1. Attachment 1 - City of San Bernardino Annual Comprehensive Financial Report (ACFR) for the Year Ended, June 30, 2023

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

Prepared by the City of San Bernardino Finance Department San Bernardino, California

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

Table of Contents

INTRODUCTORY SECTION Page
Letter of Transmittal .......................................................................................................................................... i GFOA Certificate of Achievement ................................................................................................................ vi Organizational Chart ....................................................................................................................................... vii City Officials .................................................................................................................................................... viii

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis ......................................................................................................... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ................................................................................................... 23 Statement of Activities ......................................................................................................... 25 Fund Financial Statements
Balance Sheet – Governmental Funds .............................................................................. 27 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................. 28 Statement of Revenues, Expenditures, and Changes in
Fund Balances – Governmental Funds ........................................................................... 29 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities .................................................................... 30 Statement of Net Position – Proprietary Funds .............................................................. 31 Statement of Revenues, Expenses, and
Changes in Net Position – Proprietary Funds ............................................................... 35 Statement of Cash Flows – Proprietary Funds ................................................................ 37 Statement of Fiduciary Net Position – Fiduciary Funds................................................. 41 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ............................ 42 Notes to the Basic Financial Statements .................................................................................. 43 Required Supplementary Information (Unaudited):

Budgetary Information .................................................................................................................... 123 Budgetary Comparison Schedules:

General Fund ...................................................................................................................... 124 American Rescue Plant Act Special Revenue Fund....................................................... 125 Federal and State Grants Special Revenue Fund ........................................................... 126 Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 127 Schedule of the Successor Agency’s Proportionate Share
of the Net Pension Liability and Related Ratios........................................................................ 131 City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

Table of Contents (Continued)

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

Schedule of Contributions – Pension ............................................................................................ 132 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................. 135 Schedule of Contributions – OPEB .............................................................................................. 136 Combining Financial Statements and Schedules:

Combining Balance Sheet – Non-Major Governmental Funds ................................................ 139 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds ................................................................. 143 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Cable TV Special Revenue Fund ...................................................................................... 147 Asset Seizure Special Revenue Fund ............................................................................... 148 Low and Moderate Income Housing Special Revenue Fund ...................................... 149 Alternative Transportation Special Revenue Fund ........................................................ 150 RMRA Gas Tax Special Revenue Fund .......................................................................... 151 Special Gas Tax Special Revenue Fund ........................................................................... 152 Traffic Safety Special Revenue Fund ............................................................................... 153 Measure I Special Revenue Fund ..................................................................................... 154 Storm Drain Construction Capital Projects Fund ......................................................... 155 Special Assessments Capital Projects Fund .................................................................... 156 Cultural Development Construction Fee Capital Projects Fund................................. 157 Impact Fees Capital Projects Fund .................................................................................. 158 Combining Statement of Net Position – Internal Service Funds ............................................. 160 Combining Statement of Revenues, Expenses,
and Changes in Net Position – Internal Service Funds ........................................................... 161 Combining Statement of Cash Flows – Internal Service Funds ............................................... 162

STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents................................................................................................ 164 Financial Trends Schedules
Net Position by Component........................................................................................................... 165 Changes in Net Position .................................................................................................................. 167 Fund Balances of Governmental Funds ....................................................................................... 171 Changes in Fund Balances of Governmental Funds .................................................................. 173 Tax Revenues by Source – Governmental Funds ....................................................................... 175

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023

Table of Contents (Continued)

STATISTICAL SECTION (Unaudited) (Continued)
Revenue Capacity Schedules
Assessed Valuation and Estimated Actual Value of Property ................................................... 176 Taxable Sales by Category ............................................................................................................... 177 Principal Sales Tax Remitters ......................................................................................................... 179 Direct and Overlapping Property Tax Rates ................................................................................ 180 Principal Property Taxpayers .......................................................................................................... 181 Property Tax Levies and Collections ............................................................................................. 182 Top 10 Customers – Water and Sewer Treatment ...................................................................... 183 Connections and Revenues by User Type – Water ..................................................................... 184 Water Rate History – Minimum Monthly Charge ....................................................................... 185 Sewer Treatment Rate History ....................................................................................................... 186 Debt Capacity Schedules
Ratio of Outstanding Debt by Type .............................................................................................. 187 Ratio of General Bonded Debt Outstanding ............................................................................... 189 Schedule of Direct and Overlapping Bonded Debt .................................................................... 190 Legal Debt Margin ........................................................................................................................... 191 Debt Service Coverage .................................................................................................................... 193 Demographic and Economic Information
Demographic and Economic Statistics ......................................................................................... 194 Budgeted Full-Time and Part-Time Positions by Function ....................................................... 195 Operating Information
Capital Asset Statistics ..................................................................................................................... 196 Operating Indicators by Function ................................................................................................. 197

TRODUCTORY SECTION
 Letter of Transmittal
 GFOA Certificate of Achievement
 Organizational Chart
 City Officials

290 North D St, San Bernardino, CA 92401 | P: 909-384-5242 | F: 909-384-5043| www.SBCity.org i

March 29, 2024

To the Honorable Mayor, Members of the City Council, and Citizens of the City of San Bernardino:

We are pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of San Bernardino (the City) for the fiscal year ended June 30, 2023. This report is published in accordance with local ordinance and state law requirements that financial statements be presented in conformity with generally accepted accounting principles (GAAP) and audited in a ccordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.

This report contains management’s representations concerning the City’s finances. Management assumes full responsibility for the completeness and reliability of all of the information presented and that it is reported in a manner that fairly presents the financial position and operations of the various funds and component units of the City. To provide a reasonable basis for making these representations, and assurance that the financial statements will be free from material misstatement, City management has established a comprehensive internal control framework designed both to protect its assets and to compile sufficient reliable information to prepare the City ’s financial statements in conformity with accounting principles generally accepted in the United States of America . Because the cost of internal controls should not outweigh its benefits, internal control s have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Rogers, Anderson, Malody, & Scott , LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance the City’s financial statements for the fiscal year ended June 30, 20 23 are free of material misstatement. The independent auditor concluded it was reasonable to r ender an unmodified opinion and that the City ’s financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP.

The independent auditor’s report is presented as the first component of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative overview and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov ii
Profile of the Government

The City of San Bernardino, incorporated as a Charter City in 1854, is located in Southern California, approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City has a land area of approximately 64 square miles and population of over 2 23,000. The City is the County Seat of San Bernardino County, the largest county by land area in the nation. Along with adjacent Riverside County, these two counties comprise what is called the “Inland Empire,” so-named because it formerly was a vast agriculture domain (primarily citrus). This area is immediately east of the Los Angeles/Orange County metropolitan area.

The City operates under a Council-Manager form of government. Under this governance plan, the elected Mayor and City Council appoints a full -time professional City Manager responsible for the day -to-day administration of City government. The Mayor and City Council represent the legislative branch of the government and are responsible for setting City policy and allocating resources. The City Manager and staff represent the executive branch of the government and are tasked with recommending policy and implementing the Mayor and City Council’s direction. Each City department, office, and agency is administered by an executive appointed by and subject to the direction and supervision of the City Manager, except the Offices of the Council, Mayor, City Attorney a nd City Clerk, the Library Board of Trustees, and the Water Board, which are administered by their respective executive officers. The City Attorney, City Clerk, and City Manager work directly for the entire City Council and receive direction only from the full body, acting by majority vote, conducted at a publicly noticed meeting.

The City provides a broad range of services, including public safety, water and sewer, infrastructure and highway maintenance, recreational activities, and cultural events. The C ity contracts with the San Bernardino County Fire Protection District for fire protection and emergency medical aid services. The City is financially accountable for Affordable Housing Solutions of San Bernardino, Inc., the San Bernardino Joint Powers Financing Authority, and the Successor Agency, which was formed to hold the assets of the former E conomic Development Agency. Therefore, these entities are reported within the City’s financial statements. Additional information regarding these legally separate entities can be found in Note 1 in the notes to the financial statements.

The annual budget serves as the foundation for the City’s financial planning and control. Per the City’s Municipal Code, the City Manager is required to prepare and submit the proposed budget to the Mayor and City Council at least sixty days prior to the beginning of each fiscal year. The accompanying budget message from the City Manager detail s the budget in both fiscal terms and describes how the proposed budget relates to the City’s work programs, organizational goals, and community priorities. The legal level of budgetary control is at the fund level with transfers over $5,000 between departments reported to Council on a quarterly basis on the Consent Agenda . Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted.

For the general fund and major governmental funds, this comparison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds other than 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iii
the general fund with appropriated annual budgets , this comparison is presented in the supplementary section of the accompanying financial statements.

Economic Condition

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

Local economy: The City continues to show strong economic results even in face of a slowing national economy in 2022 and 2023 and with rising interest rates. After reaching as high as 16.4% in June 2020, the unemployment rate for the Riverside -San Bernardino-Ontario MSA declined to 8.0% in June 2021, and was 5.0% as of June, 2023.

The San Bernardino International Airport (SBD) celebrated its first passenger airline flight when Breeze Airways began direct flights from SBD to San Francisco on August 4, 2021, and is continuing to grow.

SBD now hosts direct flights to San Francisco, Provo, Utah, Hartford, Connecticut, and Phoenix, Arizona.

Development throughout the City is booming. D evelopers recognize not only the advantage of San Bernardino’s central location in the Inland Empire , but also the City’s growing industry , nearby colleges and universities, and space to expand operations . The 5 th Street Gateway project is nearing completion
with a new Starbucks, a 7-11 store and gas station, as well as Sonic and Del Taco restaurants, all adjacent to the 215 highway. New restaurants, retail outlets and hotels are being built along to I-10 corridor and on main arteries throughout the City.

San Bernardino is a major logistics hub in Southern California, and the logistics and distribution presence in the City drives sales tax receipts from online purchases. With the shift in consumer spending habits due to the pandemic (e-commerce spending increased by over 46% from the previous period), San Bernardino experienced a considerable increase in sales tax collections , when many other cities were experiencing a decline in revenue. While consumer spending has shifted back to brick-and-mortar stores to some degree, pre-pandemic trends were indicating that shoppers were moving to online shopping for convenience, and the pandemic merely accelerated the shift. Current trends support that online shopping is likely to continue to grow, and the City anticipates that sales tax receipts will remain high over the course of the coming year.

Nevertheless, the City maintains conservati ve long -range forecasts with the assumption that sales tax growth will level off over time as models for logistics and the distribution of goods change.

Residential development market in the City continues to grow, even with the slowdown in home buying driven by higher interest rates . GFR Homes is building single family homes in the northwest area of the City (Ward 5) where they are building 74 homes. Townhomes and multi-family developments are planned for sites in both the northeast (Ward 4) and the central part of the City (Ward 1). While housing costs have increased over the last several years, San Bernardino County remains among the most affordable in California, with a median home price just under $500,000. In San Bernardino County, 24% of households can afford to purchase a median priced home. Statewide, that number drops to 15%, while nationally, 35% of households can afford a median priced home.

290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iv
Strategic Planning: On November 17, 2021, the Mayor and City Council adopted Resolution 2021-271, establishing the key strategic targets and goals for 2021-2025.

Through various strategic planning workshops, the Mayor and City Council identified the following four strategic priorities and goals for the City:

1. Improved Operational and Financial Capacity
a. Establish clear policy direction and predictable organization structures b. Continue to seek opportunities to secure long-and-short-term revenue sources c. Implement, maintain, and update a fiscal accountability plan d. Create a framework for spending decisions
e. Minimize risk and litigation exposure
f. Create an asset management plan

2. Focused, Aligned Leadership and Unified Community
a. Build a culture that attracts, retains, and motivates the highest quality talent b. Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness c. Re-establish City as the Regional Leader / County Seat d. Develop and implement a community engagement plan

3. Improved Quality of Life
a. Reduce the burden of the unsheltered through engagement, collaboration, and partnerships with other entities
b. Integrate a customer-service orientation and metrics into all City operations c. Constantly evaluate public safety service delivery models to enhance the quality of service d. Improve the City’s appearance, cleanliness and attractiveness

4. Economic Growth and Development
a. Develop a branding and marketing campaign
b. Update the General Plan and Development Code
c. Roll out a strategy to create a 21
st century urban core
The adoption of measurable targets and goals establishes direction and priorities which focus on critical actions necessary to achieve the City’s adopted vision, improve resource utilization, reduce redundancy, and allow the City to establish both stability and seek opportunities that meet these objectives.

Financial Policies: Fiscal policies establish the framework for managing the City’s financial resources and safeguarding the City’s assets in compliance with relevant regulatory mandates, industry standards, and best practices. Maintaining healthy reserves in the General Fund as well as other Funds, is a critical component of the City’s sound financial management practices.

The City’s General Fund Reserve Policy, adopted by the City Council on November 21, 2016, requires maintaining the General Fund Operating Reserve at 25% of the adopted budget for the fiscal year, consisting of an Emergency Reserve of 15% of the adopted budget and an Economic Contingency Reserve of 10% of the adopted budget. As of June 30, 202 3, the General Fund reserve is currently at its required goal of 25%, or $47.98 million.

290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov v
Awards and Acknowledgments

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the third consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both general ly accepted accounting principles and applicable legal requirements.

A
Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

The Government Finance Officers Association (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 20 22. This was the second consecutive year that the City has received this award. This prestigious award recognizes conformance with the highest standards for preparation of state and local government popular reports. The Award is for a period of one year only.

The City will continue to participate in the program.

The City’s budget was also recognized for excellence when it received the GFOA Distinguished Budget Presentation Award for the biennial fiscal year 202 3 and fiscal year 2024 budget document. This award program judges a government’s budget document for compliance with national budgeting best practices.

In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department and oversight from the City Manager’s Office. We would like to express our appreciation to all members of the department who assisted and contributed to its preparation. We would also like to express our appreciation to the Mayor and City Council f or their leadership and support in maintaining the highest standards of professionalism in the management of the City’s Finances.

Respectfully submitted,

Charles A. Montoya Barbara Whitehorn
City Manager Director of Finance & Management Services

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented
to
City of San Bernardino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June
30, 2022
Executive Director/CEO
vi
vii

Animal Services Community and
Economic Development
Finance

Human Resources Information
Technology
Parks and Recreation

Police Public Works Library
Citizens of San Bernardino

Helen Tran
Mayor

Theodore
Sanchez
Ward 1

Sandra Ibarra
Ward 2

Juan Figueroa
Ward 3

Ben Reynoso
Ward 5

Kimberly
Calvin
Ward 6

Damon
Alexander
Ward 7

Charles
Montoya
City Manager

Sonia R.

Carvalho
Appointed
City Attorney

Genoveva
Rocha
City Clerk

Fred Shorett
Ward 4

viii

CITY OF SAN BERNARDINO, CALIFORNIA

CITY OFFICIALS
JUNE 30, 2023

LEGISLATIVE OFFICIALS

Helen Tran ..................................................................................................................................... Mayor* Theodore Sanchez ....................................................................... Member of City Council – Ward 1* Sandra Ibarra................................................................................. Member of City Council – Ward 2* Juan Figueroa ................................................................................ Member of City Council – Ward 3* Fred Shorett .................................................................................. Member of City Council – Ward 4* Ben Reynoso ................................................................................. Member of City Council – Ward 5* Kimberly Calvin ........................................................................... Member of City Council – Ward 6* Damon Alexander ........................................................................ Member of City Council – Ward 7*

CHIEF ADMINISTRATIVE OFFICERS

Charles Montoya ................................................................................................................. City Manager Miguel J. Guerrero ..................... General Manager, San Bernardino Municipal Water Department

DEPARTMENT HEADS

Genoveva Rocha ................................................................................................................... City Clerk** Sonia R. Carvalho........................................................................................ Appointed City Attorney** Barbara Whitehorn ................................................... Director of Finance and Management Services Lynn Merrill .................................................................................................... Director of Public Works Kristine Watson ........................................................................................ Director of Animal Services Mary Lanier ................... Interim Director of Community, Housing, and Economic Development Susie H. Soren ....................................................................................... Director of Human Resources Rolland Kornblau....................................................................... Director of Information Technology Lydie Gutfeld .................................................................................... Director of Parks and Recreation Darren Goodman ............................................................................................................ Chief of Police Edward Erjavek .............................................................................................................. Library Director

*Elected Officials
**Appointed by City Council

FINANCIAL SECTION
 Independent Auditor’s Report
 Management’s Discussion and Analysis
 Basic Financial Statements
 Required Supplementary Information
 Combining Financial Statements and Schedules

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Independent Auditor’s Report

To the Honorable Mayor and members of the City Council of the City of San Bernardino
City of San Bernardino, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Bernardino (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of San Bernardino’s basic financial statements as listed in the table of contents.

In our opinion, based on our audit and the report of the other auditors, the accompanying financial statements 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 of San Bernardino, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the financial statement of the Water Enterprise Fund and the Sewer Enterprise Fund (major funds), which represent the following percentages of assets, net position, and expenses of the following opinion units:

Opinion Unit
Assets Net Position Expenses
Business-type Activities 99.24% 99.36% 99.34%

Major Enterprise Fund:

Water Enterprise
Fund
100.00% 100.00% 100.00%
Sewer Enterprise
Fund
100.00% 100.00% 100.00%

Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Water Enterprise Fund and the Sewer Enterprise Fund, are based solely on the report of the other auditors.

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Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards appl icable to financial audit contained in Government Auditing Standards (GAS), issued by the Comptroller General of the United States.

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of San Bernardino, 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 Matter

As discussed in Note 1 to the financial statements, the City adopted provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

The City of San Bernardino’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS 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 GAS, 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.

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 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 of San Bernardino’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 of San Bernardino’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budget ary Comparison Schedules, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of the Successor Agency’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions – Pension, Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Contributions – OPEB be presented to supp lement the basic financial statements.

Such
information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the in formation for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise of the City’s basic financial statements. The combining and individual non- major fund financial statements and schedules and budgetary comparison information are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual non-major fund financial statements and schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Other Information in the Annual Report

Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated March 29, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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.

San Bernardino, California
March 29, 2024

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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As management of the City of San Bernardino (City), California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 202 3.

We encourage readers to consider the information presented here in conjunc tion with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City ’s basic financial statements. The City’s basic financial statements consist of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City ’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the two reported as net position. Over time, changes in the net position may serve as a useful indicator of whether the financial posit ion of the City is improving or deteriorating.

The Statement of Activities presents information illustrating how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods ( e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements present information about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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City include general governmen t, public safety, public works, culture and recreation, community development, and community services.

The government-wide financial statements include not only the City itself (known as the primary government), but also two legally separate entities: Affordable Housing Solutions of San Bernardino, Inc., and the San Bernardino Joint Powers Financing Authority, for which the City is financi ally accountable. A lthough legally separate, these entities function for all practical purposes as a component of the City, and therefore have been included as an integral part of the primary government. The government -wide financial statements immediately follow this discussion and analysis.

Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance wi th finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near- term financing requirements.

Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, for the General Fund, American Rescue Plan Act Fund, and Federal and State Grants Fund, which are considered major funds. Data from other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.

The basic financial statements also include budgetary comparison sta tements for the General Fund and all governmental funds with a legally adopted budget to demonstrate compliance with the annual budget as adopted (original) and amended (final).

The basic governmental fund financial statements immediately follow the government-wide financial statements.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Proprietary Funds
The City maintains various enterprise funds to report the business-type activities of the Water Fund, Sewer Fund, and Integrated Waste Fund. The Sewer Collection Fund maintained in previous years was closed in 2023 and consolidated with the Sewer Fund. The City also maintains various internal service funds, which are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its self -insurance activities, vehicle fleet operations, and information technology systems. Because these services benefit governmental functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the business- type activities within the g overnment- wide financial statements, only in more detail. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements immediately follow the basic governmental fund financial statements.

Fiduciary Funds
Fiduciary funds account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statements because the resources of those funds are not available to support the City ’s programs. The basic fiduciary fund financial statements immediately follow the basic proprietary fund financial statements.

Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements immediately follow the basic fiduciary fund financial statements.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City ’s annual required contribution to the Defined Benefit Pension Plans and Other Post Employment Benefit Plan. Required supplementary information immediately follows the notes to the basic financial statements. The combining statements and schedules referred to earlier in connection with other governmental funds and internal service funds for non-major Special Revenue Funds, Capital Projects Funds, and Internal Service Funds immediately follow the required supplementary information.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Financial Highlights

 At June 30, 2023, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $521.63 million (net position). Of this amount, $(125.21) million is unrestricted.

 City total net position increased $34.67 million during the fiscal year. Governmental activities net position increased $23.37 million compared to prior fiscal year’s increase of $75.59 million. Business-type activities net position increased $11.30 million compared to prior fiscal year’s increase of $17.19 million.

 As of June 30, 2023, the City’s governmental funds reported a combined ending fund balance of $280.29 million, an increase of $ 22.93 million compared to the prior year. The ending fund balance is primarily identified as: $ 41.42 million (15 percent) Nonspendable, $ 108.92 million ( 39 percent) Restricted, and $129.95 (46 percent) Committed.

 As of June 30, 2023, the City’s proprietary funds (excluding internal service funds) reported a combined ending fund balance of $345.57. Of this amount, $91.74 million is unrestricted.

 At June 30, 2023 , the total committed fund balance for the General Fund was $ 129.95 million or approximately 64 percent of total general fund expenditures.

Government-Wide Financial Analysis
The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. The table on the following page presents a summarization of the City’s assets, liabilities, deferred inflows, and net position for its governmental and business-type activities, with comparative data from the previous year.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Net Position
Net position may serve over time as a useful indicator of a government’s financial condition. In the case of the City, as of June 30, 2023, assets and deferred outflows exceeded liabilities and deferred inflows by $521.63 million.

Approximately $535.70 million of the City ’s net position reflects its net investment in capital assets ( e.g., land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress; less any related outstanding debt used to acquire those assets). The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City ’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

A portion of the City’s net position, $111.14 million, represents resources that are subject to external restrictions on how they may be used. The remaining balance is a deficit in unrestricted net position of $(125.21) million.

This deficit reflects liabilities which exceed assets on hand and is related to the implementation of GASB 68 regarding Pension Plan reporting, GASB 75 regarding OPEB liability reporting, and other long -term liabilities such as obligations for claims and judgments.

