City of Rialto ACFR Final 06-27-25 — Rialto City Council, August 12, 2025

CITY OF RIALTO, CALIFORNIA
FOR THE YEAR ENDED JUNE 30, 2024 ANNUAL FINANCIAL REPORT

CITY OF RIALTO, CALIFORNIA
Annual Financial Report
For the Year Ended June 30, 2024
7+,63$*(,17(17,21$//</()7%/$1.

CITY OF RIALTO, CALIFORNIA
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

Independent Auditors’ Report ........................................................................................................................... 1 Basic Financial Statements:

Statement of Net Position ..................................................................................................................... 5 Statement of Activities .......................................................................................................................... 6 Governmental Funds:

Balance Sheet ...................................................................................................................................... 8 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................................. 10 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................. 13 Proprietary Funds:

Statement of Net Position .................................................................................................................. 14 Statement of Revenues, Expenses and Changes in Net Position .................................................. 15 Statement of Cash Flows ................................................................................................................... 16 Fiduciary Funds:

Statement of Net Position .................................................................................................................. 18 Statement of Changes in Net Position .............................................................................................. 19 Notes to Financial Statements .................................................................................................................. 21 Required Supplementary Information:

Pension Plans:

Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ..................................................................................................................... 74 Schedule of Changes in the Net Pension Liability and Related Ratios – Safety Plan ................................................................................................................................... 76 OPEB Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................. 78 Schedule of Plan Contributions .............................................................................................................. 80

CITY OF RIALTO, CALIFORNIA
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

Budgetary Comparison Schedule:

General Fund ...................................................................................................................................... 81 Park Development Special Revenue Fund ....................................................................................... 82 Notes to the Required Supplementary Information ................................................................................. 83 Supplementary Information:

Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .........................................................................................................96 Budgetary Comparison Information – Special Revenue Funds:

Gas Tax ................................................................................................................................... 107 Street Lighting and Landscape Maintenance Fund ................................................................ 108 Landscape and Lighting District No. 2 Fund ........................................................................... 109 Traffic Development Fund ....................................................................................................... 110 Office of Traffic Safety Fund ................................................................................................... 111 Open Space Development Fund ............................................................................................. 112 General Facilities Development Fund ..................................................................................... 113 Library Facilities Development Fund ....................................................................................... 114 Major Grant Funding Fund ...................................................................................................... 115 Police Development Fund ....................................................................................................... 116 Fire Development Fund........................................................................................................... 117 Waste Management Fund ....................................................................................................... 118 South Coast Air Quality Management Fund (SCAQMD) Fund ............................................... 119 Asset Forfeiture Fund .............................................................................................................. 120 Police Grants Fund ................................................................................................................. 121 Community Services Grant Fund ............................................................................................ 122 Citizens Option for Public Safety Fund ................................................................................... 123 Local Law Enforcement Block Grant Fund ............................................................................. 124 CDBG Fund ............................................................................................................................. 125 Neighborhood Stabilization Program – Program Income Fund .............................................. 126 Measure I Fund ....................................................................................................................... 127 Fire Grants Fund ..................................................................................................................... 128 Fire Ground Emergency Transportation Fund ........................................................................ 129 Cal Home Fund ....................................................................................................................... 130 Housing Authority Fund........................................................................................................... 131 Public, Educational, and Governmental (PEG) Fees Fund .................................................... 132 Transportation Development Act (TDA) Fund ........................................................................ 133 Street Medians Development Fund ........................................................................................ 134 Local Drainage Fund ........................................................................................................................ 135 Capital Projects Funds .................................................................................................................. 136 Fair Share Agreement Fund .......................................................................................................... 137 2005 TABS Fund ........................................................................................................................... 138 2008 TABS Fund ........................................................................................................................... 139

CITY OF RIALTO, CALIFORNIA
Annual Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
Enterprise Funds:

Combining Statement of Net Position ............................................................................................. 140 Combining Statement of Revenues, Expenses and Changes in Net Position ............................. 141 Combining Statement of Cash Flows .............................................................................................. 142 Internal Service Funds:

Combining Statement of Net Position ............................................................................................. 143 Combining Statement of Revenues, Expenses and Changes in Net Position ............................. 144 Combining Statement of Cash Flows .............................................................................................. 145 Custodial Funds:

Combining Statement of Assets and Liabilities - Custodial Funds ................................................ 146 Statement of Changes of Assets and Liabilities - Custodial Funds .............................................. 148 7+,63$*(,17(17,21$//</()7%/$1.

LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Rialto, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rialto, California (the “City”), as of and for the year ended June 30, 2024, 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, 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 generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

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 opinions.

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

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

x Exercise professional judgment and maintain professional skepticism throughout the audit.

x 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.

x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s 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.

Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 2 To the Honorable Mayor a
nd 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 accompanying combining and individual fund financial statements and schedules (“supplementary information”) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 11, 2025, 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 scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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.

Irvine, California
June 27, 2025
3 7+,63$*(,17(17,21$//</()7%/$1.
4 CITY OF RIALTO, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 415,469,335$ 28,594,107 $ 444,063,442$ Receivables (net of uncollectibles):

Accounts 12,579,114 8,205,724 20,784,838 Accrued interest 496,199 23,126 519,325 Due from other governments 16,513,624 - 16,513,624 N
otes and loans 4,463,705 661,857 5,125,562 Leases 4,827,
873 - 4,827,873
Internal balances 5,688,762 (5,688,762) - R
estricted assets:

Cash and investments - 43,257,400 43,257,400
Cash with fiscal agent 5,091,750 - 5,091,750
Inventories 113,385 - 113,385
Land held for resale 1,690,369 - 1,690,369
Prepaid costs 169,784 - 169,784
Capital assets (not being depreciated) 164,971,239 45,921,275 210,892,514 Capital assets (net of accumulated depreciation/amortization) 190,900,494 72,947,133 263,847,627 Total assets 822,975,633 193,921,860 1,016,897,493

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 52,117,681 343,300 52,460,981 OPEB-related 5,865,392 55,402 5,920,794 Total deferred outflows of resources 57,983,073 398,702 58,381,775

LIABILITIES
Accounts payable 21,646,580 3,796,917 25,443,497 Accrued liabilities 8,946,499 14,138 8,960,637 Accrued interest 80,930 - 80,930
Deposits payable 2,125,099 2,549,909 4,675,008 Unearned revenue 1,636,459 208,603 1,845,062 Noncurrent liabilities:

Due within one year: bonds, notes, leases, SBITA,
claims, and compensated absences 9,078,805 3,605,798 12,684,603 Due in more than one year:

Net pension liability 153,769,430 1,156,014 154,925,444 Net OPEB liability 20,002,860 188,937 20,191,797 Bonds, notes, leases, SBITA, claims, and
compensated absences 108,200,166 139,027,076 247,227,242 Total liabilities 325,486,828 150,547,392 476,034,220

DEFERRED INFLOWS OF RESOURCES
Pension-related 408,656 - 408,656
OPEB-related 17,810,462 168,230 17,978,692 Lease-related 4,705,631 - 4,705,631
Total deferred inflows of resources 22,924,749 168,230 23,092,979

NET POSITION
Net investment in capital assets 336,462,627 118,484,853 454,947,480 Restricted:

General government 52,084,363 - 52,084,363
Publ
ic safety 26,317,199 - 26,317,199
C
ommunity development 64,249,344 - 64,249,344
C
apital projects 54,507,376 43,257,400 97,764,776 D
ebt service 571,785 - 571,785
D
eposits 16,034,281 - 16,034,281
Unrestricted (17,679,846) (118,137,313) (135,817,159) Total net position 532,547,129$ 43,604,940$ 576,152,069$ June 30, 2024
Primary Government
See Notes to Financial Statements.
5 CITY OF RIALTO, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2024
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:

Primary government:

Governmental activities:

General government 42,194,807$ 6,069,891$ 9,152,300$ -$ Public safety 80,853,063 4,761,205 8,480,022 1,308,086 Development services 31,846,744 20,937,925 9,579,427 4,519,701 Interest on long-term debt 2,330,156 - - -
Total governmental activities 157,224,770 31,769,021 27,211,749 5,827,787 Business-type activities:

Water Fund 15,512,077 13,212,882 - -
Wastewater Fund 28,530,823 32,524,110 - -
Airport Fund 1,258 151,799 - -
Cemetary Fund 60,294 171,707 - - Total business-type activities 44,104,452 46,060,498 - - Total primary government 201,329,222$ 77,829,519$ 27,211,749$ 5,827,787$ General revenues and transfers:

General revenues:

Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Utility users tax
Other taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
6 Governmental Business-Type
Activities Activities Total
(26,972,616)$ - $ (26,972,616)$
(66,303,750) - (66,303,750)
3,190,309 - 3,190,309
(2,330,156) - (2,330,156)
(92,416,213) - (92,416,213)
- (2,299,195) (2,299,195)
- 3,993,287 3,993,287
- 150,541 150,541
- 111,413 111,413
- 1,956,046 1,956,046
(92,416,213)$ 1,956,046$ (90,460,167)$
44,336,422 20 44,336,442
68,767,325 - 68,767,325
595,701 - 595,701
4,890,366 - 4,890,366
18,137,784 - 18,137,784
124,297 - 124,297
18,829,331 1,951,188 20,780,519
4,108,251 36,644 4,144,895
(8,220) 8,220 -
159,781,257 1,996,072 161,777,329
67,365,044 3,952,118 71,317,162
465,182,085 39,652,822 504,834,907
532,547,129$ 43,604,940 $ 576,152,069 $
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
7 CITY OF RIALTO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
General
ASSETS
Cash and investments 108,300,632$ 9,077,627 $ 64,286,617 $ 59,396,312$ Receivables (net of allowance for uncollectible):

Accounts 10,631,713 - 33,059 -
Accrued interest 496,199 - - -
Due from other governments 11,570,782 - - -
Notes and loans - - - -
Leases 4,827,873 - - -
Due from other funds 2,860,154 - - -
Inventories 113,385 - - -
Prepaid costs 169,784 - - -
Land held for resale 719,969 - - -
Advances to other funds 17,492,605 - - -
Restricted assets:

Cash and investments with fiscal agents 3,520,714 - 84,787 - Total assets 160,703,810$ 9,077,627$ 64,404,463$ 59,396,312$

LIABILITIES
Accounts payable 9,274,603$ - $ 3,894,172$ -$ Accrued liabilities 7,613,189 - - -
Deposits payable 1,023,277 - - -
Due to other funds 928,978 - - -
Advances from other funds - 10,892,605 - -
Unearned revenues 578,004 - - -
Total liabilities 19,418,051 10,892,605 3,894,172 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 3,369,111 - - -
Lease-related 4,705,631 - - -
Total deferred inflows of resources 8,074,742 - - -

FUND BALANCES (DEFICITS)
Nonspendable 18,495,743 - - -
Restricted 6,111,419 - 60,510,291 -
Committed 36,295,841 - - 59,396,312
Unassigned 72,308,014 (1,814,978) - -
Total fund balances (deficits) 133,211,017 (1,814,978) 60,510,291 59,396,312 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 160,703,810$ 9,077,627$ 64,404,463$ 59,396,312$ Special
Revenue Fund Capital Projects Funds
Park
Development
Fund
Capital
Projects Funds
Police Station
Capital
Projects Fund
See Notes to Financial Statements.
8 CITY OF RIALTO, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Accrued interest
Due from other governments
Notes and loans
Leases
Due from other funds
Inventories
Prepaid costs
Land held for resale
Advances to other funds
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payable
Due to other funds
Advances from other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Lease-related
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Nonspendable
Restricted
Committed
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total Total
Nonmajor Governmental
Funds Funds
149,581,599$ 390,642,787$
1,125,592 11,790,364
- 496,199
4,942,842 16,513,624
4,463,705 4,463,705
- 4,827,873
- 2,860,154
- 113,385
- 169,784
970,400 1,690,369
- 17,492,605
1,486,249 5,091,750
162,570,387$ 456,152,599 $
8,026,431$ 21,195,206$
1,329,419 8,942,608
1,101,822 2,125,099
2,860,154 3,789,132
- 10,892,605
1,058,455 1,636,459
14,376,281 48,581,109
3,136,462 6,505,573
- 4,705,631
3,136,462 11,211,204
- 18,495,743
147,142,638 213,764,348
- 95,692,153
(2,084,994) 68,408,042
145,057,644 396,360,286
162,570,387$ 456,152,599 $
See Notes to Financial Statements.
9 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds 396,360,286$
355,871,733
Deferred outflows-pension related 52,062,465 $
Deferred outflows-OPEB related 5,856,480
Deferred inflows-pension related (408,656)
Deferred inflows-OPEB related (17,783,406)
Total deferred outflows and inflows related to postemployment benefits 39,726,883 Long-term receivables 6,505,573
Total other long-term assets 6,505,573
(4,886,282)
Notes payable (1,706,000)
Financed purchase agreements (9,678,135)
Bonds payable (61,399,232)
Leases (63,286)
Subscriptions (2,064,594)
Compensated absences (12,482,915)
Accrued interest payable on long-term debt (80,930)
Net pension liability (153,583,500)
Net OPEB liability (19,972,472)
Total long-term liabilities (261,031,064)
Net position of governmental activities 532,547,129$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

CITY OF RIALTO, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.

Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.

See Notes to Financial Statements.
10 CITY OF RIALTO, CALIFORNIA
Statement of Revenues, Expenditures
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
General

REVENUES
Taxes 134,201,542$ - $ -$ -$
Licenses and permits 6,764,031 - - -
Intergovernmental 6,229,588 - - -
Charges for services 10,175,424 1,508,216 - - Use of money and property 12,934,560 185,739 266,556 1,992,520 Fines and forfeitures 972,394 - - -
Developer participation - - - -
Miscellaneous 4,222,037 - - -
Total revenues 175,499,576 1,693,955 266,556 1,992,520

EXPENDITURES
Current:

General government 33,778,243 - - -
Public safety 65,380,430 - 952,612 3,405,509
Community development 20,580,281 - 1,025,702 -
Capital outlay 3,477,656 - 12,848,800 -
Debt service:

Principal 1,025,535 - - -
Interest and fiscal charges 335,444 - - 589,931 Total expenditures 124,577,589 - 14,827,114 3,995,440 Excess (deficiency) of revenues
over (under) expenditures 50,921,987 1,693,955 (14,560,558) (2,002,920)

OTHER FINANCING SOURCES (USES)
Transfers in 5,311,770 - 24,983,420 -
Transfers out (31,681,460) - (500,000) -
Debt issuance proceeds - - - 56,525,000
Subscriptions proceeds 2,721,835 - - -
Bond Premium - - - 4,874,232
Total other financing sources (uses) (23,647,855) - 24,483,420 61,399,232 Net change in fund balances 27,274,132 1,693,955 9,922,862 59,396,312 Fund balances-beginning 105,936,885 (3,508,933) 50,587,429 - Fund balances-ending 133,211,017$ (1,814,978)$ 60,510,291$ 59,396,312$ Special
Revenue
Funds
Park
Development
Fund
Capital Projects Funds
Police Station
Capital
Projects Fund
Capital
Projects Funds
See Notes to Financial Statements.
11 CITY OF RIALTO, CALIFORNIA
Statement of Revenues, Expenditures
and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Debt issuance proceeds
Subscriptions proceeds
Bond Premium
Total other financing sources (uses)
Net change in fund balances
Fund balances-beginning
Fund balances-ending
Total Total
Nonmajor Governmental
Funds Funds
2,650,353$ 136,851,895 $
- 6,764,031
24,136,430 30,366,018
427,465 12,111,105
3,020,407 18,399,782
- 972,394
11,056,571 11,056,571
1,355,237 5,577,274
42,646,463 222,099,070
2,099,946 35,878,189
3,253,847 72,992,398
3,050,238 24,656,221
28,917,123 45,243,579
216,597 1,242,132
1,406,120 2,331,495
38,943,871 182,344,014
3,702,592 39,755,056
2,289,820 32,585,010
(411,770) (32,593,230)
- 56,525,000
- 2,721,835
- 4,874,232
1,878,050 64,112,847
5,580,642 103,867,903
139,477,002 292,492,383
145,057,644$ 396,360,286 $
See Notes to Financial Statements.
12 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: 103,867,903$ Capital outlay 45,197,432
Depreciation/amortization expense (11,479,584)
Total adjustment 33,717,848
Earned but unavailable grant revenues 2,069,415
Total adjustment 2,069,415
Loss/(gain) on disposal of capital assets (419,492)
Total adjustment (419,492)
Issuance of bonds (61,399,232)
Subscriptions issued (2,004,893)
Principal payments 1,341,256
Total adjustment (62,062,869)
3,161,455
Accrued interest on long-term debt 1,339
Com
pensated absences (2,004,441)
Changes in pension liabilities and related deferred outflows and inflows of resources (12,279,810) Changes in OPEB liabilities and related deferred outflows and inflows of resources 1,313,696 Total adjustment (12,969,216)
Change in net position of governmental activities 67,365,044$ Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

CITY OF RIALTO, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade- ins, and donations) is to increase/(decrease) net position.

Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

See Notes to Financial Statements.
13 CITY OF RIALTO, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Other Total
Enterprise Enterprise Internal
Funds Funds Service Funds
ASSETS
Current assets:

Cash and investments 3,079,837$ 15,074,940$ 10,439,330$ 28,594,107$ 24,826,547$ Receivables (net of uncollectibles):

Accounts 1,769,584 6,284,156 151,984 8,205,724 788,750 Notes and loans 292,598 369,259 - 661,857 -
Accrued interest 23,126 - - 23,126 -
Due from other funds 200,751 710,487 - 911,238 17,740 Restricted:

Cash and investments 17,616,645 25,640,755 - 43,257,400 -
Total
current assets 22,982,541 48,079,597 10,591,314 81,653,452 25,633,037 Noncurrent:

Advances to other funds - 3,000,000 - 3,000,000 -
Capital assets, net 28,315,945 90,552,463 - 118,868,408 - T
otal noncurrent assets 28,315,945 93,552,463 - 121,868,408 - Total assets 51,298,486 141,632,060 10,591,314 203,521,860 25,633,037

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 150,663 184,143 8,494 343,300 55,216 OPEB-related 24,314 29,717 1,371 55,402 8,912 Total deferred outflows of resources 174,977 213,860 9,865 398,702 64,128

LIABILITIES
Current liabilities:

Accounts payable 1,362,932 2,425,885 8,166 3,796,983 451,373 Accrued liabilities 4,879 8,568 625 14,072 3,891 Unearned rev
enue -
208,603 -
208,603 -
Deposits payable 1,958,390 590,519 1,000 2,549,909 - Compensated absences 6,641 - 304 6,945 7,579
Claim
s and judgments -
-
-
- 5,376,953
Bonds, notes, loans, and leases 1,002,346 2,596,507 - 3,598,853 -
Total current liabilities 4,335,188 5,830,082 10,095 10,175,365 5,839,796 Noncurrent liabilities:

Advances from other funds 9,600,000 - - 9,600,000 - Compensated absences 30,955 - 1,384 32,339 5,267 Claim
s and judgments -
-
-
- 24,495,010
Bonds, notes, loans, and leases 29,150,928 109,843,809 - 138,994,737 -
Net pension liability 507,336 620,077 28,601 1,156,014 185,930 Net OPEB liability 82,918 101,345 4,674 188,937 30,388 Total noncurrent liabilities 39,372,137 110,565,231 34,659 149,972,027 24,716,595 Total liabilities 43,707,325 116,395,313 44,754 160,147,392 30,556,391

DEFERRED INFLOWS OF RESOURCES
OPEB-related 73,830 90,237 4,163 168,230 27,056 Total deferred inflows of resources 73,830 90,237 4,163 168,230 27,056

NET POSITION
Net investment in capital assets 28,315,945 90,168,908 - 118,484,853 - Res
tricted for water stabilization and capital projects trust 17,616,645 25,640,755 - 43,257,400 - Unrestri
cted (38,240,282) (90,449,293) 10,552,262 (118,137,313) (4,886,282) Total net position 7,692,308$ 25,360,370$ 10,552,262$ 43,604,940$ (4,886,282)$ Business-Type Activities
Water Fund
Wastewater
Fund
See Notes to Financial Statements.
14 CITY OF RIALTO, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Other Total
Enterprise Enterprise Internal
Funds Funds Service Funds

OPERATING REVENUES
Sales and service charges 13,212,882$ 32,524,110$ 171,707$ 45,908,699$ -$ Interdepartm
ental charges for services - - - - 14,395,587
Miscellaneous 36,644 - 151,799 188,443 - Total operating revenues 13,249,526 32,524,110 323,506 46,097,142 14,395,587

