City of Rialto
Rialto, California
Independent Auditor’s Report and
Basic Financial Statements
For the Year Ended June 30, 2025
City of Rialto
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditor’s Report on the Audit of the Financial Statements .............................................................. 1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ................................................................................................................................. 8 Statement of Activities ................................................................................................................................... 10
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................................... 16 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 19 Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................. 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 22
Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................... ................... 24 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 27 Statement of Cash Flows .......................................................................................................................... 28
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................................................ 33 Statement of Change in Fiduciary Net Position ....................................................................................... 34
Notes to the Basic Financial Statements ............................................................................................................ 41
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule:
General Fund ................................................................................................................................................ 105 Park Development Special Revenue Fund ................................................................................................... 106
Notes to the Budgetary Comparison Schedules ................................................................................................ 107
Schedule of Changes in the Net Pension Liability and Related Ratios:
Miscellaneous Plan ....................................................................................................................................... 108 Safety Plan .................................................................................................................................................... 110
City of Rialto
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
Required Supplementary Information (Unaudited) (Continued):
Schedule of Plan Contributions:
Miscellaneous Agent, Multiple-Employer Pension Plan .............................................................................. 112 Safety Agent, Multiple-Employer Pension Plan ........................................................................................... 114
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios .......................... 116 Schedule of Contributions – Other Postemployment Benefits Plan ................................................................ 118
Supplementary Information:
Schedule of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:
City Capital Project Funds ............................................................................................................................ 123
Nonmajor Governmental Funds:
Combining Balance Sheet ....................................................................................................... ..................... 128 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 137 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Gas Tax Special Revenue Fund ............................................................................................................. 146 Street Lighting & Landscape Maintenance Special Revenue Fund ....................................................... 147 Landscape & Lighting District No. 2 Special Revenue Fund ................................................................ 148 Traffic Development Special Revenue Fund ......................................................................................... 149 Office of Traffic Safety Special Revenue Fund ..................................................................................... 150 Retirement Tax Special Revenue Fund .................................................................................................. 151 Open Space Development Special Revenue Fund ................................................................................. 152 General Facilities Development Special Revenue Fund ........................................................................ 153 Library Facilities Development Special Revenue Fund ......................................................................... 154 Major Grant Funding Special Revenue Fund ......................................................................................... 155 Police Development Special Revenue Fund .......................................................................................... 156 Fire Development Special Revenue Fund .............................................................................................. 157 Waste Management Special Revenue Fund ........................................................................................... 158 South Coast Air Quality Management (SCAQMD) Special Revenue Fund .......................................... 159 Asset Forfeiture Special Revenue Fund ................................................................................................. 160 Police Grants Special Revenue Fund ..................................................................................................... 161 Community Services Grant Special Revenue Fund ............................................................................... 162 Citizens Option Public Safety Special Revenue Fund ........................................................................... 163 Local Law Enforcement Block Grant Special Revenue Fund ............................................................... 164 Community Development Block Grant (CDBG) Special Revenue Fund .............................................. 165 Neighborhood Stabilization Program Income Special Revenue Fund ................................................... 166 Measure I Special Revenue Fund ........................................................................................................... 167 Fire Ground Emergency Transportation Special Revenue Fund ........................................................... 168 Cal Home Special Revenue Fund .......................................................................................................... 169 Housing Authority Special Revenue Fund ............................................................................................. 170 Public, Educational and Governmental (PEG) Fees Special Revenue Fund ......................................... 171 Transportation Development Act (TDA) Special Revenue Fund .......................................................... 172 Street Medians Development Special Revenue Fund ............................................................................ 173 City of Rialto
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents (Continued)
Page
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued):
Local Drainage Special Revenue Fund .................................................................................................. 174 Fair Share Agreement Capital Projects Fund ......................................................................................... 175 2005 TABS Fund Capital Projects Fund ................................................................................................ 176 2008 TABs Capital Projects Fund ......................................................................................................... 177 1997 COP Fund Debt Service Fund ....................................................................................................... 178
Other Enterprise Funds:
Combining Statement of Net Position .......................................................................................................... 183 Combining Statement of Revenues, Expenses, and Changes in Net Position .............................................. 184 Combining Statement of Cash Flows ........................................................................................................... 185
Internal Service Funds:
Combining Statement of Net Position .......................................................................................................... 191 Combining Statement of Revenues, Expenses, and Changes in Net Position .............................................. 192 Combining Statement of Cash Flows ........................................................................................................... 193
Custodial Funds:
Combining Statement of Fiduciary Net Position .......................................................................................... 198 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 200
This page intentionally left blank.
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of the City Council of the City of Rialto
Rialto, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activiti es, the business-type activities, each major fund, and the aggregate remaining fund information of City of Ri alto, California (the “City”) as of and for the year ended June 30, 2025, and the related notes to the basic financia l statements, which collectivel y comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referre d 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, 2025, 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 accept ed in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“ Government Auditing Standards ”). Our responsibilities under those standards are further described in the Auditor’s Responsib ilities 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.
Emphasis of Matters
Change in Accounting Principles and Error Corrections
As discussed in Notes 1 and 16 to the financial statements, the City adopted new accounting principle, GASB Statement No. 101, Compensated Absences in 2025, and corrected errors related to the capitalization of certain capital outlay previously expensed and the r ecognition of notes and loans receivable previously reported as unavailable revenue in certain governmental funds, which resulted in restatement of beginning ne t position and fund balances.
Our opinions are not modified with respect to this matter.
To the Honorable Mayor and the Members of the City Council of the City of Rialto
Rialto, California
2 Responsibilities of Management for the Financial Statements
Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es 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 wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ab ility to continue as a going concern for twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd 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 GAAS 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 GAAS and Government Auditing Standards, we
exercise professional judgment and maintain professional skepticism throughout the audit.
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal cont rol-related matters that we identified during the audit.
To the Honorable Mayor and the Members of the City Council of the City of Rialto
Rialto, California
3 Required Supplementary Information
Accounting principles generally accepted in the United St ates of America require that the Budgetary Comparison Schedules, the Schedule of Changes in Net Pension Liab ility and Related Ratios – Misce llaneous Plan and Safety Plans, the Schedules of Contributions – Pensions, the Sc hedule of Changes in Net Ot her Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions - Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of mana gement 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 cer tain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of in quiries of management about the methods of preparing the information and comparing the information for consistency w ith 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 in formation because the limited pr ocedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has omitted the 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 th e Governmental Accounting Standards Board, who considers it to be an essential pa rt of financial reporting for placing the basic financial statements in an appropriate operational, economical, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
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 Co mbining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a re quired part of the basic financial statements. Such information is the responsibility of management and w as derived from and relates directly to the underlying accounting and other records used to prepare the basic financ ial 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 ot her additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financia l Statements are 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 March 26, 2026 on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r 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.
Santa Ana, California
March 26, 2026
4 This page intentionally left blank.
BASIC FINANCIAL STATEMENTS
5 This page intentionally left blank.
6 GOVERNMENT-WIDE FINANCIAL STATEMENTS
7 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 311,483,031 $ 25,605,731 $ 337,088,762 $ Accounts receivable, net 11,183,828 11,004,141 22,187,969 Interest receivable 449,998 25,174 475,172 Due from other governments 17,031,866 - 17,031,866 Notes and loans receivable 4,361,654 661,857 5,023,511 Leases receivable, due in one year 349,890 - 349,890 Internal balances 6,600,000 (6,600,000) - Inventories 103,121 - 103,121 Prepaid items 3,046,879 - 3,046,879 Total current assets 354,610,267 30,696,903 385,307,170 Noncurrent assets:
Restricted assets:
Cash and investments 1,495,821 - 1,495,821 Cash held in escrow 14,924,777 - 14,924,777 Cash held in trust - 76,616,922 76,616,922 Cash and investments with fiscal agent 46,740,420 - 46,740,420 Lease receivable, due in more than one year 4,083,752 - 4,083,752 Land held for resale 1,690,369 - 1,690,369 Capital assets:
Capital assets, not being depreciated 201,040,684 46,965,321 248,006,005 Capital assets, being depreciated, net 209,808,163 69,708,531 279,516,694 Capital assets, being amortized, net 2,648,889 - 2,648,889 Total capital assets 413,497,736 116,673,852 530,171,588 Total noncurrent assets 482,432,875 193,290,774 675,723,649 Total assets 837,043,142 223,987,677 1,061,030,819 DEFERRED OUTFLOWS OF RESOURCES:
Pension related 43,706,216 178,752 43,884,968 OPEB related 4,405,367 30,005 4,435,372 Total deferred outflows of resources 48,111,583 208,757 48,320,340 Primary Government
City of Rialto
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements 8 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 17,848,700 3,119,400 20,968,100 Accrued liabilities 5,448,794 27,275 5,476,069 Accrued interest 65,034 - 65,034 Deposits payable 7,218,854 1,635,509 8,854,363 Compensated absences, due within one year 2,249,800 11,053 2,260,853 Claims and judgments, due within one year 6,165,617 - 6,165,617 Bonds, notes, loans, leases, and SBITA, due within one year 1,517,759 3,895,628 5,413,387 Unearned revenue 1,019,413 8,603 1,028,016 Total current liabilities 41,533,971 8,697,468 50,231,439 Noncurrent liabilities:
Compensated absences, due in more than one year 10,249,086 50,352 10,299,438 Claims and judgments, due in more than one year 24,644,498 - 24,644,498 Bonds, notes, loans, leases, and SBITA, due in more than one year 72,617,201 135,099,110 207,716,311 Net pension liability 160,656,846 834,627 161,491,473 Net OPEB liability 8,669,468 59,047 8,728,515 Total noncurrent liabilities 276,837,099 136,043,136 412,880,235 Total liabilities 318,371,070 144,740,604 463,111,674 DEFERRED INFLOWS OF RESOURCES:
Pension related 94,306 - 94,306 OPEB related 22,516,224 153,355 22,669,579 Lease related 4,264,666 - 4,264,666 Total deferred inflows of resources 26,875,196 153,355 27,028,551 NET POSITION:
Net investment in capital assets 395,977,318 87,779,149 483,756,467 Restricted:
General government 50,649,081 - 50,649,081 Public safety 26,451,790 - 26,451,790 Community development 66,427,009 - 66,427,009 Debt service 578,243 - 578,243 Capital projects 35,938,727 61,737,676 97,676,403 Deposits 6,418,587 - 6,418,587 Total restricted 186,463,437 61,737,676 248,201,113 Unrestricted (deficit) (42,532,296) (70,214,350) (112,746,646) Total net position 539,908,459$ 79,302,475 $ 619,210,934 $ City of Rialto
Statement of Net Position (Continued)
June 30, 2025
Primary Government
See accompanying Notes to the Basic Financial Statements 9 Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental Activities:
General government 55,283,873 $ 6,174,252 $ 17,031,348 $ 266,821 $ Public safety 101,566,865 6,921,424 15,269,142 3,361,623 Community development 30,966,581 7,430,504 19,608,477 2,399,821 Interest on long term debt 3,041,950 - - - Total Governmental Activities 190,859,269 20,526,180 51,908,967 6,028,265 Business-Type Activities:
Water Fund 18,108,558 16,862,089 - 153,025 Wastewater Fund 29,293,783 32,397,234 - 200,000 Airport Fund 92 - - - Cemetery Fund 35,251 220,260 - - Total Business-Type Activities 47,437,684 49,479,583 - 353,025 Total Primary Government 238,296,953$ 70,005,763 $ 51,908,967 $ 6,381,290 $ City of Rialto
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
See accompanying Notes to the Basic Financial Statements 10 Governmental Business-Type
Activities Activities Total
Functions/Programs
Primary government:
Governmental Activities:
General government (31,811,452) $ - $ (31,811,452)$ Public safety (76,014,676) - (76,014,676) Community development (1,527,779) - (1,527,779) Interest on long term debt (3,041,950) - (3,041,950) Total Governmental Activities (112,395,857) - (112,395,857) Business-Type Activities:
Water Fund - (1,093,444) (1,093,444) Wastewater Fund - 3,303,451 3,303,451 Airport Fund - (92) (92) Cemetery Fund - 185,009 185,009 Total Business-Type Activities - 2,394,924 2,394,924 Total Primary Government (112,395,857) 2,394,924 (110,000,933) General revenues, and transfers:
General revenues:
Property taxes 43,691,644 881 43,692,525 Sales taxes 66,455,746 - 66,455,746 Transient occupancy taxes 931,169 - 931,169 Franchise taxes 3,911,409 - 3,911,409 Utility users tax 18,638,193 - 18,638,193 Other taxes 163,998 - 163,998 Investment income 11,990,126 3,327,973 15,318,099 Other revenues 9,405 - 9,405 Total General Revenues 145,791,690 3,328,854 149,120,544 Transfers:
Transfers (29,976,430) 29,976,430 - Total Transfers (29,976,430) 29,976,430
-
Changes in Net Position 3,419,403 35,700,208 39,119,611 Net Position, as previously reported 532,547,129 43,604,940 576,152,069 Change in accounting principle 543,667 (2,673) 540,994 Error correction 3,398,260 - 3,398,260 Net Position - Beginning of year, as restated (Note 16) 536,489,056 43,602,267 580,091,323 Net Position - End of year 539,908,459$ 79,302,475 $ 619,210,934 $ Net (Expense) Revenue and Changes in Net Position
City of Rialto
Statement of Activities (Continued)
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 11 This page intentionally left blank.
12 FUND FINANCIAL STATEMENTS
13 This page intentionally left blank.
14 GOVERNMENTAL FUND FINANCIAL STATEMENTS
15 Special
Revenue
Fund
Park City Police Station Nonmajor
Development Capital Capital Governmental
General Fund Fund Projects Fund Projects Fund Funds
ASSETS
Cash and investments 93,910,628 $ 11,041,968 $ 36,724,183 $ - $ 150,262,389$ Accounts receivable 7,296,622 68,859 33,059 - 3,022,637 Interest receivable 449,998 - - - - Due from other governments 15,191,650 - - - 1,840,216 Notes and loans receivable - - - - 4,361,654 Leases receivable 4,433,642 - - - - Due from other funds 7,207,180 - 21,848,913 - - Advances to other funds 17,492,605 - - - - Inventories 103,121 - - - - Prepaid items 84,465 - 56,871 - 2,905,543 Land held for resale 719,969 - - - 970,400 Restricted assets:
Cash and investments - - - - 1,495,821 Cash held in escrow 14,839,990 - 84,787 - - Cash and investment with fiscal agent - - - 46,740,220 200 Total assets 161,729,870$ 11,110,827 $ 58,747,813 $ 46,740,220 $ 164,858,860 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 9,729,786 $ - $ 2,978,248$ - $ 4,858,871$ Accrued liabilities 5,356,922 - - - 86,523 Deposits payable 6,481,748 - - - 737,106 Due to other funds - - - 21,848,913 7,207,180 Advances from other funds - 10,892,605 - - - Unearned revenues 657,884 - - - 361,125 Total liabilities 22,226,340 10,892,605 2,978,248 21,848,913 13,250,805 Deferred inflows of resources:
Unavailable revenues 1,837,693 - - - 3,013,849 Lease related 4,264,666 - - - - Total deferred inflows of resources 6,102,359 - - - 3,013,849 Fund balances:
Nonspendable 18,400,160 - 56,871 - - Restricted 6,418,587 218,222 84,787 24,891,307 154,850,534 Committed 36,295,841 - - - - Assigned - - 55,627,907 - - Unassigned (deficit) 72,286,583 - - - (6,256,328) Total fund balances 133,401,171 218,222 55,769,565 24,891,307 148,594,206 Total liabilities, deferred inflows
of resources, and fund balances 161,729,870$ 11,110,827 $ 58,747,813 $ 46,740,220 $ 164,858,860 $ Capital Projects Funds
City of Rialto
June 30, 2025
Governmental Funds
Balance Sheet
See accompanying Notes to the Basic Financial Statements 16 Total
Governmental
Funds
ASSETS
Cash and investments 291,939,168$
Accounts receivable 10,421,177
Interest receivable 449,998
Due from other governments 17,031,866
Notes and loans receivable 4,361,654
Leases receivable 4,433,642
Due from other funds 29,056,093
Advances to other funds 17,492,605
Inventories 103,121
Prepaid items 3,046,879
Land held for resale 1,690,369
Restricted assets:
Cash and investments 1,495,821
Cash held in escrow 14,924,777
Cash and investment with fiscal agent 46,740,420
Total assets 443,187,590$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 17,566,905$
Accrued liabilities 5,443,445
Deposits payable 7,218,854
Due to other funds 29,056,093
Advances from other funds 10,892,605
Unearned revenues 1,019,009
Total liabilities 71,196,911
Deferred inflows of resources:
Unavailable revenues 4,851,542
Lease related 4,264,666
Total deferred inflows of resources 9,116,208
Fund balances:
Nonspendable 18,457,031
Restricted 186,463,437
Committed 36,295,841
Assigned 55,627,907
Unassigned (deficit) 66,030,255
Total fund balances 362,874,471
Total liabilities, deferred inflows
of resources, and fund balances 443,187,590$
City of Rialto
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 17 This page intentionally left blank.
18 Total Fund Balances - Total Governmental Funds 362,874,471$ Amounts reported for governmental activities in the statement of net position are different because:
413,497,736
43,664,298$
4,398,331
(94,306)
(22,480,262) 25,488,061
4,851,542
(11,001,295)
Notes payable (1,529,000)$
Financed purchase agreements (9,067,053)
Bonds payable (61,138,357)
Subscriptions payable (2,400,550)
Compensated absences, net of $(13,566) reported in Internal Service Funds (12,485,320) Accrued interest payable on long term debt (65,034)
Net pension liability, net of $(195,726) reported in Internal Service Funds (160,461,120) Net OPEB liability, net of $(13,846) reported in Internal Service Funds (8,655,622) (255,802,056) Net position of governmental activities 539,908,459$
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.
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.
Long term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Deferred outflows pension related, net of $41,918 reported in Internal Service Funds Deferred outflows OPEB related, net of $7,036 reported in Internal Service Funds Deferred inflows pension related
Deferred inflows OPEB related, net of $(35,962) reported in Internal Service Funds Revenues earned but not available to pay for current expenditures for governmental funds are reported as unavailable revenue in the Governmental Funds Balance Sheet.
City of Rialto
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds.
See accompanying Notes to the Basic Financial Statements 19 Special
Revenue
Fund
Park City Police Station Nonmajor
Development Capital Capital Governmental
General Fund Fund Projects Fund Projects Fund Funds
Revenues:
Taxes 135,715,686$ - $ - $ - $ 2,618,373$ Licenses and permits 6,415,786 - - - - Intergovernmental 9,579,278 - - - 24,055,422 Charges for services 11,452,643 1,730,543 - - 1,315,600 Use of money and property 12,100,119 302,657 220,086 3,397,095 3,911,010 Fines and forfeitures 1,145,124 - - - - Developer participation - - - - 6,452,410 Miscellaneous 1,818,846 - - - 175,827 Total revenues 178,227,482 2,033,200 220,086 3,397,095 38,528,642 Expenditures:
Current:
General government 40,064,034 - - - 1,099,687 Public safety 77,557,276 - 841,692 - 5,068,771 Community development 24,389,014 - 493,405 - 4,048,977 Capital outlay 403,260 - 11,901,388 37,902,100 23,673,455 Debt service:
Principal 1,066,041 - - - 547,071 Interest and fiscal charges 282,484 - - - 3,036,237 Total expenditures 143,762,109 - 13,236,485 37,902,100 37,474,198
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 34,465,373 2,033,200 (13,016,399) (34,505,005) 1,054,444 Other financing sources (uses):
Transfers in 385,343 - 8,292,533 - 1,121,289 Transfers out (35,063,822) - (16,860) - (1,244,913) Issuance of debt 403,260 - - - 694,440 Total other financing sources (uses) (34,275,219) - 8,275,673 - 570,816 NET CHANGE IN FUND BALANCES 190,154 2,033,200 (4,740,726) (34,505,005) 1,625,260 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 133,211,017 (1,814,978) 60,510,291 59,396,312 145,057,644 $Error correction - - - - 1,911,302 Beginning of year, as restated (Note 16) 133,211,017 (1,814,978) 60,510,291 59,396,312 146,968,946 End of year 133,401,171$ 218,222 $ 55,769,565 $ 24,891,307 $ 148,594,206 $ Capital Projects Funds
City of Rialto
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 20 Total
Governmental
Funds
Revenues:
Taxes 138,334,059$
Licenses and permits 6,415,786
Intergovernmental 33,634,700
Charges for services 14,498,786
Use of money and property 19,930,967
Fines and forfeitures 1,145,124
Developer participation 6,452,410
Miscellaneous 1,994,673
Total revenues 222,406,505
Expenditures:
Current:
General government 41,163,721
Public safety 83,467,739
Community development 28,931,396
Capital outlay 73,880,203
Debt service:
Principal 1,613,112
Interest and fiscal charges 3,318,721
Total expenditures 232,374,892
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (9,968,387)
Other financing sources (uses):
Transfers in 9,799,165
Transfers out (36,325,595)
Issuance of debt 1,097,700
Total other financing sources (uses) (25,428,730)
NET CHANGE IN FUND BALANCES (35,397,117)
FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 396,360,286
Error correction 1,911,302
Beginning of year, as restated (Note 16) 398,271,588
End of year 362,874,471$
For the Year Ended June 30, 2025
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Rialto
See accompanying Notes to the Basic Financial Statements 21 Net change in fund balances - total governmental funds: (35,397,117)$ Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures, net of $1,708,092 in capital contributions and functional expenses of $116,766 75,471,529$
Depreciation and amortization expense (20,467,229)
Net effect on disposal of capital assets (776,557) 54,227,743 257,271
Subscriptions issued (1,097,700)$
Principal payments 1,613,112 515,412
(6,114,827)
Interest and amortization expense 276,771$
Compensated absences (546,258)
Changes in pension liabilities and related deferrals (14,961,437) Changes in OPEB liabilities and related deferrals 5,161,845 (10,069,079) Change in net position of governmental activities 3,419,403$ 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.
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.
Revenues in the Government-Wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds.
City of Rialto
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the portion of the cost attributed to capital assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The remaining amounts are expensed and allocated to the programs they support.
Net change in fund balances total governmental funds:
See accompanying Notes to the Basic Financial Statements 22 PROPRIETARY FUND FINANCIAL STATEMENTS
23 Governmental
Activities
Internal
Water Wastewater Nonmajor Total Service Funds
ASSETS
Current assets:
Cash and investments 1,857,514 $ 13,118,084 $ 10,630,133 $ 25,605,731 $ 19,543,863 $ Interest receivable 25,174 - - 25,174 - Accounts receivable 3,446,243 7,391,851 166,047 11,004,141 762,651 Total current assets 5,328,931 20,509,935 10,796,180 36,635,046 20,306,514 Noncurrent assets:
Restricted:
Cash and investments held in trust 20,928,223 55,688,699 - 76,616,922 - Notes and loans receivable 292,598 369,259 - 661,857 - Advances to other funds - 3,000,000 - 3,000,000 - Capital assets:
Capital assets, not being depreciated 8,372,917 38,592,404 - 46,965,321 - Capital assets, being depreciated, net 19,185,834 50,522,697 - 69,708,531 - Total capital assets 27,558,751 89,115,101 - 116,673,852 - Total noncurrent assets 48,779,572 148,173,059 - 196,952,631 - Total assets 54,108,503 168,682,994 10,796,180 233,587,677 20,306,514
DEFERRED OUTFLOWS OF RESOURCES
Pension related 78,172 95,543 5,037 178,752 41,918 OPEB related 13,122 16,037 846 30,005 7,036 Total deferred outflows of resources 91,294 111,580 5,883 208,757 48,954 (Continued)
City of Rialto
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements 24 Governmental
Activities
Internal
Water Wastewater Nonmajor Total Service Funds
LIABILITIES
Current liabilities:
Accounts payable 1,344,200 1,766,340 8,860 3,119,400 281,795 Accrued liabilities 11,275 15,331 669 27,275 5,349 Deposits payable 1,060,862 573,647 1,000 1,635,509 - Compensated absences 5,382 5,382 289 11,053 2,442 Claims and judgments - - - - 6,165,617 Bonds, notes, loans, and leases 1,065,427 2,830,201 - 3,895,628 - Unearned revenue - 8,603 - 8,603 404 Total current liabilities 3,487,146 5,199,504 10,818 8,697,468 6,455,607 Noncurrent liabilities:
Advances from other funds 9,600,000 - - 9,600,000 - Compensated absences 24,517 24,517 1,318 50,352 11,124 Claims and judgments - - - - 24,644,498 Bonds, notes, loans, and leases 28,085,501 107,013,609 - 135,099,110 - Net pension liability 365,000 446,110 23,517 834,627 195,726 Net OPEB liability 25,822 31,561 1,664 59,047 13,846 Total noncurrent liabilities 38,100,840 107,515,797 26,499 145,643,136 24,865,194 Total liabilities 41,587,986 112,715,301 37,317 154,340,604 31,320,801
DEFERRED INFLOWS OF RESOURCES
OPEB related 67,065 81,968 4,322 153,355 35,962 Total deferred inflows of resources 67,065 81,968 4,322 153,355 35,962
NET POSITION
Net investment in capital assets 24,501,361 63,277,788 - 87,779,149 - Restricted for water stabilization
and capital projects trust 17,714,948 44,022,728 - 61,737,676 - Unrestricted (deficit) (29,671,563) (51,303,211) 10,760,424 (70,214,350) (11,001,295) Total net position 12,544,746$ 55,997,305 $ 10,760,424 $ 79,302,475 $ (11,001,295)$ (Concluded)
Business-Type Activities
Enterprise Funds
City of Rialto
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements 25 This page intentionally left blank.
