Redlands City Council
February 20, 2024

Recommended:

City Manager
Approved by City Council:

Date:

Signed: _____________ _
City Clerk
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City Council Meeting H. 9.

DATE: 02/20/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8561 designating an authorized representative to apply for the Department of Resources Recycling and Recovery grant program (Facilities and Community Services Department Director Crocker)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to adopt Resolution No. 8561.1.

RECOMMENDATION:

Staff recommends that City Council adopt Resolution No. 8561 to designate an authorized representative to apply for the Department of Resources Recycling and Recovery grant program in furtherance of the State of California’s efforts to reduce, recycle, and reuse solid waste generated in the state.

DISCUSSION:

The City of Redlands will routinely apply and receive monies to fund capital improvements for the Solid Waste Divisions of the Facilities and Community Services Department. The Department of Resources Recycling and Recovery (CalRecycle) is administering a grant program meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statues of 2016 and SB170 Budget Act of 2021. In September 2016, Governor Edmund Brown Jr. set methane emissions reduction targets for California in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP).

California has 2025 goals to redirect 20% of edible food currently thrown away to people in need, and reduce organic waste disposal by 75%.

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These funds, if awarded, must be expended in compliance with the SB1383 Recycling program and Ordinance 2945. In 2021, the City of Redlands introduced a Residential Food Waste Recycling Drop-Off Program that provides drop-off locations for food waste collection throughout the City, complying with the requirement standards of SB1383. At that time, the City of Redlands adopted Ordinance 2945, officially added to Title 13 of the Redlands Municipal Code, introducing a new Chapter 13.67 (Mandatory Organic Waste Disposal Reduction) in October 2022. The ordinance lays out clear guidelines for separating organic waste from regular refuse for different waste generators, including single-family homes, business requirements for Edible Food Recovery, and instructions for enforcement. The City of Redlands is committed to sustainable practices and has established specific regulations for Edible Food Recovery. The Edible Food Recovery program is currently being developed and is expected to launch in early 2024. This approach allows departments to thoroughly evaluate and refine the program, ensuring that it seamlessly integrates with the City's existing initiatives.

According to CalRecycle's grant guidelines, the City of Redlands may request $137,279 for the implementation of the regulations associated with SB1383. If this grant is awarded,it will provide funding for the following items, including, but not limited to:

Capacity planning
Collection
Edible Food Recovery
Education and Outreach, (includes organic waste & edible food recovery) Enforcement and Inspection
Program evaluation/gap analysis
Procurement requirements
Record Keeping
Staff intends to apply immediately following City Council approval to receive the grant award as soon as possible. The use of these grant funds will ensure the City of Redlands remains in compliance with CalRecycle’s implementation of regulations.

ALTERNATIVES:

City Council may choose to not adopt Resolution No. 8561 and provide alternative direction to staff.

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STRATEGIC PLAN:

Supports Priority D - Sustainability.

SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
PREPARED BY:

Nathalie Ayala, Senior Administrative Assistant
Fiscal Impact
Fiscal Year: FY 2023-24
Revenue Generating: No
Appropriation Required Y/N: N
Budgeted Y/N: N
Discussion:

There is no fiscal impact associated with the approval of this Resolution. The City expends minimal staff resources in preparing grant applications.

Attachments
A. Resolution No. 8561
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1 I:\cmo\Resolutions\8561 Authorizing Submittal of Individual Grant Applications for All Eligible Grant Programs (CalRecycle).docx-ms

RESOLUTION NO. 8561

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

AUTHORIZING SUBMITTAL OF INDIVIDUAL GRANT APPLICATIONS

FOR ALL GRANT PROGRAMS FOR WHICH CITY OF REDLANDS IS ELIGIBLE

WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and

WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and

WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

BE IT FURTHER RESOLVED that the City Manager, or their designee, is hereby authorized and empowered to execute in the name of City of Redlands all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project; and

BE IT FURTHER RESOLVED that these authorizations are effective for five years from the date of adoption.

ADOPTED, SIGNED AND APPROVED this 20th day of February, 2024.

_____________________________
Eddie Tejeda, Mayor

ATTEST:

_________________________________
Jeanne Donaldson, City Clerk

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2 I:\cmo\Resolutions\8561 Authorizing Submittal of Individual Grant Applications for All Eligible Grant Programs (CalRecycle).docx-ms

I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 20th day of February, 2024. By the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 1.

DATE: 02/20/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Presentation and acceptance of the 2022-23 City of Redlands Annual Comprehensive Financial Report, and the Independent Accountants’ Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation (Management Services/Finance Director Garcia)
MOTION(S):

I move to accept the City of Redlands Comprehensive Annual Financial Report and the Independent Accountants’ Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation for the fiscal year ending June 30, 2023.

RECOMMENDATION:

N/A
DISCUSSION:

The Annual Comprehensive Financial Report (ACFR) communicates the City’s financial condition and activity for the fiscal year ending June 30, 2023. It is an audited summary report of the financial position and transactions of the City for the fiscal year. The Pun Group LLP, a certified public accounting firm, audited these documents and has provided an unmodified opinion of the City’s financial statements. An unmodified opinion communicates to users that the financial statements are fairly presented and that the information used in the report is consistent with generally accepted accounting principles. This is the best opinion that the City can receive from its auditors.

State statute and federal funding requirements stipulate the need for an annual audit to be conducted by independent certified public accountants. The Pun Group LLP was selected through a competitive selection process to perform these services for the City. The audit engagement was also designed to meet Redlands Regular Meeting of 02-20-24
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these services for the City. The audit engagement was also designed to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133, as well as the requirements of Statement on Auditing Standards 115 (SAS 115) and Statement on Auditing Standards 114 (SAS 114).

Accounting and reporting requirements adopted by the Governmental Accounting Standards Board (GASB) for annual financial statements of state and local governments have been implemented as required.

Pursuant to GASB guidelines, the City’s ACFR is divided into three sections:

Introductory, Financial and Statistical. The Introductory section contains a Letter of Transmittal. This letter includes a brief overview of the City, economic outlook, operational controls, and major initiatives. It also includes the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the prior fiscal year ended June 30, 2022. The GFOA's Certificate is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment. The City has consistently received this award for the last twenty years.

The ACFR presents the City’s financial condition and activity in a transparent and structured manner, which is explained in more detail in the section for Management’s Discussion and Analysis. The report also provides historical and comparative information that can be useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City’s residents. The 2022-23 Annual Comprehensive Financial Report and several prior year reports are available on the City’s website at cityofredlands.org/ACFR.

Article XIII-B of the California Constitution places limits on the amount of revenue that can be spent by the state and each local government entity. It is the responsibility of the City to calculate the annual appropriations limit. The City’s auditors are required to review and approve the appropriations calculation as part of their audit to the City. The auditor found no exceptions to the City’s calculation of the appropriations limit. The Independent Accountants’ Report on Agreed-Upon Procedures Applies to Appropriations Limit Worksheet is included as an attachment to this report.

ALTERNATIVES:

Not Applicable
STRATEGIC PLAN:

Not Applicable
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SUBMITTED BY:

Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:

Charles M. Duggan, Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:

There is no fiscal impact associated with the motion provided.

Attachments
FY 2022-23 Annual Comprehensive Financial Report
AU-C 260 Letter (Conclusion of the Audit)
Independent Accountants’ Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation
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ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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City of Redlands
Redlands, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Prepared by
Management Services/Finance Department

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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents

i

Page
INTRODUCTORY SECTION (Unaudited)
Table of Contents ........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v Principal Officers .................................................................................................................................................... xiv Organization Chart ................................................................................................................................................... xv GFOA Certificate of Achievement .......................................................................................................................... xvi

FINANCIAL SECTION
................................................................................................................................ 1

........................................................................................... 5

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................ 30 Statement of Activities and Changes in Net Position .................................................................................. 32

Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet ........................................................................................................................................ 38 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................................... 41 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................... 42 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 ..................................................................... 44 Proprietary Funds Financial Statements:

Statement of Net Position ..................................................................................................................... 46 Statement of Revenues, Expenses and Changes in Net Position .......................................................... 50 Statement of Cash Flows ...................................................................................................................... 52 Fiduciary Funds Financial Statements:

Statement of Fiduciary Net Position ..................................................................................................... 59 Statement of Changes in Fiduciary Net Position .................................................................................. 60

Notes to the Basic Financial Statements ........................................................................................................ 65

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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents (Continued)

ii

Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited) :

Budgetary Information ..................................................................................................................................... 133 Budgetary Comparison Schedules:

General Fund ............................................................................................................................................. 134 Public Facilities Development Special Revenue Fund .............................................................................. 136 Governmental Grants Special Revenue Fund ............................................................................................ 137 Schedule of Changes in the Net Pension Liability and Related Ratios ............................................................ 138 Schedules of Contributions - Pension .............................................................................................................. 140 Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 142

Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet ......................................................................................................................... 147 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................................. 153

Budgetary Comparison Schedules:

Emergency Service Special Revenue Fund ........................................................................................ 159 Household Hazardous Waste Special Revenue Fund ......................................................................... 160 State Gas Tax Special Revenue Fund ................................................................................................. 161 Air Quality Improvement Special Revenue Fund ............................................................................... 162 Traffic Safety Special Revenue Fund ................................................................................................. 163 Measure I Special Revenue Fund ....................................................................................................... 164 Open Space Special Revenue Fund .................................................................................................... 165 Downtown Redlands Business Area Special Revenue Fund .............................................................. 166 Parking Authority Special Revenue Fund ........................................................................................... 167 Asset Forfeiture Special Revenue Fund .............................................................................................. 168 Supplemental Law Enforcement Grant ............................................................................................... 169 Park and Open Space Special Revenue Fund ..................................................................................... 170 Arterial Street Construction Special Revenue Fund ........................................................................... 171 Traffic Signals Special Revenue Fund ................................................................................................ 172 Freeway Interchanges Special Revenue Fund .................................................................................... 173 Street Lighting District #1 Special Revenue Fund.............................................................................. 174 CFD 2004-1 Assessment Special Revenue Fund ................................................................................ 175 Landscape Maintenance District Special Revenue Fund .................................................................... 176 Local Transportation Special Revenue Fund ...................................................................................... 177 PARIS Special Revenue Fund ............................................................................................................ 178 Public Art Special Revenue Fund ....................................................................................................... 179 Redlands Regular Meeting of 02-20-24
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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents (Continued)

iii

Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):

Budgetary Comparison Schedules (Continued):

Transportation Development Act Special Revenue Fund ................................................................... 180 Safety Hall Replacement Capital Projects Fund ................................................................................. 181 Storm Drain Capital Projects Fund ..................................................................................................... 182 General Debt Service Fund ................................................................................................................. 183 Simonds Endowment Permanent Fund ............................................................................................... 184 Pauline Stancliff Memorial Trust Permanent Fund ............................................................................ 185

Non-Major Enterprise Funds:

Combining Statement of Net Position ....................................................................................................... 188 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................... 189 Combining Statement of Cash Flows ........................................................................................................ 190

Internal Service Funds:

Combining Statement of Net Position ....................................................................................................... 194 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................... 196 Combining Statement of Cash Flows ........................................................................................................ 198

STATISTICAL SECTION (Unaudited)
Table of Contents ................................................................................................................................................... 205

Financial Trends:
.......... 206
.............. 208
.. 212
Changes in Fund Balances of Government

Revenue Capacity:

Assessed Value and Estimated Actual Value of
Assessed Value and Estimated Actual Value of Taxabl
. 220
Top Ten Principal Property Taxpayers ............................................................................................................ 222 Property Tax Levies and Collecti ...... 223
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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

Table of Contents (Continued)

iv

Page
STATISTICAL SECTION (Unaudited) (Continued)
Debt Capacity:

Ratios of Outstanding Debt by Ty Fiscal Years ......................................................................... 224 Ratios of General Bonded Debt Ou 226
Direct and Overlapping Governmental Activities Debt ................................................................................... 227 ........ 228
Pledged Revenue Coverage ......... 230

Demographic and Economic Information:

Demographic and Economic Statis ... 231
t Year and Ten Years Prior ............................................................................... 232

Operating Information:

Full Time Equivalent City Government Empl
Operating Indicators by Function/Pr .. 234
Capital Asset Statistics by Function/ .. 237

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City of

REDLANDS
Incorporated 1888
35 Cajon Street, Redlands, CA 92373
v

MANAGEMENT SERVICES

DEPARTMENT

FINANCE DIVISION
Danielle Garcia
Management Services/Finance
Director

James Garland
Assistant Finance Director
December 20, 2023
To the Members of the City Council and Citizens of the City of Redlands:

It is the policy of the City of Redlands to annually publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants.

Pursuant to that requirement, we hereby issue the annual comprehensive financial statements of the City of Redlands (the City) for the Fiscal Year ended June 30, 2023.

This report consists of manage
ng the finances of the City.

Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the Ci
eft, or misuse and to
conformity with GAAP. Because the cost of internal controls should not outweigh their ternal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

ted by The Pun Group, LLP, an independent firm
of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the Fiscal Year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rende
ended June 30, 2023 were fairly presented in
report is presented as the first component of
the financial section of this report.

The independent audit of the financial statements of the City is typically part of a broader, meet the special needs of federal grantor
agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited involving the administration of federal awards.
separately issued Single Audit Report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in found immediately following the independent
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PROFILE OF THE CITY OF REDLANDS
The City of Redlands, incorporated in 1888, is located 63 miles east of Los Angeles, 110 miles north of San Diego, and 500 miles southeast of San Francisco. It lies within the San Bernardino Valley in the southwestern portion of San Bernardino County, covering an area of 36 square miles, within the heart of the Inland Empire. It serves a population of 72,259.

The City was incorporated under the general laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is a municipal corporation governed by a five-member city council in which all policy-making and legislative authority is vested. The City Council is responsible, among other things for passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is the chief administrative officer of the City and as such is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing department heads. The Council is elected on a non-partisan basis. Council members serve four-year staggered terms, with elections occurring every two years. The mayor is currently elected by a majority vote of the Council. Adopted in 2017, Ordinance No. 2848, amended the Redlands Municipal Co
Members from at-large to by-district elections.

The City provides a full range of services, including police and fire protection, animal control, emergency medical aid, building safety regulation and inspection, street lighting, landscaping, sewer and water utilities, solid waste collection and disposal, land use planning and zoning, recreation and community services, maintenance and improvement of streets and related structures, traffic safety maintenance and improvement, and a full range of recreational and cultural programs for citizen participation, as well as being the home of the historic A. K. Smiley Public Library.

Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue and capital project funds.

The annual budget serves as the foundation for
Biennially, during the period February through May, department heads prepare estimates of required appropriations for the following two-year budget cycle. These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and financial resources and historical data for the preceding budget Recommended Budget is then presented either to the full City Council or to the Budget Subcommittee (comprised of 2 members of the City Council and the City Treasurer) at a public meeting noticed in accordance with the Brown Act. A series of two (2) to three (3) budget presentations are then provided to the City Council during regular and special Council meetings, with the Budget Adoption occurring last at a regular meeting of the Council prior to June 30th of each year.

The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department. Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations within a fund. All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered.

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The City maintains budgetary controls to ensure compliance with provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds and internal service funds are included in the annual budget. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments. The permanent fund is not budgeted. The level of control (level at which expenditures may not exceed budget) is the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end; however encumbrances may be re-appropriated each year by separate action of the City Council.

Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, other than the general fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.

ECONOMIC CONDITION AND OUTLOOK

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.

Local economy . Throughout fiscal year 2023, economic indicators showed that amid to move further and further away from the
pandemic shockwaves of recent years. The strength of the local economy was evidenced by significant growth in key revenue sources over prior years. In terms of year-over-year changes Tax increased by 7% and Sales Tax increased by
1% after experiencing significant year-over-year growth. Other key revenue sources also saw year-over-year increases as well. Many of these increases are attributed to recent economic development the City has experienced over the past several years, as well as a continuing rebound from the pandemic.

based largely in the service and trade sectors (health care, retail trade, logistics, technology, and education). The region has a varied manufacturing and industrial base that has added to the relative stability of the unemployment rate over the years. an its neighboring communities. Since 2002,
the annual unemployment rate for the City has ranged from a low of 2.9% in 2021 to a high of

10.5% in 2010, which surpasses the 2020 pandemic-related peak of 7.4%.

or in proximity include computer software
manufacturers, higher education institutions, light manufacturing, regional distribution centers and several financial and insurance institutions. Major employers in the City, or within the vicinity, include the Redlands Unified School District, Esri (Environmental Systems Research Institute), Redlands Community Hospital, Amazon Fulfillment Center, Beaver Medical Group, the City of Redlands, the University of Redlands, Burlington Coat Factory Distribution Center and Loma Linda University Behavioral Medical Center.

The City reviews a variety of indicators during the fiscal year as a part of the review of the economic conditions impacting the City and to analyze trends and patterns therein.

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over the last 4 years has moved a lot. In
2020, it reached its highest level since the Great Recession, recovering the next year in 2021 back to a pre-pandemic low of 2.9%. The following year, 2022, saw an increase to 5.5% in the unemployment rate as labor force participation increased at a rate faster than the economy was adding job openings. So far, in 2023, the 10-month average unemployment rate for the year is 3.9%, reflecting a decrease of nearly 1.5% from the prior year and indicating that the economy has added more jobs to accommodate the larger labor force. assessed value increased a sizable 5.6% from
the prior year and is the ninth consecutive year of growth above 3%. The 10-year average for growth in assessed value over the prior year is a healthy 5.1%. There are several factors that contribute to this growth. New residential and non-residential construction contributed roughly 1% of this growth, while the vast majority (~4.4%) of this growth is attributed to transfers of ownership (i.e., homes sales at prices above their assessed value).

Housing Market - The local real estate market strengthened compared to the broader economy, as a variety of market conditions are keeping median home sale prices well above pre- pandemic levels. Despite forecasts that increased borrowing costs would help induce home price moderation, median prices for detached single family homes in Redlands increased roughly 12% between December 2022 and October 2023 prices. This sustained increase in home prices, along with favorable state legislation has induced home building across the City.

Several residential developments are currently in the entitlement process.

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Trends in the regional and national economy have contributed to a fiscal year of revenue growth, growth in assessed value and improving unemployment numbers. Although the City is on strong financial footing, the potential fiscal impact of a future recession is always a topic of discussion.

t biennial budget adopted by the City Council,
covering fiscal years 2023 & 2024. This biennial budget builds on from the pandemic and the significant addition of Measure T sax revenue beginning in April 2021 while investing in enhancements to services, infrastructure and programs that address deferred maintenance, homelessness, and other community priorities. In the General Fund, City revenue from combined sales tax sources increased from roughly $17,510,000 in 2020 to $48,633,000 in 2023 (an increase of 178%). Property tax has continued to perform well as home prices remain high and new development that has occurred in years passed is added to the tax rolls. During the same time frame from 2020 to 2023, the property tax grew from roughly $32,000,000 to approximately $38,300,000 (an increase of almost 20%).

Demand for homebuilding continues despite prevailing economic conditions that include inflation and higher interest rates.

In residential construction, there are over 1,400 apartment units and over 800 single family dwelling units in the application and entitlement phase at the close of fiscal year 2023. These projects are in addition to those residential developments currently under construction, all of which will add significantly to the housing stock of the City. The uptick in residential developments within the City has been boosted by state legislation requiring compliance with the Regional Housing Needs Allocation (RHNA) target determined by the California Department of Housing & Community Development.

Approved projects include the State Street Village Project to redevelop the former Redlands Mall site with a transit-oriented district and mixed uses. This project includes five 3-story and 4- story buildings with a total of up to 700 apartments/condominiums, a resident amenity building, public & private open space areas, public realm improvements and a variety of retail and office space. Completed projects include the Heritage Specific Plan project by Lennar Homes, referred to as Traditions, a 207-lot single-family residential subdivision in the northwest area of the City.

ted by a strong housing market influenced by
multiuse and transit-oriented residential and commercial developments. While we recognize that rising interest rates could create downward pressure on housing demand in the medium term, we think the city will continue to partic
growth.

In terms of commercial development, several projects have either been completed or are currently in the entitlement process. Phase 2 of the Packing House District shopping center is complete and consists of two new commercial buildings on 3.9 acres for retail and restaurant uses. Most of this space has already been leased out. Also, the Redlands Railway District, LLC recently constructed a retail building on a vacant parcel that consists of roughly 7,000 square feet of retail spaced on the west side of the historic Santa Fe Depot. Projects in the pipeline include the Redlands City Center, a mixed-use development consisting of three retail & restaurant pads on the ground floor and 138 apartment units on upper floors on approximately 3 acres. The construction of two new medical office buildings with nine suites and related site improvements has been approved by the Planning Commission.

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As well the Phelps Office Building has also received approvals to build a multi-tenant building for commercial, office and light industrial uses. Lastly, Newland Development has received approval to construct six Class-A concrete tilt-up light industrial buildings between 30,000 and 50,000 square feet each.

Other notable business openings in fiscal year 2022-23 include the following:

Walters Wholesale Electric, an electrical supply and servicing store, opened in July 2022, providing industrial automation and low voltage solutions, lighting controls, tool rental, roadway and street lighting, and more.

Pandion, a tech-sector logistics company, opened operations in Redlands at a newly constructed industrial building. They specialize in e-commerce delivery and are headquartered in Seattle.

Hot Topic, a music-inspired clothing & accessory retailer, opened in November 2022 and offers band-related apparel and accessories, licensed merchandise, and accessories.

Pedego E-bikes opened a store in Redlands in March 2023, featuring options to buy or models of electric bikes.

Whiskey Republic Spirits & Kitchen opened in October 2022, and is a full-service bar offering line dancing, karaoke, and Sunday brunch.

Sosogu Ramen opened in September 2022. Their menu highlights signature craft ramen with made-from-scratch noodles and offers the experience of traditional Japanese barbeque where customers share premium cooked meats over a flaming charcoal grill. 23, offering a sports bar experience as
well as a neighborhood bar and grill atmosphere.

In May 2023, the Veterinary Emergency Center of Redlands opened its doors and began clinic, including a fully equipped emergency
and critical care overnight hospital for small animals, serving the pet owners of Redlands and nearby communities.
in the Redlands Packing House District in
March 2023, serving authentic Chinese cuisine and other Asian specialties.

Successor Agency. The City of Redlands Redevelopmen
1X 26 (and subsequently AB1484), effective as
of February 1, 2012, and the City of Redlands
for winding down the operations of the Successor Agency.

Management Plan (LRPMP). As of April 2019, the City has disposed of all remaining properties not specified for a governmental purpose in accordance with the LRPMP. In addition, all outstanding liabilities of the Successor Agency were satisfied as of the end of Fiscal Year 2023.

The City submitted a formal request to dissolve the Successor Agency to Former Redevelopment Agency of the City of Redlands and the Request for Action by the Countywide Oversight Board will be considered at its meeting of January 11, 2024. Further discussion about the Successor Agency can be found in Note 14 of the Notes to the Basic Financial Statements.

Long-term financial outlook/planning. As the COVID-19 pandemic continues to recede further into the fiscal distance, the City has benefitted from an expanding tax base, higher General Fund revenues and reserves, as well as ongoing residential and commercial development.

While the trajectory of the economy long-term remains uncertain, there are several factors that bode well for the stability and resilience of the local economy.

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Significant growth in the assessed values over the past several years has built a larger base upon which property taxes are levied. The unprecedented growth in value due to sales transactions is reflected in FY 2023 property tax revenue. Because housing plays an important is important to monitor the effects of a higher interest rate environment as it will almost certainly affect home prices and volume of sales.

ntinued to expand, and unemployment is below
prior year levels, demonstrating that businesses are hiring. Worker availability has been the primary constraint on job growth. This has led to wage growth as employers compete for a smaller pool of applicants. These dynamics have helped to stave off unwanted side effects of a higher interest rate environment, like high unemployment and lending market tightening.

Overall in the economy, inflation remains high despite moderating; economic activity remains elevated despite high interest rates; unemployment is low and labor force participation is up.

This data seems to support the concept of a
factors will set the background for revenue forecast for the next biennium budget (fiscal year 2025 & 2026). The forecast will assume that inflation will continue to moderate and the economy will experience what has been describe
stays low without slipping below zero for any extended period of time.

the risk of recession has dampened from the outlook in FY 2021-22. While uncertainty remains regarding inflation, unemployment and the next economic cycle, the City has bolstered its resources with the passage of Measure T and the steadily increasing growth in assessed property values. Those strengths are added to by the increase in development activities, both in residential and commercial projects, as well as the continued opening and expansion of businesses in the area.

In March 2022, the City Council adopted a Strategic Plan for fiscal year 2022-23 through fiscal year 2027-28. The Strategic Plan resulted from a collaborative process that engaged our community. It is a living document that will focus the City's energy and resources, ensure that City officials and staff are working toward common goals, establish consensus around intended outcomes and allow us to regularly assess and adju
environment.

The plan serves as a framework for achieving
conscientious, safe community with a small town feel in which all people and businesses can Quality of Life
Public Health & Safety
Equity & Inclusion
Sustainability

Each of these topics influence local forecasts for economic development, property & sales tax revenues, housing market, and City investment. In the wake of the pandemic, the City has not only rebuilt its labor force and fiscal reserve, but is also focusing on addressing long-standing capital and infrastructure needs. As a City, we are committed to acting with fiscal prudence, operating lean and utilizing resources responsibly as entrusted to us.

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The graph below provides an at-a-glance view of
facilitate investment in long-term capital needs. In fiscal yea capital projects included: $1.9 million for parking improvements in the downtown, roughly $3.5 million in parks, equipment, facilities, sidewalks and building capital, $24.8 million for future city facilities, $2.5 million for public safety/homelessness, and $2 million for unfunded mandates.

Notably, the ending unassigned fund balance for the General Fund was approximately $13.8 million higher than the prior year and roughly $23.4 million higher than FY 2021, increasing from $29.9 million in FY 2021 to $53.3 million in FY 2023. Further review of the General Fund and Analysis which follows the independent

Relevant Financial Policies

The City has adopted a set of financial policies based on best management practices and GFOA standards. These policies direct the administration of the budget, accounting practices, purchasing, debt, capital financing, investments, and capital assets. Central to the management of the budget and reserves are two policies: th
(2007) and the Fund Balance Policy established by Resolution No. 7346 (2013). The Balanced Budget Policy requires that the City Council adopt a balanced budget on an annual basis wherein total financial sources meet or exceed the total financial requirements of the City, excluding one-time capital expenditures. This ensures a structural balance of revenues and expenditures and creates sustainability with regard to ongoing appropriations. The Fund Balance Policy provides that it is the policy of the City to assign a minimum of 45% of the general fund assigned reserves in the categories of Capital Equipment, Building Purchases and/or Improvements, and Unfunded Mandates in equal proportion and 15% of that excess to the committee reserve for operating contingency.
ability to invest in capital replacement of aging infrastructure of parks and public buildings as well as funding adequate reserves to respond to natural disasters or other disruptions to the venue streams.

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In June 2018, the City Counc
Management Policy. Among other things, this policy establishes guidelines for the use of various categories of debt; creates procedures and policies that minimize and issuance costs; and provides for full and complete financial disclosure and reporting. The Policy was developed to improve the quality of decision-making, provide justification for how debt issuance is structured, identify goals, a
long-term financial planning. Maintaining compliance with the Policy should demonstrate to rating agencies and to capital markets that the City is well managed and will be able to meet its financial obligations on a timely basis.

Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Redlands for its Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022. This was the twentieth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement to the GFOA to determine its eligibility for
another certificate.

The preparation of the annual comprehensive financial report was made possible by the dedicated service of the entire staff of the Finance division. Special recognition is due to Assistant Finance Director, James Garland; Finance Manager, Marie Datuin; senior accountants Denise Camarillo and Jannette Mendoza, and budget analyst, Miriam Valtierra for their efforts in overseeing the compilation of the accounting data and interfacing with our auditors; and to to City Manager Charles M. Duggan, Jr., Assistant City Manager Janice McConnell, and the Mayor and the City Council for their consistent support for maintaining the highest standards of professionalism in the manageme

Respectfully submitted,

Danielle Garcia
Management Services / Finance Director
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City of Redlands
Principal Officers
as of June 30, 2023
City Council (Elected) Eddie Tejeda, Mayor
Paul T. Barich, Mayor Pro Tem
Denise Davis, Councilmember
Mario Saucedo, Councilmember
Jenna Guzman-Lowery, Councilmember
City Manager
Assistant City Manager
Assistant City Manager
City Clerk (Elected)
City Treasurer
City Attorney
Development Services Director
Fire Chief
Library Director
Management Services/Finance Director
Municipal Utilities & Engineering Director
Facilities & Community Services Director
Police Chief
Charles M. Duggan, Jr.

Janice McConnell
Christopher Boatman
Jeanne Donaldson
Phillip Doolittle
Yvette Abich Garcia
Brian Desatnik
Rich Sessler
Donald McCue
Danielle Garcia
John Harris
Tabitha Crocker
Rachel Tolber
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There are fourteen advisory Boards/Commissions/Committees as follows: Airport Advisory Board, Citrus Preservation Commission, Cultural Arts Commission, Disaster Council, Historic & Scenic Preservation Commission, Human Relations Commission, Measure T Oversight Committee, Municipal Utilities & Public Works Commission, Parks & Recreation Advisory Board, Planning Commission, Library Board, Street Tree Committee, Traffic & Parking Commission, and the Utilities Advisory Committee.

City of Redlands, CA
Organizational Chart
Approved By:

Charles M. Duggan, Jr.

City Manager
Effective July, 2022
LEGEND
Elective
Appointive
Boards, Commission &
Committees
Advisory to:

Independent Auditors
City Attorney/
Successor Agency
General Counsel
Boards, Commissions,
and Committees*
City Manager/
Successor Agency
Executive Director

LIBRARY
Archives Library Services
Lincoln Shrine
City Clerk/
Successor
Agency
Secretary
City
Treasurer
City Council/
Successor
Agency
Board
FIRE
Administration
Grants
Policy and Procedures
Operations
Emergency Medical
Services
Fire/Arson Investigations
Fire Suppression &
Rescue
Community Risk Reduction
Fire Code Safety
Fire Prevention Outreach
Emergency Operations
Mgmt.

Disaster Preparedness
EOC Activation
CERT/Training/
Volunteers
Emergency Notification
System

DEVELOPMENT SERVICES
Building & Safety
CDBG
Economic Development
Environmental Review
Historic Preservation
Land Use Engineering
One Stop Permit Center
Planning (current and long
range)

FACILITIES AND

COMMUNITY SERVICES
Airport
Animal Services
Building Maintenance
Cemetery
Citrus Groves
Code Enforcement
Equipment Maintenance
Parks
Recreation & Senior Services
Solid Waste
Street Trees
Sustainability

MUNICIPAL UTILITIES AND

ENGINEERING
Construction
CIP Engineering
Water
Wastewater
Streets and Inspections
Electrical
Streets
Street Maintenance

MANAGEMENT SERVICES
Finance
Accounting
Budget
Business License
Customer Service
Debt Management
Internal Audit
Payroll
Receivables
Revenue Collection
Innovation and Technology
Information Management
Systems
GIS, Client Services,
Operations
Organizational Efficiency

OFFICE OF THE CITY

MANAGER
Administration
Budget
Grants
Legal
Public Information Office
Media Unit/Redlands TV
Public Information
Purchasing / Stores
Human Resources/Risk
Management
Benefits Administration
Employee & Labor
Relations
Employee Services
Liability & Claims
Administration
Recruitment & Selection
Safety Administration
Training
Volunteer & Intern
Resources
Admin.

POLICE
Operations Division
Patrol
Community Policing
Traffic, Parking, Special
Events
School Resource
Investigations
Multiple Enforcement
Team
Street Enforcement Team
Crime Analysis,
Forensics, Property &
Evidence
Volunteers
Administration Division
Communications
Records
Professional Standards
Personnel, Background &
Training
Fleet
Custody
xv
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Redlands
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
xv
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To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information and for the year ended June 30, 2023, and the related notes to the basic financial statements, which collectively comprise In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under tho Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Implementation of New GASB Pronouncements
As discussed in Note 1J and 1V to the basic financial statements, the City implemented Governmental Accounting Subscription Based Information Technology Arrangements during the year. Our opinion is not modified with respect to this matter.

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

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To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California

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

dit 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, a 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 ngly, 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 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 and Analysis, Budgetary Comparison Schedules, Schedule of Changes in Net Pension Liability and Related Ratios, ans, 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.

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To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California

3 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 our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise 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 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 20, 2023, on our 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 effectiv ncial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards internal control over financial reporting and compliance.

Santa Ana, California
December 20, 2023
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City of Redlands
and Analysis (Unaudited)
For the Year Ended June 30, 2023
5 ssion 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, 2023. 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 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. ons in more detail than the government-wide statements by s. 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
(this section), the basic financial
statements, required supplementary information , and an optional section that presents combining statements for non- major 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 overall financial status.

The remaining statements are fund financial statements that focus on individual parts of the City government, 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 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.

nancial statements, including the portion of the City
government they cover and the types of information they contain. The remainder of this overview section of ructure and contents of each of the statements.