OPERATING EXPENSES
Administration and general 3,741,541 - 1,258 3,742,799 93,679 Cost of sales and services 8,867,284 15,857,451 59,977 24,784,712 11,570,002 Depreciation and amortization 946,251 2,373,481 317 3,320,049 - Total operating expenses 13,555,076 18,230,932 61,552 31,847,560 11,663,681 Operating income (loss) (305,550) 14,293,178 261,954 14,249,582 2,731,906

NONOPERATING REVENUES (EXPENSES)
Taxes - - 20 20 -
Interest revenue 694,082 1,238,558 18,548 1,951,188 429,549 Interest expense (1,957,001) (10,299,891) - (12,256,892) - Total nonoperating revenues (expenses) (1,262,919) (9,061,333) 18,568 (10,305,684) 429,549 Income (loss) before transfers (1,568,469) 5,231,845 280,522 3,943,898 3,161,455 Transfers in 5,300,000 - 8,220 5,308,220 - Tra
nsfers out (5,300,000) - - (5,300,000) -
Change in net position (1,568,469) 5,231,845 288,742 3,952,118 3,161,455 Net position-beginning 9,260,777 20,128,525 10,263,520 39,652,822 (8,047,737) Net position-ending 7,692,308$ 25,360,370$ 10,552,262$ 43,604,940$ (4,886,282)$ Business-Type Activities
Water Fund
Wastewater
Fund
See Notes to Financial Statements.
15 CITY OF RIALTO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Other
Enterprise Internal
Funds Totals Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 15,075,517$ 32,944,558 $ 171,522 $ 48,191,597$ -$ Rec
eipts from interfund charges - - - - 13,612,053
Payments to suppliers and service providers (9,888,487) (17,931,616) (46,453) (27,866,556) (9,419,340) Payments to employees for salaries and benefits (3,668,464) (112,832) - (3,781,296) (75,127) Net cash provided by (used for)
operating activities 1,518,566 14,900,110 125,069 16,543,745 4,117,586

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - - 8,220 8,220 -
Pay
ments from other funds on interfund borrowings 5,300,000 - - 5,300,000 - Tax
es - - 20 20 -
Net cash provided by (used for)
noncapital financing activities 5,300,000 - 8,240 5,308,240 -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (593,791) (2,739,730) - (3,333,522) - Pr
incipal paid on capital debt (942,998) (2,382,109) - (3,325,107) - Interest pai
d on capital debt (1,957,003) (10,299,891) - (12,256,893) - Net cash provided by (used for)
capital and related financing activities (3,493,792) (15,421,730) - (18,915,522) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 690,836 1,238,558 18,549 1,947,943 429,549 Net cash provided by (used for)
investing activities 690,836 1,238,558 18,549 1,947,943 429,549 Net increase (decrease) in
cash and cash equivalents 4,015,610 716,938 151,858 4,884,406 4,547,135 Cash and cash equivalents-beginning 16,680,872 39,998,757 10,287,472 66,967,101 20,279,412 Cash and cash equivalents-ending 20,696,482$ 40,715,695$ 10,439,330$ 71,851,507$ 24,826,547$ Business-Type Activities
Water Fund
Wastewater
Fund
See Notes to Financial Statements.
16 CITY OF RIALTO, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Governmental
Activities
Other
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
Water Fund
Wastewater
Fund

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Cash and investments 3,079,837$ 15,074,940 $ 10,439,330 $ 28,594,107 $ 24,826,547$ Restricted cash and investments 17,616,645 25,640,755 - 43,257,400 - Total cash and cash equivalents 20,696,482$ 40,715,695$ 10,439,330$ 71,851,507$ 24,826,547$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (305,550)$ 14,293,178 $ 261,954 $ 14,249,582$ 2,731,906$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 946,251 2,373,481 317 3,320,049 - (Increase) decrease in accounts receivable 463,757 228,870 (151,984) 540,643 (783,534) Increase (decrease) in accounts payable (1,021,203) (2,074,165) 7,686 (3,087,682) 124,594 Increase (decrease) in accrued liabilities 1,667 (13,220) 445 (11,108) 2,375 Inc
rease (decrease) in deposits payable 1,362,234 191,578 - 1,553,812 -
Increase (decrease) in compensated absences (11,095) - 333 (10,762) 860 Inc
rease (decrease) in claims and judgments -
-
- - 2,026,068
Increase (decrease) in net pension liability 65,774 (55,397) 6,976 17,353 2,398 I
ncrease (decrease) in net OPEB liability 16,731 (44,215) (658) (28,142) 12,919
Total adjustments 1,824,116 606,932 (136,885) 2,294,163 1,385,680 Net cash provided by (used for)
operating activities 1,518,566$ 14,900,110$ 125,069$ 16,543,745$ 4,117,586$ See Notes to Financial Statements.
17 Private
Purpose
Trust Funds
Successor Custodial
Agency Funds
ASSETS
Cash and cash equivalents -$ 10,081,576$ 1,988,361$ Cash and cash equivalents held with fiscal agent - 5,040,791 8,321,500 Investments:

Mutual funds 29,428,022 - -
Receivables:

Accounts - 10,594 5,793
Accrued interest
- 42,346 -
Notes and loans - 5,904,379 -
Land held for resale - 19,689,855 -
Capital assets not being depreciated - 290,347 -
Capital assets, net of accumulated depreciation/amortization - 56,570 - Total assets 29,428,022 41,116,458 10,315,654

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 513,094 -
Total deferred outflows of resources - 513,094 -

LIABILITIES
Accounts payable - 517,848 153,336
Accrued liabilities - 91 -
Accrued interest - 1,956,152 -
Unearned revenues - 255,334 -
Due to Other Governments, Current - - 10,162,318
Long-term debt:

Due in one year - 5,010,000 -
Due in more than one year - 100,443,052 -
Total liabilities - 108,182,477 10,315,654

DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding - 160,341 -
Total deferred inflows of resources - 160,341 -

NET POSITION
Restricted for:

Postemployment benefits other than pensions 29,428,022 - - RDA dissolution - (66,713,266) -
Total net position 29,428,022$ (66,713,266)$ -$

CITY OF RIALTO, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Pension (and
Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
18 Private
Purpose
Trust Funds
Successor Custodial
Agency Funds

ADDITIONS
Interest 3,111,464 491,512 80,516
Taxes - 10,971,017 1,889,008
Miscellaneous - 56,702 16,631,639
Total additions 3,111,464 11,519,231 18,601,163

DEDUCTIONS
Benefits 110,463 - -
Administrative expenses - 14,753 9,081,434
G&A - Contract Services - - 8,072,609
Interest expenses - 5,447,880 737,786
Principal expenses - - 190,000
Issuance costs - - 303,114
Depreciation/amortization - 1,956 -
Contributions to other governments - - 216,220
Total deductions 110,463 5,464,589 18,601,163 Net increase (decrease) in fiduciary net position 3,001,001 6,054,642 - Net position-beginning 26,427,021 (72,767,908) - Net position-ending 29,428,022$ (66,713,266)$ -$

CITY OF RIALTO, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Pension (and
Other
Employee
Benefit) Trust
Fund
See Notes to Financial Statements.
19 7+,63$*(,17(17,21$//</()7%/$1.
20 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 1
: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Rialto, California (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below.

Description of Government-wide Financial Statements
The go
vernment-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities , which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities , which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

B. Repor
ting Entity
The City
was incorporated in 1911 under the 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 and 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 Authority), 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 component 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.

1. Blende
d Component Units
The Rialto Public Financing Authority (Financing Authority) was established in 1988 pursuant to California Government Code Section 6500. Although it is legally separate from the City, the Financing Authority is reported as if it were part of the City because its sole purpose is to finance the City’s and the former Redevelopment 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 California Government Code, and the Marks-Roos Local Bond Pooling Act of 1985. The Utility Authority was formed to provide for lease, ownership, operation, maintenance, construction, and financing of the Water and Wastewater Utility systems and any other utility system 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 Authority. 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 Authority is reported as if it were part of the City because is sole purposes is to finance, refinance, 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.
21 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 1
: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Rialto Housing Authority (Housing Authority) was created on November 4, 2003 in accordance with the Californian Law Health and Safety Code Sections 34200-34606. The Housing Authority enables the City to engage in more aggressive housing market intervention, including the acquisition of property, rehabilitation, and/or development of affordable housing. The Mayor and City Council act as the governing board of the Housing Authority and there is a financial benefit/burden relationship between the City and the Housing Authority. The financial activity for this entity is blended with the governmental funds of the City in the Housing Authority Special Revenue Fund.

The Financing Authority, Utility Authority, Building Authority, and Housing Authority do not issue separate financial statements.

Basis of Presentation – Government-wide Financial Statements The go
vernment-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all the non-fiduciary activities of the City and its component units. The effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct 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 directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirement of a particular function or segment. Taxes and other items not properly classified as program revenues are reported as general revenues.

Basis of Presentation – Fund Financial Statements
Separate fina
ncial statements are provided for governmental funds, 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.

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 general government, except those 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 and expansions of park facilities.

The Capital Projects Fund is used to account for income received to fund expenditures related to City infrastructure and development improvements.

The Police Station Capital Projects Fund is used to account for the funding and construction of the City’s new police station.

The City reports the following major enterprise 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. 22 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 1
: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Additionally, the City reports the following fund types:

Special revenue funds are used to account for proceeds of specific revenue sources that are legally restricted or otherwise assigned for specific purposes.

Capital project funds are used to account for income received to fund expenditures related to infrastructure and development improvements.

The debt service fund is used to account for debt service activity for the 2007 Refunding Certificates of Participation.

Internal service funds account for risk management services (including claims for workers’ compensation, general liability, and property damage) provided to other departments or agencies of the City, or to other governments on a cost-reimbursement basis.

The pension (and other employee benefit) trust fund accounts for the activities of the City’s plan for post-retirement medical benefits..

The private
-purpose trust fund accounts for thefiduciaryresponsibilities that are assigned to the Successor Agency to the Rialto Redevelopment Agency pursuant to the Dissolution Act.

The custodial funds are used to account for assets held by the City as a custodian for individuals, private organizations, or other governments. The City acts in a custodial capacity for Community Facilities District (CFD) 87-1, CFD 2006-1 Elm Park, CFD 2016-1, CFD 2019-2, CFD 2020-1, and CFD 2022B.

Duri
ng the course of operations, the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. Further, certain activity occurs during the year involving transfers of resources between funds reported at gross amounts as transfers in/out. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business -type activities column. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business -type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.

Measurement Focus and Basis of Accounting
The a
ccounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of recognition in the financial statements of various kinds of transactions or events.

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 obligations 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 taxes are recognized in the fiscal year for which the taxes have been levied.
23 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

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. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability 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, and 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 two 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 revenue is recognized in the fiscal year for which the taxes have been levied, provided it is collected 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 principal ongoing operations. The principal operating revenues of the City’s Water, Wastewater, and Other Enterprise Funds are charges to customers for sales and services. The Wastewater fund also recognizes as operating revenue the portion of connection fees intended to recover the cost of connecting new customers to the system. Operating expenses 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.

F. Budgetary Information

The City establishes accounting control through formal adoption 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 budgetary control, that is, the level at which expenditures cannot exceed appropriations, is the fund level for all General, Special Revenue and Debt Service Funds, and by project in the Capital Project Funds. The City did not adopt budgets for the Transportation Enhancement Activities, Retirement Tax, American Rescue Plan Act, Traffic Safety Prop 1B, Neighborhood Stabilization Program, Brownfield Clean Up Grant, Special Deposits, Confiscated Funds, Police Station Capital Projects, 1997 COP, and Police Station Debt Service funds. Department 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. The City Manager’s, Finance Director’s, and department head’s approval(s) are required to transfer appropriations from one program to another, and object codes within different expense category within the same fund. However, all increases at the overall fund level must be approved by the City Council. All unencumbered budget appropriations, except for capital projects budgets, lapse at the end of each fiscal year. Throughout the fiscal year, the budget is amended to add supplemental appropriations. All changes to the budget require Council approval.

G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

1. Cash and Investments

The City pools cash and investment resources of some of its funds 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.
24 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investments are stated at fair value except for certain investments, 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 generally based on published market prices and quotations from major investment firms. Investment earnings are allocated based on the source of funds.

2. Restricted Cash and Investments

Certain proceeds of governmental fund certificates of participation and enterprise fund long-term liabilities as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet and statement of net position because their use is limited by applicable bond or debt covenants. 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-term endowment care required by state law.

3. Inventories and Prepaid Items

Inventory is valued at cost, which approximates fair value, on a first-in, first-out basis. Inventory in the proprietary funds consists of expendable supplies held for consumption. The costs of governmental fund type inventories are recorded as expenditure when consumed rather than when purchased.

Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements and are recorded as expenditures when consumed rather than when purchased.

4. Capital Assets

Capital assets, which include property, plant, equipment, lease and subscription assets, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the fund financial statements of the proprietary funds and private-purpose trust fund.

Capital assets, other than infrastructure assets, are defined by the City as assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The amounts spent for the construction or acquisition of infrastructure assets are capitalized 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 construction in progress, are depreciated or amortized using the straight-line method using the following lives:

Capital Asset Classes Useful Liv es (in years)
Land improvements 200
Buildings and other structures 25 - 50
Improvements other than buildings 20
Subscription assets 3 - 5
Lease assets 25 - 50
Machinery and equipment 5 - 7
Distributions systems 20 - 50
Wastewater treatment plant 20 - 50
Vehicles 5 - 10
Office furniture, computers, and equipment 5 - 20
Infrastructure 20 - 60
25 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

5. 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. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. They are the deferred amounts related to pension and OPEB reported in the government- wide statement of net position. The deferred amounts related to pension and OPEB relate differences between estimated and actual investment earnings, changes in actuarial assumptions, and other pension and OPEB related changes.

In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources.

Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has four items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: miscellaneous revenues, grants, and long-term receivables.

These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the government -wide financial statements the City reports deferred amounts related to leases and deferred amounts related to pension and OPEB.

6. Net Position

For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.

x Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.

x Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.

x Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.

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

7. Fund Balance

In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called “fund balance.” The City’s governmental funds report the following categories of fund balance, based on the nature of any limitations requiring the use of resources for specific purposes.

x Nonspendable fund balance represents amounts that are either not in a spendable form or are legally or contractually required to remain intact.
26 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

x Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions may be changed or lifted only with the consent of the resource providers.

x Committed fund balance includes amounts that can only be used for the specific 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.

x Assigned fund balance includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent 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 Council approves assignments of fund balance.

x Unassigned fund balance represents the residual amount for the general fund that is not contained in the other classifications. The general fund is the only fund that reports a positive unassigned fund balance. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned.

When expenditures are incurred, the City’s applies the most restrictive 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 purchase orders, contracts, and other obligations, which have not yet been fulfilled, cancelled, or discharged. Encumbrances outstanding at year-end are recorded as part of assigned fund balance.

8. Leases

Lessee: The City is a lessee for a noncancellable lease of a building. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government -wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight- line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

x The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

x The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
27 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Lessor: The City is a lessor for noncancellable leases of buildings and land. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

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

x The City uses its estimated incremental borrowing rate as the discount rate for leases.

x The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

9. Subscription-Based Information Technology Arrangements

The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.

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

x The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.

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

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

10. Pension and Other Postemployment Benefits (OPEB) Plans

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

28 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the District’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value.

11. Long-term Obligations

In the government-wide financial statements, proprietary fund financial 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 net position, or private-purpose trust fund statement of net position. Bond premiums, discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using the effective interest method. Amortization of bond premium, discounts, and deferred amounts is included in interest expense. Bonds payable are reported net of the applicable bond premium or discount. The deferred amount on refunding 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.

H. Revenues and Expenditures/Expenses

1. Compensated Absences

In the governmental funds, compensated absences are recorded as expenditures in the year in which the amount is due and payable due to resignations or retirements. As of year-end, the entire unpaid liability for the governmental funds is recorded as a long-term liability in the government-wide statement of net position. Compensated absences in the proprietary funds are recorded as liabilities in the applicable funds.

2. Interfund Transactions

Interfund current receivables and payables are classified as either “due to/due from” (i.e., the current portion of interfund loans) or “advance to/from other funds” (i.e., the noncurrent portion of interfund loans). Residual balances outstanding between the governmental activities and business-type activities are reported 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 respective funds’ operating statements as a transfer.

3. Unbilled Receivables

Unbilled water and wastewater revenue of the enterprise funds is recognized as earned based on consumption or when service is rendered.

I. Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred 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. Actual results could differ from those estimates. 29 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

J. New GASB Pronouncements Effective During Fiscal Year

The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2024:

1. GASB Statement No. 100, Accounting Changes and Error Corrections

The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections.

NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Deficit Fund Equity

At June 30, 2024, The City reported deficit fund equities in the following funds:

Fund Name Fund Type Deficit Cause
Park Development Fund Major Special Revenue Fund (1,814,978)$ (b) Police Grants Fund Nonmajor Special Revenue Fund (276,547) (a) Community Services Grants Fund Nonmajor Special Revenue Fund (202,573) (a) CDBG Fund Nonmajor Special Revenue Fund (78,002) (a) Neighborhood Stabilization Program Fund Nonmajor Special Revenue Fund (35,670) (a) Fire Grant Fund Nonmajor Special Revenue Fund (209,490) (a) Police Station Debt Service Nonmajor Debt Service Fund (1,282,712) (a) Workers' Compensation Fund Internal Serv ice Fund (6,515,654) (c) Successor Agency Fiduciary Fund (66,713,266) (d)
(a) Deficit due to timing differences between grant receipts and disbursements, and is expected to be eliminated through future grant revenues.
(b) Deficit due to a long-term interfund loan from the General Fund, which will eventually be eliminated as the loan is repaid.
(c) Deficit due to the accrual of estimated claims and judgments against the City, including those claims incurred but not reported. This deficit is expected to be reduced through future charges to other City funds and departments as these claims are paid, but not entirely eliminated. (d) Deficit due to the tax allocation bonds payable reported in the fund. The deficit will eventually be eliminated as the bonds are repaid, and the Successor Agency's activ ities inev itably conclude. 30 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS

Cash and investments as of June 30, 2024, are classified in the accompanying financial statements as follows:

Statement of Net Position
Cash and investments 444,063,442 $
Restricted:

Cash and investments 43,257,400
Cash with fiscal agent 5,091,750
Statement of Fiduciary Net Position
Cash and cash equivalents 12,069,937
Cash with fiscal agent 13,362,291
Investments 29,428,022
Total cash and investments 547,272,842$
Cash on hand 133,851 $
Deposits with financial institutions 105,939,827
Investments 441,199,164
Total cash and investments 547,272,842$
31 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

A. 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 Policy states that “the investment of City funds is governed by the California Government Code Section 53600 et seq.”

The table below identifies the investment 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 the 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 general provisions of the Government Code and Investment Policy and investments of the employer contributions to the other post-employment benefit (OPEB) trust that are governed by the trust agreement.

Maximum
Investment Types Maximum Percentage Credit Rating Gov. Code Authorized by State Law Maturity of Portfolio Requirements Sections Local agency bonds 5 years None None 53601(a)
U.S. Treasury obligations (bonds/notes/bills) 5 years 0 to 100% None 53061(b) State obligations -- CA and others 5 years None None 53601(c)(d) CA local agency obligations 5 years None None 53601(e)
U.S. agency obligations 5 years 0 to 100% None 53601(f) Bankers' acceptances 180 days 0 to 40% None 53601(g)
Commercial paper non-pooled funds (under $100M of investments) 270 days or less
25% of the
agency's
money
Highest letter and
number rating by an
NRSRO
53601(h)(2)(C)
Commercial paper non-pooled funds (min. $100M of investments) 270 days or less
40% of the
agency's
money
Highest letter and
number rating by an
NRSRO
53601(h)(2)(C)
Commercial paper - pooled funds 270 days or
less
40% of the
agency's
money
Highest letter and
number rating by an
NRSRO
53635(a)(1)
Negotiable certificates of deposit 5 years 0 to 30% None 53601(i) Non-negotiable certificates of deposit 5 years None None 53630 et seq.