26 Governmental
Activities
Internal
Water Wastewater Nonmajor Total Service Funds
OPERATING REVENUES:
Sales and service charges 16,078,254 $ 32,397,234 $ 220,260 $ 48,695,748 $ - $ Interdepartmental charges for services - - - - 11,783,626 Other revenues 783,835 - - 783,835 - Total operating revenues 16,862,089 32,397,234 220,260 49,479,583 11,783,626 OPERATING EXPENSES:
Administration and general 5,417,931 4,688,513 24,727 10,131,171 149,155 Cost of sales and services 9,852,930 12,148,295 10,616 22,011,841 14,957,987 Depreciation 940,043 2,371,482 - 3,311,525 - Total operating expenses 16,210,904 19,208,290 35,343 35,454,537 15,107,142 OPERATING INCOME (LOSS) 651,185 13,188,944 184,917 14,025,046 (3,323,516) NONOPERATING INCOME (EXPENSES):
Taxes - - 881 881 - Interest revenue 939,905 2,365,680 22,388 3,327,973 658,689 Interest expense (1,897,654) (10,085,493) - (11,983,147) - Total nonoperating income (expenses) (957,749) (7,719,813) 23,269 (8,654,293) 658,689
NET INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (306,564) 5,469,131 208,186 5,370,753 (2,664,827) CONTRIBUTIONS AND TRANSFERS:
Contributions 153,025 200,000 - 353,025 - Transfers in 5,000,000 25,000,000 - 30,000,000 - Transfers out (11,497) (12,073) - (23,570) (3,450,000) Total contributions and transfers 5,141,528 25,187,927 - 30,329,455 (3,450,000) Change in Net Position 4,834,964 30,657,058 208,186 35,700,208 (6,114,827) NET POSITION (DEFICIT):
Beginning of the year, as previously reported 7,692,308 25,360,370 10,552,262 43,604,940 (4,886,282) Change in accounting principle 17,474 (20,123) (24) (2,673) (186) Beginning of the year, as restated (Note 16) 7,709,782 25,340,247 10,552,238 43,602,267 (4,886,468) End of the year 12,544,746 $ 55,997,305 $ 10,760,424 $ 79,302,475 $ (11,001,295) $ Business-Type Activities
Enterprise Funds
City of Rialto
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 27 Governmental
Activities
Internal
Water Wastewater Nonmajor Total Service Funds
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from customers 14,287,902 $ 31,072,667 $ 206,197 $ 45,566,766 $ - $ Receipts from interfund charges - - - - 11,810,129 Payments to suppliers and service providers (15,289,593) (17,496,353) (34,649) (32,820,595) (14,189,413) Payments to employees for salaries and benefits (106,341) (133,201) (4,014) (243,556) (129,829) Net cash provided by operating
activities (1,108,032) 13,443,113 167,534 12,502,615 (2,509,113)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers from other funds 5,000,000 25,000,000 - 30,000,000 - Transfers to other funds (11,497) (12,073) - (23,570) (3,450,000) Payments to short-term interfund borrowings 200,751 710,487 - 911,238 17,740 Receipts from contributions 153,025 200,000 - 353,025 - Receipts from taxes - - 881 881 - Net cash provided by noncapital
financing activities 5,342,279 25,898,414 881 31,241,574 (3,432,260)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (182,849) (934,120) - (1,116,969) - Principal paid on capital debt (1,002,346) (2,596,506) - (3,598,852) - Interest paid on capital debt (1,897,654) (10,085,493) - (11,983,147) - Net cash (used in) capital and related
financing activities (3,082,849) (13,616,119) - (16,698,968) -
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest earnings 937,857 2,365,680 22,388 3,325,925 658,689 Net cash provided by investing activities 937,857 2,365,680 22,388 3,325,925 658,689 Net change in cash and cash equivalents 2,089,255 28,091,088 190,803 30,371,146 (5,282,684) CASH AND CASH EQUIVALENTS:
Beginning of year 20,696,482 40,715,695 10,439,330 71,851,507 24,826,547 End of year 22,785,737$ 68,806,783 $ 10,630,133 $ 102,222,653 $ 19,543,863 $ CASH AND CASH EQUIVALENTS:
Cash and investments 1,857,514 $ 13,118,084 $ 10,630,133 $ 25,605,731 $ 19,543,863 $ Restricted cash and investments 20,928,223 55,688,699 - 76,616,922 - Total cash and cash equivalents 22,785,737$ 68,806,783 $ 10,630,133 $ 102,222,653 $ 19,543,863 $ City of Rialto
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements 28 Governmental
Activities
Internal
Water Wastewater Nonmajor Total Service Funds
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in)
Operating Activities:
Operating income (loss) 651,185 $ 13,188,944$ 184,917 $ 14,025,046 $ (3,323,516) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used for)
operating activities:
Depreciation expense 940,043 2,371,482 - 3,311,525 - (Increase) decrease in accounts receivable (1,676,659) (1,107,695) (14,063) (2,798,417) 26,099 (Increase) decrease in pension deferred outflows 72,491 88,600 3,457 164,548 13,298 (Increase) decrease in OPEB deferred outflows 11,192 13,680 525 25,397 1,876 Increase (decrease) in accounts payable (18,732) (659,545) 694 (677,583) (169,578) Increase (decrease) in accrued liabilities 6,396 6,763 44 13,203 1,458 Increase (decrease) in unearned revenues (897,528) (216,872) - (1,114,400) 404 Increase (decrease) in compensated absences 9,777 9,776 (105) 19,448 534 Increase (decrease) in claims and judgments - - - - 938,152 Increase (decrease) in net pension liability (142,336) (173,967) (5,084) (321,387) 9,796 Increase (decrease) in net OPEB liability (57,096) (69,784) (3,010) (129,890) (16,542) Increase (decrease) in OPEB deferred inflows (6,765) (8,269) 159 (14,875) 8,906 Net cash provided by (used in)
o
perating activities (1,108,032)$ 13,443,113 $ 167,534 $ 12,502,615 $ (2,509,113) $ City of Rialto
Business-Type Activities
Enterprise Funds
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements 29 This page intentionally left blank.
30 FIDUCIARY FUNDS FINANCIAL STATEMENTS
31 This page intentionally left blank.
32 Pension (and Private
Other Purpose
Employee Trust Fund
Benefit) Trust Successor Custodial
Fund Agency Funds
ASSETS:
Cash and cash equivalents - $ 10,515,618$ 3,576,238 $ Cash and cash equivalents held with fiscal agents - 5,013,237 2,399,033 Investments 30,472,821
Accounts receivable - 10,575 - Interest receivable - 37,723 - Due from other governments - 18 237,427 Notes and loans receivable - 5,721,415 - Land held for resale - 19,689,855 - Capital assets, not being depreciated - 290,347 - Capital assets, net of accumulated depreciation/amortization - 54,614 - Total assets 30,472,821 41,333,402 6,212,698 DEFERRED OUTFLOWS OF RESOURCES:
Deferred charge on refunding - 467,329 - Total deferred outflows of resources - 467,329 - LIABILITIES:
Accounts payable - 2,970 51,603 Accrued liabilities - 91 - Accrued interest - 1,865,439 - Unearned revenues - 255,315 - Due to other government - - 5,936,582 Long term liabilities:
Bonds payable, due in one year - 5,285,000 - Bonds payable, due in more than one year - 94,682,182 - Total liabilities - 102,090,997 5,988,185 DEFERRED INFLOWS OF RESOURCES:
Deferred charge on refunding - 145,765 - Total deferred outflows of resources - 145,765 - NET POSITION (DEFICIT):
Restricted for:
Individuals, organizations, and other governments 30,472,821 (60,436,031) 224,513 Total net position (deficit) 30,472,821$ (60,436,031) $ 224,513 $ June 30, 2025
Statement of Fiduciary Net Position
City of Rialto
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements 33 Pension (and Private Purpose
Other Employee Trust Fund
Benefit) Trust Successor Custodial
Fund Agency Funds
ADDITIONS:
Redevelopment property tax trust fund - $ 10,990,870$ - $ Taxes and assessments - - 2,913,233 Interest and net increase in fair value of investments 2,844,187 468,099 333,780 Miscellaneous - 47,051 50,000 Total additions 2,844,187 11,506,020 3,297,013 DEDUCTIONS:
Benefits 1,799,388 - - Administrative expenses - 10,751 1,346,017 Interest and fiscal charges - 5,216,078 1,288,233 Principal expense - - 210,000 Contributions to other governments - - 228,250 Depreciation/amortization - 1,956 - Total deductions 1,799,388 5,228,785 3,072,500 Change in net position 1,044,799 6,277,235 224,513 NET POSITION (DEFICIT):
Beginning of year 29,428,022 (66,713,266) - End of year 30,472,821$ (60,436,031) $ 224,513 $ City of Rialto
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 34 35
NOTES TO THE BASIC FINANCIAL STATEMENTS
36 This page intentionally left blank.
City of Rialto
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
37 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................ 41
A. Financial Reporting Entity ............................................................................................................................... 41 B. Basis of Accounting and Measurement Focus...................................................................................... ........... 42 C. Cash, Cash Equivalents, and Investments ....................................................................................................... 45 D. Fair Value Measurement ........................................................................................................ ......................... 46 E. Restricted Cash and Investments ..................................................................................................................... 46 F. Inventories and Prepaid Items ......................................................................................................................... 46 G. Land Held for Resale ....................................................................................................................................... 46 H. Capital Assets .................................................................................................................................................. 46 I. Deferred Outflows/Inflows of Resources ........................................................................................................ 47 J. Leases .............................................................................................................................................................. 48 K. Subscription-Based Information Technology Arrangements .......................................................................... 49 L. Pensions ........................................................................................................................................................... 49 M. Other Postemployment Benefits ...................................................................................................................... 50 N. Long-Term Liabilities.......................................................................................................... ............................ 50 O. Compensated Absences ................................................................................................................................... 51 P. Claims and Judgments ..................................................................................................................................... 51 Q. Interfund Transactions ..................................................................................................................................... 51 R. Unbilled Receivables ....................................................................................................................................... 51 S. Net Position ..................................................................................................................................................... 51 T. Fund Balance ................................................................................................................................................... 52 U. Use of Estimates .............................................................................................................................................. 53 V. Implementation of New GASB Pronouncements ............................................................................................ 53
Note 2 – Stewardship, Compliance, and Accountability ......................................................................................... 53
A. Deficit Fund Balances and Net Position .......................................................................................................... 53 B. Compliance with Budgetary Limitations ......................................................................................................... 54
Note 3 – Cash and Investments .............................................................................................................................. ... 55
A. Deposits ........................................................................................................................................................... 55 B. Investments Authorized by the California Government Code and the City’s Investment Policy ................... 56 C. Risk Disclosures .............................................................................................................................................. 56 D. Fair Value Measurement ........................................................................................................ ......................... 58 E. Local Agency Investment Fund (“LAIF”) ....................................................................................................... 58 F. Cash and Investments Held in OPEB Trust ..................................................................................................... 59 G. Cash and Investments Held in Trust ................................................................................................................ 59 H. Cash in Escrow ................................................................................................................................................ 59 I. Cash and Investments with Fiscal Agents ....................................................................................................... 59
Note 4 – Accounts Receivable .................................................................................................................................... 60
Note 5 – Notes and Loans Receivable ....................................................................................................................... 61
Note 6 – Lease Receivable .......................................................................................................................................... 65 City of Rialto
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
38 Page
Note 7 – Interfund Transactions .............................................................................................................................. . 65
A. Advances to/From Other Funds ....................................................................................................................... 65 B. Due to/From Other Funds ................................................................................................................................ 66 C. Transfers In/Transfers Out ............................................................................................................................... 66
Note 8 – Land Held for Resale ................................................................................................................................... 67
Note 9 – Capital Assets ............................................................................................................................................... 68
A. Governmental Activities .................................................................................................................................. 68 B. Business-Type Activities ................................................................................................................................. 69
Note 10 – Long-Term Liabilities .............................................................................................................................. . 70
A. Governmental Activities .................................................................................................................................. 70 B. Business-Type Activities ................................................................................................................................. 74
Note 11 – Defined Benefit Pension Plans .................................................................................................................. 77
A. General Information about the Pension Plans ................................................................................................. 77 B. Net Pension Liability ....................................................................................................................................... 79 C. Changes in Net Pension Liability .................................................................................................................... 81
Note 12 – Other Postemployment Benefits (“OPEB”) ............................................................................................ 83
A. General Information about the OPEB Plan ..................................................................................................... 83 B. Net OPEB Liability ............................................................................................................ ............................. 84 C. Changes in Net OPEB Liability ....................................................................................................................... 86
Note 13 – Risk Management ...................................................................................................................................... 87
Note 14 – Net Investment in Capital Assets .............................................................................................................. 88
Note 15 – Fund Balance Classifications .................................................................................................................... 89
Note 16 – Restatement of Beginning Net Position and Fund Balances .................................................................. 89
Note 17 – Joint Power Authority ............................................................................................................................... 90
Note 18 – Contingencies ............................................................................................................................................. 91
Note 19 – Tax Abatement Agreement ....................................................................................................................... 91
Note 20 – Concessionaire Agreement ........................................................................................................................ 91
A. Wastewater Facility ......................................................................................................................................... 91 B. Water Facility .................................................................................................................................................. 93 City of Rialto
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025
39 Page
Note 21 – Successor Agency Disclosures ................................................................................................................... 94
A. Cash and Investments ...................................................................................................................................... 95 B. Notes Receivable ............................................................................................................................................. 96 C. Property Held for Resale ................................................................................................................................. 97 D. Capital Assets .................................................................................................................................................. 97 E. Long-Term Liabilities.......................................................................................................... ............................ 98 F. Other Commitments ............................................................................................................. ......................... 102
40 This page intentionally left blank.
City of Rialto
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
41 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the C ity of Rialto, California (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as applied to government units.
The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A. Financial Reporting Entity
The City was incorporated in 1911 under the General La ws 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.
Component Units:
The financial statements include the financial activities of the City of Rialto, the primary government, and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the C ity appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization, or there is a financial benefits or financial burden relationship. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City) and there is a burden or benefit component to the relationship. In certain cases, other organizations are included as com ponent units if the nature and significance of their relationship with the City are such that their executi on would cause the City’s financial statements to be misleading or incomplete.
Management determined that the following component units should be blended based on the criteria above:
Rialto Public Financing Authority
The Rialto Public Financing Authority (the “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 and Police Station Debt Service Funds.
Rialto Utility Authority
The Rialto Utility Authority (the “Utility Authority”) was created on May 1, 2001 pursua nt 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 Poo ling Act of 1985. The Utility Authority was formed to provide for lease, ownership, operation, maintenance, c onstruction, and fina ncing 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 be nefit/burden relationship between the City and the Utility Authority. The financial activity of the Utility Auth ority is blended with the City’s proprietary funds in the Water and Wastewater Proprietary Funds.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
42 Note 1 – Summary of Significant Accounting Policies (Continued)
A. Financial Reporting Entity (Continued)
Component Units: (Continued)
Rialto Nonprofit Public Building Authority
The Rialto Nonprofit Public Building Authority (the “Building Authority”) was established in 1988. Although it is legally separate from the City, the Bu ilding Authority is reported as if it were part of the City because is sole purposes is to finance, refinance, acquire, construct, im prove, lease, sell, or othe rwise 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.
Rialto Housing Authority
The Rialto Housing Authority (the “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 mark et intervention, including the acqui sition 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 Aut hority, and Housing Authority do not issue separate financial statements.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of f unds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expe nditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds b ased upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The Government-Wide Financial Statements are presented on an “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, including capital assets, as well as infrastructure assets, deferred outflows of resources, liabilities, including long-term liabilities, and deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. On an accrual basis, revenue from sales taxes is recognized in the pe riod in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requir ements, in which the City must provi de local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
43 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government-Wide Financial Statements (Continued)
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, pa yables and receivables. All internal balances in the Statement of Net Po sition have been eliminated except those representing balances between the governmental activities and the business-type activities, whic h are presented as internal balances and eliminated in the total primary government column. In the Statem ent of Activities, internal service fund transactions have been eliminated; however, those tran sactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due from and to other funds
Advances to and from other funds
Transfers in and out
Governmental Fund Financial Statements
A Balance Sheet and a Statement of Revenues, Expenditu res and Changes in Fund Balances are presented for all major governmental funds and aggregated nonmajor f unds. Accompanying schedules are presented to reconcile and explain the differences in fund balances as presented in these statements, to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or “ current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expe nditures of the current period. For this purpose, the City considers revenues to be available if they are collect ed within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, expenditures related to compensated absences, pension and other post-employment be nefits, and the redemption of district credits are recorded only when payment is due.
Revenues are recorded when received in cash, except tho se revenues subject to accrual are recognized when due.
Property taxes, taxpayer-assessed tax reve nues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of estimated refunds and uncollectible amounts, and inter governmental revenues associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period, as defined above.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
44 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
The City reports the following major governmental funds:
General Fund – The General Fund is the City’s primary operating fund used to account for resources traditionally associated with governments, which are not legally required or by s ound financial management to be accounted for in another fund.
Park Development Special Revenue F und – This fund is used to account for development fees collected and used for the acquisition of parklands and the construction of new and expansion of park facilities.
City Capital Projects Fund – This fund is used to account for capital projects of the City with resources from bond financing, government grants, and investment inco me, received to fund expenditures related to City infrastructure and development improvements.
Police Station Capital Projects Fund – This fund is used to account for the funding and construction of the City’s new police station.
Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (wheth er current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under th e accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues and expenses result from exchange transactions associated with the principal activities of operating and maintaining the fund. The operating revenu es consist of charges to customers for the service provided. Operating expenses include the costs of providing these services, administrative expenses and depreciation expense. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non-operating revenues and expenses.
A separate column representing internal service funds is also presented in these statem ents. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include two individual funds which provide services directly to other City funds, primarily for self-insuran ce. These funds provide service to other City departments on a cost reimbursement basis.
The City reports the following major proprietary fund:
Water Enterprise Fund – This fund is an enterprise fund used to acc ount for the activities associated with the transmission and distribution of potable water by the City and its users.
Wastewater Enterprise Fund – This fund is an enterprise fund used to account for the activities of the City’s wastewater systems.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
45 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary fund repr esent private-purpose trust fund and custodial funds. The private-purpose trust fund and custodial funds use the economic resources measurement focus and the full accrual basis of accounting where the assets associated with th e activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.
The City reports the following fiduciary fund types:
Pension (and Other Employee Benefit) Trust Fund Acc ounts – These funds account for the activities of the City’s plan for post-retirement medical benefits.
Private-Purpose Trust Fund – This fund accounts for th e fiduciary responsibilities that are assigned to the Successor Agency to the Rialto Redevelopment Agency pursuant to the Dissolution Act.
Custodial Funds – 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.
C. Cash, Cash Equivalents, and Investments
For purposes of the statement of cash flows, cash equivale nts are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of cha nges in interest rates. Cash equivalent s have an original maturity date of three months or less from the date of purchase.
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable, and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various f unds based on each fund’s average cash and investment balance.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
46 Note 1 – Summary of Significant Accounting Policies (Continued)
D. Fair Value Measurement
GAAP defines fair value, establishes a framework for meas uring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quoted prices for iden tical assets or liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date. Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use pricing the assets or liabilities at the measurement date.
E. Restricted Cash and Investments
Certain proceeds of governmental fund certificates of pa rticipation and enterprise fund long-term liabilities as well as certain resources set aside for their repayment, ar e classified as restricted assets on the balance sheet and statement of net position because their use is limited by a pplicable bond or debt covenants. The enterprise funds restricted cash and investments includes amounts held in tr ust for the Rialto Water Services water and wastewater operations and capital projects. The cemetery (other en terprise fund) restricted cash and investments include amounts held for long-term endowment care required by state law.
F. Inventories and Prepaid Items
Inventory is valued at cost, which approximates fair va lue, on a first-in, first-out basis. Inventory in the proprietary funds consists of expendable supplies held for consumpti on. 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 fu ture accounting periods are re corded as prepaid items in both government-wide and fund financial statements and are recorded as expenditures when consumed rather than when purchased.
G. Land Held for Resale
Land held for resale represents properties acquired for redevelopment, economic de velopment, affordable housing, and airport redevelopment purposes. These properties are reported at the lower of cost or net realizable value.
H. Capital Assets
Capital assets, which include property, plant, equipmen t, lease and subscription assets, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable go vernmental or business-type activities columns in the government-wide financial statem ents and in the fund financial statements of the proprietary funds and private-purpose trust fund.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
47 Note 1 – Summary of Significant Accounting Policies (Continued)
H. Capital Assets (Continued)
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 reco rded at historical cost or estimat ed 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.
Capital assets, which include property, plant, equipmen t, lease and subscription assets, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable go vernmental or business-type activities columns in the government-wide financial statem ents 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 reco rded at historical cost or estimat ed 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 constr uction in progress, are depreciated or amortized using the straight-line method using the following lives:
The following schedule summarizes capital asset useful lives:
Assets Years
Land Improvements 200
Buildings and other structures 25-50
Improvements other than buildings 20
Subscription assets 3-5
Lease assets 25-50
M achinery and equipments 5-7
Distribution systems 20-50
Wastewater treatment plant 20-50
Vehicles 5-10
Office furniture, computers, and equipment 5-20
Infrastructure 20-60
I. Deferred Outflows/Inflows of Resources
The statement of net position and balance sheet reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.
Deferred Outflows of Resources represent a consumption of net assets that applies to future periods.
Deferred Inflows of Resources represent an acquisition of net assets that apply to future periods.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
48 Note 1 – Summary of Significant Accounting Policies (Continued)
J. Leases
Lessee: the City is a less ee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lea se asset) in the government- wide financ ial 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 u seful 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.
The City uses the interest rate charged by the lessor as th e discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estim ated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and pur chase option price that the City is reasonably certain to exercise.
The City monitors changes in circum stances that would require a remeasureme nt 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 l ease liabilities are reported with long-term debt on the statement of net position.
Lessor: the City is a lessor for a noncancellable lease of a building. 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 receivabl e at the present value of payments expected to be received during the lease term. Subseque ntly, 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 befo re 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 dete rmines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the l ease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circum stances that would require a remeasureme nt of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e expected to significantly affect the amount of the lease receivable.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
49 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Subscription-Based Information Technology Arrangements
The City is a subscriber for a noncancellable subscr iption of information technology services. The City recognizes a subscription liability and an intangible ri ght-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 subscr iption liability at the present value of payments expected to be made during the subscripti on term. Subsequently, the sub scription liability is reduced by the principal portion of subscripti on payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscr iption 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 judgm ents related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
The City uses the interest rate charged by the vendor or incremental as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimat ed incremental borrowing rate as the discount rate for subscriptions.
The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liab ility are composed of fixed payments that the City is reasonably certain to exercise.
The City monitors changes in circum stances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain cha nges occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets a nd subscription liabilities are reported with long-term debt on the statement of net position.
L. Pensions
For purposes of measuring the net pension liability a nd deferred outflows/inflows of resources related to pensions, and pension expense, info rmation about the fiduciary net positio n of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) a nd additions to/deductions from the Plans’ fiduciary net position have been determined on th e same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported as fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
50 Note 1 – Summary of Significant Accounting Policies (Continued)
L. Pensions (Continued)
Gains and losses related to changes in total pension liability and fiduciary ne t position are recogn ized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Net pension liabilities recorded in governmental activities are generally liquidated through the City’s General Fund and Internal Service funds.
M. Other Postemployment Benefits
For purposes of measuring the net othe r postemployment benefits (“OPEB ”) liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expen se, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by CalPERS, and additions to/deductions from the OPEB Plan’s fiduciary net position have been de termined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in ac cordance with the benefit terms.
Investments are reported at fair value.
The following timeframes are used for OPEB reporting:
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liab ility and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categor ized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The diff erence between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the av erage expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Net OPEB liability recorded in Governmental Activities ar e generally liquidated through the City’s General Fund and Internal Service funds.
N. Long-Term Liabilities
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 re ported as liabilities in the applicable governmental activities, business-type activities, proprieta ry fund type statement of net position, or private- purpose trust fund statement of net position. Bond pr emiums, discounts, and defe rred 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. B onds 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
51 Note 1 – Summary of Significant Accounting Policies (Continued)
O. Compensated Absences
Compensated absences represent employees’ rights to receive compensation for vacation and certain other leave benefits attributable to services already rendered. The liability for compensated absences is recognized as the benefits are earned when the leave accumulates and it is more likely than not that the leave will be used or otherwise paid.
In the governmental funds, compensated absences are recorded as expenditures in the year in which the amount is due and payable, such as upon resignations or retirements . As of year-end, the unpaid portion of compensated absences attributable to governmental funds is reported as a long-term liability in the government-wide statement of net position.
Compensated absences in the pr oprietary funds are recorded as liabilities in the applicable funds as the benefits are earned.
P. Claims and Judgments
The City is self-insured for certain risks, including workers’ compensation and general liability. Liabilities for claims and judgments are recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. The liability includ es estimates for claims that have b een incurred but not reported (IBNR) as well as loss adjustment expenses. The City obtains periodic actuarial studies prepared by an independent actuary to estimate the ultimate cost of claims liabilities.
Q. Interfund Transactions
Interfund current receivables and payables are classified as e ither “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 activiti es and business-type activities are reported in the government-wide financial statements as “internal balan ces”. Transactions, which constitute the transfer of resources from a fund receiving revenues to a fund through wh ich the revenues are to be expended, are separately reported in the respective funds’ operating statements as a transfer.
R. Unbilled Receivables
Unbilled water and wastewater revenue of the enterpri se funds is recognized as earned based on consumption or when service is rendered.
S. Net Position
For government-wide reporting as well as in proprieta ry funds, the difference between assets and deferred outflows of resources less liabilities a nd deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, a nd other debt that are attributable to the acquisition, construction, or impr ovement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the ac quisition, construction, or improvement of those assets or related debt are included in this component of net position.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
52 Note 1 – Summary of Significant Accounting Policies (Continued)
S. Net Position (Continued)
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restrict ed when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.
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 fo r a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calc ulate the amounts to report as restricted net position and unrestricted net position in the government-wide and propr ietary fund financial statements, a flow assumption must be made about the order in which the resources are c onsidered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.
T. 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 a ny limitations requiring the use of resources for specific purposes.
Nonspendable fund balance represents amounts that are either not in a spendable form or are legally or contractually required to remain intact.
Restricted fund balance includes amounts that can be sp ent 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.
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 leve l of decision-making aut hority, the City Council.
Commitments may be changed or lifted only by the C ity taking the same formal action that imposed the constraint originally.
Assigned fund balance includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. 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.
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 th e 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
53 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balance (Continued)
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.
U. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported am ounts and disclosures. Accordingly, actual results could differ from those estimates.
V. Implementation of New GASB Pronouncements
GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences . The objective of this Statement is to better meet the inform ation needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement resulted in restatement of beginning net position at July 1, 2024 presented in Note 16.
GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to cer tain concentrations or constraints which may limit a government's ability to acquire resources or control spe nding. Application of this statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2025.
Note 2 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances and Net Position
In the Governmental-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2025 of $(42,532,003) for its governmental activities and $(70, 214,350) for its business-type activities. The deficit in the governmental activities was mainly due to the rec ognition of net pension liab ility of $160,656,846 and net OPEB liability of $8,669,468. The deficit business-type ac tivities was mainly due to the reporting of debt with concessionaire. As of June 30, 2025, the Water Enterprise Fund reported $29,150,928 in debt with concessionaire, while the Wastewater Enterprise Fund reported $109,460,255 in debt with concessionaire. Management expects the deficits to decrease over time as the related debt is repaid through future operating revenues and charges for services.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
54 Note 2 – Stewardship, Compliance, and Accountability (Continued)
A. Deficit Fund Balances and Net Position (Continued)
The following funds had deficit balances and net position as of June 30, 2025:
Funds Amount
Nonmajor Governmental Funds:
Street Lighting and Landscape Maintenance Special Revenue Fund (239,919)$ Community Services Grants Special Revenue Fund (9,104)
CDBG Special Revenue Fund (275,125)
Neighborhood Stabilization Program Special Revenue Fund (35,670) Fire Special Revenue Fund (209,490)
Transportation Development Act (TDA) Special Revenue Fund (1,331,340) Police Station Debt Service Fund (4,155,387)
Internal S ervice Funds:
Workers' Compensation Fund (5,754,569)
General Liability Fund (5,246,726)
Fiduciary Fund:
Successor Agency Private Purpose Trust Fund (60,436,031)
The deficit in the Special Revenue Funds were due to timing differences between grant receipts and disbursements and is expected to be eliminated through future grant revenues.
The deficit in the Police Station Debt Service Fund was due to a long-term interfund loan from the General Fund, which will eventually be eliminated as the loan is repaid.
The deficits in the Workers’ Compensation and General Li ability Internal Service Funds were due to the accrual of estimated claims and judgments against the City, in cluding those claims incurred but not reported. These deficits are expected to be reduced through future charg es to other City funds and departments as these claims are paid. Management is currently evalua ting the long-term funding approach as part of the fiscal year 2027 budget cycle.
The deficit in the Successor Agency Pr ivate Purpose Trust Fund was 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 activities inevitably conclude.
B. Compliance with Budgetary Limitations
The following funds exceeded appropriation amounts for year ended June 30, 2025:
Final
Funds Appropriation Expendi tures Excess
Nonmajor Governmental Funds:
Street Lighting and Landscape Maintenance Special Revenue Fund 2,547,175$ 2,746,101 $ (198,926) $ Citizens Option Public Safety Special Revenue Fund 1,384,913 1,500,532 (115,619) City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
55 Note 3 – Cash and Investments
The City had the following cash and investments at June 30, 2025:
Fiduciary
Governmental Business-Type Fund Statement
Activities Activities of Net Position Total
Unrestricted assets:
Cash and investments 311,483,031 $ 25,605,731 $ 14,091,856 $ 351,180,618 $ Restricted assets:
Cash and investments 1,495,821 - - 1,495,821 Cash held in escrow 14,924,777 - - 14,924,777 Cash and investment held in trust - 76,616,922 - 76,616,922 Cash and investments with fiscal agent 46,740,420 - 7,412,270 54,152,690 Cash and investments held in OPEB trust - - 30,472,821 30,472,821 Total cash and inv estments 374,644,049$ 102,222,653 $ 51,976,947 $ 528,843,649 $ Governmental-Wide
Statement of Net Position
The City’s cash and investments as of June 30, 2025 consist of the following:
Cash on hand 134,860 $
Deposits with financial institutions 40,625,670
Investments 488,083,119
Total cash and inv estments 528,843,649$
A. Deposits
The carrying amounts of the City’s de mand deposits were $40,625,670 at June 30, 2025. Bank balances at that date were $43,306,737 the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This C ode states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at l east 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging fi rst trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive colla teral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insura nce Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. In terest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
56 Note 3 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that ar e authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restri ctive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the C ity, rather than the general provisions of the California Government Code or the City’s investment policy. The current investment policy was updated in January 2024.
