Redlands City Council
February 21, 2023

2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of City’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedules of Contributions – Pension Plans, and Schedule of Changes in Total OPEB Liability and Related Ratios, as listed in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Redlands Regular Meeting of 02-21-23 Page 273 of 786
To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California

3 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 Fund Financial Statements and Budgetary Comparison 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Budgetary Comparison 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 and Statistical Sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2022, on our consideration of 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 scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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 City’s internal control over financial reporting and compliance.

Santa Ana, California
December 21, 2022
Redlands Regular Meeting of 02-21-23 Page 274 of 786
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Redlands Regular Meeting of 02-21-23 Page 275 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
5 The information contained in the Management’s Discussion and Analysis (MD&A) introduces the basic financial statements and provides an analytical overview of the City of Redlands financial activities and performance for the fiscal year ended June 30, 2022. Please read the MD&A in conjunction with the transmittal letter and financial statements identified in the accompanying table of contents.

Using the Accompanying Financial Statements
This annual ACFR consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short-term as well as what remains for future spending.

Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.

OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for nonmajor governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City:
 The first two statements are government-wide financial statements that provide both long-term and short-term information about the City’s overall financial status.
 The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.  The governmental funds statements tell how general government services like public safety were financed in the short-term as well as what remains for future spending.  Proprietary fund statements offer short- and long-term financial information about the activities the government operates like businesses, such as the water system.  Fiduciary fund statements provide information about fiduciary relationships – like the custodial funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong.

The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that provides additional financial and budgetary information.

Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.

Redlands Regular Meeting of 02-21-23 Page 276 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
6 Figure A-1
Major Features of the City’s Government-wide and Fund Financial Statements Fund Statements
Government-wide
Statements
Governmental Funds Proprietary Funds Fiduciary Funds
Scope Entire City
government (except
fiduciary funds) and
the City’s component
units
The activities of the
City that are not
proprietary or fiduciary
Activities the City
operates similar to
private businesses
Instances in which the
City is the trustee or
agent for someone
else’s resources

Required financial
statements
 Statement of net
position
 Statement of
activities
 Balance sheet
 Statement of
revenues,
expenditures and
changes in fund
balances
 Statement of net
position
 Statement of
revenues,
expenses and
changes in net
position
 Statement of cash
flows
 Statement of
fiduciary net
position
 Statement of
changes in
fiduciary net
position

Accounting basis and
measurement focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and current
financial resources
focus
Accrual accounting
and economic
resources focus
Accrual accounting
and economic
resources focus

Type of asset, deferred
outflow of resources,
deferred inflow of
resources, and liability
information
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
Only assets and
deferred outflows of
resources expected to
be used up and
liabilities and deferred
inflows of resources
that come due during
the year or soon
thereafter; no capital
assets or long-term
debt included
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both shortterm and long-term

Type of financial
inflow and outflow
information
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
Revenues for which
cash is received during
or soon after the end of
the year; expenditures
when goods or services
have been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
Redlands Regular Meeting of 02-21-23 Page 277 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
7 Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. One of the most important questions asked about the City’s finances is, “Is the City, as a whole, better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and its changes. You can think of the City’s net position – the difference between assets, deferred outflows of resources, deferred inflows of resources and liabilities – as one way to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net position may be one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.

In the Statement of Net Position and the Statement of Activities, City services are divided into two kinds of activities:
 Governmental activities – Most of the City’s basic services are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities.  Business-type activities – The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds.

Reporting the City’s Most Significant Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants or other money. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.  Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed current-term view of the City’s general government operations and the basic services it provides.

Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation on the page following the fund financial statements.  Proprietary funds – When the City charges customers for the services it provides – whether to outside customers or to other units of the City – these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are part of the business-type activities we report in the government-wide statements but provide more detail and additional information for proprietary funds, such as statement of cash flows. The City’s internal service funds (the other component of proprietary funds) reports activities that provide supplies and services internally to other City departments and programs.

Redlands Regular Meeting of 02-21-23 Page 278 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
8 Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Statement of Net Position
The following is a condensed Statement of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021, which allows for analysis of the City’s net position as a whole. .

Table 1
Net position over time may serve as a useful indicator of a government’s financial position, however it may change dramatically year-to-year as a result of changes in accounting practices and assumptions. Table 1 shows that the net position of government-wide activities increased by approximately $93.4 million or 16.6%, from $562,126,786 in 2021 to $655,477,017 in 2022.

Governmental activities net position increased significantly by 23.7%, from $351,339,962 at June 30, 2021 to $434,611,881 at June 30, 2022. Consistent with its prior year increase, the City’s net position for business-type activities increased by 4.8% from $210,768,824 in 2021 to $220,865,136 in 2022. For governmental activities, the increase of roughly $83.3 million in net position is mostly attributable to a significant increase total assets of $115 million, offset by a corresponding increase in total liabilities of only $14.3 million, contributing a gain in net position of $100.7 million. That positive impact on net position was offset by increase in lease-related, pension & OPEB deferred inflows of $48.3 million, and an increase in pension & OPEB deferred outflows of $30.9 million, for a net negative effect of $17.4 million. For the business type activities, the growth in total net position of 4.8% (or $10.1 million) is attributable to an increase in total assets combined with a decrease in total liabilities for a positive impact of $11.2 million, as well as an increase in pension & OPEB deferred outflows of $8.4 million, offset with a decrease in lease-related, pension & OPEB deferred inflows of $9.5 million. Further detail on prior year comparisons is provided below.
2022 2021 2022 2021 2022 2021
Current and other Assets 151,671,652 $   $  101,213,162 $  121,034,762 $  117,406,518 $  272,706,414 $  218,619,680 Capital Assets 543,297,925         483,407,097     201,718,510     194,994,848     745,016,435     678,401,945 Total Assets     694,969,577     584,620,259     322,753,272     312,401,366 1,017,722,849     897,021,625 Deferred Outflows of Resources
Pension & OPEB       69,833,304       38,924,685       17,234,776         8,835,191       87,068,080       47,759,876 Long‐Term Liabilities Outstanding 254,476,498          252,369,403        98,184,008        99,140,474     352,660,506     351,509,877 Other Liabilities 21,948,107              14,386,097       10,210,571       10,095,306       32,158,678       24,481,403 Total Liabilities     276,424,605     266,755,500     108,394,579     109,235,780     384,819,184     375,991,280 Deferred Inflows of Resources
Leases & Pension & OPEB       53,766,395         5,449,482       10,728,333         1,213,953       64,494,728         6,663,435 Net Position
Net Investments in Capital Assets 537,558,597          481,259,666     183,665,229     174,389,259     721,223,826     655,648,925 Restricted 11,326,983                14,059,449        16,677,323        18,031,654        28,004,306        32,091,103 Unrestricted (114,273,699)      (143,979,153)       20,522,584       18,365,911      (93,751,115)   (125,613,242) Total Net Position $ 434,611,881 $ 351,339,962 $ 220,865,136 $ 210,786,824 $ 655,477,017 $ 562,126,786 Governmental Activities Business‐Type Activities Total Primary Government Redlands Regular Meeting of 02-21-23 Page 279 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
9 The City implemented GASB 87 effective July 1, 2021. GASB 87 requires that leases be reported in the financial statements. The following categories were added to the financial statements: leases receivable, leases payable, deferred inflow of resources related to leases, right-to-use leased assets and lease liabilities. Additional discussion of these changes can be found in Note 1 - I and 3 of the financial statements.

Statement of Net Position - Total Primary Government
 Again, this year, the largest portion of total assets consists of capital assets (e.g., land, infrastructure and equipment), totaling $745 million or 73% of total assets. These are detailed in Note 5 of the financial statements.  Net investment in capital assets of approximately $721 million represents the City’s investment in infrastructure and other capital assets, less accumulated depreciation and outstanding balances on borrowings used to construct or acquire those assets.
 Cash and investments comprised of $234.8 million in the City treasury and $3.6 million of cash and investments held with fiscal agents. These assets are detailed in Note 2 of the financial statements.  Deferred outflow of resources related to pension and OPEB increased significantly by $39.3 million, roughly 187%. The change in deferred outflow of resources related to OPEB was due mainly to decrease of roughly 11% in the assumed discount rate and increase in the rate assumed for inflation of over 300% (from 0.75% to 2.75%) used to calculate the City’s Total OPEB liability. The increase in deferred outflow of resources related to pensions is attributable to pension contributions made after the measurement date of the last GASB 68 Accounting Report.
 Receivables, totaling $24.5 million, consist of accounts, taxes and leases receivable. While most receivables consist of taxes and accounts payable, it is noted here that leases receivable recognizes agreements with third parties for the right-to-use of City property that is leased for special purposes. More information on leases receivable is found in Note 3 to the financial statements.  Long-term liabilities totaled $335.2 million, approximately, and represent the City’s obligations on debt, pensions, and other post-employment benefits. More information is presented in Notes 6 and 8-12 of the financial statements.
 Other liabilities increased significantly by 31.4%, from $24.5 to $32.2 million roughly. Most of this $7.7 million increase is due to a large increase in General Government accounts payable, attributable to a $1 million grant agreement with the Museum of Redlands, a purchase agreement for body worn cameras of $478,000 and a $1.8 million construction contract for the I-10 / Alabama Interchange Improvement Project; there was also a $2.8 million increase in General Government unearned revenue, $2.4 million of which is attributable to increased unearned revenue recorded as a result of the American Rescue Plan Act funding received towards the end of the fiscal year.
 Implementation of GASB 87 resulted in a $8.5 million increase for lease related deferred inflows of resources for spaces and land that is leased out by the City. As well, deferred inflows related to pension & OPEB increased significantly by $49.3 million, roughly 740%. This change is based the net difference between projected and actual earnings on pension plan investments as well as a 10% decrease in the assumed discount rates.  Overall investment in capital assets, net of related debt, increased by 10%. This steady increase over the prior year is reflective of additions to right-of-way assets, higher amounts of construction in progress, and additions to infrastructure assets and buildings & improvements.
 Restricted net position, totaling $28 million, represents resources that are subject to restrictions on how they may be used. Some funds are restricted for the purposes of funding specific capital projects, funding specific debt service obligations, to hold in trust as an endowment, or for other specific uses.  The unrestricted net position amount of -$93.75 million represents an unrestricted net position deficit, mainly resulting from the recognition of the net pension liability in fiscal year 2015, in accordance with GASB 68, and the recognition of total OPEB liability in fiscal year 2018, in accordance with GASB 75. As well, beginning in FY 2022, the City also recognized the deferred inflows related to leases in accordance with GASB 87. Additional details can be found in Note 10 as it pertains to net pension liability, in Note 11 for the Total OPEB liability and in Note 3 for Leases.

Redlands Regular Meeting of 02-21-23 Page 280 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
10 Governmental Activities
 Receivables, totaling $13.1 million, consists mainly of taxes receivable at $10.6 million, $1.1 million in accounts receivable, and $1.4 in leases receivable. Recognition of leases payable, in accordance with GASB 87 reflects the City’s portion of property leased to others for their right-of-use of a particular underlying asset.  The net position of governmental activities increased significantly by 23.7% (or $83.3 million), attributable to a variety of factors. Cash and other assets increased significantly by $55.1 million, capital assets increased by $59.9 million. As well, deferred outflows related to pension & OPEB increased by roughly $30.9 million. These increases were offset by an increase in total liabilities of $14.3 million and increases to deferred inflows related to leases, pension & OPEB of roughly $48.3 million.
 Deferred outflow of resources related to pension and OPEB increased by $30.9 million, roughly 79%. OPEB deferred outflows increased by approximately $29.6 million and this is attributed mainly to decrease of roughly 11% in the assumed discount rate and increase in the rate assumed for inflation of over 300% (from 0.75% to

2.75%) used to calculate the City’s Total OPEB liability. Pension deferred outflows represent a $1.3 million increase in deferred outflows. This change is attributable to pension contributions made after the measurement date of the last GASB 68 Accounting Report. There are more details available in Notes 10 & 11 of the financial statements.
 This year, there was a net increase of 5.4%, or $14.3 million in total liabilities, with roughly $1.9 million attributed to increases in unearned revenue received in late June 2023 (as a result of the American Rescue Plan Act funding, the majority of which has no corresponding expenditure and is therefore unearned), several large construction projects underway, increases in deposits & interest payable, and a net of $2.1 million attributed to long-term debt.
 Within long-term liabilities, the amount for pension decreased by $40.3 million and the amount for OPEB increased by $38.4 million. Changes in OPEB liability are attributed to changes in assumptions for the discount rate and inflation, predominately. While changes in net pension liability are due mainly to improved performance of investment income. There are more details available in Notes 10 & 11 of the financial statements.  Deferred inflow of resources related to pension increased by $43.4 million, roughly 1,874%. This change is based on the annual actuarial analysis performed by CalPERS and consists of changes in assumptions and differences between estimated and actual experience, notably this year, better-than-expected earnings on pension plan investments. OPEB deferred inflows decreased over the prior year by 25%, or $794,000. This change is mainly due to changes in assumptions related to the discount rate and inflation. There are more details available in Notes 10 & 11 of the financial statements.

Redlands Regular Meeting of 02-21-23 Page 281 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
11 Business-Type Activities
 The net position of business-type activities increased by 4.8%, or $10.1 million. This change is attributed to an increase in total assets of $10.4 million; an increase in deferred outflows from pension and OPEB of $8.4 million; and a decrease in total liabilities of $841,000, offset by an increase in deferred inflows from leases, pension and OPEB of $9.5 million for a net increase of $6.2 million overall.  Receivables, totaling $11.4 million, represent an increase of approximately $1.4 million from the prior year. The majority of accounts receivable relate to the Water, Wastewater and Solid Waste customer billings ($5.2 million) and unbilled customer accounts ($5.6 million). With the recognition of leases receivable, in accordance with GASB 87, approximately $225,000 was also added to receivables. These leases are mainly related to property & easements for cell phone towers as well as hangar leases at the Redlands Municipal Airport.  Total capital assets of $201.7 million represent 27% of total capital assets citywide.  Deferred outflow of resources related to pension and OPEB increased by $8.4 million, roughly 95%. o OPEB deferred outflows increased by approximately $8.7 million and this is attributed to the lowering of the assumed discount rate and the significant increase in the assumed inflation rate used in the actuarial valuation performed with a measurement date of June 30, 2021. o Pension deferred outflows decreased slightly by $325,000. This change is based on the annual actuarial analysis performed by CalPERS and consists of differences between estimated and actual experience, notably this year, better-than-expected earnings on pension plan investments.  This year, there was a net decrease of $956,000 in long-term liabilities outstanding. o In terms of long-term debt – there was a net decrease of $2.7 million. o This is representative of repayment of bonds, notes, and leases payable within Water, Solid Waste (Disposal) and Wastewater (Sewer) funds of roughly $3.3 million, which offset the addition of a new capital lease payable for a Caterpillar D7-17 Tractor at the California Street Landfill (Solid Waste Fund) for $650,000.
o In terms of other long-term liabilities, there were significant and offsetting changes in net pension liability and total OPEB liability. There was a decrease of $9.6 million in net pension liability due to differences between estimated and actual experience, notably this year, better-than-expected earnings on pension plan investments. There was an increase in total OPEB liability of $11.3 million attributed to the lowering of the assumed discount rate and the significant increase in the assumed inflation rate used in the actuarial valuation performed with a measurement date of June 30, 2021.  Deferred inflow of resources related to leases, pension and OPEB increased by $9.5 million, roughly 784%. o $2.8 million of this increase is due to recognition of deferred inflows related to leases, in accordance with GASB 87.
o Pension deferred inflows increased by $6.9 million, this is based on the annual actuarial analysis performed by CalPERS and consists of changes in assumptions and differences between estimated and actual experience.
o These increases were slightly offset by a decrease in deferred inflows related to OPEB of $234,000.

This change is based on the actuarial valuation performed with a measurement date of June 30, 2021.

Redlands Regular Meeting of 02-21-23 Page 282 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
12 The Statement of Activities reports increases and decreases in the net position. The following is a condensed Statement of Activities for the fiscal years ending June 30, 2022 and June 30, 2021:

Table 2
2022 2021 2022 2021 2022 2021
Program Revenues
Charges for services: $    17,335,323 $    15,665,634 $    65,976,505 $    63,050,099 $    83,311,828 $    78,715,733 Operating grants and contributions 4,223,681                    3,941,740             631,695                20,125          4,855,376          3,961,865 Capital grants and contributions 28,433,466                11,372,774          6,134,627          2,840,765        34,568,093        14,213,539 General Revenues
Property taxes        37,769,495        35,722,886                73,337                79,616        37,842,832        35,802,502 Sales taxes        48,232,171        26,541,469                           ‐                           ‐        48,232,171        26,541,469 Franchise taxes          2,625,852          2,379,571                           ‐                           ‐          2,625,852         2,379,571 Other taxes          2,706,919          2,462,019                           ‐                           ‐          2,706,919          2,462,019 Investment income (loss)         (1,546,892)             282,836         (2,929,740)             557,392         (4,476,632)             840,228 Gain/(loss) on sale of capital assets                           ‐                           ‐        44,643,370                           ‐        44,643,370                           ‐ Intergovernmental (unrestricted) 1,308,520                    1,455,573                           ‐                           ‐          1,308,520          1,455,573 Other         1,689,391         3,064,706         1,208,057         1,637,223         2,897,448         4,701,929 Total Revenues 142,777,926          102,889,208     115,737,851        68,185,220     258,515,777     171,074,428 Program Expenses
General government 26,157,407                 ‐ 18,717,217                            ‐                                   26,157,407        18,717,217 Public safety 61,325,651                 ‐ 57,395,655                            ‐                                   61,325,651        57,395,655 Culture and recreation 6,902,767                     ‐ 4,250,967                            ‐                                     6,902,767          4,250,967 Highway and streets 9,754,750                   ‐ 11,057,940                            ‐                                     9,754,750        11,057,940 Library 2,754,340                     ‐ 2,792,317                            ‐                                     2,754,340          2,792,317 Interest on Long‐Term Debt 738,561                           ‐ 888,750                            ‐                                        738,561             888,750 Water                            ‐ ‐                                   26,535,646        23,411,564        26,535,646        23,411,564 Disposal                           ‐                           ‐        15,454,382        15,026,409        15,454,382        15,026,409 Sewer                           ‐                           ‐        11,764,304        12,077,904        11,764,304        12,077,904 Groves                           ‐                           ‐          1,146,879             991,602          1,146,879             991,602 NP Water                           ‐                           ‐             956,768             677,088             956,768             677,088 Cemetery                           ‐                           ‐             958,443          1,119,999             958,443          1,119,999 Aviation                           ‐ ‐                                       715,647             582,770             715,647             582,770 Total Expenses 107,633,477           95,102,846       57,532,069       53,887,336     165,165,546     148,990,182 Change in Net Position Before Transfers 35,144,449                7,786,362       58,205,782       14,297,884       93,350,231       22,084,246 Transfers 48,127,470                3,660,469      (48,127,470)        (3,660,469)  ‐                           ‐ Increase (Decrease) in Net Position 83,271,919                11,446,831        10,078,312        10,637,415        93,350,231        22,084,246 Beginning Net Position 351,339,962         336,232,462     210,786,824     200,149,409     562,126,786     536,381,871 Restatement of Net Position                           ‐           ‐ 3,660,669                            ‐                            ‐                                     3,660,669 Beginning Net Position, as Restated 351,339,962         339,893,131     210,786,824     200,149,409     562,126,786     540,042,540 Ending Net Position $ 434,611,881 $ 351,339,962 $ 220,865,136 $ 210,786,824 $ 655,477,017 $ 562,126,786 Governmental Activities Business‐Type Activities Total Primary Government Redlands Regular Meeting of 02-21-23 Page 283 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
13 Total Primary Government –
 Total Primary Government revenues for fiscal year 2021-2022 increased significantly by 51.1%, or roughly $87.4 million. This large increase was due to several factors: the first full year of transaction & use tax received under Measure T, the addition of several large infrastructure asset additions included under capital grants & contributions, and one-time land sale proceeds in the solid waste and wastewater funds.  Property tax grew by 5.7%, or $2 million. This growth in revenue is attributed to higher taxable values driven by property transfers of ownership, the annual adjustment for inflation (CPI), and new construction within the City from prior years being enrolled by the County’s Recorder.  Total expenses for the City increased in fiscal year 2021-2022 by $16.2 million (or 10.9%). Roughly $12.5 million of this increase was within General Government. Another $3.6 million net increase was found throughout the Business Type Activities. More detail on these fluctuations is presented below.  Transfers between governmental activities and business-type activities increased by roughly $44.5 million. This is due to a large one-time transfer of land sale proceeds between the Solid Waste (Disposal) & Wastewater (Sewer) Funds to the General Fund to transfer net profits on a property sale after both funds were made whole with their original capital outlay for the property plus CPI adjustments to preserve the purchasing power within both funds.

Governmental Activities
 Total Governmental Activity revenues for fiscal year 2021-22 increased by roughly 38.8%. This growth in the prior year was mainly significant additions under capital grants and contributions, notably the 2021 Street Resurfacing Project, the 2021 Citywide Sidewalk & ADA replacement project, the 6th Street Gateway and infrastructure added from several private developments. Other significant variances are detailed below.  Sales tax revenue saw a very significant increase of 81.7%, or $21.7 million, when compared to prior year. This striking increase in revenues is based on three factors:
o The first full year of collection of the City 1% transactions and use tax (Measure T), which was only partially reflected in the prior fiscal year since its effective date of 04/01/2021; o A corporate restructuring of Amazon LLC to now own its warehouses, effectively making itself into a point-of-sale such that the vast majority of sales tax the in-town Amazon warehouse generates will no longer be “pooled” for apportionment among the various cities in the County, but rather the City will be the exclusive taxing jurisdiction;
o And lastly, upward pressures on prices towards the latter half of the fiscal year had a positive impact on sales tax revenue.
 Interest Income (formerly referred to in prior fiscal years as Uses of Money & Property) has decreased significantly by roughly $1.8 million. Much of this was largely due to a decrease in the fair market value of the City’s investment portfolio resulting from an overall increase in interest rates.  The Intergovernmental category reflects a decrease over the prior year of $147,000 due to fluctuations in funding from the Federal, state and county governments.
 Operating Grants and Contributions increased from prior year levels by $282,000, or 7.2%. This was due largely to increases in General Government grants related to the City’s allocation of Coronavirus State & Local Fiscal Recovery Funds issued through the American Rescue Plan Act of $2.1 million and decreases in Public Safety operating grants due to a one-time increase in the prior year attributed to the Coronavirus Aid, Relief, and Economic Security Act or, CARES Act funding.
 Capital Grants and Contributions increased markedly by $17 million, or 150% over the prior year. This is a result the addition of several large infrastructure asset additions included under capital grants & contributions, as well as some increases in revenue in the various general government development impact fee funds.

Redlands Regular Meeting of 02-21-23 Page 284 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
14 Governmental Activities (Continued)
 Total expenses for Governmental Activities increased in fiscal year 2021-22 by $12.5 million (or 13.2%). The following categories saw the largest fluctuations over the prior year:
o General Government expenses increased by roughly $7.4 million (or 39.8%). Most of this increase is due to large increases in expenses related to facility maintenance contracts associated with the purchase of 300 East State Street, a six-story office building roughly 65% occupied by private tenants. As well, this includes the one-time donation to the Museum of Redlands of a $1 million grant by the City to commission the new City facility. There is also a $2.6 million increase in full time salaries charged to grants.
o The Public Safety category saw a $3.9 million increase over the prior year. This variance was due to $1.2 million increase in Police Department Operating costs, and other significant increases to adjustments for expenses related to depreciation, OPEB & pensions.

Business-Type Activities
 Overall, ending net position for the business-type activities increased by $10.1 million, or 4.8%.  Comparing fiscal year 2020-21 and fiscal year 2021-22, total revenues increased by $47.5 million overall, or

69.7%. The increase in revenues is almost exclusively due to the one-time sale of property and associated proceeds.
o The $3.2 million increase in Capital Grants and Contributions was due to a net increase in development impact fee revenue of $2.3 million and an increase in total capital contributions to the water and wastewater fund over the prior year of roughly $900,000. o There were also significant increases in revenues in the Solid Waste (Disposal) and Wastewater (Sewer) Funds, mainly due to increases in rates for both funds effective 10/01/2021, as well as the addition of several new attached and detached homes to the City’s housing stock. These increases of $2.1 million and $1.9 million, respectively, were offset by losses in revenue of $1.2 million in the Water Fund. This is attributed mainly to the delayed collection of water usage charges caused by the Governor’s Executive Order N-42-20 that limited disconnection of water service for non-payment.

The City expects to recover delinquent accounts almost entirely as a part of the California Water and Wastewater Arrearage Payment Program (CWWAPP) that funded eligible customers who fell behind on their water utility bill payments because of the COVID-19 pandemic. o A decrease in investment income of $3.5 million reflects the unrealized loss that was required to be booked to reflect the difference between the book value of the City’s investments and their market value.
 Expenses overall increased from fiscal year 2020-21 levels by $3.6 million, or 6.8% approximately. The programs with the largest increase in expenses were the Water, Solid Waste (Disposal), and Nonpotable Water funds. Over the prior year:
o In the Water Fund, expenses increased by $3.1 million or roughly 13.3%. This increase was mainly due to increases in contractual service costs, higher costs in electricity, and roughly $1.1 million in expenses for water meter & fittings replacement. These significant increases were offset partially by savings in other categories of expenses in the fund.
o In the Solid Waste (Disposal) Fund, expenses increased by $428,000 or roughly 3%. These increases were due to higher costs for contractual services, retiree healthcare costs, City garage charges, and various capital assets. Some of these increases were offset in other categories by savings in pension contributions and landfill closure expenses.
o Lastly in the Nonpotable Water Fund, there was a notable increase of $280,000 in expenses, or roughly 41%. This increase was due mainly to the addition of new meters and fittings, as well as other noncapital expenditures.

Redlands Regular Meeting of 02-21-23 Page 285 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
15 Expenses by Function of Governmental Activity
 Expenses overall for governmental activities totaled $107.6 million. This total represents the cumulative effective of increased pension costs, the recognition of OPEB, and deferred outflows and inflows related to both.

Employee compensation is also reflected in this amount.  Expenses for general government comprise 24% of total governmental activities, or $26.1 million. General government includes functions such as human resources, finance administration, engineering and City Council.  Expenses for public safety represent 57% of total governmental activities in the amount of $61.3 million. The main operations within public safety are the Police and Fire Departments. These departments are service-centric.

As such, personnel costs represent the majority of costs in these departments. The effects of salary increases, pension cost increases and the recognition of OPEB liability tend to have a larger impact proportionately for public safety activities.
 Expenses for highway and streets are 9% of all governmental activities, or $9.8 million. These expenses include spending on the City’s Pavement Accelerated Rehabilitation Implementation Strategy (PARIS) program, operations and maintenance as well as other capital repairs to road infrastructure.  Culture and recreation, Library, and interest on long-term debt comprise 6%, 3%, and 1% of government activity respectively, or $6.9 million, $2.8 million and $739,000.

Redlands Regular Meeting of 02-21-23 Page 286 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
16 Expenses and Program Revenues : Business Type Activities Fiscal Year Comparison ‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Water Disposal Sewer NonMajor
Funds
Expenses and Program Revenues:

Business‐Type Activities FY 2020‐21
Revenues Expenses
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Water Disposal Sewer NonMajor
Funds
Expenses and Program Revenues:

Business‐Type Activities FY 2021‐22
Revenues Expenses
Redlands Regular Meeting of 02-21-23 Page 287 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
17 Major differences between revenues and expenses for business-type activities are show in the two charts above. o Fiscal year 2021-2022 saw a significant decrease in Water revenues of $1.1 million, or 3.5%, and an increase in expenses of $3.1 million, or 13.3%. Seasonality and weather usually have the greatest impacts on water consumption and revenue. However, the COVID-19 pandemic and the resulting Governor’s Executive Order N-42-20 have also had significant impacts on the Water Fund revenues as a result of the moratorium on disconnection of water service for non-payment. The City anticipates these revenue losses to be recooperated by the end of FY 2023, with the City’s participation in the California Water and Wastewater Arrearage Payment Program (CWWAPP) that will pay the City any eligible water-related delinquent customer account balances. Increases in contractual service costs, driven mostly by higher costs in electricity, water meter & fitting replacements, and retiree healthcare, contributed to the overall increase in expenses. These significant increases of $3.1 million were offset partially by savings in other categories of expenses in the fund. o For Solid Waste (Disposal) operations, there was an increase in revenues over fiscal year 2020-21 of $2.1, or 10.8% and an increase in expenses in the amount of $428,000, or 2.9%. Increased revenues are the result of a rate increase implemented in the fall of 2021 as well as the addition of 82 dettached single family homes within the City. Higher expenses are a result higher staffing costs, higher costs for retiree health insurance, and higher City garage charges. These increases were offset by other cost savings in areas like pension and billing services.
o In the Wastewater (Sewer) Fund, revenues increased by $1.9 million, or 18.5%, and expenses decreased by $313,600, or 2.6%. The increase in revenues are a function of a rate increase implemented in the fall of 2021 and an increase on frontage charges. Decreased expenses in the fund were due savings on pension contributions, offset by increases in other areas of salaries & benefits. o Lastly, for nonmajor business-type funds,
 The Groves Fund experienced a significant increase in revenue by roughly $179,000 (or

19.2%). This follows a year that saw a 42% growth over the last in grove receipts. This market for citrus fruit is notably unpredictable and this can cause the marketability of the City’s citrus to vary substantialy from one year to the next.
 The Hillside Memorial Cemetery had a 21% decrease in revenues due to higher than average cemetery lot sales and internment services in the prior year, roughly $332,000 more than FY 2020 revenues.
 The Aviation fund saw a small 8% increase in rental income due to slighly higher ground lease payments and tie-down fees over prior year levels.
 The Non-Potable Water Fund experienced an increase in revenues of 2.3%, or $12,000. This was caused an increase in non-potable water usage. This is likely due to the City’s policy of requiring new commercial development to provide dual metering for irrigation systems to accommodate the use of recycled/non-potable water.
 Expenses decreased in the Cemetery Fund by $162,000, or 14.4% due mainly to savings arising from bad debt expense, other betterments & improvements and supplies. Operating expenses in the Groves Fund increased by 15.7% (due bringing farming services in-house as a result of the last farming contractor in the City existing that industry). Expenses also increased in Non-Potable Water by $280,000, or 41.3% due mainly to costs related to new meters & fittings and onon-capital expenditures. Lastly, expenses increased by $133,000, or

22.8% in the Aviation Fund (due increases in utilities, and special contractual services).

Redlands Regular Meeting of 02-21-23 Page 288 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
18 Expenses by Type for Business-Type Activities

MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related accounting standards and legal pronouncements.

Major Governmental Funds. The General Fund is the chief operating fund of the City. At the end of June 2022, the total fund balance reported for the General Fund was $93,440,224, an increase of $38,107,057 (69%) from the prior year ending fund balance of $55,333,167. This large variance is due to several factors that will be detailed below.

As a measure of the General Fund’s liquidity, it can be useful to compare the total fund balance to total fund expenditures. This measure indicates that the fund balance is approximately 98% of general fund expenditures, however, only $26,543,339 of the $93.4 million fund balance is unassigned. The unassigned fund balance of $26.5 million, together with the $9.2 million in fund balance committed to stabilization arrangement (contingencies), is the only portion of fund balance readily available for spending and represents 37.5% of general fund expenditures. Total general fund expenditures this year were $95.4 million, which is $27 million higher than the prior year amount of $68.4 million. Total general fund revenues were $107.6 million, or 24.6% higher than the prior year amount of $86.4 million.

Salaries and
benefits
72%
General and
administrative
15%
Parts and
supplies
5%
Utilities
3% Depreciation/amortization
5%
Operating Expenses by Type for Business‐Type Activities Salaries and benefits General and administrative
Parts and supplies Utilities
Depreciation/amortization
Redlands Regular Meeting of 02-21-23 Page 289 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
19 MAJOR FUNDS (Continued)
Significant changes in revenues for the City’s General Fund over the prior year are as follows:
 Overall sales tax increased significantly by $21.7 million, or 81%. FY 2022 marked the first full year of revenue collection of the City’s transaction & use tax approved by voters in November 2020 and which was effective on April 1, 2021. The City has not only recovered from the COVID-19 recession that saw its sales tax revenues drop by 7%, but has made significant gains in this revenue category. o $5.3 million of this growth was due to growth in the Bradley Burns sales tax. o The corporate restructure of Amazon fulfillment centers in the state continues to bode well for sales tax revenue in the City. Sales tax revenue generated by Amazon that was previously disbursed to the County pools is now being allocated to the City. This has had a significant influence on the City’s revenues, boosting revenue by roughly $1.5 million in FY 2022. o Still more growth in overall sales tax is attributed to strong growth in industry types across the board, but most notably in auto sales and leases, and inflationary pressure on retail prices. o The first full year of Measure T sales tax collection resulted in revenue receipts of $20.7 million.

This is a $16 million increase over the prior year in which it was collected only for the last quarter (FY 2021).
 Property tax increased again by $1.9 million, primarily due to strong growth in the City's total assessed values, which grew by a factor of roughly 4.1% for the fiscal year. Different property use categories grew at different rates. Most of this growth is due to transfers of ownership, the CPI growth factor (2%), and some new construction of both residential and non-residential properties.  Transient occupancy tax (TOT) increased by $221,000, or 12.1%. The recovery of travel & lodging as a result of relaxed state mandates for social distancing has already led to an uptick in TOT revenue in FY 2021. For FY 2022, the City added two new hospitality accommodations for travelers: the Hilton Home2 Suites, a 77- room hotel located at 1342 Industrial Park Avenue; and the Marriot Springhill Suites, an 88-room hotel located at 1765 West Lugonia Avenue.
 Licenses and permits reflect an increase of $887,000 or 12.3%. This increase is due an uptick in applications for building permits and increased collection of business license revenue.  Intergovernmental revenues increased by $742,000 or 149%, primarily the result of a very significant increase in Mutual Aid received during this fiscal year, as compared with the amount received prior in FY 2021.  Charges for services increased only slightly by $174,000, or 2.3% from prior year. While there are variations over and under in each revenue account, contract classes and recovery of general government overhead had the largest increases over the prior year.
 Earnings from the investment income were down sharply from FY 2021, by $2.6 million. The US economy and stock market struggled the first half of 2022. Interest rates are further expected to increase, causing market values to fluctuate. The City’s practice is to buy and hold investments to maturity to minimize investment risk in a fluctuating market and to ensure preservation of capital in the overall investment portfolio. As required by GASB 31, an unrealized loss was recorded to adjust for these market fluctuations and is reflected in this line item.
 ‘Rents and leases’ is a new category recognized as a result of GASB 87. As a result of the City’s purchase of 300 East State Street in downtown Redlands, it is now the owner of a six-story office building occupied by 65- 70% private tenants, with the future objective of converting this property into a new City Hall once the leases of existing tenants expire. Prior year revenue from rents and leases was roughly $136,000. For FY 2022, the amount is $1.8 million, nearly a 12-fold increase. This is due to an additional $1.5 million in lease revenue from 300 East State Street.
 Miscellaneous revenue decreased slightly by $71,000, or 4.5%. This is mostly a result of lower cost recovery & reimbursements across different City departments.

Redlands Regular Meeting of 02-21-23 Page 290 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
20 MAJOR FUNDS (Continued)
 Transfers in increased significantly in FY 2022 over the prior year by approximately $39.1 million. This was due to a large single-year transfer of land sale proceeds from the Solid Waste (Disposal) and Wastewater (Sewer) funds, after each fund was made whole with the original purchase price plus an inflation factor representing the incremental increase in value of the original purchasing funds to 2021 dollar values. The remaining funds were transferred to the General Fund for the purposes of funding acquisition of a new City Hall building (300 East State Street) and a new Public Safety (Police) facility (1625 West Redlands Boulevard).

The Public Facilities Development fund accounts for the collection and related expenditure of development impact fees designated for constructing new and upgrading existing public facilities. This fund holds Advances Payable to other funds totaling $7,689,301. The funds and amounts owed include the General Fund in the amount of $7,648,335 and the Water Fund in the amount of $40,966. This represents a decrease from last year of roughly $599,000. These interfund loans were made when impact fee revenues were insufficient to cover 60% share the Public Facilities DIF portion of debt service on the 2003 Lease Revenue Refunding COPs, which matured in fiscal year 2017-2018. Development Impact Fee (DIF) revenue collected in these categories is now being used to repay the non-General Fund loans first per a Council directive. As such, the interfund loans owed to the Open Space Fund (227), Park Development Fund (250), and Storm Drain Construction (405) Fund have been repaid in full, including interest and all outstanding principal.

The Governmental Grants was established to account for the receipt and expenditure of grant monies received from various agencies for general government projects and purposes. This fund tracks the City’s allocation of Coronavirus State & Local Fiscal Recovery Funds issued through the American Rescue Plan Act in the amount of $11,508,106, the largest federal grant the City has received to date. It also tracks several other noteworthy grant projects, including the City’s Community Block Development Grant program, engineering grants for transportation projects and equipment and facility grants for the Police and Fire departments.

The Safety Hall Capital Projects fund was established to track the accumulation and use of resources for constructing, acquiring, and rehabilitating capital assets related to a new Safety Hall. The activity for FY 2022 consisted of the purchase of a former Kmart property located at 1625 West Redlands Boulevard. This property will serve as the future home to the Redlands Police Department, fulfilling a long-standing need for the department to have a centralized facility to house its tactical and operations staff as well as servicing public needs. Future plans for a comprehensive retrofit and refurbishing of the property are in the initial design and scoping stages.

Major Enterprise Funds. The Water Fund has a total net position of $145.4 million at the end of the fiscal year, $28.2 million of which is unrestricted. The Solid Waste (Disposal) Fund has a total net position deficit of ($2.2 million) at the end of the fiscal year, which marks a $3 million improvement over the prior fiscal year; and its unrestricted net position is a deficit of ($4.3 million). The Wastewater Fund has a total net position of $56 million at the end of the fiscal year; $8.2 million of which is unrestricted. These funds account for the respective utility services provided by the City. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business type activities.

Redlands Regular Meeting of 02-21-23 Page 291 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
21 GENERAL FUND BUDGET
Differences between the final budget and fiscal year 2021-22 activity in the General Fund can be briefly summarized as follows:
 Total Revenues - $5,536,8995 received in excess of budgeted amounts.  Total Revenues is now inclusive of two new financing sources - Inception of finance purchase agreements and Inception of lease payable. In this way, proceeds of governmental long-term debt and financing through leases are reported as other financing sources in accordance with GASB Statement No. 87. o Of the $5.5 million in excess of budgeted revenue amounts, these new categories comprise approximately $3.5 million.
 General Government - $1,469,459 decrease between the actual amount and the amount appropriated in the budget (savings).
 Public Safety - $3,623,926 decrease between the actual amount and the amount appropriated in the budget (savings).
 Culture and Recreation - $297,177 decrease between the actual amount and the amount set in the budget (savings).
 Highways and Streets - $2,571,141 decrease between the actual amount and the amount appropriated in the budget (savings).
 Library – $71,451 decrease between the actual amount and the amount appropriated in the budget (savings).  Transfers - $137,957 decrease between the actual amount and the amount set in the budget (savings).  Capital Outlay - $105,502 decrease between the actual amount and the amount appropriated in the budget (savings).
 Debt Service - $4,478,071 decrease between the actual amount and the amount appropriated in the budget (savings).