Repurchase agreements 1 year 0 to 50% None 53601(j)
Reverse repurchase agreements and securities lending agreements 92 days 20 % of the base value of
the portfolio
None 53601(j)
Medium term notes 5 years or less 20% "AA" rating
category or its
equivalent or better
53601(o)
County pooled investment funds N/A None None 27133
Local agency investment funds (LAIF) N/A $75,000,000
per account
None 16429.1
Voluntary investment program fund N/A $200,000,000
minimum
None 16340
Supranational obligations 5 years or less 30% "AA" rating category or its
equivalent or better
53601(q)
Public bank obligations 5 years None None 53601(r)
53635(c)
57603
Banker's acceptances, commercial paper, negotiable certificates of deposit, medium term corporate notes, and mortgage pass-through and asset backed securities are further restricted to percentage of the value of the portfolio in any one issuer name regardless of sector to a maximum of 5%.
32 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

B. 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 maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Generally, credit risk is the risk that the issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the actual rating by Standard and Poor’s, as of year-end for each investment type.

12 Months 13 to 36 37 to 60
Investment Type Total or Less Months Months
U.S. Treasury obligations 3,236,823 $ 3,236,823 $ - $ - $ U.S. agency securities 61,140,501 25,807,285 28,578,766 16,800,807 Commercial paper 10,874,655 10,874,655 - - Certificates of deposit 2,098,932 1,483,353 938,884 109,703 Corporate bonds 133,241,394 75,137,489 78,716,011 22,925,842 Money market mutual funds 218,373,251 218,373,250 - - Cash equivalents 35,440 35,440 - - Local Agency Investment Fund 12,198,168 12,198,169 - - Total 441,199,164$ 347,146,464 $ 108,233,661 $ 39,836,352 $ Remaining Maturity (in Months)
Exempt or
Investment Type Total AAA AA+ to AA- A+ to A- BBB+ to BBB- Not Rated U.S. Treasury obligations 3,236,823 $ - $ - $ - $ - $ 3,236,823$ U.S. agency securities 61,140,501 - 48,864,036 - - 12,276,464 Commercial paper 10,874,655 - - 10,874,655 - - Certificates of deposit 2,098,932 - - - - 2,098,933 Corporate bonds 133,241,394 5,946,180 1,966,020 67,177,095 53,228,448 4,923,650 Money market mutual funds 218,373,251 113,824,853 - - - 104,548,397 Cash equivalents 35,440 - - - - 35,440 Local Agency Investment Fund 12,198,168 - - - - 12,198,168 Total 441,199,164 $ 119,771,033 $ 50,830,056 $ 78,051,750 $ 53,228,448 $ 139,317,875 $ S&P Rating as of Fiscal Year End
33 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

C. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2024, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

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.

The City’s Investment Policy requires a third-party bank trust department to hold all investment securities owned by the City. The City’s investments in certificates of deposit are held by banks. Accordingly, the certificates are covered by the same collateral requirements as the City’s deposits.

D. Concentration of Credit Risk

Concentration of credit risk is the heightened risk of potential loss when investments are concentrated in one issuer.

As of June 30, 2024, the City’s Federal Home Loan Bank and Goldman Sachs investments exceeded 5% of total investments at 11.1% and 6.2%, respectively. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investments pool, and other pooled investments are excluded from this disclosure requirement.

E. Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment 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 on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF does not impose limits or restrictions on participant withdrawals, and the entire balance of the City’s investment in the portfolio is available for withdrawal at any time. LAIF is not registered with the Securities and Exchange Commission and is not rated. Deposits and withdrawals in LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s investment in this pool is measured on uncategorized inputs not defined as Level 1, 2, or 3.
34 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

F. Cash and Investments Held in OPEB Trust

The City established a trust account wi th the 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. Those guidelines are as follows:

Risk Tolerance: Balanced High Mark Plus

Risk Management: The portfolio is constructed to control risk through 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 selection 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

G. Cash and Investments Held in Trust

Cash and investments maintained in the trust are considered restricted for water and wastewater functions.

H. Cash and Investments Held 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 provisions of the California Government Code or the City’s Investment Policy, govern investments of debt proceeds held by bond fiscal agents. Permitted investments are specified in related trust agreements and include the following:

x Securities of the U.S. Government and its sponsored agencies x Bankers’ Acceptances rated in the single highest classification x Commercial Paper rated in the single highest classification x Investments in money market funds rated in the single highest classification x 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
x Investment contracts

No maximum percentage of the related debt issue or maximum investment in one issuer is specified.

I. Fair Value Hierarchy

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs utilized by the City to determine fair market value include: matrix pricing, market corroborated pricing, and other inputs such as yield curves and indices. Level 3 inputs are significant unobservable inputs. At June 30, 2024, all of the City’s investments are valued using Level 2 inputs, with the exception of investments in LAIF and the OPEB Trust which are not subject to fair value measurements.
35 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 3: CASH AND INVESTMENTS (CONTINUED)

NOTE 4: RECEIVABLES

A. Accounts Receivable

Accounts receivable as of year-end for the City’s individual major funds, nonmajor funds, internal service funds, custodial funds and private-purpose trust fund, including the applicable allowances for uncollectible accounts, are as follows:

Investment Type Total Level 1 Level 2 Uncategorized
U.S. Treasury obligations 3,236,823$ 3,236,823$ -$ -$ U.S. agency securities 61,140,501 61,140,501 -
Commercial paper 10,874,655 - 10,874,655 - Certificates of deposit 2,098,932 - 2,098,932 - Corporate bonds 133,241,394 - 133,241,394 - Money market mutual funds 218,373,251 - - 218,373,251 Cash equivalents 35,440 - - 35,440 Local Agency Investment Fund 12,198,168 - - 12,198,168 Total 441,199,164$ 3,236,823 $ 207,355,482$ 230,606,859 $ Input Category
Less:

Accounts Allowance for Accounts
Receivable Uncollectible Receivable, Net
Governmental Funds:

General Fund 15,313,954 $ (4,682,241) $ 10,631,713 $ Capital Projects Fund 33,059 - 33,059 Nonmajor governmental funds 1,139,612 (14,020) 1,125,592 Proprietary Funds:

Water Fund 2,215,492 (445,908) 1,769,584 Wastewater Fund 6,526,289 (242,133) 6,284,156 Nonmajor enterprise funds 151,984 - 151,984 Internal service funds 788,750 - 788,750 Total Primary Government 26,169,140$ (5,384,302)$ 20,784,838$ Fiducary Funds
Private-Purpose Trust Fund 12,357$ (1,763)$ 10,594$ Custodial Funds 5,793 - 5,793 Total Fiduciary Funds 18,150$ (1,763)$ 16,387$ 36 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 4: RECEIVABLES (CONTINUED)

B. Notes and Loans Receivable

Notes and loans receivable of $5,558,597 which are reflected in the City’s General Fund; Local Drainage, Neighborhood Stabilization Program, Neighborhood Stabilization Program – Program Income, Cal Home, Housing Authority, Special Deposits, and 2008 TABs nonmajor governmental funds; and Water and Wastewater enterprise funds are comprised of the following as of June 30, 2024:

1. Loans Receivable

The City administers a housing rehabilitation loan program, which 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 based on household income and the need for rehabilitation. The City enters into loan agreements with the homeowners that require the loans to be repaid only if title of the property changes. Therefore, the City has recorded the outstanding loans as loans receivable and due to other governments in the governmental funds. The amount of outstanding rehabilitation loans, net of allowance for uncollectible amounts, in the Cal Home Special Revenue Fund and Housing Authority Special Revenue Fund at June 30, 2024 is $1,911,302.

The City has provided down payment assistance under the Neighborhood Stabilization Program to eligible middle-income households earning not less than eighty percent and not more than one hundred twenty percent of the area median income in San Bernardino County, California, as determined by the U.S. Department of Housing and Urban Development (HUD). If any of the events described in the loan agreement, like 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 maturity date, then the entire loan amount is forgiven. The total outstanding balance in the Neighborhood Stabilization Program Special Revenue Fund, Neighborhood Stabilization Program - Program Income Special Revenue Fund, and the Local Drainage Fund as of June 30, 2024, was $433,035 (offset by an allowance of $433,035).

The Rialto Utility Authority entered into a concessionaire agreement on March 27, 2012 with Rialto Water Services, L.P. (the Concessionaire) to provide services with respect to the Utility Facilities for a term of 30 years. As part of the agreement, 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 $369,259 for wastewater utilities. See Note 16 for additional information.

Other loans receivable are reported in the 2008 TABs Fund in the amount of $2,522,477; no allowance is set up for these receivables, as they are anticipated to be fully collectible.

A letter of credit of $29,926 is established in the Special Deposits Fund.

37 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 4: RECEIVABLES (CONTINUED)

2. Notes Receivable

Notes receivable of $50,187,089, which is reflected in the City’s other governmental Housing Authority Special Revenue Fund (allowance of $50,187,089) is comprised of the following as of June 30, 2024:

The Housing Authority provided development funding to Inland Valley Housing Partners L.P. in accordance with an Affordable Housing Agreement by and between 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 all operating 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 minimal relative to the total principal and accrued interest. The outstanding balance as of June 30, 2024, was $21,681,223. An allowance of $21,681,223 has been recorded in the financial statements because there is no estimate of timing of cash collections on the note. Revenue will be recognized on a cash basis.

The Housing Authority provided development funding to Citrus Grove Housing Partners L.P. in accordance with an Affordable Housing Agreement by and between the Authority and National Community Renaissance of California for Phase II of the 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 repaid 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The total outstanding balance as of June 30, 2024, was $8,626,713. An allowance of $8,626,713 has 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 Authority and Telacu Housing-Rialto, Inc., in connection with the development of a 70-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 project. Pursuant to a promissory note and the Agreement, the advance funding in the amount 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 operating 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 minimal relative to the total principal and accrued interest.

Provided the developer is in compliance 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, 2024, was $751,408. An allowance of $751,408 has 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 Authority 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 Boulevard and just west of Cactus Avenue (“Telacu 2”) project. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $1,824,155 is to be repaid from the residual receipts 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance as of June 30, 2024, was $1,707,241. An allowance of $1,707,241 has been 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. 38 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 4: RECEIVABLES (CONTINUED)

The Housing Authority provided development funding to Telacu in accordance with an Affordable Housing Agreement by and between the Authority 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 receipts 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance as of June 30, 2024, was $3,060,010. An allowance of $3,060,010 has been 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 Agreement by and between the Authority and Rialto Family Housing Partners, L.P. 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 $7,385,974 is to be repaid 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance including unpaid accrued interest as of June 30, 2024, was $10,165,244. An allowance of $10,165,244 has been 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 II, L.P. in accordance with an Affordable Housing Agreement by and between the Authority and Rialto Family Housing Partners II, L.P. 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 $1,959,400 is to be repaid 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance including unpaid accrued interest as of June 30, 2024, was $2,661,109. An allowance of $2,661,109 has been 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 II, L.P. in accordance with an Affordable Housing Agreement by and between the Authority and Rialto Family Housing Partners II, L.P. 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 $1,144,711 is to be repaid 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, the repayment is expected to be minimal relative to the total principal and accrued interest. The outstanding balance including unpaid accrued interest as of June 30, 2024, was $1,534,141. An allowance of $1,534,141 has been 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.

39 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 4: RECEIVABLES (CONTINUED)

C. Leases Receivable

The City leases land and buildings to various companies. The terms by lease type are listed in the table below.

Some leases have extension options ranging from five to ten years. An initial lease receivable was recorded in the amount of $4,857,511. As of June 30, 2024, the value of the lease receivable is $4,827,873. The value of the deferred inflow of resources as of June 30, 2024 was $4,705,631, and the amortization of the deferred inflow during the year totaled $456,492. The City recognized lease revenue of $481,846 during the fiscal year which included $457,903 related to the amortization of the deferred inflow and $23,943 for variable and other payments, including short term leases not included in the measurement of the lease receivable.

Future receivable principal and interest payments expected to be received through maturity are as follows:

Lease Lease Lease
Lease Type Term Range Receivable Revenue Interest
Land - cell towers 3 - 30 years 4,827,873 $ 481,846$ 95,853$ June 30 Principal Interest
2025 394,230$ 89,616 $
2026 349,890 83,273
2027 339,625 77,003
2028 349,014 70,533
2029 330,972 63,901
2030 - 2034 949,333 243,382
2035 - 2039 694,727 166,536
2040 - 2044 738,491 100,259
2045 - 2049 609,290 40,710
2050 - 2052 72,301 2,698
Total 4,827,873$ 937,911 $
Governmental Activities
40 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 5: CAPITAL ASSETS

A. Governmental Activities

Governmental activities’ capital assets for the year ended June 30, 2024, was as follows:

Depreciation/amortization expense was charged to the functions/programs of the governmental activities of the primary government as follows:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Gov ernmental activ ities:

Capital assets, not being depreciated/amortized
Land 70,972,883$ 43,759$ -$ -$ 71,016,642$ Land easements 7,306,780 - - - 7,306,780 Construction-in-progress 59,499,337 39,353,161 (398,069) (11,806,612) 86,647,817 Total capital assets, not being depreciated/amortized 137,779,000 39,396,920 (398,069) (11,806,612) 164,971,239 Capital assets, being depreciated/amortized
Buildings and other structures 31,581,760 - - 44,793 31,626,553 Improvements other than buildings 88,206,118 - - 6,677,846 94,883,964 Lease assets 240,339 - - - 240,339 Subscription assets 881,764 2,721,835 - - 3,603,599 Machinery and equipment 6,033,214 1,026,155 (16,405) - 7,042,964 Vehicles 17,757,796 1,054,311 (357,395) - 18,454,712 Office furniture, computers, and equipment 4,451,368 340,763 - - 4,792,131 Infrastructure 242,689,348 657,448 - 5,083,973 248,430,769 Total capital assets, being depreciated/amortized 391,841,707 5,800,512 (373,800) 11,806,612 409,075,031 Less accumulated depreciation/amortization
Buildings and other structures (15,236,926) (680,402) - - (15,917,328) Improvements other than buildings (35,719,279) (3,704,012) - - (39,423,291) Lease assets (120,169) (60,085) - - (180,254) S
ubscription assets (110,221) (1,105,737) - - (1,215,958) Machinery and equipment (4,889,953) (407,478) 16,405 - (5,281,026) Vehicles (13,787,120) (1,178,285) 335,972 - (14,629,433) Office furniture, computers, and equipment (3,581,485) (282,942) - - (3,864,427) Infrastructure (133,602,177) (4,060,643) - - (137,662,820) Total accumulated depreciation/amortization (207,047,330) (11,479,584) 352,377 - (218,174,537) Total capital assets, being depreciated/amortized, net 184,794,377 (5,679,072) (21,423) 11,806,612 190,900,494 Total governmental activities capital assets 322,573,377$ 33,717,848$ (419,492)$ -$ 355,871,733$ General government 5,347,344$
Public safety 1,737,869
Highways and streets 4,394,371
Total depreciation/amortization expense 11,479,584$
41 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 5: CAPITAL ASSETS (CONTINUED)

B. Business-type Activities

Business-type activities’ capital assets for the year ended June 30, 2024, was as follows:

Depreciation/amortization expense was charged to the functions/programs of the business-type activities of the primary government as follows:

NOTE 6: PENSION PLANS

The City contributes to two defined benefit pension plans, the CalPERS Miscellaneous Employees Plan, an agent, multi-employer defined benefit retiree health plan administered by the California Public Employees Retirement System (CalPERS), and the Safety Employees Plan, which is also an agent, multiple -employer plan administered by CalPERS. As of and for the year ended June 30, 2024, the two plans had the following balances reported in the government-wide financial statements:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Business-type activities:

Capital assets, not being depreciated/amortized
Land 1,767,770$ -$ -$ -$ 1,767,770$ Construction-in-progress 41,219,564 2,933,941 - - 44,153,505 Total capital assets, not being depreciated/amortized 42,987,334 2,933,941 - - 45,921,275 Capital assets, being depreciated/amortized
Land improvements 10,932,826 - - - 10,932,826 Buildings and structures 2,336,314 - - - 2,336,314 Machinery and equipment 149,821,720 399,581 (16,033) - 150,205,268 Total capital assets, being depreciated/amortized 163,090,860 399,581 (16,033) - 163,474,408 Less accumulated depreciation/amortization
Land improvements (6,323,752) (473,297) - - (6,797,049) Buildings and structures (2,123,496) (28,008) - - (2,151,504) Machinery and equipment (78,776,011) (2,818,744) 16,033 - (81,578,722) Total accumulated depreciation/amortization (87,223,259) (3,320,049) 16,033 - (90,527,275) Total capital assets, being depreciated/amortized, net 75,867,601 (2,920,468) - - 72,947,133 Total business-type activities capital assets 118,854,935$ 13,473$ -$ -$ 118,868,408$ Water 946,251$
Wastewater 2,373,481
Other Enterprise Funds 317
Total depreciation/amortization expense 3,320,049$
Net Pension Deferred Outflows Deferred Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous Plan 51,305,578$ 15,236,077 $ - $ 10,403,866$ Safety Plan 103,619,866 37,224,904 408,656 18,913,942 Total pension plans 154,925,444$ 52,460,981 $ 408,656 $ 29,317,808 $ 42 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

A. Miscellaneous Employees Agent, Multiple-Employer Defined Benefit Pension Plan

1. Plan Description, Benefits Provided, and Employees Covered

All qualified permanent and probationary non-safety (police and fire) employees are eligible to participate in the City’s Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 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 benefit 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 the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

At June 30, 2024, the following employees were covered by the benefit terms for each Plan:

2. Contribution Description

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer 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 contribution requirements are classified as plan member contributions. Plan contributions for the year equaled $7,514,763.

Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formulas 2.7% at 55 2.0% at 62
Benefit v esting schedule 5 years serv ice 5 years serv ice 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 22.85% 14.79%
Inactive members currently receiving benefits 436
Inactive members entitled to but not yet receiving benefits 363 Active members 189
Total 988
43 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal Cost Method
Actuarial Assumptions
Discount rate 6.90%
Inflation 2.50%
Salary increases Varies by entry age and services
Mortality rate table Derived using CalPERS’ membership data for all funds Post-retirement benefit increase The lesser of contract COLA or 2.30% until purchasing power protection allowance floor on purchasing power applies,

2.30% thereafter

The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

4. Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed
Asset
Asset Class Allocation Real Return 1, 2
Global equity-cap-weighted 30.00% 4.54%
Global equity-non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2022 Asset Liability Management study 44 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

5. Discount Rate

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

6. Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between projected 5-year straight-line amortization and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

The EARSL for the plan for the measurement period ending June 30, 2023 is 2.3 years, which was obtained by dividing the total service years of 2,258 (the sum of remaining service lifetimes of the active employees) by 988 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

45 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

7. Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period:

8. Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liabilities calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 159,284,667 $ 109,608,626 $ 49,676,041 $ Changes recognized for the
measurement period:

Service cost 2,810,889 - 2,810,889 Interest on total pension liability 11,036,170 - 11,036,170 Changes of benefit terms 239,822 - 239,822 Differences between expected and
actual experience 3,407,306 - 3,407,306 Net plan to plan resource movement - 142 (142) Contributions-employer - 7,812,395 (7,812,395) Contributions-employee - 1,332,851 (1,332,851) Net investment income - 6,799,863 (6,799,863) Benefit payments, including refunds of
employee contributions (8,785,508) (8,785,508) - Administrative expense - (80,601) 80,601 Net changes during 2022-23 8,708,679 7,079,142 1,629,537 Balance at June 30, 2023 167,993,346 $ 116,687,768 $ 51,305,578 $ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 74,154,930$ 51,305,578 $ 32,634,086 $ 46 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

9. Pension Expense and Deferred Outflows and Deferred Inflows of Resources

For the fiscal year ended June 30, 2024, City recognized $10,403,866 in pension expense.

