
The City used HOME funds to provide mortgage assistance program loans up to $100,000 to borrower. The MAP loan bears zero interest and matures in 45 years. The former Agency also provided first time home buyer program. The former Agency’ s program is a second silent mortgage loan program designed to assist qualified low-i ncome individuals with the purchase of their first home. Program assistance is limited to $500,000 (inclusive of applicable program fees) or the le sser amount (with zero percen t interest) necessary to provide the “gap” assistance required to meet the Program’s fro nt-end ratio requirements of 25% to 35%, whichever is lower. At June 30, 2021, total outs tanding balance, net allowance, was in the amount of $7,622,550.
k. Neighborhood In Progress (“NIP”) Home Improvement Loans
The Substantial Rehabilitation Loan Program is a deferred loan up to $60,000 and bears a 2% to 4% interest rate depending on funding and income. Repayme nt of the loans is due at the time of title change, resale, refinance with cash out, o r non-compliance with that program requirements. (Depending on funding source, some loans must be repaid at the end of thirty (30) years from the date of execution of the loan documents). These loans are not a conventional equity loan or equity line of credit. Funding must be used to correct code violations or deferred maintenance which may cause code violations in the near future. The outstanding balance as of June 30, 2021 is $2,374,874.
l. Neighborhood Stabilization Program
The City through use of the Neighborhood Stabilization Program funding provided loans to qualified low- and moderate- income individuals on purchase of foreclosed homes. The loan bears zero interest and matures in 45 years. At June 30, 2 021, the total outstanding balance was in the amount of $231,716.
74 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 4: Loans Receivable (Continued)
m. Multi-Unit Rental Rehabilitation Program
The City through use of HOME fund provided multi-unit rental re habilitation program deferred loans to owner of the multi-unit low-income rental properties. The loans bear zero interest and mature in 10 years from the date of the loan. Pursuant to the loan agreement, on the sixth anniversary date of the loan, 20% shall be forgive n each year. Total outstanding balance at June 30, 2021 was $0.
n. Holt Avenue Housing Partners LP Loans
The loan between the City of Pomona and Holt Avenue Housing Partners LP was to acquire property and construct a residential housing project consisting of 62 residential units that qualify for low-income persons and families. The principal amou nt of the loan was $1,900,000 was simple interest at the rate of 1% per annum. All principal and interest shall be due in full on the date that is fifty years from the date of recordation of the certificate of completion. The outstanding balance at June 30, 2021 was $2,020,142.
o. Telacu Housing Pomona Loans
The City through use of HOME fund entered into a loan agreement with Telacu Housing-Pomona II, Inc. in Apr il 2008 and provided $612,755 for construction and development of a 70-unit multiple family apartment project comp rising of 69 one bed bedroom units for very low and low income seniors and one two-b edroom manager unit.
The loan bears simple interest at the rate of 6% annum. All pri ncipal and interest shall be due in full on the date that is twenty years from the date the project is first occupied. The outstanding balance at June 30, 2021 was $1,053,939.
p. Tri-City Mental Health Center Hope Loan
The loan between the City of Pomona and Tri-City Mental Health Center was to be used for rehabilitation of affordable rental housing, which may incl ude properties with one or more housing units, transitional housing, group home or single room occupancies for Park Avenue Permanent Supportive Housing Project. The loan carr ies zero percent interest. The outstanding balance at June 30, 2021 was $58,873.
Note 5: Interfund Transactions
a. Government – Wide Financial Statements
Internal Balances – At June 30, 2021, the City had the following internal receiv able and payable to consolidate the Intern al Service Funds’ activities r elated to the Enterprise Funds.
Internal Receivable
Internal Payable
Business-Type
Activ ities
Governmental Activities 375,466$
75 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 5: Interfund Transactions (Continued)
Transfers – For the year ended June 30, 2021, the City had the following transfers. The purpose of the transfers was for debt service payments and to r eimburse a construction project.
Transfers Out
Transfers In Business-Type Activities
Governmental Activities 3,092,248$
b. Fund Financial Statements
Due To/Due From – At June 30, 2021, the City had the following short-term inte rfund receivables and payables to cover negative cash at the end of the fiscal year.
General
Debt Service
Fund
Nonmajor
Governmental
Funds
Pomona Choice
Energy Authority
Internal
Service Funds Total
General Fund 915,576$ 134,602$ 183,484$ 55,584$ 1,289,246$ Due to Other Funds
Due from Other
Funds
Governmental Fund:
Governmental Funds Proprietary Fund
Advances To/Advances From – At June 30, 2021, the City had the following long-term Interfund advances:
Proprietary Fund
General Fund
General Debt
Service Fund
Pomona Choice
Energy Authority Total
Debt Service Fund $ - 69,200,000$ $ - 69,200,000 $ 304,435 - - 304,435 - - 735,836 735,836 304,435$ 69,200,000 $ 735,836 $ 70,240,271 $ Total Advances to
Governmental Fund:
Governmental Funds
Advance from Other Funds
Proprietary Fund:
Water Enterprise Fund
Public Financing Authority
Nonmajor Governmental Funds
Advances in the amount of $69,200,000 from the Public Financing Authority Debt Service Fund to General Debt Service Fund are loan proceeds advanced (2 017 Taxable Lease Revenue Bonds, Series BC, and BG).
Advance between the Nonmajor Government Funds and the General F und was a loan from Vehicle Parking District Special Revenue Fund made on Dece mber 3, 2001. The Vehicle Parking District provided a $600,000 loan to the City to be used by the General Fund as a loan to the former Redevelopment Agency for t he acquisition of the Fox Theater at zero interest. The principal is due when rent in come is generated or when the property is sold. There is no fixed payment schedule. At June 30, 2021, the outstanding balance of the advances was in the amount of $304,435.
Advance in the amount of $735,836 from the Water Enterprise Fund to the Pomona Choice Energy Authority are to support the energy program.
76 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 5: Interfund Transactions (Continued)
Transfers – For the year ended June 30, 2021, the City had the following transfers:
General Fund
Miscellaneous
Grant Special
Revenue Fund
Capital Outlay
Capital Projects
Fund
General
Governmental
Debt Serv ice
Fund
Nonmajor
Governmental
Funds Water Fund
Internal Service
Funds Total
-$ 159,545$ 1,210,189$ 4,082,647$ 131,750$ -$ 95,577$ 5,679,708$ - - 5,022 - - - - 5,022 50,079 - - - - - - 50,079 - - - 213,110 - - - 213,110 - - 5,824,772 - - 227,069 - 6,051,841 1,781,235 - 190,942 600,000 - - - 2,572,177 - - 54,204 417,000 - 464,611 - 935,815 - - 275,936 - - - - 275,936 - - - 3,421,057 - - - 3,421,057 1,831,314$ 159,545$ 7,561,065$ 8,733,814$ 131,750$ 691,68 0$ 95,577$ 19,204,745$ Transfer In
Capital Project Fund
Capital Outlay
Special Revenue Fund
Miscellaneous Grant
Special Revenue Fund
Housing Authority
General Fund
Governmental Funds:
Transfers Out
Governmental Funds Proprietary Funds
Nonmajor Governmental Fund
Total
Internal Enterprise Fund
Sewer Enterprise Fund
Water Enterprise Fund
Proprietary Funds:
Refuse Enterprise Fund
The transfer of $4,082,647 between the General Fund and the General Debt Service Fund was for Series AR, BC, and BG debt service payments.
Transfers in the amount of $7,561,065 to Capital Outlay Capital Projects Fund were to provide funding for capital projects.
The transfer of $1,781,235 from Water Enterprise Fund to General Fund was to reimburse the City for the cost of services.
Water and Sewer Enterprise Funds transferred $600,000 and $417, 000, respectively, to General Debt Service Fund to provide funding related to repayment of Series BC.
The remaining transfers are for the purpose of providing financ ial resources to cover expenditures.
Note 6: Due from Other Governments
At June 30, 2021, the City’s due from other governments consisted of the following:
General Fund
Housing
Authority
Special
Revenue Fund
Miscellaneous
Grant Special
Revenue Fund
Debt Service
Fund - General
Government
Capital Outlay
Capital project
Fund
Nonmajor
Governmental
Funds Total
Federal government -$ 452,192$ 1,411,635$ -$ 927,028$ 659,191$ 3,450,046$ State of California 8,054,825 - 36,180 - - 279,775 8,370,780 County of Los Angeles 983,190 1,938,145 110,131 17,339 - 34,767 3,083,572 Local government entities 2,720 - - - - 62,145 64,865 Total 9,040,735$ 2,390,337$ 1,557,946$ 17,339$ 927,028$ 1,035,878$ 14,969,263$ Governmental Activities
77 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 7: Land Held for Resale
At June 30, 2021, land held for resale in the amount of $4,490,541 is reported at the acquisition cost in the Housing Authority Special Revenue Fund.
Note 8: Capital Assets
a. Government – Wide Financial Statements
At June 30, 2021, the City’s capital assets consisted of the following:
Governmental
Activities
Business-Ty pe
Activities Total
80,887,590$ 9,089,782 $ 89,977,372 $
73,937,100 12,929,518 86,866,618
Total nondepreciable assets 154,824,690 22,019,300 176,843,990 15,081,452 3,482,783 18,564,235
65,560,366 871,529 66,431,895
21,887,459 228,193,390 250,080,849
1,149,397 5,105 1,154,502
12,763,719 7,064,002 19,827,721
3,656,570 4,257,381 7,913,951
388,508,753 - 388,508,753
508,607,716 243,874,190 752,481,906
(13,390,847) (3,349,882) (16,740,729)
(33,651,625) (251,285) (33,902,910)
(18,928,501) (98,289,841) (117,218,342)
(993,856) (5,105) (998,961)
(10,109,547) (4,682,858) (14,792,405)
(1,680,089) (3,405,904) (5,085,993)
(293,314,213) - (293,314,213) (372,068,678) (109,984,875) (482,053,553)
136,539,038 133,889,315 270,428,353
291,363,728$ 155,908,615 $ 447,272,343 $
Building and building improvements
Land
Construction in Progress
Depreciable assets:
Nondepreciable assets:
Improvements other than buildings
Equipment under capitalized leases
Infrastructure
Machinery and Equipment
Furniture and fixtures
Autos and trucks
Total capital assets, at cost
Less accumulated depreciation:
Building and building improvements
Improvements other than buildings
Machiner
y and equipment
Total capital assets, net
Autos and trucks
Furniture and fixtures
Equipment under capitalized leases
Infrastructure
Total accumpilated depreciation
Total depreciable assets, net
78 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 8: Capital Assets (Continued)
b. Governmental Activities
The following is a summary of changes in capital assets for governmental activities for the year ended June 30, 2021:
Balance
July 1, 2020 Additions Deletions Transfers
Balance
June 30, 2021
80,887,590$ - $ - $ - $ 80, 887,590$ 62,671,480 11, 860,938 ( 158,225) ( 437,093) 73, 937,100 Total nondepreciable assets 143,559,070 11,860,938 (158,225) (437,093) 154,824,690 15,081,452 - - - 15, 081,452 65,560,366 - - - 65, 560,366 21,610,951 483,474 (206,966) - 21, 887,459 1,044,044 105,353 - - 1,149,397 12,142,545 839,556 (218,382) - 12, 763,719 3,542,763 113,807 - - 3,656,570 388,198,759 - ( 127,099) 437,093 388,508,753 507,180,880 1,542,190 (552,447) 437,093 508,607,716 (13,205,981) (184,866) - - (13,390,847) (32,114,064) (1,537,561) - - (33, 651,625) (18,541,450) (589,568) 202,517 - (18, 928,501) (970,515) (23,341) - - (993,856) (9,732,938) (594,991) 218,382 - (10, 109,547) (1,369,808) (310,281) - - (1, 680,089) (287,017,616) (6,423,696) 127,099 - ( 293,314,213) (362,952,372) (9,664,304) 547,998 - ( 372,068,678) 144,228,508 (8,122,114) (4,449) 437,093 136,539,038 287,787,578$ 3,738,824$ (162,674)$ -$ 291,363,728$ Total capital assets, net Autos and trucks
Furniture and fixtures
Equipment under capitalized
Infrastructure
depreciation
Total depreciable assets, net
Total capital assets, at cost
Less accumulated depreciation:
Building and building
Improvements other than
Machinery and equipment
Improvements other than
Equipment under capitalized
Infrastructure
Machinery and Equipment
Furniture and fixtures
Autos and trucks
Building and building
Land
Cons tructi
on in Progress
Depreciable assets:
Nondepreciable assets:
Depreciation expense for capital assets of the governmental act ivities for the year ended June 30, 2021, is as follows:
General government 427,134$
Public safety 1,204,382
Development services 6,900,656
Neighborhood services 1,092,101
Internal service funds 40,031
Total 9,664,304$
79 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 8: Capital Assets (Continued)
c. Business-Ty pe Activities
The following is a summary of changes in capital assets for business-type activities for the year ended June 30, 2021:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
9,089,782$ -$ -$ 9,089,782$ 12,124,740 804,778 - 12,929,518 Total nondepreciable assets 21,214,522 804,778 - 22,019,300 3,482,783 - - 3,482,783 871,529 - - 871,529 227,823,903 399,609 (30,122) 228,193,390
5,105 - - 5,105 6,763,049 300,953 - 7,064,002 4,257,381 - - 4,257,381 243,203,750 700,562 (30,122) 243,874,190
(3,340,233) (9,649) - (3,349,882) (218,050) (33,235) - (251,285) (94,638,316) (3,681,647) 30,122 (98,289,841)
(5,105) - - (5,105) (4,178,908) (503,950) - (4,682,858) (2,980,166) (425,738) - (3,405,904) (105,360,778) (4,654,219) 30,122 (109,984,875)
137,842,972 (3,953,657) - 133,889,315
159,057,494$ (3,148,879)$ -$ 155,908,615$ Total capital assets, net Autos and trucks
Furniture and fixtures
Equipment u
nder capitalized leases
Total accumpilated depreciation
Total depreciable assets, net
Total capital assets, at cost
Less accumulated depreciation:
Building and building improvements
Improvements other than buildings
Machinery and equipment
Improvements other than buildings
Equipment under capitalized leases
Machinery and Equipment
Furniture and fixtures
Autos and trucks
Building and building improvements
Land
Construction in Progress
Depreciable assets:
Nondepreciable assets:
Depreciation expense for capital assets of the business-type ac tivities for the year ended June 30, 2021, is as follows:
Water 3,457,457$
Sewer 668,888
Refuse 522,026
Canon Water Company 5,848
Total 4,654,219$
Note 9: Other Investments
Other Investments in Water Enterprise fund represent one-quarter of share of the San Antonio Water Company for a cost of $9,000.
80 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Liabilities
The following is a summary of changes of long-term liabilities for the year ended June 30, 2021:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Due in more
than One Year
51,786$ -$ -$ 51,786$ 51,786$ -$ 1,596,819 - (376,370) 1,220,449 174,350 1,046,099 Collateralized borrowing 3,077,995 - (55,249) 3,022,746 57,437 2,965,309 536,036 - (85,148) 450,888 85,148 365,740 75,670,450 - (3,542,368) 72,128,082 3,487,000 68,641,082 3,492,601 200,931,269 (284,302) 204,139,568 299,726 203,839,842 4,495,332 34,474 (350,698) 4,179,108 335,028 3,844,080 88,921,019$ 200,965,743$ (4,694,135)$ 285,192,627$ 4,490,475$ 280,702,152$ Total governmental activities Governmental Activities:
Notes Payable
Revenue Bonds
Accreted interest
Pension obligation refunding bonds
Pollution remediation obligations
Obligation under capital leases
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Due in more
than One Year
109,839,269$ - $ (2, 561,742)$ 107,277,527 $ 2,520,000 $ 104,757,527 $ - 21, 108,787 - 21, 108,787 21,108,787 109,839,269$ 21,108,787 $ (2,561,742) $ 128,386,314 $ 2,520,000 $ 125,866,314 $ Business-Type Activities:
Revenue Bonds
Total business-type activities
Pension Obligation bonds
Pollution Remediation Obligations
The City acquired properties which were determined to have soil and groundwater contamination. The City is respon sible for the investigation, characterization and remediation of the soil and groundwater from the contamination. The City’s remediation costs were initially estimated at $1,781,262. During the current fiscal year, the City had no clean-up cost. The remaining outstanding cost to complete the c lean-up is estimated at $51,786 at June 30, 2021.
Obligations Under Capital Leases
At June 30, 2021, obligations under capital lease consisted of the following:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
1,596,819$ - $ (376,370)$ 1,220,449 $ 174,350 $ BBVA
The City has entered into numerous equipment lease-purchase agreements with a leasing company whereby the lessor acquired certain equipment and lease d it to the City with an option to purchase. The related assets have been capitalized as capital assets.
The total leased assets by major asset class consisted of the following at June 30, 2021:
Equipment under capitalized leases, at cost 3,656,570$
Accumulated depreciation 1,680,089
Equipment under capitalized leases, net 5,336,659$
The depreciation expense for equipment under capitalized leases was $310,281 for the year ended June 30, 2021.
81 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
The rates of interest on the lease purchase agreements range fr om 2.19% to 3.30% per annum. Future minimum lease payments under the capital lease at June 30, 2021 is as follows:
Year Ending June 30,
2022 211,068 $
2023 205,628
2024 200,189
2025 194,749
2026 189,309
2027-2028 365,299
Subtotal 1,366,242
Less amount representing interest (145,793)
Present value of future minimum lease payments 1,220,449$
Collateralized Borrowing
During 2019, the City entered into a 31-year lease agreement wi th Crown Castle on five cell tower sites and received a one-time payment of $3,131,140 in exchange for future rent revenues totaling $5,394,000. The rate of this agreement is 3.89% per annum.
The annual debt service requirement for the collateralized borr owing at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 57,437$ 116,563$ 174,000$
2023 59,712 114,288 174,000
2024 62,076 111,924 174,000
2025 64,534 109,466 174,000
2026 67,090 106,910 174,000
2027-2031 377,467 492,533 870,000
2032-2036 458,363 411,637 870,000
2037-2041 556,595 313,405 870,000
2042-2046 675,880 194,120 870,000
2047-2050 643,592 52,408 696,000
Total 3,022,746$ 2,023,254$ 5,046,000$
Notes Payable
At June 30, 2021, notes payable consisted of the following:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
80,000$ -$ (20, 000)$ 60,000$ 20,000$ 456,036 - (65, 148) 390,888 65,148 536,036$ -$ (85, 148)$ 450,888$ 85,148$ Hud Section 108 Loan
Southern California Edison
On Bill Financing
82 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
HUD Section 108 Loan
The City has three notes guarantee d by the United States Department of Housing and Urban Development (“HUD”) under Section 108 of the Community De velopment Act and are payable from future Community Development Block Grant (“CDBG”) entitlements. The notes were made to Casa Herrer a ($2,375,000) on February 1, 199 8; Village Car Wash ($100,000) on September 17, 2012; and Freddie’s Auto Repair ($1 00,000) on August 20, 2012. On June 30, 2010, the balance of the original loan for Casa Herrera was defeased to refinance the loan at a lower interest rate. The ne w interest rate for Casa Herrera ranges from 4.96% to 5.77%, with new loan terms be ginning on February 1, 2011 and maturing August 1, 2016. The interest rate for both Village Car Wash and Freddie’s Auto Repair is variable and equal to 20 basis poi nts (0.2%) above the applicable London Interbank Offered Rates (“LIBOR”), at 2.5%, with loan terms beginning on July 1, 2013 and maturing on August 1, 2023. Casa Herrera is responsible for the principal payment on its note and the City is responsible for t he interest payment.
Village Car Wash and Freddie’s Auto Repair are responsible for principal and interest payments on its notes. All notes are guaranteed by CDGB funds; thus, in the event of default, the City’s CDBG entitlement funds may be used to cover any outstanding debt.
The annual debt service requirement at June 30, 2021 is as follows:
Year Ending June 30, Principal Interest Total
2022 20,000 $ 3,000$ 23,000$
2023 20,000 - 20,000
2024 20,000 - 20,000
Total 60,000$ 3,000$ 63,000$
Southern California Edison On Bill Financing
On September 26, 2017, the City entered into the on-bill financ ing agreement with Southern California for the Energy Solution Incentive Applicable. The agreement provides zero-interest financing for the installation of certain energy efficient streetlights up to $623,628.
The annual debt service requirement at June 30, 2021 as follow:
Year Ending June 30, Principal Interest Total
2022 65,148$ -$ 65,148$
2023 65,148 - 65,148
2024 65,148 - 65,148
2025 65,148 - 65,148
2026 65,148 - 65,148
2027-2028 65,148 - 65,148
Total 390,888$ -$ 390,888$
83 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
Revenue Bonds – Governmental Activities
At June 30, 2021, revenue bonds consisted of the following:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
1,260,000$ - $ (615,000)$ 645,000 $ 645,000 $ 1,141,000 - (549,000) 592,000 592,000 23,330,000 - (1,160,000) 22,170,000 1,195,000 1,804,450 - (113,368) 1,691,082 - 48,135,000 - (1,105,000) 47,030,000 1,055,000 75,670,450$ -$ (3,542,368)$ 72,128,082$ 3,487,000$ Total 2017 Taxable Lease Revenue
Refunding Bonds, Series BG
2005 Reassessment and Refunding
Bonds, Series AM
Unamortized Bond Premium
2005 Subordinate Revenue Bonds Series AL
2016 Lease Revenue Refunding Bonds Series BC
2017 Taxable Lease Revenue
Refunding Bonds, Series BG (352,620) $ - $ 23,511$ (329,109) $ (352,620)$ - $ 23,511$ (329,109) $
2016 Lease Revenue Refunding Bond, Series BC 381,228$ - $ (23, 953) $ 357,275$ 381,228$ - $ (23,953) $ 357,275$
Unamortized Deferred Loss on Refunding
Unamortized Deferred Gain on Refunding
2005 Subordinate Revenue Bonds, Series AL- Original Issuance $11,370,000
On February 1, 2005, the Public Financing Authority issued $11, 370,000 in 2005 Subordinate Revenue Bonds, Series AL to purchase the 2005 Reassessment and Refunding Revenue Bonds, Series AM, to finance certain capital improvements in the City and to fund a reserve account for the Bonds. Interest on the bonds in payable semiannually on each September 2 and March 2, commencing September 2, 2005. The rate of interest ranges from 2.50% to 5.10% per annum. Principal on the subordin ate revenue bonds is payable in annual installments ranging from $275,000 to $955,000. During 2008, the bonds in the amount of $1,975,000 were called.
The annual debt service requirement for the 2005 Subordinate Revenue Bonds, Series AL outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 645,000$ 16,448$ 661,448$
Total 645,000$ 16,448$ 661,448$
84 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
2005 Reassessment and Refunding Revenue Bonds, Series AM – Original Issuance $9,524,000
On February 1, 2005, the City issued $9,524,000 in 2005 Reassessment and Refunding Revenue Bonds, Series AM, to provide funds to refund the refunding Improvement Bonds, Assessment District No. 294. Interest on the bonds is payable semiannually on each September 2 and March 2. The rate of interest is 7.22% per ann um. During 2008, the bonds in the amount of $1,920,000 were called.