2023 2022 2023 2022 2023 2022
Assets
Current and other assets 442,217,523$ 401,777,502$ 240,703,942$ 235,535,555$ 682,921,465$ 637,313,057$ Capital Assets, net 288,357,656 282,012,514 310,275,958 308,633,676 598,633,614 590,646,190 Total Assets 730,575,179 683,790,016 550,979,900 544,169,231 1,281,555,079 1,227,959,247 Deferred Outflows of Resources
Pension related items 112,294,022 42,827,669 18,993,725 7,020,315 131,287,747 49,847,984 OPEB related items - - 4,455,556 1,934,850 4,455,556 1,934,850 Total Deferred Outflows of
Resources 112,294,022 42,827,669 23,449,281 8,955,165 135,743,303 51,782,834 Liabilities
Other liabilities 138,406,698 131,036,633 7,114,088 9,322,631 145,520,786 140,359,264 Long-term liabilities 516,975,078 343,383,670 207,248,931 176,931,355 724,224,009 520,315,025 Total Liabilities 655,381,776 474,420,303 214,363,019 186,253,986 869,744,795 660,674,289 Deferred Inflows of Resources
Pension related items 6,011,660 93,464,801 874,001 17,328,533 6,885,661 110,793,334 OPEB related items - - 10,062,643 11,390,386 10,062,643 11,390,386 Lease related items 3,744,488 4,306,431 3,555,374 3,873,891 7,299,862 8,180,322 Deferred charges on refunding 1,673,144 1,744,342 - - 1,673,144 1,744,342 Total Deferred Inflows of
Resources 11,429,292 99,515,574 14,492,018 32,592,810 25,921,310 132,108,384 Net Position
Net investment in capital assets 284,096,740 278,068,994 251,609,753 250,216,752 535,706,493 528,285,746 Restricted 108,916,462 103,016,330 2,221,746 - 111,138,208 103,016,330 Unrestricted (216,955,069) (228,403,516) 91,742,645 84,060,848 (125,212,424) (144,342,668) Total Net Position 176,058,133$ 152,681,808$ 345,574,144$ 334,277,600$ 521,632,277$ 486,959,408$ Governmental Business-Type Total
Activities Activities Primary Government
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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During the fiscal year ended June 30, 2023 , the net position of the City in creased by $34.67 million to $521.63 million, as summarized in the following condensed statement of activities.

Changes in Net Position – Governmental Activities
Revenues related to the City’s Governmental activities totaled $276.53 million for the fiscal year ended June 30, 2023, an increase of $14.02 million, or 5 percent, from the prior year. The primary causes for the overall increase were:

 Utility user taxes, which have been trending down over the last few years, due to conservation efforts, and consumer moves to solar decreasing dependency on electric power, increased $4.94 million, or 19 percent, from the prior year. This increase is due to the increase in the cost of natural gas and other fuels driving the cost of both consumer natural gas and electricity higher. While these taxes may trend higher due to the higher pricing, changes in consumer behavior will ultimately lower collections. 2023 2022 2023 2022 2023 2022
Revenues
Program Revenues:

Charges for services 24,785,413$ 30,800,968$ 88,565,656$ 82,781,091$ 113,351,069$ 113,582,059$ Operating grants and contributions 46,587,633 45,290,554 1,684,006 1,910,435 48,271,639 47,200,989 Capital grants and contributions - 719,033 8,613,085 8,071,944 8,613,085 8,790,977 General Revenues:

Property taxes 24,088,301 23,099,229 - - 24,088,301 23,099,229 Sales taxes 109,693,092 108,554,989 - - 109,693,092 108,554,989 Franchise taxes 13,702,461 12,698,934 - - 13,702,461 12,698,934 Utility user taxes 31,208,992 26,272,812 - - 31,208,992 26,272,812 Transient occupancy taxes 5,491,564 5,781,762 - - 5,491,564 5,781,762 Other taxes 12,457,918 12,924,758 - - 12,457,918 12,924,758 Investment earnings (expense) 6,118,231 (4,345,864) 2,459,693 (2,136,524) 8,577,924 (6,482,388) Other revenues 2,400,348 718,632 1,967,839 2,325,578 4,368,187 3,044,210 Total Revenues 276,533,953 262,515,807 103,290,279 92,952,524 379,824,232 355,468,331 Expenses
General government 46,596,788 25,398,572 - - 46,596,788 25,398,572 Public safety 113,334,846 74,651,339 - - 113,334,846 74,651,339 Public works 53,632,428 49,757,465 - - 53,632,428 49,757,465 Culture and recreation 3,901,250 3,671,063 - - 3,901,250 3,671,063 Community development 17,593,245 17,254,790 - - 17,593,245 17,254,790 Community service 16,582,420 14,646,563 - - 16,582,420 14,646,563 Interest on long-term debt 1,516,651 1,544,198 - - 1,516,651 1,544,198 Water - - 48,552,751 39,503,371 48,552,751 39,503,371 Sewer - - 42,816,508 28,044,105 42,816,508 28,044,105 Sewer Collection - - - 7,888,065 - 7,888,065 Integrated Waste - - 624,476 676,615 624,476 676,615 Total Expenditures 253,157,628 186,923,990 91,993,735 76,112,156 345,151,363 263,036,146 Excess (deficiency) of Revenues over
(under) expenditures before
extraordinary items
23,376,325 75,591,817 11,296,544 16,840,368 34,672,869 92,432,185 Change in Net Position 23,376,325 75,591,817 11,296,544 16,840,368 34,672,869 92,432,185 Net Position - beginning 152,681,808 77,089,991 334,277,600 317,094,464 486,959,408 394,184,455 Restatement - - - 342,768 - 342,768 Net Position - ending 176,058,133$ 152,681,808$ 345,574,144$ 334,277,600$ 521,632,277$ 486,959,408$ Business-Type
Activities Primary Government
Governmental
Activities
Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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 Investment revenues increased $10.46 million, or 241 percent due to more favorable market conditions and increased interest rates during the year.

Expenses related to the City’s Governmental activities totaled $253.16 million for the fiscal year ended June 30, 2023, an increase of $66.23 million, or 35 percent, from the prior year. The primary causes for the overall increase were:

 General Government expenses increased $21.20 million, or 83 percent, from the prior year because utility charges for all General Fund departments were moved to General Government to make accounting for them easier.

 Expenses related to public safety increased $38. 68 million, or 52 percent, from the prior year primarily due to CalPERS adjustments to the Public Safety pension liability. This liability is adjusted annually based on anticipated returns, the number of retirees, actuarial assumptions, and the number of approved positions. In FY 2021/22 the liability decreased. Market conditions, hiring, and other factors influence the liability, which adjusts annually.

 Expenses related to public works increased $3.87 million, or 8 percent, from the prior year due primarily to increases i n the City -wide pavement rehabilitation program and additional hiring to continue to improve service to the community.

 Community service expenses increased $1.94 million, or 13 percent, from the prior year as a result of increased spending associated with Animal Services, the Housing and Homelessness Program and Code Enforcement to continue to improve service to the community.

Charges for Services, 9%
Operating Grants and
Contributions, 17%
Capital Grants and
Contributions, 0%
Property Taxes, 9%
Sales Taxes, 40%
Franchise Taxes, 5%
Other Taxes, 18%
Other/Misc, 3%
Revenues by Source - Governmental Activities - Fiscal Year 2023 City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 12 -
The following chart depicts governmental activity program revenues relative to program expenses:

Changes in Net Position – Business -Type Activ ities
Revenues related to the City’s Business-Type activities totaled $103.29 million for the fiscal year ended June 30, 2023, an increase of $10.34 million, or 11 percent, from the prior year, primarily due to:

 Charges for services, which increased $ 5.78 million from the prior year due to modest increases in consumption in addition to rate increases across all utilities which took effect on July 1, 2022.

 Investment revenues, which increased $4.60 million from the prior year due to more favorable market conditions and increased interest rates during the year.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 13 -

 Expenses related to the City’s Business- Type activities totaled $ 91.99 million for the fiscal year ended June 30, 2023, an increase of $15.88 million, or 21 percent, from the prior year. The primary cause s for the overall in crease were increased insurance claims and costs coupled with un favorable changes in experience and actuarial assumptions associated with the pension and other post -employment liabilities across all utilities during the year.

The following chart depicts Business-Type activity program revenues relative to program expenses:

Charges for Services
86%
Operating Grants and
Contributions
2%
Capital Grants and
Contributions
8%
Other/Misc
4%
Revenues by Source - Business-Type Activities - Fiscal Year 2023 $-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Water Sewer Integrated Waste
Business-Type Program Revenues and Expenses
Revenue Expense
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 14 -
Fund Financial Analysis

As detailed above, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.

Governmental Funds
The focus of the City ’s governmental funds is to provide information on near -term inflows, outflows , and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements.

In particular, assigned and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 202 3, the City ’s governmental funds reported total combined ending fund balances of $ 280.29 million, an increase of $22.93 million from the prior year. Approximately 46 percent of the City’s governmental funds’ fund balances, or $129.95 million, constitutes committed fund balance, which is available for spending at the government’s discretion within the guidelines of the funding sources. The remaining fund balance , $150.34 million, is either nonspendable or restricted for purposes imposed by creditors, grantors, contributors, laws, or regulations of other governments or through enabling legislation.

General Fund Financial Highlights
The General Fund is the chief operating fund of the City. At June 30, 202 3, committed fund balance of the General Fund was $129.95 million, while total fund balance was $ 173.46 million. As a measure of the General Fund's liquidity, it is useful to compare committed fund balance to total fund expenditures. Committed fund balance represents 64 percent of the total general fund expenditures. The City Council has designated all the committed fund balances for specified purposes.

The fund balance of the General Fund increased by $ 17.01 million during the current fiscal year, primarily due to increased sales tax revenue and transaction and use tax (Measure S), as well as significant salary and operational savings versus budgeted expenditures.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 15 -

General Fund revenues for the fiscal year ended June 30, 20 23, increased by $14.21 million, or approximately 7 percent, over the prior year. The overall increase was due to the following factors:

 Taxes increased by $5.2 million from the prior year, largely due increases in collections of sales and use tax and transaction and use tax.

 Investment earnings associated with the use of money and property increased $7.55 million, primarily the result of the change in the fair value of the City’s investments as interest rates increased during the year.

 Licenses and permits increased $ 2.66 million from the prior year due to growth in commercial development and building.

General Fund expenditures for the fiscal year ended June 30, 2023, increased by $41.05 million, or approximately 25 percent, over the prior year. The overall increase was due to the following factors:

 General Government expenditures increased $16.9 million, or 64 percent from the prior year due to shifting utility costs from individual departments to General Government to simplify accounting. 2023 2022
Revenues
Taxes 184,162,626$ 178,956,556$
Licenses and permits 15,878,683 13,216,727
Charges for services 9,521,073 9,595,344
Use of money and property 2,828,214 (4,720,913) Intergovernmental 3,077,848 3,738,642
Other 5,517,843 5,988,380
Total Revenues 220,986,287 206,774,736
Expenditures
Current:

General government 43,336,212 26,436,624
Public safety 103,518,651 91,648,551
Public works 30,969,348 22,719,730
Culture and recreation 3,394,205 3,832,808
Community development 8,903,182 7,354,006
Community service 10,924,077 7,671,555
Debt Service:

Principal 1,695,078 1,977,379
Interest and fiscal charges 1,381,939 1,428,258 Total Expenditures 204,122,692 163,068,911
Excess (Deficiency) of Revenues Over
(Under) Expenditures 16,863,595 43,705,825
Issuance of debt - -
Original issue discount - -
Payment to refunded bond escrow agent - - Proceeds from capital leases 274,653 2,135,838.00 Net transfers (184,353) (138,000)
Sale of capital assets 59,565 2,800
Net Change in Fund Balances 17,013,460$ 45,706,463$ City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 16 -
 Public safety expenditures increased $ 11.87 million, or 13 percent from the prior year as a result of additional positions added for dispatch, general investigation, and traffic enforcement as the City continued to restore service levels that had been cut in previous years.

 Public works expenditures increased $ 8.25 million, or 36 percent, from the previous year primarily due to increases in the City-wide pavement rehabilitation program and hiring to continue to improve service levels for the community.

 Community service expenditures increased by $ 3.25 million, or 42 percent, primarily the result of increased animal services positions and programs, as well as spending on Housing and Homelessness, and Code Enforcement to continue to improve service levels to the community.

General Fund Budgetary Highlights
The General Fund budget and actual analysis can be found on the following page. During the year, the City’s adopted General Fund revenue and expenditure budgets were amended. The revenues budget decreased by $0.75 million and the expenditure budget increased by $55.90 million. Major expenditure budget adjustments included:
$1.61 million for nondeparmental primarily for increased utility costs , $1.1 million for additional outside legal services, $2.23 million for additional police positions, vehicles, and equipment, $ 37.57 million for street improvements and other capital projects throughout the City , $7.22 million for library for improvements to Feldheym Library, which is covered by a State grant , and $4.46 million for community development related to professional and contractual services, additional positions to improve service levels and the benefits and other costs associated with those positions . All amendments to original budgeted appropriations were authorized by City Council during the fiscal year . Major differences between the amended budget and actual results are discussed in further detail on the following pages.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 17 -

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 163,367,500$ 163,367,500$ 184,162,626$ 20,795,126$ Licenses and permits 12,637,000 12,637,000 15,878,683 3,241,683 Fines and forfeitures 1,403,950 1,403,950 1,171,985 (231,965) Use of money and property 325,000 325,000 2,828,214 2,503,214 Lease revenue 725,000 725,000 1,289,487 564,487 Intergovernmental 3,818,260 3,060,315 3,077,848 17,533 Charges for services 8,988,900 8,988,900 9,521,073 532,173 Other revenues 1,198,056 1,208,559 3,056,371 1,847,812 Total revenues 192,463,666 191,716,224 220,986,287 29,270,063 EXPENDITURES:

Current:

General government
Mayor 377,224 377,135 306,227 70,908 Common council 931,882 1,054,234 1,015,993 38,241 City clerk 1,486,807 1,954,098 1,300,833 653,265 City attorney 3,176,084 4,278,996 4,559,283 (280,287) City administrator 3,541,261 3,625,659 3,959,562 (333,903) Personnel 2,508,177 2,579,408 2,055,421 523,987 Finance 5,336,360 5,281,394 4,546,383 735,011 Nondepartmental 8,804,941 10,420,887 25,592,510 (15,171,623) Public safety
Police 106,395,588 108,628,795 103,518,651 5,110,144 Public works 23,658,756 61,227,013 30,969,348 30,257,665 Culture and recreation
Park, recreation and community services 3,880,656 4,088,237 3,394,205 694,032 Community development 11,698,803 16,155,876 8,903,182 7,252,694 Community service
Animal services 3,719,863 4,523,440 3,322,726 1,200,714 Library, Other services 6,923,028 14,143,755 7,601,351 6,542,404 Debt service:

Principal 988,847 988,847 1,695,078 (706,231) Interest and fiscal charges 1,376,261 1,376,261 1,381,939 (5,678) Total expenditures 184,804,538 240,704,035 204,122,692 36,581,343

REVENUES OVER
(UNDER) EXPENDITURES 7,659,128 (48,987,811) 16,863,595 65,851,406

OTHER FINANCING SOURCES (USES)
Proceeds from capital leases - - 274,653 274,653 Proceeds from sale of capital assets - - 59,565 59,565 Net Transfers (138,000) (138,000) (184,353) (46,353) Total other financing sources (uses) (138,000) (138,000) 149,865 287,865 CHANGE IN FUND BALANCE 7,521,128$ (49,125,811)$ 17,013,460 66,139,271$ Fund Balance:

Beginning of year 156,449,095
End of year 173,462,555$
Budgeted Amounts
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Revenues, including transfers in, were $29.27 million higher than budgetary estimates as a result of the following:

 Taxes were $20.80 million greater than budget due to the City’s conservative revenue projections for the fiscal year. Actual sales tax and transaction and use tax collections far exceeded the budget as a result of continued strong consumer demand for goods and services.

 Licenses and permits and charges for services revenues were $25.40 million and $3.77 million higher than budgeted due to increased residential and commercial development activity throughout the City.

 Use of money and property revenue was $2.50 million higher than budget due to the change in fair value of the City’s investment portfolio, which was positive this year as a result of the rising interest rate environment experienced during the fiscal year.

Expenditures, including transfers out, were $36.58 million, or 15 percent, lower than budgetary estimates as a result of the following:

 Nondepartmental expenditures within the general government were $15.17 million higher than budgeted due largely to increased liability charges for general liability claims. The claim settlements paid during the fiscal year were higher than anticipated. Additionally, payments increased to businesses who participate in sales tax sharing agreements with the City as a direct result of increased sales tax collections.

 Public safety expenditures were $5.11 million less than budget , a variance of 5 percent , as a result of vehicles and other equipment that was unavailable due to supply chain shortages and other relatively small operational and salary savings.

 Public work s expenditures were $30.26 million less than budget, a variance of 49 percent, due to personnel savings from vacant positions , operations and maintenance savings , and also from amounts budgeted for to capital projects and equipment that went unspent in the current year.

 Community development was $7.25 million less than budget, a variance of 456 percent, primarily due to salary savings from high -level vacancies. Community services, which includes Animal services, Library, the violence intervention program, and others were a total of $ 7.74 million less than budgeted. Animal services variance was principally due to logistical challenges and slower than anticipated delivery of the mobile veterinary unit, the budget for which was rolled over into the next fiscal year . Variances in the Library budget and other services were due primarily to personnel savings from vacant positions as well as savings from professional and contractual services.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 19 -
Other Major Governmental Fund Financial Highlights
The American Rescue Plan Act Fund is used to account for the various projects and expenditures associated with the American Rescue Plan Act, which was passed by the 117 th United States Congress and signed into law on March 11, 2021. Current year revenues totaled $2.85 million and current year expenditures totaled $1.93 million.

At June 30, 2023, the fund balance was $1.08 million, all of which was restricted for specific purposes based on the stipulations established by the federal government.

The Federal and State Grants Fund is used to account for various grants awarded to the City by Federal, State, and local governments not otherwise accounted for in the General Fund or Capital Projects funds. Current year revenues and other financing sources totaled $24.42 million and current year expenditures totaled $23.56 million, resulting in an increase in fund balance of $0.86 million for the current year. As of June 30, 2023, the fund balance was $19.68 million, all of which was restricted for specific purposes based on the stipulations established by the granting agencies.

Business -Type Funds
As of June 30, 202 3, the City’s business-type funds reported total combined ending fund balances of $ 345.57 million, an increase of $ 11.30 million from the prior year. Approximately 72 percent of the City ’s proprietary funds’ fund balances, or $251.61 million, represents the funds’ net investment in capital assets.

Major Fund Financial Highlights
The Water Fund is used to account for the provision of water services to the residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. As of June 30, 202 3, the net position totaled $186.46 million, up from $ 181.72 million in the prior year. This is due to capital contributions of $5.98 million and despite of a negative net income in operations of $1.24 million for the year. Total revenues increased by $ 2.60 million, or 5 percent, from the prior fiscal year .

Capital contributions increased as development in the City continues to grow due to funding from the American Rescue Plan Act (ARPA), other grants , and San Bernardino being affordable. Water operating revenues also reflect a modest increase due to a decrease in water consumption in fiscal year 2023 from fiscal year 2022 and a rate increase effective July 1, 2022. Total Expenses increased 21 2 percent or $8.6 million. Significant variances were due to an increase in insurance claims and costs ( $1.7 million); unfavorable increases in changes in experience and actuarial assumptions for pension and other post -employment benefits ($6.7 million); and an increase in depreciation expense of ($1.6 million).

The Sewer Fund accounts for the provision of sewer treatment of residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

In the current year, the net position increased by $ 6.60 million to $ 156.90 million as of June 30, 202 3. Total revenues increased $5.0 million or 12 percent from prior year due to sewer rate increase that combined rates for the Sewer Utility and Sewer Collection funds as approved by the board Effective July 1, 2022. There was also an increase in investment income of $2.8 million, compared to the significant loss from the prior year. Total expense increased $6.60 million or 19 precent. The most significant increases were due to increased changes in experience and actuarial assumptions for pension and other post -employment benefits ($2.9 million) and an increase in administrative personnel expenses allocated to the sewer fund due to a full year of the sewer treatment and sewer collection funds being combined.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 20 -
Capital Assets
Capital assets, including the infrastructure of the City, are those assets that are used in the performance of the City’s functions. As of June 30, 202 3, capital assets totaled $ 288.36 million for governmental activities and $310.28 million for business-type activities, net of accumulated depreciation on capital assets, which is recognized in the Government -wide Financial Statements. The City’s capital assets include land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress. The net increase over the prior fiscal year in the City’s capital assets was $7.84 million, or 1 percent.

Major capital asset transactions during the current fiscal year included the following:

 Machinery, vehicles, and equipment additions totaled $3.82 million.

 Completed CIP projects for Infrastructure in the City’s Governmental Activities totaled $ 3.54 million, and ongoing construction projects increased by more than $10.3 million.

 In the City’s Business -Type Activities, the Water Fund capitalized $ 8.0 million in vehicles, equipment and various capital projects and had an increase in CIP expenses due to the Reservoir Seismic upgrades and the Mountain Pressure Zone Main Replacement project during the year. The Sewer Fund had an increase of $3.6 million in total assets due to capitalization of the Redlands Passenger Rail project and various sewer capital projects.

Additional information on the City’ s capital assets can be found under Note 6 in the Notes to the Financial Statements.

2023 2022 2023 2022 2023 2022
Land and easements 104,133,846$ 104,133,846$ 23,592,976$ 23,213,972$ 127,726,822$ 127,347,818$ Construction in progress 33,406,592 23,086,112 49,357,228 44,057,137 82,763,820 67,143,249 Infrastructure 129,981,793 135,109,026 - - 129,981,793 135,109,026 Buildings and improvements 11,552,629 13,802,664 - - 11,552,629 13,802,664 Machinery, vehicles, and equipment 6,538,777 4,628,845 - - 6,538,777 4,628,845 Purchased software - - - - - - Right to use leased assets 2,322,274 1,252,021 59,709 107,476 2,381,983 1,359,497 Right to use Subscription IT assets 421,745 - 160,904 148,632 582,649 148,632 Water rights, wells, and pumping - - 51,834,634 53,635,650 51,834,634 53,635,650 Distribution and collection systems - - 114,329,023 114,398,872 114,329,023 114,398,872 Building, plant, and store yards - - 37,460,653 40,475,584 37,460,653 40,475,584 Other capital assets - - 33,480,831 32,744,985 33,480,831 32,744,985 Total Capital Assets, net 288,357,656$ 282,012,514$ 310,275,958$ 308,782,308$ 598,633,614$ 590,794,822$ Activities Activities Primary Government
Governmental Business-Type Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 21 -
Long-Term Liabilities
As of June 30, 2023, the City had $103.16 million in long-term debt outstanding, a decrease of $2.45 million from the prior year, attributable primarily to the City’s annual debt service payments.

Additional information on the City’s long-term liabilities can be found under Note 7 in the Notes to the Financial Statements.

Economic Factors and Next Year’s Budget and Rates
Following years of economic downturn, the City of San Bernardino has experienced a period of growth. Over the course of fiscal years 2020 and 2021, following a period of steady revenue growth, the City focused on restoring and enhancing service levels.

The adopted biennial budget for fiscal years 2023 -24 and 2024-25 reflected the Council 2021- 2025 Mayor and City Council Strategic Goals with the ongoing operational needs of the departments and community. The main objective of these goals is to improve oper ational and financial capacity, develop focused, aligned, and unified community leadership, improve quality of life, and enhance the City’s economic growth and development. In aligning these priorities with the City’s funding opportunities, the benefits and impacts deliver outcomes that are real and tangible in the community.

The general state of the economy, global, national, regional, and local is of utmost importance in projecting and forecasting revenues. Inflation has slowed; however, the cost of goods and services, fuel, asphalt, seed, and other products remains high, and continues to impact the City’s ability to deliver programs and projects within budget.

These increased costs were accounted for in the proposed budget, and inflationary trends have been included.