Major deviations between the final budget of the General Fund and its actual operating results were as follows. (Note:
budget savings are listed as positive figures.)
Final Budget Actual Amounts + (‐) Variance

REVENUES
Taxes 87,138,699 $        $       89,564,040 $             2,425,341 License and permits             7,530,463             8,121,859                    591,396 Fines and forfeitures                 116,000                 191,571                       75,571 Intergovernmental                 601,383             1,239,804                    638,421 Charges forservices             7,350,663             7,821,186                    470,523 Investment income (loss)                 175,350           (2,572,366)               (2,747,716) Rents and leases             1,577,825             1,793,787                    215,962 Miscellaneous             1,169,219             1,474,949                    305,730 Transfers in           45,689,313           45,779,314                       90,001 Inception of finance purchase agreemen                          ‐             3,275,547                 3,275,547 Inception of lease payable                          ‐                 196,119                    196,119 Total Revenues 151,348,915                156,885,810                 5,536,895 EXPENDITURES*
General Government           20,318,964           18,849,505                 1,469,459 Public Safety           47,927,800           44,303,874                 3,623,926 Culture & Recreation             5,572,914             5,275,737                    297,177 Highways & Streets             4,744,193             2,173,052                 2,571,141 Library             2,672,615             2,601,164                       71,451 Transfers           23,524,118           23,386,161                    137,957 Capital Outlay           21,567,208           21,461,706                    105,502 Debt Service             5,205,625                 727,554                 4,478,071 Total Expenditures 131,533,437 $      $     118,778,753 $           12,754,684 Redlands Regular Meeting of 02-21-23 Page 292 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
22 There are some variations between the final budget and the actual receipts recorded in Fiscal Year 2021-22 revenues.

This year, property and sales tax comprised 57% of total General Fund revenues. The strong performance in these two categories is related to the passage of Measure T, the City’s 1-cent sales tax, in November 2020, and the continued strong performance of housing prices and home sales, which accounted for a large part of the growth in property tax.

Aside from that, budget estimates were still under by roughly $2.4 million. Some of this can be attributed to betterthan-expected growth in sales tax, as consumer demand and prices remained higher than forecast. In terms of property taxes, the local real estate market remained relatively strong compared to the broader economy, as a variety of market conditions lead to accelerating home price growth through and since the onset of the pandemic. Median prices for detached single family homes in Redlands increased roughly 40% between 2019 and 2022.

Actual revenues were over the amended budget estimates by $5,536,895, or 3.7%. Roughly $3.5 million of this variance is due to the recognition of two new financing sources, Inception of finance purchase agreements and Inception of lease payable. For FY 2022, there was $3.2 million recognized as financing through finance purchase agreements. The assets leased include a Smeal Triple Combination Pumper (type 1 engine) and a Spartan LF Quint Tractor (aerial ladder) for the Fire Department.

Other than the categories of taxes, inception of finance purchase agreements, and inception of lease payable, which all had positive variances, the largest negative variance was investment income, which posted a loss of $2.7 million. As explained previously however, this amount reflects an unrealized loss recorded to adjust the City’s investment holdings to market value. While market values are expected to continue to fluctuate due to inflation, rising interest rates and economic uncertainty regarding an impending recession, the City’s practice is to buy & hold investments to maturity to minimize the investment risk in a fluctuating market to ensure preservation of capital in the overall investment portfolio.

Licenses and permits performed better than expected, at roughly $591,400, or 7.9%, above forecasts. This was mainly due to increased receipts from building permits (due to increased construction activity) and business licenses.

Intergovernmental revenue was significantly higher than expected by approximately $638,400, or 106%. This is due mainly to the timing of mutual aid reimbursement revenues, as the reimbursement process can lag by 60 to 90 days after the City’s expenditure of the related funds.

Charges for service were slightly higher by $470,500, or 6.4%, due to higher revenues than anticipated in plan review fees, general government overhead cost recovery and contract classes offered by Recreation & Senior Services.

Rents and leases were carved out here for the first time and contributed $1.7 million in revenue. This was roughly $216,000 higher than budgeted. These revenues reflect the City’s purchase of 300 East State Street in downtown Redlands. The City now owns this six-story office building occupied by 65-70% private tenants, with the future objective of converting this property into a new City Hall once the leases of existing tenants expire.

Transfers in were slightly higher than budgeted by 0.2%. This can be attributed to slight differences in the amounts for a large transaction involving the transfer of proceeds from a property sale from the Solid Waste (Disposal) and Wastewater (Sewer) funds to the General Fund.

Miscellaneous revenues were up by $305,700, or 26.1%. This was mainly due to higher than anticipated cost recovery in the Fire Department, Facilities & Community Services, and the Planning division.

Total General Fund expenditures ended the year under budget by 9.7%, or $12.8 million. The vast majority of the unspent funds will be carried forward to the subsequent fiscal year (2022-23) for expenditure.

Redlands Regular Meeting of 02-21-23 Page 293 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
23 General Government expenditures ended the year under budget by 7.2%, or $1.5 million. Part of this is attributed to savings in the areas of retiree health insurance premiums, lower expenditures on professional services in Finance, and savings in Engineering’s professional services line item.

Public Safety expenditures were under budget by $3.6 million, or 7.6%. Much of this savings is due to salary and overtime savings in the Police and Fire departments, as well as unspent funds for vehicle leases, body worn cameras, and building improvements.

Culture and Recreation was under budget by roughly $297,000, or 5.3%, this was attributable to savings on special contractual services in Parks, Trees & Recreation & Senior Services divisions.

Highways and Streets expenditures were under budget by $2.6, or 54.2%. This savings is a result of the carryover of roughly $1 million on an LED Streetlight conversion project, as well as an adjustment to expenditures to reduce them by $1.5 million representing the reclassification of expenditures related to the Fire Department.

Library expenditures were slightly under budget by $71,500, or 2.7% at year-end. This amount represents salary savings.

Capital outlay expenditures were slightly under budget by $105,500, or 0.5% at year-end. This small difference is due to differences between budget estimates and actual capital outlay costs.

Actual debt service expenditures were significantly below budgeted levels, at a savings of 86%, or $4.5 million, under budget. This is due mainly to equipment & vehicle capital leases not being fulfilled by the manufacturer/suppliers by the end of the fiscal year. Most of these leases were for the Fire Department, Police Department, and operating divisions within Facilities & Community Services. Global supply chain issues continue to affect the market for vehicles & equipment. As noted above, almost all of these appropriations are carried over into the following fiscal year.

A total overall favorable variance between actual revenues & expenditures of $18.3 million resulted from a combination of stronger revenue performance in property & sales tax, the addition of new sources of financing, including inception of finance purchase agreement and inception of lease payable, offset by investment losses that reflect only fluctuating market value of the City’s investments, not actual cash losses. Together with savings on salaries & benefits, contractual services, and vehicle & equipment purchases, and unspent funds for large projects like body worn cameras and the LED Streetlight replacement project, these factors resulted in the positive variance for the General Fund.

Redlands Regular Meeting of 02-21-23 Page 294 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
24 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s capital assets for its governmental and business-type activities as of June 30, 2022, amounted to $745 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, vehicles, infrastructure, water rights, rights of way and construction in progress. This year also includes the new category of Right to Use Leased Assets. The category reflects the value of the City’s right, as a lessee, to use various assets over the life of their corresponding leases, in accordance with GASB Statement No. 87.

Major capital asset events during FY 2021-22 include the following:

Significant additions netting to $6.4 million were made to land assets in governmental activities. The majority of this increase reflects the purchase of property located at 300 East State Street, a six-story office building in downtown Redlands and future home to City Hall operations as well as the purchase of the former Kmart property located at 1625 West Redlands Boulevard to house the Police Department operations. These two property acquisitions also account for the majority of the $25.7 million increase in Building & Improvements.

Net additions to infrastructure and Right-of-Way assets in general government activities totaled approximately $10.8 million and $17.8 million respectively. The majority of these assets are related to the PARIS 2021 project, which consisted of 50 lane miles of street resurfacing, in addition to minor curb and gutter, cross-gutter, sidewalk, and driveway approach replacement. The Pavement Accelerated Repair Implementation Strategy (PARIS) identified specific plans to address deteriorating condition of City streets in the most efficient manner. Also contributing to these asset additions were one large industrial development project and several residential development projects.

Construction in Progress values also increased significantly in general government by $5.4 million. This is due to the start of several large capital improvement projects including several sports field conversions and upgrades at City parks, the 2021 Sidewalk and ADA ramp replacement project, a major traffic signal installation project and fire engine lease purchases.

Lastly, Right to use leased assets in general government activities consists of mainly of vehicle fleet lease agreements with Enterprise Fleet Management and added roughly $196,000 during FY 2022 related to three lease agreements for Fire Department vehicles and one lease agreement for a Building Maintenance vehicle.

For business type activities, land capital assets decreased by roughly $1.5 million representing the sale of surplus property near the landfill and wastewater treatment plant. Machinery, equipment and vehicle assets increased by roughly $4.6 million. Over half of this increase is attributed to the placement of a new SCADA system into service, a $2.4 million increase to this asset category. Another $1.7 million is representative of the purchase of three solid waste automated refuse trucks, a D7 tractor for use at the landfill and three pieces of rolling stock for Wastewater operations.

Several large facility enhancement/expansion projects were either completed or significant progress towards completion was made, adding roughly $5.3 million in infrastructure value. These include the 2020 Water Pipeline CIP and the 2021 Sewer Pipeline CIP, which included 2 miles of water pipeline replacement and 10,000 linear feet of sewer line replacement, respectively.

Redlands Regular Meeting of 02-21-23 Page 295 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
25 Within business type activities, construction in progress amounts increased by a net amount of $5.4 million. An increase of $8.9 million is related to several large, multi-year capital projects in progress: the Wastewater Treatment Plant improvements totaling over $5.5 million, including upgrades to the screening equipment, ejector priming, blowers, digester boilers and heat exchanges as well as the gas conditioning system; the 2021 Water Pipeline CIP totaling $3 million, and the Landfill Gas Extraction Well project. Deletions included the SCADA Upgrade project and the 2020 Water Pipeline CIP for roughly $3.4 million since those projects were since placed into service.

Lastly, the total Right to use leased assets category was unchanged during the fiscal year. It’s starting and ending balance was roughly $147,000 and consisted mostly of a lease for a radio tower site to provide radio communications for both Water & Solid Waste (Disposal) operations, as well as several vehicle fleet lease agreements with Enterprise Fleet Management.

Overall, for primary government the City’s net capital assets increased significantly by $66 million for the fiscal year ended June 30, 2022, or 9.8% over prior year. This is higher than the previous year increases of 2.5%, and represents significant increases for general government activities, with the purchase of two large properties for eventual municipal use as a new City Hall and new Public Safety (Police) facility.

Capital assets for the governmental and business type activities are presented below to illustrate changes from the prior year:

Internal Service Fund capital assets, net of accumulated depreciation, are included in Governmental Activities.

Additional information on the City’s Capital Assets can be found in Note 5 of the section titled Notes to the Basic Financial Statements.

Long-Term Liabilities
Major long-term liability events during FY 2021-22 include the following:
 The Capital lease obligations category was restructured into Leases payable this year under long-term liabilities, in accordance with GASB Statement No. 87. This new category represents the lease liability as the present value of payments expected to be made during the lease term. The total amount recognized for this liability Citywide is approximately $843,000 and mainly represents of vehicle fleet lease agreements with Enterprise Fleet Management.

Inc./ (Dec.)
2022 2021 2022 2021 2022 2021 % of Change
Land $    40,956,320 $    34,214,356 $    26,667,376 $    28,129,879 $    67,623,696 $    62,344,235 8.5% Buildings & Improvements 60,553,082                34,892,585     113,470,547     113,461,868     174,023,629     148,354,453 17.3% Machinery/Equip./Vehicles 22,262,850                21,421,667        25,081,193        20,467,967        47,344,043        41,889,634 13.0% Infrastructure     262,936,330     252,047,584     199,550,139     194,210,766     462,486,469     446,258,350 3.6% Water Rights             408,125             408,125          9,881,460          9,881,460        10,289,585        10,289,585 0.0% Right of Way     295,304,762     277,508,647                           ‐                           ‐     295,304,762     277,508,647 6.4% Construction in Progress 7,126,967                    1,725,699        14,225,414          8,861,957        21,352,381        10,587,656 101.7% Accumulated Depreciation (146,972,512)        (138,811,566)    (187,275,173)    (180,019,049)    (334,247,685)    (318,830,615) 4.8% Right to Use Leased Assets 904,713                                        ‐             147,183                           ‐          1,051,896                           ‐ 100.0% Accumulated Amortization (182,712)                                       ‐              (29,629)                           ‐            (212,341)                           ‐ 100.0% Total $  543,297,925 $  483,407,097 $  201,718,510 $  194,994,848 $  745,016,435 $  678,401,945 9.8% Governmental Activities Business‐Type Activities Total
Redlands Regular Meeting of 02-21-23 Page 296 of 786
City of Redlands
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
26 Long-Term Liabilities (Continued)
 An increase in total OPEB liability was incurred and represents an increase over fiscal year 2020-21 of $49.7 million, or 32.7%, for the total primary government. This is due to the changes in assumptions and valuation data provided to the City by its actuary, mainly attributed to the lowering of the assumed discount rate and the significant increase in the assumed inflation rate.
 The City’s net pension liability decreased by $49.9 million, or 36.6%, which is a significantly shift from the prior year increase of $9.9 million. This is due to the changes in assumptions and valuation data provided to the City by CalPERS, mainly differences between estimated and actual experience, notably this year, betterthan-expected earnings on pension plan investments.  Taxable pension bonds and revenue bonds all experienced decreases as a result of annual debt service and no new additions were made to such debt.
 Notes payable increased by a net amount of roughly $2 million as a result of the purchase of new fire engines and a backhoe loader.
 Claims payable increased by approximately $2.5 million, or 20% due to the variance in claims filed against the City, which can fluctuate significantly from year to year.  Lastly, there was a decrease in compensated absences of roughly $788,500, or 8.2%. This was due to more leave hours being used by employees than were accrued during the same period of time.

Long-term liabilities for governmental and business type activities are presented below to illustrate changes from the prior year:

Additional information on the City’s long-term liabilities can be found in Notes 6 and 8 – 12 of the Notes to the Basic Financial Statements.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be sent to the Management Services Department at [email protected] or to Management Services / Finance Director, 35 Cajon Street, Suite 222, Redlands, CA 92373.

This financial report is also available in electronic format on the City’s website at http://cityofredlands.org/finance/annualreport. Additional information intended for the business community is available on the Economic Development web page also located on the City’s website listed above at http://www.cityofredlands.org/ED.

Inc./ (Dec.)
2022 2021 2022 2021 2022 2021 % of Change
Leases payable 724,361 $          ‐ $                       $          ‐ 118,959 $                       $          ‐ 843,320 $                       100.00% Taxable Pension Bonds         6,172,956         7,591,783                          ‐                          ‐         6,172,956         7,591,783 ‐18.69% Revenue Bonds                          ‐                          ‐         3,240,000         4,740,000         3,240,000         4,740,000 ‐31.65% Add: Unamortized Premium                          ‐                          ‐            168,353            351,347            168,353            351,347 ‐52.08% Notes Payable         5,014,967         2,147,431      14,525,969      15,404,463      19,540,936      17,551,894 11.33% Claims Payable      14,767,131      12,300,335                          ‐                          ‐      14,767,131      12,300,335 20.05% Compensated Absences 7,760,175                  8,406,084         1,022,107         1,164,695         8,782,282         9,570,779 ‐8.24% Landfill Closure Liability                          ‐                          ‐      10,730,423      10,676,624      10,730,423      10,676,624 0.50% Total OPEB Liability    146,160,286    107,742,453      55,755,636      44,439,492    201,915,922    152,181,945 32.68% Net Pension Liability      73,876,622    114,181,317      12,622,561      22,254,074      86,499,183    136,435,391 ‐36.60% Total $254,476,498 $252,369,403 $   98,184,008 $   99,030,695 $352,660,506 $351,400,098 0.36% Governmental Activities Business‐Type Activities Total
Redlands Regular Meeting of 02-21-23 Page 297 of 786

BASIC FINANCIAL STATEMENTS
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28 Redlands Regular Meeting of 02-21-23 Page 299 of 786

GOVERNMENT-WIDE FINANCIAL STATEMENTS
29 Redlands Regular Meeting of 02-21-23 Page 300 of 786 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 129,892,030 $ $ 104,944,451 $ 234,836,481 Accounts receivable, net 1,153,433 11,130,800 12,284,233 Taxes receivable 10,618,030 1,224 10,619,254
Lease receivable - due within one year 1,357,883 225,028 1,582,911 Due from other governments 1,173,490 2,990 1,176,480
Prepaid items 1,306,793 11,835 1,318,628
Inventories 93,140 - 93,140
Internal balances (40,966) 40,966 -
Total current assets 145,553,833 116,357,294 261,911,127 Noncurrent assets:

Restricted cash and investments 1,608,288 2,053,691 3,661,979 Lease receivable - due in more than one year 4,509,531 2,623,777 7,133,308 Capital assets:

Non-depreciable 343,796,174 50,774,250 394,570,424
Depreciable, net 199,501,751 150,944,260 350,446,011
Total capital assets 543,297,925 201,718,510 745,016,435 Total noncurrent assets 549,415,744 206,395,978 755,811,722 Total assets 694,969,577 322,753,272 1,017,722,849

DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB 44,728,397 14,158,395 58,886,792
Related to pensions 25,104,907 3,076,381 28,181,288
Total deferred outflows of resources 69,833,304 17,234,776 87,068,080 June 30, 2022
Statement of Net Position
City of Redlands
Primary Government
See accompanying Notes to the Basic Financial Statements. 30 Redlands Regular Meeting of 02-21-23 Page 301 of 786 Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 6,794,461 6,072,852 12,867,313
Accrued payroll 3,038,177 740,495 3,778,672
Interest payable 247,442 125,677 373,119
Unearned revenue 8,830,454 202,459 9,032,913
Deposits payable 3,037,573 3,069,088 6,106,661
Compensated absences - due within one year 3,880,088 511,054 4,391,142 Claims payable - due within one year 7,383,566 - 7,383,566 Long-term debt - due within one year 2,489,603 3,196,159 5,685,762 Total current liabilities 35,701,364 13,917,784 49,619,148 Noncurrent liabilities:

Compensated absences - due in more than one year 3,880,087 511,053 4,391,140 Claims payable - due in more than one year 7,383,565 - 7,383,565 Long-term debt - due in more than one year 9,422,681 14,857,122 24,279,803 Landfill closure liability - 10,730,423 10,730,423
Total OPEB liability 146,160,286 55,755,636 201,915,922 Aggregate net pension liability 73,876,622 12,622,561 86,499,183 Total noncurrent liabilities 240,723,241 94,476,795 335,200,036 Total liabilities 276,424,605 108,394,579 384,819,184

DEFERRED INFLOWS OF RESOURCES
Related to leases 5,737,007 2,804,289 8,541,296
Related to OPEB 2,341,463 827,207 3,168,670
Related to pensions 45,687,925 7,096,837 52,784,762
Total deferred inflows of resources 53,766,395 10,728,333 64,494,728

NET POSITION
Net investment in capital assets 537,558,597 183,665,229 721,223,826 Restricted:

Donations 526,834 - 526,834
PEG Fees 631,032 - 631,032
Public safety 717,018 - 717,018
Police programs and equipment 1,557,773 - 1,557,773
Public art 12,018 - 12,018
Street reconstruction/improvement projects 3,504,120 - 3,504,120 Debt service 1,819,383 462,600 2,281,983
Storm drain improvements 2,405,945 16,103,982 18,509,927 Endowment - non-expendable 110,741 110,741
Endowment - expendable 28,822 - 28,822
CFD assessment 124,038 - 124,038
Total restricted 11,326,983 16,677,323 28,004,306
Unrestricted (deficit) (114,273,699) 20,522,584 (93,751,115) Total net position $ 434,611,881 $ 220,865,136 $ 655,477,017 Primary Government
City of Redlands
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 31 Redlands Regular Meeting of 02-21-23 Page 302 of 786 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government $ 15,368,391 26,157,407 $ 3,682,166 $ 511,327 $ 19,561,884 $ Public safety 744,389 61,325,652 403,901 449,867 1,598,157 Culture and recreation 6,902,767 748,377 106,715 1,468,650 2,323,742 Highway and streets 9,754,750 355,465 30,899 25,870,243 26,256,607 Library 118,701 2,754,340 - 133,379 252,080
Interest on long-term debt 738,561 - - - -
Total governmental activities 107,633,477 17,335,323 4,223,681 28,433,466 49,992,470 Business-type activities:

Water 30,131,495 26,535,646 486,843 3,095,963 33,714,301 Disposal 15,454,382 21,066,272 21,030 435,148 21,522,450 Wastewater 11,764,304 11,998,633 4,122 2,531,010 14,533,765 Groves 1,146,879 863,303 - - 863,303
Non-Potable 956,768 641,340 - 72,506 713,846
Cemetery 1,139,982 958,443 - - 1,139,982
Aviation 135,480 715,647 119,700 - 255,180
Total business-type activities 57,532,069 65,976,505 631,695 6,134,627 72,742,827 Total primary government $ 83,311,828 165,165,546 $ 4,855,376 $ 34,568,093 $ 122,735,297 $

City of Redlands
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2022
Program Revenues
See accompanying Notes to the Basic Financial Statements. 32 Redlands Regular Meeting of 02-21-23 Page 303 of 786 Governmental Business-type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government $ - (6,595,523) $ (6,595,523) $
Public safety - (59,727,495) (59,727,495)
Culture and recreation (4,579,025) - (4,579,025)
Highway and streets 16,501,857 - 16,501,857
Library - (2,502,260) (2,502,260)
Interest on long-term debt (738,561) - (738,561)
Total governmental activities (57,641,007) - (57,641,007) Business-type activities:

Water 7,178,655 - 7,178,655
Disposal 6,068,068 - 6,068,068
Wastewater 2,769,461 - 2,769,461
Groves (283,576) - (283,576)
Non-Potable (242,922) - (242,922)
Cemetery 181,539 - 181,539
Aviation (460,467) - (460,467)
Total business-type activities - 15,210,758 15,210,758
Total primary government 15,210,758 (57,641,007) (42,430,249) General Revenues and Transfers:

General revenues:

Taxes:

Property taxes 37,769,495 73,337 37,842,832
Sales and use taxes 48,232,171 - 48,232,171
Franchise taxes 2,625,852 - 2,625,852
Other taxes - 2,706,919 2,706,919
Total taxes 91,334,437 73,337 91,407,774
Investment income (loss) (1,546,892) (2,929,740) (4,476,632) Gain on sale of capital assets - 44,643,370 44,643,370
Intergovernmental - unrestricted 1,308,520 - 1,308,520
Miscellaneous revenue 1,689,391 1,208,057 2,897,448
Transfers (48,127,470) 48,127,470 -
Total general revenues and transfers (5,132,446) 140,912,926 135,780,480 Change in net position 10,078,312 83,271,919 93,350,231 Net Position:

Beginning of year 210,786,824 351,339,962 562,126,786
End of year $ 220,865,136 434,611,881 $ 655,477,017 $
For the Year Ended June 30, 2022
Statement of Activities and Changes in Net Position (Continued) City of Redlands
Net (Expense) Revenue
and Changes in Net Position
See accompanying Notes to the Basic Financial Statements. 33 Redlands Regular Meeting of 02-21-23 Page 304 of 786 This page intentionally left blank.
34 Redlands Regular Meeting of 02-21-23 Page 305 of 786

FUND FINANCIAL STATEMENTS
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36 Redlands Regular Meeting of 02-21-23 Page 307 of 786 Governmental Funds Financial Statements
General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Redlands, these services include general government, public safety, culture and recreation, highway and streets, and library.

Public Facilities Development Special Revenue Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities.

Governmental Grants Special Revenue Fund - This fund accounts for the receipt and expenditure of grant monies received from various agencies for general government projects.

Safety Hall Replacement Capital Projects Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities. 37 Redlands Regular Meeting of 02-21-23 Page 308 of 786 Public Facilities Governmental
Development Grants
General Special Revenue Special Revenue
Fund Fund Fund
ASSETS
Cash and investments $ 83,388,169 $ 1,427,609 $ 7,903,353 Restricted cash and investments - - -
Accounts receivable, net 961,957 - -
Taxes receivable 9,700,055 - -
Lease receivable 5,751,198 - -
Due from other governments 531,164 - 592,216
Prepaid items 721,317 - 3,700
Due from other funds 13,766 - -
Advances to other funds 7,648,335 - -
Total assets $ 108,715,961 $ 1,427,609 $ 8,499,269

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 2,916,830 $ - $ 186,014
Accrued payroll 2,107,701 - 45,355
Deposits payable 2,628,546 - -
Unearned revenues 333,615 - 8,039,723
Due to other funds - - -
Advances from other funds - 7,689,301 -
Total liabilities 7,986,692 7,689,301 8,271,092

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,667,473 - 559,773
Deferred inflows related to leases 5,621,572 - -
Total deferred inflows of resources 7,289,045 - 559,773

Fund Balances:

Nonspendable 8,369,652 - 3,700
Restricted 1,157,866 - -
Committed 12,663,905 - -
Assigned 31,734,961 - -
Unassigned (deficit) 39,513,840 (6,261,692) (335,296)
Total fund balances 93,440,224 (6,261,692) (331,596)
Total liabilities, deferred inflows of
resources, and fund balances $ 108,715,961 $ 1,427,609 $ 8,499,269 (Continued)
Major Funds
City of Redlands
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 38 Redlands Regular Meeting of 02-21-23 Page 309 of 786 Major Funds
Safety Hall
Replacement Non-major Total
Capital Projects Governmental Governmental
Fund Funds Funds
ASSETS
Cash and investments $ 2,560,682 $ 22,615,273 $ 117,895,086 Restricted cash and investments - 1,608,288 1,608,288
Accounts receivable, net - 135,511 1,097,468
Taxes receivable - 917,975 10,618,030
Lease receivable - 116,216 5,867,414
Due from other governments - 50,110 1,173,490
Prepaid items - 9,500 734,517
Due from other funds - - 13,766
Advances to other funds - - 7,648,335
Total assets $ 2,560,682 $ 25,452,873 $ 146,656,394

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - $ 2,629,988 $ 5,732,832
Accrued payroll - 209,615 2,362,671
Deposits payable - 409,027 3,037,573
Unearned revenues - 457,116 8,830,454
Due to other funds - 13,766 13,766
Advances from other funds - - 7,689,301
Total liabilities - 3,719,512 27,666,597

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 202,222 2,429,468
Deferred inflows related to leases - 115,435 5,737,007
Total deferred inflows of resources - 317,657 8,166,475

Fund Balances:

Nonspendable - 39,700 8,413,052
Restricted - 9,980,754 11,138,620
Committed - 11,409,016 24,072,921
Assigned 2,560,682 - 34,295,643
Unassigned (deficit) - (13,766) 32,903,086
Total fund balances 2,560,682 21,415,704 110,823,322
Total liabilities, deferred inflows of
resources, and fund balances $ 2,560,682 $ 25,452,873 $ 146,656,394 (Concluded)
City of Redlands
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 39 Redlands Regular Meeting of 02-21-23 Page 310 of 786 This page intentionally left blank.
40 Redlands Regular Meeting of 02-21-23 Page 311 of 786 Total Fund Balances - Total Governmental Funds $ 110,823,322 Unavailable revenues reported on the Governmental Fund Financial Statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 2,429,468 Capital Assets used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Government-Wide Statement of Net Position 543,297,925
Less: capital assets reported in Internal Service Funds (757,622) Total capital assets 542,540,303
Long-term liabilities are not due and payable in the current period and therefore were not reported in the Governmental Funds Balance Sheet.

Amount reported in Government-Wide Statement of Net Position Compensated absences - due within one year (3,880,088)
Compensated absences - due in more than one year (3,880,087) Long-term debt - due within one year (2,489,603)
Long-term debt - due in more than one year (9,422,681)
Less: amount reported in Internal Service Funds:

Compensated absences - due within one year 201,942
Compensated absences - due in more than one year 201,941 Long-term debt - due within one year 7,068
Long-term debt - due in more than one year 11,270
Total long-term liabilities (19,250,238)
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds. (247,442)
Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not reported in the Governmental Funds Balance Sheet.

Net pension liability (73,876,622)
Total OPEB liability (146,160,286)
Less: amount reported in Internal Service Funds:

Total OPEB liability 12,212,807
Net pension liability 2,537,456
Total OPEB and Pension (205,286,645)
Deferred outflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds Amount reported in Government-Wide Statement of Net Position Deferred outflows of resources related to OPEB 44,728,397 Deferred outflows of resources related to pensions 25,104,907 Less: amount reported in Internal Service Funds:

Deferred outflows of resources related to OPEB (3,507,465) Deferred outflows of resources related to pensions (646,582) Total deferred outflows of resources 65,679,257
Deferred inflows of resources related to OPEB and pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds.

Amount reported in Government-Wide Statement of Net Position Deferred inflows of resources related to OPEB (2,341,463) Deferred inflows of resources related to pensions (45,687,925) Less: amount reported in Internal Service Funds:

Deferred inflows of resources related to OPEB 144,598
Deferred inflows of resources related to pensions 1,748,473 Total deferred inflows of resources (46,136,317)
Internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance, risk management, and information technology, to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position. (15,939,827) Net Position of Governmental Activities $ 434,611,881
Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Redlands
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 41 Redlands Regular Meeting of 02-21-23 Page 312 of 786 Public Facilities Governmental
Development Grants
General Special Revenue Special Revenue
Fund Fund Fund
REVENUES:

Property taxes 35,999,098 $ - $ - $
Sales and use taxes 48,232,171 - -
Other taxes 2,706,919 - -
Franchise fees 2,625,852 - -
Licenses and permits 8,121,859 - -
Fines and forfeitures 191,571 - -
Intergovernmental 1,239,804 - 4,097,557
Charges for services 7,821,186 1,094,573 -
Investment income (loss) (2,572,366) - 9
Rents and leases 1,793,787 - -
Miscellaneous 1,474,949 - -
Total revenues 1,094,573 107,634,830 4,097,566

EXPENDITURES:

Current:

General government 18,849,505 38,624 3,740,556
Public safety 44,303,874 - 290,916
Culture and recreation 5,275,737 - 59,394
Highway and streets 2,173,052 - -
Library - 2,601,164 -
Capital outlay 21,461,706 - 72,210
Debt service:

Principal - 518,464 -
Interest and fiscal charges 209,090 32,211 -
Total expenditures 70,835 95,392,592 4,163,076

REVENUES OVER (UNDER) EXPENDITURES 12,242,238 1,023,738 (65,510) OTHER FINANCING SOURCES (USES):

Inception of finance purchase agreement 3,275,547 - -
Inception of lease payable 196,119 - -
Transfers in 45,779,314 - 240
Transfers out (23,386,161) - -
Total other financing sources (uses) 25,864,819 - 240
NET CHANGE IN FUND BALANCES 38,107,057 1,023,738 (65,270) FUND BALANCES:

Beginning of year 55,333,167 (7,285,430) (266,326)
End of year $ 93,440,224 $ (6,261,692) $ (331,596)
(Continued)
Major Funds
For the Year Ended June 30, 2022
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances City of Redlands
See accompanying Notes to the Basic Financial Statements. 42 Redlands Regular Meeting of 02-21-23 Page 313 of 786 Major Funds
Safety Hall
Replacement Non-major Total
Capital Projects Governmental Governmental
Fund Funds Funds
REVENUES:

Property taxes $ 1,193,168 - $ 37,192,266 $
Sales and use taxes 1,711,608 - 49,943,779
Other taxes - - 2,706,919
Franchise fees - - 2,625,852
Licenses and permits - 711 8,122,570
Fines and forfeitures - 246,661 438,232
Intergovernmental 3,411,427 - 8,748,788
Charges for services - 4,116,276 13,032,035
Investment income (loss) (72,628) (490,155) (3,135,140) Rents and leases 11,556 - 1,805,343
Miscellaneous 102,121 - 1,577,070
Total revenues 10,303,373 (72,628) 123,057,714

EXPENDITURES:

Current:

General government 109,040 608,174 23,345,899
Public safety 5,454,016 - 50,048,806
Culture and recreation - 11,199 5,346,330
Highway and streets - 2,317,980 4,491,032
Library - - 2,601,164
Capital outlay 16,081,270 10,272,489 47,887,675
Debt service:

Principal 1,542,859 - 2,061,323
Interest and fiscal charges - 371,090 612,391
Total expenditures 16,190,310 20,577,807 136,394,620

REVENUES OVER (UNDER) EXPENDITURES (16,262,938) (10,274,434) (13,336,906) OTHER FINANCING SOURCES (USES):

Inception of finance purchase agreement - - 3,275,547
Inception of lease payable - - 196,119
Transfers in 16,081,616 7,999,057 69,860,227
Transfers out - (105,435) (23,491,596)
Total other financing sources (uses) 16,081,616 7,893,622 49,840,297 NET CHANGE IN FUND BALANCES (181,322) (2,380,812) 36,503,391 FUND BALANCES:

Beginning of year 2,742,004 23,796,516 74,319,931
End of year $ 2,560,682 $ 21,415,704 $ 110,823,322
(Concluded)
City of Redlands
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 43 Redlands Regular Meeting of 02-21-23 Page 314 of 786 Total Fund Balances - Total Governmental Funds $ 36,503,391 Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in Net Position the cost of those assets was allocated over their estimated useful lives as depreciation expenses. This is the amount of capital assets recorded in the current period. 47,887,675 In the Government-Wide Statement of Activities, donated assets are reported as a capital contribution. Amount includes $445,361 of highway and streets expenditures classified in various accounts that were reclassified to capital outlay. 20,351,675 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, depreciation expense, net of internal service funds of $280,981, was not reported as expenditures in the Governmental Funds. (8,470,345) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (298,708)
Issuance of long-term liabilities provides current financial resources to governmental funds, but the issuance increased longterm liabilities in the Government-Wide Statement of Net Position.

Notes payable (3,275,547)
Leases payable (196,119)
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Principal payment of long-term debt (net of internal service funds principal payments of $7,040) 2,061,323 Amortization of accreted interest (61,173)
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. (64,886) Compensated absences expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (net of $38,273 deducted in internal service funds). 607,636
Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds. 30,899
Certain pension expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in pension related deferred outflows of resources 1,372,100 Changes in net pension liabilities 37,838,399
Changes in pension related deferred inflows of resources (41,595,440) Certain OPEB expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds.

Changes in OPEB related deferred outflows of resources 27,273,632 Changes in total OPEB liabilities (35,374,836)
Changes in OPEB related deferred inflows of resources 730,753 The internal service funds are used by management to charge the costs of certain activities, such as fleet maintenance, risk management, and information technology to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. (2,048,510)
Change in Net Position of Governmental Activities $ 83,271,919 Amounts reported for Governmental Activities in the Statement of Net Position were different because:

City of Redlands
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 44 Redlands Regular Meeting of 02-21-23 Page 315 of 786 Proprietary Funds Financial Statements
Water Fund - This fund is used to account for the activities of the City's water utility operations, projects, debt service costs, and impact fees of the City.

Disposal Fund - This fund is used to account for the activities of the City's refuse disposal collection operations, projects, debt service costs, and impact fees of the City.

Wastewater Fund - This fund is used to account for the activities of the City's wastewater utility operations, projects, debt service costs, and impact fees of the City.