Maximum Credit
Maximum Percentage or Rating
Authorized Investment Type Maturity Value of Portfolio Requirements Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years 100% None
State Obligations - CA and Others 5 years None None
CA Local Agency Obligations 5 years None None
U.S. Agency Obligations 5 years 100% None
Banker s Acceptances* 180 days 40% None
Commercial Paper; Non-Pooled Funds (Under
100 Million of Investments)* 270 days 25% of agency's money Hig hest Letter and number
rating by an NRSRO
Commercial Paper; Non-Pooled Funds
(Minimum 100 Million of Investments)* 270 days 40% of agency's money Hig hest Letter and number
rating by an NRSRO
Commercial Paper; Pooled Funds* 270 days 40% of agency's money Hig hest Letter and number
rating by an NRSRO
Certificates of Deposit (Negotiable)* 5 years 30% None
Certificates of Deposit (Nonnegotiable) 5 years None None Repurchase Agreements 1 year 50% None
Reverse Repurchase Agreements and Securities
Lending Agreements 92 days
20% of the base portfolio
value None
Medium-Term Notes* 5 years 30%
"A" rating category or its
equivalent
Mutual Funds and Money Markey Mutual N/A 20% Multiple
Collateralized Bank Deposits 5 years None None
M ortgage Pass-Through and Asset-Backed
Securities* 5 years 20%
"AA" rating category or its
equivalent
County Pooled Investment Funds N/A None None
Local Agency Investment Funds N/A $75,000,000 per account None Voluntary Investment Program Fund N/A $200,000,000 Minimum None Supranational Obligations 5 years 30%
"AA" rating category or its
equivalent
Public Bank Obligations 5 years None None
* Further restricted to percentage of the value of the portfolio in any one issuer name regardless of sector to a maximum of 5%
C. Risk Disclosures
Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
57 Note 3 – Cash and Investments (Continued)
C. Risk Disclosures (Continued)
Information about the sensitivity of the fair values of th e City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provide d by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 36 37 to 60
Investment Type Total or Less Months Months
U.S. Treasury Obligations 8,204,663$ 8,204,663 $ - $ - $ U.S. Agency Securities 39,404,867 19,771,115 19,633,752 - Commercial Paper 21,526,945 21,526,945 - - Negotiable Certificates of Deposit 621,483 499,546 121,937 - Corporate Bonds 109,727,734 5,381,680 70,975,836 33,370,218 Money Market Mutual Funds 165,632,921 165,632,921 - - Local Agency Investment Fund 12,781,709 12,781,709 - - Held by fiscal agent:
Money Market Mutual Funds 130,182,797 130,182,797 - - Total investments 488,083,119$ 363,981,376 $ 90,731,525 $ 33,370,218 $ Remaining M aturity (in M onths)
Credit Risk – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assi gnment of a rating by a nationally recognized statistical rating organization. Presente d below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.
Mi ni m um
Legal Exempt or
Investment Type Total Rating Aaa Aa A BBB+ to BBB- Not Rated U.S. Treasury Obligations 8,204,663$ N/A - $ - $ 8,204,663$ - $ - $ U.S. Agency Securities 39,404,867 N/A - 39,404,867 - - - Commercial Paper 21,526,945 AA - - 21,526,945 - - Negotiable Certificates of Deposit 621,483 N/A - 621,483 - - - Corporate Bonds 109,727,734 A - - 80,815,294 28,912,440 - Money Market Mutual Funds 165,632,921 AA - - - - 165,632,921 Local Agency Investment Fund 12,781,709 N/A - - - - 12,781,709 Held by fiscal agent:
Money Market Mutual Funds 130,182,797 N/A 130,182,797 - - - - Total investments 488,083,119$ 130,182,797 $ 40,026,350 $ 110,546,902 $ 28,912,440 $ 178,414,630 $ S&P`s Rating as of Fiscal Year End
Custodial Credit Risk – The Custodial credit risk for deposits is the ri sk that, in the event of the failure of a depository financial institution, a government will not be able to recove r deposits or will not be able to recover collateral securities that are in the possession of a third part y. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in th e possession of the third party. At June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
58 Note 3 – Cash and Investments (Continued)
C. Risk Disclosures (Continued)
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, 2025, no investment exceeded 5% of total investments.
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.
D. Fair Value Measurement
At June 30, 2025, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2025:
Quoted Process in
Active Markets Significant Other
for Identical Observable
Assets Inputs
Investment Type (Level 1) (Level 2) Uncategorized Total U.S. Treasury Obligations 8,204,663 $ - $ - $ 8,204,663$ U.S. Agency Securities - 39,404,867 - 39,404,867 Commercial Paper - 21,526,945 - 21,526,945 Negotiable Certificates of Deposit - 621,483 - 621,483 Corporate Bonds - 109,727,734 - 109,727,734 Mone y Ma rke t Mutua l Funds - - 165,632,921 165,632,921 Local Agency Investment Fund (LAIF) - - 12,781,709 12,781,709 Held by fiscal agent:
Mone y Ma rke t Mutua l Funds - - 130,182,797 130,182,797 Total inv estments 8,204,663$ 171,281,029 $ 308,597,427 $ 488,083,119 $ Fair Value M easurement
Deposits and withdrawals related to the investments in LAIF and money market funds are valued on amortized cost, which approximates fair value. Accordingly, under the fair value hierarchy these investments are uncategorized.
Level 2 investments are based on institutional bond quotes or matrix pricing.
E. Local Agency Investment Fund (“LAIF”)
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $12,781,709 invested in LAIF. The fair value of the City’s portion in the pool is the same as the value of the pool shares and is reported at amortized cost.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
59 Note 3 – Cash and Investments (Continued)
F. Cash and Investments Held in OPEB Trust
The City established a trust account with the Public Ag ency Retirement Services (PARS) to hold assets that are legally restricted for use in admini stering 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 :
Investment Objective:
Strategic Ranges: 0% - 20% Cash
30% - 50% Fixed Income
50% - 70% Equity
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.
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 larg er portion of the total return.
As of June 30, 2025, the cash and investments held in OPEB Trust was in the amount of $30,472,821.
G. Cash and Investments Held in Trust
Cash and investments maintained in the trust are consider ed restricted for water and wastewater functions. As of June 30, 2025, the City had $76,616,922 of cash and investments held in trust.
H. Cash in Escrow
Cash maintained in escrow accounts are considered restri cted for specific City proj ects and other capital-related activities. As of June 30, 2025, the City had $14,927,777 of cash in escrow.
I. Cash and Investments with Fiscal Agents
Cash and investments maintained by fiscal agents are c onsidered 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 Investme nt Policy, govern investments of debt proceeds held by bond fiscal agents. Permitted investments are specified in related trust agreements and include the following:
Securities of the U.S. Government and its sponsored agencies Bankers’ Acceptances rated in the single highest classification Commercial Paper rated in the single highest classification Investments in money market funds rated in the single highest classification Municipal obligations rated Aaa/AAA or general obligations of states with ratings of at least A21A or higher by both Moody’s and S&P
Investment contracts
No maximum percentage of the related debt issue or maximum investment in one issuer is specified.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
60 Note 4 – Accounts Receivable
Accounts receivable as of June 30, 2025, including allowances for uncollectible accounts, is as follows:
Allowance
Accounts for Uncollectible Accounts
Receivable Am ounts Receivable, Net
Governmental Funds:
General Fund 11,956,380 $ (4,659,758) $ 7,296,622 $
Park Development Special Revenue Fund 68,859 - 68,859 Capital Projects Fund 33,059 - 33,059 Nonmajor Governmental Funds 3,022,637 - 3,022,637 Total Governmental Funds 15,080,935 $ (4,659,758) $ 10,421,177 $ Proprietary Funds:
Water Enterprise Fund 4,255,855 $ (809,612) $ 3,446,243 $ Wastewater Enterprise Fund 8,081,106 (689,255) 7,391,851 Nonmajor Enterprise Funds 166,047 - 166,047 Internal Service Funds 762,651 - 762,651 Total Proprietary Funds 13,265,659 $ (1,498,867) $ 11,766,792 $ Total Primary Government 28,346,594 $ (6,158,625) $ 22,187,969 $ Fiduciary Fund:
Private Purpose Trust Fund 12,338 $ (1,763) $ 10,575 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
61 Note 5 – Notes and Loans Receivable
The following is a summary of notes and loans receivables as of June 30, 2025:
Nonmajor Water Wastewater
General Governmental Enterprise Enterprise
Fund Funds Total Fund Fund Total
Loans receivable:
Ayala 210 Purchase and Construction
Loan Agreement 854,270 $ - $ 854,270$ - $ - $ - $ Housing Rehabilitation Loan - 1,809,251 1,809,251 - - - Neighborhood Stabilization Program - 414,135 414,135 - - - National Community Renaissance 2,522,477 2,522,477 - - - Letter of Credit - 29,926 29,926 - - - Concessionaire Agreement - - - 292,598 369,259 661,857 Total 854,270 4,775,789 5,630,059 292,598 369,259 661,857 Allowance for uncollectible (854,270) (414,135) (1,268,405) - - - Loans receivable, net - $ 4,361,654$ 4,361,654 $ 292,598 $ 369,259 $ 661,857 $ Notes receiv able:
Citrus Grove Project Phase I - $ 8,220,800$ 8,220,800 $ - $ - $ - $ Citrus Grove Project Phase II - 8,626,713 8,626,713 - - - Telacu Housing-Rialto I - 751,408 751,408 - - - Telacu Housing-Rialto II - 1,707,241 1,707,241 - - - Telacu Housing-Rialto III - 3,060,010 3,060,010 - - - Rialto Family Housing I - 10,386,818 10,386,818 - - - Rialto Family Housing II - 2,719,891 2,719,891 - - - Rialto Family Housing III - 1,568,483 1,568,483 - - - Total - 37,041,364 37,041,364 - - - Allowance for uncollectible - (37,041,364) (37,041,364) - - - Notes receivable, net - $ - $ - $ - $ - $ - $ Total loans and notes receivable, net - $ 4,361,654$ 4,361,654 $ 292,598 $ 369,259 $ 661,857 $ Proprietary FundsGovernmental Funds
Ayala 210 Purchase and Construction Loan Agreement
The City entered into an agreement on April 24, 2018 w ith Ayala & 210 Partners, LLC to sell six parcels of undeveloped land and enter into a construction loan agreemen t to develop the property. The note to secure the deeds to the parcels has a base interest rate of 4.0% and the c onstruction loan has a base interest rate of 6.0%, with the payments being consolidated into one schedule. The outst anding balance as of June 30, 2025 was $854,270 offset by an allowance of $854,270.
Housing Rehabilitation Loan Program
The City administers a housing rehabilitation loan progr am, which provides money to certain homeowners to rehabilitate their homes. There are certain criteria which th e 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 loan s receivable and due to other governments in the governmental funds. The amount of outstanding rehabilitation loan s in the Nonmajor Governmental Funds (Cal Home Special Revenue Fund and Housing Authority Special Revenue Fund) at June 30, 2025 was $1,809,251.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
62 Note 5 – Notes and Loans Receivable (Continued)
Neighborhood Stabilization Loan Program
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 de termined by the U.S. Department of Housing and Urban Development (HUD). If any of the events d escribed in the loan agreem ent, 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 out standing balance in the Nonmajor Governmental Funds (Neighborhood Stabilization Program Special Revenue Fund, Neighborhood Stabilization Program - Program Income Special Revenue Fund, and the Local Drainage Fund) as of June 30, 2025, was $414,135 (offset by an allowance of uncollectible of $414,135).
National Community Renaissance
The Rialto Housing Authority entered in to a loan agreement with Rialto Me trolink South Housing Partners, L.P. to provide partial financing for the construc tion of an affordable housing project within the City to provide Affordable Housing within the Rialto City Limits, the Housing Authority provided partial financing for the construction of this project. Funds are to be repaid out of 50% of residual receipts of the proj ect to the Housing Authority with all amounts unpaid due to be paid at the expiration of the Disposition and Development Agreement. The loan bears interest at a rate of 0.25%. As of June 30, 2025, the outstanding balance of the receivable was $2,522,477.
Letter of Credit
A letter of credit of $29,926 is established in the Special Deposits Special Revenue Fund.
Concessionaire Agreement
The Rialto Utility Authority entered in to 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 inve ntory and assets on hand to the Concessionaire for use in providing such utility services. At the end of the 30-year agreement, the Concessionair e must return assets in an equivalent amount of $292,598 for wa ter utilities and $369,259 for wastewater utilities. See Note 20 for additional information.
Citrus Grove Project Phase I
The Housing Authority provided development funding to In land Valley Housing Partners L.P. in accordance with an Affordable Housing Agreement by and between the Aut hority 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 ge nerated by the Project at 4.82% interest rate per annum.
The residual receipts were defined as 50% of the net inco me after all operating expen ses 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 prin cipal and accrued interest. The outstanding balance as of June 30, 2025, was $8,220,800. An allo wance of $8,220,800 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
63 Note 5 – Notes and Loans Receivable (Continued)
Citrus Grove Project Phase II
The Housing Authority provided development funding to Citr us 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 promisso ry notes and the Agreement, the Authority has advanced funding at 0% interest rate. The principal and accrued inter est 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, 2025, 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.
Telacu Housing-Rialto Phase I
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 Co mmunity 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 de fined as 50% of the net income after all operating expenses and superior debt service payments are ma de. Based upon a financial analysis of the Project performed by a financial consultant, the repayment is expected to be minimal relative to the total prin cipal 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 exec uted 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, 2025, was $751,408. An allowance of $751,408 has been recorded in the financial statements because there is no estimate for tim ing of cash collections on the note. Revenue will be recognized on a cash basis.
Telacu Housing-Rialto Phase II
The Housing Authority provided development funding to Telacu in accordance with an Affordable Housing Agreement by and between the Authority and Telacu Housing-Ri alto II, Inc., in connection with the development of a 75-unit affordable senior housing rental complex project on th e south side of Foothill Boulevard and just west of Cactus Avenue (“Telacu 2”) project. Pursuant to a promi ssory 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 prin cipal and accrued interest. The outstanding balance as of June 30, 2025, was $1,707,241. An allo wance 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
64 Note 5 – Notes and Loans Receivable (Continued)
Telacu Housing-Rialto Phase III
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 promi ssory 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 prin cipal and accrued interest. The outstanding balance as of June 30, 2025, was $3,060,010. An allo wance 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.
Rialto Family Housing I
The Housing Authority provided development funding to Ria lto 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 pr oject. Pursuant to a promissory note and the Agreement, the advance funding in the amount of $7,385,974 is to be re paid from the residual receipts generated by the Project.
The residual receipts were defined as 50% of the net inco me after all operating expen ses 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, 2025, was $10,386,818. An allowance of $10,386,818 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.
Rialto Family Housing II
The Housing Authority provided developm ent funding to Rialto Family Housing Partners II, L.P. in accordance with an Affordable Housing Agreement by and between the Author ity 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 am ount 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 to tal principal and accrued interest. The outstanding balance including unpaid accrued interest as of June 30, 2025, was $2,719,891. An allowan ce of $2,719,891 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.
Rialto Family Housing III
The Housing Authority provided developm ent funding to Rialto Family Housing Partners II, L.P. in accordance with an Affordable Housing Agreement by and between the Author ity 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 am ount 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 to tal principal and accrued interest. The outstanding balance including unpaid accrued interest as of June 30, 2025, was $1,568,483. An allowan ce of $1,568,483 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
65 Note 6 – Lease Receivable
As of June 30, 2025, the City had 14 active leases with remaining lease terms ranging from 1 to 27 years. The leases have receipts that range from $22,602 to $76,896 and inter est rates that range from 0.5603% to 3.1930%. As of June 30, 2025, the total combined value of the lease receiva ble is $4,433,642, the total combined value of the short- term lease receivable is $349,890, and the combined value of the deferred inflow of resources is $4,264,666.
Future receivable principal and interest payments expected to be received through maturity are as follows:
Year Ending June 30, Principal Interest Total
2026 349,890 $ 83,273 $ 433,163 $
2027 339,625 77,003 416,628
2028 349,014 70,533 419,547
2029 330,972 63,901 394,873
2030 231,873 57,929 289,802
2031-2035 849,020 223,685 1,072,705 2036-2040 713,715 153,886 867,601 2041-2045 705,403 87,217 792,620 2046-2050 515,489 29,511 545,000 2051-2052 48,641 1,357 49,998 Total 4,433,642$ 848,295 $ 5,281,937 $
Governmental Activities
Note 7 – Interfund Transactions
A. Advances to/From Other Funds
At June 30, 2025, the City had the following advances:
Governmental Proprietary
Fund Fund
Wastewater
Enterprise
Advances from Other Funds General Fund Fund Total
Governmental Fund:
Park Development Special Revenue Fund 10,892,605$ - $ 10,892,605$ Proprietary Fund:
Water Enterprise Fund 6,600,000 3,000,000 9,600,000 17,492,605$ 3,000,000 $ 20,492,605 $
Advances to Other Funds
On February 12, 2019, the General Fund loaned $17,499, 195 to the Park Development Special Revenue Fund to fund the Frisbie Park Expansion Project. The City has waived charging interest on this loan. As of June 30, 2025, $6,606,590 of the loan has been paid, and the remaining balance of $10,892,605 will be paid from future revenues in the Park Development Special Revenue Fund.
The General Fund advanced $6, 600,000 to the Water Enterprise Fund for Perchlorate litigation related expenses.
Interest on the advance is payable if settlement proceeds are received.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
66 Note 7 – Interfund Transactions (Continued)
A. Advances to/From Other Funds (Continued)
The Wastewater Enterprise Fund loaned $4,000,000 to th e Water Enterprise Fund to cover Perchlorate litigation– related costs. The City waived the ch arging of interest on this loan. The Perchlorate lawsuit was settled in fiscal year 2012–13, and $1,000,000 of the loan had been re paid as of June 30, 2025. The remaining balance of $3,000,000 will be repaid from future revenues of the Water Enterprise Fund.
B. Due To/From Other Funds
At June 30, 2025, the City had the following interfund balances:
Police Station Nonmajor
Capital Governmental
Due From Other Funds Projects Fund Funds Total
Governmental Funds:
General Fund - $ 7,207,180$ 7,207,180 $ Capital Projects Fund 21,848,913 - 21,848,913 21,848,913$ 7,207,180 $ 29,056,093 $
Governmental Funds
Due to Other Funds
The interfund payable balances represent routine and te mporary cash flow assistance until amounts receivable from the other funds are collected to pay the amounts owed.
C. Transfers In/Transfers Out
The following schedule summarizes the City’s transfer activity for the year ended June 30, 2025:
City Nonmajor Water Wastewater
General Capital Projects Governmental Enterprise Enterprise Transfers Out Fund Fund Funds Fund Fund Total
Governmental Funds:
General Fund - $ 4,842,533$ 221,289 $ 5,000,000 $ 25,000,000 $ 35,063,822 $ City Capital Projects Fund 16,860 - - - - 16,860 Nonmajor Governmental Funds 344,913 - 900,000 - - 1,244,913 Proprietary Funds: -
Water Enterprise Fund 11,497 - - - - 11,497 Wastewater Enterprise Fund 12,073 - - - - 12,073 General Liability Internal
Service Fund - 3,450,000 - - - 3,450,000 Total 385,343$ 8,292,533 $ 1,121,289 $ 5,000,000 $ 25,000,000 $ 39,799,165 $ Transfers In
Proprietary FundsGovernmental Funds
a) The General Fund transferred $4,842,533 to the City Capital Projects Fund to fund capital improvement projects; $221,289 to Nonmajor Governmental Funds to cover ope rating expenses for Fire Ground Emergency Transportation, grant-re lated expenditures for LEAP and SB2, and a subsidy to the Street Lighting District; $25,000,000 to the Wastewater Enterprise Fund to fund various one-time capital expenditures; and a $5,000,000 subsidy to the Water Enterprise Fund.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
67 Note 7 – Interfund Transactions (Continued)
C. Transfers In/Transfers Out (Continued)
b) The City Capital Projects Fund transferred $16,860 to the General Fund to fund annual debt service obligations.
c) The Nonmajor Governmental Funds transferred $344,913 to the General Fund for to cover interest expenses and various operating expenses and $900,000 to other Nonmajor Governmental funds for operating subsidies. d) The Sewer Enterprise Fund transferred $12,073 to the General Fund for annual cost allocation plan allocation. e) The Water Enterprise Fund transferred 11,497 to the General Fund for annual cost allocation plan allocation. f) The General Liability Internal Service Fund transferre d 3,450,000 to the City Ca pital Projects Fund for the Public Works Administration Building Project, City’s Public Works building was damaged due to a fire.
Note 8 – Land Held for Resale
At June 30, 2025, land held for resale consisted of the following:
Funds Location / Address Amount Use of Property
Governmental Funds:
General Fund 136 South Riverside Avenue $ 30,000 Vacant property – future downtown redevelopment site North side of Santa Ana Avenue 306,820 Land contemplated for contribution for habitat conservation Various North Riverside Avenue 181,226 Improved land - currently under lease 126 South Olive Avenue 75,000 Vacant – future affordable housing development site 141 S. Riverside Avenue 126,923 Improved land - RDA office property under lease Total General Fund 719,969
Nonmajor Governmental South Orange Parcels 240,400 Vacant land – future redevelopment 140 South Oliver Avenue 30,000 Vacant land – affordable housing project 110 East Rialto Avenue 181,000 Vacant land – affordable housing project 144 South Olive Avenue 30,000 Vacant land – affordable housing project Bonnie View Drive 489,000 Vacant land – future redevelopment Total Nonmajor Governmental Funds 970,400
Total Governmental 1,690,369$
Fiduciary Fund:
Private Purpose Trust Fund Ayala/Baseline $ 1,248,095 Vacant land for future office and industrial development West Side of Cedar Avenue (Ayala Drive) 631,142 Vacant land for future office and industrial development SWC Linden & 210 Fwy (Highland) 1,527,737 Airport project - part of Area A Contract of Sale 148 South Riverside Avenue 2,040 Improved property acquired for redevelopment W Side Riverside Ave, N of Valley 3,136,320 Vacant land assembled for future retail development 1428–1432 South Riverside Avenue 318,184 Property held for future retail redevelopment 119 North Riverside Avenue 203,776 Improved land - currently under lease N Ayala Drive 350,326 Airport area land - industrial assemblage Riverside / Rialto 313,296 Vacant land – senior housing project 141 South Riverside Avenue 148,076 Improved land - currently under lease Linden Avenue n/o Airport 360,000 Airport project - part of Area A Contract of Sale E of NEC Baseline & Alder 27,916 Vacant land - industrial assemblage N Palm Avenue 3,084 Vacant land - industrial development W side of Cedar Ave (Ayala Dr) & Fitzgerald 96,000 Vacant land Industrial assemblage 234 South Orange 56,000 Improved land - future redevelopment 238 S. Orange Avenue 90,423 Vacant land - for future redevelopment 274 / 290 W. Jackson St 42,360 Vacant land - future project in West Jackson Street 1428–1432 South Riverside Avenue 138,325 Vacant land/two homes - retail assemblage 1485 S Willow 1,792,710 Industrial building - retail redevelopment 224 South Orange 56,000 Vacant land - future redevelopment W side Cedar Ave (Ayala Dr), N of Baseline 698,366 Vacant land - industrial assemblage 237 S Palm 64,669 Vacant land - future redevelopment Airport Leasehold Acquisition 8,385,010 Improved land - airport redevelopment Total Private Purpose Trust Fund 19,689,855
Total Fiduciary Fund 19,689,855$
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
68 Note 9 – Capital Assets
A. Governmental Activities
The summary of changes in governmental activities capital assets for the year ended June 30, 2025 is as follows:
Balance
July 1, 2024 Balance
(As Restated) Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:
Land 71,016,642 $ 1,009,684 $ - $ - $ 72,026,326$ Land easements 7,306,780 - - - 7,306,780 Construction in process 90,046,077 65,866,909 (776,557) (33,428,851) 121,707,578 Total capital assets, not being depreciated 168,369,499 66,876,593 (776,557) (33,428,851) 201,040,684 Capital assets, being depreciated:
Buildings and other structures 31,626,553 195,323 - 818,012 32,639,888 Improvements other than buildings 94,883,964 - - 9,517,031 104,400,995 M achinery and equipment 7,042,964 123,756 - - 7,166,720 Vehicles 18,454,712 4,555,025 (435,553) - 22,574,184 Office furniture, computers, and equipment 4,792,131 1,147,975 - - 5,940,106 Infrastructure 248,430,769 1,475,157 - 23,093,808 272,999,734 Total capital assets, being depreciated 405,231,093 7,497,236 (435,553) 33,428,851 445,721,627 Less accumulated depreciation for:
Buildings and other structures (15,917,328) (602,308) - - (16,519,636) Improvements other than buildings (39,423,291) (3,903,578) - - (43,326,869) Machinery and equipment (5,281,026) (481,313) - - (5,762,339) Vehicles (14,629,433) (1,515,691) 435,553 - (15,709,571) Office furniture, computers, and equipment (3,864,427) (273,680) - - (4,138,107) Infrastructure (137,662,820) (12,794,122) - - (150,456,942) Total accumulated depreciation (216,778,325) (19,570,692) 435,553 - (235,913,464) Total capital assets, being
depreciated, net 188,452,768 (12,073,456) - 33,428,851 209,808,163 Intangible capital assets, being amortized:
Right-to-use lease assets 240,339 - (240,339) - - Right-to-use subscription assets 3,603,599 1,097,700 4,701,299 Total intangible capital assets, net 3,843,938 1,097,700 (240,339) - 4,701,299 Less accumulated amortization for:
Right-to-use lease assets (180,254) (60,085) 240,339 - Right-to-use subscription assets (1,215,958) (836,452) (2,052,410) Total accumulated amortization (1,396,212) (896,537) 240,339 - (2,052,410) Total intangible capital assets,
being amortized, net 2,447,726 201,163 - - 2,648,889 Total capital assets, net 359,269,993$ 55,004,300 $ (776,557) $ - $ 413,497,736$
Depreciation and amortization expense was charged to functions/programs of governmental activities in the Statement of Activities as follows:
General government 13,655,708 $
Public safety 4,726,738
Community development 2,084,783
Total 20,467,229$
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
69 Note 9 – Capital Assets (Continued)
B. Business-Type Activities
The summary of changes in business-type activities capital assets for the year ended June 30, 2025 is as follows:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not bei ng de preciate d:
Land 1,767,770 $ - $ - $ - $ 1,767,770$ Construction in progress 44,153,505 1,044,046 - - 45,197,551 Total capital assets, not being depreciated 45,921,275 1,044,046 - - 46,965,321 Capital assets, being depreciated:
Land improvements 10,932,826 - - - 10,932,826 Buildings and structures 2,336,314 - - - 2,336,314 Machinery and equipment 150,205,268 72,923 - - 150,278,191 Total capi tal assets, be ing de pre ci ate d 163,474,408 72,923 - - 163,547,331 Less accumul ate d depre ciation for:
Land improvements (6,797,049) (472,979) - - (7,270,028) Buildings and structures (2,151,504) (18,429) - - (2,169,933) Machinery and equipment (81,578,722) (2,820,117) - - (84,398,839) Total accumulated depreciation (90,527,275) (3,311,525) - - (93,838,800) Total capital assets, being
de pre ci ate d, net 72,947,133 (3,238,602) - - 69,708,531 Total capital assets, net 118,868,408$ (2,194,556) $ - $ - $ 116,673,852$
Depreciation expense was charged in the following business-type activities of the primary government:
Water 940,042 $
Wastewater 2,371,483
Total 3,311,525$
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
70 Note 10 – Long-Term Liabilities
A. Governmental Activities
A summary of changes in long-term lia bilities for governmental act ivities for the year ended June 30, 2025 is as follows:
Balance
July 1, 2024 Balance Due within Due in M ore
(As Restated) Additions Deletions June 30, 2025 One Year Than One Year Gove rnme ntal Acti vi ti e s:
Public Borrowings:
Bonds Payable, net:
2023 Lease Revenue Bond, Series A (Police Station Project) 56,525,000$ - $ - $ 56,525,000$ - $ 56,525,000$ Unamortized premium 4,874,232 - (260,875) 4,613,357 - 4,613,357 Direct Borrowings:
Finance Purchase:
Holman Capital Energy Retrofit Project - Santa Maria 1,411,195 - (157,978) 1,253,217 160,258 1,092,959 Holman Capital Energy Conservation Project - Megabank 5,766,350 - (228,534) 5,537,816 253,513 5,284,303 Street Light Acquisition and Conversion
Project - Banner Bank 2,500,590 - (224,570) 2,276,020 232,973 2,043,047 Notes Payable:
HUD Sec 108 1,706,000 - (177,000) 1,529,000 93,000 1,436,000 Lease Liability 63,286 - (63,286) - - Subscription Liability 2,064,594 1,097,700 (761,744) 2,400,550 778,015 1,622,535 Compensated Absences* 11,952,094 546,792 - 12,498,886 2,249,800 10,249,086 Claims Payable 29,871,963 8,622,645 (7,684,493) 30,810,115 6,165,617 24,644,498 Total Governmental Activities 116,735,304$ 10,267,137 $ (9,558,480) $ 117,443,961 $ 9,933,176 $ 107,510,785 $
Lease Revenue Bonds, 2023 Series A (Police Station Project)
On December 12, 2023, the Financing Authority entere d into a bond purchase agreem ent with Citigroup Global Markets Inc. for the issuance of $56,525,000 Lease Reve nue Bonds, 2023 Series A (Police Station Project). The bonds were issued at a premium of $4,874,232, resulti ng in total sources of funds of $61,399,232. After payment of the underwriter’s discount of $325,019, net proceeds totaled $61,074,213. Proceeds of the bonds were used to finance the acquisition, construction, and improvement of a new police st ation facility, to fund a portion of interest on the bonds, and to pay costs of issuance. Inte rest on the bonds is payable semiannually on June 1 and December 1 at fixed interest rates ranging from 5.00% to 5.25%. The bonds mature through June 1, 2053.