The annual debt service requirement for the 2005 Subordinate Revenue Bonds, Series AM outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 592,000 $ 21,371 $ 613,371$
Total 592,000 $ 21,371 $ 613,371$
2016 Lease Revenue Refunding Bonds, Series BC-Original Issuance $26,645,000
On August 17, 2016, the Authority issued $26,645,000 in 2016 Lease Revenue Refunding Bonds, Series BC, to (a) current refund the City’s 2013 Certifi cates of Participation, Series AG and the Authority’s 20 05 Lease Revenue Bonds, Series AN, (b) purchase a reserve policy, and (c) pay for the cost of issuance.
The current refunding resulted in a difference between the acqu isition price (Series BC) and the net carrying amount of the relinquished bonds (Series AG and AN) in the amount of $437,040. This amount is reported as deferred gain on refunding. This deferred amount is amortized through June 1, 2034, the maturity date of the refunded debt (Series AG). The refunding also resulted in the net present value savings in the amount of $6,224,352 and savings in debt serviced payment in the amount of $9,737,668.
Interest on the bonds is payable semiannually on each December 1 and June 1 and the final principal matures on June 1, 2036. The rates of interest range from 2% to 4% per annum. Principal is payable in annual installments ranging from $1,085,000 to $1,810,000.
The bonds are secured by certain revenues consisting of certain Lease Payments with respect to the leased property by the City.
The annual debt service requirement for the 2016 Lease Revenue Refunding bonds, Series BC outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 1,195,000$ 759,038 $ 1,954,038 $
2023 1,230,000 722,663 1,952,663
2024 1,265,000 678,913 1,943,913
2025 1,320,000 627,213 1,947,213
2026 1,370,000 573,413 1,943,413
2027-2031 7,700,000 2,026,875 9,726,875
2032-2036 8,090,000 677,150 8,767,150
Total 22,170,000$ 6,065,265 $ 28,235,265 $
85 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
2017 Lease Revenue Refunding Bonds, Series BG-Original Issuance $50,475,000
On June 30, 2017, the Authority issued $50,475,000 in 2017 Leas e Revenue Refunding Bonds, Series BG, (a) to current refund the Authority’s 2006 Lease Revenue Bonds, Series AU and Series AV, and a portion of the City’s 2006 Pension Obli gation Refunding Bonds, Series AR and (b) to pay for the premium of municipal bond insurance policy and municipal bond debt service reserve insurance policy, and (c) to pay for the cost of issuance.
The current refunding resulted in a difference between the acquisition price (Series BG) and the net carrying amount of the relinquished bonds (Series A R, AU, and AV) in the amount of $423,223. The amount is reported as deferred loss on refunding. The deferred amount is amortized through July 1, 2035, the maturity date of the refund debt. The refunding also resulted in net present value saving in the amount of $7,400,589 and saving in debt service payments in the amount of $990,384
Interest on the bonds is payable semiannually on each October 1 and April 1 and the final principal matures on April 1, 2045. The rates of interest range from 1.844% to 4.092% per annum. Principal is payable in annual installments ranging from $480,000 to $3,470,000.
The bonds are secured by certain revenues consisting of certain lease payments with respect to the leased property by the City.
The annual debt service requirement for 2017 Lease Revenue Refunding Bonds, Series BG outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 1,055,000$ 1,831,264 $ 2,886,264 $
2023 990,000 1,803,715 2,793,715
2024 940,000 1,775,691 2,715,691
2025 875,000 1,748,091 2,623,091
2026 810,000 1,721,518 2,531,518
2027-2031 4,430,000 8,222,192 12,652,192
2032-2036 11,200,000 6,627,873 17,827,873
2037-2041 13,655,000 4,116,435 17,771,435
2042-2045 13,075,000 1,096,963 14,171,963
Total 47,030,000$ 28,943,742 $ 75,973,742 $
86 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
Revenue Bonds – Business-Type Activities
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
8,425,000$ -$ -$ 8,425,000$ -$ (17,407) - 777 (16,630) - 3,185,000 - (355,000) 2,830,000 370,000 (32,354) - 3,687 (28,667) - 32,355,000 - - 32,355,000 - 2,984,030 - (111,206) 2,872,824 - 49,975,000 - (1,875,000) 48,100,000 1,925,000 12,965,000 - (225,000) 12,740,000 225,000 109,839,269$ -$ (2,561,742)$ 107,277,527$ 2,520,000$ (352,318)$ -$ 5,088$ (347,230)$ (123,578) - 4,534 (119,044) Total (475,896)$ -$ 9,622$ (466,274)$ 1,252,343$ -$ (46,671)$ 1,205,672$ 1,787,996 - (66,633) 1,721,363 Total 3,040,339$ -$ (113,304)$ 2,927,035$ 2016 Revenue Refunding Bonds,
2018 Taxable Refunding Revenue
(Sewer Project), Series BH
(Sewer Project), Series BB
2016 Taxable Revenue Refunding
Unamortized Bond Discount
2017 Refunding Revenue Bonds
(Water Facilities), Series BE
Unamortized Bond Premium
Total
Unamortized Bond Discount
Bonds (Sewer Project), Series BD
2017 Taxable Refunding Revenue
Bonds (Water Facilities), Series BF
Unamortized Deferred Loss on Refunding:
2016 Revenue Refunding Bonds,
2016 Taxable Revenue Refunding
(Sewer Project), Series BB
Bonds (Sewer Project), Series BD
Unamortized Deferred Gain on Refunding:
2017 Refunding Revenue Bonds
(Water Facilities), Series BE
2017 Taxable Refunding Revenue Bonds
(Water Facilities), Series BF
2016 Revenue Refunding Bonds (Sewer Projects), Series BB – Original Issuance $8,425,000
On October 12, 2016, the Authority issued $8,425,000 in 2016 Revenue Refunding Bonds Sewer Projects, Series BB, (a) to current refund the Authority’s 2002 Refunding Revenue Bonds, Series AF and (b) to fund the initial reserve, and (c) to pay for the cost of issuance.
The current refunding resulted in a difference between the acqu isition price (Series BB) and the net carrying amount of the relinquished bonds (Series A F) in the amount of $437,832. This amount is reported as deferred loss on refunding. The deferred amount is amortized through December 1, 2035, the maturity date of the re funded debt. The refunding of Series AF with Series BB/BD also resulted in net present value savings in the amount of $1,896,844 and saving in debt service payments in the amount of $3,022,853.
87 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
Interest on the bonds is payable semiannually on each December 1 and June 1 and the final principal matures on December 1, 2042. The rates of interest range from 3.25% to
4.00% per annum. Principal is payable in annual installments ra nging from $360,000 to $710,000. The bonds are secured by an installment Sale Agreemen t, dated as of November 1, 2016 between the City and the Authority. The Installment Payments are a special limited obligation of the City, payable from and secured by a pledge of and first lien on all Net Revenues, subject to the parity lien securing the Authority’s 2007 Installment Sale Agreement, in the Sewer Enterprise Fund held by the City i n trust under the Installment Sale Agreement.
The annual debt service requirement for the 2016 Revenue Refund ing Bonds (Sewer Projects), Series BB outstanding at June 30, 2021 is as follows:
Year Ending June 30, Principal Interest Total
2022 -$ 292,019$ 292,019$
2023 - 292,019 292,019
2024 - 292,019 292,019
2025 - 292,019 292,019
2026 292,019 292,019
2027-2031 1,775,000 1,361,694 3,136,694
2032-2036 2,735,000 933,331 3,668,331
2037-2041 3,205,000 451,406 3,656,406
2042-2043 710,000 23,963 733,963
Total 8,425,000$ 4,230,489$ 12,655,489$
2016 Taxable Revenue Refunding Bonds (Sewer Projects), Series BD – Original Issuance $4,185,000
On October 12, 2016, the Authority issued $4,185,000 in 2016 Ta xable Revenue Refunding Bonds (Sewer Projects), Series BD (a) to current refu nd the Authority’s 2002 Refunding Revenue Bonds, Series AF and (b) to fund the initial reserve, and (c) to pay for the cost of issuance.
The current refunding resulted in a difference between the acqu isition price (Series BD) and the net carrying amount of the relinquished bonds (Series A F) in the amount of $173,992. This amount is reported as deferred loss on refunding. The deferred amount is amortized through December 1, 2028, the maturity date of the re funding debt. See disclosure of Series BB for net present value savings and saving in debt service payments.
Interest on the bonds is payable semiannually on each December 1 and June 1 and the final principal matures on December 1, 2028. The rates of inter est range from 1.125% to
3.000% per annum. Principal is payable in annual installments ranging from $80,000 to $425,000. The bonds are secured by an Installment Sale Agreemen t, dated as of November 1, 2016 between the City and the Authority. The Installment Payments are a special limited obligation of the City, payable from and secured by a pledge of and first lien on all Net Revenues, subject to the parity lien securing the Authority’s 2007 Installment Sale Agreement, in the Sewer Enterprise Fund held by the City i n trust under the Installment Sale Agreement.
88 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
The annual debt service requirement for the 2016 Taxable Revenu e Refunding Bonds (Sewer Projects), Series BD outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 370,000$ 65,231$ 435,231$
2023 380,000 56,906 436,906
2024 390,000 47,406 437,406
2025 405,000 37,169 442,169
2026 415,000 26,031 441,031
2027-2029 870,000 17,019 887,019
Total 2,830,000$ 249,762$ 3,079,762$
2017 Refunding Revenue Bonds (Water Facilities Project), Series BE – Original Issuance $32,355,000
On April 20, 2017, the City issued $32,355,000 in 2017 Refundin g Revenue Bonds (Water Facilities Project), Series BE, (a) to current refund th e Authority’s 2007 Revenue Bonds, Series AY and (b) to pay for the cost of issuance.
The current refunding resulted in a difference between the acqu isition price (Series BE) and the net carrying amount of the relinquished bonds (Series A Y) in the amount of $1,400,135. This amount is reported as deferred gain on refunding. The deferred amount is amortized through May 1, 2047, the maturity date of the refu nded and refunding debt.
The refunding also resulted in net present value savings in the amount of $5,804,889 and savings in debt service payments in the amount of $10,341,640.
Interest on the bonds is payable semiannually on each November 1 and May 1 and the final principal matures on May 1, 2047. The rates of interest range from 4.000% to 5.000% per annum. Principal is payable in annual installments ranging from $745,000 to $2,485,000. The bonds are limited obligations of the City payable solely from net revenues, which consist of revenues of the city’s water system remaining after payment of operation and maintenance costs of the City’s water system, and from amounts on deposit in certain funds and accounts created under the bond indenture, including the rate stabilization fund.
The annual debt service requirement for the 2017 Taxable Refund ing Revenue Bonds (Water Facility Project), Series BE outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 -$ 1,452,150$ 1,452,150$
2023 - 1,452,150 1,452,150
2024 - 1,452,150 1,452,150
2025 - 1,452,150 1,452,150
2026 - 1,452,150 1,452,150
2027-2031 3,185,000 7,047,125 10,232,125
2032-2036 7,175,000 5,711,225 12,886,225
2037-2041 8,740,000 4,117,350 12,857,350
2042-2046 10,770,000 2,008,700 12,778,700
2047 2,485,000 62,125 2,547,125
Total 32,355,000$ 26,207,275$ 58,562,275$
89 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
2017 Taxable Refunding Revenue Bonds (Water Facilities Project), Series BF – Original Issuance $55,555,000
On April 20, 2017, the City issued $55,555,000 in 2017 Taxable Refunding Revenue Bonds (Water Facilities Project), Series BF, (a) to current refund th e Authority’s 2007 Revenue Bonds, Series AY and 2007 Taxable Revenue Refunding Bonds, Series AZ and (b) to pay for the cost of issuance.
The current refunding resulted in a difference between the acqu isition price (Series BF) and the net carrying amount of the relinquished bonds (series A Y and AZ) in the amount of $1,991,001. This amount is r eported as deferred gain on refunding. The deferred amount is amortized through May 1, 2047, the maturity date of the refunded and refunding debt. The refunding also resulted in a net present value savin gs in the amount of $9,412,637 and savings in debt service payments in the amount of $26,091,863.
Interest on the bonds is payable semiannually on each November 1 and May 1 and the final principal matures on May 1, 2047. The rates of interest range from 1.530% to 4.050% per annum. Principal is payable in annual installments ranging from $1,510,000 to $2,420,000. The bonds are limited obligations of the City payable solely from net revenues, which consist of revenues from the City’s water system remainin g after payment of operation and maintenance costs of the City’s water system, and from amounts on deposit in certain funds and accounts created under the bond indenture, including the rate stabilization fund.
The annual debt service requirement for the 2017 Taxable Refund ing Revenue Bonds (Water Facility Project), Series BF outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 1,925,000$ 1,727,702$ 3,652,702$
2023 1,970,000 1,676,666 3,646,666
2024 2,025,000 1,620,975 3,645,975
2025 2,080,000 1,560,798 3,640,798
2026 2,145,000 1,496,350 3,641,350
2027-2031 8,675,000 6,494,179 15,169,179
2032-2036 7,290,000 5,158,838 12,448,838
2037-2041 8,825,000 3,585,759 12,410,759
2042-2046 10,745,000 1,612,406 12,357,406
2047 2,420,000 49,005 2,469,005
Total 48,100,000$ 24,982,678$ 73,082,678$
90 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
2018 Taxable Refunding Revenue Bonds (Sewer Project), Series BH – Original Issuance $13,390,000
On February 14, 2018, the City issued $13,390,000 in 2018 Refunding Revenue Bonds (Sewer Project), Series BH, (a) to current refund the Authority ’s 2007 Revenue Bonds (Sewer Project) Series BA and (b) to pay for the cost of issuance.
The current refunding resulted in the economic gain in the amou nt of $1,807,498 and the debt service payment saving in the amount of $3,155,990. The current refunding resulted in no deferred gains or losses as the bond proceeds net of the issuance discount was sufficient to cover repayment of 2007 Revenue Bonds (Sewer Proj ect), Series BA, the interest due, and the issuance cost of the 2018 Taxable Refundi ng Revenue Bonds (Sewer Project), Series BH.
Interests on the bonds is payable semiannually on each December 1 and June 1 and the final principal matures on December 1, 2046. The rates of interest range from 3.80% to
4.50% per annum.
The annual debt service requirement for the 2017 Taxable Refund ing Revenue Bonds (Sewer Project), Series BH outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 225,000$ 497,622$ 722,622$
2023 235,000 491,013 726,013
2024 240,000 483,793 723,793
2025 250,000 476,058 726,058
2026 250,000 467,883 717,883
2027-2031 1,410,000 2,195,105 3,605,105
2032-2036 1,715,000 1,894,070 3,609,070
2037-2041 2,090,000 1,516,595 3,606,595
2042-2046 3,535,000 815,183 4,350,183
2047 2,790,000 115,620 2,905,620
Total 12,740,000$ 8,952,942$ 21,692,942$
91 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
Pension Obligation Bonds
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Governmental Activities
3,492,601$ - $ 264,302$ 3,228,299$ 299,726$ 4,495,332 34,474 350,698 4,179,108 335,028 - 198,985,613 - 198,985,613 - - 1,945,656 - 1,945,656 - Business-Type Activ ities
- 20,904,387 - 20,904,387 - - 204,400 - 204,400 - 7,987,933$ 222,074,530$ 615,000$ 229,447,463$ 634,754$ Total 2006 Pension Obligation Bonds,
Series AR
Accreted Interest
2020 Pension Obligation Bonds,
Series BJ
Bond Premuim
2020 Pension Obligation Bonds,
Series BJ
Bond Premuim
2006 Pension Obligation Refunding Bonds, Series AR- Original Issuance $42,280,684
The City is a member of the California Public Employees’ Retirement System (“CalPERS”), a public employees’ defined benefits retirement program. In 200 4, the City issued $32,300,000 and $5,700,000 in Pension Obligation Bonds, in orde r to fund the City’s unamortized, unfunded actuarial accrued liability and to fund the current year General Fund contributions to CalPERS.
On February 1, 2006, the City issued $42,280,684 in 2006 Pension Obligations Refunding Bonds, Series AR to refund the City’s outstanding Pension Oblig ation Refunding Bonds, Series 004 AJ and its Pension Obligation Refunding Bonds, Series 2004 AK, to capitalize certain interest on the Bonds and to pay the costs of issuing t he Bonds. The refunding achieved net present value savings of $868,932, or 2.3% of refunded par and changed the debt structure from variable rate to fixed rate.
The Bonds were issued as current interest bonds in the principa l amount of $36,205,000 and as capital appreciations bonds in the original issue amount of $6,075,684.
Interest on the current interest bonds is payable semi-annually on each January 1 and July 1. The rates of interest vary and range from 5.492% to 5.8 32% per annum. Principal is payable in annual installments ranging from $71,302 to $5,140,000. The current interest bonds were current refunded by the 2017 Lease Revenue Refunding Bonds, Series BG during the year ended June 30, 2017.
The capital appreciation bonds bear interest ranges from 5.24% to 5.68% and are payable only at maturity. The accreted value of each capital appreciati on bond is equal to its accreted value upon the maturity thereof, being comprised of its initial purchase price and the accreted interest between the delivery date and its respect ive maturity date. The obligation of the City to make payments with respect to the Bon ds is an absolute and unconditional obligation of the City imposed upon the City by t he Retirement Law and is not limited to any special source of funds. The City’s obligation for the Bonds is any money available in the City’s General Fund. The Bonds are not secured or limited as to payment 92 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
by any special source of funds of the City. The current interes t bonds are subject to redemption prior to maturity. The capital appreciation bonds are not subject to redemption prior to maturity.
July 1, 2017, principal and interest payments for the capital a ppreciation bonds were redeemed through the issuance of 2017 Lease Revenue Refunding Bonds, Series BG. The proceeds were deposited to the trust account on June 29, 2017.
The annual debt service requirement outstanding at June 30, 2021, is as follows:
Year Ending
June 30, Principal Interest
Accreted
Interest Total
2022 299,726$ 75,246 $ 335,028 $ 710,000 $ 2023 319,328 123,736 356,936 800,000 2024 332,130 176,634 371,236 880,000 2025 346,154 229,532 394,314 970,000 2026 359,352 298,392 407,256 1,065,000 2027-2030 1,551,609 1,444,053 2,314,338 5,310,000 Total 3,208,299$ 2,347,593 $ 4,179,108 $ 9,735,000 $
2020 Taxable Pension Obligation Bonds, Series BJ - Original Issuance $219,890,000
On August 13, 2020, the City issued $219,890,000 in 2020 Taxabl e Pension Obligations Bonds, Series BJ to pay all or a portion of the City’s currently unamortized, unfunded accrued actuarial liability to t he California Public Employees Retirement system with respect to the City’s defined benefit retirement plans for City employees and to pay costs of issuance of the bonds. The b onds liability has be allocated between the City’s governmental activities (0.743%) and City’s business-type activities (0.257%).
Interest on the bonds ranging from 2.474% to 4.000% are payable semiannually on February 1 and August 1 of each year, commence in February 2021 through the maturity on August 2046. Principal is payable in annual installments ranging from $7,590,000 to $11,650,000 on August 1.
The bonds are not secured by any property other than the funds that the City has actually deposited with the Trustee. If the City is in bankruptcy, it m ay not be obligated to make further deposits with the trustee, it may not be obligated to make any further allocations to the bonds and it may not be obligated to turn over to the trustee any moneys that have been allocated to the Bonds in the City treasury. As a result, the bonds would be treated as unsecured obligations of the City in an bankruptcy case.
Proceeds used from this bond issuance in the fiscal year ending June 30, 2021 are shown as contributions subsequent to the measurement date as of June 30, 2021 and will be applied to pension plan fiduciary assets in the fiscal year ending June 30, 2022.
93 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
The annual debt service requirement for 2020 Taxable Pension Ob ligations Bonds, Series BJ outstanding at June 30, 2021, is as follows:
Year Ending June 30, Principal Interest Total
2022 -$ 7,245,840$ 7,245,840$
2023 7,590,000 7,573,667 15,163,667
2024 7,900,000 7,342,867 15,242,867
2025 8,220,000 7,026,767 15,246,767
2026 8,555,000 6,697,817 15,252,817
2027-2031 46,725,000 29,388,164 76,113,164
2032-2036 54,515,000 21,803,344 76,318,344
2037-2041 59,490,000 11,678,559 71,168,559
2042-2046 26,350,000 2,317,787 28,667,787
2047 545,000 25,424 570,424
Total 219,890,000$ 101,100,236$ 320,990,236$
Pledged Revenue
The City has pledged certain revenue to the repayment of its Water and Sewer Enterprise Fund bonds through final maturity on May 1, 2047, or earlier. These bonds were issued to refinance Series AF, AY, AZ and BA. All net available revenues are irrevocably pledged by the City to the repayment of t he bond’s debt services. During the year ended June 30, 2021, the Water and Sewer Enterprise Funds have net available revenues of $10,548,994 and total debt service paid was $6,357,104. The sew er and Water Revenue Bonds require net revenue of 100% and 120% of debt service, res pectively. Annual principal and interest payments on the bonds are expected to require roughly 45% of future net revenue. The total principal and interest remaining to be paid at June 30, 2021, on the Bonds is as follows:
Remaining
Balance
12,655,489$
3,079,762
58,562,275
73,082,678
21,692,942
Total 169,073,146 $
2020-2021
10,548,994$
Revenue
Net available revenues, excluding debt service
Debt Issue
2016 Revenue Refunding Bonds, Seriws BB
2016 Taxable Revenue Refunding Bonds, Series BD
2017 Refunding Revenue Bonds, Series BE
2017 Taxable Refunding Revenue Binds, Series BF
2018 Revenue Bonds (Sewer Project), Series BH
94 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 10: Long-Term Lia bilities (Continued)
Outstanding Principal on Capital-Related Debt
The City has acquired capital assets through the issuance of bo nds and capital lease obligations. The following is the outstanding balance at June 3 0, 2021, of capital assets and related debt:
Outstanding
Capital Related
Debt, net
Governmental Activities
2016 Refunding Revenue Bond, Series BC 23,861,082$
2017 Taxable Lease Revenue Refunding
Bonds, Series BG (24.4%) 11,475,320
Capital Lease Obligations 1,220,449
Total 36,556,851$
Business-Type Activities
Water Enterprise Fund:
2017 Refunding Revenue Binds, Series BE 35,227,824$
2017 Taxable Refunding Revenue Bonds, Series BF 48,100,000 Subtotal 83,327,824
Sewer Enterprise Fund:
2016 Revenue Refunding Bonds, Series BB 8,408,370
2016 Taxable Revenue Refunding Bonds, Series BD 2,801,333 2018 Taxable Revenue Refunding Bonds, Series BH 12,740,000 Subtotal 23,949,703
Total 107,277,527$
95 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 11: Compensated Absences
The City’s policies relating to compensated absences are described in Note 1. The liability will be paid in future years by the General Fund. In the business-type activities, the liability for vested and unpaid compensated absences (accrued, vacation, sick pay, executive leave, and comp time) is reported in the fund as the benefits are earned and vest. For the business-type activities, the liabilities will be liquidated in future years from the respective enterprise funds.