Internal Service Funds - These funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis. 45 Redlands Regular Meeting of 02-21-23 Page 316 of 786 Water Disposal Wastewater
Fund Fund Fund
ASSETS
Current assets:

Cash and investments $ 57,243,113 $ 18,954,422 $ 21,126,186 Accounts receivable, net 4,889,147 3,723,787 2,183,276
Taxes receivable 35 917 -
Interest receivable - - -
Lease receivable - due within one year 90,913 - -
Due from other governments 1,500 - -
Prepaid items 11,226 - 609
Inventories - - -
Due from other funds - - -
Total current assets 62,235,934 22,679,126 23,310,071
Noncurrent assets:

Restricted cash and investments 682,808 1,370,883 -
Lease receivable - due in more than one year 1,853,520 - - Advances to other funds 789,527 779,471 -
Capital assets:

Non-depreciable 20,132,925 37,469 15,230,265
Depreciable, net 104,717,127 9,193,768 33,606,662
Total capital assets 124,850,052 9,231,237 48,836,927
Total noncurrent assets 128,175,907 11,381,591 48,836,927 Total assets 190,411,841 34,060,717 72,146,998

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 6,366,072 4,615,627 2,599,505
Related to pensions 1,470,160 845,598 677,989
Total deferred outflow of resources 7,836,232 5,461,225 3,277,494 (Continued)
Major Funds
City of Redlands
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 46 Redlands Regular Meeting of 02-21-23 Page 317 of 786 Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds
ASSETS
Current assets:

Cash and investments $ 7,620,730 $ 104,944,451 $ 11,996,944 Accounts receivable, net 334,590 11,130,800 55,965
Taxes receivable 272 1,224 -
Interest receivable - - -
Lease receivable - due within one year 134,115 225,028 - Due from other governments 1,490 2,990 -
Prepaid items - 11,835 572,276
Inventories - - 93,140
Due from other funds - - -
Total current assets 8,091,197 116,316,328 12,718,325
Noncurrent assets:

Restricted cash and investments - 2,053,691 -
Lease receivable - due in more than one year 770,257 2,623,777 - Advances to other funds - 1,568,998 -
Capital assets:

Non-depreciable 15,373,591 50,774,250 -
Depreciable, net 3,426,703 150,944,260 757,622
Total capital assets 18,800,294 201,718,510 757,622
Total noncurrent assets 19,570,551 207,964,976 757,622
Total assets 27,661,748 324,281,304 13,475,947

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 577,191 14,158,395 3,507,465
Related to pensions 82,634 3,076,381 646,582
Total deferred outflow of resources 659,825 17,234,776 4,154,047 (Continued)
City of Redlands
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 47 Redlands Regular Meeting of 02-21-23 Page 318 of 786 Water Disposal Sewer
Fund Fund Fund

LIABILITIES
Current liabilities:

Accounts payable 3,916,119 365,635 1,632,310
Accrued payroll 297,807 229,944 176,873
Interest payable - 123,929 -
Deposits payable 1,789,380 28,685 6,555
Unearned revenue - 33,257 143,282
Compensated absences - due within one year 242,653 117,562 135,264 Claims payable - due within one year - - -
Long-term debt - due within one year 838,019 1,971,575 338,975 Total current liabilities 7,083,978 2,870,587 2,433,259 Noncurrent liabilities:

Advances from other funds - - -
Compensated absences - due in more than one year 242,653 117,561 135,264 Claims payable - due in more than one year - - -
Long term debt - due in more than one year 7,541,707 6,502,669 703,585 Landfill closure - 10,730,423 -
Total OPEB liability 26,788,163 15,668,188 11,341,505
Net pension liability 5,793,924 3,708,201 2,920,272
Total noncurrent liabilities 40,366,447 36,727,042 15,100,626 Total liabilities 47,450,425 39,597,629 17,533,885

DEFERRED INFLOWS OF RESOURCES
Related to leases 1,905,156 - -
Related to OPEB 463,462 176,144 156,300
Related to pensions 3,041,673 1,971,655 1,724,126
Total deferred inflows of resources 5,410,291 2,147,799 1,880,426

NET POSITION
Net investment in capital assets 116,470,326 756,993 47,794,367 Restricted 5,462,600 9,509,579 1,296,115
Unrestricted (deficit) 23,454,431 (12,490,058) 6,919,699 Total net position $ 145,387,357 $ (2,223,486) $ 56,010,181 (Continued)
June 30, 2022
Major Funds
City of Redlands
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 48 Redlands Regular Meeting of 02-21-23 Page 319 of 786 Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 158,788 6,072,852 1,061,629
Accrued payroll 35,871 740,495 675,506
Interest payable 1,748 125,677 -
Deposits payable 1,244,468 3,069,088 -
Unearned revenue 25,920 202,459 -
Compensated absences - due within one year 15,575 511,054 201,942 Claims payable - due within one year - - 7,383,566
Long-term debt - due within one year 47,590 3,196,159 7,068 Total current liabilities 1,529,960 13,917,784 9,329,711 Noncurrent liabilities:

Advances from other funds 1,528,032 1,528,032 -
Compensated absences - due in more than one year 15,575 511,053 201,941 Claims payable - due in more than one year - - 7,383,565 Long term debt - due in more than one year 109,161 14,857,122 11,270 Landfill closure 10,730,423 - -
Total OPEB liability 1,957,780 55,755,636 12,212,807
Net pension liability 200,164 12,622,561 2,537,456
Total noncurrent liabilities 3,810,712 96,004,827 22,347,039 Total liabilities 109,922,611 5,340,672 31,676,750

DEFERRED INFLOWS OF RESOURCES
Related to leases 899,133 2,804,289 -
Related to OPEB 31,301 827,207 144,598
Related to pensions 359,383 7,096,837 1,748,473
Total deferred inflows of resources 1,289,817 10,728,333 1,893,071

NET POSITION
Net investment in capital assets 18,643,543 183,665,229 757,622 Restricted 409,029 16,677,323 -
Unrestricted (deficit) 2,638,512 20,522,584 (16,697,449) Total net position $ 21,691,084 $ 220,865,136 $ (15,939,827) (Concluded)
June 30, 2022
City of Redlands
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 49 Redlands Regular Meeting of 02-21-23 Page 320 of 786 Water Disposal Wastewater
Fund Fund Fund
OPERATING REVENUES:

Charges for services $ 30,131,495 $ 21,066,272 $ 11,998,633 Miscellaneous operating revenue 318,825 19,542 306,826
Total operating revenues 30,450,320 21,085,814 12,305,459 OPERATING EXPENSES:

Salaries and benefits 5,667,127 4,645,445 3,357,361
General and administrative 8,619,938 8,672,300 3,813,526 Parts and supplies 4,102,788 650,997 1,496,954
Utilities 3,840,361 192,668 902,301
Depreciation/amortization 4,083,773 1,146,904 2,194,162 Total operating expenses 26,313,987 15,308,314 11,764,304 OPERATING INCOME (LOSS) 4,136,333 5,777,500 541,155
NONOPERATING REVENUES (EXPENSES):

Investment income (loss) (1,577,643) (597,060) (582,709) Interest expense (221,659) (146,068) -
Property taxes - - -
Operating grants 486,843 21,030 4,122
Gain on sale of capital assets - 21,834,243 22,809,127
Total nonoperating revenues (expenses) (1,312,459) 21,112,145 22,230,540

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 2,823,874 26,889,645 22,771,695 CAPITAL CONTRIBUTIONS AND TRANSFERS:

Capital contributions 3,095,963 435,148 2,531,010
Transfers in 53,261 - -
Transfers out (1,650,488) (24,296,580) (22,344,939)
Total capital contributions and transfers 1,498,736 (23,861,432) (19,813,929) Changes in net position 4,322,610 3,028,213 2,957,766
NET POSITION:

Beginning of year 141,064,747 (5,251,699) 53,052,415
End of year $ 145,387,357 $ (2,223,486) $ 56,010,181
(Continued)
Major Funds
City of Redlands
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 50 Redlands Regular Meeting of 02-21-23 Page 321 of 786 Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds
OPERATING REVENUES:

Charges for services $ 2,780,105 $ 65,976,505 $ 16,573,976 Miscellaneous operating revenue 562,864 1,208,057 81,826 Total operating revenues 3,342,969 67,184,562 16,655,802 OPERATING EXPENSES:

Salaries and benefits 819,914 14,489,847 3,889,417
General and administrative 1,887,758 22,993,522 11,105,711 Parts and supplies 534,649 6,785,388 4,666,529
Utilities 210,912 5,146,242 296,319
Depreciation/amortization 314,582 7,739,421 288,063
Total operating expenses 3,767,815 57,154,420 20,246,039 OPERATING INCOME (LOSS) (424,846) 10,030,142 (3,590,237) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) (172,328) (2,929,740) (217,001) Interest expense (9,922) (377,649) (111)
Property taxes 73,337 73,337 -
Operating grants 119,700 631,695 -
Gain on sale of capital assets - 44,643,370 -
Total nonoperating revenues (expenses) 10,787 42,041,013 (217,112)

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (414,059) 52,071,155 (3,807,349)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 72,506 6,134,627 -
Transfers in 164,538 217,799 3,666,404
Transfers out (53,262) (48,345,269) (1,907,565)
Total capital contributions and transfers 183,782 (41,992,843) 1,758,839 Changes in net position (230,277) 10,078,312 (2,048,510) NET POSITION:

Beginning of year 21,921,361 210,786,824 (13,891,317)
End of year $ 21,691,084 $ 220,865,136 $ (15,939,827)
(Concluded)
For the Year Ended June 30, 2022
City of Redlands
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 51 Redlands Regular Meeting of 02-21-23 Page 322 of 786 Water Disposal Wastewater
Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 20 30,652,831 $ 11 ,167,209 $ ,481,848 Cash payments to suppliers for goods and services (14,998,624) (9,476,803) (7,648,253) Cash payments to employees for services (5,752,335) (4,534,148) (3,530,660) Receipts from other operating activities 19 318,825 306 ,542 ,826 Net cash provided by (used in) operating activities 6,175,800 10,220,697 609,761 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Operating grants 21 485,343 4 ,030 ,122
Property taxes (35) - -
Advances to other funds 56 221,003 - ,780
Advances from other funds - - -
Transfers from other funds 53 - ,261 -
Transfers to other funds (1,650,488) (24,296,580) (22,344,939) Net cash provided by (used in) noncapital financing activities (890,916) (24,218,770) (22,340,817) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (6,744,507) (992,020) (7,393,279) Cash contributions received from developers 435 3,095,963 2 ,148 ,531,010 Proceeds from the sale of assets - 23 23 ,085,436 ,020,436 Principal payment of long-term debt (817,904) (1,969,450) (330,707) Interest paid on debt (221,659) (348,328) -
Net cash provided by (used in) capital and related financing activities (4,688,107) 20,210,786 17,827,460 CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) (1,577,643) (597,060) (582,709) Net cash (used in) investing activities (1,577,643) (597,060) (582,709) Net change in cash and cash equivalents 1,570,756 3,064,031 (4,486,305) CASH AND CASH EQUIVALENTS:

Beginning of year 18,754,549 54,861,890 25,612,491
End of year $ 20,325,305 57,925,921 $ 21,126,186 $

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

Operating income (loss) $ 5,777,500 4,136,333 $ 541,155 $ Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 1,146,904 4,083,773 2,194,162
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 261,489 (895,436) (659,732)
Prepaid items - 142,874 (609)
Inventories - - -
Lease receivable 90 - ,788 -
Deferred outflows - OPEB related (3,665,812) (3,079,282) (1,612,957) Deferred outflows - pension related 93 138,172 77 ,400 ,214 Accounts payable 1,421,589 (14,637) (1,434,863)
Accrued payroll (13,179) 3,739 (14,915)
Deposits payable 299,124 (485) (335)
Unearned revenue - (3,142) 143,282
Compensated absences (58,379) (45,712) (33,038)
Claims payable - - -
Landfill closure 53 - - ,799
Total OPEB liability 3 4,754,682 2 ,993,933 ,092,060
Net pension liability (4,094,168) (2,767,538) (2,287,939) Deferred inflows - lease related (130,065) - -
Deferred inflows - OPEB related (98,220) 199,750 (43,217) Deferred inflows - pension related 1 2,951,696 1 ,713,007 ,649,493 Total adjustments 6,084,364 398,300 68,606
Net cash provided by (used in) operating activities $ 6,175,800 10,220,697 $ 609,761 $ Major Funds
City of Redlands
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 52 Redlands Regular Meeting of 02-21-23 Page 323 of 786 Governmental
Activities
Non-major Internal
Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 65 2,980,071 $ 17 ,281,959 $ ,209,905 Cash payments to suppliers for goods and services (2,999,886) (35,123,566) (14,544,773) Cash payments to employees for services (855,231) (14,672,374) (3,834,577) Receipts from other operating activities 1 562,864 81 ,208,057 ,826 Net cash provided by (used in) operating activities (312,182) 16,694,076 (1,087,619) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Operating grants 628 118,210 - ,705
Property taxes 73 73,487 - ,452
Advances to other funds 277 - - ,783
Advances from other funds (206,105) (206,105) -
Transfers from other funds 217 164,538 3 ,799 ,666,404
Transfers to other funds (53,262) (48,345,269) (1,907,565) Net cash provided by (used in) noncapital financing activities 96,868 (47,353,635) 1,758,839 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (15,129,806) -
Cash contributions received from developers 6 72,506 - ,134,627 Proceeds from the sale of assets - 46 - ,105,872
Principal payment of long-term debt (47,032) (3,165,093) (7,040) Interest paid on debt (10,243) (580,230) (111)
Net cash provided by (used in) capital and related financing activities 33,365,370 15,231 (7,151) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) (172,328) (2,929,740) (217,001) Net cash (used in) investing activities (172,328) (2,929,740) (217,001) Net change in cash and cash equivalents (372,411) (223,929) 447,068 CASH AND CASH EQUIVALENTS:

Beginning of year 107,222,071 7,993,141 11,549,876
End of year $ 106,998,142 7,620,730 $ 11,996,944 $

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

Operating income (loss) $ (424,846) $ 10,030,142 $ (3,590,237) Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 7,739,421 314,582 288,063
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 80,161 (1,213,518) 635,929
Prepaid items 142 - ,265 (390,057)
Inventories - - 757
Lease receivable 104 195 ,395 ,183
Deferred outflows - OPEB related (366,582) (8,724,633) (2,346,121) Deferred outflows - pension related 325 16,262 83 ,048 ,234 Accounts payable (366,567) (394,478) (553,710)
Accrued payroll (10,721) (35,076) 64,080
Deposits payable 409 111,665 - ,969
Unearned revenue 153 13,379 - ,519
Compensated absences (5,459) (142,588) (38,273)
Claims payable - - 2 ,466,796
Landfill closure 53 - - ,799
Total OPEB liability 11 475,469 3 ,316,144 ,042,997
Net pension liability (481,868) (9,631,513) (2,466,296) Deferred inflows - lease related (109,634) (239,699) -
Deferred inflows - OPEB related (9,822) 48,491 (62,860) Deferred inflows - pension related 6 347,404 1 ,661,600 ,778,079 Total adjustments 112,664 6,663,934 2,502,618
Net cash provided by (used in) operating activities $ (312,182) $ 16,694,076 $ (1,087,619) Statement of Cash Flows (Continued)
City of Redlands
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 53 Redlands Regular Meeting of 02-21-23 Page 324 of 786 This page intentionally left blank.
54 Redlands Regular Meeting of 02-21-23 Page 325 of 786 Fiduciary Funds Financial Statements
Community Facility District Custodial Fund - This fund accounts for the collection and subsequent expenditure retained for various community facility districts.

RDA Successor Agency Private Purpose Trust Fund - This fund accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. 55 Redlands Regular Meeting of 02-21-23 Page 326 of 786 This page intentionally left blank.
56 Redlands Regular Meeting of 02-21-23 Page 327 of 786 Community RDA
Facilities Successor Agency
District Private Purpose
Custodial Fund Trust Fund
ASSETS
Cash and investments $ - $ 2,096,810
Restricted cash and investments with fiscal agent 3,019,384 1,599 Total assets 3,019,384 2,098,409

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 7,542
Total deferred outflows of resources - 7,542

LIABILITIES
Accounts payable 2,807 -
Accrued liabilities - 799
Interest payable - 39,135
Long-term debt - due within one year - 2,516,003
Total liabilities 2,807 2,555,937

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 3,016,577 - Held in trust for dissolution of RDA (deficit) - (449,986) Total net position (deficit) $ 3,016,577 $ (449,986)
City of Redlands
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 57 Redlands Regular Meeting of 02-21-23 Page 328 of 786 Community RDA
Facilities Successor Agency
District Private Purpose
Trust Fund Trust Fund
ADDITIONS:

Fee collections for other governments $ 1,542,578 $ -
Investment income (loss) 124 (66,877)
RDA property tax trust fund distribution - 2,608,218
Total additions 1,542,702 2,541,341
DEDUCTIONS:

Administration 26,612 18,656
Contractual services 2,807 2,700
Interest expense - 5,264
Conduit debt payment - principal 830,000 -
Conduit debt payment - interest 643,073 -
Total deductions 1,502,492 26,620
Change in net position 40,210 2,514,721
NET POSITION (DEFICIT):

Beginning of year 2,976,367 (2,964,707)
End of period $ 3,016,577 $ (449,986)
City of Redlands
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 58 Redlands Regular Meeting of 02-21-23 Page 329 of 786 59 NOTES TO THE BASIC FINANCIAL STATEMENTS
Redlands Regular Meeting of 02-21-23 Page 330 of 786
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Redlands Regular Meeting of 02-21-23 Page 331 of 786
City of Redlands
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
61 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................. 65 A. Financial Reporting Entity ........................................................................................................................ 65 B. Basis of Presentation, Accounting and Measurement Focus ..................................................................... 66 C. Deferred Outflows and Inflows of Resources ........................................................................................... 70 D. Cash, Cash Equivalents and Investments .................................................................................................. 70 E. Restricted Cash and Investments ............................................................................................................... 71 F. Receivables ................................................................................................................................................ 72 G. Interfund Transactions ............................................................................................................................... 72 H. Inventories and prepaid items .................................................................................................................... 72 I. Leases ........................................................................................................................................................ 72 J. Capital Assets ............................................................................................................................................ 74 K. Long Term Debt ........................................................................................................................................ 74 L. Compensated Absences ............................................................................................................................. 75 M. Claims and Judgements Payable ................................................................................................................ 75 N. Pension Plans ............................................................................................................................................. 75 O. Other Postemployment Benefits (OPEB) .................................................................................................. 76 P. Encumbrances ............................................................................................................................................ 76 Q. Fund Balances ........................................................................................................................................... 76 R. Net Position ............................................................................................................................................... 78 S. Property Taxes ........................................................................................................................................... 78 T. Use of Accounting Estimates .................................................................................................................... 78 U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 ............................... 78 V. Upcoming Government Accounting Standards Implementations ............................................................. 80 Note 2 – Cash and Investments .................................................................................................................................. 81 A. Demand Deposits ....................................................................................................................................... 82 B. Investments Authorized by the California Government
Code and the City’s Investment Policy ............................................................................................... 82 C. Investments Authorized by Debt Agreements ........................................................................................... 83 D. Fair Value Measurement ........................................................................................................................... 84 E. Risk Disclosure .......................................................................................................................................... 84 F. Investment in State Investment Pool ......................................................................................................... 86 Note 3 – Leases Receivable ......................................................................................................................................... 87 A. Governmental Activities ............................................................................................................................ 87 B. Business-Type Activities ........................................................................................................................... 88 Note 4 – Interfund Receivables, Payables, and Transfers ....................................................................................... 89 A. Due To / From Other Funds ...................................................................................................................... 89 B. Advance From/ From Other Funds ............................................................................................................ 89 C. Transfers .................................................................................................................................................... 90 Redlands Regular Meeting of 02-21-23 Page 332 of 786
City of Redlands
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
62 Page
Note 5 – Capital Assets ............................................................................................................................................... 91 A. Governmental Activities ............................................................................................................................ 91 B. Business-Type Activities ........................................................................................................................... 92 Note 6 – Long-Term Liabilities .................................................................................................................................. 93 A. Governmental Activities ............................................................................................................................ 93 B. Business-Type Activities ........................................................................................................................... 95 C. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of Redlands ............................................................................................................................ 100 Note 7 – Special Assessment Debt with No City Commitment ............................................................................. 100 Note 8 – Compensated Absences .............................................................................................................................. 101 A. Governmental Activities .......................................................................................................................... 101 B. Business-Type Activities ......................................................................................................................... 102 Note 9 – Landfill Closure .......................................................................................................................................... 102 Note 10 – Pension Plans ............................................................................................................................................ 103 A. Summary ................................................................................................................................................. 103 B. City Miscellaneous Plans ........................................................................................................................ 104 C. City Safety Plans ..................................................................................................................................... 109 Note 11 – Other Postemployment Benefits ............................................................................................................. 115 A. Summary ................................................................................................................................................. 115 B. General Information about OPEB ........................................................................................................... 115 C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................................................................................... 117 Note 12 – Risk Management ..................................................................................................................................... 120 A. Coverage .................................................................................................................................................. 120 B. Claims Activity ........................................................................................................................................ 120 Redlands Regular Meeting of 02-21-23 Page 333 of 786
City of Redlands
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
63 Page
Note 13 – Fund Balance and Net Position ............................................................................................................... 121 A. Fund Balance/Net Position Deficits ........................................................................................................ 121 B. Expenditures Exceeding Appropriations ................................................................................................. 122 Note 14 – Fund Balance Classification .................................................................................................................... 123 Note 15 – Net Investments in Capital Assets .......................................................................................................... 124 Note 16 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment ............................... 124 Note 17 – Tax Abatements – Economic Development Incentives ......................................................................... 125 Note 18 – Endowments ............................................................................................................................................. 125 Note 19 – Commitments and Contingencies ........................................................................................................... 126 A. Litigation ................................................................................................................................................. 126 B. Sales Tax – Donut Hole ........................................................................................................................... 126 C. Federal and State Grants .......................................................................................................................... 126 D. Contractual Commitments ....................................................................................................................... 127 Redlands Regular Meeting of 02-21-23 Page 334 of 786
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Redlands Regular Meeting of 02-21-23 Page 335 of 786
City of Redlands
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
65 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Redlands, California (City) have been prepared in conformity with Generally Accepted Accounting Principles of the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards in the United States. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Redlands ("City") is a municipal corporation governed by a five-member city council with the mayor elected by the council itself. The City was incorporated in 1888 under the general laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City provides the following services:
police; building inspection; parks and streets; water; disposal; sanitation; leisure services; planning and zoning; general administration services; aviation; and redevelopment.

Blended Component Units
The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Blended component units, although legally separate entities, are, in substance part of the government’s operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.

Although the following are legally separate from the City, they have been “blended” as though they are part of the City because the component unit’s governing body is substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

Redlands Public Improvement Corporation
The Redlands Public Improvement Corporation (“Corporation”) was organized in June 1985 pursuant to the Nonprofit Public Benefit Corporation Law of the State of California, solely for the purpose of providing financial assistance to the City by acquiring, constructing, improving, developing and installing certain real and personal property together with appurtenances and appurtenant work for the use, benefit and enjoyment of the public. The corporation was formed at the request of the City and the directors receive no compensation. The corporation is presented as a governmental fund type.

Redlands Joint Powers Financing Authority (JPFA)
The Redlands Financing Authority (“Authority”) was established May 1, 1999, pursuant to the Joint Exercise of Powers Laws of the State of California. The Authority was created by the former Redevelopment Agency and the City for the primary purpose of assisting the financing of capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits. No separate annual financial statements are prepared for the Authority.

Redlands Regular Meeting of 02-21-23 Page 336 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued)
Related Organizations
The City of Redlands’ officials are also responsible for appointing members of the boards of other organizations, but the City of Redlands’ accountability for these organizations does not extend beyond making the appointments.

The board of the Friends of the A.K. Smiley Public Library and the Redlands Historical Museum Association are appointed by the City Council.

B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets 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 in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities and deferred inflows of resources resulting from non-exchange transactions are recognized in accordance with the requirements of U.S. GAAP.

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Program revenues for the City are classified in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Redlands Regular Meeting of 02-21-23 Page 337 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due to/from other funds
 Advance to/from other funds
 Transfers in/out
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An accompanying schedule is presented to reconcile and explain the differences in Net Position 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 Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days for all revenues except grants, which use a six-month availability period.

Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period.

Other revenue items are considered to be measurable and available when cash is received by the government.

Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place.

Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions have been recognized as revenues when all applicable eligibility requirements have been met.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.

Redlands Regular Meeting of 02-21-23 Page 338 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
The City reports the following major governmental funds:

General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Redlands, these services include general government, public safety, culture and recreation, highway and streets, and library.

Public Facilities Development Special Revenue Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities.

Governmental Grants Special Revenue Fund - This fund accounts for the receipt and expenditure of grant monies received from various agencies for general government projects.

Safety Hall Replacement Capital Projects Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include funds which provide services directly to other City funds. These areas of service include fleet maintenance, risk management, and information technology.

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 Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

Redlands Regular Meeting of 02-21-23 Page 339 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
The City reports the following major proprietary funds:

Water Fund - This fund is used to account for the activities of the City's water utility operations, projects, debt service costs, and impact fees of the City.

Disposal Fund - This fund is used to account for the activities of the City's refuse disposal collection operations, projects, debt service costs, and impact fees of the City.

Wastewater Fund - This fund is used to account for the activities of the City's wastewater utility operations, projects, debt service costs, and impact fees of the City.

Internal service fund balances and activities have been combined with governmental activities in the GovernmentWide Financial Statements, and are comprised of the following funds:

General Liability Self-Insurance Fund - This fund is used to account for the City’s self-insured general and automobile liability programs, which are provided to all City departments and funds.

Information Technology Fund - This fund is used to account for the general maintenance and service of all City computers and phone equipment provided to all City departments.

Workers' Compensation Self-Insurance Fund - This fund is used to account for the City’s self-insured Workers’ Compensation and General Safety Programs, which are provided to all City departments and funds.

Equipment Maintenance Fund - This fund is used to account for providing ongoing maintenance of all City vehicles and major equipment and to account for vehicle rental services to all City departments.

Utility Billing Fund - This fund is used to account for billing services costs provided for water, sewer, and solid waste.

Payroll Clearing Fund - This fund is used to account for the City’s reoccurring payroll obligations.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.

Fiduciary fund types are accounted for according to the nature of the fund. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). They are also used to account for various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts. Such funds include Community Facilities Districts.

Redlands Regular Meeting of 02-21-23 Page 340 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation, Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued)
The City’s private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor Agency to the Redevelopment Agency (Successor Agency) for the City of Redlands. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position.

Successor Agency of the Redevelopment Agency for the City of Redlands The Redevelopment Obligation Retirement Fund was created to serve as a custodian for the assets and to wind down the affairs of the RDA on February 1, 2012, pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency (RDA). The Successor Agency is a separate public entity from the City, subject to the direction of an oversight board. The City Council serves as the governing board of the Successor Agency. In general, the Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, the Successor Agency will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former RDA until all enforceable obligations of the former RDA have been paid in full and all assets have been liquidated. Based upon the nature of the Successor Agency’s custodial role, the Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. In February 2015, the California Department of Finance (Finance) approved the City’s revised Long-Range Property Management Plan (LRPMP), with the assets deemed for governmental use and future development.

C. Deferred Outflows and Inflows of Resources
The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent a consumption of net assets that applies to future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

Deferred Inflows of Resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.

Investments are reported in the accompanying financial statements at fair value, except for certain investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, and may result in negative investment income in the accompanying financial statements. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

Redlands Regular Meeting of 02-21-23 Page 341 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 1 – Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents and Investments (Continued)
Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for investment income associated with funds not legally required to receive pooled investment income which has been assigned to and recorded as revenue of the general fund, as provided by California Government Code Section 53647.

For purposes of the statement of cash flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

Certain disclosure requirements, if applicable, for deposits and investment risks in the following areas:
 Interest rate risk
 Credit risk
- Overall
- Custodial credit risk
- Concentration of credit risk
 Foreign currency risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

U.S. GAAP establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 – Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

E. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements.

Redlands Regular Meeting of 02-21-23 Page 342 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 1 – Summary of Significant Accounting Policies (Continued) F. Receivables
Customer or trade receivables are reported as “accounts receivable” and are shown net of an allowance for uncollectible accounts based on historical and management estimates.

Noncurrent portions of long-term receivables (e.g., “notes receivable”) due to governmental fund types are reported in their respective balance sheets despite their spending measurement focus. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables.

Noncurrent portions of long-term notes receivable are offset by restricted fund balance in the special revenue funds.

G. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and businesstype activities are reported in the Governmental-Wide Financial Statements as “internal balances.” H. Inventories and prepaid items
Inventory, consisting of expendable supplies, is valued at first in first out basis. The cost of governmental funds inventory is recorded as expenditure at the time the individual inventory is consumed. Prepaid items are recorded at cost. Using the consumption method, prepaid items are recorded as expenditures over the period that service is provided. Reported inventory and prepaid items are equally offset by a fund balance reservation, which indicates that they do not constitute “available spendable resources” even though they are a component of current assets.

I. Leases
Lessee
The City has a policy to recognize a lease liability and a right‐to‐use lease asset (lease asset) in the government‐ wide financial statements. The City recognizes lease liabilities with an initial, individual value of $25,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Redlands Regular Meeting of 02-21-23 Page 343 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 1 – Summary of Significant Accounting Policies (Continued) I. Leases (Continued)
Lessee (Continued)
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with longterm debt on the Statement of net position.

Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial Statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Redlands Regular Meeting of 02-21-23 Page 344 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 1 – Summary of Significant Accounting Policies (Continued) J. Capital Assets
Capital assets, which include land, rights of way, structures, equipment, and infrastructure assets, the right to use leased equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are recorded at historical cost (except for intangible right‐to‐use lease assets) or estimated historical cost if purchased or constructed. Donated assets are valued at the fair value of the assets on the date on which they were contributed. Donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. The City utilizes a capitalization threshold of $5,000 depending on asset type.

Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debtfinanced capital assets, interest incurred during the construction phase is reflected in the capitalization value of the asset constructed, net of interest earned on the invested proceeds over the same period. Capital assets acquired through lease obligations are valued at the present value of future lease payments at the date acquired. Contributed capital assets are valued at their estimated acquisition value at the date of contribution.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide financial statements and in the fund financial statements of the proprietary funds.

Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The range of lives used for depreciation purposes for each capital asset class is as follows:

Asset Type Years
Infrastructure 20-75
Buildings and improvement 10-40
Machinery, equipment, and vehicles 3-25
K. Long-Term Debt
Government-Wide Financial Statements and Proprietary Fund Financial Statements Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts are deferred and amortized over the life of the bonds using straight line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed when incurred. Gains or losses on bond refunding are reported as either deferred outflows of resources or deferred inflows of resources and amortized over the term of the related debt.

Governmental Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. Governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Debt issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Redlands Regular Meeting of 02-21-23 Page 345 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 1 – Summary of Significant Accounting Policies (Continued) L. Compensated Absences
A total of 10 to 25 days of vacation and 12 days of sick leave per year may be accumulated by each employee. The City accrues a liability for compensated absences which meets the following criteria:
1) The City's obligation relating to employees' rights to receive compensation for future absences is attributable to employees' services already rendered.
2) The obligation relates to rights that vest or accumulate. Payment of the compensation is probable. 3) The amount can be reasonably estimated.

Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses when earned.

Fund Financial Statements
For governmental funds, compensated absences are recorded as expenditures in the year paid. The General Fund is typically used to liquidate compensated absences. 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 a longterm liability of the fund.

M. Claims and Judgments Payable
The short-term and long-term workers’ compensation claims liability is reported in the Workers’ Compensation Insurance Internal Service Fund. The short-term and long-term general claims liability is reported in the Comprehensive Liability Insurance Internal Service Fund. The short-term liability which will be liquidated with current financial resources is the amount of settlement reached, but unpaid, related to claims and judgments entered.

Under the modified accrual basis, the following revenue sources are considered to be susceptible to accrual:
property taxes, sales taxes, federal and state grants.

N. Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the 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 (Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City's governmental activities while the pension liability for Business-type activities is liquidated from the respective Enterprise Funds.

The following timeframes are used for pension reporting:

CalPERS
Valuation date June 30, 2020
Measurement date June 30, 2021
Measurement period July 1, 2020 to June 30, 2021
Redlands Regular Meeting of 02-21-23 Page 346 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 1 – Summary of Significant Accounting Policies (Continued) N. Pension Plans (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 deferred inflows of resources 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 and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-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 Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB plan, the assets of which are held in an irrevocable trust, and additions to/deductions from the OPEB plan’s fiduciary net position have been determined by an independent actuary (Note 11). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund and Internal Service Funds are typically used to liquidate the OPEB liability related to the City's governmental activities while the OPEB liability for Business-type activities is liquidated from the respective Enterprise Funds.

Generally accepted accounting principles require that the reported results must pertain to liability and fiduciary net position information within certain defined timeframes. For this report, the following timeframes are used:

OPEB
Valuation date June 30, 2021
Measurement date June 30, 2021
Measurement period July 1, 2020 to June 30, 2021
P. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the governmental funds.

Q. Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable – Items cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Redlands Regular Meeting of 02-21-23 Page 347 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 1 – Summary of Significant Accounting Policies (Continued) Q. Fund Balances (Continued)
Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making (normally the governing body) and that remain binding unless removed in the same manner. The County Council is considered the highest authority for the City. A City Council resolution is required to have fund balance committed.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has not delegated the authority to assign fund balance to management.

Unassigned – This category is for any balances that have no restrictions placed upon them. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned and unassigned fund balance). In order to calculate the amounts to report as restricted and unrestricted, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned and then unassigned fund balance.

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

Stabilization Arrangement
As described in Chapter 3.06 of the Municipal Code, the City has established a stabilization arrangement committing a minimum of 12 percent of the sum of the General Fund’s operating expenses and operating transfers out. The balance at June 30, 2022, is $9,231,885 and is included in committed fund balance. These funds may be used only when the City is faced with an unforeseen or uncontrollable event which includes but is not limited to:
1) Local revenue shortfalls due to a major business closure or relocation. 2) Legislative or judicial mandates to provide new or expanded services or programs that, in total, cost the City $200,000 or more.
3) Natural and civil disasters such as earthquakes, fires, floods, riots and health epidemics.

Redlands Regular Meeting of 02-21-23 Page 348 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 1 – Summary of Significant Accounting Policies (Continued) R. Net Position
For the Government-Wide Financial Statements, net position is classified in the following categories:

Net Investment in Capital Assets component of net position consists of capital assets, net of accumulated depreciation and reduced by any debt outstanding and any deferred outflows/inflows of resources related to such borrowings that are attributable to the acquisition, construction or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investment in capital assets. Rather, that portion of the debt is offset by unspent proceeds.

Restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, then unrestricted resources that are needed.

S. Property Taxes
With the passage of Proposition 13 in 1978 (Article XIIIA, California State Constitution), property taxes are limited to one percent of market value, plus additional taxes for repayment of existing or subsequent voter- approved indebtedness. Under Article XIIIA, the market value of taxable property is subject to a maximum annual increase of two percent. Market value may be appraised at significantly more than two percent depending on other factors such as improvements, sale or change of ownership. The City receives a portion of the one percent general tax levy which is shared by several other local governments including the county and the school district. The City's share is based on a formula prescribed in Section 26912(b) of the Government Code. The county apportions property taxes to the City on a scheduled basis which generally adheres to the actual tax collection periods. The tax lien date is January 1 of each year and covers the ensuing fiscal year's tax returns. The tax levy date is from July 1 to June 30 of each year. The first installment becomes due on November 1 with penalties and interest accruing after December 10. The second installment is due no later than April 10.

T. Use of Accounting Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions, in some cases when applicable, that affect the amounts in the financial statements and the accompanying notes. Actual results could differ from the estimates.

U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2022. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.

Redlands Regular Meeting of 02-21-23 Page 349 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 1 – Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 (Continued) GASB Statement No. 87
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Implementation of this Statement had a significant effect on the State’s financial statements for the year ended June 30, 2022.

GASB Statement No. 89
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5–22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

GASB Statement No. 92
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

GASB Statement No. 93
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR)—most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

Redlands Regular Meeting of 02-21-23 Page 350 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 1 – Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements for the Year Ended June 30, 2022 (Continued) GASB Statement No. 97
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2022.

V. Upcoming Government Accounting Standards Implementations The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements:

GASB Statement No. 91
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures.

Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 94
In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

Redlands Regular Meeting of 02-21-23 Page 351 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 1 – Summary of Significant Accounting Policies (Continued) V. Upcoming Government Accounting Standards Implementations (Continued) GASB Statement No. 96
In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for the City’s fiscal year ending June 30, 2023.

GASB Statement No. 99
In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2023.

GASB Statement No. 100
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2024.

GASB Statement No. 101
In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the Authority’s fiscal year ending June 30, 2025.

Note 2 – Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2022 as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 129,892,030 $ 104,944,451 $ 234,836,481 $ 2,096,810 $ 236,933,291 Cash and investments with fiscal agent 1,608,288 2,053,691 3,661,979 3,020,983 6,682,962 Total cash and investments $ 131,500,318 $ 106,998,142 $ 238,498,460 $ 5,117,793 $ 243,616,253 Government-Wide Statement of Net Position
Redlands Regular Meeting of 02-21-23 Page 352 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 2 – Cash and Investments (Continued)
Cash and investments at June 30, 2022, consisted of the following:

Cash:

Cash on hand $ 4,250
Deposits with financial institution 37,043,019
Total cash 37,047,269
Investments:

Investments 199,886,022
Investments held by bond trustee 6,682,962
Total investments 206,568,984
Total cash and investments $ 243,616,253
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held an invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

A. Demand Deposits
The carrying amounts of the City’s demand deposits were $37,043,019 at June 30, 2022. Bank balances were $37,866,255 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the City's name.

The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-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 the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustees 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.

Redlands Regular Meeting of 02-21-23 Page 353 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City’s Investment Policy (Continued) Authorized Maximum Maximum
By Investment Maximum Percentage Investment in
Authorized Investment Types Policy Maturity of Portfolio One Issuer* Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 5 years None None
U.S. Agency Securities Yes 5 years None None
Banker's Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
Negotiable Certificates of Deposit Yes 5 years 30% 30%
Repurchase Agreements Yes 7 days None None
Reverse Repurchase Agreements No 92 days None None
Medium-Term Notes Yes 5 years 15% 15%
Mutual Funds Yes N/A 10% 10%
Money Market Mutual Funds Yes N/A 10% 10%
Mortgage Pass-Through Securities No 5 years None None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A $75 Million** None JPA Pools (other investment pools) Yes N/A None None
** Limit set by LAIF governing Board not California Government Code * Based on state law requirements or City investment policy requirements, whichever is more restrictive.

In accordance with the City's investment policy, a maximum of 25% of the City's investment portfolio may be invested for more than 5 years, not to exceed 10 years.

C. Investments Authorized by Debt Agreements
Investments of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Maximum Maximum Maximum
Maximum Percentage Percentage Investment in
Authorized Investment Types Maturity Allowed of Portfolio One Issuer U.S. Treasury Obligations 5 years None None None
U.S. Agency Securities 5 years None None None
Banker's Acceptances 180 days 40% 30% 30%
Commercial Paper 270 days 15% 15% 15%
Money Market Mutual Funds N/A None None None
Investment Contracts 30 years None None None
Redlands Regular Meeting of 02-21-23 Page 354 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2022, investments, excluding restricted cash and investments held by fiscal agent, are reported at fair value based on quoted market prices. The following table presents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022:

Investments measured by fair value level: June 30, 2022 Level 1 Level 2 Federal Agency Securities 93,308,128 $ - $ 93,308,128 $ Corporate Bonds 32,361,421 - 32,361,421
Negotiable Certificates of Deposit 14,843,742 - 14,843,742 Municipal Bonds 16,047,583 16,047,583 -
Mutual Funds 225,392 225,392 -
U.S. Treasury Notes 8,573,830 8,573,830 -
Total investments by fair value level 165,360,096 $ 8,799,222 $ 156,560,874 Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 34,525,926
Money market mutual funds 6,682,962
Total investments not subject to the fair value hierarchy 41,208,888 Total investments $ 206,568,984
Debt and equity securities classified in Level 2 are valued using the following approaches:
• U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active;
• Medium term notes: quoted prices for similar securities in active markets; and • Asset-backed securities: recent appraisals of the asset value.

E. Risk Disclosure
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Redlands Regular Meeting of 02-21-23 Page 355 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 2 – Cash and Investments (Continued)
E. Risk Disclosure (Continued)
Disclosures Relating to Interest Rate Risk (Continued)
12 Months 13 to 24 25 to 36 37 to 48 More than 48
Investment Type or less Months Months Months Months Total Held by City:

Federal Agency Securities 3,975,290 $ 12,697,160 $ 20,992,093 $ 25,853,429 $ 29,790,156 $ 93,308,128 $ Corporate Bonds 6,586,971 7,718,280 9,621,290 6,582,910 1,851,970 32,361,421 Negotiable Certificates of Deposit 3,447,746 3,173,961 3,572,636 2,053,749 2,595,650 14,843,742 Municipal Bonds 3,629,688 5,401,590 3,222,163 2,212,967 1,581,175 16,047,583 U.S. Treasury Notes 1,963,320 967,580 993,280 2,830,000 1,819,650 8,573,830 Mutual Funds 225,392 - - - - 225,392
Local Agency Investment Fund 34,525,926 - - - - 34,525,926 Held by Trustees:

Money Market Funds 6,682,962 - - - - 6,682,962
Total investments $ 29,958,571 61,037,295 $ 38,401,462 $ 39,533,055 $ 37,638,601 $ 206,568,984 $ Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual Moody’s rating as of year-end for each investment type.

Investment Type Total
Minimum
Legal Rating
AA+/
AA/AA- A+/A/A- AAA/AAAm A-1+/A-1/A-2 Not Rated
Held by City:

Federal Agency Securities 93,308,128 $ N/A 39,427,138 $ - $ 7,974,670 $ - $ 45,906,320 $ Corporate Bonds 32,361,421 A 8,876,100 19,635,941 3,849,380 - - Negotiable Certificates of Deposit 14,843,742 N/A - - - 14,843,742 - Municipal Bonds 16,047,583 A 14,060,083 1,987,500 - - - Mutual Funds 225,392 N/A - 225,392 - - -
Held by Trustee:

Money Market Funds 6,682,962 - - - 6,682,962 -
Total Rated Investments 163,469,228 $ 62,363,321 $ 19,635,941 $ 14,036,942 $ 67,433,024 - $ Not rated:

Local Agency Investment Fund 34,525,926 N/A
Exempt from credit rating disclosure:

U.S. Treasury Notes 8,573,830 N/A
Total investments $ 206,568,984
Redlands Regular Meeting of 02-21-23 Page 356 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 2 – Cash and Investments (Continued)
E. Risk Disclosure (Continued)
Disclosure Relating to Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5 percent or more of total City investments are as follows:

Reported Percentage
Amount of Portfolio
$ 25.47% 52,617,456

6.46% 13,349,490
Federal Agency Securities 6.44% 13,308,970
Investment Type
Federal Agency Securities
Federal Agency Securities
Federal Farm Credit Bank
Federal Home Loan Mortgage Corporation
Federal Home Loan Bank
Issuer
Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2022, the City’s deposits (bank balances) were collateralized under California Law.

F. Investment in State Investment Pool
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structure 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, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

Redlands Regular Meeting of 02-21-23 Page 357 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 2 – Cash and Investments (Continued)
F. Investment in State Investment Pool (Continued)
As of June 30, 2022, the City had $34,525,926 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Back Securities. 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 fair value is not readily available. The City valued its investments in LAIF as of June 30, 2022, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The fair value of the City’s position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2022.

Note 3 – Lease Receivable
A. Governmental Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 1 to 30 years.

The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2022, the City recognized $1,478,945 in lease revenue and $56,516 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Leases receivable $ 7,005,851 $ 210,100 $ (1,348,537) $ 5,867,414 $ 1,357,883 $ 4,509,531 Total $ 7,005,851 $ 210,100 $ (1,348,537) $ 5,867,414 $ 1,357,883 $ 4,509,531 Classification
As of June 30, 2022, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2023 1,357,883 $ 54,774 $ $ 1,412,657
2024 1,120,027 46,709 1,166,736
2025 904,674 39,091 943,765
2026 655,113 32,198 687,311
2027 322,932 27,624 350,556
2028-2032 666,180 100,271 766,451
2033-2037 411,993 59,308 471,301
2038-2042 375,674 22,954 398,628
2043 52,938 381 53,319
Total $ 5,867,414 $ 383,310 $ 6,250,724
Redlands Regular Meeting of 02-21-23 Page 358 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 3 – Lease Receivable (Continued)
A. Governmental Activities (Continued)
As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2023 1,416,228 $
2024 1,141,483
2025 903,519
2026 646,362
2027 325,713
2028-2032 766,275
2033-2037 259,761
2038-2042 248,526
2043 29,140
Total $ 5,737,007
B. Business-Type Activities
The portion of the City’s property is leased to others. Such property includes special purpose facilities, office and commercial space, and land. Lease receivable consists of agreements with other for the right-to-use of the underlying assets at various locations owned by the City. The terms of the arrangements range from 2 to 30 years.

