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Rialto Utility Authority (RUA)
Department Overview
The City of Rialto, through the RUA,
provides water and wastewater services
to residents and businesses.
Wastewater services cover nearly all
City limits and parts of Fontana and
Bloomington, while water services are
focused on the central portion of Rialto.
RUA, established in 2001 as a 55-year
Joint Powers Authority, facilitates the
lease, acquisition, construction, and
improvement of water and wastewater
infrastructure. In 2012, the City entered
a Concession Agreement with Rialto
Water Services (RWS) delegating
system operations and capital project
delivery to RWS as operated by Veolia
North America (Veolia), while RUA
retains ownership of all assets and
responsibility for setting rates to fund
operations and capital improvements.
Concession Agreement / Administration Fund
The Concession Agreement / Administration Fund (Fund 680) manages costs associated with oversight of RUA’s long-term partnersh ip with Rialto Water Services (RWS). The fund supports administrative oversight of leased operations, legal and consulting services, financial analysis, and strategic planning activities related to water and wastewater system management.
Fund 680 allows RUA to maintain strong governance and oversight of the concession structure while ensuring that utility revenues continue to be reinvested in infrastructure improvements, regulatory compliance, and system reliability. Costs incurred under this fund are reimbursed through water and wastewater rate revenues. 2026-2027 Goals and Objectives
RUA remains focused on maintaining financially
sustainable, reliable, and transparent water and
wastewater services for the community. Through
effective oversight of the Concession Agreement with
RWS, strategic infrastructure planning, and
responsible financial management, RUA will
continue strengthening utility operations while
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protecting long-term system reliability and affordability for ratepayers.
Goal – Ensure Long-Term Financial Sustainability of Water and Wastewater Utilities Maintain responsible financial management of RUA’s water and wastewater utilities to ensure revenues adequately support operations, infrastructure investments, regulatory compliance, and long-term system sustainability.
Objectives
x Monitor Utility Financial Performance – Regularly monitor water and wastewater revenues, expenditures, and
reserve levels to ensure the adopted rate structure
adequately supports operational costs, capital
improvement projects, and long-term infrastructure needs. Provide periodic financial updates to the City Council/RUA Board to maintain transparency and accountability.
x Align Rates with Capital Infrastructure Needs – Coordinate implementation of the adopted multi-year rate structure with RUA’s Capital Improvement Program (CIP) to ensure sufficient funding is available for priority water and wastewater infrastructure investments that maintain system reliability and regulatory compliance.
x Pursue External Funding for Infrastructure Projects – Identify and pursue federal, state, and regional funding opportunities—including grants and financing programs—to support water and wastewater capital improvement projects.
Coordinate with the City’s Finance Department to evaluate bond financing or other funding strategies that help minimize the financial burden on ratepayers while advancing priority infrastructure investments.
Goal – Maintain Effective Oversight of Leased Utility Operations Provide administrative and financial oversight of Rialto Water Services (RWS) to ensure compliance with the Concession Agreement and maintain high-quality water and wastewater service delivery.
Objectives
x Provide Contract Oversight and Performance Monitoring – Monitor the performance of RWS to ensure compliance with service standards and operational requirements outlined in the Concession Agreement. Oversight activities include review of operational reports, contract compliance monitoring, financial audits, and performance evaluations.
x Strengthen Administrative Coordination and Procedures – Develop and implement standard operating procedures (SOPs) that support coordination between Rialto Water Services and City departments. Th ese procedures help ensure consistent communication, effective project coordination, and clear administrative processes related to utility operations, capital projects, and regulatory compliance. s. Provide
o maintain
oordinate
th
RUA’s
unding is
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Goal – Promote Transparency and Public Confidence in Utility Services Ensure residents and businesses have clear, accessible information regarding water and wastewater services, rates, and infrastructure investments.
Objectives
x Maintain Ratepayer Transparency and Communication – Provide clear and accessible information to residents and businesses regarding the adopted rate structure, utility system investments, and the services funded through water and wastewater revenues. Communication efforts help maintain public trust and provide transparency in utility governance.
Goal – Support Regional Water Supply Reliability and Sustainability Work collaboratively with regional water agencies to protect and enhance groundwater resources that support RUA’s long-term water supply reliability.
Objectives
x Support Groundwater Basin Recharge and Regional Collaboration – Continue working with regional partners to support groundwater recharge efforts within the Rialto-Colton Groundwater Basin to improve groundwater levels, enhance water quality, and strengthen long-term drought resilience.
Goal – Modernize Utility Policies and Regulatory Framework Maintain a regulatory and polic y framework that su pports efficient wastewater system operations, protects treatment capacity, and promotes financial sustainability.
Objectives
x Update Utility Ordinances and Policies – Review and update municipal ordinances and policies related to water and wastewater operations, including influent limits and industrial pretreatment requirements, to ensure alignment with regulatory standards and treatment plant capacity.
x Evaluate Development Impact Fee Structures – Assess development impact fee structures related to wastewater infrastructure to ensure they appropriately support system expansion, capture available treatment capacity, and contribute to long- term infrastructure funding.
2025-2026 Major Accomplishments
Strengthened Long-Term Financial Sustainability of Water and Wastewater Utilities The City Council and RUA completed a comprehensive rate-setting process and adopted a five-year water and wastewater rate adjustment plan following a formal cost-of-service analysis.
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The rate study confirmed that without revenue adjustments the utilities would face declining reserves and potential financial deficits beginning in FY 2027. The adopted plan establishes phased rate adjustments beginning in 2026 and extending through 2030, providing predictable and gradual increases that support long-term financial sustainability while funding ongoing system operations and necessary capital infrastructure improvements.
The rate-setting process included multiple presentations to the Water Subcommittee, Utilities Commission, and City Council, along with public outreach and a formal Proposition 218 public hearing process to ensure transparency and public engagement.
To reduce financial impacts on ratepayers, the RUA Board incorporated several cost- management strategies, in cluding the use of grant funding, reserv e fund s, and development impact fees to offset capital project costs. These strategies are projected to offset approximately $34 million in capital costs over five years, reducing the amount that must be recovered through water and wastewater rates while maintaining long-term financial stability.
Provided Direct Ratepayer Relief During Infrastructure Investment Recognizing the importance of balancing infrastructure investment with ratepayer affordability, the City Council suspended th e Utility User Tax (UUT) on water and wastewater services for all residential accounts for the entirety of 2026.
This action provided immediate financial relief to residents during the transition to the updated rate structure while allowing the utilities to maintain financial stability through the use of existing reserve funds.
The suspension reflects the City’s commitment to responsible financial management and its continued focus on supporting residents while investing in water and wastewater infrastructure needed to ensure long-term service reliability.
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Advanced Water System Modernization Through Smart Meter Technology RUA continued implementation of its Advanced Metering Infrastructure (AMI) modernization program, a major initiative designed to improve operational efficiency, enhance customer service, and strengthen long-
term water resource management.
The project includes installation of smart water
meters and supporting communication
technology that enables automated meter
reading and near real-time water usage
monitoring. The system will allow customers to
better understand and manage their water
consumption, quickly identify potential leaks, and
support community-wide water conservation
efforts.
For the utility, AMI technology improves billing
accuracy, reduces manual meter reading costs,
and provides valuable system data that supports
improved operational planning and infrastructure
management.
The $8 million project is fully funded th rough grant funding and is scheduled for completion in December 2026, allowing RUA to modernize water system infrastructure without increasing costs to ratepayers.
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Initiated Priority Wastewater Treatment Infrastructure Upgrades The City initiated the Biosolids Handling Upgrades Project at the Rialto Wastewater Treatment Plant through a Final Construction Work Authorization with RWS, operated by Veolia.