Balance Balance Due in
June 30, 2020 Additions Deletions June 30, 2021 One Year Compensated Absences
Governmental activities 7,877,001$ 5,322,294$ 4,785,764$ 8,413,531$ 5,228,000$ Business-type activities 1,593,789 1,119,106 1,052,649 1,660,246 1,119,000 9,470,790$ 6,441,400$ 5,838,413$ 10,073,777$ 6,347,000$
Note 12: Non-City Obligations
The following bond issues are not reflected as City long-term debt because these debts are solely payable from and secured by specific revenue sources des cribed in the official statements of the respective issues. Neither the faith and cred it nor the taxing power of the City, the Successor Agency, the State of California, or any pol itical subdivision thereof, is pledged for payment of these bonds. Accordingly, since this deb t does not constitute an obligation of the City, it is not reflected as long-term debt i n the accompanying basic financial statements. The City is acting only as an agent.
Mortgage Revenue Bonds
Single family and multifamily housing revenue bonds were issued to provide construction and permanents financing to developers of multifamily residential projects located in the City to be partially occupied by persons of low and moderate income. These bonds are secured by first trust deeds and private mortgag e insurance. The bonds, together with interest thereon, are payable solely from home mortgage and developer loans secured b y first deeds of trust, irrevocable letters of credit and irrevocable surety bonds. The mortgage revenue bonds outstanding at June 30, 2021, is as follows:
Balance as of
June 30, 2021
9,909,000$
5,135,000
Total 15,044,000 $
Mortgage Revenue Bonds
Single Family Mortgage Refunding Bonds 90A
Single Family Mortgage Refunding Bonds 90B
96 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan
Governmental
Activities
Business-Type
Activities Total
Deferred Outflows of Resources:
Pension contribuition made after measurement date:
Miscellaneous 61,585,732$ 22,616,800$ 84,202,532$ Safety 143,493,881 - 143, 493,881 Difference between expected and actual experience:
Safety 2,579,922 - 2,579,922 Net difference in projected and actual earnings on
pension plan investments:
Miscellaneous 1,364,588 501,133 1,865,721 Safety 2,274,509 - 2,274,509 Collateral Plan 13,081 - 13,081 Total deferred outflows of resources 211,311,713$ 23,117,933$ 234,429,646$ Net Pension Liabilities:
Miscellaneous 58,944,413$ 21,646,800$ 80,591,213$ Safety 136,701,437 - 136, 701,437 Collateral Plan 737,992 - 737,992 Total net pension liabilities: 196,383,842$ 21,646,800$ 218,030,642$ Deferred Inflows of Resources:
Difference between expected and actual experience:
Miscellaneous 602,314$ 221,195$ 823,509$ Collateral Plan 66,942 - 66,942 Total deferred inflows of resources 669,256$ 221,195$ 890,451$ Pension Expense (Credit):
Miscellaneous (55,076,396)$ (19,123,303)$ (74,199,699)$ Safety (125,737,930) - (125, 737,930) Collateral Plan (165,825) - (165,825) Total pension expense (180,980,151)$ (19,123,303)$ (200,103,454)$
97 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
a. CalPERS Plans
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), and agent multiple-employer public employee defined benefit pension plan. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requi rements are established by state statue and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding , but not accounting purposes), and membership information are listed in the annual actuarial valuation report.
This report and CalPERS’ audited financial statements are publi cly available reports that can be obtained at CalPERS’ website under Forms and Publications.
Benefit Provided
CalPERS provides retirement and disability benefits, annual cos t-of-living adjustments, and death benefits to plan members and beneficiaries.
The plans’ provisions and benef its in effect for the measuremen t period ended June 30, 2020 are summarized as follows:
Tier 1* Tier 2* PEPRA
Prior to August 14, 2011
On or After
August 14, 2011 to
January 1, 2013
On or after
January 2, 2013
2.0% @ 55 2.0% @ 60 2.0% @ 62
5 years serv ice 5 years serv ice 5 years serv ice
Monthly for Life Monthly for Life Monthly for Life
Minimum 50 years Minimum 50 years Minimum 52 years
1.426% - 2.418%,
50 - 63+ years,
respectively
1.092% - 2.418%,
50 - 63+ years,
respectively
1.000% - 2.5000%,
52 - 67+ years,
respectively
rates 7.000% 7.000% 6.250%
rates 8.226% 8.226% 8.226%
*Plan is closed to new entrants
Benefit vesting schedule
Benefit formula
Hire Date
Miscellaneous Plan
Benefit payments
Monthly benfits, as a % of
eligible compensation
Required employee contribution
Required employer contribution
Retirement age
98 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Tier 1* Tier 2* PEPRA
Prior to
November 21, 2010
On or After
November 21, 2010 to
January 1, 2013
On or after
January 1, 2013
3.0% @ 50 3.0% @ 55 2.7% @ 57
5 years serv ice 5 years serv ice 5 years serv ice
Monthly for Life Monthly for Life Monthly for Life
Minimum 50 years Minimum 50 years Minimum 52 years
3.000%, 50+ years
2.400% - 3.000%,
50 - 55 years,
respectively
2.000% - 2.700%,
50 - 57+ years,
respectively
rates 9.000% 9.000% 12.000%
rates 22.695% 22.695% 22.695%
*Plan is closed to new entrants
Benefit vesting schedule
Benefit formula
Hire Date
Safety Plan
Benefit payments
Monthly benfits, as a % of
eligible compensation
Required employee contribution
Required employer contribution
Retirement age
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requ irement. The standard non-industrial disability retirement benefits are a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered.
An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee’s surv ivor who is eligible for any ot her pre-retirement death benefit may choose to receive t hat death benefit instead of thi s basic death benefit. The basic death benefit is a lump sum in the amount of the employee ’s accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one-month salary for each completed year of cu rrent service, up to a maximum of six months’ salary. For purpose of this benefit, one month’s salary is defined as the member’s average monthly full-time rate of compensation during the 12 months preceding death.
Upon the death of a retiree, a one-time lump sum payment of $50 0 will be made to the retiree’s designated survivor(s), or to the retiree’s estate.
Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.
99 Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2019, the valuation date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Active members 352 150
Transferred members 329 30
Terminated Members 193 19
Retired members and beneficiaries 944 394
Total 1818 593
Plans
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPE RS’ annual actuarial valuation process. The actuarially determined rate is the estim ated amount necessary to finance the costs of benefits earne d by employees during the ye ar, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2020, the total pensi on liability was determined by rolling forward the June 30, 2019 total pension l iability. The June 30, 2020 total pension liabilities were based on the following actuarial methods and assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 7.15% (net of administrative expenses)
Inflation 2.50%
Projected Salary Increases Varies by Entry Age and Service Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit
Increase
Contract COLA up to 2.0% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS-sp ecific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERSdemographic data from 1997 to 2015) that can be found on the CalPERS websit e.
100
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded sing le equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:
Asset Class (1)
Assum e d Asse t
Allocation
Real Return
Years 1 - 10 (2)
Real Return
Years 11+ (3)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(1) In the System's CAFR, Fixed Income is included in Global Debt S ecurities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period.
101
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contributi on rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary ne t position was projected to be available to make all projected future benefit payments o f current plan members.
Therefore, the long-term expected rate of return on plan invest ments was applied to all periods of projected benefit payments to determine the total pension liability.
Changes in the Net Position Liability
The following tables show the changes in net pension liability recognized over the measurement period.
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability
(c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) 303,270,778$ 225,653,938$ 77,616,840$ Changes Recognized from the Measurement Period
Service Cost 3,689,145 - 3,689,145 Interest on the Total Pension Liability 21,100,019 - 21,100,019 Changes of Benefit Terms - - - Difference between Expected and Actual Experience (1,647,018) - (1,647,018) Changes of Assumptions - - - Contribution from the Employer - 7, 644,926 (7,644,926) Contribution from Employees - 1, 868,202 (1,868,202) Net Investnent Income - 10,972,762 (10,972,762) Benefit Payments including Refunds of Employee -
Contributions (16,726,361) (16,726,361) -
Plan to Plan Resource Movement - - - Administrative Expense - (318,117) 318,117 Other Miscellaneous Income (Expense) - - - Net Change during July 1, 2019 to June 30, 2020 6,415,785 3,441,412 2,974,373 Balance at June 30, 2020 (Measurement Date) 309,686,563$ 229,095,350$ 80,591,213$ Miscellaneous Plan
Increase (Decrease)
102
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability
(c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) 390,829,552$ 261,885,117$ 128,944,435$ Changes Recognized from the Measurement Period
Service Cost 5,538,692 - 5,538,692 Interest on the Total Pension Liability 27,404,181 - 27,404,181 Changes of Benefit Terms - - - Difference between Expected and Actual Experience 1,100,494 - 1,100,494 Changes of Assumptions - - - Contribution from the Employer - 12,010,910 (12,010,910) Contribution from Employees - 1,935,321 (1,935,321) Net Investvent Income - 12,709,328 (12,709,328) Benefit Payments including Refunds of Employee -
Contributions (22,848,264) (22,848,264) -
Plan to Plan Resource Movement - - - Administrative Expense - (369,194) 369,194 Other Miscellaneous Income (Expense) - - - Net Change during July 1, 2019 to June 30, 2020 11,195,103 3,438,101 7,757,002 Balance at June 30, 2020 (Measurement Date) 402,024,655$ 265,323,218$ 136,701,437$ Safety Plan
Increase (Decrease)
Changes in the Net Pension Liability
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plans a s of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percen tage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:
Discount Rate
-1% (6.15%)
Current
Discount Rate
(7.15%)
Discount Rate
+1% (8.15%)
Miscellaneous Plan 119,477,586$ 80,591,213$ 48,367,499$ Safety Plan 188,288,792$ 136,701,437$ 94,187,333$
Plan's Net Pension Liability
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.
103
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Pension Expense and Deferred Outflows and De ferred Inflows of Resources Related to Pensions
For the measurement period ending June 30, 2020, the City incur red a pension expense of $9,888,743 and $17,870,844 for Miscellaneous and Safety plans, respectively.
As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows
of resources
Deferred inflows
of Resources
Deferred outflows
of resources
Deferred inflows
of Resources
84,202,532$ -$ 143,493,881$ -$ - (823,509) - - - - 2,579,922 - 1,865,721 - 2,274,509 - Total 86,068,253$ (823,509)$ 148,348,312$ -$ Net difference between projected and actual earnings
on pension plan investments
Pension contribution after measurement date
Changes of assumptions
Differences between expected and actual experiences
Safety PlanMiscellaneous Plan
The amounts above are net of outflows recognized in the 2019-20 measurement period expense.
The expected average remaining service lifetime (“EARSL”) is ca lculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and safety plan for the 2019-20 measurement period in 2.0 and 2.9 years, which was obtained by dividing the total service years of 3,671 and 1,707 (the sum of remaining service lifetimes of the active employees) by 1,815 and 593 (the total number of participants: active, ina ctive, and retired), respectively.
The $84,202,532 and $143,493,881 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2021 will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as def erred outflows and deferred inflows of resources r elated to pensions will be recog nized in future pension expense as follows:
Year Ending
June 30, Miscellaneous Safety
2022 (1,767,445)$ 1,181,968 $
2023 641,846 1,127,139
2024 1,198,102 1,410,794
Thereafter 969,709 1,134,530
Total 1,042,212$ 4,854,431$
Deferred of Outflows/(Inflows) of
Resources
104
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
b. Collateral Benefits Plan
General Information about the Pension Plan
Plan Description
The Collateral Benefits Plan provides a supplemental retirement benefit to City employees upon resigning from the City and concurrently retiring with CalPERS. The supplemental benefit is a monthly benefit of $100 from the first of the month following retirement from the City until the age of 65 on Tier 1 and Tier 2 employees. Tier 1 e m p l o y e e s i n c l u d e Mid-Management and Confidential, Police Officers’ Association, City Employees’ Association, and Management Group B employees, and are required to have at least 20 years of City service upon retiring after July 1, 1987. Tier 2 employees include Executive Management Group A employees and are required to have at least one year of City service upon retiring after July 1, 1991. Employees hired after July 1, 2012, are not eligible for this plan.
Eligibility
City Service
20 Years
1 Year
Not Eligible
Bargaining Group
Executive Management Group B, Mid-Management/Confidential Officers' Association
Employees' Association, City Employees' Association, Police Executive Management Group A
Police Management
Benefit Provided
As discussed in the plan description and eligibility above, the Plan provides a monthly benefit of $100 until the age of 65 for the eligible retirees.
Employees Covered by Benefit Terms
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms:
Active employees 267
Terminated employees 0
Retired employees and beneficiaries 88
355
Contributions
There was no contribution to the Plan during the fiscal year ended June 30, 2021.
105
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Net Pension Liability
Actuarial Methods and Assumptions Used to Determined Total Pension Liability
The June 30, 2021 valuation was used to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions:
Level Percent or Level Dollar
Closed, Open, or Layered Periods
Amortization Period at June 30, 2021
Discount Rate 6.50%
Inflation N/A
Pre-Retirement: Consistent with the Non- Industrial rate used to value the Miscellaneous Public Agency CalPERS Pension Plans.
Level Dollar
Closed
4.5 years
Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Plan Agency CalPERS Pension.
6.50% Net of Pension Plan Investment and Administrative Expenses, Includes inflation
Not applicable
Not applicable
Entry Age Normal Actuarial Cost Method
Actuarial Assumption
Salary Increases
Cost of Living
Investment Rate of Return
Amortization Methods:
Amortization Growth 0.00%
Post Retirement Benefit Increase
Mortality Rate
Consistant with the Non- Industrial rates used to value the Miscellaneous Public Agency CalPERS Pension Plans.
Change of Assumption
The amortization period was reduced from 7.5 years to 4.5 years for fiscal year ended June 30, 2021.
Discount Rate
The discount rate used to measure the total pension liability w as 6.50 percent. The long-term expected rate of return is determined by adding expec ted inflation to expected long-term real returns and reflecting expected volatility and correlation. The plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return.
Long-Term Expected Rate of Return
The assumption for the long-term expected rate of return was selected by the City. Below is a projection of the 30-year average return derived by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation on the Plan’s current asset allocation.
106
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
The table below reflects long-term expected real return adjuste d for inflation by asset classes:
Index Target Allocation
Long-Term
Expected
Arithmetic Real
Rate of Return
Long-Term
Expected
Geometric Real
Rate of Return
US Cash BAML 3-Mon Tbill 2.92% -0.32% -0.32%
Barclays Aggergate 45.46% 1.37% 1.26%
Russell 3000 38.64% 5.33% 3.70%
MSCI EAFE NR 6.72% 6.27% 4.52%
MSCI EM NR 4.53% 8.64% 4.95%
US EREITs FTSE NAREIT Equity REIT 1.73% 5.75% 3.57%
100.00%
2.30% 2.30%
1.16% 1.16%
3.58% 3.11%
5.88% 5.48%
9.20%
6.50%
Assumed Inflation - Mean
Asset Class
US Core Fixed Income
US Equity Market
Foreign Developed Equity
Emerging Markets Equity
Assumed Inflation - Standard Deviation
Portfolio Real Mean Return
Portfolio Nominal Mean Return
Portfolio Standard Deviation
Long-Term Expected Rate of Return
Changes in Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability
(c) = (a) - (b)
Balance at June 30, 2020 (Measurement Date) 863,142$ 231,766$ 631,376$ Changes Recognized from the Measurement Period
Service Cost 8,023 - 8,023 Interest on the Total Pension Liability 52,950 - 52,950 Difference between Expected and Actual Experience 76,786 - 76,786 Net Investmebt Income - 32,324 (32,324) Benefit Payments including Refunds of Employee
Contributions (114,900) (114,900) - Administrative Expense - (1,181) 1,181 Net Change during July 1, 2020 to June 30, 2021 22,859 (83,757) 106,616 Balance at June 30, 2021 (Measurement Date) 886,001$ 148,009$ 737,992$ Collateral Benefit Plan
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.50%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percen tage-point lower (5.50%) or 1 percentage-point higher (7.50%) then the current rate:
Discount Rate
-1% (5.50%)
Current Discount
Rate (6.50%)
Discount Rate
+1% (7.50%)
791,562$ 737,992 $ 688,724 $
Plan's Net Pension Liability
107
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 13: Defined Benefit Pension Plan (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available upon request.
Pension Expense and Deferred Outflows and De ferred Inflows of Resources Related to Pension
For measurement period ended June 30, 2021, the City incurred a pension expense of $165,825.
As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred
outflows of
Resources
Deferred
inflows of
Resources
-$ (66,942)$
13,081 -
Total 13,081$ (66,942)$
Collateral Benefits Plan
Differences between expected and actual
experience
Net difference between projected and
actual earnings
The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.
Amounts reported as deferred ou tflows and deferred inflows of r esources related to pensions will be recognized in the future pension expense as follows:
Year Ending
June 30,
Deferred
Outflows/(Inflows)
of Resources
2022 (7,300) $
2023 (6,957)
2024 (6,390)
2025 (5,648)
2026 (9,844)
Thereafter (17,722)
Total (53,861)$
108
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (OPEB)
At June 30, 2021, Total OPEB liabilities, related deferred outf lows of resources and OPEB expense are as follow:
Governmental
Activities
Business-Type
Activities Total
Deferred Outflows of Resources:
OPEB contribution made after measurement date 1,575,591$ 526,795 $ 2,102,386 $ Changes in assumption 9,831,321 2,400,040 12,231,361 Total deferred outflows of resources 11,406,912 $ 2,926,835 $ 14,333,747 $ Total OPEB Liabilities : 86,368,040 $ 22,160,692 $ 108,528,732 $ Deferred Inflows of Resources:
Difference between expected and actual experience 1,205,631$ 309,348 $ 1,514,979 $ Total deferred inflows of resources 1,205,631 $ 309,348 $ 1,514,979 $ OPEB Expense(Revenue): (314,376) $ 1,272,380 $ 958,004 $
a. General Information About Public Employees’ Medical and Hosp ital Care Program (“PEMHCA”) Plan (“OPEB”)
The City has participated in the CalPERS Health Plan since 1988 , a single-employer defined benefit pension plan. The City provides eligible retirees a contribution based on the “unequal method” under the Public Employees’ Medical and Hospital Care Program (PEMHCA) contribution requirements for participating employers. Under the “unequal method,” the City’s contribution for the retiree is equal to 10 0% of the active contribution after 20 years of participation in PEMHCA. Eligibility for cont inuing medical coverage requires retirement from the City (on or after age 50 with at l east 5 years of CalPERS service) and commencement of the CalPERS pension benefit. Retirement under disability does not have an age requirement.
Employees of the City who retire through CalPERS, their spouses, and eligible dependents, may receive health plan coverage through PEMCHA Pla n (the “Plan”). The Plan is a single employer defined benefit plan which provides t he retirees a monthly medical contribution that is not to exceed the cost of the plan selected, with the maximum contribution limited for individual retirees based on bargaining groups as listed below:
Benefit
Pomona City Council Members 700 $
Pomona Executive Management Group 700
Pomona Mid-Management/Confidential Employees' Association 700 Pomona City Employees' Association 700
Pomona Police Managers' Association 700
Pomona Police Officers' Association 700
Firefighters (Pre-Merger with Los Angeles County Fire District) 465 Bargaining Group
109
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (OPEB) (Continued)
Police Management retirees with at least 22 years of service as a Police Officer, receive up to 90% contribution towards more expensive 2-party CalPERS p lan premium. This benefit terminates once the retiree is eligible for Medicare (a ge 65). This provision has been eliminated for employees hired or promoted to the unit after July 1, 2011.
Eligibility
Membership in the Plan consisted of the following December 31, 2019, the date of the latest actuarial valuation:
Active Employees 513
Inactive plan members entitled to but not yet receiving benefits- Inactive plan members or beneficiaries currently receiving benefits 583 1,096
Contributions
The City currently finances benefits on a pay-as-you-go basis.
b. Net OPEB Liability
Total OPEB Liability
The City’s net OPEB liability was measured as of December 31, 2 020 and total OPEB liability used to calculate the net OPEB liability was determin ed by an actuarial valuation as of December 31, 2019. The total OPEB liability at December 31, 2020, measurement date was $108,528,732.
110
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (OPEB) (Continued)
Actuarial Assumptions
The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods inc luded in the measurement, unless otherwise specified:
Discount Rate
Inflation
Entry Age Normal Actuarial Cost Method
Actuarial Assumption:
Salary Increases
Cost of Living
2.75% per annum
2.50% as of December 31, 2020
3.0% per annum, in aggregate
Participant Rate
Medical Trend Rates 6.0% (HMO) and 6.5% (PPO) is ultimate 5% in 2023 and beyond.
N/A- As of the v aluation date there are no GASB eligible plan assets.
Not Applicable
Investment Rate of Return
Spouse Coverage
Pre-retirement Turnover/ Mortality Rate/
Disability Rate/ Retirement Age
50% of future retirees (65% for Safety) are assumed to elect coverage for the spouse.
Male spouses are assumed to be 3 years older than the female spouses. Actual spouse age is used for current retirees.
Pre-Retirement: Consistent with the most recent CalPERS pension plan valuation.
Post-Retirement: Consistent with the most recent CalPERS pension plan valuation. 90% of future retirees are assumed to elect medical coverage at retirementthrough the CalPERS Health Plan and to continue coverage through the CalPERS Health Plan beyond Medicare eligabilityage. Actual coverage is used for current retirees.
For current retirees under age 65 and currently waiving coverage, 10% are assumed to elect coverage at age 65.
Change of Assumption
In 2020, the accounting discount rate changes from 2.70% to 2.50% from the measurement date December 31, 2019 to the measurement date December 31, 2020.