The calculated interest rates used vary depending on the length of the lease. For the fiscal year ended June 30, 2022, the City recognized $268,916 in lease revenue and $46,172 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year $ 3,043,988 $ 29,217 $ (224,400) $ 2,848,805 $ 225,028 $ 2,623,777 $ 3,043,988 $ 29,217 $ (224,400) $ 2,848,805 $ 225,028 $ 2,623,777 Classification
As of June 30, 2022, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2023 225,028 $ 47,306 $ $ 272,334
2024 229,628 43,981 273,609
2025 227,499 40,580 268,079
2026 216,649 37,180 253,829
2027 230,833 33,631 264,464
2028-2032 785,399 118,155 903,554
2033-2037 219,853 83,657 303,510
2038-2042 293,857 57,994 351,851
2043-2047 383,771 24,121 407,892
2048 36,288 183 36,471
Total $ 2,848,805 $ 486,788 $ 3,335,593
Redlands Regular Meeting of 02-21-23 Page 359 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 3 – Lease Receivable (Continued)
B. Business-Type Activities (Continued)
As of June 30, 2022, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2023 269,551 $
2024 269,551
2025 262,776
2026 242,451
2027 242,451
2028-2032 850,720
2033-2037 185,005
2038-2042 231,256
2043-2047 231,256
2048 19,271
Total $ 2,804,288
Note 4 – Interfund Receivables, Payables, and Transfers A. Due To / From Other Funds
At June 30, 2022, the City reported a short term cash flow borrowing of $13,766 between the General Fund and the Transportation Development Act Special Revenue Fund to cover deficit cash positions.

B. Advance From / From Other Funds
As of June 30, 2022, advances to/from other funds were as follows:

Advances To Advances From Amount
General Fund Public Facilities Development Special Revenue Fund 7,648,335 $ Water Enterprise Fund Public Facilities Development Special Revenue Fund 40,966 Water Enterprise Fund Cemetery Enterprise Fund 748,561
Solid Waste Enterprise Fund Aviation Enterprise Fund 779,471 Total $ 9,217,333
The General Fund has advanced the Public Facilities Development Fund $7,648,335 to provide funding for capital expenditures and debt service for capital facilities. The balance will be repaid through future development impact fee collections. An additional advance was made to the Public Facilities Fund to assist in debt service payments on the COP’s. At June 30, 2022, this advance was from the Water Fund for $40,966.

The Water Enterprise Fund and Solid Waste Enterprise Fund advanced the Cemetery and Aviation Enterprise Funds a total of $1,528,032 to provide funding for capital expenditures.

Redlands Regular Meeting of 02-21-23 Page 360 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 4 – Interfund Receivables, Payables, and Transfers (Continued) C. Transfers
Interfund transfers during the year ended June 30, 2022, consisted of the following:

Transfers In Transfers Out Amount Purpose
General Fund Water Enterprise Fund $ 1,348,076 Fixed asset transfer General Fund Disposal Enterprise Fund 22,303,387
General Fund Wastewater Service Fund 22,127,851
Subtotal 45,779,314
Governmental Grants Special Revenue Fund General Fund 240 Program subsidy Emergency Service Special Revenue Fund General Fund 3,966,644 Program subsidy Downtown Redlands Business Area
Special Revenue Fund General Fund 63,238 Program subsidy Parking Authority Special Revenue Fund General Fund 9,336 Program subsidy Landscape Maintenance District
Special Revenue Fund General Fund 48,683 Program subsidy Safety Hall Replacement Capital Projects Fund General Fund 16,081,616 Capital projects Liability Self-Insurance Internal Service Fund General Fund 3,216,404 Reserve funding Subtotal 23,386,161
PARIS Special Revenue Fund Water Enterprise Fund 102,412 Capital projects PARIS Special Revenue Fund Disposal Enterprise Fund 1,884,090 Capital projects PARIS Special Revenue Fund Wastewater Service Fund 17,088 Capital projects Subtotal 2,003,590
Groves Enterprise Fund CFD 2004-1 Assessment Special Revenue Fund 105,435 Capital projects Groves Enterprise Fund Disposal Enterprise Fund 59,103 Capital projects Subtotal 164,538
Liability Self-Insurance Internal Service Fund Water Enterprise Fund 200,000 Reserve funding Liability Self-Insurance Internal Service Fund Disposal Enterprise Fund 50,000 Reserve funding Liability Self-Insurance Internal Service Fund Wastewater Service Fund 200,000 Reserve funding Subtotal 450,000
Water Enterprise Fund Non-Potable Water Enterprise Fund 53,262 Fixed asset transfer General Debt Service Fund Payroll Clearing Internal Service Fund 1,907,565 Debt service - pension bonds Total $ 73,744,430
Proceeds of land sale and
fixed asset transfer
On July 20, 2021, the City Council approved the purchase and sale agreement for Assessor’s Parcel Nos. 0292- 041-08; -38; and -44-0000 with LDC Industrial Realty, LLC for the amount of $46,050,000. The three parcels, totaling approximately 18 acres, were acquired as a part of a larger land purchase in August 2004 using the Solid Waste and Wastewater (Sewer) funds, evenly (50% Solid Waste, 50% Wastewater). The City returned the original purchase price plus an inflation factor representing the incremental increase in value of those funds to current dollar values, in this case, 2021-dollar values. This ensures the purchasing power of each enterprise fund is preserved.

The original purchase price allocated to these parcels was $882,590 from Solid Waste and $882,590 from Wastewater ($1.765 million in total) and after applying an inflation factor from 2004 to 2021 of 1.5, was $1,323,885 for Solid Waste and $1,323,885 for Wastewater ($2.648 million total). The remaining amount of gain on the sale of the properties was transferred from the Solid Waste and Wastewater funds to the General Fund, with each fund transferring the amount of $21,701,115.

Redlands Regular Meeting of 02-21-23 Page 361 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 5 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2022, is as follows:

Balance
July 1, 2021, Balance
as restated Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land 34,214,356 $ 6,741,964 $ $ - $ 40,956,320 - $
Water rights 408,125 - - - 408,125
Right of way 277,508,647 17,796,115 - 295,304,762 -
Construction in progress 1,725,699 5,788,277 (387,009) - 7,126,967 Total capital assets, not being depreciated 313,856,827 30,326,356 (387,009) - 343,796,174 Capital assets, being depreciated
Infrastructure 252,047,584 11,401,907 (513,161) 262,936,330 - Building and improvements 34,892,585 25,660,497 - 60,553,082 - Machinery, equipment and vehicles 21,421,667 654,471 (200,297) 387,009 22,262,850 Total capital assets, being depreciated 308,361,836 37,716,875 (713,458) 387,009 345,752,262 Accumulated depreciation:

Infrastructure (101,038,327) (5,375,825) 214,453 (106,199,699) - Building and improvements (20,071,236) (1,899,208) - (21,970,444) - Machinery, equipment and vehicles (17,702,003) (1,300,663) 200,297 (18,802,369) - Total accumulated depreciation (138,811,566) (8,575,696) 414,750 (146,972,512) - Total capital assets, being depreciated, net 169,550,270 29,141,179 (298,708) 387,009 198,779,750 Right to use leased assets, being amortized
Buildings and improvements 53,177 - - - 53,177
Machinery, equipment and vehicles 655,417 196,119 - - 851,536 Total right to use leased assets, being amortized 708,594 196,119 - - 904,713 Accumulated amortization:

Buildings and improvements - (8,863) - - (8,863)
Machinery, equipment and vehicles (173,849) - - (173,849) - Total accumulated amortization (182,712) - - (182,712) - Total right to use assets, being amortized, net 708,594 13,407 - - 722,001 Total capital assets, net $ 484,115,691 $ 59,480,942 $ (298,708) $ 543,297,925 - $ Depreciation and amortization expense were charged to the functions/programs of the governmental activities as follows:

General government $ 532,274
Public safety 1,063,938
Culture and recreation 1,203,627
Highway and streets 5,670,506
Internal service funds 288,063
Total depreciation/amortization expense $ 8,758,408
Redlands Regular Meeting of 02-21-23 Page 362 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 5 – Capital Assets (Continued)
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2022, is as follows:

Capital Assets Balance
July 1, 2021, Balance
as restated Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land $ 28,129,878 $ (1,462,502) - $ $ 26,667,376 - $
Water rights 9,881,460 - - 9,881,460 -
Construction in progress 8,861,957 8,852,467 (3,489,010) - 14,225,414 Total capital assets, not being depreciated 46,873,295 8,852,467 (1,462,502) (3,489,010) 50,774,250 Capital assets, being depreciated
Infrastructure 194,210,764 4,259,116 1,080,259 - 199,550,139 Building and improvements 113,461,869 8,678 - 113,470,547 - Machinery, equipment and vehicles 20,467,967 2,658,141 (453,666) 2,408,751 25,081,193 Total capital assets, being depreciated 328,140,600 6,925,935 (453,666) 3,489,010 338,101,879 Accumulated depreciation:

Infrastructure (86,845,692) (3,512,682) - (90,358,374) - Buildings and improvements (76,606,624) (2,886,102) - (79,492,726) - Machinery, equipment and vehicles (16,566,731) (1,311,008) 453,666 (17,424,073) - Total accumulated depreciation (180,019,047) (7,709,792) 453,666 (187,275,173) - Total capital assets, being depreciated, net 148,121,553 (783,857) 3,489,010 - 150,826,706 Right to use leased assets, being amortized
Buildings and improvements 53,178 - - 53,178 -
Machinery, equipment and vehicles 94,005 - - 94,005 -
Total right to use leased assets, being amortized 147,183 - - 147,183 - Accumulated amortization:

Buildings and improvements - (8,863) - (8,863) -
Machinery, equipment and vehicles (20,766) - - (20,766) - Total accumulated amortization (29,629) - - (29,629) -
Total right to use assets, being amortized, net 147,183 (29,629) - 117,554 - Total capital assets, net $ 195,142,031 $ 8,038,981 $ (1,462,502) $ 201,718,510 - $ Depreciation and amortization expense were charged to the funds of the business-type activities as follows:

Water Fund $ 4,083,773
Disposal Fund 1,146,904
Wastewater Fund 2,194,162
Groves Fund 28,105
Non-Potable Water Fund 4,339
Cemetery Fund 54,853
Aviation Fund 227,285
Total depreciation/amortization expense $ 7,739,421
Redlands Regular Meeting of 02-21-23 Page 363 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 6 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in the long-term liabilities of the governmental activities for the year ended June 30, 2022, is as follows:

Balance
July 1, 2021, Debt Debt Balance Due within Due in More
as restated Issued Retired June 30, 2022 One Year Than One Year Governmental Activities:

Public borrowings:

Taxable Pension Funding Bonds $ 7,870,000 $ (1,480,000) - $ $ 6,390,000 $ 1,620,000 $ 4,770,000 less: accreted interest (278,217) 61,173 - (217,044) (217,044) - Total taxable pension funding bonds 7,591,783 (1,418,827) - 6,172,956 1,620,000 4,552,956 Direct borrowings:

Notes payable:

I-Bank Sports Park 1,282,144 - (62,858) 1,219,286 64,839 1,154,447 Finance Purchase Agreements 865,287 3,275,547 (345,153) 3,795,681 591,561 3,204,120 Total notes payable 2,147,431 3,275,547 (408,011) 5,014,967 656,400 4,358,567 Leases payable:

Leases payable 708,594 196,119 (180,352) 724,361 213,203 511,158 Total leases payable 708,594 196,119 (180,352) 724,361 213,203 511,158 Total $ 10,447,808 $ 3,471,666 $ (2,007,190) $ 11,912,284 $ 2,489,603 $ 9,422,681 Classification
2007 Taxable Pension Funding Bonds
On August 1, 2007, the City issued $25,862,392 of 2007 Taxable Pension Funding Bonds to refund the City's obligation to PERS, reimburse the City for its payment of a portion of its fiscal year ended 2008 unfunded liability and pay the costs of issuance of the bonds. Interest is payable February 1 and August 1 of each year commencing on February 1, 2008. Interest rate is 5.233 percent with annual principal payments plus accreted value commencing February 1, 2008. The amount outstanding at June 30, 2022, is $6,390,000.

The annual debt service requirements on 2007 Taxable Pension Funding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 1,620,000 $ 250,097 $ 1,870,097 $
2024 185,000 207,455 392,455
2025 200,000 207,455 407,455
2026 215,000 207,455 422,455
2027 230,000 207,455 437,455
2028-2032 1,480,000 937,680 2,417,680
2033-2037 2,460,000 391,303 2,851,303
Subtotal 6,390,000 2,408,900 8,798,900
Less: accreted interest (217,044) - -
Total $ 6,172,956 $ 2,408,900 $ 8,798,900
Redlands Regular Meeting of 02-21-23 Page 364 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
I-Bank Sports Park Note Payable
On December 1, 2006, the City entered into this agreement for the purpose of obtaining additional funds to complete the Sports Park project. The City has agreed to pay the amount over thirty years commencing on the date of the lease, which carries an annual interest rate of 3.15 percent with principal and interest payments due every six months starting August 1, 2007, and the final payment to be made on August 1, 2036. The City pledged the Community Center to obtain this loan with I-Bank. At June 30, 2022, the outstanding balance of the I-Bank Sports Park lease payable balance was $1,219,286.

The annual debt service requirements the I-Bank Sports Park Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 64,839 $ 37,386 $ 102,225 $
2024 66,882 35,312 102,194
2025 68,988 33,172 102,160
2026 71,162 30,964 102,126
2027 73,403 28,687 102,090
2028-2032 403,190 106,693 509,883
2033-2037 470,822 37,997 508,819
Total $ 310,211 1,219,286 $ 1,529,497 $
Finance Purchase Agreements
The City has entered into various finance purchase agreements for various equipment purchases. These leases qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of future minimum lease payments as of the date of inception. The assets acquired under capital leases are classified as machinery, equipment and vehicles. The total cost was $5,193,092. The outstanding balance at June 30, 2022, is $3,795,681.

The annual debt service requirements of the Finance Purchase Agreements are as follows:

Year Ending
June 30, Principal Interest Total
2023 591,561 $ 184,820 $ 776,381 $
2024 564,780 84,806 649,586
2025 389,348 67,861 457,209
2026 377,400 56,198 433,598
2027 355,581 46,117 401,698
2028-2032 1,517,011 89,379 1,606,390
Total $ 529,181 3,795,681 $ 4,324,862 $
Redlands Regular Meeting of 02-21-23 Page 365 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Payable
The City has entered into leases for building space and equipment use. The terms of the agreements range from 5 to 6 years. The calculated interest rates varied based on the length of the lease.

Principal and interest payments to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2023 213,203 $ 3,604 $ 216,807 $
2024 214,735 2,492 217,227
2025 193,241 1,380 194,621
2026 58,309 630 58,939
2027 44,873 190 45,063
Total $ 8,296 724,361 $ 732,657 $
B. Business-Type Activities
A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2022, is as follows:

Balance
July 1, 2021, Debt Debt Balance Due within Due in More
as restated Issued Retired June 30, 2022 One Year Than One Year Business-Type Activities:

Public borrowings:

Bonds payable:

Solid Waste Revenue Bonds, Series 2013A 4,740,000 $ $ (1,500,000) - $ $ 3,240,000 $ 1,580,000 $ 1,660,000 add: unamortized premium 351,347 (182,994) - 168,353 168,353 - Total bonds payable 5,091,347 (1,682,994) - 3,408,353 1,580,000 1,828,353 Direct borrowings:

Notes payable
California Recycled Water Project 1,373,267 (330,707) - 1,042,560 338,975 703,585 Safe Drinking Water Project 1,969,512 (339,607) - 1,629,905 347,600 1,282,305 Hinckley Water Treatment Plant Upgrade 7,210,037 (475,699) - 6,734,338 487,674 6,246,664 I-Bank Solid Waste 2,316,346 (135,475) - 2,180,871 139,553 2,041,318 I-Bank City Streets 2,535,301 (133,933) - 2,401,368 138,273 2,263,095 Finance Purchase Agreements 109,778 648,597 (221,448) 536,927 135,354 401,573 Total notes payable 15,514,241 648,597 (1,636,869) 14,525,969 1,587,429 12,938,540 Leases payable:

Leases payable 147,183 (28,224) - 118,959 28,730 90,229 Total leases payable 147,183 (28,224) - 118,959 28,730 90,229 Total $ 20,752,771 $ 648,597 $ (3,348,087) $ 18,053,281 $ 3,196,159 $ 14,857,122 Classification
Redlands Regular Meeting of 02-21-23 Page 366 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Solid Waste Revenue Bonds, Series 2013A
The $13,500,000 of Solid Waste Revenue Bonds, issue of 2013, Series A, consists of serial bonds with varying interest rates from 3 percent to 5 percent. Interest is payable semiannually on March 1 and September 1. Serial bonds mature semiannually September 1, 2014 through September 1, 2023. The revenues of the Disposal Fund are pledged as security toward the payment of this debt. The proceeds were used to finance a portion of the cost of acquisition and construction of street improvements within the City of Redlands. The amount outstanding at June 30, 2022, was $3,240,000 with an unamortized premium of $168,353.

The City has pledged future solid waste revenues, net of specified operating expenses to repay revenue bonds. Net revenues are defined in the 2013A (Solid Waste) bond document as operating income, less specified operating expenses, plus specified non-operating income. The 2013A bonds are payable through 2024. For the current year, principal and interest paid on the Solid Waste Revenue Bonds, Series 2013A was $1,699,500, respectively and current year net revenues were $4,175,097.

The annual debt service requirements of the Solid Waste Revenue Bonds, Series 2013A are as follows:

Year Ending
June 30, Principal Interest Total
2023 1,580,000 $ $ 122,500 $ 1,702,500
2024 1,660,000 41,500 1,701,500
Total $ 3,240,000 $ 164,000 $ 3,404,000
California Recycled Water Project Note Payable
On September 2, 2003, the City entered into a loan agreement with the California Water Resources Control Board in the amount of $7,918,234 to assist in financing the construction of advanced wastewater treatment facilities at the existing wastewater treatment plant. The note carries an annual interest rate of 2.5 percent with principal and interest payments due annually starting November 30, 2005. The amount outstanding at June 30, 2022, was $1,042,560.

The annual debt service requirements of the California Recycled Water Project Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 338,975 $ 26,064 $ 365,039 $
2024 347,449 17,590 365,039
2025 356,136 8,903 365,039
Total $ 1,042,560 $ 52,557 $ 1,095,117
Redlands Regular Meeting of 02-21-23 Page 367 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
97 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Safe Drinking Water Project Note Payable
On January 30, 2004, the City entered into a loan agreement with the State of California, Department of Water Resources in the amount of $1,664,876 to assist in financing construction of a project which will enable the City to meet safe drinking water standards. As of June 30, 2006, the loan had been increased to $6,100,844. The note carries an annual interest rate of 2.34 percent with principal and interest payments due every six months starting January 1, 2006. At June 30, 2022, the City has $1,629,905 in outstanding principal.

The annual debt service requirements of the Safe Drinking Water Project Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 347,600 $ 36,118 $ 383,718 $
2024 355,782 27,937 383,719
2025 364,156 19,563 383,719
2026 372,727 10,992 383,719
2027 189,640 2,219 191,859
Total $ 96,829 1,629,905 $ 1,726,734 $
Hinckley Water Treatment Plant Upgrade Note Payable
On June 21, 2011, the City entered into an agreement with the Clean Water State Revolving Fund Control Board for construction of the Hinckley water treatment plant upgrade. The City may borrow up to $13,663,033 or the eligible costs of the project, whichever is less. The loan has an interest rate of 2.5017 percent with maturities through 2034. Principal and interest is due every six months starting January 1, 2011. The outstanding balance at June 30, 2022, is $6,734,338.

The annual debt service requirements of the Hinckley Water Treatment Plant Upgrade Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 487,674 $ 165,442 $ 653,116 $
2024 499,951 153,165 653,116
2025 512,536 140,580 653,116
2026 525,439 127,678 653,117
2027 538,666 114,450 653,116
2028-2032 2,903,687 361,893 3,265,580
2033-2034 1,266,385 39,848 1,306,233
Total $ 1,103,056 6,734,338 $ 7,837,394 $
Redlands Regular Meeting of 02-21-23 Page 368 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
98 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
I-Bank Solid Waste Note Payable
On March 2, 2015, the City entered into an agreement for the purpose of obtaining additional funds to complete the Solid Waste project. The City has agreed to pay the amount over twenty years commencing on the date of the loan, which carries an annual interest rate of 3.01 percent with principal and interest payments due every six months starting August 1, 2015. At June 30, 2022, the outstanding balance of the loan was $2,180,871.

The annual debt service requirements of the I-Bank Solid Waste Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 139,553 $ 63,544 $ 203,097 $
2024 143,754 59,280 203,034
2025 148,081 54,888 202,969
2026 152,538 50,364 202,902
2027 157,129 45,703 202,832
2028-2032 859,503 153,549 1,013,052
2033-2035 580,313 26,546 606,859
Total $ 453,874 2,180,871 $ 2,634,745 $
I-Bank City Streets Note Payable
On July 1, 2016, the City entered into an agreement for the purpose of obtaining funds for the City Streets project.

The City has agreed to pay the amount over twenty years commencing on the date of the loan, which carries an annual interest rate of 3.24 percent with principal and interest payments due every six months starting August 1, 2017. At June 30, 2022, the outstanding balance of the loan was $2,401,368.

The annual debt service requirements of the I-Bank City Streets Note Payable are as follows:

Year Ending
June 30, Principal Interest Total
2023 138,273 $ 75,564 $ 213,837 $
2024 142,753 71,012 213,765
2025 147,378 66,312 213,690
2026 152,153 61,459 213,612
2027 157,083 56,450 213,533
2028-2032 865,136 201,235 1,066,371
2033-2036 798,592 52,780 851,372
Total $ 584,812 2,401,368 $ 2,986,180 $
Redlands Regular Meeting of 02-21-23 Page 369 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
99 Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Finance Purchase Agreements
The City has entered into various finance purchase agreements for various equipment purchases. These lease qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the date of inception. The asset acquired under the capital lease is classified as machinery, equipment and vehicles. The total cost was $787,656. The outstanding balance at June 30, 2022, is $536,927.

The annual debt service requirements of the Finance Purchase Agreements are as follows:

Year Ending
June 30, Principal Interest Total
2023 135,354 $ 16,166 $ 151,520 $
2024 139,410 12,110 151,520
2025 143,637 7,992 151,629
2026 118,427 3,541 121,968
2027 99 3 102
Total $ 39,812 536,927 $ 576,739 $
Lease Payable
The City has entered into leases for building space and equipment use. The terms of the agreements range from 5 to 6 years. The calculated interest rates varied based on the length of the lease.

Principal and interest payments to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2023 28,730 $ 743 $ 29,473 $
2024 29,347 547 29,894
2025 29,989 348 30,337
2026 20,696 155 20,851
2027 10,197 47 10,244
Total $ 1,840 118,959 $ 120,799 $
Redlands Regular Meeting of 02-21-23 Page 370 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
100
Note 6 – Long-Term Liabilities (Continued)
C. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of Redlands
A summary of changes in the long-term liabilities of the fiduciary fund financial statements for the year ended June 30, 2022, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2021 Issued Retired June 30, 2022 One Year Than One Year Fiduciary Activities:

Public borrowings:

Tax allocation bonds:

Series 2016A 4,115,000 $ - $ (2,020,000) $ 2,095,000 $ 2,095,000 $ $ - Add: unamortized bond premiums 211,801 (195,506) - 16,295 16,295 - Series 2016B 800,000 (395,000) - 405,000 405,000 -
Add: unamortized bond premiums (3,759) - 3,467 (292) (292) - Total tax allocation bonds 5,123,042 (2,607,039) - 2,516,003 2,516,003 - Total $ 5,123,042 $ (2,607,039) - $ $ 2,516,003 $ 2,516,003 $ - Classification
Tax Allocation Refunding Bonds, Series 2016A & B
In March of 2016, the Agency issued $16,610,000 in 2016 Tax Allocation Bonds, Series A and B, with interest rates ranging from 1.00 percent to 4.00 percent. The proceeds of the bonds were used to refund the 1998A, 2003A and 2007A Tax Allocation Bond, to fund a deposit to a debt service reserve account, and to pay costs incurred in connection with the issuance, sale and delivery of the Series 2016A & B bonds. Interest is payable semi-annually on February 1 and August 1 of each year, commencing August 1, 2016. Principal is payable on August 1 each year, commencing August 1, 2016. As of June 30, 2022, the outstanding principal balance on the bonds is $2,500,000.

The annual debt service requirements on the 2016A & B Tax Allocation Refunding Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2023 2,500,000 $ 46,963 $ 2,546,963 $
Tax Allocation Bonds held by the Successor Agency of the Redevelopment Agency of the City of Redlands are secured by property tax revenues. For the current year, principal and interest paid on the Series 2016A & B, Tax Allocation Bonds was $2,553,769, respectively and Redevelopment Agency Property Tax Trust Fund distributions were $2,608,218.

Note 7 – Special Assessment Debt with No City Commitment The special assessment bonds are secured by valid assessment liens upon certain lands within the special assessment district and are not direct liabilities of the City and, accordingly, are not included in the accompanying basic financial statements. The City has no obligation beyond the balances in the designated agency funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit, nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders.

Redlands Regular Meeting of 02-21-23 Page 371 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
101
Note 7 – Special Assessment Debt with No City Commitment (Continued) In September 2001, the City issued for and on behalf of the Community Facilities District No. 2001-1 (Northwest Development Project) $9,255,000 aggregate principal amount of 2001 Special Tax Bonds to finance the acquisition of certain public improvements with appurtenant work and incidental expenses within the District. The Bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from proceeds of annual special tax to be levied on the property within the District. Bonds maturing in the years 2002 to 2015 are serial bonds payable in annual installments of $170,000 to $355,000 while bonds maturing in the year 2022 in the amount of $3,175,000 and bonds maturing in the year 2026 in the amount of $2,535,000 are term bonds. The interest rates on the bonds range from 3.75% to 6.45%. The outstanding balance at June 30, 2022, was $3,075,000.

In February 2004, the City issued for and on behalf of the Community Facilities District No. 2003-1 (Redlands Business Center) $9,545,000 aggregate principal amount of 2004 Special Tax Bonds to finance the acquisition and construction of certain street improvements, sewers, storm drains, water distribution facilities, and other public improvements within the District. The Bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from proceeds of annual special tax to be levied on the property within the District. Bonds maturing in the years 2006 to 2021 are serial bonds payable in annual installments of $20,000 to $270,000, while bonds maturing in the year 2027 in the amount of $2,255,000 and bonds maturing in the year 2033 in the amount of $5,280,000 are term bonds. The interest rates on the bonds range from 2.50% to 5.90%. The outstanding balance at June 30, 2022, was $7,185,000.

Noncommittal debt amounts issued and outstanding at June 30, 2022 are as follows:

Outstanding
Original Balance
Amount June 30, 2022
CFD 2001-1 Special Tax Bonds (Northwest Development Project) $ 9,255,000 $ 3,075,000 CFD 2003-1 Special Tax Bonds (Redlands Business Center) 9,545,000 7,185,000 Total $ 18,800,000 $ 10,260,000
Note 8 – Compensated Absences
A. Governmental Activities
A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Compensated absences 8,406,084 $ $ 9,533,781 $ (10,179,690) $ 7,760,175 $ 3,880,088 $ 3,880,087 Classification
Redlands Regular Meeting of 02-21-23 Page 372 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
102
Note 8 – Compensated Absences (Continued)
A. Governmental Activities (Continued)
Compensated absences in the governmental activities are obligations of the following funds:

Governmental Funds $ 7,356,292
Liability Self-Insurance Internal Service Fund 2,306
Information Technology Internal Service Fund 172,924
Workers Compensation
Self-Insurance Internal Service Fund 3,384
Equipment Maintenance Internal Service Fund 65,952
Utility Billing Internal Service Fund 159,317
Total $ 7,760,175
B. Business-Type Activities
A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2022 is as follows:

Balance Balance Due within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Compensated absences 1,164,695 $ $ 2,104,584 $ (2,247,172) $ 1,022,107 $ 511,054 $ 511,053 Classification
Compensated absences in the business-type activities are obligations of the following funds:

Water Fund $ 485,306
Disposal Fund 235,123
Wastewater Fund 270,528
Groves Fund 6
Non-Potable Water Fund 48
Cemetery Fund 30,558
Aviation Fund 538
Total $ 1,022,107
Note 9 ‒ Solid Waste Landfill
State and federal laws and regulations require the City to provide financial assurance for closure and post closure costs of the California Street Landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for fifteen years after closure. Although closure and post closure activities will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and post closure costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $10,730,423 reported as landfill closure and post closure liability at June 30, 2022, represents the cumulative amount reported to date based on the use of 67.85 percent of the total estimated capacity of the landfill including final covering. The City will recognize the remaining estimated costs of closure and post closure care of $5,085,288 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform closure and post closure activities in 2022 dollars. The City expects to close the landfill in the year 2042. Actual costs may differ due to inflation, changes in technology or changes in regulations.

Redlands Regular Meeting of 02-21-23 Page 373 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
103
Note 9 ‒ Solid Waste Landfill (Continued)
The City is required by state and federal laws and regulations to maintain adequate funds to provide financial assurance for closure and post closure costs through one of a combination of alternative mechanisms. For closure costs, the City has established an enterprise fund mechanism with a separate fund, the California Street Landfill Closure fund. For post closure costs, the City has entered into a Pledge of Revenue Agreement with the California Integrated Waste Management Board. The City is in compliance with these requirements. At June 30, 2022, $7,453,356 is held for landfill closure. The City expects that future inflation costs will be paid from future annual operating revenues in the enterprise fund. Post closure costs are agreed to be covered by revenue from solid waste customer billings which is deposited directly into the Disposal enterprise fund.

Note 10 – Pension Plans
A. Summary
The City of Redlands participates in the California Public Employees Retirement System (CalPERS), a pension plan available to all qualified employees. The Safety Plan is a cost-sharing multiple employer defined benefit pension plan. The Miscellaneous Plan is an agent multiple employer defined benefit pension plan. A summary of pension amounts for the City’s plans at June 30, 2022, is presented below:

Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Pension contribution made after measurement date:

CalPERS Miscellaneous $ 2,942,185 3,135,661 6,077,846 $ CalPERS Safety - 10,344,274 10,344,274
Total pension contribution made after measurement date 2,942,185 13,479,935 16,422,120 Difference between expected and actual experience:

CalPERS Miscellaneous 134,196 143,020 277,216
CalPERS Safety - 9,953,605 9,953,605
Total difference between expected and actual experience 134,196 10,096,625 10,230,821 Adjustment due to difference in proportions
CalPERS Safety - 1,528,347 1,528,347
Total adjustment due to difference in proportions - 1,528,347 1,528,347 Total deferred outflows of resources
CalPERS Miscellaneous 3,076,381 3,278,681 6,355,062
CalPERS Safety - 21,826,226 21,826,226
Total deferred outflows of resources $ 3,076,381 25,104,907 $ 28,181,288 $ Net pension liability:

CalPERS Miscellaneous $ 12,622,561 15,617,010 $ 28,239,571 $ CalPERS Safety - 58,259,612 58,259,612
Total net pension liability $ 12,622,561 73,876,622 $ 86,499,183 $ Redlands Regular Meeting of 02-21-23 Page 374 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
104
Note 10 – Pension Plans (Continued)
A. Summary (Continued)
Governmental Business-Type
Activities Activities Total
Deferred inflows of resources:

Actual earnings on pension plan investments in excess of projected earnings:

CalPERS Miscellaneous $ 7,459,962 $ 7,096,837 $ 14,556,799 CalPERS Safety 34,675,669 34,675,669 -
Total actual earnings on pension plan investments in excess of projected earnings 42,135,631 7,096,837 49,232,468 Employer contributions in excess of proportionate share of contribution CalPERS Safety 3,552,294 3,552,294 -
Total employer contributions in excess of proportionate share of contribution 3,552,294 3,552,294 - Total deferred inflows of resources
CalPERS Miscellaneous 7,459,962 7,096,837 14,556,799
CalPERS Safety 38,227,963 38,227,963 -
Total deferred inflows of resources $ 7,096,837 45,687,925 $ 52,784,762 $ Pension expenses:

CalPERS Miscellaneous $ 546,622 574,592 $ 1,121,214 $
CalPERS Safety - 14,695,901 14,695,901
Total net pension expenses $ 546,622 15,270,493 $ 15,817,115 $ B. City Miscellaneous Plans
Plan Description
Substantially all City Miscellaneous employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Miscellaneous Plan Agent multiple-employer defined benefit plan administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Employees Covered
At June 30, 2021, the measurement date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Plans
Active employees 326
Transferred and terminated employees 383
Retired employees and beneficiaries 515
Total 1224
Redlands Regular Meeting of 02-21-23 Page 375 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
105
Note 10 – Pension Plans (Continued)
B. City Miscellaneous Plans (Continued)
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Hire Date PEPRA Classic
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 7.000% 7.000%
Required employer contribution rates 9.320% 9.320%
Final Annual Compensation 1 year 1 year
Miscellaneous 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 CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the plan’s contributions made for the Plan was as follows:

Miscellaneous Plans
Contributions - employer 6,077,846 $
Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Redlands Regular Meeting of 02-21-23 Page 376 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
106
Note 10 – Pension Plans (Continued)
B. City Miscellaneous Plans (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

7.15%

2.50%
Varies by Entry Age and Service

7.00%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the results of a January 2017 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate
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. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class New Strategic Allocation Real Return Years 1 - 10 1 Real Return Years 11 + 2 Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

Redlands Regular Meeting of 02-21-23 Page 377 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
107
Note 10 – Pension Plans (Continued)
B. City Miscellaneous Plans (Continued)
Discount Rate (Continued)
The discount rate used to measure the total pension liability was 7.15% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
$ 51,547,685 $ 28,239,571 $ 8,905,984
Plan's Aggregate Net Pension Liability/(Asset)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period:

Total Pension
Liability
Plan Fiduciary Net
Position Net Pension Liability
Balance at June 30, 2020 (Valuation Date) 178,611,735 $ 130,256,891 $ 48,354,844 $ Changes in the year:

Service cost 3,525,116 - 3,525,116
Interest on the total pension liabilities 12,569,714 - 12,569,714 Changes in assumptions - - -
Differences between expected and actual experience 247,796 - 247,796 Benefit payments, including refunds of members contributions (9, (9,643,784) 643,784) - Contributions - employer - 5,653,857 (5,653,857)
Contributions - employee - 1,628,531 (1,628,531)
Net investment income - 29,305,630 (29,305,630)
Administrative expenses - (130,119) 130,119
Net changes 6,698,842 26,814,115 (20,115,273)
Balance at June 30, 2021 (Measurement Date) 185,310,577 $ 157,071,006 $ 28,239,571 $ Miscellaneous Plans
Redlands Regular Meeting of 02-21-23 Page 378 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
108
Note 10 – Pension Plans (Continued)
B. City Miscellaneous Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense in the amount of $1,121,214 for the miscellaneous plans.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-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.

The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2020-21 measurement period is 3.1 years, which was obtained by dividing the total service years of 3,778 (the sum of remaining service lifetimes of the active employees) by 1,210 (the total number of participants: active, inactive, and retired).

At June 30, 2022 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 6,077,846 $ -
Difference between projected and actual
earning on pension plan investments - (14,556,799)
Differences between expected
and actual experience 277,216 -
Total $ (14,556,799) 6,355,062 $
Miscellaneous Plans
For the City Miscellaneous Plan, $6,077,846 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30,
2023 (3,502,033) $
2024 (3,273,076)
2025 (3,485,106)
2026 (4,019,368)
2027 -
Thereafter -
$ (14,279,583)
Deferred Outflows/(Inflows)
of Resources
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Redlands Regular Meeting of 02-21-23 Page 379 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
109
Note 10 – Pension Plans (Continued)
C. City Safety Plans
Plan Description
Substantially all City Safety employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan Cost-sharing multiple-employer defined benefit plan administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Employees Covered
At June 30, 2021, the measurement date, the following employees were covered by the benefit terms the Plan:

Safety Plans
Active employees 132
Transferred and terminated employees 50
Retired employees and beneficiaries 246
Total 428
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:

Hire Date Classic Fire PEPRA Fire Classic Fire PEPRA Police Benefit formula 3% @ 50 2.7% @ 57 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 - 57 50 50 - 57
Monthly benefits, as a % of eligible compensation 3.000% 2.000% to 2.700% 3.000% 2.000% to 2.700% Required employee contribution rates 9.00% 13.750% 9.00% 13.750% Required employer contribution rates 25.590% 13.980% 25.590% 13.980% Final Annual Compensation 1 year 1 year 1 year 1 year
Safety Cost-Sharing Plans
Redlands Regular Meeting of 02-21-23 Page 380 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
110
Note 10 – Pension Plans (Continued)
C. City Safety Plans (Continued)
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 the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability.

The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, employer contributions made for the Safety Cost-sharing Plan was as follows:

Safety Plans
Contributions - employer 10,344,274 $
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

As of June 30, 2022, the City reported net pension liability for its proportionate shares of the net pension liability of the Safety Plan as follows:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Liability Position Liability/(Asset)
Balance at: 6/30/20 (Valuation date) 288,297,224 $ 200,216,677 $ 88,080,547 Balance at: 6/30/21 (Measurement date) 302,527,701 244,268,089 58,259,612 Net Changes during 2020-2021 14,230,477 44,051,412 (29,820,935) Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2020). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.

Redlands Regular Meeting of 02-21-23 Page 381 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
111
Note 10 – Pension Plans (Continued)
C. City Safety Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2021). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2020 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2019-20).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

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

Proportion June 30, 2020 0.80950%
Proportion June 30, 2021 1.07723%
Change - Increase (Decrease) 0.26773%
For the year ended June 30, 2022, the City recognized pension expense in the amount of $14,695,901 for the Safety Plan.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-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.

The EARSL for PERF C for the measurement date ending June 30, 2021 is 3.7 years, which was obtained by dividing the total service years of 561,622 (the sum of remaining service lifetimes of the active employees) by 150,948 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Redlands Regular Meeting of 02-21-23 Page 382 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
112
Note 10 – Pension Plans (Continued)
C. City Safety Plans (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 10,344,274 $ -
Difference between projected and actual earning on
pension plan investments - (34,675,669)
Adjustment due to differences in proportions 1,528,347 - Difference between actual and expected experience 9,953,605 - Difference between employer's actual contributions
and proportionate share of contributions - (3,552,294)
Total $ 21,826,226 $ (38,227,963)
Safety Plans
For the City Safety Plan, $10,344,274 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30,
Deferred Outflows/
(Inflows) of Resources
2023 (4,291,088) $
2024 (5,478,430)
2025 (7,434,233)
2026 (9,542,260)
2027 -
Thereafter -
$ (26,746,011)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2021 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2020 total pension liability. Both the June 30, 2021 and the June 30, 2020 total pension liabilities were based on the following actuarial methods and assumptions:

Redlands Regular Meeting of 02-21-23 Page 383 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
113
Note 10 – Pension Plans (Continued)
C. City Safety Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability (Continued) Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

7.15%

2.50%
Varies by Entry Age and Service

7.65%
Derived using CalPERS’ Membership Data for all Funds. The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Redlands Regular Meeting of 02-21-23 Page 384 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
114
Note 10 – Pension Plans (Continued)
C. City Safety Plans (Continued)
Discount Rate (Continued)
Asset Class
New Strategic Allocation Real Return Years
1 - 10 1
Real Return Years
11 + 2
Global equity 50.00% 4.80% 5.98%
Global fixed income 28.00% 1.00% 2.62%
Inflation sensitive assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
1 An expected inflation of 2.00% was used for this period. 2 An expected inflation of 2.92% was used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the City Safety Plan, calculated using the discount rate for the City Safety Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
$ 58,259,612 98,982,452 $ 24,810,830 $
Plan's Aggregate Net Pension Liability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Redlands Regular Meeting of 02-21-23 Page 385 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
115
Note 11 – Other Postemployment Benefits
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date 3,847,418 $ 1,217,869 $ 5,065,287 $ Difference between expected and actual experience 4,343,495 1,374,897 5,718,392 Changes in assumptions 36,537,484 11,565,629 48,103,113 Total deferred outflows of resources $ 44,728,397 $ 14,158,395 $ 58,886,792 Total OPEB liability:

Total OPEB liability $ 146,160,286 $ 55,755,636 $ 201,915,922 Total OPEB liability $ 146,160,286 $ 55,755,636 $ 201,915,922 Deferred inflows of Resources:

Changes in assumptions $ 2,341,463 $ 827,207 $ 3,168,670 Total deferred inflows of resources $ 2,341,463 $ 827,207 $ 3,168,670 OPEB Expense $ 12,156,943 $ 3,095,051 $ 15,251,994
B. General Information about OPEB
Plan Description
The City’s administers a defined benefit OPEB plan (Plan), which provides medical insurance benefits to eligible retirees and their spouses in accordance with applicable Memoranda of Understanding and the California Government Code to all employees who retire from the City. The Plan is an agent single-employer defined benefit OPEB plan administered by the City and is governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.