The project will replace aging biosolids processing equipment that has exceeded its useful life and modernize key components of the wastewater treatment process.
Improvements include replacement of sludge thickening and dewatering equipment, upgrades to pumps and piping systems, and installation of new digester covers along with supporting electrical and mechanical infrastructure.
These improvements will enhance treatment reliability, increase sludge processing efficiency, and improve overall operational performance at the facility. The upgrades are also expected to generate long-term operational savings by reducing sludge hauling and disposal costs while ensuring continued compliance with environmental regulations and maintaining reliable wastewater treatment services for the community.
Grant Awards and Funding Strategy
Grant funding remains a key component of RUA’s approach to advancing infrastructure, regulatory compliance, and long-term service reliability while minimizing impacts to ratepayers.
Existing biosolids processing facilities at the Rialto Wastewater Treatment Plant where upgrades will improve sludge thickening, digestion, and dewatering operations.
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To date, RUA has secured funding for priority initiatives, including the fully grant-funded Advanced Metering Infrastructure (AMI) program, currently under implementation. RUA continues aligning capital projects with state and federal funding opportunities. RUA will continue working with grant consultants and regional partners to pursue funding opportunities. These efforts support project delivery, reduce reliance on enterprise revenues, and strengthen long-term system reliability, with grant strategy integrated into capital planning.
FY 2026–2027 Priority Funding Areas include emergency backup generators at water facilities, septic-to-sewer conversions, and replacement of aging water and wastewater service lines. Additional focus areas include groundwater quality and treatment improvements, including arsenic compliance, and broader system resiliency efforts.
FY 2026-2027 RUA Priority Funding Areas Table
City of Rialto Project Name
Priority
Designation
Estimated
Total Project
Capital Cost
Grant
Target
(1)
Remaining
Funding
Needed Notes
Well City 3A First Priority $7,637,760 100% $5,637,760
$2 million federal funding
awarded to Rialto from U.S.
Bureau of Reclamation (USBR)
in 2023. Submitted application
in Spring 2026 to Senators
Schiff and Padilla (Federal) and
Congressman Aguilar (State)
for Community Funded Projects
Earmark Requests.
Etiwanda Water Main First Priorit
y $5,408,000 50% $2,704,000
4" S Oakdale & S Marcella Main Second
Priorit
y $4,211,491 50% $2,105,746
Service line: South Alice, South Palm, West
Vodden, Alru St.
Third Priority $1,588,654 100% $1,588,654
Service line: Bonnie View (Acacia and
Eucal
yptus) Third Priority $3,239,608 50% $1,619,804
Resilient Power Infrastructure For Critical
Water Facilities-Generators
First Priority $11,039,406 100% $11,039,406
Grant application requesting
$8.3 million in federal funding
submitted to the U.S. Federal
Emergency Management
Agency (FEMA) in 2025.
Submitted application in Spring
2026 to Senators Schiff and
Padilla (Federal) and
Congressman Aguilar (State)
for Community Funded Projects
Earmark Requests.
Sycamore Sewer Conveyance
Improvements: Upsizing Sewer: Sycamore
First Priority $5,740,800 50% $2,870,400
Submitted application in Spring
2026 to Senators Schiff and
Padilla (Federal) and
Congressman Aguilar (State)
for Community Funded Projects
Earmark Requests.
Sycamore Sewer Conveyance
Improvements: Upsizing Sewer: Sycamore
Ave (Huff to Randall)
First Priority $2,024,755 100% $2,024,755
Submitted application in Spring
2026 to Senators Schiff and
Padilla (Federal) and
Congressman Aguilar (State)
for Community Funded Projects
Earmark Requests.
Pressure Relief Valve First Priorit
y $648,960 100% $648,960
Total $30,239,485
Note:
(1) Grant Target reflects the estimated share of project costs staff intends to pursue through grants. Some grant programs require Public Works
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Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
Administration
Personnel
51050 Other Fringe Benefits — 19,552 — — —
Services and Supplies
Personnel Subtotal — 19,552 — — —
52005 Cellphone/Ipad Charges 574 1,597 — 1,100 —
52011 Contract Services — — — — 1,882,623
52021 Other Services And Supplies 7,607 6,764 — 8,468 — 52022 Training/Meetings/Conferences 187 — — — —
52052 Invest Loss/Value Adj (750,400) (167,624) — (3,386) — 52090 Prior Period Adj — 3,846 — — —
52128 Non Abated Reimbursement 3,646 — — — —
52140 Postage — 4 — — —
Services and Supplies Subtotal (738,386) (155,413) — 6,182 1,882,623 Other
81010 To-General Fund 5,300,000 23,570 — — —
Other Subtotal 5,300,000 23,570 — — —
Administration Subtotal 4,561,614 (112,291) — 6,182 1,882,623 Sewer Treatment New Plant
Services and Supplies
52080 Allowance-Expense (4,050) — — — —
52128 Non Abated Reimbursement 27,026 — — — —
Services and Supplies Subtotal 22,976 — — — —
Sewer Treatment New Plant Subtotal 22,976 — — — —
Waste Water-Concessin Agreemnt
Personnel
51001 Salaries 155,044 142,791 233,177 178,720 274,406
51005 Special Compensation 14,601 12,267 12,097 16,358 23,604 51010 Part-Time — 56,111 78,795 6,173 52,173
51020 Overtime 20 44 — 25 —
51030 Retirement 21,156 19,691 19,514 24,172 36,293
51040 Workers Compensation 18,508 17,816 29,886 18,106 31,288 51050 Other Fringe Benefits 18,651 25,759 37,204 38,227 56,438 51080 Leave Cashouts 8,803 — — 14,069 —
Services and Supplies
Personnel Subtotal 236,783 274,478 410,673 295,851 474,202 Public Works
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52002 Electricity 1,036,607 1,095,631 1,200,000 625,104 1,089,900 52003 Gas 79,184 75,592 80,000 44,026 100,000
52005 Cellphone/Ipad Charges — — 540 361 1,600
52010 Legal Services 271,446 210,696 150,000 148,480 150,000 52011 Contract Services 12,442,581 13,417,626 12,234,389 6,353,669 16,715,765 52021 Other Services And Supplies 3,564,444 3,577,810 515,020 1,567,834 850,047 52022 Training/Meetings/Conferences 2,062 — 2,000 — 10,000 52024 Operating Lease Payments — — 1,600,000 — —
52052 Invest Loss/Value Adj (285,060) (39,998) — — —
52060 Other Expense (1,604,664) (1,681,809) — — —
52080 Allowance-Expense 603,496 1,893 — (97,455) —
52122 Simonson Center Dept Fees 292 228 345 246 686
52145 Liability Insurance 31,300 730 — — —
Capital
Services and Supplies Subtotal 16,141,689 16,658,398 15,782,294 8,642,264 18,917,998 53001 Capital Improvements — — 1,298,364 (157,273) —
Debt
Capital Subtotal — — 1,298,364 (157,273) —
54001 Principal — — — — 2,382,110
54010 Interest 10,299,891 10,085,493 — — 10,299,890
54050 Capital Lease Payments — — — 7,397,833 —
Debt Subtotal 10,299,891 10,085,493 — 7,397,833 12,682,000 Waste Water-Concessin Agreemnt Subtotal 26,678,363 27,018,370 17,491,331 16,178,676 32,074,200 Water Capital Replacement
Capital
53001 Capital Improvements — — 2,915,015 — —
Capital Subtotal — — 2,915,015 — —
Water Capital Replacement Subtotal — — 2,915,015 — —
Perchlorate Task Force
Services and Supplies
52021 Other Services And Supplies 115,140 243,715 79,170 (187,685) 70,555 Services and Supplies Subtotal 115,140 243,715 79,170 (187,685) 70,555 Perchlorate Task Force Subtotal 115,140 243,715 79,170 (187,685) 70,555 Water - Concession Agreement
Personnel