The bonds are special limited obligations of the Authority and are payable solely from revenues pledged under the indenture, which consist prim arily of base rental payments to be made by the City pursuant to a lease agreement.
As security for the bonds, the Authority assigned to the Tr ustee certain of its rights under the lease agreement, including the right to receive base rental payments. The C ity’s obligation to make rental payments is subject to annual appropriation by the City Council.
At June 30, 2025, the principal amount outstanding on the bonds was $56,525,000.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
71 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Revenue Bonds, 2023 Series A (Police Station Project) (Continued)
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 - $ 2,868,175$ 2,868,175 $
2027 1,030,000 2,868,175 3,898,175
2028 1,085,000 2,816,675 3,901,675
2029 1,140,000 2,762,425 3,902,425
2030 1,195,000 2,705,425 3,900,425
2031-2035 6,940,000 12,568,125 19,508,125
2036-2040 8,845,000 10,652,125 19,497,125
2041-2045 11,295,000 8,207,625 19,502,625
2046-2050 14,425,000 5,079,325 19,504,325
2051-2053 10,570,000 1,128,750 11,698,750
Total 56,525,000$ 51,656,825 $ 108,181,825 $
Holman Capital Energy Retrofit Project – Santa Maria
On May 31, 2017, the City entered into an equipment fi nance-purchase agreement in the amount of $2,455,000 to acquire energy efficient equipment incl uding HVAC, lighting retrofits and contro ls to be repaid over 15 years.
The agreement bears interest at a rate of 3.6% multiplie d 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, 2025 was $1,253,217.
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 160,258$ 48,540 $ 208,798 $
2027 164,850 42,085 206,935
2028 168,297 35,456 203,753
2029 174,984 28,658 203,642
2030 184,189 21,568 205,757
2031-2032 400,639 20,264 420,903
Total 1,253,217$ 196,571 $ 1,449,788 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
72 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Holman Capital Energy Retrofit Project – Megabank
On November 30, 2017, the City entered into an e quipment finance-purchase agreement by issuance of Clean Renewable Energy Bonds (CREBS) in the amount of $6,353, 963 to acquire solar pane ls 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 mu ltiplied by (b) one divided by the sum of one minus the maximum federal corporate tax rates as of the commencem ent date. The effective date of any change in the margin rate factor shall be effective date of the decr ease or increase in the maximum federal corporate tax rate resulting in such change. The obligation is secured by a firs t 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, 2025 was $5,537,816.
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 253,513$ 187,317 $ 440,830 $
2027 280,038 178,425 458,463
2028 308,189 168,612 476,801
2029 338,051 157,822 495,873
2030 369,712 145,996 515,708
2031-2035 2,396,607 511,460 2,908,067
2036-2038 1,591,706 83,644 1,675,350
Total 5,537,816$ 1,433,276 $ 6,971,092 $
Street Light Acquisition and Conversion Project - Banner Bank
On October 31, 2018, the City entered into an equi pment 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 in terest on the equipment. In the event of default, any amount outstanding could be declared immediately due a nd retake possession of the property. The total principal outstanding at June 30, 2025 was $2,276,020.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
73 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Street Light Acquisition and Conversion Project - Banner Bank (Continued)
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 232,973$ 80,938 $ 313,911 $
2027 241,555 72,356 313,911
2028 250,373 63,459 313,832
2029 259,596 54,394 313,990
2030 269,234 44,676 313,910
2031-2033 1,022,289 75,864 1,098,153
Total 2,276,020$ 391,688 $ 2,667,708 $
HUD Section 108
On March 28, 2019, the City’s Public Financing Authority entered into a Section 108 lo an agreement with the of U.S. Department Housing and Urban Development (HUD) 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 Gr ant funds. In the event of default, the loan will continue to be paid through Grant funds and no assets have been collateralized ag ainst the loan. The total principal outstanding at June 30, 2025 was $1,529,000.
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 93,000 $ 50,437 $ 143,437 $
2027 96,000 47,791 143,791
2028 99,000 44,998 143,998
2029 102,000 42,055 144,055
2030 105,000 38,860 143,860
2031-2035 570,000 139,949 709,949
2036-2039 464,000 37,180 501,180
Total 1,529,000$ 401,270 $ 1,930,270 $
Lease Liability
As of June 30, 2025 the City has entered into a 48 month lease agreement as lessee for the lease of a building. As of June 30, 2025, the total value of the lease liability was $0. The lease had an interest rate of 0.5603%. The right- to-use asset at June 30, 2025 of $240,339 has been fully amortized, as stated in Note 9.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
74 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Subscription Liabilities
The City has entered into a subscrip tion agreements with various vendors fo r software. The subscriptions have payments that range from $15,000 to $404,268 and interest rates that range from 2.1570% to 2.9010%. As of June 30, 2025, the total combined value of the subscripti on liability is $2,400,550, and the total combined value of the short-term subscription liab ility is $778,015. The combined value of the right to use asset, as of June 30, 2025 of $4,701,299 with accu mulated amortization of $2,052,410 is included within the governmental activities capital assets in Note 9.
The future debt service requirements as of June 30, 2025 are as follows:
Year Ending
June 30, Principal Interest Total
2026 778,015$ 52,973 $ 830,988 $
2027 706,318 39,479 745,797
2028 333,397 23,132 356,529
2029 351,745 14,785 366,530
2030 231,075 5,953 237,028
Total 2,400,550$ 136,322 $ 2,536,872 $
Compensated Absences
The City accounts for compensated absences (unpaid vacation, holiday, compensated time off, and sick leave) for all City employees. The balance for accrued compensat ed absences at June 30, 2025 for the governmental activities is $12,498,886.
Claims and Judgments
Refer to Note 13 for more information on claims and judgments.
B. Business-Type Activities
Summary of changes in long-term debts for the year e nded June 30, 2025 for the bus iness-type activities are as follows:
Balance
July 1, 2024 Balance Due within Due in More
(As Restated) Additions Deletions June 30, 2025 One Year Than One Year Business-type Activities:
Debt with Concessionaire:
Water 30,153,274 $ - $ (1,002,346)$ 29,150,928 $ 1,065,427 $ 28,085,501 $ Wastewater 112,056,761 - (2,596,506) 109,460,255 2,830,201 106,630,054 Total debt with concessionaire 142,210,035 - (3,598,852) 138,611,183 3,895,628 134,715,555 Direct Borrowings:
Notes payable 383,555 - - 383,555 - 383,555 Compensated Absences* 41,957 19,448 - 61,405 11,053 50,352 Total business-type activities 142,635,547$ 19,448 $ (3,598,852)$ 139,056,143 $ 3,906,681 $ 135,149,462 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
75 Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Concessionaire Agreements
The Rialto Utility Authority entered in to an agreement on March 27, 2012 wi th 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 f unds 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 agreem ent. 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 C oncessionaire. See Note 20 for further information regarding the agreement. The total principal outstanding at June 30, 2025 was $138,611,181.
The City has pledged future water customer revenues, net of specified operating e xpenses, to repay $38,249,443 in collateralized debt issued in No vember 2012. Proceeds from the collate ralized debt provided financing as shown in the table on the next page. The bonds are pa yable solely from water customer net revenues and are payable through November 2042. The total principal and in terest remaining to be paid bonds is $43,500,000 as of June 30, 2025. Principal and interest paid for the cu rrent year and total customer net revenues (expenses) (operating income plus depreciation) available to pay the principal and interest were $1,002,346 and $1,897,654, respectively.
The annual debt service requirements to maturity for the Water Enterprise Fund are as follows:
Year Ending
June 30, Principal Interest Total
2026 1,065,427$ 1,834,573 $ 2,900,000 $
2027 1,132,478 1,767,522 2,900,000
2028 1,203,749 1,696,251 2,900,000
2026 1,279,505 1,620,495 2,900,000
2030 1,360,029 1,539,971 2,900,000
2031-2035 8,196,965 6,303,035 14,500,000
2036-2040 11,122,023 3,377,977 14,500,000
2041-2043 3,790,752 309,638 4,100,390
Total 29,150,928$ 18,449,462 $ 43,500,000 $
The City has pledged future wastewater customer re venues, net of specified operating expenses, to repay $130,472,604 in wastewater collateraliz ed 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 princi pal and interest remaining to be paid on the bonds is $220,742,938 as of June 30, 2025. Prin cipal and interest paid for the current year and total customer net revenues (operating income less depreciation) available to pay the principal and interest were $2,596,507 and $10,085,493, respectively.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
76 Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Concessionaire Agreements (Continued)
The annual debt service requirements to maturity for the Wastewater Enterprise Fund are as follows:
Year Ending
June 30, Principal Interest Total
2026 2,830,201$ 9,851,799 $ 12,682,000 $
2027 3,084,929 9,597,071 12,682,000
2028 3,362,583 9,319,417 12,682,000
2026 3,665,227 9,016,773 12,682,000
2030 3,995,110 8,686,890 12,682,000
2031-2035 26,061,701 37,348,299 63,410,000
2036-2040 40,099,789 23,310,211 63,410,000
2041-2042 26,360,715 4,252,225 30,612,940
Total 109,460,255$ 111,382,685 $ 220,842,940 $
As part of the concession agreement, the Concessiona ire provided funds to the Authority for the following purposes:
Wastewater Water
Enterprise Enterprise
Funds Fund Fund 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 Cost of financing Total 130,472,604$ 38,249,443 $
*The City has received $3,235,154 of these proceed s 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 a ll 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 ar e 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
77 Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Notes Payable
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, 2025 was $383,555.
Compensated Absences
The City accounts for compensated absences (unpaid vacation, holiday, compensated time off, and sick leave) for all City employees. The balance for accrued compensat ed absences at June 30, 2025 for the business-type activities is $61,405.
Note 11 – Defined Benefit Pension Plans
A. General Information about the Pension Plans
Plan Descriptions
The City contributes to the California Public Employ ees Retirement System (PERS); to both a miscellaneous agent multiple-employer and safety ag ent multiple-employer defined bene fit pension plans. PERS provides retirement and disability benefits, annual cost-of-living ad justments and death benefits to plan members and beneficiaries. PERS acts as a common investment and admi nistrative agent for participating public entities within the State of California. Benefit provisions and all othe r requirements are established by state statute and City ordinance. Copies of CalPERS’ annual financial report may be obtained from CalPERS’ website at www.calpers.gov under Forms and Publications.
Benefits Provided
All qualified permanent and probationary non-safety (police a nd fire) employees are eligible to participate in the City’s Miscellaneous Plan, an agent multiple-employe r 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 provis ions, assumptions and memb ership information that can be found on the CalPERS website.
CalPERS provides service retirement and disability benefits, a nnual cost of living adjustments and death benefits to plan members, who must be public employees and be neficiaries. 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 memb ers are eligible for non-duty disability benefits after 5 years of service.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
78 Note 11 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plans (Continued)
Benefits Provided (Continued)
The death benefit is one of the following: the Basic D eath Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can recei ve a special death benefit if the member dies while actively employed and the death is job-related. Fire member s may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if th e member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjust ments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at the measurement date, are summarized as follows:
Classic* PEPRA
Hire date
Prior to
January 1, 2013
Prior to
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.000% 8.250%
Required contribution during measurement period 12.620% 12.620% Miscellaneous Plans
Classic* PEPRA Classic* PEPRA
Hire date
Prior to
July 1, 2012
On or after
January 1, 2013
Prior to
July 1, 2012
On or after
January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 52 - 67 50 52
Monthly benefits, as a % of eligible compensation 3%, 50+ yrs 2%-2.7%, 50 yrs - 57+ yrs,
3%, 50+ yrs 2%-2.7%, 50 yrs
-
57+ yrs,
Required employee contribution rates 9.000% 14.750% 9.000% 14.750% Required contribution during measurement period 26.440% 26.440% 26.440% 26.440% Safety Plans
Police Fire
Employees Covered
At the June 30, 2023, valuation date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Plans Plans
Active employees 213 148
Transferred and terminated employees 384 119
Retired employees and beneficiaries 447 313
Tota
l 1044 580
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
79 Note 11 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plans (Continued)
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 determ ined 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 th e 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 requ irements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2025, the contributions made were in the amount of $7,014,510 and $13,774,335 for the miscellaneous and safety plans, respectively.
B. Net Pension Liability
The City's net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 202 4 using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update d procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability.
The June 30, 2023 valua tions were rolled forward to determine the J une 30, 2024 total pension liabilities, based on the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Price Inflation Salary Increases
Salary Increases
Morta l i t
y Rate Table1
Post Retirement Benefit Increase
Entry Ag e Actuarial Cost Method
6.90%
2.30%
Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds.
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies,
2.30% thereafter
(1) The mortality table used was developed based on Ca lPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions . Mortality rates incorporate full 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 2021 experience study report from November 2021 that can be found on the CalPERS website.
Change of Assumptions
There were no assumption changes in 2024.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
80 Note 11 – Defined Benefit Pension Plans (Continued)
B. Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension lia bility 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 w ill 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 memb ers. Therefore, the long- term expected rate of return on plan investments was applied to all periods of proj ected benefit payments to determine the total pension liability.
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 year s 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 Class1 Asset 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 equity 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
2 Figures are based on the 2021 Asset Liability Management Study. 1 An expected inflation of 2.30% used for this period.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
81 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous plan.
Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 167,993,346 $ 116,687,768 $ 51,305,578 $ Changes Recognized for the M easurement Period:
Service Cost 3,211,038 - 3,211,038 Interest on the total pension liability 11,550,211 - 11,550,211 Differences between Expected and Actual Experience 2,360,495 - 2,360,495 Contributions - Employer - 5,847,651 (5,847,651) Contributions - Employees - 1,652,862 (1,652,862) Net Investment Income - 11,122,879 (11,122,879) Benefit Payments, including Refunds of
Employee Contributions (9,129,994) (9,129,994) - Administrative Expense - (94,949) 94,949 Net Changes during July 1, 2023 to June 30, 2024 7,991,750 9,398,449 (1,406,699) Balance at June 30, 2024 (Measurement Date) 175,985,096$ 126,086,217 $ 49,898,879 $ Miscellaneous Plan
Increase (Decrease)
The following table shows the changes in net pension liability recognized over the measurement period for the Safety plan:
Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Valuation Date) 372,381,629 $ 268,761,763 $ 103,619,866 $ Changes Recognized for the M easurement Period:
Service Cost 7,025,484 - 7,025,484 Interest on the total pension liability 26,322,157 - 26,322,157 Differences between Expected and Actual Experience 15,148,891 - 15,148,891 Contributions - Employer - 11,156,175 (11,156,175) Contributions - Employees - 3,929,548 (3,929,548) Net Investment Income - 25,656,773 (25,656,773) Benefit Payments, including Refunds of
Employee Contributions (19,125,411) (19,125,411) - Administrative Expense - (218,692) 218,692 Net Changes during July 1, 2023 to June 30, 2024 29,371,121 21,398,393 7,972,728 Balance at June 30, 2024 (Measurement Date) 401,752,750$ 290,160,156 $ 111,592,594 $ Safety Plan
Increase (Decrease)
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
82 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pensio n liability of the Plans as of the m easurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percen t) or 1 percentage-point higher (7.9 percent) than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous Plan 73,993,385$ 49,898,879 $ 30,287,063 $ Safety P lan 169,511,289$ 111,592,594 $ 64,612,041 $ Plan's Net Pension L iability/(Asset)
Pension Plan Fiduciary Net Position
Detailed information about the plans’ fiduciary net positions are available in the separately issued CalPERS financial reports.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2025, the City recogni zed pension expense in the amounts of $8,489,930 and $21,564,354 for the Miscellaneous Plan and Safety Plan, respectively.
As of measurement date of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions subsequent to measurement date 7,014,510$ - $ Changes of assumptions - -
Difference between expected and actual experience 1,860,729 - Net difference between projected and actual earning
on pension plan investments 1,811,604 -
Total Miscellaneous Plan 10,686,843$ - $
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions subsequent to measurement date 13,774,335$ - $ Changes of assumptions 593,427 -
Difference between expected and actual experience 14,826,886 (94,306) Net difference between projected and actual earning
on pension plan investments 4,003,477 -
Total Miscellaneous Plan 33,198,125$ (94,306) $
Safety Plan
Miscellaneous Plan
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
83 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in Net Pension Liability (Continued)
The expected average remaining service lifetime (“EAR SL”) for the Miscellaneous and Safety Plans for the measurement period ending June 30, 2024, are 2.5 years and 3.3 years respectively, which were obtained by dividing the total service years of 2,589 and 1,886 (the sums of remaining service lifetimes of the active employees) by 1,044 and 580 (the total numbers of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0 in both plans. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
$7,014,510 and $13,774,335 re ported as deferred outflows of resources related to pensions for Miscellaneous Plan and Safety Plan, respectively, resulting from the City ’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2026.
Other amounts reported as deferred outf lows and deferred inflows of reso urces related to pensions will be recognized in the future pension expense as follows:
Deferred Outflows/ Deferred Outflows/
(Inflows) (Inflows)
Measurement of Resources of Resources
Period Miscellaneous Safety
Ending June 30 Plan Plan
2025 1,319,947$ 7,981,430 $
2026 3,459,677 12,582,224
2027 (478,235) 219,637
2028 (629,056) (1,453,807)
2029 - -
Thereafter - -
3,672,333$ 19,329,484 $
Note 12 – Other Postemployment Benefits (“OPEB”)
A. General Information about the OPEB Plan
Plan Description
The City provides postemployment healthcare benefits through the California Public Employees’ Retirement System (CalPERS) healthcare program entitled Public Em ployees’ Medical and Hospital Care Act (PEMHCA), a single employer defined benefit plan, to eligible employ ees and any qualified family members under the authority of a Memorandum of Understanding with the employee barg aining 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
84 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
A. General Information about the OPEB Plan (Continued)
Benefits Provided
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 C ity’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 discontinue d. 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 fo llows: $279.25 for single, $558.49 for two-party, and $726.04 for family. In addition, the City will no t contribute less than the PEMHCA minimum employer contribution of $157 and $158 for 2024 and 2025, respectively. Insura nce provided by the City will be supplemental to Medicare upon the retiree reaching the age of 65.
Plan Membership
At June 30, 2024 valuation date, membership consisted of the following:
Active members 402
Inactive members currently receiving benefits 243
Inactive members entitled to but not yet receiving benefits - 645
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 expe nses. 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, 2025, th e City made employer contributions of $2,367,420 and $432,646 in implied subsidy benefit payments.
B. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2025 and the total OPEB Liability used to calculate the net OPEB liability was determined by an actuarial va luation as of June 30, 2024. Standard actuarial update procedures were used to project/discount from valuation to measurement dates.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
85 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
B. Net OPEB Liability (Continued)
Significant Actuarial Assumptions Used for Total OPEB Liability
The total OPEB liability, measured as of June 30, 2 024, was determined using the following actuarial assumptions:
Actuarial Assumptions:
Discount Rate
Investment Rate of Return
Inflation 2.50% per annum
Salary Increases
Morta l i ty
Healthcare Cost Trend Rates
5.88%, based on the PARS Moderate investment policy net of non- embedded fees.
3.00% per annum
Pre-Medicare - 7.74% in 2025, trending down to 3.94% by 2076.
Post-Medicare - 5.10% in 2025, trending down to 3.94% by 2076.
5.75% per annum as of June 30, 2024
Pre-Retirement: CalPERS 2021 Mortality pre-retirement Post-Retirement: CalPERS 2021 Mortality post-retirement
Changes in Assumptions
Discount rate changed to 5.75% at June 30, 2024 from 5.70% at June 30, 2023. Healthcare trend rate assumption was updated.
Discount Rate
The discount rate used to measure the total OPEB liability is 5.75%.
Long-Term Expected Rate of Return
As of June 30, 2024, the long-term expected rates of return for each major investment class in the Plan’s portfolio are as follows:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
U.S. Large Cap Equity 28.50% 7.50%
U.S. Small Cap Equity 1.50% 8.60%
Int'l Development 11.20% 7.10%
Emerging Market 3.80% 7.40%
REITs 2.50% 7.00%
Listed Infrastructure 2.50% 6.80%
Core Bonds 44.50% 4.70%
High Yield Bonds 3.50% 6.80%
Cash 2.00% 2.70%
Total 100%
The long term (30 year) expected rate of return for PARS Moderate Fund developed by PFMAM M anaged Strategies is 6.30%, fees are estimated to be 0.42% reducing the expected long-term rate of return to 5.88%.
Assets (per asset statement) are invested in PARS Moderate Investment Fund. The above table shows the target asset allocation and expected real rate of return for each asset class provided by PARS.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
86 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
B. Net OPEB Liability (Continued)
Long-Term Expected Rate of Return (Continued)
The changes in the net OPEB liability for the plan are as follows:
Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 46,618,817 $ 26,427,021 $ 20,191,796 $ Changes recognized for the measurement period:
Service cost 1,573,948 - 1,573,948 Interest 2,680,452 - 2,680,452 Changes of Assumptions (7,875,730) - (7,875,730) Differences between Expected and Actual Experience (2,473,530) - (2,473,530) Contributions - Employer - City's Contribution - 2,367,420 (2,367,420) Contributions - Employer - Implicit Subsidy - - - Net Investment Income - 3,001,001 (3,001,001) Benefit Payments (2,367,420) (2,367,420) - Implicit Subsidy Credit - - - Administrative Expense - - - Other Miscellaneous Income/(Expense) - - - Net Changes during July 1, 2023 to June 30, 2024 (8,462,280) 3,001,001 (11,463,281) Balance at June 30, 2024 (Measurement Date) 38,156,537 $ 29,428,022 $ 8,728,515 $ Increase (Decrease)
C. Changes in Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage- point higher than the current discount rate, for the measurement period June 30, 2024:
Discount Rate Current Discount Discount Rate
- 1% (4.75%) Rate (5.75%) + 1% (6.75%)
Net OPEB liability (asset) 14,371,555 $ 8,728,515 $ 4,219,475 $ Plan's Net OPE B L iability/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-pe rcentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Healthcare Cost
Trend Rate - 1%
Healthcare Cost
Trend Rate
Healthcare Cost
Trend Rate + 1%
Net OPEB liability (asset) 3,819,771 $ 8,728,515 $ 15,011,564 $ Plan's Net OPE B L iability/(Asset)
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
87 Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
C. Changes in Net OPEB Liability (Continued)
OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB
For the measurement period ended J une 30, 2024, the City recognized OPEB credit of $(1,738,149). At June 30, 2025, The City reported de ferred outflows or resources and deferre d inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
City contributions after the measurement date 1,993,214 $ - $ Changes in assumptions 2,295,313 (17,541,104) Differences between expected and actual experience - (5,128,475) Differences between projected and actual return
on plan investments 146,845 -
Total 4,435,372 $ (22,669,579) $
OPE B Plan
The $1,993,214 reported as City contributions after the measurement date will be recognized as a reduction of the Net OPEB Liability in the year ending June 30, 2026. Other amounts reported as deferred outflows and inflows of resources will be recognized in OPEB expense as follows:
Deferred Outflows
M easurement Period /(Inflows)
Ending June 30 of Resources
2025 (4,823,536)$
2026 (4,220,907)
2027 (5,371,869)
2028 (2,349,008)
2029 (1,504,135)
Thereafter (1,957,966)
(20,227,421)$
Note 13 – Risk Management
The City is exposed to various risks of loss related to tort s; 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 cl aims of up to $500,000 and $400,000, respectively, per person per occurrence. The City h as established the General Liability and Workers’ Compensation Internal Service Funds to account for and fina nce uninsured risks of loss related to general liabilities and workers’ compensation claims, respectively. Liabilities are accrued when incurred, whether or not reported.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
88 Note 13 – Risk Management (Continued)
The City is also a member of the Public Risk Innovation, Solutions, and Management (“PRISM”) for general liability, a public entity risk pool consisting of a consortium of citi es in California. PRISM was established to pool resources, share risks, purchase excess insu rance and share costs for professional risk management and claims administration.
General Liability claims exceeding the self- insured rete ntion (“SIR”) of $500,000 are covered by PRISM up to a maximum of $25,000,000 on an annual aggregate basis. The City is not a member of a pool for workers’ compensation. Workers’ Compensation claims exceeding the City’s $400,000 SIR are covered by PRISM up to statutory limits.
The City continues to carry commercial insurance for all othe r risks of loss, including employee health, property, fire, water, boiler and machinery insurance. Settled claims resulting from these risks have not exceeded commercial insurance covered in any of the past three fiscal years. In addition, there has not been a significant reduction in insurance coverage during the year.
All Funds of the City participate in the risk management program and make payments to the respective Internal Service Fund based on estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophic losses. Claims liabilities are reported when it is probable that a loss has occurred, and the amount can be reasonably estimated. Claims liabilities are calculated considering the effects of inflation and recent claim settlement awards, including the frequency and amount of payouts.
Changes in the balance of claims liabilities in the past three fiscal years are as follows:
Fiscal Year
Claims and
Beginning of Prior Fiscal Balance at
Fiscal Year Year Changes Claims Fiscal
Fiscal Year Liability in Estimates Payments Year End
2022-2023 23,047,370$ 11,998,713 $ (7,200,188) $ 27,845,895 $ 2023-2024 27,845,895 6,564,286 (4,538,218) 29,871,963 2024-2025 29,871,963 8,622,645 (7,684,493) 30,810,115
Note 14 – Net Investment in Capital Assets
The calculation of net investment in capital assets is calculated as follows:
Governmental Business-Type
Activities Activities Water Wastewater
Total capital assets, net 413,497,736 $ 116,673,852 $ 27,558,751 $ 89,115,101 $ Unspent capital debt proceeds 42,524,831 14,879,246 3,213,275 11,665,971 Cash held in escrow 14,924,777 - - - Retention payable (835,066) - - - Capital related debt (74,134,960) (43,773,949) (6,270,665) (37,503,284) Net investment in capital assets 395,977,318$ 87,779,149 $ 24,501,361 $ 63,277,788 $ Enterprise Funds
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
89 Note 15 – Fund Balance Classifications
At June 30, 2025, the governmental funds report the following fund balance classifications:
Park
Development Capital Police Station Nonmajor Total
General Special Revenu e Projects Capital Governmental Governmental Fund Fund Fund Projects Fund Funds Funds
Nonspendable:
Inventories 103,121 $ - $ - $ - $ - $ 103,121$ Prepaid items 84,465 - 56,871 - - 141,336 Advances to other funds 17,492,605 - - - - 17,492,605 Land held for resale 719,969 - - - - 719,969 Total nonspendable 18,400,160 - 56,871 - - 18,457,031 Restricted:
General government - - - - 50,649,081 50,649,081 Public safety - - - - 26,451,790 26,451,790 Community development - 218,222 - - 66,208,787 66,427,009 Capital projects - - 84,787 24,891,307 10,962,633 35,938,727 Debt service - - - - 578,243 578,243 Deposits 6,418,587 - - - - 6,418,587 Total restricted 6,418,587 218,222 84,787 24,891,307 154,850,534 186,463,437 Committed:
Economic uncertainty 36,295,841 - - - - 36,295,841 Assigned:
Capital projects - - 55,627,907 - - 55,627,907 Unassigned (deficit) 72,286,583 - - - (6,256,328) 66,030,255 ,, Total 133,401,171$ 218,222 $ 55,769,565$ 24,891,307 $ 148,594,206 $ 362,874,471 $
Note 16 – Restatement of Beginning Net Position and Fund Balances
The beginning net positions and fund balances were restated as follows:
Governmental Business-Type
Activities Activities
Beginning, as previously reported 532,547,129$ 43,604,940 $ Change in accounting principle:
GASB 101 - Compensated
Absences 543,667 (2,673)
Error correction:
Capital assets (a) 3,398,260 -
Beginning, as restated 536,489,056 $ 43,602,267 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
90 Note 16 – Restatement of Beginning Net Position and Fund Balances (Continued)
Housing
Cal Home Authority
Sp ecial Special W orker's General
Revenue Fund Revenue Fund Water Wastewater Cemetery Compensation Liability Beginning, as previously reported 1,889,793$ 3,209,471 $ 7,692,308 $ 25,360,370 $ 835,754 $ (6,515,654)$ 1,629,372 $ Change in accounting principle:
GASB 101 - Compensated
Absences - - 17,474 (20,123) (24) (93) (93) Error correction:
Unavailable revenue (b) 982,045 929,257 - - - - - Beginning, as restated 2,871,838$ 4,138,728 $ 7,709,782 $ 25,340,247 $ 835,730 $ (6,515,747)$ 1,629,279 $ Enterprise Funds Internal S ervice FundsGovernmental Funds
a) The increase of the net position of $3,398,20 for govern mental activities was related to the capital outlay of Police Station Capital Projects Fund that were expensed in prior year but met the criteria of capitalization.
b) The increase in the beginning fund balances of the Cal HOME Special Revenue Fund of $982,045 and Authority Special Revenue Fund of $9 29,257 reflects the reclassification of previously reported unavailable revenue related to the notes and loans receivable to restricted fund balance.
