CITY OF RIALTO
CALIFORNIA
ANNUAL
COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2021
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CITY OF RIALTO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................... i Directory of Officials ................................................................................................................................... v Organizational Chart ................................................................................................................................. vi
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................... 1
Management’s Discussion and Analysis .................................................................................................. 5
Basic Financial Statements:
Statement of Net Position ........................................................................................................... 19 Statement of Activities ................................................................................................................ 20
Governmental Funds:
Balance Sheet ............................................................................................................................ 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......................................................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balances ................................ 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................................... 25
Proprietary Funds:
Statement of Net Position .......................................................................................................... 26 Statement of Revenues, Expenses and Changes in Net Position .......................................... 28 Statement of Cash Flows ........................................................................................................... 30
Fiduciary Funds:
Statement of Net Position .......................................................................................................... 32 Statement of Changes in Net Position ...................................................................................... 33
Notes to Financial Statements .......................................................................................................... 35
Required Supplementary Information:
Pension Plans:
Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ............................................................................................................. 92 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ........................................................................................................................... 94 Schedule of Plan Contributions ................................................................................................. 96
CITY OF RIALTO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
OPEB Plan:
Schedule of Changes in the Net OPEB Liability and Related Ratios ..................................... 98 Schedule of Plan Contributions .............................................................................................. 99
Budgetary Comparison Schedule:
General Fund ............................................................................................................................ 100 Park Development Special Revenue Fund ............................................................................. 101
Notes to Required Supplementary Information ............................................................................. 103
Supplementary Information:
Combining Balance Sheet – Nonmajor Governmental Funds ................................................... 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .............................................................................................. 122
Budgetary Comparison Information – Special Revenue Funds:
Gas Tax ........................................................................................................................... 133 Transportation Enhancement Activities Fund .................................................................. 134 Street Lighting and Landscape Maintenance Fund ......................................................... 135 Landscape and Lighting District No. 2 Fund ................................................................... 136 Traffic Development Fund ............................................................................................... 137 Office of Traffic Safety Fund ............................................................................................ 138 Retirement Tax Fund ....................................................................................................... 139 Open Space Development Fund ..................................................................................... 140 General Facilities Development Fund ............................................................................. 141 Library Facilities Development Fund ............................................................................... 142 Major Grant Funding Fund .............................................................................................. 143 Police Development Fund ............................................................................................... 144 Fire Development Fund ................................................................................................... 145 Waste Management Fund ............................................................................................... 146 South Coast Air Quality Management Fund (SCAQMD) Fund ....................................... 147 Asset Forfeiture Fund ...................................................................................................... 148 Police Grants Fund .......................................................................................................... 149 Community S
ervices Grant Fund .................................................................................... 150 Citizens Option for Public Safety Fund ............................................................................ 151 Local Law Enforcement Block Grant Fund ...................................................................... 152 CDBG Fund ..................................................................................................................... 153 Traffic Safety Prop 1B Fund ............................................................................................ 154 Neighborhood Stabilization Program Fund ..................................................................... 155 Neighborhood Stabilization Program – Program Income Fund ....................................... 156 Measure I Fund ............................................................................................................... 157 Fire Grants Fund ............................................................................................................. 158 Fire Ground Emergency Transportation Fund ................................................................. 159
CITY OF RIALTO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Cal Home Fund ............................................................................................................... 160 Housing Authority Fund ................................................................................................... 161 Public, Educational, and Governmental (PEG) Fees Fund ............................................. 162 Transportation Development Act (TDA) Fund ................................................................. 163 Street Medians Development Fund ................................................................................. 164 Local Drainage Fund ................................................................................................................ 165 Capital Projects Funds .......................................................................................................... 166 Fair Share Agreement Fund ................................................................................................. 167 2005 TABS Fund .................................................................................................................. 168 2008 TABS Fund .................................................................................................................. 169 1997 COP Fund ........................................................................................................................ 170
Non-Major Proprietary Funds:
Combining Statement of Net Position ..................................................................................... 172 Combining Statement of Revenues, Expenses and Changes in Net Position ..................... 173 Combining Statement of Cash Flows ...................................................................................... 174
Internal Service Funds:
Combining Statement of Net Position ..................................................................................... 176 Combining Statement of Revenues, Expenses and Changes in Net Position ..................... 178 Combining Statement of Cash Flows ...................................................................................... 180
Custodial Funds:
Combining Statement of Assets and Liabilities - Custodial Funds ........................................ 182 Statement of Changes of Assets and Liabilities - Custodial Funds ..................................... 183
CITY OF RIALTO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
STATISTICAL SECTION
Financial Trends:
Net Position by Component ............................................................................................................ 188 Changes in Net Position ................................................................................................................. 190 Fund Balances of Governmental Funds ...................................................................................... 194 Changes in Fund Balance of Governmental Funds ................................................................... 196
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property .............................................. 200 Property Tax Rates Direct and Overlapping Governments .......................................................... 202 Principal Property Taxpayers ...................................................................................................... 204 Top 25 Principal Sales Taxpayers .................................................................................................. 205 Property Tax Levies and Collections .............................................................................................. 206
Debt Capacity:
Ratios of Outstanding Debt by Type ........................................................................................... 208 Ratio of General Bonded Debt Outstanding .................................................................................. 209 Legal Debt Margin Information ....................................................................................................... 210 Direct and Overlapping Debt ....................................................................................................... 213 Pledged Revenue Coverage - Water / Wastewater Revenue Bonds .......................................... 214
Demographic and Economic Information:
Demographic and Economic Statistics .......................................................................................... 218 Principal Employers ..................................................................................................................... 219
Operating Information:
Authorized Full-time and Part-time Employees by Function ......................................................... 222 Operating Indicators by Function/Program .................................................................................... 223 Capital Assets Statistics by Function/Program .............................................................................. 224 ,1752'8&725<6(&7,21
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Directory of Officials
ED SCOTT
MAYOR PRO TEM
KARLA PEREZ
COUNCIL MEMBER
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CITY CLERK
EDWARD J. CARRILLO
CITY TREASURER
RAFAEL TRUJILLO
COUNCIL MEMBER
ANDY CARRIZALES
COUNCIL MEMBER
DEBORAH ROBERTSON
MAYOR
City Wide Organization Chart
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203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Rialto, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund i nformation of City of Rialto, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, t he business-type activities, each major fund, and the aggregate remaining fund information of the City of Rialto, California, as of June 30, 2021, 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 audit in accordance with auditing standards ge nerally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our re sponsibilities under those standards are further described in the Auditor’s Responsibiliti es for the Audit of the Financial Statements section of our report. We are required to be independent of th e City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting prin ciples generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control rel evant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt about the City’s ability to continue as a going concern for twelve months beyond the date of the financial statements.
To the Honorable Mayor and Members of the City Council
City of Rialto, California
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with t he GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skept icism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate th e overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund and Park Development fund, the schedule of changes in net pension liability and rela ted ratios (miscellaneous and safety plans), the schedule of plan contributions, the schedule of changes in net OPEB liability and related ratios, and the schedule of plan contributions – other post-employment benefits plan, be presented to supplement the basic financial statements. Such information is the responsibil ity of management and, although not a part of the basic financial statements, is required by the Governmen tal Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management a bout the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 To the Honorable Mayor and Members of the City Council City of Rialto, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures a pplied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional pro cedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does not cover the other information, and we do not express an opinion or any form of as surance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statem ents, or the other information otherwise appears to be materially misstated. If, b ased on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated March 29, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the s cope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Brea, California
March 29, 2022
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4 5
CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS T
CHART 1—N ET POSITION
he management of the City of Rialto has prepared this narrative overview and analysis of the financial activities of the City for the Fiscal Year (FY) ending June 30, 2021. This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements and to provide financial comparisons with the previous year. Please read this information in conjunction with the City’s financial statements, which follow this section. As of June 30, 2021, the City’s net position increased to $370.2 million (see Chart 1). Net position represents
the difference between the City’s resources (total assets) and deferred outflows of r esources, totaling $787.7 mil- lion, versus its obligations (t otal liabilities) and deferred inflows of resources totaling $417.5 million.
Total assets increased by $50.6 million. This was due to increase of $39.8 million in Cash and Investments and
$6.6 million in Capital Assets; these increases were off- set by $3.4 million and a $8 67 thousand decrease in un- billed receivables and restricted assets, respectively. Total liabilities increased $29.7 million attributed to a $14.3 million increase in Unearned Revenue, and by a
$13.6 million increase in Pension Liability.
The Statement of Revenues, Expenditures, and Changes in Fund Balances for Governmental Funds reported an
increase in fund balance of $27.4 million. The key con- tributing factor was an increase of $21.2 million in the category of “Taxes”.
Total General Fund revenues for the fiscal year 2021 totaled $115.8 million, re presenting a $18.4 million in- crease from the prior year. General Fund expenditures M
D
ANAGEMENT’S
&
ISCUSSION
A NALYSIS
INANCIAL HIGHLIGHTS F
increased to $93.2 million from $85.2 compared from
the prior fiscal year.
Tax Revenues of $89.8 million, increased by $21.2 mil- lion from last year. This was due to the increase in Sales Tax from a local warehouse that moved its point of sale to inside the City instead of reporting to the state-pool. As of June 30, 2021, the General Fund - fund balance totaled $104.6 million, of which $24.4 million is consid- ered non-spendable, as it represents prepaid items, de- posits, advances to other funds, inventory and property held for resale. The total remaining fund balance after non-spendable fund balances is $80.2 million of which
$12.2 million has been committed to be used for specific capital projects. The remaining $68.0 million is restrict- ed for Community Development (25.8 million), or unas-
signed and is available for contingencies (42.2 million).
The City’s General Fund Economic Uncertainty Reserve
Policy for fiscal year 2021 is to maintain a minimum
balance of 30% of the General Fund operating expendi-
ture budget, which is $25.8 million.
5 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS he City of Rialto’s Annual Report consists of four
parts: Management’s Discussion and Analysis
(this section), the basic financial statements, re-
quired supplementary information, and supple-
mentary information that pr esents combining statements for non-major governmental funds, non-major enterprise
funds, and internal service funds and agency funds. The basic financial statements include two kinds of statements that presents different views of the City.
The government-wide financial statements provide
both long-term and short-te rm information about the
City’s overall financial status in a manner similar to a private-sector business.
The fund financial statements focus on individual parts of the City government and report the City’s opera-
tions in a more detailed format than the government-
wide statements.
The fund statements can be divided into three categories:
Governmental fund statements tell how general gov-
ernment services such as Police, Fire, Public Works,
and special revenue funds were financed in the short-
term, as well as remaining balances for future expendi- tures.
Proprietary fund statements offer short-term and long- term financial information about the activities the City operates such as utilities services, airport, and the
cemetery.
Fiduciary fund statements provide information about
financial relationships in which the City acts solely as a trustee or agent for the benefit of other governmental units, private organizations, or individuals to whom
the resources belong.
The notes to the financial statements provide additional information that is essential to the full understanding of the data provided in the government-wide and fund finan- cial statements. This report also presents certain required supplementary information including budgetary compari-
son schedules for governmental funds. The notes to the required supplementary information present information
concerning the City’s budget process.
In addition to these required elements, combining state- ments and schedules that provi de details about non-major governmental funds, and non-major enterprise funds, in- ternal service funds, and agency funds are also presented.
T
Required Components of the
City of Rialto’s Annual Financial Report
Government-
wide
Financial
Statements
Fund
Financial
Statements
Notes
to the
Financial
Statements
Manage-
ment’s
Discussion
and Analysis
Basic
Financial
Statements
Required
Supplemen-
tary
Information
Summary Detail
VERVIEW OF THE O
FINANCIAL STATEMENTS
6 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS Net position represents the difference between the City’s resources and its obligations. Over time, net position may serve as an indication of a gove rnment’s financial position.
The City’s combined net position as of June 30, 2021,
(shown in Table 1) was $370.2 million.
The City utilizes three classifications for net position: net investment in capital assets, restricted and unrestricted.
Net investment in capital assets: Of the total primary gov- ernment net position, $390.8 million is net investment in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure). The City uses capital assets to provide services to citizens; however, these assets are not available for future spending.
Restricted: An additional portion of the City’s net position, which equates to $170.1 milli on, represents resources sub- ject to external restrictions on how they may be used, such as, transportation, development, grants and debt service reserve requirements for the outstanding bonds.
Unrestricted: The remaining balance represents a negative $190.7 million in unrestricted net position. Unrestricted net position is a negative $99.9 million and a negative $90.8 million for governmental and business-type activities, re- spectively.
The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.
TABLE 1—S UMMARY OF NET POSITION
The combined net position of the primary government in- creased this fiscal year from $340.1 million, at June 30, 2020, to $370.2 million at June 30, 2021. The governmen- tal activities’ total net position increased by $21.3 million while business-type net position increased by $8.6 million net of restatements of $-5.5 million and $3.8 million re- spectively from the prior year.
The most significant changes to the primary government’s net position were a result of total liabilities increasing by $29.7 million, primarily resulting from a $15.5 million in- crease in non-current liabilities.
Another factor contributing to the increase in net position is the $7.7 million or 34.8% increase in total deferred out- flows of resources.
NET POSITION
CHANGES IN NET POSITION
INANCIAL ANALYSIS OF THE F
GOVERNMENT-WIDE STATEMENTS
7 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS he fund financial statemen ts provide more detailed
information about the City’s most significant
funds, not the City as a whole. A fund is an ac-
counting entity with a self-balancing set of accounts that the City uses to keep track of resources that have been segregat- ed for specific activities or objectives.
The City has three types of funds:
Governmental funds—Most of the City’s basic services are included in governmental funds, which are used to
account for (1) short-term inflows and outflows of
spendable resources, and (2) the remaining year-end
balances available for spending. Due to the fact that
this information does not encompass the additional long -term focus of the government-wide statements, a rec-
onciliation that explains the relationship (or differences) between governmental funds and governmental activi-
ties follow each of the governmental funds statements.
Proprietary funds —Services for which customer fees
are intended to finance the costs of operations are gen- erally reported in proprietary funds. Proprietary funds and financial statements, like the government-wide
statements, provide both long -term and short-term fi-
nancial information.
Enterprise funds are used to report the same func-
tions presented as business-type activities in the
government-wide financial statements.
Internal service funds report activities that provide services for the City’s other programs and activities,
such as the City’s Fleet Fund, Worker’s Compensa-
tion, General Liability, Management Information
System, and Building Maintenance Fund.
Fiduciary funds —Fiduciary funds are used to account for resources held for the benefit of parties outside of the City. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the City’s fiduciary activities are re- ported in a separate Statement of Fiduciary Net Posi-
tion. We exclude these activ ities from the City’s gov- ernment-wide financial statements because the City can- not use these assets to finance its operations.
T
he government-wide statements report infor-
mation about the City as a whole using account-
ing methods similar to those used by private-
sector companies. The statement of net position
includes all of the City’s assets, deferred outflows of re- sources, liabilities, and deferred inflows of resources. The statement of activities reports all of the current year’s reve- nues and expenses regardless of when cash is received or paid.
The two government-wide financial statements report the City’s net position and how it has changed during the fis- cal year. Over time, increases or decreases in the City's net position is an indicator of whether its financial position is improving.
The two government-wide financial statements of the City are divided as follows:
Governmental activities —Most of the City’s basic
services are included here, such as Police, Fire, Public Works, Redevelopment, a nd General Government.
Governmental activities are financed by taxes, reve-
nues from other government agencies, state/federal
grants, and charges for services.
Business-type activities– Certain services provided by the City are funded by customer fees. Among these
are the City's water, wastewater, community services,
and cemetery services.
Except for the Successor Agency, the government-wide
financial statements include not only the City itself, but also legally separate component units such as: Rialto Non- profit Public Building Authority, Rialto Public Financing Authority, Rialto Utility Authority, and Rialto Housing Authority. These component units, while legally separate from the City, provide services entirely or almost exclu- sively for the benefit of the City. Therefore, these compo- nent units are blended with the City government because of their governance and their financial relationships with the City.
T
UND FINANCIAL STATEMENTS F
OVERNMENT-WIDE FINANCIAL STATEMENTS G
REPORTING THE CITY AS A WHOLE
8 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS TABLE 2—S OURCES OF REVENUE
CHART 2—S OURCES OF REVENUE
Revenues for fiscal year ending June 30, 2021 were ap-
proximately $194.5 million. The largest government-wide source of revenue for fiscal year 2021 comes from charges for services at $63.8 million. Of this amount, $43.5 mil- lion were derived from Water and Wastewater activities.
Property tax, sales tax, and grants/contribution are the next largest sources of revenue, ma king up 50.7% of the total government-wide revenue (see Chart 2).
Compared to fiscal year 2020, total revenues increased by $14.9 million, or 8.3%. This resulted primarily from a $17.3 million increase in sales tax which was due to a
change in a warehouse moving their Point-of-Sale within the City limit instead of reporting to the state pool.
Property taxes increased by $2.6 million or 8.6%.
Utility users tax revenue increased by $806 thousand or
5.9% due to increased UUT-Gas/Electric revenue.
Charges for Services decreased by $7.5 million which is largely due to Community Se rvices being closed for the fiscal year, and other areas of the City due to the COVID pandemic.
Table 2 provides information on the major revenue
sources and comparisons between the current and prior
fiscal year.
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS, CONTINUED
REVENUES
9 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS CHART 3—F UNCTIONAL EXPENSES
TABLE 3—F UNCTIONAL EXPENSES
performed in exchange for a fee: (1) Wa stewat
er and Wa-
ter utility services are provided to over 20,000 customers; (2) Airport represents residual transactions relating to the former airport; and (3) Business Other includes Cemetery services.
General Government expenses decreased by $2.4 million
from the prior fiscal year mainly due to a decrease in as- sessments performed city wide.
Community Development expenses increased by $5.9 mil-
lion due to additional capital improvement project expens- es.
Public Safety expense increased by $14.3 million due to increased personnel and contract costs.
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS, CONTINU ED
EXPENSES
Expenses for the City totaled $162.8 million, an increase of 7.6% or $11.5 million from fiscal year 2020 (see Table 3).
Governmental activities totaled
$125.7 million, or 77% of
total expenses. Governmental activities are grouped by
functional activity: (1) General Government includes Ad- ministration, City Clerk, City
Treasurer, Finance and Hu-
man Resources; (2) Co
mmunity Development includes
Public Works, Community Com
pliance, Planning, Build-
ing Services and Economic Development functions; (3)
Public Safety includes Police and Fire services; (4) Interes t
on long-term debt; (5) Community Services are partially paid by t
hose requesting participation in certain programs.
Business-type activities totaled $37.1 million, or 23% of total expenses. Business-type activities are also grouped by functional activity. These
typically represent activities
10 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS CHART 4—G OVERNMENTAL ACTIVITIES
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS, CONTINUED Most of the City’s basic services are classified as govern- mental activities, such as Police, Fire, Public Works, Com- munity Development, and general government. Govern-
mental activities are financed by taxes, revenues from oth- er government agencies, state/federal grants, and charges for services.
Chart 4 compares the total cost of governmental activities separated by revenues versus expenses. In Table 4
A, the
Governmental Activities net difference of $79.7 million is funded by general revenues. In Table 4B, the program rev- enues and major revenues show an increase of $18.7 mil- lion primarily related to a considerable increase in sales tax.
TABLE 4A—G OVERNMENTAL ACTIVITIES
GOVERNMENTAL ACTIVITIES
TABLE 4B—G OVERNMENTAL ACTIVITIES-PROGRAM AND GENERAL REVENUES 11 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS TABLE 5 –BUSINESS-TYPE ACTIVITIES
Certain services provided by the City are funded by cus- tomer fees. Among these are the City
's Water, Wastewater,
and Cemetery services.
The increase in net cost for business activities was approx- imately $5.0 million (Chart 5). This increase is a result of expenses of business activities of $37.1 million coming in under program revenue of $43.7 million and general reve- nues and transfers totaling $-1.6 million (Table 5).
The $43.7 million received in program revenues consists of $43.7 million in charges for services. This is a decrease of $102 thousand when compared to last year, which is
primarily attributable to Community Services being moved out of Business-type activities and into the General Fund.
These revenues are depicted in Chart 5.
Business-type general revenues and transfers reported a transfer of $-1.6 million. The $3.1 million (Table 5) differ- ence between fiscal year 2020 and 2021 was due to the
decrease in subsidiaries for Community Services.
Wastewater revenues exceeded expenses by $5.0 million,
which, in comparison to last year’s $3.0 million, is an in- crease of $2.0 million. The surplus is primarily a result of an increase in Sewer Collection Fee revenue and Sewer
Treatment Fee revenue.
As noted, Community Services was moved out of Business
-type activities in fiscal year 2021. In fiscal year 2020 they had $541 thousand in revenues and $3.6 million in
expenses. Per the advice of our auditors, Community Ser- vices was moved into the General Fund.
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS, CONTINUED CHART 5—B USINESS-TYPE ACTIVITIES
BUSINESS-TYPE ACTIVITIES
12 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS he City uses fund accounting to assure and demon-
strate compliance with finance-related legal re-
quirements. The fund financial statements focus
on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements. The types of governmental funds reported by the City include the General Fund, Special Revenue
Funds, Capital Project Funds, and Debt Service Funds.
The fund statements provide information on near-term in- flows, outflows and balances of spendable resources.
These funds represent the reporting structure of the budget and interim council reports.
The City’s governmental funds reported combined fund
balances at June 30, 2021 of $236 million, which is an in- crease of $25.9 million. This consists of a $42.9 million increase in total assets and a $12.7 million increase in total liabilities.
In accordance with the Governmental Accounting Stand-
ards Board (GASB) Statement No.54, Fund Balance Re-
porting and Governmental Fund Type Definition, at June
30, 2021, the City’s governmental funds’ fund balances
include the following classifications and balances based from the extent to which the City is bound to observe con- straints imposed upon the use of resources reported in the governmental funds:
First, non-spendable fund balance is the portion of net re- sources that cannot be spent because of their form of being a non-cash asset or a receivable. Non-spendable fund bal- ance totaled $25.4 million, which represents 10.7% of
total fund balance. This includes Prepaid items ($29 thou- sand), Deposits ($4.8 million), Advance to Other Funds
($18.8 million), Inventory ($59 thousand), Land held for resale ($970 thousand) and Property Held for Resale ($1.7 million).
Second, restricted fund balance is the portion of net re- sources that has external enforceable limitations on use; restrictions may be changed or lifted only with the consent of resource providers. Restricted fund balance totaled ap- proximately $169.0 million, which accounts to 71.6% of
the total fund balance. Restrictions are in Debt Service ($620 thousand), Public Safety ($14.0 million) and Com- munity Development ($154.4 million).
Third, committed fund balance is the portion of net re- sources to which the City Council has authorized for spe- cific purpose. Committed fund balance of $12.2 million, comprises 5.2% of the total fund balance, are attributed to capital projects. Committed fund balances require City
Council action to establish and remove.
Lastly, the residual classification for the City’s General Fund is unassigned fund balance, which includes all
amounts not contained in the other classifications. Total governmental unassigned fund balance is $29.4 million,
which accounts for 12.4% of total fund balance. The Gen- eral Fund unassigned balance is available for contingen- cies.
T
The City’s Final Budget differs from the Adopted Budget because it contains carry-forward appropriations and reve- nues for various programs or projects, supplemental reve- nues, carry-forward appropriations for open purchase or- ders from the previous year, and appropriations approved by Council throughout the fiscal year.
After taking into account all the adjustments, actual ex- penditures were $3.9 million lower than the final budget amounts.
Capital outlay expenditures we re less than the budgeted appropriations by $188 thousand due to several capital
projects/purchases that were not completed or purchased by the end of fiscal year 2021. These included Public
Safety, Public Works, and General budget for vehicles and equipment, City maintenance projects for park improve-
ments, and City owned buildings which were all carried
over to fiscal year 2022.
Community Development expenditures were less than the
budgeted appropriations by $3.8 million due to delayed
projects.
Public Safety expenditures were less than the budgeted
appropriations by $2.0 million due to salary savings.
Actual revenues received were more than budget by $18.7 million. Taxes were $16.7 million over appropriations, which was due to the change of one of the warehousing
reporting sales tax as a Point-of-Sale in Rialto instead of to the state-pool as in prior years. Licenses and Permits were $698 thousand under appropriations. This was offset by Charges for Services, which received $2.3 million more
than budget.
GENERAL FUND BUDGETARY HIGHLIGHTS
INANCIAL ANALYSIS OF THE F
FUND STATEMENTS
13 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS As of June 30, 2021 the City had $404 million in capital assets, including land and land improvements, construction in progress, buildings, vehicles, police and fire equipment, improvements, water and wast ewater transmissions and
distribution systems, and infrastructure.
Total Capital Assets increased by $6.6 million. This in- crease included construction in progress totaling $78.7 million (a decrease of $13 m illion from last year), infra- structure of $215.6 million (an increase of $6.5 million from last year), and an increase in “Other Improvements” of $19.9 million. The increase in capital assets was offset by a $11.4 million increase in accumulated depreciation.
Some of the major capital projects from the Capital Im- provement Plan that were completed in fiscal year 2021
were:
Street Related Projects
Annual Street Overlay
Annual Street Slurry Seal
Non-Transportation related projects
Annual Roof Repair
Battery Backup System
Some major capital projects under construction at the end of fiscal year 2021 and expected to be completed by the next fiscal year are:
Easton Sidewalk
Curb, Gutter, Sidewalk Improvements
HSIP Signal Improvements—Four Intersections
Other major projects that are in Design, Environmental
and Right of Way Acquisition Phases are:
SR-210 Alder Avenue Interchange
Baseline Storm Drain Project
HSIP Baseline Improvements
Additional information pertaining to the City’s capital as- sets can be found in Note 7 in the Notes to the Basic Fi- nancial Statements.
TABLE 6 –CAPITAL ASSETS
CAPITAL ASSETS
APITAL ASSET & C
DEBT ADMINISTRATION
14 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS The City’s long-term debt consists of debt with conces- sionaire, certificates of participation and other equipment financing, notes payable and advances, due to other gov- ernments, compensated absences, claims payable, other
post-employment benefits and net pension liability as
shown below in Table 7.
At June 30, 2020 and 2021 respectively, the City had
$359.4 million and $376.9 milli on in long-term debt out- standing.
Net pension liability increased by $9.8 million in 2021.
Net Other Post Employment Benefit liability increased by $3.5 million in 2021.
Additional information pertaini ng to the City’s long-term liabilities can be found in Note 9, 11 and 12 in the Notes to the Basic Financial Statements.
CAPITAL ASSET & DEBT ADMINISTRATION, CONTINUED
TABLE 7 –OUTSTANDING DEBT
LONG TERM DEBT
15 CITY OF RIALTO, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS he United States’ booming economy came to a
screeching halt with the COVID-19 pandemic.
Consumer spending hit rock bottom during the
last two weeks in March 2020. However, severe drops in auto sales, general consumer goods, and service stations and restaurants were largely offset by new revenue from the implementation of the South Dakota v. Wayfair deci- sion that now requires out-of-state retailers to collect and remit California sales and use tax. Also, due to the stay-at- home order, there was a surge in online shopping that
boosted receipts from the county use tax allocation pools and from online retailers who maintain and ship their in- ventory within California.
It is anticipated that the economy will rebound in fiscal year 2021-22, following a wide distribution of COVID-19 vaccines, which will help prompt a return to a more nor- malized pre-pandemic lifestyle.
COVID-19 — On March 12, 2020 the Rialto City
Council adopted Resolution No. 7600 declaring the
existence of local emergency throughout the City of
Rialto in response to the COVID-19 pandemic. The
City of Rialto cancelled all City events and activities and closed all City facilities to the public. Since the City’s declaration of local emergency, there have been
significant directives from the State of California and the San Bernardino County Department of Public
Health. In addition, California Governor Gavin New-
som issued a Stay-At-Home order for the entire state
of California. This order limited the continued opera- tions of businesses and entities to those defined as crit- ical infrastructure by the U.S. Department of Home-
land Security.
Sales Tax — Due to the Stay-At-Home order in re-
sponse to the COVID-19 pandemic, sales tax receipts
from consumer goods initiall y shifted downwards.
Many brick and mortar stores closed or were restricted
due to limited occupancy. As an alternative, consum-
ers shifted to online shopping, which increased the
City’s share of the countywide use tax pool. Addition- ally, one of the local warehouses moved their Point-of- Sale to inside the City limits increasing the direct sales tax allocation.
Increase in Public Retirement Costs — California Pub- lic Employees Retirement System’s (CalPERS) is un-
derfunded due to significant investment losses during
the 2008 Great Recession and also from a change in
actuarial assumption decreasing to 7%. These factors
contributed to increased employer pension costs and
Unfunded Accrued Liabilities (UAL). Annual UAL
payment is expected to grow from $10.3 million in
2021 to $15.2 million by 2030.
Deferred Maintenance and Capital Expenditures —
Capital projects are an essential and unavoidable cost
of doing business. Over the past few years, the City
has been able to use one-time revenue to fund ongoing
capital replacement and maintenance projects.
T
CONOMIC FACTORS & OUTLOOK FOR FUTURE YEARS E
This financial report is designed to provi de citizens, taxpayers, customers, inves- tors and creditors with a general overview of the City’s finances to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional info rmation, contact the Finance Department, 150 S. Palm Avenue, Rialto, California 92376; (909) 820-2544, or visit us online at www.yourrialto.com.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
16 %$6,&),1$1&,$/67$7(0(176
17 THIS PAGE INTENTIONALLY LEFT BLANK
18 CITY OF RIALTO
STATEMENT OF NET POSITION
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments 242,367,383$ 25,565,670$ 267,933,053$ Receivables:
Accounts 6,531,249 8,326,374 14,857,623
Notes and loans 2,457,027 661,857 3,118,884 Accrued interest 526 18,849 19,375 Internal balances 2,146,370 (2,146,370) -
Prepaid costs 29,311 - 29,311 Deposits 4,828,059 - 4,828,059 Due from other governments 15,992,349 - 15,992,349 Inventories 98,195 - 98,195 Property held for resale 1,690,369 5,443,258 7,133,627 Concession arrangement - 5,234,507 5,234,507 Restricted assets:
Cash and investments in trust - 23,642,696 23,642,696 Cash with fiscal agent 10,518,368 - 10,518,368 Capital assets not being depreciated 127,846,552 34,167,631 162,014,183 Capital assets, net of depreciation 160,214,200 82,171,252 242,385,452 Total Assets 574,719,958 183,085,724 757,805,682
Deferred Outflows of Resources:
Pension related items 23,882,760 335,738 24,218,498 OPEB related items 5,594,132 54,761 5,648,893 Total Deferred Outflows
of Resources 29,476,892 390,499 29,867,391 Liabilities:
Accounts payable 8,282,321 2,485,706 10,768,027 Accrued liabilities 3,627,049 8,864 3,635,913 Accrued interest 83,996 - 83,996 Unearned revenue 15,819,279 8,603 15,827,882 Deposits payable 2,917,785 1,756,245 4,674,030 Noncurrent liabilities:
Due within one year
Long-term Debt 992,276 2,839,601 3,831,877 Compensated absences 1,699,693 13,343 1,713,036 Claims and judgements 4,074,868 - 4,074,868 Due in more than one year
Long-term Debt 12,605,924 148,991,276 161,597,200 Compensated absences 7,743,044 60,780 7,803,824 Claims and judgements 18,563,288 - 18,563,288 Net pension liability 129,688,238 1,235,101 130,923,339 Net OPEB liability 47,965,944 469,543 48,435,487 Total Liabilities 254,063,705 157,869,062 411,932,767 Deferred Inflows of Resources:
Pension related items 2,120,973 - 2,120,973 OPEB related items 3,419,276 33,472 3,452,748 Total Deferred Inflows
of Resources 5,540,249 33,472 5,573,721 Net Position:
Net investment in capital assets 274,462,552 116,338,883 390,801,435 Restricted for:
Community development projects 155,386,684 - 155,386,684 Public safety 14,011,764 - 14,011,764 Public works - 73,004 73,004 Debt service 620,318 - 620,318 Unrestricted (99,888,422) (90,838,198) (190,726,620) Total Net Position 344,592,896$ 25,573,689$ 370,166,585$ JUNE 30, 2021
Primary Government
See Notes to Financial Statements.
19 CITY OF RIALTO
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 24,316,508$ 1,466,798$ 1,502,194$ -$ Public safety 75,464,556 4,202,468 3,746,296 375,361 Community development 25,386,976 14,454,456 11,881,477 8,319,376 Interest on long-term debt 507,718 - - - Total Governmental Activities 125,675,758 20,123,722 17,129,967 8,694,737 Business-Type Activities:
Water Fund 13,619,253 15,085,653 - - Wastewater Fund 23,412,695 28,381,428 - - Airport Fund 4,449 - - - Cemetery Fund 81,056 189,649 - - Total Business-Type Activities 37,117,453 43,656,730 - - Total Primary Government 162,793,211$ 63,780,452$ 17,129,967$ 8,694,737$ General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Utility users tax
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Payments from Successor Agency
RUA Lease Payment
RUA Contract Payments
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
20 Primary Government
Governmental Business-Type
Activities Activities Total
(21,347,516)$ -$ (21,347,516)$
(67,140,431) - (67,140,431)
9,268,333 - 9,268,333
(507,718) - (507,718)
(79,727,332) - (79,727,332)
- 1,466,400 1,466,400
- 4,968,733 4,968,733
- (4,449) (4,449)
- 108,593 108,593
- 6,539,277 6,539,277
(79,727,332) 6,539,277 (73,188,055)
32,693,790 - 32,693,790
344,527 - 344,527
40,094,356 - 40,094,356
4,359,605 - 4,359,605
3,028,073 - 3,028,073
14,470,386 - 14,470,386
76,683 - 76,683
947,669 12,403 960,072
7,588,318 - 7,588,318
184,850 - 184,850
2,000,000 (2,000,000) -
1,141,212 - 1,141,212
(420,500) 420,500 -
106,508,969 (1,567,097) 104,941,872
26,781,637 4,972,180 31,753,817
323,310,228 16,818,633 340,128,861
(5,498,969) 3,782,876 (1,716,093)
344,592,896$ 25,573,689$ 370,166,585$
Net (Expenses) Revenues and Changes in
Net Position
See Notes to Financial Statements.
21 CITY OF RIALTO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Other Total
Governmental Governmental
General Funds Funds
Assets:
Pooled cash and investments 68,197,287$ 5,917,234$ 14,686,553$ 138,376,905$ 227,177,979$ Receivables:
Accounts 4,952,342 499 - 1,572,379 6,525,220 Notes and loans - - - 2,457,027 2,457,027 Accrued interest 176 16 - 292 484 Prepaid costs 29,311 - - - 29,311 Deposits 4,828,059 - - - 4,828,059 Due from other governments 12,957,524 - - 3,034,825 15,992,349 Due from other funds 1,829,553 - - - 1,829,553 Advances to other funds 18,799,195 - - - 18,799,195 Inventories 59,398 - - - 59,398 Property held for development 719,969 - - 970,400 1,690,369 Restricted assets:
Cash and investments 251,221 - - 10,267,147 10,518,368 Total Assets 112,624,035$ 5,917,749$ 14,686,553$ 156,678,975$ 289,907,312$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 4,054,580$ -$ -$ 3,469,480$ 7,524,060$ Accrued liabilities 1,840,325 - - 1,740,753 3,581,078 Deposits payable 135,461 - - 2,782,324 2,917,785 Advances from other funds - 17,499,195 - - 17,499,195 Unearned revenues 1,132,726 - 14,686,553 - 15,819,279 Due to other funds - - - 849,606 849,606 Total Liabilities 7,163,092 17,499,195 14,686,553 8,842,163 48,191,003 Deferred Inflows of Resources:
Unavailable revenues 873,969 - - 4,816,447 5,690,416 Total Deferred Inflows of Resources 873,969 - - 4,816,447 5,690,416 Fund Balances:
Nonspendable:
Prepaid costs 29,311 - - - 29,311 Deposits 4,828,059 - - - 4,828,059 Advances to other funds 18,799,195 - - - 18,799,195 Inventory 59,398 - - - 59,398 Property held for development 719,969 - - - 719,969 Restricted for:
Debt service - - - 620,318 620,318 Public safety - - - 14,011,764 14,011,764 Community development 25,773,249 - - 129,613,435 155,386,684 Committed to:
Capital Projects 12,214,045 - - - 12,214,045 Unassigned 42,163,748 (11,581,446) - (1,225,152) 29,357,150 Total Fund Balances 104,586,974 (11,581,446) - 143,020,365 236,025,893 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 112,624,035$ 5,917,749$ 14,686,553$ 156,678,975$ 289,907,312$ American
Rescue Plan
Act
Park
Development
Fund
Special Revenue Funds
See Notes to Financial Statements.