51001 Salaries 155,045 142,792 233,177 178,721 274,406
Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
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51005 Special Compensation 14,601 12,267 12,097 16,359 23,604 51010 Part-Time — 56,111 78,795 6,173 52,173
51020 Overtime 20 44 — 25 —
51030 Retirement 21,156 19,691 19,513 24,172 36,290
51040 Workers Compensation 18,509 17,816 29,887 18,106 31,286 51050 Other Fringe Benefits 18,653 25,761 37,205 38,228 56,438 51080 Leave Cashouts 8,803 — — 14,069 —
Services and Supplies
Personnel Subtotal 236,786 274,481 410,674 295,854 474,197 52002 Electricity 1,112,088 2,546,022 1,150,000 1,174,486 2,345,700 52005 Cellphone/Ipad Charges — — 152 241 500
52010 Legal Services — — 150,000 34,763 —
52011 Contract Services 10,035,532 11,103,713 15,354,787 5,198,363 14,268,891 52021 Other Services And Supplies 2,883,312 2,726,839 482,000 1,309,133 636,269 52022 Training/Meetings/Conferences 5,695 1,634 2,000 1,643 10,000 52024 Operating Lease Payments — — 400,000 — —
52052 Invest Loss/Value Adj (154,941) (21,279) — — —
52060 Other Expense (1,144,480) (1,934,423) — — —
52080 Allowance-Expense (357,050) 383,287 — (639,416) — 52122 Simonson Center Dept Fees 293 229 343 246 692
52145 Liability Insurance 30,420 730 — — —
Capital
Services and Supplies Subtotal 12,410,869 14,806,751 17,539,282 7,079,459 17,262,052 53001 Capital Improvements — — 8,000,000 88,416 —
Debt
Capital Subtotal — — 8,000,000 88,416 —
54001 Principal — — — — 943,000
54010 Interest 1,957,001 1,897,654 — — 1,957,000
54050 Capital Lease Payments — — — 1,691,667 —
Debt Subtotal 1,957,001 1,897,654 — 1,691,667 2,900,000 Water - Concession Agreement Subtotal 14,604,656 16,978,887 25,949,956 9,155,396 20,636,249 Total Expenditures 45,982,749 44,128,681 46,435,472 25,152,569 54,663,627 Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
City Treasurer
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City Treas urer
ŝƚLJdƌĞĂƐƵƌĞƌ͛ƐKĸĐĞ
Department Overview
Edward J. Carrillo was first appointed in 1999, and first elected in 2004, and was reelected on November 5, 2024, to serve another four-year term. The position of City Treasurer is subject to election every four years. In this capacity, the City Treasurer assumes the role of treasurer for the City, the Rialto Utility Authority, and the Successor Agency to the Redevelopment Agency.
Programs and Services
Cash Position Reporting
The City Treasurer’s Office balances all City, Rialto Utility Authority and the Successor Agency to the Redevelopment Agency’s bank accounts and prepares, files, and submits the statement of cash position report monthly to the City Council pursuant to CA Government code and Rialto Municipal Code.
Customer Service
The City Treasurer’s Office provides customer service of cash receipting for all city departments, approximately three hundred animal licensing customers each month, and the best possible customer service for our residents, and vendors as applicable.
City Treasurer
The City Treasurer’s Office is responsible for the receipt, custody, deposits, disbursement, and safekeeping of all City, Rialto Utility Authority and Successor Agency funds. Responsible for all cash handling policies and procedures. 2024-2025 Major Accomplishments
x 4,419 Tyler receipts processed.
x 2,215 pet license receipts processed.
x 320 parking citation receipts processed.
x 2,611 direct deposits processed.
x $8,526,000.00 interest/gains earned on Treasurer’s portfolio. 2025-2026 Goals and Objectives
x Continually evaluate the Department’s organizational effectiveness. x Maintain and update personnel records.
x Prepare required reports to governmental and other oversight agencies. x Process and conduct administrative investigations.
x Provide training and career development.
City Treasurer
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City Treasurer's Office
City Treasurer
Assistant
Treasurer/Accounting
Specialist
Senior Accounting Assistant
Office Specialist (2)
City Treasurer
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Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
City Treasurer
Personnel
51001 Salaries 105,719 121,121 132,404 92,988 136,447
51005 Special Compensation 4,428 8,550 6,610 9,351 11,005 51020 Overtime 12,163 10,981 11,800 9,814 17,500
51030 Retirement 11,844 14,257 10,547 10,939 16,615
51040 Workers Compensation 12,398 11,690 12,684 8,688 13,072 51050 Other Fringe Benefits 49,479 69,852 37,739 64,513 59,828 51080 Leave Cashouts — 4,517 — 3,055 —
Services and Supplies
Personnel Subtotal 196,032 240,968 211,784 199,349 254,467 52005 Cellphone/Ipad Charges 774 1,411 1,000 1,516 1,500 52010 Legal Services 1,225 129 4,000 260 4,000
52011 Contract Services 76,557 132,631 205,477 197,371 109,110 52021 Other Services And Supplies 561 1,061 2,500 387 2,500 52022 Training/Meetings/Conferences 1,626 5,845 7,550 6,346 7,550 52122 Simonson Center Dept Fees 573 593 667 458 1,326
52140 Postage 1 2 200 — 200
52145 Liability Insurance 27,020 970 — — —
Capital
Services and Supplies Subtotal 108,336 142,642 221,394 206,338 126,186 53030 Office/Equipment/Machinery — — — — 2,000
Capital Subtotal — — — — 2,000
City Treasurer Subtotal 304,368 383,610 433,178 405,688 382,653 Cash Receiving/Records
51001 Salaries 66,879 82,292 63,378 81,365 117,429
51005 Special Compensation 5,946 6,036 6,510 6,765 8,305 51010 Part-Time 13,456 — — — —
51020 Overtime 16,628 10,773 17,500 9,312 17,500
51030 Retirement 7,561 11,064 9,706 10,004 15,378
51040 Workers Compensation 10,076 8,173 11,027 7,605 11,250 51050 Other Fringe Benefits 18,603 20,203 19,719 26,008 39,245 51080 Leave Cashouts 2,419 4,517 — 3,055 —
Personnel Subtotal 141,569 143,057 127,840 144,113 209,107 52005 Cellphone/Ipad Charges — — 475 — 475
52021 Other Services And Supplies 5,141 3,504 10,920 4,800 8,920 City Treasurer
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52022 Training/Meetings/Conferences 1,754 1,671 1,600 1,214 3,150 52030 Maint-Office And Machinery — — 900 — 900
52122 Simonson Center Dept Fees 246 334 443 294 888
52140 Postage — 2 — — —
52145 Liability Insurance 34,150 — — — —
Services and Supplies Subtotal 41,291 5,511 14,338 6,308 14,333 Cash Receiving/Records Subtotal 182,860 148,568 142,178 150,421 223,440 Accounts Receivable
51001 Salaries 5,807 — — — —
51005 Special Compensation 1,011 — — — —
51010 Part-Time 13,456 — — — —
51020 Overtime 5,585 — — — —
51030 Retirement 923 — — — —
51040 Workers Compensation 2,663 — — — —
51050 Other Fringe Benefits 2,174 — — — —
51080 Leave Cashouts 2,419 — — — —
Personnel Subtotal 34,038 — — — —
52122 Simonson Center Dept Fees 31 — — — —
Services and Supplies Subtotal 31 — — — —
Accounts Receivable Subtotal 34,069 — — — —
Total Expenditures 521,296 532,179 575,356 556,108 606,093 Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
Non-Departmental
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N on-Departmental
Non-Departmental
Overview
Non-departmental funds are budgeted and tracked separately from individual departmental budgets. These funds cover expenses that are not directly attributable to any single department but are essential for the overall functioning and financial management of the organization. Examples include citywide insurance premiums, debt service payments, general fund contingencies, pension obligations, and certain contractual obligations. By centralizing these expenditures, non-departmental funds ensure transparency, and reduce duplication.