Note 17 – Joint Power 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 pow ers agreement. It was form ed to undertake projects to stimulate private investment in business and industrial grow th in economically depressed areas within the boundaries of the association. The AMIGA Joint Powers Authority sh all manage, coordinate, mark et 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 assump tion of financial obligations must be approved by all members.
On February 27, 1992, the AMIGA Joint Powers Author ity issued $16,365,000 of special tax bonds, which is secured by a special tax lien on property in the District under the Community Facilities District No. 1992-1.
On July 10, 2003, the AMIGA Joint Powers Authority refu nded 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 AM IGA Joint Powers Authority ar e recorded in the City’s financial statements.
Copies of the AMIGA Joint Powers Authority’s audited fi nancial statements can be obtained from the Agua Mansa Industrial Growth Association at 157 West Fifth Street, Second Floor, San Bernardino, California 92415.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
91 Note 18 – 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. Acco rdingly, the City’s complia nce with applicable grant requirements will be established at a future date. The amount of expenditures whic h may be disallowed by the granting agencies cannot be determined at this time, a lthough the City anticipates such amounts, if any, will be immaterial.
The City is a defendant in various laws uits. Although the outcome of these laws uits is not presently determinable, in the opinion of the City’s legal counsel, the resolution of th ese matters will not have a material adverse effect on the financial condition of the City.
Note 19 – Tax Abatement Agreement
The City has negotiated certain tax abatement agreement with an entity in the distribution industry to abate 50 percent of sales taxes due to the City from th is entity. The agreement is for twenty years, with no maximum abatement ceiling. The entity have the sole option to extend the agreemen t at the conclusion of the term. As a result of this tax abatement agreement, the City’s sales taxes were reduced by $5,681,990 in the current fiscal year.
Note 20 – Concessionaire Agreement
The City owns certain revenue producin g water and wastewater enterprise faci lities (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, construc t, 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 City continues to own the Wastew ater Facility and the Authority cont inues to hold the long-term facility lease under the agreement. The Concessi onaire has been afforded long-ter m 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 ope rating and performing maintenance of the wastewater facility, wastewater facility improvements, staffing the wastewater facility, monitori ng of the influent and effluent, preparing and certifying discharge monitori ng 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 lo cation and facilities for the off-site disposal of the sewage sludge delivered by the Concessionaire to a staging are locat ed 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 rela ted 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. A ll Wastewater Facility User Fees are to be deposited in a Lockbox Account in accordance with the trust agreement.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
92 Note 20 – Concessionaire Agreement (Continued)
A. Wastewater Facility (Continued)
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 10) 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 acc ount that is not subject to the trust agreement with respect to the design and construction of the Wastewater Fa cility Improvements, in an amount that is equal to the actual costs incurred.
The Concessionaire is also to be paid Wastewater Se rvice 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 Fixe d 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 Wastew ater 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 th e 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 2024-25 for the Wastewater Fixed Fee, which is included in the cost of sales and services expense in the Wastewater Fund, totaled $8,120,102 detailed as follows:
Actual
Wastewater Fixed Component 2,776,056 $
Wastewater Routine R&R Component 285,000
Wastewater Chemical Component 1,029,932
Wastewater Labor Component 4,029,114
Total Wastewater Fixed Fee 8,120,102$
The Wastewater Fixed Fee is required annually through November 2042 and will require the above payments annually starting 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 E xpense 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
93 Note 20 – Concessionaire Agreement (Continued)
A. Wastewater Facility (Continued)
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 10). Th e 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 comp ensated for a specific amount for a sp ecific period for providing services related to the construction of the Wastewater Facility Improvements.
B. Water Facility
The City continues to own the Utility Facility and the Au thority continues to hold the long-term facility lease under the agreement. The Concessionaire has been afforded long-term nonexclu sive access and use of the facility to perform the services required under the agreement. Sec tion 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, monitori ng of the quality of the water, purchasing supplies for the facility, billing and collection fees and other services to operate the facility.
The Concessionaire is to bill and collect all user fees related to the Water Facility which include: (a) water service fees, charges and assessments, (b) water connection charg es, 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 acc ount that is not subject to the trust agreement with respect to the design and construction of the Water Facility Improvements, in an amount that is equal to the actual costs incurred.
The Concessionaire is also to be paid a Water Service Fee which is the sum of (a) Water Fixed Component (b) Water Routine R&R Component (c) Water Chemical Co mponent and (d) Water La bor Component. The Water Fixed Component is to pay for the services of the C oncessionaire to operate the Water facility (excluding, however, the services and compensation that are otherwis e expressly provided elsewhere in the agreement) and the costs for maintenance 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 Facility which is also adju sted each contract year by a Wastewater Adjustment Escalator. The Water Chemical Component is to re imburse 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 C oncessionaire 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.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
94 Note 20 – Concessionaire Agreement (Continued)
B. Water Facility (Continued)
The amount paid in fiscal year 2024-25 for the Water Fi xed Fee, which is included in the cost of sales and services expense in the Water Fund, totaled $6,909,091 detailed as follows:
Actual
Water Fixed Component 2,880,911 $
Water Routine R&R Component 285,000
Water Chemical Component 63,094
Water Labor Component 3,680,086
Total Water Fix ed Fee 6,909,091$
The Water Fixed Fee through November 2042 will be b ased on the above amounts, but may be adjusted for unexpected utility activity and inflation.
The Concessionaire is entitled to a Water Reimbursable Pa yment in an amount equal to the cost and expenses incurred by the Concessionaire plus a mark up to oper ate the Water Facility. The Water Reimbursable Payment consists of (a) Water Miscellaneous Expense Reimbursement (b) Water Operating R&R Reimbursement and (c) Water Excess Routine R&R Reimbursement. Section 4. 3 of the concession agreement provides additional information of the various components of these reimbursable amounts.
The Authority is required to pay a capital charge of $2,9 00,000 annually for a period of 30 years to pay for the financing provided by the Concessionaire. The capital char ges 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 ma y be adjusted in accordance with Section 2.5 or increased as provided in Section 14.8 of the concession agreement.
The Concessionaire is also to be comp ensated for a specific amount for a sp ecific period for providing services related to the construction of the Water Facility Improvements.
Note 21 – Successor Agency Disclosures
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of Ca lifornia. This action impacted the reporting entity of the City of Rialto that previously had reported a redevel opment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment ag ency, either the city or other unit of local government will agree to serve as the “successor agen cy” to hold the assets units they are di stributed to other units of state and local government. On January 10, 2012, the City Council el ected to become the Successo r Agency for the former redevelopment agency in accordance with the Bill as part of the City resolution number 12-001.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments . Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable ob ligations in existence as of the date of the dissolution (including the completion of any unfinished projects th at were subject to legally enforceable contractual commitments).
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
95 Note 21 – Successor Agency Disclosures (Continued)
In future fiscal years, succ essor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the fo rmer redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs that State Controller of the State of Calif ornia to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditu re or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to th e public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill.
The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determina tion may be made at a later da te by an appropriate judicial authority that would resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the Stat e of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
Prior to that date, the final seven months of activity of the redevelopment agency con tinued to be reported in the governmental funds of the City. After the date of dissolutio n, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
The transfer of the assets and liabilities of the form er redevelopment agency as of January 31, 2012 from governmental funds of the City to fiduciary funds was repor ted in the governmental funds as an extraordinary loss (or gain) in the governmental fund financ ial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss).
Because of the different measurement focus of the govern mental funds (current financial resources measurement focus) and the measurement fo cus of the trust funds (economic resources me asurement focus), the extraordinary gain (loss) recognized in the governmental funds was not the same amount as the extraordinar y gain (loss) that was recognized in the fiduciary fund financial statements.
A. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:
Cash and investments pooled with the City 10,515,618 $
Cash and investments with fiscal agent 5,013,237
Total 15,528,855 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
96 Note 21 – Successor Agency Disclosures (Continued)
B. Notes Receivable
At June 30. 2025, the Successor Agency’s notes receivable consisted of the following:
Rialto Unified School District Cooperative Agreements 4,137,934$ Ramrod Mobile Home Park 1,328,166
Commercial Loan Program 255,315
Total 5,721,415 $
Rialto Unified School District Cooperative Agreements
Effective June 1, 2005, the Agency and the Rialto Un ified School District (“the District”) entered into a Cooperative Agreement whereby the Agency made a porti on of the proceeds of the 2005 Series A Tax Allocation Bonds available to the District to assist the District in fi nancing a portion of the cost of the Rialto Unified School District Facilities. These proceeds tota led $2,717,131. Under the Cooperative Ag reement, the District will forego tax increment revenues that otherwise would have been tr ansferred to it by the Ag ency 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, pl us 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, 2025, $2 ,166,941 of this receivable remains outstanding, bearing interest at variable rates between 3.6% and 4.9%.
Rialto Unified School District Cooperative Agreements (Continued)
Effective September 1, 2018, the Agency the District entered into a Cooperative Ag reement whereby the Agency made a portion of the proceeds of the 2018 Series A Tax Allo cation 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 Distri ct will forego tax increment revenues that otherwise would have been transferred to it by the Agency pursu ant to two pass-through agreements by and between the District and the Agency, and pursuant to the statutory re quirements 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, 2025, $1,970, 993 of this receivable remains outstanding, bearing interest at 5%.
Ramrod Mobile Home Park
Effective July 1, 1996, the Agency sold the Ramrod M obile 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 transferre d to the Successor Agency Pr ivate-Purpose Trust Fund.
The balance outstanding on the note receivable is $1,328,166 at June 30, 2025.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
97 Note 21 – Successor Agency Disclosures (Continued)
B. Notes Receivable (Continued)
Commercial Loan Program
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. Th e 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 Februa ry 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, 2025 is $255,315.
C. Property Held for Resale
Property held for resale was generally acquired in the norma l course of the Agency activity and is recorded at the lower of acquisition cost or estimated net realizable va lue (i.e., estimated selling price less reasonably predicted costs of disposal). Upon the dissolution of the former rede velopment 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, 2025, the Successor Agency’s property held for resale is valu ed 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.
D. Capital Assets
A summary of changes in the Successor Agency’s capital assets at June 30, 2025 is as follows:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not bei ng de preciate d:
Land 290,347 $ - $ - $ - $ 290,347$ Total capital assets, not being depreciated 290,347 - - - 290,347 Capital assets, being depreciated:
Buildings and other structures 97,647 - - - 97,647 Improvements other than buildings 285,647 - - - 285,647 Total capi tal assets, be ing de pre ci ate d 383,294 - - - 383,294 Less accumul ate d depre ciation for:
Buildings and other structures (41,077) (1,956) - - (43,033) Improvements other than buildings (285,647) - - - (285,647) Total accumulated depreciation (326,724) (1,956) - - (328,680) Total capital assets, being
de pre ci ate d, net 56,570 (1,956) - - 54,614 Total capital assets, net 346,917$ (1,956) $ - $ - $ 344,961$ City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
98 Note 21 – Successor Agency Disclosures (Continued)
E. Long-Term Liabilities
Long-term debt of the Successor Agency as of June 30, 2025, consisted of the following:
Balance Balance Due within Due in M ore
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Yea r Successor Agency Activ ities:
Bonds payable, net:
2008 Tax Allocation Bonds, Series B 21,650,000 $ - $ (735,000)$ 20,915,000 $ 790,000 $ 20,125,000$ 2008 Tax Allocation Bonds, Series C 15,720,000 - (675,000) 15,045,000 730,000 14,315,000 2014 Tax Allocation Revenue Refunding Bonds, Series A 6,245,000 - (1,445,000) 4,800,000 1,530,000 3,270,000 2015 Tax Allocation Revenue Refunding Bonds, Series A 20,640,000 - - 20,640,000 - 20,640,000 2015 Tax Allocation Revenue Refunding Bonds, Series B 7,255,000 - (1,195,000) 6,060,000 1,240,000 4,820,000 2015 Tax Allocation Revenue Refunding Bonds, Series C 5,030,000 - (460,000) 4,570,000 480,000 4,090,000 2018 Tax Allocation Revenue Refunding Bonds, Series A 25,105,000 - (500,000) 24,605,000 515,000 24,090,000 Unamortized premiums/(discounts):
2008 Tax Allocation Bonds, Series B 181,214 - (20,051) 161,163 - 161,163 2008 Tax Allocation Bonds, Series C 149,393 - (17,929) 131,464 - 131,464 2014 Tax Allocation Bonds, Series A 252,508 - (106,154) 146,354 - 146,354 2015 Tax Allocation Bonds, Series A 554,260 - (65,174) 489,086 - 489,086 2015 Tax Allocation Bonds, Series B (38,109) - 11,895 (26,214) - (26,214) 2015 Tax Allocation Bonds, Series C (31,794) - 6,192 (25,602) - (25,602) 2018 Tax Allocation Bonds, Series A 2,740,580 - (284,649) 2,455,931 - 2,455,931 Total business-t ype activities 105,453,052$ - $ (5,485,870)$ 99,967,182 $ 5,285,000 $ 94,682,182 $
2008 Tax Allocation Bonds, Series B
$29,600,000 Rialto Redevelopment Agency Tax Allocati on Housing Set-Aside Bonds Merged Project Area 2008 Series B, maturing in serial and term fashion through Se ptember 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 bon ds range from $275,000 to $2,920,000. In terest 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 issue premium of $161,163 and is payable from redevelopment property tax trust fund revenues received by Successor Agency. The total principal outstanding at June 30, 2025 was $20,915,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 790,000$ 1,539,000 $ 2,329,000 $
2027 845,000 1,477,688 2,322,688
2028 910,000 1,411,875 2,321,875
2029 980,000 1,341,000 2,321,000
2030 1,050,000 1,264,875 2,314,875
2031-2035 8,185,000 4,848,563 13,033,563
2036-2038 8,155,000 946,688 9,101,688
Total 20,915,000$ 12,829,689 $ 33,744,689 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
99 Note 21 – Successor Agency Disclosures (Continued)
E. Long-Term Liabilities (Continued)
2008 Tax Allocation Bonds, Series C
$21,965,000 Rialto Redevelopment Agency Tax Allocati on 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 begi nning 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, 2025 was $15,045,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 730,000$ 1,101,000 $ 1,831,000 $
2027 775,000 1,044,563 1,819,563
2028 830,000 984,375 1,814,375
2029 900,000 919,500 1,819,500
2030 965,000 849,563 1,814,563
2031-2035 6,030,000 3,001,875 9,031,875
2036-2038 4,815,000 558,563 5,373,563
Total 15,045,000$ 8,459,439 $ 23,504,439 $
2014 Tax Allocation Revenue Refunding Bonds, Series A
$16,515,000 Successor Agency Tax Alloca tion 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 th e 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 outstandi ng at June 30, 2025 was $4,800,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 1,530,000$ 194,100 $ 1,724,100 $
2027 1,595,000 123,625 1,718,625
2028 1,675,000 41,875 1,716,875
Total 4,800,000$ 359,600 $ 5,159,600 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
100
Note 21 – Successor Agency Disclosures (Continued)
E. Long-Term Liabilities (Continued)
2015 Tax Allocation Revenue Refunding Bonds Series A
On July 30, 2015, the Successor Agency issued $20,640,000 in Tax Alloca tion Revenue Refunding Bonds, 2015 Series A for the purpose of defeasing $23,885,000 of outst anding 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 refundin g 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, 2025 was $20,640,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 - $ 937,850$ 937,850 $
2027 - 937,850 937,850
2028 - 937,850 937,850
2029 - 937,850 937,850
2030 2,065,000 886,225 2,951,225
2031-2035 15,355,000 2,271,500 17,626,500
2036 3,220,000 128,800 3,348,800
Total 20,640,000$ 7,037,925 $ 27,677,925 $
2015 Tax Allocation Revenue Refunding Bonds Series B
On July 30, 2015, the Successor Agency issued $15,290,000 in Tax Alloca tion Revenue Refunding Bonds, 2015 Series B for the purpose of defeasing $16,635,000 of ou tstanding 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 Sept ember 1, 2015 of $420,680, and pay for the cost of issuance totaling $286,026. The advance refunding fu lly 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, 2025 was $6,060,000.
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
101
Note 21 – Successor Agency Disclosures (Continued)
E. Long-Term Liabilities (Continued)
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 1,240,000$ 255,300 $ 1,495,300 $
2027 1,290,000 198,313 1,488,313
2028 1,355,000 135,494 1,490,494
2029 1,420,000 69,588 1,489,588
2030 755,000 17,931 772,931
Total 6,060,000$ 676,626 $ 6,736,626 $
2015 Tax Allocation Revenue Refunding Bonds Series C
On July 30, 2015, the Successor Agen cy issued $8,205,000 in Tax Alloca tion Revenue Refunding Bonds, 2015 Series C for the purpose of defeasing $9,045,000 of outstanding Tax Allocation Bonds 2005 Series B. The principal amount of the 2015 Series C refunding bonds of $8,205,000 less the original discount of $100,864 plus the 2005 Series B refunded bonds available funds of $1,334,703 will be used to refund the bonds in the amount of $9,045,000, pay for the interest payment due as of Se ptember 1, 2015 of $227,774, and pay for the cost of issuance totaling $166,065. The advance refunding fu lly 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, 2025 was $4,570,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 480,000$ 212,010 $ 692,010 $
2027 505,000 189,477 694,477
2028 525,000 165,401 690,401
2029 555,000 139,125 694,125
2030 585,000 110,625 695,625
2031-2035 1,920,000 147,000 2,067,000
Total 4,570,000$ 963,638 $ 5,533,638 $
City of Rialto
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
102
Note 21 – Successor Agency Disclosures (Continued)
E. Long-Term Liabilities (Continued)
2018 Tax Allocation Revenue Refunding Bonds, Series A
On January 24, 2018, the Successor Agency issued $28,480,000 in Tax Allocation Revenue Refunding Bonds, 2018 Series A for the purpose of defeasing $35,810,000 of outstanding Tax Allocation Bonds 2008 Series A. The principal amount of the 2018 Series A refunding bonds of $ 28,480,000 less the original 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 refundin g 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, 2025 was $24,605,000.
The future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2026 515,000$ 1,217,375 $ 1,732,375 $
2027 550,000 1,190,750 1,740,750
2028 570,000 1,162,750 1,732,750
2029 2,160,000 1,094,500 3,254,500
2030 1,205,000 1,010,375 2,215,375
2031-2035 7,775,000 4,008,375 11,783,375
2036-2038 11,830,000 1,038,250 12,868,250
Total 24,605,000$ 10,722,375 $ 35,327,375 $
F. Other Commitments
The Agency had entered into two Cooperative Agreements with the Rialto Unified School District (RUSD) under which the Agency advanced funds from the 2005 and 2008 tax allocation bond issues to pay for school improvements. The RUSD pledged its pass-through payment entitlements unde r 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 re tained 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 Marc h 1, 2009 debt service payment on the 2005 and 2008 tax allocation bonds. In 2015, the Successor Agency refinanced the 2005 bonds re ducing interest rate and payments.
The refinance bonds are known as the 2015 bonds. At June 30, 2024, the am ount committed under these agreements totaled $240,911. The amount includes the 2008 and 2015 bonds. On February 1, 2012, the Successor Agency assumed all responsibilities under the agreements. Fu ture payments, if any, will be requested through the semi-annual Redevelopment Property Tax Trust Fund (FPTTF) distribution process.
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
103
This page intentionally left blank.
104
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 122,885,264$ 122,885,264$ 135,715,686$ 12,830,422$ Licenses and permits 6,300,000 6,300,000 6,415,786 115,786 Intergovernmental 5,657,090 5,657,090 9,579,278 3,922,188 Charges for services 12,697,530 12,697,530 11,452,643 (1,244,887) Use of money and property 2,174,000 2,174,000 12,100,119 9,926,119 Fines and forfeitures 1,000,000 1,000,000 1,145,124 145,124 Miscellaneous 1,046,995 1,046,995 1,818,846 771,851 Total Revenues 151,760,879 151,760,879 178,227,482 26,466,603 EXPENDITURES:
Current:
General government 44,129,734 45,091,440 40,064,034 5,027,406 Public safety 73,738,308 74,837,967 77,557,276 (2,719,309) Community development 28,037,295 28,878,887 24,389,014 4,489,873 Capital outlay - - 403,260 (403,260) Debt service:
Principal 386,515 386,515 1,066,041 (679,526) Interest 250,230 250,230 282,484 (32,254) Total Expenditures 146,542,082 149,445,039 143,762,109 5,682,930
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 5,218,797 2,315,840 34,465,373 32,149,533 OTHER FINANCING SOURCES (USES):
Transfers in 143,710 385,343 385,343 - Transfers out (3,077,870) (34,993,674) (35,063,822) (70,148) Issuance of debt - - 403,260 403,260 Total other financing sources (uses) (2,934,160) (34,608,331) (34,275,219) 333,112 NET CHANGE IN FUND BALANCE 2,284,637$ (32,292,491)$ 190,154 32,482,645$ FUND BALANCE:
Beginning of year 133,211,017
End of year 133,401,171$
Budgeted Amounts
City of Rialto
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
Required Supplementary Information (Unaudited)
105
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 400,000$ 400,000$ 1,730,543$ 1,330,543$ Use of money and property 94,500 94,500 302,657 208,157 Total Revenues 494,500 494,500 2,033,200 1,538,700 NET CHANGE IN FUND BALANCE 494,500$ 494,500$ 2,033,200 1,538,700$ FUND BALANCE (DEFICIT):
Beginning of year (1,814,978)
End of year 218,222$
Budgeted Amounts
City of Rialto
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Park Development Special Revenue Fund For the Year Ended June 30, 2025
106
City of Rialto
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
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 Police Station Capital Projects Fund, Transportation Enhancement Activities Special Revenue Fund, American Rescue Plan Special Revenue Fund, Traffic Safety Special Revenue Fund, Neighborhood Stabilization Special Revenue Fund, Brownfield Clean Up Grant Special Revenue Fund, Fire Grant Special Revenue Fund, Special Deposits Special Revenue Fund, Confiscated Special Revenue Fund, and Police Station Debt Service Fund for the fiscal year 2024-2025. 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 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.
Note 2 - Excess of Expenditures over Appropriations
Expenditures exceeded appropriations in the Street Lighting & Landscape Maintenance Special Revenue Fund, and Cal Home Special Revenue Fund.
107
2016 2017 2018 2019 2020
Measurement period 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total pension liability
Service cost 1,545,683$ 1,621,654$ 1,962,464$ 2,003,976$ 1,791,482$ Interest on total pension liability 8,242,200 8,545,451 8,739,244 8,993,449 9,347,753 Changes in benefit terms
Changes of assumptions (2,069,469) - 7,392,961 (799,662) - Difference between expected and actual experience (1,901,232) (403,816) (1,503,407) (254,150) 623,582 Benefit payments, including refunds
of employee contributions (5,329,662) (5,586,314) (5,823,917) (6,402,730) (6,716,222) Net change in total pension liability 487,520 4,176,975 10,767,345 3,540,883 5,046,595 Total pension liability - beginning 113,603,873 114,091,393 118,268,368 129,035,713 132,576,596 Total pension liability - ending (a) 114,091,393$ 118,268,368$ 129,035,713$ 132,576,596$ 137,623,191$ Plan fiduciary net position
Contributions - employer 2,257,385$ 2,770,673$ 3,399,175$ 3,194,249$ 3,600,870$ Contributions - employee 832,233 864,570 924,474 1,013,826 887,762 Net investment income 1,827,857 419,804 8,989,575 7,500,484 6,111,526 Benefit payments, including refunds of
employee contributions (5,329,662) (5,586,314) (5,823,917) (6,402,730) (6,716,222) Net Plan to Resource Movement 1,212 28,412 - (218) - Administrative expense (93,780) (50,761) (120,679) (138,851) (67,087) Other miscellaneous income/(expense)
1 - - - (263,681) 218 Net change in plan fiduciary net position (504,755) (1,553,616) 7,368,628 4,903,079 3,817,067 Plan fiduciary net position - beginning2
83,795,556 83,290,801 81,737,185 89,105,813 94,008,892 Plan fiduciary net position - ending (b) 83,290,801$ 81,737,185$ 89,105,813$ 94,008,892$ 97,825,959$ Plan net pension liability - ending (a) - (b) 30,800,592$ 36,531,183$ 39,929,900$ 38,567,704$ 39,797,232$ Plan fiduciary net position as a percentage
of the total pension liability 73.00% 69.11% 69.06% 70.91% 71.08% Covered payroll3 8,408,677$ 9,138,652$ 10,035,098$ 10,400,541$ 9,074,473$ Plan net pension liability as a percentage
of covered payroll 366.30% 399.74% 397.90% 370.82% 438.56% Notes to Schedule:
Changes to Benefit Terms: 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: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 3Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth for fiscal years ended in 2015 through 2017.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
1During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Miscellaneous Plan
City of Rialto
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
108
2021 2022 2023 2024 2025
Measurement period 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Total pension liability
Service cost 2,051,976$ 2,090,638$ 2,384,818$ 2,810,889$ 3,211,038$ Interest on total pension liability 9,773,601 10,134,642 10,467,478 11,036,170 11,550,211 Changes in benefit terms 239,822 -
Changes of assumptions - - 5,063,120 - - Difference between expected and actual experience 1,702,384 724,123 463,355 3,407,306 2,360,495 Benefit payments, including refunds
of employee contributions (7,315,654) (7,723,398) (8,155,607) (8,785,508) (9,129,994) Net change in total pension liability 6,212,307 5,226,005 10,223,164 8,708,679 7,991,750 Total pension liability - beginning 137,623,191 143,835,498 149,061,503 159,284,667 167,993,346 Total pension liability - ending (a) 143,835,498$ 149,061,503$ 159,284,667$ 167,993,346$ 175,985,096$ Plan fiduciary net position
Contributions - employer 4,154,462$ 4,936,398$ 4,951,534$ 7,812,395$ 5,847,651$ Contributions - employee 1,030,303 1,183,351 891,608 1,332,851 1,652,862 Net investment income 4,856,489 22,368,446 (9,081,623) 6,799,863 11,122,879 Benefit payments, including refunds of
employee contributions (7,315,654) (7,723,398) (8,155,607) (8,785,508) (9,129,994) Net Plan to Resource Movement - - - 142 - Administrative expense (137,911) (100,307) (75,424) (80,601) (94,949) Other miscellaneous income/(expense)
1 - - - - - Net change in plan fiduciary net position 2,587,689 20,664,490 (11,469,512) 7,079,142 9,398,449 Plan fiduciary net position - beginning2
97,825,959 100,413,648 121,078,138 109,608,626 116,687,768 Plan fiduciary net position - ending (b) 100,413,648$ 121,078,138 $ 109,608,626 $ 116,687,768 $ 126,086,217 $ Plan net pension liability - ending (a) - (b) 43,421,850$ 27,983,365$ 49,676,041$ 51,305,578$ 49,898,879$ Plan fiduciary net position as a percentage
of the total pension liability 69.81% 81.23% 68.81% 69.46% 71.65% Covered payroll3 10,874,276$ 11,294,642 $ 11,765,257 $ 13,698,288 $ 16,407,959 $ Plan net pension liability as a percentage
of covered payroll 399.31% 247.76% 422.23% 374.54% 304.11% Notes to Schedule:
Changes to Benefit Terms: 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: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 3Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth for fiscal years ended in 2015 through 2017.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
1During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Miscellaneous Plan
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
109
2016 2017 2018 2019 2020
Measurement period 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total pension liability
Service cost 4,576,388$ 4,790,840$ 5,334,644$ 5,206,707$ 4,820,128$ Interest on total pension liability 17,478,960 18,240,547 18,863,603 19,196,158 19,950,664 Changes in benefit terms
Changes of assumptions (4,760,201) - 17,388,091 (8,400,860) - Difference between expected and actual experience (2,396,762) (2,000,635) (4,519,766) 450,278 (1,417,660) Benefit payments, including refunds
of employee contributions (9,966,418) (10,446,639) (11,120,451) (11,944,712) (12,534,003) Net change in total pension liability 4,931,967 10,584,113 25,946,121 4,507,571 10,819,129 Total pension liability - beginning 238,335,097 243,267,064 253,851,177 279,797,298 284,304,869 Total pension liability - ending (a) 243,267,064$ 253,851,177$ 279,797,298$ 284,304,869$ 295,123,998$ Plan fiduciary net position
Contributions - employer 6,116,568$ 6,139,735$ 6,576,775$ 6,989,814$ 7,807,973$ Contributions - employee 2,679,822 2,994,151 3,084,249 2,893,086 2,872,745 Net investment income 3,784,587 857,197 19,120,363 16,082,104 13,315,731 Benefit payments, including refunds of
employee contributions (9,966,418) (10,446,639) (11,120,451) (11,944,712) (12,534,003) Net Plan to Resource Movement (1,048) (28,412) - (470) - Administrative expense (194,077) (105,111) (253,771) (294,963) (144,475) Other miscellaneous income/(expense) - - - (560,140) 470 Net change in plan fiduciary net position 2,419,434 (589,079) 17,407,165 13,164,719 11,318,441
Plan fiduciary net position - beginning 170,050,535 172,469,969 171,880,890 189,288,055 202,452,774 Plan fiduciary net position - ending (b) 172,469,969$ 171,880,890$ 189,288,055$ 202,452,774$ 213,771,215$ Plan net pension liability - ending (a) - (b) 70,797,095$ 81,970,287$ 90,509,243$ 81,852,095$ 81,352,783$ Plan fiduciary net position as a percentage
of the total pension liability 70.90% 67.71% 67.65% 71.21% 72.43% Covered payroll (from prior year) 15,074,241$ 15,545,592$ 15,522,578$ 15,871,203$ 14,498,370$ Plan net pension liability as a percentage
of covered payroll 469.66% 527.29% 583.08% 515.73% 561.12% Notes to Schedule:
Changes to Benefit Terms: 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: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 3Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth for fiscal years ended in 2015 through 2017.