22 CITY OF RIALTO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund balances of governmental funds 236,025,893$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 287,581,940
Long-term debt and compensated absences that have not been included in the governmental fund activity:
Certificates of participation (234,900)$
Capital Leases (11,128,200)
Notes payable (2,200,000)
Compensated Absences (9,265,648) (22,828,748)
Pension and OPEB related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows and inflows of resources related to pension and OPEB are only repoered on the statement of net position:
Deferred Outflows of Resources - Pension related 23,424,147 Deferred Inflows of Resources - Pension related (2,120,973) Net Pension Liability (125,484,729)
Deferred Outflows of Resources - OPEB related 5,407,758 Deferred Inflows of Resources - OPEB related (3,305,358) Net OPEB Liability (46,367,916)
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (83,996) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 5,690,416
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position. (13,345,538)
Net Position of Governmental Activities 344,592,896$
See Notes to Financial Statements.
23 CITY OF RIALTO
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Other Total
Governmental Governmental
General Funds Funds
Revenues:
Taxes 89,826,689$ -$ -$ 2,185,759$ 92,012,448$ Licenses and permits 5,354,961 - - - 5,354,961 Intergovernmental 7,481,318 - - 19,047,360 26,528,678 Charges for services 9,111,405 730,431 - 21,439 9,863,275 Use of money and property (237,931) 51,901 - 997,051 811,021 Fines and forfeitures 567,929 - - - 567,929 RUA lease payments 2,000,000 - - - 2,000,000 Developer participation - - - 5,004,302 5,004,302 Payment from Sucessor agency - - - 184,850 184,850 Miscellaneous 1,742,259 - - 615,071 2,357,330 Total Revenues 115,846,630 782,332 - 28,055,832 144,684,794 Expenditures:
Current:
General government 17,233,935 - - 1,709,896 18,943,831 Public safety 63,068,172 - - 2,429,648 65,497,820 Community development 12,286,809 35,035 - 8,935,375 21,257,219 Capital outlay 109,401 3,233,838 - 9,251,001 12,594,240 Debt service:
Principal retirement 162,835 - - 730,125 892,960 Interest and fiscal charges 289,588 - - 202,753 492,341 Total Expenditures 93,150,740 3,268,873 - 23,258,798 119,678,411 Excess (Deficiency) of Revenues
Over (Under) Expenditures 22,695,890 (2,486,541) - 4,797,034 25,006,383 Other Financing Sources (Uses):
Transfers in 3,709,729 - - 2,684,032 6,393,761 Transfers out (3,104,532) - - (1,209,729) (4,314,261) Proceeds from sale of capital asset 308,727 - - - 308,727 Total Other Financing Sources
(Uses) 913,924 - - 1,474,303 2,388,227 Net Change in Fund Balances 23,609,814 (2,486,541) - 6,271,337 27,394,610 Fund Balances, Beginning of Year, as
previously reported 87,521,513 (9,094,905) - 131,701,146 210,127,754 Restatements (6,544,353) - - 5,047,882 (1,496,471) Fund Balances, Beginning of Year, as restated 80,977,160 (9,094,905) - 136,749,028 208,631,283 Fund Balances, End of Year 104,586,974$ (11,581,446)$ -$ 143,020,365$ 236,025,893$ American
Rescue Plan
Act
Park
Development
Fund
Special Revenue Funds
See Notes to Financial Statements.
24 CITY OF RIALTO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds 27,394,610$ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlay 13,155,875$
Depreciation (8,128,251)
Contributed capital assets 3,424,952
Loss on disposition of capital assets (36,328) 8,416,248 Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.
Principal repayments 578,960
Loan repayments 314,000 892,960
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (11,262)
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,169,032)
Deferred loss on refunding is an expenditure in the governmental funds, but these costs are reported as a deferred outflow of resources on the Statement of Net Position. This is the total amoortization of the deferred loss on refunding in the current period. (2,607)
Pension and OPEB expenses reported in the governmental funds includes the annual required contributions. In the statement of Activities, Pension expense includes the change in Net Pension Liability and Net OPEB Liability and related changes in pension and OPEB amounts for deferred outflows of resources and deferred inflows of resources.
Pension expense (1,360,448)
OPEB expense (2,009,506) (3,369,954)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 4,322,774
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with governmental activities. (9,692,100)
Change in Net Position of Governmental Activities 26,781,637$ See Notes to Financial Statements.
25 CITY OF RIALTO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Other
Enterprise
Funds
Assets:
Current:
Cash and investments 2,954,033$ 21,217,614$ 435,760$ 958,263 $ Receivables:
Accounts 2,369,915 5,948,403 7,871 185 Notes and loans 292,598 369,259 - - Accrued interest 18,849 - - - Inventories - - - - Land held for resale - - 5,443,258 - Restricted:
Cash and investments in trust 9,197,511 14,445,185 - - Total Current Assets 14,832,906 41,980,461 5,886,889 958,448 Noncurrent:
Advances to other funds - 3,000,000 - - Concession arrangement 5,234,507 - - - Capital Assets
Not being depreciated 2,079,804 32,087,827 - - Being depreciated (net of accumulated depreciation) 22,998,419 59,171,751 - 1,082 Total Noncurrent Assets 30,312,730 94,259,578 - 1,082 Total Assets 45,145,636 136,240,039 5,886,889 959,530 Deferred Outflows of Resources:
Pension related items 149,571 177,558 - 8,609 OPEB related items 46,659 6,698 - 1,404 Total Deferred Outflows of Resources 196,230 184,256 - 10,013 Liabilities, Deferred Inflows of Resources, and Net Position:
Liabilities:
Current:
Accounts payable 1,317,568 1,144,508 587 23,043 Accrued liabilities 4,866 3,643 - 355 Unearned revenues - 8,603 - - Deposits payable 1,066,839 688,406 1,000 - Due to other funds 221,337 625,033 - - Accrued compensated absences 9,133 4,028 - 182 Accrued claims and judgments - - - - Bonds, notes, and capital leases 834,640 2,004,961 - - Total Current Liabilities 3,454,383 4,479,182 1,587 23,580 Noncurrent:
Advances from other funds 4,300,000 - - - Accrued compensated absences 42,305 17,650 - 825 Accrued claims and judgments - - - - Net pension liability 500,675 702,754 - 31,672 Net OPEB liability 203,332 254,170 - 12,041 Bonds, notes, and capital leases 31,983,440 117,007,836 - - Total Noncurrent Liabilities 37,029,752 117,982,410 - 44,538 Total Liabilities 40,484,135 122,461,592 1,587 68,118 Deferred Inflows of Resources:
OPEB related items 32,614 - - 858 Total Deferred Inflows of Resources 32,614 - - 858 Net Position:
Net investment in capital assets 25,078,223 91,259,578 - 1,082 Restricted for capital projects 73,004 - - - Unrestricted (20,326,110) (77,296,875) 5,885,302 899,485 Total Net Position 4,825,117$ 13,962,703$ 5,885,302$ 900,567$ Business-Type Activities - Enterprise Funds
Water Fund
Wastewater
Fund Airport Fund
See Notes to Financial Statements.
26 CITY OF RIALTO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Inventories
Land held for resale
Restricted:
Cash and investments in trust
Total Current Assets
Noncurrent:
Advances to other funds
Concession arrangement
Capital Assets
Not being depreciated
Being depreciated (net of accumulated depreciation)
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Pension related items
OPEB related items
Total Deferred Outflows of Resources
Liabilities, Deferred Inflows of Resources, and Net Position:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Accrued compensated absences
Accrued claims and judgments
Bonds, notes, and capital leases
Total Current Liabilities
Noncurrent:
Advances from other funds
Accrued compensated absences
Accrued claims and judgments
Net pension liability
Net OPEB liability
Bonds, notes, and capital leases
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
OPEB related items
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Restricted for capital projects
Unrestricted
Total Net Position
Enterprise Funds Governmental
Activities-
Internal
Totals Service Funds
25,565,670$ 15,189,404 $
8,326,374 6,029
661,857 -
18,849 42
- 38,797
5,443,258 -
23,642,696 -
63,658,704 15,234,272
3,000,000 -
5,234,507 -
34,167,631
82,171,252 478,812
124,573,390 478,812
188,232,094 15,713,084
335,738 458,613
54,761 186,374
390,499 644,987
2,485,706 758,262
8,864 45,971
8,603 -
1,756,245 -
846,370 133,577
13,343 31,876
- 4,074,868
2,839,601 35,099
7,958,732 5,079,653
4,300,000 -
60,780 145,213
- 18,563,288
1,235,101 4,203,509
469,543 1,598,028
148,991,276 -
155,056,700 24,510,038
163,015,432 29,589,691
33,472 113,918
33,472 113,918
116,338,883 478,812
73,004 -
(90,838,198) (13,824,350)
25,573,689$ (13,345,538)$
See Notes to Financial Statements.
27 CITY OF RIALTO
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Other
Enterprise
Funds
Operating Revenues:
Sales and service charges 15,085,653 28,381,428 - 189,649$ Total Operating Revenues 15,085,653 28,381,428 - 189,649 Operating Expenses:
Administration and general 3,006,068 130 4,449 - Cost of sales and services 7,874,920 10,263,583 - 80,675 Depreciation expense 888,101 2,306,391 - 381 Total Operating Expenses 11,769,089 12,570,104 4,449 81,056 Operating Income (Loss) 3,316,564 15,811,324 (4,449) 108,593 Nonoperating Revenues (Expenses):
Interest revenue - 6,665 - 5,738 Interest expense (2,114,777) (10,842,591) - - RUA lease payments (530,855) (1,469,145) - - Other non-operating income (expenses) 264,613 - - - Total Nonoperating
Revenues (Expenses) (2,381,019) (12,305,071) - 5,738 Income (Loss) Before Transfers 935,545 3,506,253 (4,449) 114,331 Transfers in - - - 420,500 Transfers out - - - - Changes in Net Position 935,545 3,506,253 (4,449) 534,831 Net Position:
Beginning of Year, as
previously reported 3,889,572 10,456,450 5,889,751 (3,417,140) Restatements - - - 3,782,876 Beginning of Fiscal Year, as restated 3,889,572 10,456,450 5,889,751 365,736 End of Fiscal Year 4,825,117$ 13,962,703$ 5,885,302$ 900,567$ Business-Type Activities - Enterprise Funds
Water Fund
Wastewater
Fund Airport Fund
See Notes to Financial Statements.
28 CITY OF RIALTO
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Sales and service charges
Total Operating Revenues
Operating Expenses:
Administration and general
Cost of sales and services
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
RUA lease payments
Other non-operating income (expenses)
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position:
Beginning of Year, as
previously reported
Restatements
Beginning of Fiscal Year, as restated
End of Fiscal Year
Enterprise Funds Governmental
Activities-
Internal
Totals Service Funds
43,656,730$ 11,766,474$
43,656,730 11,766,474
3,010,647 -
18,219,178 18,974,483
3,194,873 119,231
24,424,698 19,093,714
19,232,032 (7,327,240)
12,403 136,648
(12,957,368) (1,508)
(2,000,000) -
264,613 -
(14,680,352) 135,140
4,551,680 (7,192,100)
420,500 -
- (2,500,000)
4,972,180 (9,692,100)
16,818,633 (3,653,438)
3,782,876 -
20,601,509 (3,653,438)
25,573,689$ (13,345,538)$
See Notes to Financial Statements.
29 CITY OF RIALTO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Other
Enterprise
Funds
Cash Flows from Operating Activities:
Cash received from customers and users 14,934,465$ 28,104,289$ -$ 189,649$ Cash paid to suppliers for goods and services (7,878,706) (12,788,131) - (71,173) Cash paid to employees for services (3,007,453) (20,868) (4,255) (2,909) Cash received from (payments to) others - - - - Net Cash Provided (Used) by Operating Activities 4,048,306 15,295,290 (4,255) 115,567 Cash Flows from Non-Capital
Financing Activities:
Cash paid to other funds (16,203) (124,098) - (529,033) Cash received from other funds - - - 420,500 RUA lease payments (530,855) (1,469,145) - - Net Cash Provided (Used) by
Non-Capital Financing Activities (547,058) (1,593,243) - (108,533) Cash Flows from Capital
and Related Financing Activities:
Capital contributions 264,613 - - - Acquisition and construction of capital assets (434,463) (1,079,959) - - Principal paid on capital debt (785,223) (1,839,408) - - Interest paid on capital debt (2,114,778) (10,842,590) - - Net Cash Provided (Used) by
Capital and Related Financing Activities (3,069,851) (13,761,957) - - Cash Flows from Investing Activities:
Interest received 32,047 35,343 - 5,738 Net Cash Provided (Used) by
Investing Activities 32,047 35,343 - 5,738 Net Increase (Decrease) in Cash
and Cash Equivalents 463,444 (24,567) (4,255) 12,772 Cash and Cash Equivalents at Beginning of Year 11,688,100 35,687,366 440,015 945,491 Cash and Cash Equivalents at End of Year 12,151,544$ 35,662,799$ 435,760$ 958,263$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) 3,316,564$ 15,811,324$ (4,449)$ 108,593$ Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 888,101 2,306,391 - 381 (Increase) decrease in accounts receivable (256,265) (238,757) - - (Increase) decrease in inventories - - - - (Increase) decrease in concessionaire receivable 386,144 - - - (Increase) decrease in deferred outflows of resources - pension related (33,665) (18,936) - (1,384) (Increase) decrease in deferred outflows of resources - OPEB related (44,316) (629) - (1,176) Increase (decrease) in accounts payable (389,930) (2,524,548) 194 9,502 Increase (decrease) in accrued liabilities (8,611) (2,089) - (310) Increase (decrease) in deposits payable 105,077 (38,382) - - Increase (decrease) in claims and judgments - - - - Increase (decrease) in compensated absences (14,252) (21,121) - (3,069) Increase (decrease) in net pension liability 81,276 45,717 - 2,501 Increase (decrease) in net opeb liability 12,124 6,820 - 154 Increase (decrease) in deferred inflows of resources - pension related (30,607) (24,555) - (432) Increase (decrease) in deferred inflows of resources - OPEB related 36,666 (5,945) - 807 Total Adjustments 731,742 (516,034) 194 6,974 Net Cash Provided (Used) by
Operating Activities 4,048,306$ 15,295,290$ (4,255)$ 115,567$ Business-Type Activities - Enterprise Funds
Water Fund
Wastewater
Fund Airport Fund
See Notes to Financial Statements.
30 CITY OF RIALTO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Cash Flows from Operating Activities:
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from (payments to) others
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Cash paid to other funds
Cash received from other funds
RUA lease payments
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Capital contributions
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in concessionaire receivable
(Increase) decrease in deferred outflows of resources - pension related (Increase) decrease in deferred outflows of resources - OPEB related Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in claims and judgments
Increase (decrease) in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in net opeb liability
Increase (decrease) in deferred inflows of resources - pension related Increase (decrease) in deferred inflows of resources - OPEB related Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Enterprise
Funds
Governmental
Activities-
Internal
Totals Service Funds
43,228,403$ 11,760,445$
(20,738,010) (11,922,535)
(3,035,485) (22,382)
- 59,613
19,454,908 (124,859)
(669,334) (2,500,000)
420,500 133,576
(2,000,000) -
(2,248,834) (2,366,424)
264,613 -
(1,514,422) (10,304)
(2,624,631) (33,151)
(12,957,368) (1,510)
(16,831,808) (44,965)
73,128 159,468
73,128 159,468
447,394 (2,376,780)
48,760,972 17,566,184
49,208,366$ 15,189,404$
19,232,032$ (7,327,240)$
3,194,873 119,231
(495,022) (6,029)
- (58)
386,144 -
(53,985) (183,734)
(46,121) (155,736)
(2,904,782) 246,613
(11,010) (22,382)
66,695 -
- 6,805,393
(38,442) 66,828
129,494 282,727
19,098 626
(55,594) (58,122)
31,528 107,024
222,876 7,202,381
19,454,908$ (124,859)$
See Notes to Financial Statements.
31 CITY OF RIALTO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
Custodial
Funds
Assets:
Pooled cash and investments 684,366$ -$ 13,124,281$ Receivables:
Accounts - - 16,838 Notes and loans - - 6,402,131 Accrued interest 1 - 111 Prepaid costs - - 167,957 Due from other governments 156 - - Property held for resale - - 19,689,855 Restricted assets:
Cash and investments- bond proceeds - - 1,352,844 Cash and investments with fiscal agents 453,510 - 4,818,805 Cash and investments held by trust - 21,309,189 - Capital assets, not being depreciated - - 290,347 Capital assets, net of accumulated depreciation - - 70,695 Total Assets 1,138,033$ 21,309,189$ 45,933,864$ Deferred Outflows of Resources:
Deferred charge on refunding -$ -$ 650,390$ Total Deferred Outflows of Resources -$ -$ 650,390$ Liabilities:
Accounts payable 2,875$ -$ -$ Accrued liabilities - - 29,316 Accrued interest - - 2,194,802 Unearned revenues - - 274,897 Long-term liabilities:
Due in one year - - 4,295,000 Due in more than one year 4,384,400 - 116,334,856 Total Liabilities 4,387,275$ -$ 123,313,721$ Deferred Inflows of Resources:
Deferred Gain on Refunding, Net of Accumulated Amortization -$ -$ 204,070$ Total Deferred Inflows or Resources -$ -$ 204,070$ Net Position:
Held in trust for other post retirement benefits -$ 21,309,189$ -$ Held in trust for other purposes (3,249,242) - (76,933,537) Total Net Position (3,249,242)$ 21,309,189$ (76,933,537)$ Capital assets:
Pension Trust Fund
Private-Purpose
Trust Fund
Other Post-
Employment Benefit
(OPEB) Trust Fund
Successor Agency
Private-Purpose
Trust Fund
See Notes to Financial Statements.
32 CITY OF RIALTO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2021
Additions:
Taxes 515,857$ -$ 7,103,165$ Interest and change in fair value of investments 5,442 4,826,888 3,930 Gain on sale of Property - - 1,932,693 Miscellaneous - - 393,220 Total Additions 521,299 4,826,888 9,433,008 Deductions:
Benefits - 1,533,329 -
Administrative expenses 149,875 - 118,482 Interest expense 181,528 - 6,070,604 Depreciation expense - - 7,786 Contributions to other governments 28,755 - 184,850 Total Deductions 360,158 1,533,329 6,381,722 Changes in Net Position 161,141 3,293,559 3,051,286 Net Position - Beginning of the Year - 18,015,630 (79,984,823) Restatement of Net Position (3,410,383) - - Net Position - Beginning, as Restated (3,410,383) 18,015,630 (79,984,823) Net Position - End of the Year (3,249,242)$ 21,309,189$ (76,933,537)$ Custodial
Funds
Pension Trust
Fund
Private-Purpose
Trust Fund
Successor
Agency Private-
Purpose Trust
Fund
Other Post-
Employment
Benefit (OPEB)
Trust Fund
See Notes to Financial Statements.
33 THIS PAGE INTENTIONALLY LEFT BLANK
34 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies
a. Description of Reporting Entity
The City of Rialto (the City) was incorporated in 1911 under th e General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, parks and recreation, public improvements, planning an d zoning, and general administrative services.
As required by accounting principles generally accepted in the United States of America, these financial statements include the financial activities of the City and its component units – the Rialto Public Financing Authority (the Financing Authority), the Rialto Utility Authority (the Utility Au thority), the Rialto Nonprofit Public Building Authority (Building Authority), and the Rialto Housing Authority (Housing Authority) – for which the City is considered to be financially accountable. Blended c omponent units, although legally separate entities, are, in substance, part of the City’s operations and, therefore, data of these units are combined with data of the City.
Blended Components Units
The Rialto Public Financing Authority (Financing Authority) was established in 1988 pursuant to California Government Code Section 6500. Although i t is legally separate from the City, the Financing Authority is reported as if it wer e part of the City because its sole purpose is to finance the City’s and the former Redeve lopment Agency’s public projects. The financial activity for this entity is blended with the governmental funds of the City in the 1997 COP Debt Service Fund.
The Rialto Utility Authority (Utility Authority) was created on May 1, 2001 pursuant to Joint Powers Law Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the Calif ornia Government Code, and the Marks-Roos Local Bond Pooling Act of 1985. The Utility Authority was formed to provid e for lease, ownership, operation, maintenance, construction, and financing of the Wate r and Wastewater Utility systems and any other utility syst em or service. The City Council acts as the governing board of the Utility Authority and there is a financial benefit /burden relationship between the City and the Utility Authorit y. The financial activity of the Utility Authority is blended with the City’s proprietary funds in the Water and Wastewater Proprietary Funds.
The Rialto Nonprofit Public Building Authority (Building Authority) was established in 1988.
Although it is legally separate from the City, the Building Aut hority is reported as if it were part of the City because is sole purposes is to finance, refina nce, acquire, construct, improve, lease, sell, or otherwise convey property of any kind to the City. The financial activity for this entity is blended with the governmental funds of the City in the 1997 COP Debt Service Fund.
The Rialto Housing Authority (Housing Authority) was created on November 4, 2003 in accordance with the Californian Law Health and Safety Code S ections 34200-34606.
The Housing Authority enables the City to engage in more aggres sive housing market intervention, including the acquisition of property, rehabilita tion, and/or development of affordable housing. The Mayor and City Council act as the gover ning board of the Housing Authority and there is a financial benefit/burden relationship between the City and the Housing Authority. The fi nancial activity for this entity is blended with the governmental funds of the City in the Housing Authority Special Revenue Fund. 35 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
The Financing Authority, Utility Authority, Building Authority, and Housing Authority do not issue separate financial statements.
b. Government-wide and Fund Financial Statements
The government-wide financial st atements (i.e., the statement o f net position and the statement of activities) report information on all the non-fidu ciary activities of the City and its component units. The effect of interfund activity has been removed from these statements. Governmental activitie s, which are normally support ed by taxes and intergovernmental revenues, are reported separately from busine ss-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities dem onstrates the degree to which th e direct expenses of a given function or segments are offset by program revenues. Dire ct expenses are those that are clearly identifiable to a specific function or segment . Program revenues include (1) charges to customers or applicants who purchase, use or dir ectly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restrict ed to meeting the operational or capital requirement of a particular function or segment. Taxes and other items not prope rly classified as program revenues are reported as general revenues.
Separate financial statements are provided for governmental fun ds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
c. Measurement Focus, Basis of Accounting, and Financial Statem ent Presentation
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of a ccounting. Measurement focus in dicates the type of resources being measured such as current financial resources or economic resources.
The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds, and the fiduciary funds financial statements. Under the economic resources measurement focus, all (both current and long-term) economic resources and oblig ations of the reporting government are reported in the government-wide financial statements.
Under the accrual basis of accounting , revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Property ta xes are recognized in the fiscal year for which the taxes have been levied.
36 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Under the current financial resources measurement focus only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. Under the modified accrual basis of accounting , revenues are recognized as soon as they are both measurable and available. R evenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this p urpose, the City considers revenues to be available if they are collected within 60 days o f the end of the current fiscal period. Expenditures generally are recorded when a liabi lity is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Revenues that are accrued generally include taxes, interest, an d state and federal grants and charges for services.
Real property taxes are levied for the period beginning on July 1 to June 30 against property owners of record on January 1. The taxes are due in tw o installments, on November 1 and February 1, and become delinquent after December 10 and April 10, respectively. Tax liens attach annually as of 12:01 a.m. on the first day of January in the fiscal year for which the taxes are levied. Property tax revenu e is recognized in the fiscal year for which the taxes have been levied, provided it is colle cted within 90 days of the end of the fiscal year in the fund financial statements.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s pr incipal ongoing operations.
The principal operating revenues of the City’s Water, Wastewate r, Airport, and Other Enterprise Funds are charges to customers for sales and service s. The Wastewater fund also recognizes as operating revenue the portion of connection fees intended to recover the cost of connecting new cust omers to the system. Operating e xpenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
d. Fund Accounting
The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entit y. The operations of each fund are accounted for by providing a separate set of sel f-balancing accounts, which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resourc es, fund balance/net position, revenues, and expenditures or expenses, as appropriate. 37 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Governmental Funds:
Governmental funds are those funds through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of currently available financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund from which they ar e paid; and the difference between governmental fund assets, deferred outflow s of resource s, liabilities and deferred inflows of resources, t he fund equity, is referred to as “fund balance”. The measurement focus is upon deter mination of changes in fund bala nce, rather than upon net income determination.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund.
The Park Development Fund accounts for development fees collected and used for the acquisition of parklands and the construction of new an d expansions of park facilities.
The American Rescue Plan Act Fund accounts for grant activity under the American Rescue Plan Act grant.
The other governmental funds of the City are considered nonmajo r. Additionally, the City reports the following fund types:
The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes.
The Capital Projects Funds a r e u s e d t o a c c o u n t f o r i n c o m e r e c e i v e d t o f u n d expenditures related to City infrastructure and development improvements.
The Debt Service Fund is used to account for debt service activity for the 2007 Refunding Certificates of Participation.
Proprietary Funds:
Proprietary funds are used to account for a government’s ongoin g activities which are similar to those often found in the private sector. The measurement focus is upon income determination, financial position, and cash flows. The City rep orts the following major proprietary funds:
The Water Fund accounts for the activities of the City’s water distribution operations.
The Wastewater Fund accounts for the activities of the City’s wastewater systems.
The Airport Fund accounts for the land sales owned by the former airport. The other proprietary funds of the City are considered nonmajor.
38 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
In addition to proprietary funds, the City reports internal ser vice funds, which are proprietary funds types, whose purpose is to account for goods and services provided by one City department to other City departments or agencies, or to external organizations.
Internal service funds are used to account for workers’ compens ation, fleet management, information system, general liability, and building maintenance.
Fiduciary Funds:
Fiduciary funds are accounted for on the accrual basis of accounting as are the proprietary funds explained abov e. The City reports the followi ng fiduciary funds, which are excluded from the government-wide financial statements:
Private-Purpose Trust Fund accounts for the custodial responsibilities that are assigned to the Successor Agency to the Rialto Redevelopment Agency purs uant to the Dissolution Act.
Pension Trust Fund accounts for the activities of the City’s plan for pos t- retirement medical benefits.
Custodial Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. The C ity acts in a custodial capacity for Community Facilities District (CFD) 87-1, CFD 2006 -1 Elm Park, and CFD 2016-1.
e. New Accounting Pronouncements Current Year Standards:
During the fiscal year ended June 30, 2021, the City implemente d the following GASB standards:
GASB Statement No. 84 – Fiduciary Activities. The requirements of this Statement will enhance consistency and comparability by (1) establishing speci fic criteria for identifying activities that should be reported as fiduciary activities and (2) clarifying whether and how business-type activities should report their fiduciary activiti es. Greater consistency and comparability enhance the value provided by the information rep orted in financial statements for assessing gove rnment accountability and stewards hip. The effect of this implementing this standard resulted funds previously reported as agency funds are now reported as custodial funds. The implementation of this financial information resulted in a prior period adjustments of $3,410,383, refer to note 21 for additional information.
f. Statement of Cash Flows
The City’s enterprise and internal service funds participate in the pooling of City-wide cash and investments. As amounts are available to these funds on demand, all cash and investments, including restricted cash and investments, in thes e funds are considered to be cash and cash equivalents for statement of cash flow purpose s. The City’s cash and cash equivalents are considered to be cash on hand, demand depo sits, and short-term investments with original maturities of three months or less from the date of acquisition. 39 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
g. Cash, Investments and Other Investments
The City pools cash and investment resources of some of its fun ds in order to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements.
Investments are stated at fair value except for certain investm ents, which have a remaining life of less than one year when purchased and investment contracts, which are stated at amortized cost. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of the investments is generall y based on published market prices and quotations from major investment firms. Inves tment earnings are allocated based on the source of funds.
h. Restricted Cash and Investments
Certain proceeds of governmenta l fund certificates of participa tion and enterprise fund long-term liabilities as well as certain resources set aside fo r their repayment, are classified as restricted assets on the balance sheet and statem ent of net position because their use is limited by applicable bond or debt covenan ts. The enterprise funds restricted cash and investments includes amounts held in trust for the RWS water and wastewater operations and capital projects. The cemetery (other enterprise fund) restricted cash and investments include amounts held for long-t erm endowment care required by state law.
i. Unbilled Receivables
Unbilled water and wastewater rev enue of the enterprise funds i s recognized as earned based on consumption or when service is rendered.
j. Prepaid Items
Payments to vendors that reflect costs applicable to future acc ounting periods are recorded as prepaid items in both government-wide and fund fina ncial statements and are recorded as expenditures when consumed rather than when purchased.
k. Inventory
Inventory is valued at cost, which approximates fair value, on a first-in, first-out basis.
Inventory in the proprietary f unds consists of expendable suppl ies held for consumption.
The costs of governmental fund type inventories are recorded as expenditure when consumed rather than when purchased.
l. Capital Assets
Capital assets, which include property, plant, equipment and in frastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type ac tivities columns in the government- wide financial statements and in the fund financial statements of the propriet ary funds and private-purpose trust fund.
40 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Capital assets, other than infrastructure assets, are defined b y the City as assets with an initial, individual cost of more than $5,000. Such assets are r ecorded at historical cost or estimated historical cost if purchased or constructed. The amou nts spent for the construction or acquisition of infrastructure assets are capita lized and reported in the government-wide financial statements with an individual cost of more than $25,000.
Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets, other than land, land easements, and constructi on in progress, are depreciated using the straight-line method using the following lives:
Land Improvements 200 years
Buildings and Other Structures 25 - 50 years
Improvements Other than Buildings 20 years
Machinery and Equipment 5 - 7 years
Distribution Systems 20 - 50 years
Wastewater Treatment Plant 20 - 50 years
Vehicles 5 - 10 years
Office Furniture, Computers and Equipment 5 - 20 years Infrastructure 20 - 60 years
m. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate finan cial statement element, deferred outflows of resources , represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
Deferred outflows related to pensions and OPEB equal to employ er contributions made after the measurement date of the net pension liability.
Deferred outflows related to pensions resulting from the diffe rence in projected and actual earnings on investments of the pension plans fiducia ry net position and changes in actuarially determined assumptions. These amount s are amortized over five years.
41 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
In addition to liabilities, the statement of net position and g overnmental funds balance sheet will sometimes report a separate section for deferred inf lows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources, which are grants receivable and fran chise fees collections. These amounts are deferred and recognized as an in flow of resources in the period that th e amounts become available.
Deferred inflows related to pensions for differences between expected and actual experiences. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all empl oyees that are provided with pensions through the plans.
Deferred inflows from pensions and OPEB resulting from the difference in projected and actual earnings on investments of the pension plans fiduciary net position and changes in assumptions. These amounts are amortize d over a closed period equal to the average of the expected remaining se rvice lives of all employees that are provided with pensions through the plans.
n. Interfund Transactions
Interfund current receivables and payables are classified as ei ther “due to/due from” (i.e., the current portion of in terfund loans) or “advance to/f rom other funds” (i.e., the noncurrent portion of interfund loans). Residual bal ances outstanding between the governmental activities and business-type activities are re ported in the government- wide financial statements as “internal balances”. Transactions, which constitute the transfer of resources from a fund receiving revenues to a fund through which the revenues are to be expended, are separately reported in the res pective funds’ operating statements as a transfer.
o. Long-Term Obligations
In the government-wide financial statements, proprietary fund f inancial statements, and private-purpose trust fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, proprietary fund type statement of ne t position, or private- purpose trust fund statement of net position. Bond premiums, di scounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using the effective interest method. Amortization of bond premium, discou nts, and deferred amounts is included in interest expense. Bonds payable are repo rted net of the applicable bond premium or discount. The deferred amount on ref unding is reported as a deferred outflow or inflow of resources. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
42 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the current period. The fa ce amount of debt issued is reported as other financing sources. Premiums receive d on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld the actual debt proceeds received, are reported as debt service expenditures.
p. Compensated Absences
In the governmental funds, compensated absences are recorded as expenditures in the year in which the amount is due an d payable due to resignations or retirements. As of year-end, the entire unpaid liability for the governmental fund s is recorded as a long-term liability in the government-wide statement of net pos ition. Compensated absences in the proprietary funds are recorded as liabilities in the applicable funds.
q. Net Position and Net Po sition Flow Assumptions
Net Position:
Net position is the excess of all the City’s assets and deferre d outflows of resources over all its liabilities and deferred inflows of resources. Net position is divided into three captions. These captions are described below and apply only to net position, which is applicable only to the government-wide statements, proprietary fund statements, private-purpose trust fund state ments, and other post-employmen t benefit trust fund statements.
Net Investment in Capital Assets - describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets, unspent bond proceeds from debt, and the deferral on refunding.
Restricted - describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, govern mental regulations, laws, or other restrictions which the City cannot unilaterally alter.
Unrestricted - describes the portion of net position which is not restricted as to use.
Net Positions Flow Assumptions:
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a fl ow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s practice to cons ider restricted - net position to have been depleted before unrestricted - net position is applied.
r. Fund Balances
The City’s governmental funds’ fund balances include the following classifications:
Nonspendable Fund Balance – includes amounts that are (a) not i n spendable form, or (b) legally or contractually required to be maintained intact. 43 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutio nally or through enabling legislation. Restriction may effectively be changed or lifted only with the consent of resource providers.
Committed Fund Balance – includes amounts that can only be used f o r t h e s p e c i f i c purposes determined by a formal action (Ordinance) of the City’ s highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.
Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. In tent is expressed by (a) the City Council or (b) an official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. The City Co uncil approves assignments of fund balance.
Unassigned Fund Balance – is the residual classification and in cludes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The unassigned fund balance classification is where to report negative amounts for all governmental funds, other than the general fund.
When expenditures are incurred, the City’s applies the most res trictive funds first; and then the City would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.
The City established encumbrances to record the amount of purch ase orders, contracts, and other obligations, which have not yet been fulfilled, cance lled, or discharged.
Encumbrances outstanding at year-end are recorded as part of assigned fund balance.
s. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expenses, information about the fiduciary net positions of the City’s Calif ornia Public Employees’ Retire ment System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduc iary net position have been determined on the same basis as they are reported by CalPE RS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
t. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outf lows/inflows of resources related to OPEB, and OPEB expense, information about the fiduci ary net position of the District’s plan (OPEB Plan) and additions to/deductions from th e OPEB Plan’s fiduciary net position have been determined on the same basis. For this p urpose, benefit payments are recognized when cu rrently due and payable in accor dance with the benefit terms. Investments are reported at fair value.
44 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 1: Summary of Significant Accounting Policies (Continued)
u. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that affect the re ported amounts of assets, deferred outflows of resources, liabilities, and defer red inflows of resources, and disclosure of contingent assets and liabilities, at the date of the financial statements , as well as the reported amounts of revenue and expenses during the reporting period. Ac tual results could differ from those estimates.