Non-Departmental
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Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
Non Departmental
Personnel
51001 Salaries 92 1,099 — — —
51005 Special Compensation — 637,010 — 10,000 —
51030 Retirement 34,224 23,982 — 36,204 —
51031 Pers Ual Payment 10,664,599 13,272,884 16,060,090 16,065,090 18,305,198 51040 Workers Compensation 42,165 4,873 — 7,308 —
51050 Other Fringe Benefits 11,606 1,691 — (20,037) —
51051 Retiree Medical (85,130) 301,284 — 1,364,244 —
51060 Termination Cashouts 772,456 600,970 1,000,000 240,402 500,000 51080 Leave Cashouts 111,871 — — — —
Services and Supplies
Personnel Subtotal 11,551,883 14,843,795 17,060,090 17,703,211 18,805,198 52001 Telephone — 39 500 — 475,837
52002 Electricity 67,519 — — 1,506 806,385
52003 Gas — — — — 91,050
52004 Water/Sewer 5,650 — — 20 989,010
52005 Cellphone/Ipad Charges 48,421 — — — —
52006 Cable/Internet Charges 110 — — — —
52010 Legal Services — — — 507,875 —
52011 Contract Services 183,997 355,242 279,000 192,843 304,000 52021 Other Services And Supplies (1,083) 42,052 10,000 18,490 20,000 52052 Invest Loss/Value Adj (5,924,498) (3,976,208) — (841,527) — 52060 Other Expense 5,784,929 5,788,761 4,955,000 2,815,132 6,078,199 52065 Advertising 85,408 88,562 97,210 86,701 101,752
52080 Allowance-Expense 1,123,994 20,800 — (1,214,950) — 52122 Simonson Center Dept Fees 110 130 — 497 —
52145 Liability Insurance 270,450 — 8,388,382 — 8,723,917 Services and Supplies Subtotal 1,645,009 2,319,378 13,730,092 1,566,586 17,590,150 Debt
54001 Principal 363,414 386,511 386,515 413,770 386,515 54010 Interest 263,764 250,224 250,230 235,858 250,230
54020 Service Fees 8,863 2,650 1,900 4,956 1,900
Debt Subtotal 636,042 639,385 638,645 654,584 638,645
Other
82209 To-Fire Grnd Emergency Transp. — 65,826 — — —
Non-Departmental
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82223 To-Grant Projects — 86,033 — — —
82224 To-Lld No. 2 439,640 — — — —
82225 To-Landscape Maintenance 950,180 — — — —
82490 To-Sld — 69,430 — — —
83300 To-Capital Projects 24,983,420 4,842,533 1,628,795 — — 85630 To-Cemetery 8,220 — — — —
85660 To-Sewer Enterprise — 25,000,000 — — —
85670 To-Water Enterprise 5,300,000 5,000,000 — — —
Other Subtotal 31,681,460 35,063,822 1,628,795 — —
Non Departmental Subtotal 45,514,394 52,866,380 33,057,622 19,924,382 37,033,993 Single Fam Home Repair
52011 Contract Services — — 187,431 — 85,814
Services and Supplies Subtotal — — 187,431 — 85,814
Single Fam Home Repair Subtotal — — 187,431 — 85,814
Total Expenditures 45,514,394 52,866,380 33,245,052 19,924,382 37,119,807 Depar tment Expend itu r e Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
All Funds Revenue and Expenditure
Summary
All Funds Revenue Summary
City of Rialto Proposed Budget
240
All Fund s Revenue Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
General Fund
1010 General Fund 174,185,630 175,039,876 164,997,716 137,030,965 175,861,431 General Fund Subtotal 174,185,630 175,039,876 164,997,716 137,030,965 175,861,431 Special Revenue Fund
2201 Measure I 2010-2040 3,027,796 2,612,931 2,762,707 2,146,424 2,851,746 2202 Gas Tax 2106/2107/2107.5 2,963,827 2,950,777 2,978,974 2,185,332 3,129,959 2203 Gas Tax - Sb 1 3,454,878 3,434,314 2,872,026 2,782,095 3,016,998 2204 Tda Fund - Sb 325 181,712 231,784 3,298,784 1,259,555 200 2205 Fire Grants 51,831 — 33,382 108,612 —
2207 Traffic Safety Prop 1B (State) 11 14 — 10 —
2209 Fire Ground Emergency Transp. 7,655,874 5,863,826 5,071,952 7,037,952 8,100,000 2210 Park Development 1,693,955 2,033,201 845,000 1,468,207 1,010,000 2211 Peg 135,801 93,145 — 40,512 —
2212 Waste & Environmental Fund 1,654,762 1,379,274 802,001 1,016,356 848,363 2213 Local Law Enforcmnt Blk Grant 93,971 27,788 — — —
2214 Citizens Opt Public Sfty Fund 326,997 1,029,862 326,619 337,599 3,500 2216 Asset Forfeiture St Set Aside 75,687 11,181 3,300 4,415 3,300 2217 Fire Development Fund 530,187 338,702 215,000 199,215 225,000 2218 Police Development Fund 774,745 523,193 360,000 299,227 360,000 2219 Asset Forfeitures 1,307,181 171,975 23,000 200,588 23,000 2220 Open Space Development 233,580 418,667 180,000 297,391 200,000 2221 Office Of Traffic Safety Grant 660,455 574,182 443,800 137,436 — 2223 State & Federal Funding 3,254,136 6,063,609 67,181,019 1,034,658 1,488,671 2224 Lld No. 2 1,590,796 1,182,061 1,206,558 1,287,932 1,486,927 2225 Landscape Maintenance 1,498,326 565,986 548,881 543,790 548,865 2226 Scaqmd Ab 2766 121,583 408,475 15,000 130,178 15,000 2230 Local Drainage 3,881,041 2,903,397 23,706,964 1,944,804 2,050,000 2232 American Rescue Plan 1,411 1,894 — 85 —
2234 Community Devel Block Grant 1,442,939 2,316,963 1,235,680 693,868 932,092 2235 Home Program — 16,538 574,469 — 343,254
2238 CalHOME PROGRAM — — 1,000,000 — 1,200,000
2241 Nsp-Program Income 76,494 21,367 14,000 15,090 14,000 2244 Nsp 3-Program Income 13,095 17,576 13,000 12,413 13,000 2245 Pers Property Tax Fund 66 114 — 1,640 —
2246 Housing Improvement Program 124,750 64,265 40,000 367,936 40,000 All Funds Revenue Summary
City of Rialto Proposed Budget
241
2247 Police Grants 739,347 398,407 1,976,509 54,244 —
2248 Community Services Grant Fund 14,905 193,469 424,000 96,661 66,000 2250 Traffic Development Fund 4,949,902 3,680,478 2,300,000 1,778,857 1,800,000 2255 Street Median Development Fund 58,479 39,814 27,500 18,930 27,000 2270 General Facilities Devel Fund 1,009,028 684,519 425,000 402,103 430,000 2275 Library Facilities Devel Fund 174,732 111,110 68,000 59,654 72,000 2283 Omnitrans Measure I Rmp — 87,719 — — —
2490 Street Light Assessment Distr. 878,795 940,798 882,163 854,068 882,323 Special Revenue Fund Subtotal 44,653,073 41,393,374 121,855,288 28,817,837 31,181,198 Rialto Housing Authority
2236 Rialto Housing Authority 174,073 220,341 130,000 70,666 130,000 Rialto Housing Authority Subtotal 174,073 220,341 130,000 70,666 130,000 Capital Projects Fund
3300 Capital Projects Fund 25,249,976 8,512,619 1,778,795 74,256 150,000 3301 Fair Share Agreement 1,758,926 704,577 250,000 320,805 250,000 3302 2005 Tabs 25,247 33,887 25,000 23,932 25,000
3303 2008 Tabs 14,106 18,933 15,000 13,371 15,000
Capital Projects Fund Subtotal 27,048,255 9,270,016 2,068,795 432,364 440,000 Enterprise Fund
5610 Airport Operations 20 881 — — —
5630 Cemetery 139,627 159,671 38,945 194,935 109,000
5631 Cemetery-Endowment 45,702 65,905 5,000 72,485 7,500 5680 Utility Services — — 912,385 3,023,862 3,469,943
Enterprise Fund Subtotal 185,349 226,458 956,330 3,291,283 3,586,443 Rialto Utility Authority