City’s Funding Policy
The contribution requirements of plan members and the City are established, and may be amended, by City Council.

The contribution required to be made under City Council and labor agreement requirements is based on a pay-asyou go basis (i.e., as medical insurance premiums become due). The City allows retirees to participate in the same medical plan as active employees at the same premium rates. Because the rate is a “blended rate”, payments for the active employees include an implied subsidy of what would normally be a higher rate for retirees if the retirees were in a stand-alone health plan.

GASB Statement No. 75, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions, requires governments to account for other post-employment benefits (OPEB) on an accrual basis, rather than a pay-as-you-go basis. The effect is the recognition of an actuarially determined expense when a future retiree earns their post-employment benefits, rather than when they use their post-employment benefits.

Redlands Regular Meeting of 02-21-23 Page 386 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
116
Note 11 – Other Postemployment Benefits (Continued)
B. General Information about OPEB (Continued)
Benefits Provided
After age 65, the City contributes a flat monthly rate of $397 for those employees who retire under the PERS retirement system, subscribe to the PERS Health Insurance System, and have at least five years of CalPERS service, in accordance with Government Code. This is a perpetual benefit which is available to all PERS retirees including eligible dependents of deceased retirees. Annual increases in the monthly rate are limited to $20 and based upon the annual increase in PERS family premiums. In addition, the City also contributes the entire monthly premium for health insurance for all employees who retire with the City and have a minimum of 15 or 20 years of cumulative service with the City, depending on the particular bargaining units. A summary of benefits provided is shown below:

Employee Group Service Medical Dental Vision
Police (RPOA Members)
Employees hired on or after November 4, 2014
with at least 5 years of CalPERS service $397 per month maximum None None Employees hired prior to November 4, 2014
with at least 15 years of City service
100% of Premium &
Medicare Part B for
Lifetime of Retiree and
Spouse
100% of Premium of
Retiree and Spouse
100% of Premium of
Retiree and Spouse
Firefighters (RPFA and RAFME Members)
Employees hired on or after October 16, 2012
with at least 5 years of CalPERS Service $397 per month maximum None None Employees hired prior to October 16, 2012
with at least 15 Years (20 Years for RPFA
Members) of City service
100% of Premium &
Medicare Part B for
Lifetime of Retiree and
Spouse
100% of Premium for
Lifetime of Retiree and
Spouse
$225 Maximum
Reimbursement Per Year
for Lifetime of Retiree and
Spouse
Miscellaneous (GEAR, RCSEA, RAMME and RAME* Members)
Employees hired on or after March 11, 2010
with at least 5 years of CalPERS Service $397 per month maximum None None Employees hired prior to March 11, 2010 with
at least 20 years (15 Years for RAME
Members) of City Service
100% of Premium &
Medicare Part B for
Lifetime of Retiree and
Spouse
100% of Premium for
Lifetime of Retiree and
Spouse
None
Miscellaneous (RASME Members)
Employees hired on or after June 2, 2015 with
at least 5 years of CalPERS Service $397 per month maximum None None Employees hired prior to June 2, 2015 with at
least 15 years of City Service
100% of Premium &
Medicare Part B for
Lifetime of Retiree and
Spouse
100% of Premium &
Medicare for Lifetime of
Retiree and Spouse
100% of Premium for
Lifetime of Retiree and
Spouse
Miscellaneous (RADD Members)
Employees hired on or after January 1, 2009
with at least 5 years of CalPERS Service* $397 per month maximum None None Employees hired prior to January 1, 2009 with
at least 15 years of City Service **
100% of Premium &
Medicare Part B for
Lifetime of Retiree and
Spouse
100% of Premium &
Medicare for Lifetime of
Retiree and Spouse
100% of Premium for
Lifetime of Retiree and
Spouse
Redlands Regular Meeting of 02-21-23 Page 387 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
117
Note 11 – Other Postemployment Benefits (Continued)
B. General Information about OPEB (Continued)
Benefits Provided (Continued)
Some retirees are eligible for a medical bridge program, in which the City contributes the amount of the maximum of lowest cost single premium rate $397. Eligibility for the medical bridge program is as follows:

RADD 3 years of service
RAME 10 years of service
RPOA, RAFME, RASME 15 years of service
RAMME, RCSEA, Teamsters 20 years of service
Employees Covered
At June 30, 2021, the most recent valuation date, the following current and former employees were covered by the benefit terms under the Plan:

Active employees 457
Transferred and terminated employees -
Retired employees and beneficiaries 351
Total 808
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021. The total OPEB liability at June 30, 2022 was $201,915,922.

Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Discount Rate
Inflation
Aggregate payroll increases
Expected long-term investment rate of return
Mortality, Termination, and Disability
Mortality Improvement Scale
Healthcare Trend Rate 5.75 to 6.75 percent for 2022-2026, 4.50 to 5.50 percent for 2027- 2031+, and 4.00 percent for 2070 and later years; Medicare ages: 4.50 to 5.50 percent for all years.

2.19%

2.75%

2.75%
n/a
CalPERS 1997-2017 Experience Study
Modified projected fully generational with Scale MP-2021 The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.

Redlands Regular Meeting of 02-21-23 Page 388 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
118
Note 11 – Other Postemployment Benefits (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability 2.19%. The City’s funding policy affects the calculation of liabilities by impacting the discount rate that is used to develop the plan liability and expense. The City is currently financing its OPEB liability on a pay-as-you-go basis, the discount rate used is based on the S&P Municipal Bond 20 Year High Grade Index.

Change in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2020 (Measurement Date) $ 152,181,945 Changes Recognized for the Measurement Period:

Service Cost 4,405,809
Interest on the total OPEB liability 3,775,999
Difference between expected and actual experience 3,545,600 Changes of assumptions 42,967,302
Benefit payments (4,960,733)
Net Changes during July 1, 2020 to June 30, 2021 49,733,977 Balance at June 30, 2021 (Measurement Date) $ 201,915,922 Sensitivity of the Total 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 (1.19 percent) or 1-percentage- point higher (3.19 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(1.19%) Rate (2.19%) (3.19%)
$ 241,179,194 $ 201,915,922 $ 171,308,670
Plan's Total OPEB Liability
Sensitivity of the Total 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 or 1-percentage-point higher than the current healthcare cost trend rates:

Healthcare Cost
-1% Trend Rates 1%
$ 168,878,752 $ 201,915,922 $ 245,122,767
Plan's Total OPEB Liability
Redlands Regular Meeting of 02-21-23 Page 389 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
119
Note 11 – Other Postemployment Benefits (Continued)
C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $15,251,994. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Employer contributions made
subsequent to the measurement date 5,065,287 $ - $
Difference between expected and actual experience 5,718,392 - Changes of assumptions 48,103,113 (3,168,670)
Total 58,886,792 $ (3,168,670) $
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a fiveyear period. The remaining gains and losses are amortized over the expected average remaining service life. The expected average remaining service life is 9 years, which was determined as of June 30, 2020, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

Amount reported as deferred outflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2023 $ 7,070,186
2024 7,070,186
2025 7,303,174
2026 7,425,100
2027 6,279,893
Thereafter 15,504,296
$ 50,652,835
Redlands Regular Meeting of 02-21-23 Page 390 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
120
Note 12 – Risk Management
A. Coverage
On June 30, 2022, and throughout 2021-2022, the City was self-insured for the first $1,000,000 per occurrence for commercial general liability and automobile liability. The City purchased excess liability insurance to provide additional coverage of $10,000,000 per occurrence with a $10,000,000 aggregate. The City also purchased airport liability insurance including commercial general liability, personal & advertising injury, products completed, and hanger keepers limit in a single limit liability amount of $10,000,000 per occurrence. For workers’ compensation and employer's liability, the City was self-insured for $1,000,000 per occurrence with excess coverage of $25,000,000 for worker's compensation per occurrence with a $25,000,000 aggregate, and $1,000,000 for employer's liability per occurrence.

B. Claims Activity
At June 30, 2022, $2,595,507 and $12,171,624 have been accrued for general liability and workers’ compensation claims, respectively. All funds of the City participate in the worker's compensation program and make payments to the Workers’ Compensation Internal Service Fund based on estimates of the amounts needed to pay prior and current year claims. The Liability Insurance Internal Service Fund receives an annual operating transfer from the General Fund to cover operating costs including payment of claims. The liability for unpaid claims for general liability and workers’ compensation is discounted to reflect anticipated future investment earnings, assuming a five percent interest rate. Settled claims have not exceeded the commercial coverage in the past three years.

The accruals indicated above represent estimates of amounts to be paid for reported claims and incurred but not reported claims based upon past experience, modified for current trends and information. While the ultimate amounts of losses incurred through June 30, 2022, are dependent on future developments, based upon information provided from the City Attorney, outside counsel and others involved with the administration of the programs, the City's management believes that the aggregate accrual is adequate to cover such losses.

A summary of the changes in claims liabilities for the past three fiscal years follows:

Current Year
Beginning of Claims and Balance at Due in
Fiscal Year Changes in Claim Fiscal Year Due Within More than Liability Estimates Payments End One Year One Year
General Liability
2022 $ 2,433,336 $ 703,762 $ (541,591) $ 2,595,507 $ 1,297,754 $ 1,297,753 2021 1,969,244 1,735,798 (1,271,706) 2,433,336 1,216,668 1,216,668 2020 2,266,000 447,740 (744,496) 1,969,244 984,622 984,622 Workers' Compensation
2022 $ 9,866,999 $ 3,450,641 $ (1,146,016) $ 12,171,624 $ 6,085,812 $ 6,085,812 2021 8,559,266 2,452,259 (1,144,526) 9,866,999 4,933,500 4,933,499 2020 9,144,348 (474,856) (110,226) 8,559,266 4,279,633 4,279,633 Redlands Regular Meeting of 02-21-23 Page 391 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
121
Note 13 ‒ Fund Balance and Net Position
A. Fund Balance/Net Position Deficits
At June 30, 2022 the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(114,273,699).

At June 30, 2022, the following funds had a fund balances (deficit) or unrestricted net position (deficit):

Fund Fund Type Deficit
Public Facilities Development Fund Special Revenue Fund (6,261,692) $ Governmental Grants Fund Special Revenue Fund (331,596) Transportation Development Act Fund Special Revenue Fund (13,766) Disposal Fund Enterprise Fund (2,223,486)
General Liability Self-Insurance Fund Internal Service Fund (2,646,076) Workers' Compensation Self-Insurance Fund Internal Service Fund (9,317,046) Information Technology Fund Internal Service Fund (1,909,725) Utility Billing Fund Internal Service Fund (3,385,009)
Special Revenue Funds
A net deficit of $6,261,692 exists in the Public Facilities Development fund due to unpaid advances owed to the General Fund for debt service payments made on the Public Facilities Development fund’s behalf. Future development impact fees will be used to repay this advance and reduce the fund deficit.

A net deficit of $331,596 exists in the Governmental Grants Fund. This fund deficit is a result of expenditures that have not been submitted for grant reimbursement and reimbursements that have not been received. This net deficit will be eliminated when the grant funds are received in future years.

A net deficit of $13,766 exists in the Transportation Development Act Fund. This fund deficit is a result of the timing of grant reimbursements. This net deficit will be eliminated during the upcoming fiscal year.

Enterprise Funds
A net deficit of $2,223,486 exists in the Disposal Fund as a result of the City’s implementation of GASB Statements No. 68 and 75, which required the reporting of the fund’s proportionate share of the City’s net pension liability and other post-employment benefits liability, respectively. Management expects to continue to carefully monitor this fund and intends to alleviate this net deficit through cost containment measures and continued pension contributions towards its unfunded liability.

Internal Service Funds
A net deficit of $2,646,076 exists in the Liability Self-Insurance Fund due to new and existing claims. Management expects to continue to carefully monitor this fund and intends to alleviate this net deficit through increased charges to other funds for cost recovery and instituting cost containment measures.

A net deficit of $9,317,046 exists in the Workers’ Compensation Self-Insurance Fund due to new and existing claims. Management expects to continue to carefully monitor this fund and intends to alleviate this net deficit through increased cost recovery charges, instituting cost containment measures.

Redlands Regular Meeting of 02-21-23 Page 392 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
122
Note 13 ‒ Fund Balance and Net Position (Continued)
A. Fund Balance/Net Position Deficits (Continued)
A net deficit of $1,909,725 exists in the Information Technology Fund. This fund deficit is a result of the City’s implementation of GASB Statements No. 68 and 75, which required reporting of the fund’s proportionate share of the City’s net pension liability and other post-employment benefits, respectively. This net pension liability and other post-employment benefits created the corresponding net deficit, these will be reduced by continued pension contributions in future years.

A net deficit of $3,385,009 exists in the Utility Billing Fund. This fund deficit is a result of the City’s implementation of GASB Statement No. 68 and 75 which required reporting of the fund’s proportionate share of the City’s net pension liability and other post-employment benefits, respectively. This net pension liability and other post-employment benefits created the corresponding net deficit, these will be reduced by continued pension contributions in future years.

B. Expenditures Exceeding Appropriations
For the year ended June 30, 2022, expenditures exceeded appropriations in the following funds by function/department:

Excess Expenditures
Fund Function over Appropriations
General Fund General government
City attorney 29,429 $
Development services 55,269
Public Facilities Development Special Revenue Fund General government 18,124 Public Facilities Development Special Revenue Fund Debt Service:

Interest and fiscal charges 32,211
Traffic Safety Special Revenue Fund Public safety 59,082 Open Space Special Revenue Fund Culture and recreation 9,598 Downtown Redlands Business Area Special Revenue Fund General government 7,164 Parking Authority Special Revenue Fund General government 193 Park and Open Space Special Revenue Fund Highway and streets 29,372 Arterial Street Construction Special Revenue Fund Highway and streets 13,057 Freeway Interchanges Special Revenue Fund Highway and streets 39,793 CFD 2004-1 Assessment Special Revenue Fund General government 21,034 PARIS Special Revenue Fund Highway and streets 22,528
Public Art Special Revenue Fund Culture and recreation 1,601 Transportation Development Act Special Revenue Fund Highway and streets 58,136 Redlands Regular Meeting of 02-21-23 Page 393 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
123
Note 14 – Fund Balance Classification
At June 30, 202, the City reports the following fund balance classifications:

Public Facilities Governmental Safety Hall
Development Grants Replacement Non-major
General Special Revenue Special Revenue Capital Projects Governmental Fund Fund Fund Fund Funds Total
Nonspendable
Prepaid items 721,317 $ - $ 3,700 $ - $ 9,500 $ 734,517 $ Endowment - non-expendable - - - - 30,200 30,200
Advances to other funds 7,648,335 - - - - 7,648,335
Total nonspendable - 8,369,652 3,700 - 39,700 8,413,052 Restricted
Donations 526,834 - - - - 526,834
PEG Fees 631,032 - - - - 631,032
Public safety - - - - 717,018 717,018
Police programs and equipment - - - - 1,369,410 1,369,410 Public art - - - - 12,018 12,018
Street reconstruction/improvement projects - - - - 3,504,120 3,504,120 Debt service - - - 1,819,383 1,819,383
Storm drain improvements - - - - 2,405,945 2,405,945
Endowment - expendable - - - - 28,822 28,822
CFD assessment - - - - 124,038 124,038
Total restricted 1,157,866 - - 9,980,754 - 11,138,620
Committed
Stabilization agreement 9,231,885 - - - 9,231,885 -
Park and open space acquisition/improvement - - - 4,198,178 - 4,198,178 Public benefit: parks, recreation, trails,
open space, and improvements 3,432,020 - - - 3,432,020 - Street reconstruction/improvement projects - - - 7,210,838 - 7,210,838 Total committed 12,663,905 - - 11,409,016 - 24,072,921
Assigned
Public works 1,791,543 - - - 1,791,543 -
Capital projects 29,943,418 - 2,560,682 - 32,504,100 -
Total assigned 31,734,961 - 2,560,682 - 34,295,643 -
Unassigned 39,513,840 (6,261,692) (335,296) - (13,766) 32,903,086 Total fund balances $ 93,440,224 $ (6,261,692) $ (331,596) $ 2,560,682 $ 21,415,704 $ 110,823,322 Redlands Regular Meeting of 02-21-23 Page 394 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
124
Note 15 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30 consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets:

Capital assets, nondepreciable $ 343,796,174 $ 50,774,250 Capital assets, depreciable/amortizable, net 199,501,751 150,944,260 Long-term debt:

I-Bank Sports Park (1,219,286) -
Finance Purchase Agreement (3,795,681) (536,927)
Leases payable (724,361) (118,959)
Solid Waste Revenue Bonds, Series 2013A (3,408,353) -
California Recycled Water Project (1,042,560) -
Safe Drinking Water Project (1,629,905) -
Hinckley Water Treatment Plant Upgrade (6,734,338) -
I-Bank Solid Waste (2,180,871) -
I-Bank City Streets (2,401,368) -
Total net investment in capital assets $ 537,558,597 $ 183,665,229 Note 16 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Redlands that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On November 1, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill.

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

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

Redlands Regular Meeting of 02-21-23 Page 395 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
125
Note 16 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment (Continued) In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Final dissolution of the Successor Agency of the Former Redevelopment Agency of the City of Redlands will take place in the fiscal year ending 2023.

Note 17 ‒ Tax Abatements – Economic Development Incentives GASB Statement No. 77, defines tax abatements as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to the economic development or otherwise benefits the government or its citizens. According to GASB No. 77, the substance of these agreements meet the definition of “tax abatements” as the revenues received were not available for general municipal services purposes, but rather used to effectively reduce the net tax liability of certain taxpayers per the conditions of an agreement.

The City offers an economic development incentive program to the entities that propose to locate or expand already established businesses within the City. This incentive program is expected to provide a stimulus to the City’s economy, increase the tax base and create jobs. Each of the agreements entered into by the City, provides for a rebate of taxes paid to the City according to formulas contained in the agreements. These limited term agreements provide for a sharing of the taxes (percentage rebates) above certain amounts with a maximum rebate not to exceed the cost of a business’ improvements and/or development impact fees. The City generally expects to receive increased revenue as a result of these agreements. These incentive agreements require approval by the City Council.

The City currently has two of these agreements in effect. For the fiscal year ended June 30, 2022, under this program the City had abatements of sales tax totaling $85,614. Pursuant to the Sales and Use Tax law (chapter 8 – Article 1 – section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year.

Note 18 ‒ Endowments
Simonds Endowment
The amount of net appreciation available for expenditure in the Simonds Endowment Fund is $27,095. This available amount is reflected as fund balance. The endowment corpus is $10,000 and is reflected as restricted fund balance. In California, Endowments are subject to the requirements of the Uniform Prudent Management of Institutional Funds Act (UPMIFA), specifically Cal. Probate Code §18504. State law governing the City’s ability to spend the net appreciation provides that the City may appropriate “so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established […]”. The City’s policy for authorizing and spending the investment income is governed by City Council authorization and appropriation authority, as well as the agreement of Endowment of the Simonds Parkway, dated December 14, 1985. Provisions of that agreement include, among other things, that interest generated on a per annum basis may be expended for providing maintenance, materials, and equipment solely at the Simonds Parkway.

Redlands Regular Meeting of 02-21-23 Page 396 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
126
Note 18 ‒ Endowments (Continued)
Pauline Stancliff Memorial Trust
The amount of net appreciation available for expenditure in the Pauline Stancliff Memorial Trust Fund is $1,727. This available amount is reflected as fund balance. The endowment corpus is $20,200 and is reflected as restricted fund balance. In California, Endowments are subject to the requirements of the Uniform Prudent Management of Institutional Funds Act (UPMIFA), specifically Cal. Probate Code §18504. State law governing the City’s ability to spend the net appreciation provides that the City may appropriate “so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established […]”.

The City’s policy for authorizing and spending the investment income is governed by City Council authorization and appropriation authority, as well as a minute motion on July 26, 2012 establishing a memorial trust fund in the name of Pauline Stancliff to be used for creating programs which focus on the goal of improving the quality of life for seniors who attend the Joslyn Senior Center.

Note 19 – Commitments and Contingencies
A. Litigation
The City is currently a party to various claims and legal proceedings. Although the outcome of these lawsuits is not presently determinable, it is management’s opinion that the ultimate liabilities, if any, resulting from such claims and proceedings will not materially affect the financial position of the City.

B. Sales Tax – Donut Hole
In 1998, the voters of California approved Proposition No. 11 which amended Article XIII, Section 29 of the California Constitution to allow cities and counties to enter into contracts to apportion sales and use tax revenue, by ordinance or resolution, and upon approval by a two-thirds vote of the legislative bodies of the parties to the contract. The City has provided in its contract with the County of San Bernardino that the benefit of receiving the sales and use tax revenue generated by businesses located in the unincorporated area of the Donut Hole, in exchange for the City's provision of municipal services, will terminate on December 31, 2003, unless an extension of the term of the contract beyond December 31, 2003, is consented to by a majority vote of the qualified voters of the City. The term has been extended beyond December 31, 2003, under the Ordinance No. 2550. The County of San Bernardino and the City apportion the sales and use tax revenue generated by businesses located in the Donut Hole generally on the basis of ninety percent (90 percent) of such sales and use tax revenue being provided to the City and ten percent (10 percent) of such sales and use tax revenue being provided to the County.

C. Federal and State Grants
The City participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit act as amended. Accordingly, the City’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City anticipates such amounts, if any, will be immaterial.

Redlands Regular Meeting of 02-21-23 Page 397 of 786
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
127
Note 19 – Commitments and Contingencies (Continued)
D. Contractual Commitments
The City has capital contractual commitments for which funds have been encumbered as of June 30, 2022.

Encumbrances related to capital projects are funded through the current year appropriated budget, which carries over to the following year.

The following material construction commitments existed at June 30, 2022:

Significant
Project Title Commitment
General Fund
Alley Paving Improvement Project-General Fund Portion $ 738,000 Animal Shelter Concrete Installation 47,535
Citywide Sidewalk/ADA Replacement 761,616
Fire Station 261 Gate and Door Installations 207,275
Fire Station 262 Architectural Design 208,000
Library Boiler Design 4,690
PARIS Construction Inspection Services-General Fund Portion 4,000 Pickleball Conversion Project-General Fund Portion 69,742 Redlands Bowl Improvements 19,500
Traffic Signal Cabinet 21,226
Trailer for Streets 26,997
Video Detection System 20,119
Total for General Fund $ 2,128,700
Governmental Grants Special Revenue Fund
HSIP Cycle 8 Vehicle Preemption System Project 937,418
Total for Governmental Grants Special Revenue Fund $ 937,418 Water Fund
2021 CIP Water Pipeline $ 682,436
Automated Metering Infrastructure 783,373
Design and Integration Services 8,974
PARIS Construction Inspection Services-Water Fund Portion 30,590 Street Paving Repair 44,611
Water Forklift & Trailer 52,917
Water SCADA System Upgrade 3,679,720
Total for Water Fund $ 5,282,621
Solidwaste Fund
Design of Landfill Gas Extraction Wells Phase 2 & Phase 3 $ 12,515 Solidwaste Vehicles 1,179,414
Total for Solidwaste Fund $ 1,191,929
Wastewater Fund
Design services for Sewer Treatment Facility $ 1,522,816 WWTP MBR System & Installation-Phase 1 502,398
PARIS Construction Inspection Services-Wastewater Fund Portion 39,610 Wastewater Forklift 33,806
Wastewater Laboratory Equipment 72,077
Total for Wastewater Fund $ 2,170,707
Non-Major Funds
Alley Paving Improvement Project-PARIS Fund Portion $ 500,000 East Valley Corridor Bike Route Project-TDA Fund 4,986
Orange Blossom Trail Phase III Project-TDA Fund 782,396 PARIS Construction Inspection Services-PARIS Fund Portion 45,000 Pickleball Conversion Project-Parks & Open Space Fund Portion 6,712 Police Motorcycles - Supplemental Law Enforcement Grant Fund 60,260 Redlands Passenger Rail Project Platform Construction-Air Quality Improvement Fund 127,342 Traffic Signal Improvements Project - Traffic Signals Fund 507,745 WWTP Recycled Water Reservoir Project - Nonpotable Water Fund 681,578 Total for Non-Major Funds $ 2,716,019
Redlands Regular Meeting of 02-21-23 Page 398 of 786
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Redlands Regular Meeting of 02-21-23 Page 399 of 786
129

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
Redlands Regular Meeting of 02-21-23 Page 400 of 786
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Redlands Regular Meeting of 02-21-23 Page 401 of 786
City of Redlands
Required Supplementary Information (Unaudited)
Budgetary Information
For the Year Ended June 30, 2022
131
Budgetary Information
Budgets are legally adopted and formal budgetary integration is employed as a management control device during the year for all governmental fund types. The budget is prepared on a GAAP (Generally Accepted Accounting Principles) basis. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments.

The City Council may amend the budget only during a regular meeting, providing that sufficient monies are available and that expenditures of proceeds of taxes will not be increased beyond the constitutional appropriation limit as imposed by Article XIIIB of the State Constitution.

The City's formal budgetary process begins at the operating program level. Departmental budgets are comprised of the various operating program budgets. Operating programs do not cross departmental lines. Individual fund budgets consist of the departmental budgets; departmental budgets may cross fund lines.

Individual fund budgets are, in all cases where appropriations are required, the same as the appropriation amounts. In the case of the Governmental Fund types, unexpended budgeted amounts, except for amounts relating to capital projects, lapse at the end of the budget year. Spending control (legal level) for most funds is established by the amount of expenditures budgeted at the departmental and fund levels. Accordingly, the General Fund expenditures are displayed in the supplementary schedules at the department level and the Special Revenue, Debt Service, Capital Projects, and Permanent Funds expenditures are displayed at the function level. Management control is exercised at the line item level in each operating program. Management can transfer budgeted amounts within operating programs, departments or funds, provided that such transfers do not increase the overall budget. Appropriations that increase the budget require City Council approval.

Redlands Regular Meeting of 02-21-23 Page 402 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund
For the Year Ended June 30, 2022
132
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes $ 36,309,725 $ 35,436,946 $ 35,999,098 $ 562,152 Sales and use taxes 35,420,916 46,624,541 48,232,171 1,607,630 Other taxes 1,910,000 2,447,000 2,706,919 259,919
Franchise fees 2,358,585 2,630,212 2,625,852 (4,360)
Licenses and permits 6,674,774 7,530,463 8,121,859 591,396 Fines and forfeitures 232,000 116,000 191,571 75,571
Intergovernmental 625,700 601,383 1,239,804 638,421
Charges for services 7,410,568 7,350,663 7,821,186 470,523 Investment income (loss) 250,000 175,350 (2,572,366) (2,747,716) Rents and leases 100,000 1,577,825 1,793,787 215,962
Miscellaneous 902,686 1,169,219 1,474,949 305,730
Total revenues 92,194,954 105,659,602 107,634,830 1,975,228 EXPENDITURES:

Current:

General government
City council 464,587 368,263 347,036 21,227
City clerk 400,412 224,903 213,078 11,825
City manager 6,318,265 6,085,122 5,598,992 486,130
Finance 2,322,295 2,452,591 1,994,518 458,073
City attorney 676,455 1,139,658 1,169,087 (29,429)
Development services 3,359,208 3,525,760 3,581,029 (55,269) Facilities 2,425,493 4,558,696 4,552,077 6,619
Public works engineering 1,664,840 1,963,971 1,393,688 570,283 Budgeted Amounts
Redlands Regular Meeting of 02-21-23 Page 403 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – General Fund (Continued) For the Year Ended June 30, 2022
133
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
Public safety
Police 33,197,036 32,245,839 29,547,850 2,697,989
Fire 15,971,368 15,681,961 14,756,024 925,937
Culture and recreation
Community services 1,398,824 1,474,927 1,357,398 117,529 Parks 3,871,516 4,097,987 3,918,339 179,648
Highway and streets
Electrical and streets 3,417,509 4,744,193 2,173,052 2,571,141 Library 2,642,395 2,672,615 2,601,164 71,451
Capital outlay 3,892,815 21,567,208 21,461,706 105,502
Debt Service:

Principal 318,539 3,471,073 518,464 2,952,609
Interest and fiscal charges 1,473,151 1,734,552 209,090 1,525,462 Total expenditures 108,009,319 83,814,708 95,392,592 12,616,727 REVENUES OVER (UNDER) EXPENDITURES (2,349,717) 8,380,246 12,242,238 14,591,955 OTHER FINANCING SOURCES (USES):

Inception of finance purchase agreement - - 3,275,547 3,275,547 Inception of lease payable - - 196,119 196,119
Transfers in 2,266,057 45,689,313 45,779,314 90,001
Transfers out (7,148,965) (23,524,118) (23,386,161) 137,957 Total other financing sources (uses) 22,165,195 (4,882,908) 25,864,819 3,699,624 Net change in fund balance $ 19,815,478 3,497,338 $ 38,107,057 18,291,579 $ FUND BALANCE:

Beginning of year 55,333,167
End of year $ 93,440,224
Budgeted Amounts
Redlands Regular Meeting of 02-21-23 Page 404 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – Public Facilities Development Special Revenue Fund For the Year Ended June 30, 2022
134
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services $ 429,000 $ 1,376,600 $ 1,094,573 $ (282,027) Total revenues 429,000 1,376,600 1,094,573 (282,027)
EXPENDITURES:

Current:

General government - 20,500 38,624 (18,124)
Debt Service:

Interest and fiscal charges - - 32,211 (32,211)
Total expenditures - 20,500 70,835 (50,335)
Net change in fund balance $ 429,000 $ 1,356,100 1,023,738 $ (332,362) FUND BALANCE:

Beginning of year (7,285,430)
End of year $ (6,261,692)
Budgeted Amounts
Redlands Regular Meeting of 02-21-23 Page 405 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedules – Governmental Grants Special Revenue Fund For the Year Ended June 30, 2022
135
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental $ 425,706 $ 19,739,196 $ 4,097,557 $ (15,641,639) Investment income (loss) - - 9 9
Total revenues 425,706 19,739,196 4,097,566 (15,641,630) EXPENDITURES:

Current:

General government 111,794 11,149,718 3,740,556 7,409,162 Public safety 20,930 468,435 290,916 177,519
Culture and recreation - 133,638 59,394 74,244
Capital outlay 293,000 7,496,069 72,210 7,423,859
Total expenditures 425,724 19,247,860 4,163,076 15,084,784 REVENUES OVER (UNDER) EXPENDITURES (18) 491,336 (65,510) (556,846) OTHER FINANCING SOURCES (USES):

Transfers in - - 240 240
Total other financing sources (uses) - - 240 240
Net change in fund balance $ (18) $ 491,336 (65,270) $ (556,606) FUND BALANCE:

Beginning of year (266,326)
End of year $ (331,596)
Budgeted Amounts
Redlands Regular Meeting of 02-21-23 Page 406 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
136
Measurement period, year ended 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Total pension liability
Service cost 3,525,116 $ 3,365,376 $ 3,334,799 $ 3,368,018 $ 3,278,844 $ 2,780,753 $ 2,735,046 $ 2,703,390 $ Interest on total pension liability 12,569,714 12,119,433 11,680,277 11,240,326 10,868,639 10,539,757 10,224,502 9,786,094 Differences between expected and actual
experience 247,796 270,034 419,589 529,928 285,453 (1,148,342) 334,519 - Changes in assumptions - - - (874,625) 8,600,283 - (2,403,446) - Changes in benefit terms - - - - - - - -
Benefit payments, including refunds of employee
contributions (9,643,784) (9,385,911) (8,930,778) (8,785,537) (8,512,367) (7,929,573) (7,496,594) (7,031,419) Net change in total pension liability 6,368,932 6,698,842 6,503,887 5,478,110 14,520,852 4,242,595 3,394,027 5,458,065 Total pension liability - beginning 172,242,803 178,611,735 165,738,916 160,260,806 145,739,954 141,497,359 138,103,332 132,645,267 Total pension liability - ending (a) $ 178,611,735 185,310,577 $ 172,242,803 $ 165,738,916 $ 160,260,806 $ 145,739,954 $ 141,497,359 $ 138,103,332 $ Plan fiduciary net position
Contributions - employer 5,653,857 5,163,971 4,543,195 3,856,431 $ 3,706,235 $ 3,297,550 $ 2,749,274 $ 2,614,893 $ Contributions - employee 1,628,531 1,617,023 1,587,404 1,444,993 1,461,526 1,324,766 1,219,187 1,378,971 Investment income (net of administrative expenses) 29,305,630 6,312,755 7,923,614 9,732,163 11,870,046 602,969 2,473,614 16,743,903 Benefit payments (9,643,784) (9,385,911) (8,930,778) (8,785,537) (8,512,367) (7,929,573) (7,496,594) (7,031,419) Plan to plan resources - - (343,451) 283 - - - -
Other (130,119) (178,655) (86,841) (180,708) (158,865) (67,266) (121,971) - Net change in plan fiduciary net position 26,814,115 3,529,183 5,036,877 5,723,891 8,366,575 (2,771,554) (1,176,490) 13,706,348 Plan fiduciary net position - beginning 130,256,891 126,727,708 121,690,831 115,966,940 107,600,365 110,371,919 111,548,409 97,842,061 Plan fiduciary net position - ending (b) $ 130,256,891 157,071,006 $ 126,727,708 $ 121,690,831 $ 115,966,940 $ 107,600,365 $ 110,371,919 $ 111,548,409 $ Net pension liability - ending (a)-(b) $ 28,239,571 $ 48,354,844 $ 45,515,095 $ 44,048,085 $ 44,293,866 $ 38,139,589 $ 31,125,440 $ 26,554,923 Plan fiduciary net position as a percentage
of the total pension liability 84.76% 72.93% 73.58% 73.42% 72.36% 73.83% 78.00% 80.77% Covered payroll $ 22,757,364 $ 21,408,242 $ 20,763,335 $ 20,950,595 $ 19,905,560 $ 18,459,592 $ 17,893,660 $ 16,826,776 Net pension liability as a percentage of
covered payroll 124.09% 225.87% 219.21% 210.25% 222.52% 206.61% 173.95% 157.81% Notes to Schedule:
1 Information only presented from the implementation year Miscellaneous Plan
Benefit changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes).

Redlands Regular Meeting of 02-21-23 Page 407 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
137
Measurement period, year ended 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 1.077228% 0.809500% 0.790200% 0.779400% 0.746000% 0.748700% 0.737700% 0.689500% Plan's proportionate share of
the net pension liability $ 58,259,612 $ 88,080,547 $ 80,975,102 $ 75,109,650 $ 73,979,298 $ 64,784,346 $ 50,633,826 $ 42,905,786 Plan's covered-employee payroll $ 17,236,908 $ 17,522,750 $ 17,236,908 $ 14,894,900 $ 14,827,015 $ 14,604,289 $ 14,342,189 $ 14,292,490 Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 337.99% 502.66% 469.78% 504.26% 498.95% 443.60% 353.04% 300.20% Plan's fiduciary net position $ 200,216,677 244,268,089 $ 195,371,697 $ 188,434,296 $ 182,071,554 $ 172,261,918 $ 178,611,604 $ 160,060,272 $ Plan's fiduciary net position as a percentage
of the total pension liability 80.74% 69.45% 70.70% 71.50% 71.11% 72.67% 77.91% 78.86% Plan's proportionate share of aggregate
employer contributions $ 9,582,627 $ 8,703,374 $ 7,448,780 $ 6,211,050 $ 5,886,486 $ 5,126,655 $ 4,246,980 $ 4,123,282 1 Information only presented from the implementation year Safety Plan
Redlands Regular Meeting of 02-21-23 Page 408 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension
For the Year Ended June 30, 2022
138

Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-151 Contractually determined
contribution (actuarially determined) 6,077,846 $ 5,676,210 $ 5,159,972 $ 4,472,807 $ 3,797,781 $ 3,705,781 $ 3,297,550 $ 2,749,274 $ Contributions in relation to the
actuarially determined contributions (6,077,846) (5,676,210) (5,159,972) (4,472,807) (3,797,781) (3,705,781) (3,297,550) (2,749,274) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ Covered payroll 23,450,886 $ 22,767,850 $ 22,631,158 $ 22,121,385 $ 19,836,302 $ 20,199,995 $ 18,953,660 $ 17,548,793 $ Contributions as a percentage of
covered payroll 25.92% 24.93% 22.80% 20.22% 19.15% 18.35% 17.40% 15.67% Notes to Schedule
Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2022:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.750%
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries.

Varies by entry age and service

7.00% net of pension plan investment and administrative expenses.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.

2.50%
Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

For details, see June 30, 2019 Funding Valuation Report Entry Age Normal
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.

Miscellaneous Plan
Redlands Regular Meeting of 02-21-23 Page 409 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions – Pension (Continued)
For the Year Ended June 30, 2022
139
Fiscal Year: 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-151 Contractually determined
contribution (actuarially determined) 10,344,274 $ 9,582,627 $ $ 8,703,374 $ 7,448,780 $ 6,211,050 $ 5,886,486 $ 5,126,655 $ 4,246,980 Contributions in relation to the
actuarially determined contributions (10,344,274) (9,582,627) (8,703,374) (7,448,780) (6,211,050) (5,886,486) (5,126,655) (4,246,980) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 17,415,769 17,938,242 $ 17,522,750 $ 17,236,908 $ 14,894,900 $ 14,827,015 $ 14,604,289 $ 14,342,189 $ Contributions as a percentage of
covered payroll 57.67% 55.02% 49.67% 43.21% 41.70% 39.70% 35.10% 29.61% Notes to Schedule
Methods and assumptions used to determine contribution rates for the fiscal year ended June 30, 2022:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.750%
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP2016 published by the Society of Actuaries.

Safety Plan
Varies by entry age and service

7.00% net of pension plan investment and administrative expenses.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 and 2015.

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022 were derived from the June 30, 2019 funding valuation report.

Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

2.50%
Redlands Regular Meeting of 02-21-23 Page 410 of 786
City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios For the Year Ended June 30, 2022
140
Measurement period, year ending: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 4,405,809 $ 4,371,866 $ 4,540,301 $ 4,647,747 $ 4,517,859 $ Interest 3,775,999 4,254,153 4,744,702 4,497,267 4,351,611 Changes of benefit terms - - - -
Differences between expected and actual experience 3,545,600 139,016 4,588,088 - - Changes of assumptions 42,967,302 14,314,382 (4,153,914) (2,485,196) - Benefit payments, including refunds of member contributions (4,960,733) (4,882,065) (4,526,765) (4,525,686) (4,050,613) Net change in total OPEB liability 18,197,352 49,733,977 5,192,412 2,134,132 4,818,857 Total OPEB liability - beginning 133,984,593 152,181,945 128,792,181 126,658,049 121,839,192 Total OPEB liability - ending (a) $ 152,181,945 201,915,922 $ 133,984,593 $ 128,792,181 $ 126,658,049 $ OPEB fiduciary net position
Contributions - employer 4,960,733 $ 4,882,065 $ 4,526,765 $ 4,525,686 $ 4,050,613 $ Net investment income - - - - -
Benefit payments, including refunds of member contributions (4,960,733) (4,882,065) (4,526,765) (4,525,686) (4,050,613) Administrative expense - - - - -
Net change in plan fiduciary net position - - - - -
Plan fiduciary net position - beginning - - - - -
Plan fiduciary net position - ending (b) $ - - $ - $ - $ $ - Plan net OPEB liability - ending (a) - (b) $ 201,915,922 $ 152,181,945 $ 133,984,593 $ 128,792,181 $ 126,658,049 Plan fiduciary net position as a
percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll $ 34,958,699 $ 35,722,602 $ 33,975,526 $ 31,410,072 $ 32,062,170 Plan net OPEB liability as a
percentage of covered-employee payroll 577.58% 426.01% 394.36% 410.03% 395.04% 1 Information only presented from the implementation year Redlands Regular Meeting of 02-21-23 Page 411 of 786

SUPPLEMENTARY INFORMATION
141
Redlands Regular Meeting of 02-21-23 Page 412 of 786
Special Revenue Funds:

Emergency Service Fund - This fund is used to account for the collection of a special property tax to be spent on paramedic services.