Note 2: Cash and Investments
Cash and Investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and Investments 267,933,053 $
Restricted Cash and Investments in Trust 23,642,696
Restricted Cash and Investments with Fiscal Agent 10,518,368 Statement of Fiduciary Net Position:
Cash and Investments 13,808,647
Restricted Cash and Investments with Fiscal Agents 5,272,315 Restricted Cash and Investments Bond Proceeds 1,352,844 Restricted Cash and Investments Held by Trust 21,309,189 Total Cash and Investments 343,837,112 $
Cash and Investments held by the City at June 30, 2021 consist of the following:
Cash on Hand 33,800$
Deposits with Financial Institutions 147,639,015
Cash and Investments with Public Agency Retirement Services (PARS) for Other Post-Employment B enefit (OPEB) Trust 21,309,189 Investments 174,855,108
Total Cash and Investments 343,837,112$
Investments Authorized by the California Government Code and the City’s Investment Policy
The City maintains a formal Investment Policy, which is adopted annually by the City Council. The Investment Po licy states that “the investment of City funds is governed by the California Government Code Section 53600 et seq.”
The table below identifies the in vestment types that are authorized for the City by the California Government Code and the City’s investment policy. Also identified are certain provisions that address interest rate risk and concentration of credit risk. Not addressed below are investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the gene ral provisions of the Government Code and Investment Policy and investments of the em ployer contributions to the other post-employment benefit (OPEB) trust that are gove rned by the trust agreement.
45 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
Authorized Investment Type
Authorized by
Investment Policy Maximum Maturity (1)
Maximum
Percentage of
Portfolio (1)
Maximum Inv estment
In One Issuer (1)
U.S. Treasury Obligations Yes 5 years None None
U.S. Government Sponsored Agency Securities Yes 5 years None 15% Banker's Acceptance Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% (2) 10% (2)
Negotiable Certificates of Deposit Yes 5 years 30% None Money Market Mutual Funds Yes 5 years None None
Medium Term Corporate Notes Yes 5 years 30% 30%
Repurchase Agreements Yes 90 days 50% (2) None
Reverse Repurchase Agreements Yes 90 days 20% None
Local Agency Investment Fund (LAIF) Yes N/A None *
Joint Powers Authority Pools Yes N/A None None
Time Deposit Yes 5 years 25% None
(1) Based on state law requirements or investment policy requiremen ts, whichever is more restrictive.
(2) Excluding amounts held by bond trustee that are not subject to California Government Code Restrictions.
* $195 million total between City, Utility Authority and Succes sor Agency.
N/A - Not Applicable.
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 the City manages its exposure to interest rates risk is by purchasing a combination of short and long-term investments and by timing cash flows from m aturities so that a portion of the portfolio is maturing or coming close to maturity evenly ov er time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the Cit y’s investments to market interest rate fluctuations is provided by the following table t hat shows the distribution of the City’s investments by maturity:
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 assignmen t of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating by Standard and Poor’s, as of year end for each investment type.
Total as of
June 30, 2021 A+ A Other Not Rated
Commercial Paper 31,563,690 $ 18,871,036 $ 5,793,482 $ - $ 6, 899,172$ Federal Home Loan Bank 16,987,513 16,987,513 - - - Money Market - CalTRUST Short-Term 3,345,224 - - - 3, 345,224 Local Agency Investment Fund (LAIF) 20,288,853 - - - 20, 288,853 Medium-term Corporate Notes 102,669,828 4,163,780 24, 287,787 64,028,166 10,190,095 Held By Bond Trust:
PARS Pooled Trust(OPEB) 21, 309,189 - - - 21, 309,189 Total 196,164,297 $ 40,022,329 $ 30,081,269 $ 64,028,166 $ 62,032,533 $ Ratings as of Year End
46 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
The actual ratings for the “Other” category above are as follows:
A- BBB+(1) BBB(1) Total
Medium-term Corporate Notes 15,353,768$ 37,190,746 $ 11,483,652 $ 64,028,166 $ Total 15,353,768 $ 37,190,746 $ 11,483,652 $ 64,028,166 $ (1) These investments are rated belo w the City's investment policy as of June 30, 2021, however, were initially purchas ed at a rating within the City's investment policy. The City subsequently amended their policy to allow for investments based on initial purchase. The City intends to hold the investment until maturity in order to avoid any monetary loss on the investment.
Concentration of Credit Risk
Concentration credit risk is the heightened risk of potential loss when investments are concentrated in one issuer.
As of June 30, 2021, the City had no investments concentrated i n one issuer which exceeded 5% of total investments. Investments issued or explici tly guaranteed by the U.S. government and investments in mutual funds, external investment s pool, and other pooled investments are excluded from this disclosure requirement.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the eve nt 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 t he failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not b e able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or l ocal government units by pledging securities in an undivided collateral pool held by a d epository regulated under state law (unless so waived by the governmental unit). The market val ue of the pledged securities in the collateral pool must equal at least 110% of the total am ount 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 s ecured public deposits.
As of June 30, 2021, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.
The City’s Investment Policy requires a third-party bank trust department hold all investment securities owned by the City. The City’s investments in certifi cates of deposit are held by banks. Accordingly, the certificates are covered by the same co llateral requirements as the City’s deposits.
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. 47 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
Investment in Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investm ent Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair values provided by LAIF for the entire LAIF portfolio. The bala nce available for withdrawal is based on the accounting records maintained by LAIF. LAIF is not rated.
Investment in CalTRUST Investment Pool
CalTRUST is a Joint Powers Agency Authority created by local pu blic agencies to provide a convenient method for local public agencies to pool their asset s for investment purposes.
CalTRUST is governed by a Board of Trustees made up of experien ced local agency treasurers and investment officers. The Board sets overall poli cies for the program and selects and supervises the activities of the investment manager and other agents.
CalTRUST maintains and administers four pooled accounts within the program: Money Market, Short-Term, Medium-Term and Long-Term. The Money Market account permits daily transactions, with same-day liquidity (provided redemption requests are received by 1:00 p.m.
Pacific time), with no limit on the amount of funds that may be invested. The Short-Term account permits an unlimited number of transactions per month (with prior day notice), with no limit on the amount of funds that may be invested. The Medium- and Long-Term accounts permit investments, withdrawals and transfers once per month, with five days advance notice.
All CalTRUST accounts comply wi th the limits and restrictions p laced on local agency investments by the California Government Code. CalTRUST imposes a $250,000 minimum investment; however, there is no maximum limit. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at am ounts based upon the City’s percentage interest of the fair value provided by CalTRUST for the CalTRUST accounts (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by CalTRUST.
Cash and Investments - OPEB Trust
The City established a trust account with Public Agency Retirement Services (PARS) to hold assets that are legally restricted for use in administering the City’s OPEB health plan.
The OPEB Trust’s specific cash and investments are managed by a third-party portfolio manager under guidelines approved by the City.
48 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
Those guidelines are as follows:
Risk Tolerance: Balanced High Mark Plus
Risk Management: The portfolio is constructed to control risk t hrough four layers of diversification - asset classes (cash, fixed
income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities.
Disciplined mutual fund sel ection and monitoring
process helps to drive return potential while reducing
portfolio risk.
Investment Objective: To provide growth of principal and income . It is expected that dividend and interest income are an
important component of the objective’s total return, it is expected that capital appreciation will comprise a larger portion of the total return.
Strategic Ranges: 0% - 20% Cash
30% - 50% Fixed Income
50% - 70% Equity
Cash and Investments with Fiscal Agents
Cash and investments maintained by fiscal agents are considered restricted and are pledged as collateral for payment of principal and interest on bonds.
Provisions of debt agreements, rather than the general provisio ns of the California Government Code or the City’s Investment Policy, govern investm ents of debt proceeds held by bond fiscal agents. Permitted investments are specified in r elated trust agreements and include the following:
Securities of the U.S. Government and its sponsored agencies Bankers’ Acceptances rated in the single highest classification Commercial Paper rated in the single highest classification Investments in money market funds rated in the single highest classification Municipal obligations rated Aaa/AAA or general obligations of states with ratings of at least A21A or higher by both Moody’s and S&P
Investment contracts
No maximum percentage of the related debt issue or maximum inve stment in one issuer is specified.
Cash and Investments Held in Trust
Cash and investments maintained in the trust are considered restricted for water and wastewater functions.
49 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 2: Cash and Investments (Continued)
Fair Value Measurements
The City categories its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quo ted prices in active markets for identical assets, Level 2 inputs are quoted prices in active markets for similar assets, and Level 3 inputs are significant unobservable inputs.
The City has the following recurring fair value measurements as of June 30, 2021:
Quoted Prices
Level 1
Observable
Inputs Level 2
Unobservable
Inputs Level 3 Total
Commercial Paper -$ 31,563,690$ -$ 31,563,690$ Federal Home Loan Bank - 16,987,513 - 16,987,513 Medium-term Corporate Notes - 102,669,828 - 102,669,828 Total Leveled Investments -$ 151,221,031$ -$ 151,221,031 Money Market - CalTRUST Short Term* 3,345,224
Local Agency Investment Fund (LAIF) 20,288,853
Held by Trust:
PARS Pooled Trust (OPEB)* 21,309,189
Total Investment Portfolio 196,164,297$
*Not subject to fair value measurements
Note 3: Accounts Receivable
Accounts receivable as of year-end for the City’s individual major funds, nonmajor funds, internal service funds, agency f unds and private-purpose trust fund, including the applicable allowances for uncollectible accounts, are as follows:
Accounts
Receivable
Less Allowance
for Uncollectable
Net Total
Accounts
Receivable
Governmental Funds:
General Fund 7,382,498 $ (2,430, 156)$ 4,952,342 $ Park Development fund 499 - 499 Other Governmental Funds 1,607,213 (34, 834) 1,572,379 Proprietary Funds:
Water 2,831,223 (461, 308) 2,369,915 Wastewater 6,254,479 (306, 076) 5,948,403 Airport 159,670 (151, 799) 7,871 Other Enterprise Funds 185 - 185 Internal Service Funds 6,029 - 6,029 Total Primary Government 18,241,796$ (3,384, 173)$ 14,857,623 $ Fiduciary Funds
Private-Purpose Trust Fund 36,809$ (19, 971)$ 16,838 $
50 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Loans and Notes Receivable
Other Governmental
Funds
Water Enterprise
Fund
Wastewater
Enterprise Fund
Loans Receivable 2,942,462 $ - $ - $ Less Allowance for Doubtful accounts (485,435) - - Notes Receivable 47,242,649 292,598 369,259 Less Allowance for Doubtful accounts (47,242,649) - - Notes and Loans Receivable (Net of Allowance) 2,457,027$ 292,598$ 369,259 $
Loans Receivable
Loans receivable of $2,942,462 which are reflected in the City’ s other governmental Traffic Development Special Revenue Fund, Neighborhood Stabilization Pr ogram Special Revenue Fund, Neighborhood Stabilization Program - Program Income Speci al Revenue Fund, Cal Home Special Revenue Fund, Local Drainage Special Revenue F und and Housing Authority Special Revenue Fund, is comprised of the following as of June 30, 2021:
The City administers a housing rehabilitation loan program, whi ch provides money to certain homeowners to rehabilitate their homes. There are certain criteria which the homeowner must meet prior to receiving approval of the loan, which are ba sed on household income and the need for rehabilitation. The City enters into loan agreemen ts with the homeowners that require the loans to be repaid only if title of the property ch anges. Therefore, the City has recorded the outstanding loans as loans receivable and due to o ther governments in the governmental funds. The amount of outstanding rehabilitation loans in the Cal Home Special Revenue Fund and Housing Authority Special Revenue Fund at June 30, 2021 is $2,272,024.
The City has provided down payment assistance under the Neighbo rhood Stabilization Program to eligible middle-income households earning not less t han eighty percent and not more than one hundred twenty percent of the area median income in San Bernardino County, California, as determined by t he U.S. Department of Housing and Urban Development (HUD). If any of the events described in the loan agreement, li ke sale or rental of all or any interest in the property without City’s prior written consent, has not occurred as of the fifteenth anniversary of the matur ity date, then the entire loa n amount is forgiven. The total outstanding balance in the Neighb orhood Stabilization Program Special Revenue Fund and Neighborhood Stabilization Program - Program Income Special Rev enue Fund as of June 30, 2021, was $485,435 (offset by an allowance of $485,435).
The City established a letter of credit for the beneficiary of the California Department of Fish and Game to obtain a permit for a capital project. Upon the com pletion of the project, the letter of credit totaling $160,190 as reported in the Traffic Development Special Revenue Fund will be returned to the City.
An additional letter of credit of $24,813 is established in the special deposits fund.
Notes Receivable
Notes receivable of $47,242,649, which is reflected in the City ’s other governmental Housing Authority Special Revenue Fund (offset by allowance of $47,242, 649) and $292,598 and $369,259, in the Water Enterprise Fund and the Wastewater Enterprise Funds, respectively, is comprised of the following as of June 30, 2021:
51 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Loans and Notes Re ceivable (Continued)
The Housing Authority provided development funding to Inland Va lley Housing Partners L.P. in accordance with an Affordable Housing Agreement by and betwe en the Authority and Southern California Housing Development Corporation for Phase I of the Citrus Grove Project (Project). Pursuant to a promissory note and the Agreement, the advance funding is to be repaid from the residual receipts generated by the Project at 3% interest rate per annum. The residual receipts were defined as 50% of the net income after a ll operating expenses and superior debt service payment s are made. Based upon a financia l analysis of the Project performed by a financial consult ant, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance as of June 30, 2021, was $19,995,578. An allowance of $19,995,578 has been recorded in t he financial statements because there is no estimate of t iming of cash collections on t he note. Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to Citrus Gr ove Housing Partners L.P. in accordance with an Affordable Housing Agreement by and betwe en the Authority and National Community Renaissance of California for Phase II of th e Project. Pursuant to four separate promissory notes and the Agreement, the Authority has advanced funding at 0% interest rate. The principal and accrued interest is to be r epaid from the residual receipts generated by the Project. The residual receipts were defined as 50% of the net income after all operating expenses and superior debt service payments are made. Based upon a financial analysis of the Project performed by a financial consultant, th e repayment is expected to be minimal relative to the total principal and accrued interest. The total outstanding balance as of June 30, 2021, was $8,626,713. An allowance of $8,626,713 ha s been recorded in the financial statements because there is no estimate for timing of cash collections on the note.
Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to TELACU in accordance with an Affordable Housing Agreement by and between the Authori ty and TELACU HOUSING-RIALTO, INC., in connection with the development of a 7 0-unit affordable senior housing rental complex project on a 2.3 acre site on the north side of Merrill Avenue, just westerly of Riverside, referred to TELACU I La Paz Community pr oject. Pursuant to a promissory note and the Agreement, the advance funding in the a mount of $751,408 is to be repaid from the residual receipts generated by the Project as a 0% interest rate. The residual receipts were defined as 50% of the net income after all operat ing expenses and superior debt service payments are made. Based upon a financial analysis of the Project performed by a financial consultant, the repayment is expected to be mini mal relative to the total principal and accrued interest. Provided the developer is in co mpliance with all of its obligations under the Affordable Housing Agreement, the Regulatory Agreement, and all other documents executed pursuant thereto, any remaining balance of the Housing Authority loan shall be forgiven upon the fifty-fifth (55th) anniversary of the date of the City’s issuance of a certificate of occupancy. The outstanding balance as of June 30, 2021, was $751,408.
An allowance of $751,408 has been recorded in the financial sta tements because there is no estimate for timing of cash collections on the note. Revenue wi ll be recognized on a cash basis.
The Housing Authority provided development funding to TELACU in accordance with an Affordable Housing Agreement by and between the Authori ty and TELACU HOUSING-RIALTO II, INC., in connection with the development of a 75-unit affordable senior housing rental complex project on the south side of Foothill Bo ulev ard and just west of
Cactus Avenue (“TELACU 2”) project. Pursuant to a promissory no te and the Agreement, the advance funding in the amount of $1,824,155 is to be repaid fro m the residual receipts generated by the Project at a 0% interest rate. The residual re ceipts were defined as 50% of 52 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Loans and Notes Re ceivable (Continued)
the net income after all operating expenses and superior debt s ervice payments are made.
Based upon a financial analysis of the Project performed by a f inancial consultant, the repayment is expected to be minimal relative to the total princ ipal and accrued interest. The outstanding balance as of June 30, 2021, was $1,707,241. An all owance of $1,707,241 has been recorded in the financial statements because there is no e stimate for timing of cash collection on the note. Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to TELACU in accordance with an Affordable Housing Agreement by and between the Authori ty and TELACU HOUSING-RIALTO III, INC., in connection with the development of an affordable housing complex project. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $3,805,000 is to be repaid from the residual rece ipts generated by the Project at a 0% interest rate. The residual receipts were defined as 50 % of the net income after all operating expenses and superior debt service payments are made. Based upon a financial analysis of the Project performed by a financial consultant, th e repayment is expected to be minimal relative to the total principal and accrued interest. T he outstanding balance as of June 30, 2021, was $3,060,010. An allowance of $3,060,010 has b een recorded in the financial statements because there is no estimate for timing of cash collection on the note.
Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to RIALTO FAMILY HOUSING PARTNERS, L.P. in accordance with an Affordable Housing Agreeme nt by and between the Authority and RIALTO FAMILY HOUS ING PARTNERS L.P. in connection w i t h t h e development of an affordable housing complex project. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $7,385,974 is to be repaid from the residual receipts generated by the Project. The residual receip ts were defined as 50% of the net income after all operating expenses and superior debt servi ce payments are made.
Based upon a financial analysis of the Project performed by a f inancial consultant, the repayment is expected to be minimal relative to the total princ ipal and accrued interest. The outstanding balance including unpaid accrued interest as of Jun e 30, 2021, was $9,278,943.
An allowance of $9,278,943 has been recorded in the financial s tatements because there is no estimate for timing of cash collection on the note. Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to RIALTO FAMILY HOUSING PARTNERS II, L.P. in accordance with an Affordable Housing Agre ement by and between the Authority and RIALTO FAMILY HOUSING PARTNERS L.P. in connec tion with the development of an affordable housing complex project. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $1,959,400 is to be repaid from the residual receipts generated by the Project. The residual receip ts were defined as 50% of the net income after all operating expenses and superior debt servi ce payments are made.
Based upon a financial analysis of the Project performed by a f inancial consultant, the repayment is expected to be minimal relative to the total princ ipal and accrued interest. The outstanding balance including unpaid accrued interest as of Jun e 30, 2021, was $2,425,981.
An allowance of $2,425,981 has been recorded in the financial s tatements because there is no estimate for timing of cash collection on the note. Revenue will be recognized on a cash basis.
The Housing Authority provided development funding to RIALTO FAMILY HOUSING PARTNERS II, L.P. in accordance with an Affordable Housing Agre ement by and between the Authority
and RIALTO FAMILY HOUSING PARTNERS L.P. in connec tion with the development of an affordable housing complex project. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $1,144,711 is to be repaid from the 53 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 4: Loans and Notes Re ceivable (Continued)
residual receipts generated by the Project. The residual receip ts were defined as 50% of the net income after all operating expenses and superior debt servi ce payments are made.
Based upon a financial analysis of the Project performed by a f inancial consultant, the repayment is expected to be minimal relative to the total princ ipal and accrued interest. The outstanding balance including unpaid accrued interest as of Jun e 30, 2021, was $1,396,775.
An allowance of $1,396,775 has been recorded in the financial s tatements because there is no estimate for timing of cash collection on the note. Revenue will be recognized on a cash basis.
The Rialto Utility Authority ent ered into a concessionaire agreement on March 27, 2012 with Rialto Water Services, L.P. (the Concessionaire) to provide ser vices with respect to the Utility Facilities for a term of 30 years. As part of the agree ment, the Rialto Utility Authority provided inventory and assets on hand to the Concessionaire for use in providing such utility services. At the end of the 30-year agreement, the Concessionaire must return assets in an equivalent amount of $292,598 for water utilities and $365,764 for wastewater utilities. See Note 13 for additional information.
Note 5: Interfund Receivables, Payables and Transfers
Interfund receivable and payable balances at June 30, 2021 were as follows:
Due From/To Other Funds
Due to Funds (Receivable) Due From Funds (Payable) Amount Governmental Funds:
General Fund Other Governmental Funds 849,606$
Water Enterprise Fund 221,337
Wastewater Enterprise Fund 625,033
Internal Service Funds 133,577
1,829,553$
These balances represent short-term borrowings resulting from e xpenditures incurred prior to receipt of the related revenue source.
Advances From/To Other Funds
The following table shows amounts advanced to and from funds within the City at June 30, 2021:
Advances to Other Funds Advances From Funds Amount
General Fund Water Enterprise Fund 1,300,000$
Park Development Special Revenue Fund 17,499,195
Wastewater Enterprise Fund Water Enterprise Fund 3,000,000 21,799,195$
Advances to and from other funds, result primarily from long-te rm borrowings used to fund capital projects in advance of related financing/assessments.
54 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 5: Interfund Receivables, Payables and Transfers (Continue d)
The original loan of $5,000,000 from the General Fund to the Wa ter Enterprise Fund was made to cover Perchlorate lawsuit related costs with an interes t rate of 5%. The City has waived charging interest on this advance. The Perchlorate lawsu it was settled in fiscal year 2012-13 and $2,400,000 of the loan has been repaid as of June 30, 2020. Repayment of the remaining loan balance of $1,300,000 will be paid through futur e revenues in the Water Enterprise Fund.
The original loan of $4,000,000 from the Wastewater Enterprise Fund to the Water Enterprise Fund was made to cover Perchlorate litigation related costs. The City has waived charging interest on this advance. The Perchlorate lawsu it was settled in fiscal year 2012-2013 and $1,000,000 of the loan has been repaid as of June 30, 2020. Repayment of the remaining loan balance of $3,000,000 will be paid through future revenues in the Water Enterprise Fund.
On February 12, 2019, the General Fund loaned the Park Developm ent Special Revenue Fund $17,499,195 to fund the expected cost of the Frisbie Park Expansion Project. The City has waived charging interest on this advance. Repayment of the remaining loan balance of $17,499,195 will be paid through future revenues in the Park Development Special Revenue Fund.
Transfers From/To Other Funds
Interfund transfers in and out at June 30, 2021 were as follows:
Tranfers In From Other Funds Transfers Out to Other Funds Amount Governmental Funds:
General Fund Other Governmental Funds 1,209,729$
Internal Service Funds 2,500,000
Other Governmental Funds General Fund 2,684,032
Proprietary Funds:
Other Enterprise Funds General Fund 420,500
6,814,261$
Transfers are either used to (1) move resources between funds b ased on Federal or State statute or City budget requirements, (2) move receipts restrict ed to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, or (3) use unrestricted revenues collected in the General Fund to finance various programs accounted for in the funds in accordance with budgetary authorizations. 55 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 6: Capital Assets
A summary of changes in the Governmental Activities capital ass ets at June 30, 2021 is as follows:
Balance
July 1, 2020 Transfers Additions Deletions
Balance
June 30, 2021
Governmental Activities:
Capital Assets, Not Depreciated:
Land 74,410,601 $ - $ - $ - $ 74,410,601$ Land Easements 7,086,730 - - - 7,086,730 Construction in Progress 57,954,929 (22,985,308) 11,396,403 (16,803) 46,349,221 139,452,260 (22,985,308) 11,396,403 (16,803) 127,846,552 Capital Assets, Being Depreciated:
Land Improvements 39,159 - - - 39,159 Building and Other Structures 30,081,800 - - - 30,081,800 Improvements Other than Buildings 57,344,389 19,945,900 - - 77,290,289 Machinery and Equipment 4,519,204 66,431 399,893 - 4,985,528 Vehicles 15,819,500 - 1,345,902 (83,076) 17,082,326 4,211,324 25,970 23,982 - 4,261,276 Infrastructure 209,123,748 3,039,408 3,424,952 - 215,588,108 321,139,124 23,077,709 5,194,729 (83,076) 349,328,486 Less Accumulated Depreciation:
Land Improvements (25,090) - (1,016) - (26,106) Building and Other Structures (13,179,774) - (705,611) - (13,885,385) Iimprovements Other than Buildings (26,648,079) - (2,362,999) - (29,011,078) Machinery and Equipment (3,064,961) (66,431) (560,076) - (3,691,468) Vehicles (11,890,689) - (954,381) 63,551 (12,781,519) (3,402,667) (25,970) (179,264) - (3,607,901) Infrastructure (122,626,694) - (3,484,135) - (126,110,829) (180,837,954) (92,401) (8,247,482) 63,551 (189,114,286) 140,301,170 22,985,308 (3,052,753) (19,525) 160,214,200 279,753,430$ -$ 8,343,650$ (36,328)$ 288,060,752$ Total Governmental Activities
Capital Assets, Net
Total Capital Assets, Not
Depreciated
Office Furniture, Computers and
Equipment
Total Capital Assets, Being
Depreciated
Office Furniture, Computers and
Equipment
Total Accum ulated
Depreciation
Total Capital Assets Being
Depreciated, Net
56 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 6: Capital Assets (Continued)
A summary of changes in the Business-type Activities capital as sets at June 30, 2021 is as follows:
Balance
July 1, 2020 Transfers Additions Deletions
Balance
June 30, 2021
Business-Type Activities:
Capital Assets, Not Depreciated:
Land 1,767,770 $ - $ - $ - $ 1,767,770$ Construction in Progress 33,755,565 (2,870,126) 1,514,422 - 32,399,861 35,523,335 (2,870,126) 1,514,422 - 34,167,631 Capital Assets, Being Depreciated:
Land Improvements 8,062,700 2,870,126 - - 10,932,826 Building and Other Structures 150,899,700 (148,563,386) - - 2,336,314 Machinery and Equipment 1,016,155 148,563,386 - 92,401 149,487,140 159,978,555 2,870,126 - 92,401 162,756,280 Less Accumulated Depreciation: -
Land Improvements 5,031,712 - 345,319 - 5,377,031 Building and Other Structures 71,434,688 (69,396,236) 24,715 - 2,063,167 Machinery and Equipment 1,015,878 69,396,236 2,824,839 92,123 73,144,830 77,482,278 - 3,194,873 92,123 80,585,028 82,496,277 2,870,126 (3,194,873) 278 82,171,252 118,019,612$ -$ (1,680,451)$ 278$ 116,338,883$ Total Capital Assets, Not Depreciated
Total Capital Assets, Being
Depreciated
Total Accumulated Depreciation
Total Capital Assets Being
Depreciated, Net
Total Governmental Activities Capital
Assets, Net
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government 4,659,321$
Community Development 2,031,078
Public Safety 1,437,852
Internal Service Funds 119,231
Total Depreciation Expense - Governmental Activities 8,247,482$
Business-type Activ ities:
Water 888,101 $
Wastewater 2,306,391
Other Enterprise Funds 381
Total Depreciation Expense - Business-type Activities 3,194,873 $
57 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 7: Joint Powers Authority
Agua Mansa Industrial Growth Association (AMIGA) Joint Powers Authority
On October 21, 1985, the Agua Mansa Industrial Growth Associati on Joint Powers Authority (the AMIGA Joint Powers Authority) wa s created under a joint exercis e of powers agreement. It was formed to undertake projects to s timulate private investment in business and industrial growth in economically depressed areas within the boundaries of the assoc iation. The AMIGA Joint Powers Authority shall manage, coordinate, market and administer econo mic development programs and projects in the Agua Mansa area. The governing board consists o f one member appointed from each participating Agency, which include the County of San Bern ardino, the County of Riverside, the City of Colton, the City of Rialto and the City of Riversid e. The approval of budgets and assumption of financial obligations must be approved by all members.
On February 27, 1992, the AMIGA Joint Powers Authority issued $ 16,365,000 of special tax bonds, which is secured by a special tax lien on property in the District under the Community Facilities District No. 1992-1.
On July 10, 2003, the AMIGA Joint Powers Authority refunded the 1992 bonds with the 2003 Special Tax Bonds, which is secured by a special tax lien on pr operty in the District under the Community Facilities District No. 2002-1.
The City has no equity interest in the AMIGA Joint Powers Authority and does not receive a share of operating results. Accordingly, neither assets nor liabilities of the AMIGA Joint Powers Authority are recorded in the City’s financial statements.
Copies of the AMIGA Joint Powers Authority’s audited financial statements can be obtained from the Agua Mansa Industrial Growth Association at 157 West Fifth Street, Second Floor, San Bernardino, California 92415.
Note 8: Long-Term Obligations
The following is a summary of long-term obligations for the year ended June 30, 2021:
Governmental Activities
Beginning at
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Due in
More Than
One Year
Certificate of Participation 525,000$ - $ ( 255,000)$ 270,000 $ 270,000 $ - $ Direct Borrowings:
Capital Lease 11,485,311 - (357,111) 11,128,200 390,276 10,737,924 Notes Payable 2,514,000 - (314,000) 2,200,000 332,000 1,868,000 Subtotal 13,999,311 - (671,111) 13,328,200 722,276 12,605,924 Total 14,524,311 $ - $ ( 926,111)$ 13,598,200 $ 992,276 $ 12,605,924$ 58 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Business-Type Activities:
Beginning at
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within One
Year
Due in
More Than
One Year
Direct Borrowings:
Debt with Concessionaire:
Water 33,603,303$ -$ (785, 223)$ 32,818,080$ 834,640$ 31,983,440$ Wastewater 120,468,650 - (1,839, 408) 118,629,242 2,004,961 116,624,281 Subtotal 154,071,953 - (2,624, 631) 151,447,322 2,839,601 148,607,721 Due to other governments 383,555 - - 383,555 - 383,555 Total 154,455,508$ -$ (2,624, 631)$ 151,830,877$ 2,839,601$ 148,991,276$
Governmental Activities
Long-term debt of the governmental activities at June 30, 2021 is comprised of the following:
Certificates of Participation
2007 Refunding Certificates of Participation: On December 19, 2 007, the City of Rialto issued $3,500,000 serial and term certificates of participation bearing interest at a rate of
3.98%. The term certificates mature through January 20, 2022 in amounts ranging from $185,000 to $335,000. Proceeds of the certificates of participa tion were split between governmental funds (87%) and proprietary funds (13%). Each fund type’s respective share of the liability is reflected in its long-term debt and is payable from those funds.
The refunding was undertaken to remove restrictive bond covenan ts associated with the 1997 Certificates of Participation and to reduce total future d ebt service payments. The reacquisition price exceeded the net carrying amount of the old debt by $36,550. This amount is reported as a deferred outflow of resources and is am ortized over the refunded debt’s life, which is the same as the new debt.
$ 2 3 4 , 9 0 0
Reported with Internal Service Funds
2007 Refunding Certificates of Participation: On December 19, 2 007, the City of Rialto issued $3,500,000 serial and term certificates of participation bearing interest at a rate of
3.98%. The term certificates mature through January 20, 2022 in amounts ranging from $185,000 to $335,000. Proceeds of the certificates of participa tion were split between governmental funds (87%) and proprietary funds (13%). Each fun d type’s respective share of the liability is reflected in its long-term debt and is payable from those funds.
35,100
$ 270,000
59 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Capital Leases
On May 31, 2017, the City entered into an equipment lease-purchase agreement in the amount of $2,455,000 to acquire energy efficient equipment including HVAC, lighting retrofits and controls to be repaid over 15 years. The lease be a r s i n t e r e s t a t a r a t e o f
3.6% multiplied by the margin rate factor provided that the res ulting interest rate shall n o t e x c e e d 4 % . T h e m a r g i n r a t e f a c t o r i s t h e g r e a t e r o f ( i ) 1 . 0 and (ii) one minus the maximum federal corporate tax rate newly in effect multiplied b y (b) one divided by the sum of one minus the maximum federal corporate tax rates as of the commencement date. The effective date of any change in the margin rate facto r shall be effective date of the decrease or increase in the maximum federal corporate tax r ate resulting in such change. The obligation is secured by a first priority and perfe cted lien and security interest on the equipment. In the event of default, any amount outstanding could be declared immediately due and the equipment required to be returned to the lessor. $ 1,900,974
On November 30, 2017, the City entered into an equipment lease-purchase agreement by issuance of Clean Renewable Energy Bonds (CREBS) in the amount of $6,353,963 to acquire solar panels to be repaid over 20 years. The lease bears interest at a rate of
3.42% multiplied by the margin rate factor provided that the re sulting interest rate shall not exceed 6.25%. The margin rate factor is the greater of (i) 1.0 and (ii) one minus the maximum federal corporate tax rate newly in effect multiplied b y (b) one divided by the sum of one minus the maximum federal corporate tax rates as of the commencement date.
The effective date of any change in the margin rate factor shal l be effective date of the decrease or increase in the maximum federal corporate tax rate resulting in such change.
The obligation is secured by a first priority and perfected lie n and security interest on the equipment. In the event of default, any amount outstanding cou ld be declared immediately due and the equipment required to be returned to the lessor.
6,100,306
On October 31, 2018, the City entered into an equipment lease-p urchase agreement in the amount of $3,556,613 to finance the Citywide Street Light Acquisition and Conversion Project. The lease bears interest at a rate of 3.60% multiplied by the margin rate factor provided that the resulting interest rate shall not exceed 8.00%. The margin rate factor is the greater of (i) 1.0 and (ii) one minus the ma ximum federal corporate tax rate newly in effect multiplied by (b) one divided by the sum o f one minus the maximum federal corporate tax rates as of the commencement date. The ef fective date of any change in the margin rate factor shall be effective date of the decrease or increase in the maximum federal corporate tax rate resulting in such change . The obligation is secured by a first priority and perfected lien and security interest on the equipment. In the event of default, any amount outstanding could be declared imme diately due and retake possession of the property.
3,126,920
$ 11,128,200
60 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Notes Payable HUD 108 Senior Center
On August 8, 2002, the City entered into a Section 108 loan agreement with U.S. Department of Housing and Urban Development in the amount of $3,060,000, bearing 6.12% interest to financ e the development of the Rialto Senior Center. In May 2015, the City refinanced this loan. The principal amount o f the refinanced Section 108 loan was used to repay the entire loan balance of $ 1,702,000. Annual principal payments through August 1, 2022, range from $168,000 to $257,000. Interest of 1.75% is paid semi- annually. Pa yments on the loan are made from interest earned on the restricted loan investments and from Community Development Block Grant funds. In the event of default, the loan will continue to be paid through grant funds and no assets have been collateralized against the loan.
$ 281,000
Notes Payable (2019A)
On March 28, 2019, the City’s Public Financing Authority entere d into a Section 108 loan agreement with the U.S. Department of Housing and Urban Develop ment in the amount of $2,000,000, bearing 2.54% interest to finance improve ments to Bud Bender Park. Annual principal payments through August 1, 2038 range fr om $81,000 to $132,000, paid semi-annually. Payments on the loan are made fro m interest earned on the restricted loan investments and from Community Developme nt Block Grant funds.
In the event of default, the loan will continue to be paid through Grant funds and no assets have been collateralized against the loan.