The state of the economy has an impact on the General Fund revenue, as the City relies heavily (more than half) on sales and use tax and transaction and use tax to fund ongoing operations of the General Fund. The pressures of recent inflation combined with increased demands for higher levels of service in the community could have placed the City in a challenging budgetary position; however, positive local economic trends, including increased permit activity, development, and both sales and use and transaction and use tax overperforming expectations benefited the City over the last few years.

Additional details regarding the City’s budget and its overall Fiscal Year 2023 -24 and 2024-25 Adopted Budget can be found on the City’s website. Questions or requests for information regarding the Adopted Budget should be directed to the Finance Department.

2023 2022 2023 2022 2023 2022
Notes payable 2,776,000$ 3,600,000$ -$ -$ 2,776,000$ 3,600,000$ Bonds payable - - 78,391,498 80,280,539 78,391,498 80,280,539 Lease revenue bonds - 953,847 - - - 953,847 Pension obligation bonds 19,256,916 19,269,444 - - 19,256,916 19,269,444 California Infrastructure and Economic
Development Bank - - - - - - Lease liabilities 2,197,868 1,245,331 59,878 107,614 2,257,746 1,352,945 Subscription liabilities 389,904 - 122,978 148,632 512,882 148,632 Total long term debt 24,620,688$ 25,068,622$ 78,574,354$ 80,536,785$ 103,195,042$ 105,605,407$ Activities Activities Primary Government
Governmental Business-Type Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

- 22 -
Requests for Information
This financial report is designed to provide a general overview of the City of San Bernardino’s finances for all those with an interest in the government ’s finances and to show the City’s accountability for the financial resources it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance and Management Services, 290 North “D” Street, San Bernardino, California 92401.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

City of San Bernardino
Statement of Net Position
June 30, 2023
______________________________________________________________________________ - 23 -
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
Activities A ctivities Total
Cash and investments 324,444,896$ 139,700,786$ 464,145,682$ Cash and investments with fiscal agents 28,304 - 28,304 Receivables:

Accounts, Net 6,844,439 12,387,077 19,231,516 Interest 595,285 496,907 1,092,192 Leases - due within one year 524,652 216,671 741,323 Due from other governments 33,011,483 168,518 33,180,001 Internal balances 2,279,625 (2,279,625) - Inventory 205,340 1,446,423 1,651,763 Prepaid items 2,349,645 859,832 3,209,477 Noncurrent assets:

Lease receivables - due beyond one year 3,360,802 3,463,692 6,824,494 Restricted cash - 19,908,149 19,908,149 Restricted investments - Consent Decree (Note 18) - 23,565,710 23,565,710 Restricted - other assets - 17,339,474 17,339,474 Net OPEB asset - 2,221,746 2,221,746 Property held for resale 68,573,052 - 68,573,052 Investment in joint ventures - 21,208,582 21,208,582 Non-depreciable capital assets 137,540,438 72,950,204 210,490,642 Depreciable capital assets, net 148,073,199 237,105,141 385,178,340 Right to use leased assets, being amortized, net 2,322,274 59,709 2,381,983 Right to use subscription assets, being amortized, net 421,745 160,904 582,649 Total assets 730,575,179 550,979,900 1,281,555,079 Pension-related deferred outflows of resources 112,294,022 18,993,725 131,287,747 OPEB-related deferred outflows of resources - 4,455,556 4,455,556 Total deferred outflows of resources 112,294,022 23,449,281 135,743,303

DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Primary Government
City of San Bernardino
Statement of Net Position (Continued)
June 30, 2023
______________________________________________________________________________ - 24 -
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
A
ctivities Activities Total
Accounts payable and accrued liabilities 16,048,829$ 4,232,637$ 20,281,466$ Payroll and related liabilities 5,413,022 1,206,822 6,619,844 Interest payable 134,892 1,348,882 1,483,774 Retentions payable 1,615,707 - 1,615,707 Unearned revenue 87,158,011 - 87,158,011 Deposits payable 9,289,210 325,747 9,614,957 Noncurrent liabilities:

Due within one year:

Compensated absences 2,609,296 1,541,407 4,150,703 Lease liabilities 880,562 47,884 928,446 Subscription liabilities 187,941 122,978 310,919 Claims payable 14,180,228 8,355,677 22,535,905 Long-term debt 889,000 1,765,000 2,654,000 Due in more than one year:

Deposits payable - 3,239,794 3,239,794 Unearned revenue - Consent Decree (Note 18) - 40,905,184 40,905,184 Due to Successor Agency 2,232,925 - 2,232,925 Aggregate net pension liability 449,492,075 70,141,831 519,633,906 Landfill closure liability - 4,100,551 4,100,551 Lease liabilities 1,317,306 11,994 1,329,300 Subscription liabilities 201,963 - 201,963 Compensated absences 6,088,356 390,133 6,478,489 Claims payable 36,498,537 - 36,498,537 Long-term debt 21,143,916 76,626,498 97,770,414 Total liabilities 655,381,776 214,363,019 869,744,795 Pension-related deferred inflows of resources 6,011,660 874,001 6,885,661 OPEB-related deferred inflows of resources - 10,062,643 10,062,643 Lease-related deferred inflows of resources 3,744,488 3,555,374 7,299,862 Deferred charges on refunding 1,673,144 - 1,673,144 Total deferred inflows of resources 11,429,292 14,492,018 25,921,310 Net investment in capital assets 284,096,740 251,609,753 535,706,493 Restricted:

Public safety 2,751,155 - 2,751,155 Streets and capital projects 20,949,163 - 20,949,163 Culture and recreation 1,302,045 - 1,302,045 Grants 1,363,693 - 1,363,693 Community development 38,410,748 - 38,410,748 Debt service 28,304 - 28,304 Capital projects 42,052,097 - 42,052,097 Parks 2,058,062 - 2,058,062 Other 1,195 2,221,746 2,222,941 Total restricted 108,916,462 2,221,746 111,138,208 Unrestricted (deficit) (216,955,069) 91,742,645 (125,212,424) Total net position 176,058,133$ 345,574,144$ 521,632,277$

NET POSITION

DEFERRED INFLOWS OF RESOURCES

LIABILITIES
Primary Government
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2023

- 25 -
The accompanying notes are an integral part of these financial statements.

Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues Primary government:

Governmental activities:

General government 46,596,788$ 2,039,797$ 1,443,259$ -$ 3,483,056$ Public safety 113,334,846 5,280,006 7,725,591 - 13,005,597 Public works 53,632,428 9,247,569 20,614,391 - 29,861,960 Culture and recreation 3,901,250 1,496,546 168,120 - 1,664,666 Community development 17,593,245 5,963,915 10,815,072 - 16,778,987 Community service 16,582,420 757,580 5,821,200 - 6,578,780 Interest on long-term debt 1,516,651 - - - - Total governmental activities 253,157,628 24,785,413 46,587,633 - 71,373,046 Business-type activities:

Water 48,552,751 43,545,629 1,684,006 5,976,186 51,205,821 Sewer 42,816,508 44,519,998 - 2,636,899 47,156,897 Integrated Waste 624,476 500,029 - - 500,029 Total business-type activities 91,993,735 88,565,656 1,684,006 8,613,085 98,862,747 Total primary government 345,151,363$ 113,351,069$ 48,271,639$ 8,613,085$ 170,235,793$ Program Revenues
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2023

- 26 -
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:

Governmental activities:

General government (43,113,732)$ -$ (43,113,732)$ Public safety (100,329,249) - (100,329,249) Public works (23,770,468) - (23,770,468) Culture and recreation (2,236,584) - (2,236,584) Community development (814,258) - (814,258) Community service (10,003,640) - (10,003,640) Interest on long-term debt (1,516,651) - (1,516,651) Total governmental activities (181,784,582) - (181,784,582) Business-type activities:

Water - 2,653,070 2,653,070 Sewer - 4,340,389 4,340,389 Integrated Waste - (124,447) (124,447) Total business-type activities - 6,869,012 6,869,012 Total primary government (181,784,582) 6,869,012 (174,915,570) General revenues:

Taxes:

Property taxes 24,088,301 - 24,088,301 Sales taxes 109,693,092 - 109,693,092 Franchise taxes 13,702,461 - 13,702,461 Utility user taxes 31,208,992 - 31,208,992 Transient occupancy taxes 5,491,564 - 5,491,564 Other taxes 12,457,918 - 12,457,918 Total taxes 196,642,328 - 196,642,328 Investment earnings (expense) 6,118,231 2,459,693 8,577,924 Gain (loss) on disposal of assets 59,565 4,859 64,424 Miscellaneous 2,340,783 1,962,980 4,303,763 Subtotal 8,518,579 4,427,532 12,946,111 Total general revenues 205,160,907 4,427,532 209,588,439 Changes in net position 23,376,325 11,296,544 34,672,869 Net Position - beginning of year 152,681,808 334,277,600 486,959,408 Net Position - end of year 176,058,133$ 345,574,144$ 521,632,277$ Primary Government
and Changes in Net Position
Net (Expense) Revenue

GOVERNMENTAL FUND FINANCIAL STATEMENTS

City of San Bernardino
Balance Sheet
Governmental Funds
June 30, 2023

- 27 -
The accompanying notes are an integral part of these financial statements.

American Federal and O ther Total
General Rescue Plan State Grants Governmental Governmental Fund Act Fund Fund Funds Funds
Cash and investments 134,014,563$ 77,059,488$ 2,499,808$ 74,787,685$ 288,361,544$ Receivables:

Accounts, Net 6,440,860 - 25,508 207,497 6,673,865 Interest 155,230 310,861 - 100,512 566,603 Leases 3,885,454 - - - 3,885,454 Due from other governments 18,694,557 8,448 10,401,997 3,906,109 33,011,111 Prepaid items 2,059,268 - - - 2,059,268 Due from other funds 2,279,625 - - - 2,279,625 Property held for resale 39,362,268 - 16,784,986 12,425,798 68,573,052 Restricted cash and investments held by fiscal agents 28,304 - - - 28,304 Total assets 206,920,129$ 77,378,797$ 29,712,299$ 91,427,601$ 405,438,826$ Liabilities:

Accounts payable 7,867,994$ 569,823$ 2,254,267$ 2,867,271$ 13,559,355$ Accrued liabilities 758,574 - 41,732 546,297 1,346,603 Payroll and related liabilities 5,020,943 3,678 187,906 27,825 5,240,352 Retentions payable 447,074 - 203,590 965,043 1,615,707 Deposits payable 9,254,641 - - 34,569 9,289,210 Unearned revenue 3,750,884 75,728,843 7,345,901 332,383 87,158,011 Due to Successor Agency 2,232,925 - - - 2,232,925 Total liabilities 29,333,035 76,302,344 10,033,396 4,773,388 120,442,163 Deferred inflows of resources:

Unavailable revenues 380,051 700 - 578,772 959,523 Lease-related deferred inflows of resources 3,744,488 - - - 3,744,488 Total deferred inflows of resources 4,124,539 700 - 578,772 4,704,011 Fund Balances:

Nonspendable 41,421,536 - - - 41,421,536 Restricted 2,086,366 1,075,753 19,678,903 86,075,441 108,916,463 Committed 129,954,653 - - - 129,954,653 Total fund balances 173,462,555 1,075,753 19,678,903 86,075,441 280,292,652 Total liabilities and fund balances 206,920,129$ 77,378,797$ 29,712,299$ 91,427,601$ 405,438,826$

LIABILITIES AND FUND BALANCES
ASSETS
Major Funds
City of San Bernardino
Reconciliation of the Governmental Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023

- 28 -
The accompanying notes are an integral part of these financial statements.

Total Fund Balances - Total Governmental Funds 280,292,652$ A
mounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets net of accumulated depreciation/amortization used in governmental activities are not current financial resources and, therefore, are not reported in governmental funds. 284,392,779
Deferred refunding charges are not available resources and, therefore, are not reported in the funds (1,673,144)
Deferred outflows on pension related items 1 08,580,092 Deferred inflows on pension related items (5,844,163)
Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds. (118,217) Long-term liabilities, as listed below, are not due and payable in the current period and therefore are not reported in the governmental funds.

Bonds payable (19,785,000)$
Notes payable (2,576,000)
Lease liabilities (772,501)
Subscription liabilities (70,109)
Bond discount 528,084
Net pension liability (436,049,782)
Compensated absences (8,368,892)
(467,094,200)
Some of the City's receivables for operating and capital grant reimbursements will be collected after year end, but are not available soon enough to pay for current-period expenditures, and therefore, are reported as unavailable revenues in the governmental funds.
959,523
Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the Government-Wide Statement of Net Position.
(23,437,189)
Net Position of Governmental Activities 1 76,058,133$
City of San Bernardino
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2023

- 29 -
The accompanying notes are an integral part of these financial statements.

American Federal and O ther Total
General Rescue Plan State Grants Governmental Governmental Fund Act Fund Fund Funds Funds
REVENUES:

Taxes 184,162,626$ -$ -$ 7,591,762$ 191,754,388$ Licenses and permits 15,878,683 - - 564,204 16,442,887 Impact fees - - - 4,368,737 4,368,737 Fines and forfeitures 1,171,985 - - 877,367 2,049,352 Use of money and property 2,828,214 912,978 149,875 849,508 4,740,575 Lease revenue 1,289,487 - - - 1,289,487 Intergovernmental 3,077,848 1,934,283 24,149,663 11,885,831 41,047,625 Charges for services 9,521,073 - - 1,569,645 11,090,718 Other revenues 3,056,371 - 85,462 - 3,141,833 Total revenues 220,986,287 2,847,261 24,385,000 27,707,054 275,925,602 EXPENDITURES:

Current:

General government 43,336,212 - 682,411 271,956 44,290,579 Public safety 103,518,651 - 5,878,985 192,723 109,590,359 Public works 30,969,348 - 4,401,037 22,319,759 57,690,144 Culture and recreation 3,394,205 - 289,868 3,406 3,687,479 Community development 8,903,182 1,278,450 6,496,811 663,549 17,341,992 Community service 10,924,077 655,834 5,017,078 290,881 16,887,870 Debt service:

Principal 1,695,078 - 631,730 - 2,326,808 Interest and fiscal charges 1,381,939 - 164,802 - 1,546,741 Total expenditures 204,122,692 1,934,284 23,562,722 23,742,274 253,361,972

REVENUES OVER
(UNDER) EXPENDITURES 16,863,595 912,977 822,278 3,964,780 22,563,630 OTHER FINANCING SOURCES (USES):

Proceeds from capital leases 274,653 - 36,587 - 311,240 Proceeds from sale of capital assets 59,565 - - - 59,565 Transfers in - - - 184,353 184,353 Transfers out (184,353) - - - ( 184,353) Total other financing sources (uses) 149,865 - 36,587 184,353 370,805 CHANGES IN FUND BALANCES 17,013,460 912,977 858,865 4,149,133 22,934,435 FUND BALANCES:

Beginning of year 156,449,095 162,776 18,820,038 81,926,308 257,358,217 End of year 173,462,555$ 1,075,753$ 19,678,903$ 86,075,441$ 280,292,652$ Major Funds
City of San Bernardino
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Fiscal Year Ended June 30, 2023

- 30 -
The accompanying notes are an integral part of these financial statements.

Net Change in Fund Balances - Total Governmental Funds 22,934,435$ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Government- Wide Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. In the current year, the City reported the following amounts for capital asset additions and depreciation:

Capital asset additions, including right to use leased assets 17,597,954$ Depreciation/amortization expense, including right to use leased assets (13,136,645) 4,461,309 The issuance of long-term debt (i.e. bonds, leases, notes) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds immediately report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Government-Wide Statement of Activities. The net effect of these differences in the treatment of long-term debt and related items is listed below:

Principal payments on long-term debt 1,612,847$
Principal payments on lease liabilities 684,791
Principal payments on subscription liabilities 29,170
Increase in lease liabilities (211,961)
Increase in subscription liabilities (99,279)
Changes in pension related items (6,534,899)
Change in accrued interest payable 33,058
Amortization of bond premium/discount (22,472)
Amortization of deferred gain/loss on refunding of long-term debt 71,198 (4,437,547) Some revenues and expenses reported in the Government-Wide Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Changes in compensated absences (1,640,904)
Unavailable revenues were reported as deferred inflows of resources in the Governmental Funds but were reported as revenues in the Government-Wide Statement of Statement of Activities.
457,629
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds is reported with governmental activities.
1,601,403
Change in Net Position of Governmental Activities 23,376,325$

PROPRIETARY FUND FINANCIAL STATEMENTS

City of San Bernardino
Statement of Net Position
Proprietary Funds
June 30, 2023

- 31 -
The accompanying notes are an integral part of these financial statements.

Water Sewer
ASSETS
Current assets:

Cash and cash equivalents 50,441,661$ 82,943,540$ Accounts receivable, net 6,794,648 5,467,366 Interest receivable 197,960 290,795
Lease receivables 216,671 -
Due from other governments - 138,691 Due from other funds - -
Inventories 1,446,423 -
Prepaid items 320,024 539,808
Total current assets 59,417,387 89,380,200
Noncurrent assets:

Lease receivables 3,463,692
Restricted assets:

Cash and cash equivalents - capital-related fees 13,173,577 6,734,572 Investments - Consent Decree 23,565,710 -
Interest receivable - Consent Decree 83,555 - Prepaid insurance - Consent Decree 17,255,919 - Net OPEB asset 1,152,463 1,069,283
Investments in joint ventures - 21,208,582 Non-depreciable capital assets 20,788,973 52,161,231 Depreciable capital assets, net 186,369,184 50,956,570 Total capital assets, net 207,158,157 103,117,801 Total noncurrent assets 265,853,073 132,130,238 Total assets 325,270,460 221,510,438

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 9,669,705 9,324,020 OPEB-related deferred outflows of resources 2,311,185 2,144,371 Total deferred outflows of resources 11,980,890 11,468,391 Major Enterprise Funds
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023

- 32 -
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Integrated Internal
Waste Total Service Funds
ASSETS
Current assets:

Cash and cash equivalents 6,315,585$ 1 39,700,786$ 36,083,352$ Accounts receivable, net 125,063 1 2,387,077 170,574 Interest receivable 8,152 4 96,907 28,682 Lease receivables - 2 16,671 - Due from other governments 29,827 1 68,518 372 Due from other funds - - 2,100,522 Inventories - 1 ,446,423 205,340 Prepaid items - 8 59,832 290,377 Total current assets 6,478,627 1 55,276,214 38,879,219 Noncurrent assets:

Lease receivables - 3 ,463,692 - Restricted assets:

Cash and cash equivalents - capital-related fees - 1 9,908,149 - Investments - Consent Decree - 2 3,565,710 - Interest receivable - Consent Decree - 8 3,555 - Prepaid insurance - Consent Decree - 1 7,255,919 - Net OPEB asset - 2 ,221,746 -
Investments in joint ventures - 2 1,208,582 - Non-depreciable capital assets - 7 2,950,204 - Depreciable capital assets, net - 2 37,325,754 3,964,877 Total capital assets, net - 3 10,275,958 3,964,877 Total noncurrent assets - 3 97,983,311 3,964,877 Total assets 6,478,627 5 53,259,525 42,844,096

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources - 1 8,993,725 3,713,930 OPEB-related deferred outflows of resources - 4 ,455,556 - Total deferred outflows of resources - 2 3,449,281 3,713,930 Non-Major
Enterprise
Fund
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023

- 33 -
The accompanying notes are an integral part of these financial statements.

Water Sewer

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,643,939$ 1,445,025$ Payroll and related liabilities 625,391 569,039 Due to other funds 974,002 1,305,623
Interest payable 843,244 505,638
Deposits payable 325,747 -
Current portion of compensated absences 1,070,590 468,522 Current portion of claims payable 7,051,451 1,304,226 Current portion of lease liabilities 47,884 - Current portion of subscription liabilities 122,978 - Current portion of long term debt 995,000 770,000 Total current liabilities 14,700,226 6,368,073 Noncurrent liabilities:

Deposits payable 3,239,794 -
Unearned revenue - Consent Decree 40,905,184 - Aggregate net pension liability 35,709,206 34,432,625 Landfill closure liability - - Compensated absences 267,648 117,130
Claims payable - -
Lease liabilities 11,994 -
Subscription liabilities - -
Long-term debt 46,736,557 29,889,941
Total noncurrent liabilities 126,870,383 64,439,696 Total liabilities 141,570,609 70,807,769

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 444,954 429,047 OPEB-related deferred inflows of resources 5,219,673 4,842,970 Lease-related deferred inflows of resources 3,555,374 - Total deferred inflows of resources 9,220,001 5,272,017 Net Position (Deficit):

Net investment in capital assets 172,417,321 79,192,432 Restricted
Postemployment benefits 1,152,463 1,069,283 Unrestricted (deficit) 12,890,956 76,637,328
Total net position (deficit) 186,460,740$ 156,899,043$ Major Enterprise Funds
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023

- 34 -
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Integrated Internal
Waste Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 143,673$ 4,232,637$ 1,142,871$ Payroll and related liabilities 12,392 1,206,822 172,670 Due to other funds - 2,279,625 2,100,522 Interest payable - 1,348,882 16,675 Deposits payable - 325,747 - Current portion of compensated absences 2,295 1,541,407 98,628 Current portion of claims payable - 8,355,677 14,180,228 Current portion of lease liabilities - 47,884 285,740 Current portion of subscription liabilities - 122,978 160,666 Current portion of long term debt - 1,765,000 200,000 Total current liabilities 158,360 21,226,659 18,358,000 Noncurrent liabilities:

Deposits payable - 3,239,794 - Unearned revenue - Consent Decree - 40,905,184 - Aggregate net pension liability - 70,141,831 13,442,293 Landfill closure liability 4,100,551 4,100,551 - Compensated absences 5,355 390,133 230,132 Claims payable - - 36,498,537 Lease liabilities - 11,994 1,139,627 Subscription liabilities - - 159,129 Long-term debt - 76,626,498 -
Total noncurrent liabilities 4,105,906 195,415,985 51,469,718 Total liabilities 4,264,266 216,642,644 69,827,718

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources - 874,001 167,497 OPEB-related deferred inflows of resources - 10,062,643 - Lease-related deferred inflows of resources - 3,555,374 - Total deferred inflows of resources - 14,492,018 167,497 Net Position (Deficit):

Net investment in capital assets - 251,609,753 3,964,877 Restricted
Postemployment benefits - 2,221,746 - Unrestricted (deficit) 2,214,361 91,742,645 (27,402,066) Total net position (deficit) 2,214,361$ 345,574,144$ (23,437,189)$ Non-Major
Enterprise
Fund
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 35 -
The accompanying notes are an integral part of these financial statements.