Discount Rate
2.50% per annum. This discount rate is the average, rounded to 5 basis points of the range of 3–20-year municipal bond rate indices: S&P Municipal Bond 20 Year High Grade Rate Index, Bond Byer 20-Bond GO index, Fidelity GO AA 20 Year Bond Index. 111
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (OPEB) (Continued)
c. Change in the N et OPEB Liability
The following table shows the changes in the net OPEB liability recognized over the measurement period:
Total OPEB
Liability (a)
Plan Fiduciary
Net Position (b)
Total OPEB
Liability
(c) = (a) - (b)
Balance at January 1, 2020 100,986,079$ -$ 100,986,079$ Changes Recognized from the Measurement Period
Service Cost 2,438,598 - 2,438,598 Interest on the Total Pension Liability 2,693,897 - 2,693,897 Changes of Benefit Terms - - - Difference between Expected and Actual Experience - - - Changes of Assumptions 7,273,004 - 7,273,004 Contribution from the Employer - 4,862,846 (4,862,846) Contribution from Employees - - - Net Inv estment Income - - - Benefit Payments including Refunds of Employee -
Contributions (4,862,846) (4,862,846) - Plan to Plan Resource Movement - - - Administrative Expense - - - Net Change during January 1, 2020 to December 31, 2020 7,542,653 - 7,542,653 Balance at December 31, 2020 (Measurement Date) 108,528,732$ -$ 108,528,732$ OPEB
Increas e (Decreas e)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.80 percent) or 1-percentage-point higher (4.80 percent) than the current discount rate:
Discount Rate
-1% (1.50%)
Current Discount
Rate (2.50%)
Discount Rate
+1% (3.50%)
121,792,140$ 108,528,732 $ 96,727,386 $
Plan's Net OPEB Liability/ (Asset)
112
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 14: Other Post-Employment Benefits (OPEB) (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.00% – HMO or 5.50% - PPO decreasing to 4.00%) or 1-percentage-point higher (7.00% - HMO or 7.50% - PPO decreasin g to 6.00%) than the current healthcare cost trend rates:
-1% (5.00%
HMO/ 5.50%
PPO decreasing
to 4.00% HMO/
4.00% PPO)
Current
Healthcare Cost
Trend Rates
(6.00% HMO/
6.50% PPO
decreasing to
5.00% HMO/
5.00% PPO)
+1% (7.00%
HMO/ 7.50%
PPO decreasing
to 6.00% HMO/
6.00% PPO)
101,133,782$ 108,528,732 $ 117,114,623 $
Plan's Net OPEB Liability/ (Asset)
d. OPEB Expense and Deferred Outflows of Resources Related to O PEB
For the fiscal year ended June 30, 2021, the City recognized OP EB expenses in the amount of $958,004. At June 30, 2021, the City reported deferre d outflows of resources related to OPEB from the following sources:
Deferred outflows
of resources
Deferred inflows
of Resources
2,102,386$ - $
- 1,514,980
12,231,361 -
Total 14,333,747 $ 1,514,980 $
Pension contribution after measurement date
Differences between expected and actual experience
Changes of assumptions
The amounts above are net of outflows recognized in the 2020 me asurement period expense.
The $2,102,386 reported as deferred outflows of resources related to OPEB resulting from the City’s contributions subsequent to the measurement date dur ing the year ended June 30, 2021 will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized in future OPEB expense as follows:
Year Ending
June 30,
Deferred
Outflows/(Inflows)
of Resources
2022 2,755,744$
2023 2,755,744
2024 2,755,744
2025 1,910,410
2026 538,739
Thereafter -
Total 10,716,381$
113
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements
a. Alameda Corridor-East Construction Authority
The City approved and adopted a Joint Exercise of Powers Agreement in November 2012.
The Alameda Corridor East Construction Authority (ACE) is a single purpose construction authority created by the San Gabriel Council of Governments in 1998 to mitigate the impacts of significant increases in rail traffic over 70 miles of mainline railroad in the San Gabriel Valley. The ACE Project consists of multiple construction projects to improve safety at various rail crossings as well as at various grade se parations in the San Gabriel Valley. There were no payments made during the year ended June 30, 2021.
b. California State Association of Countries Excess Insurance Authority
The City became a member of California State Association of Countries Excess Insurance Authority (the “CSAC-EIA”) in July 2008. The CSAC-EIA is a risk sharing pool of California public agencies dedicated to controlling losses and providing effective risk management solutions. Membership is currently comprised of various member counties and various public entity organizations. The governing board consists of one representative from each member county and seven members elected by the public entity me mbership. Also see Note 15.
c. Foothill Air Support Team
The City joined Foothill Air Support Team (“FAST”) in January 2011. FAST was developed in 1999 creating a joint helicopter patrol operation that could enhance member agencies ability to deter criminal activity and apprehend offenders. The governing board consists of one representative from each of the seven member agencies. Ther e were no payments made during the year ended June 30, 2021.
d. Foothill Transit
The City is a member of the Foothill Transit Joint Power Agreement. The JPA is comprised of 20 cities and the County of Los Angeles. The purpose of the authority is to provide a more efficient and cost-effective local transportation service for the area. Each member city has one representative, and three members are appointed by the Board of Supervisors.
There were no payments made during the year ended June 30, 2021.
114
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements (Continued)
Below are the most currently available condensed audited financial statements of the JPA as of June 30, 2021. Separate financial statements of Foothill Transit are available from its offices located in West Covina, California.
Assets 377,243,275$
Liabilities 96,254,439
Net Position 280,988,836$
Revenues 4,585,570$
Expenses 136,286,087
Operating Income (131,700,517)
Non-Operating Revenue (expenses) 100,196,493
Net Income (31,504,024)
Capital Contributions 47,354,596
Net Position - July 1, 2020 265,138,264
Net Position - June 30, 2021 280,988,836$
e. Gold Line Phase II C onstruction Authority
The City participates in the Gold Line Phase II Construction Au thority (“GLCA”) joint venture, which became effectiv e September 3, 2003. The GLCA ove rsees the planning, funding, designing and construction contracts for the completio n of the Los Angeles- Pasadena Metro Blue Line light rail project. The GLCA’s governing Board is comprised of an appointed representative from each of the affected cities an d agencies, including the cities of Azusa, Claremont, Duarte, Glendora, Arcadia, La Verne , Ontario, Montclair, Irwindale, Pomona, San Dimas, Monrovia, Pasadena, and South Pas adena, and the San Bernardino County Transportation Authority. Los Angeles Cou nty Metropolitan Transportation Agency (“LACMTA”) will have the responsibility to operate and maintain the rail after its completion. Member agencies will be paid for attending meetings, not to exceed $1,800 per year, per member agency, plus direct expenses. Membe r agencies are not allowed to withdraw from the GLCA, and each member agency is required to pay $31,445 in initial dues (first payments were due October 1, 2003) and each member will be held liable for its share of operating costs.
The City had no payments for the joint venture during the year ended June 30, 2021. Assets are divided based on the proportionate equity share at the time the joint venture dissolves, which is currently not significant to the City.
f. Interagency Comm unication Interoperability System
The City participates in the Interagency Communications Interop erability System (“ICIS”) joint powers authority which became effective September 2003. T he intent of ICIS is to provide public safety agencies with a formalized governance structure through which the participants may share resources to construct and manage a syst em for wide-area communications interoperability. The governing board is comprised of one member from each of the seven member agencies. The City paid $50,000 in ann ual dues for the fiscal year ending June 30, 2021.
115
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements (Continued)
g. Los Angeles County Disaster Management Area D
The City has participated in the Disaster Management Area D joi nt powers agreement (Area D JPA) since 1958. The Area D JPA is intended to promote the coordination of disaster management, training, and preparedness of the Area D m ember cities under the direction of the Disaster Management Area Board, the governing board includes on representative from each of the 23 member cities. Annual dues at the rate of $0.05 per capita are paid and totaled $7,765 for the fiscal year ending June 30, 2021.
h. Los Angeles Interagency Metropolitan Police Apprehensive Cri me Task Force
The City joined the Los Angeles Interagency Metropolitan Police Apprehensive Crime Task Force (“LA Impact”) in March 2011. It is a compilation of numerous federal, state, and local law enforcement agencies in Los Angeles County, whose primary purpose is to investigate major crimes, with an emphasis on dismantling mid-to-major level drug trafficking organizations. Since its inception, LA Impact has grown to 80 o fficers from 35 different Los Angeles County law enforcement agencies. The City is solely responsible for the salary and benefits of one (1) Police Sergeant position, currently assigned to this program, which is fully funded within the Police Department’s General Fund bud get. There were no payments made during the year ended June 30, 2021.
i. Pomona Valley Transportation Authority
The City is a member of the Pomona Valley Transportation Author ity (the “PVTA”). The PVTA is comprised of four cities and is organized under a Joint Power Agreement pursuant to the California Government Code. The purpose of the PVTA is t o study, implement and provide for public transportation that will best serve transit- dependent persons, including handicapped and senior adults residing in the Pomona Valley.
Each member City has two representatives on the Board of Directors. Officers of the PVTA are elected annually by the Board of Directors.
The City does not have an equity interest in the PVTA. However, the City does have an ongoing financial interest. Because the City also has an ongoing financial responsibility for continued funding of the PVTA, the City is able to influence op erations. As a result, the PVTA uses its resources on behalf of the City.
116
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements (Continued)
The following are the most currently available condensed audite d financial statements of the PVTA as of June 30, 2021. Separate financial statements of the PVTA are available from its offices located in La Verne, California.
Assets 5,200,755$
Liabilities 2,318,881$
Contributed capital 607,549
Net position 2,274,325
Total liabilities and fund equity 5,200,755$
Operating revenues 50,761$
Operating expenses 3,715,897
Operating (Income) (3,665,136)
Non-Operating Revenue 4,119,828
Net Income 454,692
Net Position - July 1, 2020 2,069,630
Net Position - June 30, 2021 2,524,322$
j. Pomona-Walnut-Rowland Joint Water Line Commission
The City participates in the Pomona-Walnut-Rowland Joint Water Line Commission (the “Commission”) joint venture, which provides for the acquis ition, construction, maintenance, repair, and operation of a water transmission pipe line for the benefit of the member agencies. The Pomona-Walnut-Rowland Joint Water Line Commission’s governing board is comprised of an appointed representative fro m each of the three member agencies – the City, Walnut Valley Water District, and Rowland Water District.
The cost of providing water to the member agencies is financed through user charges. The Commission purchases water for resale to the member agencies at a price sufficient to provide reserve funds for emergencies. In addition, the member agencies are billed for the costs of maintenance and operation of the pipeline. The City paid the joint venture $5,604,530 during the year ended June 30, 2021. Assets are divi ded based on the proportionate equity share at the time the joint venture dissol ves. The City’s share in the equity of the Commission at June 30, 2021, was $622,569.
As of June 30, 2021, the three participants had the following approximate ownership equity interest.
Percentages
Agreement
Balances
City of Pomona 20% 622,569$
Walnut Valley Water District 35% 1,089,496
Rowland Water District 23% 715,954
Unallocated 22% 684,826
Total 100% 3,112,845$
Member
117
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements (Continued)
The Commission’s condensed financial statements for the fiscal year ended June 30, 2021 is as follows:
Total Assets 7,184,011$
Total Liabilities 4,071,166
Net Position 3,112,845$
The Commission does not recognize income or loss. Net operating expenditures in excess of users’ assessments are treated as accounts receivable on the Commission’s books and charged to each user’s account in the following year. Conversel y, user’s assessments in excess of net operating expenditures are treated as a liability and credited against each user’s account, also in the following year. Under the basis, op erating expenses for the Commission totaled $18,362,831 compared to total operating revenues of $18,368,856 for the year ended June 30, 2021. Complete financial statements can be obtained from the Pomona-Walnut-Rowland Joint Water Line Commission, P.O. Box 8460, Rowland Heights, CA 91748.
k. San Gabriel Valley Council of Governments
The City is a member of the San Gabriel Valley Council of Gover nments (the “Council”) which became effective March 1994. The Council provides member agencies a vehicle to voluntarily engage in regional and cooperative planning and coo rdination of government services and responsibilities to assist member agencies in the conduct of their affairs. The goal and intent of the Council is one of voluntary cooperation among members for the collective benefit of cities and unincorporated areas in the Sa n Gabriel Valley. The governing board is comprised of one member from each of 31 memb er cities and the San Gabriel Valley Water Districts, except the County of Los Angeles. The County has three members who represent the unincorporated communities of S upervisor Districts 1, 4, and 5. All member agencies pay dues. The City paid $36,167 i n annual dues for the fiscal year ending June 30, 2021.
l. Tri-City Mental Health Center
The City is a member of the Tri City Mental Health Center (the “Center”). The Center is a jointly governed organization comprised of three cities and is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of the Center is to develop mental health services and facilities to s erve persons residing in the three member cities. The City’s contribution to the Center was $43,675 for the year ended June 30, 2021.
The Board of Directors is comprised of seven members, two counc ilmembers from Pomona, one councilmember each from the cities of Claremont and La Verne, and one non-elected member from each of the three cities.
118
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 15: Joint Powers Agreements (Continued)
Below are the most currently available condensed audited financ ial statements of the Center as of June 30, 2021. Separate financial statements of the Center are available from its offices located in Pomona, California.
Assets 51,382,792$
Deferred outflows of resources 2,893,978
Liabilities 16,161,686
Deferred inflows of resources 8,458,967
Net position 29,656,117$
Revenues 11,089,392$
Expenses 26,582,445
Operating Income (15,493,053)
Non-Operating Revenue (expenses) 18,623,925
Net Income 3,130,872
Net Position - July 1, 2020 26,525,245
Net Position - June 30, 2021 29,656,117$
Note 16: Risk Management
The Self-Insurance Internal Service Fund is part of the City’s self-insurance program for general liability, workers’ compensation, and unemployment insurance. T he City is a member of the California State Association of Counties Excess Insurance Autho rity (CSAC-EIA). Through CSAC-EIA, the City has a program limit of $25 million dollars w ith a self-insured retention of $1 million for its excess liability program and its worker’s compensation program. Additionally, the City purchases catastrophic excess liability coverage that provides an additional $25 million in coverage.
CSAC-EIA is a governmental joint powers authority created by certain California counties and cities to provide a pooled approach to the members’ liability and excess workers’ compensation coverage as allowed under the California Government Code. The a uthority manages various types of pooled coverage programs for participating members.
As of June 30, 2021, estimated claims payable amounted to $31,106,168.
The estimated claims payable is reported at June 30, 2021 if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. 119
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 16: Risk Management (Continued)
During the past three fiscal years, the City did not experience settlements or judgments that exceeded pooled coverage. There are no pending claims and judgements likely to have a material adverse effect on the fiscal position due within one y ear of June 30, 2021. The following is a summary of changes in claims liabilities over the past three fiscal years:
Beginning
Balance
Expenses and
Changes in
Estimates
Claims
Payments
Ending
Balance
June 30, 2019 14,497,118$ 4,242,404 $ (5,549,479) $ 13,190,043 $ June 30, 2020 13,190,043 6,309,970 (3,965,234) 15,534,779 June 30, 2021 15,534,779 20,786,191 (5,214,802) 31,106,168
Note 17: Comments and Contingencies
a. Agency Participation Agreement
On April 5, 2004, the City entered into a reclaimed water agreement with the Los Angeles County Sanitation District (LACSD). The agreement is for 20 yea rs, beginning on July 1, 2003, and requires the City to sell its interest in the Northside Recycled Water Line, a 20” non-reinforced concrete gravity reclaimed water pipeline to the LACSD for $441,730.
Additionally, the contract provide s the City with up to 2/3 of the supply of water from the plant which can then be sold by the City to other customers. The City receives discounted rates on water during the first 12 years of the agreement.
b. Contractual Commitments
The following schedule summarizes the major capital project con tractual commitments of the City as of June 30, 2021:
Remaining
Commitments
All American Asphalt 7,851,784 $
Gentry Brothers 662,622
Absolute International 601,085
Ensafe Inc. 271,047
Willdan Engineering 390,991
Cumming Management Group, Inc. 250,097
High Line Corporation 206,480
RKA Consulting Group 201,146
Converse Consultants 174,011
NV5, Inc. 172,925
All Other Commitment 483,439
Total 11,265,627 $
Vendors
c. Lawsuits
The City is a defendant in certain other legal actions arising in normal course of operations.
As of June 30, 2021, in the opinion of City management, there w as no additional outstanding matters that would have a significant effect on the financial position of the City. 120
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency
On June 28, 2011, Governor Jerry Brown signed into law two bill s that amended California Community Redevelopment Law in order to address the state’s ongoing budget deficit. ABx1 26 (“the Bill”) dissolved all California redevelopment agencies (“RDAs”) effective October 1, 2011. This legislation prevented RDAs from engaging in new activities and outlined a process for winding down the RDAs financial affairs. It also set forth a process for distributing funds from the former RDAs to other local taxing entities. A companion bill, ABx1 27, was also passed, which allowed individual RDAs to avoid dissolution if they agreed to make substantial annual payments into a Special District Allocation Fund and Edu cational Revenue Augmentation Fund.
In response, the California Redevelopment Association, the Leag ue of California Cities, and other parties filed petitions with the California Supreme Court challenging the constitutionality of both ABx1 26 and ABx1 27. On De cember 29, 2011, the California Supreme Court upheld the constitutionality of ABX1 26, while striking down ABx1 27 as unconstitutional. The ruling in California Redevelopment Association V. Matosantos also extended some of the deadlines on February 1, 2012, with the assets and liabilities transferred to Successor Agencies and Successor Housing Agencies pursuant to ABx1 26.
The California State Legislature made additional changes to the dissolution process when Governor Jerry Brown signed AB 1484 into law on June 27, 2012. This legislation made a variety of substantive amendments to the original Dissolution Act. These actions impacted the reporting entity of the City of Pomona that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon diss olution of a redevelopment agen cy, either the City of another unit of local government would agree to serve as the “successor agency” to hold the assets until the assets were distributed to other units of state and l ocal government. On January 9, 2012, the City Council adopted resolution number 201 2-8 electing to assume the responsibility of Successor Agency for the former Pomona Redevelopment Agency.
After enactment of the law, rede velopment agencies in the State of California could not enter into new projects, obligations o r commitments. Subject to the c ontrol of an established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution. Subsequent to the dissolution, Successor Agencies are only allocated revenue up to the amount necessary to pay the estimated annual installment payments on enforceable obligation of the fo rmer redevelopment agency until all enforceable obligations have been paid in full and all assets have been liquidated.
The Bill directed the State Cont roller of the State of Californ ia to review the propriety of any transfers of assets between Redevelopment Agencies and other pu blic bodies that occurred after January 1, 2011. If the public body that received such tr ansfers was not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller was required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. The State compl eted its required audit and provided the Successor Agency its report on November 26, 2014. 121
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Management believes, in consultation with legal counsel, that t he obligations of the former Redevelopment Agency due to the City are valid enforceable obli gations payable by the Successor Agency trust under the requirements of the bill. The City’s position on the issue is not a position of settled law and there is considerable legal u ncertainty regarding this issue. It is reasonably possible 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 o f California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
a. Cash and Investments
The following is a summary of cash and investments of the Successor Agency at June 30, 2021:
Cash and inv estments 10,429,392$
Restricted cash 20,533,444
Total 30,962,836$
The Successor Agency’s cash and investments are pooled with the City’s cash and investment in order to generate optimum interest income. The sh are of the pooled cash account is separately accounted for, and investment income is allocated to all participating funds based on the relationship of average quarterly cash balan ces to the total of the pooled cash and investments. Information regarding the authorized types of deposits and investments, the type of risk (i.e., credit, interest rate, custodial, etc.) and other disclosures associated with the City’s pooled cash and investments is reported in Note 2.
b. Loans Receivable (Net)
At June 30, 2021, the Successor Agency’s net loans receivable consisted of the following:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
1,660,600$ - $ - $ 1,660,600$ Business Assistance Loans
Business Assistance Loans
The former Redevelopment Agency entered into business assistanc e loan agreements with local businesses for redevelopment purposes. The term of the loan varies, and bears interest rates ranges from 0% to 4% annum. Outstanding balance at June 30, 2021 was $1,660,000.
122
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
c. Land Held for Resale
At June 30, 2021, land held for resale in the amount of $788,13 0 is recorded at the acquisition cost in the Successor Agency Trust Fund.
d. Capital Assets
The following is a summary of changes in capital assets for the Successor Agency for the year ended June 30, 2021:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
125,423$ -$ -$ 125,423$ 125,423 - - 125,423 63,126 - - 63,126 148,995 - - 148,995 429,179 - - 429,179 8,361 - - 8,361 19,513 - - 19,513 669,174 - - 669,174 (20,200) (1,263) - (21,463) (148,995) - - ( 148,995) (429,179) - - ( 429,179) (8,361) - - (8,361) (19,513) - - (19,513) (626,248) (1,263) - (627,511) 42,926 (1,263) - 41,663 168,349$ (1,263)$ -$ 167,086$ Total capital assets, net Total capital assets, at cost
Building and building improvements
Improvements other than buildings
Machinery and equipment
Furniture and fixures
Autos a
nd trucks
Total accumulated depreciation
Total depreciable assets, net
Nondepreciable assets:
Land
Total nondepreciable assets
Depreciable assets:
Improvements other than buildings
Autos and trucks
Building and building improvements
Machinery and equipment
Furniture and fixtures
Less accumulated depreciation:
e. Long – Term Liabilities
The following is a summary of changes in long-term liabilities for the Successor Agency for the year ended June 30, 2021:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
62,943,871$ 4, 135,834$ (3,860,523) $ 63,219,182 $ - $ 119,585,000 - (7, 600,000) 111,985,000 7,830,000 182,425 - ( 182,425) - - 182,711,296$ 4,135,834$ (11,642,948)$ 175,204,182$ 7,830,000$ Total SERAF loan
County deferred tax loans
Tax allocation bonds
Advances from the Housing
123
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
County Deferred Tax Loans
At June 30, 2021, the County deferred tax loans consisted of the follow:
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
56,009,017$ 3,827,323$ (1,332,973)$ 58,503,367$ 6,934,854 308,511 (2,527,550) 4,715,815 62,943,871$ 4,135,834$ (3,860,523)$ 63,219,182$ Southwest Pomona Project Area
South Garey/Freeway Corridor
Total
Project Area
The former Redevelopment Agency entered into agreements with th e County of Los Angeles whereby a portion of the County’s share of tax incr ement revenues from the Southwest Pomona Project Area and South Garey/Freeway Corridor Project Area are loaned annually to the Successor Agency. Interest on both loans accrue at 7% per year, compounded annually. The Successor Agency will commence repayment per the terms of the Agreement.
Tax Allocation Bonds
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
315,000$ -$ (55,000)$ 260,000$ 60,000$ 5,005,000 - (305, 000) 4,700,000 320,000 114,265,000 - (7,240, 000) 107,025,000 7,450,000 Total 119,585,000$ -$ (7,600, 000)$ 111,985,000$ 7,830,000$ 1998 Tax Allocation Bonds, Series X
2018 Tax Allocation Bonds, Series BI
1998 Tax Allocation Bonds, Series Y
1998 Tax Allocation Refunding Bonds, Series X – Original Issuance $5,055,000
On October 1, 1998, the former Redevelopment Agency issued $5,055,000 in 1998.
Tax Allocation Refunding Bonds, Series X, for the Mountain Mead ows Redevelopment Project to refund $4,360,000 of the loan between the former Red evelopment Agency and the Public Financing Authority related to the Public Financing Authority’s 1993 Refunding Revenue Bonds, Series N.