1,919,000
$ 2,200,000
The annual requirements to amortize outstanding long-term debt other than compensated absences are as follows:
Year Ending
June 30, Principal Interest Total
2022 270,000 $ 10,746 $ 280,746 $
Total 270,000 $ 10,746 $ 280,746 $
Certificates of Participation
Year Ending
June 30, Principal Interest Total
2022 169,398$ 74,360 $ 243,758 $
2023 161,990 67,658 229,648
2024 158,392 61,214 219,606
2025 157,978 54,885 212,863
2026 160,258 48,540 208,798
2027-2031 887,738 141,956 1,029,694
2032 205,220 6,175 211,395
Total 1,900,974$ 454,788$ 2,355,762 $
Capital Lease 2017
61 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Year Ending
June 30, Principal Interest Total
2022 19,279 $ 208,530$ 227,809 $
2023 109,652 207,738 317,390
2024 205,022 202,551 407,573
2025 228,533 195,342 423,875
2026 253,513 187,317 440,830
2027-2031 1,699,255 783,927 2,483,182
2032-2036 2,596,445 427,821 3,024,266
2037-2038 988,607 34,212 1,022,819
Total 6,100,306$ 2, 247,438$ 8,347,744 $
Capital Lease (CREBS)
Year Ending
June 30, Principal Interest Total
2022 201,599$ 112,312 $ 313,911 $
2023 209,024 104,886 313,910
2024 216,597 97,187 313,784
2025 224,574 89,461 314,035
2026 232,973 80,938 313,911
2027-2031 1,299,911 269,645 1,569,556
2032-2034 742,242 41,105 783,347
Total 3,126,920$ 795,534 $ 3,922,454 $
Capital Lease (2019)
Year Ending
June 30, Principal Interest Total
2022 249,000$ 3,679 $ 252,679 $
2023 32,000 359 32,359
Total 281,000$ 4,038 $ 285,038 $
Notes Payable HUD 108 Senior Center
Year Ending
June 30, Principal Interest Total
2022 83,000 $ 59,595 $ 142,595 $
2023 84,000 57,459 141,459
2024 87,000 55,250 142,250
2025 90,000 52,911 142,911
2026 93,000 50,437 143,437
2027-2031 510,000 209,143 719,143
2032-2036 585,000 120,529 705,529
2037-2038 387,000 21,160 408,160
Total 1,919,000$ 626,484$ 2,545,484 $
Notes Payable (2019A)
62 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Business-type Activities
Long-term debt of the business-type activities at June 30, 2021 is comprised of the following:
Collateralized Debt - Concessionaire Agreement
The Rialto Utility Authority has entered into an agreement on March 27, 2012 with Rialto Water Services, LP (the Concessionaire) to provide servi ces with respect to the Utility Facilities for a term of 30 years. As part of the agree ment, the Concessionaire provided $41,037,000 of funds restricted to water and wastewater utility capital projects, $35,000,000 of back-due rent to the City General Fund and defea sed the previous debt of the Utility Authority. The C ity contributed $5,093,528 to th e Concessionaire for the agreement. This resulted in a borrowing totaling $38,249,443 in the Water Enterprise Fund and $130,472,604 in the Wastewater Enterprise Fund with in terest rates of 6.293% and 8.969%, respectively. Revenue earned in the Water and Waste water Enterprise Funds is pledged to repay the collateralized debt with the Conc essionaire. See Note 13 for further information regarding the agreement.
$ 151,447,322
The City has pledged future water customer revenues, net of spe cified operating expenses, to repay $38,249,443 in collateralized debt issued in November 2012.
Proceeds from the collateralized debt provided financing as shown in the table on the next page. The bonds are payable solely from water customer net revenues and are payable through November 2042. The total principal and interest remaining to be paid on the bonds is $59,200,388 as of June 30, 2021. Principal and interest paid for the current year and total customer net revenues (expenses) (operating inco me plus depreciation) available to pay the principal and interest were $785,223 and $2,114,778, respectively.
The City has pledged future wastewater customer revenues, net o f specified operating expenses, to repay $130,472,604 in wastewater collateralized de b t i s s u e d i n November 2012. Proceeds from the collateralized debt provided f inancing as shown in the table on the next page. The bonds are payable solely from w astewater customer net revenues and are payable through November 2042. The total princ ipal and interest remaining to be paid on the bonds is $271,570,938 as of June 30 , 2021. Principal and interest paid for the current yea r and total customer net reven ues (operating income less depreciation) available to pay the principal and interest were $1,839,408 and $10,842,593, respectively.
63 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Business-type Activities
Collateralized Debt - Concessionaire Agreement - Continued
As part of the concession agreement, the Concessionaire provide d funds to the Authority for the following purposes:
Funds Wastewater Water Application of Funds
Cost estimate for the Utility
Facilities improvements 28,066,000$ * 12,971,000$ * Construction account Defeased obligations 23,648,443 2,893,669 Defease or repay existing obligations Initial funding of rate stabilization
accounts 22,962,201 8,952,242 Rate stabilization account Initial working capital deposits to
Authority expenses accounts 468,034 509,871 Prov ide operating funds for expenses Initial funding of reserve accounts 1,000,000 1,000,000 Prov ide funds for routine repairs Provide funding of reserve
accounts 5,503,530 2,971,001 Fund reserv e accounts Provide funding to repay General
Fund 32,000,000 3,000,000 Pay General Fund lease payments Cost of financing 16,824,396 5,951,660
130,472,604$ 38,249,443$
* The City has received $3,235,154 of these proceeds from the Concessionaire. The remaining funds are maintained in an investment account in the name of the Concessionaire for the benefit of the City and are recorded as a concessionaire receivable in the Wastewater and Water Enterprise Fund.
In addition, the City contributed $5,093,528 in fiscal year 2012-2013 to the Concessionaire for the agreement.
The agreement allows the Concessionaire the right to pledge the user fees to obtain the financing. The Authority is to establish user fees in an amount sufficient to pay all expenses of the utility including the payments to the Concessionaire for services, reimbursements and capital charges.
64 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Long-Term Obligations (Continued)
Business-type Activities
Collateralized Debt - Concessionaire Agreement - Continued
The capital charges to be paid by the Concessionaire are effect ively debt service payments for providing the financing. The Authority received proceeds in exchange for pledging specific future revenues from the Utilities. The Authority main tains active involvement in the utilities as the Authority is responsible for setting user fees and will approve and oversee improvements to the facilities.
The annual requirements to amortize outstanding long-term debt other than compensated absences are as follows:
Year Ending
June 30,
Water Debt with
Concessionaire Interest
Wastewater
Debt with
Conccessionaire Interest Total
2022 834,640$ 2,065,360 $ 2,004,961 $ 10,677,040 $ 15,582,001 $ 2023 887,167 2,012,833 2,185,414 10,496,586 15,582,000 2024 943,000 1,957,000 2,382,109 10,299,891 15,582,000 2025 1,002,346 1,897,654 2,596,507 10,085,493 15,582,000 2026 1,065,427 1,834,573 2,830,201 9,851,799 15,582,000 2027-2031 6,421,383 8,078,617 18,462,533 44,947,467 77,910,000 2032-2036 8,712,830 5,787,170 28,407,343 35,002,657 77,910,000 2037-2041 11,821,972 2,678,028 43,708,908 19,701,092 77,910,000 2042-2043 1,129,315 71,072 16,051,266 1,879,670 19,131,323 Total 32,818,080$ 26,382,307 $ 118,629,242$ 152,941,695 $ 330,771,324 $
Due to Other Governments
County reimbursement agreement: Non-interest bearing agreement to reimburse the County of San Bernardino for certain construction costs for the Valley Boulevard wastewater line extension project, not to exceed $500,000. Ther e are no provisions in the event of default and no assets were held as collateral. Sew er connection fees and treatment plant expansion fees paid by property owners connecti ng to the sewer line will reimburse the County for the construction costs commencing January 31, 1998.
$ 383,555
Note 9: Compensated Absences
The City accounts for compensated absences (unpaid vacation, holiday, compensated time off, and sick leave) for all City employees in the governmental activities and business-type activities. The balance for accrued compensated absences at June 30, 2021 for the governmental activities is $9,442,737 and for the business-type activities is $74,123. Funding for the liability is expensed to come primarily from the Genera l Fund for governmental and business-type activities, respectively.
Beginning at
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Due in More
Than One Year
Governmental Activites 8,206,878$ 2,718,177 $ (1,482,318)$ 9,442,737$ 1,699,693$ 7,743,044$ Business-Type Activities 278,862 16,255 (220,994) 74,123 13,343 60,780 Total 8,485,740$ 2,734,432$ (1,703,312)$ 9,516,860$ 1,713,036$ 7,803,824$
65 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 10: No Commitment Debt
2006 Community Facilities District No. 2006-1 Bonds: On August 8, 2006, the City issued Special Tax Bonds totaling $5,035,000 pursuant to the Mello-Roo s Community Facilities Act of 1982, as amended. Proceeds of the bonds provided for the con struction and acquisition of certain public facilities to serve property located within the Community Facilities District No. 2006-1. On December 12, 2016, these bonds were advance refunde d with the 2016 Bonds with a principal amount totaling $4,905,000. The 2016 Bond proc eeds were used to fully repay the 2006-1 Bonds. The bonds are limited obligations of the District, payable solely from the Special Taxes and certain funds described in the Bond Resol ution. Neither the credit nor taxing power of the City is pledged to the payment of the bonds . The City accounts for collection of the taxes and the payment of debt service in a fi duciary capacity in its Custodial Funds. At June 30, 2021, bonds outstanding totaled $4,360,000 a nd the unamortized bond premium is $24,400.
Note 11: Pension Plans
a. General Information about the Pension Plans
Plan Description - All qualified permanent and probationary employees are eligib le to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which a c t s a s a c o m m o n investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full descripti on of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of cre dited service, equal to one year of fulltime employment. Members with five years of tot al service are eligible to retire at age 50 to 62 with statutorily reduced benefits. All m embers are eligible for non-duty disability benefits afte r 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death be nefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or t he 1957 Survivor Benefit if the member dies while actively employed and has at least 20 yea rs of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
66 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit Formulas 2.7% at 55 2.0% at 62
Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 - 55 52 - 67
Monthly Benefits, as a % of Eligible
Compensation 2.0% - 2.7% 1.0% - 2.5%
Required Employee Contribution Rates 8.00% 7.25%
Required Employer Contribution Rates 22.87% 12.79%
Hire Date
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit Formulas 3.0% at 50 2.7% at 57
Benefit Vesting Schedule 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life
Retirement Age 50 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.00% 2.0% - 2.7%
Required Employee Contribution Rates 9.00% 14.25%
Required Employer Contribution Rates 35.43% 24.73%
Miscellaneous
Safety
Employees Covered - At June 30, 2021, the following employees were covered by the benefit terms for each Plan:
Miscellaneous Safety
Inactive Employees or Beneficiaries
Currently Receiving Benefits 524 335
Inactive Employees entitled to but not
Yet Receiving Benefits 74 31
Activ e Employees 184 154
782 520
Contributions - Section 20814(c) of the California Public Employees’ Retireme nt Law requires that the employer contribution rates for all public em ployers are determined on an annual basis by the actuary and shall be effective on the Ju ly 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended.
Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirem ents are classified as plan member contributions.
67 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
b. Net Position Liability
The City’s net pension liability for each Plan is measured as t he total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuaria l valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard up date procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions - The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Actuarial Assumptions:
Discount Rate 7.15% 7.15%
Inflation 2.63% 2.63%
Projected Salary Increase Varies 1 Varies 1
Mortality Rate Table CalPERS Membership Date 2 CalPERS Membership Date 2 Post Retirement Benefit Income See Footnote 3 See Footnote 3 1 Depending on age, service and type of employment.
2 The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. 3 Contract COLA up to 2% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter.
All other actuarial assumptions used in the valuations were based on the results of an actuarial experience study for the period from 1997 to 2011, in cluding updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.
Discount Rate - The discount rate used to measure the total pension liability at June 30, 2020 and 2019 measurement dates was 7.15% for the Plan . To determine whether the municipal bond rate should be used in the calculati on of a discount rate for each plan, CalPERS stress tested plans that would most likely r esult in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Theref ore, the 7.15% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long term expected discount rate of 7.15% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB 68 Crossover Testing Report” that can be obtained from the CalPERS website. 68 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
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 expens e and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS t ook into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employee Retirement Funds’ asset classes (which includes the agent plan and two cost sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short- term (first 10 years) and the long-t erm (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equiv alent 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 the rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class.
Asset Class (a)
Assumed Asset
Allocation
Real Return
Years 1 - 10 (b)
Real Return
Years 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% - -0.92%
Total 100.00%
(b) An expected inflation of 2.00% used for this period. (c) An expected inflation of 2.92% used for this period. (a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securitites.
69 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
c. Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan, using the measurement date of June 30, 2020, are as follows:
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability/(Asset)
(c)=(a)-(b)
Balance at June 30, 2019 137,623,191$ 97,825,959$ 39,797,232$ Changes in the Year:
Service Cost 2,051,976 - 2,051,976 Interest on the Total Pension Liability 9,773,601 - 9,773,601 Differences between Expected and
Actual Experience 1,702,384 - 1,702,384 Contribution - Employer - 4,154,462 (4,154,462) Contribution - Employee - 1,030,303 (1,030,303) Net Inv estment Income - 4,856,489 (4,856,489) Benefit Payments, Including Refunds of
Employee Contributions (7,315,654) (7,315,654) - Administrative Expenses - (137,911) 137,911 Net Changes 6,212,307 2,587,689 3,624,618 Balance at June 30, 2020
(Measurement Date) 143,835,498$ 100,413,648$ 43,421,850$ Increase (Decrease)
70 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
The changes in the net pension liability for the Safety Plan, u sing the measurement date of June 30, 2020, are as follows:
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability/(Asset)
(c)=(a)-(b)
Balance at June 30, 2019 295,123,998$ 213,771,215 $ 81,352,783 $ Changes in the Year:
Service Cost 5,368,782 - 5, 368,782 Interest on the Total Pension Liability 20,986,672 - 20, 986,672 Differences between Expected and
Actual Experience 2,381,715 - 2, 381,715 Contribution - Employer - 8,902,873 (8,902,873) Contribution - Employee - 3,347,779 (3,347,779) Net Inv estment Income - 10,639,176 (10,639,176) Benefit Payments, Including Refunds of
Employee Contributions (13,340,458) (13,340,458) - Administrative Expenses - (301, 365) 301,365 Net Changes 15,396,711 9,248,005 6,148,706
Balance at June 30, 2020
(Measurement Date) 310,520,709$ 223,019,220$ 87,501,489$ Increase (Decrease)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan of 7.15%, as well as what the City’s net pension liability would be if it were calculated using a di scount rate that is 1-percentage point lower (6.15%) or 1-percentage point higher ( 8.15%) than the current rate:
Miscellaneous Safety Total
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability 62,571,058$ 132,911,264$ 195,482,322$ Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability 43,421,850$ 87,501,489$ 130,923,339$ 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability 27,666,499$ 50,660,504$ 78,327,003$
Pension Plan Fiduciary Net Position - Detailed information about the Pension Plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 71 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense of $5,809,852 and $10,356,432 for the Miscellaneous and Safety Plans, respect ively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources for each Plan:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to Measurement Date 5, 583,492$ - $ Change in Assumptions - -
Difference between Expected and Actual Experience 928,573 - Net Difference between Projected and Actual Earnings on Pension Plan Inv estments 762,475 -
7,274,540$ - $
Miscellaneous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to Measurement Date 13, 413,121$ - $ Change in Assumptions - 1, 589,351 Difference between Expected and Actual Experience 1,698,607 531,622 Net Difference between Projected and Actual Earnings on Pension Plan Inv estments 1, 832,230 -
16,943,958$ 2,120,973$
Safety
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent to Measurement Date 18, 996,613$ - $ Change in Assumptions - 1, 589,351 Difference between Expected and Actual Experience 2,627,180 531,622 Net Difference between Projected and Actual Earnings on Pension Plan Inv estments 2, 594,705 -
24,218,498$ 2,120,973$
Total
72 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 11: Pension Plans (Continued)
$5,583,492 and $13,413,121 reported as deferred outflows of res ources related to contributions subsequent to the measurement date for the Miscel laneous and Safety Plans, respectively, will be recognized as a reduction o f the net pension liability in the year ending June 30, 2022. Other amounts reported as deferr ed outflows/inflows of resources related to pensions will be recognized as pension expense for each Plan as follows:
Year Ending
June 30, Miscellaneous Safety Total
2022 376,189$ (1,976,811) $ (1,600,622) $
2023 406,355 1,268,512 1,674,867
2024 503,665 1,203,517 1,707,182
2025 404,839 914,646 1,319,485
2026 - - -
Thereafter - - -
Total 1,691,048$ 1,409,864 $ 3,100,912 $
Deferred Outflows /(Inflows) of Resources
e. Payable to the Pension Plans
At June 30, 2021, the City has no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.
Note 12: Other Post-Employment Benefits (OPEB)
Plan Description
The City provides postemployment healthcare benefits through th e California Public Employees’ Retirement System (Ca lPERS) healthcare program entit led Public Employees’ Medical and Hospital Care Act (PEMHCA) to eligible employees an d any qualified family members under the authority of a Memorandum of Understanding wi th the employee bargaining units. The City contributes toward the health premium based on the Memorandum of Understanding. The City does not provide a retiree contribut ion for dental, vision, or life insurance benefits.
Upon attainment of a minimum age of 50 (or age 52, if a new mis cellaneous employee was hired on or after January 1, 2013) and completion of a minimum State or public agency service requirement of five years, an employee may retire and r emain covered at the City’s expense for period depending on employment classification. The City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. Benefits continue to dependents so long as they remain eligible for coverage. The City contributes 1 00% of medical premiums for the r e t i r e e a n d h i s o r h e r covered dependents, but not more than the maximum monthly premiums as follows: $279.25 for single, $558.49 for two-party, and $726.04 for family. In a ddition, the City will not contribute less than the PEMHCA minimum employer contribution of $136 for 2020 and $143 for 2021. Insurance provided by the City will be supplemental t o Medicare upon the retiree reaching the age of 65.
73 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Other Post-Employment Benefits (OPEB) (Continued)
Funding Policy
The City generally makes an annual contribution to the Trust an d currently pays benefits either directly to retirees or through PEMHCA during the year a s pay-as-you-go expenses.
The plan does not issue a publicly available financial report. The plan and Trust are reported as a fiduciary fund other post-employment benefit trust. The City did not make a contribution for the year ending June 30, 2021.
Employees Covered
As of June 30, 2020 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
Active employees 338
Inactive employees or beneficiaries currently receiving benefits 239 Inactive employees entitled to, but not yet receiving benefits - 577
Contributions
The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2021, the City made contribut ions of $268,5 05 and $806,923 implied subsidy benefit payments.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an a ctuarial valuation dated June 30, 2020 based on the following actuarial methods and assumptions:
Actuarial Assumptions
Discount Rate 2.95%
Inflation 2.50%
Salary Increases 3.00% plus merit
Investment Rate of Return 6.50%
Mortality Rate(
1) Derived using CalPERS Membership Data for all funds
Pre-Retirement Turnover(2) Derived using CalPERS Membership Data for all funds Healthcare Trend Rate 5.4%
Notes:
(1) Pre-retirement mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December 2017 and post-retirement mortality information was derived from the 2007 to 2015 CalPERS Experience Study. The Experience Study Rep orts may be access on the CalPERS website www.calpers.ca.gov under Forms and Publications.
(2) The pre-retirement turnover information was developed based on CalPERS specific data. For more details, please refer to the 2007 to 2015 Experience Study Repo rt. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. 74 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Other Post-Employment Benefits (OPEB) (Continued)
The long-term expected rate of return on OPEB 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 OPEB plan investment e xpense and infl ation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class inc luded in the OPEB plan’s target a sset are summarized in the following table:
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Global Equity 57.00% 4.82%
Global Fixed Income 27.00% 1.47%
TIPS 5.00% 1.29%
REITS 8.00% 3.76%
Commodities 3.00% 0.84%
Total 100.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 2.95 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employe es and beneficiaries.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projects benefit payments to determine the total OPEB liability.
Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
Total Pension
Liability (a)
Plan Fiduciary
Net Position (b)
Net Pension
Liability/(Asset)
(c)=(a)-(b)
Balance at June 30, 2019 63,806,392$ 18, 859,962$ 44,946,430 $ Changes in the Year:
Service Cost 2,226,583 - 2, 226,583 Interest 2,109,724 - 2, 109,724 Expected Investment Income - 1, 190,307 (1, 190,307) Employee Contributions - 862,089 ( 862,089) Benefit Payments (2,236,759) (2, 236,759) - Assumption Changes 2,813,462 - 2, 813,462 Plan Experience (2,268,284) - (2, 268,284) Investment Experience - ( 659,968) 659,968 Net Changes 2,644,726 ( 844,331) 3, 489,057 Balance at June 30, 2020
(Measurement Date) 66,451,118$ 18, 015,631$ 48,435,487 $ Increase (Decrease)
75 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Other Post-Employment Benefits (OPEB) (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease
(1.95%)
Current
Discount Rate
(2.95%)
1% Increase
(3.95%)
Net OPEB Liability 59, 021,309$ 48,435,487$ 39,914,800$
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one pe rcentage point lower or one per centage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease Current Rate 1% Increase
Net OPEB Liability 39, 042,771$ 48,435,487$ 60,348,243$
OPEB Plan Fiduciary Net Position
PARS issues a publicly available financial report that may be obtained from the California Public Employees Retirement System Executive Office, 400 P Stre et, Sacramento, California 95814.
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to chang es in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.
Amounts are first recognized in O PEB expense for the year the gain or loss occurs.
The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on OPEB plan investments 5 years
All other amounts Expected average remaining service
lifetime (EARSL)
76 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 12: Other Post-Employment Benefits (OPEB) (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OP EB expense of $3,036,467.
As of fiscal year ended June 30, 2021, the City reported deferred outflows and inflows of resources related to OPEB from the following services:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB Contributions Subsequent to Measurement Date 1,075,428$ - $ Change in Assumptions 4,222,570 1, 502,596
Difference between Expected and Actual Experience - 1, 950,152 Net Difference between Projected and Actual Earnings on OPEB Plan Inv estments 350,895 -
5,648,893$ 3,452,748$
The $1,075,428 reported as deferr ed outflows of resources related to contributions subsequent to the June 30, 2020 measurement date as the valuation was for the same reporting period. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows:
Year Ending
June 30,
Deferred Outflows/
(Inflows) of Resources
2022 (109,535)$
2023 62,528
2024 377,608
2025 533,735
2026 169,981
Thereafter 86,400
Total 1,120,717$
Note 13: Concessionaire Agreement
The City of Rialto (City) owns certain revenue producing water and wastewater enterprise facilities (Utility Facilities) w hich the City leases to the Ri alto Utility Authority (Authority) for a term of 55 years ending in 2056. The Authority entered into an agreement dated March 27, 2012 with Rialto Water Services, LP (the Concessionai re) to provide services with respect to the Utility Facilities for a term of 30 years and th e City approved such selection as set forth in City Resolution 6095 and Authority Resolution 05-1 2. The Concessionaire was formed for the sole purpose for arranging for the Authority to engineer, design, construct, operate and maintain the Utility Facilities, provide billing and collection services, and to provide financing for the Utility Facilities subject to the terms of the agreement. 77 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Concessionaire Agreement (Continued)
Wastewater Facility
The City continues to own the Wastewater Facility and the Autho rity continues to hold the long-term facility lease under the agreement. The Concessionair e has been afforded long-term nonexclusive access and use of the facilities to perform the services required under the agreement. Section 5.1 of the agreement specifies the servi ces to be performed by the Concessionaire which include operating and performing maintenan ce of the wastewater facility, wastewater facility improvements, staffing the wastewater facility, monitoring of the influent and effluent, preparing and certifying discharge monitoring reports required under the WDR permit, purchasing supplies for the facilities, billing and collection of fees and other services to operate the facility. The City on behalf of the Aut hority is responsible for selection of location and facilit ies for the off-site disposal of the sew age sludge delivered by the Concessionaire to a staging are located at the wastewater facil ity site. The Authority is responsible for the selection of facilities for the treatment or disposal of solid waste.
The Concessionaire is to bill and collect all user fees related to the Wastewater Facility which include (a) sewer service fees , charges and assessments, (b) wastewater connection charges, wastewater user connection deposits, assessments and f e e s , ( c ) w a s t e w a t e r treatment charges, assessments and fees and (d) other revenue o r income derived from use and operation of the Wastewater F acility. All Wastewater Facili t y U s e r F e e s a r e t o b e deposited in a Lockbox Account in accordance with the trust agreement.
The Authority and the City are to establish all rates with resp ect to the Wastewater Facility User Fees in an amount sufficient to pay all compensation to th e Concessionaire including capital charges (see Note 9) to pay for concessionaire financing and all other costs to operate and maintain the Wastewater Facility.
The Concessionaire is entitled to be reimbursed from an account that is not subject to the trust agreement with respect to the design and construction of the Wastewater Facility Improvements, in an amount that is equal to the actual costs incurred.
The Concessionaire is also to be paid Wastewater Service Fee which is the sum of (a) Wastewater Fixed Component (b) Wastewater Routine R&R Component (c) Wastewater Chemical Component and (d) Wastewater Labor Component. The Wast ewater Fixed Component is to pay for the services of the Concessionaire to o perate the Wastewater Facility (excluding, however, the services and compensation tha t are otherwise expressly provided elsewhere in the agreement) and the costs for maintena nce consumables. The Wastewater Fixed Component is adj usted each contract year by a Wastewater Adjustment Escalator. The Wastewater Routine R&R Component is for services related to the routine repair and replacement of the Wastewater Facility which is also adjusted each contract year by a Wastewater Adjustment Escalator.
78 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Concessionaire Agreement (Continued)
The Wastewater Chemical Componen t is to reimburse the Concessio naire for chemicals used in the operation of the Wast ewater Facility. Following eac h contract year, the chemical component is subject to a reconciliation and adjustment process to reimburse the Concessionaire to pay only for actual costs. The Wastewater Lab or Component is to pay the Concessionaire for labor costs. After the first year, this amount is adjusted by the Wastewater Labor Adjustment Escalator.
The amount paid in fiscal year 2020-21 for the Wastewater Fixed Fee, which is included in the cost of sales and services expense in the Wastewater Fund, totaled $6,815,714 detailed as follows:
Actual
Wastewater Fixed Component 2,351,295$
Wastewater Routine R&R Component 241,393
Wastewater Chemical Component 729,932
Wastewater Labor Component 3,493,094
Total Wastewater Fixed Fee 6,815,714$
The Wastewater Fixed Fee is required annually through November 2042 and will require the above payments annually through November 2018.
The Wastewater Fixed Fee from December 2018 through November 20 42 will be based on the above amounts, but may be adjusted for unexpected utility activity and inflation.
The Concessionaire is entitled to a Wastewater Reimbursable Payment in an amount equal to the cost and expense incurred by the Concessionaire plus a m ark up to operate the wastewater plant. The Wastewater Reimbursable Payment consists of (a) Wastewater Miscellaneous Expense Reimbursement (b) Wastewater Operating R&R Reimbursement and (c) Wastewater Excess Routine R& R Reimbursement. Section 8.3 of the concession agreement provides additional information of the various compon ents of these reimbursable amounts.
The Authority is required to pay a capital charge of $12,682,00 0 annually for a period of 30 years to pay for the financing provided by the Concessionair e (see Note 9). The capital charges for the period are set for a specific amount through Ju ne 30, 2043. The capital charge is not adjusted by the Wastewater Adjustment Escalator. However, the capital charges related to the Wastewater Facility may be adjusted in accordance with Section 2.5 or increased as provided in Section 8.8 of the concession agreement.
The Concessionaire is also to be compensated for a specific amo unt for a specific period for providing services related to the construction of the Wastewater Facility Improvements. 79 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Concessionaire Agreement (Continued)
Water Facility
The City continues to own the Utility Facility and the Authority continues to hold the long-term facility lease under the agreement. The Concessionaire has been afforded long-term nonexclusive access and use of the facility to perform the serv ices required under the agreement. Section 11.1 of the agreement specifies the services to be performed by the Concessionaire which include operating and performing maintenan ce of the water facility, water facility improvements, staffing the water facility, monit oring of the quality of the water, purchasing supplies for the facility, billing and collection fees and other services to operate the facility.
The Concessionaire is to bill and collect all user fees related to the Water Facility which include: (a) water service fees, charges and assessments, (b) w ater connection charges, water user connection deposits, and assessments and fees, (c) w ater delivery charges, assessments and fees and (d) other revenue or income derived fr om use and operation of the Water Facility. All Water Fa cility user fees are to be depo sited in a Lockbox Account in accordance with the trust agreement.
The Authority and the City are to establish all rates with resp ect to the Water Facility User Fees in an amount sufficient to pay all compensation to the Con cessionaire including capital charges to pay for Concessionaire financing and all other costs to operate and maintain the Water Facility.
The Concessionaire is entitled to be reimbursed from an account that is not subject to the trust agreement with respect to the design and construction of the Water Facility Improvements, in an amount that is equal to the actual costs incurred.
The Concessionaire is also to be paid a Water Service Fee which is the sum of (a) Water Fixed Component (b) Water Routine R&R Component (c) W ater Chemical Component and (d) Water Labor Component. The Water Fixed Compon ent is to pay for the services of the Concessionaire to operate the Water facility (excluding, however, the services and compensation that are otherwise expressly provided elsewhere in the agreement) and the costs for maintenance consumables. The Water Fixed Componen t is adjusted each contract year by a Water Adjus tment Escalator. The Water Rout ine R&R Component is for services related to the routine repair and replacement of the W ater Facility which is also adjusted each contract year by a Wastewater Adjustment Escalato r. The Water Chemical Component is to reimburse the Concessionaire for chemicals used in the operation of the Water Facility. Following each co ntract year, the chemical comp onent is subject to a reconciliation and adjustment process to reimburse the Concessi onaire to pay only for actual costs. The Water Labor Component is to pay the Concessionaire f or labor costs. After the first year, this amount is adjusted by the Water Labor Adjustment Escalator.
The amount paid in fiscal year 2020-21 for the Water Fixed Fee, which is included in the cost of sales and services expense in the Water Fund, totaled $5,960,520 detailed as follows:
Actual
Water Fixed Component 2,440,105 $
Water Routine R&R Component 241,392
Water Chemical Component 63,094
Water Labor Component 3,215,929
Total Wastewater Fixed Fee 5,960,520 $
80 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 13: Concessionaire Agreement (Continued)
The Water Fixed Fee is required annually through November 2042 and will require the above payments annually through November 2018.
The Water Fixed Fee from December 2018 through November 2042 will be based on the above amounts, but may be adjusted for unexpected utility activity and inflation.
The Concessionaire is entitled to a Water Reimbursable Payment in an amount equal to the cost and expenses incurred by the Concessionaire plus a mark up to operate the Water Facility. The Water Reimbursable Payment consists of (a) Water Miscellaneous Expense Reimbursement (b) Water Operati ng R&R Reimbursement and (c) Wat er Excess Routine R&R Reimbursement. Section 4.3 of the concession agreement provides additional information of the various components of these reimbursable amounts.
The Authority is required to pay a capital charge of $2,900,000 annually for a period of 30 years to pay for the financing provided by the Concessionair e. The capital charges for the period are set for a specific amount through June 30, 2042. The capital charge is not adjusted by the Water Adjustment Escalator. However, the capita l charges related to the Water Facility may be adjusted in accordance with Section 2.5 o r increased as provided in Section 14.8 of the concession agreement.
The Concessionaire is also to be compensated for a specific amo unt for a specific period for providing services related to the construction of the Water Facility Improvements.
Note 14: Other Required Individual Fund Disclosures
Accumulated Fund Deficits and Net Position
The following funds reported deficits in their respective fund balance and net position at June 30, 2021:
Fund Deficit/
Net Position
Other Governmental Special Revenue Funds:
Transportation Enhancement Activities (11,400) $
Police Grants (69,057)
Community Services Grants (290,697)
CDBG Fund (833,246)
Neighborhood Stabilization Program (20,752)
Internal Service Funds:
Workers' Compensation (7,361,189)
Fleet Management (1,197,653)
Management Information System (323,396)
General Liability (1,897,431)
Building Maintenance (2,565,869)
81 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 15: Related Party Agreements
On May 1, 2001, the Utility Authority entered into an agreement with the City to lease the Waste and Wastewater Utilities. P ayments are to be paid by the Utility Authority to the City from the Water and Wastewater Utility Fund funded by surplus ut ility revenues. All of the surplus revenues have been irrevocably pledged for these purpos es. The annual lease payments are reflected as expenses and income among the respective funds.
Note 16: Other Information
Litigation
At June 30, 2020, the City was a defendant in a number of lawsu its arising in the ordinary course of operations, which allege liability on the part of the City in connection with workers’ compensation and ge neral liability matters . Management believes that potential losses related to these lawsuits will not materially affect the financial position of the City.
Contingent Sale
On April 1, 2008, the City entered into an Escrow Agreement wit h the Federal Aviation Administration (FAA), the San Bernardino International Airport Authority (SBIAA), and First American Title Insurance Company. On September 25, 2012, the Ci ty of Rialto approved the Amended and Restated Contract of Sale with Lewis-Hillwood Rialto LLC (LHR).
On July 23, 2013 the City and LHR entered into the Protocol Agr eement referring Contingent Liability. On February 4, 2014 t he City entered into an Amended and Restated Agreement Regarding Transfer of Certain Aviation Assets with the San Bern ardino International Airport Authority. On December 13, 2016, the City Council adopted Ordin ance 1584 approving a Development Agreement with Lewis-Hillwood Rialto LLC, adopted R esolution No. 7050 approving the First Implementation Agreement referring the Seco nd Amended and Restated Contract of Sale for Areas B, C and D, and adopted other relate d resolutions. These arrangements grant LHR an option to purchase the Airport Proper ty subject to satisfaction of conditions, with the land sales proceeds distributed between the City, SBIAA, and LHR.
The City conveyed the Airport Property to the former Redevelopment Agency in June 2007.
Upon dissolution of redevelopment by the state in 2012, the Cit y rescinded the Purchase and Sale Agreement and demanded title back from the Agency. A quitc laim deed was recorded on September 12, 2012. The Department of Finance originally con tested the transfer, but by letter dated October 18, 2013 concurred that the Airport Proper ty could be retained by the City as a governmental use in accordance with Health and Safety Code Section 34181(a).
The Airport has received substantial support from the FAA in th e form of grants and awards for land acquisition, runways and other capital improvements. C onsequently, upon sale, the FAA and its designee, the San Bernardino International Airport Authority (SBIAA), will be entitled to a share of the proceeds, a closure obligation. The agreement entered into on February 4, 2014 between the City and SBIAA provides for a tota l release payment of up to $34.8 million.
In June 2007, the City submitted its closure plan to the FAA an d the state government officials notifying them of the pending closure and describing the orderly cessation of aviation operations. In 2014, the City relocated the aviation tenants an d closed the Airport to fixed wing aviation activities on Sept ember 18, 2014. On April 1, 2015, the City filed Form 7480-1 with the FAA and closed the Airport to all general aviation activities. 82 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 16: Other Information (Continued)
Finally, the City negotiated an early release of profit participation. In March 2017, the City and SBIAA each received a payment of $3,000,000 from LHR as a porti on of the Contingent Purchase Price.
Upon closure, the City will be required to repay the FAA for ce rtain grants received that are not considered fully amortized. At June 30, 2020, all FAA grants have been fully amortized.
Note 17: Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City retains the risk of loss for general liability and workers’ compensation claims of up to $500,000 and $400,000, respectivel y, per person per occurrence. The City has established the General Liability and Worker s’ Compensation Internal Servic e Funds to account for and finance uninsured risks of loss related to general liabilities and workers’ compensation claims, respectively. Liabilities are accrued when incurred, whether or not reported.
The City is also a member of the PRISM for general liability, a public entity risk pool consisting of a consortium of cities in California. PRISM was established to pool resources, share risks, purchase excess ins urance and share costs for pro fessional risk management and claims administration. General Liability claims exceeding t he self-insured retention (SIR) of $500,000 are covered by PRISM up to a maximum of $25,000,000 on an annual aggregate basis. Claims in excess of the $25,000,000 annual limit are cov ered by PRISM up to $35,000,000 on an annual aggregate basis. The City is not a member of a pool for workers’ compensation. Workers Compensation claims exceeding City’s $400,000 SIR are covered by PRISM up to statutory limits.
The City continues to carry commercial insurance for all other risks of loss, including employee health, property, fire, water, boiler and machinery in surance. Settled claims resulting from these risks have not exceeded commercial insuran ce covered in any of the past three fiscal years. In addition, there has not been a significant reduction in insurance coverage during the year.