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City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
6 Figure A-1
nt-wide and Fund Financial Statements
Fund Statements
Government-wide
Statements

Governmental Funds

Proprietary Funds

Fiduciary Funds
Scope Entire City
government (except
fiduciary funds) and
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
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 include
d
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both short-
term 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
thereafte
r
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
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City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
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 off or worse off as a result of the yea
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 cu taken into account regardless of when cash is received or paid.

difference between assets, deferred outfl
financial position. Over time, increases and decreases
may be one indicator of whether its financial health is improving or deteriorating. You will need to consider other 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:

ces are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities. a fee to customers to help it cover all or most of the cost of the services accounted for in these funds.

The fund financial statements
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 governmental and proprietary

Governmental funds ted 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 tions 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 fina 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
ese 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 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 proprietary funds) reports activities that provide supplies and services internally to other City departments and programs.

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City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
8 The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the ent of Fiduciary Net Position. We exclude these activities 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, 2023 and June 30, 2022, Table 1

Net position over time may serve as a useful indicator of a n, 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 $85.5 million or 13%, from $655,477,017 in 2022 to $740,992,336 in 2023.

Governmental activities net position increased significantly by 18.6%, from $434,611,881 at June 30, 2022 to $515,551,949 at June 30, 2023. Consistent with its prior year increase, the increased by 2.1% from $220,865,136 in 2022 to $225,440,387 in 2023. For governmental activities, the increase of roughly $81 million in net position is mostly attributable to a significant increase total assets of $71.8 million, offset by a corresponding increase in total liabilities of only $12.3 million, contributing a gain in net position of $59.5 million.

That positive impact on net position was decreased by changes in lease-related, pension & OPEB deferred inflows of roughly $750,000, and an increase in pension & OPEB deferred outflows of $22.1 million, for a net positive effect of $21.4 million. For the business type activities, the growth in total net position of 2.1% (or $4.57 million) is attributable to an increase in total assets combined with a decrease in total liabilities for a positive impact of $6.2 million, as well as an increase in pension & OPEB deferred outflows of $2.8 million, offset with a decrease in lease-related, pension & OPEB deferred inflows of $4.5 million. Further detail on prior year comparisons is provided below. 2023 2022 2023 2022 2023 2022
Current and other Assets 171,147,279$ 151,671,652$ 118,298,267$ 121,034,762$ 289,445,546$ 272,706,414$ Capital Assets 595,664,117 543,297,925 205,597,161 201,718,510 801,261,278 745,016,435 Total Assets 766,811,396 694,969,577 323,895,428 322,753,272 1,090,706,824 1,017,722,849 Deferred Outflows of Resources
Pension & OPEB 91,969,372 69,833,304 20,066,931 17,234,776 112,036,303 87,068,080 Long-Term Liabilities Outstanding 268,208,274 254,476,498 94,801,822 98,184,008 363,010,096 352,660,506 Other Liabilities 20,507,492 21,948,107 8,489,325 10,210,571 28,996,817 32,158,678 Total Liabilities 288,715,766 276,424,605 103,291,147 108,394,579 392,006,913 384,819,184 Deferred Inflows of Resources
Leases & Pension & OPEB 54,513,053 53,766,395 15,230,825 10,728,333 69,743,878 64,494,728 Net Position
Net Investments in Capital Assets 590,288,015 537,558,597 190,475,232 183,665,229 780,763,247 721,223,826 Restricted 13,385,123 11,326,983 16,677,323 16,677,323 30,062,446 28,004,306 Unrestricted (88,121,189) (114,273,699) 18,287,832 20,522,584 (69,833,357) (93,751,115) Total Net Position 515,551,949$ 434,611,881$ 225,440,387$ 220,865,136$ 740,992,336$ 655,477,017$ Governmental Activities Business-Type Activities Total Primary Government Redlands Regular Meeting of 02-20-24
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City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
9 The City implemented GASB Statement No. 96 effective July 1, 2023. GASB 96 requires the City recognize a right- subscription liability as it relates to subscription-
has entered into. The following categories were added
to the financial statements: subscription assets and subscription liability. Additional discussion of these changes can be found in Note 1 - J and 7 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 $801 million or 73.5% of total assets. These are detailed in Note 6 of the financial statements.

Net investment in capital assets of approximately $781 milli and other capital assets, less accumulated depreciation and outstanding balances on borrowings used to construct or acquire those assets.

Cash and investments comprised $255.6 million in the City treasury and $2.3 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 notably by $25 million, roughly 28.7%.

The change in deferred outflow of resources related to pensions was due mainly to pension contributions made after the measurement date, total actual earnings were less than total projected earnings, and changes in assumptions. Deferred outflows related to OPEB were due mainly to changes in assumptions.

Receivables, totaling $21.7 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.

Noncurrent long-term liabilities totaled $346 million, approximately, and repr pensions, and other post-employment benefits. More information is presented in Notes 7 and 9-13 of the financial statements.

Other liabilities decreased by 9.8%, from $32.2 to $29 million. Aside from fluctuations in several other accounts in this category, the main cause of this decrease is related to the recognition of revenue under the American Rescue Plan Act funding received towards the end of the prior fiscal year and earned this current fiscal year.

There was also the liquidation of an accounts payable invoice for the I-10 / Alabama Interchange Improvement Project.

Lease related deferred inflows of resources decreased by $1.7 million for spaces and land leased out by the City.

As well, deferred inflows related to pension & OPEB increased by a net amount $5.2 million, roughly 8.1%, but had significant fluctuations individually. These fluctuations are based on actuarial assumptions that are made during the measurement of each corresponding deferred inflow. More will be discussed regarding these categories below.

Overall investment in capital assets, net of related debt, increased by $59.5 million, or 8.3%. 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, land and machinery, equipment & vehicles.

Restricted net position, totaling $30.1 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 -$69.8 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 11 as it pertains to net pension liability, in Note 12 for the Total OPEB liability and in Note 3 for Leases.

Redlands Regular Meeting of 02-20-24
187 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
10 Governmental Activities
Receivables, totaling $12.8 million, consists mainly of taxes receivable at $10.7 million, $1 million in accounts receivable, and $1.1 in leases receivable. Recognition of leases payable, in accordance with GASB 87 reflects the others for their right-of-use of a particular underlying asset.

The net position of governmental activities increased significantly by 18.6% (or $81 million), attributable to a variety of factors. Cash and other assets increased by $19.5 million, capital assets increased by $52.4 million. As well, deferred outflows related to pension & OPEB increased by roughly $22.1 million. These increases were offset by an increase in total liabilities of $12.3 million and increases in deferred inflows related to leases, pension & OPEB of roughly $750,000.

Deferred outflow of resources related to pension and OPEB increased by $22.1 million, roughly 32%. OPEB deferred outflows decreased by approximately $6.1 million and this is attributed mainly to changes in assumptions Pension deferred outflows increased significantly by $28.3 million, or 112%. This change is attributable to differences between projected earnings on pension plan investments in excess of actual earnings and changes in assumptions. There are more details available in Notes 11 & 12 of the financial statements.

This year, there was a net increase of 4.4%, or $12.3 million in total liabilities. This increase relates mostly to changes in total OPEB liability and net pension liability, as the two saw dramatic swings in their values. Total OPEB liability decreased by $43.2 million and net pension liability increased by $58 million. o Changes in OPEB liability are attributed to changes in assumptions, predominately. While the changes in net pension liability are due mainly to the difference between actual versus projected performance of investment income. There are more details available in Notes 11 & 12 of the financial statements.

Deferred inflow of resources related to pension decreased by $40 million, after a prior year increase of $43.4 million. 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, among other factors. OPEB deferred inflows increased over the prior year by $42.1 million, or 1,799%. This change is mainly due to changes in assumptions related to the discount rate and inflation. There are more details available in Notes 11 & 12 of the financial statements.

Redlands Regular Meeting of 02-20-24
188 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
11 Business-Type Activities
The net position of business-type activities increased by 2.1%, or $4.57 million. This change is attributed to an increase in total assets of $1.1 million; an increase in deferred outflows from pension and OPEB of $2.8 million; and a decrease in total liabilities of $5.1 million, offset by an increase in deferred inflows from leases, pension and OPEB of $4.5 million for a net increase of $4.57 million overall.

Receivables, totaling $8.9 million, represent a decrease of approximately $2.5 million from the prior year. The majority of accounts receivable relate to the Water, Wastewater and Solid Waste unbilled customer accounts ($2.5 million).

Total capital assets of $205.6 million represent 26% of total capital assets citywide.

Deferred outflow of resources related to pension and OPEB increased by $2.8 million, roughly 16%. o OPEB deferred outflows decreased by approximately $1.7 million, or 12%. This is a result of changes in assumptions and differences between actual and expected experience. o Pension deferred outflows increased notably by $4.5 million, or 146%. This too is a result of a variety made subsequent to the measurement date of the
actuarial report, changes in assumptions, difference between projected and actual earnings on pension plan investments and difference between actual and expected experience.

This year, there was a net decrease of $3.4 million in long-term liabilities outstanding. o was a net decrease of $3.1 million.

This is representative of repayment of bonds, notes, and leases payable within Water, Solid Waste (Disposal) and Wastewater (Sewer) funds of roughly $3.5 million, which offset the addition of a new capital leases payable for Water Production and Distribution as well as for Wastewater for $473,000.
o Within long-term liabilities outstanding is a newly recognized category of subscription liability. While it was reduced to a zero balance, that repayment is reflected in the above calculation and factors into the difference between this fiscal year and the previous fiscal year. 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 $11.78 million in total OPEB liability, due mainly to changes in assumptions. There was an increase in net pension liability of $10.39 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, contributions after the date of the valuation, and actual earnings compared to projected earnings.
o Landfill closure liability also increased by $876,000. o There was also an increase in long-term debt due in more than one year of roughly $216,000.

Deferred inflow of resources related to leases, pension and OPEB increased by $4.5 million, roughly 42%. o Deferred inflows related to leases decreased by $270,000 as existing leases of land owned by the Water, Aviation and Cemetery Funds were paid by the current lessees. o Pension deferred inflows decreased by $6.7 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, among other factors.
o These decreases were totally offset by an increase in deferred inflows related to OPEB of $11.5 million.

This change is based on the actuarial valuation performed with a measurement date of June 30, 2023 and consists of changes in assumptions and differences between estimated and actual experience.

Redlands Regular Meeting of 02-20-24
189 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
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, 2023 and June 30, 2022:

Table 2

2023 2022 2023 2022 2023 2022
Program Revenues
Charges for services: 17,451,819$ 17,335,323$ 63,283,866$ 65,976,505$ 80,735,685$ 83,311,828$ Operating grants and contributions 5,158,328 4,223,681 385,895 631,695 5,544,223 4,855,376 Capital grants and contributions 53,471,990 28,433,466 4,010,635 6,134,627 57,482,625 34,568,093 General Revenues
Property taxes 40,372,312 37,769,495 96,621 73,337 40,468,933 37,842,832 Sales taxes 48,632,853 48,232,171 - - 48,632,853 48,232,171 Franchise taxes 4,487,821 2,625,852 - - 4,487,821 2,625,852 Other taxes 3,109,696 2,706,919 - - 3,109,696 2,706,919 Investment income (loss) 2,757,278 (1,546,892) 1,123,030 (2,929,740) 3,880,308 (4,476,632) Gain/(loss) on sale of capital assets - - - 44,643,370 - 44,643,370 Intergovernmental (unrestricted) 572,685 1,308,520 - - 572,685 1,308,520 Other 4,734,390 1,689,391 1,107,435 1,208,057 5,841,825 2,897,448 Total Revenues 180,749,172 142,777,926 70,007,482 115,737,851 250,756,654 258,515,777 Program Expenses
General government 28,913,048 26,157,408 - - 28,913,048 26,157,408 Public safety 48,272,159 61,325,651 - - 48,272,159 61,325,651 Culture and recreation 9,123,333 6,902,767 - - 9,123,333 6,902,767 Highway and streets 12,081,745 9,754,750 - - 12,081,745 9,754,750 Library 3,557,350 2,754,340 - - 3,557,350 2,754,340 Interest on Long-Term Debt 792,780 738,561 - - 792,780 738,561 Water - - 26,729,160 26,535,646 26,729,160 26,535,646 Disposal - - 17,755,193 15,454,382 17,755,193 15,454,382 Sewer - - 13,554,178 11,764,304 13,554,178 11,764,304 Groves - - 1,880,763 1,146,879 1,880,763 1,146,879 NP Water - - 563,123 956,768 563,123 956,768 Cemetery - - 1,441,652 958,443 1,441,652 958,443 Aviation - - 819,188 715,647 819,188 715,647 Total Expenses 102,740,415 107,633,477 62,743,257 57,532,069 165,483,672 165,165,546 Change in Net Position Before Transfers 78,008,757 35,144,449 7,264,225 58,205,782 85,272,982 93,350,231 Transfers 2,742,192 48,127,470 (2,742,192) (48,127,470) - - Increase (Decrease) in Net Position 80,750,949 83,271,919 4,522,033 10,078,312 85,272,982 93,350,231 Beginning Net Position 434,611,881 351,339,962 220,865,136 210,786,824 655,477,017 562,126,786 Restatement of Net Position 189,119 - 53,218 - 242,337 - Beginning Net Position, as Restated 434,801,000 351,339,962 220,918,354 210,786,824 655,719,354 562,126,786 Ending Net Position 515,551,949$ 434,611,881$ 225,440,387$ 220,865,136$ 740,992,336$ 655,477,017$ Governmental Activities Business-Type Activities Total Primary Government Redlands Regular Meeting of 02-20-24
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City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
13 Total Primary Government revenues for fiscal year 2022-23 decreased slightly by 3%, or roughly 7.8 million.

This small decrease belies some significant changes from the previous year. First, in Business-Type Activities, there is a large decrease in revenue due mainly to a one-time large land sale in the prior fiscal year of roughly $44 million. In Governmental Activities, there is a dramatic increase in capital grants and contributions as well as property tax that offsets this large year-over-year variance.

Property tax grew by 7%, or $2.6 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 Total expenses for the City stayed roughly level in fiscal year 2022-23 with a difference of only $318,000 over the prior year (or 0.2%). This small difference is a net result of higher expenses in Business-Type Activities and lower expenses in Governmental Activities. More detail on these fluctuations is presented below.

Transfers between governmental activities and business-type activities decreased by roughly $45.4 million. This was due to a large prior-year 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. Such a transaction is a one-time event.

Governmental Activities
Total Governmental Activity revenues for fiscal year 2022-23 increased by roughly 26.6%. This growth in the prior year was mainly due to significant additions under capital grants and contributions, notably the 2022 Alley Paving Improvements, the 2022 Citywide Sidewalk & ADA replacement project, the 2022 Street Resurfacing Project and infrastructure asset additions from several private developments. Other significant variances are detailed below.

Investment Income revenue saw a very significant increase of 278%, or $4.3 million, when compared to the prior year. Much of this is due to was due to a prior year d
portfolio resulting from an overall increase in interest rates. In fiscal year 2022-23, the opposite is true and the lue due to a leveling-off of interest rate increases.

Franchise taxes increased this year by almost 71%, or $1.8 million, due mainly to several anomalies that influenced the amount of revenue that the subject utility companies were required to pay the City. The anomalies included severe weather during the winter months and sharp spikes in unregulated natural gas prices. The City does not anticipate franchise fees returning to these levels in future fiscal years.

Other General Revenues increased by just over $3 million, and $2.5 million of this is attributable to cost recovery received from the San Bernardino Regional Transportation Authority (SBCTA) for cost sharing related to Interstate-10 / Alabama Street improvements. The remaining $500,000 is mainly due to increased cost recovery by several General Fund functions, like planning, police and streets.

Property taxes, as noted above, were boosted by sales in 2021, which was an extraordinary year for home prices and number of sales. That, coupled with new construction being added to the property tax rolls lead to a very strong increase in assessed values for the City.

Total expenses for Governmental Activities decreased in fiscal year 2022-23 by $4.9 million (or 4.6%). The following categories saw the largest fluctuations over the prior year:
o General Government expenses increased by roughly $2.8 million (or 10.5%). The increase was due to several factors, including higher expenses for pension & OPEB (net of each other) and higher operating expenses in Finance, Development Services and Facilities. o The Public Safety category saw a $13 million decrease over the prior year. This variance was the net effect of $1.5 million increase in Police Department operating costs and Fire Department operating costs - respectively, as well as a large reduction in expenses related to pensions (of $15 million over the prior year) and a reduction of $400,000 related to compensated absences among other, smaller variances.

Redlands Regular Meeting of 02-20-24
191 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
14 Governmental Activities (Continued)
o Culture and recreation increased by $2.2 million, or 31%, due to increases in OPEB & pension expenses (net of each other), higher staffing costs, higher spending on internal and special contractual services related to multiple park renovations, as well as the payment of a settlement for terminating an exclusive agreement for the use of the Sports Park with a local youth sports organization. o Highways & streets also increased by $2.3 million which was due to a variety of factors, including higher depreciation over last year, increases in OPEB & pension expenses (net of each other), higher spending on special contractual, electrical and internal services and one-time capital projects.

Business-Type Activities
Overall, ending net position for the business-type activities increased by $4.6 million, or 2.1%.

Comparing fiscal year 2021-22 and fiscal year 2022-23, total revenues decreased by $45.7 million overall, or

39.5%. The decrease in revenues is almost exclusively due to the one-time sale of property and associated proceeds in the prior year.
o The $2.7 million decrease in Charges for Service was due to several changes in revenues for enterprise funds. In the Water and Solid Wast Funds, charges for service decreased by roughly $3.7 million. This decrease was offset by higher revenue in the Grove Fund as well as Sewer Services. o Capital grants and contributions decreased by roughly $2.1 million, or 34.6% over the prior year.

This was due mainly to several the prior year completion of several large capital projects, including Phase 1 of the Water System SCADA Design & Integration and Year 1 of the Citywide Water Meter Replacement project.
o An increase in investment income of $4 million reflects the unrealized gain booked to reflect the difference between the book value of the City
o The prior year sale of property caused an increase in the category of Gain on the sale of capital assets of $44.6 million. This was a one-time event, and, as a result, the revenue for this year in this category shows a decrease of $44.6 million.

Expenses overall increased from fiscal year 2021-22 levels by $5.2 million, or 9.1%. The programs with the largest increase in expenses were the Solid Waste (Disposal), Wastewater (Sewer), Groves and Cemetery funds.

Over the prior year:
o In the Solid Waste (Disposal) Fund, expenses increased by $2.3 million or roughly 15%. This increase was mainly due to increases in general and administrative expenses, as well as increased costs for parts and supplies.
o In the Wastewater (Sewer) Fund, expenses increased by $1.8 million, also roughly 15%. These increases were due to higher costs for salaries & benefits (mainly due to pension expense recognition), parts & supplies, the cost of utilities, as well as increased depreciation in the current year. o In the Groves Fund, expenses increased by $734,000, or 64%. This was due mostly to a sharp increase in general and administrative expenses related to grove care and maintenance as the operation grapples with the dual plagues of the Oriental Fruit Fly quarantine and the Huanglongbing Citrus quarantine, as well as increases in salary and benefits (mainly due to pension expense recognition). o While in the Nonpotable Water Fund, expenses decreased by $394,000, or 41%. The decrease was due to lower spending on general and administrative expenses as well as lower spending on parts and supplies.
o Lastly in the Cemetery Fund, there was a notable increase of $483,000 in expenses, or roughly 50%.

This increase was due mainly to an increase in salary and benefits (mainly due to pension expense recognition).

Redlands Regular Meeting of 02-20-24
192 of 923
City of Redlands
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For the Year Ended June 30, 2023
15 Expenses by Function of Governmental Activity

Expenses overall for governmental activities totaled $102.7 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 28% of total governmental activities, or $28.9 million. General government includes functions such as human resources, finance administration, engineering and City Council.

Expenses for public safety represent 47% of total governmental activities in the amount of $48.3 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 12% of all governmental activities, or $12.1 million. These expenses include bilitation 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 9%, 3%, and 1% of government activity respectively, or $9.1 million, $3.6 million, and $793,000.

General
government
28%
Public safety
47%
Culture and
recreation
9%
Highway and
streets
12%
Library
3%
Interest on Long-
Term Debt
1%
Expenses by Functions of Governmental Activity
General government Public safety
Culture and recreation Highway and streets
Library Interest on Long-Term Debt
Redlands Regular Meeting of 02-20-24
193 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
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 2022
Revenues Expenses
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Water Disposal Sewer NonMajor
Funds
Expenses and Program Revenues:

Business-Type Activities FY 2023
Revenues Expenses
Redlands Regular Meeting of 02-20-24
194 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
17 Major differences between revenues and expenses for business-type activities are show in the two charts above. o Fiscal year 2022-23 saw a significant decrease in Water revenues of $3 million, or 10%, and a small increase in expenses of $193,000, or 0.7%. Seasonality and weather usually have the greatest impacts on water consumption and revenue. This is ties back to record rainfall that occurred in the winter of late 2022 and early 2023. Statewide totals put rainfall at 141% above normal levels, and Redlands was no exception. Overall, the Water Fund has several fluctuations in the categories of depreciation, parts & supplies, general and administrative and salaries & benefits. The net effect of these changes was an increase of $193,000, mainly due to the recognition of higher pension expenses in the fund. o For Solid Waste (Disposal) operations, there was a decrease in revenues over fiscal year 2021-22 of $772,000, or 3.6% and an increase in expenses in the amount of $2.3 million, or 15%. Decreased revenues are the result the variation of billing cycles and the date the accruals are made for accounting purposes. In this case, accruals for the prior year were higher and the accrual for unbilled accounts receivable this year is lower by roughly $635,000. Higher expenses are a result higher City garage charges and other overhead/general services charges in the Fund as well as the purchase of additional solid waste collection containers.
o In the Wastewater (Sewer) Fund, revenues increased by $466,000, or 3.9%, and expenses increased by $1.8 million, or 15.2%. The increase in revenues a function of the variation of billing cycles which impacts the amount of revenues accrued and reversed during the accounting cycle. The increased expenses represents a higher pension expense over the previous year of almost $600,000 and higher costs overall for electrical service and chemical treatments, both of which comprise a large proportion of expenses in the Fund overall. These costs increases are attributable to inflation and higher costs for electricity.
o Lastly, for nonmajor business-type funds,
The Groves Fund experienced a significant increase in revenue by roughly $818,458 (or 95%).

The market for citrus fruit is notably unpredictable and this can cause the marketability of the tialy from one year to the next.

The Hillside Memorial Cemetery had a 13.4% decrease in revenues due to higher than average cemetery lot sales and internment services during the preceeding years.

The Aviation fund saw a small 1% decrease in rental income due to slighly higher ground lease payments offset by lower payments for gate card access to the airport.

The Non-Potable Water Fund experienced a decrease in revenues of 3.5%, or $22,500. The decrease in revenue is related to the number of residential and commercial development projects started in FY 2023. In this case, there were slighly less fees paid indicating the size and number of applications for development projects was slightly lower than the prior fiscal year.

Expenses increased in the Cemetery Fund by $483,000, or 50.4% due mainly the recognition of higher pension costs over the previous year.

Operating expenses in the Groves Fund increased by 64% (due to higher spending on professional services for farming as well as recognition of higher pension costs over the previous fiscal year).

Expenses decreased in Non-Potable Water by $394,000, or 41.1% due mainly to higher costs in the previous fiscal year associated with one-time projects related to new meters & fittings.

Lastly, expenses increased by $104,000, or 14.5% in the Aviation Fund due mainly the recognition of higher pension costs over the previous year.

Redlands Regular Meeting of 02-20-24
195 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
18 Expenses by Type for Business-Type Activities

MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide 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 2023, the total fund balance reported for the General Fund was $110,957,841, an increase of $17,517,617 (18.7%) from the prior year ending fund balance of $93,440,224. This variance is due to several factors that will be detailed below. seful to compare the total fund balance to total fund
expenditures. This measure indicates that the fund balance is approximately 120% of general fund expenditures, however, only $53,289,070 of the $111 million fund balance is unassigned. The unassigned fund balance of $53.3 million, together with the $9.7 million in fund balance committed to stabilization arrangement (contingencies), is the only portion of fund balance readily available for spending and represents 68% of general fund expenditures. Total general fund expenditures this year were $92.5 million, which is $2.9 million lower than the prior year amount of $95.4 million. Total general fund revenues were $116.3 million, or 8% higher than the prior year amount of $107.6 million.

General Fund over the prior year are as follows:

Property tax increased again by $2.5 million, or 7%. This significant increase is due to a few factors affecting nce there is a lag between the time a property is assessed in value and the time when the taxes are collected from property owners, th during calendar year 2021. In 2021, there was a large increase in the number of homes sold in addition to large increases in the sales price those properties were sold for. These factors lead to strong growth in the City's total assessed values, which grew by a factor of roughly 5.42% for the fiscal year. Different property use categories grew at different rates. Most of this growth (82%) is due to transfers of ownership, the CPI 2% growth factor (30%), and some new construction of both residential and non-residential properties (17%).

Salaries and
benefits
27%
General and
administrative
39%
Parts and
supplies
12%
Utilities
9%
Depreciation /
amortization
13%
Operating Expenses by Type for Business-Type Activities Redlands Regular Meeting of 02-20-24
196 of 923
City of Redlands
alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
19 MAJOR FUNDS (Continued)

Overall sales tax increased only slightly by $401,000, or 0.8%, representing an elastic source of revenue that, unlike property taxes, is more responsive to current economic conditions without the same lag time. This slight increase is a signal that sales tax revenue has stabilized after a period of strong growth and the notable addition of the City local add-on sales tax, known as Measure T sales tax, which has been in place for two complete fiscal years so far.

Transient occupancy tax (TOT) increased by $255,000, or 12.4%. Over the past 2 years, the City has added several new hospitality accommodations for travelers: the Hilton Home2 Suites, a 77-room hotel located at 1342 Industrial Park Avenue; the Marriot Springhill Suites, an 88-room hotel located at 1765 West Lugonia Avenue; and the Woodsprings Suites Hotel located at 1700 Orange Tree Lane with 123 guest rooms. This has contributed to steady growth in the revenue category.

Licenses and permits reflect an increase of $741,000 or 9.1%. This increase is due to an increased collection of business license revenue and street permits. The vast majority of business license revenue is based on the gross receipts of a business. Healthy growth in this category is an indication of a strong local economy.

Intergovernmental revenues decreased by $778,000 or 63%, which is primarily the result of a very significant increase in Mutual Aid received during the prior fiscal year (FY 2022), as compared with the amount received prior in FY 2021. This year-to-year amount in this revenue category fluctuates according to wildfires and other extreme conditions where mutual aid assistance has been requested by other cities and fire departments and is then reimbursed after the fact.

Charges for services decreased by $401,000, or 5.1% from prior year. While there are variations over and under in each revenue account, recovery of general government overhead had the largest decrease over the prior year.

Earnings from the investment income were up significantly from FY 2022, by $2.9 million. This dramatic increase reflects the effects of GASB 31, which requires an unrealized loss to be recorded to adjust for market fluctuations. The investments held by the City were subject to these market fluctuations and while the City holds them to maturity, FY 2022 required the City to book a loss of close to $2.4 million. In this year, the value of the investments has rebounded, and the City is expe
For Rents and leases, revenue increased slightly by $27,900, or 1.6%. There were fewer park rental reservations and more recreation rentals, which offset the drop in park rentals.

Miscellaneous revenue increased by $908,000, or 61.6%. This increase is attributed to a one-time donation from the Friends of Prospect Park ($363,000) for lighting upgrades to the park as well as increases in cost recovery in different City departments.

Transfers in decreased significantly in FY 2023 over the prior year by approximately $43.5 million, a 95% decrease. This was due to a large one-time transfer that occurred in FY 2022 to record 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 2022-dollar values. The remaining funds were transferred to the General Fund for the purposes of funding the acquisition of a new City Hall building (300 East State Street) and a new Public Safety (Police) facility (1625 West Redlands Boulevard). For FY 2023, transfers reflect the normal operating transfers that can be expected in most years.

Redlands Regular Meeting of 02-20-24
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alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
20 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 $7,706,632. The funds and amounts owed include the General Fund in the amount of $7,690,541 and the Water Fund in the amount of $16,091. This represents an increase from last year of roughly $17,331, caused by the fact that higher interest rates assessed on the payable were higher than the amount of fees collected and transferred to repay the loan. These interfund loans were made when impact fee revenues were insufficient to cover the 60% share the Public Facilities DIF portion of debt service on the 2003 Lease Revenue Refunding COPs, which matured in fiscal year 2017-18. 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 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 t Grant program, engineering grants for transportation
projects and equipment and facility grants for the Police and Fire departments.

Major Enterprise Funds. The Water Fund has a total net position of $149 million at the end of the fiscal year, $28.5 million of which is unrestricted. The Solid Waste (Disposal) Fund has a total net position deficit of ($1.5 million) at the end of the fiscal year, which marks a $702,000 improvement over the prior fiscal year; and its unrestricted net position is a deficit of ($3.4 million). The Wastewater Fund has a total net position of $56.5 million at the end of the fiscal year; $6.7 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

GENERAL FUND BUDGET
Differences between the final budget and fiscal year 2022-23 activity in the General Fund can be briefly summarized as follows:

Total Revenues - $8.8 million received in excess of budgeted amounts. illion less than the final amount appropriated in the budget (savings). final amount appropriated in the budget (savings).
final amount appropriated in the budget (savings).
nal amount appropriated in the budget (savings).
nal budget amount and the amount expended of $211,400.

Transfers - there was a negative variance between the final budget amount and the amount expended of $429,100.
million between the final amount budgeted for capital
outlay versus the actual amount expended.
e savings of roughly $4 million when comparing the final budget to the actual amount expended during this fiscal year.

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21 Deviations in major categories between the final budget of the General Fund and its actual operating results were as follows. (Note: budget savings are listed as positive figures.)

There are some noteworthy variations between the final budget and the actual receipts recorded in Fiscal Year 2022-23 revenues. This year, property and sales tax comprised 75% of total General Fund revenues. This represents an 18% increase in the share of revenue from property and sales tax over the prior fiscal year. The strong performance in these two categories is related to the passage of Measure T, the C prices and home sales during calendar year 2021, which accounted for a large part of the growth in property tax. Budget estimates were under by roughly $4.3 million. Some of this can be attributed to better-than-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 led to large increases in the number of houses sold and the price for which they were selling. Median prices for detached single family homes in Redlands increased roughly 40% between 2019 and 2023.

Actual revenues were above the amended budget estimates by $8.8 million, or 8%. Revenues from franchise fees also exceeded budget projection by $1.8 million. This variance is attributable to the electrical and natural gas utilities serving the City. Severe weather fluctuations during the fiscal year as well as unregulated natural gas prices contributed to the higher franchise fee amounts.

All revenue categories had positive variances, except for the categories of Intergovernmental revenue, Rents and Leases, and Transfers in.

Final Budget Actual Amounts + (-) Variance

REVENUES
Taxes 87,560,504$ 94,742,275$ 7,181,771$
License and permits 7,815,609 8,862,824 1,047,215 Fines and forfeitures 135,000 241,830 106,830 Intergovernmental 731,500 453,475 (278,025) Charges for services 7,060,722 7,420,190 359,468 Investment income (loss) 200,000 327,573 127,573 Rents and leases 2,037,396 1,821,671 (215,725) Miscellaneous 1,953,499 2,391,443 437,944 Transfers in 2,636,093 2,307,193 (328,900) Inception of lease liability - 384,011 384,011 Total Revenues 110,130,323 118,952,485 8,822,162 EXPENDITURES*
General Government 25,611,676 21,713,295 3,898,381 Public Safety 53,123,288 47,391,651 5,731,637 Culture & Recreation 7,329,069 7,160,435 168,634 Highways & Streets 5,336,383 5,290,295 46,088 Library 2,913,708 3,125,090 (211,382) Transfers 8,508,458 8,937,560 (429,102) Capital Outlay 14,528,131 5,650,480 8,877,651 Debt Service 5,256,079 1,247,000 4,009,079 Total Expenditures 122,606,792$ 100,515,806$ 22,090,986$ *Budget savings noted as positive figures
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22 Licenses and permits performed better than expected, by roughly $1 million, or 13.4%, above forecasts. This was mainly due to increased receipts from business licenses and street permits.

Intergovernmental revenue was lower than expected by approximately $278,000, or 38%. This is due mainly to the timing of mutual aid reimbursement revenues, as the reimbur request for reimbursement of the related funds.

Charges for service were slightly higher by $360,000, or 5.1%. This revenue category covers numerous individual revenue objects. While many areas fluctuated between actual amount and the final budget amount, the largest variance was an increase in receipts from Building & Safety plan checks as well as landfill mitigation fees from the County of San Bernardino.

Rents and leases were roughly $215,700 lower than budgeted amounts. These revenues include lease revenue from a six-story office building located at 300 East State Street in downtown Redlands. The decrease in the revenue from this building reflects the expiration and early move-out dates opted for by then-current tenants as the City prepares the building for occupancy by its administrative staff.

Transfers in were lower than budgeted by 12.5%. This can be attributed to lower revenues from funds like the Gas Tax Fund and the Traffic Safety Fund. This is caused by less revenue being collected in these funds, as both of them are cleared to zero at the end of the accounting cycle, transferring all of their revenue into other funds, with most of it going to the General Fund.

Miscellaneous revenues were up by $438,000, or 22.4%. This was mainly due to an increase in miscellaneous receipts from the transfer of late fees from the Enterprise Funds to the General Fund.

Total General Fund expenditures ended the year under budget by 18%, or $22.1 million. The vast majority of the unspent funds will be carried forward to the subsequent fiscal year (2023-24) for expenditure.