5660 Sewer Enterprise 33,477,610 59,922,915 33,105,418 20,217,177 37,299,261 5670 Water Enterprise 19,088,667 22,933,740 27,327,150 12,576,330 20,888,924 Rialto Utility Authority Subtotal 52,566,277 82,856,656 60,432,568 32,793,507 58,188,185 Internal Service Funds
6720 Workers Compensation Ins. 4,744,693 4,096,935 4,050,000 3,931,874 4,050,000 6730 General Liability Internal Srv 10,080,443 8,345,379 8,448,382 (24,094) 8,448,382 Internal Service Funds Subtotal 14,825,136 12,442,314 12,498,382 3,907,781 12,498,382 Rialto Successor Agency
7343 Rsa-Rda Successor Admin 11,519,229 11,506,020 430,000 3,212,567 430,000 Rialto Successor Agency Subtotal 11,519,229 11,506,020 430,000 3,212,567 430,000 Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
All Funds Revenue Summary
City of Rialto Proposed Budget
242
Debt Service Funds
4520 Nonprofit Public Bld Authority 4,811 6,458 4,000 12,646 4,000 7821 Opeb Trust 938,835 3,812,188 3,000,000 1,334,105 3,000,000 7870 Cfd 87-1 Fund 1,754 2,355 1,700 1,663 1,700
7871 Cfd 2006-1 Fund 549,709 568,780 60,000 567,011 60,000 7872 Cfd 2016-1 Fund 86,768 114,829 2,000 268,037 2,000 7873 Cfd 2019-2 Fund 351,555 356,825 18,000 197,472 18,000 7875 CFD 2020-1(El Rancho Verde) 17,611,377 2,252,781 — 22,152,107 — Debt Service Funds Subtotal 19,544,810 7,114,216 3,085,700 24,533,041 3,085,700 Subtotal 344,701,833 340,069,270 366,454,778 234,090,012 285,401,339 Total Revenues 344,701,833 340,069,270 366,454,778 234,090,012 285,401,339 Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
All Funds Expenditure Summary
City of Rialto Proposed Budget
243
Al l Fun ds Ex p endi ture Summ ary
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
General Fund
1010 General Fund 146,911,499 174,846,426 163,680,497 120,705,118 173,048,480 General Fund Subtotal 146,911,499 174,846,426 163,680,497 120,705,118 173,048,480 Special Revenue Fund
2201 Measure I 2010-2040 1,619,633 4,434,777 5,502,368 594,957 2,876,746 2202 Gas Tax 2106/2107/2107.5 7,889,458 4,357,919 3,072,790 138,802 3,077,960 2203 Gas Tax - Sb 1 721,677 2,280,128 2,817,026 258,600 2,961,974 2204 Tda Fund - Sb 325 122,351 1,643,446 2,127,256 — —
2205 Fire Grants 451,831 — 895,882 71,418 —
2209 Fire Ground Emergency Transp. 3,404,250 5,882,580 6,427,291 5,111,909 6,239,162 2211 Peg 107,979 294,123 257,500 89,450 257,500
2212 Waste & Environmental Fund 5,009,277 909,184 1,093,957 692,087 954,952 2213 Local Law Enforcmnt Blk Grant 93,975 27,788 36,185 36,181 — 2214 Citizens Opt Public Sfty Fund 74,505 1,500,532 1,007,864 148,684 12,730 2216 Asset Forfeiture St Set Aside 40,000 115,000 65,000 65,000 65,000 2217 Fire Development Fund 1,202 5,116 467,287 414,663 — 2218 Police Development Fund 737 — — — —
2219 Asset Forfeitures 343,084 359,006 2,076,185 — 2,071,657 2220 Open Space Development 580 4,350 — — —
2221 Office Of Traffic Safety Grant 472,042 548,172 483,800 283,726 40,000 2223 State & Federal Funding 3,182,799 2,899,484 65,993,643 1,636,942 1,488,671 2224 Lld No. 2 1,210,621 1,179,336 1,053,567 944,608 1,100,250 2225 Landscape Maintenance 766,798 860,221 914,357 774,107 922,392 2226 Scaqmd Ab 2766 45,743 56,906 27,630 40,556 124,598 2230 Local Drainage 412,838 472,295 34,169,493 3,693,518 320,000 2234 Community Devel Block Grant 852,771 2,514,087 2,175,186 588,207 1,077,633 2235 Home Program — 37,447 716,779 25,663 343,254
2238 CalHOME PROGRAM — — 1,200,000 34,868 1,000,000
2245 Pers Property Tax Fund — 200 — — —
2246 Housing Improvement Program 20 2,660 — — —
2247 Police Grants 1,006,838 63,788 2,005,691 1,182,027 65 2248 Community Services Grant Fund — — 2,041,950 737,694 — 2250 Traffic Development Fund 1,324,224 2,651,677 11,234,422 1,626,815 — 2255 Street Median Development Fund 7,677 209,799 — — — 2270 General Facilities Devel Fund 1,035 — — — —
All Funds Expenditure Summary
City of Rialto Proposed Budget
244
2283 Omnitrans Measure I Rmp 4,830 97,465 86,861 — —
2490 Street Light Assessment Distr. 1,293,209 1,886,250 1,400,670 1,649,871 1,649,164 Special Revenue Fund Subtotal 30,461,983 35,293,737 149,350,640 20,840,351 26,583,709 Rialto Housing Authority
2236 Rialto Housing Authority 28,516 7,036 5,000 — 5,000 Rialto Housing Authority Subtotal 28,516 7,036 5,000 — 5,000 Capital Projects Fund
3300 Capital Projects Fund 15,327,115 13,253,344 24,348,479 6,951,593 8,261,143 3301 Fair Share Agreement 7,582,428 545,664 1,276 — —
Capital Projects Fund Subtotal 22,909,543 13,799,008 24,349,755 6,951,593 8,261,143 Enterprise Fund
5610 Airport Operations (150,541) 92 1,700 373 1,700
5630 Cemetery 60,294 35,273 93,161 76,828 98,902
5631 Cemetery-Endowment (13,146) (17,071) — (6,107) —
5680 Utility Services — — 5,967,349 2,294,446 4,090,726 Enterprise Fund Subtotal (103,393) 18,295 6,062,210 2,365,540 4,191,328 Rialto Utility Authority
5660 Sewer Enterprise 28,245,764 29,285,983 16,931,607 14,547,732 33,346,726 5670 Water Enterprise 20,657,135 18,081,300 26,997,796 8,310,392 20,687,455 Rialto Utility Authority Subtotal 48,902,899 47,367,283 43,929,403 22,858,124 54,034,181 Internal Service Funds
6720 Workers Compensation Ins. 4,834,483 3,335,851 4,842,102 2,670,350 4,897,281 6730 General Liability Internal Srv 6,829,199 15,221,477 12,118,594 6,811,771 11,932,281 Internal Service Funds Subtotal 11,663,682 18,557,328 16,960,695 9,482,121 16,829,562 Rialto Successor Agency
7343 Rsa-Rda Successor Admin 5,464,588 5,228,786 21,000 10,763,023 10,743,264 Rialto Successor Agency Subtotal 5,464,588 5,228,786 21,000 10,763,023 10,743,264 Debt Service Funds
7821 Opeb Trust (2,062,165) 2,767,389 — 3,001,243 —
7870 Cfd 87-1 Fund 1,754 — — — —
7871 Cfd 2006-1 Fund 549,709 461,288 — 353,613 360,238
7872 Cfd 2016-1 Fund 86,768 65,000 — — —
Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
All Funds Expenditure Summary
City of Rialto Proposed Budget
245
7873 Cfd 2019-2 Fund 351,555 293,431 — 247,131 —
7875 CFD 2020-1(El Rancho Verde) 17,611,377 2,252,781 — 12,280,920 — Debt Service Funds Subtotal 16,538,998 5,839,888 — 15,882,907 360,238 Subtotal 282,778,316 300,957,787 404,359,200 209,848,776 294,056,904 Total Expenditures 282,778,316 300,957,787 404,359,200 209,848,776 294,056,904 Account
Number
Actual
2023/2024
Actual
2024/2025
Revised
Budget
2025/2026
YTD Actuals
2025/2026
Proposed
Budget
2026/2027
Supplemental Information
Proposition 4 - Government Spending Limits
City of Rialto Proposed Budget
248
Propositi on 4 - Governm ent Spendin g Lim its
Proposition 4 – Government Spending Limits
In November 1979, voters approved Proposition 4, also known as the Gann Initiative. This measure added Article XIII B to the California Constitution, establishing limits on the amount of revenue that state and local governments, including cities, may appropriate each fiscal year.