The following table presents deferred outflows and deferred inflows of resources related to pensions as of the June 30, 2024:

The $7,514,763 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

B. Safety Employees Agent, Multiple-Employer Defined Benefit Pension Plan

1. Plan Description, Benefits Provided, and Employees Covered

All qualified permanent and probationary safety (police and fire) employees are eligible to participate in the City’s Safety Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date 7,514,763 $ - $
Changes of assumptions 460,284 -
Differences between expected and
actual experience 1,967,992 -
Net difference between projected
and actual earnings on pension
plan investments 5,293,038 -
Total 15,236,077$ -$
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 2,949,057$
2026 1,004,804
2027 3,616,633
2028 150,820
Total 7,721,314$
47 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit 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 the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

At June 30, 2024, the following employees were covered by the benefit terms for each Plan:

2. Contribution Description

3. Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:

2.30% thereafter
Prior to On or after Prior to On or after
Hire date January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Benefit formulas 3.0% at 50 2.7% at 57 3.0% at 50 2.7% at 57 Benefit v esting schedule 5 years serv ice 5 years serv ice 5 years serv ice 5 years serv ice Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 52 - 67 50 52 - 67
Monthly benefits, as a % of eligible
compensation 3.0% 2.0% - 2.7% 3.0% 2.0% - 2.7%
Required employee contribution rates 8.00% 14.25% 8.00% 14.25% Required employer contribution rates 38.60% 27.32% 33.18% 27.41% Police Safety Fire Safety
Inactive members currently receiving benefits 294
Inactive members entitled to but not yet receiving benefits 126 Active members 162
Total 582
48 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

4. Long-term Expected Rate of Return

5. Discount Rate

49 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

6. Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The amortization period differs depending on the source of the gain or loss:

The EARSL for the plan for the measurement period ending June 30, 2023 is 3.4 years, which was obtained by dividing the total service years of 1,992 (the sum of remaining service lifetimes of the active employees) by 582 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

7. Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 347,426,238 $ 251,792,714 $ 95,633,524 $ Changes recognized for the
measurement period:

Service cost 7,203,683 - 7,203,683 Interest on total pension liability 24,355,579 - 24,355,579 Changes of benefit terms 140,014 - 140,014 Differences between expected and
actual experience 10,366,524 - 10,366,524 Net plan to plan resource movement - (142) 142 Contributions-employer - 14,713,973 (14,713,973) Contributions-employee - 3,634,578 (3,634,578) Net investment income - 15,916,206 (15,916,206) Benefit payments, including refunds of
employee contributions (17,110,409) (17,110,409) - Administrative expense - (185,157) 185,157 Net changes during 2022-23 24,955,391 16,969,049 7,986,342 Balance at June 30, 2023 372,381,629 $ 268,761,763 $ 103,619,866 $ 50 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 6: PENSION PLANS (CONTINUED)

8. Sensitivity of the Net Pension Liability to Changes in the Discount Rate

9. Pension Expense and Deferred Outflows and Deferred Inflows of Resources

For the fiscal year ended June 30, 2024, City recognized $18,913,942 in pension expense.

The following table presents deferred outflows and deferred inflows of resources related to pensions as of the June 30, 2024:

The $15,051,313 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025.

Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
( 5 . 9 0 % )( 6 . 9 0 % )( 7 . 9 0 % )
Plan's net pension liability/(asset) 157,830,369$ 103,619,866 $ 59,677,039 $ Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date 15,051,313 $ - $
Changes of assumptions 2,571,518 -
Differences between expected and
actual experience 7,572,157 408,656
Net difference between projected
and actual earnings on pension
plan investments 12,029,916 -
Total 37,224,904 $ 408,656 $
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 7,178,541$
2026 4,844,664
2027 9,445,458
2028 296,272
Total 21,764,935$
51 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS

A. Plan Description

The City provides postemployment healthcare benefits through the California Public Employees’ Retirement System (CalPERS) healthcare program entitled Public Employees’ Medical and Hospital Care Act (PEMHCA), a single employer defined benefit plan, to eligible employees and any qualified family members under the authority of a Memorandum of Understanding with the employee bargaining units. The City contributes toward the health premium based on the Memorandum of Understanding. The City does not provide a retiree contribution for dental, vision, or life insurance benefits.

Upon attainment of a minimum age of 50 (or age 52, if a new miscellaneous 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 remain 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 100% of medical premiums for the retiree and his or her 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 addition, the City will not contribute less than the PEMHCA minimum employer contribution of $149 for 2022 and so on. Insurance provided by the City will be supplemental to Medicare upon the retiree reaching the age of 65.

B. Plan Membership

At June 30, 2024, membership consisted of

C. Contributions and Funding Policy

The City generally makes an annual contribution to the Trust and currently pays benefits either directly to retirees or through PEMHCA during the year as pay-as-you-go expenses. The plan does not issue a publicly available financial report. The plan assets are reported as a fiduciary other post-employment benefit trust fund in the City’s financial statements.

In fiscal year ended June 30, 2024, the City made employer contributions of $1,155,096 and $811,810 in implied subsidy benefit payments.

D. Plan Financial Statements

As of June 30, 2023, the plan’s statement of fiduciary net position was as follows:

Inactive members currently receiving benefits 246
Inactiv e members entitled to but not yet receiv ing benefits 91 Active members 355
Total 692
ASSETS
Cash and cash equivalents 26,427,021 $
Total assets 26,427,021

FIDUCIARY NET POSITION
Restricted for postemployment benefits other
than pensions 26,427,021
Total net position 26,427,021 $
52 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS (CONTINUED)

For the fiscal year ended June 30, 2023, the plan’s statement of changes in fiduciary net position was as follows:

E. Net OPEB Liability

At June 30, 2024, the City reported a net OPEB liability for the plan of $20,191,797. The net OPEB liability for the plan was measured as of June 30, 2023, and the total OPEB liability for the plan used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.

F. Actuarial Assumptions

The total OPEB liability for the plan, after considering the sharing of benefit -related costs with inactive plan members, based on the established pattern of practice, was determined by an actuarial valuation performed as of June 30, 2023, using the following actuarial methods and assumptions.

Actuarial Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal, level percent of pay Asset Valuation Method Market Value
Assumptions
Inflation 2.50%
Investment Rate of Return 5.80%
Healthcare Cost Trend Rates 5.60% in Fiscal 2023, decreasing to an ultimate trend rate of

3.90% in 2076

Demographic actuarial assumption used in this valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.

ADDITIONS
Contributions:

Employer 1,155,096 $
Investment earnings:

Interest and fair value of investments 1,721,903
Total additions 2,876,999

DEDUCTIONS
Benefits 2,425,536
Total deductions 2,425,536
Net increase (decrease) in fiduciary net position 451,463 Fiduciary net position-beginning 25,975,558
Fiduciary net position-ending 26,427,021 $
53 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS (CONTINUED)

G. Long-Term Expected Rates of Return

In April 2022, PARS published an expected return of 6.24% for the Balanced Portfolio, prior to offset for non-imbedded investment related fees. This expected return was determined using a building-block method and best-estimate ranges of expected future real rates of return for each major asset class (expected returns, net of OPEB plan investment expense and inflation). 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. The target allocation and best estimates of geometric real rates of return are summarized in this table:

Non-imbedded fees were estimated to reduce the expected yield above by 44 basis points (0.44%), reducing the net expected return on trust assets to 5.80% per year. The City approved 5.80% as the assumed long-term return on trust assets.

H. Discount Rate

The discount rate used for accounting purposes for the fiscal year end 2023 is 5.70%.

Expected
Asset Class Return Weight
Equity 60.00%
Large cap core 6.80% 32.00%
Mid cap core 7.10% 6.00%
Small cap core 7.90% 9.00%
Real estate 6.60% 2.00%
International 7.30% 7.00%
Emerging markets 7.30% 4.00%
Fixed income 35.00%
Short term bond 3.30% 6.75%
Intermediate term bond 3.90% 27.00%
High yield 6.10% 1.25%
Cash 2.40% 5.00%
Expected return 6.24%
Expected standard deviation 10.20%
54 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS (CONTINUED)

I. Changes in Net OPEB Liability

J. Discount Rate and Healthcare Rate Sensitivity Analysis

The following is a sensitivity analysis of the plan net OPEB liability to changes in the discount rate and the healthcare cost trend rate. The table below presents the net plan OPEB liability calculated using the discount rate of 5.70% as well as what the plan OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

The table below presents the plan net OPEB liability of the City calculated using the healthcare rate of 5.6% to 3.9% as well as what the plan net OPEB liability would be if it were calculated using a healthcare rate that is one percentage point lower or one percentage point higher than the current rate:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2022 44,904,891 $ 25,975,558 $ 18,929,333 $ Changes recognized for the
measurement period:

Service cost 1,560,087 - 1,560,087 Interest on total OPEB liability 2,579,376 - 2,579,376 Contributions-employer - 1,155,097 (1,155,097) Net investment income - 1,469,740 (1,469,740) Benefit payments, including refunds of
employee contributions (2,425,536) (2,425,536) - Other miscellaneous (income)/expense - 252,162 (252,162) Net changes during 2022-23 1,713,927 451,463 1,262,464 Balance at June 30, 2023 46,618,818 $ 26,427,021 $ 20,191,797 $ Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(4.70%) (5.70%) (6.70%)
Plan's net OPEB liability/(asset) 26,064,323$ 20,191,797$ 15,319,251$ Current
1 Percent Heathcare 1 Percent
Decrease Trend Rate Increase
Plan's net OPEB liability/(asset) 14,860,780 $ 20,191,797 $ 26,723,898 $ 55 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 7: OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS (CONTINUED)

K. OPEB Expense and Deferred Items Summary

For the year ended June 30, 2024, the City recognized plan OPEB income of $253,991. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the plan from the following sources:

The $811,810 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Amounts reported as deferred outflows of resources and deferred inflows of resources related to plan will be recognized as OPEB expense as follows:

NOTE 8: JOINT POWERS AUTHORITY

On October 21, 1985, the Agua Mansa Industrial Growth Association Joint Powers Authority (the AMIGA Joint Powers Authority) was created under a joint exercise of powers agreement. It was formed to undertake projects to stimulate private investment in business and industrial growth in economically depressed areas within the boundaries of the association. The AMIGA Joint Powers Authority shall manage, coordinate, market and administer economic development programs and projects in the Agua Mansa area. The governing board consists of one member appointed from each participating Agency, which include the County of San Bernardino, the County of Riverside, the City of Colton, the City of Rialto and the City of Riverside. 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.

Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the
measurement date 811,810 $ - $
Changes of assumptions 3,317,701 14,157,669
Differences between expected and
actual experience - 3,821,023
Net difference between projected
and actual earnings on OPEB
plan investments 1,791,283 -
Total 5,920,794$ 17,978,692$
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2025 (2,767,585) $
2026 (3,131,342)
2027 (2,528,709)
2028 (3,679,673)
2029 (656,813)
Thereafter (105,586)
Total (12,869,708) $
56 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 8: JOINT POWERS AUTHORITY (CONTINUED)

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 property 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 9: 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, respectively, per person per occurrence. The City has established the General Liability and Workers’ Compensation Internal Service 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 insurance and share costs for professional risk management and claims administration. General Liability claims exceeding the 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 covered 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 the 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 insurance. Settled claims resulting from these risks have not exceeded commercial insurance 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 participate in the risk management program and make payments to the respective Internal Service Fund based on estimates of the amounts 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 amount 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 balance of claims liabilities during the past two years are as follows:

Workers' General Total
Compensation Liability Claims
Liability - June 30, 2022 18,071,932$ 4,975,438$ 23,047,370$ Claims incurred and changes
to estimates 6,101,889 5,896,824 11,998,713 Claims payments (2,825,885) (4,374,303) (7,200,188) Liability - June 30, 2023 21,347,936 6,497,959 27,845,895 Claims incurred and changes
to estimates 4,136,635 2,427,651 6,564,286 Claims payments (2,475,988) (2,062,230) (4,538,218) Liability - June 30, 2024 23,008,583$ 6,863,380$ 29,871,963$ 57 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 9: RISK MANAGEMENT (CONTINUED)

The respective workers’ compensation and general liability claims are reported in the Workers’ Compensation and General Liability internal service funds, respectively, and will be liquidated by those funds.

NOTE 10: LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS

A. Leases Payable

The City has entered into a lease agreement as lessee for the lease of a building. The term of this leasing arrangement is 48 months. As of June 30, 2024, the total value of the lease liability was $63,286. The City is required to make fixed monthly principal and interest payments in the amount of $4,841. The lease has an interest rate of

0.5603%. Information on the lease asset as of June 30, 2024 is as follows:

The future principal and interest lease payments as of June 30, 2024, were as follows:

B. Subscription-Based Information Technology Arrangements

The City has entered into a SBITA as the subscriber for the use of CAL-ID software. An initial subscription liability was recorded in the amount of $881,764 during the current fiscal year. The term of this subscription is 96 months.

As of June 30, 2024, the total value of the subscription liability was $2,064,594. The City is required to make variable annual principal and interest payments based on CPI. Information on the subscription assets as of June 30, 2024 are as follows:

Lease Asset Accumulated
Asset Class Value Amortization
Buildings 240,339 $ 180,254 $
Governmental Activities
Fiscal Year
Ending
June 30, Principal Interest Total Payments
2025 63,286 $ 192 $ 63,478 $
Total 63,286$ 192$ 63,478$
Government al A c t ivit ies
Subscription Accumulated
Asset Class Asset Value Amortization
Software 3,603,599$ 1,215,958 $
Governmental Activities
58 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 10: LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (CONTINUED)

The future principal and interest subscription payments as of June 30, 2024, were as follows:

NOTE 11: LONG-TERM LIABILITIES

A. Direct Borrowings

1. Financed Purchase Agreements

On May 31, 2017, the City entered into an equipment finance-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 agreement bears interest at a rate of 3.6% multiplied by the margin rate factor provided that the resulting interest rate shall not exceed 4%. 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 by (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 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 immediately due and the equipment required to be returned to the lessor. The total principal outstanding at June 30, 2024 was $1,411,195.

On November 30, 2017, the City entered into an equipment finance-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 agreement bears interest at a rate of 3.42 % multiplied by the margin rate factor provided that the resulting 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 by (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 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 immediately due and the equipment required to be returned to the lessor. The total principal outstanding at June 30, 2024 was $5,766,349.

On October 31, 2018, the City entered into an equipment finance-purchase agreement in the amount of $3,556,613 to finance the Citywide Street Light Acquisition and Conversion Project. The agreement 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 maximum federal corporate tax rate newly in effect multiplied by (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 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 immediately due and retake possession of the property. The total principal outstanding at June 30, 2024 was $2,500,591.

Fiscal Year
Ending
June 30, Principal Interest
2025 601,244$ 49,244 $
2026 615,207 35,280
2027 504,256 21,041
2028 111,524 9,505
2029 114,589 6,440
2030 117,774 3,255
Total 2,064,594$ 124,765 $
Gov ernmental Activ ities
59 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 11: LONG-TERM LIABILITIES (CONTINUED)

2. Notes Payable

On March 28, 2019, the City’s Public Financing Authority entered into a Section 108 loan agreement with the U.S. Department of Housing and Urban Development in the amount of $2,000,000, bearing interest at 2.54% to finance improvements to Bud Bender Park. Annual principal payments through August 1, 2038 range from $81,000 to $132,000, paid semi-annually. Payments 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. The total principal outstanding at June 30, 2024 was $1,706,000.

The City entered into a 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. There are no provisions in the event of default and no assets were held as collateral. Sewer connection fees and treatment plant expansion fees paid by property owners connecting to the sewer line will reimburse the County for the construction costs commencing January 31, 1998. The total principal outstanding at June 30, 2024 was $383,555.

B. Bonds

On December 12, 2023, the City’s Public Financing Authority entered into a bond purchase agreement issuing bonds in the amount of $61,074,213, consisting of principal of $56,525,000 plus a premium of $4,874,231 less an underwriter's discount of $325,019, bearing interest ranging from 5.00% to 5.25% to finance construction of a new police station. Annual principal payments through June 1, 2048 range from $1,030,000 to $2,875,000, paid annually.

Payments on the loan are made from rental payments made by the City. The total principal outstanding at June 30, 2024 was $56,525,000.

C. Collateralized Debt – Concessionaire Agreement

The Rialto Utility Authority entered into an agreement on March 27, 2012 with Rialto Water Services, LP (the Concessionaire) to provide services with respect to the Utility Facilities for a term of 30 years. As part of the agreement, 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 defeased the previous debt of the Utility Authority. The City contributed $5,093,528 to the 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 interest rates of 6.293% and 8.969%, respectively. Revenue earned in the Water and Wastewater Enterprise Funds is pledged to repay the collateralized debt with the Concessionaire. See Note 16 for further information regarding the agreement. The total principal outstanding at June 30, 2024 was $142,210,034.

The City has pledged future water customer revenues, net of specified 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 $50,500,388 as of June 30, 2024. Principal and interest paid for the current year and total customer net revenues (expenses) (operating income plus depreciation) available to pay the principal and interest were $943,000 and $1,957,000, respectively.

The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay $130,472,604 in wastewater 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 wastewater customer net revenues and are payable through November 2042. The total principal and interest remaining to be paid on the bonds is $233,524,939 as of June 30, 2024. Principal and interest paid for the current year and total customer net revenues (operating income less depreciation) available to pay the principal and interest were $2,382,110 and $10,299,891, respectively.
60 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 11: LONG-TERM LIABILITIES (CONTINUED)

As part of the concession agreement, the Concessionaire provided 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 Provide operating funds for expenses Initial funding of reserve accounts 1,000,000 1,000,000 Provide funds for routine repairs Provide funding of reserve
accounts 5,503,530 2,971,001 Fund reserve 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.

The capital charges to be paid by the Concessionaire are effectively debt service payments for providing the financing. The Authority received proceeds in exchange for pledging specific future revenues from the Utilities. The Authority maintains active involvement in the utilities as the Authority is responsible for setting user fees and will approve and oversee improvements to the facilities.

D. No Commitment Debt

On August 8, 2006, the City issued Special Tax Bonds totaling $5,035,000 pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Proceeds of the bonds provided for the construction 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 refunded with the 2016 Bonds with a principal amount totaling $4,905,000. The 2016 Bond proceeds 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 Resolution. 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 fiduciary capacity in its Custodial Funds. At June 30, 2024, bonds outstanding totaled $3,885,000.
61 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOT
E 11: LONG-TERM LIABILITIES (CONTINUED)
On September 26, 2023, the City of Rialto Community Facilities District No 2020-1 entered into a bond purchase agreement issuing bonds in the amount of $16,631,639, consisting of principal of $16,840,000 less a discount of $44,496 and underwriter's discount of $163,865, bearing interest ranging from 5.00% to 5.75% to finance certain capital facilities of the City and the West Valley Water District. Annual principal payments through June 1, 2048 range from $20,000 to $7,035,000, paid annually. The total principal outstanding at June 30, 2024 was $16,631,639.

The bonds are limited obligations of the District, payable solely from the Special Taxes and certain funds described in the Bond Resolution. 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 fiduciary capacity in its Custodial Funds. At June 30, 2024, bonds outstanding totaled $16,840,000.

E. Co
mpensated Absences
The Cit
y 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, 2024 for the governmental activities is $12,495,761 and for the business-type activities is $38,088. Funding for the liability is expensed to come primarily from the General Fund for governmental and business-type activities, respectively.