Water Sewer
O
PERATING REVENUES:

Charges for services 43,545,629$ 44,519,998$ Other operating revenues 546,204 1,024,262 Total operating revenues 44,091,833 45,544,260 OPERATING EXPENSES:

Cost of sales and services - - Administration and customer service 7,538,744 6,490,936 Utility administration 1,447,526 608,386
Sewer collection and lift stations - 1,676,351 Plant operations 9,926,415 13,489,293
Maintenance 3,138,031 4,434,120
Environmental control - 826,161 Distribution 5,448,156 -
Engineering and water quality control 2,976,680 1,657,022 General, administration and overhead 8,937,245 5,297,009 Share of joint venture payments - 1,757,244 Claims expense - -
Amortization 133,569 -
Depreciation 7,164,526 5,360,819
Total operating expenses 46,710,892 41,597,341 OPERATING INCOME (LOSS) (2,619,059) 3,946,919 NONOPERATING REVENUES (EXPENSES):

Investment income 1,126,039 1,251,526
Rental income 267,668 -
Noncapital grants 1,684,006 -
Interest expense and fiscal charges (1,841,859) (1,219,167) Miscellaneous income - -
Gain on disposal of assets 4,859 - Other 140,266 (15,420)
Total nonoperating revenues (expenses) 1,380,979 16,939 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (1,238,080) 3,963,858

CAPITAL CONTRIBUTIONS
Acquisition fees 1 ,701,909 -
Capital contributions 1,915,588 280,701
Capacity fees 2,262,695 2,356,198
EPA grants 95,994 -
Total contributions 5,976,186 2,636,899
CHANGES IN NET POSITION 4,738,106 6,600,757 NET POSITION:

Beginning of year 181,722,634 120,104,792
Restatement - 30,193,494
Beginning of year, as restated 181,722,634 150,298,286 End of year 186,460,740$ 156,899,043$
Major Enterprise Funds
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 36 -
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Integrated Internal
Waste Total Service Funds
OPERATING REVENUES:

Charges for services 500,029$ 88,565,656$ 39,210,601$ Other operating revenues - 1,570,466 69,787 Total operating revenues 500,029 90,136,122 39,280,388 OPERATING EXPENSES:

Cost of sales and services 624,476 624,476 15,041,317 Administration and customer service - 14,029,680 - Utility administration - 2,055,912 - Sewer collection and lift stations - 1,676,351 - Plant operations - 23,415,708 - Maintenance - 7,572,151 -
Environmental control - 826,161 - Distribution - 5,448,156 - Engineering and water quality control - 4,633,702 - General, administration and overhead - 14,234,254 - Share of joint venture payments - 1,757,244 - Claims expense - - 21,983,763 Amortization - 133,569 262,877 Depreciation - 12,525,345 430,491 Total operating expenses 624,476 88,932,709 37,718,448 OPERATING INCOME (LOSS) (124,447) 1,203,413 1,561,940 NONOPERATING REVENUES (EXPENSES):

Investment income (expense) 82,128 2,459,693 88,168 Rental income - 267,668 - Noncapital grants - 1,684,006 - Interest expense and fiscal charges - (3,061,026) (51,694) Miscellaneous income - - 2,989 Gain (loss) on disposal of assets - 4,859 - Other - 124,846 -
Total nonoperating revenues (expenses) 82,128 1,480,046 39,463 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (42,319) 2,683,459 1,601,403

CAPITAL CONTRIBUTIONS
Acquisition fees - 1,701,909 - Capital contributions - 2,196,289 - Capacity fees - 4,618,893 - EPA grants - 95,994 -
Total contributions - 8,613,085 - CHANGES IN NET POSITION (42,319) 11,296,544 1,601,403 NET POSITION:

Beginning of year 2,256,680 304,084,106 (25,038,592) Restatement - 30,193,494 -
Beginning of year, as restated 2,256,680 334,277,600 (25,038,592) End of year 2,214,361$ 345,574,144$ (23,437,189)$ Non-Major
Enterprise Fund
City of San Bernardino
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 37 -
The accompanying notes are an integral part of these financial statements.

Water Sewer
C
ASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 46,147,758$ 46,584,509$ Cash received from user departments - - Nonoperating miscellaneous revenues (expenses) - - Cash payments to suppliers for goods and services (19,052,305) (14,207,594) Cash payments to employees for services (18,855,176) (23,437,257) Cash payments for claims and insurance - - Cash paid to RIX joint venture for operations - (905,421) Cash inflows (outflows) from other activities - - Net cash provided by (used in) operating activities 8,240,277 8,034,237

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets (6,514,418) (3,323,858) Capital fees received 3,964,604 2,356,198 Proceeds from disposal of assets 30,855 - Rental income 275,263 -
Principal paid on long-term debt (1,121,464) (735,000) Interest paid (1,998,019) (1,240,880)
Capital grant proceeds 95,994 -
Net cash (used in) capital and related
financing activities (5,267,185) (2,943,540) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Consent Decree insurance drawdowns 1,709,241 - Interfund borrowing - -
Net cash provided by (used in) noncapital financing activities 1,709,241 - CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 960,511 1,125,668
Net cash provided by investing activities 960,511 1,125,668 Net change in cash and cash equivalents 5,642,844 6,216,365 CASH AND CASH EQUIVALENTS:

Beginning of year 56,381,161 70,105,146
End of year 62,024,005$ 76,321,511$
RECONCILIATION TO STATEMENT OF NET POSITION:

Cash and cash equivalents 5 0,441,661$ 82,943,540$ Restricted cash and cash equivalents 13,173,577 6,734,572 Less those not meeting the definition of a cash equivalent (Note 1) (1,591,233) (13,356,601) Total cash and cash equivalents 62,024,005$ 76,321,511$ Major Enterprise Funds
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 38 -
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Integrated Internal
Waste Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 375,029$ 93,107,296$ -$ Cash received from user departments - - 39,059,255 Nonoperating miscellaneous revenues (expenses) - - 2,989 Cash payments to suppliers for goods and services (1,199,676) (34,459,575) (8,985,534) Cash payments to employees for services - (42,292,433) (3,950,632) Cash payments for claims and insurance - - (8,767,520) Cash paid to RIX joint venture for operations - (905,421) - Cash inflows (outflows) from other activities (15,286) (15,286) 69,787 Net cash provided by (used in) operating activities (839,933) 15,434,581 17,428,345

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets - (9,838,276) (2,577,202) Capital fees received - 6,320,802 - Proceeds from disposal of assets - 30,855 - Rental income - 275,263 - Principal paid on long-term debt - (1,856,464) (200,000) Interest paid - (3,238,899) (9,091) Capital grant proceeds - 95,994 - Net cash (used in) capital and related
financing activities - (8,210,725) (2,786,293) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Consent Decree insurance drawdowns - 1,709,241 - Interfund borrowing - - (42,603) Net cash provided by (used in) noncapital financing activities - 1,709,241 (42,603) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (expense) 80,333 2,166,512 73,639 Net cash provided by investing activities 80,333 2,166,512 73,639 Net change in cash and cash equivalents (759,600) 11,099,609 14,673,088 CASH AND CASH EQUIVALENTS:

Beginning of year 7,075,185 133,561,492 21,410,264 End of year 6,315,585$ 144,661,101$ 36,083,352$ RECONCILIATION TO STATEMENT OF NET POSITION:

Cash and cash equivalents 6,315,585$ 139,700,786$ 36,083,352$ Restricted cash and cash equivalents - 19,908,149 - Less those not meeting the definition of a cash equivalent (Note 1) - (14,947,834) - Total cash and cash equivalents 6,315,585$ 144,661,101$ 36,083,352$ Non-Major
Enterprise Fund
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 39 -
The accompanying notes are an integral part of these financial statements.

Water Sewer
RE

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

Operating income (loss) (2,619,059)$ 3,946,919$ Nonoperating miscellaneous revenues (expenses) - - Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 7,298,095 5,360,819 Changes in operating assets and liabilities:

Receivables, net 1,328,684 596,623
Due from other governments - 443,626 Inventories 311,334 -
Prepaid items (74,741) 89,777
Due from other funds - -
RIX Joint Venture - 851,823 Pension-related deferred outflows of resources (6,147,613) (5,825,797) OPEB-related deferred outflows of resources (1,328,478) (1,192,228) Accounts payable and accrued liabilities (68,690) (1,465,928) Payroll and related liabilities (171,034) (179,041) Due to other funds (669,494) (196,482)
Deposits payable 727,241 -
Landfill closure liability - - Aggregate net pension liability 15,268,127 14,130,074 OPEB obligation/asset 140,760 183,712
Compensated absences (76,296) 40,036
Claims payable 3,135,697 218,323
Lease liabilities - -
Subscription liabilities - - Pension-related deferred inflows of resources (8,248,771) (8,205,761) OPEB-related deferred inflows of resources (565,485) (762,258) Total adjustments 10,859,336 4,087,318
Net cash provided by (used in) operating activities 8,240,277$ 8,034,237$

NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 1,915,588$ 280,701$
Non-cash from capital and related financing activities 1,915,588$ 280,701$ Major Enterprise Funds
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2023

- 40 -
The accompanying notes are an integral part of these financial statements.

Governmental
Activities
Integrated Internal
Waste Total Service Funds

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

Operating income (loss) (124,447)$ 1,203,413$ 1,561,940$ Nonoperating miscellaneous revenues (expenses) - - 2,989 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization - 12,658,914 693,368 Changes in operating assets and liabilities: -
Receivables, net (125,000) 1,800,307 (150,974) Due from other governments (15,286) 428,340 (372) Inventories - 311,334 (14,807) Prepaid items - 15,036 (290,377) Due from other funds - - 144,649 RIX Joint Venture - 851,823 - Pension-related deferred outflows of resources - (11,973,410) (2,377,738) OPEB-related deferred outflows of resources - (2,520,706) - Accounts payable and accrued liabilities (129,777) (1,664,395) 240,821 Payroll and related liabilities 4,061 (346,014) 58,158 Due to other funds - (865,976) (144,649) Deposits payable - 727,241 - Landfill closure liability (451,257) (451,257) - Aggregate net pension liability - 29,398,201 5,757,139 OPEB obligation/asset - 324,472 - Compensated absences 1,773 (34,487) 71,168 Claims payable - 3,354,020 13,216,243 Lease liabilities - - 1,442,042 Subscription liabilities - - 319,795 Pension-related deferred inflows of resources - (16,454,532) (3,101,050) OPEB-related deferred inflows of resources - (1,327,743) - Total adjustments (715,486) 14,231,168 15,863,416 Net cash provided by (used in) operating activities (839,933)$ 15,434,581$ 17,428,345$

NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions -$ 2,196,289$ -$ Non-cash from capital and related financing activities -$ 2,196,289$ -$ Non-Major
Enterprise Fund

FIDUCIARY FUND FINANCIAL STATEMENTS

City of San Bernardino
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023

- 41 -
The accompanying notes are an integral part of these financial statements.

Successor Agency
To the Economic
Development
Community Agency
Facilities of San Bernardino
District Private-Purpose
Custodial Fund Trust Fund
ASSETS
C
ash and investments 471,571$ 10,588,769$
Cash and investments with fiscal agents - 9,436,663 Receivables:

Accounts - 151,051
Interest - 8,580
Notes - -
Due from other governments 19,345 -
Due from City - 2,232,925
Prepaids - 346,290
Total assets 490,916 22,764,278

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources - 2,909,105 Deferred loss on refunding of bonds - 794,971 Total deferred outflows of resources - 3,704,076

LIABILITIES
Accounts payable 1,460 -
Accrued liabilities - 4,536
Retentions payable - 147,051
Deposits payable - 4,532
Interest payable - 263,331
Due to bondholders 12 -
Long-term liabilities:

Due in one year
Current portion of long-term debt - 8,095,000 Due in more than one year
Aggregate net pension liability - 7,936,290 Long-term debt - 23,258,614
Total liabilities 1,472 39,709,354

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources - 1,190,305 Total deferred inflows of resources - 1,190,305

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 489,444 - Held in trust for dissolution of EDA - (14,431,305) Total net position (deficit) 489,444$ (14,431,305)$ City of San Bernardino
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2023

- 42 -
The accompanying notes are an integral part of these financial statements.

Successor Agency
to the Economic
Development
Community Agency
Facilities of San Bernardino
District Private-Purpose
Custodial Fund Trust Fund
ADDITIONS:

Property taxes 698,272$ 9,670,903$
Investment income - 322,544
Total additions 698,272 9,993,447
DEDUCTIONS:

Administration 24,512 -
Redevelopment - 403,187
Payments to CFD trustee 264,766 -
Debt service - interest and fiscal charges - 1,742,162 Total deductions 289,278 2,145,349
Changes in Net Position 408,994 7,848,098
NET POSITION (DEFICIT):

Beginning of period 80,450 (22,279,403)
End of period 489,444$ (14,431,305)$

NOTES TO THE BASIC FINANCIAL STATEMENTS
City of San Bernardino
Index of Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 43
2 Cash and Investments 59
3 Notes Receivable 64
4 Interfund Receivables, Payables, and Transfers 65
5 Property Held for Resale 65
6 Capital Assets 66
7 Long-Term Liabilities 68
8 Leases 82
9 Subscription Liabilities 87
10 Special Assessment Debt with No City Commitment 88
11 Compensated Absences 89
12 Claims and Judgments Payable 90
13 Pension Plans 92
14 Other Postemployment Benefits 108
15 Other Required Disclosures 114
16 Fund Balance Classification 115
17 Net Investments in Capital Assets 116
18 Landfill Closure Liability 116
19 Successor Agency Trust for Assets of Former Redevelopment Agency 116 20 Consent Decree 117
21 Jointly Governed Organizations and Joint Ventures 118 22 Commitments and Contingencies 120
23 Prior Period Adjustments 121
24 Subsequent Events 122
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 43 -
Note 1 – Summary of Significant Accounting Policies

The basic financial statements of the City of San Bernardino, California (City) have been prepared in conformity with Generally Accepted Accounting Principles of the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting standards in the United States.

The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity

The City was incorporated on April 13, 1854, as a Charter City. The Cit y operates under a Council-Manager form of government and provides the following services: public safety (police), highways and streets, health and social services, culture and recreation, public improvements, community development (planning, building and zoning), public utilities (water and sewage), and general administrative services.

Component Units

The financial statements present the City and its component units , entities for which the City is considered to be financially accountable in accordance with generally accepted accounting principles. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and (1) it is able to impose its will on that or ganization, or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an 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). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance, part of the City ’s operations, and data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government. Based on the criteria above, the City has two blended component units. The City has no component units that meet the criteria for discrete presentation. The two blended component units are described as follows:

Blended Component Units

Affordable Housing Solutions of San Bernardino, Inc. (AHS)

On December 16, 2009, the Economic Development Agency (EDA) acquired the Global Mobile Home Park Corporation, a not -for-profit corporation (501(c)(3)), from the Redevelopment Agency of the City of Pomona for the redevelopment purpos es of the EDA as authorized by Resolution 2009- 16 of the Community Development Commission of the City of San Bernardino on May 4, 2009, and approved on May 5, 2009. The Mayor and City Council of the City of San Bernardino serve ex officio as the chairperson and members of the Community Development Commission of the City of San Bernardino, respectively. On September 23, 2009, the Corporation amended its Articles of Incorporation to rename the Corporation the “Affordable Housing Solutions of San Bernardino Inc.” (AHS), which was endorsed and filed in the office of the Secretary of State of the State of California on October 9, 2009. AHS is not currently active and has no assets.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 44 -
Note 1 – Summary of Significant Accounting Policies (Continued)

A. Financial Reporting Entity (Continued)

Blended Component Units (Continued)

San Bernardino Joint Powers Financing Authority (Authority)

The San Bernardino Joint Powers Financing Authority (Authority) was established pursuant to a Joint Exercise of Powers Agreement dated August 21, 1989, by and between the City and the EDA. The EDA was dissolved during fiscal year 2012 and the Successor Agency to the San Bernardino EDA is now a member of the JPFA along with the City. The Authority was created for the purpose of providing financing for redevelopment activities for the City, the EDA, or other local agencies in the State of California, the acquisition, construction or installation by the Authority of public capital improvements and/or the purchase by the Authority of public obligations within the meaning of the Marks -Roos Act. The Authority is authorized pursuant to the Marks-Roos Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of ma king loans to, the City, the EDA, or such other local agencies to provide financing for redevelopment activities of the City or the EDA. The Authority is governed by a board composed of the City's elected officials. There are no separate financial statements issued for the Authority.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements , consisting of the Statement of Net Position and the Statement of Activities, report information on all of the nonfiduciary activities of the City and its component units.

Interfund activity has been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support.

The Statement of N et Position presents financial information on all of the City’ s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities demonstrates the degree to which the direct expenses of given functions or segments are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, fu nction or segment. Program revenues of the City include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restric ted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items that are not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided f or governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 45 -
Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

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

The government-wide, proprietary, custodial fund, and private-purpose trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting . Under the economic resources measurement focus, all assets (current and long-term), deferred outflows of resources, liabilities (current and long-term), and deferred inflows of resources are reported. Under the accrual basis of accounting , revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as reve nue as soon as all eligibility requirements imposed by the providers have been met.

In addition to assets, the statement of net position will generally report a separate section for deferred outflows of recourses, which represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities , the statement of net position will generally report a separ ate section for deferred inflows of resources, which represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Amounts reported as program revenues inc lude: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general r evenues rather than as program revenues. Likewise, general revenues include all taxes.

During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year -end are reported as due from/ to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Balances between the funds included in governmental activities (i.e. the governmental and internal service funds) are eliminated so only the net amount is included as internal balances in the governmental activities column . B alances between the governmental activities and the business -type activities are presented as internal balances and eliminated in the total primary government column.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 46 -
Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so only the net amount is included as transfers in the governmental activities column. Transfers between governmental activities and the business-type activities are eliminated in the total primary government column.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Under the current financial resources measurement focus , generally only current assets and current liabilities are reported in the governmental funds.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered av ailable when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fisca l period. Reimbursements under state and federal grants are accrued if received within 180 days of the end of the fiscal period t o enable the matching of revenue with applicable expenditures. Expenditures generally are recorded when a liability is incurred, under accrual accounting. However, expenditures for debt service and compensated absences are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds.

Proceeds of general long-term liabilities are reported as other financing sources.

Property taxes, special assessments, sales taxes, franchise taxes, transient occupancy taxes, gas taxes, vehicle license fees, charges for services, amounts due from other governments , and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only when the government receives cash and are therefore not susceptible to accrual.

The City reports the following major governmental funds:

General Fund – This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.

American Rescue Plan Act Fund – This fund is used to account for the various projects and expenditures associated with the American Rescue Plan Act, which was passed by the 117 th United States Congress and signed into law on March 11, 2021. Under the provisions of the Act, the City was awarded approximately $77.65 million distributed in two payments in May 2021 and May 2022.

Federal and State Grants Fund – This fund is used to report various grants awarded to the City by Federal, State, an d local governments not otherwise accounted for in the General Fund or Capital Projects funds. A detailed report by program is available under a separate report meeting the criteria of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all federal grants received by the City.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 47 -
Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

The City reports the following major proprietary funds:

Water Fund – This fund is used to account for the provision of water services to the residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

Sewer Fund – This fund is used to account for the provision of wastewater treatment and collection to residential, commercial, and industrial segments of the City. All activities necessary to provide such services are accounted for in this fund, including , but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

Additionally, the government reports the following fund types:

Governmental Funds
Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted o r otherwise committed or assigned for specific purposes.

Debt Service Funds account for the accumulation of resources and payment of long -term liabilities of the City and related entities.

Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities and circulation infrastructure.

Proprietary Funds
Internal Service Funds account for operations that provide services to other departments of the City on a cost reimbursement basis. These services include workers’ compensation, liability insurance, replacement and maintenance of the City’s vehicle fleet, and information technology systems.

Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund ’s principal ongoing operations. The principal operating revenues of the City ’s enterprise and internal service funds are charges to customers for sales and services.

Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 48 -
Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Fiduciary Funds
The Community Facilities District Custodial Fund accounts for the various assessment districts for which the City acts as an agent for debt service activity, as the City is prohibited from levying additional taxes for these districts.

The Successor Agency to the Economic Development Agency of San Bernardino Private-Purpose Trust Fund accounts for the assets and liabilities of the former Economic Development Agency and is allocated revenue to pay e stimated installment payments of enforceable obligations until obligations are paid in full and assets have been liquidated.

D. Cash, Cash Equivalents, and Investments

The City values its cash and investments in accordance with the provisions of Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair Value Measurement and Application , which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are avai lable to measure fair value. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach, or the income approach.

Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value except for investments in investment contracts which are recorded at contract value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates or fair market value when market quotations are readily available.

Cash and cash equivalents are considered to be cash on hand, demand deposits, and short -term investments with original maturities of three months or less from the date of acquisition. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year, and may result in negative investment income in the accompanying financial statements. Investment income is allocated to the various funds based on each fund ’s average month-end cash balance and includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.

For purposes of the statement of cash flows, amounts reported as cash and cash equivalents, include amounts on deposit in the City pool and any short -term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

E. Restricted Assets

Amounts reported as restricted assets in the enterprise funds have been restricted by bond indentures or are to be used for specified purposes based on contract provisions, such as bonded debt service.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 49 -
Note 1 – Summary of Significant Accounting Policies (Continued)

F. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” or “advances to/from other funds” (i.e. the current portion of interfund loans). Any residual balances outstanding between the governmental activities and busines s-type activities are reported in the Governmental- Wide Financial Statements as “internal balances.”

G. Notes Receivable

Long-term notes receivable consist of loans to developers to assist in the stimulation of affordable housing projects, rehabilitation loans to low income individuals that need assistance in rehabilitatin g their homes, and first time buyers assistance loans. Loan repayment terms range from due at the sal e of the property to 60 years. A majority of the loans to the developer s will be paid from residual rental receipts earned on the affordable housing property. Due to the long-term nature and contingent repayment requirements for some of the loans, an allowance for doubtful accounts has been estimated, however, actual results can differ from the estimates. In the governmental funds financial statements, disbursements for providing these revolving loan receivables are recorded as expenditures while the collection of these receivables are recorded as revenue. Due to the requirement of the granting agency, these receivable collections must be utilized for the purpose of the grant requirements. For further details, see Note 3 below.

H. Inventory

Inventories are valued on the average cost method , which approximates a first -in, first-out (FIFO) basis .

Inventory balances represent expendable supplies held for consumption. Inventory is reported under the consumption method whereby expenditures are reported at the time inventory is used. Inventory is reported in governmental funds at cost and is offset with nonspendable fund balance to show that inventories do not constitute available spendable resources.

I. Prepaid Items

Certain payments to vendors for costs applicable to future accounting periods are recorde d as prepaid items in both gove rnment-wide and fund financial statements using the consumption method. Prepaid items are reported as a nonspendable component of fund balance to indicate that they are not spendable for appropriation and are not expendable financial resources.

J. Property Held for Resale

Property held for resale represents land, structures, and related improvements that were acquired for resale as part of the City’s redevelopment and grant activities. Property held for resale is accounted for is recorded at lower of cost or net realizable value in accordance with accounting principles generally accepted in the United States of America. Property held for resale, which is not available for current expenditure, is reported in the governmental funds balance sheet as re stricted fund balance when proceeds from the sale must be used for restricted purposes or as nonspendable fund balance when such proceeds are not restricted.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 50 -
Note 1 – Summary of Significant Accounting Policies (Continued)

K. Leases

Lessee
The City has a policy to recognize a lease liability and a right ‐to‐use lease asset (lease asset) in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $50,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the le ase assets into service. Lease assets are amortized using the straight -line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

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

 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.