These limits are commonly referred to as the Gann Spending Limit.
The annual appropriation limit is determined using a formula that factors in population growth, changes in state per capita income, and changes in the assessed value of non-residential property. Certain expenditures are excluded from this limit, including appropriations related to proprietary functions such as water, wastewater, and airport operations, as well as Redevelopment Agency activities.
If appropriations exceed the established limit, Proposition 4 requires that the surplus be returned to taxpayers within two years. However, appropriations may be averaged over a two-year period before being subject to the excess revenue provisions of the Gann limit.
The City of Rialto calculates its current year appropriation limit by multiplying the prior year’s limit of $367,237,112 by the annual percentage change in the City of Rialto’s population (1.017) and percentage change in local assessment (1.1269). This results in a current year limit of $420,874,773. This method ensures a prudent financial buffer, supporting the City’s long-term fiscal stability.
0 50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Gann Appropriations Limit
Gann Limits Budgeted Actual/Forecasted
Proposition 4 - Government Spending Limits
City of Rialto Proposed Budget
249
Step 1
Determine Maximum Limit for Current Year's Appropriations from Proceeds of Taxes
2025/2026 appropriations subject to limitation
(Base year appropriations from "proceeds of taxes") 367,237,112 Roll forward for change in loocal assessment (1.1269) times the change in City population (1.0170) x 1.1461
Maximum limit for current year's appropriations from "proceeds of taxes" 420,874,773 Step 2
Allocate Revenues Between "Proceeds Of Taxes" and "Nonproceeds Of Taxes" Governmental Fund Type Revenues (subject to limitation) Proceeds of Taxes 134,016,986
Nonproceeds of Taxes 44,876,051
Total Revenues 178,893,037
Step 3
Determine Current Year's Actual Appropriations From Proceeds of Taxes Budgeted appropriations 175,315,726
(all governmental fund types subject to limitation)
Less: nonproceeds of taxes (per Step 2) 44,876,051
Less: exclusions provided under Section 9 of Gann:
Appropriations for Debt Service 3,104,381
Capital Asset Exclusions 0
Appropriations for additional services
mandated by courts or federal government 0
Budgeted appropriations from "Proceeds of Taxes" before increase in contingency reserves 127,335,293
City of Rialto
Calculation of Gann Spending Limitation
For the 2026/2027 Fiscal Year
Proposition 4 - Government Spending Limits
City of Rialto Proposed Budget
250
Add: Current year's increase in contingency reserves in governmental funds. Increase would be the lesser
of the "allowable" increase or the actual increase
in fund balances in governmental funds for the year
Allowable Increase
Maximum limit for current year's appropriations (per Step 1) 420,874,773 Budgeted "Proceeds of Taxes" 127,335,293
Allowable Increase 293,539,480
Fund Balance Change
Beginning Fund Balance 167,231,293
Ending Fund Balance 162,701,890
Change Increase (Decrease) (4,529,403)
Current Year's Actual Appropriations from "Proceeds of Taxes" 127,335,293 Step 4
Comparison of Current Year's Actual Appropriations From "Proceeds of Taxes" and Maximum Limit
Maximum limit for appropriations from "Proceeds of Taxes" (Step 1) 420,874,773 Actual appropriations from "Proceeds of Taxes" (Step 3) 127,335,293 Step 5
Comparison of "Proceeds of Taxes" and Appropriations From "Proceeds of Taxes"
Proceeds of Taxes (Step 2) 134,016,986
Appropriations limit from "Proceeds of Taxes" (Step 1) 420,874,773 Extra appropriations available under limit 286,857,787
Budgetary and Debt Management Practices
City of Rialto Proposed Budget
251
Bud getary and Debt Manag ement Prac tices
Budgetary and Debt Management Practices
To comply with the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) recognitio n criteria the budget document must include a description of the budget review and debt management process. Below are descriptions of the budget review process, the General Fund reserve review process, the Cost Allocation Plan (CAP) methodology, debt management procedures, and how the Capital Improvement Plan (CIP) correlates with the budget process.
BUDGETARY ACCOUNTING
Guiding principles and policies for budget preparation include ensuring the budget is structurally balanced (i.e., ongoing expenditures are funded by ongoing revenue sources), estimates and appropriations are conservative, and the City target a 30% General Fund reserve.
Once approved by the City Council, the annual budget provides the parameters for the general operation of the City. It includes anticipated expenditures and the expected means to finance them.
BUDGETARY PROCESS
The budget development process follows a structured timeline beginning in March and culminating with City Council adoption in June. The Budget Division staff work closely with each department, fostering collaborative relationships to assist in developing projected revenues and expenditures. They also help ensure adherence to the established timetable, keeping the budget process organized, efficient, and on track.
x Staffing Requests
Requests for staffing changes must be submitted by mid-March. These are reviewed by the Finance Director and City Manager. Once approved, the changes are incorporated into the authorized position listing, which is used to calculate personnel costs for each department.
x Department Budget Submissions
Departments are required to submit revenue and expenditure details by the end of March using the accounting budget program. Department heads must review and approve these entries prior to submitting them to the Finance Department.
x Finance Department Review
The Budget Division reviews all departmental submittals to ensure alignment with:
o Authorized positions
o Internal allocations
o Internal Service Fund Charges
o Debt service obligation
o Overall fiduciary responsibility
The Budget Division then finalizes the budget input based on this review.
Budgetary and Debt Management Practices
City of Rialto Proposed Budget
252
Budgetary and Debt Management Practices
x Executive Review and Council Workshops
A final review of the budget is conducted by the City Manager and Finance Director in collaboration with each department. Following this, budget workshops are held with the City Council, during which questions are addressed and clarified.
x Council Adoption
The final budget is presented to the City Council for adoption, typically at the second Council meeting in June. The City Council retains the authority to amend the budget at any time during the fiscal year.