Interest is payable semiannually on June 1 and December 1 at rates varying from 3.0% to
5.1% per annum. $3,595,000 of bond principal is payable in annu al installments ranging from $95,000 to $300,000 through December 1, 2013. Term bonds o f $41,000,000 and $460,000 mature on December 1, 2016 and December 1, 2024, respe ctively, and are subject to mandatory redemption from a sinking fund account in amounts ranging from $45,000 to $350,000, as outlined in the bonds’ official stateme nt. A municipal bond insurance policy has been issued that insures the payment of the principal and interest on the bonds when due. During 2007, the bonds in the amount of $790,000 were refunded by the 2006 Taxable Revenue Bonds, series AT.
124
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
The annual debt service requirements outstanding at June 30, 2021, is as follows:
Year Ending
June 30, Principal Interest Total
2022 60,000 $ 12,420 $ 72,420 $ 2023 65,000 9,045 74,045 2024 65,000 5,535 70,535 2025 70,000 1,890 71,890 Total 260,000$ 28,890 $ 288,890 $
1998 Tax Allocation Refunding Bonds, Series Y – Original Issuance $8,980,000
On October 1, 1998, the former Redevelopment Agency issued $8,9 80,000 in 1998 Tax Allocation Refunding Bonds, Series Y, for the West Holt Ave nue Redevelopment Project to refund $7,130,000 of the loan between the former Red evelopment Agency and Public Financing Authority related to the Public Financing Authority’s 1993 Refunding Revenue Bonds, Series N, and to finance certain redevelopment a ctivities within the West Holt Avenue Project Area.
Interest on the bonds is payable semiannually on November 1 and May 1 at rates varying from 3.0% to 5.0% per annum. $1,770,000 of bond principal is payable in annual installments ranging from $115,000 to $180,000 through May 1, 2011. Terms bonds of $390,000, $2,360,000, and $4,380,000 mature on May 1, 2013, May 1, 2020, and May 1, 2032, respectively, and are subject to mandatory redempt ion from a sinking fund account in amounts ranging from $190,000 to $550,000 as outlined in the bonds’ official statements. Bonds maturing on May 1, 2009 through May 1, 2011 a re subject to redemption prior to maturity, as a whole or in part, at the option of the Agency on any date on or after May 1, 2008 at redemption prices ranging from 100% to 101% of principal. A municipal bond insurance policy has been issued that insures the payment of the principal and interest on the bonds when due. During 2007, the bonds in t he amount of $645,000 were refunded by the 2006 Taxable Revenue Bonds, Series AT.
The annual debt service requirements outstanding at June 30, 2021, is as follows:
Year Ending
June 30, Principal Interest Total
2022 320,000$ 249,620$ 569,620$
2023 340,000 231,550 571,550
2024 360,000 212,300 572,300
2025 380,000 191,950 571,950
2026 400,000 170,500 570,500
2027-2032 2,350,000 488,125 2, 838,125 2033-2037 550,000 15,125 565,125 Total 4,700,000$ 1,559,170$ 6,259,170$
125
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
2018 Tax Allocation Refunding Bonds, Series BI – Original Issuance $128,885,000
On October 11, 2018, the Success or Agency to the Redevelopment Agency of the City of Pomona, issued 2018 Tax Allocation Refunding Bonds, Series BI in the amount of $128,885,000 to repay the advances from the Public Financing Au thority for 1998 Series W, 2001 Series AD, 2003 Series AH, 2005 Series AQ, 2006 Series AS/AT/AX and 2007 Series AW and created annual debt service savings of approximately $1.6 million. There was no economic gain due to the unused bond proceeds paid down the principal portion of the new issuance.
Interest on the bonds is payable semiannually on each August 1 and February 1. The rates of interest range from 2.65% to 4.51% per annum. Principal is p ayable in annual installments ranging from $690,000 to $9,805,000. Bonds are secured by the pledged tax revenues deposited in the Redevelopment Property Tax Trust Fund.
The annual debt service requirement for the 2018 Tax Allocation Refunding Bonds, Series BI outstanding at June 30, 2021, is as follows:
Year Ending
June 30, Principal Interest Total
2022 7,450,000 4, 299,883 11, 749,883 2023 7,495,000 4, 035,259 11, 530,259 2024 7,765,000 3, 763,041 11, 528,041 2025 8,010,000 3, 470,533 11, 480,533 2026-2030 44,650,000 12, 372,524 57, 022,524 2031-2035 25,680,000 3, 673,944 29, 353,944 2036-2040 5,285,000 882,275 6, 167,275 2041 690,000 31,091 721,091
Total 107,025,000$ 32,528,550 $ 139, 553,550$
Advances from the Housing Authority
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
SERAF Loan 182,425 $ - $ ( 182,425)$ - $ - $
On July 24, 2009, Assembly Bill AB4-26 that shifts former Redev elopment Agency funds and established a Supplemental Educational Revenue Augmentation Fund (SERAF) was passed. It was a “budget trailer bill” that was part of State’s legislation to balance its budget.
The former Redevelopment Agency of the City of Pomona’s share o f SERAF obligation was $8,264,547 in Fiscal Year 2 009-10 and $1.7 million in Fisca l Year 2010-11. Health and Safety Code Section 33690(c) provides that a redevelopment agency, which made a finding that insufficient monies were available to find its SERAF obligation in Fiscal Years 2009-10 or 2010-11, may borrow funds from its Low and Moderate Income Housing Fund to make the full SERAF payment. On May 3, 2010, the Redevelopme nt Agency Board authorized a loan of $5,000,000 from the Low-Mod Fund to provid e partial funding for the balance of the SERAF payment due. The Successor Agency’s outstanding balance on the note as of June 30, 2021, is $0.
126
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Pledged Tax Revenues
The City has pledged, as security for bonds issued, either dire ctly or through the Pomona Public Financing Authority, certain tax revenues to the repayment of certain Successor Agency debts (bonds, loans, and advances) through final maturity of bonded debt on February 1, 2041, or earlier retirement, whichever occurs first.
Tax revenues consist of tax increment revenues allocated to the Successor Agency to various project areas pursuant to Section 33670 of the Redevelo pment Law. Such Law excludes a portion of tax increment revenues required to be paid under Tax-Sharing agreements unless the payment of such amounts has been subordin ated to the payment of debt service on the Bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and w ill be allocated first to local agency and school entity pursuant to any pass-through agreement, then second to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. For the current year, the total property tax revenue recognized by the Successor Agency was $11,027,735 and the debt service payments on the bonds was $11,642,948.
Remaining balance on the debt at June 30, 2021, is as follows:
County of LA Agreement 63,219,182$
1998 Series X Bonds 288,890
1998 Series Y Bonds 6,259,170
2018 Series BI Bonds 139,553,550
Total 209,320,792$
Debt Issues
f. Compensated Absences
The liability for vested and unpai d compensated absences (accru ed, vacation, sick pay, executive leave, and comp time) is reported in the fund as the benefits are earned and vest.
Balance
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Compensated absences 71,462$ 39,718 $ 31,552 $ 79,628 $ 71,000 $
g. Insurance
The Successor Agency is covered under the City of Pomona’s insu rance policies.
Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and sel f-insured retentions can be found in Note 16.
127
Attachment No.1
CITY OF POMONA
NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2021
Note 18: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
h. Agreement for Allocation of Tax Increment Revenues
On December 5, 1988, the former Redevelopment Agency entered into an agreement with the County whereby the County has agreed to provide sufficient allocation of tax increment revenues to allow the Successor Agency to meet its debt service agreements on dent it has incurred in connection with the Southwest Pomona Project Ar ea. Beginning in fiscal year 1988-89, and thereafter for the life of the project, the County will provide a grant to the Successor Agency for any “deficiencies” in tax increment revenues allocated to the Successor Agency as described in the agreement. There were no i ntergovernmental revenues as result of the agreement for the year ended June 30, 2021.
Note 19: Restatement - GASB Stat ement No. 84, Fiduciary Activities
During the year ended June 30, 2021, the City adopted new accounting guidance by implementing the provisions of GASB Statement No. 84, Fiduciary Activities, which establishes criteria for identifying and repo rting fiduciary activities. T he implementation of this statement has resulted in changing the presentation of the financial stat ements. Beginning net position and beginning fund balance has been restated to reflect this change. 128
Attachment No.1
5(48,5('6833/(0(17$5<,1)250$7,21
81$8',7('
129
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 21,743,113$ 21,743,113$ 21,743,113$ -$ Resources (Inflows):
Taxes 96,379,880 96,379,880 108,106,252 11,726,372
Licenses, permits and fees 4,969,953 5,464,328 5,042,930 (421,398) Intergovernmental 406,163 2,317,709 2,316,535 (1,174) Charges for services 2,824,451 2,798,301 2,116,735 (681,566) Use of money and properties 1,616,996 1,616,996 1,412,001 (204,995) Fines and forfeitures 2,182,000 2,192,000 1,531,634 (660,366) Miscellaneous 626,000 641,300 903,124 261,824 Transfers in 1,800,000 1,800,000 1,831,314 31,314 Amounts Available for Appropriations 132,548,556 134,953,627 145,003,638 10,050,011 Charges to Appropriation (Outflow):
General government 6,900,241 7,269,355 6,231,593 1,037,762 Public safety 89,181,676 84,471,462 82,241,417 2,230,045 Urban development 10,960,030 11,275,041 10,973,498 301,543 Neighborhood services and library 4,685,955 4,296,885 3,260,011 1,036,874 Capital outlay - 62,831 65,159 (2,328) Debt service:
Principal retirement 280,639 280,639 195,758 84,881 Interest and fiscal charges - - 17,006 (17,006) Transfers out 4,721,397 5,471,174 5,679,708 (208,534) Total Charges to Appropriations 116,729,938 113,127,387 108,664,150 4,463,237 Budgetary Fund Balance, June 30 15,818,618$ 21,826,240$ 36,339,488$ 14,513,248$ See Notes to Financial Statement.
130
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 17,333,864$ 17,333,864 $ 17,333,864 $ -$ Resources (Inflows):
Intergovernmental 18,662,762 19,487,133 21,773,724 2,286,591 Charges for services 1,000 1,000 18,786 17,786 Use of money and properties 432,194 432,194 497,763 65,569 Contributions from Successor Agency - - 182,425 182,425 Miscellaneous 58,759 58,759 156,385 97,626 Amounts Available for Appropriations 36,488,579 37,312,950 39,962,947 2,649,997 Charges to Appropriation (Outflow):
Urban development 19,898,670 20,678,938 21,306,887 (627,949) Capital outlay - - 49,097 (49,097) Transfers out 586,790 586,790 5,022 581,768 Total Charges to Appropriations 20,485,460 21,265,728 21,361,006 (95,278) Budgetary Fund Balance, June 30 16,003,119$ 16,047,222$ 18,601,941$ 2,554,719$ 131
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
MISCELLANEOUS GRANTS
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,131,513$ 20,131,513$ 20,131,513$ -$ Resources (Inflows):
Intergovernmental 9,682,547 21,142,146 5,461,747 (15,680,399) Charges for services 777,399 777,399 366,678 (410,721) Use of money and properties 41,061 41,061 1,050,618 1,009,557 Miscellaneous 105,053 470,965 235,964 (235,001) Transfers in 82,000 109,950 159,545 49,595 Amounts Available for Appropriations 30,819,573 42,673,034 27,406,065 (15,266,969) Charges to Appropriation (Outflow):
Public safety 738,694 1,705,513 690,819 1,014,694 Urban development 8,602,654 18,852,431 4,729,306 14,123,125 Neighborhood services and library 398,056 1,194,931 604,961 589,970 Capital outlay 85,000 684,364 453,021 231,343 Transfers out - - 50,079 (50,079) Total Charges to Appropriations 9,824,404 22,437,239 6,528,186 15,909,053 Budgetary Fund Balance, June 30 20,995,169$ 20,235,795$ 20,877,879$ 642,084$ 132
Attachment No.1
CITY OF POMONA
NOTES TO THE BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2021
Note 1: Budget and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the fiscal statements:
a. Annual budgets are adopted on a basis consistent with accoun ting principles generally accepted in the United States of America for all governmental f unds, except that encumbrances are shown in the year incurred for budgetary purposes.
b. On or before the last day in January of each year, all opera tional units submit requests for appropriations to the City Manager for budget preparation p urposes. The City Council holds public hearings, and a final budget must be adopted no later than June 30.
c. The appropriated budget is prepared by fund, function, and department. The City’s department directors, with approv al of the Finance Director and City Manager, may make transfers of appropriations within a department and between departments with a fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The City Coun cil made several supplemental budgetary appropriations throughout the year. The supplementary budgetary appropriations made in the various governmental funds are not detailed in the required supplementary information. For the year ended June 30, 2021, there were no adopted operating budgets for the Fairplex Mitigation Special Revenue Fund or American Rescue Plan Act Fund.
d. Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are reported to reserve that portion of the ap plicable appropriations.
Encumbrance accounting is employed as an extension of formal budgetary accounting.
Unexpended appropriations lapse at year-end regardless of encumbrances. 133
Attachment No.1
CITY OF POMONA
MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
TOTAL PENSION LIABILITY
Service Cost 3,310,829$ 3,161,189$ 3,278,100$ 3,757,355$ Interest 18,086,982 18,495,828 19,115,591 19,389,644 Difference between Expected and Actual Experience - (3,363,816) 123,335 (2,724,421) Changes in Assumptions - (4,427,183) - 15,726,854 Benefit Payments, Including
Refunds of Employee Contributions (12,464,852) (13,367,634) (14,106,985) (14,550,855) Net Change in Total Pension Liability 8,932,959 498,384 8,410,041 21,598,577 Total Pension Liability - Beginning 245,736,775 254,669,734 255,168,118 263,578,159 Total Pension Liability - Ending (a) 254,669,734$ 255,168,118$ 263,578,159$ 285,176,736$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 3,191,964$ 3,747,091$ 4,508,818$ 4,965,420$ Contributions - Employee 1,640,223 1,622,551 1,710,782 1,824,492 Net Investment Income 31,444,609 4,578,528 1,092,440 21,714,550 Benefit Payments, Including
Refunds of Employee Contributions (12,464,852) (13,367,634) (14,106,985) (14,550,855) Administrative Expense - (235,754) (124,510) (291,464) Net Plan to Plan Resource Movement - (521) 30,199 - Other Miscellaneous Income/(Expense) - - - - Net Change in Fiduciary Net Position 23,811,944 (3,655,739) (6,889,256) 13,662,143 Plan Fiduciary Net Position - Beginning 184,143,961 207,955,905 204,300,166 197,410,910 Plan Fiduciary Net Position - Ending (b) 207,955,905$ 204,300,166$ 197,410,910$ 211,073,053$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 46,713,829$ 50,867,952$ 66,167,249$ 74,103,683$
81.66% 80.06% 74.90% 74.01%
Covered Payroll 21,768,272$ 21,843,562$ 21,768,272$ 22,899,750$ 214.60% 232.87% 303.96% 323.60%
Notes to Schedule:
Benefit Changes:
Changes of Assumptions:
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first yearof implementation, therefore only seven years are shown.
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 134
Attachment No.1
2019 2020 2021
3,684,403$ 3,678,697$ 3,689,145$
19,890,698 20,653,574 21,100,019
165,010 2,804,401 (1,647,018)
(1,368,646) - -
(15,247,444) (16,166,651) (16,726,361)
7,124,021 10,970,021 6,415,785
285,176,736 292,300,757 303,270,778
292,300,757$ 303,270,778$ 309,686,563$
5,562,823$ 6,340,816$ 7,644,926$
1,718,844 1,746,619 1,868,202
17,509,262 14,226,888 10,972,762
(15,247,444) (16,166,651) (16,726,361)
(328,910) (156,756) (318,117)
(510) - -
(624,606) 510 -
8,589,459 5,991,426 3,441,412
211,073,053 219,662,512 225,653,938
219,662,512$ 225,653,938$ 229,095,350$
72,638,245$ 77,616,840$ 80,591,213$
75.15% 74.41% 73.98%
23,628,194$ 23,219,075$ 25,342,873$
307.42% 334.28% 318.00%
135
Attachment No.1
CITY OF POMONA
SAFETY PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
TOTAL PENSION LIABILITY
Service Cost 4,880,486$ 4,785,362$ 4,884,739$ 5,801,213$ Interest 23,069,282 23,712,742 24,593,728 24,844,637 Difference between Expected and Actual Experience - (2,090,216) 1,506,206 (4,573,322) Changes in Assumptions - (5,565,887) - 19,952,226 Benefit Payments, Including
Refunds of Employee Contributions (17,510,572) (18,221,480) (18,854,232) (19,795,369) Net Change in Total Pension Liability 10,439,196 2,620,521 12,130,441 26,229,385 Total Pension Liability - Beginning 313,905,458 324,344,654 326,965,175 339,095,616 Total Pension Liability - Ending (a) 324,344,654$ 326,965,175$ 339,095,616$ 365,325,001$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 5,669,824$ 6,367,577$ 7,278,178$ 8,239,937$ Contributions - Employee 1,402,077 1,554,104 1,534,930 1,568,799 Net Investment Income 37,455,889 5,342,317 1,164,032 25,441,922 Benefit Payments, Including
Refunds of Employee Contributions (17,510,572) (18,221,480) (18,854,232) (19,795,369) Administrative Expense - (271,705) (147,131) (343,113) Net Plan to Plan Resource Movement - 521 1,096 - Other Miscellaneous Income/(Expense) - - - - Net Change in Fiduciary Net Position 27,017,218 (5,228,666) (9,023,127) 15,112,176 Plan Fiduciary Net Position - Beginning 219,628,065 246,645,283 241,416,617 232,393,490 Plan Fiduciary Net Position - Ending (b) 246,645,283$ 241,416,617$ 232,393,490$ 247,505,666$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 77,699,371$ 85,548,558$ 106,702,126$ 117,819,335$
76.04% 73.84% 68.53% 67.75%
Covered Payroll 14,837,124$ 15,182,720$ 15,528,316$ 16,122,314$ 523.68% 563.46% 687.15% 730.78%
Notes to Schedule:
Benefit Changes:
Changes of Assumptions:
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first yearof implementation, therefore only seven years are shown.
The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 136
Attachment No.1
2019 2020 2021
5,447,465$ 5,283,890$ 5,538,692$
25,520,009 26,641,545 27,404,181
1,433,848 6,506,181 1,100,494
(1,916,304) - -
(21,286,165) (22,125,918) (22,848,264)
9,198,853 16,305,698 11,195,103
365,325,001 374,523,854 390,829,552
374,523,854$ 390,829,552$ 402,024,655$
8,917,280$ 10,065,972$ 12,010,910$
1,611,014 1,577,765 1,935,321
20,385,914 16,534,386 12,709,328
(21,286,165) (22,125,918) (22,848,264)
(385,682) (182,698) (369,194)
(596) - -
(732,417) 596 -
8,509,348 5,870,103 3,438,101
247,505,666 256,015,014 261,885,117
256,015,014$ 261,885,117$ 265,323,218$
118,508,840$ 128,944,435$ 136,701,437$
68.36% 67.01% 66.00%
17,199,482$ 16,421,383$ 17,338,673$
689.03% 785.22% 788.42%
137
Attachment No.1
THIS PAGE INTENTIONALLY LEFT BLANK
138
Attachment No.1
CITY OF POMONA
COLLATERAL BENEFITS PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021
TOTAL PENSION LIABILITY
Service Cost 8,761$ 8,761$ 9,330$ 8,023$ Interest 61,845 59,294 56,133 52,950 Difference between Expected and Actual Experience - - - 76,786 Benefit Payments, Including
Refunds of Employee Contributions (114,500) (122,900) (111,400) (114,900) Net Change in Total Pension Liability (43,894) (54,845) (45,937) 22,859 Total Pension Liability - Beginning 1,007,818 963,924 909,079 863,142 Total Pension Liability - Ending (a) 963,924$ 909,079$ 863,142$ 886,001$
PLAN FIDUCIARY NET POSITION
Contributions - Employer -$ 102,949$ 167,769$ -$ Net Investment Income 13,113 8,427 3,889 32,324 Benefit Payments, Including
Refunds of Employee Contributions (114,500) (122,900) (111,400) (114,900)
Administrative Expense (126) (124) - (1,181) Net Change in Fiduciary Net Position (101,513) (11,648) 60,258 (83,757) Plan Fiduciary Net Position - Beginning 284,669 183,156 171,508 231,766 Plan Fiduciary Net Position - Ending (b) 183,156$ 171,508$ 231,766$ 148,009$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 780,768$ 737,571$ 631,376$ 737,992$
19.00% 18.87% 26.85% 16.71%
Covered Payroll N/A N/A N/A N/A
N/A N/A N/A N/A
Notes to Schedule:
Benefit Changes:
Changes of Assumptions:
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll
There were no changes to benefit terms.
There were no changes of assumptions.
(1) Historical information is required only for measurement years for which GASB 68 is applicable. 139
Attachment No.1
CITY OF POMONA
MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
Actuarially Determined Contribution 3,191,964$ 3,747,091$ 4,508,818$ 4,965,420$ Contribution in Relation to the Actuarially Determined Contribution (3,191,964) (3,747,091) (4,508,818) (4,965,420) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll 21,843,562$ 21,768,272$ 22,899,750$ 23,628,194$ Contributions as a Percentage of Covered Payroll 14.61% 17.21% 19.69% 21.01% Note to Schedule:
Valuation Date: June 30, 2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return 7.15% (net of administrative expenses) Retirement Age
Mortality
All other actuarial assumptions used in the June 30, 2019 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.
The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details onthis table, please refer to the 2017 experience study report. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first yearof implementation, therefore only seven years are shown.
Varies by Entry Age and Service
2.500%
2.750%
140
Attachment No.1
2019 2020 2021
5,562,823$ 7,759,016$ 84,202,532$
(5,562,823) (7,759,016) (84,202,532)
-$ -$ -$
23,219,075$ 25,342,873 26,144,350
23.96% 30.62% 322.07%
141
Attachment No.1
CITY OF POMONA
SAFETY PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
Actuarially Determined Contribution 5,669,824$ 6,367,577$ 7,278,178$ 8,239,937$ Contribution in Relation to the Actuarially Determined Contribution (5,669,824) (6,367,577) (7,278,178) (8,239,937) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll 15,182,720$ 15,528,316$ 16,122,314$ 17,199,482$ Contributions as a Percentage of Covered Payroll 37.34% 41.01% 45.14% 47.91% Note to Schedule:
Valuation Date: June 30, 2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return 7.15% (net of administrative expenses) Retirement Age
Mortality The mortality table used was developed based on CalPERS' specificdata.
The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details onthis table, please refer to the 2017 experience study report.
Varies by Entry Age and Service
2.500%
2.750%
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first yearof implementation, therefore only seven years are shown.