Lessor
The City is a lessor for leases of office and commercial space and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 51 -
Note 1 – Summary of Significant Accounting Policies (Continued)

K. Leases (Continued)

Lessor (Continued)

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

 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

L. Capital Assets

Capital assets, which include land, buildings and improvements, machinery, vehicles, equipment (including furniture) and infrastructure assets, are reported in the applicable activity columns in the accompanying government-wide statement of net position an d the proprietary funds statement of net position. Capital assets are defined by the government as land, buildings and improvements, machinery, vehicles, or equipment assets with an initial individual cost of more than $5,000 and a useful life of at least two years.

Infrastructure assets, consisting of certain improvements other than buildings, including pavement, curbs and gutters, streets and sidewalks, drainage systems, traffic control devices, streetlights, and right -of-way corridors within the City , a re capitalized if the initial individual cost exceeds $200,000. C apital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets, donated works of art and similar items, and capital assets received pursuant to a service concession arrangement are recorded at their acquisition value at the date of the contribution. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Capital o utlays are recorded as expenditures in the governmental funds and as assets in the government -wide financial statements to the extent the City’s capitalization thresholds are met. Major outlays for ca pital assets and improvements are capitalized as construction in progress as projects are constructed.

With the exception of land, capital assets used in operations are depreciated over their estimated useful lives using the straight -line method in the g overnment-wide financial statements and in the financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective statement of net position. T he City has elected to use the Basic Approach for reporting its infrastructure systems.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 52 -
Note 1 – Summary of Significant Accounting Policies (Continued)

L. Capital Assets (Continued)

The ranges of lives used for depreciation purposes for each capital asset class are:

Years
Buildings and improvements 10 – 40
Infrastructure 20 – 50
Wells, pumping plants, reservoirs, and distribution system 8 – 50 Interceptor lines 50
Disposal plant 35 – 50
Leasehold improvements 5 – 25
Shops, offices, stores, and yards 10 – 20
Tools and equipment 4 – 20
Office equipment 5 – 20
Communication equipment 7 – 10
Computer equipment 5 – 10
Automotive equipment 3 – 8

M. Compensated Absences

Vacation pay is payable to employees at the time used or upon termination of employment. Sick leave accrued but unused is cumulative from year to year. In accordance with negotiated labor agreements , employees are allowed to cash out sick leave hours over certain balances once a year and upon termination.

All vacation pay and applicable sick leave is accrued when incurred in the government -wide, proprietary, and fiduciary fund financial statements. The current portion of the liability is estimated from prior year payments and adjusted for material expected var iances. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental funds, the General Fund is typically used to liquidate compensated absences.

N. Long-Term Debt

For the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fun type statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of de bt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 53 -
Note 1 – Summary of Significant Accounting Policies (Continued)

O. Subscription-Based Information Technology Arrangements

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

The subscription assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Subscription assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Subscription assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method.

Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscr iption term.

The present value of subscription payments are discounted based on a borrowing rate determined by the City.

P. Claims and Judgments Payable

Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the general liability and workers’ compensation internal service funds. As of June 30, 2023 , the City had an obligation related to claims and judgments which is reflected as a liability on the government-wide statements and is more fully described in Note 12.

Q. Pension Plans

For purposes of measuring the net pension liability, deferred outflow of resources and deferred inflow of resources related to pensions and pension expense, information about the fiduciary net position of the plans, and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (see Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value . The General Fund and Internal Service Funds are typically used to liquidate the pension liability related to the City ’s governmental activities while the pension liability for Business-type activities is liquidated from the Enterprise Funds.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 54 -
Note 1 – Summary of Significant Accounting Policies (Continued)

Q. Pension Plans (Continued)

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

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022

R. Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value. The Enterprise Funds are used to liquidate the OPEB liability.

GASB Statement No. 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022

S. Fund Balances

In the fund financial statements, governmental fund balance is made up of the following components:

Nonspendable Fund Balance includes amounts that cannot be spent because they are either not spendable in physical form (such as inventory) or that are legally or contractually required to be maintained intact (such as endowments).

Restricted Fund Balance includes amounts that can be spent only for specific purposes imposed by creditors, grantors, contributors, or laws or regulations of other governments or through enabling legislations.

Committed Fund Balance includes amounts that can only be used for specific purposes due to formal action of the Mayor and City Council through adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 55 -
Note 1 – Summary of Significant Accounting Policies (Continued)

S. Fund Balances (Continued)

On November 21, 2018, t he Mayor and City Council adopted the General Fund Reserve Policy, setting a 1 5% minimum in the Emergency Reserve and 10% in the Economic Contingency Reserve. The Emergency Reserve was established for the purpose of addressing any extremely unusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement or judgment. Utilization of the Emergency Reserve may only occur after the declaration of an emergency by a majority of the City Council. The Economic Contingency Reserve was established for the purpose of providing a mechanism to allow for a measured and thoughtful reduction in expenditures during times of economic downturn. Utilization of the Economic Contingency Reserve requires approval by a majority of the City Council. The reserves committed at June 30, 2023 were calculated utilizing the fiscal year 2023- 2024 adopted General Fund expenditure budget of $191,921,762.

On October 7, 2020, t he Mayor and City Council adopted the Measure S Expenditure Policy , committing proceeds from the Measure S transaction and use tax effective April 1, 2021 to be used in accordance with the Measure S ballot languag e, the City’s adopted Key Strategic Targets and Goals, and the General Fund Reserve Policy . As part of the annual budget process, the proposed Measure S spending plan is reviewed by the Measure S Citizens Oversight Committee as well as the Mayor and City Council. Utilization of Measure S funds requires approval by a majority of the City Council via the budget adoption and amendment process. The amount committed at June 30, 2023 totaled $81,762,949.

Assigned Fund Balance includes amounts that are constrained by an intent to be used for a specific purpose but are neither restricted nor committed. Through the Mayor and City Council’ s adoption of the budget and subsequent budget adjustments throughout the year, the City assigns the specific purpose of the funding.

Unassigned Fund Balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications. In other governmental funds, the unassigned classification reports a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.

The City considers restricted fund balances to have been spent when an expenditure is incurred for the purposes for which both unrestricted and restricted fund balance is available. The City considers unrestricted fund balances to have been spent when an expenditure is incurred for the purposes for which amounts in any of the unrestricted classifications of fund balance could be used. When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) fund balances are available, the City’s policy is to apply restrict ed first. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally, unassigned fund balance.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 56 -
Note 1 – Summary of Significant Accounting Policies (Continued)

T. Net Position

In the governmental -wide financial statement and proprietary fund financial statements, net positions are classified as follows:

Net Investment in Capital Assets consists of capital assets, net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position is all resources that do not meet the definition of “net investment in capital assets” or “restricted net position.”

When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, and then unrestricted resources as they are needed.

U. Property Taxes

Under California law, general property taxes are assessed fo r up to 1% of the property’s assessed value.

General property taxes are collected by the counties along with other special district taxes and assessments and voter-approved debt. General property tax revenues are collected and pooled by the County throughout the fiscal year and then allocated and paid to the County, cities, and school districts based on complex formulas prescribed by State statutes.

Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On January 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in two installments. The first installment is due November 1 and is delinquent after December 10. The second installment is due February 1 and is delinquent after April 10. The City generally accrues only those taxes which are received within sixty days after the year-end.

On June 30, 2016, the City transferred assets and liabilities comprising its fire service operations to the San Bernardino County Fire Protection District (SBCFPD) for the purpose of regionalization of fire services. As a result of the transfer, the City is required to transfer annual revenues from property taxes and 35 percent of its annual property tax in lieu of Vehicle License Fee (VLF) revenue to SBCFPD. Beginning July 1, 2017, the County’s VLF portion was reduced to 26.5 percent.

V. Unearned Revenue

Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility requirements. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 57 -
Note 1 – Summary of Significant Accounting Policies (Continued)

W. Encumbrances

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in all governmental funds. Amounts encumbered at the end of the current fiscal year that are not included in restricted or committed fund balance shall be considered assigned and will be reported by function. Encumbrances are not included in reported expenditures. These encumbrances are not separately classified in the financial statements and are summarized at June 30, 2023 as follows:

X. Deferred Outflows and Deferred Inflows of Resources

When applicable, the statement of net position and the balance sheet will report a separate section for deferred outflows of resources. Deferred outflows of resources represent outflows of resources (consumption of net assets) that apply to future periods and that, therefore will not be recognized as an expense or expenditure until that time.

Conversely, deferred inflows of resources represent inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time.

Y. Use of Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Specifically, the City has made certain estimates and assumptions related to the collectability of its receivables ( i.e. accounts receivable, intergovernmental receivables, and notes receivable), the depreciation of its capital assets and infrastructure networks, and the ultimate outcome of claims and judgments. Actual results could differ from those estimates.

Amount
General Fund 4,825,169$
American Rescue Plan Act Fund 377,042
Federal and State Grants Fund 10,330,893
Other governmental funds 14,844,460
Total 30,377,564$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 58 -
Note 1 – Summary of Significant Accounting Policies (Continued)

Z. Implementation of New GASB Pronouncements

The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the city, for the year ended June 30, 2023. The financial statements included herein apply the requirements and provisions of these statem ents, including necessary retroactive adjustments to financial statement classifications and presentations.

In May 2019, G ASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of rep orting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, ( 2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; e stablishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the on the City’s financial statements for the fiscal year ended June 30, 2023.

In March 2020, GASB issued Statement No. 94, Public-Private and Public -Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements (PPPs) . As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental enti ty) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital assets (the underlying PPP asset), for a period of time in an exchange or exchange -like transaction. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

In March 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangement s. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA resul ts in a right -to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscriptions payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2023.

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objective s of this S tatement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB S tatements and (2) accounting and financial reporting for financial guarantees.

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 59 -
Note 2 – Cash and Investments
Cash and investments, as of June 30, 2023, are classified in the accompanying financial statements as follows:

Cash and investments, as of June 30, 2023, consist of the following:

A. Investments Authorized by the California Government Code and the City’s Investment Policy

The table on the following page identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk., and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Fiduciary Funds
Governmental Business-Type S tatement of
Activities Activities Total Net Position Total
Cash and investments 324,444,896$ 139,700,786$ 464,145,682$ 11,060,340$ 475,206,022$ Cash and investments with fiscal agent 28,304 - 28,304 9,436,663 9,464,967 Restricted cash - 19,908,149 19,908,149 - 19,908,149 Restricted investment - Consent Decree (Note 17) - 23,565,710 23,565,710 - 23,565,710 Total cash and investments 324,473,200$ 183,174,645$ 507,647,845$ 20,497,003$ 528,144,848$ Government-Wide Statement of Net Position
Cash:

Cash on hand 5,585$
Deposits with financial institution 66,555,142
Total cash 66,560,727
I
nvestments:

Investments 418,110,264
Investments held by bond trustee 43,473,857
Total investments 461,584,121
Total cash and investments 528,144,848$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 60 -
Note 2 – Cash and Investments (Continued)

A. Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)

Authorized Investment Types
Maximum
Maturity
Maximum Percentage
Of Portfolio
Maximum Investment in
One Issuer*
United States Treasury Obligations 5 Years None None
United States Federal Agency Securities 5 Years None None Bonds, Notes, or Registered Warrants
Issued by the State of California or Local
Agencies within the State of California
5 Years 30% None
Bankers’ Acceptances 180 Days 30% 5%
Commercial Paper 270 Days 25% 5%
Negotiable Certificates of Deposit 5 Years 30% None
Medium-Term Corporate Notes 5 Years 30% 5%
Money Market Mutual Funds N/A 20% None
Supranational Obligations 5 Years 10% 5%
Local Agency Investment Fund (LAIF) N/A None $75 million per account

*Based on state law requirements or City investment policy requirements, whichever is more restrictive.

B. Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustee are governed by provisions of the debt agre ements, rather than the general provisions of the California Government Code or the City’s investment policy. The table on the following page identifies the investment types that are authorized for investments held by bond trustee. The table also identifie s certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Types
Maximum
Maturity
Maximum Percentage
Allowed
Maximum Investment
in One Issuer
United States Treasury Obligations None None N/A
United States Federal Agency Securities None None None
Bonds, Notes, or Registered Warrants
Issued by the State of California or Local
Agencies within the State of California
5 Years None None
Bankers’ Acceptances 180-360 Days None None
Commercial Paper 90-180 Days None None
Medium-Term Corporate Notes None None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 61 -
Note 2 – Cash and Investments (Continued)

C. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest 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. On e 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 mat urity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City has no specific limitations with respect to this metric.

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

Investment Type Total 1 year or fewer 1 to 2 years Over 2 years Local Agency Investment Fund 111,492,753$ 111,492,753$ -$ -$ Money market mutual funds 159,214,792 159,214,792 - - Certificates of deposit 2,844,202 - 1,701,348 1,142,854 Non-U.S. government and supranational bonds 6,896,521 - 2,749,076 4,147,445 Federal agency securities 84,319,593 4,138,107 17,129,704 63,051,781 U.S. Treasury obligations 31,942,504 1,559,567 9,321,601 21,061,336 Medium-term corporate notes 38,803,536 791,544 11,389,072 26,622,920 Asset backed securities 6,162,072 - 1,220,721 4,941,351 Held by bond trustee:

Money market mutual funds 19,908,148 19,908,148 - - Total investments 461,584,121$ 297,104,911$ 43,511,522$ 120,967,687$ Investment Maturities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 62 -
Note 2 – Cash and Investments (Continued)

D. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating (where applicable) required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year -end for each investment type.

E. Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated in the Government Code. Investments in any one issuer that represent 5 percent or more of total City investments are as follows:

F. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credi t risk for investments is the risk that, in the event of the failure of the counterparty (i.e. broker -dealer) to a transaction, a government will not be able to recover the value of its investments or collateral securities that are in the possession of another party.

Minimum Ratings Rating
Legal at Year-End at Year-End
Investment Type Total Rating AA or AAA A /A-1 Not Rated Local Agency Investment Fund 111,492,753$ N/A -$ -$ 111,492,753$ Money market mutual funds 159,214,792 AA+ 159,214,792 - - Certificates of deposit 2,844,202 N/A - 696,716 2,147,486 Non-U.S. government and supranational bonds 6,896,521 AA 6,896,521 - - Federal agency securities 84,319,593 AA 84,319,593 - - U.S. Treasury obligations 31,942,504 N/A - - 31,942,504 Medium-term corporate notes 38,803,536 AA- 38,803,536 - - Asset backed securities 6,162,072 AA 6,162,072 - - Held by bond trustee:

Money market mutual funds 19,908,148 AA+ 19,908,148 - - Total investments 461,584,121$ 315,304,662$ 696,716$ 145,582,743$ Reported Percentage
Issuer Amount of Portfolio
Federal Home Loan Bank 45,519,261$ 9.86%
Investment Type
Federal Agency Securities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 63 -
Note 2 – Cash and Investments (Continued)

F. Custodial Credit Risk (Continued)

The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit ). The fair value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. At June 30, 2023, the City’s deposits (bank balances) were collateralized under California Law.

G. Investment in State Investment Pool

The City is a voluntary participant in the Lo cal Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

H. Fair Value Measurements

The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements), inputs are quoted price of similar assets in active m arkets (Level 2 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The City has the following fair value measurements for its investments as of June 30, 2023:

Investments measured by fair value level: June 30, 2023 Level 1 Level 2 L evel 3 Non-U.S. government and supranational bonds 6,896,521$ -$ 6,896,521$ -$ Federal agency securities 84,319,593 - 84,319,593 - U.S. Treasury obligations 31,942,504 31,942,504 - - Medium-term corporate notes 38,803,536 - 38,803,536 - Asset backed securities 6,162,072 - 6,162,072 - Total investments by fair value level 168,124,226$ 31,942,504$ 136,181,722$ -$ Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 111,492,753$
Money market mutual funds 179,122,940
Certificates of deposit 2,844,202
Total investments not subject to the fair value hierarchy 293,459,895$ Total investments 461,584,121$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 64 -
Note 2 – Cash and Investments (Continued)

H. Fair Value Measurements (Continued)

Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches:

U.S. Treasuries, U.S. Agencies, Non -U.S. supranational bonds, and Commercial Paper – quoted prices for identical securities in markets that are not active

Medium term notes – quoted prices for similar securities in active markets

Asset-backed securities – recent appraisals of the asset value.

Note 3 – Notes Receivable

The City uses funds generated from the former EDA as well as state and federal funding sources to offer financial assistance to qualified developers, individuals, and families primarily for housing development, rehabilitation, and economic development. Repayment terms on these loans can be classified in the following categories: 1) Deferred loans which are due and payable only upon sale or transfer of title to the property; 2) Amortizing loans which have a set monthly payment, which may be interest bearing or principal only; 3) Forgivable loans which may convert to grants depending on the terms of the loan agreements; 4) Residual receipts loans which require repayments only when the properties have positive cash flows pursuant to a formula set forth in the loan agreement; and 5) Term loans which require payment in full on the maturity date of the loans.

In the financial statements, notes receivable are reported net of an allowance for d oubtful accounts. In estimating the allowance, management considered the following factors: 1) composition of the loan portfolio; 2) past write -off experience; 3) past market valuation; and 4) life -to-date interest and principal payments, if applicable. The allowance estimate is continually evaluated and adjusted to reflect what management believes to be the net realizable value of the total loan portfolio. At June 30, 2023, notes receivable consisted of the following:

Allowance for Financial
Notes Receivable Doubtful Accounts Statement
Balance Balance Balance
June 30, 2023 June 30, 2023 June 30, 2023
City:

Federal and State Grants Fund 12,880,938$ ( 12,880,938)$ -$ Low and Moderate Income Housing Fund 28,470,162 (28,470,162) - Total City 41,351,100 (41,351,100) - Successor Agency:

Successor Agency to the Economic Development
Agency of San Bernardino 2,946,934 (2,946,934) - Total Successor Agency 2,946,934 (2,946,934) - Total 44,298,034$ (44,298,034)$ -$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 65 -
Note 4 – Interfund Receivables, Payables, and Transfers

A. Due To / From Other Funds

Amounts due to and due from other funds at June 30, 2023, were as follows:

B. Transfers

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

Note 5 – Property Held for Resale

Property held for resale represents single -family, multi-family, commercial, and retail real estate acquired by the City in the General Fund, the Low and Moderate Income Housing Fund , and the Federal and State Grant Fund. Property held for resale is record ed at the lower of cost or net realizable value in accordance with accounting principles generally accepted in the United States and is evaluated for impairment on an annual basis.

Approximately 15 properties are reported in the General Fund ranging in a mount from $35,000 to $16.75 million, and total $39.36 million. Approximately 71 properties are reported in the Federal and State Grants major special revenue fund ranging in amount from under $1,000 to $640,000, and total $16. 78 million. The Low and Moderate Income Housing special revenue fund includes approximately 5 3 properties ranging in amount from approximately $5,000 to $1.81 million, and total $12.43 million.

Due From Other Funds Due To Other Funds Amount Purpose
Liability Insurance Internal Service Fund Motorpool Internal Service Fund 2,100,522$ Overdrawn Cash Water Fund General Fund 974,002 Right-of-way maintenance Sewer Fund General Fund 1,305,623 Right-of-way maintenance Total 4,380,147$
Transfers In Transfers Out Amount P urpose
Special Assessments Fund General Fund 115,996$ Budgeted Operational Transfer Alternative Transportation Fund General Fund 68,357 Operational Transfer Total 184,353$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 66 -
Note 6 – Capital Assets

A. Governmental Activities

Capital asset activity for the year ended June 30, 2023 was as follows:

Depreciation and amortization expense for the year ended June 30, 202 3 were charged to the functions/programs of the primary government as follows:

Balance Balance
J
uly 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:

Land 104,133,846$ -$ -$ -$ 104,133,846$ Construction in progress 23,086,112 14,195,881 - (3,875,401) 33,406,592 Total capital assets, not being depreciated 127,219,958 14,195,881 - (3,875,401) 137,540,438 Capital assets, being depreciated:

Infrastructure 516,789,638 - - 3,543,191 520,332,829 Buildings and improvements 84,433,384 - - - 84,433,384 Machinery, vehicles, and equipment 49,674,808 3,483,729 (505,375) 332,210 52,985,372 Subtotal 650,897,830 3,483,729 (505,375) 3,875,401 657,751,585 Less accumulated depreciation
Infrastructure (381,680,612) (8,670,424) - - (390,351,036) Buildings and improvements (70,630,721) (2,250,034) - - (72,880,755) Machinery, vehicles, and equipment (45,045,962) (1,906,008) 505,375 - (46,446,595) Subtotal (497,357,295) (12,826,466) 505,375 - (509,678,386) Capital assets being depreciated, net 153,540,535 (9,342,737) - 3,875,401 148,073,199 Intangible assets, being amortized:

Purchased software 5,946,327 - - - 5,946,327 Accumulated amortization (5,946,327) - - - (5,946,327) Subtotal - - - - - Right to use leased assets, being amortized:

Buildings and improvements 1 ,725,603 211,961 - - 1,937,564 Machinery, vehicles, and equipment 451,015 1,712,746 (451,015) - 1,712,746 Subtotal 2,176,618 1,924,707 (451,015) - 3,650,310 Less accumulated amortization
Buildings and improvements (586,335) (586,361) - - (1,172,696) Machinery, vehicles, and equipment (338,262) (268,093) 451,015 - (155,340) Subtotal (924,597) (854,454) 451,015 - (1,328,036) Total right to use leased assets, being amortized 1,252,021 1,070,253 - - 2,322,274 Right to use Subscription IT Assets, being amortized - 570,838 - - 570,838 Less accumulated amortization - (149,093) - - (149,093) Total Right to use lsubscription IT assets - 421,745 - - 421,745 Total capital assets, net 282,012,514$ 6,345,142$ -$ -$ 288,357,656$ Governmental activities
General government 1,915,213$
Public safety 1,183,539
Public works 9,249,542
Culture and recreation 7 14,698
Community services 73,653
Internal service funds 693,368
Total depreciation/amortization expense - Governmental activities 13,830,013$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 67 -
Note 6 – Capital Assets (Continued)

B. Business-Type Activities

Capital asset activity for the year ended June 30, 2023, was as follows:

Depreciation and amortization expense for the year ended June 30, 202 3 was charged to the functions/programs of the primary government as follows:

Balance
July 1, 2022, Balance
As Restated Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:

Land and easements 23,213,972$ 405,000$ (25,996)$ -$ 23,592,976$ Construction in progress 44,057,137 6,901,262 - (1,601,171) 49,357,228 Total capital assets, not being depreciated 67,271,109 7,306,262 (25,996) (1,601,171) 72,950,204 Capital assets, being depreciated:

Water rights, wells, and pumping 106,054,383 750,338 - - 106,804,721 Distribution and collection systems 182,706,935 4,353,996 - - 187,060,931 Building, plant, and store yards 169,017,543 539,316 - - 169,556,859 Other capital assets 60,785,824 1,130,574 (122,177) 1,601,171 63,395,392 Subtotal 518,564,685 6,774,224 (122,177) 1,601,171 526,817,903 Less accumulated depreciation
Water rights, wells, and pumping (52,418,733) (2,551,354) - - (54,970,087) Distribution and collection systems (68,308,063) (4,423,845) - - (72,731,908) Building, plant, and store yards (128,541,959) (3,554,247) - - (132,096,206) Other capital assets (28,040,839) (1,995,899) 122,177 - (29,914,561) Subtotal (277,309,594) (12,525,345) 122,177 - (289,712,762) Total capital assets, being depreciated 241,255,091 (5,751,121) - 1,601,171 237,105,141 Right to use leased assets, being amortized:

Buildings and improvements 155,243 - - - 155,243 Subtotal 155,243 - - - 155,243 Less accumulated amortization
Buildings and improvements (47,767) (47,767) - - (95,534) Subtotal (47,767) (47,767) - - (95,534) Total right to use leased assets, being amortized 107,476 (47,767) - - 59,709 Right to use Subscription IT Assets, being amortized 148,632 98,074 - - 246,706 Less accumulated amortization - (85,802) - - (85,802) Total Right to use lsubscription IT assets 148,632 12,272 - - 160,904 Total capital assets, net 308,782,308$ 1,519,646$ (25,996)$ -$ 310,275,958$ Business-type activities
Water Enterprise Fund 7,298,095$
Sewer Enterprise Fund 5,360,819
Total depreciation/amortization expense - Business-type activities 12,658,914$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 68 -
Note 7 – Long-Term Liabilities

A. Governmental Activities

The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023:

2018 Lease Revenue Refunding Bonds

On January 9, 2018, the City issued $4,414,002 of 2018 Lease Revenue Refunding Bonds to defease and refund on a current basis, all of the outstanding Lease Revenue Refunding Bonds (City Hall Project), Series 1996 Bonds. The bonds are payable solely from and secured by a pledge of revenues consisting primarily of lease payments to be made by the City pursuant to a lease agreement. If the City defaults on its obligation to make the lease payments due over the term of the lease agreement, there is no available remedy of acceleration of the total lease payments due over the term of the lease agreement. The bonds consist of serial bonds maturing from 2019 through 2023 in annual installments of $991,000 to $994,000. Interest is due and payable semi -annually at 4.08%. Annual debt service is approximately $990,000 through 2023. The bonds are subject to federal arbitrage requirements. The aggregate debt service payments of the new debt are $199,009 less than the old debt. The issuance of the new debt and the refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $107,423. This obligation was paid off in full during the fiscal year, with no remaining balance outstanding.