The City Manager may authorize a budget transfer between line items and programs if the total budget does not exceed the amount approv ed by the City Council. Budgetary changes between funds require City Council approval and all increases in appropriations must be accompanied by a funding source.
REVENUES
Revenue projections are a critical component of a credible budget proposal, forming the foundation for planned expenditures. These projections are developed by analyzing historical trends and incorporating forecasts based on new development, anticipated population changes, and the area’s economic conditions
CAPITAL IMPROVEMENT PROGRAM
The Capital Improvement Program (CIP) is a five-year plan that outlines expenditures and funding sources for capital projects. Most projects are supported by grants or other restricted funding sources. The plan is reviewed annually, and projects may be revised or re-prioritized due to factors such as rising construction costs or shifting community priorities. Capital project allocations are incorporated into each fund’s operating budget.
COST ALLOCATION
The Cost Allocation Plan (CAP) is a financial and budgeting tool used to identify and distribute indirect costs incurred by the City in administering and supporting special projects, funds, and contracts. The City of Rialto uses the CAP to determine the appropriate reimbursement to the General Fund for these indirect costs.
To guide this process, the City follows the Office of Management and Budget (OMB) Circular A-87, which outlines principles and methods for allocating costs to federally funded grant projects. Among the five allocation methods described in the Circular, the City has selected the double step-down method for its accuracy and equity.
Budgetary and Debt Management Practices
City of Rialto Proposed Budget
253
Budgetary and Debt Management Practices
The double step-down method involves two main steps:
1. Initial Allocation – Central Services Departments (e.g., City Council, City Manager, City Clerk, City Attorney, City Treasurer, Human Resources, Finance, Non-Departmental, and Depreciation) allocate indirect costs to both other Central Services and Operating Departments.
2. Close-Out Step – A final reallocation is made from higher-tier Central Services Departments to lower-tier ones and to Operating Departments, ensuring that all indirect costs ultimately flow to the Operating Departments.
These indirect costs—commonly referred to as overhead or Administrative and General expenses—represent the true cost of providing services and help ensure accurate, transparent budgeting across City operations.
DEBT MANAGEMENT
The City is committed to mainta ining fiscal responsibility in the issuance and management of long-term debt. Prior to securing long-term financing backed by the General Fund, the City prepares a comprehensive feasibility analysis to evaluate the impact of debt service on current and future operations. This includes an assessment of the reliability and stability of existing revenue sources to ensure the new debt can be supported without compromising essential services.
When pursuing debt financing, the City may utiliz e either competitive bidding or a negotiated sale. The chosen method depends on factors such as market volatility, the complexity of the financing structure, and the type of security being offered. The City seeks to obtain the highest possible investment-grade credit ratings on all direct debt and may pursue credit enhancements—such as letters of credi t or bond insurance—when advantageous for marketing purposes and when they are available and cost-effective.
Debt obligations are monitored annually in coordination with the budget process to ensure ongoing compliance with bond covenants and adherence to federal arbitrage regulations. The City also maintains open and transparent communication with bond rating agencies, providing timely and complete disclosure of its financial condition through the publication of financial statements and other required reports
Description of Fund Types and Funds
City of Rialto Proposed Budget
254
Description of Fund Types and Fund s
Governmental Fund Types
GENERAL FUND
Fund 1010: General Fund - This is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other f unds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities that are not required to be accounted for or paid by another fund.
SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues derived from spec ific sources that are required by law or administrative regulation to be accounted for in a separate fund. Funds included are:
Fund 2200-2201: Measure I Funds – 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.
Fund 2202-2203: 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.
Fund 2204: Transportation Development Act Fund – To account for revenues received under the Transportation Development Act. These funds are used for improvements to City streets.
Fund 2205: Fire Grant Fund – To account for monies received and expended by the Fire Department for various Grants.
Fund 2207: Traffic Safety Prop.1B Fund – Accounts for revenues received under the Traffic Safety Proposition 1B. These funds are used for improvements to City streets.
Fund 2209: 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.
Fund 2210: Park Development Fund – To account for development fees collected and used for the acquisition of parklands and the construction of new and expansions of park facilities.
Fund 2211: PEG Fund – To account for the Public, Educational, or Governmental access franchise fee activity.
Fund 2212: 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.
Fund 2213: Local Law Enforcement Block Grant – To account for monies received and expended by the City as a participant in the Federal Local Law Enforcement Block Grant program.
Fund 2214: Citizens Option for Public Safety – 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.
Fund 2216: Asset Forfeiture Set Aside 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.
Fund 2217: Fire Development Fund – To account for development fees collected and used to acquire fire safety equipment and build new facilities.
Fund 2218: 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.
Fund 2219: Asset Forfeiture Fund – To account for the revenues and expenditures associated with law enforcement drug and gang prevention. Revenues are derived from the sale of assets seized by law enforcement.
Description of Fund Types and Funds
City of Rialto Proposed Budget
255
Fund 2220: 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.
Fund 2221: Office of Traffic Safety Fund – Accounts 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.
Fund 2222: Transportation Enhancement Fund – To account for monies received and expended by the City as a participant in federal Transportation Enhancement Grants for City infrastructure and capital improvements.
Fund 2223: Major Grant Capital 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.
Fund 2224,2225,2490: Street Lighting and Landscape Maintenance Funds – 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.
Fund 2226: South Coast Air Quality Management District (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.
Fund 2230: Drainage Development Fund – To account for development fees collected and used for the installation of storm drains and flood control facilities.
Fund 2233: Neighborhood Stabilization Program – To account for monies received and expended by the City as a participant in the Housing and Economic Recovery Act of 2008.
Fund 2234: Community Development Block Grant Fund – To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant Housing Program.
Fund 2236: Rialto 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.
Fund 2239: Neighborhood Stabilization Program 3 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).
Fund 2241: Neighborhood Stabilization Program Income – To account for monies received and expended by the City as a participant in the Housing and Economic Recovery Act of 2008.
Fund 2244: Neighborhood Stabilization Program 3 Program Income – 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).
Fund 2245: PERS Property Tax Fund – To account for a voter approved property tax levy used to pay the City’s employee retirement costs.
Fund 2246: Development Services Housing - 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.
Fund 2247: Police Grant Fund - To account for monies received and expended by the Police Department for various Grants.
Fund 2250: Traffic Development Fund – Accounts for development fees collected and used for street and traffic control improvements.
Fund 2255: Street Median Development Fund – Accounts for development fees collected and used for street median improvements.
Fund 2270: 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 Description of Fund Types and Funds
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Fund 2275: Library Facilities Development Fund – To account for development fees collected and used for acquisition, expansion and construction of library facilities.
Fund 2282: Business Improvement District Fund – To account for the collection of specialty property assessment taxes in the downtown business improvement district. The use of these funds is managed by the Downtown Rialto Business Improvement District Association (BIDA).
DEBT SERVICE FUNDS
Debt Service Funds account for the payment of principal and interest on general long-term debt of the City. Funds included are:
Fund 4520: Non-Profit Public Building Authority – To accumulate funds for the payment of principal and interest on the 1997 Refunding Certificates of Participation.
Fund 7821: OPEB Trust - To account for the activities of the City’s plan for post-retirement medical benefits.
Fund 7870: Community Facilities District 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.
Fund 7871: CFD 2006-1 Elm Park Fund – The City acts as a custodian for collection of special taxes for the Community Facility District 2006-1. The special tax is used for retirement of limited obligation bonds. The City acts in a fiduciary capa city as custodian for any monies available in this fund.
Fund 7872: CFD 2016-1 Public Services Fund – The special tax is used to recover the cost of new residential development.