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Safety Plan
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
1During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
City of Rialto
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 110
2021 2022 2023 2024 2025
Measurement period 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Total pension liability
Service cost 5,368,782$ 6,068,460$ 6,987,480$ 7,203,683$ 7,025,484$ Interest on total pension liability 20,986,672 22,123,384 22,696,112 24,355,579 26,322,157 Changes in benefit terms 140,014 -
Changes of assumptions - - 6,527,700 - - Difference between expected and actual experience 2,381,715 2,800,717 (1,037,356) 10,366,524 15,148,891 Benefit payments, including refunds
of employee contributions (13,340,458) (13,875,382) (15,385,586) (17,110,409) (19,125,411) Net change in total pension liability 15,396,711 17,117,179 19,788,350 24,955,391 29,371,121 Total pension liability - beginning 295,123,998 310,520,709 327,637,888 347,426,238 372,381,629 Total pension liability - ending (a) 310,520,709$ 327,637,888$ 347,426,238$ 372,381,629$ 401,752,750$ Plan fiduciary net position
Contributions - employer 8,902,873$ 10,425,758$ 10,598,121$ 14,713,973$ 11,156,175$ Contributions - employee 3,347,779 4,241,728 3,368,640 3,634,578 3,929,548 Net investment income 10,639,176 50,593,378 (20,799,581) 15,916,206 25,656,773 Benefit payments, including refunds of
employee contributions (13,340,458) (13,875,382) (15,385,586) (17,110,409) (19,125,411) Net Plan to Resource Movement - - - (142) - Administrative expense (301,365) (222,783) (170,799) (185,157) (218,692) Other miscellaneous income/(expense) - - - - -
Net change in plan fiduciary net position 9,248,005 51,162,699 (22,389,205) 16,969,049 21,398,393 Plan fiduciary net position - beginning 213,771,215 223,019,220 274,181,919 251,792,714 268,761,763 Plan fiduciary net position - ending (b) 223,019,220$ 274,181,919$ 251,792,714$ 268,761,763$ 290,160,156$ Plan net pension liability - ending (a) - (b) 87,501,489$ 53,455,969$ 95,633,524$ 103,619,866$ 111,592,594$ Plan fiduciary net position as a percentage
of the total pension liability 71.82% 83.68% 72.47% 72.17% 72.22% Covered payroll (from prior year) 15,809,135$ 18,174,483$ 19,382,745$ 20,418,603$ 20,032,745$ Plan net pension liability as a percentage
of covered payroll 553.49% 294.13% 493.40% 507.48% 557.05% Notes to Schedule:
Changes to Benefit Terms: 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: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 3Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth for fiscal years ended in 2015 through 2017.
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Safety Plan
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment.
1During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net Pension Liability and Related Ratios (Continued) 111
Fiscal year end June 30 2016 2017 2018 2019 2020
Actuarially determined contributions2 2,770,673$ 3,399,175 $ 3,194,233 $ 3,600,870 $ 4,154,462 $ Contributions in Relation to the Actuarially
Determined Contribution2 (2,770,673) (3,399,175) (3,194,233) (3,600,870) (4,154,462) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered/Covered Employee Payroll3
9,138,652$ 10,035,098 $ 10,400,541 $ 9,074,473 $ 10,874,276 $ Contributions as a percentage of
Covered/Covered-Employee Payroll3 30.32% 33.87% 30.71% 39.68% 38.20% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method For details, see June 30, 2022 Funding Valuation Report.
Asset valuation method Fair Value Assets. For details, see June 30, 2022 Funding Valuation Report.
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll Growth 2.80%
Investment rate of return
Retirement age
Mortality
6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 funding valuation report.
The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
City of Rialto
For the Year Ended June 30, 2025
1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2015 through 2017.
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions
Last Ten Fiscal Years
Miscellaneous Agent, Multiple-Employer Pension Plan1
112
Fiscal year end June 30 2021 2022 2023 2024 2025
Actuarially determined contributions2 4,936,398$ 4,951,534 $ 5,712,395 $ 5,847,651 $ 7,014,510 $ Contributions in Relation to the Actuarially
Determined Contribution2 (4,936,398) (4,951,534) (7,812,395) (5,847,651) (7,014,510) Contribution deficiency (excess) - $ - $ (2,100,000)$ - $ - $ Covered/Covered Employee Payroll3
11,294,642$ 11,765,257 $ 13,698,288 $ 16,407,959 $ 16,867,382 $ Contributions as a percentage of
Covered/Covered-Employee Payroll3 43.71% 42.09% 57.03% 35.64% 41.59% City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Miscellaneous Agent, Multiple-Employer Pension Plan1
113
Fiscal year end June 30 2016 2017 2018 2019 2020
Actuarially determined contributions2 6,139,735$ 6,576,775 $ 6,989,814 $ 7,807,934 $ 8,902,873 $ Contributions in Relation to the Actuarially
Determined Contribution2 (6,139,735) (6,576,775) (6,989,814) (7,807,934) (8,902,873) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered/Covered Employee Payroll3
15,545,592$ 15,522,578 $ 15,871,203 $ 14,498,370 $ 15,809,135 $ Contributions as a percentage of
Covered/Covered-Employee Payroll3
39.50% 42.37% 44.04% 53.85% 56.31%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method For details, see June 30, 2022 Funding Valuation Report.
Asset valuation method Fair Value Assets. For details, see June 30, 2022 Funding Valuation Report.
Inflation 2.30%
Salary increases Varies by entry age and service
Payroll Growth 2.80%
Investment rate of return
Retirement age
Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 funding valuation report.
The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Safety Agent, Multiple-Employer Pension Plan1
6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation. 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2015 through 2017.
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions
114
Fiscal year end June 30 2021 2022 2023 2024 2025
Actuarially determined contributions2 10,425,758$ 10,598,121 $ 11,813,973 $ 11,156,175 $ 13,774,335 $ Contributions in Relation to the Actuarially
Determined Contribution2 (10,425,758) (10,598,121) (14,713,973) (11,156,175) (13,774,335) Contribution deficiency (excess) - $ - $ (2,900,000)$ - $ - $ Covered/Covered Employee Payroll3
18,174,483$ 19,382,745 $ 20,418,603 $ 20,032,745 $ 20,593,662 $ Contributions as a percentage of
Covered/Covered-Employee Payroll3
57.36% 54.68% 72.06% 55.69% 66.89%
For the Year Ended June 30, 2025
Last Ten Fiscal Years
Safety Agent, Multiple-Employer Pension Plan1
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions (Continued)
115
2018 2019 2020 2021 2022
Measurement period 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Total OPEB liability
Service cost 2,083,035$ 1,928,465$ 2,094,466$ 2,226,583$ 2,940,821$ Interest on total OPEB liability 1,874,471 2,068,297 2,080,962 2,109,724 2,011,797 Changes of assumptions (3,897,172) 1,811,535 1,193,708 2,813,462 (24,441,690) Difference between expected and actual experience - - - (2,268,284) - Benefit payments, including refunds of
employee contributions (2,009,296) (1,969,858) (2,070,376) (2,236,759) (2,390,886) Net change in total OPEB liability (1,948,962) 3,838,439 3,298,760 2,644,726 (21,879,958) Total OPEB liability - beginning 58,618,155 56,669,193 60,507,632 63,806,392 66,451,118 Total OPEB liability - ending (a) 56,669,193$ 60,507,632$ 63,806,392$ 66,451,118$ 44,571,160$ Plan fiduciary net position
Contributions - employer 2,967,326 3,260,163 635,898 862,089 1,075,428 Net investment income 1,806,286 1,243,147 1,144,549 530,339 4,609,016 Benefit payments, including refunds of
employee contributions (2,009,296) (1,969,858) (2,070,376) (2,236,759) (2,390,886) Administrative expense (71,750) (34,725) (40,610) - - Other miscellaneous income/(expense) - - - - - Net change in plan fiduciary net position 2,692,566 2,498,727 (330,539) (844,331) 3,293,558
Plan fiduciary net position - beginning 13,999,208 16,691,774 19,190,501 18,859,962 18,015,631 Plan fiduciary net position - ending (b) 16,691,774$ 19,190,501$ 18,859,962$ 18,015,631$ 21,309,189$ Plan net OPEB liability - ending (a) - (b) 39,977,419$ 41,317,131$ 44,946,430$ 48,435,487$ 23,261,971$ Plan fiduciary net position as a percentage
of the total OPEB liability 29.45% 31.72% 29.56% 27.11% 47.81% Covered-employee payroll (from prior year) 37,244,900$ 24,383,667$ 25,076,875$ 29,143,307$ 30,584,493$ Plan net OPEB liability as a percentage
of covered-employee payroll 107.34% 169.45% 179.23% 166.20% 76.06%
1Historial information presented is only for periods after GASB 75 implementation.
For the Year Ended June 30, 2025
Last Ten Fiscal Years1
City of Rialto
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios 116
2023 2024 2025
Measurement period 6/30/2022 6/30/2023 6/30/2024
Total pension liability
Service cost 1,425,124$ 1,560,086$ 1,573,948$ Interest on total pension liability 2,911,149 2,579,376 2,680,452 Changes of assumptions 2,268,847 - (7,875,730) Difference between expected and actual experience (3,852,637) - (2,473,530) Benefit payments, including refunds of
employee contributions (2,418,752) (2,425,536) (2,367,420) Net change in total pension liability 333,731 1,713,926 (8,462,280) Total pension liability - beginning 44,571,160 44,904,891 46,618,817 Total pension liability - ending (a) 44,904,891$ 46,618,817$ 38,156,537$ Plan fiduciary net position
Contributions - employer 10,848,268 1,155,097 2,367,420 Net investment income (3,763,147) 1,469,740 3,001,001 Benefit payments, including refunds of
employee contributions (2,418,752) (2,425,536) (2,367,420) Administrative expense - - - Other miscellaneous income/(expense) - 252,162 - Net change in plan fiduciary net position 4,666,369 451,463 3,001,001 Plan fiduciary net position - beginning 21,309,189 25,975,558 26,427,021 Plan fiduciary net position - ending (b) 25,975,558$ 26,427,021$ 29,428,022$ Plan net pension liability - ending (a) - (b) 18,929,333$ 20,191,796$ 8,728,515$ Plan fiduciary net position as a percentage
of the total pension liability 57.85% 56.69% 77.12%
Covered-employee payroll (from prior year) 33,217,881$ 34,214,417$ 35,849,036$ Plan net OPEB liability as a percentage
of covered-employee payroll 56.99% 59.02% 24.35%
1Historial information presented is only for periods after GASB 75 implementation.
For the Year Ended June 30, 2025
Last Ten Fiscal Years1
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) 117
Fiscal year end June 30 2018 2019 2020 2021 2022
Actuarially determined contributions (ADC) 2,588,874$ 2,607,829 $ 2,820,893 $ 3,232,616 $ 3,417,101 $ Contributions in relation to the
actuarially determined contribution (3,260,163) (635,898) (862,089) (1,075,428) (10,848,268) Contribution deficiency (excess) (671,289) $ 1,971,931 $ 1,958,804 $ 2,157,188 $ (7,431,167) $ Covered-employee payroll 37,244,900 $ 24,383,667 $ 25,076,875 $ 29,143,307 $ 30,584,493 $ Contributions as a percentage of
covered-Employee Payroll 8.75% 2.61% 3.44% 3.69% 35.47% Methods and assumptions used to determine contribution rates:
Contribution valuation date June 30, 2024
Actuarial cost method Level percentage of payroll
Amortization method
Asset valuation method Market value
Discount rate 5.75%
Inflation rate
Payroll increases
Medical Trend
Mortality
Mortality improvement Mortality projected fully generational with Scale MP-2021 1Historial information presented is only for periods after GASB 75 implementation.
For the Year Ended June 30, 2025
Last Ten Fiscal Years1
Other Postemployment Benefits Plan
Straight-line amortization over the Average Future Working Lifetime for assumption changes and experience gains/losses. Asset gains/losses are amortized over 5 years.
3.00% annual increases
2.5% annual inflation
Pre-65 participants – 7.74% for 2025, decreasing gradually to an ultimate rate of 3.94% in 2076.
Post-65 participants – 5.10% for 2025, decreasing gradually to an ultimate rate of 3.94% in 2076.
Pre-Retirement: CalPERS 2021 Mortality pre-retirement
Post-Retirement: CalPERS 2021 Mortality post-retirement City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Other Postemployment Benefits Plan 118
Fiscal year end June 30 2023 2024 2025
Actuarially determined contributions (ADC) 3,511,344$ 3,142,763 $ 2,105,460 $ Contributions in relation to the
actuarially determined contribution (896,978) (811,810) (1,993,214) Contribution deficiency (excess) 2,614,366 $ 2,330,953 $ 112,246 $ Covered-employee payroll 33,217,881 $ 34,214,417 $ 35,849,036 $ Contributions as a percentage of
covered-Employee Payroll 2.70% 2.37% 5.56%
For the Year Ended June 30, 2025
Last Ten Fiscal Years1
Other Postemployment Benefits Plan
City of Rialto
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Other Postemployment Benefits Plan (Continued) 119
This page intentionally left blank.
120
SUPPLEMENTARY INFORMATION
121
This page intentionally left blank.
122
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 71,100$ 71,100$ 220,086$ 148,986$ Total revenues 71,100 71,100 220,086 148,986 EXPENDITURES:
Current:
General government 10,000 10,000 - 10,000 Public safety 500,000 678,040 841,692 (163,652) Community development - 265,070 493,405 (228,335) Capital outlay 6,569,540 39,180,312 11,901,388 27,278,924 Total expenditures 7,079,540 40,133,422 13,236,485 26,896,937
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (7,008,440) (40,062,322) (13,016,399) 27,045,923 Other Financing Sources (Uses):
Transfers in 3,008,440 8,832,745 8,292,533 (540,212) Transfers out - (16,860) (16,860) - Total other financing sources (uses) 3,008,440 8,815,885 8,275,673 (540,212) NET CHANGE IN FUND BALANCE (4,000,000)$ (31,246,437)$ (4,740,726) 26,505,711$ FUND BALANCE:
Beginning of year 60,510,291
End of year 55,769,565$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Funds
For the Year Ended June 30, 2025
123
This page intentionally left blank.
124
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues derived from specific sources that are required by law or administrative regulation to be accounted for in a separate fund. Funds included are:
Gas Tax Fund - To account for revenues and expenditures of money received from the State Gas Tax allocation. These funds are used for maintenance and construction of City streets.
Transportation Enhancement Activities Fund - To account for revenues received under the Transportation Development Act.
These funds are used for improvements to City streets.
Street Lighting and Landscape Maintenance Fund - To account for the revenues and expenditures associated with the maintenance of City-owned streetlights, parkways and medians. Benefiting property owners are assessed their proportional share of costs for maintaining these facilities, parkways, and medians.
Traffic Development Fund - To account for development fees collected and used for street and traffic control improvements.
Office of Traffic Safety Fund - To account for revenues received under the office of traffic safety. These funds are used to reduce the number of fatal, injury, and DUI related collisions occurring in the community.
Retirement Tax Fund - To account for voted approved property tax levy used to pay the City's employee retirement costs.
Landscape Lighting District No. 2 Fund - To account for the revenues and expenditures associated with the maintenance and operation of landscaping, street lighting, parkways, and medians within Landscape Lighting District No. 2.
Fire Development Fund - To account for development fees collected and used to acquire fire safety equipment and build new facilities.
American Rescue Plan Act Fund - To account for federal funding received under the American Rescue Plan Act used to support the City’s response to and recovery from the COVID-19 pandemic, in accordance with federal program requirements.
Library Facilities Development Fund - To account for development fees collected and used for acquisition, expansion and construction of library facilities.
Police Development Fund - To account for development fees collected and used for police equipment facilities and the hiring and training of new police officers needed to serve new development.
Open Space Development Fund - To account for development fees collected and used for the acquisition of land and the turfing of new parks to provide open space for the City.
General Facilities Development Fund - To account for development fees collected and used for general municipal buildings and equipment needed to serve new development within the City.
Major Grant Funding Fund - To account for monies received and expended by the City as a participant in Federal and State and other local grants for City infrastructure and capital improvements.
Waste Management Fund - To account for monies received and expended by the City to meet the State mandate to reduce solid waste generated within the City.
South Coast Air Quality Management (SCAQMD) Fund - To account for the revenues and expenditures associated with the City’s employee trip reduction (ride share) plan and incentive program. The revenue source for this fund is a special allocation of motor vehicle registration fees in accordance with AB 2766.
125
NONMAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE FUNDS (Continued)
Asset Forfeiture Fund - This fund is used to account for revenues and expenditures associated with law enforcement drug and gang prevention. Revenues for the fund are derived from the assets seized by law enforcement and determined to be forfeited by the courts.
Police Grants Fund - To account for monies received and expended by the Police Department for various grants.
Community Services Grant Fund - To account for grant revenues received and expenditures incurred for community service programs in accordance with federal, state, or local grant requirements.
Citizens Option for Public Safety Fund - To account for revenues and expenditures associated with the City’s front line municipal police services and to include juvenile justice programs. The revenue source for this fund is a special allocation of grant monies from the State of California in accordance with AB3229 and AB1913.
Local Law Enforcement Block Grant Fund - To account for monies received and expended by the City as a participant in the Federal Local Law Enforcement Block Grant program.
Community Development Block Grant ("CDBG") Fund - To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant Housing Program.
Traffic Safety Fund - Accounts for revenues received under the Traffic Safety Proposition 1B. These funds are used for improvements to City streets.
Neighborhood Stabilization Fund - To account for monies received by the City as participant in the Neighborhood Stabilization Program 3 (NSP3), which was created by Title XII of the American Recovery and Reinvestment Act of 2009 (ARRA). This program is funded by the Federal Department of Housing & Urban Development (HUD).
Neighborhood Stabilization Fund - Program Income Fund - To account for monies received and expended by the City as a participant in the Housing and Economic Recovery Act of 2008.
Measure I Fund - To account for revenues and expenditures of money received from San Bernardino Associated Government (SANBAG) of a voter approved sales tax override allocated to cities within the County on a population basis. These funds are used for maintenance and construction of City streets.
Brownfield Clean Up Grant Fund - To account for grant revenues and expenditures related to the environmental assessment, cleanup, and redevelopment of brownfield sites in accordance with federal and state grant requirements.
Fire Grant Fund - To account for monies received and expended by the Fire Department for various Grants.
Fire Ground Emergency Transportation Fund - To account for Ground Emergency Medical Transportation revenues and expenditures used to support the Fire Department Emergency Medical Services program capital needs.
Cal Home Fund - To account for City of Rialto's housing improvement or ownership programs for low to moderate income households. The funds may include grants or funding resources received from other government agencies to implement such programs.
Housing Authority Fund - To account for various housing programs, which include, acquisitions of residential properties, rehabilitations, management of residential units, and exercise of condemnation powers. In addition, the Authority serves as the Housing Successor Fund.
Public, Educational, and Governmental (PEG) Fees Fund - To account for the Public, Educational, or Governmental access franchise fee activity.
Transportation Development Act (TDA) Fund - To account for revenues received under the Transportation Development Act.
These funds are used for improvements to City streets.
126
Street Medians Development Fund - Accounts for development fees collected and used for street median improvements.
Special Deposits Fund - To account for deposits received from developers, contractors, or other parties that are held by the City for specific purposes, such as guarantees, performance deposits, or other refundable deposits, until the related conditions are satisfied.
Confiscated Funds - To account for monies received through law enforcement asset forfeitures and seizures, which are restricted for use in law enforcement activities in accordance with applicable laws and regulations.
Local Drainage Fund - To account for development fees collected and used for the installation of storm drains and flood control facilities.
Police Station Debt Service - To accumulate funds for the payment of principal and interest on debt issued for the construction and improvement of the City’s police station facilities.
DEBT SERVICE FUNDS
Capital Projects Funds are used to account for the acquisition or construction of major capital facilities. Capital project appropriations are for the life of the project. Funds included are:
Debt Service Funds account for the payment of principal and interest on general long-term debt of the City. Funds included are:
NONMAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE FUNDS (Continued)
CAPITAL PROJECTS FUNDS
Fair Share Agreement Fund - Accounts for income received to fund expenditures related to City infrastructure and development improvements.
2005 TABs Fund - To account for the proceeds of the 2005 TABS and the expenditure of such funds for improvement, reconstruction and redevelopment projects within the specified boundaries of the Rialto Redevelopment Agency as a result of the Bond Proceeds Expenditure Agreement between the City and the Agency. 2008 TABs Fund - To account for the proceeds of the 2008 TABS and the expenditure of such funds for improvement, reconstruction and redevelopment projects within the specified boundaries of the Rialto Redevelopment Agency as a result of the Bond Proceeds Expenditure Agreement between the City and the Agency. 1997 COP Fund - To accumulate funds for the payment of principal and interest on the 1997 Refunding Certificates of Participation.