All other actuarial assumptions used in the June 30, 2019 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. 142
Attachment No.1
2019 2020 2021
8,917,280$ 11,896,017$ 143,493,881$
(8,917,280) (11,896,017) (143,493,881)
-$ -$ -$
16,421,383$ 17,338,673$ 18,391,390$
54.30% 68.61% 780.22%
143
Attachment No.1
CITY OF POMONA
COLLATERAL BENEFITS PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
Actuarially Determined Contribution 110,032$ 102,949$ 102,949$ 102,949$ Contribution in Relation to the Actuarially Determined Contribution (110,032) (102,949) (102,949) (114,500) Contribution Deficiency (Excess) -$ -$ -$ (11,551)$ Covered Payroll N/A N/A N/A N/A
Contributions as a Percentage of Covered Payroll N/A N/A N/A N/A Note to Schedule:
Valuation Date: June 30, 2017
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return 6.50% (net of administrative expenses) Retirement Age
Mortality
N/A
N/A
N/A
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first yearof implementation, therefore only seven years are shown.
Consistent with the Non-industrial rates used for the value of Miscellaneous Public Agency CalPERS Pension Plans.
The retirement rates are consistent with those used to value the Miscellaneous Public Agency CalPERS "2.0% at age 55" Pension Plans for retirees with 25 years of service.
144
Attachment No.1
2019 2020 2021
102,949$ 167,769$ -$
(102,949) (167,769) (166,789)
-$ -$ (166,789)$
N/A N/A N/A
N/A N/A N/A
145
Attachment No.1
CITY OF POMONA
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021
Total OPEB Liability
Service cost 2,019,938$ 2,322,129$ 2,391,793$ 2,438,598$ Interest on the total OPEB liability 3,382,262 3,193,265 3,459,741 2,693,897 Actual and expected experience difference - - (2,406,146) - Changes in assumptions 5,151,873 (5,689,789) 10,014,158 7,273,004 Changes in benefit terms - - - - Benefit payments (4,149,518) (4,419,147) (4,532,965) (4,862,846) Net change in total OPEB liability 6,404,555 (4,593,542) 8,926,581 7,542,653 Total OPEB liability - beginning 90,248,485 96,653,040 92,059,498 100,986,079 Total OPEB liability - ending (a) 96,653,040 92,059,498 100,986,079 108,528,732 Plan Fiduciary Net Position
Contribution - employer 4,149,518 4,419,147 4,532,965 4,862,846 Net investment income - - - - Benefit payments (4,149,518) (4,419,147) (4,532,965) (4,862,846) Administrative expense - - - - Net change in plan fiduciary net position - - - - Plan fiduciary net position - beginning - - - - Plan fiduciary net position - ending (b) -$ -$ -$ -$ Net OPEB Liability - ending (a) - (b) 96,653,040$ 92,059,498$ 100,986,079$ 108,528,732$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered-employee payroll 40,827,676$ 40,570,643$ 42,681,546$ 44,535,741$ Total OPEB liability as a percentage of covered-employee payroll 236.73% 226.91% 236.60% 243.69% Notes to Schedule: None
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' informationwill be displayed up to 10 years as information becomes available.
Changes in assumptions: In 2021, the accounting discount rate reduced from 2.7 percent to 2.12 percent. In 2020, the accounting discount rate reduced from 3.8 percent to 2.7 percent. 146
Attachment No.1
6833/(0(17$5<,1)250$7,21
147
Attachment No.1
NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds:
The C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t ( C D B G ) F u n d accounts for funds received from the U.S. Department of Housing and Urban Development to develop via ble urban communities by providing decent housing and a suitable environment and expand economic o pportunity for persons of low and moderate income.
The State Gas Tax Fund accounts for revenues received and expenditures made for genera l street improvement and maintenance. The revenue consists of the City’s share of state gasoline taxes collected under Sections 2105,2106,2107.5 of the Street and Highway Code.
The Proposition “A” Fund accounts for the receipt and disbursement of funds derived from t h e one-half cent sales tax imposed by the Proposition “A” ordinance of the Los Angeles County Transportation Commission. The funds are used to finance public transportation projects.
The Proposition “C” Fund accounts for the receipt and dis bursement of funds derived from a 1990-91 increase in County sales tax. The funds are used to finance transit and transit-related projects.
The Vehicle Parking District Fund accounts for operation, maintena nce, capital improvements, and administration of parking lots in the downtown business area. Revenues are received from parking fees.
The Air Quality Improvement Fund accounts for revenues and expenditures made for air quality improvement projects. The revenues consist of funds received fr om the South Coast Air Quality Management District (SCAQMD) in accordance with AB2766.
The Landscape Maintenance District Fund accounts for revenues received and expenditures made for landscape and lighting maintenance in various areas of the City . Revenues consist of assessments received from property owners.
The Asset Forfeiture Fund accounts for the City’s share of assets seized by law enforceme nt agencies.
The monies are used for law enforcement purposes.
The Traffic Offender Fund accounts for the fees collected for the impoundment of vehicle s and expenditures for the enforcement, education, and prosecution of drivers with a suspended or revoked license as well as unlicensed drivers operating a motor vehicle.
The Measure “R” Fund accounts for street maintenance, traffic signal, street light maintenance, traffic paint and sign services which are funded with one-half cent sales tax revenue.
The Measure “M” Fund accounts for new transit and highway projects, enhances bus and rail operations, and several other transportation improvements in Los Angeles Co unty which is funded with one half cent sales tax revenue.
The Special Fees Fund accounts for fee analysis rate review and public art fees.
The PEG Fee Fund accounts for Public, Education, and Government (PEG) fees coll ected by service providers through the franchisee agreement with the City. Thes e fees pay for capital equipment and projects that provide for continuation of PEG programming. 148
Attachment No.1
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
The OATH (Officers Assisting and Homeless) Initiative Fund accounts for providing local police officers with the proper tools based on nationally recognized best pract ices and trauma-informed care for interactions with the homeless population.
The Fairplex Mitigation Fund accounts for City revenue from Fairplex events to fund public safety measures and initiatives to those residents most impacted by Fairplex events.
The Measure “W” Fund accounts for City revenue approved by Los Angeles County voters with funds to capture, treat and recycle stormwater.
Nonmajor Capital Projects Funds
The Assessment District Improvement Fund accounts for capital improvements through special charges levied against the properties benefited.
149
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
CAPITAL OUTLAY CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,465,771$ 3,465,771$ 3,465,771$ -$ Resources (Inflows):
Licenses, permits and fees 293,000 293,000 217,025 (75,975) Intergovernmental 2,840,678 4,591,554 1,351,874 (3,239,680) Charges for services - - 51,284 51,284 Use of money and properties 9,311 9,311 (74,835) (84,146) Contributions from Successor Agency - 615,159 3,656,052 3,040,893 Miscellaneous - 275,794 337,272 61,478 Transfers in 4,892,678 7,098,808 7,561,065 462,257 Proceeds from sale of capital asset - - 7,563 7,563 Amounts Available for Appropriations 11,501,438 16,349,397 16,573,071 223,674 Charges to Appropriation (Outflow):
Capital outlay 7,893,475 12,153,461 12,565,136 (411,675) Debt service:
Principal retirement 211,372 211,372 180,612 30,760 Interest and fiscal charges - - 30,760 (30,760) Transfers out 216,787 216,787 213,110 3,677 Total Charges to Appropriations 8,321,634 12,581,620 12,989,618 (407,998) Budgetary Fund Balance, June 30 3,179,804$ 3,767,777$ 3,583,453$ (184,324)$ 150
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
ASSESSMENT DISTRICT IMPROVEMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 as restated 64,803$ 64,803$ 64,803$ -$ Resources (Inflows):
Use of money and property 978 978 (700) (1,678) Amounts Available for Appropriations 65,781 65,781 64,103 (1,678) Charges to Appropriation (Outflow):
Transfers out - 57,799 19,870 37,929 Total Charges to Appropriations - 57,799 19,870 37,929 Budgetary Fund Balance, June 30 65,781$ 7,982$ 44,233$ 36,251$ 151
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
GENERAL GOVERNMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (70,727,367)$ (70,727,367)$ (70,727,367)$ -$ Resources (Inflows):
Taxes 611,751 611,751 17,339 (594,412) Intergovernmental 315,836 315,836 291,441 (24,395) Use of money and properties 16,564 16,564 313 (16,251) Transfers in 5,312,657 5,312,657 8,733,814 3,421,157 Refunding bonds issued - - 195,304,996 195,304,996 Amounts Available for Appropriations (64,470,559) (64,470,559) 133,620,536 198,091,095 Charges to Appropriation (Outflow):
General government - - 55,070,552 (55,070,552) Public safety - - 139,071,987 (139,071,987) Debt service:
Principal retirement 833,302 833,302 833,302 - Interest and fiscal charges 3,158,556 3,158,556 6,616,983 (3,458,427) Pass-through agreement payments - - 1,141,091 (1,141,091) Transfers out 2,265,000 2,265,000 - 2,265,000 Total Charges to Appropriations 6,256,858 6,256,858 202,733,915 (196,477,057) Budgetary Fund Balance, June 30 (70,727,417)$ (70,727,417)$ (69,113,379)$ 1,614,038$ 152
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 73,921,275$ 73,921,275$ 73,921,275$ -$ Resources (Inflows):
Use of money and properties 120,131 120,131 211,003 90,872 Amounts Available for Appropriations 74,041,406 74,041,406 74,132,278 90,872 Charges to Appropriation (Outflow):
Debt service:
Principal retirement 2,880,000 2,880,000 2,880,000 - Interest and fiscal charges 151,020 145,470 148,397 (2,927) Total Charges to Appropriations 3,031,020 3,025,470 3,028,397 (2,927) Budgetary Fund Balance, June 30 71,010,386$ 71,015,936$ 71,103,881$ 87,945$ 153
Attachment No.1
CITY OF POMONA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments -$ 2,956,555$ 3,392,612$ 11,135,878$ Receivables (net):
Accounts - - 2,000 - Notes and loans 1,547,696 - - - Interest - 8,877 7,513 25,618 Due from other governments 659,190 279,775 10,743 - Advances to other funds - - - - Total Assets 2,206,886$ 3,245,207$ 3,412,868$ 11,161,496$ Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 175,645$ 349,467$ 101,472$ 21,798$ Payroll payable 36,228 27,601 2,557 1,551 Deposits payable - - - - Unearned revenues - - - - Due to other funds 134,602 - - - Total Liabilities 346,475 377,068 104,029 23,349 Deferred inflows of resources:
Unavailable revenues 838,915 - - - Total Deferred inflows of Resources 838,915 - - - Fund Balances:
Restricted for:
Development and public works 1,021,496 2,868,139 3,308,839 11,138,147 Public safety - - - - Assessment district improvement - - - - Total Fund Balances 1,021,496 2,868,139 3,308,839 11,138,147 Total Liabilities, deferred inflows of
resources, and Fund Balances 2,206,886$ 3,245,207$ 3,412,868$ 11,161,496$ Community
Development
Block Grant State Gas Tax Proposition A Proposition C Special Revenue Funds
154
Attachment No.1
CITY OF POMONA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables (net):
Accounts
Notes and loans
Interest
Due from other governments
Advances to other funds
Total Assets
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Payroll payable
Deposits payable
Unearned revenues
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred inflows of Resources
Fund Balances:
Restricted for:
Development and public works
Public safety
Assessment district improvement
Total Fund Balances
Total Liabilities, deferred inflows of
resources, and Fund Balances
(CONTINUED)
1,856,137$ 369,695$ 833,554$ 1,407,273$ 9,914 60,000 - - - - - - 4,062 743 2,025 - 140 51,403 34,627 - 304,435 - - - 2,174,688$ 481,841$ 870,206$ 1,407,273$ 9,201$ 1,930$ 177,583$ 12,821$ 8,495 762 6,294 - 16,334 - - - - - - - - - - - 34,030 2,692 183,877 12,821 - - - - - - - - 2,140,658 479,149 - - - - - 1,394,452 - - 686,329 - 2,140,658 479,149 686,329 1,394,452 2,174,688$ 481,841$ 870,206$ 1,407,273$ Vehicle
Parking
District
Air Quality
Improvement
Landscape
Maintenance
District
Asset
Forfeiture
Special Revenue Funds
155
Attachment No.1
CITY OF POMONA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables (net):
Accounts
Notes and loans
Interest
Due from other governments
Advances to other funds
Total Assets
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Payroll payable
Deposits payable
Unearned revenues
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred inflows of Resources
Fund Balances:
Restricted for:
Development and public works
Public safety
Assessment district improvement
Total Fund Balances
Total Liabilities, deferred inflows of
resources, and Fund Balances
519,200$ 3,323,937$ 2,260,072$ 2,632,795$ 175 - - - - - - - 1,110 7,324 4,679 - - - - - - - - - 520,485$ 3,331,261$ 2,264,751$ 2,632,795$ 11,742$ 65,198$ 121,169$ 87,660$ 1,992 20,624 17,511 - - - - - - - - - - - - - 13,734 85,822 138,680 87,660 - - - - - - - - - 3,245,439 2,126,071 2,545,135 506,751 - - - - - - - 506,751 3,245,439 2,126,071 2,545,135 520,485$ 3,331,261$ 2,264,751$ 2,632,795$ Special Revenue Funds
Traffic
Offender Measure R Measure M Special Fees
156
Attachment No.1
CITY OF POMONA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables (net):
Accounts
Notes and loans
Interest
Due from other governments
Advances to other funds
Total Assets
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Payroll payable
Deposits payable
Unearned revenues
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred inflows of Resources
Fund Balances:
Restricted for:
Development and public works
Public safety
Assessment district improvement
Total Fund Balances
Total Liabilities, deferred inflows of
resources, and Fund Balances
(CONTINUED)
360,002$ 155,620$ 420,314$ 2,110,453$ 33,315 - - - - - - - - - - 4,288 - - - - - - - - 393,317$ 155,620$ 420,314$ 2,114,741$ 6,768$ 114,173$ -$ 71,026$ - 21,538 - - - - - - - 19,909 - 2,043,715 - - - - 6,768 155,620 - 2,114,741 - - - - - - - - 386,549 - 420,314 - - - - - - - - - 386,549 - 420,314 - 393,317$ 155,620$ 420,314$ 2,114,741$ Special Revenue Funds
PEG Fee
OATH
Initiative
Fairplex
Mitigation
Fund Measure W
157
Attachment No.1
CITY OF POMONA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Cash and investments
Receivables (net):
Accounts
Notes and loans
Interest
Due from other governments
Advances to other funds
Total Assets
Liabilities, Deferred inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Payroll payable
Deposits payable
Unearned revenues
Due to other funds
Total Liabilities
Deferred inflows of resources:
Unavailable revenues
Total Deferred inflows of Resources
Fund Balances:
Restricted for:
Development and public works
Public safety
Assessment district improvement
Total Fund Balances
Total Liabilities, deferred inflows of
resources, and Fund Balances
Capital Projects
Funds
277,755$ 34,011,852$
- 105,404
- 1,547,696
327 66,566
- 1,035,878
- 304,435
278,082$ 37,071,831$
-$ 1,327,653$
- 145,153
233,849 250,183
- 2,063,624
- 134,602
233,849 3,921,215
- 838,915
- 838,915
- 29,679,936
- 1,901,203
44,233 730,562
44,233 32,311,701
278,082$ 37,071,831$
Assessment
District
Improvement
Total Nonmajor
Governmental
Funds
158
Attachment No.1
THIS PAGE INTENTIONALLY LEFT BLANK
159
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes -$ -$ -$ -$ Special assessments - - - - Licenses, permits and fees - - - - Intergovernmental 2,556,402 6,188,413 3,104,734 2,575,266 Charges for services 23,133 1,271 - - Use of money and properties 13,945 2,472 5,825 9,780 Miscellaneous - 64,908 6,000 - Total Revenues 2,593,480 6,257,064 3,116,559 2,585,046 Expenditures:
Current:
General government - - - - Public safety 78,829 - - - Urban development 1,923,484 3,445,895 2,033,711 114,410 Capital outlay - - - - Debt service:
Principal retirement 20,000 65,148 - - Interest and fiscal charges 324 - - - Total Expenditures 2,022,637 3,511,043 2,033,711 114,410 Excess (Deficiency) of Revenues
Over (Under) Expenditures 570,843 2,746,021 1,082,848 2,470,636 Other Financing Sources (Uses):
Transfers in - 131,750 - - Transfers out (597,871) (3,402,214) (368,016) (1,243,151) Total Other Financing Sources
(Uses) (597,871) (3,270,464) (368,016) (1,243,151) Net Change in Fund Balances (27,028) (524,443) 714,832 1,227,485 Fund Balances, Beginning of Year 1,048,524 3,392,582 2,594,007 9,910,662 Restatements - - - - Fund Balances, Beginning of Year, as Restated 1,048,524 3,392,582 2,594,007 9,910,662 Fund Balances, End of Year 1,021,496$ 2,868,139$ 3,308,839$ 11,138,147$ Special Revenue Funds
Community
Development
Block Grant State Gas Tax Proposition A Proposition C 160
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Special assessments
Licenses, permits and fees
Intergovernmental
Charges for services
Use of money and properties
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Urban development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
16,169$ -$ -$ -$ - - 1,252,382 - - - - - - 262,157 - 740,893 16,305 - - - 181,193 1,107 (6,600) (5,943) - - - 2,500 213,667 263,264 1,245,782 737,450 602,846 - - - - - - 723,489 - 46,262 1,318,880 - - - - 90,238 - - - - - - - - 602,846 46,262 1,318,880 813,727 (389,179) 217,002 (73,098) (76,277) - - - - - - - - - - - - (389,179) 217,002 (73,098) (76,277) 2,529,837 262,147 759,427 1,470,729 - - - - 2,529,837 262,147 759,427 1,470,729 2,140,658$ 479,149$ 686,329$ 1,394,452$ Special Revenue Funds
Vehicle
Parking
District
Air Quality
Improvement
Landscape
Maintenance
District
Asset
Forfeiture
161
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Special assessments
Licenses, permits and fees
Intergovernmental
Charges for services
Use of money and properties
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Urban development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ -$ -$ -$ - - - - - - - 429,378 - 1,934,126 2,191,436 - 225,024 - - - (386) 2,776 8,134 (19,828) - - - - 224,638 1,936,902 2,199,570 409,550 - - - - 64,359 - - - - 1,169,955 1,234,450 294,105 5,607 - - - - - - - - - - - 69,966 1,169,955 1,234,450 294,105 154,672 766,947 965,120 115,445 - - - - - (254,061) (122,256) - - (254,061) (122,256) - 154,672 512,886 842,864 115,445 352,079 2,732,553 1,283,207 2,429,690 - - - - 352,079 2,732,553 1,283,207 2,429,690 506,751$ 3,245,439$ 2,126,071$ 2,545,135$ Special Revenue Funds
Traffic
Offender Measure R Measure M Special Fees
162
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Special assessments
Licenses, permits and fees
Intergovernmental
Charges for services
Use of money and properties
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Urban development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
-$ -$ -$ 296,228$ - - - - 134,276 - - - - 1,431,330 - - - - - - (1,099) - (3,586) 18,511 - - - - 133,177 1,431,330 (3,586) 314,739 - - - - - 1,431,330 - - - - - 200,075 16,820 - - 70,262 - - - - - - - - 16,820 1,431,330 - 270,337 116,357 - (3,586) 44,402 - - - - - - - (44,402) - - - (44,402) 116,357 - (3,586) - 270,192 - 423,900 - - - - - 270,192 - 423,900 - 386,549$ -$ 420,314$ -$ Special Revenue Funds
PEG Fee
OATH
Initiative
Fairplex
Mitigation
Fund Measure W
163
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Special assessments
Licenses, permits and fees
Intergovernmental
Charges for services
Use of money and properties
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Urban development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Capital Projects
Funds
Total Nonmajor
Governmental
Funds
-$ 312,397$
- 1,252,382
- 563,654
- 20,984,757
- 265,733
(700) 205,601
- 73,408
(700) 23,657,932
- 602,846
- 2,298,007
- 11,781,227
- 182,927
- 85,148
- 324
- 14,950,479
(700) 8,707,453
- 131,750
(19,870) (6,051,841)
(19,870) (5,920,091)
(20,570) 2,787,362
62,104 29,521,640
2,699 2,699
64,803 29,524,339
44,233$ 32,311,701$
Assessment
District
Improvement
164
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,048,524$ 1,048,524$ 1,048,524$ -$ Resources (Inflows):
Intergovernmental 2,077,103 4,380,861 2,556,402 (1,824,459) Charges for services 4,725 4,725 23,133 18,408 Use of money and properties 1,945 1,945 13,945 12,000 Amounts Available for Appropriations 3,132,297 5,436,055 3,642,004 (1,794,051) Charges to Appropriation (Outflow):
Public safety 149,487 79,663 78,829 834 Urban development 1,615,481 4,063,251 1,923,484 2,139,767 Debt service:
Principal retirement 10,000 - 20,000 (20,000) Interest and fiscal charges 3,000 13,000 324 12,676 Transfers out 299,135 577,001 597,871 (20,870) Total Charges to Appropriations 2,077,103 4,732,915 2,620,508 2,112,407 Budgetary Fund Balance, June 30 1,055,194$ 703,140$ 1,021,496$ 318,356$ 165
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,392,582$ 3,392,582$ 3,392,582$ -$ Resources (Inflows):
Intergovernmental 6,253,689 6,253,689 6,188,413 (65,276) Charges for services - - 1,271 1,271 Use of money and properties 45,198 45,198 2,472 (42,726) Miscellaneous 27,550 27,550 64,908 37,358 Transfers in 131,750 131,750 131,750 - Amounts Available for Appropriations 9,850,769 9,850,769 9,781,396 (69,373) Charges to Appropriation (Outflow):
Urban development 3,764,869 3,703,610 3,445,895 257,715 Debt service:
Principal retirement 65,148 65,148 65,148 - Transfers out 2,290,000 2,241,532 3,402,214 (1,160,682) Total Charges to Appropriations 6,120,017 6,010,290 6,913,257 (902,967) Budgetary Fund Balance, June 30 3,730,752$ 3,840,479$ 2,868,139$ (972,340)$ 166
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,594,007$ 2,594,007$ 2,594,007$ -$ Resources (Inflows):
Intergovernmental 3,097,000 3,097,000 3,104,734 7,734 Use of money and properties 48,013 48,013 5,825 (42,188) Miscellaneous - - 6,000 6,000 Amounts Available for Appropriations 5,739,020 5,739,020 5,710,566 (28,454) Charges to Appropriation (Outflow):
Urban development 3,052,573 3,043,873 2,033,711 1,010,162 Transfers out - - 368,016 (368,016) Total Charges to Appropriations 3,052,573 3,043,873 2,401,727 642,146 Budgetary Fund Balance, June 30 2,686,447$ 2,695,147$ 3,308,839$ 613,692$ 167
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,910,662$ 9,910,662$ 9,910,662$ -$ Resources (Inflows):
Intergovernmental 2,158,293 2,158,293 2,575,266 416,973 Use of money and properties 132,514 132,514 9,780 (122,734) Amounts Available for Appropriations 12,201,469 12,201,469 12,495,708 294,239 Charges to Appropriation (Outflow):
Urban development 127,686 123,686 114,410 9,276 Transfers out 1,019,111 1,819,111 1,243,151 575,960 Total Charges to Appropriations 1,146,797 1,942,797 1,357,561 585,236 Budgetary Fund Balance, June 30 11,054,672$ 10,258,672$ 11,138,147$ 879,475$ 168
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
VEHICLE PARKING DISTRICT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,529,837$ 2,529,837$ 2,529,837$ -$ Resources (Inflows):
Taxes 15,105 15,105 16,169 1,064 Charges for services 156,000 156,000 16,305 (139,695) Use of money and properties 2,250,192 2,250,192 181,193 (2,068,999) Amounts Available for Appropriations 4,951,134 4,951,134 2,743,504 (2,207,630) Charges to Appropriation (Outflow):
General government 924,086 910,463 602,846 307,617 Total Charges to Appropriations 924,086 910,463 602,846 307,617 Budgetary Fund Balance, June 30 4,027,048$ 4,040,671$ 2,140,658$ (1,900,013)$ 169
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 262,147$ 262,147$ 262,147$ -$ Resources (Inflows):
Intergovernmental 159,640 159,640 262,157 102,517 Use of money and properties 4,975 4,975 1,107 (3,868) Amounts Available for Appropriations 426,762 426,762 525,411 98,649 Charges to Appropriation (Outflow):