All Funds of the City participat e in the risk management progra m and make payments to the respective Internal Service Fund based on estimates of the amou nts needed to pay prior and current year claims and to establish a reserve for catastrophic losses. Claims liabilities are reported when it is probable that a loss has occurred and the a mount can be reasonably estimated. Claims liabilities are calculated considering the effects of inflation and recent claim settlement awards, including the frequency and amount of payouts.
Changes in the Workers’ Compensation and the General Liability Internal Service Funds’ claims liability amounts in fiscal years 2021 and 2020 were as follows:
2021 2020 2021 2020
Claims Payable, Beginning of Year 12,885,940$ 12,830,918$ 2,946,823$ 2,947,036$ Current Year Claims and Changes
in Estimates 8,475,481 2,804,042 4,142,323 871,911 Claim Payments (3,801,662) (2,749,020) (2,010,749) (872,124) Claims Payable, End of Year 17,559,759$ 12,885,940$ 5,078,397$ 2,946,823$ Workers' Compensation Internal
Service Fund
General Liability
Internal Service Fund
83 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures
On June 29, 2011, Assembly Bills x1 26 (the Dissolution Act) and x1 27 were enacted as part of the fiscal year 2011-12 State budget package.
On June 27, 2012, as part of the fiscal year 2012-13 State budget package, the Legislature passed and the Governor signed AB 1484, which made technical an d substantive amendments to the Dissolution Act based on experience to date a t the State and local level in implementing the Dissolution Act.
In September 2015, the Legislature passed and the Governor signed SB 107, which made additional changes to the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each Dissolved RDA) was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, have initiated the process under the Dissolution Act to unwind the affairs of the Dissolved RDA. A Successor Age ncy was created for each Dissolved RDA which is the sponsoring community of the Dissolve d RDA unless it elected not to service as the Successor Agency. On September 27, 2011, the City elected to serve as the Successor Agency of the Rialto Redevelopment Agency.
The Dissolution Act also created oversight boards which monitor the activities of the Successor Agencies. The roles of the Successor Agencies and ove rsight boards is to administer the wind down of each Dissolved RDA which includes m aking payments due on enforceable obligations, disposing of the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the County Audit or-Controller for distribution to the affected taxing entities.
The Dissolution Act allowed the sponsoring community that forme d the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Dissolved RDA. If the sponsoring community does not elect to be come the Successor Housing Agency and assume the Dissolved RDA’s housing functions, such housing functions and all related housing assets will be transferred to the local housing authority in the jurisdiction. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dissolution Act. The Housing Authority elected on January 24, 2012 to serve as the Housing Successor Agency.
After the date of dissolution, the housing assets, obligations and activities of the Dissolved RDA have been transferred and are reported in the Housing Authority Special Revenue Fund in the financial statements of the City. All other assets, obli gations, and activities of the Dissolved RDA have been transferred and are reported in a fiduc iary fund (private-purpose trust fund) in the financial statements of the City.
In the current and future fiscal years, the Succ essor Agency wi ll only be allocated revenue from the County of San Bernardino in the amount that is necessa ry to pay the estimated annual installment payments on enforceable obligations of the D issolved RDA until all enforceable obligations of the Dissolved RDA have been paid in full and all assets have liquidated.
The assets and liabilities of t he former Redevelopment Agency ( Agency), except for assets related to the low and moderate income housing fund, were trans ferred to the Successor Agency of the City of Rialto Redevelopment Agency on February 1 , 2012 as a result of the dissolution of the former Redevelopment Agency. The City is act ing in a fiduciary capacity for the assets and liabilities. Disclosure related to assets and liabilities are as follows:
84 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures (Continued)
Notes Receivable
Effective June 1, 2005, the Agency and the Rialto Unified School District (the District) entered into a Cooperative Agreement whereby the Agency made a portion of the proceeds of the 2005 Series A Tax Allocation Bonds available to the District to assist the District in financing a portion of the cost of the Rialto Unified School District Fac ilities. These proceeds totaled $2,717,131. Under the Cooperative Agreement, the District will f o r e g o t a x i n c r e m e n t revenues that otherwise would have been transferred to it by the Agency pursuant to two pass-through agreements by and be tween the District and the Agency, and pursuant to the statutory requirements for payments to affected taxing agencies.
The amount of pass-through payments that was retained by the Ag ency were calculated to be sufficient to cover the porti on of debt service on the 2005 Series A Tax Allocation Bonds allocated to the $2,717,131 transferred to the District, plus a coverage factor. Upon the dissolution of the former redevelopment agency at February 1, 2002, the outstanding balance of the receivables was transfer red to the Successor Agency Priv ate-Purpose Trust Fund and the amount of pass-through amounts to be retained are administe red by the County of San Bernardino. As of June 30, 2021, $2,166,941 of th is receivable remains outstanding, bearing interest at variable rates between 3.6% and 4.9%.
Effective September 1, 2018, the Agency and the Rialto Unified School District (the District) entered into a Cooperative Agreement whereby the Agency made a portion of the proceeds of the 2018 Series A Tax Allocation Bonds available to the Dist rict to assist the District in financing a portion of the cost of the Rialto Unified School Di strict Facilities. These proceeds totaled $2,281,402. Under the Cooperative Agreement, the Distri ct will forego tax increment revenues that otherwise would have been transferred to it by the Agency pursuant to two pass-through agreements by and be tween the District and the Agency, and pursuant to the statutory requirements for payments to affect taxing agencies.
The amount of pass-through payments that was retained by the Ag ency were calculated to be sufficient to cover the porti on of debt service on the 2018 Series A Tax Allocation Bonds allocable to the $2,281,402 transferred to the District, plus a coverage factor. As of June 30, 2021, $2,123,594 of this receivable remains outstanding, bearing interest at 5%.
Effective July 1, 1996, the Agency sold the Ramrod Mobile Home Park (the Park) to Ramrod Senior Housing, Inc., a California Nonprofit Benefit Corporation, for a 36-year note receivable in the amount $3,318,875, bearing interest at approximately 6.1 9%. Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of the receivables was transferred to the Successor Agency Private-Purpose Trust Fund. The balance outstanding on the note receivable is $1,838,462 at June 30, 2021.
The Agency administered a façade improvement loan program, whic h provided money to certain business owners at 0% interest to enhance the facade of their building. The Agency entered into loan agreements with the business owners that requ ired the loans to be repaid only if the title of the property changes. Therefore, the Agency had recorded the outstanding loans as notes receivable and deferred revenue in the fund fina ncial statements. Upon the dissolution of the former redevelopment agency at February 1, 2012, the outstanding balance of t
he receivables was transferred to the Successor Agency Private-Purpose Trust Fund. The amount of façade improvement loans at June 30, 2021 is $273,134. 85 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures (Continued)
Property Held for Resale
Property held for resale was generally acquired in the normal c ourse of the Agency activity and is recorded at the lower of acquisition cost or estimated n et realizable value (i.e., estimated selling price less reasonably predicted costs of disposal). Upon the dissolution of the former redevelopment agency at February 1, 2012, the balance of the property held for resale was transferred to the Successor Agency Private-Purpose Trust Fund. As of June 30, 2021, the Successor Agency’s property held for resale is valued as follows:
Cost 25,570,079$
Adjustment to Basis (5,880,224)
Net Book Value 19,689,855$
Capital Assets
A summary of changes in the Successor Agency’s capital assets a t June 30, 2021 is as follows:
Balance
June 30, 2020 Additions Deletions
Balance
June 30, 2021
Capital assets not being depreciated:
Land 290,347 $ - $ - $ 290,347$ Total capital assets not being depreciated 290,347 - - 290,347 Capital assets being depreciated:
Buildings and Other Structures 97,647 - - 97,647 Improvements Other than Buildings 285,647 - - 285,647 Vehicles 25,646 - - 25,646 Total capital assets, being depreciated 408,940 - - 408,940 Less accumulated depreciation for:
Buildings and Other Structures (33,254) (1,956) - (35,210) Improvements Other than Buildings (271,559) (5,830) - (277,389) Vehicles (25,646) - - (25,646) Total accumulated depreciation (330,459) (7,786) - (338,245) Total capital assets being depreciated, net 78,481 (7,786) - 70,695 Capital Assests, Net 368,828 $ (7,786) $ - $ 361,042$
Long-Term Obligations
The following is a summary of the Successor Agency’s long-term obligations for the year ended June 30, 2021:
Beginning at
July 1, 2020 Additions Deletions
Balance
June 30, 2021
Due Within
One Year
Due in More
Than One Year
Tax Allocation Bonds $119,275,000 $ - $ (4,075,000) $115,200,000 $ 4,295,000 $110,905,000 Premiums 6,194,357 - (626,845) 5, 567,512 - 5,567, 512 Discounts (164,023) - 26,367 (137,656) - (137,656) Total Tax
Allocation Bonds $125,305,334 $ - $ (4,675, 478) $120,629,856 $ 4,295,000 $116,334,856 86 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures (Continued)
$29,600,000 Rialto Redevelopment Agency Tax Allocation Housing Set-Aside Bonds Merged Project Area 2008 Series B, maturing in serial and term fashion through September 1, 2037. The term portion of the bond is subject to m andatory sinking fund payments beginning on September 1 in each year and commencing S eptember 1, 2019.
Annual principal payments on the bonds range from $275,000 to $ 2,920,000. Interest is paid semi-annually on March 1 and September 1 of each year at the rate of 7.50%. The reported amount outstanding includes the unamortized original is s u e p r e m i u m o f $245,182 and is payable from redevelopment property tax trust f und revenues received by Successor Agency.
$ 2 3 , 555,000
$21,965,000 Rialto Redevelopment Agency Tax Allocation Bonds Me rged Project Area 2008 Series C, maturing in serial and term fashion through Sept ember 1, 2037. The term portion of the bond is subject to mandatory sinking fund paymen ts beginning on September 1 in each year and commencing September 1, 2019. Annu al principal payments on the bonds range from $250,000 to $1,725,000. Intere st is paid semi- annually on March 1 and September 1 of each year at the rate of 7.50%. The reported amount outstanding includes the unamortized original issue premium of $207,512 and is payable from redevelopment property tax trust fund revenues rec eived by Successor Agency.
1 7 , 4 7 0 , 0 0 0
$16,515,000 Successor Agency Tax Allocation Revenue Refunding Bonds 2014 Series A, maturing in serial fashion through September 1, 2027. The 2014 Series A Bonds were used to defease the outstanding T ax Allocation Revenue Refunding Bonds 2003 Series A. The principal amounts of the 2014 Series A Refunding Bonds of $16,515,000 plus the premium of $2,465,434 plus the 2003A refunded bonds available f unds of $2,247,219 were used to refund the bonds in the amount of $20,805,499 and pay for the cost of issuance totaling $422,154. Annual principal payments on the bonds range from $985,000 to $1,675,000. Interest is paid semi-annually on March 1 and Se ptember 1 of each year at the rate of 3% to 5%. The reported amount outstanding includes the unamortized original issue pre mium of $737,327 and is payable f rom redevelopment property tax trust fund revenues received by Successor Agency.
1 0 , 160,000
On July 30, 2015, the Successor Agency issued $20,640,000 in Ta x Allocation Revenue Refunding Bonds, 2015 Series A for the purpose of defeasing $23,885,000 of outstanding Tax Allocation Bonds 2005 Series A. The principal amount of the 2015 Series A refunding bonds of $20,640,000 plus the original premium of $1,113,852 pl us the 2005 Series A refunded bonds available funds of $3,178,113 will be used to re fund the bonds in the amount of $23,885,000, pay for the interest payment due as of S eptember 1, 2015 of $545,465, and pay for the cost of issuance totaling $501,500. T he advance refunding fully repaid the 2005 Series A bonds. Annual principal payments on the bonds range from $2,065,000 to $3,220,000. Interest is paid semi- annually on Ma rch 1 and September 1 of each year at the rate of 4% to 5%. The reported amount outst anding includes the unamortized original issue premium of $749,782 and is payable f rom redevelopment property tax trust fund revenues received by the Successor Agency.
2 0 , 6 4 0 , 0 0 0
87 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures (Continued)
On July 30, 2015, the Successor Agency issued $15,290,000 in Ta x Allocation Revenue Refunding Bonds, 2015 Series B for the purpose of defeasing $16,635,000 of outstanding Tax Allocation Bonds 2005 Series C. The principal a mount of the 2015 Series B refunding bonds of $15,290,000 less the original discount of $199,176 plus the 2005 Series C refunded bonds available funds of $2,250,882 will be used to refund the bonds in the amount of $16,635, 000, pay for the interest payment due as of September 1, 2015 of $420,680, and pay for the cost of issuance totaling $286,026. The advance refunding fully repaid the 2005 Series C bonds. Annual principal payments on the bonds range from $755,000 to $1,420,000. Interest is paid semi- annually on March 1 and September 1 of each year at the rate of 1.484% to 4%. The r eported amount outstanding includes the unamortized original issue discount of $84,415 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency.
$ 1 0 , 545,000
On July 30, 2015, the Successor Agency issued $8,205,000 in Tax Allocation Revenue Refunding Bonds, 2015 Series C for the purpose of defeasing $9, 045,000 of outstanding Tax Allocation Bonds 2005 Series B. The principal amount of the 2015 Series C refunding bonds of $8,205,000 less the original discount of $100,864 plus the 2005 Series B refunded bonds available funds of $1,334,703 will be u sed to refund the bonds in the amount of $9,045,000, pay for the interest payment due a s of September 1, 2015 of $227,774, and pay for the cost of issuance totaling $166,065 . The advance refunding fully repaid the 2005 Series B bonds. Annual principal payments on the bonds range from $340,000 to $670,000. Interest is paid semi- annually on March 1 and September 1 of each year at the rate of 1.484% to 4.724%. The reported amount outstanding includes the unamortized original issue discount of $53,241 and is payab le from redevelopment property tax trust fund revenues received by the Successor Agency.
6 , 3 2 0 , 0 0 0
On January 24, 2018, the Success or Agency issued $28,480,000 in T a x A l l o c a t i o n Revenue Refunding Bonds, 2018 Series A for the purpose of defeasing $35,810,000 of outstanding Tax Allocation Bonds 2008 Series A. The principal amount of the 2018 Series A refunding bonds of $28,480,000 less the original premi um of $4,479,119 plus the 2008 Series A refunded bonds available funds of $4,235,283 will be used to refund the bonds in the amount of $38,810, 000, pay for the interest payment due as of September 1, 2018 of $1,076,454, and pay for the cost of issuan ce totaling $451,661.
The advance refunding fully repaid the 2008 Series A bonds. Ann ual principal payments on the bonds range from $420,000 to $5,055,000. Interest is pai d semi-annually on March 1 and September 1 of each year at the rate of 1.570% to 3 .200%. The reported amount outstanding includes the unamortized original issue prem ium of $3,627,709 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency.
26,510,000
T o t a l T a x A l l o c a t i o n B o n d s $ 115,200,000 88 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 18: Successor Agency Disclosures (Continued)
Future Debt Service Payments
The annual requirements to amortize outstanding long-term debt other compensated absences are as follows:
Year Ending
June 30,
Tax Allocation
Bonds Interest Total
2022 4,295,000$ 6,473,905$ 10,768,905$
2023 4,510,000 6,243,068 10,753,068
2024 4,750,000 5,995,597 10,745,597
2025 5,010,000 5,731,386 10,741,386
2026 5,285,000 5,456,455 10,741,455
2027-2031 31,060,000 22,390,827 53,450,827
2032-2036 41,520,000 12,021,575 53,541,575
2037-2038 18,770,000 1,180,250 19,950,250
Total 115,200,000$ 65,493,063$ 180,693,063$
Other Commitment
The Agency had entered into two Cooperative Agreements with the Rialto Unified School District (RUSD) under which the Agency advanced funds from the 2005 and 2008 tax allocation bond issues to pay for school improvements. The RUSD pledged its pass through payment entitlements under various agreements with the Agency t o repay its share of the debt service on the tax allocation bonds. In accordance with th e terms of the 2005 Cooperative Agreement, the Agency retained 120% of the upcoming bond year debt service (September 1, 2008 to August 31, 2009) as a debt servic e reserve and released the balance to the RUSD. Under the terms of the 2008 Cooperative Ag reements, which took effect on March 1, 2008, the Agency will retain a lesser amount equaling the District’s share of the September 1, 2008 and March 1, 2009 debt service payment on the 2005 and 2008 tax allocation bonds. In 2015, the Successor Agency refinanced the 2005 bonds reducing interest rate and payments. The refinance bonds are known as th e 2015 bonds. At June 30, 2021, the amount committed under these agreements tota led $240,290. The amount includes the 2008 and 2015 bonds. On February 1, 2012, the Successor Agency assumed all responsibilities under the agreements. Future payments, if any, will be requested through the semi-annual Redevelopment Property Tax Trust Fund ( FPTTF) distribution process.
Note 19: Tax Abatement Agreements
The City of Rialto negotiates tax abatement agreements on an in dividual basis. The City of Rialto has tax abatement agreements with two entities as of June 30, 2021.
Type of Tax
Abated
Percentage of Taxes
Abated During the
Fiscal Year
Amount of Taxes
Abated During the
Fiscal Year
Distribution Center- Construct Center and
Establish Point of Sale in Rialto (1) Sales Tax 50% 3,304,858 $ (1) The City entered into a twenty-year sales tax reimbursement agreement. There is no up to amount and the Distribution Center has the sole option to extend the agreement 89 CITY OF RIALTO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 20: Contingency
On March 19, 2020, the Governor of the State of California issu ed a Stay at Home Order for all California residences and nonessential services until furth er notice. This order was in response to the COVID-19 outbreak which the World Health Organi zation has characterized as pandemic. The impact of COVID -19 on the City’s operational and financial performance is uncertain at this time.
Note 21: Prior Period Adjustment
The City recorded a prior period adjustments as follows:
Governmental Funds
General Fund – The general fund required restatements totaling ($6,544,353) Restatement to move reserved funds from the General to the fire development fund of ($5,000,000), related to the fire station which was completed in prior year. Correction of cash receipts that were recorded in revenue in f iscal year 19-20 rather than a reduction of receivables of ($1,927,988)
Restatement due to closure of Recreation and Community service and local transportation development fund - $383,635
Nonmajor governmental funds: The nonmajor funds required restatements totaling $5,047,882.
Restatement to move reserved funds from the General to the fire development fund of $5,000,000, related to the fire station which was completed in prior year. Restatement of $45,872 to correct fund balance for grant revenue that was double recorded.
Restatement of $2,010 to close out Local transportation develo pment fund, to general fund.
Proprietary Funds
Beginning Net Position of the Other Enterprise funds was restat ed by $3,782,876 due to the closure of the Recreation and Community Service fund, which was improperly reported as a proprietary fund rather than governmental fund.
Custodial Funds
Beginning net position of fiduc iary activities on the Statement of Changes in Fiduciary Net Position has been restated by $3,410,383 to implement GASB 84 Fiduciary Activities.
In Addition to the General Fund and Nonmajor Governmental Funds restatements of ($6,544,353) and $5,047,822, respectively, Government Wide activities were also restated by ($2,656,874) and ($1,345,624) to allocate the Net Pension and N et OPEB Liabilities, which were reflected in the Recreation and Community Service fund.
90
5(48,5('6833/(0(17$5<,1)250$7,21
91 CITY OF RIALTO, CALIFORNIA
MISCELLANEOUS PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020
Measurement Date 6/30/2020 6/30/2019
Total Pension Liability:
Service cost 2,051,976$ 1,791,482$
Interest on total pension liability 9,773,601 9,347,753 Changes in assumptions - -
Difference between expected and actual experience 1,702,384 623,582 Benefit payments, including refunds of employee contributions (7,315,654) (6,716,222) Net change in total pension liability 6,212,307 5,046,595 Total pension liability - beginning 137,623,191 132,576,596 Total Pension Liability - Ending (A) 143,835,498 137,623,191 Plan Fiduciary Net Position:
Plan to Plan Resource Management - - Contributions - employer 4,154,462 3,600,870
Contributions - employee 1,030,303 887,762
Net investment income 4,856,489 6,111,526
Benefit payments, including refunds of employee contributions (7,315,654) (6,716,222) Administrative expense (137,911) (67,087)
Other miscellaneous expense - 218 Net change in fiduciary net position 2,587,689 3,817,067 Plan fiduciary net position - beginning 97,825,959 94,008,892 Plan Fiduciary Net Position - Ending (B) 100,413,648 97,825,959 Net Pension Liability - Ending (a) - (b) 43,421,850$ 39,797,232$ Plan fiduciary net position as a percentage of the total pension liability 69.8% 71.1% Covered payroll 10,122,181$ 9,074,473$
429.0% 438.6%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
(1) Fiscal Year 2015 was the first year of implementation; therefore, only seven years are shown.
Plan net pension liability as a percentage of covered payroll Changes of Assumptions: None in 2020 or 2021. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to
7.65 percent (without a reduction for pension plan administrative expense.) In 2015, amounts reported were based on the
7.5 percent discount rate.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies for volunt ary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
92 2019 2018 2017 2016 2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
2,003,976$ 1,962,464$ 1,621,654$ 1,545,683$ 1,736,327$ 8,993,449 8,739,244 8,545,451 8,242,200 8,043,800 (799,662) 7,392,961 - (2,069,469) - (254,150) (1,503,407) (403,816) (1,901,232) - (6,402,730) (5,823,917) (5,586,314) (5,329,662) (5,117,502) 3,540,883 10,767,345 4,176,975 487,520 4,662,625 129,035,713 118,268,368 114,091,393 113,603,873 108,941,248 132,576,596 129,035,713 118,268,368 114,091,393 113,603,873 (218) - 28,412 1,212 - 3,194,249 3,399,175 2,770,673 2,257,385 2,027,883 1,013,826 924,474 864,570 832,233 730,622 7,500,484 8,989,575 369,043 1,734,077 12,528,234 (6,402,730) (5,823,917) (5,586,314) (5,329,662) (5,117,502) (138,851) (120,679) - - - (263,681) - - - - 4,903,079 7,368,628 (1,553,616) (504,755) 10,169,237 89,105,813 81,737,185 83,290,801 83,795,556 73,626,319 94,008,892 89,105,813 81,737,185 83,290,801 83,795,556 38,567,704$ 39,929,900 $ 36,531,183 $ 30,800,592 $ 29,808,317 $
70.9% 69.1% 69.1% 73.0% 73.8%
10,400,541$ 10,035,098$ 9,138,652$ 8,408,677$ 9,062,246$ 370.8% 397.9% 399.7% 366.3% 328.9%
93 CITY OF RIALTO, CALIFORNIA
SAFETY PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020
Measurement Date 6/30/2020 6/30/2019
Total Pension Liability:
Service cost 5,368,782$ 4,820,128$
Interest on total pension liability 20,986,672 19,950,664 Changes in assumptions - -
Difference between expected and actual experience 2,381,715 (1,417,660) Benefit payments, including refunds of employee contributions (13,340,458) (12,534,003) Net change in total pension liability 15,396,711 10,819,129 Total pension liability - beginning 295,123,998 284,304,869 Total Pension Liability - Ending (A) 310,520,709 295,123,998 Plan Fiduciary Net Position:
Plan to Plan Resource Management - - Contributions - employer 8,902,873 7,807,973
Contributions - employee 3,347,779 2,872,745
Net investment income 10,639,176 13,315,731
Benefit payments, including refunds of employee contributions (13,340,458) (12,534,003) Administrative expense (301,365) (144,475)
Other miscellaneous expense - 470 Net change in fiduciary net position 9,248,005 11,318,441 Plan fiduciary net position - beginning 213,771,215 202,452,774 Plan Fiduciary Net Position - Ending (B) 223,019,220 213,771,215 Plan Net Pension Liability - Ending (A) - (B) 87,501,489$ 81,352,783$ Plan fiduciary net position as a percentage of the total pension liability 71.8% 72.4% Covered payroll 15,446,426$ 14,498,370$
566.5% 561.1%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
(1) Fiscal Year 2015 was the first year of implementation; therefore, only seven years are shown.
Plan net pension liability as a percentage of covered payroll Changes of Assumptions: None in 2021 or 2020. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2015, amounts reported were based on the 7.5 percent discount rate.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies for volunt ary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
94 2019 2018 2017 2016 2015
6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014
5,206,707$ 5,334,644$ 4,790,840$ 4,576,388$ 4,515,927$ 19,196,158 18,863,603 18,240,547 17,478,960 16,797,046 (8,400,860) 17,388,091 - (4,760,201) - 450,278 (4,519,766) (2,000,635) (2,396,762) - (11,944,712) (11,120,451) (10,446,639) (9,966,418) (9,361,045) 4,507,571 25,946,121 10,584,113 4,931,967 11,951,928 279,797,298 253,851,177 243,267,064 238,335,097 226,383,169 284,304,869 279,797,298 253,851,177 243,267,064 238,335,097 (470) - (28,412) (1,048) - 6,989,814 6,576,775 6,139,735 6,116,568 6,284,137 2,893,086 3,084,249 2,994,151 2,679,822 1,424,093 16,082,104 19,120,363 752,086 3,590,510 25,296,028 (11,944,712) (11,120,451) (10,446,639) (9,966,418) (9,361,045) (294,963) (253,771) - - - (560,140) - - - - 13,164,719 17,407,165 (589,079) 2,419,434 23,643,213 189,288,055 171,880,890 172,469,969 170,050,535 146,407,322 202,452,774 189,288,055 171,880,890 172,469,969 170,050,535 81,852,095$ 90,509,243 $ 81,970,287 $ 70,797,095 $ 68,284,562 $
71.2% 67.7% 67.7% 70.9% 71.3%
15,871,203$ 15,522,578$ 15,545,592$ 15,074,241$ 14,083,225$ 515.7% 583.1% 527.3% 469.7% 484.9%
95 CITY OF RIALTO, CALIFORNIA
MISCELLANEOUS AND SAFETY PLANS
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020
Miscellaneous Plan:
Actuarially Determined Contribution 5,583,492$ 5,064,812$ Contribution in Relation to the Actuarially Determined Contribution (5,583,492) (5,064,812) Contribution Deficiency (Excess) -$ -$ Covered Payroll 8,852,154$ 10,122,181$
Contributions as a Percentage of Covered Payroll 63.1% 50.0% Safety Plan:
Actuarially Determined Contribution 13,413,121$ 12,248,971$ Contribution in Relation to the Actuarially Determined Contribu tion (13,413,121) (12,248,971) Contribution Deficiency (Excess) -$ - $ Covered Payroll 17,121,438$ 15,446,426$
Contributions as a Percentage of Covered Payroll 78.3% 79.3% Notes to Schedule of Plan Contributions:
For previous years' information, refer to past Comprehensive Annual Financial Reports. (1) Historical information is requiredonly for measurement for which GASB 68is applicable. Data was available for Fiscal Year 2014 going forward, therefore only seven years are shown.
Mortality: The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90% of Scale MP 2016 published by the Society of Actuaries.
Retirement Age: The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
Actuarial Cost Method: Entry Age Normal
Amortization Method/Period: For details, see June 30, 2018 Funding Valuation Report Asset Valuation Method: Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report Investment Rate of Return: 7.25% (net of administrative expenses) Payroll Growth: 2.75%
Salary Increases: Varies by Entry Age and Service
Inflation: 2.50%
96 2019 2018 2017 2016 2015
4,450,956$ 4,025,277$ 3,388,812$ 2,241,922$ 2,252,080$ (4,450,956) (4,025,277) (3,388,812) (2,241,922) (2,252,080) -$ - $ - $ - $ -$ 9,074,473$ 10,400,541$ 10,035,098$ 9,966,210$ 9,138,652$
49.0% 38.7% 33.8% 22.5% 24.6%
10,754,325$ 9,921,278$ 6,593,836$ 6,693,398$ 6,119,336$ (10,754,325) (9,921,278) (6,593,836) (6,693,398) (6,119,336) -$ - $ - $ - $ - $ 14,498,370$ 15,871,203$ 15,522,578$ 16,056,944$ 15,545,592$
74.2% 62.5% 42.5% 41.7% 39.4%
97 CITY OF RIALTO, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2021 2020 2019 2018
Measurement Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service cost 2,226,583$ 2,094,466$ 1,928,465$ 2,083,035$ Interest on the total OPEB liability 2,109,724 2,080,962 2,068,297 1,874,471 Actual and expected experience difference (2,268,284) - - - Changes in assumptions 2,813,462 1,193,708 1,811,535 (3,897,172) Benefit payments (2)
(2,236,759) (2,070,376) (1,969,858) (2,009,296) Net change in total OPEB liability 2,644,726 3,298,760 3,838,439 (1,948,962) Total OPEB liability - beginning 63,806,392 60,507,632 56,669,193 58,618,155 Total OPEB liability - ending 66,451,118$ 63,806,392$ 60,507,632$ 56,669,193$ Plan Fiduciary Net Position
Contribution - employer 862,089$ 635,898$ 3,260,163$ 2,967,326$ Net investment income 530,339 1,144,549 1,243,147 1,806,286 Benefit payments (2,236,759) (2,070,376) (1,969,858) (2,009,296) Administrative expense - (40,610) (34,725) (71,750) Net change in plan fiduciary net position (844,331) (330,539) 2,498,727 2,692,566 Plan fiduciary net position - beginning 18,859,962 19,190,501 16,691,774 13,999,208 Plan fiduciary net position - ending (b) 18,015,631$ 18,859,962$ 19,190,501$ 16,691,774$ Net OPEB Liability/(Assets) - ending (a) - (b) 48,435,487$ 44,946,430$ 41,317,131$ 39,977,419$ Plan fiduciary net position as a percentage of the total OPEB liability (3)
27.1% 29.6% 31.7% 29.5%
Covered-employee payroll 28,234,884$ 25,076,875$ 24,383,667$ 37,244,900$ Net OPEB liability as a percentage of covered-employee payroll 171.5% 179.2% 169.4% 107.3% Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.
Future years' information will be displayed up to 10 years as information becomes available. (2) Includes value of implicit subsidy
(3) The plan is not funded through a qualifying trust; therefore, there is no fiduciary net position to offset the total OPEB liability. 98 CITY OF RIALTO, CALIFORNIA
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
FISCAL YEAR 2021 2020 2019 2018
Actuarially Determined Contribution 3,232,616$ 2,820,893$ 2,607,829$ 2,588,874$ Contribution in Relation to the Actuarially Determined Contributions (1,075,428) (862,089) (635,898) (3,260,163) Contribution Deficiency (Excess) 2,157,188$ 1,958,804$ 1,971,931$ (671,289)$ Covered payroll 30,390,082$ 28,234,884$ 25,076,875$ 34,714,347$ Contributions as a percentage of covered payroll 3.54% 3.05% 2.54% 9.39% Notes to Schedule of Plan Contributions:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market value
Salary increases 3.00%
Discount rate 6.50%
Healthcare cost-trend rates
Retirement Age 50 to 75
Mortality
Plan fiduciary net position - ending (b)
Entry age normal
Level Percent of Pay
CalPERS 2017 Study
5.4% decreasing to 4.0%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation, but data was available for Fiscal Year 2017. Future years' information will be displayed up to 10 years as information becomes available. 99 CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 80,977,160$ 80,977,160$ 80,977,160$ -$ Resources (Inflows):
Taxes 65,331,805 73,128,657 89,826,689 16,698,032 Licenses and permits 6,158,250 6,053,250 5,354,961 (698,289) Intergovernmental 5,740,105 5,813,860 7,481,318 1,667,458 Charges for services 13,972,877 6,859,617 9,111,405 2,251,788 Use of money and property 1,089,017 963,066 (237,931) (1,200,997) Fines and forfeitures 733,200 733,200 567,929 (165,271) Developer participation 3,000 900 - (900) RUA lease payments 2,000,000 2,000,000 2,000,000 - Miscellaneous 1,716,432 1,644,012 1,742,259 98,247 Transfers in 3,809,826 3,809,826 3,709,729 (100,097) Proceeds from sale of capital asset 4,529,000 - 308,727 308,727 Amounts Available for Appropriations 186,060,672 181,983,548 200,842,246 18,858,698 Charges to Appropriation (Outflow):
General government 17,965,201 15,920,742 17,233,935 (1,313,193) Public safety 64,724,497 65,077,421 63,068,172 2,009,249 Community development 15,648,857 16,054,486 12,286,809 3,767,677 Capital outlay 169,640 297,286 109,401 187,885 Debt service:
Principal retirement 162,839 162,839 162,835 4 Interest and fiscal charges 289,585 289,585 289,588 (3) Transfers out 2,251,290 2,388,120 3,104,532 (716,412) Total Charges to Appropriations 101,211,909 100,190,479 96,255,272 3,935,207 Budgetary Fund Balance, June 30 84,848,763$ 81,793,069$ 104,586,974$ 22,793,905$ 100
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
PARK DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (9,094,905)$ (9,094,905)$ (9,094,905)$ -$ Resources (Inflows):
Charges for services 23,738 23,738 730,431 706,693 Use of money and property 148,550 148,550 51,901 (96,649) Amounts Available for Appropriations (8,922,617) (8,922,617) (8,312,573) 610,044 Charges to Appropriation (Outflow):
Community development - - 35,035 (35,035) Capital outlay - 3,909,272 3,233,838 675,434 Total Charges to Appropriations - 3,909,272 3,268,873 640,399 Budgetary Fund Balance, June 30 (8,922,617)$ (12,831,889)$ (11,581,446)$ 1,250,443$ 101
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102
CITY OF RIALTO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Note 1: Budgetary Data
The City establishes accounting control through formal adoptio n of an annual operating budget for all governmental funds. The City Council’s policy is to adopt a formal operating budget by June 30 of each year. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America, except for the Capital Project Funds, which adopt project-length budgets. The legal level of b udgetary control, that is, the level at which expenditures cannot exceed appropriations, is th e fund level for all General, Special Revenue and Debt Service Funds, and by project in the C apital Project Funds. The City does not adopt a budget for the Traffic Safety Prop 1B Special Revenue Fund, Brownfield Clean up Grant Special Revenue Fund, and the Street Medians Development Special Revenue Fund. The City did not adopt a budget for their American Rescue Plan Act Special Revenue Fund, which was a new fund in FY 2020-2021. Dep artment heads are authorized to transfer budget amounts between object codes within the same expense category, except for salaries and capital outlay, which require the approval of the City Manager and Finance Director. City Manager, Finance Direct or, and department head approval are required to transfer appropriations from one progr am to another, and object codes within different expense category within the same fund. H owever, all increases at the overall fund level must be approved by the City Council. All un encumbered budget appropriations, except for capita l projects budgets, lapse at t he end of each fiscal year.
Throughout the fiscal year, the budget is amended to add supple mental appropriations. All changes to the budget require Council approval.
Note 2: Excess of Expenditures Over Appropriations
Expenditures did not exceed appropriations in the General Fund or Park Development Fund.
The City did not adopt a budget for their American Rescue Plan Act Special Revenue Fund, which was a new fund in FY 2020-2021.
103
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104
SUPPLEMENTARY INFORMATION
105
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106
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108
SPECIAL REVENUE FUNDS (CONTINUED)
Housing Authority Fund - accounts for monies received and expended for rehabilitation and development of affordable housing. In addition, this fund also services as the Housing Successor fund to account for the receipts and expenditures relating to housing activities in accordance with the California Health and Safety Code.
Public, Educational, and Governmental (PEG) Fees Fund - account s for Public, Educational, or Governmental access franchise fee activity.
Transportation Development Act (TDA) Fund - accounts for revenu es received under the Transportation Development Act. These funds are used for improvements to City streets.
Street Medians Development Fund - accounts for development fees collected and used for street medians improvements.
Special Deposits Fund - accounts for all special deposits held by the City in its fiduciary capacity.
Confiscated Funds Fund - accounts for seized assets obtained by the Police Department in conjunction with the prosecution of alleged criminal activity that are awaiting dispensation by the court system.
Local Drainage Fund - accounts for development fees collected a nd used for the installation of storm drains and flood control facilities.
CAPITAL PROJECTS FUNDS:
Capital Projects Fund - is used to account for resources restricted or assigned for capital improvements.