Balance Debt D ebt Balance Due within Due in More
July 1, 2022 Issued Retired June 30, 2023 One Year Than One Year Governmental Activities:
2018 Lease Revenue Bonds 953,847$ -$ (953,847)$ -$ -$ -$ 2020 Pension Obligation Bonds 19,820,000 - (35,000) 19,785,000 35,000 19,750,000 Bond discount (550,556) - 22,472 (528,084) - (528,084) Direct borrowings:

Notes payable
HUD Section 108 - Arden Guthrie 3,200,000 - (624,000) 2,576,000 654,000 1,922,000 Tow Services Settlement Agreement 400,000 - (200,000) 200,000 200,000 - Total notes payable 3,600,000 - (824,000) 2,776,000 854,000 1,922,000 Lease liabilities (Note 8)
Lease liabilities 1 ,245,331 1,751,203 (798,666) 2,197,868 880,562 1,317,306 Total lease liabilities 1,245,331 1,751,203 (798,666) 2,197,868 880,562 1,317,306 Subscription liabilities (Note 9)
Subscription liabilities - 567,838 (177,934) 389,904 187,941 201,963 Total subscription liabilities - 567,838 (177,934) 389,904 187,941 201,963 Total 25,068,622$ 2,319,041$ (2,766,975)$ 24,620,688$ 1,957,503$ 22,663,185$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 69 -
Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2020 Pension Obligation Bonds

On July 23, 2020, the City issued $19,850,000 in Taxable Pension Obligation Bonds (the “Series 2020 Bonds”) to refund on a current basis the notes payable previously held by AMBAC and Preston Hollow Capital. The bonds are payable from the unrestricted revenues of the General Fund. In the e vent of default, the principal due on the Bonds is subject to acceleration. The bonds consist of serial bonds maturing from 2021 through 20 46 in annual installments of $ 15,000 to $ 2,355,000. Interest is due and payable semi - annually at 6.75%. The aggregate debt service payments of the new debt are $308,150 less than the old debt.

The issuance of the new debt and the refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt services payments) of approximately $228,777.

The annual debt service requirements of the Pension Obligation Bonds outstanding at June 30, 2023 are as follows:

HUD Section 108 – Arden Guthrie Focused Neighborhood Revitalization Project Note Payable (Direct Borrowing)

The City of San Bernardino entered into a Contract for Loan Guarantee Assistance, a Master Fiscal Agency Agreement, and executed a promissory note with the United States Department of Housing and Urban Development pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended (Section 108 Loan). The proceeds of the loan were then loaned to the EDA to be used for the Arden-Guthrie Focused Neighborhood Revitalization Project, which affects ap proximately 20 acres of land located at the northwest corner of Arden Avenue and 20th Street (Arden -Guthrie Site). Once the Arden- Guthrie Site is sold to a third -party, the proceeds of the sale are required to be paid to the City. All debt service payments on the Section 108 Loan are the responsibility of the City. The source of funds available for the repayment of the Loan is the CDBG Program Revenue of the City. In the event of default, the City’s annual CDBG allocation may be reduced by the amount necessary to satisfy the annual debt service requirement.

Year Ending
June 30, Principal Interest Total
2024 35,000$ 1,334,981$ 1,369,981$
2025 35,000 1,332,619 1,367,619
2026 40,000 1,330,256 1,370,256
2027 105,000 1,326,375 1,431,375
2028 180,000 1,317,938 1,497,938
2029-2033 1,470,000 6,374,700 7,844,700
2034-2038 3,505,000 587,650 4,092,650
2039-2043 6,745,000 3,982,163 10,727,163
2044-2047 7,670,000 1,067,512 8,737,512
Total 19,785,000$ 18,654,194$ 38,439,194$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 70 -
Note 7 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

HUD Section 108 – Arden Guthrie Focused Neighborhood Revitalization Project Note Payable (Direct Borrowing) (Continued)

Interest payments are due semiannually on February 1 and August 1 at a rate of 2.7% per annum and continue through August 1, 2026. Principal payments are due annually on August 1, and continue through August 1, 2026.

The annual debt service requirements for the HUD Section 108 – Arden Guthrie note payable outstanding at June 30, 2023 are as follows:

Tow Services Note Payable (Direct Borrowing)

On September 16, 2020, the City entered into a Settlement Agreement related to litigation concerning the City’s tow rotation list. The agreement stipulated a total City obligation of $1,300,000, with $700,000 due within 30 days of the settlement and annual installments of $200,000 to be paid each July 1 st thereafter via a zero interest note payable.

The annual debt service requirements for the Tow Services note payable outstanding at June 30, 202 3 are as follows:

Year Ending
June 30, Principal Interest Total
2024 654,000$ 128,760$ 782,760$
2 025 654,000 91,612 745,612
2026 634,000 54,778 688,778
2027 634,000 18,291 652,291
Total 2,576,000$ 293,441$ 2,869,441$
Year Ending
June 30, Principal Interest Total
2024 200,000$ -$ 200,000$
T
otal 200,000$ -$ 200,000$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 71 -
Note 7 – Long-Term Liabilities (Continued)

A. Business-Type Activities

The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2023:

2016 San Bernardino Water Revenue Bonds

The Water Revenue Bonds, Series 2016 (City of San Bernardino Municipal Water Department Water Facilities Project) (the “2016 Water Bonds”) were issued in the amount of $48,225,000 by the California Municipal Finance Authority (CMFA) on November 3, 2016. T he bonds were issued to finance the acquisition and construction of certain water system capital improvements of the Water Department, the refund outstanding obligations of the Water Department, to purchase a Municipal Bond Debt Service Revenue Insurance Policy in satisfaction of the Reserve Requirement, and to pay the costs of issuance of the 2016 Water Bonds. The repayment of the 2016 Water Bonds is from a pledge of net revenues of the Water Fund. The principal amount due is reported net of the unamortized premium of $4,611,557.

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

Bonds payable:
2016 Water Revenue Bonds 44,070,000$ -$ (950,000)$ 43,120,000$ 995,000$ 42,125,000$ Bond premium 4,809,195 - (197,638) 4,611,557 - 4,611,557 2016 Sewer Revenue Bonds 31,245,000 - (735,000) 30,510,000 770,000 29,740,000 Bond premium 156,344 - (6,403) 149,941 - 149,941 Total bonds payable 80,280,539 - (1,889,041) 78,391,498 1,765,000 76,626,498 Lease liabilities (Note 8)
Lease liabilities 107,614 - (47,736) 59,878 47,884 11,994 Total lease liabilities 107,614 - (47,736) 59,878 47,884 11,994 Subscription liabilities (Note 9)
Subscription liabilities 148,632 98,074 (123,728) 122,978 122,978 - Total subscription liabilities 148,632 98,074 (123,728) 122,978 122,978 - Total 80,536,785$ 98,074$ (2,060,505)$ 78,574,354$ 1,935,862$ 76,638,492$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 72 -
Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2016 San Bernardino Water Revenue Bonds (Continued)

The 2016 Water Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through August 20 46. Interest is payable semi -annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in e quity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2023, $43,120,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year.

The annual debt service requirements for the 2016 Water Revenue Bonds outstanding at June 30, 2023 are as follows:

Pledged Revenues

The City has pledged future net revenues from the Water Fund for the repayment of all of the Revenue Bonds of the Water Fund. For the year ended June 30, 2023, total principal and interest paid was $2,994,138, and net revenues were $ 7,897,015. The total p rincipal and interest remaining to be paid on the Water Utility Revenue Bonds are $71,793,285.

Debt Covenants

The Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the bonds is 110% of net system revenues, which are pledged for repayment of revenue bonds. The DSC ratio is the measure of the Water Fund’s ability to have sufficient resources to pay its debt service. The Water Fund has met its DSC for the fiscal year en ded June 30, 2023, at each measurement.

Year Ending
June 30, Principal Interest Total
2024 995,000$ 1,995,513$ 2,990,513$
2025 1,050,000 1,944,388 2,994,388
2026 1,100,000 1,890,638 2,990,638
2027 1,160,000 1,834,138 2,994,138
2028 1,215,000 1,774,763 2,989,763
2029-2033 7,000,000 7,960,688 14,960,688
2034-2038 8,640,000 6,314,694 14,954,694
2039-2043 11,035,000 3,918,188 14,953,188
2044-2048 10,925,000 1,040,275 11,965,275
Total 43,120,000$ 28,673,285$ 71,793,285$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 73 -
Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2016 San Bernardino Sewer Revenue Bonds

The Sewer Revenue Bonds, Series 2016 (City of San Bernardino Sewer Facilities Project) (the “2016 Sewer Bonds”) were issued in the amount of $34,445,000 by the California Municipal Finance Authority (CMFA) on December 8, 2016. The bonds were issued to finance the acquisition and construction of additional capital improvements to the sewer utility. The repayment of the 2016 Sewer Bonds is from a pledge of net revenues of the Sewer Fund. The principal amount due is reported net of the unamortized premium o f $149,941.

The 2016 Sewer Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through April 2046. Interest is payable semi -annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2023, $30,510,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year.

The annual debt service requirements for the 2016 Sewer Revenue Bonds outstanding at June 30, 2023 are as follows:

Pledged Revenues

The City has pledged future net revenues from the Sewer Fund for the repayment of all of the Revenue Bonds of the Sewer Fund. For the year ended June 30, 2023, total principal and interest paid was $1,966,900, and net revenues were $ 10,559,263. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $47,195,438.

Year Ending
June 30, Principal Interest Total
2024 770,000$ 1,194,275$ 1,964,275$
2025 810,000 1,154,775 1,964,775
2026 855,000 1,113,150 1,968,150
2027 895,000 1,069,400 1,964,400
2028 935,000 1,033,000 1,968,000
2029-2033 5,160,000 4,673,575 9,833,575
2034-2038 6,220,000 3,612,963 9,832,963
2039-2043 7,595,000 2,238,100 9,833,100
2044-2048 7,270,000 596,200 7,866,200
Total 30,510,000$ 16,685,438$ 47,195,438$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 74 -
Note 7 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2016 San Bernardino Sewer Revenue Bonds (Continued)

Debt Covenants

The Sewer Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the bonds is 110% of net system revenues, which are pledged for repayment of revenue bonds. The DSC ratio i s the measure of the Water Fund’s ability to have sufficient resources to pay its debt service. The Water Fund has met its DSC for the fiscal year ended June 30, 2023, at each measurement.

C. Fiduciary Fund Financial Statements

The following is a summary of changes in long-term liabilities for the fiduciary fund financial statements for the year ended June 30, 2023:

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

Tax allocation bonds:

Series 2005A, Refunding 10,170,000$ -$ (2,525,000)$ 7,645,000$ 2,670,000$ 4,975,000$ Series 2005B, Refunding 3,595,000 - (870,000) 2,725,000 920,000 1,805,000 Series 2016A, Refunding 11,840,000 - (2,310,000) 9,530,000 2,425,000 7,105,000 Series 2016B, Refunding 4,830,000 - (815,000) 4,015,000 835,000 3,180,000 Series 2021A, Refunding 3,620,000 - (440,000) 3,180,000 440,000 2,740,000 Unamortized discount (25,270) - 4,594 (20,676) - (20,676) Unamortized premium 2,673,069 - (323,779) 2,349,290 - 2,349,290 Total tax allocation bonds 36,702,799 - (7,279,185) 29,423,614 7,290,000 22,133,614 Mortgage revenue bonds:

Highland Senior Housing 1995 510,000 - (115,000) 395,000 120,000 275,000 Casa Ramona Senior Housing 1995 445,000 - (100,000) 345,000 105,000 240,000 Total mortgage revenue bonds 955,000 - (215,000) 740,000 225,000 515,000 Certificates of participation:
1999 Certificates of Participation 1,735,000 - (545,000) 1,190,000 580,000 610,000 Total certificates of participation 1,735,000 - (545,000) 1,190,000 580,000 610,000 Total 39,392,799$ -$ (8,039,185)$ 31,353,614$ 8,095,000$ 23,258,614$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 75 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2005A

In September 2005, the San Bernardino Joint Powers Financing Authority issued $55,800,000 in tax allocation refunding bonds to current refund $55,800,000 of the outstanding 1995A Tax Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005B (see following section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be defeased and the liability has been removed from the financial statements. The Series 2005A bonds consist of serial bonds with varying interest rates from 5.15% to 5.75% per annum. Interest is payable semi -annually on April 1 and October 1. Serial bonds mature annually on October 1 through October 1, 2025.

The Series 2005A bonds are not subject to optional redemption. The former EDA agreed to pay the Authority principal and interest payments solely from the EDA's tax revenues from the Central City North, State College Projec t No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown, and Tri -City Redevelopment Project Areas.

A reserve account is required to be maintained in the amount of $ 3,032,825. The balance held in the reserve account as of June 30, 2023 was $3,207,306. At June 30, 2023, $7,645,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The reacquisition price exceeded the net carrying amount of the old debt by $1,116,000. This amount is being netted against the new debt and being amortized over the life of the new debt. The advance refunding resulted in an increase in debt service payments over the next 20 years of $18,089 and resulted in an economic gain of $1,940,000.

The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2005A outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 2,670,000$ 362,825$ 3,032,825$
2025 2,420,000 216,488 2,636,488$
2026 2,555,000 73,456 2,628,456$
Total 7,645,000$ 652,769$ 8,297,769$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 76 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Revenue Refunding Bonds, Series 2005B

In September 2005, the San Bernardino Joint Powers Financing Authority issued $21,105,000 in tax allocation refunding bonds to current refund $21,105,000 of the outstanding 1995A Tax Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005A (see preceding section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be defeased and the liability has been removed from the financial statements.

The Series 2005B bonds consist of serial bonds with varying interest rates from 5.15% to 5.75% per annum.

Interest is payable semi -annually on April 1 and October 1. Serial bonds mature annually on October 1 through October 1, 2025.

The Series 2005B bonds are not subject to optional redemption. The former EDA agreed to pay the Authority principal and interest payments solely from the EDA's tax revenues from the Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown and Tri -City Redevelopment Project Areas.

A reserve account is required to be maintained in the amount of $1, 050,238. The balance held in the reserve account as of June 30, 2023 was $1,110,483. At June 30, 2023, $2,725,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The reacquisition price exceeded the net carrying amount of the old debt by $422,100. This amount is being netted against the new debt and being amortized over the life of the new debt.

The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2005B outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 920,000$ 130,238$ 1,050,238$
2025 875,000 78,631 953,631
2026 930,000 26,738 956,738
Total 2,725,000$ 235,607$ 2,960,607$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 77 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2016A

In March 2016, the Agency issued $27,850,000 in tax -exempt tax allocation refunding bonds in order to refund the outstanding balances, as of April 1, 2016, of the CMB Infrastructure Investment Group Notes Payable, the Tax Allocation Bonds, Series 2002A, and the Tax Allocation Refunding Bonds, Series 2002, to purchase a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the reserve account, and to pay certain costs of issuance.

The Series 2016A bonds consist of $24,925,000 in serial bonds, which mature on December 1 each year from 2017 through 2025 in amounts ranging from $2,310,000 to $3,900,000, and $1,945,000 of term bonds maturing on December 1, 2031. Interest is paid semi- annually on June 1 and December 1 at interest rates ranging from 2.0% to 5.0% per annum.

The Series 2016A bonds are payable from, and secured by, the tax revenues deposited in the Redevelopment Property Tax Trust Fund. The aggregate debt service payments of the new debt are $9,381,967 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $10,028,205.

A reserve account is required to be maintained in th e amount of $ 2,900,000. As of June 30, 2023 , the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement. At June 30, 2023, $9,530,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Tax Allocation Refunding Bonds, Series 2016A outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 2,425,000$ 415,875$ 2 ,840,875$
2025 2,610,000 290,000 2,900,000
2026 2,550,000 161,000 2,711,000
2027 995,000 72,375 1,067,375
2028 135,000 44,125 179,125
2029-2032 815,000 99,375 914,375
Total 9,530,000$ 1,082,750$ 10,612,750$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 78 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2016B

In March 2016, the Agency issued $16,030,000 in federally taxable tax allocation refunding bonds in order to refund the outstanding balances, as of April 1, 2016, of the Tax Allocation Bonds, Series 1998B and T ax Allocation Bonds, Taxable Series 2006, to purchase a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the reserve account, and to pay certain costs of issuance.

The Series 2016B bonds consist of $12,015,000 in serial bonds, which ma ture on December 1 each year from 2017 through 2022 in amounts ranging from $815,000 to $2,780,000, and $1,700,000 and $2,315,000 of term bonds maturing on December 1, 2024 and December 1, 2027, respectively. Interest is paid semi- annually on June 1 and December 1 at interest rates ranging from 1.75% to 4.05% per annum.

The Series 2016B bonds are payable from, and secured by, the tax revenues deposited in the Redevelopment Property Tax Trust Fund. The aggregate debt service payments of the new debt are $5,514,666 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $5,072,654.

A reserve account is required to be maintained in the amount of $ 972,738. As of June 30, 2023, the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement.

At June 30, 2022, $4,015,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Tax Allocation Bonds, Series 2016B outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 835,000$ 137,488$ 972,488$
2025 865,000 107,738 972,738
2026 790,000 76,800 866,800
2027 805,000 44,900 849,900
2028 720,000 14,400 734,400
Total 4,015,000$ 381,326$ 4,396,326$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 79 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2021A

On July 8 , 2021, the Agency issued $3,715,000 in federally taxable tax allocation refunding bonds (the “2021A Tax Allocation Bonds”) in order to refund the outstanding balances of the 2010A Tax Allocation Bonds, to purchase a Municipal Bond Debt Service Reserve Insurance Policy for deposit in the reserve account, and to pay certain costs of issuance.

The Series 20 21A bonds consist of $ 3,715,00 in serial bonds, which mature on October 1 each year from 2021 through 2029 in amounts ranging from $ 95,000 to $475,000. Interest is paid semi -annually on April 1 and October 1 at interest rates ranging from 0.47% to 2.07% per annum.

The Series 2021A bonds are payable from, and secured by, the Tax Revenues which include tax increment revenues from the Northwest Project Area and, to the extent additional amounts are needed and are available, amounts deposited in the Redevelopment Property Tax Trust Fund. The aggregate debt service payments of the new debt are $1,522,634 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and new debt service payments) of approximately $1,383,273.

A reserve account is required to be maintained in the amount of $ 484,245. As of June 30, 2023, the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement.

At June 30, 2022, $3,180,000 of the bonds were outstanding. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Tax Allocation Bonds, Series 2021A outstanding at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 440,000$ 44,245$ 484,245$
2 025 440,000 40,791 480,791
2026 445,000 36,030 481,030
2027 450,000 30,031 480,031
2028 460,000 22,813 482,813
2029-2030 945,000 19,261 964,261
Total 3,180,000$ 193,171$ 3,373,171$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 80 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Highland Senior Housing 1995 Mortgage Revenue Bonds

The Multifamily Housing Revenue Bonds 1995 Series (Highland Lutheran Senior Housing Project) were issued on June 29, 1995 for $1,710,000. The mortgage revenue bonds are special obligations payable solely from payments made on and secured by a pledge of the acquired mortgage loans and certain reserve funds and other monies in connection therewith, all pledged under the resolution authorizing the issuance of the bonds. The Bonds shall mature on July 1, 2025 and shall bear interest at the rate of 7.625% per annum.

Interest is payable semi-annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bonds (Highland Lutheran Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2023 are $395,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Highland Senior Housing Mortgage Revenue bonds outstanding at June 30, 2023 are as follows:

Casa Ramona Senior Housing 1995 Mortgage Revenue Bonds

The Multifamily Housing Revenue Bonds 1995 Series (Casa Ramona Senior Housing Complex Project) were issued on June 29, 1995 for $1,500,000. The mortgage revenue bonds are special obligations payable solely from payments made on and secured by a pledge of the acquired mortgage loans and certain reserve funds and other monies in connection therewith, all pledged under the resolution authorizing the issuance of the bonds. The Bonds shall mature on July 1, 2025 and shall bear interest at the rate of 7.875% per annum. Interest is payable semi -annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bond s (Casa Ramona Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2023 are $345,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

Year Ending
June 30, Principal Interest Total
2024 120,000$ 25,544$ 145,544$
2025 130,000 16,013 146,013
2026 145,000 5,528 150,528
Total 395,000$ 47,085$ 442,085$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 81 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

Casa Ramona Senior Housing 1995 Mortgage Revenue Bonds (Continued)

The annual debt service requirements for the Casa Ramona Senior Housing 1995 Mortgage Revenue bonds outstanding at June 30, 2023 are as follows:

1999 Certificates of Participation

On September 23, 1999, the San Bernardino Joint Powers Financing Authority issued $15,480,000 of Refunding Certificates of Participation (Certificates). The Certificates were issued to retire $2,325,000 outstanding of Refunding Certificates of Participation (South Valle Public Improvement Project) dated April 1, 1987, and $5,910,000 outstanding of Certificates of Participation (1995 Police Station Financing Project) dated April 1, 1995, and to provide funds for capital improvements (201 Building Projects).