Household Hazardous Waste Fund - This fund is used to account for revenue collected and expenditures made to properly dispose of household hazardous waste.

Gas Tax Fund - This fund is used to account for the receipt and subsequent expenditure of the City’s share of the State levied tax on gasoline and other vehicle fuels.

Air Quality Improvement Fund - To account for the collection and subsequent expenditure of AB2766 (District Fees to Implement the California Clean Air Act) monies to be used for pollution reduction.

Traffic Safety Fund - This fund is used to account for the receipt of traffic fines for moving violations within the City limits.

Measure I Fund - This fund is used to account for “new” revenues resulting from a voter-approved renewal of a halfcent retail transaction and use tax, to be used for transportation improvements and traffic management programs.

Open Space Fund - This fund is used to account for receipt and subsequent expenditure of developer fees collected to acquire open space land in and around the City.

Downtown Redlands Business Area Fund - This fund is used to account for various activities and special events with the intent of attracting business to the downtown area.

Parking Authority Fund - This fund is used to account for receipt and subsequent expenditure of fees collected as a result of a city-wide authority formed to control parking.

Asset Forfeiture Fund - This fund is used to account for receipt and subsequent expenditure of various asset seizure monies.

Supplemental Law Enforcement Fund - To account for receipt and subsequent expenditure of AB1913 monies, which, pursuant to the Citizens’ Option for Public Safety (COPS) Program, must be spent for supplemental law enforcement services.

Park & Open Space Development Fund - This fund is used to account for the collection and subsequent expenditure of developer fees levied for the purpose of acquiring and developing land for parks and open space.

Arterial Street Construction Fund - To account for the collection and related expenditure of development impact fees designated for arterial street construction projects.

Traffic Signals Fund - This fund is used to account for the collection and related expenditure of development impact fees designated for traffic signal construction projects.

Freeway Interchanges Fund - This fund is used to account for the collection and related expenditure of development impact fees designated for freeway interchange construction projects.

Non-Major Governmental Funds
142
Redlands Regular Meeting of 02-21-23 Page 413 of 786
Special Revenue Funds (Continued):

Street Lighting District #1 Fund - This fund is used to account for the maintenance, operation, and service of street lighting facilities financed by assessments collected from landowners within the district.

CFD 2004-1 Assessments Fund - This fund is used to account for the maintenance of landscaping in public rightofway and easements surrounding tracts within the district.

Landscape Maintenance District Fund - This fund is used to account for assessments collected from landowners to maintain landscaping in parkways and common areas within the district.

Local Transportation Fund - This fund is used to account for the receipt and expenditure of street improvement and road construction funds from various sources including projects financed by State grant activity.

Pavement Accelerated Repair Implementation Strategy (PARIS) - This fund is used to account for the expenditures of the Pavement Accelerated Repair Implementation Strategy (PARIS) program.

Public Art Fund - This fund is used to account for donations and subsequent expenditure on public art installations.

Transportation Development Act - This fund is used to account for the receipt and expenditure of Transportation Development Act revenue received by the City.

Capital Projects Funds:

Storm Drain Construction Fund - This fund is used to account for receipt and subsequent expenditure of developer fees assessed to provide additional storm drains, as required.

Debt Service Funds:

General Debt Service Fund - This fund is used to account for the receipt of property taxes to be used for the retirement of the 2007 Pension Obligation Bonds.

Permanent Funds:

Simonds Parkway Endowment Fund - This fund is used to account for the monies endowed by Priscilla Alden Simonds to the City for the Simonds Parkway.

Pauline Stancliff Memorial Trust Fund - This fund is used to account for the monies gifted by Pauline Stancliff to the City for benefit of the Joslyn Senior Center.

Non-Major Governmental Funds (Continued)
143
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This page intentionally left blank.
144
Redlands Regular Meeting of 02-21-23 Page 415 of 786
Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 192,270 $ 276,535 $ 390,614 - $ $ - Restricted cash and investments - - - - -
Accounts receivable, net 16,985 - - - -
Taxes receivable 21,277 390,629 - - -
Lease receivable - - - - -
Due from other governments - - 23,402 - 12,849
Prepaid items - - - - -
Total assets $ 213,547 $ 293,520 $ 390,629 $ 414,016 $ 12,849

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable $ 27,633 $ - $ - $ - $ 4,255
Accrued payroll 185,914 - - - -
Deposits payable - - - - -
Unearned revenues - - - - -
Due to other funds - - - - -
Total liabilities 213,547 - - - 4,255
Deferred inflows of resources:

Unavailable revenue - - 23,402 - -
Deferred inflows related to leases - - - - -
Total deferred inflows
of resources - - 23,402 - -
Fund Balances:

Nonspendable - - - - -
Restricted 293,520 - 390,629 390,614 8,594
Committed - - - - -
Unassigned - - - - -
Total fund balances 293,520 - 390,629 390,614 8,594
Total liabilities, deferred
inflows of resources,
and fund balances $ 213,547 $ 293,520 $ 390,629 $ 414,016 $ 12,849 (Continued)
Special Revenue Funds
Combining Balance Sheet
For the Year Ended June 30, 2022
Non-Major Governmental Funds
City of Redlands
145
Redlands Regular Meeting of 02-21-23 Page 416 of 786
Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 397,091 $ 2,156,054 $ 22,095 $ 12,716 $ 1,281,742 Restricted cash and investments - - - - -
Accounts receivable, net - - - 1,849 -
Taxes receivable 494,726 - - - -
Lease receivable - - 116,216 - -
Due from other governments - - - - -
Prepaid items - - - - 9,500
Total assets $ 891,817 $ 2,156,054 $ 22,095 $ 130,781 $ 1,291,242

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable $ - $ 22,095 - $ $ 1,658 $ -
Accrued payroll - - - - -
Deposits payable - - 11,981 - 10,103
Unearned revenues - - - 924 -
Due to other funds - - - - -
Total liabilities - 22,095 - 14,563 10,103
Deferred inflows of resources:

Unavailable revenue 164,961 - - - -
Deferred inflows related to leases - - - 115,435 -
Total deferred inflows
of resources 164,961 - 115,435 - -
Fund Balances:

Nonspendable - - - - 9,500
Restricted 726,856 - - 1,271,639 783
Committed 2,156,054 - - - -
Unassigned - - - - -
Total fund balances 726,856 2,156,054 - 1,281,139 783
Total liabilities, deferred
inflows of resources,
and fund balances $ 891,817 $ 2,156,054 $ 22,095 $ 130,781 $ 1,291,242 (Continued)
Special Revenue Funds
City of Redlands
Combining Balance Sheet (Continued)
For the Year Ended June 30, 2022
Non-Major Governmental Funds
146
Redlands Regular Meeting of 02-21-23 Page 417 of 786
Supplemental
Law Enforcement Park and Arterial Street Traffic Freeway Grant Open Space Construction Signals Interchanges
Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 488,022 $ 2,046,443 $ 4,444,102 $ 1,449,748 $ 3,463,837 Restricted cash and investments - - - - -
Accounts receivable, net - - - - -
Taxes receivable - - - - -
Lease receivable - - - - -
Due from other governments - - - - -
Prepaid items - - - - -
Total assets $ 488,022 $ 2,046,443 $ 4,444,102 $ 1,449,748 $ 3,463,837

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable $ - $ 4,319 $ - $ 2,036 $ 1,845,271
Accrued payroll 992 - - - -
Deposits payable - 28,554 - 270,988 -
Unearned revenues 397,853 - - - -
Due to other funds - - - - -
Total liabilities 398,845 4,319 28,554 273,024 1,845,271 Deferred inflows of resources:

Unavailable revenue - - - - -
Deferred inflows related to leases - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances:

Nonspendable - - - - -
Restricted 89,177 - - - -
Committed 2,042,124 - 4,415,548 1,176,724 1,618,566
Unassigned - - - - -
Total fund balances 89,177 2,042,124 4,415,548 1,176,724 1,618,566 Total liabilities, deferred
inflows of resources,
and fund balances $ 488,022 $ 2,046,443 $ 4,444,102 $ 1,449,748 $ 3,463,837 (Continued)
Special Revenue Funds
Combining Balance Sheet (Continued)
City of Redlands
For the Year Ended June 30, 2022
Non-Major Governmental Funds
147
Redlands Regular Meeting of 02-21-23 Page 418 of 786
Street Landscape
Lighting CFD 2004-1 Maintenance Local
District #1 Assessment District Transportation PARIS
Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 32,638 $ 175,678 $ 3,818 $ 230,114 $ 2,863,787 Restricted cash and investments - - - - -
Accounts receivable, net - - - 116,677 -
Taxes receivable 197 9,781 54 - -
Lease receivable - - - - -
Due from other governments - - - - -
Prepaid items - - - - -
Total assets $ 32,835 $ 185,459 $ 3,872 $ 230,114 $ 2,980,464

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable $ 32,072 - $ $ 3,273 $ 686,176 - $
Accrued payroll 734 4,349 599 17,027 -
Deposits payable 25,000 - 35,074 - 27,327
Unearned revenues - - - 58,339 -
Due to other funds - - - - -
Total liabilities 734 61,421 3,872 35,074 788,869
Deferred inflows of resources:

Unavailable revenue - - - - -
Deferred inflows related to leases - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances:

Nonspendable - - - - -
Restricted 32,101 124,038 195,040 - 2,191,595
Committed - - - - -
Unassigned - - - - -
Total fund balances 32,101 124,038 195,040 - 2,191,595
Total liabilities, deferred
inflows of resources,
and fund balances $ 32,835 $ 185,459 $ 3,872 $ 230,114 $ 2,980,464 (Continued)
Special Revenue Funds
Combining Balance Sheet (Continued)
City of Redlands
For the Year Ended June 30, 2022
Non-Major Governmental Funds
148
Redlands Regular Meeting of 02-21-23 Page 419 of 786
Capital Projects Debt Service Permanent
Funds Funds Funds
Transportation
Development Storm General Simonds
Public Art Act Drain Debt Service Endowment
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 12,018 $ - $ 2,407,145 $ 209,784 $ 37,095 $ Restricted cash and investments - - - 1,608,288 -
Accounts receivable, net - - - - -
Taxes receivable - - - 1,311 -
Lease receivable - - - - -
Due from other governments - 13,859 - - -
Prepaid items - - - - -
Total assets $ 13,859 12,018 $ 2,407,145 $ 1,819,383 $ 37,095 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 1,200 $ - $ - $
Accrued payroll - - - - -
Deposits payable - - - - -
Unearned revenues - - - - -
Due to other funds - 13,766 - - -
Total liabilities 13,766 - 1,200 - -
Deferred inflows of resources:

Unavailable revenue 13,859 - - - -
Deferred inflows related to leases - - - - -
Total deferred inflows
of resources 13,859 - - - -
Fund Balances:

Nonspendable - - - 10,000 -
Restricted 12,018 2,405,945 - 1,819,383 27,095
Committed - - - - -
Unassigned (13,766) - - - -
Total fund balances 12,018 (13,766) 2,405,945 1,819,383 37,095 Total liabilities, deferred
inflows of resources,
and fund balances $ 12,018 $ 13,859 $ 2,407,145 $ 1,819,383 $ 37,095 (Continued)
Combining Balance Sheet (Continued)
City of Redlands
Special Revenue Funds
For the Year Ended June 30, 2022
Non-Major Governmental Funds
149
Redlands Regular Meeting of 02-21-23 Page 420 of 786
Permanent
Funds
Pauline Total
Stancliff Non-Major
Memorial Governmental
Trust Fund Funds
ASSETS
Cash and investments $ 22,615,273 21,927 $
Restricted cash and investments 1,608,288 -
Accounts receivable, net 135,511 -
Taxes receivable 917,975 -
Lease receivable 116,216 -
Due from other governments 50,110 -
Prepaid items - 9,500
Total assets $ 21,927 $ 25,452,873

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable $ 2,629,988 - $
Accrued payroll 209,615 -
Deposits payable 409,027 -
Unearned revenues 457,116 -
Due to other funds 13,766 -
Total liabilities 3,719,512 -
Deferred inflows of resources:

Unavailable revenue 202,222 -
Deferred inflows related to leases 115,435 -
Total deferred inflows
of resources 317,657 -
Fund Balances:

Nonspendable 20,200 39,700
Restricted 1,727 9,980,754
Committed 11,409,016 -
Unassigned (13,766) -
Total fund balances 21,927 21,415,704
Total liabilities, deferred
inflows of resources,
and fund balances $ 21,927 $ 25,452,873
(Concluded)
Combining Balance Sheet (Continued)
City of Redlands
For the Year Ended June 30, 2022
Non-Major Governmental Funds
150
Redlands Regular Meeting of 02-21-23 Page 421 of 786
Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
REVENUES:

Property taxes $ 1,134,298 $ - $ - $ - $ -
Sales and use taxes - - - - -
Licenses and permits - - - - -
Fines and forfeitures - - - 143,678 -
Intergovernmental - 3,135,781 - 68,898 -
Charges for services 162,825 - - - -
Investment income (loss) - - (11,060) - -
Rents and leases - - - - -
Miscellaneous 3,160 - - - -
Total revenues 1,137,458 162,825 3,135,781 57,838 143,678 EXPENDITURES:

Current:

General government - - - - -
Public safety 5,104,103 132,574 - 141,082 -
Culture and recreation - - - - -
Highway and streets - 1,556,441 - 381 -
Capital outlay - 1,428,405 - - -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 5,104,103 132,574 2,984,846 141,082 381

REVENUES OVER
(UNDER) EXPENDITURES (3,966,645) 30,251 150,935 57,457 2,596 OTHER FINANCING SOURCES (USES):

Transfers in 3,966,644 - - - -
Transfers out - - - - -
Total other financing sources (uses) 3,966,644 - - - -
NET CHANGES IN FUND BALANCES 30,251 (1) 150,935 57,457 2,596 FUND BALANCES:

Beginning of year 263,269 1 239,694 333,157 5,998
End of year $ 293,520 - $ $ 390,629 $ 390,614 $ 8,594
(Continued)
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2022
151
Redlands Regular Meeting of 02-21-23 Page 422 of 786
Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ - $ - $ -
Sales and use taxes 1,711,608 - - - -
Licenses and permits - - - - -
Fines and forfeitures - - - 102,983 -
Intergovernmental - - - - -
Charges for services 479,934 - 4,539 - -
Investment income (loss) (77,989) (60,849) 1,288 1,884 10,930 Rents and leases - - 11,556 - -
Miscellaneous - 28,122 - - -
Total revenues 1,633,619 419,085 33,949 13,440 113,913
EXPENDITURES:

Current:

General government - 97,187 - 21,993 -
Public safety - - - 58,508 -
Culture and recreation 9,598 - - - -
Highway and streets 14,496 - - - -
Capital outlay 2,248,805 - - 6,783 -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 2,263,301 9,598 97,187 21,993 65,291

REVENUES OVER
(UNDER) EXPENDITURES (629,682) 409,487 (63,238) (8,553) 48,622 OTHER FINANCING SOURCES (USES):

Transfers in - 63,238 - 9,336 -
Transfers out - - - - -
Total other financing sources (uses) - 63,238 - 9,336 - NET CHANGES IN FUND BALANCES (629,682) 409,487 - 783 48,622 FUND BALANCES:

Beginning of year 1,356,538 1,746,567 - 1,232,517 -
End of year $ 726,856 $ 2,156,054 $ - $ 1,281,139 783 $ (Continued)
Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2022
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 152
Redlands Regular Meeting of 02-21-23 Page 423 of 786
Supplemental
Law Enforcement Park and Arterial Street Traffic Freeway Grant Open Space Construction Signals Interchanges
Fund Fund Fund Fund Fund
REVENUES:

Property taxes - $ - $ - $ - $ - $
Sales and use taxes - - - - -
Licenses and permits - - - - -
Fines and forfeitures - - - - -
Intergovernmental 17,750 - - - 188,998
Charges for services - 1,468,650 652,898 76,221 387,421 Investment income (loss) (13,967) (60,171) (124,175) (39,968) (97,255) Rents and leases - - - - -
Miscellaneous - - - - -
Total revenues 1,408,479 3,783 528,723 36,253 479,164
EXPENDITURES:

Current:

General government - - - - -
Public safety 17,749 - - - -
Culture and recreation - - - - -
Highway and streets - 33,218 13,057 24,920 39,793
Capital outlay - 109,209 - 12,480 1,867,071
Debt service:

Principal - 62,859 - - -
Interest and fiscal charges - 39,398 - - -
Total expenditures 17,749 244,684 13,057 37,400 1,906,864

REVENUES OVER
(UNDER) EXPENDITURES (13,966) 1,163,795 515,666 (1,427,700) (1,147) OTHER FINANCING SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
NET CHANGES IN FUND BALANCES (13,966) 1,163,795 515,666 (1,427,700) (1,147) FUND BALANCES:

Beginning of year 103,143 878,329 3,899,882 1,177,871 3,046,266 End of year $ 89,177 $ 2,042,124 $ 4,415,548 $ 1,176,724 $ 1,618,566 (Continued)
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2022
153
Redlands Regular Meeting of 02-21-23 Page 424 of 786
Street Landscape
Lighting CFD 2004-1 Maintenance Local
District #1 Assessment District Transportation PARIS
Fund Fund Fund Fund Fund
REVENUES:

Property taxes $ - $ - $ - $ - $ -
Sales and use taxes - - - - -
Licenses and permits - - - 711 -
Fines and forfeitures - - - - -
Intergovernmental - - - - -
Charges for services 27,123 543,254 6,852 - -
Investment income (loss) (8,484) - (6,350) - 69,152
Rents and leases - - - - -
Miscellaneous 12,500 - - 58,339 -
Total revenues 27,123 547,270 6,852 (5,639) 127,491
EXPENDITURES:

Current:

General government 417,608 - 55,535 - -
Public safety - - - - -
Culture and recreation - - - - -
Highway and streets 17,269 - - 611,083 777
Capital outlay - - - 4,599,736 -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 17,269 417,608 55,535 5,210,819 777

REVENUES OVER
(UNDER) EXPENDITURES 9,854 129,662 (48,683) (5,083,328) (6,416) OTHER FINANCING SOURCES (USES):

Transfers in - 48,683 - 2,003,591 -
Transfers out (105,435) - - - -
Total other financing sources (uses) (105,435) - 48,683 2,003,591 - NET CHANGES IN FUND BALANCES 9,854 24,227 (6,416) - (3,079,737) FUND BALANCES:

Beginning of year 22,247 99,811 201,456 - 5,271,332
End of year $ 32,101 $ 124,038 $ 195,040 - $ $ 2,191,595 (Continued)
Special Revenue Funds
For the Year Ended June 30, 2022
Non-Major Governmental Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 154
Redlands Regular Meeting of 02-21-23 Page 425 of 786
Capital Projects Debt Service Permanent
Funds Funds Funds
Transportation
Development Storm General Simonds
Public Art Act Drain Debt Service Endowment
Fund Fund Fund Fund Fund
REVENUES:

Property taxes - $ - $ - $ 58,870 $ - $
Sales and use taxes - - - - -
Licenses and permits - - - - -
Fines and forfeitures - - - - -
Intergovernmental - - - - -
Charges for services - - 306,559 - -
Investment income (loss) (331) - (65,235) (5,949) (1,022) Rents and leases - - - - -
Miscellaneous - - - - -
Total revenues - (331) 241,324 52,921 (1,022)
EXPENDITURES:

Current:

General government - - 12,428 3,423 -
Public safety - - - - -
Culture and recreation 1,601 - - - -
Highway and streets - 6,545 - - -
Capital outlay - - - - -
Debt service:

Principal - - - 1,480,000 -
Interest and fiscal charges - - 331,692 - -
Total expenditures 1,601 6,545 12,428 1,815,115 -

REVENUES OVER
(UNDER) EXPENDITURES (1,932) (6,545) 228,896 (1,762,194) (1,022) OTHER FINANCING SOURCES (USES):

Transfers in - - 1,907,565 - -
Transfers out - - - - -
Total other financing sources (uses) - - 1,907,565 - -
NET CHANGES IN FUND BALANCES (1,932) (6,545) 228,896 145,371 (1,022) FUND BALANCES:

Beginning of year 13,950 (7,221) 2,177,049 1,674,012 38,117 End of year $ 12,018 $ (13,766) $ 2,405,945 $ 1,819,383 $ 37,095 (Continued)
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended June 30, 2022
155
Redlands Regular Meeting of 02-21-23 Page 426 of 786
Permanent
Funds
Pauline Total
Stancliff Non-Major
Memorial Governmental
Trust Fund Funds
REVENUES:

Property taxes $ 1,193,168 - $
Sales and use taxes 1,711,608 -
Licenses and permits 711 -
Fines and forfeitures 246,661 -
Intergovernmental 3,411,427 -
Charges for services 4,116,276 -
Investment income (loss) (490,155) (604)
Rents and leases 11,556 -
Miscellaneous 102,121 -
Total revenues 10,303,373 (604)
EXPENDITURES:

Current:

General government 608,174 -
Public safety 5,454,016 -
Culture and recreation 11,199 -
Highway and streets 2,317,980 -
Capital outlay 10,272,489 -
Debt service:

Principal 1,542,859 -
Interest and fiscal charges 371,090 -
Total expenditures 20,577,807 -

REVENUES OVER
(UNDER) EXPENDITURES (10,274,434) (604)
OTHER FINANCING SOURCES (USES):

Transfers in 7,999,057 -
Transfers out (105,435) -
Total other financing sources (uses) 7,893,622 -
NET CHANGES IN FUND BALANCES (604) (2,380,812)
FUND BALANCES:

Beginning of year 22,531 23,796,516
End of year $ 21,927 $ 21,415,704
(Concluded)
For the Year Ended June 30, 2022
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Redlands
156
Redlands Regular Meeting of 02-21-23 Page 427 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 5,000 $ 7,500 $ (72,628) $ (80,128) $ Total revenues 7,500 5,000 (72,628) (80,128)
EXPENDITURES:

Current:

General government - 148,600 109,040 39,560
Capital outlay - 16,100,000 16,081,270 18,730
Total expenditures 16,248,600 - 16,190,310 58,290
REVENUES OVER (UNDER) EXPENDITURES (16,241,100) 5,000 (16,262,938) (21,838) OTHER FINANCING SOURCES (USES):

Transfers in - 16,100,000 16,081,616 (18,384)
Total other financing sources (uses) 16,100,000 - 16,081,616 (18,384) Net change in fund balance $ (141,100) 5,000 $ (181,322) (40,222) $ FUND BALANCE:

Beginning of year 2,742,004
End of year $ 2,560,682
City of Redlands
Budgetary Comparison Schedule
Safety Hall Replacement Capital Projects Fund
For the Year Ended June 30, 2022
Budgeted Amounts
157
Redlands Regular Meeting of 02-21-23 Page 428 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 1,000,000 $ 1,100,000 $ 1,134,298 $ 34,298 $ Charges for services 4,000 31,000 - (31,000)
Miscellaneous 5,300 4,700 3,160 (1,540)
Total revenues 1,135,700 1,009,300 1,137,458 1,758
EXPENDITURES:

Current:

Public safety 5,509,111 5,261,200 5,104,103 157,097
Total expenditures 5,261,200 5,509,111 5,104,103 157,097 REVENUES OVER (UNDER) EXPENDITURES (4,125,500) (4,499,811) (3,966,645) 158,855 OTHER FINANCING SOURCES (USES):

Transfers in 4,499,810 4,125,500 3,966,644 (158,856)
Total other financing sources (uses) 4,125,500 4,499,810 3,966,644 (158,856) Net change in fund balance $ - (1) $ (1) (1) $
FUND BALANCE:

Beginning of year 1
End of year $ -
City of Redlands
Budgetary Comparison Schedule
Emergency Service Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
158
Redlands Regular Meeting of 02-21-23 Page 429 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 10,000 $ - $ - $ - $
Charges for services 50,000 105,000 162,825 57,825
Total revenues 105,000 60,000 162,825 57,825
EXPENDITURES:

Current:

Public safety 131,208 132,647 132,574 73
Total expenditures 132,647 131,208 132,574 73
Net change in fund balance $ (27,647) (71,208) $ 30,251 57,898 $ FUND BALANCE:

Beginning of year 263,269
End of year $ 293,520
City of Redlands
Budgetary Comparison Schedule
Household Hazardous Waste Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
159
Redlands Regular Meeting of 02-21-23 Page 430 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 3,076,521 $ 3,337,111 $ 3,135,781 $ (201,330) $ Total revenues 3,337,111 3,076,521 3,135,781 (201,330)
EXPENDITURES:

Current:

Highway and streets 1,648,115 1,908,706 1,556,441 352,265 Capital outlay 1,428,405 1,428,405 1,428,405 -
Total expenditures 3,337,111 3,076,520 2,984,846 352,265 Net change in fund balance $ - 1 $ 150,935 150,935 $
FUND BALANCE:

Beginning of year 239,694
End of year $ 390,629
City of Redlands
Budgetary Comparison Schedule
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
160
Redlands Regular Meeting of 02-21-23 Page 431 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 89,000 $ 89,000 $ 68,898 $ (20,102) $ Investment income (loss) 1,000 - (11,060) (11,060)
Total revenues 89,000 90,000 57,838 (31,162)
EXPENDITURES:

Current:

Highway and streets - 127,722 381 127,341
Total expenditures 127,722 - 381 127,341
Net change in fund balance $ (38,722) 90,000 $ 57,457 96,179 $ FUND BALANCE:

Beginning of year 333,157
End of year $ 390,614
City of Redlands
Budgetary Comparison Schedule
Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
161
Redlands Regular Meeting of 02-21-23 Page 432 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines and forfeitures 202,000 $ 82,000 $ 143,678 $ 61,678 $ Total revenues 82,000 202,000 143,678 61,678
EXPENDITURES:

Current:

Public safety 202,000 82,000 141,082 (59,082)
Total expenditures 82,000 202,000 141,082 (59,082)
Net change in fund balance $ - - $ 2,596 2,596 $
FUND BALANCE:

Beginning of year 5,998
End of year $ 8,594
City of Redlands
Budgetary Comparison Schedule
Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
162
Redlands Regular Meeting of 02-21-23 Page 433 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Sales and use taxes 1,429,595 $ 1,801,168 $ 1,711,608 $ (89,560) $ Investment income (loss) 9,147 - (77,989) (77,989)
Total revenues 1,801,168 1,438,742 1,633,619 (167,549)
EXPENDITURES:

Current:

Highway and streets 14,496 14,496 14,496 -
Capital outlay 2,248,805 2,248,805 2,248,805 -
Total expenditures 2,263,301 2,263,301 2,263,301 -
Net change in fund balance $ (462,133) (824,559) $ (629,682) (167,549) $ FUND BALANCE:

Beginning of year 1,356,538
End of year $ 726,856
City of Redlands
Budgetary Comparison Schedule
Measure I Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
163
Redlands Regular Meeting of 02-21-23 Page 434 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 125,000 $ 345,560 $ 479,934 $ 134,374 $ Investment income (loss) - - (60,849) (60,849)
Total revenues 345,560 125,000 419,085 73,525
EXPENDITURES:

Current:

Culture and recreation - - 9,598 (9,598)
Total expenditures - - 9,598 (9,598)
Net change in fund balance $ 345,560 125,000 $ 409,487 63,927 $ FUND BALANCE:

Beginning of year 1,746,567
End of year $ 2,156,054
City of Redlands
Budgetary Comparison Schedule
Open Space Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
164
Redlands Regular Meeting of 02-21-23 Page 435 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 3,000 $ 3,000 $ 4,539 $ 1,539 $
Investment income (loss) 100 - 1,288 1,288
Miscellaneous 15,000 30,000 28,122 (1,878)
Total revenues 33,000 18,100 33,949 949
EXPENDITURES:

Current:

General government 124,657 90,023 97,187 (7,164)
Total expenditures 90,023 124,657 97,187 (7,164)
REVENUES OVER (UNDER) EXPENDITURES (57,023) (106,557) (63,238) (6,215) OTHER FINANCING SOURCES (USES):

Transfers in 106,557 106,557 63,238 (43,319)
Total other financing sources (uses) 106,557 106,557 63,238 (43,319) Net change in fund balance $ 49,534 - $ - (49,534) $
FUND BALANCE:

Beginning of year -
End of year $ -
City of Redlands
Budgetary Comparison Schedule
Downtown Redlands Business Area Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
165
Redlands Regular Meeting of 02-21-23 Page 436 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ - $ 1,884 $ 1,884 $
Rents and leases 11,000 11,000 11,556 556
Total revenues 11,000 11,000 13,440 2,440
EXPENDITURES:

Current:

General government 21,800 21,800 21,993 (193)
Total expenditures 21,800 21,800 21,993 (193)
REVENUES OVER (UNDER) EXPENDITURES (10,800) (10,800) (8,553) 2,247 OTHER FINANCING SOURCES (USES):

Transfers in 10,800 10,801 9,336 (1,465)
Total other financing sources (uses) 10,801 10,800 9,336 (1,465) Net change in fund balance $ 1 - $ 783 782 $
FUND BALANCE:

Beginning of year -
End of year $ 783
City of Redlands
Budgetary Comparison Schedule
Parking Authority Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
166
Redlands Regular Meeting of 02-21-23 Page 437 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines and forfeitures 158,279 $ 93,620 $ 102,983 $ 9,363 $ Investment income (loss) - 5,054 10,930 5,876
Total revenues 98,674 158,279 113,913 15,239
EXPENDITURES:

Current:

Public safety 158,279 118,363 58,508 59,855
Capital outlay - 6,783 6,783 -
Total expenditures 125,146 158,279 65,291 59,855
Net change in fund balance $ (26,472) - $ 48,622 75,094 $ FUND BALANCE:

Beginning of year 1,232,517
End of year $ 1,281,139
City of Redlands
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
167
Redlands Regular Meeting of 02-21-23 Page 438 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 299,259 $ 175,059 $ 17,750 $ (157,309) $ Investment income (loss) 3,000 1,500 (13,967) (15,467)
Total revenues 176,559 302,259 3,783 (172,776)
EXPENDITURES:

Current:

Public safety 149,259 37,352 17,749 19,603
Capital outlay 150,000 75,000 - 75,000
Total expenditures 112,352 299,259 17,749 94,603
Net change in fund balance $ 64,207 3,000 $ (13,966) (78,173) $ FUND BALANCE:

Beginning of year 103,143
End of year $ 89,177
City of Redlands
Budgetary Comparison Schedule
Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2022
Budgeted Amounts
168
Redlands Regular Meeting of 02-21-23 Page 439 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 750,000 $ 1,500,000 $ 1,468,650 $ (31,350) $ Investment income (loss) 4,158 - (60,171) (60,171)
Total revenues 1,500,000 754,158 1,408,479 (91,521)
EXPENDITURES:

Current:

Highway and streets 4,029 3,846 33,218 (29,372)
Capital outlay - 138,773 109,209 29,564
Debt service:

Principal 62,859 62,859 62,859 -
Interest and fiscal charges 39,398 39,398 39,398 -
Total expenditures 244,876 106,286 244,684 192
Net change in fund balance $ 1,255,124 647,872 $ 1,163,795 (91,329) $ FUND BALANCE:

Beginning of year 878,329
End of year $ 2,042,124
City of Redlands
Budgetary Comparison Schedule
Park and Open Space Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
169
Redlands Regular Meeting of 02-21-23 Page 440 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 324,000 $ 838,700 $ 652,898 $ (185,802) $ Investment income (loss) 29,308 15,000 (124,175) (139,175) Total revenues 853,700 353,308 528,723 (324,977)
EXPENDITURES:

Current:

Highway and streets - - 13,057 (13,057)
Capital outlay 900,000 - - -
Total expenditures - 900,000 13,057 (13,057)
Net change in fund balance $ 853,700 (546,692) $ 515,666 (338,034) $ FUND BALANCE:

Beginning of year 3,899,882
End of year $ 4,415,548
City of Redlands
Budgetary Comparison Schedule
Arterial Street Construction Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
170
Redlands Regular Meeting of 02-21-23 Page 441 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 20,000 $ 109,000 $ 76,221 $ (32,779) $ Investment income (loss) 9,954 4,500 (39,968) (44,468)
Total revenues 113,500 29,954 36,253 (77,247)
EXPENDITURES:

Current:

Highway and streets 100,000 50,000 24,920 25,080
Capital outlay 500,000 550,000 12,480 537,520
Total expenditures 600,000 600,000 37,400 562,600
REVENUES OVER (UNDER) EXPENDITURES (486,500) (570,046) (1,147) 485,353 Net change in fund balance $ (486,500) (570,046) $ (1,147) 485,353 $ FUND BALANCE:

Beginning of year 1,177,871
End of year $ 1,176,724
City of Redlands
Budgetary Comparison Schedule
Traffic Signals Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
171
Redlands Regular Meeting of 02-21-23 Page 442 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental - $ - $ 188,998 $ 188,998 $
Charges for services 205,000 400,000 387,421 (12,579)
Investment income (loss) 23,475 8,000 (97,255) (105,255) Total revenues 408,000 228,475 479,164 71,164
EXPENDITURES:

Current:

Highway and streets - - 39,793 (39,793)
Capital outlay 2,171,761 2,309,591 1,867,071 442,520
Total expenditures 2,309,591 2,171,761 1,906,864 402,727 Net change in fund balance $ (1,901,591) (1,943,286) $ (1,427,700) 473,891 $ FUND BALANCE:

Beginning of year 3,046,266
End of year $ 1,618,566
City of Redlands
Budgetary Comparison Schedule
Freeway Interchanges Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
172
Redlands Regular Meeting of 02-21-23 Page 443 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 24,300 $ 25,000 $ 27,123 $ 2,123 $ Total revenues 25,000 24,300 27,123 2,123
EXPENDITURES:

Current:

Highway and streets 21,578 20,865 17,269 3,596
Total expenditures 20,865 21,578 17,269 3,596
Net change in fund balance $ 4,135 2,722 $ 9,854 5,719 $ FUND BALANCE:

Beginning of year 22,247
End of year $ 32,101
City of Redlands
Budgetary Comparison Schedule
Street Lighting District #1 Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
173
Redlands Regular Meeting of 02-21-23 Page 444 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 465,000 $ 540,000 $ 543,254 $ 3,254 $ Investment income (loss) 4,000 1,000 (8,484) (9,484)
Miscellaneous - - 12,500 12,500
Total revenues 541,000 469,000 547,270 6,270
EXPENDITURES:

Current:

General government 390,732 396,574 417,608 (21,034)
Total expenditures 396,574 390,732 417,608 (21,034)
REVENUES OVER (UNDER) EXPENDITURES 144,426 78,268 129,662 (14,764) OTHER FINANCING SOURCES (USES):

Transfers out (40,000) (128,596) (105,435) 23,161
Total other financing sources (uses) (128,596) (40,000) (105,435) 23,161 Net change in fund balance $ 15,830 38,268 $ 24,227 8,397 $ FUND BALANCE:

Beginning of year 99,811
End of year $ 124,038
City of Redlands
Budgetary Comparison Schedule
CFD 2004-1 Assessment Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
174
Redlands Regular Meeting of 02-21-23 Page 445 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 29,000 $ 29,000 $ 6,852 $ (22,148) $ Total revenues 29,000 29,000 6,852 (22,148)
EXPENDITURES:

Current:

General government 60,798 60,261 55,535 4,726
Total expenditures 60,261 60,798 55,535 4,726
REVENUES OVER (UNDER) EXPENDITURES (31,261) (31,798) (48,683) (17,422) OTHER FINANCING SOURCES (USES):

Transfers in 31,798 31,260 48,683 17,423
Total other financing sources (uses) 31,260 31,798 48,683 17,423 Net change in fund balance $ (1) - $ - 1 $
FUND BALANCE:

Beginning of year -
End of year $ -
City of Redlands
Budgetary Comparison Schedule
Landscape Maintenance District Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
175
Redlands Regular Meeting of 02-21-23 Page 446 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Licenses and permits - $ - $ 711 $ 711 $
Investment income (loss) - 594 (6,350) (6,944)
Miscellaneous - 44,000 - (44,000)
Total revenues 44,594 - (5,639) (50,233)
EXPENDITURES:

Current:

Highway and streets 10,683 118,939 777 118,162
Total expenditures 118,939 10,683 777 118,162
Net change in fund balance $ (74,345) (10,683) $ (6,416) 67,929 $ FUND BALANCE:

Beginning of year 201,456
End of year $ 195,040
City of Redlands
Budgetary Comparison Schedule
Local Transportation Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
176
Redlands Regular Meeting of 02-21-23 Page 447 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) 56,095 $ - $ 69,152 $ 69,152 $ Miscellaneous - - 58,339 58,339
Total revenues - 56,095 127,491 127,491
EXPENDITURES:

Current:

Highway and streets 664,634 588,555 611,083 (22,528)
Capital outlay 9,480,716 9,828,724 4,599,736 5,228,988
Total expenditures 10,417,279 10,145,350 5,210,819 5,206,460 REVENUES OVER (UNDER) EXPENDITURES (10,417,279) (10,089,255) (5,083,328) 5,333,951 OTHER FINANCING SOURCES (USES):

Transfers in 5,615,405 5,726,173 2,003,591 (3,722,582)
Total other financing sources (uses) 5,726,173 5,615,405 2,003,591 (3,722,582) Net change in fund balance $ (4,691,106) (4,473,850) $ (3,079,737) 1,611,369 $ FUND BALANCE:

Beginning of year 5,271,332
End of year $ 2,191,595
City of Redlands
Budgetary Comparison Schedule
PARIS Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
177
Redlands Regular Meeting of 02-21-23 Page 448 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ - $ (331) $ (331) $
Total revenues - - (331) (331)
EXPENDITURES:

Current:

Culture and recreation - - 1,601 (1,601)
Total expenditures - - 1,601 (1,601)
Net change in fund balance $ - - $ (1,932) (1,932) $
FUND BALANCE:

Beginning of year 13,950
End of year $ 12,018
City of Redlands
Budgetary Comparison Schedule
Public Art Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
178
Redlands Regular Meeting of 02-21-23 Page 449 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental - $ 1,180,448 $ - $ (1,180,448) $
Total revenues 1,180,448 - - (1,180,448)
EXPENDITURES:

Current:

Highway and streets - (51,591) 6,545 (58,136)
Capital outlay - 1,224,724 - 1,224,724
Total expenditures 1,173,133 - 6,545 1,166,588
Net change in fund balance $ 7,315 - $ (6,545) (13,860) $ FUND BALANCE:

Beginning of year (7,221)
End of year $ (13,766)
City of Redlands
Budgetary Comparison Schedule
Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2022
Budgeted Amounts
179
Redlands Regular Meeting of 02-21-23 Page 450 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 165,000 $ 330,000 $ 306,559 $ (23,441) $ Investment income (loss) 15,561 7,500 (65,235) (72,735) Total revenues 337,500 180,561 241,324 (96,176)
EXPENDITURES:

Current:

General government 16,297 16,297 12,428 3,869
Capital outlay 900,000 - - -
Total expenditures 16,297 916,297 12,428 3,869
Net change in fund balance $ 321,203 (735,736) $ 228,896 (92,307) $ FUND BALANCE:

Beginning of year 2,177,049
End of year $ 2,405,945
City of Redlands
Budgetary Comparison Schedule
Storm Drain Capital Projects Fund
For the Year Ended June 30, 2022
Budgeted Amounts
180
Redlands Regular Meeting of 02-21-23 Page 451 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 30,000 $ 30,000 $ 58,870 $ 28,870 $
Investment income (loss) - 430 (5,949) (6,379)
Total revenues 30,430 30,000 52,921 22,491
EXPENDITURES:

Current:

General government 3,954 3,424 3,423 1
Debt service:

Principal 1,480,000 1,480,000 1,480,000 -
Interest and fiscal charges 331,692 331,692 331,692 -
Total expenditures 1,815,116 1,815,646 1,815,115 1
REVENUES OVER (UNDER) EXPENDITURES (1,784,686) (1,785,646) (1,762,194) 22,492 OTHER FINANCING SOURCES (USES):

Transfers in - - 1,907,565 1,907,565
Total other financing sources (uses) - - 1,907,565 1,907,565 Net change in fund balance $ (1,784,686) (1,785,646) $ 145,371 1,930,057 $ FUND BALANCE:

Beginning of year 1,674,012
End of year $ 1,819,383
City of Redlands
Budgetary Comparison Schedule
General Debt Service Fund
For the Year Ended June 30, 2022
Budgeted Amounts
181
Redlands Regular Meeting of 02-21-23 Page 452 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ 95 $ (1,022) $ (1,117) $
Total revenues 95 - (1,022) (1,117)
Net change in fund balance $ 95 - $ (1,022) (1,117) $
FUND BALANCE:

Beginning of year 38,117
End of year $ 37,095
City of Redlands
Budgetary Comparison Schedule
Simonds Endowment Permanent Fund
For the Year Ended June 30, 2022
Budgeted Amounts
182
Redlands Regular Meeting of 02-21-23 Page 453 of 786
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) - $ 56 $ (604) $ (660) $
Total revenues 56 - (604) (660)
Net change in fund balance $ 56 - $ (604) (660) $
FUND BALANCE:

Beginning of year 22,531
End of year $ 21,927
City of Redlands
Budgetary Comparison Schedule
Pauline Stancliff Memorial Trust Permanent Fund
For the Year Ended June 30, 2022
Budgeted Amounts
183
Redlands Regular Meeting of 02-21-23 Page 454 of 786
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184
Redlands Regular Meeting of 02-21-23 Page 455 of 786
Non-Major Enterprise Funds
Groves Fund - This fund is used to account for the farming operations of citrus groves owned by the City.