Fair Share Agreement Fund - accounts for income received to fund expenditures related to City infrastructure and development improvements.
2005 TABs Fund - accounts for the proceeds of the 2005 TABs and the expenditure of such funds for improvement, reconstruction and redevelopment projects within t he specified boundaries of the Former Rialto Redevelopment Agency as a result of the Bond Proceeds Expenditure Agreement between the City and the Successor Agency.
2008 TABs Fund - accounts for the proceeds of the 2008 TABs and the expenditure of such funds for improvement, reconstruction and redevelopment projects within t he specified boundaries of the Former Rialto Redevelopment Agency as a result of the Bond Proceeds Expenditure Agreement between the City and the Successor Agency.
DEBT SERVICE FUND:
1997 COP Fund - accounts for the accumulation of funds for the payment of principal and interest on the 1997 Refunding Certificates of Participation.
109
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments 7,913,390$ -$ -$ 601,892$ Receivables:
Accounts - - 208,599 - Notes and loans - - - - Accrued interest 16 - - 2 Due from other governments 353,207 - - 10,896 Land held for resale - - - - Restricted assets:
Cash and investments - - - - Total Assets 8,266,613$ -$ 208,599$ 612,790$ Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 321,215$ -$ -$ 250,975$ Accrued liabilities 1,051 - - 1,599 Deposits payable - - - - Due to other funds - - 11,400 - Total Liabilities 322,266 - 11,400 252,574 Deferred Inflows of Resources:
Unavailable revenues - - 208,599 - Total Deferred Inflows of Resources - - 208,599 - Fund Balances:
Restricted for:
Debt service - - - - Public safety - - - - Community development projects 7,944,347 - - 360,216 Unassigned - - (11,400) - Total Fund Balances 7,944,347 - (11,400) 360,216 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 8,266,613$ -$ 208,599$ 612,790$ Special Revenue Funds
Gas Tax Fund
Local
Transportation
Development
Fund
Transportation
Enhancement
Activities Fund
Street
Lighting and
Landscape
Maintenance
Fund
110
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
296,688$ 19,466,743$ 58,553$ -$
- - 95,848 - - 160,190 - - 1 51 - - - - - 90 - - - - - 1,836,976 - - 296,689$ 21,463,960$ 154,401$ 90$
65,089$ 187,316$ 105,374$ -$
4,328 - 2,424 - - - - - - - - - 69,417 187,316 107,798 -
- - - - - - - - - - - - - - - - 227,272 21,276,644 46,603 90
- - - - 227,272 21,276,644 46,603 90
296,689$ 21,463,960$ 154,401$ 90$
Special Revenue Funds
Landscape
and Lighting
District No. 2
Fund
Traffic
Development
Fund
Office of
Traffic Safety
Fund
Retirement
Tax Fund
111
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
2,103,233$ 2,773,482$ 82,379$ 6,459,877$ - - - 389,594 - - - - 5 7 - - - - - - - - - - - - - - 2,103,238$ 2,773,489$ 82,379$ 6,849,471$ -$ 122,101$ -$ 285,453$ - - - 18 - - - - - - - - - 122,101 - 285,471 - - - 386,823 - - - 386,823 - - - - - - - - 2,103,238 2,651,388 82,379 6,177,177 - - - - 2,103,238 2,651,388 82,379 6,177,177 2,103,238$ 2,773,489$ 82,379$ 6,849,471$ Special Revenue Funds
Open Space
Development
Fund
General
Facilities
Development
Fund
Library
Facilities
Development
Fund
Major Grant
Funding Fund
112
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
1,973,049$ 545,978$ 9,557,458$ 597,933$ - - 430,926 - - - - - 5 - 23 1 - - 210 34,714 - - - - - - - - 1,973,054$ 545,978$ 9,988,617$ 632,648$ -$ 10,863$ 27,811$ 6,608$ - - 9,310 1,870 - - - - - - - - - 10,863 37,121 8,478 - - - - - - - - - - - - 1,973,054 535,115 - - - - 9,951,496 624,170 - - - - 1,973,054 535,115 9,951,496 624,170 1,973,054$ 545,978$ 9,988,617$ 632,648$ Special Revenue Funds
Police
Development
Fund
Fire
Development
Fund
Waste
Management
Fund
South Coast
Air Quality
Management
(SCAQMD)
Fund
113
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
2,016,443$ -$ -$ 695,325$ - 26,767 94,413 - - - - - 6 - - 2 - - 247,322 - - - - - - - - - 2,016,449$ 26,767$ 341,735$ 695,327$ -$ -$ 163,142$ -$ - - - - - - - - - 79,951 187,925 - - 79,951 351,067 - - 15,873 281,365 - - 15,873 281,365 - - - - - 2,016,449 - - 695,327 - - - - - (69,057) (290,697) - 2,016,449 (69,057) (290,697) 695,327 2,016,449$ 26,767$ 341,735$ 695,327$ Special Revenue Funds
Asset
Forfeiture
Fund
Police Grants
Fund
Community
Services Grant
Fund
Citizens
Option for
Public Safety
Fund
114
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
3,149$ -$ 420$ -$ - - - - - - - - - - - - - 802,285 - - - - - - - - - - 3,149$ 802,285$ 420$ -$ -$ 283,668$ -$ -$ - - - - - - - - - 549,578 - 20,752 - 833,246 - 20,752 - 802,285 - - - 802,285 - - - - - - 3,149 - - - - - 420 - - (833,246) - (20,752) 3,149 (833,246) 420 (20,752) 3,149$ 802,285$ 420$ -$ Special Revenue Funds
Local Law
Enforcement
Block Grant
Fund CDBG Fund
Traffic Safety
Prop 1B Fund
Neighborhood
Stabilization
Program Fund
115
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
1,025,254$ 6,499,450$ 17,296$ 193,374$ 44,500 - - - - - - - 2 16 - - - 654,019 - - - - - - - - - - 1,069,756$ 7,153,485$ 17,296$ 193,374$ -$ 235,726$ -$ 2,864$ - 1,532 - - - - - - - - - - - 237,258 - 2,864 - - - - - - - - - - - - - - - 190,510 1,069,756 6,916,227 17,296 - - - - - 1,069,756 6,916,227 17,296 190,510 1,069,756$ 7,153,485$ 17,296$ 193,374$ Special Revenue Funds
Neighborhood
Stabilization
Program -
Program
Income Fund
Measure I
Fund
Brownfield
Clean Up
Grant Fund
Fire Grant
Fund
116
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
9,208,656$ 1,344,833$ 2,021,789$ 264,446$ 17,154 44,673 54,636 1,981 - 1,297,241 974,783 - - 3 5 1 - - - - - - 970,400 - - - - - 9,225,810$ 2,686,750$ 4,021,613$ 266,428$ 627,650$ 9,566$ 1,506$ 4,192$ - - 1,115 - - - 10,000 - - - - - 627,650 9,566 12,621 4,192 - 1,297,241 974,783 - - 1,297,241 974,783 - - - - - 8,598,160 - - - - 1,379,943 3,034,209 262,236 - - - - 8,598,160 1,379,943 3,034,209 262,236 9,225,810$ 2,686,750$ 4,021,613$ 266,428$ Special Revenue Funds
Fire Ground
Emergency
Transportation
Fund
Cal Home
Fund
Housing
Authority Fund
Public,
Educational,
and
Governmental
(PEG) Fees
Fund
117
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
20,872$ 278,254$ 480,813$ 2,563,937$ 161,021 - 2,255 - - - 24,813 - - 1 - 6 - - 58,775 - - - - - - - 1,364,475 - 181,893$ 278,255$ 1,931,131$ 2,563,943$ -$ -$ 6,484$ -$ - - 1,716,266 - - - 208,381 2,563,943 - - - - - - 1,931,131 2,563,943 161,021 - - - 161,021 - - - - - - - - - - - 20,872 278,255 - - - - - - 20,872 278,255 - - 181,893$ 278,255$ 1,931,131$ 2,563,943$ Transportation
Development
Act (TDA) Fund
Street Medians
Development
Fund
Special
Deposits
Confiscated
Funds
Special Revenue Funds
118
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Special
Revenue
Funds
22,044,055$ 11,906,176$ 11,444,765$ 8,783,094$ - - - - - - - - 53 31 31 23 - 688,457 - - - - - - (81,659) 7,147,355 - - 21,962,449$ 19,742,019$ 11,444,796$ 8,783,117$ 26,799$ 715,616$ 9,462$ -$
18 1,222 - - - - - - - - - - 26,817 716,838 9,462 - - 688,457 - - - 688,457 - - - - - - - - - - 21,935,632 18,336,724 11,435,334 8,783,117 - - - - 21,935,632 18,336,724 11,435,334 8,783,117 21,962,449$ 19,742,019$ 11,444,796$ 8,783,117$ Capital Projects Funds
Local
Drainage Fund
Capital
Projects Fund
Fair Share
Agreement
Fund
2005 TABs
Fund
119
CITY OF RIALTO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Due from other governments
Land held for resale
Restricted assets:
Cash and investments
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Restricted for:
Debt service
Public safety
Community development projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Capital
Projects
Funds
4,698,382$ 435,467$ 138,376,905$
12 - 1,572,379
- - 2,457,027 - 1 292
- 184,850 3,034,825
- - 970,400
- - 10,267,147 4,698,394$ 620,318$ 156,678,975$
-$ -$ 3,469,480$
- - 1,740,753 - - 2,782,324 - - 849,606
- - 8,842,163 - - 4,816,447 - - 4,816,447 - 620,318 620,318
- - 14,011,764 4,698,394 - 129,613,435
- - (1,225,152) 4,698,394 620,318 143,020,365
4,698,394$ 620,318$ 156,678,975$
Debt Service
Fund
2008 TABs
Fund
1997 COP
Fund
Total
Governmental
Funds
120
THIS PAGE INTENTIONALLY LEFT BLANK
121
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes -$ -$ -$ 1,391,474$ Revenue from Other Agencies 6,658,077 - - - Charges for services - - - - Use of money and property 50,698 - - 6,788 Developer participation - - - - Payment from Successor agency - - - - Miscellaneous - - - - Total Revenues 6,708,775 - - 1,398,262 Expenditures:
Current:
General government - - - - Public safety - - - - Community development 233,551 - - 1,972,452 Capital outlay 826,113 - - 105,161 Debt service:
Principal retirement - - - 172,977 Interest and fiscal charges - - - 106,552 Total Expenditures 1,059,664 - - 2,357,142 Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,649,111 - - (958,880) Other Financing Sources (Uses):
Transfers in - - - 164,020 Transfers out (1,000,000) - - - Total Other Financing Sources
(Uses) (1,000,000) - - 164,020 Net Change in Fund Balances 4,649,111 - - (794,860) Fund Balances, Beginning of Year 3,295,236 (2,010) (11,400) 1,155,076 Restatements - 2,010 - - Fund Balances, Beginning of Year, as Restated 3,295,236 - (11,400) 1,155,076 Fund Balances, End of Year 7,944,347$ -$ (11,400)$ 360,216$ Gas Tax Fund
Local
Transportation
Development
Fund
Transportation
Enhancement
Activities Fund
Street
Lighting and
Landscape
Maintenance
Fund
Special Revenue Funds
122
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
744,378$ - $ - $ 123 $ - - 149,731 - - - 21,439 - 3,050 174,272 - - - 1,282,866 - - - - - - 25,000 48 108,174 - 772,428 1,457,186 279,344 123 792,838 - - - - - 2,472 - 124,104 1,133,151 249,451 - - 1,095,710 102,527 - 21,299 - - - 13,250 - - - 951,491 2,228,861 354,450 - (179,063) (771,675) (75,106) 123 - - - - (38,880) (58,650) - (33) (38,880) (58,650) - (33) (217,943) (830,325) (75,106) 90 445,215 22, 106,969 121,709 - - - - - 445,215 22, 106,969 121,709 - 227,272$ 21, 276,644$ 46,603 $ 90 $ Landscape
and Lighting
District No. 2
Fund
Traffic
Development
Fund
Office of
Traffic Safety
Fund
Retirement
Tax Fund
Special Revenue Funds
123
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ - $ - $ - $ - - - 1,050,702 - - - - 17,471 23,424 698 - 98,639 510,912 - - - - - - - - - - 116,110 534,336 698 1,050,702 - - - 11,020 - - - - 241 123,019 - 717,185 50,555 452,742 - 588,891 - - - - - - - - 50,796 575,761 - 1,317,096 65,314 (41,425) 698 (266,394) - - - 716,412 - - - - - - - 716,412 65,314 (41,425) 698 450,018 2,037,924 2, 692,813 81,681 5,727,159 - - - - 2,037,924 2, 692,813 81,681 5,727,159 2,103,238$ 2, 651,388$ 82,379 $ 6,177,177 $ Open Space
Development
Fund
General
Facilities
Development
Fund
Library
Facilities
Development
Fund
Major Grant
Funding Fund
Special Revenue Funds
124
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
-$ - $ - $ - $ - - 2,601,369 294,629 - - - - 15,112 - 74,369 4,231 271,978 215,214 - - - - - - - - 13,620 - 287,090 215,214 2,689,358 298,860 - - - - - 200,795 - - - - 854,632 31,598 - 980,791 61,709 106,572 - - - - - - - - - 1,181,586 916,341 138,170 287,090 (966,372) 1,773,017 160,690 - - - - - (1,440) (44,000) (6,826) - (1,440) (44,000) (6,826) 287,090 (967,812) 1,729,017 153,864 1,685,964 (3, 497,073) 8,222,479 470,306 - 5,000,000 - - 1,685,964 1,502,927 8,222,479 470,306 1,973,054$ 535,115 $ 9,951,496 $ 624,170 $ Special Revenue Funds
Fire
Development
Fund
Waste
Management
Fund
South Coast
Air Quality
Management
(SCAQMD)
Fund
Police
Development
Fund
125
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ - $ - $ - $ 124,274 10,895 595,847 252,878 - - - - 118,070 - - 4,695 - - - - - - - - - 24,962 - - 242,344 35,857 595,847 257,573 - - - - 685,006 10,895 - 284,289 - - 780,842 - 149,615 24,962 - - - - - - - - - - 834,621 35,857 780,842 284,289 (592,277) - (184,995) (26,716) - - - - - - - - - - - - (592,277) - (184,995) (26,716) 2,608,726 (69,057) (105,702) 722,043 - - - - 2,608,726 (69,057) (105,702) 722,043 2,016,449$ (69,057) $ (290,697) $ 695,327 $ Special Revenue Funds
Citizens
Option for
Public Safety
Fund
Asset
Forfeiture
Fund
Police Grants
Fund
Community
Services Grant
Fund
126
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
-$ - $ - $ - $ - 1,753,421 - - - - - - - - 4 - - - - - - - - - - - - - - 1,753,421 4 - - 735,673 - 21,103 - - - - - - - - - 844,097 - - - 314,000 - - - 67,318 - - - 1,961,088 - 21,103 - (207,667) 4 (21,103) - - - - - (44, 402) - - - (44, 402) - - - (252,069) 4 (21,103) 3,149 (581,177) 416 351 - - - - 3,149 (581,177) 416 351 3,149$ (833,246)$ 420$ (20,752)$ Special Revenue Funds
Local Law
Enforcement
Block Grant
Fund CDBG Fund
Traffic Safety
Prop 1B Fund
Neighborhood
Stabilization
Program Fund
127
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ - $ - $ - $ - 2, 339,196 - 21,804 - - - - 8,178 53,652 - - - - - - - - - - 123,500 - - - 131,678 2, 392,848 - 21,804 - - - - - - - 2,863 - 961,266 - - - 531,397 - - - - - - - - - - - 1, 492,663 - 2,863 131,678 900,185 - 18,941 - - - - (1,078) - - - (1,078) - - - 130,600 900,185 - 18,941 939,156 6, 016,042 17,296 171,569 - - - - 939,156 6, 016,042 17,296 171,569 1,069,756$ 6, 916,227$ 17,296 $ 190,510$ Measure I
Fund
Brownfield
Clean Up
Grant Fund
Fire Grant
Fund
Neighborhood
Stabilization
Program -
Program
Income Fund
Special Revenue Funds
128
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
-$ - $ - $ 49,784$ 2,833,516 - - - - - - - - 10,553 17,427 2,107 - - - - - - - - - 229,905 89,776 - 2,833,516 240,458 107,203 51,891 - 64,759 43,986 29,925 206,054 - - - - - - - 537,799 - - 12,991 - - - - - - - - 743,853 64,759 43,986 42,916 2,089,663 175,699 63,217 8,975 - - - - - - - - - - - - 2,089,663 175,699 63,217 8,975 6,508,497 1,204,244 2,970,992 253,261 - - - - 6,508,497 1,204,244 2,970,992 253,261 8,598,160$ 1,379,943 $ 3,034,209 $ 262,236$ Public,
Educational, and
Governmental
(PEG) Fees Fund
Fire Ground
Emergency
Transportation
Fund
Cal Home
Fund
Housing
Authority Fund
Special Revenue Funds
129
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
-$ - $ - $ - $ 361,021 - - - - - - - - 2,358 - - - - - - - - - - - - - - 361,021 2,358 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 361,021 2,358 - - - - - - - - - - - - - - 361,021 2,358 - - (386,021) 275,897 - - 45,872 - - - (340,149) 275,897 - - 20,872$ 278,255$ -$ -$ Special Revenue Funds
Transportation
Development
Act (TDA) Fund
Street
Medians
Development
Fund
Special
Deposits
Confiscated
Funds
130
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
Special
Revenue
Funds
-$ - $ - $ - $ - - - - - - - - 173,010 16,621 101,307 74,395 2,353,382 - 271,311 - - - -
- 86 - - 2,526,392 16,707 372,618 74,395 - 10,592 - - - 1,037,274 - - 4,802 1,254,535 494,546 - 73,876 2,116,341 589,152 - - - - - - - - - 78,678 4,418,742 1, 083,698 - 2,447,714 (4, 402,035) (711,080) 74,395 - 1,803,600 - - - - - - - 1,803,600 - - 2,447,714 (2, 598,435) (711,080) 74,395 19,487,918 20,935,159 12,146,414 8,708,722 - - - - 19,487,918 20,935,159 12,146,414 8,708,722 21,935,632$ 18,336,724 $ 11,435,334 $ 8,783,117 $ Capital Projects Funds
Local
Drainage Fund
Capital
Projects Fund
Fair Share
Agreement
Fund
2005 TABs
Fund
131
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Revenues:
Taxes
Revenue from Other Agencies
Charges for services
Use of money and property
Developer participation
Payment from Successor agency
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Capital
Projects Funds
Debt Service
Funds
Total
Governmental
Funds
-$ - $ 2,185,759$ - - 19,047,360 - - 21,439 39,797 4,764 997,051
- - 5,004,302 - 184,850 184,850 - - 615,071 39,797 189,614 28,055,832
- - 1,709,896 - - 2,429,648 - - 8,935,375 - - 9,251,001 - 221,849 730,125 - 15,633 202,753 - 237,482 23,258,798 39,797 (47,868) 4,797,034 - - 2,684,032 - (14,420) (1,209,729) - (14,420) 1,474,303 39,797 (62,288) 6,271,337 4,658,597 682,606 131,701,146
- - 5,047,882 4,658,597 682,606 136,749,028
4,698,394$ 620,318$ 143,020,365 $
1997 COP Fund
2008 TABs
Fund
132
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
GAS TAX FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,295,236$ 3,295,236$ 3,295,236$ -$ Resources (Inflows):
Intergovernmental 4,876,000 4,876,000 6,658,077 1,782,077 Use of money and property 21,290 21,290 50,698 29,408 Amounts Available for Appropriations 8,192,526 8,192,526 10,004,011 1,811,485 Charges to Appropriation (Outflow):
Community development - 264,705 233,551 31,154 Capital outlay 3,600,000 12,893,427 826,113 12,067,314 Transfers out 1,000,000 1,000,000 1,000,000 -
Total Charges to Appropriations 4,600,000 14,158,132 2,059,664 12,098,468 Budgetary Fund Balance, June 30 3,592,526$ (5,965,606)$ 7,944,347$ 13,909,953$ 133
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION ENHANCEMENT ACTIVITIES FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (11,400)$ (11,400)$ (11,400)$ -$ Resources (Inflows):
Intergovernmental - 20,472 - (20,472) Amounts Available for Appropriations (11,400) 9,072 (11,400) (20,472) Charges to Appropriation (Outflow):
Capital outlay - 9,072 - 9,072 Total Charges to Appropriations - 9,072 - 9,072 Budgetary Fund Balance, June 30 (11,400)$ -$ (11,400)$ (11,400)$ 134
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
STREET LIGHTING AND LANDSCAPE MAINTENANCE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,155,076$ 1,155,076$ 1,155,076$ -$ Resources (Inflows):
Taxes 1,377,338 1,377,338 1,391,474 14,136
Use of money and property 17,400 17,400 6,788 (10,612) Transfers in 164,020 164,020 164,020 - Amounts Available for Appropriations 2,713,834 2,713,834 2,717,358 3,524 Charges to Appropriation (Outflow):
Community development 1,972,661 1,972,661 1,972,452 209 Capital outlay - 116,125 105,161 10,964 Debt service:
Principal retirement 172,906 172,906 172,977 (71) Interest and fiscal charges 106,625 106,625 106,552 73 Total Charges to Appropriations 2,252,192 2,368,317 2,357,142 11,175 Budgetary Fund Balance, June 30 461,642$ 345,517$ 360,216$ 14,699$ 135
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICT NO. 2 FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 445,215$ 445,215$ 445,215$ -$ Resources (Inflows):
Taxes 667,574 667,574 744,378 76,804
Use of money and property 8,040 8,040 3,050 (4,990) Miscellaneous 50,000 50,000 25,000 (25,000) Amounts Available for Appropriations 1,170,829 1,170,829 1,217,643 46,814 Charges to Appropriation (Outflow):
General government 898,232 840,532 792,838 47,694 Community development 128,962 128,962 124,104 4,858 Debt service:
Principal retirement 21,371 21,371 21,299 72 Interest and fiscal charges 13,179 13,179 13,250 (71) Transfers out 38,880 38,880 38,880 - Total Charges to Appropriations 1,100,624 1,042,924 990,371 52,553 Budgetary Fund Balance, June 30 70,205$ 127,905$ 227,272$ 99,367$ 136
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
TRAFFIC DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 22,106,969$ 22,106,969$ 22,106,969$ -$ Resources (Inflows):
Use of money and property 222,780 222,780 174,272 (48,508) Developer participation 599,210 599,210 1,282,866 683,656 Miscellaneous - - 48 48 Amounts Available for Appropriations 22,928,959 22,928,959 23,564,155 635,196 Charges to Appropriation (Outflow):
Community development - - 1,133,151 (1,133,151) Capital outlay 10,187,100 13,460,598 1,095,710 12,364,888 Transfers out 58,650 58,650 58,650 - Total Charges to Appropriations 10,245,750 13,519,248 2,287,511 11,231,737 Budgetary Fund Balance, June 30 12,683,209$ 9,409,711$ 21,276,644$ 11,866,933$ 137
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
OFFICE OF TRAFFIC SAFETY FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 121,709$ 121,709$ 121,709$ -$ Resources (Inflows):
Intergovernmental 447,937 447,937 149,731 (298,206) Charges for services - - 21,439 21,439 Miscellaneous 163,496 298,252 108,174 (190,078) Amounts Available for Appropriations 733,142 867,898 401,053 (466,845) Charges to Appropriation (Outflow):
Public safety - - 2,472 (2,472) Community development 536,467 681,542 249,451 432,091 Capital outlay 179,000 166,540 102,527 64,013 Total Charges to Appropriations 715,467 848,082 354,450 493,632 Budgetary Fund Balance, June 30 17,675$ 19,816$ 46,603$ 26,787$ 138
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
RETIREMENT TAX FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):
Taxes 200 200 123 (77) Amounts Available for Appropriations 200 200 123 (77) Charges to Appropriation (Outflow):
Transfers out 200 200 33 167 Total Charges to Appropriations 200 200 33 167 Budgetary Fund Balance, June 30 -$ -$ 90$ 90$ 139
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
OPEN SPACE DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,037,924$ 2,037,924$ 2,037,924$ -$ Resources (Inflows):
Use of money and property 22,620 22,620 17,471 (5,149) Developer participation 123,093 123,093 98,639 (24,454) Amounts Available for Appropriations 2,183,637 2,183,637 2,154,034 (29,603) Charges to Appropriation (Outflow):
Community development - - 241 (241) Capital outlay 976,000 1,007,094 50,555 956,539 Total Charges to Appropriations 976,000 1,007,094 50,796 956,298 Budgetary Fund Balance, June 30 1,207,637$ 1,176,543$ 2,103,238$ 926,695$ 140
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
GENERAL FACILITIES DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,692,813$ 2,692,813$ 2,692,813$ -$ Resources (Inflows):
Use of money and property 28,980 28,980 23,424 (5,556) Developer participation 95,512 95,512 510,912 415,400 Amounts Available for Appropriations 2,817,305 2,817,305 3,227,149 409,844 Charges to Appropriation (Outflow):
Community development - - 123,019 (123,019) Capital outlay - 1,891,468 452,742 1,438,726 Total Charges to Appropriations - 1,891,468 575,761 1,315,707 Budgetary Fund Balance, June 30 2,817,305$ 925,837$ 2,651,388$ 1,725,551$ 141
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
LIBRARY FACILITIES DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 81,681$ 81,681$ 81,681$ -$ Resources (Inflows):
Use of money and property 280 280 698 418 Amounts Available for Appropriations 81,961 81,961 82,379 418 Budgetary Fund Balance, June 30 81,961$ 81,961$ 82,379$ 418$ 142
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
MAJOR GRANT FUNDING FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,727,159$ 5,727,159$ 5,727,159$ -$ Resources (Inflows):
Intergovernmental - 7,437,369 1,050,702 (6,386,667) Miscellaneous - 310,000 - (310,000) Transfers in - - 716,412 716,412 Amounts Available for Appropriations 5,727,159 13,474,528 7,494,273 (5,980,255) Charges to Appropriation (Outflow):
General government - 310,000 11,020 298,980 Community development - 9,418 717,185 (707,767) Capital outlay 900,000 9,720,626 588,891 9,131,735 Total Charges to Appropriations 900,000 10,040,044 1,317,096 8,722,948 Budgetary Fund Balance, June 30 4,827,159$ 3,434,484$ 6,177,177$ 2,742,693$ 143
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
POLICE DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,685,964$ 1,685,964$ 1,685,964$ -$ Resources (Inflows):
Use of money and property 16,500 16,500 15,112 (1,388) Developer participation 110,693 110,693 271,978 161,285 Amounts Available for Appropriations 1,813,157 1,813,157 1,973,054 159,897 Budgetary Fund Balance, June 30 1,813,157$ 1,813,157$ 1,973,054$ 159,897$ 144
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
FIRE DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,502,927$ 1,502,927$ 1,502,927$ -$ Resources (Inflows):
Use of money and property 26,890 26,890 - (26,890) Developer participation 62,724 62,724 215,214 152,490 Amounts Available for Appropriations 1,592,541 1,592,541 1,718,141 125,600 Charges to Appropriation (Outflow):
Public safety - - 200,795 (200,795) Capital outlay - 3,218,908 980,791 2,238,117 Transfers out 1,440 1,440 1,440 - Total Charges to Appropriations 1,440 3,220,348 1,183,026 2,037,322 Budgetary Fund Balance, June 30 1,591,101$ (1,627,807)$ 535,115$ 2,162,922$ 145
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
WASTE MANAGEMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 8,222,479$ 8,222,479$ 8,222,479$ -$ Resources (Inflows):
Intergovernmental 1,605,510 1,605,510 2,601,369 995,859 Use of money and property 89,100 89,100 74,369 (14,731) Miscellaneous 712,270 712,270 13,620 (698,650) Amounts Available for Appropriations 10,629,359 10,629,359 10,911,837 282,478 Charges to Appropriation (Outflow):
Community development 1,099,313 1,099,313 854,632 244,681 Capital outlay 1,550,000 6,400,000 61,709 6,338,291 Transfers out 44,000 44,000 44,000 - Total Charges to Appropriations 2,693,313 7,543,313 960,341 6,582,972 Budgetary Fund Balance, June 30 7,936,046$ 3,086,046$ 9,951,496$ 6,865,450$ 146
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
SOUTH COAST AIR QUALITY MANAGEMENT (SCAQMD) FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 470,306$ 470,306$ 470,306$ -$ Resources (Inflows):
Intergovernmental 138,800 738,000 294,629 (443,371) Use of money and property 5,450 5,450 4,231 (1,219) Amounts Available for Appropriations 614,556 1,213,756 769,166 (444,590) Charges to Appropriation (Outflow):
Community development 46,190 359,500 31,598 327,902 Capital outlay - 521,672 106,572 415,100 Transfers out 6,940 6,940 6,826 114 Total Charges to Appropriations 53,130 888,112 144,996 743,116 Budgetary Fund Balance, June 30 561,426$ 325,644$ 624,170$ 298,526$ 147
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
ASSET FORFEITURE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,608,726$ 2,608,726$ 2,608,726$ -$ Resources (Inflows):
Intergovernmental - - 124,274 124,274 Use of money and property 29,670 29,670 118,070 88,400 Amounts Available for Appropriations 2,638,396 2,638,396 2,851,070 212,674 Charges to Appropriation (Outflow):
Public safety 705,968 1,226,158 685,006 541,152 Capital outlay 850,000 977,461 149,615 827,846 Total Charges to Appropriations 1,555,968 2,203,619 834,621 1,368,998 Budgetary Fund Balance, June 30 1,082,428$ 434,777$ 2,016,449$ 1,581,672$ 148
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
POLICE GRANTS FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (69,057)$ (69,057)$ (69,057)$ -$ Resources (Inflows):
Intergovernmental - 496,072 10,895 (485,177) Miscellaneous - 24,965 24,962 (3) Amounts Available for Appropriations (69,057) 451,980 (33,200) (485,180) Charges to Appropriation (Outflow):
Public safety - 520,482 10,895 509,587 Capital outlay 24,705 24,965 24,962 3 Total Charges to Appropriations 24,705 545,447 35,857 509,590 Budgetary Fund Balance, June 30 (93,762)$ (93,467)$ (69,057)$ 24,410$ 149
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
COMMUNITY SERVICES GRANT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (105,702)$ (105,702)$ (105,702)$ -$ Resources (Inflows):
Intergovernmental 1,133,089 1,423,985 595,847 (828,138) Amounts Available for Appropriations 1,027,387 1,318,283 490,145 (828,138) Charges to Appropriation (Outflow):
Community development 1,044,503 1,485,734 780,842 704,892 Total Charges to Appropriations 1,044,503 1,485,734 780,842 704,892 Budgetary Fund Balance, June 30 (17,116)$ (167,451)$ (290,697)$ (123,246)$ 150
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
CITIZENS OPTION FOR PUBLIC SAFETY FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 722,043$ 722,043$ 722,043$ -$ Resources (Inflows):
Intergovernmental 167,500 187,280 252,878 65,598 Use of money and property 16,330 16,330 4,695 (11,635) Amounts Available for Appropriations 905,873 925,653 979,616 53,963 Charges to Appropriation (Outflow):
General government 162,443 410,067 82,717 327,350 Public safety - - 201,572 (201,572) Capital outlay 348,220 584,252 - 584,252 Total Charges to Appropriations 510,663 994,319 284,289 710,030 Budgetary Fund Balance, June 30 395,210$ (68,666)$ 695,327$ 763,993$ 151
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
LOCAL LAW ENFORCEMENT BLOCK GRANT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,149$ 3,149$ 3,149$ -$ Resources (Inflows):
Intergovernmental 57,230 142,787 - (142,787) Use of money and property 110 110 - (110) Amounts Available for Appropriations 60,489 146,046 3,149 (142,897) Charges to Appropriation (Outflow):
General government - 57,230 - 57,230 Community development - 28,327 - 28,327 Total Charges to Appropriations - 85,557 - 85,557 Budgetary Fund Balance, June 30 60,489$ 60,489$ 3,149$ (57,340)$ 152
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
CDBG FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (581,177)$ (581,177)$ (581,177)$ -$ Resources (Inflows):
Intergovernmental 1,295,942 3,597,223 1,753,421 (1,843,802) Amounts Available for Appropriations 714,765 3,016,046 1,172,244 (1,843,802) Charges to Appropriation (Outflow):
General government 289,223 1,628,807 735,673 893,134 Capital outlay 442,823 1,404,519 844,097 560,422 Debt service:
Principal retirement 330,000 330,000 314,000 16,000 Interest and fiscal charges 93,600 93,600 67,318 26,282 Transfers out 140,296 140,296 44,402 95,894 Total Charges to Appropriations 1,295,942 3,597,222 2,005,490 1,591,732 Budgetary Fund Balance, June 30 (581,177)$ (581,176)$ (833,246)$ (252,070)$ 153
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY PROP 1B FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 416$ 416$ 416$ -$ Resources (Inflows):
Use of money and property 10 10 4 (6) Amounts Available for Appropriations 426 426 420 (6) Budgetary Fund Balance, June 30 426$ 426$ 420$ (6)$ 154
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
NEIGHBORHOOD STABILIZATION PROGRAM FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 351$ 351$ 351$ -$ Charges to Appropriation (Outflow):
General government - - 21,103 (21,103) Total Charges to Appropriations - - 21,103 (21,103) Budgetary Fund Balance, June 30 351$ 351$ (20,752)$ (21,103)$ 155
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
NEIGHBORHOOD STABILIZATION PROGRAM - PROGRAM INCOME FUND YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 939,156$ 939,156$ 939,156$ -$ Resources (Inflows):
Use of money and property 9,770 9,770 8,178 (1,592) Miscellaneous 42,000 42,000 123,500 81,500 Amounts Available for Appropriations 990,926 990,926 1,070,834 79,908 Charges to Appropriation (Outflow):
Transfers out 5,000 5,000 1,078 3,922 Total Charges to Appropriations 5,000 5,000 1,078 3,922 Budgetary Fund Balance, June 30 985,926$ 985,926$ 1,069,756$ 83,830$ 156
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
MEASURE I FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,016,042$ 6,016,042$ 6,016,042$ -$ Resources (Inflows):
Intergovernmental 1,565,254 1,565,254 2,339,196 773,942 Use of money and property 85,100 85,100 53,652 (31,448) Amounts Available for Appropriations 7,666,396 7,666,396 8,408,890 742,494 Charges to Appropriation (Outflow):
Community development 100,000 792,317 961,266 (168,949) Capital outlay 1,300,000 6,398,843 531,397 5,867,446 Total Charges to Appropriations 1,400,000 7,191,160 1,492,663 5,698,497 Budgetary Fund Balance, June 30 6,266,396$ 475,236$ 6,916,227$ 6,440,991$ 157
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
FIRE GRANT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 171,569$ 171,569$ 171,569$ -$ Resources (Inflows):
Intergovernmental - 15,000 21,804 6,804 Amounts Available for Appropriations 171,569 186,569 193,373 6,804 Charges to Appropriation (Outflow):
Public safety - 10,213 2,863 7,350 Total Charges to Appropriations - 10,213 2,863 7,350 Budgetary Fund Balance, June 30 171,569$ 176,356$ 190,510$ 14,154$ 158
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
FIRE GROUND EMERGENCY TRANSPORTATION FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 6,508,497$ 6,508,497$ 6,508,497$ -$ Resources (Inflows):
Intergovernmental - - 2,833,516 2,833,516 Amounts Available for Appropriations 6,508,497 6,508,497 9,342,013 2,833,516 Charges to Appropriation (Outflow):
Public safety - - 206,054 (206,054) Capital outlay 129,680 1,200,484 537,799 662,685 Total Charges to Appropriations 129,680 1,200,484 743,853 456,631 Budgetary Fund Balance, June 30 6,378,817$ 5,308,013$ 8,598,160$ 3,290,147$ 159
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
CAL HOME FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,204,244$ 1,204,244$ 1,204,244$ -$ Resources (Inflows):
Use of money and property 16,570 16,570 10,553 (6,017) Miscellaneous 115,000 115,000 229,905 114,905 Amounts Available for Appropriations 1,335,814 1,335,814 1,444,702 108,888 Charges to Appropriation (Outflow):
General government 314,130 374,130 64,759 309,371 Total Charges to Appropriations 314,130 374,130 64,759 309,371 Budgetary Fund Balance, June 30 1,021,684$ 961,684$ 1,379,943$ 418,259$ 160
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,970,992$ 2,970,992$ 2,970,992$ -$ Resources (Inflows):
Use of money and property 18,890 18,890 17,427 (1,463) Miscellaneous 127,230 127,230 89,776 (37,454) Amounts Available for Appropriations 3,117,112 3,117,112 3,078,195 (38,917) Charges to Appropriation (Outflow):
General government 136,558 136,558 43,986 92,572 Total Charges to Appropriations 136,558 136,558 43,986 92,572 Budgetary Fund Balance, June 30 2,980,554$ 2,980,554$ 3,034,209$ 53,655$ 161
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
PUBLIC, EDUCATIONAL, AND GOVERNMENTAL (PEG) FEES FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 253,261$ 253,261$ 253,261$ -$ Resources (Inflows):
Taxes 11,500 11,500 49,784 38,284 Use of money and property 4,070 4,070 2,107 (1,963) Amounts Available for Appropriations 268,831 268,831 305,152 36,321 Charges to Appropriation (Outflow):
General government - - 29,925 (29,925) Capital outlay 75,000 108,550 12,991 95,559 Total Charges to Appropriations 75,000 108,550 42,916 65,634 Budgetary Fund Balance, June 30 193,831$ 160,281$ 262,236$ 101,955$ 162
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION DEVELOPMENT ACT (TDA) FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (340,149)$ (340,149)$ (340,149)$ -$ Resources (Inflows):
Intergovernmental - - 361,021 361,021 Amounts Available for Appropriations (340,149) (340,149) 20,872 361,021 Charges to Appropriation (Outflow):
Capital outlay 14,432 240,432 - 240,432 Total Charges to Appropriations 14,432 240,432 - 240,432 Budgetary Fund Balance, June 30 (354,581)$ (580,581)$ 20,872$ 601,453$ 163
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
STREET MEDIANS DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 275,897$ 275,897$ 275,897$ -$ Resources (Inflows):
Use of money and property 3,520 3,520 2,358 (1,162) Amounts Available for Appropriations 279,417 279,417 278,255 (1,162) Charges to Appropriation (Outflow):
Capital outlay 539,600 539,600 - 539,600 Total Charges to Appropriations 539,600 539,600 - 539,600 Budgetary Fund Balance, June 30 (260,183)$ (260,183)$ 278,255$ 538,438$ 164
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
LOCAL DRAINAGE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,487,918$ 19,487,918$ 19,487,918$ -$ Resources (Inflows):
Use of money and property 239,620 239,620 173,010 (66,610) Developer participation 540,206 540,206 2,353,382 1,813,176 Amounts Available for Appropriations 20,267,744 20,267,744 22,014,310 1,746,566 Charges to Appropriation (Outflow):
Community development - - 4,802 (4,802) Capital outlay 4,274,500 16,410,293 73,876 16,336,417 Total Charges to Appropriations 4,274,500 16,410,293 78,678 16,331,615 Budgetary Fund Balance, June 30 15,993,244$ 3,857,451$ 21,935,632$ 18,078,181$ 165
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,935,159$ 20,935,159 $ 20,935,159 $ -$ Resources (Inflows):
Intergovernmental - 800,000 - (800,000) Use of money and property 156,230 156,230 16,621 (139,609) Miscellaneous - - 86 86 Transfers in 1,666,770 1,803,600 1,803,600 - Amounts Available for Appropriations 22,758,159 23,694,989 22,755,466 (939,523) Charges to Appropriation (Outflow):
General government - - 10,592 (10,592) Public safety 300,000 300,000 1,037,274 (737,274) Community development - 457,000 1,254,535 (797,535) Capital outlay 3,498,500 16,403,369 2,116,341 14,287,028 Total Charges to Appropriations 3,798,500 17,160,369 4,418,742 12,741,627 Budgetary Fund Balance, June 30 18,959,659$ 6,534,620$ 18,336,724$ 11,802,104$ 166