General Government expenditures ended the year under budget by 15.2%, or $3.9 million. Part of this is attributed to savings in the areas of retiree health insurance premiums, savings on costs associated with electronic plan review software, savings on elections costs, lower expenditures on professional services as well as salary savings across most departments.

Public Safety expenditures were under budget by $5.7 million, or 10.8%. 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, services, supplies, equipment, and building improvements.

Culture and Recreation was under budget by roughly $168,600, or 2.3%, this was attributable to salary savings in the Parks, Trees and Recreation & Senior Services divisions.

Highways and Streets expenditures were under budget by $46,088, or 0.9%. This small savings was mainly a result of salary savings in the Electrical and Streets Divisions.

Library expenditures were over budget by $211,400, or 7.3% at year-end. This amount represents higher costs for internal services like information technology.

Capital outlay expenditures were under budget by $8.9, or 61.1% at year-end. This large variance difference is due to the delay in completion and progress on of several large projects:

Library boiler and elevator replacement
Motor vehicle leases for the Police Department
The redesign of Fire Station #262
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23 Various building maintenance projects related to roofing, capital project planning and building security Various park improvement projects Citywide
Vehicles & equipment for the Streets Division
Various improvement projects related to the Community Center, Joslyn Senior Center, Community Senior Center and gym facilities
Engineering projects related to public parking lot, alley, sidewalk and ADA improvements

Actual debt service expenditures were significantly below budgeted levels, at a savings of 76.3%, or $4 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, where roughly $2.9 million was budgeted to pay off a finance purchase agreement for a Smeal Triple Combination Pumper (type 1 engine) and a Spartan LF Quint Tractor (aerial ladder). Other departments, including Police also experienced delays in acquiring vehicle leases budgeted for in FY 2023. 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 $30.8 million resulted from a combination of stronger revenue performance in property & sales tax combined with significant savings across departments. Savings on salaries & benefits, contractual services, and vehicle & equipment purchases, and unspent funds for large projects like $2 million for the redesign of Fire Station #262, $3.2 million on various park capital improvement projects, and $1.4 million on engineering projects, to name a few, resulted in the positive variance for the General Fund.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

ype activities as of June 30, 2023, amounted to $801 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 Subscription Assets. The cat subscription-based information technology arrangement, to use the information technology as an asset over the life of its corresponding arrangement, in accordance with GASB Statement No. 96.

Major capital asset events for Governmental Activities during FY 2022-23 include the following:

Significant additions netting $4.2 million were made to machinery, equipment, and vehicles in governmental activities.

The majority of this increase reflects the lease purchase of 3 fire engines, 2 police department motorcycles for the traffic division, specialized equipment for streets & parks, as well as anti-vehicle barricades that were purchased to secure large public events held in the downtown area.

Net additions to infrastructure assets in general government activities totaled approximately $9.4. Roughly half of the additions to infrastructure assets were the result of the projects constructed by the City, including the 2021 Citywide Sidewalk and ADA Ramp replacement; the 2021 Alley Paving Improvement project; and the Pedestrian Crossing Countdown Head replacement project. Roughly $4.4 million was added during these projects to the total overall road system, which includes pavement, curbs & gutter, trails and landscaping. From the private developer side another $5 million was added to the total road system as a result of several privately constructed development projects including the 420,000 square foot Mountain View Avenue tilt up buildings and the development of 105 residential lots as a part of the KB Homes project on the northeast corner of Lugonia Avenue & Judson Street.

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24 Construction in Progress values also increased significantly in general government by $4.2 million, or 60%. This is due to the start of several large capital improvement projects including the widening and other improvements to the Interstate-10 & Alabama Interchange, the Pavement Management Program 2022 Street Resurfacing Project, the Joslyn Senior Center Renovation, and the Redlands Bowl renovation that includes lighting, speakers, cabling and electrical upgrades.

Right of Way assets increased by 14%, or $41.8 million. This was due to several public and private development projects noted above under net additions to infrastructure assets, including the 2021 Alley Paving Improvement project, and the lic side. On the private side, projects include the 420,000 square foot Mountain View Avenue tilt up buildings and the development of 105 residential lots as a part of the KB Homes project on the northeast corner of Lugonia Avenue & Judson Street.

Lastly, Accumulated Depreciation increased by $9.1 million, depreciation is based on estimated useful lives by infrastructure asset type. Estimated useful lives were initially established using engineering standards, as well as discussions for each asset type. The largest increases were in the categories of road system assets and building & improvements.

For business type activities, land capital assets increased by roughly $1.4 million representing purchase of unimproved property to place a temporary water storage reservoir to allow the demolition and replacement of the existing Sunset Water Reservoir and to mitigate the impact of future drought conditions by expanding water storage capacity.

Buildings & Improvements also increased by $9.1 million. Most of this increase reflects the completion of the Phase 1B Wastewater Treatment Plant Modifications that pertained to the installation of fine screens and associated ancillaries, ejector priming system upgrade, digester boilers upgrade, installation of heated exchangers, and construction of gas conditioning system.

Infrastructure assets increased by roughly $6.2 million. These increases are attributed to the reclassification of construction in progress from the completion of the 2021 Water Pipeline Replacement Project that replaced roughly 3.9 miles of water pipeline, as well as private development projects noted above (the 420,000 square foot Mountain View Avenue tilt up buildings and the development of 105 residential lots as a part of the KB Homes project on the northeast corner of Lugonia Avenue & Judson Street).

Construction in progress decreased by $5.8 million, or almost 41%, as the result of the net effect of the completion of several large capital improvement projects, like the 2021 Water Pipeline Replacement and the completion of the Wastewater Treatment Plant Modification Phases 1A and 1B, as well as the initiation of more capital projects like the 2022 Water Pipeline Replacement project, the Recycled Water Reservoir design, the Tate raw water influent pipeline project, and the Phase 2 design of the Wastewater Treatment Plant Modifications. The SCADA project is also ongoing from the prior year.

Accumulated depreciation increased by $6.6 million, with the largest increases in the categories of Infrastructure and Building & Improvements. Lease Assets increased by $474,000 and this reflects the net effect of the reduction by payments made in lease assets and the addition of new leased assets in the Solid Waste Division. Subscription Assets is a new addition to the categories of assets classes and is being recognized for the first time in fiscal year 2023 by GASB Statement No. 96. In this context, the Subscription Asset represents the right to use an information technology asset.

increased significantly by $56.2 million for the fiscal year ended June 30, 2023, or 7.5% over prior year. This is slightly lower than the

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For the Year Ended June 30, 2023
25 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 C Notes to the Basic
Financial Statements.

Long-Term Liabilities
Major long-term liability events during FY 2022-23 include the following:

The Lease Liability category increased by $512,000, or 60.7% as a result of the addition of 23 new leases for vehicles in Police Support Services, Building Maintenance, Streets, Water and Wastewater operations.

A new category of Subscription Liability is recognized this year in accordance with GASB Statement No. 96, which requires that the City establish accounting methods for a right-to-use subscription assets representing its agreements for subscription-based information technology arrangements and a corresponding subscription liability for the same.

A significant decrease in total OPEB liability was recognized of $55 million, or a reduction of 27%. This follows a significant increase in the prior year of $49.7 million (33% roughly). This is due mainly to differences between estimated and actual experience and changes in assumptions used to perform the actuarial valaution. d by $68.3 million, or 79%. This dramatic increase follows a significant decrease recognized in the prior year ($50 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, contributions after the date of the valuation, and actual earnings compared to projected earnings.

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 decreased by roughly $2.2 million as a result of repayments and no new additions to debt in this category.

Claims payable increased by approximately $759,000, or 5% due to minor variances in claims filed against the City, which can fluctuate significantly from year to year.

Lastly, there was a small increase in compensated absences of roughly $208,000, or 2.4%. This was due to more leave hours being accrued by employees than were used during the same period of time.

Inc./ (Dec.)
2023 2022 2023 2022 2023 2022 % of Change
Land 40,956,320$ 40,956,320$ 28,069,057$ 26,667,376$ 69,025,377$ 67,623,696$ 2.1% Buildings & Improvements 61,847,805 60,553,082 122,661,207 113,470,547 184,509,012 174,023,629 6.0% Machinery/Equip./Vehicles 26,468,907 22,262,850 24,096,435 25,081,193 50,565,342 47,344,043 6.8% Infrastructure 272,359,117 262,936,330 205,766,544 199,550,139 478,125,661 462,486,469 3.4% Water Rights 408,125 408,125 9,884,095 9,881,460 10,292,220 10,289,585 0.0% Right of Way 337,105,665 295,304,762 - - 337,105,665 295,304,762 14.2% Construction in Progress 11,404,751 7,126,967 8,463,598 14,225,414 19,868,349 21,352,381 (7.0%) Accumulated Depreciation (156,079,017) (146,972,512) (193,915,709) (187,275,173) (349,994,726) (334,247,685) 0.0% Lease Assets 1,288,724 904,713 621,090 147,183 1,909,814 1,051,896 0.0% Subscription Assets* 593,542 - 107,285 - 700,827 - 100.0% Accumulated Amortization (689,822) (182,712) (156,441) (29,629) (846,263) (212,341) 298.5% Total 595,664,117$ 543,297,925$ 205,597,161$ 201,718,510$ 801,261,278$ 745,016,435$ 7.5% * Subscription As s ets were firs t reported for fiscal yea r ending 2023, per GASB Statement No. 96.

Governmental Activities Business-Type Activities Total
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alysis (Unaudited) (Continued)
For the Year Ended June 30, 2023
26 Long-term liabilities for governmental and business type activities are presented below to illustrate changes from the prior year:

be found in Note 7 and 9-13 of the Notes to the Basic
Financial Statements.

REQUESTS FOR INFORMATION

This financial report is designed to prov nances. 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
http://cityofredlands.org/finance/annualreport . Additional information intended for the business community is available on the Economic Development web page also lo
http://www.cityofredlands.org/ED .

Inc./ (Dec.)
2023 2022 2023 2022 2023 2022 % of Change
Lease Liability 832,107$ 724,361$ 523,389$ 118,959$ 1,355,496$ 843,320$ 60.73% Subscription Liability* 185,429 - - - 185,429 - - Taxable Pension Bonds 4,607,478 6,172,956 - - 4,607,478 6,172,956 -25.36% Revenue Bonds - - 1,660,000 3,240,000 1,660,000 3,240,000 -48.77% Add: Unamortized Premium - - - 168,353 - 168,353 -100.00% Notes Payable 4,358,566 5,014,967 12,938,540 14,525,969 17,297,106 19,540,936 -11.48% Claims Payable 15,525,893 14,767,131 - - 15,525,893 14,767,131 5.14% Compensated Absences 7,925,416 7,760,175 1,065,169 1,022,107 8,990,585 8,782,282 2.37% Landfill Closure Liability - - 11,606,913 10,730,423 11,606,913 10,730,423 8.17% Total OPEB Liability 102,959,850 146,160,286 44,000,415 55,755,636 146,960,265 201,915,922 -27.22% Net Pension Liability 131,813,535 73,876,622 23,007,396 12,622,561 154,820,931 86,499,183 78.99% Total 268,208,274$ 254,476,498$ 94,801,822$ 98,184,008$ 363,010,096$ 352,660,506$ 2.93% Governmental Activities Business-Type Activities Total
*Subs cription liability was first reported for fiscal year ending 2023, per GASB Statement No. 96.

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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 150,768,235$ 104,839,989$ 255,608,224$ Accounts receivable, net 1,008,391 8,655,463 9,663,854 Taxes receivable 10,668,385 622 10,669,007 Lease receivable - due within one year 1,107,155 229,628 1,336,783 Due from other governments 2,316,399 65,802 2,382,201 Due from Fiduciary Funds 369,064 - 369,064 Prepaid items 1,236,092 - 1,236,092 Inventories 94,254 - 94,254 Internal balances (16,091) 16,091 - Total current assets 167,551,884 113,807,595 281,359,479 Noncurrent assets:

Restricted cash and investments 257,351 2,096,523 2,353,874 Lease receivable - due in more than one year 3,338,044 2,394,149 5,732,193 Capital assets:

Non-depreciable 389,874,861 46,416,750 436,291,611 Depreciable, net 205,789,256 159,180,411 364,969,667 Total capital assets 595,664,117 205,597,161 801,261,278 Total noncurrent assets 599,259,512 210,087,833 809,347,345 Total assets 766,811,396 323,895,428 1,090,706,824

DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB 38,579,840 12,485,317 51,065,157 Related to pensions 53,389,532 7,581,614 60,971,146 Total deferred outflows of resources 91,969,372 20,066,931 112,036,303 June 30, 2023
Statement of Net Position
City of Redlands
Primary Government
See accompanying Notes to the Basic Financial Statements. 30 Redlands Regular Meeting of 02-20-24
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Governmental Business-Type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 7,414,767 4,404,572 11,819,339 Accrued payroll 3,250,408 863,910 4,114,318 Interest payable 123,460 92,760 216,220 Unearned revenue 6,766,135 140,460 6,906,595 Deposits payable 2,952,722 2,987,623 5,940,345 Compensated absences - due within one year 3,962,708 532,585 4,495,293 Claims payable - due within one year 7,762,947 - 7,762,947 Long-term debt - due within one year 1,273,203 3,411,890 4,685,093 Total current liabilities 33,506,350 12,433,800 45,940,150 Noncurrent liabilities:

Compensated absences - due in more than one year 3,962,708 532,584 4,495,292 Claims payable - due in more than one year 7,762,946 - 7,762,946 Long-term debt - due in more than one year 8,710,377 11,710,039 20,420,416 Landfill closure liability - 11,606,913 11,606,913 Total OPEB liability - due in more than one year 102,959,850 44,000,415 146,960,265 Aggregate net pension liability - due in more than one year 131,813,535 23,007,396 154,820,931 Total noncurrent liabilities 255,209,416 90,857,347 346,066,763 Total liabilities 288,715,766 103,291,147 392,006,913

DEFERRED INFLOWS OF RESOURCES
Related to leases 4,258,682 2,534,738 6,793,420 Related to OPEB 44,456,577 12,287,103 56,743,680 Related to pensions 5,797,794 408,984 6,206,778 Total deferred inflows of resources 54,513,053 15,230,825 69,743,878

NET POSITION
Net investment in capital assets 590,288,015 190,475,232 780,763,247 Restricted:

Donations 595,902 - 595,902 PEG Fees 664,781 - 664,781 Public safety 560,656 - 560,656 Police programs and equipment 1,699,668 - 1,699,668 Public art 9,411 - 9,411 Street reconstruction/improvement projects 6,617,218 - 6,617,218 Debt service 559,509 462,600 1,022,109 Storm drain improvements 2,545,321 16,103,982 18,649,303 Endowment - non-expendable - 110,741 110,741 Endowment - expendable 29,393 - 29,393 CFD assessment 103,264 - 103,264 Total restricted 13,385,123 16,677,323 30,062,446 Unrestricted (deficit) (88,121,189) 18,287,832 (69,833,357) 515,551,949$ 225,440,387$ 740,992,336$ Total net position Primary Government
City of Redlands
Statement of Net Position (Continued)
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 31 Redlands Regular Meeting of 02-20-24
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Operating Capital
Charges for Grants an d Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities:

General government 28,913,048$ 15,681,682$ 4,200,923$ 138,580$ 20,021,185$ Public safety 48,272,159 932,542 521,298 119,576 1,573,416 Culture and recreation 9,123,335 421,867 436,107 294,300 1,152,274 Highway and streets 12,081,743 332,187 - 52,893,918 53,226,105 Library 3,557,350 83,541 - 25,616 109,157 Interest on long-term debt 792,780 - - - - Total governmental activities 102,740,415 17,451,819 5,158,328 53,471,990 76,082,137 Business-type activities:

Water 26,729,160 27,080,827 78,647 2,205,981 29,365,455 Disposal 17,755,193 20,313,945 11,585 266,670 20,592,200 Wastewater 13,554,178 12,465,052 136,957 1,433,064 14,035,073 Groves 1,880,763 1,681,761 - - 1,681,761 Non-Potable 563,123 618,839 - 104,920 723,759 Cemetery 1,441,652 986,715 - - 986,715 Aviation 819,188 136,727 158,706 - 295,433 Total business-type activities 62,743,257 63,283,866 385,895 4,010,635 67,680,396 Total primary government 165,483,672$ 80,735,685$ 5,544,223$ 57,482,625$ 143,762,533$

City of Redlands
Statement of Activities and Changes in Net Position
For the Year Ended June 30, 2023
Program Revenues
See accompanying Notes to the Basic Financial Statements. 32 Redlands Regular Meeting of 02-20-24
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Governmental Business-type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government (8,891,863)$ -$ (8,891,863)$ Public safety (46,698,743) - (46,698,743) Culture and recreation (7,971,061) - (7,971,061) Highway and streets 41,144,362 - 41,144,362 Library (3,448,193) - (3,448,193) Interest on long-term debt (792,780) - (792,780) Total governmental activities (26,658,278) - (26,658,278) Business-type activities:

Water - 2,636,295 2,636,295 Disposal - 2,837,007 2,837,007 Wastewater - 480,895 480,895 Groves - (199,002) (199,002) Non-Potable - 160,636 160,636 Cemetery - (454,937) (454,937) Aviation - (523,755) (523,755) Total business-type activities - 4,937,139 4,937,139 Total primary government (26,658,278) 4,937,139 (21,721,139) General Revenues and Transfers:

General revenues:

Taxes:

Property taxes 40,372,312 96,621 40,468,933 Sales and use taxes 48,632,853 - 48,632,853 Franchise taxes 4,487,821 - 4,487,821 Other taxes 3,109,696 - 3,109,696 Total taxes 96,602,682 96,621 96,699,303 Investment income 2,757,278 1,123,030 3,880,308 Intergovernmental - unrestricted 572,685 - 572,685 Miscellaneous revenue 4,734,390 1,107,435 5,841,825 Transfers 2,742,192 (2,742,192) -
Total general revenues and transfers 107,409,227 (415,106) 106,994,121 Change in net position 80,750,949 4,522,033 85,272,982 Net Position:

Beginning of year, as restated (Note 19) 434,801,000 220,918,354 655,719,354 End of year 515,551,949$ 225,440,387$ 740,992,336$
For the Year Ended June 30, 2023
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 02-20-24
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FUND FINANCIAL STATEMENTS
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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. 37 Redlands Regular Meeting of 02-20-24
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Public Facilities Governmental
Development Grants
General Special Revenue Special Revenue
Fund Fund Fund
ASSETS
Cash and investments 99,045,971$ 1,544,793$ 5,294,835$ Restricted cash and investments - - - Accounts receivable, net 936,682 - - Taxes receivable 9,730,965 - - Lease receivable 4,334,753 - - Due from other governments 165,190 - 1,432,303 Prepaid items 524,050 - 528,897 Due from other funds 641,625 - - Due from Fiduciary Funds 369,064 - - Advances to other funds 7,690,541 - - Total assets 123,438,841$ 1,544,793$ 7,256,035$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 2,974,815$ -$ 944,459$ Accrued payroll 2,358,480 - 16,674 Deposits payable 2,466,778 - - Unearned revenues 293,016 - 6,074,912 Due to other funds - - - Advances from other funds - 7,706,632 - Total liabilities 8,093,089 7,706,632 7,036,045

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 238,036 - 1,297,316 Deferred inflows related to leases 4,149,875 - - Total deferred inflows of resources 4,387,911 - 1,297,316

Fund Balances:

Nonspendable 8,214,591 - 528,897 Restricted 1,260,683 - - Committed 12,492,698 - - Assigned 35,700,799 - - Unassigned (deficit) 53,289,070 (6,161,839) (1,606,223) Total fund balances 110,957,841 (6,161,839) (1,077,326) Total liabilities, deferred inflows of
resources, and fund balances 123,438,841$ 1,544,793$ 7,256,035$ (Continued)
Major Funds
City of Redlands
Balance Sheet
Governmental Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 38 Redlands Regular Meeting of 02-20-24
216 of 923
Non-major Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 28,361,041$ 134,246,640$ Restricted cash and investments 257,351 257,351 Accounts receivable, net 13,372 950,054 Taxes receivable 937,420 10,668,385
Lease receivable 110,446 4,445,199
Due from other governments 718,906 2,316,399 Prepaid items 15,730 1,068,677
Due from other funds - 641,625 Due from Fiduciary Funds - 369,064 Advances to other funds - 7,690,541 Total assets 30,414,266$ 162,653,935$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable 2,192,040$ 6,111,314$
Accrued payroll 198,422 2,573,576
Deposits payable 485,944 2,952,722
Unearned revenues 398,207 6,766,135
Due to other funds 641,625 641,625
Advances from other funds - 7,706,632 Total liabilities 3,916,238 26,752,004

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 843,695 2,379,047
Deferred inflows related to leases 108,807 4,258,682 Total deferred inflows of resources 952,502 6,637,729

Fund Balances:

Nonspendable 45,930 8,789,418
Restricted 11,961,583 13,222,266
Committed 11,893,350 24,386,048
Assigned 2,325,558 38,026,357
Unassigned (deficit) (680,895) 44,840,113 Total fund balances 25,545,526 129,264,202
Total liabilities, deferred inflows of
resources, and fund balances 30,414,266$ 162,653,935$ (Concluded)
City of Redlands
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 39 Redlands Regular Meeting of 02-20-24
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40 Redlands Regular Meeting of 02-20-24
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Total Fund Balances - Total Governmental Funds 129,264,202$ 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. 2,379,047 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 595,664,117
Less: capital assets reported in Internal Service Funds (1,112,684) Total capital assets 594,551,433
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 (3,962,708)
Compensated absences - due in more than one year (3,962,708) Long-term debt - due within one year (1,273,203)
Long-term debt - due in more than one year (8,710,377)
Less: amount reported in Internal Service Funds:

Compensated absences - due within one year 207,399
Compensated absences - due in more than one year 207,399 Long-term debt - due within one year 137,376
Long-term debt - due in more than one year 59,323
Total long-term liabilities (17,297,499)
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. (123,460)
Aggregate net pension liability and total OPEB liability used in the governmental activities were not financial resources and therefore were not re
ported in the Governmental Funds Balance Sheet.

Total OPEB liability (102,959,850)
Net pension liability (131,813,535)
Less: amount reported in Internal Service Funds:

Total OPEB liability 8,686,241
Net pension liability 6,193,697
Total OPEB and Pension (219,893,447)
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 38,579,840 Deferred outflows of resources related to pensions 53,389,532 Less: amount reported in Internal Service Funds:

Deferred outflows of resources related to OPEB (3,005,542) Deferred outflows of resources related to pensions (2,041,006) Total deferred outflows of resources 86,922,824
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 (44,456,577) Deferred inflows of resources related to pensions (5,797,794) Less: amount reported in Internal Service Funds:

Deferred inflows of resources related to OPEB 3,582,567 Deferred inflows of resources related to pensions 110,101 Total deferred inflows of resources (46,561,703)
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. (13,689,448) Net Position of Governmental Activities 515,551,949
$
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, 2023
See accompanying Notes to the Basic Financial Statements. 41 Redlands Regular Meeting of 02-20-24
219 of 923
Public Facilities Governmental
Development Grants
General Special Revenue Special Revenue
Fund Fund Fund
REVENUES:

Property taxes 38,511,905$ -$ -$ Sales and use taxes 48,632,853 - - Other taxes 3,109,696 - - Franchise fees 4,487,821 - - Licenses and permits 8,862,824 - - Fines and forfeitures 241,830 - - Intergovernmental 453,475 - 4,545,209 Charges for services 7,420,190 283,772 - Investment income (loss) 327,573 - 38 Rents and leases 1,821,671 - - Miscellaneous 2,391,443 - - Total revenues 116,261,281 283,772 4,545,247

EXPENDITURES:

Current:

General government 21,713,295 5,675 2,688,212 Public safety 48,310,713 - 153,948 Culture and recreation 7,160,435 - 23,493 Highway and streets 5,290,295 - - Library 3,125,090 - - Capital outlay 5,650,480 - 2,425,421 Debt service:

Principal 860,759 - - Interest and fiscal charges 386,241 178,244 - Total expenditures 92,497,308 183,919 5,291,074

REVENUES OVER (UNDER) EXPENDITURES 23,763,973 99,853 (745,827) OTHER FINANCING SOURCES (USES):

Inception of lease liability 384,011 - - Transfers in 2,307,193 - 97 Transfers out (8,937,560) - - Total other financing sources (uses) (6,246,356) - 97 NET CHANGE IN FUND BALANCES 17,517,617 99,853 (745,730) FUND BALANCES (DEFICIT):

Beginning of year 93,440,224 (6,261,692) (331,596) End of year 110,957,841$ (6,161,839)$ (1,077,326)$ (Continued)
Major Funds
For the Year Ended June 30, 2023
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 02-20-24
220 of 923
Non-major Total
Governmental Governmental
Funds Funds
REVENUES:

Property taxes 1,223,275$ 39,735,180$
Sales and use taxes 1,924,654 50,557,507
Other taxes - 3,109,696
Franchise fees - 4,487,821
Licenses and permits - 8,862,824 Fines and forfeitures 487,236 729,066
Intergovernmental 6,471,533 11,470,217
Charges for services 1,874,927 9,578,889
Investment income (loss) 154,408 482,019 Rents and leases 9,988 1,831,659
Miscellaneous 77,259 2,468,702
Total revenues 12,223,280 133,313,580

EXPENDITURES:

Current:

General government 929,412 25,336,594
Public safety 5,590,652 54,055,313
Culture and recreation 221,896 7,405,824 Highway and streets 560,919 5,851,214
Library - 3,125,090
Capital outlay 6,252,495 14,328,396
Debt service:

Principal 1,684,839 2,545,598
Interest and fiscal charges 287,483 851,968 Total expenditures 15,527,696 113,499,997

REVENUES OVER (UNDER) EXPENDITURES (3,304,416) 19,813,583 OTHER FINANCING SOURCES (USES):

Inception of lease liability - 384,011 Transfers in 9,148,480 11,455,770
Transfers out (4,274,924) (13,212,484)
Total other financing sources (uses) 4,873,556 (1,372,703) NET CHANGE IN FUND BALANCES 1,569,140 18,440,880 FUND BALANCES (DEFICIT):

Beginning of year 23,976,386 110,823,322
End of year 25,545,526$ 129,264,202$
(Concluded)
City of Redlands
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 43 Redlands Regular Meeting of 02-20-24
221 of 923
Total Fund Balances - Total Governmental Funds 18,440,880$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated useful lives as depreciation and amortization expenses. This is the amount of capital assets recorded in the current period (net of $293,183 added in internal service funds) ($268,609 of the governmental fund capital outlay balance were for repairs and maintenance expenditures). 14,328,396 In the Government-Wide Statement of Activities, donated assets are reported as a capital contribution. 47,311,022 Depreciation/amortization 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/amortization expense, net of internal service funds of $549,543, was not reported as expenditures in the Governmental Funds. (9,546,543)
The net effec
t of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net position. (81,745)
Issuance of long-term liabilities provides current financial resources to governmental funds,but the issuance increased long- term liabilities in the Government-Wide Statement of Net Position.

Leases liabilities (384,011)
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 $226,062) 2,545,598 Amortization of accreted interest (54,522)
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. 123,982 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 $10,915 deducted in internal service funds). (154,326)
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. (50,421) 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 26,890,201 Changes in net pension liabilities (54,280,672)
Changes in pension related deferred inflows of resources 38,251,759 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 (5,646,634) Changes in total OPEB liabilities 39,673,870
Changes in OPEB related deferred inflows of resources (38,677,145) 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. 2,061,260
Change in Net Position of Governmental Activities 80,750,949$ 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, 2023
See accompanying Notes to the Basic Financial Statements. 44 Redlands Regular Meeting of 02-20-24
222 of 923
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 02-20-24
223 of 923
Water Disposal Wastewater
Fund Fund Fund
ASSETS
Current assets:

Cash and investments 56,667,174$ 20,870,206$ 19,257,459$ Accounts receivable, net 3,778,238 2,740,793 1,788,413 Taxes receivable 35 208 - Interest receivable - - - Lease receivable - due within one year 93,575 - - Due from other governments - - - Prepaid items - - - Inventories - - - Due from other funds - - - Total current assets 60,539,022 23,611,207 21,045,872 Noncurrent assets:

Restricted cash and investments 685,344 1,411,179 - Lease receivable - due in more than one year 1,759,945 - - Advances to other funds 630,003 737,613 - Capital assets:

Non-depreciable 22,054,531 44,849 8,943,779 Depreciable, net 106,176,444 8,128,557 41,710,133 Total capital assets 128,230,975 8,173,406 50,653,912 Total noncurrent assets 131,306,267 10,322,198 50,653,912 Total assets 191,845,289 33,933,405 71,699,784

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 5,696,841 4,002,165 2,292,774
Related to pensions 3,052,099 2,173,353 1,895,956
Total deferred outflow of resources 8,748,940 6,175,518 4,188,730

(Continued)
Major Funds
City of Redlands
Statement of Net Position
Proprietary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 46 Redlands Regular Meeting of 02-20-24
224 of 923
Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds
ASSETS
Current assets:

Cash and investments 8,045,150$ 104,839,989$ 16,521,595$ Accounts receivable, net 348,019 8,655,463 58,337 Taxes receivable 379 622 - Interest receivable - - - Lease receivable - due within one year 136,053 229,628 - Due from other governments 65,802 65,802 - Prepaid items - - 167,415 Inventories - - 94,254 Due from other funds - - - Total current assets 8,595,403 113,791,504 16,841,601 Noncurrent assets:

Restricted cash and investments - 2,096,523 - Lease receivable - due in more than one year 634,204 2,394,149 - Advances to other funds - 1,367,616 - Capital assets:

Non-depreciable 15,373,591 46,416,750 26,081 Depreciable, net 3,165,277 159,180,411 1,086,603 Total capital assets 18,538,868 205,597,161 1,112,684 Total noncurrent assets 19,173,072 211,455,449 1,112,684 Total assets 27,768,475 325,246,953 17,954,285

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 493,537 12,485,317 3,005,542 Related to pensions 460,206 7,581,614 2,041,006 Total deferred outflow of resources 953,743 20,066,931 5,046,548

(Continued)
City of Redlands
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 47 Redlands Regular Meeting of 02-20-24
225 of 923
Water Disposal Sewer
Fund Fund Fund

LIABILITIES
Current liabilities:

Accounts payable 3,023,788 474,125 657,612 Accrued payroll 328,222 263,860 215,835 Interest payable - 91,561 - Deposits payable 1,632,376 28,492 6,127 Unearned revenue 228 134,360 - Compensated absences - due within one year 251,208 124,068 140,423 Claims payable - due within one year - - - Long-term debt - due within one year 913,758 2,063,805 385,790 Total current liabilities 6,149,580 3,180,271 1,405,787 Noncurrent liabilities:

Advances from other funds - - - Compensated absences - due in more than one year 251,208 124,068 140,422 Claims payable - due in more than one year - - - Long term debt - due in more than one year 6,882,047 4,270,492 496,875 Landfill closure - 11,606,913 - Total OPEB liability 22,086,075 11,357,940 9,186,381 Net pension liability 9,261,991 6,595,322 5,753,527 Total noncurrent liabilities 38,481,321 33,954,735 15,577,205 Total liabilities 44,630,901 37,135,006 16,982,992

DEFERRED INFLOWS OF RESOURCES
Related to leases 1,775,091 - - Related to OPEB 5,047,420 4,378,106 2,257,281 Related to pensions 164,643 117,240 102,276 Total deferred inflows of resources 6,987,154 4,495,346 2,359,557

NET POSITION
Net investment in capital assets 120,435,170 1,839,109 49,771,247 Unrestricted (deficit) 28,541,004 (3,360,538) 6,774,718 Total net position (deficit) 148,976,174$ (1,521,429)$ 56,545,965$ (Continued)
June 30, 2023
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 02-20-24
226 of 923
Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable 249,047 4,404,572 1,303,453 Accrued payroll 55,993 863,910 676,832 Interest payable 1,199 92,760 - Deposits payable 1,320,628 2,987,623 - Unearned revenue 5,872 140,460 - Compensated absences - due within one year 16,886 532,585 207,399 Claims payable - due within one year - - 7,762,947 Long-term debt - due within one year 48,537 3,411,890 137,376 Total current liabilities 1,698,162 12,433,800 10,088,007 Noncurrent liabilities:

Advances from other funds 1,351,525 1,351,525 - Compensated absences - due in more than one year 16,886 532,584 207,399 Claims payable - due in more than one year - - 7,762,946 Long term debt - due in more than one year 60,625 11,710,039 59,323 Landfill closure - 11,606,913 - Total OPEB liability 1,370,019 44,000,415 8,686,241 Net pension liability 1,396,556 23,007,396 6,193,697 Total noncurrent liabilities 4,195,611 92,208,872 22,909,606 Total liabilities 5,893,773 104,642,672 32,997,613

DEFERRED INFLOWS OF RESOURCES
Related to leases 759,647 2,534,738 - Related to OPEB 604,296 12,287,103 3,582,567 Related to pensions 24,825 408,984 110,101 Total deferred inflows of resources 1,388,768 15,230,825 3,692,668

NET POSITION
Net investment in capital assets 18,429,706 190,475,232 1,112,684 Unrestricted (deficit) 3,009,971 34,965,155 (14,802,132) Total net position (deficit) 21,439,677$ 225,440,387$ (13,689,448)$ (Concluded)
June 30, 2023
City of Redlands
Statement of Net Position (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 49 Redlands Regular Meeting of 02-20-24
227 of 923
Water Disposal Wastewater
Fund Fund Fund
OPERATING REVENUES:

Charges for services 27,080,827$ 20,313,945$ 12,465,052$ Miscellaneous operating revenue 451,465 - 21,671 Total operating revenues 27,532,292 20,313,945 12,486,723 OPERATING EXPENSES:

Salaries and benefits 5,883,115 4,935,794 4,137,110 General and administrative 7,602,403 10,556,017 3,831,523 Parts and supplies 4,708,796 850,183 1,872,136 Utilities 3,826,842 207,881 1,294,827 Depreciation/amortization 4,504,009 1,130,634 2,413,125 Total operating expenses 26,525,165 17,680,509 13,548,721

OPERATING INCOME (LOSS) 1,007,127 2,633,436 (1,061,998) NONOPERATING REVENUES (EXPENSES):

Investment income 659,228 122,334 255,594 Interest expense (203,995) (74,684) (499) Property taxes - - - Operating grants 78,647 11,585 136,957 Loss on disposal of capital assets - - (4,958) Total nonoperating revenues (expenses) 533,880 59,235 387,094

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 1,541,007 2,692,671 (674,904) CAPITAL CONTRIBUTIONS AND TRANSFERS:

Capital contributions 2,205,981 266,670 1,433,064 Transfers in 344,637 - 21,450 Transfers out (556,026) (2,257,284) (243,826) Total capital contributions and transfers 1,994,592 (1,990,614) 1,210,688 Changes in net position 3,535,599 702,057 535,784 NET POSITION (DEFICIT):

Beginning of year, as restated (Note 19) 145,440,575 (2,223,486) 56,010,181 End of year 148,976,174$ (1,521,429)$ 56,545,965$ (Continued)
Major Funds
City of Redlands
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 50 Redlands Regular Meeting of 02-20-24
228 of 923
Governmental
Non-Major Activities
Enterprise Internal
Funds Total Service Funds
OPERATING REVENUES:

Charges for services 3,424,042$ 63,283,866$ 19,798,719$ Miscellaneous operating revenue 634,299 1,107,435 415,386 Total operating revenues 4,058,341 64,391,301 20,214,105 OPERATING EXPENSES:

Salaries and benefits 1,536,458 16,492,477 4,946,220 General and administrative 2,291,976 24,281,919 11,404,808 Parts and supplies 312,705 7,743,820 5,879,323 Utilities 208,411 5,537,961 305,185 Depreciation/amortization 317,151 8,364,919 549,543 Total operating expenses 4,666,701 62,421,096 23,085,079

OPERATING INCOME (LOSS) (608,360) 1,970,205 (2,870,974) NONOPERATING REVENUES (EXPENSES):

Investment income 85,874 1,123,030 443,600 Interest expense (38,025) (317,203) (10,272) Property taxes 96,621 96,621 - Operating grants 158,706 385,895 - Loss on disposal of capital assets - (4,958) - Total nonoperating revenues (expenses) 303,176 1,283,385 433,328

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (305,184) 3,253,590 (2,437,646)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 104,920 4,010,635 - Transfers in 292,849 658,936 5,026,046 Transfers out (343,992) (3,401,128) (527,140) Total capital contributions and transfers 53,777 1,268,443 4,498,906 Changes in net position (251,407) 4,522,033 2,061,260 NET POSITION (DEFICIT):

Beginning of year, as restated (Note 19) 21,691,084 220,918,354 (15,750,708) End of year 21,439,677$ 225,440,387$ (13,689,448)$ (Concluded)
For the Year Ended June 30, 2023
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 02-20-24
229 of 923
Water Disposal Wastewater
Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 27,995,808$ 21,397,849$ 12,716,205$ Cash payments to suppliers for goods and services (17,019,146) (10,629,101) (7,972,575) Cash payments to employees for services (6,275,391) (4,678,738) (3,841,805) Receipts from other operating activities 451,465 - 21,671 Net cash provided by (used in) operating activities 5,152,736 6,090,010 923,496 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Operating grants 80,147 11,585 136,957 Property taxes - 709 - Due from other funds - - - Due to other funds - - - Advances to other funds 159,524 41,858 - Advances from other funds - - - Transfers from other funds 344,637 - 21,450 Transfers to other funds (556,026) (2,257,284) (243,826) Net cash provided by (used in) noncapital financing activities 28,282 (2,203,132) (85,419) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (7,777,647) (1,323,996) (4,441,419) Cash contributions received from developers 2,205,981 266,670 1,433,064 Proceeds from the sale of assets - 1,251,193 206,351 Inception of lease liability 279,422 - 194,484 Principal payment of long-term debt (749,057) (2,139,947) (354,379) Interest paid on debt (372,348) (107,052) (499) Net cash provided by (used in) capital and related financing activities (6,413,649) (2,053,132) (2,962,398) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 659,228 122,334 255,594 Net cash (used in) investing activities 659,228 122,334 255,594 Net change in cash and cash equivalents (573,403) 1,956,080 (1,868,727) CASH AND CASH EQUIVALENTS:

Beginning of year 57,925,921 20,325,305 21,126,186 End of year 57,352,518$ 22,281,385$ 19,257,459$

RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:

Cash and cash investments 56,667,174$ 20,870,206$ 19,257,459$ Restricted cash and investments 685,344 1,411,179 - Total cash and cash equivalents 57,352,518$ 22,281,385$ 19,257,459$ (Continued)
Major Funds
City of Redlands
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 52 Redlands Regular Meeting of 02-20-24
230 of 923
Water Disposal Wastewater
Fund Fund Fund

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

Operating income (loss) 1,007,127$ 2,633,436$ (1,061,998)$ Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 4,504,009 1,130,634 2,413,125 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 1,110,909 982,994 394,863 Prepaid items 11,226 - 609 Inventories - - - Lease receivable 90,913 - - Deferred outflows - OPEB related 669,231 613,462 306,731 Deferred outflows - pension related (1,581,939) (1,327,755) (1,217,967) Accounts payable (892,331) 108,490 (974,698) Accrued payroll 30,415 33,916 38,962 Deposits payable (157,004) (193) (428) Unearned revenue 228 101,103 (143,282) Compensated absences 17,110 13,013 10,317 Claims payable - - - Landfill closure - 876,490 - Total OPEB liability (4,702,088) (4,310,248) (2,155,124) Net pension liability 3,468,067 2,887,121 2,833,255 Deferred inflows - lease related (130,065) - - Deferred inflows - OPEB related 4,583,958 4,201,962 2,100,981 Deferred inflows - pension related (2,877,030) (1,854,415) (1,621,850) Total adjustments 4,145,609 3,456,574 1,985,494 Net cash provided by (used in) operating activities 5,152,736$ 6,090,010$ 923,496$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment -$ 266,670$ -$ Total noncash capital and related financing activities -$ 266,670$ -$ For the Year Ended June 30, 2023
Major Funds
City of Redlands
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 53 Redlands Regular Meeting of 02-20-24
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Governmental
Activities
Non-major Internal
Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 3,461,354$ 65,571,216$ 19,796,347$ Cash payments to suppliers for goods and services (2,722,833) (38,343,655) (16,184,983) Cash payments to employees for services (960,564) (15,756,498) (3,897,208) Receipts from other operating activities 634,299 1,107,435 415,386 Net cash provided by (used in) operating activities 412,256 12,578,498 129,542 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Operating grants 94,394 323,083 - Property taxes 96,514 97,223 - Due from other funds - - - Due to other funds - - - Advances to other funds - 201,382 - Advances from other funds (176,507) (176,507) - Transfers from other funds 292,849 658,936 5,026,046 Transfers to other funds (343,992) (3,401,128) (527,140) Net cash provided by (used in) noncapital financing activities (36,742) (2,297,011) 4,498,906 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (55,725) (13,598,787) (311,063) Cash contributions received from developers 104,920 4,010,635 - Proceeds from the sale of assets - 1,457,544 - Inception of lease liability - 473,906 - Principal payment of long-term debt (47,589) (3,290,972) (226,062) Interest paid on debt (38,574) (518,473) (10,272) Net cash provided by (used in) capital and related financing activities (36,968) (11,466,147) (547,397) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 85,874 1,123,030 443,600 Net cash (used in) investing activities 85,874 1,123,030 443,600 Net change in cash and cash equivalents 424,420 (61,630) 4,524,651 CASH AND CASH EQUIVALENTS:

Beginning of year 7,620,730 106,998,142 11,996,944 End of year 8,045,150$ 106,936,512$ 16,521,595$

RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET POSITION:

Cash and cash investments 8,045,150$ 104,839,989$ 16,521,595$ Restricted cash and investments - 2,096,523 - Total cash and cash equivalents 8,045,150$ 106,936,512$ 16,521,595$ (Continued)
Statement of Cash Flows (Continued)
City of Redlands
Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 54 Redlands Regular Meeting of 02-20-24
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Governmental
Activities
Non-major Internal
Funds Total Service Funds

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

Operating income (loss) (608,360)$ 1,970,205$ (2,870,974)$ Adjustments to reconcile operating (loss) to net
cash provided by (used in) operating activities:

Depreciation 317,151 8,364,919 549,543 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net (13,429) 2,475,337 (2,372) Prepaid items - 11,835 404,861 Inventories - - (1,114) Lease receivable 134,115 225,028 - Deferred outflows - OPEB related 83,654 1,673,078 501,923 Deferred outflows - pension related (377,572) (4,505,233) (1,394,424) Accounts payable 90,259 (1,668,280) 241,824 Accrued payroll 20,122 123,415 1,326 Deposits payable 76,160 (81,465) - Unearned revenue (20,048) (61,999) - Compensated absences 2,622 43,062 10,915 Claims payable - - 758,762 Landfill closure - 876,490 - Total OPEB liability (587,761) (11,755,221) (3,526,566) Net pension liability 1,196,392 10,384,835 3,656,241 Deferred inflows - lease related (139,486) (269,551) - Deferred inflows - OPEB related 572,995 11,459,896 3,437,969 Deferred inflows - pension related (334,558) (6,687,853) (1,638,372) Total adjustments 1,020,616 10,608,293 3,000,516 Net cash provided by (used in) operating activities 412,256$ 12,578,498$ 129,542$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:

Contributed property, plant and equipment 104,920$ 371,590$ -$ Total noncash capital and related financing activities 104,920$ 371,590$ -$ For the Year Ended June 30, 2023
City of Redlands
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements. 55 Redlands Regular Meeting of 02-20-24
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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. 57 Redlands Regular Meeting of 02-20-24
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Community RDA
Facilities Successor Agency
District Private Purpose
Custodial Fund Trust Fund
ASSETS
Cash and investments 650$ -$
Restricted cash and investments with fiscal agent 3,100,097 - Total assets 3,100,747 -

LIABILITIES
Accounts payable 5,856 -
Accrued liabilities - 512
Due to City - 369,064
Total liabilities 5,856 369,576

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 3,094,891 - Held in trust for dissolution of RDA (deficit) - (369,576) Total net position (deficit) 3,094,891$ (369,576)$ City of Redlands
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 59 Redlands Regular Meeting of 02-20-24
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Community RDA
Facilities Successor Agency
District Private Purpose
Trust Fund Trust Fund
ADDITIONS:

Fee collections for other governments 1,597,148$ -$ Investment income (loss) 125 84,737 RDA property tax trust fund distribution - 5,181 Total additions 1,597,273 89,918
DEDUCTIONS:

Administration 30,662 9,508
Contractual services 3,049 -
Conduit debt payment - principal 895,000 - Conduit debt payment - interest 590,248 - Total deductions 1,518,959 9,508
Change in net position 78,314 80,410 NET POSITION (DEFICIT):

Beginning of year 3,016,577 (449,986)
End of period 3,094,891$ (369,576)$
City of Redlands
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 60 Redlands Regular Meeting of 02-20-24
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61 NOTES TO THE BASIC FINANCIAL STATEMENTS
Redlands Regular Meeting of 02-20-24
239 of 923
City of Redlands
Index of Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
62 Page

.................. 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. Subscription-Based Information Technology Arrangements (SBITAs) ................................................... 74 K. Capital Assets ............................................................................................................................................ 74 L. Long Term Debt ........................................................................................................................................ 75 M. Compensated Absences ............................................................................................................................. 76 N. Claims and Judgements Payable ................................................................................................................ 76 O. Pension Plans ............................................................................................................................................. 76 P. Other Postemployment Benefits (OPEB) .................................................................................................. 77 Q. Encumbrances ............................................................................................................................................ 77 R. Fund Balances ........................................................................................................................................... 77 S. Net Position ............................................................................................................................................... 79 T. Property Taxes ........................................................................................................................................... 79 U. Use of Accounting Estimates .................................................................................................................... 79 V. Implementation of New GASB Pronouncements for the Year Ended June 30, 2023 ............................... 79 W. Upcoming Government Accounting Standards Implementations ............................................................. 81

................................. 81

A. Demand Deposits ....................................................................................................................................... 82 B. Investments Authorized by the California Government
...... 82
C. Investments Authorized by Debt Agreements ........................................................................................... 83 D. Fair Value Measurement ........................................................................................................................... 84 E. Risk Disclosure .......................................................................................................................................... 84 F. Investment in State Investment Pool ......................................................................................................... 86

..................................... 87
A. Governmental Activities ............................................................................................................................ 87 B. Business-Type Activities ........................................................................................................................... 88

................ 89
A. Due To / From Other Funds ...................................................................................................................... 89 B. Advance From/ From Other Funds ............................................................................................................ 89 C. Transfers .................................................................................................................................................... 90

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City of Redlands
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
63 Page

..................... 90

........................................ 91
A. Governmental Activities ............................................................................................................................ 91 B. Business-Type Activities ........................................................................................................................... 92 .................................. 93

A. Governmental Activities ............................................................................................................................ 93 B. Business-Type Activities ........................................................................................................................... 96 C. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of Redlands ............................................................................................................................ 100

....... 101

............................. 102

A. Governmental Activities .......................................................................................................................... 102 B. Business-Type Activities ......................................................................................................................... 103

................................. 103

..................................... 104

A. Summary ................................................................................................................................................. 104 B. City Miscellaneous Plans ........................................................................................................................ 105 C. City Safety Plans ..................................................................................................................................... 110

...................... 116

A. Summary ................................................................................................................................................. 116 B. General Information about OPEB ........................................................................................................... 116 C. Total OPEB Liability, OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ...................................................................................................... 118

................................ 121

A. Coverage .................................................................................................................................................. 121 B. Claims Activity ........................................................................................................................................ 121

Redlands Regular Meeting of 02-20-24
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City of Redlands
Index of Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
64 Page

........................ 122

A. Fund Balance/Net Position Deficits ........................................................................................................ 122 B. Expenditures Exceeding Appropriations ................................................................................................. 123

........................... 124

....................... 125

t for Assets of Former Redevelopment ............................... 125

omic Development Incentives ......................................................................... 126

................................... 126

............................ 127

A. Government-Wide Financial Statements ................................................................................................. 127 B. Proprietary Financial Statements ............................................................................................................. 127

and Contingencies ........................................................................................................... 128

A. Litigation ................................................................................................................................................. 128 B. ................... 128
C. Federal and State Grants .......................................................................................................................... 128 D. Contractual Commitments ....................................................................................................................... 129

Redlands Regular Meeting of 02-20-24
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City of Redlands
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
65 The basic financial statements of the City ve been prepared in conformity with accounting principles generally accepted in the United States agencies. The Governmental Accounting Standards Boar
establishing governmental accounting and financial reporting standards in the United States. The more significant of

A. Financial Reporting Entity
The 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 en incomplete.

Blended component units, although legally separate entities, are, in subs 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 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 Co zed 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)
lished 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 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 A. Financial Reporting Entity (Continued)

Related Organizations
r appointing members of the boards of other organizations, zations 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
ude a Statement of Net Position and a Statement of
Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an
measurement focus and the accrual basis of
bilities, 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 02-20-24
244 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 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
Due to City/from Fiduciary 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 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 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.

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.

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 clude funds which provide services directly to other City funds.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in 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 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 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 Government- Wide Financial Statements, and are comprised of the following funds:

General Liability Self-Insurance Fund - This fund is used 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
ich 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
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary al 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, which do not have trust agreements with the City.

Redlands Regular Meeting of 02-20-24
247 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 B. Basis of Presentation, Accounting and Measurement Focus (Continued)

Fiduciary Fund Financial Statements (Continued)

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 gene 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 Su Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. In February 2015, the California Department of Fi Property Management Plan (LRPMP), with the assets deemed for governmental use and future development.

C. Deferred Outflows and Inflows of Resources

rnmental Funds 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 02-20-24
248 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 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:

tical assets or liabilities in active markets at the
measurement date.

Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date.

at 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 02-20-24
249 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 F. Receivables

uncollectible accounts based on historical and management estimates.

Noncurrent portions of long-term receivables (e.g.,
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 portion of interfund loans). Any residual balances outstanding between the governmental activities and business- type activities are reported in the Governmental-Wid

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

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 02-20-24
250 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 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 long- term 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 02-20-24
251 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 J. Subscription-Based Information Technology Arrangements (SBITAs)

The City has a policy to recognize a SBITA liability and a right to use subscription asset (SBITA asset) in our financial statements with an initial, individual value of $25,000 or more with a subscription term greater than one year.

At the commencement of a subscription, when the subscription asset is placed into service, the SBITA liability is measured at the present value of payments expected to be made during the subscription term. Future subscription payments are discounted using the City's incremental borrowing rate and the City recognizes amortization of the discount on the subscription liability as interest expense in subsequent financial reporting periods.

SBITA assets are measured as the sum of the initial subscription liability, payments made to the SBITA vendor before the commencement of the lease term, and capitalizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the subscription term.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

- The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs.

- The subscription term includes the period during which the City has a noncancelable right to use the underlying IT asset. The subscription term also includes periods covered by an option to extend if it is reasonably certain to be exercised.

- Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option years that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of a subscription and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Right-to-use subscription assets are reported along with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

K. 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.

Redlands Regular Meeting of 02-20-24
252 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 K. Capital Assets (Continued)

Major capital outlay for capital assets and improvements are capitalized as projects are constructed. For debt- financed 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
M achinery, equipment, and vehicles 3-25
Lease and subscription assets Contract term

L. 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 02-20-24
253 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 M. 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 ar e unpaid liability is recorded as a long- term liability of the fund.

N. Claims and Judgments Payable

ms liability is reported in
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.

O. 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 ition have been determined on the same basis as they are reported by the plans (Note 11. 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:

Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022

Redlands Regular Meeting of 02-20-24
254 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 O. 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.

P. 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 pl have been determined by an independent actuary (Note 12). 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:

Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022
Q. 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.

R. Fund Balances

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

Nonspendable
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
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 02-20-24
255 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 R. Fund Balances (Continued)

Committed 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
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 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 und 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 calcu oprietary fund financial statements, a flow assumption
must be made about the order in which the resources are considered to be 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
out. The balance at June 30, 2023, is $9,794,310 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 02-20-24
256 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 S. 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 amortization 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 first, then unrestricted resources that are needed.

T. 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.

U. Use of Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP 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.

V. Implementation of New GASB Pronouncements for the Year Ended June 30, 2023

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, 2023. 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 02-20-24
257 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 V. Implementation of New GASB Pronouncements for the Year Ended June 30, 2023 (Continued)

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.

Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended 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. Implementation of this statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

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-u
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. Implementation of this Statement had a moderate effect on the City 's financial statements for the fiscal year ended 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. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

Redlands Regular Meeting of 02-20-24
258 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 W. 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. 100
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Co 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

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

Cash and investments are presented in the accompanying financial statements at June 30, 2023 as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 150,768,235$ 104,839,989$ 255,608,224$ 650$ 255,608,874$ Cash and investments with fiscal agent 257,351 2,096,523 2,353,874 3,100,097 5,453,971 Total cash and investments 151,025,586$ 106,936,512$ 257,962,098$ 3,100,747$ 261,062,845$ Government-Wide Statement of Net Position

Cash and investments at June 30, 2023, consisted of the following:

Cash:

Cash on hand 4,000$
Deposits with financial institutions 46,149,767
Total cash 46,153,767
Investments:

Investments 209,455,107
Investments held by bond truste e 5,453,971
Total investments 214,909,078
Total cash and investments 261,062,845$
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

Redlands Regular Meeting of 02-20-24
259 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 A. Demand Deposits

The carrying amounts of were $46,149,767 at June 30, 2023. Bank balances were $48,335,400 at that date, the total amount of which was collateralized or insured with securities held by the pledging financial institutions in th

The California Government Code requires California banks and savings and loan associations to secure the Code states that collateral pledged in this manner
shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

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

The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also City may waive collateral requirements for cash deposits, which are fully 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.

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 02-20-24
260 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 B. Investments Authorized by the California Government

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 M arket M utual 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 M illion** 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 02-20-24
261 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 D. Fair Value Measurement

At June 30, 2023, 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, 2023:

Total at
Investments measured by fair value level: June 30, 2023 Level 1 Level 2 Federal Agency Securities 114,320,022$ -$ 114,320,022$ Corporate Bonds 35,212,725 - 35,212,725 Negotiable Certificates of Deposit 16,337,129 - 16,337,129 Municipal Bonds 14,172,843 - 14,172,843 U.S. Treasury Notes 8,415,570 8,415,570 - Total investments by fair value level 188,458,289 8,415,570$ 180,042,719$ Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 20,996,818
Money market mutual funds 5,453,971
Total investments not subject to the fair value hierarchy 26,450,789 Total investments 214,909,078$

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 02-20-24
262 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 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 13,719,510$ 24,508,938$ 32,295,797$ 30,648,593$ 13,147,184$ 114,320,022$ Corporate Bonds 9,713,680 10,494,280 7,348,678 4,791,587 2,864,500 35,212,725 Negotiable Certificates of Deposit 3,423,446 3,989,839 3,459,566 3,001,933 2,462,346 16,337,130 Municipal Bonds 5,063,212 3,199,174 2,741,727 1,545,129 1,623,600 14,172,842 U.S. Treasury Notes 1,965,500 1,904,060 2,763,710 1,782,300 - 8,415,570 Local Agency Investment Fund 20,996,818 - - - - 20,996,818 Held by Trustees:

Money Market Funds 5,453,971 - - - - 5,453,971 Total investments 60,336,137$ 44,096,291$ 48,609,478$ 41,769,542$ 20,097,630$ 214,909,078$

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, ting as of year-end for each investment type.

Investment T ype T otal
Minimum
Legal Rating
AA+/
AA/AA- A+/A/A- AAA/AAAm Not Rated
Held by City:

Federal Agency Securities 114,320,022$ N/A 45,202,317$ -$ 2,344,425$ 66,773,280$ Corporate Bonds 35,212,725 A 8,788,047 22,645,258 3,779,420 - Negotiable Certificates of Deposit 16,337,129 N/A - - - 16,337,129 Municipal Bonds 14,172,843 A 11,158,178 916,090 - 2,098,575 Held by Trustee:

Money Market Funds 5,453,971 - - - 5,453,971 T otal Rated Investments 185,496,690 65,148,542$ 23,561,348$ 6,123,845$ 90,662,955$ Not rated:

Local Agency Investment Fund 20,996,818 N/A
Exempt from credit rating disclosure:

U.S. T reasury Notes 8,415,570 N/A
T otal investments 214,909,078$

Redlands Regular Meeting of 02-20-24
263 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 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
64,367,409$ 29.95%
22,022,561 10.25%
16,953,450 7.89%Federal Agency Securities
Investment Type
Federal Agency Securities
Federal Agency Securities
Federal Farm Credit Bank
Federal Home Loan M ortgage 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 estment 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, 2023, the City California Law.

F. Investment in State Investment Pool

The City is a participant in the Lo
Government Code Section 16429 under the oversight of
investments in LAIF at June 30, 2023 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 02-20-24
264 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 F. Investment in State Investment Pool (Continued)

As of June 30, 2023, the City had $20,996,818 invested in LAIF, which had invested 2.78% 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, 2023, 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 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, 2023.

A. Governmental Activities

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, 2023, the City recognized $1,396,611 in lease revenue and $53,742 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Leases receivable 5,867,414$ 163,676$ (1,585,891)$ 4,445,199$ 1,107,155$ 3,338,044$ Total 5,867,414$ 163,676$ (1,585,891)$ 4,445,199$ 1,107,155$ 3,338,044$ Classification

As of June 30, 2023, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
2024 1,107,155$ 45,932$ 1,153,087$
2025 861,590 38,645 900,235
2026 639,767 32,111 671,878
2027 329,902 27,595 357,497
2028 246,507 24,194 270,701
2029-2033 523,492 90,896 614,388 2034-2038 394,263 51,905 446,168 2039-2043 342,523 15,920 358,443 Total 4,445,199$ 327,198$ 4,772,397$
Redlands Regular Meeting of 02-20-24
265 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 A. Governmental Activities (Continued)

As of June 30, 2023, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2024 1,129,215$
2025 862,259
2026 631,858
2027 331,649
2028 245,400
2029-2033 587,735
2034-2038 257,200
2039-2043 213,366
Total 4,258,682$

B. Business-Type Activities

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, 2023, the City recognized $269,551 in lease revenue and $47,305 in interest revenue.

A summary of changes in lease receivable for the fiscal year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Leases receivable 2,848,805$ -$ (225,028)$ 2,623,777$ 229,628$ 2,394,149$ Total 2,848,805$ -$ (225,028)$ 2,623,777$ 229,628$ 2,394,149$ Classification

As of June 30, 2023, the required payments for these leases, including interest, are:

Year Ending
June 30, Principal Interest Total
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 236,592 29,924 266,516
2029-2033 587,533 106,672 694,205 2034-2038 233,508 79,107 312,615 2039-2043 310,478 51,928 362,406 2044-2048 351,057 16,478 367,535 Total 2,623,777$ 439,481$ 3,063,258$

Redlands Regular Meeting of 02-20-24
266 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 B. Business-Type Activities (Continued)

As of June 30, 2023, the amounts reported as deferred inflows of resources will be recognized as lease revenue as follows:

Year Ending Amortization
June 30, Schedule
2024 269,551$
2025 262,776
2026 242,451
2027 242,451
2028 242,451
2029-2033 654,520
2034-2038 185,005
2039-2043 231,256
2044-2048 204,277
Total 2,534,738$

A. Due To / From Other Funds

At June 30, 2023, the City reported a short term cash flow borrowing of $641,625 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, 2023, advances to/from other funds were as follows:

Advances To Advances From Amount
General Fund Public Facilities Development Special Revenue Fund 7,690,541$ Water Enterprise Fund Public Facilities Development Special Revenue Fund 16,091 Water Enterprise Fund Cemetery Enterprise Fund 613,912
Solid Waste Enterprise Fund Aviation Enterprise Fund 737,613 Total 9,058,157$

The General Fund has advanced the Public Facilities Development Fund $7,690,541 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 Water Enterprise Fund and Solid Waste Enterprise Fund advanced the Cemetery and Aviation Enterprise Funds a total of $1,351,525 to provide funding for capital expenditures.

Redlands Regular Meeting of 02-20-24
267 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 C. Transfers

Interfund transfers during the year ended June 30, 2023, consisted of the following:

Transfers In Transfers Out Amount Purpose
General Fund State Gas Tax Special Revenue Fund 1,820,881$ Capital projects General Fund Traffic Safety Special Revenue Fund 135,579 Program subsidy General Fund Water Enterprise Fund 253,614 Program subsidy General Fund Disposal Enterprise Fund 62,387 Program subsidy General Fund Wastewater Service Enterprise Fund 26,738 Program subsidy General Fund Information Technology Internal Service Fund 7,994 Fixed Asset Transfer Subtotal 2,307,193
Governmental Grants Special Revenue Fund General Fund 97 Program subsidy Emergency Service Special Revenue Fund General Fund 4,152,246 Program subsidy Downtown Redlands Business Area
Special Revenue Fund General Fund 104,064 Program subsidy Parking Authority Special Revenue Fund General Fund 11,463 Program subsidy Landscape Maintenance District
Special Revenue Fund General Fund 7,344 Program subsidy Wastewater Service Enterprise Fund General Fund 21,450 Capital projects Groves Enterprise Fund General Fund 64,850 Capital projects General Liability Self-Insurance Internal Service Fund General Fund 4,576,046 Reserve funding Subtotal 8,937,560
PARIS Special Revenue Fund State Gas Tax Special Revenue Fund 1,594,984 Capital projects PARIS Special Revenue Fund Measure I Special Revenue Fund 588,713 Capital projects PARIS Special Revenue Fund Water Enterprise Fund 102,412 Capital projects PARIS Special Revenue Fund Disposal Enterprise Fund 2,051,020 Capital projects PARIS Special Revenue Fund Wastewater Service Enterprise Fund 17,088 Capital projects Subtotal 4,354,217
Groves Enterprise Fund CFD 2004-1 Assessment Special Revenue Fund 134,122 Capital projects Groves Enterprise Fund Disposal Enterprise Fund 93,877 Capital projects Subtotal 227,999
General Liability Self-Insurance Internal Service Fund Water Enterprise Fund 200,000 Reserve funding General Liability Self-Insurance Internal Service Fund Disposal Enterprise Fund 50,000 Reserve funding General Liability Self-Insurance Internal Service Fund Wastewater Service Fund 200,000 Reserve funding Subtotal 450,000
Water Enterprise Fund Air Quality Management District Special Revenue Fund 645 Program subsidy Water Enterprise Fund Non-Potable Water Enterprise Fund 343,992 Fixed asset transfer General Debt Service Fund Payroll Clearing Internal Service Fund 519,146 Debt service - pension bonds Total 17,140,752$

At June 30, 2023, the City reported a short term cash flow borrowing of $369,064 between the General Fund and the RDA Successor Agency Private Purpose Trust Fund to cover deficit cash positions.

Redlands Regular Meeting of 02-20-24
268 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 A. Governmental Activities

The summary of changes in governmental activities capital assets for the year ended June 30, 2023, is as follows:

Balance
July 1, 2022, Transfers/ Balance
as restated Additions Deletions Reclassifications June 30, 2023 Capital assets, not being depreciated:

Land 40,956,320$ -$ -$ -$ 40,956,320$ Water rights 408,125 - - - 408,125 Right of way 295,304,762 41,800,903 - - 337,105,665 Construction in progress 7,126,967 7,959,471 - (3,681,687) 11,404,751 Total capital assets, not being depreciated 343,796,174 49,760,374 - (3,681,687) 389,874,861 Capital assets, being depreciated:

Infrastructure 262,936,330 9,575,037 (402,771) 250,521 272,359,117 Building and improvements 60,553,082 989,683 - 305,040 61,847,805 Machinery, equipment and vehicles 22,262,850 1,223,496 (684,925) 3,667,486 26,468,907 Total capital assets, being depreciated 345,752,262 11,788,216 (1,087,696) 4,223,047 360,675,829 Accumulated depreciation:

Infrastructure (106,199,699) (5,881,066) 338,906 - (111,741,859) Building and improvements (21,970,444) (2,277,307) - - (24,247,751) Machinery, equipment and vehicles (18,802,369) (1,430,603) 684,925 (541,360) (20,089,407) Total accumulated depreciation (146,972,512) (9,588,976) 1,023,831 (541,360) (156,079,017) Total capital assets, being depreciated, net 198,779,750 2,199,240 (63,865) 3,681,687 204,596,812 Lease assets, being amortized:

Buildings and improvements 53,177 - - - 53,177 Machinery, equipment and vehicles 851,536 384,011 - - 1,235,547 Total lease assets, being amortized 904,713 384,011 - - 1,288,724 Accumulated amortization:

Buildings and improvements (8,863) (8,863) - - (17,726) Machinery, equipment and vehicles (173,849) (269,387) - - (443,236) Total accumulated amortization (182,712) (278,250) - - (460,962) Total lease assets, being amortized, net 722,001 105,761 - - 827,762 Subscription assets being amortized 593,542 - - - 593,542 Less: accumulated amortization - (228,860) - - (228,860) Total subscription assets being amortized, net 593,542 (228,860) - - 364,682 Total capital assets, net 543,891,467$ 51,836,515$ (63,865)$ -$ 595,664,117$

Depreciation and amortization expense were charged to the functions/programs of the governmental activities as follows:

General government 872,180$
Public safety 1,193,953
Culture and recreation 1,246,467
Highway and streets 6,233,943
Internal service funds 549,543
Total depreciation/amortization expense 10,096,086$

Redlands Regular Meeting of 02-20-24
269 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 B. Business-Type Activities

The summary of changes in business-type activities capital assets for the year ended June 30, 2023, is as follows:

Balance
July 1, 2022, Transfers/ Balance
as restated Additions Deletions Reclassifications June 30, 2023 Capital assets, not being depreciated:

Land 26,667,376$ 1,401,681$ -$ -$ 28,069,057$ Water rights 9,881,460 2,635 - - 9,884,095 Construction in progress 14,225,414 5,655,727 - (11,417,543) 8,463,598 Total capital assets, not being depreciated 50,774,250 7,060,043 - (11,417,543) 46,416,750 Capital assets, being depreciated:

Infrastructure 199,550,139 3,114,536 - 3,101,869 205,766,544 Building and improvements 113,470,547 874,986 - 8,315,674 122,661,207 Machinery, equipment and vehicles 25,081,193 617,771 (1,061,169) (541,360) 24,096,435 Total capital assets, being depreciated 338,101,879 4,607,293 (1,061,169) 10,876,183 352,524,186 Accumulated depreciation:

Infrastructure (90,358,374) (3,544,560) - - (93,902,934) Buildings and improvements (79,492,726) (2,973,893) - - (82,466,619) Machinery, equipment and vehicles (17,424,073) (1,719,654) 1,056,211 541,360 (17,546,156) Total accumulated depreciation (187,275,173) (8,238,107) 1,056,211 541,360 (193,915,709) Total capital assets, being depreciated, net 150,826,706 (3,630,814) (4,958) 11,417,543 158,608,477 Lease assets, being amortized:

Buildings and improvements 53,178 - - - 53,178 Machinery, equipment and vehicles 94,005 473,907 - - 567,912 Total lease assets, being amortized 147,183 473,907 - - 621,090 Accumulated amortization:

Buildings and improvements (8,863) (8,863) - - (17,726) Machinery, equipment and vehicles (20,766) (61,974) - - (82,740) Total accumulated amortization (29,629) (70,837) - - (100,466) Total lease assets, being amortized, net 117,554 403,070 - - 520,624 Subscription assets 107,285 - - - 107,285 Less: accumulated amortization - (55,975) - - (55,975) Total subscription assets, being amortized, net 107,285 (55,975) - - 51,310 Total capital assets, net 201,825,795$ 3,776,324$ (4,958)$ -$ 205,597,161$

Depreciation and amortization expense were charged to the funds of the business-type activities as follows:

Water Fund 4,504,009$
Disposal Fund 1,130,634
Wastewater Fund 2,413,125
Groves Fund 29,943
Non-Potable Water Fund 7,329
Cemetery Fund 56,794
Aviation Fund 223,085
Total depreciation/amortization expense 8,364,919$

Redlands Regular Meeting of 02-20-24
270 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 A. Governmental Activities

A summary of changes in the long-term liabilities of the governmental activities for the year ended June 30, 2023, is as follows:

Balance
July 1, 2022, Debt Debt Balance Due within Due in More
as restated Issued Retired June 30, 2023 One Year Than One Yea r Governmental Activities:

Public borrowings:

Taxable Pension Funding Bonds 6,390,000$ -$ (1,620,000)$ 4,770,000$ 185,000$ 4,585,000$ less: accreted interest (217,044) - 54,522 (162,522) - (162,522) Total taxable pension funding bonds 6,172,956 - (1,565,478) 4,607,478 185,000 4,422,478 Direct borrowings:

Notes payable:

I-Bank Sports Park 1,219,286 - (64,840) 1,154,446 66,882 1,087,564 Finance Purchase Agreements 3,795,681 - (591,561) 3,204,120 564,780 2,639,340 Total notes payable 5,014,967 - (656,401) 4,358,566 631,662 3,726,904 Lease liability 724,361 384,011 (276,265) 832,107 326,272 505,835 Subscription liability 404,423 - (218,994) 185,429 130,269 55,160 Total 12,316,707$ 384,011$ (2,717,138)$ 9,983,580$ 1,273,203$ 8,710,377$ 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 through February 1, 2037. The amount outstanding at June 30, 2023, is $4,770,000.