F. Change in Long-Term Liabilities
Cha
nges in the City’s long-term liabilities for the year ended June 30, 2024, are as follows:

Amount
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Governmental activities
Direct borrowings
Financed purchase agreements 10,257,268 $ - $
579,133$
9,678,135$ 611,085$
Notes payable 1,706,000 - - 1,706,000 177,000 Total direct borrowings 11,963,268 - 579,133
11,384,135 788,085
Bonds - 56,525,000 - 56,525,000 -
Bond Premium 4,874,232
- 4,874,232 -
Leases 124,376 - 61,090
63,286
63,286
Subscriptions 760,734 2,004,893
701,033
2,064,594 601,244
Compensated absences 10,490,460 4,622,979
2,617,678 12,495,761 2,249,237
Claims 27,845,895 6,564,286
4,538,218 29,871,963 5,376,953
Total governmental activities 51,184,733$ 74,591,390$ 8,497,152$ 117,278,971$ 9,078,805$ Business-type activities
Direct borrowings
Notes payable 383,555$ -$
-$
383,555$ -$
Total direct borrowings 383,555 - - 383,555 - Debt with concessionaire
Wastewater 114,438,869 - 2,382,108
112,056,761 2,596,507
Water 31,096,273 - 942,999
30,153,274 1,002,346
Total debt with concessionaire 145,535,142 - 3,325,107 142,210,035 3,598,853
Compensated absences 64,406 29,578 54,700 39,284 6,945 Total business-type activities 145,983,103$ 29,578$ 3,379,807$ 142,632,874$ 3,605,798$ 62 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 11: LONG-TERM LIABILITIES (CONTINUED)

The debt service requirements for the City’s debts are as follows:

June 30 Principal Interest Principal Interest Principal Interest Principal Interest 2025 611,963$ 339,685 $ 177,000 $ 108,161 $ - $ 2,868,175$ 788,963 $ 3,316,021 $ 2026 646,744 316,795 93,000 50,437 - 2,868,175 739,744 3,235,407 2027 686,443 292,866 96,000 47,791 1,030,000 2,868,175 1,812,443 3,208,832 2028 726,859 267,527 99,000 44,998 1,085,000 2,816,675 1,910,859 3,129,200 2029 772,631 240,874 102,000 42,055 1,140,000 2,762,425 2,014,631 3,045,354 2030-2034 4,083,256 750,920 555,000 158,585 6,610,000 12,898,625 11,248,256 13,808,130 2035-2039 2,150,239 152,553 584,000 57,405 8,425,000 11,073,375 11,159,239 11,283,333 2040-2044 - - - - 10,755,000 8,745,375 10,755,000 8,745,375 2045-2049 - - - - 13,730,000 5,773,375 13,730,000 5,773,375 2050-2054 - - - - 13,750,000 1,850,625 13,750,000 1,850,625 Totals 9,678,135$ 2,361,220 $ 1,706,000 $ 509,432 $ 56,525,000$ 54,525,000 $ 67,909,135 $ 57,395,652 $ June 30 Principal Interest Principal Interest Principal Interest 2025 2,596,507$ 10,085,493$ 1,002,346$ 1,897,654$ 3,598,852$ 11,983,148$ 2026 2,830,201 9,851,799 1,065,427 1,834,573 3,895,628 11,686,372 2027 3,084,929 9,597,071 1,132,478 1,767,522 4,217,407 11,364,593 2028 3,362,583 9,319,417 1,203,749 1,696,251 4,566,332 11,015,668 2029 3,665,227 9,016,773 1,279,505 1,620,495 4,944,732 10,637,268 2030-2034 23,909,742 39,500,258 7,711,644 6,788,356 31,621,386 46,288,614 2035-2039 36,788,681 26,621,319 10,463,516 4,036,484 47,252,197 30,657,803 2040-2043 35,818,891 7,476,048 6,294,608 705,780 42,113,499 8,181,828 Totals 112,056,761$ 121,468,178$ 30,153,273$ 20,347,115$ 142,210,034 141,815,293$ Plus: note payable without repayment schedule 383,555
142,593,589$
with Concessionaire with Concessionaire Total Business-Type Activities Financed Purchase Agreements Notes Payable Total Governmental Activities Wastewater Debt Water Debt
Bonds Payable
Governmental Activities
Business-Type Activities
63 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 12: FUND BALANCE CLASSIFICATIONS

At June 30, 2024, the governmental funds report the following fund balance classifications:

NOTE 13: INTERFUND ACTIVITIES

A. Interfund Receivables and Payables

The composition of interfund balances as of June 30, 2024, is as follows:

1. Due to/from Other Funds

The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. These amounts also include balances of working capital loans made to several nonmajor governmental funds, which the general fund expects to collect in the subsequent year.

Park Total Total
Development Capital Police Station Nonmajor Governmental General Fund Fund Projects Fund Capital Projects Funds Funds Nonspendable
Inventories 113,385$ -$ -$ -$ -$ 113,385$ Land held for resale 719,969 - - - - 719,969 Prepaid costs 169,784 - - - - 169,784 Advances to other funds 17,492,605 - - - - 17,492,605 Total nonspendable 18,495,743 - - - - 18,495,743 Restricted
General government - - - - 52,084,363 52,084,363 Public safety - - - - 26,317,199 26,317,199 Community development - - - - 64,249,344 64,249,344 Capital projects - - 50,587,429 - 3,919,947 54,507,376 Debt service - - - - 571,785 571,785 Deposits 6,111,419 - 9,922,862 - - 16,034,281 Total restricted 6,111,419 - 60,510,291 - 147,142,638 213,764,348 Committed
Economic uncertainty reserve 36,295,841 - - 59,396,312 - 95,692,153 Total committed 36,295,841 - - 59,396,312 - 95,692,153 Unassigned 72,308,014 (1,814,978) - - (2,084,994) 68,408,042 Total fund balances (deficits) 133,211,017$ (1,814,978)$ 60,510,291$ 59,396,312$ 145,057,644$ 396,360,286$ Receivable Fund Payable Fund Amount
General fund Nonmajor governmental funds 2,860,154$
Water fund General fund 200,751
Wastewater Enterprise Fund General fund 710,487
Internal Service Funds General fund 17,740
Total 3,789,132$
64 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NO
TE 13: INTERFUND ACTIVITIES (CONTINUED)

2. Advances to/from Other Funds
The amounts payable to the general fund relate to working capital loans made to several nonmajor governmental funds. None of the balance is scheduled to be collected in the subsequent year.

B. Interfund
Transfers
The co
mposition of interfund transfers for the year ended June 30, 2024, is as follows:

Transfers from the general fund to the other funds are to finance various programs accounted for in the other funds in accordance with budgetary authorizations. Other transfers to the general fund from the other funds are generally for the refunding of capital or other operating costs incurred by the general fund on behalf of the other funds.

Receivable Fund Payable Fund Amount
Advances
General fund Park Development Fund 10,892,605$
General fund Water Enterprise Fund 6,600,000
Wastewater Enterprise Fund Water Enterprise Fund 3,000,000 Total 20,492,605$
Nonmajor Water Nonmajor
General Capital Projects Governmental Enterprise Enterprise Fund Fund Funds Fund Fund
Transfers out
General fund - $ 24,983,420$ 1,389,820$ 5,300,000$ 8,220$ Capital projects fund - - 500,000 - - Nonmajor governmental funds 11,770 - 400,000
- -
Water enterprise fund 5,300,000 - - - -
Total 5,311,770$ 24,983,420$ 2,289,820$ 5,300,000$ 8,220$ Total
Transfers out
General fund 31,681,460$
Capital projects fund 500,000
Nonmajor governmental funds 411,770
Water enterprise fund 5,300,000
Total 37,893,230$
Transfers in
65 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 14:

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

The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City’s legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the City.

NOTE 15: TAX ABATEMENTS
The City has negotiated certain tax abatement agreements with two entities in the distribution industry to abate 50 percent of sales taxes due to the City from these entities. These agreements are for twenty years, with no maximum abatement ceiling. The entities have the sole option to extend the agreements at the conclusion of the term. As a result of this tax abatement agreement, the City’s sales taxes were reduced by $5,252,409 in the current fiscal year.

NOTE 16: CONCESSIONAIRE AGREEMENT
The City owns certain revenue producing water and wastewater enterprise facilities (Utility Facilities) which the City leases to the Rialto 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 Concessionaire) to provide services with respect to the Utility Facilities for a term of 30 years and the City approved such selection as set forth in City Resolution 6095 and Authority Resolution 05-12. 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.

A. Wastewater Facility
The Cit
y continues to own the Wastewater 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 facilities to perform the services required under the agreement. Section 5.1 of the agreement specifies the services to be performed by the Concessionaire which include operating and performing maintenance 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 Authority is responsible for selection of location and facilities for the off-site disposal of the sewage sludge delivered by the Concessionaire to a staging are located at the wastewater facility 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 fees, (c) wastewater treatment charges, assessments and fees and (d) other revenue or income derived from use and operation of the Wastewater Facility. All Wastewater Facility User Fees are to be deposited in a Lockbox Account in accordance with the trust agreement.

The Authority and the City are to establish all rates with respect to the Wastewater Facility User Fees in an amount sufficient to pay all compensation to the 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.
66 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 16: CONCESSIONAIRE AGREEMENT (CONTINUED)
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 Wastewater Fixed Component is to pay for the services of the Concessionaire to operate the Wastewater Facility (excluding, however, the services and compensation that are otherwise expressly provided elsewhere in the agreement) and the costs for maintenance consumables. The Wastewater Fixed Component is adjusted 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.

The Wastewater Chemical Component is to reimburse the Concessionaire for chemicals used in the operation of the Wastewater Facility. Following each 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 Labor 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 2023-24 for the Wastewater Fixed Fee, which is included in the cost of sales and services expense in the Wastewater Fund, totaled $7,689,274 detailed as follows:

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 2042 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 mark 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 components of these reimbursable amounts.

The Authority is required to pay a capital charge of $12,682,000 annually for a period of 30 years to pay for the financing provided by the Concessionaire (see Note 9). The capital charges for the period are set for a specific amount through June 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 amount for a specific period for providing services related to the construction of the Wastewater Facility Improvements.

A. 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 services required under the agreement. Section 11.1 of the agreement specifies the services to be performed by the Concessionaire which include operating and performing maintenance of the water facility, water facility improvements, staffing the water facility, monitoring of the quality of the water, purchasing supplies for the facility, billing and collection fees and other services to operate the facility.

Actual
Wastewater Fixed Component 2,678,613 $
Wastewater Routine R&R Component 274,996
Wastewater Chemical Component 879,933
Wastewater Labor Component 3,855,732
Total Wastewater Fixed Fee 7,689,274 $
67 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOT
E 16: CONCESSIONAIRE AGREEMENT (CONTINUED)
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) water connection charges, water user connection deposits, and assessments and fees, (c) water delivery charges, assessments and fees and (d) other revenue or income derived from use and operation of the Water Facility. All Water Facility user fees are to be deposited in a Lockbox Account in accordance with the trust agreement.

The Authority and the City are to establish all rates with respect to the Water Facility User Fees in an amount sufficient to pay all compensation to the Concessionaire 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 Ro
utine R&R Component (c) Water Chemical Component and (d) Water Labor Component. The Wate r Fixed
Component is to pay for the services of the Concessionaire to operate the Water facility (excluding, however, the se
rvices and compensation that are otherwise expressly provided elsewhere in the agreement) and the cost s for mainte
nance consumables. The Water Fixed Component is adjusted each contract year by a Water Adjustment Escalator. The Water Routine R&R Component is for services related to the routine repair and replacement of the Water Facilit
y which is also adjusted each contract year by a Wastewater Adjustment Escala tor. The Water Chemi
cal Component is to reimburse the Concessionaire for chemicals used in the operation of the Water Facility.

Following each contract year, the chemical component is subject to a reconciliation and adjustment process to reimburse the Concessionaire to pay only for actual costs. The Water Labor Component is to pay the Concessionaire for labor costs. After the first year, this amount is adjusted by the Water Labor Adjustment Escalator.

The amount paid in fiscal year 2023-24 for the Water Fixed Fee, which is included in the cost of sales and services expense in the Water Fund, totaled $6,648,593 detailed as follows:

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 Operating R&R Reimbursement and (c) Wate
r Excess Routine R&R Reimbursement. Section 4.3 of the concession agreement provides ad ditional informatio
n of the various components of these reimbursable amounts.

The Autho
rity 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 Concessionaire. 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 capital charges related to the Water Facility may be adjusted in accordance with Section 2.5 or increased as provided in Section 14.8 of the concession agreement.

Actual
Water Fixed Component 2,779,787 $
Water Routine R&R Component 274,996
Water Chemical Component 63,094
W
ater Labor Component 3,530,716
Total Water Fixed Fee 6,648,593$
68 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOT
E 16: CONCESSIONAIRE AGREEMENT (CONTINUED)
The Concessionaire is also to be compensated for a specific amount for a specific period for providing services related to the construction of the Water Facility Improvements.

NOTE 17: RELATED PARTY AGREEMENTS
On May 1, 2001, the Utility Authority entered into an agreement with the City to lease the Waste and Wastewater Utilities. Payments are to be paid by the Utility Authority to the City from the Water and Wastewater Utility Fund funded by surplus utility revenues. All of the surplus revenues have been irrevocably pledged for these purposes.

The annual lease payments are reflected as expenses and income among the respective funds.

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 and substantive amendments to the Dissolution Act based on experience to date at 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 Agency was created for each Dissolved RDA which is the sponsoring community of the Dissolved 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 oversight boards is to administer the wind down of each Dissolved RDA which includes making 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 Auditor-Controller for distribution to the affected taxing entities.

The Dissolution Act allowed the sponsoring community that formed 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 become 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, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

In the current and future fiscal years, the Successor Agency will only be allocated revenue from the County of San Bernardino in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the Dissolved RDA until all enforceable obligations of the Dissolved RDA have been paid in full and all assets have liquidated.
69 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024

NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)

The assets and liabilities of the former Redevelopment Agency (Agency), except for assets related to the low- and moderate-income housing fund, were transferred 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 acting in a fiduciary capacity for the assets and liabilities. Disclosure related to assets and liabilities are as follows:

A. 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 Facilities.

These proceeds totaled $2,717,131. Under the Cooperative Agreement, the District will forego tax increment revenues that otherwise would have been transferred to it by the Agency pursuant to two pass-through agreements by and between 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 Agency were calculated to be sufficient to cover the portion 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 transferred to the Successor Agency Private-Purpose Trust Fund and the amount of pass-through amounts to be retained are administered by the County of San Bernardino. As of June 30, 2024, $2,166,941 of this 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 District to assist the District in financing a portion of the cost of the Rialto Unified School District Facilities. These proceeds totaled $2,281,402. Under the Cooperative Agreement, the District will forego tax increment revenues that otherwise would have been transferred to it by the Agency pursuant to two pass-through agreements by and between 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 Agency were calculated to be sufficient to cover the portion 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, 2024, $2,011,046 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 6.19%. 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 $1,471,077 at June 30, 2024.

The Agency administered a façade improvement loan program, which 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 required 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 financial statements. 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 amount of façade improvement loans at June 30, 2024 is $255,315.

B. Property Held for Resale

Property held for resale was generally acquired in the normal course of the Agency activity and is recorded at the lower of acquisition cost or estimated net 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, 2024, the Successor Agency’s property held for resale is valued at a cost basis of $25,570,079, less an adjustment to the basis in the amount of $(5,880,224), for a net book value of $19,689,855. 70 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOT
E 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
C. Capital Assets
A summa
ry of changes in the Successor Agency’s capital assets at June 30, 2024 is as follows:

D. Long-ter
m Obligations
The followi
ng is a summary of the Successor Agency’s long-term obligations for the year ended June 30, 2024:
$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 mandatory sinking fund payments beginning on September 1 in each year and commencing September 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 issue premium of $181,214 and is payable from redevelopment property tax trust fund revenues received by Successor Agency. The total principal outstanding at June 30, 2024 was $21,650,000. $21,965,000 Rialto Redevelopment Agency Tax Allocation Bonds Merged Project Area 2008 Series C, maturing in serial and term fashion through September 1, 2037. The term portion of the bond is subject to mandatory sinking fund payments beginning on September 1 in each year and commencing September 1, 2019. Annual principal payments on the bonds range from $250,000 to $1,725,000. 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 issue premium of $149,393 and is payable from redevelopment property tax trust fund revenues received by Successor Agency. The total principal outstanding at June 30, 2024 was $15,720,000.

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Successor Agency activities:

Capital assets, not being depreciated/amortized
Land 290,347$ -$ -$
290,347$
Total capital assets, not being depreciated/amortized 290,347 - - 290,347 Capital assets, being depreciated/amortized
Buildings and other structures 97,647 - - 97,647 Improvements other than buildings 285,647 - - 285,647 Total capital assets, being depreciated/amortized 383,294 - - 383,294 Less accumulated depreciation/amortization
Buildings and other structures (39,121) (1,956) - (41,077) I
mprovements other than buildings (285,647) - - (285,647) T
otal accumulated depreciation/amortization (324,768) (1,956) - (326,724) T
otal capital assets, being depreciated/amortized, net 58,526 (1,956) - 56,570 T
otal Successor Agency activities capital assets 348,873$ (1,956)$ -$ 346,917$
Amount
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Successor Agency activities
Bonds payable
Tax allocation bonds 106,395,000 $ - $
4,750,000$ 101,645,000$ 5,010,000$
Premiums 4,375,324 - 497,369
3,877,955 -
Discounts (58,019) - 11,884
(69,903) -
Total Successor Agency activities 110,712,305$ -$
5,259,253$ 105,453,052$ 5,010,000$
71 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOT
E 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
$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 Tax 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 funds 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 September 1 of each year at the rate of 3% to 5%. The reported amount outstanding includes the unamortized original issue premium of $252,508 and is payable from redevelopment property tax trust fund revenues received by Successor Agency. The total principal outstanding at June 30, 2024 was $6,245,000.

On July 30, 2015, the Successor Agency issued $20,640,000 in Tax 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 plus the 2005 Series A refunded bonds available funds of $3,178,113 will be used to refund the bonds in the amount of $23,885,000, pay for the interest payment due as of September 1, 2015 of $545,465, and pay for the cost of issuance totaling $501,500. The 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 March 1 and September 1 of each year at the rate of 4% to 5%. The reported amount outstanding includes the unamortized original issue premium of $554,260 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency. The total principal outstanding at June 30, 2024 was $20,640,000.

On July 30, 2015, the Successor Agency issued $15,290,000 in Tax 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 amount 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 reported amount outstanding includes the unamortized original issue discount of $38,109 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency. The total principal outstanding at June 30, 2024 was $7,255,000.

On July 30, 2015, the Successor Agency issued $8,205,000 in Tax Allocation Revenue Refunding Bonds, 2015 S
eries 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 used to refund the bonds in the amount of $9,045,000, pay for the interest payment due as 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 $31,794 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency.

The total principal outstanding at June 30, 2024 was $5,030,000.

On January 24, 2018, the Successor Agency issued $28,480,000 in Tax Allocation Revenue Refunding Bonds, 2018 Se
ries 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 premium 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 issuance totaling $451,661. The advance refunding fully repaid the 2008 Series A bonds. Annual principal payments on the bonds range from $420,000 to $5,055,000. Interest is paid 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 premium of $2,740,580 and is payable from redevelopment property tax trust fund revenues received by the Successor Agency. The total principal outstanding at June 30, 2024 was $25,105,000. 72 CITY OF RIALTO, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2024
The annual requirements to amortize outstanding long-term debt other compensated absences are as follows:

NOTE 18: SUCCESSOR AGE NCY DISCLOSURES (CONTINUED)
E. Other Commitments
The Agency had entered into two Cooperative Agreements with the Rialto Unified School Dis trict (RUSD) under which the Agency advanced funds from the 2005 an d 2008 tax allocation bond issues to pay for school improvements. The RUSD pledged its pass-through payment entitlements under various agreements with the Agency to repay its share of the debt service on the tax allocation bonds. In accordance with the 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 service reserve and released the balance to the RUSD. Under the terms of the 2008 Cooperative Agreements, 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 s ervice 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 the 2015 bonds. At June 30, 2024, the amount committed under these agreements totaled $240,911. The amount includes the 2008 and 2015 bonds. On February 1, 2012, the Succes
sor Agency as sumed all res ponsibilities under the agreements. Future payments, if any, will be requested through the semi-annual Redevelopment Property Tax Trust Fund (FPTTF) distribution process.

NOTE 19: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disc losure through June 27, 2025, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2024, that required recognition or disclosure in these financial statements. 73 CITY OF RIALTO, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2024 2023 2022 2021 2020
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019

TOTAL PENSION LIABILITY
Service cost 2,810,889$ 2,384,818 $ 2,090,638 $ 2,051,976 $ 1,791,482$ Interest on total pension liability 11,036,170 10,467,478 10,134,642 9,773,601 9,347,753 Changes of benefit terms 239,822 - - - -
C
hanges of assumptions - 5,063,120 - - -
D
ifference between expected and actual experience 3,407,306 463,355 724,123 1,702,384 623,582 Benefit payments, including refunds of employee
contributions (8,785,508) (8,155,607) ( 7,723,398) (7,315,654) (6,716,222) Net change in total pension liability 8,708,679 10,223,164 5,226,005 6,212,307 5,046,595 Total pension liability-beginning 159,284,667 149,061,503 143,835,498 137,623,191 132,576,596 Total pension liability-ending (a) 167,993,346 159,284,667 149,061,503 143,835,498 137,623,191

PLAN FIDUCIARY NET POSITION
Contributions-employer 7,812,395 4,951,534 4,936,398 4,154,462 3,600,870 Contributions-employee 1,332,851 891,608 1,183,351 1,030,303 887,762 Net investment income 6,799,863 (9,081,623) 22,368,446 4,856,489 6,111,526 Benefit payments, including refunds of employee
contributions (8,785,508) (8,155,607) (7,723,398) (7,315,654) (6,716,222) Net plan to plan resource movement 142 - - - -
Adm
inistrative expense (80,601) (75,424) (100,307) (137,911) (67,087) Other miscellaneous income/(expense) - - - - 218
Net change in fiduciary net position 7,079,142 (11,469,512) 20,664,490 2,587,689 3,817,067 Plan fiduciary net position-beginning 109,608,626 121,078,138 100,413,648 97,825,959 94,008,892 Plan fiduciary net position-ending (b) 116,687,768 109,608,626 121,078,138 100,413,648 97,825,959 Net pension liability/(asset) (a) - (b) 51,305,578$ 49,676,041$ 27,983,365$ 43,421,850$ 39,797,232$ Plan fiduciary net position as a percentage of the
total pension liability 69.5% 68.8% 81.2% 69.8% 71.1%
Covered payroll 13,394,352$ 11,084,467 $ 8,852,154 $ 10,122,181 $ 9,074,473$ Plan net pension liability/(asset) as a percentage of
covered payroll 383.0% 448.2% 316.1% 429.0% 438.6%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions : None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from 7.65% to 7.15%.