The Certificates mature on September 1 of each year through September 1, 2024, in amounts ranging from $420,000 to $1,080,000. The interest represented by the Certificates is calculated on the basis of a 360- day year of twelve 30 -day months, from September 1, 1999, at the rates per annum set forth in the bond documents and will represent the sum of the portions of the lease payments designated as interest coming due during the six months preceding each interest payment date. The interest rates will range approximately from 3.70% to 5.50% per annum.

The Certificates maturing on September 1, 2024, are subject to mandatory sinking fund redemption in part on September 1, 2021, from the principal components of the lease payments required to be paid by the City pursuant to the Lease Agreements with respect to each such redemption date, at a redemption price equal to the principal amount thereof to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium, in accordance with the terms identified in the bond documents.

In the event
of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

Year Ending
June 30, Principal Interest Total
2024 105,000$ 23,034$ 128,034$
2025 115,000 14,372 129,372
2026 125,000 4,922 129,922
Total 345,000$ 42,328$ 387,328$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 82 -
Note 7 – Long-Term Liabilities (Continued)

C. Fiduciary Fund Financial Statements (Continued)

1999 Certificates of Participation (Continued)

The Certificates represent direct, undivided fractional interest in lease payments to be made by the City under the lease agreements. A reserve fund is required to be maintained in an amount equal to the maximum annual debt service. At June 30, 2023, the reserve requirement was $629,500 and the amount held in the reserve account was $ 668,644. The total outstanding balance of the Certificates at June 30, 2023, was $1,190,000, which is the portion of the Certificates that represent the South Valle Refunding and 201 Building Projects. Repayments of these portions of the Certificates are funded from the Redevelopment Property Tax Trust Fund, as a result of the dissolution of the redevelopment agency. The Certificates that represent the Police Station portion, were defeased during the fiscal year ended June 30, 2017.

The annual debt service requirements for the 1999 Certificates of Participation outstanding at June 30, 2023 are as follows:

Note 8 – Leases

A. Lease Liabilities and Right to Use Leased Assets

Governmental Activities

On July 1, 2021, the City entered into a 36- month lease as Lessee for the use of office space in downtown (Vanir Tower). An initial lease liability was recorded in the amount of $1,528,017. As of June 30, 2023 , the value of the lease liability was $ 528,552. The City is required to make monthly fixed payments of $41,548.

The lease has an interest rate of 0.6450%. The value of the right to use asset as of June 30, 2023 of $1,528,017 with accumulated amortization of $ 1,018,678 is included with Buildings and I mprovements in the Lease Class activities table found below.

On July 1, 2021, the City entered into a 24- month lease as Lessee for the use of Inghram Library Branch.

An initial lease liability was recorded in the amount of $61,406. During the current year, the lease was extended for an additional 72 months, resulting in an additional lease liability of $211,961 being recognized during the year. As of June 30, 2023 , the value of the lease liability was $ 211,961. The City is required to make monthly fixed payments of $2,569. The lease has an interest rate of 1.4150%. The value of the right to use asset as of June 30, 2023 of $ 273,367 with accumulated amortization of $ 61,431 is included with Buildings and Improvements on the Lease Class activities table found below. The City has 1 extension option for 12 months.

Year Ending
June 30, Principal Interest Total
2024 580,000$ 49,500$ 6 29,500$
2025 610,000 16,775 626,775
Total 1,190,000$ 66,275$ 1,256,275$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 83 -
Note 8 – Leases (Continued)

A. Lease Liabilities and Right to Use Leased Assets (Continued)

Governmental Activities (Continued)

On July 1, 2021, the City entered into a 35- month lease as Lessee for the use of modular buildings at the Animal Services department. An initial lease liability was recorded in the amount of $95,400. As of June 30, 2023, the value of the lease liability was $ 31,988. The City is required to make monthly fixed payments of $2,675. The lease has an interest rate of 0.6450%. The value of the right to use asset as of June 30, 2022 of $136,180 with accumulated amortization of $ 92,587 is included with Buildings on the Lease Class activities table found below.

On August 5, 2022, the City entered into a 60 -month lease as Lessee for the use of City-wide postage machines. An initial lease liability was recorded in the amount of $25,066. As of June 30, 2023, the value of the lease liability was $20,189. The City i s required to make quarterly fixed payments of $1,339. The lease has an interest rate of 2.8360%. The value of the right to use asset as of June 30, 2023 of $25,066 with accumulated amortization of $4,5 40 is included with Equipment on the Lease Class activities table found below.

Throughout the fiscal year, the City entered into forty -five (45) leases as lessee for the use of vehicles with lease terms ranging from 13 months to 60 months. The total initial lease liability recorded was $1,514,174, with individual amounts ranging from $ 13,840 to $69,868. As of June 30, 2023, the total value of the lease liabilities was $ 1,405,178. The City is required to make monthly fixed payments i n amounts ranging from $411 to $1,488 per month. The leases have interest rates ranging from 6.96% to 8.01%. The total value of the right to use assets as of June 30, 2023 of $1,687,680 with total accumulated amortization of $150,800 is included with leased machinery and equipment on the lease class activities table found below.

Right to use leased assets include the following at June 30, 2023:

Lease Accumulated
Asset Class Asset Value Amortization
Buildings and improvements 1,937,564$ 1,172,696$
Machinery, vehicles, and equipment 1,712,746 155,340 Total 3,650,310$ 1,328,036$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 84 -
Note 8 – Leases (Continued)

A. Lease Liabilities and Right to Use Leased Assets (Continued)

Governmental Activities (Continued)

Future principal and interest requirements to maturity for the lease liabilities are as follows:

Business-Type Activities

On July 1, 2021 the Water fund entered into a 39 -month lease as Lessee for the use of a modular office building. An initial lease liability was recorded in the amount of $155,243. As of June 30, 2023 , the value of the lease liability was $ 59,878. The Water fund is required to make monthly fixed payments of $4,000. The lease has an interest rate of 0.3080%. The value of the right to use asset as of June 30, 2023 of $155,243 with accumulated depreciation of $ 95,534 is included with Buildings and Improvements on the Lease Class activities table found below. The Water fund has 3 extension options, each for 12 months.

Right to use leased assets include the following at June 30, 2023:

Year Ending
June 30, Principal Interest Total
2024 880,562$ 99,783$ 980,345$
2025 312,476 77,521 389,997
2026 334,221 55,775 389,996
2027 357,612 32,384 389,996
2028 271,636 8,830 280,466
2029 41,361 312 41,673
Total 2,197,868$ 274,605$ 2,472,473$
Governmental Activities
Lease Accumulated
Asset Class Asset Value Amortization
Buildings and improvements 155,243$ 95,534$
Total 155,243$ 95,534$
Business-type Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 85 -
Note 8 – Leases (Continued)

A. Lease Liabilities and Right to Use Leased Assets (Continued)

Business-Type Activities (Continued)

Future principal and interest requirements to maturity for the lease liabilities are as follows:

B. Lease Receivables and Deferred Inflows of Resources

Governmental Activities

The City leases land to various companies for installation of cellular towers and fiberoptic communications.

The terms range from 40 months to 205 months as of the contract commencement date , with fixed monthly payments ranging from $875 to $3,233. Some leases have extension options ranging from 60 months to 180 months. An initial lease receivable was recorded in the amount of $ 4,331,086. As of June 30, 2023, the value of the lease receivable was $ 3,544,453 and the value of the deferred inflow of resources was $3,415,182. The City recognized $457,952 in lease revenue during the year.

On September 1, 2021, the City entered into a 60 -month lease as Lessor for the use of office space. An initial lease receivable was recorded in the amount of $519,957. As of June 30, 2023, the value of the lease receivable was $341,001. The lessee is required to make monthly fixed payments of $8,364. The lease has an interest rate of 0.9470%. The value of the deferred inflow of resources as of June 30, 2023 was $329,306, and the City recognized lease revenue of $103,991 during the fiscal year. The lessee has 2 extension options, each for 24 months.

Year Ending
June 30, Principal Interest Total
2024 47,884$ 116$ 48,000$
2025 11,994 6 12,000
Total 59,878$ 122$ 60,000$
Business-type Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 8 – Leases (Continued)

B. Lease Receivables and Deferred Inflows of Resources (Continued)

Governmental Activities (Continued)

The principal and interest payments that are expected to maturity are as follows:

Business-Type Activities

The Water fund leases land to various companies for installation of cellular towers and fiberoptic communications. The terms range from 23 months to 268 months as of the contract commencement date.

The Water fund also leases land to Little League International to operate a sports complex. The term is 231 months as of the contract commencement date. Some leases have extension options ranging from 6 months to 20 years. An initial lease receivable was recorded in the amount of $4,191,785. As of June 30, 2023 , the value of the lease receivable was $ 3,680,363 and the value of the deferred inflow of resources was $3,555,374. The Water fund recognized $3 16,024 in lease revenue during the year. The amount of revenues recognized during the fiscal year for variable and other payments not previously included in the measurement of the lease receivable was $267,668.

Year Ending
June 30, Principal Interest Total
2024 524,652$ 24,267$ 548,919$
2 025 524,771 20,683 545,454
2026 535,427 17,098 552,525
2027 448,957 13,729 462,686
2028 357,107 11,140 368,247
2029-2033 1,096,867 29,354 1,126,221
2034-2038 394,778 3,887 398,665
2039 2,895 1 2,896
Total 3,885,454$ 120,159$ 4,005,613$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 8 – Leases (Continued)

B. Lease Receivables and Deferred Inflows of Resources (Continued)

Business-Type Activities (Continued)

The principal and interest payments that are expected to maturity are as follows:

Note 9 – Subscription- Based Information Technology Arrangements

A. Governmental Activities

During the current year, the City entered into various SBITAs as the subscriber for the use of software as a service. The total initial subscription liability was recorded in the amount of $ 567,838. The terms of these subscriptions range from 24 to 60 months. As of June 30, 2023, the total value of the subscription liabilities was $389,904. The City is required to make annual fixed payments ranging from $7,730 to $121,666. The subscriptions have interest rates ranging from 2.44% to 3.69%. The total value of the right to use assets, and related accumulated amortization on right to use subscription assets , was $570,838 and $149,093, as of June 30, 2023, respectively.

Future principal and interest requirements to maturity for the subscription liabilities are as follows:

Year Ending
June 30, Principal Interest Total
2024 216,671$ 55,978$ 2 72,649$
2025 211,681 52,942 264,623
2026 220,658 49,755 270,413
2027 231,942 46,412 278,354
2028 243,636 42,896 286,532
2029-2033 1,382,241 155,727 1,537,968
2034-2038 750,406 64,000 814,406
2039-2043 415,398 16,258 431,656
2044 7,730 97 7,827
Total 3,680,363$ 484,065$ 4,164,428$
Business-type Activities
Year Ending
June 30, Principal Interest Total
2024 1 87,941$ 13,344$ 201,285$
2025 187,132 7,038 194,170
2026 7,312 418 7,730
2027 7,519 212 7,731
Total 389,904$ 21,012$ 410,916$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 88 -
Note 9 – Subscription- Based Information Technology Arrangements (Continued)

B. Business-Type Activities

During the current year, the Water fund entered into various SBITAs as the subscriber for the use of software as a service. The total initial subscription liability was recorded in the amount of $ 240,706. The terms of these subscriptions range from 21 to 33 months. As of June 30 , 2023, the total value of the subscription liabilities was $ 122,978. The Water fund is required to make annual fixed payments ranging from $ 49,844 to $ 76,508. The subscriptions have interest rates ranging from 2. 35% to 3. 35%. The total value of the right to use assets, and related accumulated amortization on right to use subscription assets, was $246,706 and $85,802, as of June 30, 2023, respectively.

Future principal and interest requirements to maturity for the subscription liabilities are as follows:

Note 10 – Special Assessment Debt with No City Commitment

The City authorized the formation of the various Community Facilities Districts (“CFDs”) for the purpose of issuing bonds under improvement acts of the State of California to finance eligible public facilities to serve commercial, industrial, residential, and/or mixed -use developments. Bonds issued by the CFDs are secured by valid assessment liens upon certain lands within each District and are not direct liabilities of the City and, accordingly, are not included in the accompanying basic financial statements. The City has no obligation beyond the balances in the designated custodial funds for any delinquent assessment district bond payments. If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City. Neither the faith, credit, nor taxing power of the City is pledged to the payment of the bonds. The City acts solely as an agent for those paying assessments and for the bondholders.

In August 2022, the City issued for and on behalf of the Community Facilities District No. 2020- 1 (Rancho Palma) $3,505,000 aggregate principal amount of 2022 Sp ecial Tax Bonds to finance the finance the construction and acquisition of public facilities within the District. The Bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from proceeds of annual special tax to be le vied on the property within the District. The bonds consist of serial bonds maturing from 2023 to 2032 in annual installments of $40,000 to $90,000 and term bonds in the years 2037, 2042, and 2052 payable in the amounts of $495,000, $600,000, and $1,690,000, respectively. The interest rate on the bonds is 4.00%. The outstanding balance at June 30, 2023, was $3,505,000.

Year Ending
June 30, Principal Interest Total
2024 122,978$ 3,374$ 126,352$
Total 122,978$ 3,374$ 126,352$
Business-type Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 10 – Special Assessment Debt with No City Commitment (Continued)

In November 2022, the City issued for and on behalf of the Community Facilities District No. 2021- 1 (Ferree Street) $2,775,000 aggregate principal amount of 2022 Special Tax Bonds to finance the finance the construction and acquisition of public facilities within the District. The Bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from proceeds of annual special tax to be levied on the property within the District. The bonds consist of serial bonds maturing from 2023 to 2032 in annual installments of $45,000 to $75,000 and term bonds in the years 2037, 2042, 2047, and 2052 payable in the amounts of $375,000, $475,000, $595,000, and $770,000, respectively. The interest rate on the bonds is 5.00%.

The outstanding balance at June 30, 2023, was $2,775,000.

In May 2023, the City issued for and on behalf of the Community Facilities District No. 2018- 2 (Verdemont Ranch) $2,945,000 aggregate principal amount of 2023 Special Tax Bonds to finance the finance the construction and acquisition of public facilities within the District. The Bonds were issued pursuant to the Mello-Roos Community Facilities Act of 1982 and are payable from proceeds of annual special tax to be levied on the property within the District. The bonds consist of serial bonds maturing from 2023 to 2033 in annual installments of $10,000 to $60,000 and term bonds in the years 2039, 2043, 2048, and 2053 payable in the amounts of $465,000, $420,000, $700,000, and $935,000, respectively. The interest rate on the bonds is 5.00%.

The outstanding balance at June 30, 2023, was $2,945,000.

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

Original
Amount
Outstanding
Balance
June 30, 2023
CFD No. 2020-1 (Rancho Palma) 3,505,000$ 3,505,000$ CFD No. 2021-1 (Ferree Street) 2,775,000 2,775,000 CFD No. 2018-2 (Verdemont Ranch) 2,945,000 2,945,000

Note 11 – Compensated Absences

The City records a liability for unused vacation and similar compensatory leave balances, as the employees’ entitlement to these balances are attributable to services already rendered and it is probabl e that virtually all of these balances will be liquidated by either paid time-off or payments upon termination or retirement.

A. Primary Government

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

Balance Balance Due within Due in More
July 1, 2022 A dditions Deletions June 30, 2023 One Year Than One Year Governmental activities 6,985,580$ 1 0,104,108$ (8,392,036)$ 8,697,652$ 2,609,296$ 6,088,356$ Business-type activities 1,966,027 2,594,537 (2,629,024) 1,931,540 1,541,407 390,133 Total 8,951,607$ 12,698,645$ (11,021,060)$ 10,629,192$ 4,150,703$ 6,478,489$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 11 – Compensated Absences (Continued)

Compensated absences of the primary government are obligations of the following funds:

Note 12 – Claims and Judgments Payable

The City of San Bernardino is self -insured for its liability, unemployment , and long-term disability programs.

The accrued liability for estimated claims represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred but not yet reported and estimates of loss adjustment expense.

For liability claims, the City is self -insured for the first $ 5 million. In addition, the City has obtained excess liability coverage using a tiered system with four carriers totaling $35 million per occurrence.

The City is a member of the Public Risk Innovation, Solutions, and Management (PRISM), formerly known as CSAC Excess Insurance Authority for its workers’ compensation claims. For these claims, the City is self - insured for the first $1 million. Excess cover age is currently maintained by PRISM for workers’ compensation for coverage in excess of the City’s self-insured retention of $1 million, with statutory limits of $50 million.

Settled claims for general liability and workers’ compensation have not exceeded insurance coverage during the past three years.

Governmental activities
Governmental Funds 8,368,892$
Workers Compensation 1,446
Liability Insurance 1,446
Motorpool 70,717
Information Systems 255,151
Total - Governmental activities 8,697,652$
Business-type activities
Water Fund 1,338,238$
Sewer Fund 585,652
Integrated Waste Fund 7,650
Total - Business-type activities 1,931,540$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 12 – Claims and Judgments Payable (Continued)

A. Governmental Activities

Changes in the general liability claims liability for the governmental activities for the past three fiscal years are as follows:

Changes in the workers’ compensation claims liability for the governmental activities for the past three fiscal years are as follows:

B. Business-Type Activities

Changes in the workers’ compensation claims liability for the business -type activities for the past three fiscal years are as follows:

The City maintains third party insurance coverage for general liability claims in business-type activities.

Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
2020-2021 9 ,863,238$ 8,200,753$ (5,235,807)$ 12,828,184$ 2021-2022 12,828,184 12,858,134 (7,584,285) 18,102,033 2022-2023 18,102,033 29,399,002 (17,166,392) 30,334,643 Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
2020-2021 2 1,920,373$ (839,373)$ (2,547,888)$ 18,533,112$ 2021-2022 18,533,112 4,381,986 (3,554,609) 19,360,489 2022-2023 19,360,489 5,801,004 (4,817,371) 20,344,122 Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
2020-2021 1 ,778,391$ 813,388$ -$ 2,591,779$ 2021-2022 2,591,779 2,350,000 - 4,941,779 2022-2023 4,941,779 3,413,898 - 8,355,677 City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 13 – Pension Plans

A. Summary

Net Pension Liability

Net Pension Liability is reported in the accompanying statements of net position as follows:

Deferred Outflows of Resources

Deferred Outflows of Resources are reported in the accompanying statements of net position as follows:

Deferred Inflows of Resources

Deferred Inflows of Resources are reported in the accompanying statements of net position as follows:

Net Pension
Liability
CalPERS Miscellaneous Plan - City 194,838,421$
CalPERS Safety Plan - City 324,795,485
Subtotal - City 519,633,906
CalPERS Miscellaneous Plan - Successor Agency 7,936,290 Total 527,570,196$
Differences Between Differences Between P ension Contributions Changes of Expected and Expected and Actual Made after the Assumptions Actual Experience Investment Earnings Measurement Date Total CalPERS Miscellaneous Plan - City 9,759,594$ -$ 22,710,166$ 20,976,002$ 53,445,762$ CalPERS Safety Plan - City 17,682,375 619,075 29,135,393 30,405,142 77,841,985 Subtotal - City 27,441,969 619,075 51,845,559 51,381,144 131,287,747 CalPERS Miscellaneous Plan - Successor Agency 813,239 52,633 1,453,718 589,515 2,909,105 Total 28,255,208$ 671,708$ 53,299,277$ 51,970,659$ 134,196,852$ Differences Between
Differences Between Employer's Contributions Change in
E
xpected and and Proportionate Share Employer's
Actual Experience of Contributions Proportion Total
CalPERS Miscellaneous Plan - City 2,427,781$ -$ -$ 2,427,781$ CalPERS Safety Plan - City 4,457,880 - - 4,457,880 Subtotal - City 6,885,661 - - 6,885,661 CalPERS Miscellaneous Plan - Successor Agency - 3 04,294 886,011 1,190,305 Total 6,885,661$ 3 04,294$ 886,011$ 8,075,966$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 13 – Pension Plans (Continued)

A. Summary (Continued)

Pension Expense

Pension expenses are included in the accompanying financial statements as follows:

B. City Plans

Plan Description

Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent multiple -employer defined benefit plans administered by California Public Employees Retiremen t System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. Following the passage of AB340, Public Employees’ Pension Reform Act (PEPRA) by the California Legislature, employees hired on or after January 1, 2013, who were not previously enrolled in the PERS system elsewhere, or who have had a break in service of at least six months are required to be enrolled in this retirement program which provides a benefit level that is lower than the benefits provided for CalPERS employees that do not meet the PEPRA qualifications previously described. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Benefits Provided

CalPERS provides retirement and disability benefits, annual cost -of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service.

Net Pension
Expense
CalPERS Miscellaneous Plan - City 23,110,602$
CalPERS Safety Plan - City 36,059,248
Subtotal - City 59,169,850
CalPERS Miscellaneous Plan - Successor Agency (1,967,611) Total 57,202,239$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Benefits Provided (Continued)

CalPERS California Public Employees’ Pension Reform Act (PEPRA) members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final comp ensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' fulltime equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% to

2.7% of the average final 12 month s compensation. Retirement benefits for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average final 12 months compensation. Retir ement benefits for PEPRA safety employees are calculated as 2.7% of the average final 36 months compensation.

Participant is eligible for nonindustrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard nonindustrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service.

Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50% of final compensation.

An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed.

The employee must be actively employed with the City to be eligible for this benefit. An employee ’s survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic dea th benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump sum in the amount of one month's salary for each completed year of current servi ce, up to a maximum of six months ’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one -time lump sum payment of $500 will be made to the retiree ’s designated survivor(s), or to the retiree’s estate.

Benefit terms provide for annual cost -of-living adjustments to each employee’s retirement allowance.

Beginning the second calendar year after the year of retir ement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 95 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Employees Covered

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

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a c hange in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2023, the average active miscellaneous and safety employee contribution rates were 7.79% and 10.2 5% of annual pay, respectively, and the employer’s contribution rates were 1 0.69% and 19.58% of miscellaneous and safety employee annual payroll, respectively.

Contributions

For the fiscal year ended June 30, 2023, the plan’s contributions made for each Plan was as follows:

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 the Plan is measured as of June 30, 2022 , using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Miscellaneous Safety
Active employees 671 253
Transferred and terminated employees 1,096 227 Retired employees and beneficiaries 1,567 773 Total 3,334 1,253
Miscellaneous Safety Aggregate Total
Contributions - employer 20,976,002$ 30,405,142$ 51,381,144$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 96 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Actuarial Assumptions

The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Actuarial Cost Method Entry Age Normal in accordance with the requirement of GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.90%
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit Increase The lesser of c ontract COLA or 2.30% until Purchasing Power Protection Allowance Floor on
Purchasing Power applies, 2.30% thereafter

All other actuarial assumptions used in the June 30, 20 21 valuation were based on the results of an actuarial experience study for the period from 2001 to 201 9, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be found on the CalPERS website under Forms and Publications.

Discount Rate & Long-term Expected Rate of Return

In determining the long -term expected rate of return, CalPERS took into account , both short -term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all futur e years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building -block approach. Using the expected nominal returns for both short -term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as t he one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Discount Rate & Long-term Expected Rate of Return (Continued)

The table below reflects long -term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These geometric rates of return are net of administrative expenses.