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

Year Ending
June 30, Principal Interest Total
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 250,000 207,455 457,455 2029-2033 1,630,000 863,610 2,493,610 2034-2037 2,060,000 257,917 2,317,917 Subtotal 4,770,000 2,158,802 6,928,802 Less: accreted interest (162,522) - (162,522) Total 4,607,478$ 2,158,802$ 6,766,280$

Redlands Regular Meeting of 02-20-24
271 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 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, 2023, the outstanding balance of the I-Bank Sports Park Lease Liability balance was $1,154,446.

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

Year Ending
June 30, Principal Interest Total
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 75,715 26,339 102,054
2029-2033 415,891 93,793 509,684
2034-2037 382,405 24,558 406,963
Total 1,154,446$ 272,825$ 1,427,271$

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 finance purchase agreements carry annual interest rates from 2.58 to 8.12 percent with principal and interest payments due bi-annually. The gross value of equipment acquired under finance purchase agreements at June 30, 2023, was $5,193,092, with an accumulated amortization of $1,988,972. The outstanding balance at June 30, 2023, is $3,204,120.

The annual debt service requirements of the finance purchase agreements are as follows:

Year Ending
June 30, Principal Interest Total
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 364,797 36,801 401,598
2029-2032 1,152,214 52,578 1,204,792 Total 3,204,120$ 344,361$ 3,548,481$
Redlands Regular Meeting of 02-20-24
272 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
95 A. Governmental Activities (Continued)

Lease Liability

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 ranging from 0.38 to 0.85 percent.

As of June 30, 2023, the capitalized right-to-use assets related to leases were $1,288,724 and the total lease liability was $832,107, of which $326,272 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements of the lease liability are as follows:

Year Ending
June 30, Principal Interest Total
2024 326,272$ 4,788$ 331,060$
2025 305,731 2,724 308,455
2026 116,969 1,136 118,105
2027 68,798 422 69,220
2028 14,337 208 14,545
Total 832,107$ 9,278$ 841,385$

Subscription Liability

The City has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription periods vary, with initial non-cancellable terms ranging from 2 to 6 years. The calculated interest rates varied ranging from 2.92 percent to 3.01 percent, which is based on the length of the SBITA and date of the agreement.

As of June 30, 2023, the capitalized right-to-use assets related to SBITAs were $593,542 and the total subscription liability was $185,429, of which $130,269 is reported as a current liability representing the amount due within the next fiscal year.

The annual debt service requirements of the subscription liability are as follows:

Year Ending
June 30, Principal Interest Total
2024 130,269$ 5,103$ 135,372$
2025 55,160 1,541 56,701
Total 185,429$ 6,644$ 192,073$

Redlands Regular Meeting of 02-20-24
273 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
96 B. Business-Type Activities

A summary of changes in the long-term liabilities of the business-type activities for the year ended June 30, 2023, is as follows:

Balance
July 1, 2022, Debt Debt Balance Due within Due in More
as restated Issued Retired June 30, 2023 One Year Than One Yea r Business-Type Activities:

Public borrowings:

Bonds payable:

Solid Waste Revenue Bonds, Series 2013A 3,240,000$ -$ (1,580,000)$ 1,660,000$ 1,660,000$ -$ add: unamortized premium 168,353 - (168,353) - - - Total bonds payable 3,408,353 - (1,748,353) 1,660,000 1,660,000 - Direct borrowings:

Notes payable
California Recycled Water Project 1,042,560 - (338,975) 703,585 347,449 356,136 Safe Drinking Water Project 1,629,905 - (347,600) 1,282,305 355,782 926,523 Hinckley Water Treatment Plant Upgrade 6,734,338 - (487,674) 6,246,664 499,951 5,746,713 I-Bank Solid Waste 2,180,871 - (139,553) 2,041,318 143,754 1,897,564 I-Bank City Streets 2,401,368 - (138,273) 2,263,095 142,753 2,120,342 Finance Purchase Agreements 536,927 - (135,372) 401,555 139,400 262,155 Total notes payable 14,525,969 - (1,587,447) 12,938,522 1,629,089 11,309,433 Lease liability 118,959 473,906 (69,458) 523,407 122,801 400,606 Subscription liability 54,067 - (54,067) - - - Total 18,107,348$ 473,906$ (3,459,325)$ 15,121,929$ 3,411,890$ 11,710,039$ Classification

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, 2023, was $1,660,000 with an unamortized premium of $0.

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 $1,702,500, and current year net revenues were $2,902,544.

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

Year Ending
June 30, Principal Interest Total
2024 1,660,000$ 41,500$ 1,701,500$
Total 1,660,000$ 41,500$ 1,701,500$
Redlands Regular Meeting of 02-20-24
274 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
97 B. Business-Type Activities (Continued)

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 through November 30, 2024. The amount outstanding at June 30, 2023, was $703,585.

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

Year Ending
June 30, Principal Interest Total
2024 347,449$ 17,590$ 365,039$
2025 356,136 8,903 365,039
Total 703,585$ 26,493$ 730,078$

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 through January 1, 2027. At June 30, 2023, the City has $1,282,305 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
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 1,282,305$ 60,711$ 1,343,016$
Redlands Regular Meeting of 02-20-24
275 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
98 B. Business-Type Activities (Continued)

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 through July 1, 2034. The outstanding balance at June 30, 2023, is $6,246,664.

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

Year Ending
June 30, Principal Interest Total
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 552,226 100,890 653,116
2029-2033 2,976,783 288,798 3,265,581
2034 641,063 12,053 653,116
Total 6,246,664$ 937,614$ 7,184,278$

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 through August 1, 2034. At June 30, 2023, the outstanding balance of the loan was $2,041,318.

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

Year Ending
June 30, Principal Interest Total
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 161,859 40,902 202,761
2029-2033 885,374 127,288 1,012,662
2034-2035 392,583 11,904 404,487
Total 2,041,318$ 390,329$ 2,431,647$
Redlands Regular Meeting of 02-20-24
276 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
99 B. Business-Type Activities (Continued)

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 through August 1, 2035. At June 30, 2023, the outstanding balance of the loan was $2,263,095.

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

Year Ending
June 30, Principal Interest Total
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 162,172 51,278 213,450
2029-2033 893,166 172,750 1,065,916
2034-2036 608,390 29,987 638,377
Total 2,263,095$ 509,248$ 2,772,343$

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 finance purchase agreements carry annual interest rates from 2.99 to 3.35 percent with principal and interest payments due bi-annually. The asset acquired under the finance purchase agreement is classified as machinery, equipment and vehicles. The gross value of equipment acquired under finance purchase agreements at June 30, 2023, was $787,6210, with an accumulated amortization of $388,066. The outstanding balance at June 30, 2023, is $401,555.

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

Year Ending
June 30, Principal Interest Total
2024 139,400$ 12,120$ 151,520$
2025 143,631 7,999 151,630
2026 118,524 3,544 122,068
Total 401,555$ 23,663$ 425,218$
Redlands Regular Meeting of 02-20-24
277 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
100

B. Business-Type Activities (Continued)

Lease Liability

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 ranging from 0.38 to 0.85 percent.

As of June 30, 2023, the capitalized right-to-use assets related to leases were $621,090 and the total lease liability was $523,407, of which $122,801 is reported as a current liability representing the amount due within the next fiscal year.

Principal and interest payments to maturity are as follows:

Year Ending
June 30, Principal Interest Total
2024 122,801$ 3,870$ 126,671$
2025 124,242 2,872 127,114
2026 115,754 1,874 117,628
2027 106,067 954 107,021
2028 54,543 159 54,702
Total 523,407$ 9,729$ 533,136$

Subscription Liability
The City has entered into subscription-based information technology arrangements (SBITAs) for services related to cloud-based software applications, data storage and management services. Under the terms of these arrangements, the City does not take possession of the software at any time and the vendor provides ongoing services for the software's operation. The subscription period was for 2 years. The calculated interest rates varied ranging from 2.92 percent to 3.01 percent, which is based on the length of the SBITA and date of the agreement.

As of June 30, 2023, the capitalized right-to-use assets related to SBITAs were $107,285 and the total subscription liability was $0.

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, 2023, is as follows:

Balance Debt Debt Balance Due within Due in More
July 1, 2022 Issued Retired June 30, 2023 One Year Than One Year Fiduciary Activities:

Public borrowings:

Tax allocation bonds:

Series 2016A 2,095,000$ -$ (2,095,000)$ -$ -$ -$ Add: unamortized bond premiums 16,295 - (16,295) - - - Series 2016B 405,000 - (405,000) - - - Add: unamortized bond premiums (292) - 292 - - - Total tax allocation bonds 2,516,003 - (2,516,003) - - - Total 2,516,003$ -$ (2,516,003)$ -$ -$ -$ Classification
Redlands Regular Meeting of 02-20-24
278 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
101

C. Fiduciary Funds Private Purpose Trust Funds - Successor Agency to the Redevelopment Agency of the City of Redlands (Continued)

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, 2023, the outstanding principal balance on the bonds is paid off.

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 $2,546,963, and Redevelopment Agency Property Tax Trust Fund distributions were $5,181.

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.

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 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, 2023, was $2,535,000.

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, 2023, was $6,830,000.

Redlands Regular Meeting of 02-20-24
279 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

102

Noncommittal debt amounts issued and outstanding at June 30, 2023 are as follows:

Outstanding
Original Balance
Amount June 30, 2023
CFD 2001-1 Special Tax Bonds (Northwest Development Project) 9,255,000$ 2,535,000$ CFD 2003-1 Special Tax Bonds (Redlands Business Center) 9,545,000 6,830,000 Total 18,800,000$ 9,365,000$

A. Governmental Activities

A summary of changes in the compensated absences balances for the governmental activities for the year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated absences 7,760,175$ 4,605,700$ (4,440,459)$ 7,925,416$ 3,962,708$ 3,962,708$ Classification

Compensated absences in the governmental activities are obligations of the following funds:

Governmental Funds 7,510,618$
Liability Self-Insurance Internal Service Fund 2,804
Information Technology Internal Service Fund 176,714
Workers Compensation
Self-Insurance Internal Service Fund 5,006
Equipment M aintenance Internal Service Fund 67,847
Utility Billing Internal Service Fund 162,427
Total 7,925,416$

Redlands Regular Meeting of 02-20-24
280 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

103

B. Business-Type Activities

A summary of changes in the compensated absences balances for the business-type activities for the year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Compensated absences 1,022,107$ 1,200,253$ (1,157,191)$ 1,065,169$ 532,585$ 532,584$ Classification
Compensated absences in the business-type activities are obligations of the following funds:

Water Fund 502,416$
Disposal Fund 248,136
Wastewater Fund 280,845
Groves Fund 542
Non-Potable Water Fun d 260
Cemetery Fund 32,081
Aviation Fund 889
Total 1,065,169$

Note 10 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 $11,606,913 reported as landfill closure and post closure liability at June 30, 2023, represents the cumulative amount reported to date based on the use of 68.59 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 $5,315,899 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform closure and post closure activities in 2023 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.

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, that is included within the Disposal Enterprise 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, 2023, $8,185,098 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.

Redlands Regular Meeting of 02-20-24
281 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

104

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 June 30, 2023, is presented below:

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

Pension contribution made after measurement date:

CalPERS Miscellaneous 3,772,139$ 2,855,471 6,627,610$ CalPERS Safety 11,063,552 - 11,063,552 Total pension contribution made after measurement date 14,835,691 2,855,471 17,691,162 Projected earnings on pension plan investments in excess of actual earnings:

CalPERS Miscellaneous 4,079,024 3,087,780 7,166,804 CalPERS Safety 16,015,677 - 16,015,677 Total projected earnings on pension plan investments in excess of actual earnings 20,094,701 3,087,780 23,182,481 Change in assumption
CalPERS Miscellaneous 2,164,313 1,638,363 3,802,676 CalPERS Safety 10,226,233 - 10,226,233 Total change in assumption 12,390,546 1,638,363 14,028,909 Difference between expected and actual experience:

CalPERS Miscellaneous - - - CalPERS Safety 3,096,072 - 3,096,072 Total difference between expected and actual experience 3,096,072 - 3,096,072 Adjustment due to difference in proportions
CalPERS Safety 2,972,522 - 2,972,522 Total adjustment due to difference in proportions 2,972,522 - 2,972,522 Total deferred outflows of resources
CalPERS Miscellaneous 10,015,476 7,581,614 17,597,090 CalPERS Safety 43,374,056 - 43,374,056 Total deferred outflows of resources 53,389,532$ 7,581,614$ 60,971,146$ Net pension liabilit y:

CalPERS M iscellaneous 30,393,270$ 23,007,396$ 53,400,666$ CalPERS Safety 101,420,265 - 101,420,265 Total net pens ion liability 131,813,535$ 23,007,396$ 154,820,931$

Redlands Regular Meeting of 02-20-24
282 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

105

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 M iscellaneous 540,277$ 408,984$ 949,261$ Total actual earnings on pension plan investments in excess of projected earnings 540,277 408,984 949,261 Employer contributions in excess of proportionate share of contribution CalPERS Safety 5,257,517 - 5,257,517 Total employer contributions in excess of proportionate share of contribution 5,257,517 - 5,257,517 Total deferred inflows of resources
CalPERS M iscellaneous 540,277 408,984 949,261 CalPERS Safety 5,257,517 - 5,257,517 Total deferred inflows of resources 5,797,794$ 408,984$ 6,206,778$ Pension expense (credit):

CalPERS M iscellaneous 3,952,622$ 2,992,094$ 6,944,716$ CalPERS Safety (294,073) - (294,073) Total net pens ion expenses 3,658,549$ 2,992,094$ 6,650,643$

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 ly 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

Employees Covered
At June 30, 2022, the measurement date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Plans
Active employees 339
Transferred and terminated employees 413
Retired employees and beneficiaries 535
Total 1287

Redlands Regular Meeting of 02-20-24
283 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

106

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 9.090% 9.090%
Final Annual Compensation 1 year 1 year
Miscellaneous Plans

Contributions
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 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.

contributions made for the Plan was as follows:

Miscellaneous Plans
Contributions - employer 6,627,610$

Net Pension Liability
position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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 02-20-24
284 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

107

B. City Miscellaneous Plans (Continued)

Actuarial Assumptions
The total pension liabilities in the June 30, 2021 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

6.90%
improvements using Society of Actuaries Scale BB.

Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

6.90%

2.30%
Varies by Entry Age and Service

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 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 pound (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 02-20-24
285 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

108

B. City Miscellaneous Plans (Continued)

Discount Rate (Continued)
The discount rate used to measure the total pension liability was 6.90% 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 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are website under the GASB 68 Section.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate 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%
(5.90%) Rate (6.90%) (7.90%)
78,958,155$ 53,400,666$ 32,299,402$ 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, 2021 (Valuation Date) 185,310,577$ 157,071,006$ 28,239,571$ Changes in the year:

Service cost 3,969,259 - 3,969,259 Interest on the total pension liabilities 12,856,892 - 12,856,892 Differences between expected and actual experience (1,568,849) - (1,568,849) Changes in assumptions 5,704,014 - 5,704,014 Benefit payments, including refunds of members contributions (10,197,185) (10,197,185) - Contributions - employer - 6,083,423 (6,083,423) Contributions - employee - 1,630,007 (1,630,007) Net investment income - (11,815,363) 11,815,363 Administrative ex penses - (97,846) 97,846 Net changes 10,764,131 (14,396,964) 25,161,095 Balance at June 30, 2022 (Measurement Date) 196,074,708$ 142,674,042$ 53,400,666$ Miscellaneous Plans
Redlands Regular Meeting of 02-20-24
286 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

109
B. City Miscellaneous Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense in the amount of $6,944,716 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. years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2021-22 measurement period is 3.0 years, which was obtained by dividing the total service years of 3,728 (the sum of remaining service lifetimes of the active employees) by 1,224 (the total number of participants: active, inactive, and retired).

At June 30, 2023 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 6,627,610$ -$ Difference between projected and actual
earning on pension plan investments 7,166,804 - Changes in assumptions 3,802,676 - Differences between expected
and actual experience - (949,261) Total 17,597,090$ (949,261)$
Miscellaneous Plans
For the City Miscellaneous Plan, $6,627,610 was reported as deferred outflows of resources related to pensions asurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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,
2024 2,615,560$
2025 2,403,531
2026 490,880
2027 4,510,248
2028 -
Thereafter -
10,020,219$
Deferred Outflows/(Inflows)
of Resources
Pension Plan Fiduciary Net Position
is available in the separately issued CalPERS financial reports.

Redlands Regular Meeting of 02-20-24
287 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

110

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 ly 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

Employees Covered
At June 30, 2022, the measurement date, the following employees were covered by the benefit terms the Plan:

Safety Plans
Active employees 131
Transferred and terminated employees 55
Retired employees and beneficiaries 249
Total 435

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 M onthly for life Monthly for life M onthly 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 25.640% 13.660% 25.640% 13.660% Final Annual Compensation 1 year 1 year 1 year 1 year
Safety Cost-Sharing Plans

Redlands Regular Meeting of 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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C. City Safety Plans (Continued)

Contributions
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 agency cost-sharing plans covered by the Safety risk
the estimated amount necessary to
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, 2023, employer contributions made for the Safety Cost-sharing Plan was as follows:

Safety Plans
Contributions - employer 11,063,552$

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ed as the proportionate share of the net pension liability.

The net pension liability of the Plans is measured as of June 30, 2022, 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, 2021 rolled forward to June 30, 2022 using standa ortion of the net pension liability was ributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

As of June 30, 2023, 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: 6/30/21 (Valuation date) 302,527,702$ 244,268,089$ 58,259,613 Balance at: 6/30/22 (Measurement date) 324,559,447 223,139,182 101,420,265 Net Changes during 2021-2022 22,031,745 (21,128,907) 43,160,652 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.

share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation ) determines the net pe
at the valuation date.

Redlands Regular Meeting of 02-20-24
289 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

112

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, 2022). 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, sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2021-22).

are also calculated at the valuation date.

vidual TPL and FNP as of the valuation date from (3) by

to the risk pool TPL generated in (2) multiplied by the asurement 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.

difference between the TPL and FNP calculated in (5).

r the Safety Plan as of June 30, 2022 and 2021 was as
follows:

Proportion June 30, 2021 1.66006%
Proportion June 30, 2022 1.47594%
Change - Increase (Decrease) -0.18412%
For the year ended June 30, 2023, the City recognized pension credit in the amount of $294,073 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, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (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 b decrementing due to an event other than receiving a cash refund.

Redlands Regular Meeting of 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

113

C. City Safety Plans (Continued)

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2023, 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 11,063,552$ -$ Difference between projected and actual earning on
pension plan investments 16,015,677 - Adjustment due to differences in proportions 2,972,522 - Changes in assumptions 10,226,233 - Difference between actual and expected experience 3,096,072 - Difference between employer's actual contributions
and proportionate share of contributions - (5,257,517) Total 43,374,056$ (5,257,517)$
Safety Plans

For the City Safety Plan, $11,063,552 was reported as deferred outflows of resources related to pensions resulting date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. 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
2024 7,808,195$
2025 6,095,554
2026 3,379,471
2027 9,769,767
2028 -
Thereafter -
27,052,987$

Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. Both the June 30, 2022 and the June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions:

Redlands Regular Meeting of 02-20-24
291 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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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 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

6.90%

2.30%
Varies by Entry Age and Service

6.90%
improvements using Society of Actuaries Scale BB.

All other actuarial assumptions used in the June 30, 2021 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

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed 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 ed 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 02-20-24
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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C. City Safety Plans (Continued)

Discount Rate (Continued)
Asset Class
New Strate gic 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 2.30% was used for this period. 2 An expected inflation of 2.30% was used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate net pension liability for the City Safety Plan, calculated using the discount rate for the City Safety Plan, as well as 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%
(5.90%) Rate (6.90%) (7.90%)
146,241,417$ 101,420,265$ 64,789,099$ Plan's Aggregate Net Pension Liability/(Asset)

Pension Plan Fiduciary Net Position
Detailed information about each pension ble in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2023, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

Redlands Regular Meeting of 02-20-24
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date 4,035,299$ 1,305,915$ 5,341,214$ Difference between expected and actual experience 3,473,186 1,124,002 4,597,188 Changes in assumptions 31,071,355 10,055,400 41,126,755 Total deferred outflows of resources 38,579,840$ 12,485,317$ 51,065,157$ Total OPEB liability:

Total OPEB liability 102,959,850$ 44,000,415$ 146,960,265$ Total OPEB liability 102,959,850$ 44,000,415$ 146,960,265$ Deferred inflows of Resources:

Difference between expected and actual experience 7,033,959$ 1,944,076$ 8,978,035$ Changes in assumptions 37,422,618 10,343,027 47,765,645 Total deferred inflows of resources 44,456,577$ 12,287,103$ 56,743,680$ OPEB Expense 9,583,273$ 2,213,147$ 11,796,420$

B. General Information about OPEB
Plan Description
, 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.

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-as- you 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. 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 02-20-24
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City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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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 02-20-24
295 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

118

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
asured as of June 30, 2022. 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, 2023 was $146,960,265.

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.

4.09%

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 02-20-24
296 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

119

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 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, 2021 (Measurement Date) 201,915,922$ Changes Recognized for the Measurement Period:

Service Cost 6,288,802
Interest on the total OPEB liability 4,504,364
Difference between expected and actual experience (9,975,595) Changes of assumptions (50,693,723)
Benefit payments (5,079,505)
Net Changes during July 1, 2021 to June 30, 2022 (54,955,657) Balance at June 30, 2022 (Measurement Date) 146,960,265$

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 th be if it were calculated using a discount rate that is 1-percentage-point lower (3.09 percent) or 1-percentage- point higher (5.09 percent) than the current discount rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(3.09%) Rate (4.09%) (5.09%)
170,842,296$ 146,960,265$ 127,806,516$ Plan's Total OPEB Liabilit y

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 th 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%
125,167,805$ 146,960,265$ 174,730,174$ Plan's Total OPEB Liability

Redlands Regular Meeting of 02-20-24
297 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

120

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, 2023, the City recognized OPEB expense of $11,796,420. At June 30, 2023, 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 5,341,214$ -$ Difference between expected and actual experience 4,597,188 (8,978,035) Changes of assumptions 41,126,755 (47,765,645) Total 51,065,157$ (56,743,680)$

The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five- year 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, 2021, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.

For the OPEB Plan, $5,341,214 was reported as deferred outflows of resources related to OPEB resulting from e measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts 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
2024 1,003,254$
2025 1,236,242
2026 1,358,168
2027 212,961
2028 (898,831)
Thereafter (13,931,531)
(11,019,737)$

Redlands Regular Meeting of 02-20-24
298 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

121

A. Coverage

On June 30, 2023, and throughout 2022-2023, 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 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, 2023, $4,306,893 and $11,219,000 have been
claims, respectively. All funds of the City participate in the worker's compensation program and make payments 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 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, 2023, 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
2023 2,595,507$ 2,374,997$ (663,611)$ 4,306,893$ 2,153,447$ 2,153,446$ 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 Workers' Compensation
2023 12,171,624$ 185,188$ (1,137,812)$ 11,219,000$ 5,609,500$ 5,609,500$ 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

Redlands Regular Meeting of 02-20-24
299 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

122
Note 14 Fund Balance and Net Position

A. Fund Balance/Net Position Deficits

At June 30, 2023 the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(88,121,189).

At June 30, 2023, the following funds had a fund balance (deficit) or unrestricted net position (deficit):

Fund Fund Type Deficit
Public Facilities Development Fund Special Revenue Fund (6,161,839)$ Governmental Grants Fund Special Revenue Fund (1,077,326) Transportation Development Act Fund Special Revenue Fund (680,745) Disposal Fund Enterprise Fund (1,521,429)
General Liability Self-Insurance Fund Internal Service Fund (4,977,597) Workers' Compensation Self-Insurance Fund Internal Service Fund (8,243,351) Utility Billing Fund Internal Service Fund (3,161,791)

Special Revenue Funds
A net deficit of $6,161,839 exists in the Public Facilities Development fund due to unpaid advances owed to the General Fund for debt service payments made on the
development impact fees will be used to repay this advance and reduce the fund deficit.

A net deficit of $1,077,326 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 $680,745 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 $1,560,896 exists in the Disposal Fund ementation of GASB Statements No. 68 and 75, which required the reporti
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 $4,977,597 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.

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 02-20-24
300 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

123
Note 14 Fund Balance and Net Position (Continued)

A. Fund Balance/Net Position Deficits (Continued)

A net deficit of $3,161,791 exists in the Utility Billing Fund. This f implementation of GASB Statement No. 68 and 75 which
her 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, 2023, expenditures exceeded appropriations in the following funds by function/department:

Excess Expenditures
Fund Function over Appropriations
General Fund General government:

City council 28,371$
Facilities 83,372
Animal services 76,406
Library 211,382
Public Facilities Development Special Revenue Fund Debt service:

Interest and fiscal charges 178,244
Open Space Special Revenue Fund Culture and recreation 1,782 Parking Authority Special Revenue Fund General government 195 Asset Forfeiture Special Revenue Fund Capital outlay 7,994 Park and Open Space Special Revenue Fund Culture and recreation 5,888 Capital outlay 2,392
Freeway Interchanges Special Revenue Fund Highway and streets 38,533 Capital outlay 2,224,016
CFD 2004-1 Assessment Special Revenue Fund General government 52,838 Public Art Special Revenue Fund Culture and recreation 800

Redlands Regular Meeting of 02-20-24
301 of 923
City of Redlands
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023

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At June 30, 2023, the City reports the following fund balance classifications:

Public Facilities Governmental
Development Grants Non-major
General Special Revenue Special Revenue Governmental
Fund Fund Fund Funds Total
Nonspendable
Prepaid items 524,050$ -$ 528,897$ 15,730$ 1,068,677$ Endowment - non-expendable - - - 30,200 30,200 Advances to other funds 7,690,541 - - - 7,690,541 Total nonspendable 8,214,591 - 528,897 45,930 8,789,418 Restricted
Donations 595,902 - - - 595,902 PEG Fees 664,781 - - - 664,781 Public safety - - - 560,656 560,656 Police programs and equipment - - - 1,699,668 1,699,668 Public art - - - 9,411 9,411 Street reconstruction/improvement projects - - - 6,454,361 6,454,361 Debt service - - 559,509 559,509 Storm drain improvements - - - 2,545,321 2,545,321 Endowment - expendable - - - 29,393 29,393 CFD assessment - - - 103,264 103,264 Total restricted 1,260,683 - - 11,961,583 13,222,266 Committed
Stabilization agreement 9,794,310 - - - 9,794,310 Park and open space acquisition/improvement - - - 4,297,144 4,297,144 Public benefit: parks, recreation, trails,
open space, and improvements 2,698,388 - - - 2,698,388 Street reconstruction/improvement projects - - - 7,596,206 7,596,206 Total committed 12,492,698 - - 11,893,350 24,386,048 Assigned
Public works 2,353,968 - - - 2,353,968 Capital projects 33,346,831 - - 2,325,558 35,672,389 Total assi gned 35,700,799 - - 2,325,558 38,026,357 Unassigned (deficit) 53,289,070 (6,161,839) (1,606,223) (680,895) 44,840,113 Total fund balances (deficit) 110,957,841$ (6,161,839)$ (1,077,326)$ 25,545,526$ 129,264,202$

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Note 16

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 389,874,861$ 46,416,750$ Capital assets, depreciable/amortizable, net 205,789,256 159,180,411 Long-term debt:

I-Bank Sports Park (1,154,446) -
Finance purchase agreement (3,204,120) (401,555) Lease liability (832,107) (523,407)
Subscription liability (185,429) -
Solid Waste Revenue Bonds, Series 2013A - (1,660,000) California Recycled Water Project - (703,585) Safe Drinking Water Project - (1,282,305) Hinckley Water Treatment Plant Upgrade - (6,246,664) I-Bank Solid Waste - (2,041,318) I-Bank City Streets - (2,263,095) Total net investment in capital assets 590,288,015$ 190,475,232$

Note 17 t for Assets of Former Redevelopment

On December 29, 2011, the California Supreme Court upheld 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 til 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.

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Note 17 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 2024.

Note 18

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 de 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 provi 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 ex 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, 2023, under this program the City had abatements of sales tax totaling $122,655. Pursua 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 19 Endowments

Simonds Endowment

The amount of net appreciation available for expenditure in the Simonds Endowment Fund is $27,455. This available amount is reflected as fund balance. The endowment corpus is $10,000 and is reflected as nonspendable 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. St ch of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for 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.

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Note 19 Endowments (Continued)

Pauline Stancliff Memorial Trust
The amount of net appreciation available for expenditure in the Pauline Stancliff Memorial Trust Fund is $1,938. This available amount is reflected as fund balance. The endowment corpus is $20,200 and is reflected as nonspendable fund balance. In California, Endowments are subject to the requirements of the Uniform Prudent Management of Institutional Funds Act (UPMIFA), specifically Cal. Probate spend the net appreciation provides that the City may appr determines is prudent for the uses, benefits, purposes, and duration for which th 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 20
Prior Period Adjustments

A. Government-Wide Financial Statements

The beginning fund balance at July 1, 2022 of the Governmental-Wide Financial Statements was restated as follows:

Governmental Business-Type
Activities Activities
Net position, as previously reported, at July 1, 2022 434,611,881$ 220,865,136$ To implement GASB 96 Subscription-based
information technology arrangements (SBITAs) 189,119 53,218 Net position at July 1, 2022, as restated 434,801,000$ 220,918,354$

B. Proprietary Fund Financial Statements

The beginning fund balance at July 1, 2022 of the Proprietary Fund Financial Statements was restated as follows:

Information
Technology Water
Internal Service Enterprise
Fund Fund
Net position (deficit), as previously reported, at July 1, 2022 (1,909,725)$ 145,387,357$ To implement GASB 96 Subscription-based
information technology arrangements (SBITAs) 189,119 53,218 Net position (deficit) at July 1, 2022, as restated (1,720,606)$ 145,440,575$

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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 mana abilities, if any, resulting from such claims and proceedings will not materially affect the financial position of the City.

B.

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. Acco 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.

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D. Contractual Commitments

The City has capital contractual commitments for which funds have been encumbered as of June 30, 2023.