In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65 % (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 74 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 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 8,989,575 419,804 1,827,857 12,528,234 (6,402,730) (5,823,917) (5,586,314) (5,329,662) (5,117,502) (218) - 28,412 1,212 -
(138,851) (120,679) (50,761) (93,780) - (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 $ 9,966,210 $ 9,138,652 $ 9,062,246$ 370.8% 397.9% 366.6% 337.0% 328.9%
75 CITY OF RIALTO, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
As of June 30, for the Last Ten Fiscal Years
2024 2023 2022 2021 2020
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019

TOTAL PENSION LIABILITY
Service cost 7,203,683$ 6,987,480 $ 6,068,460 $ 5,368,782 $ 4,820,128$ Interest on total pension liability 24,355,579 22,696,112 22,123,384 20,986,672 19,950,664 Changes of benefit terms 140,014 - - - -
C
hanges of assumptions - 6,527,700 - - -
D
ifference between expected and actual experience 10,366,524 (1,037,356) 2,800,717 2,381,715 (1,417,660) Benefit payments, including refunds of employee
contributions (17,110,409) (15,385,586) ( 13,875,382) (13,340,458) (12,534,003) Net change in total pension liability 24,955,391 19,788,350 17,117,179 15,396,711 10,819,129 Total pension liability-beginning 347,426,238 327,637,888 310,520,709 295,123,998 284,304,869 Total pension liability-ending (a) 372,381,629 347,426,238 327,637,888 310,520,709 295,123,998

PLAN FIDUCIARY NET POSITION
Contributions-employer 14,713,973 10,598,121 10,425,758 8,902,873 7,807,973 Contributions-employee 3,634,578 3,368,640 4,241,728 3,347,779 2,872,745 Net investment income 15,916,206 (20,799,581) 50,593,378 10,639,176 13,315,731 Benefit payments, including refunds of employee
contributions (17,110,409) (15,385,586) (13,875,382) (13,340,458) (12,534,003) Net plan to plan resource movement (142) - - - -
Adm
inistrative expense (185,157) (170,799) (222,783) (301,365) (144,475) Other miscellaneous income/(expense) - - - - 470
Net change in fiduciary net position 16,969,049 (22,389,205) 51,162,699 9,248,005 11,318,441 Plan fiduciary net position-beginning 251,792,714 274,181,919 223,019,220 213,771,215 202,452,774 Plan fiduciary net position-ending (b) 268,761,763 251,792,714 274,181,919 223,019,220 213,771,215 Net pension liability/(asset) (a) - (b) 103,619,866$ 95,633,524$ 53,455,969$ 87,501,489$ 81,352,783$ Plan fiduciary net position as a percentage of the
total pension liability 72.2% 72.5% 83.7% 71.8% 72.4%
Covered payroll 19,151,677$ 18,203,551 $ 17,121,438 $ 15,446,426 $ 14,498,370$ Plan net pension liability/(asset) as a percentage of
covered payroll 541.0% 525.4% 312.2% 566.5% 561.1%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:

In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65 % (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate. 76 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 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 19,120,363 857,197 3,784,587 25,296,028 (11,944,712) (11,120,451) (10,446,639) (9,966,418) (9,361,045) (470) - ( 28,412) (1,048) -
(294,963) (253,771) (105,111) (194,077) - (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 $ 16,056,944 $ 15,545,592 $ 14,083,225$ 515.7% 583.1% 510.5% 455.4% 484.9%
77 CITY OF RIALTO, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2024 2023 2022 2021
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020

TOTAL OPEB LIABILITY
Service cost 1,560,087$ 1,425,124 $ 2,940,821 $ 2,226,583$ Interest on total pension liability 2,579,376 2,911,149 2,011,797 2,109,724 Changes of assumptions - 2,268,847 (24,441,690) 2,813,462 Difference between expected and actual experience - (3,852,637) - (2,268,284) Benefit payments, including refunds of employee (2,425,536) contributions -
(2,418,752) (2,390,886) (2,236,759)
Net change in total OPEB liability 1,713,927 333,731 (21,879,958) 2,644,726 Total OPEB liability-beginning 44,904,891 44,571,160 66,451,118 63,806,392 Total OPEB liability-ending (a) 46,618,818 44,904,891 44,571,160 66,451,118

PLAN FIDUCIARY NET POSITION
Contributions-employer 1,155,097 10,848,268 1,075,428 862,089 Net investment income 1,469,740 (3,763,147) 4,609,016 530,339 Benefit payments, including refunds of employee
contributions (2,425,536) (2,418,752) (2,390,886) (2,236,759) Administrative expense - - - -
O
ther miscellaneous income/(expense) 252,162 - - - Net change in fiduciary net position 451,463 4,666,369 3,293,558 (844,331) Plan fiduciary net position-beginning 25,975,558 21,309,189 18,015,631 18,859,962 Plan fiduciary net position-ending (b) 26,427,021 25,975,558 21,309,189 18,015,631 Net OPEB liability/(asset) (a) - (b) 20,191,797$ 18,929,333$ 23,261,971$ 48,435,487$ Plan fiduciary net position as a percentage of the
total OPEB liability 56.7% 57.8% 47.8% 27.1%
Covered-employee payroll 34,214,417$ 33,217,881 $ 30,584,493 $ 29,143,307$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 59.0% 57.0% 76.1% 166.2%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown.

Benefit Changes : None
Changes of Assumptions : None
78 2020 2019 2018
6/30/2019 6/30/2018 6/30/2017
2,094,466$ 1,928,465 $ 2,083,035$
2,080,962 2,068,297 1,874,471
1,193,708 1,811,535 (3,897,172)
- - -
(2,070,376) (1,969,858) (2,009,296)
3,298,760 3,838,439 (1,948,962)
60,507,632 56,669,193 58,618,155
63,806,392 60,507,632 56,669,193
635,898 3,260,163 2,967,326
1,144,549 1,243,147 1,806,286
(2,070,376) (1,969,858) (2,009,296)
(40,610) (34,725) (71,750)
- - -
(330,539) 2,498,727 2,692,566
19,190,501 16,691,774 13,999,208
18,859,962 19,190,501 16,691,774
44,946,430$ 41,317,131 $ 39,977,419 $

29.6% 31.7% 29.5%
25,076,875$ 24,383,667 $ 37,244,900$
179.2% 169.4% 107.3%
79 CITY OF RIALTO, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years 1
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2024 7,514,763$ 7,514,763$ -$ 14, 111,334$ 5 3 . 3 % 2023 9,306,167 9,306,167 -
13,394,352 69.5%
2022 6,239,612 6,239,612 -
11,084,467 56.3%
2021 5,583,492 5,583,492 - 8
,852,154 63.
1%
2020 5,064,812 5,064,812 -
10,122,181 50.0%
2019 4,450,956 4,450,956 - 9,
074,473 49.
0%
2018 4,025,277 4,025,277 -
10,400,541 38.7%
2017 3,388,812 3,388,812 -
10,035,098 33.8%
2016 2,241,922 2,241,922 - 9,
966,210 22.
5%
2015 2,252,080 2,252,080 - 9,
138,652 24.
6%
2024 15,051,313$ 15,051,313$ -$ 19,
868,535$ 7 5 . 8 %
2023 18,768,033 18,768,033 -
19,151,677 98.0%
2022 14,678,684 14,678,684 -
18,203,551 80.6%
2021 13,413,121 13,413,121 -
17,121,438 78.3%
2020 12,248,971 12,248,971 -
15,446,426 79.3%
2019 10,754,325 10,754,325 1
4,498,370 74.2%
2018 9,921,278 9,921,278 -
15,871,203 62.5%
2017 6,593,836 6,593,836 -
15,522,578 42.5%
2016 6,693,398 6,693,398 -
16,056,944 41.7%
2015 6,119,336 6,119,336 -
15,545,592 39.4%
2024 3,142,763$ 811,810$
2,330,953$ 32,608,928$ 2.5%
2023 3,511,344 896,978 2,614,366 34,214,417 2.6%
2022 3,417,101 10,848,268 (7,431,167) 33,217,881 32.7% 2021 3,232,616 1,075,428 2,157,188 30,584,493 3.5%
2020 2,
820,893 862,089 1,958,804 29,143,307 3.0%
2019 2,607,829 635,898 1,971,931 25,076,875 2.5%
2018 2,588,874 3,260,163 (671,289) 24,383,667 13.4%
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown.

Miscellaneous Agent, Multiple-Employer Pension Plan
Safety Agent, Multiple-Employer Pension Plan
Single Employer OPEB Plan
80 CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 100,759,606$ 100,759,606 $ 134,201,542 $ 33,441,936$ Licenses and permits 5,774,700 5,774,700 6,764,031 989,331 Intergovernmental 5,230,840 5,230,840 6,229,588 998,748 Charges for services 11,673,610 11,713,110 10,175,424 (1,537,686) Use of money and property 3,354,500 3,354,500 12,934,560 9,580,060 Fines and forfeitures 825,000 825,000 972,394 147,394 Other Income 1,831,550 2,930,982 4,222,037 1,291,055 Total revenues 129,449,806 130,588,738 175,499,576 44,910,838

EXPENDITURES
Current:

General government 33,041,386 37,366,275 33,778,243 3,588,032 Public safety 66,292,453 67,726,995 65,380,430 2,346,565 Community development 26,010,502 26,882,624 20,580,281 6,302,343 Capital outlay 61,100 69,620 3,477,656 (3,408,036) Debt service:

Principal 268,100 268,100 1,025,535 (757,435) Interest 268,990 268,990 335,444 (66,454) Total expenditures 125,942,531 132,582,604 124,577,589 8,005,015 Excess (deficiency) of revenues
over (under) expenditures 3,507,275 (1,993,866) 50,921,987 52,915,853

OTHER FINANCING SOURCES (USES)
Transfers in 11,770 11,770 5,311,770 5,300,000 Transfers out (3,348,300) (31,681,460) (31,681,460) - Subs
cription proceeds - - 2,721,835 2,721,835
Total other financing sources (uses) (3,336,530) (31,669,690) (23,647,855) 8,021,835 Net change in fund balances 170,745$ (33,663,556)$ 27,274,132 60,937,688$ Fund balances (deficit)-beginning 105,936,885
Fund balances (deficit)-ending 133,211,017$
81 CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Park Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 400,000$ 400,000 $ 1,508,216 $ 1,108,216$ Use of money and property 139,460 139,460 185,739 46,279 Total revenues 539,460 539,460 1,693,955 1,154,495

EXPENDITURES
Capital outlay - 640,434 - 640,434
Total expenditures - 640,434 - 640,434
Net change in fund balances 539,460$ (100,974)$ 1,693,955 1,794,929$ Fund balances (deficit)-beginning (3,508,933)
Fund balances (deficit)-ending (1,814,978)$
82 CITY OF RIALTO, CALIFORNIA
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
NOTE
1: BUDGETS AND BUDGETARY ACCOUNTING
The City establishes accounting control through formal adoption 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 budgetary control, that is, the level at which expenditures cannot exceed appropriations, is the fund level for all General, Special Revenue and Debt Service Funds, and by project in the Capital 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, American Rescue Plan Act Special Revenue Fund. Department 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 Director, and department head approval are required to transfer appropriations from one program to another, and object codes within different expense categories within the same fund. However, all increases at the overall fund level must be approved by the City Council. All unencumbered budget appropriations, except for capital projects budgets, lapse at the end of each fiscal year. Throughout the fiscal year, the budget is amended to add supplemental appropriations. All changes to the budget require Council approval.

NOTE 2: EXCESS OF EXPENDITURES OVER APPROPRIATIONS
Annual budgets are adopted on a basis consistent with generally accepted accounting principles.

The following funds had excess expenditures over budget:

Budget Actual Variance
General Fund
Capital outlay 69,620 $ 3,477,656 $ (3,408,036) $ Principal 268,100 1,025,535 (757,435)
Interest 268,990 335,444 (66,454)
83 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments 10,602,448$ 197,199 $ 1,330,898 $ 1,210,303$ Receivables (net of allowance for uncollectible):

Accounts 101,957 - - 8,920
Due fr
om other governments 714,183 - 12,029 8,272 Not
es and loans -
- - -
Land held for
resale - - - -
Rest
ricted assets:

Cash and investments with fiscal agents - - - -
Total assets 11,418,588 197,199 1,342,927 1,227,495

LIABILITIES
Accounts payable 3,053,057 - 1,743 349,887
Accrued liabilities 1,469 - 341,711 3,600
Deposits payables - - - -
Due t
o other funds - - - -
Unear
ned revenues 101,957 - - -
Total liabilities 3,156,483 - 343,454 353,487

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 208,537 - - -
Total deferred inflows of resources 208,537 - - -

FUND BALANCES (DEFICITS)
Restricted 8,053,568 197,199 999,473 874,008 Unassigned - - - -
Total fund balances (deficits) 8,053,568 197,199 999,473 874,008 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 11,418,588$ 197,199$ 1,342,927$ 1,227,495$ Special Revenue Funds
Gas Tax Fund
Transportation
Enhancement
Activities Fund
Street Lighting
and Landscape
Maintenance
Fund
Landscape
Lighting District
No. 2 Fund
84 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
31,969,128$ 212,282 $ 129 $ 59,258$
-
89,964
- -
- 9,742 32 -
- - - -
- - - -
- - - -
31,969,128 311,988 161 59,258
199,407 - - -
- 30,164 - -
- - - -
- - - 57,261
-
50,966
- -
199,407 81,130 - 57,261
- 9,742 - -
- 9,742 - -
31,769,721 221,116 161 1,997
-
-
- -
31,769,721 221,116 161 1,997
31,969,128$ 311,988 $ 161 $ 59,258$
Special Revenue Funds
Traffic
Development
Fund
Office of
Traffic Safety
Fund
Retirement
Tax Fund
American
Rescue Plan
Act
85 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
2,489,123$ 4,384,414 $ 366,061 $ 10,060,815$ -
-
- 250,306
-
-
- 431,532
-
-
- -
- - - -
- - - -
2,489,123 4,384,414 366,061 10,742,653 580 1,035 - 420,124
-
-
- -
- - - -
- - - -
- - - 431,532
580 1,035 - 851,656
- - - 975,828
- - - 975,828
2,488,543 4,383,379 366,061 8,915,169 -
-
- -
2,488,543 4,383,379 366,061 8,915,169 2,489,123$ 4,384,414 $ 366,061 $ 10,742,653$ Special Revenue Funds
Open Space
Development
Fund
General
Facilities
Development
Fund
Library
Facilities
Development
Fund
Major Grant
Funding Fund
86 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
3,622,425$ 1,295,233 $ 7,594,360 $ 798,433$ -
-
68,210 34,648
-
-
- -
- - - -
- - - -
- - - -
3,622,425 1,295,233 7,662,570 833,081 737 1,202 705,269 2,883
-
-
8,936 2,847
-
-
- -
- - - -
- - - 34,648
737 1,202 714,205 40,378
- - - -
- - - -
3,621,688 1,294,031 6,948,365 792,703 -
-
- -
3,621,688 1,294,031 6,948,365 792,703 3,622,425$ 1,295,233 $ 7,662,570 $ 833,081 $ Special Revenue Funds
South Coast Air
Quality
Management
(SCAQMD) Fund
Police
Development
Fund
Fire
Development
Fund
Waste
Management
Fund
87 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
3,961,895$ - $ -$ 1,015,175$
-
39,258
14,865 151,624
-
111,552
- -
- - - -
- - - -
- - - -
3,961,895 150,810 14,865 1,166,799 63,749 - - -
5,526 2,257 - -
- - - -
- 282,495 217,438 -
- 111,552 - 151,624
69,275 396,304 217,438 151,624 - 31,053 - -
- 31,053 - -
3,892,620 - - 1,015,175
-
(276,547) (202,573) -
3,892,620 (276,547) (202,573) 1,015,175 3,961,895$ 150,810 $ 14,865 $ 1,166,799$ Special Revenue Funds
Asset
Forfeiture
Fund
Police Grants
Fund
Community
Services Grant
Fund
Citizens
Option for
Public Safety
Fund
88 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
85,312$ -$ 442$ -$
- 259,577 - -
- 350,369 - -
- - - -
- - - -
- - - -
85,312 609,946 442 -
14,604 102,491 - -
- - - -
- - - -
- 585,457 - 35,670
67,
564 -
- -
82,168 687,948 - 35,670
- - - -
- - - -
3,144 - 442 -
- (78,002) - (35,670)
3,144 (78,002) 442 (35,670)
85,312$ 609,946$ 442$ -$
Special Revenue Funds
CDBG Fund
Traffic Safety
Prop 1B Fund
Neighborhood
Stabilization
Program Fund
Local Law
Enforcement
Block Grant
Fund
89 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
1,218,700$ 5,018,567 $ 17,296 $ -$ - - - -
- 663,805 - -
- - - -
- - - -
- - - -
1,218,700 5,682,372 17,296 - - 421,867 - -
- 2,147 - -
- - - -
- - - 100,878
-
- - 108,612
- 424,014 - 209,490
- - - -
- - - -
1,218,700 5,258,358 17,296 - - - - (209,490)
1,218,700 5,258,358 17,296 (209,490) 1,218,700$ 5,682,372 $ 17,296 $ - $ Special Revenue Funds
Neighborhood
Stabilization
Program -
Program
Income Fund
Measure I
Fund
Brownfield
Clean Up Grant
Fund
Fire Grant
Fund
90 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
14,926,793$ 1,899,359 $ 2,188,464 $ 459,639$ -
- 64,278 23,244
2,014,926 -
- -
- 982,045 929,257 -
- - 970,400 -
- - - -
16,941,719 2,881,404 4,152,399 482,883 448,606 9,566 3,671 -
3,014 - - -
- - 10,000 -
- - - -
- - - -
451,620 9,566 13,671 -
- 982,045 929,257 -
- 982,045 929,257 -
16,490,099 1,889,793 3,209,471 482,883 -
-
- -
16,490,099 1,889,793 3,209,471 482,883 16,941,719$ 2,881,404 $ 4,152,399 $ 482,883 $ Special Revenue Funds
Fire Ground
Emergency
Transportation
Fund
Cal Home
Fund
Housing
Authority Fund
Public,
Educational,
and
Governmental
(PEG) Fees
Fund
91 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
-$ 392,213$ -$ 815,939$
- -
18,741 -
181,137 - 75,563 -
- - 29,926 -
- - - -
- - 1,486,249 -
181,137 392,213 1,610,479 815,939 72,199 - 135,906 1,316
-
-
927,748 -
- - 277,199 814,623
28,617
-
269,626 -
- - - -
100,816 - 1,610,479 815,939
- - - -
- - - -
80,321 392,213 - -
- - - -
80,321 392,213 - -
181,137$ 392,213 $ 1,610,479 $ 815,939 $ Special Revenue Funds
Street
Medians
Development
Fund
Special
Deposits
Confiscated
Funds
Transportation
Development
Act (TDA) Fund
92 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
31,140,517$ 8,393,743$ 1,060,460$ 592,491$ -
-
- -
- - - -
- - - 2,522,477
-
-
- -
- - - -
31,140,517 8,393,743 1,060,460 3,114,968 198,261 1,562,790 255,481 - - - - -
- - - -
- - - -
- - - -
198,261 1,562,790 255,481 - - - - -
- - - -
30,942,256 6,830,953 804,979 3,114,968 -
-
- -
30,942,256 6,830,953 804,979 3,114,968 31,140,517$ 8,393,743$ 1,060,460$ 3,114,968$ Special
Revenue
Funds Capital Projects Funds
Fair Share
Agreement
Fund
2005 TABs
Fund
2008 TABs
Fund
Local
Drainage Fund
93 CITY OF RIALTO, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):

Accounts
Due from other governments
Notes and loans
Land held for resale
Restricted assets:

Cash and investments with fiscal agents
Total assets

LIABILITIES
Accounts payable
Accrued liabilities
Deposits payables
Due to other funds
Unearned revenues
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources

FUND BALANCES (DEFICITS)
Restricted
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Total
Nonmajor
Funds
202,085$ -$ 149,581,599$
-
- 1,125,592
369,700 - 4,942,842
-
- 4,463,705
-
- 970,400
-
- 1,486,249
571,785 - 162,570,387
- - 8,026,431
-
- 1,329,419
-
- 1,101,822
-
1,282,712 2,860,154
-
- 1,058,455
- 1,282,712 14,376,281
- - 3,136,462
- - 3,136,462
571,785 - 147,142,638
-
(1,282,712) (2,084,994)
571,785 (1,282,712) 145,057,644
571,785$ - $ 162,570,387$
1997 COP
Fund
Police Station
Debt Service
Debt Service Funds
94 7+,63$*(,17(17,21$//</()7%/$1.
95 CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes -$ -$ 1,412,525$ 1,113,466$
Intergovernmental 6,174,668 - - -
Char
ges for services - - - -
Use of m
oney and property 244,037 - 14,411 12,667
Developer participation - - - -
Miscell
aneous - - - 25,025
Total revenues 6,418,705 - 1,426,936 1, 151,158

EXPENDITURES
Current:

General government - - - 1,068,872
Public safety - -
- -
Community development 28,588 - 1,780,736 107,232
Capital outlay 8,582,546 - - -
Debt
service:

Principal - - 192,771 23,826
Interest and fiscal charges - -
86,497 10,691
Total expenditures 8,611,134 - 2,060,004 1, 210,621 Excess (deficiency) of revenues
over (under) expenditures (2,192,429) - (633,068) (59,463)

OTHER FINANCING SOURCES (USES)
Transfers In - - 950,180 439,640
Transfers Out - - - -
Total other financing sources (uses) - - 950,180 439,640 Net change in fund balances (2,192,429) - 317,112 3 80,177 Fund balances-beginning 10,245,997 197,199 682,361 493,831 Fund balances-ending 8,053,568$ 197,199$ 999,473$ 874,008$ Special Revenue Funds
Gas Tax Fund
T
ransportation
Enhancement
Activities Fund
Street
Lighting and
Landscape
Maintenance
Fund
Landscape
Lighting
District No. 2
Fund
96 CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
(Continued)
-$ -$ 65$ -$
- 462,301 - -
- 198,155 - -
862,790 - - 1,411
4,
087,112 -
- -
- - - -
4,949,902 660,456 65 1,411
34,094 - - -
- 27,692 - -
- 406,351 - -
1,290,130 38,000 - -
- - - -
- - - -
1,324,224 472,043 - -
3,625,678 188,413 65 1,411
- - - -
- - - -
- - - -
3,625,678 188,413 65 1,411
28,144,043 32,703 96 586
31,769,721$ 221,116$ 161$ 1,997$
Special Revenue Funds
Traffic
Development
Fund
Office of
Traffic Safety
Fund
Retirement
Tax Fund
American
Rescue Plan
Act
97 CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
-$ -$ -$ -$
- - - 2,354,135
-
-
169,066 -
56,383 87,739 5,666 -
177,197 921,289 - -
- - - -
233,580 1,009,028 174,732 2,354,135 - 1,035 - 176,946
-
- - 1,120
580
-
- 9,960
-
-
- 2,994,774
-
-
- -
- - - -
580 1,035 - 3,182,800
233,000 1,007,993 174,732 (828,665) - - - 900,000
-
-
- -
- - - 900,000
233,000 1,007,993 174,732 71,335 2,255,543 3,375,386 191,329 8,843,834 2,488,543$ 4,383,379 $ 366,061 $ 8,915,169 $ Special Revenue Funds
General
Facilities
Development
Fund
Library
Facilities
Development
Fund
Major Grant
Funding Fund
Open Space
Development
Fund
98 CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
(Continued)
-$ -$ -$ -$
- - 317,202 103,879
-
-
10,357 -
73,620 21,663 261,727 17,703 701,125 508,524 - -
- - 1,065,478 -
774,745 530,187 1,654,764 121,582 - - - -
737 1,202 - -
- - 615,270 31,435
-
-
4,394,009 7,368
-
-
- -
- - - -
737 1,202 5,009,279 38,803
774,008 528,985 (3,354,515) 82,779 - - - -
- - - (6,940)
- - - (6,940)
774,008 528,985 (3,354,515) 75,839 2,847,680 765,046 10,302,880 716,864 3,621,688$ 1,294,031 $ 6,948,365 $ 792,703 $ Special Revenue Funds
Police
Development
Fund
Fire
Development
Fund
Waste
Management
Fund
South Coast
Air Quality
Management
(SCAQMD)
Fund
99 CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
-$ -$ -$ -$
1,308,086 739,346 14,865 309,102 -
-
- -
74,784 - - 17,896
-
-
40 -
- - - -
1,382,870 739,346 14,905 326,998 - - - -
383,084 844,504 - 74,505
-
-
- -
- 162,334 - -
- - - -
- - - -
383,084 1,006,838 - 74,505
999,786 (267,492) 14,905 252,493 - - - -
- - - -
- - - -
999,786 (267,492) 14,905 252,493 2,892,834 (9,055) (217,478) 762,682 3,892,620$ (276,547) $ (202,573) $ 1,015,175 $ Special Revenue Funds
Asset
Forfeiture
Fund
Police Grants
Fund
Community
Services Grant
Fund
Citizens
Option for
Public Safety
Fund
100

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
(Continued)
-$ -$ -$ -$
93,970 1,442,942 - -
- - - -
- - 10 -
- - - -
- - - -
93,970 1,442,942 10 -
- 659,065 - -
42,479 - - -
- 158 - -
51,496 167,330 - -
- - - -
- 26,220 - -
93,975 852,773 - -
(5) 590,169 10 -
- - - -
- - - -
- - - -
(5) 590,169 10 -
3,149 (668,171) 432 (35,670)
3,144$ (78,002)$ 442 $ (35,670)$ Special Revenue Funds
CDBG Fund
Traffic Safety
Prop 1B Fund
Neighborhood
Stabilization
Program Fund
Local Law
Enforcement
Block Grant
Fund
101

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
-$ -$ -$ -$
- 2,927,093 - 51,831
-
-
- -
27,748 100,701 - -
- - - -
61,841 - - -
89,589 3,027,794 - 51,831
- - - -
- 428 - 51,831
-
69,906
- -
- 1,549,298 - -
- - - -
- - - -
- 1,619,632 - 51,831
89,589 1,408,162 - -
- - - -
- (4,830) - (400,000)
- (4,830) - (400,000)
89,589 1,403,332 - (400,000)
1,129,111 3,855,026 17,296 190,510 1,218,700$ 5,258,358 $ 17,296 $ (209,490)$ Special Revenue Funds
Neighborhood
Stabilization
Program -
Program
Income Fund
Measure I
Fund
Brownfield
Clean Up Grant
Fund
Fire Grant
Fund
102

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
(Continued)
-$ -$ -$ 124,297$
7,655,873 -
- -
- - - -
- 44,776 51,154 11,504
-
-
- -
- 79,973 122,920 -
7,655,873 124,749 174,074 135,801 - 20 28,516 -
1,826,265 - - -
- - - -
1,577,984 - - 107,979
-
-
- -
- - - -
3,404,249 20 28,516 107,979
4,251,624 124,729 145,558 27,822 - - - -
- - - -
- - - -
4,251,624 124,729 145,558 27,822 12,238,475 1,765,064 3,063,913 455,061 16,490,099$ 1,889,793 $ 3,209,471 $ 482,883 $ Special Revenue Funds
Fire Ground
Emergency
Transportation
Fund
Cal Home
Fund
Housing
Authority Fund
Public,
Educational,
and
Governmental
(PEG) Fees
Fund
103

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
-$ -$ -$ -$
181,137 - - -
- 49,887 - -
575 8,593 - -
- - - -
- - - -
181,712 58,480 - -
- - - -
- - - -
- - - -
122,351 7,677 - -
- - - -
- - - -
122,351 7,677 - -
59,361 50,803 - -
- - - -
- - - -
- - - -
59,361 50,803 - -
20,960 341,410 - -
80,321$ 392,213 $ - $ -$
Special Revenue Funds
Street
Medians
Development
Fund
Special
Deposits
Confiscated
Funds
T
ransportation
Development
Act (TDA) Fund
104

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
(Continued)
-$ -$ -$ -$
- - - -
- - - -
690,636 288,049 25,247 14,106
3,190,406 1,470,878 - -
- - - -
3,881,042 1,758,927 25,247 14,106
43,052 88,346 - -
- - - -
22 - - -
369,764 7,494,083 - -
- - - -
- - - -
412,838 7,582,429 - -
3,468,204 (5,823,502) 25,247 14,106
- - - -
- - - -
- - - -
3,468,204 (5,823,502) 25,247 14,106
27,474,052 12,654,455 779,732 3,100,862
30,942,256$ 6,830,953 $ 804,979 $ 3,114,968 $
Special
Revenue
Funds Capital Projects Funds
Local
Drainage Fund
Fair Share
Agreement
Fund
2005 TABs
Fund
2008 TABs
Fund
105

CITY OF RIALTO, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2024

REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Developer participation
Miscellaneous
Total revenues

EXPENDITURES
Current:

General government
Public safety
Community development
Capital outlay
Debt service:

Principal
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
Fund balances-ending
Total
Nonmajor
Funds
-$ -$ 2,650,353$
- - 24,136,430
- - 427,465
4,811 - 3,020,407
- - 11,056,571
- - 1,355,237
4,811 - 42, 646,463
- - 2,099,946
- - 3,253,847
- - 3,050,238
- - 28,917,123
- - 216,597
- 1,
282,712 1,406,120
- 1, 282,712 38,943,871
4,811 (1,282,712) 3,702,592
- - 2, 289,820
- - (411,770)
- - 1, 878,050
4,811 (1,282,712) 5,580,642
566,974 - 139, 477,002
571,785$ (1,282,712) $ 145,057,644 $
1997 COP
Fund
Police Station
Debt Service
Debt Service Funds
106

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 5,539,045$ 5,539,045 $ 6,174,668 $ 635,623$ Use of money and property 67,070 67,070 244,037 176,967 Total revenues 5,606,115 5,606,115 6,418,705 812,590

EXPENDITURES
Current:

Public safety - 580,826 - 580,826
Com
munity development 200,000 200,579
28,588 171,991
Capital outlay 5,800,000 15,856,746 8,582,546 7,274,200 Total expenditures 6,000,000 16,638,151 8,611,134 8,027,017 Net change in fund balances (393,885)$ (11,032,036)$ (2,192,429) 8,839,607$ Fund balances (deficit)-beginning 10,245,997
Fund balances (deficit)-ending 8,053,568$
107

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street and Lightning Maintenance Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 1,623,345$ 1,623,345 $ 1,412,525 $ (210,820)$ Use of money and property - - 14,411 14,411 Total revenues 1,623,345 1,623,345 1,426,936 (196,409)

EXPENDITURES
Current:

Community development 1,976,631 2,136,555 1,780,736 355,819 Debt service:

Principal 192,780 192,780 192,771 9 Interest 86,500 86,500 86,497 3 Total expenditures 2,255,911 2,415,835 2,060,004 355,831 Excess (deficiency) of revenues
over (under) expenditures (632,566) (792,490) (633,068) 159,422

OTHER FINANCING SOURCES (USES)
Transfers in 632,490 632,490 950,180 317,690 Total other financing sources (uses) 632,490 632,490 950,180 317,690 Net change in fund balances (76)$ (160,000)$ 317,112 477,112$ Fund balances (deficit)-beginning 682,361
Fund balances (deficit)-ending 999,473$
108

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Landscape and Lighting Distruct No. 2 Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 1,127,199$ 1,127,199 $ 1,113,466 $ (13,733)$ Use of money and property - - 12,667 12,667 Miscellaneous 50,000 50,000 25,025 (24,975) Total revenues 1,177,199 1,177,199 1,151,158 (26,041)

EXPENDITURES
Current:

General government 1,206,899 1,568,953 1,068,872 500,081 Community development 138,799 138,799 107,232 31,567 Debt service:

Principal 23,830 23,837 23,826 11 Interest 130,110 234,013 10,691 223,322 Total expenditures 1,499,638 1,965,602 1,210,621 754,981 Excess (deficiency) of revenues
over (under) expenditures (322,439) (788,403) (59,463) 728,940

OTHER FINANCING SOURCES (USES)
Transfers in 322,250 322,250 439,640 117,390 Total other financing sources (uses) 322,250 322,250 439,640 117,390 Net change in fund balances (189)$ (466,153)$ 380,177 846,330$ Fund balances (deficit)-beginning 493,831
Fund balances (deficit)-ending 874,008$
109

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Traffic Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 235,780$ 235,780 $ 862,790 $ 627,010$ Developer participation 1,700,000 1,700,000 4,087,112 2,387,112 Total revenues 1,935,780 1,935,780 4,949,902 3,014,122

EXPENDITURES
Current:

General government - - 34,094 (34,094) Capital outlay - 18,925,315 1,290,130 17,635,185 Total expenditures - 18,925,315 1,324,224 17,601,091 Net change in fund balances 1,935,780$ (16,989,535)$ 3,625,678 20,615,213$ Fund balances (deficit)-beginning 28,144,043
Fund balances (deficit)-ending 31,769,721$
110

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Office of Traffic Safety Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ 454,000$ 462,301 $ 8,301$ Charges for services - - 198,155 198,155 Total revenues - 454,000 660,456 206,456

EXPENDITURES
Current:

General government - 447,387 - 447,387 Public safety - 626,848 27,692 599,156 Community development - 83,000 406,351 (323,351) Capital outlay - 28,000 38,000 (10,000) Total expenditures - 1,185,235 472,043 713,192 Net change in fund balances -$ (731,235)$ 188,413 919,648$ Fund balances (deficit)-beginning 32,703
Fund balances (deficit)-ending 221,116$
111

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Open Space Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 24,040$ 24,040 $ 56,383 $ 32,343$ Capital contributions 100,000 100,000 177,197 77,197 Total revenues 124,040 124,040 233,580 109,540

EXPENDITURES
Current:

Community development - - 580 (580) Capital outlay - 769,890 - 769,890 Total expenditures - 769,890 580 769,310 Net change in fund balances 124,040$ (645,850)$ 233,000 878,850$ Fund balances (deficit)-beginning 2,255,543
Fund balances (deficit)-ending 2,488,543$
112

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Facilities Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 31,830$ 31,830 $ 87,739 $ 55,909$ Developer participation 450,000 450,000 921,289 471,289 Total revenues 481,830 481,830 1,009,028 527,198

EXPENDITURES
Current:

General government - - 1,035 (1,035) Capital outlay - 835,390 - 835,390 Total expenditures - 835,390 1,035 834,355 Net change in fund balances 481,830$ (353,560)$ 1,007,993 1,361,553$ Fund balances (deficit)-beginning 3,375,386
Fund balances (deficit)-ending 4,383,379$
113

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Library Facilities Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 80,000$ 80,000 $ 169,066 $ 89,066$ Use of money and property 1,280 1,280 5,666 4,386 Total revenues 81,280 81,280 174,732 93,452 Net change in fund balances 81,280$ 81,280$ 174,732 93,452$ Fund balances (deficit)-beginning 191,329
Fund balances (deficit)-ending 366,061$
114

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Major Grant Funding Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,432,263$ 9,150,508 $ 2,354,135 $ (6,796,373)$ Total revenues 1,432,263 9,150,508 2,354,135 (6,796,373)

EXPENDITURES
Current:

General government 40,600 2,124,608 176,946 1,947,662 Public safety - - 1,120 (1,120) Community development - 427,346 9,960 417,386 Capital outlay - 22,299,108 2,994,774 19,304,334 Total expenditures 40,600 24,851,062 3,182,800 21,668,262 Excess (deficiency) of revenues
over (under) expenditures 1,391,663 (15,700,554) (828,665) 14,871,889

OTHER FINANCING SOURCES (USES)
Transfers in - 900,000 900,000 - Total other financing sources (uses) - 900,000 900,000 - Net change in fund balances 1,391,663$ (14,800,554)$ 71,335 14,871,889$ Fund balances (deficit)-beginning 8,843,834
Fund balances (deficit)-ending 8,915,169$
115

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Police Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 21,960$ 21,960$ 73,620$ 51,660$ Developer participation 350,000 350,000 701,125 351,125 Total revenues 371,960 371,960 774,745 402,785

EXPENDITURES
Current:

Public safety - - 7 37 (737)
Total expenditures - - 737 (737)
Net change in fund balances 371,960$ 371,960$ 774,008 402,048$ Fund balances (deficit)-beginning 2,847,680
Fund balances (deficit)-ending 3,621,688$
116

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 2,320$ 2,320 $ 21,663 $ 19,343$ Developer participation 250,000 250,000 508,524 258,524 Total revenues 252,320 252,320 530,187 277,867

EXPENDITURES
Current:

Public safety - - 1,202 (1,202) Capital outlay - 1,712,138 - 1,712,138 Total expenditures - 1,712,138 1,202 1,710,936 Net change in fund balances 252,320$ (1,459,818)$ 528,985 1,988,803$ Fund balances (deficit)-beginning 765,046
Fund balances (deficit)-ending 1,294,031$
117

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Waste Management Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 300$ 317,167$ 317,202 $ 35$ Charges for services - - 10,357 10,357 Use of money and property 105,690 105,690 261,727 156,037 Miscellaneous 1,045,920 1,045,920 1,065,478 19,558 Total revenues 1,151,910 1,468,777 1,654,764 185,987

EXPENDITURES
Current:

Community development 768,222 857,434 615,270 242,164 Capital outlay 50,000 8,890,656 4,394,009 4,496,647 Total expenditures 818,222 9,748,090 5,009,279 4,738,811 Net change in fund balances 333,688$ (8,279,313)$ (3,354,515) 4,924,798$ Fund balances (deficit)-beginning 10,302,880
Fund balances (deficit)-ending 6,948,365$
118

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual South Coast Air Quality Management District (AQMD)
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 130,000$ 130,000 $ 103,879 $ (26,121)$ Use of money and property 5,770 5,770 17,703 11,933 Total revenues 135,770 135,770 121,582 (14,188)

EXPENDITURES
Current:

Community development 30,360 176,309 31,435 144,874 Capital outlay - 394,969 7,368 387,601 Total expenditures 30,360 571,278 38,803 532,475 Excess (deficiency) of revenues
over (under) expenditures 105,410 (435,508) 82,779 518,287

OTHER FINANCING SOURCES (USES)
Transfers out (6,940) (6,940) (6,940) - Total other financing sources (uses) (6,940) (6,940) (6,940) - Net change in fund balances 98,470$ (442,448)$ 75,839 518,287$ Fund balances (deficit)-beginning 716,864
Fund balances (deficit)-ending 792,703$
119

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Forfeiture Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 1,308,086$ 1,308,086$ Use of money and property 7,570 7,570 74,784 67,214 Total revenues 7,570 7,570 1,382,870 1,375,300

EXPENDITURES
Current:

Public safety 269,628 496,441 383,084 113,357 Capital outlay - 417,134 - 417,134 Total expenditures 269,628 913,575 383,084 530,491 Net change in fund balances (262,058)$ (906,005)$ 999,786 1,905,791$ Fund balances (deficit)-beginning 2,892,834
Fund balances (deficit)-ending 3,892,620$
120

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Police Grants Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ 40,868$ 739,346 $ 698,478$ Total revenues - 40,868 739,346 698,478

EXPENDITURES
Current:

Public safety 65,671 915,384 844,504 70,880 Capital outlay - 246,334 162,334 84,000 Total expenditures 65,671 1,161,718 1,006,838 154,880 Net change in fund balances (65,671)$ (1,120,850)$ (267,492) 853,358$ Fund balances (deficit)-beginning (9,055)
Fund balances (deficit)-ending (276,547)$
121

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Community Services Grant Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ - $ 14,865$ 14,865$ Developer participation - - 40 40 Total revenues - - 14,905 14,905

EXPENDITURES
Current:

Community development - 433,028 - 433,028 Total expenditures - 433,028 - 433,028 Excess (deficiency) of revenues
over (under) expenditures - (433,028) 14,905 447,933 Net change in fund balances -$ (433,028)$ 14,905 447,933$ Fund balances (deficit)-beginning (217,478)
Fund balances (deficit)-ending (202,573)$
122

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Citizens Option for Public Safety Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 2,190$ 162,312$ 309,102 $ 146,790$ Use of money and property 6,920 6,920 17,896 10,976 Total revenues 9,110 169,232 326,998 157,766

EXPENDITURES
Current:

Public safety 17,000 1,139,133 74,505 1,064,628 Capital outlay - 2,313 - 2,313 Total expenditures 17,000 1,141,446 74,505 1,066,941 Excess (deficiency) of revenues
over (under) expenditures (7,890) (972,214) 252,493 1,224,707 Net change in fund balances (7,890)$ (972,214)$ 252,493 1,224,707$ Fund balances (deficit)-beginning 762,682
Fund balances (deficit)-ending 1,015,175$
123