Urban development 25,941 24,931 46,262 (21,331) Total Charges to Appropriations 25,941 24,931 46,262 (21,331) Budgetary Fund Balance, June 30 400,821$ 401,831$ 479,149$ 77,318$ 170
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE MAINTENANCE DISTRICT
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 759,427$ 759,427$ 759,427$ -$ Resources (Inflows):
Special assessments 1,201,000 1,201,000 1,252,382 51,382 Use of money and properties 15,255 15,255 (6,600) (21,855) Amounts Available for Appropriations 1,975,682 1,975,682 2,005,209 29,527 Charges to Appropriation (Outflow):
Urban development 1,339,076 1,326,479 1,318,880 7,599 Total Charges to Appropriations 1,339,076 1,326,479 1,318,880 7,599 Budgetary Fund Balance, June 30 636,606$ 649,203$ 686,329$ 37,126$ 171
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
ASSET FORFEITURE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,470,729$ 1,470,729$ 1,470,729$ -$ Resources (Inflows):
Intergovernmental 550,000 550,000 740,893 190,893 Charges for services 6,000 6,000 - (6,000) Use of money and properties 24,545 24,545 (5,943) (30,488) Miscellaneous - - 2,500 2,500 Amounts Available for Appropriations 2,051,274 2,051,274 2,208,179 156,905 Charges to Appropriation (Outflow):
Public safety 795,384 811,587 723,489 88,098 Capital outlay 100,000 83,797 90,238 (6,441) Total Charges to Appropriations 895,384 895,384 813,727 81,657 Budgetary Fund Balance, June 30 1,155,890$ 1,155,890$ 1,394,452$ 238,562$ 172
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
TRAFFIC OFFENDER
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 352,079$ 352,079$ 352,079$ -$ Resources (Inflows):
Charges for services 263,400 263,400 225,024 (38,376) Use of money and properties 4,315 4,315 (386) (4,701) Amounts Available for Appropriations 619,794 619,794 576,717 (43,077) Charges to Appropriation (Outflow):
Public safety 169,550 183,887 64,359 119,528 Capital outlay 95,000 80,663 5,607 75,056 Total Charges to Appropriations 264,550 264,550 69,966 194,584 Budgetary Fund Balance, June 30 355,244$ 355,244$ 506,751$ 151,507$ 173
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
MEASURE R
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,732,553$ 2,732,553$ 2,732,553$ -$ Resources (Inflows):
Intergovernmental 1,618,887 1,618,887 1,934,126 315,239 Use of money and properties 56,223 56,223 2,776 (53,447) Amounts Available for Appropriations 4,407,663 4,407,663 4,669,455 261,792 Charges to Appropriation (Outflow):
Urban development 1,215,984 1,206,434 1,169,955 36,479 Transfers out - 14,536 254,061 (239,525) Total Charges to Appropriations 1,215,984 1,220,970 1,424,016 (203,046) Budgetary Fund Balance, June 30 3,191,679$ 3,186,693$ 3,245,439$ 58,746$ 174
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
MEASURE M
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,283,207$ 1,283,207$ 1,283,207$ -$ Resources (Inflows):
Intergovernmental 1,834,549 1,834,549 2,191,436 356,887 Use of money and properties 30,492 30,492 8,134 (22,358) Amounts Available for Appropriations 3,148,248 3,148,248 3,482,777 334,529 Charges to Appropriation (Outflow):
Urban development 1,325,427 1,337,009 1,234,450 102,559 Transfers out - - 122,256 (122,256) Total Charges to Appropriations 1,325,427 1,337,009 1,356,706 (19,697) Budgetary Fund Balance, June 30 1,822,821$ 1,811,239$ 2,126,071$ 314,832$ 175
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
SPECIAL FEES
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,429,690$ 2,429,690$ 2,429,690$ -$ Resources (Inflows):
Special assessments 251,100 301,100 429,378 128,278 Use of money and properties - - (19,828) (19,828) Amounts Available for Appropriations 2,680,790 2,730,790 2,839,240 108,450 Charges to Appropriation (Outflow):
Urban development 323,000 431,816 294,105 137,711 Transfers out 500,000 500,000 - 500,000 Total Charges to Appropriations 823,000 931,816 294,105 637,711 Budgetary Fund Balance, June 30 1,857,790$ 1,798,974$ 2,545,135$ 746,161$ 176
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
PEG FEE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 270,192$ 270,192$ 270,192$ -$ Resources (Inflows):
Licenses, permits and fees 100,000 100,000 134,276 34,276 Use of money and properties - - (1,099) (1,099) Amounts Available for Appropriations 370,192 370,192 403,369 33,177 Charges to Appropriation (Outflow):
Capital outlay 40,000 40,000 16,820 23,180 Total Charges to Appropriations 40,000 40,000 16,820 23,180 Budgetary Fund Balance, June 30 330,192$ 330,192$ 386,549$ 56,357$ 177
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
OATH INITIATIVE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):
Intergovernmental 1,567,565 1,451,238 1,431,330 (19,908) Amounts Available for Appropriations 1,567,565 1,451,238 1,431,330 (19,908) Charges to Appropriation (Outflow):
Public safety 1,409,301 1,451,388 1,431,330 20,058 Total Charges to Appropriations 1,409,301 1,451,388 1,431,330 20,058 Budgetary Fund Balance, June 30 158,264$ (150)$ -$ 150$ 178
Attachment No.1
CITY OF POMONA
BUDGETARY COMPARISON SCHEDULE
MEASURE W
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):
Taxes - 2,377,760 296,228 (2,081,532) Use of money and property - - 18,511 18,511 Amounts Available for Appropriation - 2,377,760 314,739 (2,063,021) Charges to Appropriation (Outflow):
Community development - 1,819,738 200,075 1,619,663 Capital outlay - 70,262 70,262 - Transfers out - 791,260 44,402 746,858 Total Charges to Appropriations - 2,681,260 314,739 2,366,521 Budgetary Fund Balance, June 30 -$ (303,500)$ -$ 303,500$ 179
Attachment No.1
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180
Attachment No.1
INTERNAL SERVICE FUNDS
The Internal Service Funds account for maintenance and repair of City vehicles and equipm ent, risk management, general liability, workers’ compensation, info rmation technology, and printing and mail service provided to other departments or agencies of the City. 181
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments 10,644,968$ 488,283$ 346,227$ -$ Receivables:
Accounts 591 - 6,137 - Interest 46,293 - - - Prepaid items - - - 1,438 Inventories - 373,292 - - Total Current Assets 10,691,852 861,575 352,364 1,438 Noncurrent:
Capital assets - net of accumulated depreciation - 126,328 96,504 - Total Noncurrent Assets - 126,328 96,504 - Total Assets 10,691,852 987,903 448,868 1,438 Deferred Outflows of Resources:
Deferred outflows of resources related to pensions 1,075,853 3,020,996 2,048,424 - Deferred outflows of resources related to
other postemployment benefits 81,713 383,703 199,354 - Total Deferred Outflows of Resources 1,157,566 3,404,699 2,247,778 - Liabilities:
Current:
Accounts payable 46,534 283,820 40,555 5,384 Due to other funds - - - 55,584 Payroll payable 16,775 40,108 30,985 - Compensated absences, due within one year - 208,135 - - Claims and judgements, due within one year 20,787,000 - - - Total Current Liabilities 20,850,309 532,063 71,540 60,968 Noncurrent:
Claims and judgements, due in more than one year 10,319,168 - - - Long-term debt, due in more than one year 895,276 2,833,670 1,897,327 - Total other postemployment benefit liability 618,697 2,905,225 1,509,417 - Net pension liability 1,007,390 2,828,752 1,918,071 - Total Noncurrent Liabilities 12,840,531 8,567,647 5,324,815 - Total Liabilities 33,690,840 9,099,710 5,396,355 60,968 Deferred Inflows of Resources:
Deferred inflows of resources related to pensions 10,294 28,905 19,600 - Deferred inflows of resources related to
other postemployment benefits 8,637 40,555 21,070 - Total Deferred Inflows of Resources 18,931 69,460 40,670 - Net Position:
Net investment in capital assets - 126,328 96,504 - Unrestricted (21,860,353) (4,902,896) (2,836,883) (59,530) Total Net Position (21,860,353)$ (4,776,568)$ (2,740,379)$ (59,530)$ Governmental Activities - Internal Service Funds
Self-
Insurance
Equipment
Maintenance
Information
Technology
Printing/Mail
Services
182
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments
Receivables:
Accounts
Interest
Prepaid items
Inventories
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Deferred outflows of resources related to pensions
Deferred outflows of resources related to
other postemployment benefits
Total Deferred Outflows of Resources
Liabilities:
Current:
Accounts payable
Due to other funds
Payroll payable
Compensated absences, due within one year
Claims and judgements, due within one year
Total Current Liabilities
Noncurrent:
Claims and judgements, due in more than one year
Long-term debt, due in more than one year
Total other postemployment benefit liability
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred inflows of resources related to pensions
Deferred inflows of resources related to
other postemployment benefits
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Totals
402,245$ -$ 11,881,723$
- - 6,728
- - 46,293
- - 1,438
- - 373,292
402,245 - 12,309,474
- - 222,832
- - 222,832
402,245 - 12,532,306
- - 6,145,273 - - 664,770
- - 6,810,043 9,954 - 386,247
- - 55,584
- - 87,868
- - 208,135
- - 20,787,000 9,954 - 21,524,834
- - 10,319,168 - - 5,626,273 - - 5,033,339 - - 5,754,213 - - 26,732,993 9,954 - 48,257,827
- - 58,799
- - 70,262
- - 129,061
- - 222,832
392,291 - (29,267,371)
392,291$ -$ (29,044,539)$
Pension
Obligation
Governmental Activities - Internal Service Funds
Payroll
183
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Interdepartmental charges 4,923,041$ 4,367,807$ 2,002,539$ 23,045$ Miscellaneous 96,116 - - - Total Operating Revenues 5,019,157 4,367,807 2,002,539 23,045 Operating Expenses:
Personnel services - 1,894,367 1,141,059 - Operations - 2,478,988 898,919 23,045 Claims expense 20,294,385 275 - - Depreciation expense - 16,242 23,789 - Insurance - 76,054 34,772 - Total Operating Expenses 20,294,385 4,465,926 2,098,539 23,045 Operating Income (Loss) (15,275,228) (98,119) (96,000) - Nonoperating Revenues:
Investment income (40,727) (3,399) (2,873) - Gain (loss) on disposal of capital assets - 800 - - Total Nonoperating Revenues (40,727) (2,599) (2,873) - Income (Loss) Before Transfers (15,315,955) (100,718) (98,873) - Transfers in 95,577 - - - Transfers out - - - - Changes in Net Position (15,220,378) (100,718) (98,873) - Net Position:
Beginning of Year (6,639,975) (4,675,850) (2,641,506) (59,530) End of Fiscal Year (21,860,353)$ (4,776,568)$ (2,740,379)$ (59,530)$ Governmental Activities - Internal Service Funds
Self-Insurance
Equipment
Maintenance
Information
Technology
Printing/Mail
Services
184
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Interdepartmental charges
Miscellaneous
Total Operating Revenues
Operating Expenses:
Personnel services
Operations
Claims expense
Depreciation expense
Insurance
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues:
Investment income
Gain (loss) on disposal of capital assets
Total Nonoperating Revenues
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position:
Beginning of Year
End of Fiscal Year
Totals
32,281,370$ 3,421,057$ 47,018,859$
- - 96,116
32,281,370 3,421,057 47,114,975
31,889,079 - 34,924,505
- - 3,400,952 - - 20,294,660 - - 40,031
- - 110,826
31,889,079 - 58,770,974
392,291 3,421,057 (11,655,999)
- - (46,999)
- - 800
- - (46,199)
392,291 3,421,057 (11,702,198)
- - 95,577
- (3,421,057) (3,421,057)
392,291 - (15,027,678)
- - (14,016,861) 392,291$ -$ (29,044,539)$
Payroll
Pension
Obligation
Governmental Activities - Internal Service Funds
185
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:
Cash received from customers and users 5,019,157$ 4,367,807$ 1,996,402$ 23,045$ Cash paid to suppliers for goods and services (4,785,289) (2,555,081) (937,267) (17,785)
Cash paid for general and administrative expenses (758,094) (4,446,715) (2,847,156) - Net Cash Provided (Used) by Operating Activities (524,226) (2,633,989) (1,788,021) 5,260 Cash Flows from Non-Capital
Financing Activities:
Cash transfers out - - - - Cash transfers in 95,577 - - - Repayment made to other funds - - - (5,260) Proceeds from pension obligation bonds 895,276 2,833,670 1,897,327 - Net Cash Provided (Used) by
Non-Capital Financing Activities 990,853 2,833,670 1,897,327 (5,260)
Cash Flows from Capital
and Related Financing Activities:
Proceeds from sales of capital assets - 800 - - Net Cash Provided (Used) by
Capital and Related Financing Activities - 800 - - Cash Flows from Investing Activities:
Interest received (21,545) (3,399) (2,873) - Net Cash Provided (Used) by
Investing Activities (21,545) (3,399) (2,873) - Net Increase (Decrease) in Cash
and Cash Equivalents 445,082 197,082 106,433 - Cash and Cash Equivalents at Beginning of Year 10,199,886 291,201 239,794 - Cash and Cash Equivalents at End of Year 10,644,968$ 488,283$ 346,227$ -$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) (15,275,228)$ (98,119)$ (96,000)$ -$ Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation - 16,242 23,789 - (Increase) decrease in accounts receivable - - (6,137) - (Increase) decrease in inventories - 2,132 - - (Increase) decrease in deferred outflows
of resources related to pensions (975,996) (2,704,934) (1,836,800) - (Increase) decrease in deferred outflows
of resources related to other postemployment benefits (30,581) (115,070) (60,458) - Increase (decrease) in accounts payable (62,293) (1,896) (3,576) 5,260 Increase (decrease) in payroll payable (7,392) (32,757) (15,803) - Increase (decrease) in claims and judgments 15,571,389 - - - Increase (decrease) in compensated absences - 3,338 - - Increase (decrease) in net other postemployment benefit liability 107,009 216,947 119,455 - Increase (decrease) in net pension liability 161,366 150,971 125,122 - Increase (decrease) in deferred inflows
of resources related to pensions (1,593) (8,719) (5,592) - Increase (decrease) in deferred inflows
of resources related to other postemployment benefits (10,907) (62,124) (32,021) - Total Adjustments 14,751,002 (2,535,870) (1,692,021) 5,260 Net Cash Provided (Used) by
Operating Activities (524,226)$ (2,633,989)$ (1,788,021)$ 5,260$ Governmental Activities - Internal Service Funds
Self-Insurance
Equipment
Maintenance
Information
Technology
Printing/Mail
Services
186
Attachment No.1
CITY OF POMONA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid for general and administrative expenses
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out
Cash transfers in
Repayment made to other funds
Proceeds from pension obligation bonds
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Proceeds from sales of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in deferred outflows
of resources related to pensions
(Increase) decrease in deferred outflows
of resources related to other postemployment benefits
Increase (decrease) in accounts payable
Increase (decrease) in payroll payable
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Increase (decrease) in net other postemployment benefit liability Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows
of resources related to pensions
Increase (decrease) in deferred inflows
of resources related to other postemployment benefits
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Totals
32,281,370$ 3,421,057$ 47,108,838$
9,954 - (8,285,468)
(31,889,079) - (39,941,044)
402,245 3,421,057 (1,117,674)
- (3,421,057) (3,421,057)
- - 95,577
- - (5,260)
- - 5,626,273 - (3,421,057) 2,295,533
- - 800
- - 800
- - (27,817)
- - (27,817)
402,245 - 1,150,842
- - 10,730,881 402,245$ -$ 11,881,723$
392,291$ 3,421,057$ (11,655,999)$
- - 40,031
- - (6,137)
- - 2,132
- - (5,517,730) - - (206,109) 9,954 - (52,551)
- - (55,952)
- - 15,571,389 - - 3,338
- - 443,411
- - 437,459
- - (15,904)
- - (105,052) 9,954 - 10,538,325
402,245$ 3,421,057$ (1,117,674)$
Pension
Obligation
Governmental Activities - Internal Service Funds
Payroll
187
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188
Attachment No.1
CUSTODIAL FUNDS
The Custodial Funds account for assets held by the City for governments, or individ uals. These funds include receipts and disbursements of funds for the debt service activity of the 1911 Act assessment districts, debt services activi ty related to debt without gover nment commitment for various assessment district improvements, as well as monitoring of the local watershed as required by the MS4 permit as a lead agency of the East San Gabriel Valley Watershed Management Group. 189
Attachment No.1
CITY OF POMONA
ALL CUSTODIAL FUNDS
JUNE 30, 2021
Total
Assets:
Cash and investments 16,921$ -$ 16,921$ Deposits 284 - 284 Due from other governments 57,798 - 57,798 Total Assets 75,003 - 75,003 Liabilities:
Accounts payable 74,719 - 74,719 Payable to trustee 891,004 - 891,004 Total Liabilities 965,723 - 965,723 Net Position:
Restricted for organizations and other governments (890,720) - (890,720) Total Net Position (890,720)$ -$ (890,720)$ East San
Gabriel Valley
Water
Management
COMBINING STATEMENT OF FIDUCIARY NET POSITION
Assessment
Districts
190
Attachment No.1
CITY OF POMONA, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30, 2021
Totals
Additions:
Investment earnings:
Interest 1,086$ (69)$ 1,017$ Net investment earnings 1,086 (69) 1,017 Total Additions 1,086 (69) 1,017 Deductions:
Refunds of contributions 907,925 -
Payments to city - 62,412 62,412 Total Deductions 907,925 62,412 62,412 Net Increase (Decrease) in Fiduciary Net Position (906,839) (62,481) (969,320) Net Position:
Beginning of fiscal year, as originally reported - - -
Restatements 16,119 62,481 78,600
Beginning of fiscal year, as restated 16,119 62,481
78,600
Net Position - End of the Year (890,720)$ -$ (890,720)$ East San
Gabriel Valley
Water
Management
Assessment
Districts
191
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Attachment No.1
67$7,67,&$/6(&7,21
193
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Attachment No.1
STATISTICAL SECTION (UNAUDITED)
This part of the City of Pomona’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Contents Page
Financial Trends – These schedules contain information to help the reader to understand how the City’s financial performance and well-being have changed over time.
Net Position by Component .......................................................................................................... 197 Changes in Net Position ............................................................................................................... 198 Fund Balances – Governmental Funds ........................................................................................ 200 Changes in Fund Balances – Governmental Funds ..................................................................... 201 Governmental Activities Tax Revenues by Source ...................................................................... 202
Revenue Capacity – These schedules contain information to help the reader assess the City’s most significant own-source revenue.
Assessed Value and Estimated Actual Value of Taxable Property .............................................. 203 Property Tax Rates – Direct and Overlapping Governments ....................................................... 204 Principal Property Taxpayers ....................................................................................................... 205 Top 25 Sales Tax Generators ...................................................................................................... 206 Property Tax Levies and Collections ............................................................................................ 207
Debt Capacity – 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.
Ratios of Outstanding Debt by Type............................................................................................. 208 Ratios of General Bonded Debt Outstanding ............................................................................... 209 Direct and Overlapping Debt ........................................................................................................ 210 Legal Debt Margin Information ..................................................................................................... 211 Pledged Revenue Coverage – Water ........................................................................................... 212 Pledged Revenue Coverage – Sewer .......................................................................................... 213
Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Demographic and Economic Statistics ......................................................................................... 214 Principal Employers ...................................................................................................................... 215
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
Authorized Full-Time City Employees by Function ....................................................................... 216 Operating Indicators by Function .................................................................................................. 217 Capital Asset Statistics by Function ............................................................................................. 218 195
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Attachment No.1
197
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198
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199
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200
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201
Attachment No.1
City of Pomona Schedule 5
Governmental Activities Tax Revenue by Source
Last Fiscal Ten Years (in thousands of dollars)
Fiscal Year Motor Property Utility
Ended Property Sales Vehicle Transient Transfer Users Business June 30 Tax Tax License Occupancy Tax Franchise Tax Licenses Other Total 2012 41,755$ 10,805$ 84$ 1,359$ 1,112$ 5,961$ 17,375$ 3,065$ 70$ 81,586$ 2013 32,144 12,355 69 1,474 1,476 5,672 16,941 3,123 20 73,274 2014 33,631 12,040 - 1,561 1,430 6,029 17,312 3,172 13 75,188 2015 36,409 13,545 68 1,568 1,581 6,563 17,466 3,347 59 80,606 2016 33,717 15,171 61 1,724 1,860 6,426 16,419 3,409 139 78,926 2017 34,581 18,135 70 2,102 1,924 6,419 15,805 3,830 - 82,866 2018 35,565 18,913 82 2,184 1,875 6,630 16,455 3,763 3 85,470 2019 39,212 22,239 74 2,514 1,790 4,921 15,897 4,207 2 90,856 2020 38,635 30,408 122 2,431 1,430 4,942 15,562 4,379 2 97,911 2021 44,131 34,341 114 2,182 2,060 5,135 16,543 4,173 5 108,684 202
Attachment No.1
City of Pomona Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands of dollars)
Estimated Factor of
Fiscal Year Less: Total Taxable Total Actual Taxable
Ended Residential Commercial Industrial Unitary Unsecured Tax Exempt Assessed Direct Tax Taxable Assessed June 30 Property Property Property Other Values Property Property (1) Value Rate (2) Value (3) Value (3) 2012 5,571,482 998,040 1,226,077 905,772 655 360,777 652,301 8,410,502 0.20375 8,637,468 1.026986 2013 5,679,812 1,019,770 1,178,211 884,418 655 350,896 678,279 8,435,483 0.21734 9,148,296 1.084502 2014 5,932,623 1,059,762 1,233,924 869,787 374 372,621 647,264 8,821,827 0.18781 11,575,340 1.312125 2015 6,396,012 1,070,267 1,261,918 942,134 - 379,640 814,565 9,235,406 0.19079 12,340,257 1.336190 2016 6,713,231 1,111,554 1,325,414 305,936 - 383,971 818,224 9,840,106 0.22197 10,658,330 1.339440 2017 7,072,432 1,194,489 1,517,293 367,221 - 368,869 811,349 10,520,304 0.22256 11,411,995 1.336080 2018 7,453,284 1,246,745 1,556,649 353,138 - 409,305 948,940 11,019,121 0.21967 11,968,061 1.384510 2019 7,892,684 1,285,252 1,690,716 373,330 - 414,091 960,220 11,656,073 0.22089 12,616,293 1.387900 2020 8,426,331 1,351,346 1,751,496 379,670 - 440,437 990,772 12,349,280 0.22824 13,340,052 1.445350 2021 8,880,275 1,442,903 1,862,189 398,369 - 463,116 1,041,931 13,046,852 0.22818 14,088,783 1.374350 Source: Los Angeles County Assessor data, MuniServices, LLC (for years 2007 to 2015), HdL for the 2016 to 2021 years.