Non Potable Water Fund - This fund is used to account for non potable water utility operations, projects, debt service costs, and impact fees of the City.

Cemetery Fund - This fund is used to account for the operations of Hillside Memorial Park Cemetery.

Aviation Fund - This fund is used to account for the operations of the Redlands Municipal Airport. 185
Redlands Regular Meeting of 02-21-23 Page 456 of 786
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments $ 114,470 $ 4,008,828 $ 3,187,439 $ 309,993 $ 7,620,730 Accounts receivable, net 50,443 - 252,961 31,186 334,590 Taxes receivable - - - 272 272
Lease receivable - due within one year - - 27,031 107,084 134,115 Due from other governments - - - 1,490 1,490
Total current assets 114,470 4,059,271 3,467,431 450,025 8,091,197 Noncurrent assets:

Lease receivable - due in more than one year - - 47,666 722,591 770,257 Capital assets:

Non-depreciable 13,570,179 638,131 - 1,165,281 15,373,591 Depreciable, net 131,898 6,509 698,637 2,589,659 3,426,703 Total capital assets 13,702,077 6,509 1,336,768 3,754,940 18,800,294 Total noncurrent assets 13,702,077 6,509 1,384,434 4,477,531 19,570,551 Total assets 13,816,547 4,065,780 4,851,865 4,927,556 27,661,748

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB - 461,753 - 115,438 577,191
Related to pensions 3,779 6,016 53,825 19,014 82,634
Total deferred outflow of resources 3,779 6,016 515,578 134,452 659,825

LIABILITIES
Current liabilities:

Accounts payable 36,669 67,370 35,912 18,837 158,788
Accrued payroll 5,398 4,353 24,344 1,776 35,871
Interest payable - - 1,748 - 1,748
Deposits payable - 1,233,608 - 10,860 1,244,468
Unearned revenue - - 25,920 - 25,920
Compensated absences - due within one year 24 3 15,279 269 15,575 Long-term debt - due within one year - 6,819 40,771 - 47,590 Total current liabilities 48,889 71,747 1,351,662 57,662 1,529,960 Noncurrent liabilities:

Advances from other funds - - 748,561 779,471 1,528,032 Compensated absences - due in more than one year 3 24 15,279 269 15,575 Long term debt - due in more than one year - 19,000 90,161 - 109,161 Total OPEB liability - - 1,597,466 360,314 1,957,780
Net pension liability (2,214) (3,413) 138,760 67,031 200,164 Total noncurrent liabilities 16,789 (3,389) 2,590,227 1,207,085 3,810,712 Total liabilities 65,678 68,358 3,941,889 1,264,747 5,340,672

DEFERRED INFLOWS OF RESOURCES
Related to leases - 74,526 - 824,607 899,133
Related to OPEB - 25,041 - 6,260 31,301
Related to pensions 28,737 43,267 221,611 65,768 359,383 Total deferred inflows of resources 28,737 43,267 321,178 896,635 1,289,817

NET POSITION
Net investment in capital assets 13,676,258 6,509 1,205,836 3,754,940 18,643,543 Restricted - 298,288 110,741 - 409,029
Unrestricted (deficit) (248,635) 3,953,662 (212,201) (854,314) 2,638,512 Total net position $ 3,960,171 13,725,911 $ 1,104,376 $ 2,900,626 $ 21,691,084 $ City of Redlands
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2022
186
Redlands Regular Meeting of 02-21-23 Page 457 of 786
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
OPERATING REVENUES:

Charges for services 863,303 $ 641,340 $ 1,139,982 $ 135,480 $ 2,780,105 $ Miscellaneous operating revenue 10,581 - 314,193 238,090 562,864 Total operating revenues 641,340 873,884 1,454,175 373,570 3,342,969 OPERATING EXPENSES:

Salaries and benefits 158,575 75,772 454,759 130,808 819,914 General and administrative 822,565 464,966 315,622 284,605 1,887,758 Parts and supplies 36,825 380,798 90,010 27,016 534,649 Utilities 100,622 30,893 36,684 42,713 210,912
Depreciation/amortization 28,105 4,339 54,853 227,285 314,582 Total operating expenses 956,768 1,146,692 951,928 712,427 3,767,815 OPERATING INCOME (LOSS) (315,428) (272,808) 502,247 (338,857) (424,846) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) - (109,133) (68,619) 5,424 (172,328) Interest expense (187) - (6,515) (3,220) (9,922)
Property taxes - - - 73,337 73,337
Operating grants - - - 119,700 119,700
Total nonoperating revenues (expenses) (109,133) (187) (75,134) 195,241 10,787

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (272,995) (424,561) 427,113 (143,616) (414,059)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 72,506 - - 72,506 -
Transfers in 164,538 - - 164,538 -
Transfers out (53,262) - - (53,262) -
Total capital contributions and transfers 164,538 19,244 - 183,782 - Changes in net position (108,457) (405,317) 427,113 (143,616) (230,277) NET POSITION:

Beginning of year 13,834,368 4,365,488 677,263 3,044,242 21,921,361 End of year $ 13,725,911 $ 3,960,171 $ 1,104,376 $ 2,900,626 $ 21,691,084 City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the Year Ended June 30, 2022
187
Redlands Regular Meeting of 02-21-23 Page 458 of 786
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 1,098,534 $ 637,372 $ 1,136,620 $ 107,545 $ 2,980,071 $ Cash payments to suppliers for goods and services (1,071,676) (1,083,524) (493,882) (350,804) (2,999,886) Cash payments to employees for services (171,155) (90,806) (456,937) (136,333) (855,231) Receipts from other operating revenues 10,581 - 314,193 238,090 562,864 Net cash provided by (used in) operating activities (536,958) (133,716) 499,994 (141,502) (312,182)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Operating grants - - - 118,210 118,210
Property taxes - - - 73,487 73,487
Advances from other funds - - (149,325) (56,780) (206,105) Transfers from other funds 164,538 - - - 164,538
Transfers to other funds - (53,262) - - (53,262)
Net cash provided by (used in)
noncapital financing activities (53,262) 164,538 (149,325) 134,917 96,868

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Cash contributions received from developers - 72,506 - - 72,506 Principal payment of long-term debt (6,791) - (40,241) - (47,032) Interest paid on debt (187) - (6,836) (3,220) (10,243)
Net cash provided by (used in) capital and
related financing activities 72,506 (6,978) (47,077) (3,220) 15,231 CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) - (109,133) (68,619) 5,424 (172,328) Net cash provided by (used in) investing activities (109,133) - (68,619) 5,424 (172,328) Net change in cash and cash equivalents (626,847) 23,844 234,973 (4,381) (372,411) CASH AND CASH EQUIVALENTS:

Beginning of year 90,626 4,635,675 2,952,466 314,374 7,993,141 End of year 114,470 $ 4,008,828 $ 3,187,439 $ 309,993 $ 7,620,730 $ (Continued)
City of Redlands
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2022
188
Redlands Regular Meeting of 02-21-23 Page 459 of 786
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total

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

Operating income (loss) (272,808) $ (315,428) $ 502,247 $ (338,857) $ (424,846) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation 28,105 4,339 54,853 227,285 314,582
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 235,231 (3,968) (119,916) (31,186) 80,161 Lease receivable - - 26,929 77,466 104,395
Deferred outflows - OPEB related - - (293,265) (73,317) (366,582) Deferred outflows - pension related 1,243 1,976 10,224 2,819 16,262 Accounts payable (111,664) (206,867) (51,566) 3,530 (366,567) Accrued payroll (3,541) 71 (2,641) (4,610) (10,721)
Deposits payable - 116,725 - (5,060) 111,665
Unearned revenue - - 13,379 - 13,379
Compensated absences (1) (746) (4,475) (237) (5,459)
Total OPEB liability - - 380,375 95,094 475,469
Net pension liability (36,845) (58,538) (302,951) (83,534) (481,868) Deferred inflows - lease related - - (27,100) (82,534) (109,634) Deferred inflows - OPEB related - - (7,858) (1,964) (9,822) Deferred inflows - pension related 26,564 42,203 218,413 60,224 347,404 Total adjustments 139,092 (221,530) (2,253) 197,355 112,664 Net cash provided by operating activities $ (133,716) $ (536,958) $ 499,994 $ (141,502) $ (312,182) (Concluded)
For the Year Ended June 30, 2022
City of Redlands
Combining Statement of Cash Flows (Continued)
Non-Major Enterprise Funds
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Internal Service Funds
General Liability Self-Insurance Fund - This fund is used to account for the City’s self-insured general and automobile liability programs, which are provided to all City departments and funds.

Information Technology Fund - This fund is used to account for the general maintenance and service of all City computers and phone equipment provided to all City departments.

Workers' Compensation Self-Insurance Fund - This fund is used to account for the City’s self-insured Workers’ Compensation and General Safety Programs, which are provided to all City departments and funds.

Equipment Maintenance Fund - This fund is used to account for providing ongoing maintenance of all City vehicles and major equipment and to account for vehicle rental services to all City departments.

Utility Billing Fund - This fund is used to account for billing services costs provided for water, sewer, and solid waste.

Payroll Clearing Fund - This fund is used to account for the City’s reoccurring payroll obligations. 191
Redlands Regular Meeting of 02-21-23 Page 462 of 786
General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
ASSETS
Current assets:

Cash and investments $ 653,227 $ 3,409,639 $ 2,413,358 $ 4,358,271 Accounts receivable, net - - - 52,417
Prepaid items - - 60,994 6,665
Inventories - - - 93,140
Total current assets 653,227 3,409,639 2,474,352 4,510,493 Noncurrent assets:

Capital assets:

Depreciable, net - - 706,072 51,550
Total capital assets - - 706,072 51,550
Total noncurrent assets - - 706,072 51,550
Total assets 3,409,639 653,227 3,180,424 4,562,043

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 115,438 115,438 1,342,799 552,807
Related to pensions 44,838 55,766 218,117 148,041
Total deferred outflow of resources 171,204 160,276 1,560,916 700,848

LIABILITIES
Current liabilities:

Accounts payable 128,917 3,132 163,667 638,873
Accrued payroll 3,422 22,373 102,764 35,476
Compensated absences - due within one year 1,153 1,692 86,462 32,976 Claims payable - due within one year 1,297,754 6,085,812 - - Long-term debt - due within one year - - - 7,068
Total current liabilities 1,431,246 6,113,009 352,893 714,393 Noncurrent liabilities:

Compensated absences - due in more than one year 1,692 1,153 86,462 32,976 Claims payable - due in more than one year 6,085,812 1,297,753 - - Long term debt - due in more than one year - - - 11,270 Total OPEB liability 349,422 439,369 4,710,671 2,222,483 Net pension liability 169,472 235,197 717,467 664,885
Total noncurrent liabilities 1,973,472 6,606,398 5,514,600 2,931,614 Total liabilities 12,719,407 3,404,718 5,867,493 3,646,007

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 6,260 6,260 54,419 33,430
Related to pensions 48,601 172,222 729,153 338,326
Total deferred inflows of resources 178,482 54,861 783,572 371,756

NET POSITION
Investment in capital assets - - 706,072 51,550
Unrestricted (deficit) (2,646,076) (9,317,046) (2,615,797) 1,193,578 Total net position $ (9,317,046) (2,646,076) $ (1,909,725) $ 1,245,128 $ (Continued)
City of Redlands
Combining Statement of Net Position
All Internal Service Funds
June 30, 2022
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Redlands Regular Meeting of 02-21-23 Page 463 of 786
Utility Payroll
Billing Clearing
Fund Fund Total
ASSETS
Current assets:

Cash and investments $ 1,033,381 $ 129,068 $ 11,996,944 Accounts receivable, net - 3,548 55,965
Prepaid items 504,617 - 572,276
Inventories - - 93,140
Total current assets 1,036,929 633,685 12,718,325
Noncurrent assets:

Capital assets:

Depreciable, net - - 757,622
Total capital assets - - 757,622
Total noncurrent assets - - 757,622
Total assets 633,685 1,036,929 13,475,947

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 1,380,983 - 3,507,465
Related to pensions 179,820 - 646,582
Total deferred outflow of resources - 1,560,803 4,154,047

LIABILITIES
Current liabilities:

Accounts payable 25,697 101,343 1,061,629
Accrued payroll 52,030 459,441 675,506
Compensated absences - due within one year 79,659 - 201,942 Claims payable - due within one year - - 7,383,566
Long-term debt - due within one year - - 7,068
Total current liabilities 157,386 560,784 9,329,711
Noncurrent liabilities:

Compensated absences - due in more than one year - 79,658 201,941 Claims payable - due in more than one year - - 7,383,565 Long term debt - due in more than one year - - 11,270
Total OPEB liability - 4,490,862 12,212,807
Net pension liability - 750,435 2,537,456
Total noncurrent liabilities 5,320,955 - 22,347,039
Total liabilities 560,784 5,478,341 31,676,750

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 44,229 - 144,598
Related to pensions 460,171 - 1,748,473
Total deferred inflows of resources - 504,400 1,893,071

NET POSITION
Investment in capital assets - - 757,622
Unrestricted (deficit) (3,385,009) 72,901 (16,697,449)
Total net position $ 72,901 (3,385,009) $ (15,939,827) $ (Concluded)
City of Redlands
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2022
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Redlands Regular Meeting of 02-21-23 Page 464 of 786
General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
OPERATING REVENUES:

Charges for services $ 86 $ 2,740,974 $ 4,555,519 $ 6,380,057 Miscellaneous operating revenue 8,642 15,868 - 8,355
Total operating revenues 8,728 2,756,842 4,555,519 6,388,412 OPERATING EXPENSES:

Salaries and benefits 124,940 473,797 1,638,725 664,148 General and administrative 3,637,072 3,910,539 1,942,282 915,134 Parts and supplies - 6,074 212,246 4,405,467
Utilities - - 292,763 3,342
Depreciation/amortization - - 275,107 12,956
Total operating expenses 3,762,012 4,390,410 4,361,123 6,001,047 OPERATING INCOME (LOSS) (3,753,284) (1,633,568) 194,396 387,365 NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 87,216 (95,598) (66,137) (116,001) Interest expense - - - (111)
Total nonoperating revenues (expenses) 87,216 (95,598) (66,137) (116,112) INCOME (LOSS) BEFORE TRANSFERS (3,666,068) (1,729,166) 128,259 271,253 TRANSFERS:

Transfers in 3,666,404 - - -
Transfers out - - - -
Total transfers 3,666,404 - - -
Changes in net position 336 (1,729,166) 128,259 271,253 NET POSITION:

Beginning of year (2,646,412) (7,587,880) (2,037,984) 973,875 End of year $ (2,646,076) $ (9,317,046) $ (1,909,725) $ 1,245,128 (Continued)
City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2022
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Utility Payroll
Billing Clearing
Fund Fund Total
OPERATING REVENUES:

Charges for services $ 989,775 $ 1,907,565 $ 16,573,976 Miscellaneous operating revenue 48,961 - 81,826
Total operating revenues 1,038,736 1,907,565 16,655,802 OPERATING EXPENSES:

Salaries and benefits 987,807 - 3,889,417
General and administrative 700,684 11,105,711 -
Parts and supplies 42,742 - 4,666,529
Utilities 214 - 296,319
Depreciation/amortization - - 288,063
Total operating expenses 1,731,447 20,246,039 -
OPERATING INCOME (LOSS) (692,711) 1,907,565 (3,590,237) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) (26,481) - (217,001)
Interest expense - - (111)
Total nonoperating revenues (expenses) (26,481) - (217,112) INCOME (LOSS) BEFORE TRANSFERS (719,192) 1,907,565 (3,807,349) TRANSFERS:

Transfers in - - 3,666,404
Transfers out (1,907,565) - (1,907,565)
Total transfers (1,907,565) - 1,758,839
Changes in net position (719,192) (2,048,510) -
NET POSITION:

Beginning of year (2,665,817) 72,901 (13,891,317)
End of year $ (3,385,009) $ 72,901 $ (15,939,827)
(Concluded)
City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2022
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General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 86 $ 2,740,974 $ 4,555,519 $ 7,012,805 Cash payments to suppliers for goods and services (4,315,839) (1,620,184) (2,385,653) (5,045,627) Cash payments to employees for services (128,906) (518,998) (1,635,397) (684,272) Receipts from other operating activities 8,642 15,868 - 8,355 Net cash provided by (used in) operating activities (4,436,017) 617,660 534,469 1,291,261

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds 3,666,404 - - -
Transfers to other funds - - - -
Net cash provided by (used in)
noncapital financing activities 3,666,404 - - -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal payment of long-term debt - - - (7,040)
Interest paid on debt - - - (111)
Net cash (used in) capital and
related financing activities - - - (7,151)
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 87,216 (95,598) (66,137) (116,001) Net cash provided by (used in) investing activities 87,216 (95,598) (66,137) (116,001) Net change in cash and cash equivalents (682,397) 522,062 468,332 1,168,109 CASH AND CASH EQUIVALENTS:

Beginning of year 1,335,624 2,887,577 1,945,026 3,190,162 End of year $ 653,227 $ 3,409,639 $ 2,413,358 $ 4,358,271 (Continued)
City of Redlands
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2022
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General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund

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

Operating income (loss) (3,753,284) $ (1,633,568) $ 194,396 $ 387,365 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation - - 275,107 12,956
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net - - - 632,748
Prepaid items 182,219 - (60,994) (6,665)
Inventories - - - 757
Deferred outflows - OPEB related (73,317) (73,317) (879,795) (366,581) Deferred outflows -pension related 2,738 8,687 34,607 15,662 Accounts payable (1,023,157) (8,196) 122,632 284,224
Accrued payroll (2,648) 2,787 33,240 1,187
Compensated absences (1,229) (4,662) (16,127) (6,535)
Claims payable 162,171 2,304,625 - -
Total OPEB liability 95,094 95,094 1,141,124 475,468
Net pension liability (81,132) (257,396) (1,025,441) (464,087) Deferred inflows - OPEB related (1,964) (1,964) (23,573) (9,822) Deferred inflows - pension related 58,492 185,570 739,293 334,584 Total adjustments (682,733) 2,251,228 340,073 903,896
Net cash provided by (used in) operating activities $ 617,660 (4,436,017) $ 534,469 $ 1,291,261 $ (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
City of Redlands
Combining Statement of Cash Flows (Continued)
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Utility Payroll
Billing Clearing
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 990,460 $ 1,910,061 $ 17,209,905 Cash payments to suppliers for goods and services (725,800) (451,670) (14,544,773) Cash payments to employees for services (891,169) 24,165 (3,834,577) Receipts from other operating activities 48,961 - 81,826 Net cash provided by (used in) operating activities (577,548) 1,482,556 (1,087,619)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds - - 3,666,404
Transfers to other funds (1,907,565) - (1,907,565)
Net cash provided by (used in)
noncapital financing activities (1,907,565) - 1,758,839

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Principal payment of long-term debt - - (7,040)
Interest paid on debt - - (111)
Net cash (used in) capital and
related financing activities - - (7,151)
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) (26,481) - (217,001)
Net cash provided by (used in) investing activities (26,481) - (217,001) Net change in cash and cash equivalents (604,029) (425,009) 447,068 CASH AND CASH EQUIVALENTS:

Beginning of year 1,637,410 554,077 11,549,876
End of year $ 1,033,381 $ 129,068 $ 11,996,944
(Continued)
City of Redlands
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
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Utility Payroll
Billing Clearing
Fund Fund Total

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

Operating income (loss) (692,711) $ 1,907,565 $ (3,590,237) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation - - 288,063
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 685 2,496 635,929
Prepaid items - (504,617) (390,057)
Inventories - - 757
Deferred outflows - OPEB related (953,111) - (2,346,121) Deferred outflows -pension related 21,540 - 83,234
Accounts payable 17,840 52,947 (553,710)
Accrued payroll 5,349 24,165 64,080
Compensated absences (9,720) - (38,273)
Claims payable - - 2,466,796
Total OPEB liability 1,236,217 - 3,042,997
Net pension liability (638,240) - (2,466,296)
Deferred inflows - OPEB related (25,537) - (62,860)
Deferred inflows - pension related 460,140 - 1,778,079
Total adjustments 115,163 (425,009) 2,502,618
Net cash provided by (used in) operating activities $ 1,482,556 (577,548) $ (1,087,619) $ (Concluded)
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2022
City of Redlands
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STATISTICAL SECTION
(UNAUDITED)
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CONTENTS PAGE
1 Net Position by Component 204
2 Changes in Net Position 206
3 Fund Balances of Governmental Funds 210
4 Changes in Fund Balances of Governmental Funds 212
5 Assessed Value and Estimated Actual Value of Taxable Property 215 6 Assessed Value and Estimated Actual Value of Taxable Property by Major Type 216 7 Direct and Overlapping Property Tax Rates 218
8 Top Ten Principal Property Taxpayers 220
9 Property Tax Levies and Collections 221
10 Ratios of Outstanding Debt by Type 222
11 Ratios of General Bonded Debt Outstanding 224
12 Direct and Overlapping Governmental Activities Debt 225 13 Legal Debt Margin Information 226
14 Pledged Revenue Coverage 228
15 Demographic and Economic Statistics 229
16 Principal Employers 230
17 Full Time Equivalent City Government Employees by Function/Program 231 18 Operating Indicators by Function/Program 232
19 Capital Asset Statistics by Function/Program 235
Sources: Unless otherwise noted, the information in these schedules is derived from the City's annual comprehensive financial reports for the relevant year

CITY OF REDLANDS - STATISTICAL SECTION
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.

Revenue Capacity - These schedules contain information to help the reader assess the City of Ridgecrest's most significant local revenue source, the property tax.

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

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.

Financial Trends - These schedules contain trend information to help the reader understand how the City of Ridgecrest's financial performance and well being have changed over time.

This part of the City of Redlands's annual comprehensive 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.
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2022 2021 2020 2019 2018
Governmental activities
Net investment in capital assets, $ 537,558,597 $ 481,259,666 $ 473,042,917 $ 443,551,078 $ 655,044,577 Restricted 11,326,983 14,059,449 17,346,674 15,676,686 20,499,351 Unrestricted (114,273,699) (143,979,153) (154,157,129) (148,411,538) (148,371,437) Total governmental activities net position $ 434,611,881 $ 351,339,962 $ 336,232,462 $ 310,816,226 $ 527,172,491 Business type activities
Net investment in capital assets $ 183,665,229 $ 167,349,714 $ 165,453,760 $ 150,997,528 $ 150,228,905 Restricted 16,677,323 18,031,654 23,794,167 26,162,608 17,516,341 Unrestricted 20,522,584 25,405,456 10,901,482 6,544,230 117,617 Total business type activities net position $ 220,865,136 $ 210,786,824 $ 200,149,409 $ 183,704,366 $ 167,862,863 Primary government
Net investment in capital assets $ 721,223,826 $ 648,609,380 $ 638,496,677 $ 594,548,606 $ 805,273,482 Restricted 28,004,306 32,091,103 41,140,841 41,839,294 38,015,692 Unrestricted (93,751,115) (118,573,697) (143,255,647) (141,867,308) (148,253,820) Total primary government net position $ 655,477,017 $ 562,126,786 $ 536,381,871 $ 494,520,592 $ 695,035,354 NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.

It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided on page 20 in Management's Discussion and Analysis. (4) The significant variance in net position invested in capital assets for Governmental Activities is due to a large increase in the amount of right-of-way added in FY 2020 as well as a significant increase in the assigned value based on the City's revised valuation methodology. More information is available in Management's Discussion and Analysis.

Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
City of Redlands
Schedule 1
Net Position by Component
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2017 2016 2015 2014 2013
Governmental activities
Net investment in capital assets $ 642,109,428 $ 622,119,006 $ 625,683,667 $ 609,555,372 $ 594,654,756 Restricted 11,100,669 15,258,535 15,584,054 18,466,430 20,158,877 Unrestricted (93,361,330) (81,795,361) (81,181,952) (21,119,030) (26,982,114) Total governmental activities net position $ 559,848,767 555,582,180 560,085,769 606,902,772 587,831,519 Business type activities
Net investment in capital assets $ 149,771,777 $ 163,565,980 $ 154,904,203 $ 157,413,884 $ 146,926,486 Restricted 17,399,398 3,702,600 4,671,097 3,702,600 416,340 Unrestricted 12,757,392 13,253,120 22,953,122 41,100,249 52,104,617 Total business type activities net position $ 179,928,567 $ 180,521,700 $ 182,528,422 $ 202,216,733 $ 199,447,443 Primary government
Net investment in capital assets $ 791,881,205 $ 785,684,986 $ 780,587,870 $ 766,969,256 $ 741,581,242 Restricted 28,500,067 18,961,135 20,255,151 22,169,030 20,575,217 Unrestricted (80,603,938) (68,542,241) (58,228,830) 19,981,219 25,122,503 Total primary government net position $ 739,777,334 $ 736,103,880 $ 742,614,191 $ 809,119,505 $ 787,278,962 NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.

It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided on page 20 in Management's Discussion and Analysis. (4) The significant variance in net position invested in capital assets for Governmental Activities is due to a large increase in the amount of right-of-way added in FY 2020 as well as a significant increase in the assigned value based on the City's revised valuation methodology. More information is available in Management's Discussion and Analysis.

Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
City of Redlands
Schedule 1
Net Position by Component (Continued)
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2022 2021 20204 20193 20182
Expenses
Governmental activities:

General government $ 18,717,217 26,157,407 $ 16,211,056 $ 16,210,304 $ 12,394,000 $ Public protection 61,325,651 57,395,655 57,656,302 53,095,381 32,240,549 Culture and recreation 6,902,767 4,250,967 5,227,381 4,783,803 4,748,841 Highway and streets 9,754,750 11,057,940 4,060,779 10,183,231 12,854,490 Library 2,792,316 2,754,340 2,921,245 2,537,698 2,000,613 Interest and fiscal charges 738,561 888,750 994,894 683,446 834,297 Total governmental activities expenses 107,633,477 95,102,845 87,071,657 87,493,863 65,072,790 Business type activities:

Water 23,411,564 26,535,646 22,719,142 20,857,656 20,369,100 Disposal 15,026,409 15,637,376 15,194,462 16,162,875 12,877,703 Wastewater (Sewer) 12,077,904 11,764,304 11,242,914 9,926,236 8,851,848 Groves 1,146,879 991,602 845,498 849,678 788,554
Non-Potable Water 956,768 677,088 249,911 116,759 125,323 Cemetery 958,443 1,119,999 1,049,876 936,535 861,109
Aviation 715,647 582,770 637,012 617,285 466,972
Total business type activities expenses 57,715,063 53,887,336 51,938,815 49,467,024 44,340,609 Total primary government expenses $ 148,990,181 165,348,540 $ 139,010,472 $ 136,960,887 $ 109,413,399 $ Program Revenues
Governmental activities:

Charges for services:

General government $ 13,967,066 15,368,391 $ 11,482,417 $ 11,151,187 $ 10,811,937 $ Public safety 744,389 669,155 1,769,514 2,711,769 3,076,343 Culture and recreation 748,377 261,090 291,801 310,780 303,222 Highway and streets 355,465 350,025 2,311,254 2,322,468 1,895,996 Library 118,701 418,298 120,623 131,338 131,408
Operating grants and contributions 4,223,681 3,941,740 2,995,658 1,867,228 4,469,962 Capital grants and contributions 28,433,466 11,372,774 32,104,508 7,083,735 4,533,292 Total governmental activities program revenues 49,992,470 30,980,148 51,075,775 25,578,505 25,222,160 Business type activities:

Charges for services:

Water 31,217,602 30,131,495 28,014,723 28,053,989 27,030,979 Disposal 21,066,272 19,009,933 18,566,965 17,159,911 15,110,821 Wastewater (Sewer) 10,124,426 11,998,633 10,154,451 10,229,449 9,611,197 Groves 863,303 684,782 481,632 930,738 741,397
Non-Potable Water 641,340 629,395 484,262 528,296 638,313 Cemetery 1,258,104 1,139,982 926,398 555,256 745,347
Aviation 135,480 125,857 133,262 120,087 127,233
Operating grants and contributions 631,695 20,125 55,371 56,555 - Capital grants and contributions 6,134,627 2,840,765 6,800,041 5,450,817 347,871 Total business type activities program revenues 72,742,827 65,910,989 65,617,105 63,085,098 54,353,158 Total primary government program revenues $ 96,891,137 122,735,297 $ 116,692,880 $ 88,663,603 $ 79,575,318 $ Net (Expense)/Revenue
Governmental activities (57,641,007) (64,122,697) (35,995,882) (61,915,358) (39,850,630) Business type activities 15,027,764 12,023,653 13,678,290 13,618,074 10,012,549 Total primary government net expense $ (42,613,243) $ (52,099,044) $ (22,317,592) $ (48,297,284) $ (29,838,081) City of Redlands
Schedule 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
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2017 2016 20151 2014 2013
Expenses
Governmental activities:

General government $ 16,235,478 14,391,456 $ 10,229,535 $ 10,423,298 $ 9,883,877 $ Public protection 43,263,363 42,097,211 40,920,668 40,235,772 40,027,122 Culture and recreation 4,086,880 3,542,242 3,554,720 3,041,620 2,997,558 Highway and streets 11,271,259 15,594,075 12,043,276 4,002,946 6,839,184 Library 2,023,972 2,304,552 1,929,752 1,913,756 1,968,343 Interest and fiscal charges 936,132 1,123,871 1,297,837 1,447,056 1,589,928 Total governmental activities expenses 76,253,642 80,616,849 69,975,788 61,064,448 63,306,012 Business type activities:

Water 21,635,151 20,514,340 19,556,198 19,437,970 20,139,662 Disposal 12,172,640 12,274,583 12,201,957 11,131,004 10,313,939 Wastewater (Sewer) 8,956,871 8,979,254 8,030,897 8,505,197 8,080,035 Groves 742,740 841,529 689,839 630,488 12,006,971
Non-Potable Water 434,912 81,152 73,383 81,897 197,393
Cemetery 1,304,891 75,761 681,223 493,616 555,402
Aviation 785,348 609,088 333,061 421,012 317,970
Total business type activities expenses 43,806,938 45,601,322 41,566,558 40,701,184 51,611,372 Total primary government expenses $ 126,218,171 120,060,580 $ 111,542,346 $ 101,765,632 $ 114,917,384 $ Program Revenues
Governmental activities:

Charges for services:

General government $ 9,270,657 10,144,231 $ 10,625,356 $ 10,286,376 $ 9,181,388 $ Public safety 2,696,810 3,403,559 1,975,667 1,916,750 1,407,921 Culture and recreation 719,642 286,315 295,199 296,386 343,620 Highway and streets 1,361,187 1,205,141 1,681,146 1,716,965 1,169,364 Library 125,052 33,098 33,270 35,200 34,312
Operating grants and contributions 2,911,259 5,596,864 8,607,394 7,195,092 4,032,286 Capital grants and contributions 2,257,370 1,346,021 4,666,849 2,117,482 987,916 Total governmental activities program revenues 20,215,551 21,141,655 27,884,881 23,564,251 17,156,807 Business type activities:

Program revenues:

Water 18,873,106 22,479,655 22,217,588 23,453,512 22,350,078 Disposal 13,657,953 13,504,267 12,887,067 11,623,769 10,669,471 Wastewater (Sewer) 9,531,484 9,340,274 9,688,884 9,576,740 9,092,431 Groves 700,334 507,914 798,577 740,707 471,150
Non-Potable Water 83,905 508,556 499,211 554,914 513,722 Cemetery 514,015 461,997 349,472 371,968 341,950
Aviation 575,846 15,214 16,472 16,704 18,592
- 180,000 - 180,000 24,285
Airport 816,777 392,189 4,593,429 3,433,586 2,233,877
Total business type activities program revenues 48,168,759 43,794,727 51,230,700 49,951,900 45,715,556 Total primary government program revenues $ 64,936,382 68,384,310 $ 79,115,581 $ 73,516,151 $ 62,872,363 $ Net (Expense)/Revenue
Governmental activities (56,038,091) (59,475,194) (42,090,907) (37,500,197) (46,149,205) Business type activities 4,361,821 (1,806,595) 9,664,142 9,250,716 (5,895,816) Total primary government net expense $ (51,676,270) $ (61,281,789) $ (32,426,765) $ (28,249,481) $ (52,045,021) City of Redlands
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
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2022 2021 20204 20193 20182
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 37,769,495 $ 35,722,886 $ 33,743,135 $ 31,833,632 $ 30,067,473 Sales and taxes 48,232,171 26,541,469 17,510,274 18,838,445 17,177,492 Franchises taxes 2,625,852 2,379,571 2,369,348 2,221,789 3,224,053 Other taxes 2,706,919 2,462,019 2,031,015 2,061,674 1,907,344 Investment income (loss) (1,546,892) 282,836 1,869,008 2,421,036 206,304 Intergovernmental (unrestricted) 1,308,520 1,455,573 167,157 187,586 195,866 Miscellaneous revenue 1,689,391 3,064,706 1,865,686 1,498,562 1,689,135 Gain on sale of capital assets - - - - -
Transfers 48,127,470 3,660,469 1,856,495 2,943,934 8,243,110 Total governmental activities 140,912,926 75,569,529 61,412,118 62,006,658 62,710,777 Business type activities:

Property taxes 73,337 79,616 81,098 85,928 66,263
Investment income (loss) (2,746,746) 557,392 3,214,540 3,310,733 509,882 Miscellaneous revenue 1,208,057 1,637,223 1,327,610 1,770,702 2,457,912 Gain on sale of capital assets 44,643,370 - - - -
Extraordinary gain - - - - -
Transfers (48,127,470) (3,660,469) (1,856,495) (2,943,934) (8,243,110) Total business type activities (4,949,452) (1,386,238) 2,766,753 2,223,429 (5,209,053) Total primary government $ 74,183,291 135,963,474 $ 64,178,871 $ 64,230,087 $ 57,501,724 $ Change in Net Position
Governmental activities 83,271,919 $ 11,446,832 $ 25,416,236 $ 91,300 $ 22,860,147 $ Business type activities 10,078,312 10,637,415 16,445,043 15,841,503 4,803,496 Total primary government $ 22,084,247 93,350,231 $ 41,861,279 $ 15,932,803 $ 27,663,643 $ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.

It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided on page 20 in Management's Discussion and Analysis. (4) The significant variance in the change in net position for Governmental Activities is due to a large decrease in the prior year 'to account for a revised right-of-way valuation methodology that had an adverse affect on net position, followed by a significant 'increase in right-of-way value added in FY 2020. More information is available in Management's Discussion and Analysis.

City of Redlands
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
208
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2017 2016 20151 2014 2013
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes $ 28,173,741 $ 26,424,395 $ 25,157,824 $ 24,650,592 $ 23,536,133 Sales and taxes 16,843,090 18,344,596 16,040,049 15,219,210 15,049,517 Franchises taxes 3,035,317 3,079,571 3,735,682 3,235,114 2,853,021 Other taxes 1,977,985 1,792,527 1,681,618 1,473,576 1,313,022 Investment income (loss) 212,991 800,889 467,427 517,169 58,972 Intergovernmental (unrestricted) 196,602 234,787 424,385 165,974 153,836 Miscellaneous revenue 7,331,734 1,105,258 1,035,134 689,160 2,496,060 Gain on sale of capital assets - - - 151,116 -
Transfers 2,500,914 4,486,199 16,113,690 10,654,350 5,841,908 Total governmental activities 60,272,374 56,268,222 64,655,809 56,605,145 51,453,585 Business type activities:

Property taxes 40,199 38,109 35,225 34,597 41,673
Investment income (loss) 500,783 1,335,997 921,859 1,053,356 185,475 Miscellaneous revenue 4,627,943 2,911,966 1,152,177 1,032,469 3,686,367 Gain on sale of capital assets - - 4,840 28,334 9,736,268 Extraordinary gain - - 2,024,168 - -
Transfers (2,500,914) (4,486,199) (16,113,690) (10,654,350) (5,841,908) Total business type activities 2,668,011 (200,127) (13,999,589) (6,481,426) 7,807,875 Total primary government $ 56,068,095 62,940,385 $ 50,656,220 $ 50,123,719 $ 59,261,460 $ Change in Net Position
Governmental activities 4,234,283 $ (3,206,972) $ 22,564,902 $ 19,104,948 $ 5,304,380 $ Business type activities 7,029,832 (2,006,722) (4,335,447) 2,769,290 1,912,059 Total primary government $ (5,213,694) 11,264,115 $ 18,229,455 $ 21,874,238 $ 7,216,439 $ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.

The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.

It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided on page 20 in Management's Discussion and Analysis. (4) The significant variance in the change in net position for Governmental Activities is due to a large decrease in the prior year 'to account for a revised right-of-way valuation methodology that had an adverse affect on net position, followed by a significant 'increase in right-of-way value added in FY 2020. More information is available in Management's Discussion and Analysis.

City of Redlands
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
209
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2022 2021 2020 2019 2018
General fund
Nonspendable $ 8,369,652 $ 8,327,781 $ 8,469,766 $ 8,707,654 $ 8,734,646 Restricted 1,157,866 1,076,656 1,058,540 1,104,848 1,057,918 Committed 12,663,905 11,863,318 8,285,676 8,285,676 8,285,676 Assigned 31,734,961 4,188,185 3,901,788 3,894,566 4,063,636 Unassigned 39,513,840 29,877,229 19,000,734 17,654,773 13,592,754 Total general fund 93,440,224 55,333,169 40,716,504 39,647,517 35,734,630 All other governmental funds
Nonspendable 43,400 30,200 104,242 123,682 123,661
Restricted 9,980,754 13,024,622 16,266,437 14,541,638 19,321,372 Committed 11,409,016 10,748,915 11,048,266 9,738,292 8,441,919 Assigned 2,560,682 2,742,004 1,463,122 1,480,036 1,204,854 Unassigned (6,610,754) (7,558,978) (7,740,144) (8,548,572) (8,761,721) Total all other governmental fund 17,383,098 18,986,763 21,141,923 17,335,076 20,330,085 TOTAL FUND BALANCES $ 110,823,322 $ 74,319,932 $ 61,858,427 $ 56,982,593 $ 56,064,715 (1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015. (2) The City passed a one-cent sales tax which added significant revenue over budget forecasts, additionally $7.1 million in unspent appropriations were carried over to the following fiscal year. Lastly the City implemented GASB 84 to recognize special deposits from another fund in the General Fund as committed fund balance.

Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 3
Fund Balances of Governmental Funds
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2017 2016 20151 2014 2013
General fund
Nonspendable $ 8,517,994 $ 8,324,472 $ 7,481,159 $ 7,857,633 $ 7,717,839 Restricted - - - - -
Committed 8,122,332 8,122,332 7,935,152 7,903,654 7,644,141 Assigned 2,130,916 2,267,840 1,883,794 - -
Unassigned 13,927,733 13,454,147 14,510,450 12,586,391 10,116,118 Total general fund 32,698,975 32,168,791 31,810,555 28,347,678 25,478,098 All other governmental funds
Nonspendable 2,539,567 327,340 - 384,873 384,997
Restricted 9,563,703 15,258,535 15,584,054 18,365,510 20,058,201 Committed 8,013,248 7,212,199 6,698,593 6,816,041 5,921,050 Assigned 3,419,978 - - - -
Unassigned (10,470,797) (9,553,680) (7,849,278) (8,787,268) (8,801,461) Total all other governmental fund 13,065,699 12,917,054 14,760,709 16,779,156 17,562,787 TOTAL FUND BALANCES $ 45,764,674 $ 45,085,845 $ 46,571,264 $ 45,126,834 $ 43,040,885 (1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015. (2) The City passed a one-cent sales tax which added significant revenue over budget forecasts, additionally $7.1 million in unspent appropriations were carried over to the following fiscal year. Lastly the City implemented GASB 84 to recognize special deposits from another fund in the General Fund as committed fund balance.

Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 3
Fund Balances of Governmental Funds (Continued)
211
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2022 20212 2020 2019 2018
Revenues
Taxes $ 92,468,816 $ 68,307,527 $ 57,080,368 $ 56,188,843 $ 53,608,771 Licenses and permits 8,122,570 7,579,479 9,786,703 9,363,446 8,249,522 Intergovernmental 8,748,788 7,520,076 5,052,310 4,290,382 4,029,164 Charges for services 15,275,610 9,853,495 9,659,518 9,912,278 8,100,020 Use of money and property 248,353 (3,135,140) 1,659,740 1,823,854 185,610 Other miscellaneous 1,577,070 1,712,985 2,846,580 1,930,916 4,866,979 Total revenues 123,057,714 95,221,915 86,085,219 83,509,719 79,040,066 Expenditures
Current:

General government 16,897,961 23,345,899 14,842,765 14,702,684 12,830,680 Public safety 50,208,365 50,048,806 48,554,670 45,514,084 45,246,205 Culture and recreation 5,346,330 3,154,163 3,244,432 3,286,739 2,870,721 Highway and streets 4,491,032 4,657,068 6,998,840 6,565,573 7,033,817 Library 2,426,448 2,601,164 2,464,463 2,158,580 1,989,717 Other pass-through payments - - - - -
Capital outlay 47,887,675 11,067,756 4,819,364 10,307,277 6,132,826 Debt service:

Principal 2,061,323 1,708,629 1,477,188 2,688,630 3,043,767 Interest and fiscal charges 612,391 488,363 548,472 665,241 812,002 Total expenditures 136,394,620 90,608,753 82,950,194 85,888,808 79,959,735 Excess of revenues over (under) expenditures (13,336,906) 4,613,162 3,135,025 (2,379,089) (919,669) Other financing sources (uses)
Proceeds from sale of property 1,425,889 - 89,657 252,613 1,975,203 Inception of finance purchase agreement 362,413 3,275,547 - - - Inception of lease payable 196,119 - - - -
Contributions to other governments - - - - -
Transfers in 14,158,728 69,860,227 12,557,880 16,569,439 19,326,814 Transfers out (23,491,596) (11,759,357) (10,906,728) (13,525,085) (9,788,204) Total other financing sources (uses) 49,840,297 4,187,673 1,740,809 3,296,967 11,513,813 Extraordinary items
Dissolution of Redevelopment Agency - - - - -
Total extraordinary items 49,840,297 4,187,673 1,740,809 3,296,967 11,513,813 Net change in fund balances $ 36,503,391 $ 8,800,835 $ 4,875,834 $ 917,878 $ 10,594,144 Restatements $ 3,660,669 - $ $ - $ - $ -
Debt service as a percentage of non-capital
expenditures 1 3.0% 2.8% 2.6% 4.4% 5.2%
NOTE:
1 Calculated by dividing the sum of principal and interest by noncapital expenditures which are total expenditures less a) capital outlay (to extent capitalized for the government-wide statements of net position; and b) expenditures for capitalized assets contained within the functional expenditure categories. 2 The City's tax revenue was bolstered by the passage of a new one-cent local sales tax and a favorable tax reallocation from its Amazon fulfillment center.

Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds
212
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2017 2016 2015 2014 2013
Revenues
Taxes $ 51,196,332 $ 49,641,089 $ 46,615,173 $ 44,578,492 $ 42,751,693 Licenses and permits 8,482,996 7,321,567 11,582,473 8,668,245 6,090,892 Intergovernmental 4,266,267 3,637,854 5,602,252 6,305,374 4,455,718 Charges for services 7,484,890 7,469,738 7,283,095 7,186,570 6,711,043 Use of money and property 191,541 717,504 431,301 491,377 52,596 Other miscellaneous 3,958,621 3,785,796 1,900,979 1,472,348 2,974,531 Total revenues 75,580,647 72,573,548 73,415,273 68,702,406 63,036,473 Expenditures
Current:

General government 12,915,590 12,351,772 11,041,353 10,562,420 4,844,346 Public safety 40,337,356 42,755,811 37,891,668 37,633,605 12,829,516 Culture and recreation 2,611,210 2,481,223 2,791,661 2,631,892 473,128 Highway and streets 5,695,084 5,034,090 6,107,137 5,913,207 2,673,089 Library 1,909,442 1,942,607 1,824,593 1,762,608 2,724,788 Other pass-through payments - - - 5,044,076 -
Capital outlay 15,476,158 11,481,823 23,146,625 13,431,527 6,931,137 Debt service:

Principal 3,115,653 3,947,223 3,701,474 3,948,940 439,424 Interest and fiscal charges 976,711 1,158,384 1,343,002 1,489,466 291,385 Total expenditures 84,925,006 79,265,131 87,847,513 77,373,665 36,250,889 Excess of revenues over (under) expenditures (9,344,359) (6,691,583) (14,432,240) (8,671,259) 26,785,584 Other financing sources (uses)
Proceeds from sale of property 311,189 6,272,810 16,083 185,625 350 Inception of finance purchase agreement - - - - -
Inception of lease payable - - - - -
Contributions to other governments - (100,919) - - -
Transfers in 15,911,839 15,430,085 29,941,931 20,792,923 18,682,589 Transfers out (11,558,209) (9,720,247) (13,980,425) (10,187,645) (11,307,814) Total other financing sources (uses) 10,144,686 6,502,781 15,876,670 10,790,903 7,375,125 Dissolution of Redevelopment Agency - - - - -
Total other financing sources (uses) 10,144,686 6,502,781 15,876,670 10,790,903 7,375,125 Net change in fund balances $ 800,327 $ (188,802) $ 1,444,430 $ 2,119,644 $ 34,160,709 Restatements $ - $ - $ (33,695) - $ $ 8,587
Debt service as a percentage of non-capital
expenditures 1 5.9% 7.5% 8.1% 9.5% 2.5%
1 Calculated by dividing the sum of principal and interest by noncapital expenditures which are total expenditures less a) capital outlay (to extent capitalized for the government-wide statements of net position; and b) expenditures for capitalized assets contained within the functional expenditure categories.

Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds (Continued) 213
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214
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Fiscal Year Taxable Taxable Total
Ended Less: Assessed Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Value Rate
2022 11,148,507 342,259 (72,875) 11,417,891 11,417,891 0.21869 2021 10,700,129 358,630 (73,396) 10,985,363 10,985,363 0.21864 2020 10,187,750 361,653 (74,204) 10,475,199 10,475,199 0.21874 2019 9,564,308 387,527 (74,744) 9,877,091 9,877,091 0.21877 2018 9,090,915 328,121 (76,265) 9,342,771 9,342,771 0.21877 2017 8,616,414 309,224 (76,808) 8,848,830 8,848,830 0.21877 2016 8,112,897 337,359 (74,030) 8,376,226 8,376,226 0.21877 2015 7,725,648 316,364 (75,033) 7,966,979 7,966,979 0.21913 2014 7,311,929 313,408 (76,552) 7,548,785 7,548,785 0.22927 2013 7,127,034 301,158 (78,056) 7,350,136 7,350,136 0.28450 NOTE:

Source: San Bernardino County Assessor (via HdL, Coren & Cone) California Municipal Statistics, Inc.

San Bernardino County Auditor-Controller - Property Tax Division With the approval of ABX1 26, the State eliminated Redevelopment from the State of California for the Fiscal Year 2012/13 and years thereafter.

In 1978, the voters of the State of California passed Proposition 13, which limited property taxes to a total minimum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available, with respect to the actual market value of taxable property, and is subject to the limitations described above.

Last Ten Fiscal Years
Assessed Value and Estimated Actual Value of Taxable Property City of Redlands
Schedule 5
215
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CATEGORY 2022 2021 2020 2019 2018
Residential 7,407,486 7,072,365 6,708,893 6,246,593 5,935,215 Commercial 1,299,726 1,253,237 1,176,203 1,085,468 1,040,344 Industrial 1,361,167 1,326,479 1,253,275 1,201,011 1,160,879 Government 15,553 2,883 576 548 522
Institutional 21,841 20,405 18,506 18,463 17,188
Irrigated 25,897 27,275 28,199 26,136 26,471
Miscellaneous 36,104 37,025 33,513 39,302 27,016
Recreational 55,431 51,028 50,098 49,887 49,678
Vacant Land 270,853 222,964 232,018 199,973 200,329
SBE Nonunitary 654,449 686,469 686,469 696,927 633,273
Unsecured 360,182 358,629 361,653 387,527 328,121
Unknown - - - - -
Total Assessed Value 11,508,689 11,058,759 10,549,403 9,951,835 9,419,036 Less: Exemptions (72,875) (73,396) (74,204) (74,744) (76,265) Taxable Assessed Value 11,435,814 10,985,363 10,475,199 9,877,091 9,342,771 Total Direct Rate 0.21869 0.21864 0.21874 0.21877 0.21877 NOTES:

Source: San Bernardino County Assessor (via HdL, Coren & Cone) City of Redlands
Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Fiscal Years
In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. * Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Exempt values are not included in Total
Source: HdL Coren Cone 216
Redlands Regular Meeting of 02-21-23 Page 487 of 786
CATEGORY 2017 2016 2015 2014* 2013
Residential 5,643,230 5,355,614 5,102,276 4,781,493 4,603,792 Commercial 988,145 959,063 941,128 920,337 919,179
Industrial 1,035,053 790,087 774,960 675,107 641,987
Government 513 505 1,478 498 488
Institutional 16,293 16,172 15,809 15,906 14,083
Irrigated 26,750 26,691 30,844 41,179 27,292
Miscellaneous 26,495 23,785 22,390 20,217 19,068
Recreational 32,808 32,520 31,962 31,852 34,762
Vacant Land 209,375 277,305 231,763 234,071 249,220
SBE Nonunitary 637,752 631,155 573,038 591,269 610,154
Unsecured 309,224 337,359 316,364 313,408 301,158
Unknown - - - - 7,009
Total Assessed Value 8,925,638 8,450,256 8,042,012 7,625,337 7,428,192 Less: Exemptions (76,808) (74,030) (75,033) (76,552) (78,056) Taxable Assessed Value 8,848,830 8,376,226 7,966,979 7,548,785 7,350,136 Total Direct Rate 0.21877 0.21877 0.21913 0.22927 0.28450 City of Redlands
Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property by Major Type (Continued) Last Ten Fiscal Years
Fiscal Years
Source: HdL Coren Cone 217
Redlands Regular Meeting of 02-21-23 Page 488 of 786
2022 2021 2020 2019 2018
City Share of Basic Levy (1) 0.21878 0.21878 0.21878 0.21878 0.21878 Overlapping Rates: (2)
County General Fund 0.14600 0.14600 0.14600 0.14600 0.14600 County Superintendent 0.00740 0.00740 0.00750 0.00750 0.00750 Inland Empire Joint Resource Conservation District 0.00050 0.00050 0.00050 0.00050 0.00050 Educational Revenue Augmentation Fund 0.22110 0.22110 0.22110 0.22110 0.22110 Flood Control Zone 3 0.02560 0.02560 0.02560 0.02560 0.02560 Flood Control Zone 8 0.00088 0.00088 0.00088 0.00088 0.00088 Redlands Unified 0.30160 0.30160 0.30160 0.30160 0.30160 San Bernardino Community College 0.05130 0.05130 0.05130 0.05130 0.05130 San Bernardino Valley Municipal Water 0.02640 0.02640 0.02630 0.02630 0.02630 San Bernardino Valley Water Conservation District 0.00044 0.00044 0.00044 0.00044 0.00044 Total Proposition 13 Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Redlands Debt Service - - - - -
Redlands Unified 0.03600 0.03600 0.03390 0.03240 0.04940 San Bernardino Community College 0.06510 0.06510 0.05620 0.04070 0.03760 San Bernardino Unified 0.10340 0.10340 0.09690 0.11260 0.10070 San Bernardino Valley Municipal Water 0.14250 0.14250 0.14250 0.15250 0.15250 Total Voter Approved Rate 0.34700 0.34700 0.32950 0.33820 0.34020 Total Direct and Overlapping Rate 1.34700 1.34700 1.32950 1.33820 1.34020 City Share of 1% Levy Per Prop 13 (3) 0.21878 0.21878 0.21878 0.21878 0.21878 Redlands Debt Service - - - - -
City Direct Rate (4) 0.21869 0.21864 0.21874 0.21877 0.21877 NOTES:

Source: San Bernardino County Assessor (via HdL, Coren & Cone) (4) Because basic and debt rates vary by tax rate area, individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.

City of Redlands
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(1) In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various voter approved items.

Schedule 7
Fiscal Year
Source: HdL Coren Cone 218
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2017 2016 2015 2014 2013
City Share of Basic Levy (1) 0.21878 0.21878 0.21878 0.21878 0.21878 Overlapping Rates: (2)
County General Fund 0.14600 0.14600 0.14600 0.14600 0.14600 County Superintendent 0.00750 0.00750 0.00750 0.00750 0.00750 Inland Empire Joint Resource Conservation District 0.00050 0.00050 0.00050 0.00050 0.00050 Educational Revenue Augmentation Fund 0.22110 0.22110 0.22110 0.22110 0.22110 Flood Control Zone 3 0.02560 0.02560 0.02560 0.02560 0.02560 Flood Control Zone 8 0.00088 0.00088 0.00088 0.00088 0.00088 Redlands Unified 0.30160 0.30160 0.30160 0.30160 0.30160 San Bernardino Community College 0.05130 0.05130 0.05130 0.05130 0.05130 San Bernardino Valley Municipal Water 0.02630 0.02630 0.02630 0.02630 0.02630 San Bernardino Valley Water Conservation District 0.00044 0.00044 0.00044 0.00044 0.00044 Total Proposition 13 Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Redlands Debt Service - - 0.01050 - 0.01090
Redlands Unified 0.05240 0.05670 0.05940 0.06290 0.06410 San Bernardino Community College 0.03500 0.04030 0.03930 0.04190 0.04590 San Bernardino Unified 0.07950 0.11820 0.10810 0.13500 0.09980 San Bernardino Valley Municipal Water 0.16250 0.16250 0.16250 0.16250 0.16250 Total Voter Approved Rate 0.32940 0.37770 0.36930 0.41280 0.38320 Total Direct and Overlapping Rate 1.32940 1.37770 1.36930 1.41280 1.38320 City Share of 1% Levy Per Prop 13 (3) 0.21878 0.21878 0.21878 0.21878 0.21878 Redlands Debt Service - - 0.01050 - 0.01090
City Direct Rate (4) 0.21877 0.21877 0.21913 0.22927 0.28450 NOTES:

Source: San Bernardino County Assessor (via HdL, Coren & Cone) Fiscal Year
(1) In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various voter approved items.

Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates (Continued)
City of Redlands
Schedule 7
(4) Because basic and debt rates vary by tax rate area, individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Source: HdL Coren Cone 219
Redlands Regular Meeting of 02-21-23 Page 490 of 786
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Southern California Edison Company $ 684,337 6.23% $ 628,809 8.72% PVT Apartments SPE LLC 133,212 1.21% 37,116 0.51%
Ashley Furniture Industries 112,716 1.03% 0.00% -
NYS New LLC 104,353 0.95% 60,338 0.84%
Prologis LP 95,450 0.87% 82,640 1.15%
AMB Institutional Alliance Fund III 91,845 0.84% 57,000 0.79% -
BRE California Redlands LLC 87,819 0.80% 0.00% -
Teachers Insurance and Annuity Assoc** 86,914 0.79% 0.00% - -
BCI-OEF Redlands DC LP 67,104 0.61% 0.00% -
-
2301 W. San Bernardino Ave Invest Group 61,944 0.56% 52,877 0.73% -
Redlands Business Center LLC 46,977 0.65%
NP Redlands LLC 35,096 0.49%
Environmental Systems Research Institute 34,274 0.48%
MSWP Redlands LLC 31,716 0.44%
PACGWL LLC 0.00%
Top Ten Total $ 1,525,694 13.89% $ 1,066,843 14.79%
City Total Net Taxable Assessed Value $ 10,985,363 $ 7,214,180 * Formerly known as Prologis-A4 CA IILP
** Pending appeals on parcels
Source: San Bernardino County Assessor (via HdL, Coren & Cone) Fiscal Year 2022 and Ten Years Prior
2022 2013
City of Redlands
Schedule 8
Top Ten Principal Property Taxpayers
(in Thousands)
Source: HdL Coren Cone 220
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Fiscal Taxes Levied Subsequent Years
Year Ended for the Percent Collections Percent
June 30 Fiscal Year Amount of Levy of Prior Years Amount of Levy 2022 $ 49,661,097 $ 49,517,080 99.71% $ 691,484 $ 50,208,564 101.10% 2021 46,298,808 46,048,794 99.46% 615,108 46,663,902 100.79% 2020 42,472,462 42,173,456 99.30% 524,343 42,697,799 100.53% 2019 41,184,840 40,950,087 99.43% 571,918 41,522,005 100.82% 2018 35,648,742 35,417,025 99.35% 585,973 36,002,998 100.99% 2017 33,814,971 33,547,833 99.21% 561,371 34,109,204 100.87% 2016 31,245,233 31,220,237 99.92% 593,784 31,814,021 101.82% 2015 30,236,660 30,224,565 99.96% 618,909 30,843,474 102.01% 2014 29,697,798 29,620,584 99.74% 834,306 30,454,890 102.55% 2013 29,365,178 28,237,555 96.16% 725,114 28,962,669 98.63% NOTE:

Source: City of Redlands, San Bernardino County Auditor-Controller/Treasurer/Tax Collector City of Redlands
2 Subsequent Years Collections of Prior Years may include delinquent tax payments from multiple prior years which are not identified separately by the County of San Bernardino. Any tax system changes required to identify and track this information would have to be developed in the County’s tax system and subsequently included in reports provided to the City. At this time it is not known when or if the County will make such a change.
1 The amounts presented include City property taxes and Redevelopment Agency tax increment, as well as amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. The State dissolved the redevelopment agency effective in 2012.

This resulted in the City having to issue a refund of increment received that the County deemed as excess.

Last Ten Fiscal Years
Property Tax Levies and Collections 1
Fiscal Year of Levy2
Collected within the
Total Collections to Date2
Schedule 9
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Fiscal Year General Taxable Tax Notes / Total
Ended Obligation Pension Allocation Certificates of Leases Governmental June 30 Bonds Bonds Bonds Participation Payable Activities 2022 $ 6,172,956 $ - $ - $ 5,739,328 $ 11,912,284
2021 - 7,591,783 - - 2,147,431 9,739,214
2020 - 8,869,341 - - 2,148,647 11,017,988
2019 10,015,991 - - - 2,033,734 12,049,725
2018 12,452,070 - - - 2,207,364 14,659,434
2017 14,596,411 - - 643,006 2,376,131 17,615,548
2016 16,581,841 - 1,466,010 - 2,656,784 20,704,635
2015 18,367,081 - 3,299,014 - 2,959,007 24,625,102
2014 19,966,684 - 5,077,018 - 2,077,451 27,121,153
2013 585,000 21,400,395 6,800,022 - 2,266,391 31,051,808 NOTE:

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

As of 6/30/2022, that indebtedness has been reduced to $2,516,003.

Source: City of Redlands
City of Redlands
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
As a result of the dissolution of the redevelopment agency in 2012, the outstanding $30,150,000 indebtedness of the former redevelopment agency was transferred to the Successor Agency.

Schedule 10
Governmental Activities
222
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Fiscal Year Water Wastewater Solid Waste Certificates Notes / Total Total Percentage Debt Ended Revenue Revenue Revenue of Leases Business-type Primary of Personal Per June 30 Bonds Bonds Bonds Participation Payable Activities Government Income Capita 2022 -$ -$ 3,408,353 $ - $ 14,644,928 $ 18,053,281 $ 29,965,565 $ 1.05% 409 2021 - - 5,091,347 - 15,514,242 20,605,589 30,344,803 1.16% 426 2020 - - 6,704,343 - 16,784,165 23,488,508 34,506,496 1.20% 486 2019 - - 8,247,337 - 18,129,060 26,376,397 38,426,122 1.54% 542 2018 - - 9,720,331 - 19,440,040 29,160,371 43,819,805 1.76% 618 2017 - 990,000 11,138,322 - 20,929,311 33,057,633 50,673,181 2.31% 732 2016 - 2,021,443 12,506,313 - 18,819,314 33,347,070 54,051,705 2.41% 774 2015 1,195,000 3,024,098 13,834,309 - 16,429,544 34,482,951 59,108,053 2.63% 847 2014 2,402,890 4,001,754 15,132,303 - 17,496,799 39,033,746 66,154,899 2.92% 947 2013 3,579,945 4,959,409 - - 14,909,475 23,448,829 54,500,637 2.42% 781 City of Redlands
Schedule 10
Business-type Activities
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type (Continued)
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Fiscal Year General Taxable Tax Accumulated Net Percent of Ended Obligation Pension Allocation Certificates of Resources to General Assessed Per June 30 Bonds Bonds Bonds Participation Total Repay Principal Bonded Debt Value 1 Capita 2022 - 6,173 - - 6,173 1,620 4,553 0.04% 62
2021 - 7,592 - - 7,592 1,480 6,112 0.06% 86
2020 - 8,869 - - 8,869 1,520 7,349 0.08% 104
-
2019 - 10,016 - - 10,016 1,383 8,633 0.10% 122
-
2018 - 12,452 - - 12,452 2,575 9,877 0.13% 139
-
2017 - 14,596 - 643 15,239 2,416 12,823 0.17% 185
-
2016 - 16,582 - 1,466 18,048 2,265 15,783 0.21% 232
-
2015 - 18,367 - 3,299 21,666 2,129 19,537 0.27% 280
-
2014 - 19,967 - 5,077 25,044 3,521 21,523 0.33% 308
-
2013 585 21,400 - 6,800 28,785 3,708 25,077 0.39% 359
NOTE:
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Outstanding General Bonded Debt
City of Redlands
Ratio of General Bonded Debt Outstanding
(In Thousands, except Per Capita)
As a result of the dissolution of the redevelopment agency in 2012, the outstanding $30,150,000 indebtedness of the former redevelopment agency was transferred to the Successor Agency. As of 6/30/2022, that indebtedness has been reduced to $2,516,003.

Last Ten Fiscal Years
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).

Schedule 11
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Net Taxable 2021-2022 Assessed Valuation $ 10,417,891,813 Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 06/30/22 Debt
Overlapping Tax and Assessment Debt:

San Bernardino Community College District 13.413% 730,017,126 $ 97,917,197 $ Redlands Unified School District 56.176% 59,303,512 33,314,341 $ San Bernardino City Unified School District 0.054% 276,764,806 149,453 $ City of Redlands Community Facilities District No. 2001-1 100.000% 3,075,000 3,075,000 $ City of Redlands Community Facilities District No. 2003-1 100.000% 7,185,000 7,185,000 $ Total Overlapping Tax and Assessment Debt 1,076,345,444 141,640,991 Overlapping General Fund Debt:

San Bernardino County General Fund Obligations 4.289% 188,035,000 8,064,821 San Bernardino County Pension Obligations 4.289% 119,835,000 5,139,723 San Bernardino County Flood Control District General Fund Obligations 4.289% 44,780,000 1,920,614 San Bernardino City Unified School District 0.054% 83,385,000 45,028 Yucaipa-Calimesa Joint Unified School District Authority 0.681% 5,834,502 39,733 Total Overlapping General Fund Debt 441,869,502 15,209,919 Overlapping Tax Increment Debt
City of Redlands (Successor Agency) Tax Allocation Bonds 100% 2,500,000 2,500,000 San Bernardino County Inland Valley Tax Allocation Bonds 6.805% 220,470,000 15,002,984 $ Total Overlapping Tax Increment Debt 222,970,000 17,502,984 Total Gross Overlapping General Fund Debt 664,839,502 32,712,903 Less: Redlands Unified School District Self-Supporting Qualified Zone Academy Bonds 2 (502,066) Total Net Overlapping General Fund Debt 32,210,837
Total Gross Overlapping Debt $ 174,353,894
Total Net Overlapping Debt $ 173,851,828
Direct Tax and Assessment Debt:

City of Redlands 100.000% - $ - $
Direct General Fund Debt:

City of Redlands General Fund Obligations 100.000% - - $ City of Redlands Pension Obligations 100.000% 6,172,956 6,172,956 Total Direct General Fund Debt 6,172,956
Direct Loan/Capital Lease Debt:

I-Bank Sports Park Lease 100.000% 1,219,286 $ 1,219,286 $ Finance Purchase Agreements and Leases Payable 100.000% 4,520,042 4,520,042 Total Direct General Fund Debt 5,739,328 5,739,328
Total Direct Debt $ 11,912,284
Total Gross Direct and Overlapping Debt 3 $ 186,266,178 Total Net Direct and Overlapping Debt 3 1 $ 185,764,112 1 The overlapping district's assessed valuation located within the City is divided by the total assessed valuation of the overlapping district. That percentage is multiplied by the total debt outstanding for the overlapping district resulting in the City's share of debt. 2 Academy Bond Annual Payment of $276,888 is subtracted from balance originally $5 million issued 2004 3 Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue.

Sources: Avenu Insights and Analytics
San Bernardino County Assessor (via HdL, Coren & Cone)
San Bernardino County Auditor-Controller - Property Tax Division City of Redlands
Direct and Overlapping Governmental Activities Debt
Schedule 12
As of June 30, 2022
225
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Legal Debt Margin Calculation 2022 2021 2020 2019 2018
Assessed valuation 11,435,814,517 10,985,363,463 10,475,199,528 9,877,091,307 9,342,770,314 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,858,953,629 2,746,340,866 2,618,799,882 2,469,272,827 2,335,692,579 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 428,843,044 411,951,130 392,819,982 370,390,924 350,353,887 Total net debt applicable to limit:

General obligation bonds - - - - -
Legal debt margin 428,843,044 411,951,130 392,819,982 370,390,924 350,353,887 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% NOTE:

Source: San Bernardino County Assessor (via HdL, Coren & Cone) City of Redlands
California Municipal Statistics, Inc.

The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Last Ten Fiscal Years
City of Redlands
Schedule 13
Legal Debt Margin Information
Fiscal Year
226
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Legal Debt Margin Calculation 2017 2016 2015 2014 2013
Assessed valuation 8,925,637,991 8,450,256,632 8,042,012,336 7,625,337,937 7,428,192,465 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,231,409,498 2,112,564,158 2,010,503,084 1,906,334,484 1,857,048,116 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 334,711,425 316,884,624 301,575,463 285,950,173 278,557,217 Total net debt applicable to limit:

General obligation bonds - - - - 585,000
Legal debt margin 334,711,425 316,884,624 301,575,463 285,950,173 277,972,217 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.0% 0.0% 0.2% Last Ten Fiscal Years
City of Redlands
Schedule 13
Legal Debt Margin Information (Continued)
Fiscal Year
227
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Fiscal Year Less Net
Ended Water Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2022 - - - - - N/A
2021 - - - - - N/A
2020 - - - - - N/A
2019 - - - - - N/A
2018 - - - - - N/A
2017* - - - - - N/A
2016* 19,566,403 18,802,920 763,483 1,195,000 17,925 0.63 2015 23,236,963 16,684,682 6,552,281 1,160,000 53,250 5.40 2014 25,638,627 16,837,289 8,801,338 1,125,000 81,900 7.29 2013 25,251,130 15,262,512 9,988,618 1,740,000 220,710 5.09 Fiscal Year Less Net
Ended Wastewater Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2022 - - - - - N/A
2021 - - - - - N/A
2020 - - - - - N/A
2019 - - - - - N/A
2018 - - - - - N/A
2017* 9,483,891 7,207,159 2,276,732 960,000 58,800 2.23 2016* 9,981,677 7,319,389 2,662,288 925,000 91,875 2.62 2015 9,932,156 6,483,856 3,448,300 900,000 119,250 3.38 2014 11,290,716 6,917,341 4,373,375 880,000 141,550 4.28 2013 9,669,957 6,244,252 3,425,705 1,115,000 244,767 2.52 Fiscal Year Less Net
Ended Solid Waste Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2022 21,106,844 14,161,410 6,945,434 1,580,000 122,500 4.08 2021 19,780,794 13,669,667 6,111,127 1,500,000 199,500 2.82 2020 19,833,178 13,639,644 6,193,534 1,430,000 272,750 2.86 2019 17,996,521 14,518,673 3,477,848 1,290,000 408,750 1.61 2018 15,507,091 11,060,050 4,447,041 1,235,000 465,700 2.05 2017* 13,899,757 9,911,432 3,988,325 1,185,000 537,800 2.32 2016* 13,974,604 10,437,524 3,537,080 1,145,000 572,150 2.06 2015 13,442,842 10,341,915 3,100,927 1,115,000 516,422 1.90 2014 12,560,609 10,130,417 2,430,192 - 213,642 11.38
2013 - - - - - -
NOTE:
* In 2016, existing Water Revenue Bonds were fully defeased. * In 2017, existing Wastewater Revenue Bonds were fully defeased.

Source: City of Redlands
City of Redlands
As a result of the dissolution of the redevelopment agency in 2012, the outstanding indebtedness of the former redevelopment agency was transferred to the Successor Agency.

Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.

Last Ten Fiscal Years
Pledged Revenue Coverage
Debt Service
Debt Service
Water Revenue Bonds
Wastewater Revenue Bonds
Debt Service
Solid Waste Revenue Bonds
Schedule 14
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Personal Per Capita
Calendar Population Income Personal Unemployment
Year (1) (In Thousands) Income (2) Rate (3)
2021 73,288 2,846,286 38,837 2.9%
2020 71,154 2,607,936 36,652 7.4%
2019 70,952 2,882,851 40,631 3.0%
2018 71,441 2,790,914 39,066 3.2%
2017 70,851 2,494,168 35,203 3.1%
2016 69,211 2,195,442 31,721 3.3%
2015 68,040 2,192,657 32,226 3.0%
2014 69,814 2,243,752 32,139 4.7%
2013 69,882 2,265,714 32,422 6.0%
2012 69,813 2,248,258 32,204 7.0%
Sources: (1) State of California, Department of Finance - Demographic Research Unit (2) U.S Department of Commerce U.S Census Bureau
(3) State of California, Employment Development Department Schedule 15
City of Redlands
Demographic and Economic Statistics
Last Ten Fiscal Years
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Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
ESRI 2,713 7.73% 1,900 5.16%
Redlands Unified School District* 2,355 6.71% 1,843 5.01% Redlands Community Hospital 1,319 3.76% 1,250 3.40%
Beaver Medical Group (aka Epic Mgmt) 1,027 2.93% 518 1.41% Amazon Fulfillment Center (Redlands)** 800 2.28% -
University of Redlands 524 1.49% 547 1.49%
City of Redlands 460 1.31% 520 1.41%
Terracina Post Acute 280 0.80% -
Loma Linda University Behavioral Medicine Ctr. 256 0.73% - The Home Depot 247 0.70% -
La-Z-Boy, Inc. 1.06% 391
United States Postal Service 3.80% 1,400
Verizon 3.37% 1,240
Wal-Mart Stores, Inc. 1.14% 420
Southern CA. Gas Company/Sempra 1.04% 383
Total of Top Employers 9,981 28.44% 10,412 28.29%
Total Employees in City(1) 36,800 35,100
County "Donut Hole" Employers (2):

Burlington Coat Factory Distribution Center 1,079 3.07% Amazon Fulfillment Center 500 1.42%
Target 300 0.85%
Prime Line Products 220 0.63%
Kohls Retail Store 180 0.51%
Becton Dickinson Distribution 120 0.34%
JCPenney 90 0.26%
Total Employees 2,489 7.09%
*Count includes PT/FT, classified, certificated, admin. **Previous year combined County and City totals
*** La-Z-Boy, Inc. and Superior Building Products closed its locations in Redlands, CA in late 2019 NOTES:
(1)Total Employees in City provided by EDD Labor Force Data, represents the total employment of all employers located within City limits.
(2) The City of Redlands fully encapsulates a county pocket containing Citrus Plaza and a significant industrial area which is home to a number of distribution centers and logistics companies.

The City of Redlands has chosen to list some of the significant employers within this area as it is believed to contribute to the financial well being of the city.

Source: Avenu Insights and Analytics
2022 2013
City of Redlands
Schedule 16
Principal Employers
Fiscal Year 2022 and Ten Years Prior
Source: MuniServices LLC 230
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FUNCTION/PROGRAM 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Full-time employees:

City clerk's office 2 2 - 1 1 1 1 1 1 -
City manager's office 10 7 9 12 12 11 9 7 7 6
Development services 19 18 17 19 21 22 22 21 19 20
Finance 28 26 24 27 24 27 26 25 24 22
Fire 65 63 62 63 61 60 60 60 58 61
Human resources 11 9 7 9 9 10 8 7 7 5
Library 20 11 18 20 18 17 17 16 16 16
Management information systems - - - - - 9 9 9
Department of Innovation & Tech 12 9 12 12 10 9 10 - - - Municipal utilities and engineering:

Administration 26 36 30 29 33 34 34 34 28 28
Water 48 45 48 50 50 49 49 50 49 49
Wastewater 17 21 23 24 24 24 24 24 24 24
Police 134 112 117 130 126 122 122 121 113 111
Facilities & Community Services2
Administration, parks & streets 67 51 63 63 62 56 56 52 48 46 Equipment maintenance 5 10 4 4 5 5 5 6 6 6
Solid waste 42 38 39 39 33 33 33 32 32 33
Cemetery 4 4 4 4 4 4 4 4 3 3
520 452 477 506 493 484 480 469 444 439
Part-time employees 51 39 43 68 90 87 87 88 81 81
At-will employees - 10 - - - - - - - -
Grant-funded employees1 1 1 1 7 7 10 10 10 10 12
Limited Term Position - 1 - - 4 1 1 - - -
572 503 521 581 594 582 578 567 535 532
1 Includes both full & part time positions.
2 Prior to Fiscal Year 2018, the Facilities & Community Services Department was referred to as the Quality of Life Department Reorganizations in 2008 and 2016 created new departments, moved divisions and transferred employees. Historical data has been changed to reflect some but not all of these reorganizations.

Source: City of Redlands Budget
City of Redlands
Schedule 17
Full Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Years
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FUNCTION/PROGRAM 2022 2021 2020 2019 2018
Police:

Calls for service 1 44,746 44,259 52,520 52,914 54,370
Emergency calls for service 1 68,761 649 808 815 708
Citations issued 1 2,135 4,239 6,837 5,449 7,347
Fire:

Number of incidents 11,386 10,636 10,789 10,760 10,684
Inspections performed 1 1,688 1,362 6,429 5,821 4,075
Building and safety:

Permits issued 2,764 2,078 2,159 2,111 2,408
Inspections performed 15,613 12,017 11,211 9,431 9,381
Parks and recreation:

Community center attendance 28,245 13,645 45,022 48,500 51,000 Senior center attendance 17,763 5,822 20,175 25,109 24,970 Joslyn center attendance 870 1,206 18,257 22,679 20,498 Youth sports attendance 31,266 4,774 10,032 12,396 12,870 Adult sports attendance 7,223 6,524 2,480 3,200 1,800
Water:

Number of services 22,639 22,537 22,380 22,440 22,113
Average daily consumption
(thousands of gallons) 29,317 22,560 25,926 26,670 30,328 Solid waste:

Recycled materials (tons) 23,307 24,703 23,952 25,474 23,758 Refuse disposed (tons) 47,567 61,631 52,476 51,769 51,798 Library:

Number of volumes 149,577 148,652 146,379 146,173 144,173 Source: City of Redlands
Fiscal Years
City of Redlands
Schedule 18
Operating Indicators by Function/Program
Last Ten Fiscal Years
Source: Various City Departments 232
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FUNCTION/PROGRAM 2017 2016 2015 2014 2013
Police:

Calls for service 1 47,488 40,159 55,972 54,529 52,349
Emergency calls for service 1 578 517 538 504 592
Citations issued 1 7,062 5,299 6,733 6,571 7,617
Fire:

Number of incidents 10,484 10,169 9,354 8,980 8,946
Inspections performed 1 2,186 2,827 1,974 2,234 2,208
Building and safety:

Permits issued 2,110 1,947 1,932 2,150 1,600
Inspections performed 10,015 8,293 4,486 7,839 7,717
Parks and recreation:

Community center attendance 44,725 42,625 31,238 19,100 21,084 Senior center attendance 24,415 28,675 29,415 27,891 24,897 Joslyn center attendance 21,554 23,795 21,846 16,932 19,934 Youth sports attendance 12,271 11,521 21,102 2,100 5,677 Adult sports attendance 2,830 5,760 7,200 20,340 6,534
Water:

Number of services 22,378 21,842 21,842 21,732 23,845
Average daily consumption
(thousands of gallons) 20,989 18,679 24,631 29,900 28,375 Solid waste:

Recycled materials (tons) 22,287 22,805 20,611 26,570 25,756 Refuse disposed (tons) 52,527 52,826 49,416 72,228 65,887 Library:

Number of volumes 144,887 144,122 140,667 142,989 143,436 Source: City of Redlands
Fiscal Years
City of Redlands
Schedule 18
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
Source: Various City Departments 233
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FUNCTION/PROGRAM 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Police:

Stations 1 1 1 1 1 1 1 1 1 1
Sub-stations 1 1 1 1 2 2 2 2 2 2
Fire:

Fire stations 4 4 4 4 4 4 4 4 4 4
Public works:

Streets (miles) 300 300 368 368 368 319 316 316 315 315 Traffic signals (city-owned) 73 73 73 72 69 68 68 68 68 68 Parks and recreation:

Parks (acreage) 333 333 333 327 295 295 295 295 295 279 Groves (acreage) 199 199 199 180 164 164 159 159 159 159 Community centers 3 3 3 3 3 3 3 3 3 3
Water:

Water mains (miles) 400 400 388 388 388 385 386 386 390 386 Maximum daily production capacity
(thousands of gallons) 34,900 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 34,900 Non Potable Water *
Water mains (miles) 34 34 34 34 34 34 33 32 30 29
Maximum daily production capacity
(thousands of gallons) 4,100 4,100 14,000 4,500 4,500 4,500 4,500 4,500 4,500 4,500 Wastewater:

Sewers (miles) 247 247 245 245 245 245 245 245 243 242
Daily capacity of wastewater plant
(thousands of gallons) 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 Solid waste:

Landfill (city-owned) 1 1 1 1 1 1 1 1 1 1
Library:

Public library 1 1 1 1 1 1 1 1 1 1
Source: City of Redlands
City of Redlands
Schedule 19
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
Source: Various City Departments 235
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City of Redlands
Redlands, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ended June 30, 2022
Redlands Regular Meeting of 02-21-23 Page 508 of 786
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Redlands
Redlands, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Redlands, California (the “City”) for the year ended June 30, 2022. The management at the City is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. The procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2021, and compared the limit and annual calculation factors that were adopted by resolution of City Council. We also compared the population and inflation options that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: We noted the population factor used by the City was calculated incorrectly resulted in a higher appropriation limit in the amount of $141,141,403, instead of $141,113,178. The correct population factor is

0.9999 instead of 1.0001.

4. We compared the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

Finding: No exceptions were noted as a result of our procedures.

Redlands Regular Meeting of 02-21-23 Page 509 of 786
To the Honorable Mayor and Members of City Council
of the City of Redlands
Redlands, California