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
FAIR SHARE AGREEMENT FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 12,146,414$ 12,146,414 $ 12,146,414 $ -$ Resources (Inflows):
Use of money and property 123,810 123,810 101,307 (22,503) Developer participation - - 271,311 271,311 Amounts Available for Appropriations 12,270,224 12,270,224 12,519,032 248,808 Charges to Appropriation (Outflow):
Community development 499,456 499,456 494,546 4,910 Capital outlay 5,231,200 5,531,200 589,152 4,942,048 Total Charges to Appropriations 5,730,656 6,030,656 1,083,698 4,946,958 Budgetary Fund Balance, June 30 6,539,568$ 6,239,568$ 11,435,334$ 5,195,766$ 167
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
2005 TABS FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 8,708,722$ 8,708,722 $ 8,708,722 $ -$ Resources (Inflows):
Use of money and property 107,800 107,800 74,395 (33,405) Amounts Available for Appropriations 8,816,522 8,816,522 8,783,117 (33,405) Charges to Appropriation (Outflow):
Capital outlay - 5,120,887 - 5,120,887 Total Charges to Appropriations - 5,120,887 - 5,120,887 Budgetary Fund Balance, June 30 8,816,522$ 3,695,635$ 8,783,117$ 5,087,482$ 168
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
2008 TABS FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,658,597$ 4,658,597 $ 4,658,597 $ -$ Resources (Inflows):
Use of money and property 60,570 60,570 39,797 (20,773) Amounts Available for Appropriations 4,719,167 4,719,167 4,698,394 (20,773) Charges to Appropriation (Outflow):
Capital outlay 4,550,000 4,607,763 - 4,607,763 Total Charges to Appropriations 4,550,000 4,607,763 - 4,607,763 Budgetary Fund Balance, June 30 169,167$ 111,404$ 4,698,394$ 4,586,990$ 169
CITY OF RIALTO
BUDGETARY COMPARISON SCHEDULE
1997 COP FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 682,606$ 682,606$ 682,606$ -$ Resources (Inflows):
Use of money and property 6,090 6,090 4,764 (1,326) Payment from Successor Agency 184,850 184,850 184,850 - Amounts Available for Appropriations 873,546 873,546 872,220 (1,326) Charges to Appropriation (Outflow):
Debt service:
Principal retirement 221,850 221,850 221,849 1 Interest and fiscal charges 19,935 19,935 15,633 4,302 Transfers out 14,420 14,420 14,420 - Total Charges to Appropriations 256,205 256,205 251,902 4,303 Budgetary Fund Balance, June 30 617,341$ 617,341$ 620,318$ 2,977$ 170
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171
CITY OF RIALTO
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2021
Totals
Assets:
Current:
Cash and investments 958,263 - 958,263$ Receivables:
Accounts 185 - 185 Total Current Assets 958,448 - 958,448 Noncurrent:
Capital Assets
Being depreciated (net of accumulated depreciation) 1,082 - 1,082 Total Noncurrent Assets 1,082 - 1,082 Total Assets 959,530 - 959,530 Deferred Outflows of Resources:
Pension Related Items 8,609 - 8,609 OPEB Related Items 1,404 - 1,404 Total Deferred Outflows of Resources 10,013 - 10,013 Liabilities, Deferred Inflows of Resources, and Net Position:
Liabilities:
Current:
Accounts payable 23,043 - 23,043 Accrued liabilities 355 - 355 Accrued compensated absences 182 - 182 Total Current Liabilities 23,580 - 23,580 Noncurrent:
Accrued compensated absences 825 - 825 Net Pension Liability 31,672 - 31,672 Net OPEB Liability 12,041 - 12,041 Total Noncurrent Liabilities 44,538 - 44,538 Total Liabilities 68,118 - 68,118 Deferred Inflows of Resources:
OPEB Related Items 858 - 858 Total Deferred Inflows of Resources 858 - 858 Net Position:
Net investment in capital assets 1,082 - 1,082 Unrestricted 899,485 - 899,485 Total Net Position 900,567$ -$ 900,567$ Business-Type Activities - Enterprise Funds
Cemetery
Fund
Recreation
and
Community
Service Fund
172
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Totals
Operating Revenues:
Sales and service charges 189,649 - 189,649$ Total Operating Revenues 189,649 - 189,649 Operating Expenses:
Cost of sales and services 80,675 - 80,675 Depreciation expense 381 - 381 Total Operating Expenses 81,056 - 81,056 Operating Income (Loss) 108,593 - 108,593 Nonoperating Revenues (Expenses):
Interest revenue 5,738 - 5,738 Total Nonoperating
Revenues (Expenses) 5,738 - 5,738 Income (Loss) Before Transfers 114,331 - 114,331 Transfers in 420,500 - 420,500 Changes in Net Position 534,831 - 534,831 Net Position:
Beginning of Year, as originally reported 365,736 (3,782,876) (3,417,140) Restatements - 3,782,876 3,782,876 Beginning of Fiscal Year, as restated 365,736 - 365,736 End of Fiscal Year 900,567$ -$ 900,567$ Business-Type Activities - Enterprise Funds
Cemetery
Fund
Recreation
and
Community
Service Fund
173
CITY OF RIALTO
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Totals
Cash Flows from Operating Activities:
Cash received from customers and users 189,649$ -$ 189,649$ Cash paid to suppliers for goods and services (71,173) - (71,173) Cash paid to employees for services (2,909) - (2,909) Net Cash Provided (Used) by Operating Activities 115,567 - 115,567 Cash Flows from Non-Capital
Financing Activities:
Cash paid to other funds - (529,033) (529,033) Cash received from other funds 420,500 - 420,500 Net Cash Provided (Used) by
Non-Capital Financing Activities 420,500 (529,033) (108,533) Cash Flows from Investing Activities:
Interest received 5,738 - 5,738 Net Cash Provided (Used) by
Investing Activities 5,738 - 5,738 Net Increase (Decrease) in Cash
and Cash Equivalents 541,805 (529,033) 12,772 Cash and Cash Equivalents at Beginning of Year 416,458 529,033 945,491 Cash and Cash Equivalents at End of Year 958,263$ -$ 958,263$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) 108,593$ -$ 108,593$ Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 381 - 381 (Increase) decrease in deferred outflows of resources - pension related (1,384) - (1,384) (Increase) decrease in deferred outflows of resources - OPEB related (1,176) - (1,176) Increase (decrease) in accounts payable 9,502 - 9,502 Increase (decrease) in accrued liabilities (310) - (310) Increase (decrease) in compensated absences (3,069) - (3,069) Increase (decrease) in net pension liability 2,501 - 2,501 Increase (decrease) in net opeb liability 154 - 154 Increase (decrease) in deferred inflows of resources - pension related (432) - (432) Increase (decrease) in deferred inflows of resources - OPEB related 807 - 807 Total Adjustments 6,974 - 6,974 Net Cash Provided (Used) by
Operating Activities 115,567$ -$ 115,567$ Business-Type Activities - Enterprise Funds
Cemetery Fund
Recreation and
Community
Service Fund
174
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175
CITY OF RIALTO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments 10,359,876$ 9,485 $ 1,220,436 $ 3,599,607$ Receivables:
Accounts 6,029 - - - Accrued interest 26 - 4 10 Inventories - 38,797 - - Total Current Assets 10,365,931 48,282 1,220,440 3,599,617 Noncurrent:
Capital Assets
Being depreciated (net of accumulated depreciation) - 66,545 412,267 - Total Noncurrent Assets - 66,545 412,267 - Total Assets 10,365,931$ 114,827 $ 1,632,707 $ 3,599,617 $ Deferred Outflows of Resources:
Pension Related Items 4,196$ 302,123 $ 64,326 $ 4,196$ OPEB Related Items 3,717 50,516 53,335 3,717 Total Deferred Outflows of Resources 7,913$ 352,639 $ 117,661 $ 7,913 $ Liabilities, Deferred Inflows of Resources, and Net Position:
Liabilities:
Current:
Accounts payable 57,319$ 7,186 $ 304,028 $ 308,609$ Accrued liabilities - 12,932 11,641 - Due to other funds - - - - Accrued compensated absences - 6,707 6,214 - Accrued claims and judgments 3,160,757 - - 914,111 Bonds, notes, and capital leases - 4,349 30,750 - Total Current Liabilities 3,218,076 31,174 352,633 1,222,720 Noncurrent:
Accrued compensated absences - 30,555 28,307 - Accrued claims and judgments 14,399,002 - - 4,164,286 Net Pension Liability 83,818 1,139,366 1,202,917 83,818 Net OPEB Liability 31,865 433,147 457,307 31,865 Bonds, notes, and capital leases - - - - Total Noncurrent Liabilities 14,514,685 1,603,068 1,688,531 4,279,969 Total Liabilities 17,732,761 1,634,242 2,041,164 5,502,689 Deferred Inflows of Resources:
OPEB Related Items 2,272 30,877 32,600 2,272 Total Deferred Inflows of Resources 2,272 30,877 32,600 2,272 Net Position:
Net investment in capital assets - 66,545 412,267 - Unrestricted (7,361,189) (1,264,198) (735,663) (1,897,431) Total Net Position (7,361,189) (1,197,653) (323,396) (1,897,431) Total Liabilities, Deferred Inflows of Resources, and Net Position 10,373,844 $ 467,466 $ 1,750,368 $ 3,607,530 $ Workers'
Compensation
Fund
Fleet
Management
Fund
Management
Information
System Fund
General
Liability Fund
Internal Service Funds
176
CITY OF RIALTO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
Assets:
Current:
Cash and investments
Receivables:
Accounts
Accrued interest
Inventories
Total Current Assets
Noncurrent:
Capital Assets
Being depreciated (net of accumulated depreciation)
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:
Pension Related Items
OPEB Related Items
Total Deferred Outflows of Resources
Liabilities, Deferred Inflows of Resources, and Net Position:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Due to other funds
Accrued compensated absences
Accrued claims and judgments
Bonds, notes, and capital leases
Total Current Liabilities
Noncurrent:
Accrued compensated absences
Accrued claims and judgments
Net Pension Liability
Net OPEB Liability
Bonds, notes, and capital leases
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:
OPEB Related Items
Total Deferred Inflows of Resources
Net Position:
Net investment in capital assets
Unrestricted
Total Net Position
Total Liabilities, Deferred Inflows of Resources, and Net Position Totals
-$ 15,189,404$
- 6,029
2 42
- 38,797
2 15,234,272
- 478,812
- 478,812
2$ 15,713,084$
83,772$ 458,613$
75,089 186,374
158,861$ 644,987 $
81,120$ 758,262$
21,398 45,971
133,577 133,577
18,955 31,876
- 4,074,868
- 35,099
255,050 5,079,653
86,351 145,213
- 18,563,288
1,693,590 4,203,509
643,844 1,598,028
- -
2,423,785 24,510,038
2,678,835 29,589,691
45,897 113,918
45,897 113,918
- 478,812
(2,565,869) (13,824,350)
(2,565,869) (13,345,538)
158,863$ 16,358,071 $
Building
Maintenance
Fund
Internal Service
Funds
177
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Sales and service charges 3,380,230$ 641,384 $ 2,750,720 $ 2,462,550$ Total Operating Revenues 3,380,230 641,384 2,750,720 2,462,550 Operating Expenses:
Cost of sales and services 7,683,491 682,316 2,185,051 5,343,856 Depreciation expense - 9,370 109,861 - Total Operating Expenses 7,683,491 691,686 2,294,912 5,343,856 Operating Income (Loss) (4,303,261) (50,302) 455,808 (2,881,306) Nonoperating Revenues (Expenses):
Interest revenue 84,133 - 11,750 33,679 Interest expense - (188) (1,320) - Total Nonoperating
Revenues (Expenses) 84,133 (188) 10,430 33,679 Income (Loss) Before Transfers (4,219,128) (50,490) 466,238 (2,847,627) Transfers out - (250,000) (250,000) - Changes in Net Position (4,219,128) (300,490) 216,238 (2,847,627) Net Position:
Beginning of Year (3,142,061) (897,163) (539,634) 950,196 End of Fiscal Year (7,361,189)$ (1,197,653) $ (323,396) $ (1,897,431) $ Workers'
Compensation
Fund
Fleet
Management Fund
Management
Information
System Fund
General Liability
Fund
Internal Service Funds
178
CITY OF RIALTO
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Operating Revenues:
Sales and service charges
Total Operating Revenues
Operating Expenses:
Cost of sales and services
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers out
Changes in Net Position
Net Position:
Beginning of Year
End of Fiscal Year
Totals
2,531,590$ 11,766,474$
2,531,590 11,766,474
3,079,769 18,974,483
- 119,231
3,079,769 19,093,714
(548,179) (7,327,240)
7,086 136,648
- (1,508)
7,086 135,140
(541,093) (7,192,100)
(2,000,000) (2,500,000)
(2,541,093) (9,692,100)
(24,776) (3,653,438)
(2,565,869)$ (13,345,538) $
Building
Maintenance Fund
Internal Service
Funds
179
CITY OF RIALTO
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Totals
Cash Flows from Operating Activities:
Cash received from customers and users 3,374,201$ 641,384 $ 2,750,720 $ 2,462,550 $ 2,531,590 $ 11,760,445$ Cash paid to suppliers for goods and services (2,970,735) (681,074) (1,936,554) (3,135,930) (3,198,242) (11,922,535) Cash paid to employees for services (955) (11,114) (1,236) (955) (8,122) (22,382) Cash received from (payments to) others 14,257 42,063 (511,256) 14,257 500,292 59,613 Net Cash Provided (Used) by Operating Activities 416,768 (8,741) 301,674 (660,078) (174,482) (124,859) Cash Flows from Non-Capital
Financing Activities:
Cash paid to other funds - (250,000) (250,000) - (2,000,000) (2,500,000) Cash received from other funds - - - - 133,576 133,576 Net Cash Provided (Used) by
Non-Capital Financing Activities - (250,000) (250,000) - (1,866,424) (2,366,424) Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets - - (10,304) - - (10,304) Principal paid on capital debt - (4,106) (29,045) - - (33,151) Interest paid on capital debt - (188) (1,322) - - (1,510) Net Cash Provided (Used) by
Capital and Related Financing Activities - (4,294) (40,671) - - (44,965)
Cash Flows from Investing Activities:
Interest received 96,917 247 13,419 38,797 10,088 159,468 Net Cash Provided (Used) by
Investing Activities 96,917 247 13,419 38,797 10,088 159,468 Net Increase (Decrease) in Cash
and Cash Equivalents 513,685 (262,788) 24,422 (621,281) (2,030,818) (2,376,780) Cash and Cash Equivalents at Beginning of Year 9,846,191 272,273 1,196,014 4,220,888 2,030,818 17,566,184 Cash and Cash Equivalents at End of Year 10,359,876$ 9,485$ 1,220,436$ 3,599,607$ -$ 15,189,404$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) (4,303,261)$ (50,302) $ 455,808 $ (2,881,306) $ (548,179) $ (7,327,240)$ Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation - 9,370 109,861 - - 119,231 (Increase) decrease in accounts receivable (6,029) - - - - (6,029) (Increase) decrease in inventories - (58) - - - (58) (Increase) decrease in deferred outflows of resources - pension related (3,664) (49,801) (52,579) (3,664) (74,026) (183,734) (Increase) decrease in deferred outflows of resources - OPEB re lated (3,186) (42,404) (41,604) (3,186) (65,356) (155,736) Increase (decrease) in accounts payable 38,937 1,300 248,497 76,352 (118,473) 246,613 Increase (decrease) in accrued liab ilities (955) (11,114) (1,236) (955) (8,122) (22,382) Increase (decrease) in claims and judgments 4,673,819 - - 2,131,574 - 6,805,393 Increase (decrease) in compensated absences - 9,039 27,804 - 29,985 66,828 Increase (decrease) in net pension liab ility 15,805 101,335 (298,274) 15,805 448,056 282,727 Increase (decrease) in net opeb liab ility 4,158 10,230 (154,310) 4,158 136,390 626 Increase (decrease) in deferred inflows of resources - pension related (1,008) (15,388) (22,254) (1,008) (18,464) (58,122) Increase (decrease) in deferred inflows of resources - OPEB rel ated 2,152 29,052 29,961 2,152 43,707 107,024 Total Adjustments 4,720,029 41,561 (154,134) 2,221,228 373,697 7,202,381 Net Cash Provided (Used) by
Operating Activities 416,768$ (8,741)$ 301,674$ (660,078)$ (174,482)$ (124,859)$ Governmental Activities - Internal Service Funds
Workers'
Compensation
Fund
Fleet
Management
Fund
Management
Information
System Fund
General
Liability Fund
Building
Maintenance
Fund
180
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181
CITY OF RIALTO
COMBINING STATEMENT OF NET POSITION
ALL CUSTODIAL FUNDS
JUNE 30, 2021
Totals
Assets:
Pooled cash and investments 68,146$ 587,701$ 28,519$ 684,366$ Receivables:
Accrued interest - 1 - 1 Due from other governments - - 156 156 Restricted assets:
Cash and investments with fiscal agents - 453,510 - 453,510 Total Assets 68,146$ 1,041,212$ 28,675$ 1,138,033$ Liabilities:
Accounts payable -$ 1,500$ 1,375$ 2,875$ Bonds Payable - 4,384,400 - 4,384,400 Total Liabilities -$ 4,385,900$ 1,375$ 4,387,275$ Net Position:
Held in trust for other purposes 68,146$ (3,344,688)$ 27,300$ (3,249,242)$ Total Net Position 68,146$ (3,344,688)$ 27,300$ (3,249,242)$ Community
Facilities District
(CFD) 87-1 Fund
Community
Facilities District
(CFD) 2006-1 Elm
Park Fund
Community
Facilities District
(CFD) 2016-1
182
CITY OF RIALTO
STATEMENT OF CHANGES IN NET POSITION
CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2021
Additions:
Taxes 311$ 471,827$ 43,719$ 515,857$ Interest and change in fair value of investments 576 3,697 1,169 5,442 Total Additions 887 475,524 44,888 521,299 Deductions:
Administrative expenses - 144,375 5,500 149,875 Interest expense - 181,528 - 181,528 Contributions to other governments - - 28,755 28,755 Total Deductions - 325,903 34,255 360,158 Changes in Net Position 887 149,621 10,633 161,141 Net Position - Beginning of the Year - - - - Restatement of Net Position 67,259 (3,494,309) 16,667 (3,410,383) Net Position - Beginning, as Restated 67,259 (3,494,309) 16,667 (3,410,383) Net Position - End of the Year 68,146$ (3,344,688)$ 27,300$ (3,249,242)$ Community
Facilities District
(CFD) 2006-1 Elm
Park Fund
Community
Facilities District
(CFD) 87-1 Fund
Community
Facilities District
(CFD) 2016-1 Total
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184
STATISTICAL SECTION
185
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186
Financial Trends
These schedules contain trend information to help readers understand how the City’s financial performance and well-being have changed over time.
187
City of Rialto
Schedule: 1
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 163,723,392$ 168,193,443$ 174,199,279$ 182,925,420$ 203,745,887$ Restricted 39,832,021
72,472,077 68,118,579 73,952,529 75,922,532 Unrestricted 39,481,946 44,622,614 47,463,243 (54,942,162) (51,933,755) Total governmental activities net position 243,037,359 285,288,134 289,781,101 201,935,787 227,734,664 Business-type activities
Net investment in capital assets 80,648,318 65,682,237 63,007,943 61,880,161 62,092,586 Restricted - - - 23,103,406 23,762,159 Unrestricted 16,056,356 (17,512,844) (46,850,667) (71,217,677) (75,195,998) Total business-type activities net position 96,704,674 48,169,393 16,157,276 13,765,890 10,658,747 Primary government
Net investment in capital assets 244,371,710 233,875,680 237,207,222 244,805,581 265,838,473 Restricted 39,832,021 72,472,077 68,118,579 97,055,935 99,684,691 Unrestricted 55,538,302 27,109,770 612,576 (126,159,839) (127,129,753) Total primary government net position 339,742,033$ 333,457,527$ 305,938,377$ 215,701,677$ 238,393,411$ Source: City of Rialto Comprehensive Annual Reports
Fiscal Year
188
City of Rialto
Schedule: 1
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities
Net investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Source: City of Rialto Comprehensive Annual Reports
2017 2018 2019 2020 2021
209,841,810$ 219,905,555$ 241,566,979$ 265,229,119$ 274,462,552$ 96,873,256 110,510,600 119,177,499 136,353,586 170,018,766 (39,451,355) (70,806,076) (64,406,001) (78,272,477) (99,888,422) 267,263,711 259,610,079 296,338,477 323,310,228 344,592,896 62,212,159 90,709,466 106,102,033 118,019,612 116,338,883 20,161,874 22,666,881 22,774,070 25,815,406 73,004 (71,769,191) (102,644,912) (113,779,243) (127,016,385) (90,838,198) 10,604,842 10,731,435 15,096,860 16,818,633 25,573,689 272,053,969 310,615,021 347,669,012 383,248,731 390,801,435 117,035,130 133,177,481 141,951,569 162,168,992 170,091,770 (111,220,546) (173,450,988) (178,185,244) (205,288,862) (190,726,620) 277,868,553$ 270,341,514$ 311,435,337$ 340,128,861$ 370,166,585$ Fiscal Year
189
City of Rialto
Schedule: 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
2012 2013 2014 2015 2016
Expenses
Governmental Activities
General government 18,320,228$ 11,385,776$ 16,831,207$ 22,194,069$ 12,838,348$ Community development 16,311,195 7,815,876 14,622,817 18,152,493 20,547,780 Public safety 39,141,965 39,248,802 39,676,536 40,057,540 45,270,584 Payment to successor agency - 921,450 - 1,270,167 1,295,583 Interest on long term debt 2,065,971 249,424 154,834 169,166 96,659 Total governmental activities expenses 75,839,359 59,621,328 71,285,394 81,843,435 80,048,954 Business-type activities
Water 12,141,122 15,596,613 12,750,105 12,999,577 12,069,588 Wastewater 9,076,667 21,111,279 23,015,470 23,463,015 24,350,919 Airport 254,176 451,183 388,963 4,373,243 207,934 Cemetery 36,559 46,086 49,255 52,738 51,758 Recreation & Community Service 2,634,024 2,586,330 2,335,258 2,640,280 3,234,840 Total business-type activities expenses 24,142,548 39,791,491 38,539,051 43,528,853 39,915,039 Total primary government expenses 99,981,907$ 99,412,819$ 109,824,445$ 125,372,288$ 119,963,993$ Program revenues
Governmental activities
Charges for services
General government 891,137$ 1,882,740$ 811,456$ 804,526$ 1,606,496$ Community Development 2,583,136 1,914,371 12,026,114 14,560,867 10,906,447 Public Safety 2,795,262 4,005,618 2,854,087 3,006,101 3,023,995 Operating grants and contributions 17,890,543 4,587,822 7,032,129 10,480,851 9,222,678 Capital grants and contributions 5,565,842 5,926,508 4,939,898 4,504,424 4,548,560 Total governmental activities program revenues 29,725,920 18,317,059 27,663,684 33,356,769 29,308,176 Business-type activities
Charges for services
Water 8,399,411 8,840,946
9,970,145 12,082,146 12,225,769
Wastewater 11,197,115 12,811,692 17,281,060 22,492,901 22,482,683 Airport 182,456 522,259 485,785 128,387 58,785 Cemetery 36,978 35,334 23,710 32,419 39,624 Recreation & community service 956,929 901,593 898,633 883,489 838,665 Capital grants and contributions - - - - - Total Business-type Activities program revenues 20,772,889 23,111,824 28,659,333 35,619,342 35,645,526 Total primary government program revenues 50,498,809$ 41,428,883$ 56,323,017$ 68,976,111$ 64,953,702$ Fiscal Year
190
City of Rialto
Schedule: 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Expenses
Governmental Activities
General government
Community development
Public safety
Payment to successor agency
Interest on long term debt
Total governmental activities expenses
Business-type activities
Water
Wastewater
Airport
Cemetery
Recreation & Community Service
Total business-type activities expenses
Total primary government expenses
Program revenues
Governmental activities
Charges for services
General government
Community Development
Public Safety
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities
Charges for services
Water
Wastewater
Airport
Cemetery
Recreation & community service
Capital grants and contributions
Total Business-type Activities program revenues
Total primary government program revenues
2017 2018 2019 2020 2021
27,670,283$ 19,885,751$ 23,994,846$ 26,797,603$ 24,316,508$ 28,506,818 29,404,226 19,645,409 19,471,093 25,386,976 52,952,706 53,055,098 58,199,681 61,186,234 75,464,556 - - - - - 84,307 323,872 479,445 263,664 507,718 109,214,114 102,668,947 102,319,381 107,718,594 125,675,758 12,740,471 13,832,547 13,178,151 13,668,540 13,619,253 24,200,053 23,397,142 23,016,838 26,260,393 23,412,695 10,929 127,653 45,491 4,341 4,449 80,900 65,397 78,817 72,119 81,056 3,572,043 3,456,616 3,836,329 3,557,900 - 40,604,396 - 40,879,355 40,155,626 43,563,293 37,117,453 149,818,510$ 143,548,302$ 142,475,007$ 151,281,887$ 162,793,211$ 1,122,310$ 1,637,935$ 4,173,279$ 956,301$ 1,466,798$ 48,620,952 26,054,877 26,778,267 22,278,219 14,454,456 3,111,112 3,439,943 3,849,026 4,289,038 4,202,468 10,058,467 17,599,694 12,996,451 15,536,989 17,129,967 3,901,780 5,774,075 6,634,323 5,698,306 8,694,737 66,814,621 54,506,524 54,431,346 48,758,853 45,948,426 13,119,637 14,856,800 13,648,249 13,952,308 15,085,653 25,954,797 28,939,501 28,813,463 29,191,221 28,381,428 32,979 159,342 50,523 - - 65,867 46,319 56,752 46,620 189,649 895,340 758,012 825,550 541,213 353,470 131,896 203,653 27,417 40,422,090 44,891,870 43,598,190 43,758,779 43,656,730 107,236,711$ 99,398,394$ 98,029,536$ 92,517,632$ 89,605,156$ Fiscal Year
191
City of Rialto
Schedule: 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
2012 2013 2014 2015 2016
Fiscal Year
General revenues and other changes in net position
Governmental Activities
Taxes
Property taxes 25,514,250$ 18,808,829$ 17,251,658$ 19,568,841$ 20,895,499$ Franchise and Transient Occupancy taxes 3,235,911 3,113,227 2,368,377 3,659,305 3,750,460 Utility users taxes 11,082,948 11,253,197 12,191,859 12,634,013 12,670,892 Business license taxes 1,436,800 1,532,412 2,196,779 2,131,574 2,237,639 Sales & use tax 10,736,135 10,310,901 11,523,017 12,023,147 11,893,381 Vehicle license fees 101,174 42,966 - 41,566 41,192 Income for property and investments 591,646 (255,146) 965,960 504,777 1,362,960 Other general revenue 2,701,950 3,780,116 4,698,926 5,260,920 4,204,699 RUA lease payments - 34,000,000 2,000,000 2,568,030 2,000,000 RUA contract payments - - 824,032 1,230,626 1,167,530 Transfers 631,463 2,551,344 (1,182,645) 3,407,429 (2,140,364) Gain on sale of property 3,975 208,784 - - - Payment from successor agency (2,212,501) - 185,982 572,154 185,366 Extra-ordinary gain 56,660,300 - - - 14,289,617 Capital contribution - - - 3,344,082 4,296,048 Total governmental activities program revenues 110,484,051 85,346,630 53,023,945 66,946,464 76,854,919 Business-type activities:
Property taxes 16,472 13,361 11,593 45,210 1,478 Income for property and investments 270,502 (403,262) 746,964 88,329 184,391 Other general revenue 96,157 727,209 608,509 117,870 104,060 RUA lease payments - (34,000,000) (2,000,000) (2,568,030) (2,000,000) Transfers (631,463) (2,551,344) 1,182,645 (3,407,429) 2,140,364 Gain on sale of property - 538,870 - 9,854,563 345,213 Distribution of airport property from successor agency - 13,764,414 - - - Capital contribution - - - 1,387,612 386,864 Total business-type activities (248,332) (21,910,752) 549,711 5,518,125 775,506 Total primary government 110,235,719$ 63,435,878$ 53,573,656$ 72,464,589$ 775,506$ Net revenue (expense)
Governmental activities (46,113,439)$ (41,304,269)$ (43,621,710)$ (48,486,666)$ (50,740,778)$ Business-type activities (3,369,659) (16,679,667) (9,879,718) (7,909,511) (4,269,513) Total primary government (49,483,098)$ (57,983,936)$ (53,501,428)$ (56,396,177)$ (55,010,291)$ Change in net position
Governmental activities 64,370,612$ 44,042,361$ 9,402,235$ 18,459,798$ 26,114,141$ Business-type activities (3,617,991) (38,590,419) (9,330,007) (2,391,386) (3,494,007) Total primary government 60,752,621$ 5,451,942$ 72,228$ 16,068,412$ 22,620,134$ Source: City of Rialto Comprehensive Annual Reports
192
City of Rialto
Schedule: 2
Changes in Net Position
Last Ten Fiscal Years (accrual basis of accounting)
Expenses
General revenues and other changes in net position
Governmental Activities
Taxes
Property taxes
Franchise and Transient Occupancy taxes
Utility users taxes
Business license taxes
Sales & use tax
Vehicle license fees
Income for property and investments
Other general revenue
RUA lease payments
RUA contract payments
Transfers
Gain on sale of property
Payment from successor agency
Extra-ordinary gain
Capital contribution
Total governmental activities program revenues
Business-type activities:
Property taxes
Income for property and investments
Other general revenue
RUA lease payments
Transfers
Gain on sale of property
Distribution of airport property from successor agency
Capital contribution
Total business-type activities
Total primary government
Net revenue (expense)
Governmental activities
Business-type activities
Total primary government
Change in net position
Governmental activities
Business-type activities
Total primary government
Source: City of Rialto Comprehensive Annual Reports
2017 2018 2019 2020 2021
Fiscal Year
22,306,582$ 25,201,016$ 29,311,614$ 30,093,522$ 32,693,790$ 3,640,100 3,955,968 3,962,647 4,163,993 4,704,132 12,731,020 13,592,657 13,035,913 13,664,176 14,470,386 2,343,824 2,660,329 3,024,804 3,642,829 3,028,073 14,532,085 17,593,261 22,603,061 22,771,751 40,094,356 48,082 56,075 51,380 84,900 76,683 267,929 1,228,983 5,175,470 4,306,121 947,669 4,529,579 6,000,699 4,911,931 6,094,131 7,588,318 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 1,167,530 742,000 742,000 1,140,530 1,141,212 17,784,644 3,963,598 (409,255) (3,035,335) (420,500) 2,851 475,967 19,002 (101,262) - 574,314 187,299 187,866 188,166 184,850 - - - - - - - - - - 81,928,540 77,657,852 84,616,433 85,013,522 106,508,969 894 198 20 20 - 85,953 363,912 478,837 373,688 12,403 1,616,184 543,708 605,712 171,330 - (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (17,784,644) (3,963,598) 409,255 3,035,335 420,500 18,210,014 6,730,559 1,429,037 (54,086) - - - - - - - - - - - 128,401 1,674,779 922,861 1,526,287 (1,567,097) 131,252$ 2,150,746$ 85,539,294$ 86,539,809$ 104,941,872$ (42,399,493)$ (48,162,423)$ (47,888,035)$ (58,959,741)$ (79,727,332)$ (182,306) 4,012,515 3,442,564 195,486 6,539,277 (42,581,799)$ (44,149,908)$ (44,445,471)$ (58,764,255)$ (73,188,055)$ 39,529,047$ 29,495,429$ 36,728,398$ 26,053,781$ 26,781,637$ (53,905) 5,687,294 4,365,425 1,721,773 4,972,180 39,475,142$ 35,182,723$ 41,093,823$ 27,775,554$ 31,753,817$ 193
City of Rialto
Schedule: 3
Fund Balances - Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016
General fund
Nonspendable 5,185,796$ 7,907,132$ 6,511,485$ 1,964,366$ 1,964,563$ Restricted - - - - - Committed 1,372,061 4,066,479 5,082,685 3,285,133 4,377,737 Unassigned 30,994,690 36,564,055 43,778,202 53,786,818 50,372,278 Total general fund 37,552,547 48,537,666 55,372,372 59,036,317 56,714,578 All other governmental fund
Nonspendable - 160,190 - - - Restricted 38,942,322 67,517,079 68,096,181 73,660,309 73,272,530 Assigned 268,290 - - - - Unassigned (807,897) (110,759) (227,868) (1,847,051) (554,749) Total all other governmental fund 38,402,715 67,566,510 67,868,313 71,813,258 72,717,781 Total governmental funds 75,955,262$ # 116,104,176$ # 123,240,685$ # 130,849,575$ # 129,432,359$ Source: City of Rialto Comprehensive Annual Reports
Fiscal Year
194
City of Rialto
Schedule: 3
Fund Balances - Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
General fund
Nonspendable
Restricted
Committed
Unassigned
Total general fund
All other governmental fund
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental fund
Total governmental funds
Source: City of Rialto Comprehensive Annual Reports
2017 2018 2019 2020 2021
3,527,188$ 6,252,083$ 24,252,395$ 24,399,474$ 24,435,932$ - - - - 25,773,249 5,132,711 23,023,387 14,268,248 12,214,045 12,214,045 60,711,353 43,705,317 43,978,540 50,907,994 42,163,748 69,371,252 72,980,787 82,499,183 87,521,513 104,586,974 1,313 481,406 485,030 - - 96,816,213 91,753,133 119,177,499 136,353,586 144,245,517 - - - - - (2,147,038) (2,249,281) (624,687) (13,747,345) (12,806,598) 94,670,488 89,985,258 119,037,842 122,606,241 131,438,919 164,041,740$ # 162,966,045$ 201,537,025$ 210,127,754$ 236,025,893$ Fiscal Year
195
City of Rialto
Schedule: 4
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
2012 2013 2014 2015 2016
Revenues:
Taxes 50,570,048$ 43,675,907$ 44,289,183$ 47,969,828$ 49,351,847$ License and permits 1,907,240 1,983,341 3,486,675 3,824,815 3,808,922 Fines and forfeitures 394,716 573,951 733,014 616,694 545,896 Use of money and property 591,644 (258,630) 961,747 467,654 1,357,158 Revenue from other agencies 24,833,462 12,364,007 14,957,790 17,521,724 17,481,364 Charges for services 2,779,356 2,840,395 5,455,564 6,464,406 7,577,603 Development impact fees 1,904,945 1,783,001 7,526,709 8,448,681 4,087,903 RUA lease payments - 34,000,000 2,000,000 2,568,030 2,000,000 Reimbursement from successor agency for expenditures - 441,300 185,981 792,153 185,367 Other 2,204,652 3,670,379 3,237,598 2,874,680 4,081,234 Payment from successor agency of bond proceeds - - - - - Total revenues 85,186,063 101,073,651 82,834,261 91,548,665 90,477,294 Expenditures:
General government 12,840,658 8,949,820 13,807,651 16,572,095 15,388,037 Public safety 36,883,364 36,761,021 38,954,995 40,702,413 44,662,648 Community Development 7,707,566 6,505,080 6,870,797 14,659,256 11,317,119 Payment to successor agency for disallowed items - 921,450 - 1,270,167 1,295,583 Capital outlay 21,287,927 11,305,081 17,520,528 12,266,733 29,951,173 Debt service:
Principal Retirement 3,237,594 410,493 427,965 449,876 350,700 Interest and fiscal charges 5,275,758 222,329 191,701 173,530 128,156 Bond issuance cost - - - - - Total Expenditures 87,232,867 65,075,274 77,773,637 86,094,070 103,093,416 Other financing sources/ (uses):
Proceeds from sale of capital assets 3,975 26,283 8,652 9,163 33,147 Proceeds from Margin Loan - - - - - Payment to refunded note payable escrow agent - - - (1,702,000) - Capital lease 438,327 - - - - Transfers in 23,360,038 38,153,746 5,740,301 14,513,703 13,431,644 Transfers out (25,297,731) (34,029,492) (3,673,068) (12,572,830) (16,240,238) Transfers to private-purpose trust fund (2,212,501) - - - - Proceeds from note payable issuance - - - 1,702,000 - Total other financing (3,707,892) 4,150,537 2,075,885 1,950,036 (2,775,447) Extraordinary gain (loss) (109,556,318) - - - - Net change in fund balance (115,311,014)$ 40,148,914$ 7,136,509$ 7,404,631$ (15,391,569)$ Debt service as a percentage of
noncapital expenditures 11.60% 1.18% 0.93% 0.82% 0.46%
Source: City of Rialto Comprehensive Annual Reports
Fiscal Year
196
City of Rialto
Schedule: 4
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
Revenues:
Taxes
License and permits
Fines and forfeitures
Use of money and property
Revenue from other agencies
Charges for services
Development impact fees
RUA lease payments
Reimbursement from successor agency for expenditures
Other
Payment from successor agency of bond proceeds
Total revenues
Expenditures:
General government
Public safety
Community Development
Payment to successor agency for disallowed items
Capital outlay
Debt service:
Principal Retirement
Interest and fiscal charges
Bond issuance cost
Total Expenditures
Other financing sources/ (uses):
Proceeds from sale of capital assets
Proceeds from Margin Loan
Payment to refunded note payable escrow agent
Capital lease
Transfers in
Transfers out
Transfers to private-purpose trust fund
Proceeds from note payable issuance
Total other financing
Extraordinary gain (loss)
Net change in fund balance
Debt service as a percentage of
noncapital expenditures
Source: City of Rialto Comprehensive Annual Reports
2017 2018 2019 2020 2021
53,355,191$ 60,427,658$ 68,925,128$ 70,708,910$ 92,012,448$ 4,024,422 5,324,291 5,489,889 5,751,170 5,354,961 555,621 690,784 542,765 504,431 567,929 263,039 1,228,984 5,175,470 4,306,120 811,021 18,783,546 26,053,438 21,214,497 26,281,864 26,528,678 30,707,457 10,466,109 11,961,147 9,828,413 9,863,275 17,997,408 15,142,316 14,941,991 13,181,947 5,004,302 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 186,465 1,027,556 566,570 - - 2,908,148 2,747,683 4,836,900 2,736,063 2,357,330 387,848 187,299 187,866 188,166 184,850 131,169,145 125,296,118 135,842,223 135,487,084 144,684,794 21,733,446 17,701,523 16,214,741 17,995,882 18,943,831 51,846,210 53,779,614 54,511,656 59,131,345 65,497,820 12,518,908 11,328,676 13,263,056 13,304,328 21,257,219 - - - - - 28,242,499 40,900,743 31,791,171 33,532,966 12,594,240 371,400 514,129 4,454,983 601,548 892,960 78,602 335,372 460,562 229,063 492,341 35,000 38,165 23,901 - - 114,826,065 124,598,222 120,720,070 124,795,132 119,678,411 38,047 503,191 19,002 16,112 308,727 - 3,627,382 5,556,613 - - - - - - - 2,455,000 6,109,580 - - - 27,002,864 13,175,693 133,156,834 8,370,268 6,393,761 (11,229,610) (11,173,981) (134,041,089) (11,405,603) (4,314,261) - - - - - - - - - - 18,266,301 12,241,865 4,691,360 (3,019,223) 2,388,227 - - - - - 34,609,381$ 12,939,761 $ 19,813,513 $ 7,672,729 $ 27,394,610 $
0.39% 0.68% 5.25% 0.86% 1.30%
Fiscal Year
197
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198
Revenue Capacity
These schedules contain information to help readers assess the City’s most significant local revenue source.