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

The following contractual construction commitments existed at June 30, 2023:

Project Title Commitment
General Fund
2022 Alley Paving Improvements - General Fund Portion 1,582,000$ 2022 Citywide Sidewalk & ADA Ramp Replacement 392,787
EOC Office Reconfiguration 115,624
Fire Station 262 Architectural Design 47,977
GapVax Combination Jet/Vac Truck for Streets 657,806
Joslyn Senior Center Renovation - General Fund Portion 13,674 Network Infrastructure Equipment for 300 State St. 30,955 Prospect Park Lighting 361,173
Redlads Bowl Improvements 719,768
Rectangular Rapid Flashing Beacon Signs & In-Pavement Crosswalk System 72,242 Senior Center Outdoor Dining Construction - General Fund Portion 1,821 Total for General Fund 3,995,827
Governmental Grants Special Revenue Fund
Architectural Design of Metal Shelter for HHW Site 12,420 Joslyn Senior Center Renovation - Grant Portion 248,410 Senior Center Outdoor Dining Construction - Grant Portion 11,862 Total for Governmental Grants Special Revenue Fund 272,692 Water Fund
2022 CIP Water Pipeline Replacement 3,035,970
Automated M etering Infrastructure 783,357
Peterbilt CNG Truck with Hydraulic Telescopic Crane - Water Portion 265,456 PMP 2022 Street Resurfacing Project - Water Fund Portion 176,637 Tate Water Treatment Plant Influent Line Replacement 326,594 Water SCADA System Upgrade 4,727,968
Total for Water Fund 9,315,982
Solidwaste Fund
Solidwaste Vehicles 3,432,041
Total for Solidwaste Fund 3,432,041
Wastewater Fund
2022 CIP Sewer Pipeline Replacement 3,314,268
Design services for Sewer Treatment Facility 30,859
Peterbilt CNG Truck with Hydraulic Telescopic Crane - Wastewater Portion 265,456 Thermo Scientific Sorvall Package 9,774
Total for Wastewater Fund 3,620,357

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D. Contractual Commitments (Continued)

Project Title Commitment
Non-Major Funds
2022 Alley Paving Improvements - PARIS Fund Portion 500,000 Design & Construction M gmnt of a Public Safety Facility - Safety/City Hall Replacement 2,127,993 Law Enforcement Drones - Asset Forfeiture Fund 22,087
PMP 2022 Street Resurfacing Project - PARIS Fund Portion 3,109,734 Redlands Passenger Rail Project Platform Construction-Air Quality Improvement Fund 121,642 Traffic Signal Improvements Project - Traffic Signals Fund 279,704 WWTP Recycled Water Reservoir Project - Nonpotable Water Fund 337,586 Total for Non-Major Funds 6,498,746
Internal Service Funds
Dell Technologies-Poweredge R750 Enterprise Server 30,793 Utility Billing Wall Insert Kiosk 43,171
Total for Interal Service Funds 73,964
Total for City 27,209,609$

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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
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Budgetary Information
For the Year Ended June 30, 2023
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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 in accordance with accounting principles generally accepted in the United States of America. 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 function 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.

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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 36,699,757$ 36,699,757$ 38,511,905$ 1,812,148$ Sales and use taxes 46,099,791 46,099,791 48,632,853 2,533,062 Other taxes 2,165,473 2,165,473 3,109,696 944,223 Franchise fees 2,595,483 2,595,483 4,487,821 1,892,338 Licenses and permits 7,815,609 7,815,609 8,862,824 1,047,215 Fines and forfeitures 135,000 135,000 241,830 106,830 Intergovernmental 731,500 731,500 453,475 (278,025) Charges for services 7,060,722 7,060,722 7,420,190 359,468 Investment income (loss) 200,000 200,000 327,573 127,573 Rents and leases 2,037,396 2,037,396 1,821,671 (215,725) Miscellaneous 1,409,799 1,953,499 2,391,443 437,944 Total revenues 106,950,530 107,494,230 116,261,281 8,767,051 EXPENDITURES:

Current:

General government
City council 556,249 556,249 584,620 (28,371) City clerk 596,699 596,699 370,465 226,234 City manager 7,282,038 7,466,693 5,964,192 1,502,501 Finance 2,752,726 3,011,412 2,566,262 445,150 City attorney 775,452 775,452 744,620 30,832 Development services 5,014,691 5,863,625 4,563,886 1,299,739 Facilities 5,142,453 5,778,174 5,861,546 (83,372) Public works engineering 971,058 1,563,372 1,057,704 505,668 Public safety
Police 34,371,836 35,019,721 31,175,376 3,844,345 Fire 17,750,868 18,103,567 16,216,275 1,887,292 Animal Services 797,656 842,656 919,062 (76,406) Culture and recreation
Community services 1,976,583 1,997,144 1,771,204 225,940 Parks 5,057,641 5,331,925 5,389,231 (57,306) Highway and streets
Electrical and streets 4,336,040 5,336,383 5,290,295 46,088 Library 2,913,709 2,913,708 3,125,090 (211,382) Budgeted Amounts

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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
Capital outlay 6,258,113 14,528,131 5,650,480 8,877,651 Debt service:

Principal 353,590 3,479,509 860,759 2,618,750 Interest and fiscal charges 1,542,270 1,776,570 386,241 1,390,329 Total expenditures 98,449,672 114,940,990 92,497,308 22,443,682 REVENUES OVER (UNDER) EXPENDITURES 8,500,858 (7,446,760) 23,763,973 31,210,733 OTHER FINANCING SOURCES (USES):

Inception of lease liability - - 384,011 384,011 Transfers in 2,636,093 2,636,093 2,307,193 (328,900) Transfers out (8,280,758) (8,508,458) (8,937,560) (429,102) Total other financing sources (uses) (5,644,665) (5,872,365) (6,246,356) (373,991) Net change in fund balance 2,856,193$ (13,319,125)$ 17,517,617 30,836,742$ FUND BALANCE:

Beginning of year 93,440,224
End of year 110,957,841$
Budgeted Amounts

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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 1,120,000$ 1,120,000$ 283,772$ (836,228)$ Total revenues 1,120,000 1,120,000 283,772 (836,228) EXPENDITURES:

Current:

General government 20,500 20,500 5,675 14,825 Debt service:

Interest and fiscal charges - - 178,244 (178,244) Total expenditures 20,500 20,500 183,919 (163,419) REVENUES OVER (UNDER) EXPENDITURES 1,099,500 1,099,500 99,853 (999,647) Net change in fund balance 1,099,500$ 1,099,500$ 99,853 (999,647)$ FUND BALANCE (DEFICIT):

Beginning of year (6,261,692)
End of year (6,161,839)$
Budgeted Amounts

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Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental -$ 25,703,711$ 4,545,209$ (21,158,502)$ Investment income (loss) - - 38 38 Total revenues - 25,703,711 4,545,247 (21,158,464) EXPENDITURES:

Current:

General government - 15,318,067 2,688,212 12,629,855 Public safety - 616,380 153,948 462,432 Culture and recreation - 74,242 23,493 50,749 Capital outlay - 9,110,597 2,425,421 6,685,176 Total expenditures - 25,119,696 5,291,074 19,828,622 REVENUES OVER (UNDER) EXPENDITURES - 584,015 (745,827) (1,329,842) OTHER FINANCING SOURCES (USES):

Transfers in - - 97 97 Total other financing sources (uses) - - 97 97 Net change in fund balance -$ 584,015$ (745,730) (1,329,745)$ FUND BALANCE (DEFICIT):

Beginning of year (331,596)
End of year (1,077,326)$
Budgeted Amounts

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Measurement period, year ended 6/30/2022 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 3,969,259$ 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 12,856,892 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 (1,568,849) 247,796 270,034 419,589 529,928 285,453 (1,148,342) 334,519 - Changes in assumptions 5,704,014 - - - (874,625) 8,600,283 - (2,403,446) - Changes in benefit terms - - - - - - - - - Benefit payments, including refunds of employee
contributions (10,197,185) (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 10,764,131 6,698,842 6,368,932 6,503,887 5,478,110 14,520,852 4,242,595 3,394,027 5,458,065 Total pe nsion liability - beginning 185,310,577 178,611,735 172,242,803 165,738,916 160,260,806 145,739,954 141,497,359 138,103,332 132,645,267 Total pension liability - ending (a) 196,074,708$ 185,310,577$ 178,611,735$ 172,242,803$ 165,738,916$ 160,260,806$ 145,739,954$ 141,497,359$ 138,103,332$ Plan fiduciary net position
Contributions - employer 6,083,423 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 1,630,007 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 expens (11,815,363) 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 (10,197,185) (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 - - - 283 (343,451) - - - - Other (97,846) (130,119) (178,655) (86,841) (180,708) (158,865) (67,266) (121,971) - Net change in plan fiduciary net position (14,396,964) 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 157,071,006 130,256,891 126,727,708 121,690,831 115,966,940 107,600,365 110,371,919 111,548,409 97,842,061 Plan fiduciary net position - e nding (b) 142,674,042$ 157,071,006$ 130,256,891$ 126,727,708$ 121,690,831$ 115,966,940$ 107,600,365$ 110,371,919$ 111,548,409$ Net pension liability - ending (a)-(b) 53,400,666$ 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 72.77% 84.76% 72.93% 73.58% 73.42% 72.36% 73.83% 78.00% 80.77% 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$ 16,826,776$ Net pension liability as a percentage of
covered payroll 227.71% 124.03% 213.66% 205.75% 222.06% 219.28% 201.23% 177.37% 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).

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Measurement period, year ended 6/30/2022 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 1.475939% 1.660061% 0.809500% 0.790200% 0.779400% 0.746000% 0.748700% 0.737700% 0.689500% Plan's proportionate share of
the net pension liability 101,420,265$ 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 17,938,242$ 17,415,769$ 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 565.39% 334.52% 502.66% 469.78% 504.26% 498.95% 443.60% 353.04% 300.20% Plan's fiduciary net position 223,139,182$ 244,268,089$ 200,216,677$ 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 68.75% 80.74% 69.45% 70.70% 71.50% 71.11% 72.67% 77.91% 78.86% Plan's proportionate share of aggregate
employer 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$ 4,977,335$ 1 Information only presented from the implementation year Safety Plan

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Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 1 Contractually determined
contribution (actuarially determined) 6,627,610$ 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 (6,627,610) (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 24,154,413$ 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 27.44% 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, 2023:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
1 Information only presented from the implementation year Miscellaneous Plan

2.50%
Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.

For details, see June 30, 2020 Funding Valuation Report Entry Age Normal
T he actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2020 funding valuation report.

T he 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 MP-2016 published by the Society of Actuaries.

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

7.00% net of pension plan investment and administrative expenses.

2.750%
Varies by entry age and service

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City of Redlands
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2023
141
Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 1 Contractually determined
contribution (actuarially determined) 11,063,552$ 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 (11,063,552) (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 18,476,389$ 17,938,242$ 17,415,769$ 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 59.88% 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, 2023:

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 T he 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 MP-2016 published by the Society of Actuaries.

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

Safety Plan
Varies by entry age and service

7.00% net of pension plan investment and administrative expenses.

T he actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2020 funding valuation report.

Entry Age Normal
For details, see June 30, 2020 Funding Valuation Report Actuarial Value of Assets. For details, see June 30, 2020 Funding Valuation Report.

2.50%

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City of Redlands
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Total OPEB Liability and Related Ratios For the Year Ended June 30, 2023
142

Measurement period, year ending: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 1 Total OPEB liability
Service cost 6,288,802$ 4,405,809$ 4,371,866$ 4,540,301$ 4,647,747$ 4,517,859$ Interest 4,504,364 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 (9,975,595) 3,545,600 139,016 4,588,088 - - Changes of assumptions (50,693,723) 42,967,302 14,314,382 (4,153,914) (2,485,196) - Benefit payments, including refunds
of member contributions (5,079,505) (4,960,733) (4,882,065) (4,526,765) (4,525,686) (4,050,613) Net change in total OPEB liability (54,955,657) 49,733,977 18,197,352 5,192,412 2,134,132 4,818,857 Total OPEB liability - beginning 201,915,922 152,181,945 133,984,593 128,792,181 126,658,049 121,839,192 Total OPEB liability - ending (a) 146,960,265$ 201,915,922$ 152,181,945$ 133,984,593$ 128,792,181$ 126,658,049$ OPEB fiduciary net position
Contributions - employer 5,079,505$ 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 (5,079,505) (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) 146,960,265$ 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% 0.00% Covered-employee payroll 35,920,063$ 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 409.13% 577.58% 426.01% 394.36% 410.03% 395.04% 1 Information only presented from the implementation year

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SUPPLEMENTARY INFORMATION
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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.

State Gas Tax Fund
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
-
cent 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 law enforcement services.

Park & Open Space 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
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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 right- ofway 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 includin
g projects financed by State grant activity.

Pavement Accelerated Repair Implementation Strategy (PARIS) Fund - 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 Fund - This fund is used to account for the receipt and expenditure of Transportation Development Act revenue received by the City.

Capital Projects Funds:

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

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 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)
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146
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Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 169,394$ 297,338$ -$ 479,530$ -$ Restricted cash and investments - - - - - Accounts receivable, net - 11,859 - - - Taxes receivable 14,200 - 446,429 - - Lease receivable - - - - - Due from other governments - - - 24,208 13,860 Prepaid items 150 - - - - Total assets 183,744$ 309,197$ 446,429$ 503,738$ 13,860$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 9,729$ -$ -$ 293,015$ 2,127$ Accrued payroll 174,015 - - - - Deposits payable - - - - - Unearned revenues - - - - - Due to other funds - - - - - Total liabilities 183,744 - - 293,015 2,127 Deferred inflows of resources:

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

Nonspendable 150 - - - - Restricted - 309,197 446,429 210,723 11,733 Committed - - - - - Assigned - - - - - Unassigned (deficit) (150) - - - - Total fund balances - 309,197 446,429 210,723 11,733 Total liabilities, deferred
inflows of resources,
and fund balances 183,744$ 309,197$ 446,429$ 503,738$ 13,860$ (Continued)
City of Redlands
Special Revenue Funds
For the Year Ended June 30, 2023
Combining Balance Sheet
Non-Major Governmental Funds
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Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
ASSETS
Cash and investments 1,762,743$ 2,261,887$ 16,637$ 12,608$ 1,605,801$ Restricted cash and investments - - - - - Accounts receivable, net - - 224 1,289 - Taxes receivable 469,239 - - - - Lease receivable - - - 110,446 - Due from other governments - - - - - Prepaid items - - - - 15,580 Total assets 2,231,982$ 2,261,887$ 16,861$ 124,343$ 1,621,381$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ 16,861$ 1,883$ -$ Accrued payroll - - - - - Deposits payable - - - 12,151 10,256 Unearned revenues - - - 644 - Due to other funds - - - - - Total liabilities - - 16,861 14,678 10,256 Deferred inflows of resources:

Unavailable revenue 162,857 - - - - Deferred inflows related to leases - - - 108,807 - Total deferred inflows
of resources 162,857 - - 108,807 - Fund Balances:

Nonspendable - - - - 15,580 Restricted 2,069,125 - - 858 1,595,545 Committed - 2,261,887 - - - Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 2,069,125 2,261,887 - 858 1,611,125 Total liabilities, deferred
inflows of resources,
and fund balances 2,231,982$ 2,261,887$ 16,861$ 124,343$ 1,621,381$ (Continued)
City of Redlands
Combining Balance Sheet (Continued)
Special Revenue Funds
For the Year Ended June 30, 2023
Non-Major Governmental Funds
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Supplemental
Law Enforcement Park and Arterial Street Traffic Freeway Grant Open Space Construction Signals Interchanges
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 544,279$ 2,035,257$ 4,664,288$ 1,474,417$ 2,055,393$ Restricted cash and investments - - - - - Accounts receivable, net - - - - - Taxes receivable - - - - - Lease receivable - - - - - Due from other governments - - - - - Prepaid items - - - - - Total assets 544,279$ 2,035,257$ 4,664,288$ 1,474,417$ 2,055,393$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 54,326$ -$ 25,033$ 186,723$ -$ Accrued payroll - - - - - Deposits payable - - 28,554 357,582 - Unearned revenues 397,563 - - - - Due to other funds - - - - - Total liabilities 451,889 - 53,587 544,305 - Deferred inflows of resources:

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

Nonspendable - - - - - Restricted 92,390 - - - - Committed - 2,035,257 4,610,701 930,112 2,055,393 Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 92,390 2,035,257 4,610,701 930,112 2,055,393 Total liabilities, deferred
inflows of resources,
and fund balances 544,279$ 2,035,257$ 4,664,288$ 1,474,417$ 2,055,393$ (Continued)
City of Redlands
Special Revenue Funds
Combining Balance Sheet (Continued)
For the Year Ended June 30, 2023
Non-Major Governmental Funds
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Street Landscape
Lighting CFD 2004-1 Maintenance Local
District #1 Assessment District Transportation PARIS
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 40,438$ 126,255$ 187$ 227,977$ 5,221,635$ Restricted cash and investments - - - - - Accounts receivable, net - - - - - Taxes receivable 352 4,715 247 - - Lease receivable - - - - - Due from other governments - - - - - Prepaid items - - - - - Total assets 40,790$ 130,970$ 434$ 227,977$ 5,221,635$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable -$ 7,710$ 81$ -$ 1,430,258$ Accrued payroll 912 4,996 353 - 18,146 Deposits payable - 15,000 - 35,074 27,327 Unearned revenues - - - - - Due to other funds - - - - - Total liabilities 912 27,706 434 35,074 1,475,731 Deferred inflows of resources:

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

Nonspendable - - - - - Restricted 39,878 103,264 - 192,903 3,745,904 Committed - - - - - Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 39,878 103,264 - 192,903 3,745,904 Total liabilities, deferred
inflows of resources,
and fund balances 40,790$ 130,970$ 434$ 227,977$ 5,221,635$ (Continued)
City of Redlands
Special Revenue Funds
For the Year Ended June 30, 2023
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
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Debt Service
Funds
Transportation Safety Hall
Development Replacement Storm General
Public Art Act Capital Projects Drain Debt Service
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 9,411$ -$ 2,432,565$ 2,563,488$ 299,920$ Restricted cash and investments - - - - 257,351 Accounts receivable, net - - - - - Taxes receivable - - - - 2,238 Lease receivable - - - - - Due from other governments - 680,838 - - - Prepaid items - - - - - Total assets 9,411$ 680,838$ 2,432,565$ 2,563,488$ 559,509$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable -$ 39,120$ 107,007$ 18,167$ -$ Accrued payroll - - - - - Deposits payable - - - - - Unearned revenues - - - - - Due to other funds - 641,625 - - - Total liabilities - 680,745 107,007 18,167 - Deferred inflows of resources:

Unavailable revenue - 680,838 - - - Deferred inflows related to leases - - - - - Total deferred inflows
of resources - 680,838 - - - Fund Balances:

Nonspendable - - - - - Restricted 9,411 - - 2,545,321 559,509 Committed - - - - - Assigned - - 2,325,558 - - Unassigned (deficit) - (680,745) - - - Total fund balances 9,411 (680,745) 2,325,558 2,545,321 559,509 Total liabilities, deferred
inflows of resources,
and fund balances 9,411$ 680,838$ 2,432,565$ 2,563,488$ 559,509$ Non-Major Governmental Funds
For the Year Ended June 30, 2023
Capital Projects FundsSpecial Revenue Funds
Combining Balance Sheet (Continued)
City of Redlands
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Pauline Total
Simonds Stancliff Non-Major
Endowment Memorial Governmental
Fund Trust Fund Funds
ASSETS
Cash and investments 37,455$ 22,138$ 28,361,041$ Restricted cash and investments - - 257,351 Accounts receivable, net - - 13,372 Taxes receivable - - 937,420 Lease receivable - - 110,446 Due from other governments - - 718,906 Prepaid items - - 15,730 Total assets 37,455$ 22,138$ 30,414,266$

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ 2,192,040$ Accrued payroll - - 198,422 Deposits payable - - 485,944 Unearned revenues - - 398,207 Due to other funds - - 641,625 Total liabilities - - 3,916,238 Deferred inflows of resources:

Unavailable revenue - - 843,695 Deferred inflows related to leases - - 108,807 Total deferred inflows
of resources - - 952,502 Fund Balances:

Nonspendable 10,000 20,200 45,930 Restricted 27,455 1,938 11,961,583 Committed - - 11,893,350 Assigned - - 2,325,558 Unassigned (deficit) - - (680,895) Total fund balances 37,455 22,138 25,545,526 Total liabilities, deferred
inflows of resources,
and fund balances 37,455$ 22,138$ 30,414,266$ (Continued) (Concluded)
City of Redlands
For the Year Ended June 30, 2023
Non-Major Governmental Funds
Permanent Funds
Combining Balance Sheet (Continued)
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Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
REVENUES:

Property taxes 1,127,580$ -$ -$ -$ -$ Sales and use taxes - - - - - Fines and forfeitures - - - - 138,718 Intergovernmental - - 3,471,665 119,218 - Charges for services - 156,464 - - - Investment income (loss) - - - 1,039 - Rents and leases - - - - - Miscellaneous 5,129 - - - - Total revenues 1,132,709 156,464 3,471,665 120,257 138,718 EXPENDITURES:

Current:

General government - - - - - Public safety 5,284,955 140,787 - - - Culture and recreation - - - - - Highway and streets - - - 6,488 - Capital outlay - - - 293,015 - Debt service:

Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 5,284,955 140,787 - 299,503 -

REVENUES OVER
(UNDER) EXPENDITURES (4,152,246) 15,677 3,471,665 (179,246) 138,718 OTHER FINANCING SOURCES (USES):

Transfers in 4,152,246 - - - - Transfers out - - (3,415,865) (645) (135,579) Total other financing sources (uses) 4,152,246 - (3,415,865) (645) (135,579) NET CHANGES IN FUND BALANCES - 15,677 55,800 (179,891) 3,139 FUND BALANCES (DEFICIT):

Beginning of year - 293,520 390,629 390,614 8,594 End of year -$ 309,197$ 446,429$ 210,723$ 11,733$ (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, 2023
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Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ -$ Sales and use taxes 1,924,654 - - - - Fines and forfeitures - - - - 348,518 Intergovernmental - - - - - Charges for services - 89,098 3,285 - - Investment income (loss) 22,068 18,517 1,515 1,961 24,467 Rents and leases - - - 9,988 - Miscellaneous - - 35,685 - 11,445 Total revenues 1,946,722 107,615 40,485 11,949 384,430 EXPENDITURES:

Current:

General government - - 144,549 23,337 - Public safety - - - - 46,450 Culture and recreation - 1,782 - - - Highway and streets 15,740 - - - - Capital outlay - - - - 7,994 Debt service:

Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 15,740 1,782 144,549 23,337 54,444

REVENUES OVER
(UNDER) EXPENDITURES 1,930,982 105,833 (104,064) (11,388) 329,986 OTHER FINANCING SOURCES (USES):

Transfers in - - 104,064 11,463 - Transfers out (588,713) - - - - Total other financing sources (uses) (588,713) - 104,064 11,463 - NET CHANGES IN FUND BALANCES 1,342,269 105,833 - 75 329,986 FUND BALANCES (DEFICIT):

Beginning of year 726,856 2,156,054 - 783 1,281,139 End of year 2,069,125$ 2,261,887$ -$ 858$ 1,611,125$ (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 154
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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 - - - - - Fines and forfeitures - - - - - Intergovernmental 183,582 - - - 2,697,068 Charges for services - 294,300 304,832 18,788 181,987 Investment income (loss) 3,214 20,764 38,791 14,563 69,138 Rents and leases - - - - - Miscellaneous - - - - - Total revenues 186,796 315,064 343,623 33,351 2,948,193 EXPENDITURES:

Current:

General government - - - - - Public safety 118,460 - - - - Culture and recreation - 217,314 - - - Highway and streets - - 20,442 38,167 38,533 Capital outlay 65,123 2,392 128,028 241,796 2,472,833 Debt service:

Principal - 64,839 - - - Interest and fiscal charges - 37,386 - - - Total expenditures 183,583 321,931 148,470 279,963 2,511,366

REVENUES OVER
(UNDER) EXPENDITURES 3,213 (6,867) 195,153 (246,612) 436,827 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGES IN FUND BALANCES 3,213 (6,867) 195,153 (246,612) 436,827 FUND BALANCES (DEFICIT):

Beginning of year 89,177 2,042,124 4,415,548 1,176,724 1,618,566 End of year 92,390$ 2,035,257$ 4,610,701$ 930,112$ 2,055,393$ (Continued)
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
155
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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 - - - - - Fines and forfeitures - - - - - Intergovernmental - - - - - Charges for services 25,357 582,079 29,696 - - Investment income (loss) - 1,454 - 2,323 (113,072) Rents and leases - - - - - Miscellaneous - 25,000 - - - Total revenues 25,357 608,533 29,696 2,323 (113,072) EXPENDITURES:

Current:

General government - 495,185 37,040 - - Public safety - - - - - Culture and recreation - - - - - Highway and streets 17,580 - - 4,460 414,523 Capital outlay - - - - 2,272,313 Debt service:

Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 17,580 495,185 37,040 4,460 2,686,836

REVENUES OVER
(UNDER) EXPENDITURES 7,777 113,348 (7,344) (2,137) (2,799,908) OTHER FINANCING SOURCES (USES):

Transfers in - - 7,344 - 4,354,217 Transfers out - (134,122) - - - Total other financing sources (uses) - (134,122) 7,344 - 4,354,217 NET CHANGES IN FUND BALANCES 7,777 (20,774) - (2,137) 1,554,309 FUND BALANCES (DEFICIT):

Beginning of year 32,101 124,038 - 195,040 2,191,595 End of year 39,878$ 103,264$ -$ 192,903$ 3,745,904$ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2023
Non-Major Governmental Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 156
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Debt Service
Funds
Transportation Safety Hall
Development Replacement Storm General
Public Art Act Capital Projects Drain Debt Service
Fund Fund Fund Fund Fund
REVENUES:

Property taxes -$ -$ -$ -$ 95,695$ Sales and use taxes - - - - - Fines and forfeitures - - - - - Intergovernmental - - - - - Charges for services - - - 189,041 - Investment income (loss) 193 - 30,368 17,709 (1,175) Rents and leases - - - - - Miscellaneous - - - - - Total revenues 193 - 30,368 206,750 94,520 EXPENDITURES:

Current:

General government - - 158,484 67,374 3,443 Public safety - - - - - Culture and recreation 2,800 - - - - Highway and streets - 4,986 - - - Capital outlay - 661,993 107,008 - - Debt service:

Principal - - - - 1,620,000 Interest and fiscal charges - - - - 250,097 Total expenditures 2,800 666,979 265,492 67,374 1,873,540

REVENUES OVER
(UNDER) EXPENDITURES (2,607) (666,979) (235,124) 139,376 (1,779,020) OTHER FINANCING SOURCES (USES):

Transfers in - - - - 519,146 Transfers out - - - - - Total other financing sources (uses) - - - - 519,146 NET CHANGES IN FUND BALANCES (2,607) (666,979) (235,124) 139,376 (1,259,874) FUND BALANCES (DEFICIT):

Beginning of year 12,018 (13,766) 2,560,682 2,405,945 1,819,383 End of year 9,411$ (680,745)$ 2,325,558$ 2,545,321$ 559,509$ Capital Projects Funds
For the Year Ended June 30, 2023
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
Special Revenue Funds
157
Redlands Regular Meeting of 02-20-24
335 of 923
Pauline Total
Simonds Stancliff Non-Major
Endowment Memorial Governmental
Fund Trust Fund Funds
REVENUES:

Property taxes -$ -$ 1,223,275$ Sales and use taxes - - 1,924,654 Fines and forfeitures - - 487,236 Intergovernmental - - 6,471,533 Charges for services - - 1,874,927 Investment income (loss) 360 211 154,408 Rents and leases - - 9,988 Miscellaneous - - 77,259 Total revenues 360 211 12,223,280 EXPENDITURES:

Current:

General government - - 929,412 Public safety - - 5,590,652 Culture and recreation - - 221,896 Highway and streets - - 560,919 Capital outlay - - 6,252,495 Debt service:

Principal - - 1,684,839 Interest and fiscal charges - - 287,483 Total expenditures - - 15,527,696

REVENUES OVER
(UNDER) EXPENDITURES 360 211 (3,304,416) OTHER FINANCING SOURCES (USES):

Transfers in - - 9,148,480 Transfers out - - (4,274,924) Total other financing sources (uses) - - 4,873,556 NET CHANGES IN FUND BALANCES 360 211 1,569,140 FUND BALANCES (DEFICIT):

Beginning of year 37,095 21,927 23,976,386 End of year 37,455$ 22,138$ 25,545,526$ (Continued) (Concluded)
Permanent Funds
For the Year Ended June 30, 2023
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Redlands
158
Redlands Regular Meeting of 02-20-24
336 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 1,100,000$ 1,100,000$ 1,127,580$ 27,580$ Charges for services 30,000 30,000 - (30,000) Miscellaneous 5,000 5,000 5,129 129 Total revenues 1,135,000 1,135,000 1,132,709 (2,291) EXPENDITURES:

Current:

Public safety 5,882,477 5,886,830 5,284,955 601,875 Total expenditures 5,882,477 5,886,830 5,284,955 601,875 REVENUES OVER (UNDER) EXPENDITURES (4,747,477) (4,751,830) (4,152,246) 599,584 OTHER FINANCING SOURCES (USES):

Transfers in 4,747,477 4,747,477 4,152,246 (595,231) Total other financing sources (uses) 4,747,477 4,747,477 4,152,246 (595,231) Net change in fund balance -$ (4,353)$ - 4,353$ FUND BALANCE:

Beginning of year -
End of year -$
City of Redlands
Budgetary Comparison Schedule
Emergency Service Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
159
Redlands Regular Meeting of 02-20-24
337 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 100,000$ 100,000$ 156,464$ 56,464$ Total revenues 100,000 100,000 156,464 56,464 EXPENDITURES:

Current:

Public safety 142,694 142,694 140,787 1,907 Total expenditures 142,694 142,694 140,787 1,907 Net change in fund balance (42,694)$ (42,694)$ 15,677 58,371$ FUND BALANCE:

Beginning of year 293,520
End of year 309,197$
City of Redlands
Budgetary Comparison Schedule
Household Hazardous Waste Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
160
Redlands Regular Meeting of 02-20-24
338 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 3,698,006$ 3,698,006$ 3,471,665$ (226,341)$ Total revenues 3,698,006 3,698,006 3,471,665 (226,341) EXPENDITURES:

Current:

Highway and streets 3,698,006 3,698,006 - 3,698,006 Total expenditures 3,698,006 3,698,006 - 3,698,006 OTHER FINANCING SOURCES (USES):

Transfers out - - (3,415,865) (3,415,865) Total other financing sources (uses) - - (3,415,865) (3,415,865) Net change in fund balance -$ -$ 55,800 55,800$ FUND BALANCE:

Beginning of year 390,629
End of year 446,429$
City of Redlands
Budgetary Comparison Schedule
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
161
Redlands Regular Meeting of 02-20-24
339 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 89,000$ 89,000$ 119,218$ 30,218$ Investment income (loss) - - 1,039 1,039 Total revenues 89,000 89,000 120,257 31,257 EXPENDITURES:

Current:

Highway and streets 417 127,759 6,488 121,271 Capital outlay 350,000 350,000 293,015 56,985 Total expenditures 350,417 477,759 299,503 178,256 OTHER FINANCING SOURCES (USES):

Transfers out - - (645) (645) Total other financing sources (uses) - - (645) (645) Net change in fund balance (261,417)$ (388,759)$ (179,891) 208,868$ FUND BALANCE:

Beginning of year 390,614
End of year 210,723$
City of Redlands
Budgetary Comparison Schedule
Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
162
Redlands Regular Meeting of 02-20-24
340 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines and forfeitures 202,000$ 202,000$ 138,718$ (63,282)$ Total revenues 202,000 202,000 138,718 (63,282) EXPENDITURES:

Current:

Public safety 202,000 202,000 - 202,000 Total expenditures 202,000 202,000 - 202,000 OTHER FINANCING SOURCES (USES):

Transfers out - - (135,579) (135,579) Total other financing sources (uses) - - (135,579) (135,579) Net change in fund balance -$ -$ 3,139 3,139$ FUND BALANCE:

Beginning of year 8,594
End of year 11,733$
City of Redlands
Budgetary Comparison Schedule
Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
163
Redlands Regular Meeting of 02-20-24
341 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Sales and use taxes 1,825,567$ 1,825,567$ 1,924,654$ 99,087$ Investment income (loss) - - 22,068 22,068 Total revenues 1,825,567 1,825,567 1,946,722 121,155 EXPENDITURES:

Current:

Highway and streets 15,741 15,741 15,740 1 Capital outlay 2,704,233 2,704,233 - 2,704,233 Total expenditures 2,719,974 2,719,974 15,740 2,704,234 OTHER FINANCING SOURCES (USES):

Transfers out - - (588,713) (588,713) Total other financing sources (uses) - - (588,713) (588,713) Net change in fund balance (894,407)$ (894,407)$ 1,342,269 2,236,676$ FUND BALANCE:

Beginning of year 726,856
End of year 2,069,125$
City of Redlands
Budgetary Comparison Schedule
Measure I Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
164
Redlands Regular Meeting of 02-20-24
342 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 500,000$ 500,000$ 89,098$ (410,902)$ Investment income (loss) - - 18,517 18,517 Total revenues 500,000 500,000 107,615 (392,385) EXPENDITURES:

Current:

Culture and recreation - - 1,782 (1,782) Total expenditures - - 1,782 (1,782) Net change in fund balance 500,000$ 500,000$ 105,833 (394,167)$ FUND BALANCE:

Beginning of year 2,156,054
End of year 2,261,887$
City of Redlands
Budgetary Comparison Schedule
Open Space Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
165
Redlands Regular Meeting of 02-20-24
343 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 151,000$ 151,000$ 3,285$ (147,715)$ Investment income (loss) - - 1,515 1,515 Miscellaneous - - 35,685 35,685 Total revenues 151,000 151,000 40,485 (110,515) EXPENDITURES:

Current:

General government 152,008 152,008 144,549 7,459 Total expenditures 152,008 152,008 144,549 7,459 REVENUES OVER (UNDER) EXPENDITURES (1,008) (1,008) (104,064) (103,056) OTHER FINANCING SOURCES (USES):

Transfers in - - 104,064 104,064 Total other financing sources (uses) - - 104,064 104,064 Net change in fund balance (1,008)$ (1,008)$ - 1,008$ 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, 2023
Budgeted Amounts
166
Redlands Regular Meeting of 02-20-24
344 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 1,961$ 1,961$ Rents and leases 11,500 11,500 9,988 (1,512) Total revenues 11,500 11,500 11,949 449 EXPENDITURES:

Current:

General government 23,142 23,142 23,337 (195) Total expenditures 23,142 23,142 23,337 (195) REVENUES OVER (UNDER) EXPENDITURES (11,642) (11,642) (11,388) 254 OTHER FINANCING SOURCES (USES):

Transfers in 11,642 11,642 11,463 (179) Total other financing sources (uses) 11,642 11,642 11,463 (179) Net change in fund balance -$ -$ 75 75$ FUND BALANCE:

Beginning of year 783
End of year 858$
City of Redlands
Budgetary Comparison Schedule
Parking Authority Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
167
Redlands Regular Meeting of 02-20-24
345 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Fines and forfeitures 113,600$ 113,600$ 348,518$ 234,918$ Investment income (loss) 6,000 6,000 24,467 18,467 Miscellaneous - - 11,445 11,445 Total revenues 119,600 119,600 384,430 264,830 EXPENDITURES:

Current:

Public safety 191,924 199,343 46,450 152,893 Capital outlay - - 7,994 (7,994) Total expenditures 191,924 199,343 54,444 144,899 Net change in fund balance (72,324)$ (79,743)$ 329,986 409,729$ FUND BALANCE:

Beginning of year 1,281,139
End of year 1,611,125$
City of Redlands
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
168
Redlands Regular Meeting of 02-20-24
346 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental 175,059$ 175,059$ 183,582$ 8,523$ Investment income (loss) 1,500 1,500 3,214 1,714 Total revenues 176,559 176,559 186,796 10,237 EXPENDITURES:

Current:

Public safety 251,391 251,391 118,460 132,931 Capital outlay 75,000 135,260 65,123 70,137 Total expenditures 326,391 386,651 183,583 203,068 Net change in fund balance (149,832)$ (210,092)$ 3,213 213,305$ FUND BALANCE:

Beginning of year 89,177
End of year 92,390$
City of Redlands
Budgetary Comparison Schedule
Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2023
Budgeted Amounts
169
Redlands Regular Meeting of 02-20-24
347 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 1,500,000$ 1,500,000$ 294,300$ (1,205,700)$ Investment income (loss) - - 20,764 20,764 Total revenues 1,500,000 1,500,000 315,064 (1,184,936) EXPENDITURES:

Current:

Culture and recreation 3,658 211,426 217,314 (5,888) Capital outlay - - 2,392 (2,392) Debt service:

Principal 64,839 64,839 64,839 - Interest and fiscal charges 37,386 37,386 37,386 - Total expenditures 105,883 313,651 321,931 (8,280) Net change in fund balance 1,394,117$ 1,186,349$ (6,867) (1,193,216)$ FUND BALANCE:

Beginning of year 2,042,124
End of year 2,035,257$
City of Redlands
Budgetary Comparison Schedule
Park and Open Space Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
170
Redlands Regular Meeting of 02-20-24
348 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 710,000$ 710,000$ 304,832$ (405,168)$ Investment income (loss) 12,000 12,000 38,791 26,791 Total revenues 722,000 722,000 343,623 (378,377) EXPENDITURES:

Current:

Highway and streets 300,000 300,000 20,442 279,558 Capital outlay 900,000 900,000 128,028 771,972 Total expenditures 1,200,000 1,200,000 148,470 1,051,530 Net change in fund balance (478,000)$ (478,000)$ 195,153 673,153$ FUND BALANCE:

Beginning of year 4,415,548
End of year 4,610,701$
City of Redlands
Budgetary Comparison Schedule
Arterial Street Construction Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
171
Redlands Regular Meeting of 02-20-24
349 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 90,000$ 90,000$ 18,788$ (71,212)$ Investment income (loss) 4,500 4,500 14,563 10,063 Total revenues 94,500 94,500 33,351 (61,149) EXPENDITURES:

Current:

Highway and streets 100,000 100,000 38,167 61,833 Capital outlay 600,000 1,162,601 241,796 920,805 Total expenditures 700,000 1,262,601 279,963 982,638 REVENUES OVER (UNDER) EXPENDITURES (605,500) (1,168,101) (246,612) 921,489 Net change in fund balance (605,500)$ (1,168,101)$ (246,612) 921,489$ FUND BALANCE:

Beginning of year 1,176,724
End of year 930,112$
City of Redlands
Budgetary Comparison Schedule
Traffic Signals Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
172
Redlands Regular Meeting of 02-20-24
350 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental -$ -$ 2,697,068$ 2,697,068$ Charges for services 450,000 450,000 181,987 (268,013) Investment income (loss) 8,000 8,000 69,138 61,138 Total revenues 458,000 458,000 2,948,193 2,490,193 EXPENDITURES:

Current:

Highway and streets - - 38,533 (38,533) Capital outlay - 248,817 2,472,833 (2,224,016) Total expenditures - 248,817 2,511,366 (2,262,549) Net change in fund balance 458,000$ 209,183$ 436,827 227,644$ FUND BALANCE:

Beginning of year 1,618,566
End of year 2,055,393$
City of Redlands
Budgetary Comparison Schedule
Freeway Interchanges Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
173
Redlands Regular Meeting of 02-20-24
351 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 25,000$ 25,000$ 25,357$ 357$ Total revenues 25,000 25,000 25,357 357 EXPENDITURES:

Current:

Highway and streets 21,358 21,358 17,580 3,778 Total expenditures 21,358 21,358 17,580 3,778 Net change in fund balance 3,642$ 3,642$ 7,777 4,135$ FUND BALANCE:

Beginning of year 32,101
End of year 39,878$
City of Redlands
Budgetary Comparison Schedule
Street Lighting District #1 Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
174
Redlands Regular Meeting of 02-20-24
352 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 575,000$ 575,000$ 582,079$ 7,079$ Investment income (loss) 1,000 1,000 1,454 454 Miscellaneous - - 25,000 25,000 Total revenues 576,000 576,000 608,533 32,533 EXPENDITURES:

Current:

General government 442,347 442,347 495,185 (52,838) Highway and streets 15,000 15,000 - 15,000 Total expenditures 457,347 457,347 495,185 (37,838) REVENUES OVER (UNDER) EXPENDITURES 118,653 118,653 113,348 (5,305) OTHER FINANCING SOURCES (USES):

Transfers out (128,596) (128,596) (134,122) (5,526) Total other financing sources (uses) (128,596) (128,596) (134,122) (5,526) Net change in fund balance (9,943)$ (9,943)$ (20,774) (10,831)$ FUND BALANCE:

Beginning of year 124,038
End of year 103,264$
City of Redlands
Budgetary Comparison Schedule
CFD 2004-1 Assessment Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
175
Redlands Regular Meeting of 02-20-24
353 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 29,000$ 29,000$ 29,696$ 696$ Total revenues 29,000 29,000 29,696 696 EXPENDITURES:

Current:

General government 50,639 50,639 37,040 13,599 Total expenditures 50,639 50,639 37,040 13,599 REVENUES OVER (UNDER) EXPENDITURES (21,639) (21,639) (7,344) 14,295 OTHER FINANCING SOURCES (USES):

Transfers in 21,639 21,639 7,344 (14,295) Total other financing sources (uses) 21,639 21,639 7,344 (14,295) Net change in fund balance -$ -$ - -$ 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, 2023
Budgeted Amounts
176
Redlands Regular Meeting of 02-20-24
354 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 2,323$ 2,323$ Miscellaneous - 44,000 - (44,000) Total revenues - 44,000 2,323 (41,677) EXPENDITURES:

Current:

Highway and streets - 118,495 4,460 114,035 Total expenditures - 118,495 4,460 114,035 Net change in fund balance -$ (74,495)$ (2,137) 72,358$ FUND BALANCE:

Beginning of year 195,040
End of year 192,903$
City of Redlands
Budgetary Comparison Schedule
Local Transportation Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
177
Redlands Regular Meeting of 02-20-24
355 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ (113,072)$ (113,072)$ Total revenues - - (113,072) (113,072) EXPENDITURES:

Current:

Highway and streets 535,222 750,539 414,523 336,016 Capital outlay 4,500,000 6,778,185 2,272,313 4,505,872 Total expenditures 5,035,222 7,528,724 2,686,836 4,841,888 REVENUES OVER (UNDER) EXPENDITURES (5,035,222) (7,528,724) (2,799,908) 4,728,816 OTHER FINANCING SOURCES (USES):

Transfers in 6,328,330 6,328,330 4,354,217 (1,974,113) Total other financing sources (uses) 6,328,330 6,328,330 4,354,217 (1,974,113) Net change in fund balance 1,293,108$ (1,200,394)$ 1,554,309 2,754,703$ FUND BALANCE:

Beginning of year 2,191,595
End of year 3,745,904$
City of Redlands
Budgetary Comparison Schedule
PARIS Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
178
Redlands Regular Meeting of 02-20-24
356 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 193$ 193$ Total revenues - - 193 193 EXPENDITURES:

Current:

Culture and recreation - 2,000 2,800 (800) Total expenditures - 2,000 2,800 (800) Net change in fund balance -$ (2,000)$ (2,607) (607)$ FUND BALANCE:

Beginning of year 12,018
End of year 9,411$
City of Redlands
Budgetary Comparison Schedule
Public Art Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
179
Redlands Regular Meeting of 02-20-24
357 of 923
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 - 206,856 4,986 201,870 Capital outlay - 959,732 661,993 297,739 Total expenditures - 1,166,588 666,979 499,609 Net change in fund balance -$ 13,860$ (666,979) (680,839)$ FUND BALANCE (DEFICIT):

Beginning of year (13,766)
End of year (680,745)$
City of Redlands
Budgetary Comparison Schedule
Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
180
Redlands Regular Meeting of 02-20-24
358 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 30,368$ 30,368$ Total revenues - - 30,368 30,368 EXPENDITURES:

Current:

General government - 200,970 158,484 42,486 Capital outlay - 2,235,000 107,008 2,127,992 Total expenditures - 2,435,970 265,492 2,170,478 Net change in fund balance -$ (2,435,970)$ (235,124) 2,200,846$ FUND BALANCE:

Beginning of year 2,560,682
End of year 2,325,558$
City of Redlands
Budgetary Comparison Schedule
Safety Hall Replacement Capital Projects Fund
For the Year Ended June 30, 2023
Budgeted Amounts
181
Redlands Regular Meeting of 02-20-24
359 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services 330,000$ 330,000$ 189,041$ (140,959)$ Investment income (loss) 7,500 7,500 17,709 10,209 Total revenues 337,500 337,500 206,750 (130,750) EXPENDITURES:

Current:

General government 577,035 587,035 67,374 519,661 Capital outlay 1,980,000 1,980,000 - 1,980,000 Total expenditures 2,557,035 2,567,035 67,374 2,499,661 Net change in fund balance (2,219,535)$ (2,229,535)$ 139,376 2,368,911$ FUND BALANCE:

Beginning of year 2,405,945
End of year 2,545,321$
City of Redlands
Budgetary Comparison Schedule
Storm Drain Capital Projects Fund
For the Year Ended June 30, 2023
Budgeted Amounts
182
Redlands Regular Meeting of 02-20-24
360 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Property taxes 30,000$ 30,000$ 95,695$ 65,695$ Investment income (loss) 430 430 (1,175) (1,605) Total revenues 30,430 30,430 94,520 64,090 EXPENDITURES:

Current:

General government 3,446 3,446 3,443 3 Debt service:

Principal 1,620,000 1,620,000 1,620,000 - Interest and fiscal charges 250,097 250,097 250,097 - Total expenditures 1,873,543 1,873,543 1,873,540 3 REVENUES OVER (UNDER) EXPENDITURES (1,843,113) (1,843,113) (1,779,020) 64,093 OTHER FINANCING SOURCES (USES):

Transfers in - - 519,146 519,146 Total other financing sources (uses) - - 519,146 519,146 Net change in fund balance (1,843,113)$ (1,843,113)$ (1,259,874) 583,239$ FUND BALANCE:

Beginning of year 1,819,383
End of year 559,509$
City of Redlands
Budgetary Comparison Schedule
General Debt Service Fund
For the Year Ended June 30, 2023
Budgeted Amounts
183
Redlands Regular Meeting of 02-20-24
361 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 360$ 360$ Total revenues - - 360 360 Net change in fund balance -$ -$ 360 360$ FUND BALANCE:

Beginning of year 37,095
End of year 37,455$
City of Redlands
Budgetary Comparison Schedule
Simonds Endowment Permanent Fund
For the Year Ended June 30, 2023
Budgeted Amounts
184
Redlands Regular Meeting of 02-20-24
362 of 923
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment income (loss) -$ -$ 211$ 211$ Total revenues - - 211 211 Net change in fund balance -$ -$ 211 211$ FUND BALANCE:

Beginning of year 21,927
End of year 22,138$
City of Redlands
Budgetary Comparison Schedule
Pauline Stancliff Memorial Trust Permanent Fund
For the Year Ended June 30, 2023
Budgeted Amounts
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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. 187
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Non-Potable
Groves Wate r Cemetery Aviation
Fund Fund Fund Fund Total
ASSETS
Current assets:

Cash and investments 507,539$ 3,885,843$ 3,374,210$ 277,558$ 8,045,150$ Accounts receivable, net 62,600 48,350 209,794 27,275 348,019 Taxes receivable - - - 379 379 Lease receivable - due within one year - - 27,181 108,872 136,053 Due from other governments - - - 65,802 65,802 Total current assets 570,139 3,934,193 3,611,185 479,886 8,595,403 Noncurrent assets:

Lease receivable - due in more than one year - - 20,485 613,719 634,204 Capital assets:

Non-depreciable 13,570,179 - 638,131 1,165,281 15,373,591 Depreciable, net 120,334 17,117 661,252 2,366,574 3,165,277 Total capital assets 13,690,513 17,117 1,299,383 3,531,855 18,538,868 Total noncurrent assets 13,690,513 17,117 1,319,868 4,145,574 19,173,072 Total assets 14,260,652 3,951,310 4,931,053 4,625,460 27,768,475

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB - - 392,041 101,496 493,537 Related to pensions 74,712 33,728 279,512 72,254 460,206 Total deferred outflow of resources 74,712 33,728 671,553 173,750 953,743

LIABILITIES
Current liabilities:

Accounts payable 129,652 53,745 28,385 37,265 249,047 Accrued payroll 12,782 4,016 31,794 7,401 55,993 Interest payable - - 1,199 - 1,199 Deposits payable - - 1,308,624 12,004 1,320,628 Unearned revenue - - - 5,872 5,872 Compensated absences - due within one year 271 130 16,040 445 16,886 Long-term debt - due within one year 6,867 - 41,670 - 48,537 Total current liabilities 149,572 57,891 1,427,712 62,987 1,698,162 Noncurrent liabilities:

Advances from other funds - - 613,912 737,613 1,351,525 Compensated absences - due in more than one year 271 130 16,041 444 16,886 Long term debt - due in more than one year 12,133 - 48,492 - 60,625 Total OPEB liability - - 1,107,665 262,354 1,370,019 Net pension liability 226,724 102,352 848,217 219,263 1,396,556 Total noncurrent liabilities 239,128 102,482 2,634,327 1,219,674 4,195,611 Total liabilities 388,700 160,373 4,062,039 1,282,661 5,893,773

DEFERRED INFLOWS OF RESOURCES
Related to leases - - 47,426 712,221 759,647 Related to OPEB - - 502,537 101,759 604,296 Related to pensions 4,030 1,819 15,078 3,898 24,825 Total deferred inflows of resources 4,030 1,819 565,041 817,878 1,388,768

NET POSITION
Net investment in capital assets 13,671,513 17,117 1,209,221 3,531,855 18,429,706 Restricted - - - - - Unrestricted (deficit) 271,121 3,805,729 (233,695) (833,184) 3,009,971 Total net position 13,942,634$ 3,822,846$ 975,526$ 2,698,671$ 21,439,677$ City of Redlands
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2023
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Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
OPERATING REVENUES:

Charges for services 1,681,761$ 618,839$ 986,715$ 136,727$ 3,424,042$ Miscellaneous operating revenue 128,325 - 296,571 209,403 634,299 Total operating revenues 1,810,086 618,839 1,283,286 346,130 4,058,341 OPERATING EXPENSES:

Salaries and benefits 348,852 121,848 888,121 177,637 1,536,458 General and administrative 1,316,210 347,387 358,100 270,279 2,291,976 Parts and supplies 90,727 52,200 87,337 82,441 312,705 Utilities 94,872 34,359 31,576 47,604 208,411 Depreciation/amortization 29,943 7,329 56,794 223,085 317,151 Total operating expenses 1,880,604 563,123 1,421,928 801,046 4,666,701 OPERATING INCOME (LOSS) (70,518) 55,716 (138,642) (454,916) (608,360) NONOPERATING REVENUES (EXPENSES):

Investment income (5,449) 46,031 29,516 15,776 85,874 Interest expense (159) - (19,724) (18,142) (38,025) Property taxes - - - 96,621 96,621 Operating grants - - - 158,706 158,706 Total nonoperating revenues (expenses) (5,608) 46,031 9,792 252,961 303,176

INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (76,126) 101,747 (128,850) (201,955) (305,184)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - 104,920 - - 104,920 Transfers in 292,849 - - - 292,849 Transfers out - (343,992) - - (343,992) Total capital contributions and transfers 292,849 (239,072) - - 53,777 Changes in net position 216,723 (137,325) (128,850) (201,955) (251,407) NET POSITION:

Beginning of year 13,725,911 3,960,171 1,104,376 2,900,626 21,691,084 End of year 13,942,634$ 3,822,846$ 975,526$ 2,698,671$ 21,439,677$ City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the Year Ended June 30, 2023
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Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 1,619,161$ 620,932$ 1,104,829$ 116,432$ 3,461,354$ Cash payments to suppliers for goods and services (1,408,826) (447,571) (484,540) (381,896) (2,722,833) Cash payments to employees for services (207,634) (85,368) (544,504) (123,058) (960,564) Receipts from other operating revenues 128,325 - 296,571 209,403 634,299 Net cash provided by (used in) operating activities 131,026 87,993 372,356 (179,119) 412,256

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Operating grants - - - 94,394 94,394 Property taxes - - - 96,514 96,514 Advances from other funds - - (134,649) (41,858) (176,507) Transfers from other funds 292,849 - - - 292,849 Transfers to other funds - (343,992 ) - - (343,992 ) Net cash provided by (used in)
noncapital financing activities 292,849 (343,992) (134,649) 149,050 (36,742)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (18,379) (17,937) (19,409) - (55,725) Cash contributions received from developers - 104,920 - - 104,920 Principal payment of long-term debt (6,819) - (40,770) - (47,589) Interest paid on debt (159) - (20,273) (18,142) (38,574) Net cash provided by (used in) capital and
related financing activities (25,357) 86,983 (80,452) (18,142) (36,968) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) (5,449) 46,031 29,516 15,776 85,874 Net cash provided by (used in) investing activities (5,449) 46,031 29,516 15,776 85,874 Net change in cash and cash equivalents 393,069 (122,985) 186,771 (32,435) 424,420 CASH AND CASH EQUIVALENTS:

Beginning of year 114,470 4,008,828 3,187,439 309,993 7,620,730 End of year 507,539$ 3,885,843$ 3,374,210$ 277,558$ 8,045,150$ (Continued)
City of Redlands
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2023
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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) (70,518)$ 55,716$ (138,642)$ (454,916)$ (608,360)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation/amortization 29,943 7,329 56,794 223,085 317,151 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net (62,600) 2,093 43,167 3,911 (13,429 ) Lease receivable - - 27,031 107,084 134,115 Deferred outflows - OPEB related - - 69,712 13,942 83,654 Deferred outflows - pension related (70,933) (27,712) (225,687) (53,240) (377,572) Accounts payable 92,983 (13,625 ) (7,527) 18,428 90,259 Accrued payroll 7,384 (337) 7,450 5,625 20,122 Deposits payable - - 75,016 1,144 76,160 Unearned revenue - - - (20,048 ) (20,048) Compensated absences 536 212 1,523 351 2,622 Total OPEB liability - - (489,801 ) (97,960) (587,761) Net pension liability 228,938 105,765 709,457 152,232 1,196,392 Deferred inflows - lease related - - (27,100 ) (112,386) (139,486) Deferred inflows - OPEB related - - 477,496 95,499 572,995 Deferred inflows - pension related (24,707) (41,448) (206,533) (61,870) (334,558) Total adjustments 201,544 32,277 510,998 275,797 1,020,616 Net cash provided by (used in) operating activities 131,026$ 87,993$ 372,356$ (179,119)$ 412,256$ (Concluded)
For the Year Ended June 30, 2023
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
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
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
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General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
ASSETS
Current assets:

Cash and investments -$ 3,858,408$ 4,988,247$ 5,535,514$ Accounts receivable, net - - - 55,227 Prepaid items - - 159,602 - Inventories - - - 94,254 Total current assets - 3,858,408 5,147,849 5,684,995 Noncurrent assets:

Capital assets:

Non-depreciable - - - - Depreciable, net - - 894,026 192,577 Total capital assets - - 894,026 192,577 Total noncurrent assets - - 894,026 192,577 Total assets - 3,858,408 6,041,875 5,877,572

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 101,496 101,496 1,133,664 483,095 Related to pensions 99,580 284,682 741,020 317,945 Total deferred outflow of resources 201,076 386,178 1,874,684 801,040

LIABILITIES
Current liabilities:

Accounts payable 107,207 1,524 156,538 1,025,966 Accrued payroll 11,040 29,925 80,034 28,509 Compensated absences - due within one year 1,402 2,503 88,356 33,924 Claims payable - due within one year 2,153,447 5,609,500 - - Long-term debt - due within one year - - 130,269 7,107 Total current liabilities 2,273,096 5,643,452 455,197 1,095,506 Noncurrent liabilities:

Compensated absences - due in more than one year 1,402 2,503 88,358 33,923 Claims payable - due in more than one year 2,153,446 5,609,500 - - Long term debt - due in more than one year - - 55,160 4,163 Total OPEB liability 341,409 251,462 3,241,268 1,732,682 Net pension liability 302,189 863,904 2,248,721 964,846 Total noncurrent liabilities 2,798,446 6,727,369 5,633,507 2,735,614 Total liabilities 5,071,542 12,370,821 6,088,704 3,831,120

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 101,759 101,759 1,486,906 510,926 Related to pensions 5,372 15,357 39,974 17,151 Total deferred inflows of resources 107,131 117,116 1,526,880 528,077

NET POSITION
Net Investment in capital assets - - 894,026 192,577 Unrestricted (deficit) (4,977,597) (8,243,351) (593,051) 2,126,838 Total net position (deficit) (4,977,597)$ (8,243,351)$ 300,975$ 2,319,415$ (Continued)
City of Redlands
Combining Statement of Net Position
All Internal Service Funds
June 30, 2023
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Utility Payroll
Billing Clearing
Fund Fund Total
ASSETS
Current assets:

Cash and investments 1,599,513$ 539,913$ 16,521,595$ Accounts receivable, net 3,110 - 58,337 Prepaid items 7,813 - 167,415 Inventories - - 94,254 Total current assets 1,610,436 539,913 16,841,601 Noncurrent assets:

Capital assets:

Non-depreciable 26,081 - 26,081 Depreciable, net - - 1,086,603 Total capital assets 26,081 - 1,112,684 Total noncurrent assets 26,081 - 1,112,684 Total assets 1,636,517 539,913 17,954,285

DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 1,185,791 - 3,005,542 Related to pensions 597,779 - 2,041,006 Total deferred outflow of resources 1,783,570 - 5,046,548

LIABILITIES
Current liabilities:

Accounts payable 11,558 660 1,303,453 Accrued payroll 60,972 466,352 676,832 Compensated absences - due within one year 81,214 - 207,399 Claims payable - due within one year - - 7,762,947 Long-term debt - due within one year - - 137,376 Total current liabilities 153,744 467,012 10,088,007 Noncurrent liabilities:

Compensated absences - due in more than one year 81,213 - 207,399 Claims payable - due in more than one year - - 7,762,946 Long term debt - due in more than one year - - 59,323 Total OPEB liability 3,119,420 - 8,686,241 Net pension liability 1,814,037 - 6,193,697 Total noncurrent liabilities 5,014,670 - 22,909,606 Total liabilities 5,168,414 467,012 32,997,613

DEFERRED INFLOWS OF RESOURCES
Related to OPEB 1,381,217 - 3,582,567 Related to pensions 32,247 - 110,101 Total deferred inflows of resources 1,413,464 - 3,692,668

NET POSITION
Net Investment in capital assets 26,081 - 1,112,684 Unrestricted (deficit) (3,187,872) 72,901 (14,802,132) Total net position (deficit) (3,161,791)$ 72,901$ (13,689,448)$ (Concluded)
City of Redlands
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2023
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General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
OPERATING REVENUES:

Charges for services -$ 3,026,426$ 6,483,138$ 8,006,534$ Miscellaneous operating revenue 7,343 41,277 - 250,469 Total operating revenues 7,343 3,067,703 6,483,138 8,257,003 OPERATING EXPENSES:

Salaries and benefits 168,628 909,100 1,836,335 570,799 General and administrative 7,248,364 1,092,416 1,503,564 986,166 Parts and supplies 133 10,968 233,981 5,594,675 Utilities 1,344 - 300,408 3,433 Depreciation/amortization - - 511,060 38,483 Total operating expenses 7,418,469 2,012,484 4,385,348 7,193,556 OPERATING INCOME (LOSS) (7,411,126) 1,055,219 2,097,790 1,063,447 NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 53,559 18,476 (58,026) 10,923 Interest expense - - (10,189) (83) Total nonoperating revenues (expenses) 53,559 18,476 (68,215) 10,840 INCOME (LOSS) BEFORE TRANSFERS (7,357,567) 1,073,695 2,029,575 1,074,287 TRANSFERS:

Transfers in 5,026,046 - - - Transfers out - - (7,994) - Total transfers 5,026,046 - (7,994) - Changes in net position (2,331,521) 1,073,695 2,021,581 1,074,287 NET POSITION (DEFICIT):

Beginning of year, as restated (Note 20) (2,646,076) (9,317,046) (1,720,606) 1,245,128 End of year (4,977,597)$ (8,243,351)$ 300,975$ 2,319,415$ (Continued)
City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2023
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Utility Payroll
Billing Clearing
Fund Fund Total
OPERATING REVENUES:

Charges for services 1,763,475$ 519,146$ 19,798,719$ Miscellaneous operating revenue 116,297 - 415,386 Total operating revenues 1,879,772 519,146 20,214,105 OPERATING EXPENSES:

Salaries and benefits 1,461,358 - 4,946,220 General and administrative 574,298 - 11,404,808 Parts and supplies 39,566 - 5,879,323 Utilities - - 305,185 Depreciation/amortization - - 549,543 Total operating expenses 2,075,222 - 23,085,079 OPERATING INCOME (LOSS) (195,450) 519,146 (2,870,974) NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 418,668 - 443,600 Interest expense - - (10,272) Total nonoperating revenues (expenses) 418,668 - 433,328 INCOME (LOSS) BEFORE TRANSFERS 223,218 519,146 (2,437,646) TRANSFERS:

Transfers in - - 5,026,046 Transfers out - (519,146) (527,140) Total transfers - (519,146) 4,498,906 Changes in net position 223,218 - 2,061,260 NET POSITION (DEFICIT):

Beginning of year, as restated (Note 20) (3,385,009) 72,901 (15,750,708) End of year (3,161,791)$ 72,901$ (13,689,448)$ (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, 2023
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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 -$ 3,026,426$ 6,483,138$ 8,003,724$ Cash payments to suppliers for goods and services (5,560,165) (2,057,616) (2,143,690) (6,191,630) Cash payments to employees for services (180,010) (579,794) (1,363,884) (709,582) Receipts from other operating activities 7,343 41,277 - 250,469 Net cash provided by (used in) operating activities (5,732,832) 430,293 2,975,564 1,352,981

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds 5,026,046 - - - Transfers to other funds - - (7,994) - Net cash provided by (used in)
noncapital financing activities 5,026,046 - (7,994) -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - - (105,472) (179,510) Principal payment of long-term debt - - (218,994) (7,068) Interest paid on debt - - (10,189) (83) Net cash (used in) capital and
related financing activities - - (334,655) (186,661) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 53,559 18,476 (58,026) 10,923 Net cash provided by (used in) investing activities 53,559 18,476 (58,026) 10,923 Net change in cash and cash equivalents (653,227) 448,769 2,574,889 1,177,243 CASH AND CASH EQUIVALENTS:

Beginning of year 653,227 3,409,639 2,413,358 4,358,271 End of year -$ 3,858,408$ 4,988,247$ 5,535,514$ (Continued)
City of Redlands
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2023
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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) (7,411,126)$ 1,055,219$ 2,097,790$ 1,063,447$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation/amortization - - 511,060 38,483 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net - - - (2,810) Prepaid items - - (98,608) 6,665 Inventories - - - (1,114) Deferred outflows - OPEB related 13,942 13,942 209,135 69,712 Deferred outflows -pension related (54,742) (228,916) (522,903) (169,904) Accounts payable (21,710) (1,608) (7,129) 387,093 Accrued payroll 7,618 7,552 (22,730) (6,967) Compensated absences 498 1,622 3,790 1,895 Claims payable 1,711,386 (952,624) - - Total OPEB liability (97,960) (97,960) (1,469,403) (489,801) Net pension liability 66,992 694,432 1,531,254 299,961 Deferred inflows - OPEB related 95,499 95,499 1,432,487 477,496 Deferred inflows - pension related (43,229) (156,865) (689,179) (321,175) Total adjustments 1,678,294 (624,926) 877,774 289,534 Net cash provided by (used in) operating activities (5,732,832)$ 430,293$ 2,975,564$ 1,352,981$

(Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
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 1,763,913$ 519,146$ 19,796,347$ Cash payments to suppliers for goods and services (635,816) 403,934 (16,184,983) Cash payments to employees for services (1,070,849) 6,911 (3,897,208) Receipts from other operating activities 116,297 - 415,386 Net cash provided by (used in) operating activities 173,545 929,991 129,542

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Transfers from other funds - - 5,026,046 Transfers to other funds - (519,146) (527,140) Net cash provided by (used in)
noncapital financing activities - (519,146) 4,498,906

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (26,081) - (311,063) Principal payment of long-term debt - - (226,062) Interest paid on debt - - (10,272) Net cash (used in) capital and
related financing activities (26,081) - (547,397) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (loss) 418,668 - 443,600 Net cash provided by (used in) investing activities 418,668 - 443,600 Net change in cash and cash equivalents 566,132 410,845 4,524,651 CASH AND CASH EQUIVALENTS:

Beginning of year 1,033,381 129,068 11,996,944 End of year 1,599,513$ 539,913$ 16,521,595$ (Continued)
City of Redlands
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
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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) (195,450)$ 519,146$ (2,870,974)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation/amortization - - 549,543 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Accounts receivable, net 438 - (2,372) Prepaid items (7,813) 504,617 404,861 Inventories - - (1,114) Deferred outflows - OPEB related 195,192 - 501,923 Deferred outflows -pension related (417,959) - (1,394,424) Accounts payable (14,139) (100,683) 241,824 Accrued payroll 8,942 6,911 1,326 Compensated absences 3,110 - 10,915 Claims payable - - 758,762 Total OPEB liability (1,371,442) - (3,526,566) Net pension liability 1,063,602 - 3,656,241 Deferred inflows - OPEB related 1,336,988 - 3,437,969 Deferred inflows - pension related (427,924) - (1,638,372) Total adjustments 368,995 410,845 3,000,516 Net cash provided by (used in) operating activities 173,545$ 929,991$ 129,542$

(Concluded)
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2023
City of Redlands
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STATISTICAL SECTION
(UNAUDITED)
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CONTENTS PAGE
1 Net Position by Component 206
2 Changes in Net Position 208
3 Fund Balances of Governmental Funds 212
4 Changes in Fund Balances of Governmental Funds 214
5 Assessed Value and Estimated Actual Value of Taxable Property 217 6 Assessed Value and Estimated Actual Value of Taxable Property by Major Type 218 7 Direct and Overlapping Property Tax Rates 220
8 Top Ten Principal Property Taxpayers 222
9 Property Tax Levies and Collections 223
10 Ratios of Outstanding Debt by Type 224
11 Ratios of General Bonded Debt Outstanding 226
12 Direct and Overlapping Governmental Activities Debt 227 13 Legal Debt Margin Information 228
14 Pledged Revenue Coverage 230
15 Demographic and Economic Statistics 231
16 Principal Employers 232
17 Full Time Equivalent City Government Employees by Function/Program 233 18 Operating Indicators by Function/Program 234
19 Capital Asset Statistics by Function/Program 237
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.
205
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2023 2022 2021 2020 2019
Governmental activities
Net investment in capital assets, 590,288,015$ 537,558,597$ 481,259,666$ 473,042,917$ 443,551,078$ Restricted 13,385,123 11,326,983 14,059,449 17,346,674 15,676,686 Unrestricted (deficit) (88,121,189) (114,273,699) (143,979,153) (154,157,129) (148,411,538) Total governmental activities net position 515,551,949$ 434,611,881$ 351,339,962$ 336,232,462$ 310,816,226$ Business type activities
Net investment in capital assets 190,475,232$ 183,665,229$ 167,349,714$ 165,453,760$ 150,997,528$ Restricted 16,677,323 16,677,323 18,031,654 23,794,167 26,162,608 Unrestricted 18,287,832 20,522,584 25,405,456 10,901,482 6,544,230 Total business type activities net position 225,440,387$ 220,865,136$ 210,786,824$ 200,149,409$ 183,704,366$ Primary government
Net investment in capital assets 780,763,247$ 721,223,826$ 648,609,380$ 638,496,677$ 594,548,606$ Restricted 30,062,446 28,004,306 32,091,103 41,140,841 41,839,294 Unrestricted (deficit) (69,833,357) (93,751,115) (118,573,697) (143,255,647) (141,867,308) Total primary government net position 740,992,336$ 655,477,017$ 562,126,786$ 536,381,871$ 494,520,592$ 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.