Prior Year values have been restated for consistency and compliance with GASB No. 44 guidelines (1) Exemptions are exclusive of home owner exemptions.
(2) Total direct tax rate is the voter approved taxes over and above the 1% Proposition 13 tax for TRA 007-790. (3) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. 203
Attachment No.1
City of Pomona Schedule 7
Property Tax Rates - Direct and Overlapping Governments (Rate per $100 of assessed value)
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic City and County Levy:
City of Pomona 0.233504 0.233504 0.233504 0.233504 0.233504 0.233504 0.233504 0.233504 0.233504 0.233504 Other taxing agencies 0.766496 0.766496 0.766496 0.766496 0.766496 0.766496 0.766496 0.766496 0.766496 0.766496 Total 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments:
County 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Unified Schools 0.173636 0.184882 0.164074 0.165993 0.297990 0.284510 0.335000 0.337670 0.372320 0.304690 Community College 0.026415 0.028957 0.020231 0.021294 0.037950 0.048060 0.046000 0.046730 0.069530 0.066160 Flood Control 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Metro Water District 0.003700 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 Total 0.203751 0.217339 0.187805 0.190787 0.339440 0.336070 0.384500 0.387900 0.445350 0.374350 Total Tax Rate 1.203751 1.217339 1.187805 1.190787 1.339440 1.336070 1.384500 1.387900 1.445350 1.374350 Source: Los Angeles County Auditor/Controller data, MuniServices, LLC (for years 2007 to 2015), HdL for the 2016 to 2021 years. 2007-08 and prior: prior year ACFR reports
For presentation purposes, TRA 007-790 is represented
204
Attachment No.1
City of Pomona Schedule 8
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Value Valuation Rank Value
Crest Financing LP 92,314,589$ 1 0.71% 64,638,162$ 1 0.77% 1271 W Sunset LLC 90,347,076 2 0.69%
Rexford Industrial 1601 Mission LLC 87,780,000 3 0.67% Los Angeles County Fair Associates 71,670,205 4 0.55% 41,802,661 3 0.50% Olive Ridge Gardens 46,917,310 5 0.36%
Rexford Industrial Realty LP 44,776,230 6 0.34% BPP Pacific Industrial CA REIT Owner 34,461,666 7 0.26% CMC Dragon LP 32,678,181 8 0.25%
Altagas Pomona Energy Storage Inc 32,671,175 9 0.25% Pomona II LLC 31,735,150 10 0.24%
KTR Pomona LLC 55,004,392 2 0.65%
Realty Associates Fund VII LP 38,199,953 4 0.45% Ripon Cogeneration LLC 28,806,037 5 0.34%
LBA Realty Fund III-Company LLC 28,744,465 6 0.34% Coca-Cola Co 28,321,265 7 0.34%
Realty Associates Iowa Corp 26,624,610 8 0.32%
CH Realty III Pomona LP 26,400,000 9 0.31%
F D S Manufacturing Co 22,577,763 10 0.27%
Source: Los Angeles County Assessor data, HdL, Coren & Cone 20122021
205
Attachment No.1
City of Pomona Schedule 9
Top 25 Sales Tax Generators
in Alphabetical Order
Current Fiscal Year and Ten Years Ago
2021 2012
Axalta Coatings Systems All Star KIA
Chevron Extra Mile Cardenas Markets
Cicero Brothers Enterprises Construction Hardware
dd's Discounts Cornucopia Foods
Ferguson Enterprises CVS Pharmacy
Food 4 Less Envirokenetics
Global Rental Co Fairplex Chevron
HD Supply Home Improvement Solutions Ferguson Enterprises Home Depot Food 4 Less
Hub Construction Specialties Garys Chevron
Huntington Hardware Global Rental Co
In N Out Burger Hd Supply Repair & Remodeling
Marco Equipment Home Depot
Phenix Enterprises Marco Equipment
Plug in Auto Mega RV
Pomona Kia Mike Thompsons RV
Rohr Steel Phenix Enterprises
Roofline Supply & Delivery Pomona 76
Ryder Vehicle Sales Rohr Steel
Shell Superior Duct Fabrication
Superior Duct Fabrication Tesoro Refining & Marketing
Target Towne Arco
USA Gas United Oil
Walmart Supercenter Walmart Supercenter
Winco Foods 57 West Coast Petroleum Services
Source: HdL
206
Attachment No.1
City of Pomona Schedule 10
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Delinquent
Year Taxes Levied Tax
Ended for the Percentage Collections Percentage
June 30 Fiscal Year Amount of Levy by levy year Amount of Levy 2012 12,329,907$ 12,113,998$ 98.2% 377,392$ 12,491,390$ 101.3% 2013 12,528,234 12,434,130 99.2% 349,337 12,783,467 102.0% 2014 13,596,705 13,442,112 98.9% 637,832 14,079,944 103.6% 2015 14,612,641 14,510,121 99.3% 613,771 15,123,892 103.5% 2016 13,843,856 13,691,612 98.9% 230,228 13,921,840 100.6% 2017 14,758,820 14,939,800 101.2% 106,993 15,046,793 102.0% 2018 15,617,055 15,448,699 98.9% 285,086 15,733,785 100.7% 2019 15,870,148 16,259,418 102.5% 525,464 16,784,882 105.8% 2020 17,088,316 17,287,322 101.2% 382,279 17,669,601 103.4% 2021 19,095,038 18,730,179 98.1% 747,742 19,477,921 102.0% Source: Los Angeles County Auditor/Controller, City of Pomona Finance Department Collected within the
Fiscal Year of the Levy Total Collections to Date
207
Attachment No.1
208
Attachment No.1
City of Pomona Schedule 12
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years (dollars in thousands, except per capita) Percentage
Fiscal Year Tax Pension Certificates Restricted of Actual Ended Revenue Allocation Obligation of for Net Bonded Value Per June 30 Bonds Bonds Ref Bonds Participation Total Debt Service * Debt of Property (1) Capita (2) 2012 43,836 $ - $ 44,299$ 12,333$ 100,468$ 51,855$ 48,613$ 1.2% 670 2013 42,446 - 44,401 12,012 98,859 50,439 48,420 1.2% 655 2014 41,110 - 44,414 11,682 97,206 49,229 47,977 1.1% 640 2015 39,564 - 44,334 11,336 95,234 47,845 47,389 1.0% 625 2016 37,938 - 44,152 10,971 93,061 55,810 37,251 0.9% 598 2017 84,783 - 7,594 - 92,377 65,473 26,904 0.9% 545 2018 82,605 - 4,013 - 86,618 67,771 18,847 0.8% 514 2019 79,159 - 3,761 - 82,920 65,249 17,671 0.7% 519 2020 75,670 - 3,492 - 79,162 63,465 15,697 0.6% 511 2021 72,128 - 223,098 - 295,226 36,596 258,630 2.3% 1,951 * Includes bond reserves and unspent bond proceeds.
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Schedule 6 for property value data.
(2) Population data can be found in Schedule 17.
General Bonded Debt Outstanding
209
Attachment No.1
City of Pomona Schedule 13
Direct and Overlapping Debt
Current Year and Nine Years Ago
Total Debt
OVERLAPPING DEBT 06/30/2021: 6/30/2021 % Applicable (1) Debt 06/30/2021 Metropolitan Water District 13,101,783$ 0.819% 107,326$ Citrus Community College District 95,504,555 1.173% 1,120,298 Mount San Antonio Community College District 696,106,006 12.410% 87,447,844 Bonita Unified School District 120,793,390 0.204% 243,648 Claremont Unified School District 71,665,000 5.989% 4,266,359 Pomona Unified School District 368,429,533 76.955% 284,531,162 Total Overlapping Debt 1,365,600,267 377,716,637 Obligations Under Capital Leases 1,220,447 100.000% 1,220,447 Notes Payable 450,888 100.000% 450,888 Revenue Bonds 72,128,082 100.000% 72,128,082 Pension Obligation Refunding Bonds 223,098,299 100.000% 223,098,299 Accreted Interest 4,846,029 100.000% 4,846,029 Total Direct Debt 301,743,745 301,743,745 TOTAL DIRECT AND OVERLAPPING DEBT 1,667,344,012$ 679,460,382$ Total Debt
OVERLAPPING DEBT 06/30/2012: 6/30/2012 % Applicable (1) Debt 06/30/2012 Metropolitan Water District 94,031,705$ 0.641% 603,052$ Citrus Community College District 79,935,302 1.279% 1,022,105 Mount San Antonio Community College District 157,840,946 12.045% 19,012,011 Bonita Unified School District 105,222,395 0.073% 77,199 Claremont Unified School District 33,800,000 6.303% 2,130,279 Pomona Unified School District 206,818,334 75.345% 155,827,408 Total Overlapping Debt 677,648,682 178,672,054 TOTAL OVERLAPPING DEBT 677,648,682$ 178,672,054$ Source: HdL, and prior year ACFR
1) Percentage of overlapping agency's assessed valuation located within the boundaries of the city. 210
Attachment No.1
211
Attachment No.1
City of Pomona Schedule 15
Pledged Revenue Coverage - Water
Last Ten Fiscal Years
Fiscal Year Less Net Rate
Ended Water Operating Available Stabilization Net Revenue June 30 Revenue (1) Expenses (2) Revenue Fund (3) Principal Interest Total Coverage 2012 27,735,841 18,961,467 8,774,374 - 1,140,000 5,041,155 6,181,155 1.42 2013* 30,638,933 20,160,007 10,478,926 - 1,190,000 5,149,571 6,339,571 1.65 2014* 31,680,312 21,494,289 10,186,023 - 1,240,000 5,098,994 6,338,994 1.61 2015* 29,925,501 19,626,529 10,298,972 - 1,295,000 5,046,289 6,341,289 1.62 2016* 28,964,078 18,073,465 10,890,613 - 1,350,000 4,991,195 6,341,195 1.72 2017* 31,404,614 21,474,204 9,930,410 - 1,415,000 4,922,961 6,337,961 1.57 2018* 34,749,625 24,423,625 10,326,000 5,130,000 1,925,000 3,197,357 5,122,357 2.02 2019* 33,379,437 21,195,818 12,183,619 5,226,026 1,815,000 3,316,618 5,131,618 2.37 2020* 33,775,857 21,486,313 12,289,544 5,290,421 1,840,000 3,285,745 5,125,745 2.40 2021 37,725,544 11,401,857 26,323,687 5,291,593 1,875,000 3,248,743 5,123,743 5.14 Notes: Details regarding the City's Water Fund outstanding debt can be found in the notes to the financial statements. (1) Water Revenue consists of Charges for services, Interest Revenue, Intergovernmental, and Sale of Surplus Water. (2) Operating expenses does not include depreciation or amortization. (3)
Debt Service
*Information has been restated for consistency and compliance with GASB No. 44 and Continued Disclosure Reporting of debt coverage Water Revenue Bonds
During FY2018, the City established a Rate Stabilization Fund (RSF) equal to annual debt service payments.Transfers from the RSF may be made to meet annual debt service expenses or to comply with debt service coverage. 212
Attachment No.1
City of Pomona Schedule 16
Pledged Revenue Coverage - Sewer
Last Ten Fiscal Years
Fiscal Year Less Net Rate
Ended Sewer Operating Available Stabilization Net Revenue June 30 Revenue (1) Expenses (2) Revenue Fund (3) Principal Interest Total Coverage 2012 4,570,662 2,445,349 2,125,313 - 340,000 1,290,216 1,630,216 1.30 2013 4,497,533 2,511,043 1,986,490 - 355,000 1,277,020 1,632,020 1.22 2014* 4,854,056 2,187,639 2,666,417 - 370,000 1,263,530 1,633,530 1.63 2015* 4,838,316 2,203,618 2,634,698 - 385,000 1,247,875 1,632,875 1.61 2016* 4,580,735 2,014,093 2,566,642 - 400,000 420,703 820,703 3.13 2017* 4,330,205 2,146,411 2,183,794 - 175,000 863,174 1,038,174 2.10 2018* 4,435,747 2,331,657 2,104,090 1,453,169 305,000 591,009 896,009 2.35 2019* 5,048,618 2,779,101 2,269,517 1,480,198 555,000 842,546 1,397,546 1.62 2020* 5,926,012 1,094,541 4,831,471 1,498,437 565,000 884,376 1,449,376 3.33 2021 6,645,052 262,044 6,383,008 1,498,768 580,000 872,254 1,452,254 4.40 Notes: Details regarding the City's Sewer Fund outstanding debt can be found in the notes to the financial statements. (1)
(2)
(3)
Debt Service
Operating Revenues represent charges to customers for sales and services. Charges for services excludessewer connection fees (also referred to as development impact fees), which are included in Miscellaneous Operating Expenses include cost of sales and services and administrative expenses and excludes depreciation on capital assets.
During FY2018, the City established a Rate Stabilization Fund (RSF) equal to annual debt service payments.Transfers from the RSF may be made to meet annual debt service expenses or to comply with debt service coverage.
Sewer Revenue Bonds
*Information has been restated for consistency and compliance with GASB No. 44 and Continued Disclosure Reporting of debt coverage 213
Attachment No.1
City of Pomona Schedule 17
Demographic and Economic Statistics
Last Ten Fiscal Years
Per
Personal Capita
Fiscal Income (2) Personal Median Public School Unemployment Year Population (1) (in thousands) Income (2) Age Enrollment (3) Rate (4) 2012 149,950 2,533,677 16,897 28.1 27,737 13.2% 2013 150,942 2,593,902 17,185 29.5 27,186 12.2% 2014 151,713 2,392,059 15,767 30.2 26,264 11.0% 2015 152,419 2,659,712 17,450 29.9 25,311 7.9% 2016 155,604 2,575,663 16,552 30.4 24,673 7.5% 2017 155,306 2,664,317 17,155 30.9 24,314 5.9% 2018 155,687 2,722,806 17,488 31.0 23,635 5.9% 2019 154,310 2,885,143 18,697 31.5 23,806 5.1% 2020 154,817 3,290,944 21,257 32.2 22,766 14.7% 2021 151,319 3,235,579 21,382 32.2 21,810 13.4% Source: 2008-09, 2009-10, 2011-12, 2012-13, 2013-14, and 2014-15: MuniServices, LLC Source: 2010-11, 2008-09 and prior: prior year previous ACFR reports.
Source: 2015-16, 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 : HdL (1) Population Projections are provided by California Department of Finance Projections. (2) Income Data is provided by the United States Census Data and is adjusted for inflation. (3) Public School Enrollment reflects the total number of students enrolled in Pomona Unified School District only, per
school district data.
(4) Unemployment rates are provided by the Employment Development Department, Bureau of Labor and Statistics Department.
214
Attachment No.1
City of Pomona Schedule 18
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Pomona Valley Hospital 3,731 1 5.5% 2,980 1 5.1%
Pomona Unified School District 3,310 2 4.8% 2,961 2 5.1% California State Polytechnic University 2,675 3 4.3% 2,154 3 3.7% City of Pomona 576 4 0.9% 711 5 1.2%
Laretta LLC 400 5 0.7%
Inland Valley Care & Rehab 320 6 0.5% 282 10 0.5%
Tri City Mental Health Center 204 7 0.3%
Home Depot 188 8 0.3%
Lyttles Fleet Maintenance, Inc 154 9 0.3%
Circle Wood Services Inc. 138 10 0.2%
Dow Hydraulic Systems 120 11 0.2%
Parktree Community Health Center 116 12 0.2%
Railpros, Inc. 115 13 0.2%
Stiiizy Pomona 108 14 0.2%
Anthem Blue Cross 100 15 0.2%
McDonald's 976 4 1.7%
Casa Colina Rehabilitation Center 710 6 1.2%
Lanterman Developmental Center 596 7 1.0%
Verizon 376 8 0.6%
County of Los Angeles Dept. of Social Services 320 9 0.5% First Transit 250 11 0.4%
Lloyd's Material Supply 236 12 0.4%
Walmart Stores Inc 235 13 0.4%
Hayward Industries Inc. 199 14 0.3%
Hamilton Sundstrand 175 15 0.3%
Consolidated Foundries
20122021
215
Attachment No.1
City of Pomona Schedule 19
Authorized Full-Time City Employees by Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government 20 19 19 20 20 20 20 20 20 18 Support Services 32 32 32 31 32 33 41 46 46 49 Police 270 269 270 268 270 271 271 280 280 282 Public Works 184 170 169 170 106 106 93 96 96 96 Water/Wastewater - - - - 68 68 74 75 75 75 Community Development 40 38 40 - - - - - - - Dev & Neighborhood Svcs - - - 47 47 48 48 53 53 54 Utility Services - - - - - - - - - - Community Services and
Library 21 11 9 2 2 2 2 1.6 1.6 1.6 Total 567 539 539 538 545 548 549 571.6 571.6 575.6 Various departments were consolidated in 2009-2010
Source: City of Pomona Finance Department
216
Attachment No.1
City of Pomona Schedule 20
Operating Indicators by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Felony Arrests 2,713 3,145 3,105 2,726 2,441 2,142 2,049 2,270 1,903 1,123 Misdemeanor Arrests 5,780 5,821 5,876 6,424 7,446 6,825 6,067 6,228 4,463 2,907 Parking Citations 21,462 36,718 30,145 30,788 31,807 32,107 27,959 26,214 21,237 14,510 Moving Citations 10,452 9,179 9,791 9,153 8,898 7,157 6,714 6,884 6,282 38,505 Fire:
Incidents 11,807 12,447 13,675 15,289 16,381 16,901 16,367 16,340 16,544 17,025
Urban development:
Residential building permits
issued 720 622 722 925 294 969 3,476 660 788 1,765 Inspections 5,645 4,054 6,050 5,536 6,236 7,947 11,764 11,723 10,642 7,028 Asphalt repaired (square feet) 9,222 19,400 36,068 84,879 84,649 95,104 78,765 84,516 79,420 79,005 Sidewalk repaired (square feet) 12,415 7,285 1,500 1,750 2,279 2,997 7,001 99,111 12,568 18,743 Community services:*
Community Center participants 572,270 520,157 501,727 - - - - - - - Senior Program participants 121,165 108,086 100,703 44,768 44,228 59,967 59,065 48,229 51,836 98,517 Youth program participants 403,617 362,217 337,180 56,728 52,075 33,579 40,917 37,696 24,769 2,451 Other program participants 42,343 49,854 66,743 32,480 26,126 18,901 16,919 30,768 21,858 3,408 Sports participants 311,201 309,795 366,978 168,034 182,529 154,670 144,680 120,002 66,685 339 Facility rentals 547 635 687 2,090 1,815 2,183 1,644 1,679 1,430 1 Library:
Program attendance (all programs) 8,568 1,770 2,578 2,940 3,077 3,069 3,058 2,623 2,010 147 Literacy instruction (hours) 749 - - - - - - - - - Water:
New connections 7 17 9 12 21 12 13 12 19 3 Average daily consumption 17,865 18,670 19,615 17,905 14,450 15,084 20,243 18,471 13,502 16,740 (thousands of gallons)
Refuse:
Curbside Collection (in tons) 36,472 37,246 36,593 35,474 36,682 37,934 37,257 40,793 47,251 52,206 Recycle Collection (in tons) 6,801 6,896 6,907 7,218 6,544 6,759 7,083 4,722 4,799 7,216 Greenwaste Collection (in tons) 13,234 12,510 11,934 11,904 13,480 13,699 13,143 12,618 11,824 11,844 Source: Various City Departments
*Due to staffing changes in Community Services, the methodology for counting service delivery was changed beginning 2015. 217
Attachment No.1
City of Pomona Schedule 21
Capital Asset Statistics by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 42 58 51 51 46 44 45 44 44 44
Fire:
Fire stations 8 8 8 8 8 8 8 8 8 8
Public works:
Streets (miles) 388 388 388 388 388 388 388 388 388 388 Streetlights 7,645 7,701 7,721 7,725 7,725 7,725 7,725 7,725 7,725 7,725 Traffic signals 161 162 164 164 169 169 169 169 169 169 Community services:
Parks 26 26 26 26 26 26 27 27 27 28
Park Acreage 221 221 221 221 221 221 221 221 221 222
Baseball fields 14 14 14 14 14 14 14 14 14 14
Soccer fields 17 17 17 17 17 17 17 17 17 11
Basketball courts 22 22 22 22 22 22 22 22 22 22
Tennis courts 9 9 9 9 9 9 9 9 9 9
Community centers 14 14 14 14 14 14 14 14 14 14
Libraries 1 1 1 1 1 1 1 1 1 1
Water:
Water mains (miles) 457 457 457 457 457 457 457 457 488 428 Sewer:
Sanitary sewers (miles) 305 305 305 305 305 305 305 305 305 300 Storm drains (miles) 120 120 120 120 120 120 120 120 120 70 Source: Various City Departments
218
Attachment No.1
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Pomona, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pomona, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Ci ty’s basic financial statements, and have issued our report thereon dated January 6, 2022.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that ther e is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be pr evented, or detected and cor rected on a timely basis. A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in internal control that might be material weaknesses or, significant defic iencies. Given these limitation s, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance wit h certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are require d to be reported under Government Auditing Standards.
Attachment No.1
To the Honorable Mayor and Members of the City Council
City of Pomona, California
Purpose of this Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report i s an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Brea, California
January 6, 2022
220
Attachment No.1