CAPITAL PROJECTS 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:
Fund 3300: Capital Projects Fund (Public Works) - This fund is used to account for grant and other one-time income received to fund expenditures related to city infrastructure and development improvements.
Fund 3301: Fair Share Agreement Fund – Accounts for income received to fund expenditures related to City infrastructure and development improvements.
Fund 3302: 2005 TABS – 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.
Fund 3303: 2008 TABS – 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.
PROPRIETARY FUND TYPES
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:
Fund 5610: Airport 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.
Fund 5630: Cemetery Fund – All activities necessary to provi de the operations and maintenance of the City’s cemetery are accounted for in this fund, including administration, operations, maintenance, capital improvements and depreciation.
Fund 5631: Cemetery Endowment Fund – All endowment funds co llected to provide the future operations and maintenance of the City’s cemetery are accounted for in this fund.
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Fund 5660: Wastewater Fund – All activities necessary to provide wastewater services and sewage treatment to the residents of the City are accounted for in this fund, including operations, maintenance, capital improvements and depreciation.
Fund 5670: Water Fund – All activities necessary to provide for t he operations of the City’s water utility are accounted for in this fund, including administration, operations, maintenance, capital improvements and depreciation.
Fund 5680: Utility Services Fund – All activities necessary to provide for the remaining City operations of water and wastewater activities not included to the Concession Agreement are accounted for in this fund, including administration, operations, maintenance, capital improvements and depreciation.
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:
Fund 6720: Workers’ Compensation Fund – Accounts for the City’s self-insured workers’ compensation claims program.
Fund 6730: General Liability Fund – Accounts for the City’s self-insured general liability program.
AGENCY FUNDS
Fiduciary Funds, comprised only of Agency Funds, are used to account for assets held by the City as an agent for other governmental units, private organizations or individuals. Funds included are:
Fund 7343: Redevelopment Successor Agency Fund – To account for the City’s fiduciary capacity during the dissolution process and the wind down of the former Redevelopment Agency.
Glossary of Terms
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Glossary of T erms
Glossary of Terms
The Rialto Budget Document contains a number of terms used in a manner unique to public finance. These terms are included in the following glossary.
ACCOMPLISHMENT: Successful achievements of tasks performed by each department of the City.
APPROPRIATION: An authorization by the City Council to make expenditures and to incur obligations for a specific purpose. An appropriation is usually limited in amount as to the time when it may be expended.
APPROPRIATION RESOLUTION: The official enactment by the City Council to establish legal authority for City officials to obligate and expend resources.
ASSESSED VALUATION: A value that is established for real property for use as a basis for levying property taxes.
ASSESSMENTS: Charges made to parties for actual services or benefits received.
AUDIT: A financial audit is a review of the accounting system and financial information to determine how government funds were recorded, spent and whether expenditures were in compliance with the legislative body’s appropriation.
BOND: A Municipal Bond is a written promise from a government to repay a sum of money on a specific date at a specified interest rate. Bonds are most frequently used to finance large capital projects and infrastructure improvements, such as buildings, streets, and bridges.
BUDGET: A plan of financial operation listing an estimate of proposed appropriations and the proposed means of financing them for a particular time period. The budget is “proposed” until it has been approved by the City Council at which time it is “adopted”.
BUDGET ADJUSTMENT: A procedure to revise a budget appropriation.
BUDGET CALENDAR: The financial plan report, reviewed and approved by the City Administrator.
BUDGET MEMO: The opening section of the budget which provides the City Council and the public with a general summary of the most important aspects of the budget and changes from the previous fiscal year.
CAPITAL IMPROVEMENT PROGRAM:
The program responsible for the maintenance of and the construction of public facilities, infrastructures and assets as need demands.
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CONTINGENCIES: Funds set aside by the City for emergencies and economic uncertainties.
DEBT SERVICE: The City’s obligation to pay the principal and interest of all bonds and other debt instruments according to a predetermined payment schedule.
DEPARTMENT: A major administrative function of the City which indicates overall management responsibility for an operation or a group of relat ed operations within a functional area.
DISBURSEMENT: Payment for goods and services in cash or by check.
ENCUMBRANCE: The commitment of appropriated funds to purchase goods which have not yet been received, or services that have yet to be rendered.
ENDOWMENT: The cemetery endowment is designed to ensure that income will always be available for the future and continued maintenance and upkeep of the cemetery, even when all the interment spaces are sold.
EXPENDITURE/EXPENSE: The term, expenditure, refers to the outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expenditure is actually paid. This term applies to Governmental Funds. The term expense is used for Enterprise and Internal Service Funds. Encumbrances are to reserve funds to be expended; they are not expenditures.
FINANCIAL PLAN: A parent document for the budget which establishes management policies, goals and objectives for all programs within the government.
FISCAL YEAR: The beginning and ending period for recording financial transactions. The City of Rialto has specified July 1 to June 30 as its fiscal year.
FIXED ASSETS: Assets of long-term character such as land, buildings, machinery, furniture and other equipment.
FUNCTION: A group of related programs crossing organization (departmental) boundaries and aimed at accomplishing a broad goal or a major service.
FUND: An accounting entity that records all financial transactions for specific activities or government functions. Eight commonly used funds in public accounting are: general fund, special revenue funds, capital project funds, agency funds, enterprise funds, and internal service funds.
FUND BALANCE: Fund balance is the excess of assets over liabilities and is therefore also known as surplus funds. This term applies to governmental funds only.
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GOAL: A statement of broad direction, purpose or intent.
GRANT: Contributions of gifts of cash or other assets from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is the Community Development Block Grant allocated by the Federal Government.
INVESTMENT INCOME: Revenue received as interest from investment of funds not currently required to maintain current operation.
LINE-ITEM BUDGET: A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each specified category. Line item budgets are produced and used internally for budgetary control purposes only.
OPERATING BUDGET: The portion of the budget that pertains to daily operations providing basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, materials, and capital assets required to maintain service levels.
PROGRAM: Group activities, operations, or organizational units directed to attaining specific purposes or objectives.
PROJECTS: A specific activity, service, or objective within a program.
REDEVELOPMENT SUCCESSOR AGENCY: The Redevelopment Successor Agency was formed to account for the City’s fiduciary capacity during the dissolution process and the wind down of the former Redevelopment Agency.
RESERVE: An account used to indicate that a portion of a fund’s balance is legally restricted for a specific purpose and is, therefore, not available for general appropriation.
RETAINED EARNINGS: The accumulated earnings of an Enterprise or Internal Service Fund which have been retained in the fund and which are not reserved for any specific purpose.
REVENUE: Funds that the government receives as income such as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.
RIALTO UTILITY AUTHORITY: The Rialto Utility Authority was formed to provide for the lease, ownership, operation, maintenance, construction and financing of the Water and Wastewater Utility systems and any other utility system or service.
RISK MANAGEMENT: An organized attempt to protect a government’s assets against accidental loss in the most economical manner.
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SUBVENTIONS: That portion of revenues collected by other government agencies on behalf of the City.
TRANSIENT OCCUPANCY TAX: A city tax on hotel room rentals often called the “Bed Tax”.
UTILITY USERS TAX: The utility users tax was originally passed by majority vote on June 3, 2003 and reaffirmed by voters on November 6, 2007 and on March 5, 2013 for another five years. This tax will sunset in June 30, 2018. The tax is imposed on all utilities (i.e. electric, gas, water, sewer, cable, and cell phone) at 8%. The revenues are used to assist the City in improving public safety and general governmental services to the community.
WORKING CAPITAL: Working Capital comprises the total net current assets of the City minus its current liabilities. Current assets are cash and assets that can be converted to cash within one year or a normal operating cycle; current liabilities are monies owed that are due within one year. Working Capital is simply the amount of money that the City has available for use.