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Local Law Enforcement Block Grant Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ 42,841$ 93,970 $ 51,129$ Total revenues - 42,841 93,970 51,129

EXPENDITURES
Current:

Public safety - 112,478 42,479 69,999 Capital outlay - 56,728 51,496 5,232 Total expenditures - 169,206 93,975 75,231 Excess (deficiency) of revenues
over (under) expenditures - (126,365) (5) 126,360 Net change in fund balances -$ (126,365)$ (5) 126,360$ Fund balances (deficit)-beginning 3,149
Fund balances (deficit)-ending 3,144$
124

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual CDBG Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 1,419,560$ 1,419,560 $ 1,442,942 $ 23,382$ Total revenues 1,419,560 1,419,560 1,442,942 23,382

EXPENDITURES
Current:

General government 426,770 1,041,234 659,065 382,169 Community development - - 158 (158) Capital outlay 734,590 1,261,158 167,330 1,093,828 Debt service:

Principal 87,000 343,000 - 343,000 Interest 55,260 93,473 26,220 67,253 Total expenditures 1,303,620 2,738,865 852,773 1,886,092 Net change in fund balances 115,940$ (1,319,305)$ 590,169 1,909,474$ Fund balances (deficit)-beginning (668,171)
Fund balances (deficit)-ending (78,002)$
125

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Neighborhood Stabilization Program - Program Income Fund For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 11,240$ 11,240 $ 27,748 $ 16,508$ Miscellaneous - - 61,841 61,841 Total revenues 11,240 11,240 89,589 78,349 Net change in fund balances 11,240$ 11,240$ 89,589 78,349$ Fund balances (deficit)-beginning 1,129,111
Fund balances (deficit)-ending 1,218,700$
126

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure I Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 2,880,773$ 3,665,773 $ 2,927,093 $ (738,680)$ Use of money and property 75,740 75,740 100,701 24,961 Total revenues 2,956,513 3,741,513 3,027,794 (713,719)

EXPENDITURES
Current:

General government 26,790 26,790 - 26,790 Public safety - - 428 (428) Community development 234,350 507,090 69,906 437,184 Capital outlay 2,601,280 7,275,307 1,549,298 5,726,009 Total expenditures 2,862,420 7,809,187 1,619,632 6,189,555 Excess (deficiency) of revenues
over (under) expenditures 94,093 (4,067,674) 1,408,162 5,475,836

OTHER FINANCING SOURCES (USES)
Transfers out (4,830) (4,830) (4,830) - Total other financing sources (uses) (4,830) (4,830) (4,830) - Net change in fund balances 89,263$ (4,072,504)$ 1,403,332 5,475,836$ Fund balances (deficit)-beginning 3,855,026
Fund balances (deficit)-ending 5,258,358$
127

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Grant Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ 51,839$ 51,831 $ (8)$ Total revenues - 51,839 51,831 (8)

EXPENDITURES
Current:

Public safety - 51,839 51,831 8 Total expenditures - 51,839 51,831 8 Excess (deficiency) of revenues
over (under) expenditures - - - -

OTHER FINANCING SOURCES (USES)
Transfers out - (400,000) (400,000) - Total other financing sources (uses) - (400,000) (400,000) - Net change in fund balances -$ (400,000)$ (400,000) -$ Fund balances (deficit)-beginning 190,510
Fund balances (deficit)-ending (209,490)$
128

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fire Ground Transportation Emergency Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 500,000$ 1,463,034 $ 7,655,873 $ 6,192,839$ Total revenues 500,000 1,463,034 7,655,873 6,192,839

EXPENDITURES
Current:

Public safety 2,085,110 2,587,544 1,826,265 761,279 Capital outlay - 3,033,751 1,577,984 1,455,767 Total expenditures 2,085,110 5,621,295 3,404,249 2,217,046 Net change in fund balances (1,585,110)$ (4,158,261)$ 4,251,624 8,409,885$ Fund balances (deficit)-beginning 12,238,475
Fund balances (deficit)-ending 16,490,099$
129

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Cal Home Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 15,890$ 15,890 $ 44,776 $ 28,886$ Miscellaneous 100,000 100,000 79,973 (20,027) Total revenues 115,890 115,890 124,749 8,859

EXPENDITURES
Current:

General government 100,000 558,930 20 558,910 Total expenditures 100,000 558,930 20 558,910 Net change in fund balances 15,890$ (443,040)$ 124,729 567,769$ Fund balances (deficit)-beginning 1,765,064
Fund balances (deficit)-ending 1,889,793$
130

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Housing Authority Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 21,580$ 21,580 $ 51,154 $ 29,574$ Miscellaneous 51,000 51,000 122,920 71,920 Total revenues 72,580 72,580 174,074 101,494

EXPENDITURES
Current:

General government 20,000 22,224 28,516 (6,292) Public safety - 150,000 - 150,000 Total expenditures 20,000 172,224 28,516 143,708 Net change in fund balances 52,580$ (99,644)$ 145,558 245,202$ Fund balances (deficit)-beginning 3,063,913
Fund balances (deficit)-ending 3,209,471$
131

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Public Educational, and Governmental (PEG) Fees Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 80,000$ 80,000 $ 124,297 $ 44,297$ Use of money and property 3,500 3,500 11,504 8,004 Total revenues 83,500 83,500 135,801 52,301

EXPENDITURES
Current:

Capital outlay - 137,034 107,979 29,055 Total expenditures - 137,034 107,979 29,055 Net change in fund balances 83,500$ (53,534)$ 27,822 81,356$ Fund balances (deficit)-beginning 455,061
Fund balances (deficit)-ending 482,883$
132

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Transportation Development Act (TDA) Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental -$ 1,811,836 $ 181,137 $ (1,630,699)$ Use of money and property - - 575 575
Total revenues - 1,811,836 181,712 (1,630,124)

EXPENDITURES
Capital outlay - 2,994,785 122,351 2,872,434
Total expenditures - 2,994,785 122,351 2,872,434
Excess (deficiency) of revenues
over (under) expenditures - (1,182,949) 59,361 1,242,310 Net change in fund balances -$ (1,182,949)$ 59,361 1,242,310$ Fund balances (deficit)-beginning 20,960
Fund balances (deficit)-ending 80,321$
133

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Medians Development Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Charges for services 35,000$ 35,000 $ 49,887 $ 14,887$ Use of money and property 3,260 3,260 8,593 5,333 Total revenues 38,260 38,260 58,480 20,220

EXPENDITURES
Capital outlay - 746,999 7,677 739,322 Total expenditures - 746,999 7,677 739,322 Net change in fund balances 38,260$ (708,739)$ 50,803 759,542$ Fund balances (deficit)-beginning 341,410
Fund balances (deficit)-ending 392,213$
134

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Local Drainage Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 242,940$ 242,940 $ 690,636 $ 447,696$ Developer participants 2,000,000 2,000,000 3,190,406 1,190,406 Total revenues 2,242,940 2,242,940 3,881,042 1,638,102

EXPENDITURES
Current:

General government - - 43,052 (43,052) Community development - 6,410 22 6,388 Capital outlay - 15,829,150 369,764 15,459,386 Total expenditures - 15,835,560 412,838 15,422,722 Net change in fund balances 2,242,940$ (13,592,620)$ 3,468,204 17,060,824$ Fund balances (deficit)-beginning 27,474,052
Fund balances (deficit)-ending 30,942,256$
135

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Projects Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property -$ - $ 266,556$ 266,556$ Total revenues - - 266,556 266,556

EXPENDITURES
Current:

General government - 15,239 - 15,239 Public safety 191,000 1,782,347 952,612 829,735 Community development 1,000,000 1,067,318 1,025,702 41,616 Capital outlay 622,260 68,985,390 12,848,800 56,136,590 Total expenditures 1,813,260 71,850,294 14,827,114 57,023,180 Excess (deficiency) of revenues
over (under) expenditures (1,813,260) (71,850,294) (14,560,558) 57,289,736

OTHER FINANCING SOURCES (USES)
Transfers in 1,950,260 24,983,420 24,983,420 - Transfers out - (500,000) (500,000) - Total other financing sources (uses) 1,950,260 24,483,420 24,483,420 - Net change in fund balances 137,000$ (47,366,874)$ 9,922,862 57,289,736$ Fund balances (deficit)-beginning 50,587,429
Fund balances (deficit)-ending 60,510,291$
136

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Fair Share Agreement Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 135,110$ 135,110 $ 288,049 $ 152,939$ Developer participants - - 1,470,878 1,470,878
Total revenues 135,110 135,110 1,758,927 1,623,817

EXPENDITURES
Current:

General government - - 88 ,346 (88,346)
Capital outlay - 7,863,320 7,494,083 369,237
Total expenditures - 7,863,320 7,582,429 280,891 Net change in fund balances 135,110$ (7,728,210)$ (5,823,502) 1,904,708$ Fund balances (deficit)-beginning 12,654,455
Fund balances (deficit)-ending 6,830,953$
137

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual 2005 TABs Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 84,620$ 84,620 $ 25,247 $ (59,373)$ Total revenues 84,620 84,620 25,247 (59,373)
Net change in fund balances 84,620$ 84,620$ 25,247 (59,373) $ Fund balances (deficit)-beginning 779,732
Fund balances (deficit)-ending 804,979$
138

CITY OF RIALTO, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual 2008 TABs Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Use of money and property 40,380$ 40,380 $ 14,106 $ (26,274)$ Total revenues 40,380 40,380 14,106 (26,274)
Net change in fund balances 40,380$ 40,380$ 14,106 (26,274) $ Fund balances (deficit)-beginning 3,100,862
Fund balances (deficit)-ending 3,114,968$
139

CITY OF RIALTO,CALIFORNIA
Combining Statement of Net Position
Other Enterprise Funds
June 30, 2024
Total Other
Enterprise
Funds
ASSETS
Current assets:

Cash and Cash Equivalents 9,566,044$ 873,286$ 10,439,330$ Receivables (net of uncollectibles):

Accounts 151,799 185 151,984
Total current assets 9,717,843 873,471 10,591,314
Total assets 9,717,843 873,471 10,591,314

DEFERRED OUTFLOWS OF RESOURCES
Pension-related - 8,494 8,494
OPEB-related - 1,371 1,371
Total deferred outflows of resources - 9,865 9,865

LIABILITIES
Current liabilities:

Accounts payable 335 7,831 8,166
Accrued liability - 625 625
Deposits payable 1,000 - 1,000
Compensated absences - 304 304
Total current liabilities 1,335 8,760 10,095
Noncurrent liabilities:

Compensated absences - 1,384 1,384
Net pension liability - 28,601 28,601
Net OPEB liability - 4,674 4,674
Total noncurrent liabilities - 34,659 34,659
Total liabilities 1,335 43,419 44,754

DEFERRED INFLOWS OF RESOURCES
OPEB-related - 4,163 4,163
Total deferred inflows of resources - 4,163 4,163

NET POSITION
Unrestricted 9,716,508 835,754 10,552,262
Total net position 9,716,508$ 835,754$ 10,552,262$ Airport Cemetery
140

CITY OF RIALTO,CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Other Enterprise Funds
For the Year Ended June 30, 2024
Total Other
Enterprise
Funds

OPERATING REVENUES
Sales and service charges -$ 171,707 $ 171,707$
Miscellaneous 151,799 - 151,799
Total operating revenues 151,799 171,707 323,506

OPERATING EXPENSES
Administration and general 1,258 - 1,258
Cost of sales and services - 59,977 59,977
Depreciation - 317 317
Total operating expenses 1,258 60,294 61,552
Operating income (loss) 150,541 111,413 261,954

NONOPERATING REVENUES (EXPENSES)
Taxes 20 - 20
Interest revenue - 18,548 18,548
Total nonoperating revenues (expenses) 20 18,548 18,568 Income (loss) before transfers 150,561 129,961 280,522 Transfers In - 8,220 8,220
Change in net position 150,561 138,181 288,742
Net position-beginning 9,565,947 697,573 10,263,520
Net position-ending 9,716,508$ 835,754$ 10,552,262$ Airport Cemetery
141

CITY OF RIALTO, CALIFORNIA
Combining Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers -$ 171,522 $ 171,522$
Payments to suppliers and service providers (978) (45,475) (46,453) Net cash provided by (used for)
operating activities (978) 126,047 125,069

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds - 8,220 8,220
Taxes 20 - 20
Net cash provided by (used for)
noncapital financing activities 20 8,220 8,240

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments - 18,549 18,549
Net cash provided by (used for)
investing activities - 18,549 18,549
Net increase (decrease) in
cash and cash equivalents (958) 152,816 151,858
Cash and cash equivalents-beginning 9,567,002 720,470 10,287,472 Cash and cash equivalents-ending 9,566,044$ 873,286$ 10,439,330$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) 150,541$ 111,413 $ 261,954$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense - 317 317
(Increase) decrease in accounts receivable (151,799) (185) (151,984) Increase (decrease) in accounts payable 280 7,406 7,686 Increase (decrease) in accrued liabilities - 445 445
Increase (decrease) in compensated absences - 333 333
Increase (decrease) in net pension liability - 6,976 6,976 Increase (decrease) in net OPEB liability - (658) (658) Total adjustments (151,519) 14,634 (136,885)$
Net cash provided by (used for)
operating activities (978)$ 126,047$ 125,069 $
Business-Type Activities
Airport Cemetery
142
CITY OF RIALTO. CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Total Internal
Service
Funds
ASSETS
Current assets:

Cash and investments 15,803,341$ 9,023,206$ 24,826,547$ Receivables (net of uncollectibles):

Accounts 788,250 500 788,750
Due from other funds - 17,740 17,740
Total current assets 16,591,591 9,041,446 25,633,037
Total assets 16,591,591 9,041,446 25,633,037

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 27,608 27,608 55,216
OPEB-related 4,456 4,456 8,912
Total deferred outflows of resources 32,064 32,064 64,128

LIABILITIES
Current liabilities:

Accounts payable 833 450,540 451,373
Accrued liabilities 1,783 2,108 3,891
Compensated absences 6,423 1,156 7,579
Claims and judgments 4,141,545 1,235,408 5,376,953
Total current liabilities 4,150,584 1,689,212 5,839,796 Noncurrent liabilities:

Compensated absences - 5,267 5,267
Claims and judgments 18,867,038 5,627,972 24,495,010
Net pension liability 92,965 92,965 185,930
Net OPEB liability 15,194 15,194 30,388
Total noncurrent liabilities 18,975,197 5,741,398 24,716,595 Total liabilities 23,125,781 7,430,610 30,556,391

DEFERRED INFLOWS OF RESOURCES
OPEB-related 13,528 13,528 27,056
Total deferred inflows of resources 13,528 13,528 27,056

NET POSITION
Unrestricted (6,515,654) 1,629,372 (4,886,282)
Total net position (6,515,654)$ 1,629,372$ (4,886,282)$ Workers'
Compensation
Fund
General
Liability Fund
143
CITY OF RIALTO. CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2024
Total Internal
Service
Funds

OPERATING REVENUES
Interdepartmental charges for services 4,377,833$ 10,017,754 $ 14,395,587$ Total operating revenues 4,377,833 10,017,754 14,395,587

OPERATING EXPENSES
Administration and general 46,005 47,674 93,679
Cost of sales and service 4,788,476 6,781,526 11,570,002 Total operating expenses 4,834,481 6,829,200 11,663,681 Operating income (loss) (456,648) 3,188,554 2,731,906

NONOPERATING REVENUES (EXPENSES)
Interest revenue 366,859 62,690 429,549
Total nonoperating revenues (expenses) 366,859 62,690 429,549 Change in net position (89,789) 3,251,244 3,161,455
Net position-beginning (6,425,865) (1,621,872) (8,047,737) Net position-ending (6,515,654)$ 1,629,372$ (4,886,282)$ Workers'
Compensation
Fund
General
Liability Fund
144

CITY OF RIALTO, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2024
Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 3,594,299$ 10,017,754 $ 13,612,053$ Payments to suppliers and service providers (3,221,753) (6,197,587) (9,419,340) Payments to employees for salaries and benefits (36,892) (38,235) (75,127) Net cash provided by (used for)
operating activities 335,654 3,781,932 4,117,586

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 366,859 62,690 429,549
Net cash provided by (used for)
investing activities 366,859 62,690 429,549
Net increase (decrease) in
cash and cash equivalents 702,513 3,844,622 4,547,135
Cash and cash equivalents-beginning 15,100,828 5,178,584 20,279,412 Cash and cash equivalents-ending 15,803,341$ 9,023,206$ 24,826,547$

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) (456,648)$ 3,188,554 $ 2,731,906$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
(Increase) decrease in accounts receivable (783,534) - (783,534) Increase (decrease) in accounts payable (93,924) 218,518 124,594 Increase (decrease) in accrued liabilities 1,025 1,350 2,375 Increase (decrease) in compensated absences 430 430 860 Increase (decrease) in claims and judgments 1,660,647 365,421 2,026,068 Increase (decrease) in pension and related items 1,199 1,199 2,398 Increase (decrease) in OPEB and related items 6,459 6,460 12,919 Total adjustments 792,302 593,378 1,385,680$
Net cash provided by (used for)
operating activities 335,654$ 3,781,932$ 4,117,586$ Workers'
Compensation
Fund
General
Liability Fund
145
ASSETS
Cash and cash equivalents 73,688$ 766,338 $ 121,593$ 411,772$ Cash and cash equivalents held with fiscal agent - 472,529 - 406,275 Receivables:

Accounts - - 506 -
Total assets 73,688 1,238,867 122,099 818,047

LIABILITIES
Accounts payable -1 ,750 - -
Due to external parties/other agencies 73,688 1,237,117 122,099 818,047 Total liabilities 73,688 1,238,867 122,099 818,047

NET POSITION - - - -
Total net position -$ -$- $- $
Community
Facilities
District (CFD)
2006-1
Community
Facilities
District (CFD)
2016-1
Community
Facilities
District (CFD)
2019-2

CITY OF RIALTO, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Community
Facilities
District (CFD)
87-1 Fund
146
ASSETS
Cash and cash equivalents
Cash and cash equivalents held with fiscal agent
Receivables:

Accounts
Total assets

LIABILITIES
Accounts payable
Due to external parties/other agencies
Total liabilities

NET POSITION
Total net position

CITY OF RIALTO, CALIFORNIA
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
June 30, 2024
Total
Custodial
Funds
-$ 614,970$ 1,988,361$
186,268 7,256,428 8,321,500
- 5,287 5,793
186,
268 7,876,685 10,315,654
151,586 - 153,336
34,
682 7,876,685 10,162,318
186,
268 7,876,685 10,315,654
- - -
-$ -$ -$
Community
Facilities
District (CFD)
2020-1
Community
Facilities
District (CFD)
2022
147

ADDITIONS
Interest 1,754$ 42,726 $ 2,623$ 25,382$
Taxes - 506,984 84,
145 326,173
Miscellaneous - - - -
Total additions 1,754 549,710 86,768 351,555

DEDUCTIONS
Administrative expenses -3 ,499 - 2,750
Payments to external parties/other agencies 1,754 100,253 31, 768 62,149 Interest expense - 169,738 - 211,656
Principal expense - 165,000 - 25,000
Issuance costs --- -
Contributions to other governments - 111,220 55, 000 50,000 Total deductions 1,754 549,710 86,768 351,555
Net increase (decrease) in fiduciary net position - - - - Net position-beginning - - - -
Net position-ending -$ -$- $- $

CITY OF RIALTO, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
Community
Facilities
District (CFD)
87-1 Fund
Community
Facilities
District (CFD)
2006-1
Community
Facilities
District (CFD)
2016-1
Community
Facilities
District (CFD)
2019-2
148

ADDITIONS
Interest
Taxes
Miscellaneous
Total additions

DEDUCTIONS
Administrative expenses
Payments to external parties/other agencies
Interest expense
Principal expense
Issuance costs
Contributions to other governments
Total deductions
Net increase (decrease) in fiduciary net position
Net position-beginning
Net position-ending

CITY OF RIALTO, CALIFORNIA
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2024
Total
Custodial
Funds
-$ 8,031$ 80,516$
- 971,706 1,889,008
- 16,631,639 16,631,639
- 17,611,376 18,601,163
- 9,075,185 9,081,434
- 7,876,685 8,072,609
- 356,392 737,786
- - 190,000
- 303,114 303,114
- - 216,220
- 17,611,376 18,601,163
- - -
- - -
-$ -$ -$
Community
Facilities
District (CFD)
2022
Community
Facilities
District (CFD)
2020-1
149

Rialto City CouncilAugust 12, 2025

Rialto City Council
August 12, 2025