199
City of Rialto
Schedule: 5
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
2012 2013 2014 2015 2016
Residential property 3,195,189,715$ 3,255,372,602$ 3,460,403,021$ 3,706,976,516$ 3,916,404,105$ Industrial property 1,126,462,532 1,115,863,666 1,101,972,851 1,316,782,787 1,469,439,116 Unsecured 422,947,049 529,395,064 517,585,920 578,031,980 646,168,256 Commercial property 408,012,403 402,250,052 418,964,698 430,855,054 441,266,751 Vacant land 316,971,340 312,032,595 362,960,175 370,078,941 400,090,232 Other property 76,446,218 83,542,480 56,873,342 61,257,108 64,591,692 Total taxable assessed value 5,546,029,257$ 5,698,456,459$ 5,918,760,007$ 6,463,982,386$ 6,937,960,152$ Total direct tax tate 1% 1% 1% 1% 1%
Estimated actual taxable value 5,546,029,257$ 5,698,456,459$ 5,918,760,007$ 6,463,982,386$ 6,937,960,152$ NOTE 1: 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.
NOTE 2: Other property includes recreational, institutional, government owned, SBE nonunitary, irrigated, dry farm and miscellaneous property
Sources: HdL Coren & Cone ( San Bernardino County Assessor) Fiscal Year
200
City of Rialto
Schedule: 5
Assessed Value and Estimated
Last Ten Fiscal Years
Residential property
Industrial property
Unsecured
Commercial property
Vacant land
Other property
Total taxable assessed value
Total direct tax tate
Estimated actual taxable value
2017 2018 2019 2020 2021
4,071,652,098$ 4,271,585,009 $ 4,529,588,227 $ 4,787,119,436 $ 5,054,253,389 $ 1,709,081,286 1,774,160,516 2,509,149,092 3,043,673,505 3,160,476,226 659,303,329 801,999,612 868,370,316 912,396,270 1,240,843,552 461,815,727 499,561,220 604,256,834 698,917,953 743,832,711 355,270,288 482,573,026 528,378,416 456,048,337 500,528,086 80,484,157 77,873,664 106,523,764 124,029,997 130,876,863 7,337,606,885$ 7,907,753,047 $ 9,146,266,649 $ 10,022,185,498 $ 10,830,810,827 $ 1% 1% 1% 1% 1%
7,337,606,885$ 7,907,753,047 $ 9,146,266,649 $ 10,022,185,498 $ 10,830,810,827 $ NOTE 1: 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.
NOTE 2: Other property includes recreational, institutional, government owned, SBE nonunitary, irrigated, dry farm and miscellaneous property
Sources: HdL Coren & Cone ( San Bernardino County Assessor) Fiscal Year
201
City of Rialto
Schedule: 6
Property Tax Rates
Direct & Overlapping Governments
Last Ten Fiscal Years
(rate per $100 of assessed value)
2012 2013 2014 2015 2016
Basic Levy
City of Rialto 0.13642 0.13642 0.13642 0.13642 0.13642 County Free Library 0.01441 0.01441 0.01441 0.01441 0.01441 County General Fund 0.14883 0.14883 0.14883 0.14883 0.14883 County Superintendant of Schools 0.01013 0.01013 0.01013 0.01013 0.01013 Education Revenue Augmentation Fund 0.22536 0.22536 0.22536 0.22536 0.22536 Flood Control Admin 1 & 2 0.00186 0.00186 0.00186 0.00186 0.00186 Flood Control Zone 2 0.02642 0.02642 0.02642 0.02642 0.02642 Inland Empire Joint Resource Cons District 0.00053 0.00053 0.00053 0.00053 0.00053 Rialto Unified 0.32757 0.32757 0.32757 0.32757 0.32757 San Bernardino Community College 0.05230 0.05230 0.05230 0.05230 0.05230 San Bernardino Valley Municipal Water 0.02692 0.02692 0.02692 0.02692 0.02692 West San Bernardino Co Water District 0.02925 0.02925 0.02925 0.02925 0.02925 Total direct tax rate 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping rates:
Rialto Unified School District 0.08560 0.07360 0.07040 0.06550 0.11940 San Bernardino College Board 0.03730 0.04590 0.04190 0.03930 0.04030 San BernardinoValley Water 0.16500 0.16250 0.16250 0.16250 0.16250 Total Direct & Overlapping Tax Rates 1.28790 # 1.28200 # 1.27480 # 1.26730 # 1.32220 Sources:
San Bernardino County Auditor-Controller/Treasusrer/Tax Collector http://www.sbcounty.gov/ATC/Services/Documents?expandID=10#xpand-10 HdL Coren & Cone ( San Bernardino County Assessor)
Fiscal Year
202
City of Rialto
Schedule: 6
Property Tax Rates
Direct & Overlapping Governments
Last Ten Fiscal Years
(rate per $100 of assessed value)
Basic Levy
City of Rialto
County Free Library
County General Fund
County Superintendant of Schools
Education Revenue Augmentation Fund
Flood Control Admin 1 & 2
Flood Control Zone 2
Inland Empire Joint Resource Cons District
Rialto Unified
San Bernardino Community College
San Bernardino Valley Municipal Water
West San Bernardino Co Water District
Total direct tax rate
Overlapping rates:
Rialto Unified School District
San Bernardino College Board
San BernardinoValley Water
Total Direct & Overlapping Tax Rates
Sources:
San Bernardino County Auditor-Controller/Treasusrer/Tax Collector http://www.sbcounty.gov/ATC/Services/Documents?expandID=10#xpand-10 HdL Coren & Cone ( San Bernardino County Assessor)
2017 2018 2019 2020 2021
0.13642 0.13642 0.13642 0.13642 0.13642
0.01441 0.01441 0.01441 0.01441 0.01441
0.14883 0.14883 0.14883 0.14883 0.14883
0.01013 0.01013 0.01013 0.01013 0.01013
0.22536 0.22536 0.22536 0.22536 0.22536
0.00186 0.00186 0.00186 0.00186 0.00186
0.02642 0.02642 0.02642 0.02642 0.02642
0.00053 0.00053 0.00053 0.00053 0.00053
0.32757 0.32757 0.32757 0.32757 0.32757
0.05230 0.05230 0.05230 0.05230 0.05230
0.02692 0.02692 0.02692 0.02692 0.02692
0.02925 0.02925 0.02925 0.02925 0.02925
1.00000 1.00000 1.00000 1.00000 1.00000
0.09920 0.09570 0.07710 0.08480 0.08050
0.03500 0.03790 0.04070 0.05620 0.06510
0.16250 0.15250 0.15250 0.14250 0.14250
1.29670 1.28610 1.27030 1.28350 1.28810
Fiscal Year
203
City of Rialto
Schedule: 7
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
Assessed of Total City Assessed of Total City
Value Rank Assessed Value Value Rank Assessed Value
Tax Payer
Target Corporation 501,696,784$ 1 4.63% 216,743,986 $ 1 3.86% Prologis-Macquarie U S LLC 409,234,646 2 3.78%
Amazon Com Services Inc 258,397,020 3 2.39%
GPT BTS Linden Avenue Owner 218,213,944 4 2.01% Teachers Insurance And Annuity Assoc 195,627,670 5 1.81% Liberty Property LP 163,338,943 6 1.51%
Fedex Ground Package System Inc 159,937,313 7 1.48% 67,180,502 6 1.20% Medline Industires Inc 153,730,555 8 1.42%
Niagra Bottling LLC 150,302,653 9 1.39%
Rialto Renaissance LLC 94,832,165 10 0.88%
Prologis 200,557,519 2 3.57%
Enertech Environmental Inc 85,467,004 3 1.52%
Oakmont El Rivino LLC 77,831,351 4 1.39%
California East Kline Ranch LP 72,000,000 5 1.28% Toys R US-Delaware Inc 62,465,014 7 1.11%
SFPP LP 41,727,628 8 0.74%
Staples The Office Superstore Inc 38,885,985 9 0.69% Rialto II Realty Holding Company INC 34,000,000 10 0.61% Total 2,305,311,693$ 21.30% 896,858,989 $ 15.97% Sources: HdL Coren & Cone
2021 2011
204
City of Rialto
Schedule: 8
Principal Sales Tax Payers
Current Year and Nine Years Ago
2021 2012
7 Eleven 7 Eleven
Amazon Com Services 7 Eleven Store
Amazon MFA American Building Supply
Arco AM PM Amerigas Propane
Boral Roofing Arco
Burlington Arco AM PM
Cal Duct Arco Am Pm
Camblin Steel Service Arco AM PM
CarFAM Chevron
Chevron Cummins Cal Pacific
dd's Discounts Enterprise Rent A Car
Enterprise Rent A Car Fedex
Flyers Energy Lubricants Home Depot
Food 4 Less Merit Oil
Goodfellow Crushers Pacific Chevron
Home Depot Pacific Chevron
Medline Industries Poma Automated Fueling
Merit Oil Rialto Concrete Products
Opex Corporation Ross
Orange County Lumber State Pipe & Supply
Rialto Travel Center Stater Bros
Stater Bros Tesoro Refining & Marketing
Thompson Pipe Group Los Angeles Walgreens
Walmart Neighborhood Market Walmart
Zara Warehouse Western Refining Wholesale
NOTE: Firms listed alphabetically.
Sources: The HdL Companies; State Board of Equalization 205
City of Rialto
Schedule: 9
Property Tax Levies and Collections
Last Ten Years
Fiscal Taxes Levied Collections
Year Ended for the Percent in Subsequent Percent
June 30 Fiscal year Amount of Levy Years Amount of Levy 2012 19,467,112 18,698,687 96.05% 768,425 19,467,112 100.00% 2013 22,604,425 22,503,375 99.55% 101,049 22,604,425 100.00% 2014 21,095,830 20,913,162 99.13% 182,668 21,095,830 100.00% 2015 24,231,424 24,045,621 99.23% 185,803 24,231,424 100.00% 2016 23,902,218 23,750,424 99.36% 151,765 23,902,189 100.00% 2017 23,719,160 23,608,043 99.53% 110,730 23,718,773 100.00% 2018 31,445,680 31,292,569 99.51% 152,743 31,445,312 100.00% 2019 34,643,458 34,544,095 99.71% 99,342 34,643,437 100.00% 2020 37,223,333 37,079,154 99.61% 144,179 37,223,333 100.00% 2021 39,826,549 39,708,855 99.70% 117,694 39,826,549 100.00% NOTE: Amounts exclude debt service levies and former Redevelopment property tax increments.
Source: County of San Bernardino Auditor-Controller; City of Rialto Finance Collected with the
Fiscal Year of Levy Total Collections to Date
206
Debt Capacity
These schedules present information to help readers assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
207
City of Rialto
Schedule: 10
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Tax Certificate Total
Fiscal Allocation of Capital Notes Governmental
Year Bonds Participation Lease Payable Other Activities 2012 -$ 1 2,241,504$ 331,033$ 2,146,000$ -$ 4,718,538$ 2013 - 1 2,054,115 223,840 2,008,000 - 4,285,956 2014 - 1 1,880,000 113,526 1,860,000 - 3,853,526 2015 - 1 1,675,000 - 1,702,000 - 3,377,000 2016 - 1 1,465,000 - 1,534,000 - 2,999,000 2017 - 1 1,245,000 2,455,000 1,354,000 - 5,054,000 2018 - 1 1,015,000 8,442,551 1,162,000 3,627,382 14,246,933 2019 - 1 775,000 11, 795,691 2,732,000 - 15,302,691 2020 - 1 525,000 11, 485,311 2,514,000 - 14,524,311 2021 - 1 270,000 11, 128,200 2,200,000 - 13,598,200 Installment Total Total Percentage Debt
Fiscal Revenue Agreement Notes Business-type Primary of Personal per Year Bonds Payable Payable Other Activities Government Income2 Capita2 2012 - 3,241,394 24,814,706 455,029 28,511,129 33,229,667 2.34% 329.74 2013 167,706,120 - - 455,029 168,161,149 172,447,105 10. 92% 1,697.03 2014 166,082,170 - - 455,029 166,537,199 170,390,725 10. 83% 1,670.14 2015 164,507,959 - - 455,029 164,962,988 168,339,988 10. 12% 1,640.50 2016 162,733,776 - - 383,555 163,117,331 166,116,331 9.42% 1,600.50 3 2017 160,815,578 - - 383,555 161,199,133 166,253,133 9.25% 1,581.75 3 2018 158,741,386 - - 383,555 159,124,941 173,371,874 9.07% 1,638.29 3 2019 156,498,210 - - 383,555 156,881,765 172,184,456 8.49% 1,622.32 3 2020 154,071,953 - - 383,555 154,455,508 168,979,819 7.31% 1,616.21 2021 151,447,322 - - 383,555 151,830,877 165,429,077 7.73% 1,582.25 NOTES: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. 1No longer reported under governmental activities as the result of the dissolution of the former City of Rialto Redevelopment Agency as of February 1, 2012.
2 See the Demographic and Economic Statistics Schedule ( schedule 15) for personal income and population data. 3 Percentage of personal income and debt per capita for fiscal year 2019, were calculated using income and population for the prior calendar year.
Source: City of Rialto
Business-type Activities
Governmental Activities
208
City of Rialto
Schedule: 11
Ratios of General Bonded Debt Oustanding
Last Ten Fiscal Years
Total Percentage
Tax Certificate General of Assessed
Fiscal Allocation of Reve nue Bonded Value of Per
Year Bonds Participation Bonds Debt Property1 Capita2
2012 -$ 4 2,241,504$ -$ 2,241,504$ 0.04% 22.24 2013 - 4 2,054,115 167,706,120 169, 760,235 2.98% 1,670.59 2014 - 4 1,880,000 166,082,170 167, 962,170 2.84% 1,646.33 2015 - 4 1,675,000 164,507,959 166, 182,959 2.57% 1,619.48 2016 - 4 1,465,000 162,733,776 164, 198,776 2.37% 1,600.14 3 2017 - 4 1,245,000 160,815,578 162, 060,578 2.21% 1,564.87 3 2018 - 4 1,015,000 158,741,386 159, 756,386 2.02% 1,505.22 3 2019 - 4 775,000 156,498,210 157, 273,210 1.72% 1,466.13 2020 - 4 525,000 154,071,953 154, 596,953 1.54% 1,478.65 2021 270,000 151,447,322 151, 717,322 1.40% 1,529.92 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements. General bonded debt is debt that is backed, in whole or in part, by resources of the general government. 1 See the assessed value and estimated actual value of taxable property schedule (schedule 5) for property value data. Assessed Value has been used because the actual value of taxable property is not readily available in the State of California. 2 See the Demographic and Economic Statistiscs Schedule (schedule 15) for population data. 3 Debt per capita for fiscal year 2019 was calculated using population for the prior calendar year. 4 No longer considered general bonded debt as the result of the dissolution of the former City of Rialto Redevelopment Agency as of February 1, 2012.
Source: City of Rialto
General Bonded Debt Outstanding
209
City of Rialto
Schedule: 12
Legal Debt Margin Information
Last Ten Fiscal Years
2012 2013 2014 2015 2016
Assessed value 5,546,029,257$ 5,698,456,459$ 5,918,760,007$ 6,463,982,386$ 6,937,960,152$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,386,507,314 1,424,614,115 1,479,690,002 1,615,995,597 1,734,490,038 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 207,976,097 213,692,117 221,953,500 242,399,339 260,173,506 Total net debt applicable to limit: Certificate of Particip 2,241,504 2,054,115 1,880,000 1,675,000 1,465,000 Legal debt margin 207,976,097$ 213,692,117$ 221,953,500$ 242,399,339$ 260,173,506$ Total net debt applicable to the limit
as a percentage of debt limit 1.08% 0.96% 0.85% 0.69% 0.56% NOTES: Under State Finance Law, the City's outstanding general obligation debt should not exceed 15 percent of the total assessed property value. 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 ch ange 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 th at 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.
Source: City of Rialto
Fiscal Year
210
City of Rialto
Schedule: 12
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed value
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit: Certificate of Particip Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
2017 2018 2019 2020 2021
7,337,606,885$ 7,907,753,047$ 9,146,266,649$ 10,022,185,498$ 10,830,810,827$ 25% 25% 25% 25% 25%
1,834,401,721 1,976,938,261.75 2,286,566,662 2,505,546,375 2,707,702,707 15% 15% 15% 15% 15%
275,160,258 296,540,739.26 342,984,999.34 375,831,956.18 406,155,406.01 1,245,000 1,015,000 775,000 525,000 270,000 275,160,258$ 296,540,739$ 342,984,999$ 375,831,956$ 406,155,406$
0.45% 0.34% 0.23% 0.14% 0.07%
Fiscal Year
211
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212
City of Rialto
Schedule: 13
Direct & Overlapping Debt
As of June 30, 2021
2020-21 Assessed Valuation: $10,830,810,827
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 Metropolitan Water District 26,830,000$ 0.075% 20,123$ Chaffey Community College District 315,490,000 1.088 3,432,531 San Bernardino Community College District 727,578,368 11.839 86,138,003 Colton Joint Unified School District 203,682,661 14.116 28,751,844 Fontana Unified School District 278,934,841 7.414 20,680,229 Rialto Unified School District 100,756,111 74.229 74,790,254 San Bernardino City Unified School District 289,886,327 0.020 57,977 City of Rialto Community Facilities District No. 2006-1 4,360,00 0 100.00 4,360,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 218,230,961
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Bernardino County General Fund Obligations 214,095,000 4.327% 9,263,891 San Bernardino County Pension Obligation Bonds 180,825,585 4.327 7,824,323 San Bernardino County Flood Control District General Fund Obligations 51,360,000 4.327 2,222,347 Chaffey Community College District Certificates of Participation 28,935,000 1.088 314,813 Fontana Unified School District Certificates of Participation 22 ,110,000 7.414 1,639,235 Rialto Unified School District Certificates of Participation 10, 868,570 74.229 8,067,631 San Bernardino City Unified School District Certificates of Participation 90,000,000 0.020 18,000 City of Rialto General Fund Obligations 11,393,196 100 11,393,196 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 40,743,436 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 115,200,000 100.00% 115,200,000 TOTAL DIRECT DEBT 11,393,196
TOTAL OVERLAPPING DEBT 362,781,201
COMBINED TOTAL DEBT 374,174,397$ (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value..
(2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2020-21 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.01%
Total Direct Debt ($11,393,196) 0.11%
Combined Total Debt 3.45%
Ratios to Redevelopment Successor Agency Incremental Valuation ($5,628,754,358:
Total Overlapping Tax Increment Debt 2.05%
NOTES: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Colton. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of each overlapping government.
Source: California Municipal Statistics, Inc.
213
City of Rialto
Schedule: 14
Pledged Revenue Coverage
Last Ten Fiscal Years
Less: Net
Fiscal Pledged Operating Available
Year Revenue Expenses Revenue Principal Interest Total Coverage 2011 -$ -$ -$ -$ -$ -$ - 2012 - - - - - - - 2013 1,291,943 2,879,139 (1,587,196) 308,067 1,391,545 1,699,612 (0.93) 2014 6,076,082 5,704,078 372,004 512,211 2,387,789 2,900,000 0.13 2015 7,723,650 5,569,541 2,154,109 544,448 2,355,552 2,900,000 0.74 2016 8,869,300 5,676,547 3,192,753 578,712 2,321,288 2,900,000 1.10 2017 9,275,027 5,874,523 3,400,504 615,132 2,284,868 2,900,000 1.17 2018 8,616,245 6,370,090 2,246,155 653,845 2,246,155 2,900,000 0.77 2019 8,420,761 6,215,754 2,205,007 694,993 2,205,007 2,900,000 0.76 2020 8,830,652 6,669,384 2,161,268 738,732 2,161,268 2,900,000 0.75 2021 8,987,712 6,872,934 2,114,778 785,223 2,114,777 2,900,000 0.73 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City of Rialto
Water Revenue Bonds
Debt Service
214
City of Rialto
Schedule: 14
Pledged Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Less: Net
Pledged Operating Available
Revenue Expenses Revenue Principal Interest Total Coverage -$ -$ -$ -$ -$ -$ - - - - - - - - 7,394,654 3,347,402 4,047,252 707,860 6,764,572 7,472,432.00 0.54 14,660,988 6,460,799 8,200,189 1,111,739 11,638,261 12,750,000.00 0.64 19,356,543 6,437,198 12,919,345 1,029,763 11,585,242 12,615,005.00 1.02 18,468,543 6,543,990 11,924,553 1,195,470 11,486,530 12,682,000.00 0.94 22,156,987 6,721,045 15,435,942 1,303,066 11,378,934 12,682,000.00 1.22 18,624,185 7,362,532 11,261,653 1,420,347 11,261,653 12,682,000.00 0.89 18,147,808 7,013,991 11,133,817 1,548,183 11,133,817 12,682,000.00 0.88 18,693,267 7,698,772 10,994,495 1,687,525 10,994,475 12,682,000.00 0.87 18,666,511 7,823,918 10,842,593 1,839,408 10,842,592 12,682,000.00 0.85 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City of Rialto
Wastewater Revenue Bonds
Debt Service
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216
Demographic and Economic
Information
These schedules offer demographic and economic indicators to help readers understand the environment within which the City’s financial activities take place.
217
City of Rialto
Schedule: 15
Demographic and Economic Statistics
Last Ten Years
(1) (2) (3)
Calendar Personal Per Capita Unemployment
Year Population Income Income Rate
2012 101,617 1,578,924,946 15,538 14.50%
2013 102,022 1,573,791,372 15,426 12.40%
2014 102,615 1,662,978,690 16,206 10.40%
2015 103,790 1,763,392,100 16,990 8.40%
2016 105,107 1,796,488,844 17,092 7.50%
2017 105,825 1,912,469,400 18,072 6.40%
2018 106,135 2,028,345,985 19,111 5.00%
2019 107,271 - * 4.20%
2020 104,553 2,310,725,853 22,101 14.90%
2021 99,167 2,139,824,447 21,578 7.90%
Sources:
1. State of California, Department of Finance; U.S. Census Bureau, American Fact Finder
2. U.S. Census Bureau, American Fact Finder
PER CAPITA INCOME IN THE PAST 12 MONTHS
http://factfinder.census.gov/bkmk/table/1.0/en/ACS/07_1YR/B19301/1600000US http://www.census.gov/quickfacts/table/INC110214/0660466,00
3. Bureau of Labor Statistics of the U.S. Department of Labor Local Area Unemployment Statistics - Not Seasonally Adjusted http://www.bls.gov/data/#unemployment Multiscreen Data Search 218
City of Rialto
Schedule: 16
Principal Employers
Current Year
Percent
Number of of Total
Employer Employees Employment
Rialto Unified School District 2500 to 2999 5.81 - 6.97 % Chuze Fitness 500 to 999 1.16 - 2.32 %
City of Rialto 250 to 499 .58 - 1.16 %
Walmart Supercenter 250 to 499 .58 - 1.16 %
Amazon Fulfillment Ctr 250 to 499 .58 - 1.16 %
Stater Bros Markets 250 to 499 .58 - 1.16 %
Vista Cove Care Ctr At Rialto 100 to 249 .58 - 1.16 %
Columbia Steel Inc 100 to 249 .23 - .58 %
Forest River Inc 100 to 249 .23 - .58 %
Mesa Counseling Svc 100 to 249 .23 - .58 %
Sierra Lathing CO Inc 100 to 249 .23 - .58 %
Target 100 to 249 .23 - .58 %
Rally's Hamburgers 100 to 249 .23 - .58 %
Burlingame Industries 100 to 249 .23 - .58 %
Maintenance Center 100 to 249 .23 - .58 %
El Super 35 100 to 249 .23 - .58 %
Home Depot 100 to 249 .23 - .58 %
Olive Garden Italian Kitchen 100 to 249 .23 - .58 %
Superior Grocers 100 to 249 .23 - .58 %
Cracker Barrel Old Country Str 100 to 249 .23 - .58 %
Coit Carpet & Drapery Cleaners 100 to 249 .23 - .58 %
Martinez & Turek Inc 100 to 249 .23 - .58 %
R C Construction 100 to 249 .23 - .58 %
NOTE: "Total Employment" as used above represents the total employment of all employers located within Information was presented as a range as specific employer and percentage totals are not available.
Sources: State Employment Develpoment Department
2021
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220
Operating Information
These schedules contain service and infrastructure data to help readers understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
221
City of Rialto
Schedule: 17
Authorized Full-time Employees by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/ Program
General Government
City Administrator 1.50 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 City Clerk 6.00 6.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 City Council 5.50 5.00 5.00 5.00 5.00 5.00 5.00 5 5.00 5.00 City Treasurer 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4 5.00 5.00 Finance 20.33 12.83 12.33 13.33 17.67 17.00 15.00 16 15.50 19.00 Information Technology Services - - - - - - - - 5.50 5.50 Management Services - - 3.00 4.00 4.00 5.00 5.00 6 6.00 6.00 Human Resources 3.33 3.33 3.33 4.33 3.73 4.40 4.40 4.4 5.00 6.00 Public Safety
Fire 69.00 76.00 76.00 70.00 78.00 81.00 80.00 83 84.00 85.00 Police 156.50 140.50 142.50 145.50 145.50 146.00 142.00 146 161.00 171.00 Community Development
Development Services 15.75 19.66 18.06 18.10 19.15 21.00 20.00 21 28.05 26.00 Redevelopment/ Successor Agency of the Former RDA 7.50 1.44 1.44 1.40 1.35 0.60 0.60 0.6 0.95 - Public Works 57.25 48.90 40.00 43.00 43.60 44.00 41.00 47 55.00 54.00 Recreation & Community Services 10.34 9.34 9.34 9.34 10.00 10.00 10.00 11 12.00 12.00 Grand Total 357.00 329.00 321.00 324.00 338.00 344.00 333.00 350.00 389.00 401.50 Source: City of Rialto
Fiscal Year
222
City of Rialto
Schedule: 18
Operating Indicators by Function/Program
Last Ten Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
Police
Arrests 3,526 3,898 4,124 3,990 3,919 3,851 3,684 3,939 4,290 4,702 Fire
Emergency unit responses 17,672 18,556 19,830 21,153 22,141 21,567 22,814 22,614 23,375 23,071 Community Development
Number of certificates of occupancy issued 242 128 109 131 59 77 53 192 9 9 Recreation & Community Services
Number of recreation classes 72 72 86 77 96 94 94 97 - - Public Works
Street resurfacing (miles) 20 19 25 17 34 37 3 33 1 1 Water
Average daily consumption 5.29 4.63 4.40 3.82 3.17 3.44 3.78 7.40 7.42 8.37 (millions of gallons)
Number of Installed Water Meters 166 168 232 1,206 1,500 * * 16 46 438 Sewer
Average daily sewage treatment 7.44 # 7.22 7.26 7.01 6.69 7.58 6.77 6.82 7.78 6.84 (millions of gallons)
Source: Various City of Rialto departments.
NOTE: * data not available.
Fiscal Year
223
City of Rialto
Schedule 19
Capital Asset Statistics by Function/Program
Last Ten Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police
Police stations 1 1 1 1 1 1 1 1 1 1 Fire
Fire stations 3 4 4 4 4 4 4 5 5 5 Public Works
Estimated street miles 268 268 268 270 270 270 272 280 280 280 Traffic Signals 606 609 614 614 620 621 627 628 629 630 City-owned street lights 79 87 87 120 250 328 4,144 4,205 4,237 4,281 Recreation & Community Services
Parks 10 10 9 9 10 10 10 11 11 11 Community Centers 1 1 1 1 1 2 2 2 3 3 Water
Water mains (miles) 187 187 187 187 187 187 187 190 190 190 Sewer
Sanitary sewer (miles) 263 263 263 263 263 263 263 266 266 266 NOTE: * data not available.
Source: Various City departments.
Fiscal Year
224