Fiscal Years
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
Schedule 1
Net Position by Componen
t
206
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2018 2017 2016 2015 2014
Governmental activities
Net investment in capital assets 655,044,577$ 642,109,428$ 622,119,006$ 625,683,667$ 609,555,372$ Restricted 20,499,351 11,100,669 15,258,535 15,584,054 18,466,430 Unrestricted (deficit) (148,371,437) (93,361,330) (81,795,361) (81,181,952) (21,119,030) Total governmental activities net position 527,172,491$ 559,848,767$ 555,582,180 560,085,769 606,902,772 Business type activities
Net investment in capital assets 150,228,905$ 149,771,777$ 163,565,980$ 154,904,203$ 157,413,884$ Restricted 17,516,341 17,399,398 3,702,600 4,671,097 3,702,600 Unrestricted 117,617 12,757,392 13,253,120 22,953,122 41,100,249 Total business type activities net position 167,862,863$ 179,928,567$ 180,521,700$ 182,528,422$ 202,216,733$ Primary government
Net investment in capital assets 805,273,482$ 791,881,205$ 785,684,986$ 780,587,870$ 766,969,256$ Restricted 38,015,692 28,500,067 18,961,135 20,255,151 22,169,030 Unrestricted (deficit) (148,253,820) (80,603,938) (68,542,241) (58,228,830) 19,981,219 Total primary government net position 695,035,354$ 739,777,334$ 736,103,880$ 742,614,191$ 809,119,505$ 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.

Fiscal Years
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
Schedule 1
Net Position by Component (Continued)
207
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2023 2022 2021 20204 20193
Expenses
Governmental activities:

General government 28,913,048$ 26,157,407$ 18,717,217$ 16,211,056$ 16,210,304$ Public protection 48,272,159 61,325,651 57,395,655 57,656,302 53,095,381 Culture and recreation 9,123,335 6,902,767 4,250,967 5,227,381 4,783,803 Highway and streets 12,081,743 9,754,750 11,057,940 4,060,779 10,183,231 Library 3,557,350 2,754,340 2,792,316 2,921,245 2,537,698 Interest and fiscal charges 792,780 738,561 888,750 994,894 683,446 Total governmental activities expenses 102,740,415 107,633,477 95,102,845 87,071,657 87,493,863 Business type activities:

Water 26,729,160 26,535,646 23,411,564 22,719,142 20,857,656 Disposal 17,755,193 15,637,376 15,026,409 15,194,462 16,162,875 Wastewater (Sewer) 13,554,178 11,764,304 12,077,904 11,242,914 9,926,236 Groves 1,880,763 1,146,879 991,602 845,498 849,678 Non-Potable Water 563,123 956,768 677,088 249,911 116,759 Cemetery 1,441,652 958,443 1,119,999 1,049,876 936,535 Aviation 819,188 715,647 582,770 637,012 617,285 Total business type activities expenses 62,743,257 57,715,063 53,887,336 51,938,815 49,467,024 Total primary government expenses 165,483,672$ 165,348,540$ 148,990,181$ 139,010,472$ 136,960,887$ Program Revenues
Governmental activities:

Charges for services:

General government 15,681,682$ 15,368,391$ 13,967,066$ 11,482,417$ 11,151,187$ Public safety 932,542 744,389 669,155 1,769,514 2,711,769 Culture and recreation 421,867 748,377 261,090 291,801 310,780 Highway and streets 332,187 355,465 350,025 2,311,254 2,322,468 Library 83,541 118,701 418,298 120,623 131,338 Operating grants and contributions 5,158,328 4,223,681 3,941,740 2,995,658 1,867,228 Capital grants and contributions 53,471,990 28,433,466 11,372,774 32,104,508 7,083,735 Total governmental activities program revenues 76,082,137 49,992,470 30,980,148 51,075,775 25,578,505 Business type activities:

Charges for services:

Wate
r 27,080,827 30,131,495 31,217,602 28,014,723 28,053,989 Disposal 20,313,945 21,066,272 19,009,933 18,566,965 17,159,911 Wastewater (Sewer) 12,465,052 11,998,633 10,124,426 10,154,451 10,229,449 Groves 1,681,761 863,303 684,782 481,632 930,738 Non-Potable Water 618,839 641,340 629,395 484,262 528,296 Cemetery 986,715 1,139,982 1,258,104 926,398 555,256 Aviation 136,727 135,480 125,857 133,262 120,087 Operating grants and contributions 385,895 631,695 20,125 55,371 56,555 Capital grants and contributions 4,010,635 6,134,627 2,840,765 6,800,041 5,450,817 Total business type activities program revenues 67,680,396 72,742,827 65,910,989 65,617,105 63,085,098 Total primary government program revenues 143,762,533$ 122,735,297$ 96,891,137$ 116,692,880$ 88,663,603$ Net (Expense)/Revenue
Governmental activities (26,658,278) (57,641,007) (64,122,697) (35,995,882) (61,915,358) Business type activities 4,937,139 15,027,764 12,023,653 13,678,290 13,618,074 Total primary government net expense (21,721,139)$ (42,613,243)$ (52,099,044)$ (22,317,592)$ (48,297,284)$ City of Redlands
Schedule 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
208
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20182 2017 2016 20151 2014
Expenses
Governmental activities:

General government 12,394,000$ 14,391,456$ 16,235,478$ 10,229,535$ 10,423,298$ Public protection 32,240,549 43,263,363 42,097,211 40,920,668 40,235,772 Culture and recreation 4,748,841 4,086,880 3,542,242 3,554,720 3,041,620 Highway and streets 12,854,490 11,271,259 15,594,075 12,043,276 4,002,946 Library 2,000,613 2,304,552 2,023,972 1,929,752 1,913,756 Interest and fiscal charges 834,297 936,132 1,123,871 1,297,837 1,447,056 Total governmental activities expenses 65,072,790 76,253,642 80,616,849 69,975,788 61,064,448 Business type activities:

Water 20,369,100 20,514,340 21,635,151 19,556,198 19,437,970 Disposal 12,877,703 12,274,583 12,172,640 12,201,957 11,131,004 Wastewater (Sewer) 8,851,848 8,979,254 8,956,871 8,030,897 8,505,197 Groves 788,554 742,740 841,529 689,839 630,488 Non-Potable Water 125,323 434,912 81,152 73,383 81,897 Cemetery 861,109 75,761 1,304,891 681,223 493,616 Aviation 466,972 785,348 609,088 333,061 421,012 Total business type activities expenses 44,340,609 43,806,938 45,601,322 41,566,558 40,701,184 Total primary government expenses 109,413,399$ 120,060,580$ 126,218,171$ 111,542,346$ 101,765,632$ Program Revenues
Governmental activities:

Charges for services:

General government 10,811,937$ 10,144,231$ 9,270,657$ 10,625,356$ 10,286,376$ Public safety 3,076,343 2,696,810 3,403,559 1,975,667 1,916,750 Culture and recreation 303,222 719,642 286,315 295,199 296,386 Highway and streets 1,895,996 1,361,187 1,205,141 1,681,146 1,716,965 Library 131,408 125,052 33,098 33,270 35,200 Operating grants and contributions 4,469,962 2,911,259 5,596,864 8,607,394 7,195,092 Capital grants and contributions 4,533,292 2,257,370 1,346,021 4,666,849 2,117,482 Total governmental activities program revenues 25,222,160 20,215,551 21,141,655 27,884,881 23,564,251 Business type activities:

Program revenues:

Wate
r 27,030,979 22,479,655 18,873,106 22,217,588 23,453,512 Disposal 15,110,821 13,657,953 13,504,267 12,887,067 11,623,769 Wastewater (Sewer) 9,611,197 9,340,274 9,531,484 9,688,884 9,576,740 Groves 741,397 700,334 507,914 798,577 740,707 Non-Potable Water 638,313 83,905 508,556 499,211 554,914 Cemetery 745,347 514,015 461,997 349,472 371,968 Aviation 127,233 575,846 15,214 16,472 16,704 - - - 180,000 180,000 Airport 347,871 816,777 392,189 4,593,429 3,433,586 Total business type activities program revenues 54,353,158 48,168,759 43,794,727 51,230,700 49,951,900 Total primary government program revenues 79,575,318$ 68,384,310$ 64,936,382$ 79,115,581$ 73,516,151$ Net (Expense)/Revenue
Governmental activities (39,850,630) (56,038,091) (59,475,194) (42,090,907) (37,500,197) Business type activities 10,012,549 4,361,821 (1,806,595) 9,664,142 9,250,716 Total primary government net expense (29,838,081)$ (51,676,270)$ (61,281,789)$ (32,426,765)$ (28,249,481)$ City of Redlands
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
209
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2023 2022 2021 20204 20193
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes 40,372,312$ 37,769,495$ 35,722,886$ 33,743,135$ 31,833,632$ Sales and taxes 48,632,853 48,232,171 26,541,469 17,510,274 18,838,445 Franchises taxes 4,487,821 2,625,852 2,379,571 2,369,348 2,221,789 Other taxes 3,109,696 2,706,919 2,462,019 2,031,015 2,061,674 Investment income (loss) 2,757,278 (1,546,892) 282,836 1,869,008 2,421,036 Intergovernmental (unrestricted) - 1,308,520 1,455,573 167,157 187,586 Miscellaneous revenue 572,685 1,689,391 3,064,706 1,865,686 1,498,562 Gain on sale of capital assets 4,734,390 - - - - Transfers 2,742,192 48,127,470 3,660,469 1,856,495 2,943,934 Total governmental activities 107,409,227 140,912,926 75,569,529 61,412,118 62,006,658 Business type activities:

Property taxes 96,621 73,337 79,616 81,098 85,928 Investment income (loss) 1,123,030 (2,746,746) 557,392 3,214,540 3,310,733 Miscellaneous revenue 1,107,435 1,208,057 1,637,223 1,327,610 1,770,702 Gain on sale of capital assets - 44,643,370 - - - Extraordinary gain - - - - - Transfers (2,742,192) (48,127,470) (3,660,469) (1,856,495) (2,943,934) Total business type activities (415,106) (4,949,452) (1,386,238) 2,766,753 2,223,429 Total primary governmen
t 106,994,121$ 135,963,474$ 74,183,291$ 64,178,871$ 64,230,087$ Change in Net Position
Governmental activities 80,750,949$ 83,271,919$ 11,446,832$ 25,416,236$ 91,300$ Business type activities 4,522,033 10,078,312 10,637,415 16,445,043 15,841,503 Total primary government 85,272,982$ 93,350,231$ 22,084,247$ 41,861,279$ 15,932,803$ 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)
210
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388 of 923
20182 2017 2016 20151 2014
General Revenues and
Other Changes in Net Position
Governmental activities:

Taxes
Property taxes 30,067,473$ 28,173,741$ 26,424,395$ 25,157,824$ 24,650,592$ Sales and taxes 17,177,492 16,843,090 18,344,596 16,040,049 15,219,210 Franchises taxes 3,224,053 3,035,317 3,079,571 3,735,682 3,235,114 Other taxes 1,907,344 1,977,985 1,792,527 1,681,618 1,473,576 Investment income (loss) 206,304 212,991 800,889 467,427 517,169 Intergovernmental (unrestricted) 195,866 196,602 234,787 424,385 165,974 Miscellaneous revenue 1,689,135 7,331,734 1,105,258 1,035,134 689,160 Gain on sale of capital assets - - - - - Transfers 8,243,110 2,500,914 4,486,199 16,113,690 10,654,350 Total governmental activities 62,710,777 60,272,374 56,268,222 64,655,809 56,605,145 Business type activities:

Property taxes 66,263 40,199 38,109 35,225 34,597 Investment income (loss) 509,882 500,783 1,335,997 921,859 1,053,356 Miscellaneous revenue 2,457,912 4,627,943 2,911,966 1,152,177 1,032,469 Gain on sale of capital assets - - - 4,840 28,334 Extraordinary gain - - - - 2,024,168 Transfers (8,243,110) (2,500,914) (4,486,199) (16,113,690) (10,654,350) Total business type activities (5,209,053) 2,668,011 (200,127) (13,999,589) (6,481,426) Total primary governmen
t 57,501,724$ 62,940,385$ 56,068,095$ 50,656,220$ 50,123,719$ Change in Net Position
Governmental activities 22,860,147$ 4,234,283$ (3,206,972)$ 22,564,902$ 19,104,948$ Business type activities 4,803,496 7,029,832 (2,006,722) (4,335,447) 2,769,290 Total primary government 27,663,643$ 11,264,115$ (5,213,694)$ 18,229,455$ 21,874,238$ 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)
211
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2023 20222 2021 2020 2019
General fund
Nonspendable 8,214,591$ 8,369,652$ 8,327,781$ 8,469,766$ 8,707,654$ Restricted 1,260,683 1,157,866 1,076,656 1,058,540 1,104,848 Committed 12,492,698 12,663,905 11,863,318 8,285,676 8,285,676 Assigned 35,700,799 31,734,961 4,188,185 3,901,788 3,894,566 Unassigned 53,289,070 39,513,840 29,877,229 19,000,734 17,654,773 Total general fund 110,957,841 93,440,224 55,333,169 40,716,504 75,382,147 All other governmental funds
Nonspendable 574,827 43,400 30,200 104,242 123,682 Restricted 11,961,583 9,980,754 13,024,622 16,266,437 14,541,638 Committed 11,893,350 11,409,016 10,748,915 11,048,266 9,738,292 Assigned 2,325,558 2,560,682 2,742,004 1,463,122 1,480,036 Unassigned (deficit) (8,448,957) (6,610,754) (7,558,978) (7,740,144) (8,548,572) Total all other governmental fund 18,306,361 17,383,098 18,986,763 21,141,923 17,335,076 TOTAL FUND BALANCES 129,264,202$ 110,823,322$ 74,319,932$ 61,858,427$ 92,717,223$ (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
212
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2018 2017 2016 20151 2014
General fund
Nonspendable 8,734,646$ 8,517,994$ 8,324,472$ 7,481,159$ 7,857,633$ Restricted 1,057,918 - - - - Committed 8,285,676 8,122,332 8,122,332 7,935,152 7,903,654 Assigned 4,063,636 2,130,916 2,267,840 1,883,794 - Unassigned 13,592,754 13,927,733 13,454,147 14,510,450 12,586,391 Total general fund 35,734,630 32,698,975 32,168,791 31,810,555 28,347,678 All other governmental funds
Nonspendable 123,661 2,539,567 - 327,340 384,873 Restricted 19,321,372 9,563,703 15,258,535 15,584,054 18,365,510 Committed 8,441,919 8,013,248 7,212,199 6,698,593 6,816,041 Assigned 1,204,854 3,419,978 - - - Unassigned (deficit) (8,761,721) (10,470,797) (9,553,680) (7,849,278) (8,787,268) Total all other governmental fund 20,330,085 13,065,699 12,917,054 14,760,709 16,779,156 TOTAL FUND BALANCES 56,064,715$ 45,764,674$ 45,085,845$ 46,571,264$ 45,126,834$ (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)
213
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391 of 923
2023 20222
2021 2020 2019
Revenues
Taxes 97,890,204$ 92,468,816$ 68,307,527$ 57,080,368$ 56,188,843$ Licenses and permits 8,862,824 8,122,570 7,579,479 9,786,703 9,363,446 Intergovernmental 11,470,217 8,748,788 7,520,076 5,052,310 4,290,382 Charges for services 12,139,614 15,275,610 9,853,495 9,659,518 9,912,278 Use of money and property 482,019 (3,135,140) 248,353 1,659,740 1,823,854 Other miscellaneous 2,468,702 1,577,070 1,712,985 2,846,580 1,930,916 Total revenues 133,313,580 123,057,714 95,221,915 86,085,219 83,509,719 Expenditures
Current:

General government 25,336,594 23,345,899 16,897,961 14,842,765 14,702,684 Public safety 54,055,313 50,048,806 50,208,365 48,554,670 45,514,084 Culture and recreation 7,405,824 5,346,330 3,154,163 3,244,432 3,286,739 Highway and streets 5,851,214 4,491,032 4,657,068 6,998,840 6,565,573 Library 3,125,090 2,601,164 2,426,448 2,464,463 2,158,580 Other pass-through payments - - - - - Capital outlay 14,328,396 47,887,675 11,067,756 4,819,364 10,307,277 Debt service:

Principal 2,545,598 2,061,323 1,708,629 1,477,188 2,688,630 Interest and fiscal charges 851,968 612,391 488,363 548,472 665,241 Total expenditures 113,499,997 136,394,620 90,608,753 82,950,194 85,888,808 Excess of revenues over (under) expenditures 19,813,583 (13,336,906) 4,613,162 3,135,025 (2,379,089) Other financin
g sources (uses)
Proceeds from sale of property - - 1,425,889 89,657 252,613 Inception of finance purchase agreement - 3,275,547 362,413 - - Inception of lease liability 384,011 196,119 - - - Contributions to other governments - - - - - Transfers in 11,455,770 69,860,227 14,158,728 12,557,880 16,569,439 Transfers out (13,212,484) (23,491,596) (11,759,357) (10,906,728) (13,525,085) Total other financing sources (uses) (1,372,703) 49,840,297 4,187,673 1,740,809 3,296,967 Net change in fund balances 18,440,880$ 36,503,391$ 8,800,835$ 4,875,834$ 917,878$ Restatements -$ -$ 3,660,669$ -$ -$ Debt service as a percentage of non-capital
expenditures 1

3.4% 3.0% 2.8% 2.6% 4.4%
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.

Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
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.

City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds
214
Redlands Regular Meeting of 02-20-24
392 of 923
2018 2017 2016 2015 2014
Revenues
Taxes 53,608,771$ 51,196,332$ 49,641,089$ 46,615,173$ 44,578,492$ Licenses and permits 8,249,522 8,482,996 7,321,567 11,582,473 8,668,245 Intergovernmental 4,029,164 4,266,267 3,637,854 5,602,252 6,305,374 Charges for services 8,100,020 7,484,890 7,469,738 7,283,095 7,186,570 Use of money and property 185,610 191,541 717,504 431,301 491,377 Other miscellaneous 4,866,979 3,958,621 3,785,796 1,900,979 1,472,348 Total revenues 79,040,066 75,580,647 72,573,548 73,415,273 68,702,406 Expenditures
Current:

General government 12,830,680 12,351,772 12,915,590 11,041,353 10,562,420 Public safety 45,246,205 42,755,811 40,337,356 37,891,668 37,633,605 Culture and recreation 2,870,721 2,611,210 2,481,223 2,791,661 2,631,892 Highway and streets 7,033,817 5,695,084 5,034,090 6,107,137 5,913,207 Library 1,989,717 1,942,607 1,909,442 1,824,593 1,762,608 Other pass-through payments - - - - - Capital outlay 6,132,826 15,476,158 11,481,823 23,146,625 13,431,527 Debt service:

Principal 3,043,767 3,115,653 3,947,223 3,701,474 3,948,940 Interest and fiscal charges 812,002 976,711 1,158,384 1,343,002 1,489,466 Total expenditures 79,959,735 84,925,006 79,265,131 87,847,513 77,373,665 Excess of revenues over (under) expenditures (919,669) (9,344,359) (6,691,583) (14,432,240) (8,671,259) Other financin
g sources (uses)
Proceeds from sale of property 1,975,203 6,272,810 311,189 16,083 185,625 Inception of finance purchase agreement - - - - - Inception of lease liability - - - - - Contributions to other governments - - - (100,919) - Transfers in 19,326,814 15,430,085 15,911,839 29,941,931 20,792,923 Transfers out (9,788,204) (11,558,209) (9,720,247) (13,980,425) (10,187,645) Total other financing sources (uses) 11,513,813 10,144,686 6,502,781 15,876,670 10,790,903 Net change in fund balances 10,594,144$ 800,327$ (188,802)$ 1,444,430$ 2,119,644$ Restatements -$ -$ -$ -$ (33,695)$ Debt service as a percentage of non-capital
expenditures 1

5.2% 5.9% 7.5% 8.1% 9.5%
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
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.

City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds (Continued) 215
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Fiscal Year Taxable Total
Ended Less: Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Rate
2023 11,786,415 339,774 (70,106) 12,056,083 0.21821 2022 11,148,507 342,259 (72,875) 11,417,891 0.21869 2021 10,700,129 358,630 (73,396) 10,985,363 0.21864 2020 10,187,750 361,653 (74,204) 10,475,199 0.21874 2019 9,564,308 387,527 (74,744) 9,877,091 0.21877 2018 9,090,915 328,121 (76,265) 9,342,771 0.21877 2017 8,616,414 309,224 (76,808) 8,848,830 0.21877 2016 8,112,897 337,359 (74,030) 8,376,226 0.21877 2015 7,725,648 316,364 (75,033) 7,966,979 0.21913 2014 7,311,929 313,408 (76,552) 7,548,785 0.22927 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
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CATEGORY 2023 2022 2021 2020 2019
Residential 7,877,964 7,407,486 7,072,365 6,708,893 6,246,593 Commercial 1,387,866 1,299,726 1,253,237 1,176,203 1,085,468 Industrial 1,444,607 1,361,167 1,326,479 1,253,275 1,201,011 Government 6,929 15,553 2,883 576 548 Institutional 22,473 21,841 20,405 18,506 18,463 Irrigated 29,799 25,897 27,275 28,199 26,136 Miscellaneous 45,389 36,104 37,025 33,513 39,302 Recreational 48,611 55,431 51,028 50,098 49,887 Vacant Land 264,095 270,853 222,964 232,018 199,973 SBE Nonunitary 634,683 654,449 686,469 686,469 696,927 Unsecured 363,771 360,182 358,629 361,653 387,527 Unknown - - - - - Total Assessed Value 12,126,187 11,508,689 11,058,759 10,549,403 9,951,835 Less: Exemptions (70,106) (72,875) (73,396) (74,204) (74,744) Taxable Assessed Value 12,056,081 11,435,814 10,985,363 10,475,199 9,877,091 Total Direct Rate 0.21821 0.21755 0.21718 0.21732 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
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
Fiscal Years
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CATEGORY 2018 2017 2016 2015 2014*
Residential 5,935,215 5,643,230 5,355,614 5,102,276 4,781,493 Commercial 1,040,344 988,145 959,063 941,128 920,337 Industrial 1,160,879 1,035,053 790,087 774,960 675,107 Government 522 513 505 1,478 498 Institutional 17,188 16,293 16,172 15,809 15,906 Irrigated 26,471 26,750 26,691 30,844 41,179 Miscellaneous 27,016 26,495 23,785 22,390 20,217 Recreational 49,678 32,808 32,520 31,962 31,852 Vacant Land 200,329 209,375 277,305 231,763 234,071 SBE Nonunitary 633,273 637,752 631,155 573,038 591,269 Unsecured 328,121 309,224 337,359 316,364 313,408 Unknown - - - - - Total Assessed Value 9,419,036 8,925,638 8,450,256 8,042,012 7,625,337 Less: Exemptions (76,265) (76,808) (74,030) (75,033) (76,552) Taxable Assessed Value 9,342,771 8,848,830 8,376,226 7,966,979 7,548,785 Total Direct Rate 0.21877 0.21877 0.21877 0.21913 0.22927 City of Redlands
Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property by Major Type (Continued) Last Ten Fiscal Years
Fiscal Years
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2023 2022 2021 2020 2019
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 0.00740 0.00740 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 Admin 3-6 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 0.02640 0.02640 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 0.02790 0.06620 0.03600 0.03390 0.03240 San Bernardino Community College 0.04500 0.05340 0.06510 0.05620 0.04070 San Bernardino Unified 0.08780 0.10890 0.10340 0.09690 0.11260 San Bernardino Valley Municipal Water 0.13000 0.13000 0.14250 0.14250 0.15250 Total Voter Approved Rate 0.29070 0.35850 0.34700 0.32950 0.33820 Total Direct and Overlapping Rate 1.29070 1.35850 1.34700 1.32950 1.33820 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) 0.21821 0.21755 0.21718 0.21732 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 220
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2018 2017 2016 2015 2014
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 Redlands Unified 0.04940 0.05240 0.05670 0.05940 0.06290 San Bernardino Community College 0.03760 0.03500 0.04030 0.03930 0.04190 San Bernardino Unified 0.10070 0.07950 0.11820 0.10810 0.13500 San Bernardino Valley Municipal Water 0.15250 0.16250 0.16250 0.16250 0.16250 Total Voter Approved Rate 0.34020 0.32940 0.37770 0.36930 0.41280 Total Direct and Overlapping Rate 1.34020 1.32940 1.37770 1.36930 1.41280 City Share of 1% Levy Per Prop 13 (3) 0.21878 0.21878 0.21878 0.21878 0.21878 Redlands Debt Service - - - - 0.01050 City Direct Rate (4) 0.21877 0.21877 0.21877 0.21913 0.22927 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 221
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Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Southern California Edison Company 632,551$ 5.25% 591,039$ 7.83% Prologis LP* 209,073 1.73% 62,390 0.83% NYS New LLC** 143,955 1.19% 69,907 0.93% PVT Apartments SPE LLC 137,284 1.14% - - BCI-OEF Redlands DC LP 110,069 0.91% - - Ashley Furniture Industries 94,810 0.79% - - AMB Institutional Alliance Fund III 94,652 0.79% 57,000 0.76% Redlands Owner LP 90,280 0.75% - - Duke Realty LP 82,953 0.69% - - 2301 W. San Bernardino Ave Invest Group 63,837 0.53% 44,000 0.58% Parkview Terrace Associates LLC - - 83,175 1.10% NP Redlands LLC - - 62,741 0.83%
CLPF - Redlands Business Center - - 45,776 0.61% Environmental Systems Research Institute - - 35,299 0.47% PACGWL LLC - - 30,235 0.40%
Top Ten Total 1,659,464$ 13.76% 1,081,562$ 14.33% City Total Net Taxable Assessed Value 12,056,083$ 7,548,785$ * Formerly known as Prologis California II LP
** Pending appeals on parcels
Source: San Bernardino County Assessor (via HdL, Coren & Cone) Fiscal Year 2023 and Ten Years Prior
2014
City of Redlands
Schedule 8
Top Ten Principal Property Taxpayers
(in Thousands)
2023
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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 2023 49,559,611$ 49,351,461$ 99.58% 651,627$ 50,003,088$ 100.89% 2022 49,347,531$ 49,204,423$ 99.71% 691,484$ 49,895,907$ 101.11% 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 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 2023 4,607,478$ -$ -$ 4,869,725$ 9,477,203$ 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 NOTE:

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

As of 6/30/2023, that indebtedness has been fully satisfied.

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
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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 -$ -$ 1,660,000$ -$ 13,028,749$ 14,688,749$ 24,165,952$ 0.78% 334 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 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 2023 - 4,607 - - 4,607 185 4,422 0.04% 61 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 -
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 6/30/2023, that indebtedness has been fully satisfied.

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 2022-2023 Assessed Valuation 12,032,086,055$ Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 06/30/23 Debt
Overlapping Tax and Assessment Debt:

San Bernardino Community College District 13.016% 708,007,978$ 92,154,318$ Redlands Unified School District 55.847% 54,383,512 30,371,560$ San Bernardino City Unified School District 0.037% 262,865,410 97,260$ City of Redlands Community Facilities District No. 2001-1 100.000% 2,535,000 2,535,000$ City of Redlands Community Facilities District No. 2003-1 100.000% 6,830,000 6,830,000$ Total Overlapping Tax and Assessment Debt 1,034,621,900 131,988,139 Overlapping General Fund Debt:

San Bernardino County General Fund Obligations 4.142% 160,860,000 6,662,821 San Bernardino County Pension Obligations 4.142% 62,960,000 2,607,803 San Bernardino County Flood Control District General Fund Obligations 4.142% 41,065,000 1,700,912 San Bernardino City Unified School District (Certificates of Participation) 0.037% 76,370,000 28,257 Yucaipa-Calimesa Joint Unified School District (Certificates of Participation) 0.695% 5,497,409 38,207 Total Overlapping General Fund Debt 346,752,409 11,038,001 Overlapping Tax Increment Debt (Successor Agencies)
San Bernardino County Inland Valley Tax Allocation Bonds 6.067% 215,135,000 13,052,240$ Total Overlapping Tax Increment Debt 215,135,000 13,052,240 Total Gross Overlapping General Fund Debt 561,887,409 24,090,241 Total Gross Overlapping Debt 156,078,380$
Direct General Fund Debt:

City of Redlands Pension Obligations 100.000% 3,925,485 3,925,485 Total Direct General Fund Debt 3,925,485
Direct Loan/Capital Lease Debt:

I-Bank Sports Park Lease 100.000% 1,154,446$ 1,154,446$ Finance Purchase Agreements and Leases Payable 100.000% 3,024,120 3,024,120 Total Direct General Fund Debt 4,178,566 4,178,566 Total Direct Debt 8,104,051$
Combined Total Direct and Overlapping Debt 2 164,182,431$ 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 Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue.

Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.10%
Total Direct Debt ($3,925,485) 0.03%
Combined Total Debt 1.33%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,622,271,373) Total Overlapping Tax Increment Debt 0.80%
Sources: Avenu Insights and Analytics
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of Redlands. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City of Redlands boundaries and dividing it by each unit's total taxable assessed value.

City of Redlands
Direct and Overlapping Governmental Activities Debt
Schedule 12
As of June 30, 2023
This report reflects debt which is being repaid through voter-approved tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation, unless provided by the City of Redlands. 227
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Legal Debt Margin Calculation 2023 2022 2021 2020 2019
Assessed valuation 12,056,083,275 11,435,814,517 10,985,363,463 10,475,199,528 9,877,091,307 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 3,014,020,819 2,858,953,629 2,746,340,866 2,618,799,882 2,469,272,827 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 452,103,123 428,843,044 411,951,130 392,819,982 370,390,924 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin 452,103,123 428,843,044 411,951,130 392,819,982 370,390,924 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.

City of Redlands
Schedule 13
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
228
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Legal Debt Margin Calculation 2018 2017 2016 2015 2014
Assessed valuation 9,342,770,314 8,925,637,991 8,450,256,632 8,042,012,336 7,625,337,937 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,335,692,579 2,231,409,498 2,112,564,158 2,010,503,084 1,906,334,484 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 350,353,887 334,711,425 316,884,624 301,575,463 285,950,173 Total net debt applicable to limit:

General obligation bonds - - - - - Legal debt margin 350,353,887 334,711,425 316,884,624 301,575,463 285,950,173 Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.0% 0.0% Last Ten Fiscal Years
Fiscal Year
City of Redlands
Schedule 13
Legal Debt Margin Information (Continued)
229
Redlands Regular Meeting of 02-20-24
407 of 923
Fiscal Year Less Net
Ended Water Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2023 - - - - - N/A 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 Fiscal Year Less Net
Ended Wastewater Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2023 - - - - - N/A 2022 - - - - - N/A 2021 - - - - - N/A 2020 - - - - - N/A 2019 - - - - - N/A 2018 9,689,226 7,274,339 2,414,887 990,000 19,800 * 2.39 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 Fiscal Year Less Net
Ended Solid Waste Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2023 20,447,864 16,549,875 3,897,989 1,580,000 122,500 2.29 2022 21,106,844 14,161,410 6,945,434 1,500,000 199,500 3.21 2021 19,780,794 13,669,667 6,111,127 1,430,000 272,750 2.82 2020 19,833,178 13,639,644 6,193,534 1,360,000 342,500 3.64 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 NOTE:
* In 2016, the Water Refunding Revenue Bonds Series 2012A matured and were paid in full. * In 2018, the Wastewater Refunding Revenue Bonds Series 2012A matured and were paid in full.