127
Street
Transportation Lighting and Landscape
Enhancement Landscape and Lighting Traffic
Gas Tax Activities Maintenance District Development
Fund Fund Fund No. 2 Fund Fund
ASSETS
Cash and investments 8,100,260 $ 197,199 $ 675,140 $ 975,582 $ 32,984,422 $ Accounts receivable, net 53,761 - - 8,920 28,264 Due from other governments 519,185 - 11,724 5,947 - Notes and loans receivable - - - - - Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 8,673,206 197,199 686,864 990,449 33,012,686
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 184,940 - 226,389 108,700 214,164 Accrued liabilities 43 - 2,918 5,018 - Deposits payable - - - - - Due to other funds 687,610 - 697,769 - - Unearned revenues - - - - - Total liabilities 872,593 - 927,076 113,718 214,164 Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund balances:
Restricted 7,800,613 197,199 - 876,731 32,798,522 Unassigned (deficit) - - (240,212) - - Total fund balances 7,800,613 197,199 (240,212) 876,731 32,798,522 Total liabilities, deferred inflows of
resources and fund balances 8,673,206$ 197,199 $ 686,864 $ 990,449 $ 33,012,686 $ Nonmajor Governmental Funds
June 30, 2025
Combining Balance Sheet
City of Rialto
Special Revenue Funds
128
General
Office of Retirement American Open Space Facilities
Traffic Tax Rescue Plan Development Development
Safety Fund Fund Act Fund Fund Fund
ASSETS
Cash and investments 230,988 $ 1 $ 3,890$ 2,891,719$ 5,052,969 $ Accounts receivable, net 47,794 - - 11,141 14,928 Due from other governments 4,792 76 - - - Notes and loans receivable - - - - - Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 283,574 77 3,890 2,902,860 5,067,897
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - - - - - Accrued liabilities 33,321 - - - - Deposits payable - - - - - Due to other funds - - - - - Unearned revenues 3,126 - - - - Total liabilities 36,447 - - - - Deferred inflows of resources:
Unavailable revenues
- - - - - Total deferred inflows of resources - - - - - Fund balances:
Restricted 247,127 77 3,890 2,902,860 5,067,897 Unassigned (deficit) - - - - - Total fund balances 247,127 77 3,890 2,902,860 5,067,897 Total liabilities, deferred inflows of
resources and fund balances 283,574$ 77$ 3,890$ 2,902,860$ 5,067,897$ Nonmajor Governmental Funds
June 30, 2025
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds
129
Library
Facilities Major Grant Police Fire Waste
Development Funding Development Development Management
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 474,499 $ 12,214,053 $ 4,134,289 $ 1,620,327 $ 7,378,012 $ Accounts receivable, net 2,672 1,915,183 10,592 7,792 79,579 Due from other governments - 199,623 - - - Notes and loans receivable - - - - - Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 477,171 14,328,859 4,144,881 1,628,119 7,457,591
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - 385,050 - 502 20,764 Accrued liabilities - 14 - - 18,373 Deposits payable - - - - - Due to other funds - - - - - Unearned revenues - - - - - Total liabilities - 385,064 - 502 39,137 Deferred inflows of resources:
Unavailable revenues
- 1,864,500 - - - Total deferred inflows of resources - 1,864,500 - - - Fund balances:
Restricted 477,171 12,079,295 4,144,881 1,627,617 7,418,454 Unassigned (deficit) - - - - - Total fund balances 477,171 12,079,295 4,144,881 1,627,617 7,418,454 Total liabilities, deferred inflows of
resources and fund balances 477,171$ 14,328,859$ 4,144,881$ 1,628,119$ 7,457,591$ Nonmajor Governmental Funds
June 30, 2025
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds
130
South Coast
Air Quality Community Citizens
Management Asset Police Services Option
(SCAQMD) Forfeiture Grants Grant for Public
Fund Fund Fund Fund Safety Fund
ASSETS
Cash and investments 1,147,104 $ 3,616,770 $ 67,566 $ 1 $ 544,505$ Accounts receivable, net - - 47,654 14,865 - Due from other governments 35,886 - 30,869 - - Notes and loans receivable - - - - - Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 1,182,990 3,616,770 146,089 14,866 544,505
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - 15,000 - - - Accrued liabilities 2,832 - - - - Deposits payable - - - - - Due to other funds - - - 23,970 - Unearned revenues - - 2,904 - - Total liabilities 2,832 15,000 2,904 23,970 - Deferred inflows of resources:
Unavailable revenues
35,886 - 85,113 - - Total deferred inflows of resources 35,886 - 85,113 - - Fund balances:
Restricted 1,144,272 3,601,770 58,072 - 544,505 Unassigned (deficit) - - - (9,104) - Total fund balances 1,144,272 3,601,770 58,072 (9,104) 544,505 Total liabilities, deferred inflows of
resources and fund balances 1,182,990$ 3,616,770$ 146,089$ 14,866$ 544,505$ Nonmajor Governmental Funds
June 30, 2025
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds
131
Neighborhood
Local Law Stabilization
Enforcement Traffic Neighborhood Program -
Block Grant CDBG Safety Stabilization Program
Fund Fund Fund Fund Income Fund
ASSETS
Cash and investments 85,761 $ 2 $ 456 $ - $ 1,257,644$ Accounts receivable, net - - - - - Due from other governments - 217,003 - - - Notes and loans receivable - - - - - Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 85,761 217,005 456 - 1,257,644
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - 77,212 - - - Accrued liabilities - - - - - Deposits payable - - - - - Due to other funds - 197,915 - 35,670 - Unearned revenues 82,617 - - - - Total liabilities 82,617 275,127 - 35,670 - Deferred inflows of resources:
Unavailable revenues - 217,003 - - - Total deferred inflows of resources - 217,003 - - - Fund balances:
Restricted 3,144 456 - 1,257,644 Unassigned (deficit) - (275,125) - (35,670) - Total fund balances 3,144 (275,125) 456 (35,670) 1,257,644 Total liabilities, deferred inflows of
resources and fund balances 85,761$ 217,005$ 456$ -$ 1,257,644$ Nonmajor Governmental Funds
June 30, 2025
Combining Balance Sheet (Continued)
City of Rialto
Special Revenue Funds
132
Brownfield Fire Ground
Clean Up Emergency
Measure I Grant Fire Grant Transportation Cal Home
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 4,520,680$ 17,296$ -$ 13,789,439$ 1,960,815$ Accounts receivable, net 87,719 - - - 150 Due from other governments 499,798 - - 217,959 20,909 Notes and loans receivable - - - - 982,043 Prepaid items - - - 2,905,543 - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 5,108,197 17,296 - 16,912,941 2,963,917
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 1,326,784 - - 431,915 13,044 Accrued liabilities 4,206 - - 9,681 - Deposits payable - - - - - Due to other funds 102,295 - 100,878 - 17,432 Unearned revenues - - 108,612 - - Total liabilities 1,433,285 - 209,490 441,596 30,476 Deferred inflows of resources:
Unavailable revenues
248,146 - - - 20,909 Total deferred inflows of resources 248,146 - - - 20,909 Fund balances:
Restricted 3,426,766 17,296 - 16,471,345 2,912,532 Unassigned (deficit) - - (209,490) - - Total fund balances 3,426,766 17,296 (209,490) 16,471,345 2,912,532 Total liabilities, deferred inflows of
resources and fund balances 5,108,197$ 17,296$ -$ 16,912,941$ 2,963,917$ Nonmajor Governmental Funds
June 30, 2025
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds
133
Public,
Educational, and Transportation Street
Housing Governmental Development Medians Special
Authority (PEG) Fees Act (TDA) Development Deposits
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 2,479,301 $ 333,578 $ - $ 221,797$ 38,490 $ Accounts receivable, net 86,035 18,539 542,292 432 3,661 Due from other governments - - - - 76,445 Notes and loans receivable 827,208 - - - 29,926 Prepaid items - - - - - Land held for resale 970,400 - - - - Restricted assets:
Cash and investments - - - - 1,495,821 Cash with fiscal agents - - - - - Total assets 4,362,944 352,117 542,292 222,229 1,644,343
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 912 70,213 521,310 - 736,104 Accrued liabilities - - - - 10,117 Deposits payable 10,000 - - - 354,482 Due to other funds - - 810,030 - 379,774 Unearned revenues - - - - 163,866 Total liabilities 10,912 70,213 1,331,340 - 1,644,343 Deferred inflows of resources:
Unavailable revenues
- - 542,292 - - Total deferred inflows of resources - - 542,292 - - Fund balances:
Restricted 4,352,032 281,904 - 222,229 - Unassigned (deficit) - - (1,331,340) - - Total fund balances 4,352,032 281,904 (1,331,340) 222,229 - Total liabilities, deferred inflows of
resources and fund balances 4,362,944$ 352,117$ 542,292$ 222,229$ 1,644,343$ June 30, 2025
Nonmajor Governmental Funds
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds
134
Local Fair Share
Confiscated Drainage Agreement 2005 TABs 2008 TABs
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 372,624 $ 33,608,059 $ 6,983,137 $ 1,094,347 $ 611,424 $ Accounts receivable, net - 33,935 6,729 - - Due from other governments - - - - - Notes and loans receivable - - - - 2,522,477 Prepaid items - - - - - Land held for resale - - - - - Restricted assets:
Cash and investments - - - - - Cash with fiscal agents - - - - - Total assets 372,624 33,641,994 6,989,866 1,094,347 3,133,901
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - 268,637 - 255,481 - Accrued liabilities - - - - - Deposits payable 372,624 - - - - Due to other funds - - - - - Unearned revenues - - - - - Total liabilities 372,624 268,637 - 255,481 - Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund balances:
Restricted - 33,373,357 6,989,866 838,866 3,133,901 Unassigned (deficit) - - - - - Total fund balances - 33,373,357 6,989,866 838,866 3,133,901 Total liabilities, deferred inflows of
resources and fund balances 372,624$ 33,641,994$ 6,989,866$ 1,094,347$ 3,133,901$ June 30, 2025
Nonmajor Governmental Funds
City of Rialto
Combining Balance Sheet (Continued)
Special Revenue Funds Capital Projects Funds
135
Total
Nonmajor
1997 COP Police Station Governmental
Fund Debt Service Funds
ASSETS
Cash and investments 578,243 $ - $ 150,262,389$ Accounts receivable, net - - 3,022,637 Due from other governments - - 1,840,216 Notes and loans receivable - - 4,361,654 Prepaid items - - 2,905,543 Land held for resale - - 970,400 Restricted assets:
Cash and investments - - 1,495,821 Cash with fiscal agents - 200 200 Total assets 578,243 200 164,858,860
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - 1,750 4,858,871 Accrued liabilities - - 86,523 Deposits payable - - 737,106 Due to other funds - 4,153,837 7,207,180 Unearned revenues - - 361,125 Total liabilities - 4,155,587 13,250,805 Deferred inflows of resources:
Unavailable revenues - - 3,013,849 Total deferred inflows of resources - - 3,013,849 Fund balances:
Restricted 578,243 - 154,850,534 Unassigned (deficit) - (4,155,387) (6,256,328) Total fund balances 578,243 (4,155,387) 148,594,206 Total liabilities, deferred inflows of
resources and fund balances 578,243$ 200$ 164,858,860$ Debt Service Funds
June 30, 2025
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
City of Rialto
136
Street
Transportation Lighting and Landscape
Enhancement Landscape and Lighting Traffic
Gas Tax Activities Maintenance District Development
Fund Fund Fund No. 2 Fund Fund
REVENUES:
Taxes - $ - $ 1,412,710$ 1,125,491 $ - $ Intergovernmental 6,135,913 - - - - Charges for services - - - 30,000 - Use of money and property 249,178 - 24,644 26,570 1,194,508 Developer participation - - - - 2,485,970 Miscellaneous - - - - - Total revenues 6,385,091 - 1,437,354 1,182,061 3,680,478 EXPENDITURES:
Current:
General government - - - 375,105 74 Public safety - - - - - Community development 105,053 - 2,466,902 769,614 - Capital outlay 5,621,413 - - - 2,605,983 Debt service:
Principal - - 199,868 24,703 - Interest and fiscal charges - - 79,624 9,841 - Total expenditures 5,726,466 - 2,746,394 1,179,263 2,606,057
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 658,625 - (1,309,040) 2,798 1,074,421 OTHER FINANCING SOURCES:
Transfers in - - 69,430 - - Transfers out (911,580) - (75) (75) (45,620) Issuance of debt - - - - - Total other financing sources (911,580) - 69,355 (75) (45,620) NET CHANGES IN FUND BALANCES (252,955) - (1,239,685) 2,723 1,028,801 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 8,053,568 197,199 999,473 874,008 31,769,721 Error correction - - - - - Beginning of year, as restated (Note 16) 8,053,568 197,199 999,473 874,008 31,769,721 End of year 7,800,613$ 197,199$ (240,212)$ 876,731$ 32,798,522$ Nonmajor Governmental Funds
For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
137
General
Office of Retirement American Open Space Facilities
Traffic Tax Rescue Plan Development Development
Safety Fund Fund Act Fund Fund
REVENUES:
Taxes - $ 116 $ - $ - $ - $ Intergovernmental 501,339 - - - - Charges for services 72,844 - - - - Use of money and property - - 1,893 81,593 145,149 Developer participation - - - 337,074 539,369 Miscellaneous - - - - - Total revenues 574,183 116 1,893 418,667 684,518 EXPENDITURES:
Current:
General government - - - - - Public safety 383,956 - - - - Community development - - - - - Capital outlay 164,216 - - - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 548,172 - - - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 26,011 116 1,893 418,667 684,518 OTHER FINANCING SOURCES:
Transfers in
- - - - - Transfers out - (200) - (4,350) - Issuance of debt - - - - - Total other financing sources - (200) - (4,350) - NET CHANGES IN FUND BALANCES 26,011 (84) 1,893 414,317 684,518 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 221,116 161 1,997 2,488,543 4,383,379 Error correction - - - - - Beginning of year, as restated (Note 16) 221,116 161 1,997 2,488,543 4,383,379 End of year 247,127$ 77$ 3,890$ 2,902,860$ 5,067,897$ City of Rialto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
138
Library
Facilities Major Grant Police Fire Waste
Development Funding Development Development Management
Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ Intergovernmental - 5,077,576 - - 41,059 Charges for services 98,351 - - - 1,084,543 Use of money and property 12,759 - 119,716 43,794 227,773 Developer participation - - 403,477 294,908 - Miscellaneous - - - - 25,899 Total revenues 111,110 5,077,576 523,193 338,702 1,379,274 EXPENDITURES:
Current:
General government - 26,850 - - - Public safety - 55 - - - Community development - 177 - - 636,165 Capital outlay - 2,872,401 - 5,106 254,270 Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures - 2,899,483 - 5,106 890,435
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 111,110 2,178,093 523,193 333,596 488,839 OTHER FINANCING SOURCES:
Transfers in
- 986,033 - - - Transfers out - - - (10) (18,750) Issuance of debt - - - - - Total other financing sources - 986,033 - (10) (18,750) NET CHANGES IN FUND BALANCES 111,110 3,164,126 523,193 333,586 470,089 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 366,061 8,915,169 3,621,688 1,294,031 6,948,365 Error correction - - - - - Beginning of year, as restated (Note 16) 366,061 8,915,169 3,621,688 1,294,031 6,948,365 End of year 477,171$ 12,079,295$ 4,144,881$ 1,627,617$ 7,418,454$ City of Rialto
For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Special Revenue Funds
139
South Coast
Air Quality Community Citizens
Management Asset Police Services Option
(SCAQMD) Forfeiture Grants Grant for Public
Fund Fund Fund Fund Safety Fund
REVENUES:
Taxes - $ - $ - $ - $ - $ Intergovernmental 380,691 65,016 398,407 193,449 311,000 Charges for services - - - - - Use of money and property 27,784 118,140 - - 24,422 Developer participation - - - 20 - Miscellaneous - - - - - Total revenues 408,475 183,156 398,407 193,469 335,422 EXPENDITURES:
Current:
General government - - - - - Public safety - 158,601 40,635 - 45,992 Community development 50,156 - - - - Capital outlay - 315,405 23,153 - 1,309,040 Debt service:
Principal - - - - 145,500 Interest and fiscal charges - - - - - Total expenditures 50,156 474,006 63,788 - 1,500,532
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 358,319 (290,850) 334,619 193,469 (1,165,110) OTHER FINANCING SOURCES:
Transfers in - - - - - Transfers out (6,750) - - - - Issuance of debt - - - - 694,440 Total other financing sources (6,750) - - - 694,440 NET CHANGES IN FUND BALANCES 351,569 (290,850) 334,619 193,469 (470,670) FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 792,703 3,892,620 (276,547) (202,573) 1,015,175 Error correction - - - - - Beginning of year, as restated (Note 16) 792,703 3,892,620 (276,547) (202,573) 1,015,175 End of year 1,144,272$ 3,601,770$ 58,072$ (9,104)$ 544,505$ City of Rialto
For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Special Revenue Funds
140
Neighborhood
Local Law Stabilization
Enforcement Traffic Neighborhood Program -
Block Grant CDBG Safety Stabilization Program
Fund Fund Fund Fund Income Fund
REVENUES:
Taxes - $ - $ - $ - $ - $ Intergovernmental 27,788 2,316,963 - - - Charges for services - - - - - Use of money and property - - 14 - 38,944 Developer participation - - - - - Miscellaneous - - - - - Total revenues 27,788 2,316,963 14 - 38,944 EXPENDITURES:
Current:
General government - 487,716 - - - Public safety 20,466 - - - - Community development - 49 - - - Capital outlay 7,322 1,770,724 - - - Debt service:
Principal - 177,000 - - - Interest and fiscal charges - 78,597 - - - Total expenditures 27,788 2,514,086 - - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (197,123) 14 - 38,944 OTHER FINANCING SOURCES:
Transfers in - - - - - Transfers out - - - - - Issuance of debt - - - - Total other financing sources - - - - - NET CHANGES IN FUND BALANCES - (197,123) 14 - 38,944 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 3,144 (78,002) 442 (35,670) 1,218,700 Error correction - - - - - Beginning of year, as restated (Note 16) 3,144 (78,002) 442 (35,670) 1,218,700 End of year 3,144$ (275,125)$ 456$ (35,670)$ 1,257,644$ For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
Special Revenue Funds
141
Brownfield Fire Ground
Clean Up Emergency
Measure I Grant Fire Grant Transportation Cal Home
Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ Intergovernmental 2,560,726 - - 5,798,000 16,538 Charges for services - - - - - Use of money and property 139,924 - - - 60,700 Developer participation - - - - - Miscellaneous - - - - 3,565 Total revenues 2,700,650 - - 5,798,000 80,803 EXPENDITURES:
Current:
General government - - - - 37,449 Public safety - - - 4,414,566 - Community development 20,822 - - - - Capital outlay 4,505,190 - - 1,243,391 - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 4,526,012 - - 5,657,957 37,449
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,825,362) - - 140,043 43,354 OTHER FINANCING SOURCES:
Transfers in
- - - 65,826 - Transfers out (6,230) - - (224,623) (2,660) Issuance of debt - - - - Total other financing sources (6,230) - - (158,797) (2,660) NET CHANGES IN FUND BALANCES (1,831,592) - - (18,754) 40,694 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 5,258,358 17,296 (209,490) 16,490,099 1,889,793 Error correction - - - - 982,045 Beginning of year, as restated (Note 16) 5,258,358 17,296 (209,490) 16,490,099 2,871,838 End of year 3,426,766$ 17,296$ (209,490)$ 16,471,345$ 2,912,532$ For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) City of Rialto
Special Revenue Funds
142
Public,
Educational, and Transportation Street
Housing Governmental Development Medians Special
Authority (PEG) Fees Act (TDA) Development Deposits
Fund Fund Fund Fund Fund
REVENUES:
Taxes - $ 80,056$ - $ - $ - $ Intergovernmental - - 230,957 - - Charges for services - - - 29,862 - Use of money and property 73,977 13,089 827 9,953 - Developer participation - - - - - Miscellaneous 146,363 - - - - Total revenues 220,340 93,145 231,784 39,815 - EXPENDITURES:
Current:
General government 4,536 167,957 - - - Public safety - - - - - Community development - - - - - Capital outlay - 126,167 1,643,385 207,399 - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 4,536 294,124 1,643,385 207,399 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 215,804 (200,979) (1,411,601) (167,584) - OTHER FINANCING SOURCES:
Transfers in - - - - - Transfers out (2,500) - (60) (2,400) - Issuance of debt - - - - - Total other financing sources (2,500) - (60) (2,400) - NET CHANGES IN FUND BALANCES 213,304 (200,979) (1,411,661) (169,984) - FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 3,209,471 482,883 80,321 392,213 - Error correction 929,257 - - - - Beginning of year, as restated (Note 16) 4,138,728 482,883 80,321 392,213 - End of year 4,352,032 $ 281,904 $ (1,331,340)$ 222,229 $ - $ Nonmajor Governmental Funds
For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Special Revenue Funds
143
Local Fair Share
Confiscated Drainage Agreement 2005 TABs 2008 TABs
Fund Fund Fund Fund Fund
REVENUES:
Taxes - $ - $ - $ - $ - $ Intergovernmental - - - - - Charges for services - - - - - Use of money and property - 994,452 221,929 33,887 18,933 Developer participation - 1,908,944 482,648 - - Miscellaneous - - - - - Total revenues - 2,903,396 704,577 33,887 18,933 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Community development - 39 - - - Capital outlay - 453,226 545,664 - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures - 453,265 545,664 - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 2,450,131 158,913 33,887 18,933 OTHER FINANCING SOURCES:
Transfers in
- - - - - Transfers out - (19,030) - - - Issuance of debt - - - - - Total other financing sources - (19,030) - - - NET CHANGES IN FUND BALANCES - 2,431,101 158,913 33,887 18,933 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported - 30,942,256 6,830,953 804,979 3,114,968 Error correction - - - - - Beginning of year, as restated (Note 16) - 30,942,256 6,830,953 804,979 3,114,968 End of year -$ 33,373,357$ 6,989,866$ 838,866$ 3,133,901$ For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) City of Rialto
Special Revenue Funds Capital Projects Funds
144
Total
Nonmajor
1997 COP Police Station Governmental
Fund Debt Service Funds
REVENUES:
Taxes -$ -$ 2,618,373$ Intergovernmental - - 24,055,422 Charges for services - - 1,315,600 Use of money and property 6,458 - 3,911,010 Developer participation - - 6,452,410 Miscellaneous - - 175,827 Total revenues 6,458 - 38,528,642 EXPENDITURES:
Current:
General government - - 1,099,687 Public safety - 4,500 5,068,771 Community development - - 4,048,977 Capital outlay - - 23,673,455 Debt service:
Principal - - 547,071 Interest and fiscal charges - 2,868,175 3,036,237 Total expenditures - 2,872,675 37,474,198
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,458 (2,872,675) 1,054,444 OTHER FINANCING SOURCES:
Transfers in - - 1,121,289 Transfers out - - (1,244,913) Issuance of debt - - 694,440 Total other financing sources - - 570,816 NET CHANGES IN FUND BALANCES 6,458 (2,872,675) 1,625,260 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 571,785 (1,282,712) 145,057,644 Error correction - - 1,911,302 Beginning of year, as restated (Note 16) 571,785 (1,282,712) 146,968,946 End of year 578,243$ (4,155,387)$ 148,594,206 $ Debt Service Funds
City of Rialto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
145
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 5,526,041$ 5,526,041$ 6,135,913$ 609,872$ Use of money and property 102,100 102,100 249,178 147,078 Total revenues 5,628,141 5,628,141 6,385,091 756,950 EXPENDITURES:
Current:
Community development 200,000 200,000 105,053 94,947 Capital outlay 5,850,000 15,371,301 5,621,413 9,749,888 Total expenditures 6,050,000 15,571,301 5,726,466 9,844,835
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (421,859) (9,943,160) 658,625 10,601,785 OTHER FINANCING (USES):
Transfers out (11,580) (2,551,449) (911,580) 1,639,869 Total other financing (uses) (11,580) (2,551,449) (911,580) 1,639,869 NET CHANGE IN FUND BALANCE (433,439)$ (12,494,609)$ (252,955) 12,241,654$ FUND BALANCE:
Beginning of year 8,053,568
End of year 7,800,613$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
146
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 1,399,664$ 1,399,664$ 1,412,710$ 13,046$ Use of money and property 7,700 7,700 24,644 16,944 Total revenues 1,407,364 1,407,364 1,437,354 29,990 EXPENDITURES:
Current:
Community development 2,267,758 2,267,683 2,466,902 (199,219) Debt service:
Principal 199,871 199,871 199,868 3 Interest and fiscal charges 79,621 79,621 79,624 (3) Total expenditures 2,547,250 2,547,175 2,746,394 (199,219)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,139,886) (1,139,811) (1,309,040) (169,229) OTHER FINANCING SOURCES (USES):
Transfers in 69,430 69,430 69,430 - Transfers out - (75) (75) - Total other financing sources (uses) 69,430 69,355 69,355 - NET CHANGE IN FUND BALANCE (1,070,456)$ (1,070,456)$ (1,239,685) (169,229)$ FUND BALANCE (DEFICIT):
Beginning of year 999,473
End of year (240,212)$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting & Landscape Maintenance Special Revenue Fund For the Year Ended June 30, 2025
147
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 1,116,449$ 1,116,449$ 1,125,491$ 9,042$ Charges for services 50,000 50,000 30,000 (20,000) Use of money and property 4,900 4,900 26,570 21,670 Total revenues 1,171,349 1,171,349 1,182,061 10,712 EXPENDITURES:
Current:
General government 290,724 290,724 375,105 (84,381) Community development 1,176,074 1,175,999 769,614 406,385 Debt service:
Principal 24,704 24,704 24,703 1 Interest and fiscal charges 9,841 9,841 9,841 - Total expenditures 1,501,343 1,501,268 1,179,263 322,005
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (329,994) (329,919) 2,798 332,717 OTHER FINANCING (USES):
Transfers out - (75) (75) - Total other financing (uses) - (75) (75) - NET CHANGE IN FUND BALANCE (329,994)$ (329,994)$ 2,723 332,717$ FUND BALANCE:
Beginning of year 874,008
End of year 876,731$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Landscape & Lighting District No. 2 Special Revenue Fund For the Year Ended June 30, 2025
148
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 312,800$ 312,800$ 1,194,508$ 881,708$ Developer participation 1,600,000 1,600,000 2,485,970 885,970 Total revenues 1,912,800 1,912,800 3,680,478 1,767,678 EXPENDITURES:
Current:
General government - - 74 (74) Capital outlay - 21,517,989 2,605,983 18,912,006 Total expenditures - 21,517,989 2,606,057 18,911,932
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,912,800 (19,605,189) 1,074,421 20,679,610 OTHER FINANCING (USES):
Transfers out (45,620) (45,620) (45,620) - Total other financing (uses) (45,620) (45,620) (45,620) - NET CHANGE IN FUND BALANCE 1,867,180$ (19,650,809)$ 1,028,801 20,679,610$ FUND BALANCE:
Beginning of year 31,769,721
End of year 32,798,522$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Development Special Revenue Fund
For the Year Ended June 30, 2025
149
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ 445,000$ 501,339$ 56,339$ Charges for services 150,000 150,000 72,844 (77,156) Total revenues 150,000 595,000 574,183 (20,817) EXPENDITURES:
Current:
Public Safety 50,000 640,120 383,956 256,164 Capital outlay 168,000 305,998 164,216 141,782 Total expenditures 218,000 946,118 548,172 397,946 NET CHANGE IN FUND BALANCE (68,000)$ (351,118)$ 26,011 377,129$ FUND BALANCE:
Beginning of year 221,116
End of year 247,127$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Office of Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2025
150
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes -$ -$ 116$ 116$ Total revenues - - 116 116
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - 116 116 OTHER FINANCING (USES):
Transfers out (200) (200) (200) - Total other financing (uses) (200) (200) (200) - NET CHANGE IN FUND BALANCE (200)$ (200)$ (84) 116$ FUND BALANCE:
Beginning of year 161
End of year 77$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Retirement Tax Special Revenue Fund
For the Year Ended June 30, 2025
151
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 25,900$ 25,900$ 81,593$ 55,693$ Developer participation 75,000 75,000 337,074 262,074 Total revenues 100,900 100,900 418,667 317,767
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 100,900 100,900 418,667 317,767 OTHER FINANCING (USES):
Transfers out (4,350) (4,350) (4,350) - Total other financing (uses) (4,350) (4,350) (4,350) - NET CHANGE IN FUND BALANCE 96,550$ 96,550$ 414,317 317,767$ FUND BALANCE:
Beginning of year 2,488,543
End of year 2,902,860$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Open Space Development Special Revenue Fund
For the Year Ended June 30, 2025
152
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 35,700$ 35,700$ 145,149$ 109,449$ Developer participation 400,000 400,000 539,369 139,369 Total revenues 435,700 435,700 684,518 248,818 NET CHANGE IN FUND BALANCE 435,700$ 435,700$ 684,518 248,818$ FUND BALANCE:
Beginning of year 4,383,379
End of year 5,067,897$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Facilities Development Special Revenue Fund
For the Year Ended June 30, 2025
153
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 50,000$ 50,000$ 98,351$ 48,351$ Use of money and property 1,400 1,400 12,759 11,359 Total revenues 51,400 51,400 111,110 59,710 NET CHANGE IN FUND BALANCE 51,400$ 51,400$ 111,110 59,710$ FUND BALANCE:
Beginning of year 366,061
End of year 477,171$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Facilities Development Special Revenue Fund
For the Year Ended June 30, 2025
154
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 1,544,000$ 2,900,732$ 5,077,576$ 2,176,844$ Total revenues 1,544,000 2,900,732 5,077,576 2,176,844 EXPENDITURES:
Current:
General government 20,000 225,742 26,850 198,892 Public safety - 493,707 55 493,652 Community development - - 177 (177) Capital outlay 124,000 18,482,434 2,872,401 15,610,033 Total expenditures 144,000 19,201,883 2,899,483 16,302,400
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,400,000 (16,301,151) 2,178,093 18,479,244 OTHER FINANCING SOURCES:
Transfers in - 995,557 986,033 (9,524) Total other financing sources - 995,557 986,033 (9,524) NET CHANGE IN FUND BALANCE 1,400,000$ (15,305,594)$ 3,164,126 18,469,720$ FUND BALANCE:
Beginning of year 8,915,169
End of year 12,079,295$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Grant Funding Special Revenue Fund
For the Year Ended June 30, 2025
155
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 28,300$ 28,300$ 119,716$ 91,416$ Developer participation 330,000 330,000 403,477 73,477 Total revenues 358,300 358,300 523,193 164,893 NET CHANGE IN FUND BALANCE 358,300$ 358,300$ 523,193$ 164,893$ FUND BALANCE:
Beginning of year 3,621,688
End of year 4,144,881$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Development Special Revenue Fund
For the Year Ended June 30, 2025
156
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 5,700$ 5,700$ 43,794$ 38,094$ Developer participation 250,000 250,000 294,908 44,908 Total revenues 255,700 255,700 338,702 83,002 EXPENDITURES:
Current:
Capital outlay - 472,685 5,106 467,579 Total expenditures - 472,685 5,106 467,579
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 255,700 (216,985) 333,596 550,581 OTHER FINANCING (USES):
Transfers out (10) (10) (10) - Total other financing (uses) (10) (10) (10) - NET CHANGE IN FUND BALANCE 255,690$ (216,995)$ 333,586 550,581$ FUND BALANCE:
Beginning of year 1,294,031
End of year 1,627,617$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Fire Development Special Revenue Fund
For the Year Ended June 30, 2025
157
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 40,715$ 40,715$ 41,059$ 344$ Charges for services 788,191 788,191 1,084,543 296,352 Use of money and property 130,700 130,700 227,773 97,073 Miscellaneous 16,000 16,000 25,899 9,899 Total revenues 975,606 975,606 1,379,274 403,668 EXPENDITURES:
Current:
Community development 730,883 757,309 636,165 121,144 Capital outlay - 1,097,574 254,270 843,304 Total expenditures 730,883 1,854,883 890,435 964,448
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 244,723 (879,277) 488,839 1,368,116 OTHER FINANCING (USES):
Transfers out (18,750) (18,750) (18,750) - Total other financing (uses) (18,750) (18,750) (18,750) - NET CHANGE IN FUND BALANCE 225,973$ (898,027)$ 470,089 1,368,116$ FUND BALANCE:
Beginning of year 6,948,365
End of year 7,418,454$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Waste Management Special Revenue Fund
For the Year Ended June 30, 2025
158
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 135,000$ 135,000$ 380,691$ 245,691$ Use of money and property 7,100 7,100 27,784 20,684 Total revenues 142,100 142,100 408,475 266,375 EXPENDITURES:
Current:
Community development 60,988 60,988 50,156 10,832 Capital outlay - 437,841 - 437,841 Total expenditures 60,988 498,829 50,156 448,673
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 81,112 (356,729) 358,319 715,048 OTHER FINANCING (USES):
Transfers out (6,750) (6,750) (6,750) - Total other financing (uses) (6,750) (6,750) (6,750) - NET CHANGE IN FUND BALANCE 74,362$ (363,479)$ 351,569 715,048$ FUND BALANCE:
Beginning of year 792,703
End of year 1,144,272$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual South Coast Air Quality Management (SCAQMD) Special Revenue Fund For the Year Ended June 30, 2025
159
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ -$ 65,016$ 65,016$ Use of money and property 26,100 26,100 118,140 92,040 Total revenues 26,100 26,100 183,156 157,056 EXPENDITURES:
Current:
Public safety 450,746 530,145 158,601 371,544 Capital outlay 600,000 1,054,525 315,405 739,120 Total expenditures 1,050,746 1,584,670 474,006 1,110,664 NET CHANGE IN FUND BALANCE (1,024,646)$ (1,558,570)$ (290,850) 1,267,720$ FUND BALANCE:
Beginning of year 3,892,620
End of year 3,601,770$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2025
160
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ 39,131$ 398,407$ 359,276$ Total revenues - 39,131 398,407 359,276 EXPENDITURES:
Current:
Public safety 77,926 225,304 40,635 184,669 Capital outlay - 23,153 23,153 - Total expenditures 77,926 248,457 63,788 184,669 NET CHANGE IN FUND BALANCE (77,926)$ (209,326)$ 334,619 543,945$ FUND BALANCE (DEFICIT):
Beginning of year (276,547)
End of year 58,072$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Grants Special Revenue Fund
For the Year Ended June 30, 2025
161
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ 1,630,450$ 193,449$ (1,437,001)$ Developer participation - - 20 20 Total revenues - 1,630,450 193,469 (1,436,981) EXPENDITURES:
Current:
Community development - 10,000 - 10,000 Capital outlay - 1,617,950 - 1,617,950 Total expenditures - 1,627,950 - 1,627,950 NET CHANGE IN FUND BALANCE -$ 2,500$ 193,469 190,969$ FUND BALANCE (DEFICIT):
Beginning of year (202,573)
End of year (9,104)$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Services Grant Special Revenue Fund
For the Year Ended June 30, 2025
162
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 4,500$ 315,334$ 311,000$ (4,334)$ Use of money and property 5,500 5,500 24,422 18,922 Total revenues 10,000 320,834 335,422 14,588 EXPENDITURES:
Current:
Public safety 343,060 279,677 45,992 233,685 Capital outlay - 1,105,236 1,309,040 (203,804) Debt service:
Principal - - 145,500 (145,500) Total expenditures 343,060 1,384,913 1,500,532 (115,619)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (333,060) (1,064,079) (1,165,110) (101,031) OTHER FINANCING SOURCES:
Issuance of debt - - 694,440 694,440 Total other financing sources - - 694,440 694,440 NET CHANGE IN FUND BALANCE (333,060)$ (1,064,079)$ (470,670) 593,409$ FUND BALANCE:
Beginning of year 1,015,175
End of year 544,505$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Citizens Option Public Safety Special Revenue Fund
For the Year Ended June 30, 2025
163
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ 36,200$ 27,788$ (8,412)$ Total revenues - 36,200 27,788 (8,412) EXPENDITURES:
Current:
Public safety - 67,746 20,466 47,280 Capital outlay - 79,707 7,322 72,385 Total expenditures - 147,453 27,788 119,665 NET CHANGE IN FUND BALANCE -$ (111,253)$ - 111,253$ FUND BALANCE:
Beginning of year 3,144
End of year 3,144$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Law Enforcement Block Grant Special Revenue Fund
For the Year Ended June 30, 2025
164
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 1,200,000$ 1,200,000$ 2,316,963$ 1,116,963$ Total revenues 1,200,000 1,200,000 2,316,963 1,116,963 EXPENDITURES:
Current:
General government 520,996 525,123 487,716 37,407 Community development - - 49 (49) Capital outlay 863,000 2,442,586 1,770,724 671,862 Debt service:
Principal 90,000 90,000 177,000 (87,000) Interest and fiscal charges 52,915 52,915 78,597 (25,682) Total expenditures 1,526,911 3,110,624 2,514,086 596,538
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (326,911) (1,910,624) (197,123) 1,713,501 OTHER FINANCING SOURCES:
Transfers in - 483,499 - (483,499) Total other financing sources - 483,499 - (483,499) NET CHANGE IN FUND BALANCE (326,911)$ (1,427,125)$ (197,123) 1,230,002$ FUND BALANCE (DEFICIT):
Beginning of year (78,002)
End of year (275,125)$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2025
165
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 12,800$ 12,800$ 38,944$ 26,144$ Total revenues 12,800 12,800 38,944 26,144 NET CHANGE IN FUND BALANCE 12,800$ 12,800$ 38,944 26,144$ FUND BALANCE:
Beginning of year 1,218,700
End of year 1,257,644$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Neighborhood Stabilization Program Income Special Revenue Fund For the Year Ended June 30, 2025
166
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 2,963,020$ 3,460,692$ 2,560,726$ (899,966)$ Use of money and property 71,300 71,300 139,924 68,624 Total revenues 3,034,320 3,531,992 2,700,650 (831,342) EXPENDITURES:
Current:
Community development 131,210 437,345 20,822 416,523 Capital outlay 1,768,852 9,562,132 4,505,190 5,056,942 Total expenditures 1,900,062 9,999,477 4,526,012 5,473,465
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,134,258 (6,467,485) (1,825,362) 4,642,123 OTHER FINANCING (USES):
Transfers out (6,230) (6,230) (6,230) - Total other financing (uses) (6,230) (6,230) (6,230) - NET CHANGE IN FUND BALANCE 1,128,028$ (6,473,715)$ (1,831,592) 4,642,123$ FUND BALANCE:
Beginning of year 5,258,358
End of year 3,426,766$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure I Special Revenue Fund
For the Year Ended June 30, 2025
167
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 1,500,000$ 1,500,000$ 5,798,000$ 4,298,000$ Total revenues 1,500,000 1,500,000 5,798,000 4,298,000 EXPENDITURES:
Current:
Public safety 6,974,152 7,149,628 4,414,566 2,735,062 Capital outlay 275,000 1,297,062 1,243,391 53,671 Total expenditures 7,249,152 8,446,690 5,657,957 2,788,733
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,749,152) (6,946,690) 140,043 7,086,733 OTHER FINANCING SOURCES (USES):
Transfers in - 65,826 65,826 - Transfers out - (224,623) (224,623) - Total other financing sources (uses) - (158,797) (158,797) - -
NET CHANGE IN FUND BALANCE (5,749,152)$ (7,105,487)$ (18,754) 7,086,733$ FUND BALANCE:
Beginning of year 16,490,099
End of year 16,471,345$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Fire Ground Emergency Transportation Special Revenue Fund For the Year Ended June 30, 2025
168
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ -$ 16,538$ 16,538$ Use of money and property 19,100 393,569 60,700 (332,869) Miscellaneous 100,000 100,000 3,565 (96,435) Total revenues 119,100 493,569 80,803 (412,766) EXPENDITURES:
Current:
General government - 374,469 37,449 337,020 Total expenditures - 374,469 37,449 337,020
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 119,100 119,100 43,354 (75,746) OTHER FINANCING (USES):
Transfers out (2,660) (2,660) (2,660) - Total other financing (uses) (2,660) (2,660) (2,660) - NET CHANGE IN FUND BALANCE 116,440$ 116,440$ 40,694 (75,746)$ FUND BALANCE:
Beginning of year, as restated (Note 16) 2,871,838
End of year 2,912,532$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Cal Home Special Revenue Fund
For the Year Ended June 30, 2025
169
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 25,300$ 25,300$ 73,977$ 48,677$ Miscellaneous 1,000 1,000 146,363 145,363 Total revenues 26,300 26,300 220,340 194,040 EXPENDITURES:
Current:
General government 35,955 35,955 4,536 31,419 Total expenditures 35,955 35,955 4,536 31,419
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (9,655) (9,655) 215,804 225,459 OTHER FINANCING (USES):
Transfers out (2,500) (2,500) (2,500) - Total other financing (uses) (2,500) (2,500) (2,500) - NET CHANGE IN FUND BALANCE (12,155)$ (12,155)$ 213,304 225,459$ FUND BALANCE:
Beginning of year, as restated (Note 16) 4,138,728
End of year 4,352,032$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Authority Special Revenue Fund
For the Year Ended June 30, 2025
170
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes 65,000$ 65,000$ 80,056$ 15,056$ Use of money and property 4,300 4,300 13,089 8,789 Total revenues 69,300 69,300 93,145 23,845 EXPENDITURES:
Current:
General government 250,000 250,000 167,957 82,043 Capital outlay 250,000 254,579 126,167 128,412 Total expenditures 500,000 504,579 294,124 210,455 NET CHANGE IN FUND BALANCE (430,700)$ (435,279)$ (200,979) 234,300$ FUND BALANCE:
Beginning of year 482,883
End of year 281,904$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public, Educational and Governmental (PEG) Fees Special Revenue Fund For the Year Ended June 30, 2025
171
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental -$ -$ 230,957$ 230,957$ Use of money and property 200 200 827 627 Total revenues 200 200 231,784 231,584 EXPENDITURES:
Capital outlay - 3,265,875 1,643,385 1,622,490 Total expenditures - 3,265,875 1,643,385 1,622,490
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 200 (3,265,675) (1,411,601) 1,854,074 OTHER FINANCING SOURCES:
Transfers in - 407,873 - (407,873) Transfers out (60) (60) (60) - Total other financing sources (60) 407,813 (60) (407,873) NET CHANGE IN FUND BALANCE 140$ (2,857,862)$ (1,411,661) 1,446,201$ FUND BALANCE (DEFICIT):
Beginning of year 80,321
End of year (1,331,340)$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Transportation Development Act (TDA) Special Revenue Fund For the Year Ended June 30, 2025
172
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 20,000$ 20,000$ 29,862$ 9,862$ Use of money and property 3,600 3,600 9,953 6,353 Total revenues 23,600 23,600 39,815 16,215 EXPENDITURES:
Capital outlay - 207,399 207,399 - Total expenditures - 207,399 207,399 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 23,600 (183,799) (167,584) 16,215 OTHER FINANCING (USES):
Transfers out (2,400) (2,400) (2,400) - Total other financing (uses) (2,400) (2,400) (2,400) - NET CHANGE IN FUND BALANCE 21,200$ (186,199)$ (169,984) 16,215$ FUND BALANCE:
Beginning of year 392,213
End of year 222,229$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Medians Development Special Revenue Fund
For the Year Ended June 30, 2025
173
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 290,400$ 290,400$ 994,452$ 704,052$ Developer participation 1,800,000 1,800,000 1,908,944 108,944 Total revenues 2,090,400 2,090,400 2,903,396 812,996 EXPENDITURES:
Current:
Community development - 3,830 39 3,791 Capital outlay - 14,625,403 453,226 14,172,177 Total expenditures - 14,629,233 453,265 14,175,968
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,090,400 (12,538,833) 2,450,131 14,988,964 OTHER FINANCING (USES):
Transfers out (19,030) (19,030) (19,030) - Total other financing (uses) (19,030) (19,030) (19,030) - NET CHANGE IN FUND BALANCE 2,071,370$ (12,557,863)$ 2,431,101 14,988,964$ FUND BALANCE:
Beginning of year 30,942,256
End of year 33,373,357$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Local Drainage Special Revenue Fund
For the Year Ended June 30, 2025
174
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 144,700$ 144,700$ 221,929$ 77,229$ Developer participation - - 482,648 482,648 Total revenues 144,700 144,700 704,577 559,877 EXPENDITURES:
Current:
Capital outlay - 706,668 545,664 161,004 Total expenditures - 706,668 545,664 161,004
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 144,700 (561,968) 158,913 720,881 OTHER FINANCING SOURCES:
Transfers in - 128,614 - (128,614) Total other financing sources - 128,614 - (128,614) NET CHANGE IN FUND BALANCE 144,700$ (433,354)$ 158,913 592,267$ FUND BALANCE:
Beginning of year 6,830,953
End of year 6,989,866$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Fair Share Agreement Capital Projects Fund
For the Year Ended June 30, 2025
175
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 56,200$ 56,200$ 33,887$ (22,313)$ Total revenues 56,200 56,200 33,887 (22,313) NET CHANGE IN FUND BALANCE 56,200$ 56,200$ 33,887 (22,313)$ FUND BALANCE:
Beginning of year 804,979
End of year 838,866$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2005 TABS Fund Capital Projects Fund
For the Year Ended June 30, 2025
176
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 23,500$ 23,500$ 18,933$ (4,567)$ Total revenues 23,500 23,500 18,933 (4,567) NET CHANGE IN FUND BALANCE 23,500$ 23,500$ 18,933 (4,567)$ FUND BALANCE:
Beginning of year 3,114,968
End of year 3,133,901$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2008 TABs Capital Projects Fund
For the Year Ended June 30, 2025
177
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Use of money and property 3,400$ 3,400$ 6,458$ 3,058$ Total revenues 3,400 3,400 6,458 3,058 NET CHANGE IN FUND BALANCE 3,400$ 3,400$ 6,458 3,058$ FUND BALANCE:
Beginning of year 571,785
End of year 578,243$
Budgeted Amounts
City of Rialto
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 1997 COP Fund Debt Service Fund
For the Year Ended June 30, 2025
178
NONMAJOR ENTERPRISE FUND FINANCIAL STATEMENTS
179
This page intentionally left blank.
180
NONMAJOR ENTERPRISE FUNDS
Enterprise Funds account for City operations that are financed and operated in a manner similar to private business enterprises where the costs of providing goods or services to the general public are financed primarily through user charges. Funds included are:
Airport Enterprise Fund - All activities necessary to provide operations and maintenance of the City’s airport are accounted for in this fund, including administration, operations, maintenance, capital improvement and depreciation.
Cemetery Enterprise Fund - All activities necessary to provide the operations and maintenance of the City’s cemetery are accounted for in this fund, including administration, operations, maintenance, capital improvements and depreciation. 181
This page intentionally left blank.
182
ASSETS Airport Cemetery Totals
Current assets:
Cash and investments 9,566,590 $ 1,063,543 $ 10,630,133 $ Accounts receivables 151,799 14,248 166,047 Total assets 9,718,389 1,077,791 10,796,180 DEFERRED OUTFLOWS OF RESOURCES:
Pension related - 5,037 5,037 OPEB related - 846 846 Total deferred outflows of resources - 5,883 5,883
LIABILITIES
Current liabilities:
Accounts payable 92 8,768 8,860 Accrued liabilities - 669 669 Deposits payable 1,000 - 1,000 Compensated absences - 289 289 Total current liabilities 1,092 9,726 10,818 Noncurrent liabilities:
Compensated absences - 1,318 1,318 Net pension liability - 23,517 23,517 Net OPEB liability - 1,664 1,664 Total noncurrent liabilities - 26,499 26,499 Total liabilities 1,092 36,225 37,317
DEFERRED INFLOW OF RESOURCES
OPEB related - 4,322 4,322 Total deferred inflows of resources - 4,322 4,322 NET POSITION:
Unrestricted 9,717,297 1,043,127 10,760,424 Total net position 9,717,297$ 1,043,127 $ 10,760,424 $ June 30, 2025
Business-Type Activities
City of Rialto
Combining Statement of Net Position
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements 183
Airport Cemetery Totals
OPERATING REVENUES:
Sales and service charges -$ 220,260$ 220,260$ Total operating revenues - 220,260 220,260 OPERATING EXPENSES:
Administration and general 92 24,635 24,727 Cost of sales and services - 10,616 10,616 Total operating expenses 92 35,251 35,343 OPERATING INCOME (92) 185,009 184,917 NONOPERATING INCOME (EXPENSES):
Taxes 881 - 881 Interest revenue - 22,388 22,388 Total nonoperating income 881 22,388 23,269 CHANGES IN NET POSITION 789 207,397 208,186 NET POSITION:
Beginning of year, as previously reported 9,716,508 835,754 10,552,262 Change in accounting principle - (24) (24) Beginning of year, as restated (Note 16) 9,716,508 835,730 10,552,238 End of the year 9,717,297$ 1,043,127$ 10,760,424$ Business-Type Activities
City of Rialto
Combining Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2025
Nonmajor Enterprise Funds
See accompanying Notes to the Basic Financial Statements 184
Total Other
Airport Cemetery Enterprise
Fund Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers - $ 206,197$ 206,197 $ Payments to suppliers and service providers (335) (34,314) (34,649) Payments to employees for salaries and benefits - (4,014) (4,014) Net cash provided by (used in) operating activities (335) 167,869 167,534
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Property taxes 881 - 881 Net cash provided by noncapital financing activities 881 - 881 CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments - 22,388 22,388 Net cash provided by investing activities - 22,388 22,388 Net change in cash and cash equivalents 546$ 190,257 $ 190,803 $ CASH AND CASH EQUIVALENTS:
Beginning of year 9,566,044 873,286 10,439,330 End of year 9,566,590$ 1,063,543 $ 10,630,133 $ CASH AND CASH EQUIVALENTS:
Cash and investments 9,566,590$ 1,063,543 $ 10,630,133 $ Reconciliation of Operating Income (Loss) to Net
Cash Provided by (used in) Operating Activities:
Operating income (loss) (92) $ 185,009$ 184,917 $ Adjustments to reconcile operating income to net cash
provided by operating activities:
(Increase) decrease in accounts receivable - (14,063) (14,063) (Increase) decrease in pension related deferred outflows - 3,457 3,457 (Increase) decrease in OPEB related deferred outflows - 525 525 Increase (decrease) in accounts payable (243) 937 694 Increase (decrease) in accrued liabilities - 44 44 Increase (decrease) in compensated absences - (105) (105) Increase (decrease) in net pension liability - (5,084) (5,084) Increase (decrease) in net OPEB liability - (3,010) (3,010) Increase (decrease) in OPEB related deferred inflows - 159 159 Total adjustments (243) $ (17,140) $ (17,383) $ Net cash provided by (used in) operating activities (335)$ 167,869 $ 167,534 $ For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
185
This page intentionally left blank.
186
INTERNAL SERVICE FUND FINANCIAL STATEMENTS
187
This page intentionally left blank.
188
INTERNAL SERVICE FUNDS
Internal Service Funds account for goods and services provided by one City department to other City departments or agencies.
Funds included are:
Workers' Compensation Fund - To account for the City’s self-insured workers’ compensation claims program.
General Liability Fund - To account for the City’s self-insured general liability program. 189
This page intentionally left blank.
190
Workers' General Total
Compensation Liability Internal Service
Fund Fund Funds
ASSETS
Current assets:
Cash and investments 16,992,920 $ 2,550,943 $ 19,543,863 $ Accounts receivable 1,310 761,341 762,651 Total current assets 16,994,230 3,312,284 20,306,514
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 20,959 20,959 41,918 OPEB-related 3,518 3,518 7,036 Total deferred outflows of resources 24,477 24,477 48,954
LIABILITIES
Current Liabilities:
Accounts payable - 281,795 281,795 Accrued liabilities 2,427 2,922 5,349 Unearned revenue 404 - 404 Compensated absences 1,221 1,221 2,442 Claims and judgments 3,583,105 2,582,512 6,165,617 Total current liabilities 3,587,157 2,868,450 6,455,607 Noncurrent liabilities:
Compensated absences 5,562 5,562 11,124 Claims and judgments 19,057,790 5,586,708 24,644,498 Net pension liability 97,863 97,863 195,726 Net OPEB liability 6,923 6,923 13,846 Total noncurrent liabilities 19,168,138 5,697,056 24,865,194 Total liabilities 22,755,295 8,565,506 31,320,801
DEFERRED INFLOWS OF RESOURCES
OPEB-related 17,981 17,981 35,962 Total deferred inflows of resources 17,981 17,981 35,962
NET POSITION
Unrestricted (deficit) (5,754,569) (5,246,726) (11,001,295) Total net position (5,754,569)$ (5,246,726)$ (11,001,295)$ City of Rialto
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
191
Workers' General Total
Compensation Liability Internal Service
Fund Fund Funds
OPERATING REVENUES:
Interdepartmental charges for services 3,576,395 $ 8,207,231 $ 11,783,626 $ Total operating revenues 3,576,395 8,207,231 11,783,626 OPERATING EXPENSES:
Personnel services 73,087 76,068 149,155 Cost of sales and services 3,262,671 11,695,316 14,957,987 Total operating expenses 3,335,758 11,771,384 15,107,142 OPERATING INCOME (LOSS) 240,637 (3,564,153) (3,323,516) NONOPERATING INCOME: -
Interest revenue 520,541 138,148 658,689 Total nonoperating income 520,541 138,148 658,689 INCOME (LOSS) BEFORE TRANSFERS 761,178 (3,426,005) (2,664,827) TRANSFERS:
Transfers out - (3,450,000) (3,450,000) Total transfers - (3,450,000) (3,450,000) CHANGES IN NET POSITION 761,178 (6,876,005) (6,114,827) NET POSITION (DEFICIT):
Beginning of year, as previously reported (6,515,654) 1,629,372 (4,886,282) Change in accounting principle (93) (93) (186) Beginning of year, as restated (Note 16) (6,515,747) 1,629,279 (4,886,468) End of the year (5,754,569) $ (5,246,726) $ (11,001,295) $ City of Rialto
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
192
Workers' General Total
Compensation Liability Internal Service
Fund Fund Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 4,363,739 $ 7,446,390 $ 11,810,129 $ Payments to suppliers and service providers (3,631,192) (10,558,221) (14,189,413) Payments to employees for salaries and benefits (63,509) (66,320) (129,829) Net cash provided by (used in) operating activities 669,038 (3,178,151) (2,509,113)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers to other funds - (3,450,000) (3,450,000) Payments from other funds on interfund borrowings - 17,740 17,740 Net cash provided by noncapital financing activities - (3,432,260) (3,432,260) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 520,541 138,148 658,689 Net cash provided by investing activities 520,541 138,148 658,689 Net change in cash and cash equivalents 1,189,579 (6,472,263) (5,282,684) CASH AND CASH EQUIVALENTS:
Beginning of year 15,803,341 9,023,206 24,826,547 End of yea
r 16,992,920$ 2,550,943 $ 19,543,863 $
CASH AND CASH EQUIVALENTS:
Cash and investments 16,992,920$ 2,550,943 $ 19,543,863 $ Reconciliation of Operating Income (Loss) to Net
Cash Provided by (used in) Operating Activities:
Operating income (loss) 240,637 $ (3,564,153) $ (3,323,516) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
(Increase) decrease in accounts receivable 786,940 (760,841) 26,099 (Increase) decrease in pension related deferred outflows 6,649 6,649 13,298 (Increase) decrease in OPEB related deferred outflows 938 938 1,876 Increase (decrease) in accounts payable (833) (168,745) (169,578) Increase (decrease) in accrued liabilities 644 814 1,458 Increase (decrease) in unearned revenue 404 - 404 Increase (decrease) in compensated absences 267 267 534 Increase (decrease) in claims and judgments (367,688) 1,305,840 938,152 Increase (decrease) in net pension liability 4,898 4,898 9,796 Increase (decrease) in net OPEB liability (8,271) (8,271) (16,542) Increase (decrease) in OPEB related deferred inflows 4,453 4,453 8,906 Total adjustments 428,401$ 386,002 $ 814,403 $ Net cash provided by (used in) operating activities 669,038$ (3,178,151) $ (2,509,113) $ City of Rialto
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
193
This page intentionally left blank.
194
CUSTODIAL FUND FINANCIAL STATEMENTS
195
This page intentionally left blank.
196
Community Facilities District (CFD) 2019-2 Fund - The City acts as a custodian for co llection of special taxes for the Community Facility District 2019-2.
Community Facilities District (CFD) 2024-1 Fund - The City acts as a custodian for collection of special taxes for the Community Facility District 2024-1.
CUSTODIAL FUNDS
The custodial funds are used to account for assets held by the City as a custodian for other governmental units.
Community Facilities District (CFD) 87-1 Fund - To account for the City’s fiduciary capacity as custodian for the collection of special taxes for the CFD 87-1 and the retirement of limited tax obligation bonds.
Community Facilities District (CFD) 2006-1 Fund - The City acts as a custodian for co llection of special taxes for the Community Facility District 2006-1. The special tax is used f or retirement of limited obligation bonds. The City acts in a fiduciary capacity as custodian for any monies available in this fund.
Community Facilities District (CFD) 2016-1 Fund - The special tax is used to recover the cost of new residential development.
Community Facilities District (CFD) 2020-1 Fund - The City acts as a custodian for co llection of special taxes for the Community Facility District 2020-1.
Community Facilities District (CFD) 2022 Fund - The City acts as a custodian for co llection of special taxes for the Community Facility District 2022.
197
Community Community Community Community
Facilities Facilities Facilities Facilities
District (CFD) District (CFD) District (CFD) District (CFD) 87-1 Fund 2006-1 2016-1 2019-2
ASSETS:
Cash and cash equivalents 76,043 $ 1,099,310 $ 171,407 $ 455,279 $ Cash and cash equivalents held with fiscal agents - 469,859 - 422,387 Due from other governments - 228,430 521 3,774 Total assets 76,043 1,797,599 171,928 881,440 LIABILITIES:
Accounts payable - - - - Due to external parties/other agencies 73,688 1,690,106 122,099 818,047 Total current liabilities 73,688 1,690,106 122,099 818,047 NET POSITION (DEFICIT):
Restricted for:
Individuals, organizations, and other governments 2,355 $ 107,493 $ 49,829 $ 63,393 $ June 30, 2025
City of Rialto
Combining Statement of Fiduciary Net Position
Fiduciary Funds - Custodial Funds
198
Community Community Community
Facilities Facilities Facilities Total
District (CFD) District (CFD) District (CFD) Custodial
2022 2020-1 2024-1 Funds
ASSETS:
Cash and cash equivalents - $ 1,721,153$ 53,046 $ 3,576,238 $ Cash and cash equivalents held with fiscal agents 186,268 1,320,519 - 2,399,033 Due from other governments - 4,702 - 237,427 Total assets 186,268 3,046,374 53,046 6,212,698 LIABILITIES:
Accounts payable - - 51,603 51,603 Due to external parties/other agencies 186,268 3,046,374 - 5,936,582 Total current liabilities 186,268 3,046,374 51,603 5,988,185 NET POSITION (DEFICIT):
Restricted for:
Individuals, organizations, and other governments - $ - $ 1,443$ 224,513 $ City of Rialto
Combining Statement of Fiduciary Net Position (Continued) Fiduciary Funds - Custodial Funds
June 30, 2025
199
Community Community Community Community
Facilities Facilities Facilities Facilities
District (CFD) District (CFD) District (CFD) District (CFD) 87-1 Fund 2006-1 2016-1 2019-2
ADDITIONS:
Taxes and assessments - $ 519,915$ 110,018 $ 338,262 $ Interest and net increase in fair value of investments 2,355 48,865 4,811 18,563 Miscellaneous - - - - Total additions 2,355 568,780 114,829 356,825 DEDUCTIONS:
Administrative expenses - 6,924 - 2,750 Interest expense - 161,113 - 210,682 Principal payments - 180,000 - 30,000 Contributions to other governments - 113,250 65,000 50,000 Total deductions - 461,287 65,000 293,432 CHANGE IN NET POSITION 2,355 107,493 49,829 63,393 Net Position:
Beginning of year - - - - End of year 2,355 $ 107,493 $ 49,829 $ 63,393 $ Custodial Funds
For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Changes in Fiduciary Net Position 200
Community Community Community
Facilities Facilities Facilities Total
District (CFD) District (CFD) District (CFD) Custodial
2022 2020-1 2024-1 Funds
ADDITIONS:
Taxes and assessments - $ 1,945,038$ - $ 2,913,233$ Interest and net increase in fair value of investments - 257,743 1,443 333,780 Miscellaneous - 50,000 - 50,000 Total additions - 2,252,781 1,443 3,297,013 DEDUCTIONS:
Administrative expenses - 1,336,343 - 1,346,017 Interest expense - 916,438 - 1,288,233 Principal payments - - - 210,000 Contributions to other governments - - - 228,250 Total deductions - 2,252,781 - 3,072,500 CHANGE IN NET POSITION - - 1,443 224,513 Net Position:
Beginning of year - - - - End of year - $ - $ 1,443$ 224,513 $ Custodial Funds
For the Year Ended June 30, 2025
City of Rialto
Combining Statement of Changes in Fiduciary Net Position (Continued) 201
This page intentionally left blank.
202