Asset Class
Assumed
Asset Allocation
Real Return1.2
Global Equity – Cap-weighted 30.00% 4.54%
Global Equity – Non-Cap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
Total 100.00%

1An expected inflation of 2.30% used for this period.
2Figures are based on the 2021 Asset Liability Management study.

The discount rate used to measure the total pension liability was 6.90% for the plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculat ion is not necessary.

The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 Section.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 98 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Changes in the Net Pension Liability

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

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2021 (Valuation Date) 624,832,214$ 511,655,465$ 113,176,749$ Changes in the year:

Service cost 8,097,764 - 8,097,764 Interest on the total pension liabilities 43,069,901 - 43,069,901 Changes in assumptions 18,631,953 - 18,631,953 Differences between expected and actual experience (4,634,854) - (4,634,854) Benefit payments, including refunds of members contributions (37,353,487) ( 37,353,487) - Plan to plan resource movement - 15,206 (15,206) Contributions - employer - 18,615,559 (18,615,559) Contributions - employee - 3,687,197 (3,687,197) Net investment income - (38,496,139) 38,496,139 Administrative expenses - (318,731) 318,731 Net changes 27,811,277 (53,850,395) 81,661,672 Balance at June 30, 2022 (Measurement Date) 652,643,491$ 457,805,070$ 194,838,421$ Miscellaneous Plan
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2021 (Valuation Date) 872,859,200$ 659,532,988$ 213,326,212$ Changes in the year:

Service cost 9,379,086 - 9,379,086 Interest on the total pension liabilities 60,302,761 - 60,302,761 Changes in assumptions 29,470,625 - 29,470,625 Differences between expected and actual experience (7,429,800) - (7,429,800) Benefit payments, including refunds of members contributions (51,273,005) (51,273,005) - Plan to plan resource movement - (15,206) 15,206 Contributions - employer - 27,474,318 (27,474,318) Contributions - employee - 3,202,156 (3,202,156) Net investment income - (49,997,019) 49,997,019 Administrative expenses - (410,850) 410,850 Net changes 40,449,667 (71,019,606) 111,469,273 Balance at June 30, 2022 (Measurement Date) 913,308,867$ 588,513,382$ 324,795,485$ Safety Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

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

The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30 , 2023, the City recognized pension expense in the amounts of $ 23,110,602 and $36,059,248, for the miscellaneous and safety plans, respectively.

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5 -years straight line. All other amounts are amortized straight-line over the average expected remaining se rvice lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2021-22 measurement period is 2.1 years, which was obtained by dividing the total service years of 6,694 (the sum of rema ining service lifetimes of the active employees) by 3,241 (the total number of participants: active, inactive, and retired). The EARSL for the Safety Plan for the 2019-20 measurement period is 2. 5 years, which was obtained by dividing the total service yea rs of 3,096 (the sum of remaining service lifetimes of the active employees) by 1, 227 (the total number of participants:
active, inactive, and retired).

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan 278,772,628$ 194,838,421$ 1 25,695,602$ Safety Plan 447,881,550$ 324,795,485$ 224,407,170$ Aggregate Total 726,654,178$ 519,633,906$ 350,102,772$ Plan's Aggregate Net Pension Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 100 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 20,976,002$ -$
Difference between projected and actual
e
arning on pension plan investments 22,710,166 - Changes in assumptions 9,759,594 - Differences between expected and actual experience - (2,427,781) Total 53,445,762$ (2,427,781)$
D
eferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 30,405,142$ -$
Difference between projected and actual
earning on pension plan investments 29,135,393 - Changes in assumptions 17,682,375 -
Differences between expected and actual experience 619,075 (4,457,880) Total 77,841,985$ (4,457,880)$
D
eferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 51,381,144$ -$
Difference between projected and actual
earning on pension plan investments 51,845,559 - Differences between expected and actual experience 619,075 (6,885,661) Total 131,287,747$ (6,885,661)$
Aggregate Totals
Safety Plan
Miscellaneous Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 101 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

For the Miscellaneous Plan and Safety Plan, $ 20,976,002 and $ 30,405,142, respectively, were reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

C. Successor Agency Plan

Plan Description

The Successor Agency Plan of the City of San Bernardino is available to full time employees employed by the Successor Agency to the San Bernardino Economic Development Agency. Part -time employees must meet specific criteria for participation. The Classic Plans are closed to new entrants. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obta ined from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Benefits Provided

CalPERS provides retirement and disability benefits, annual cost -of-living adjustments, and death benefits to plan members and beneficiaries. A classic safety and miscellaneous CalPERS member becomes eligible for Service Retirement upon attainment of age 50 and 55, respectively, with at least 5 years of credited service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 12 full- time equivalent monthly pay. Retirement benefits for classic safety and miscellaneous employees are calculated as 3% and 2.7%, respectively, of the average final 12 months compensation.

Fiscal Year
Ending June 30, Miscellaneous Plan Safety Plan
2024 10,202,741$ 13,927,205$
2025 3,799,033 8,384,453
2026 1,394,729 1,716,820
2027 14,645,476 18,950,485
30,041,979$ 42,978,963$
Deferred Outflows/(Inflows) of Resources
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 102 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Benefits Provided (Continued)

Participant is eligible for non -industrial disability retirement if he becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non -industrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed.

The employee must be actively employed with the City to be eligible for this benefit. An employee ’s survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months ’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one -time lump sum payment of $500 will be made to the retiree ’s designated survivor(s), or to the retiree’s estate.

Benefit terms provide for annual cost -of-living adjustments to each employee’s retir ement allowance.

Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%.

Employees Covered

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

Successor Agency
Active employees -
Transferred and terminated employees 26
Retired employees and beneficiaries 72
T
otal 98
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 103 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost -sharing plans covered by the Miscellaneous risk pools, the Plan’s actuarially determined rate is based on the esti mated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2021 (the measurement date), the active contribution rate was 7. 81% of annual payroll for the Miscellaneous Classic Plan which was paid for by the employer. The average employer’s contribution rate was 16.17% of annual payroll for the Miscellaneous Classic Plan.

For the year ended June 30, 2023, employer contributions made for the Successor Agency Miscellaneous Cost-sharing Plan were $589,515.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plans is measured as of June 30, 2022 , and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long -term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

As of measurement date June 30, 2022, the City reported net pension liability for its proportionate shares of the net pension liability of the Successor Agency Miscellaneous Plan as follows:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Liability Position Liability/(Asset)
Balance at: 6/30/21 (Valuation date) 22,098,809$ 17,119,144$ 4,979,665$ Balance at: 6/30/22 (Measurement date) 22,234,965 14,298,675 7,936,290 Net Changes during 2021-2022 136,156 (2,820,469) 2,956,625 Increase (Decrease)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 104 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool.

(1) In determining a cost -sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2021 ). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.

(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2022 ). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2022 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2021-22).

(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date.

(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively.

(5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period.

(6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

The City’s proportionate share of the net pension liability for the Successor Agency Miscellaneous Plan as of June 30, 2021 and 2022 was as follows:

For the year ended June 30, 2023, the City recognized pension income in the amount of $1,967,611 for the Successor Agency Miscellaneous Plan.

Proportion June 30, 2021 0.26225%
Proportion June 30, 2022 0.16961%
Change - Increase (Decrease) -0.09265%
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 105 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5 -years straight line. All other amounts are amortized straight-line over the average expected remaining s ervice lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The EARSL for PERF C for the measurement date ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 5 74,665 (the sum of remaining service lifetimes of the active employees) by 1 53,587 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal t o 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

For the Successor Agency Miscellaneous Plan, $ 589,515 was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2024.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 589,515$ -$ D
ifference between projected and actual earnings on
pension plan investments 1,453,718 - Adjustment due to differences in proportions - (886,011) Changes in assumptions 813,239 - Difference between actual and expected experience 52,633 - Difference between employer's actual contributions
and proportionate share of contributions - (304,294) Total 2,909,105$ (1,190,305)$
Successor Agency Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 106 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

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

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

For the measurement period ended June 30, 20 22 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The total pension liability was based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Nor mal in accordance with the requirement of GASB Statement No. 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.90%
Mortality Rate Table

Derived using CalPERS’ Membership Data for all
Funds
Post Retirement Benefit Increase Contract COLA up to 2. 30% until Purchasing Power Protection Allowance Floor on Purchasing
Power applies

Fiscal Year
Ending June 30,
Deferred Outflows/
(Inflows) of
Resources
2024 80,881$
2025 99,076
2026 60,185
2027 889,143
1,129,285$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 107 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Discount Rate

The discount rate used to measure the total pension liability was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount r ate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate and the use of the municipal bond rate calculation is not necessary.

The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return o n pension plan investments was determined using a building -block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short -term and long -term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short -term (first 10 years) and the long -term (11-60 years) using a building block approach. Using the expected nominal returns for both short -term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

These geometric rates of return are net of administrative expenses.

1An expected inflation of 2.30% used for this period.
2Figures are based on the 2021-22 Asset Liability Management study.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 108 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s proportionate share of the net pension liability for the Successor Agency Miscellaneous Plan, calculated using the discount rate for the Successor Agency Miscellaneous Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan

At June 30, 2023 , the Successor Agency reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

Note 14 – Other Postemployment Benefits

A. City – Excluding Water Enterprise Fund and Sewer Enterprise Fund

The City administers a single employer defined benefit healthcare plan (the Plan). The Plan provides healthcare and life insurance for eligible retirees and their surviving spouses through the Cit y’s group health insurance plan. Life insurance premiums are paid 100% by retirees. The plan covers both active and retired members. Benefit provisions are established through negotiations between the City and various union bargaining groups.

However, on August 1, 2012, the City filed a Chapter 9 petition for bankruptcy protection in the United States Bankruptcy Court. A Retiree Committee was appointed by the United States Trustee to represent the interests of the retired employees.

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
10,967,317$ 7,936,290$ 5,442,508$ Plan's Aggregate Net Pension Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 109 -
Note 14 – Other Postemployment Benefits (Continued)

A. City – Excluding Water Enterprise Fund and Sewer Enterprise Fund (Continued)

On May 19, 2015, the City and the Retiree Committee reached an agreement to settle claims of retirees for lost health benefits. Pursuant to this settlement all retiree health benefits for employees hired after January 1, 2013 are eliminated. At June 30, 2017, a finite group of retirees, numbering fewer than sixteen and meeting specific criteria, continue to receive a subsidy of $116 per month with an annual increase capped at two percent per calendar year. These participants are placed in a City healthcare plan for Retirees only.

This is a closed group and its beneficiaries are a declining number, gradually being removed from the limited ongoing benefit as they either pass away or become ineligible for other potential reasons.

The settlement is part of the City’s Chapter 9 Plan of Adjustment effective June 15, 2017. As a result of this settlement, the City’s OPEB obligation of $29,753,601 has been reduced to zero as the City has eliminated post-employment benefits.

B. Water Department

Plan Description

The City Water Department (Department) provides health benefits to all qualifying retirees and their spouses in accordance with Memorandums of Understanding under various labor agreements. The Department maintains the financial activity of the plan as a trust fund, and no separate financial report is publicly available.

Employees Covered

Employees are eligible for retiree health benefits if they retire from the Department on or after age 50 with at least 10, 12, or 15 years of service, depending on bargaining unit, and are eligible for a PERS pension.

As of the June 30, 2022 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:

Active plan members 256
Inactive employees or beneficiaries currently
receiving benefits 157
Inactive plan members entitled to, but not yet
receiving benefits -
Total 413
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 110 -
Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

Contributions

The contribution requirements of plan members and the Department are established and may be amended by the Board. The required contribution is based on projected pay -as-you-go financing requirements, with an additional amount to prefund benefits as may be determined annually by the Board. The Department has established an irrevocable trust to which pre -funding contributions are made. For the fiscal year ended June 30, 2023, the Department’s contributions were $ 1,757,024, and the amount of contributions in the form of an implied subsidy were $570,719.

Net OPEB Liability

The Department’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 that was rolled forward to determine the June 30, 20 22 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.25%
Inflation 2.50%
Mortality Rate1 CalPERS 2021 Experience Study
Healthcare Trend Rate Non-Medicare – 6.8% for 202 3, decreasing to an ultimate rate of 3.6% in 2076 and later.

Medicare – 5.4% for 2022, decreasing to an ultimate
rate of 3.6% in 2076 and later.

The long-term expected rate of return on OPEB plan investments was determined using a building -block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimate s of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Assumed
Asset Allocation
Expected Real
Rate of Return
Fixed Income 40% 1.47%
Global Equity 60% 4.82%
Assumed long-term rate of inflation - 2.75%
Expected long-term net rate of return - 6.25%
Total 100.00%
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 111 -
Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

Discount Rate

The discount rate used to measure the total OPEB liability wa s 6.25 percent. The projection of cash flows used to determine the discount rate assumed that the Department’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current and inactive employees and beneficiaries. Therefore, the long -term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the Net OPEB Liability

The changes in the net OPEB liability/(asset) are as follows:

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 37,262,554$ 39,808,772$ (2,546,218)$ Changes Recognized for the Measurement Period:

Service Cost 984,915 - 984,915 Interest on the total OPEB liability 2,336,141 - 2,336,141 Changes in benefit terms - - - Changes in assumptions (2,619,432) - (2,619,432) Differences between expected and actual experience (3,119,394) - (3,119,394) Contributions - employer - 1,738,412 (1,738,412) Net investment income - (4,469,586) 4,469,586 Benefit payments, including refunds of member
contributions (1,738,412) (1,738,412) - Administrative expenses - (11,068) 11,068 Net Changes during July 1, 2021 to June 30, 2022 (4,156,182) (4,480,654) 324,472 Balance at June 30, 2022 (Measurement Date) 33,106,372$ 35,328,118$ (2,221,746)$ Increase (Decrease)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 112 -
Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following represents the net OPEB liability /(asset) of the Department if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates

The following represents the net OPEB liability /(asset) of the Department if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Recognition of Deferred Outflows and Deferred Inflows of Resources

Gains and losses related to changes in the total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

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

The recognition period differs depending on the source of the gain or loss. The net difference between projected and ac tual earnings on OPEB plan investments are recognized over five years, while all other deferred outflows and inflows are amortized over the average expected remaining service life of plan participants.

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.25%) Rate (6.25%) (7.25%)
2,374,446$ (2,221,746)$ ( 5,997,903)$ Plan's Net OPEB Liability/(Asset)
(5.8% Pre-Medicare (6.8% Pre-Medicare (7.8% Pre-Medicare decreasing to decreasing to decreasing to

4.4% Medicare) 5.4% Medicare) 6.4% Medicare)
(6,279,190)$ (2,221,746)$ 2,820,360$ Plan's Net OPEB Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 113 -
Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 20 23, the Department recognized OPEB income of $1,196,234. As of fiscal year ended June 30, 2023 , the Department reported deferred outflows of resources related to OPEB from the following sources:

The $2,327,743 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

C. Successor Agency

The Successor Agency (Agency) administers a single employer defined benefit healthcare plan (the Plan).

The Agency provides medical and dental plan cover age for retirees and their eligible surviving dependents.

At June 30, 2023, a finite group of retirees and surviving spouses numbering fewer than eleven receive a subsidy of $128 per month. Because this is a closed plan with de minimis liability impact, the Successor Agency’s OPEB obligation of $1,583,335 has been reduced to zero and the minor annual costs are being reported on a pay as you go basis.

Deferred outflows Deferred inflows
of Resources of Resources
OPEB contributions made subsequent to the
measurement date 2,327,743$ -$
D
ifferences between expected and actual experience 114,589 6,561,381 Changes of assumptions - 3,501,262 Net difference between projected and actual earnings on OPEB plan investments 2,013,224 -
4,455,556$ 10,062,643$
Fiscal Year OPEB
Ending June 30 Expense
2023 (1,956,857)$
2024 (1,820,943)
2 025 (1,833,952)
2026 (646,888)
2027 (956,742)
Thereafter (719,448)
(7,934,830)$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 114 -
Note 15 – Other Required Disclosures

A. Expenditures Exceeding Appropriations

For the year ended June 30, 2023, expenditures exceeded appropriations in the below functions of the following funds:

B. Deficit Fund Balances/Net Position

At June 30, 2023 , the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(216,955,069).

At June 30, 2023, the following proprietary funds, and fiduciary funds have deficits that are anticipated to be funded from future grants, other revenues and operating transfers:

As of June 30, 2023 , the General Fund does not have the financial capacity to fund such accumulated deficits. Therefore, management expects that funding for the accumulated deficits will be accomplished over a period of years. The accumulated deficits of the Workers’ Compensation Internal Service Fund and the Liability Insurance Internal Service Fund are due to higher claims exper ienced over a period of years, versus amounts charged to the various departments. Both these funds operate on a pay-as-you-go basis; as such the deficits in these funds are expected to change as claims are made. Management has paid and expects to pay for all accepted claims as and when they become due.

Excess Expenditures
Fund Function over Appropriations
General Fund General government: City attorney (280,287)$ General Fund General government: City manager (333,903) General Fund General government: Nondepartmental (15,171,623) General Fund Debt Service: Principal (706,231)
General Fund Debt Service: Interest and fiscal charges (5,678) General Fund Other Financing Sources: Transfers out (34,353) Federal and State Grants
Special Revenue Fund Debt Service: Principal (7,730)
Fund Type Fund Deficit
Internal Service Workers' Compensation Fund (17,689,057)$ Internal Service Liability Insurance Fund (1,544,847)
Internal Service Motorpool Fund (2,977,997)
Internal Service Information Systems Fund (1,225,288)
Fiduciary Successor Agency to the Economic Development (14,431,305) Agency of San Bernardino Private-purpose
Trust Fund
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 115 -
Note 16 – Fund Balance Classification

Fund balances as of June 30, 2023, for the governmental funds were categorized as nonspendable, restricted, committed, assigned, or unassigned for the following purposes:

Federal
American and State Other
General Rescue Plan Grants Governmental
Fund Act Fund Fund Funds Total
Nonspendable
Prepaid expenditures 2,059,268$ -$ -$ -$ 2,059,268$ Property held for resale 39,362,268 - - - 39,362,268 Total nonspendable 41,421,536 - - - 41,421,536 Restricted
Housing - - 19,390,963 19,019,786 38,410,749 Grants - 1,075,753 287,940 - 1,363,693 Street improvements - - - 16,481,336 16,481,336 Cable TV - - - 1,302,045 1,302,045 Law enforcement - - - 2,751,155 2,751,155 Transportation - - - 4,444,380 4,444,380 Sewer - - - 23,447 23,447 Debt service 28,304 - - - 28,304 Capital projects - - - 42,052,097 42,052,097 Parks 2,058,062 - - - 2,058,062 Opioid Settlement - - - 1,195 1,195 Total restricted 2,086,366 1,075,753 19,678,903 86,075,441 108,916,463 Committed
Animal control 68,387 - - - 68,387 General Plan Update 142,877 - - - 142,877 Measure S 81,762,949 - - - 81,762,949 Emergency reserve 28,788,264 - - - 28,788,264 Economic contingency reserve 19,192,176 - - - 19,192,176 Total committed 129,954,653 - - - 129,954,653 Total fund balances 173,462,555$ 1,075,753$ 19,678,903$ 86,075,441$ 280,292,652$ Major Funds
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 17 – Net Investment in Capital Assets

The Government-wide Statement of Net Position reports net investment in capital assets as follows:

Note 18 – Landfill Closure Liability

The City operated a munici pal non- hazardous solid waste facility, identified as the “Waterman Landfill,” from 1950 to 1960. The City is the primary responsible party for pollution remediation obligations related to the Waterman Landfill. During the 1990s, groundwater monitoring wells were installed and placed into service as part of the overall remediation plan. In 2004, it was determined that additional work was required to comply with state regulations. State regulatory agencies approved a plan for final closure of t he Waterman Landfill in 2012. The City is currently in the operations maintenance and monitoring phase of the remediation project. Pollution remediation costs for the closure of the Waterman Landfill are estimated at $ 4,100,551 at June 30, 202 3, measured using the expected cash flow technique.

This estimate is subject to change in future periods due to various factors including changes in the remediation plan or operating conditions, the type of equipment and services that will be used, price increases or reductions for specific outlay elements such as ongoing monitoring requirements, changes in technology, or changes in legal or regulatory requirements. The liability is reported in the Integrated Waste Fund in the accompanying financial statements.

Note 19 – Successor Agency Trust for Assets of Former Redevelopment Agency

On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (the “Bill”) that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012. This action impacted the reporting entity of the City since the City had previously reported its redevelopment agency (commonly referred to as the “Econom ic Development Agency” or “EDA”) as a blended component unit within the City’s financial statements.

Governmental Business-type
Activities Activities Total
Total capital assets, net 288,357,656$ 310,275,958$ 598,633,614$ Less related debt:

Lease revenue bonds - - - Bonds payable - (78,391,498) (78,391,498) Lease liabilities (2,197,868) (59,878) (2,257,746) Subscription liabilities (389,904) (122,978) (512,882) Less related deferred inflows of resources:

Deferred charge on refunding (1,673,144) - (1,673,144) Unspent bond proceeds - 19,908,149 19,908,149 Net investment in capital assets 284,096,740$ 251,609,753$ 535,706,493$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 19 – Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)

The Bill provided that upon dissolution of the redevelopment agency, either the City or another unit of local government may serve as the “successor agency” to hold the assets of the dissolved redevelopment agency until they are distributed to other units of state and local government. On January 9, 2012, the City Council adopted resolution 2012 -19, electing to serve as the Successor Agency to the former Economic Development Agency of the City of San Bernardino in accordance with the Bill. Upon redevelopment dissolution, activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City.

The Successor Agency is allocated revenue only in the amount that is necessary to pay t he estimated payments on existing enforceable obligations of the former redevelopment agency until all enforceable obligations are paid in full and all assets are liquidated. These obligations are listing on a Recognized Obligation Payment Schedule (ROPS) biannually and are subject to the approval of the County Oversight Board and the California Department of Finance (“DOF”).

On December 31, 2015, the DOF approved the City’s revised Long Range Property Management Plan (LRPMP), with the assets deemed for g overnmental use and future development properties to be transferred to the City of San Bernardino effective upon the date of the DOF’s approval of the LRPMP.

At June 30, 2023 , the Successor Agency had a deficit net position of $ 14,431,305 as a result of its total liabilities exceeding its total assets. The deficit is expected to be progressively eliminated as enforceable obligations are funded biannually with future property taxes.

Note 20 – Consent Decree

In 1996, the City of San Bern ardino filed a complaint against the United States of America, Department of the Army to recover damages, response costs and other available remedies relating to contamination alleged to have originated at a World War II army installation known as Camp Ono.

In March 2005, the United States District Court, Central Division entered judgment, in the form of a Consent Decree, in the matter of City of San Bernardino v. United States of America. The Consent Decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the City’s Water Department) to operate and maintain the Newmark Groundwater Superfund site (Site). The Site c onsists of two operable units, the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998. The Muscoy Operable unit was declared operational and functional in 2007.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 20 – Consent Decree (Continued)

The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in the Consent Decree. Upon acceptance of the Consent Decree, the Department received title to all facilities constructed by the United States Environmental Protection Agency (EPA) of the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operations and maintenance and $10 mi llion for the construction of certain capital facilities that would be required in the future; the funds are subject to strict limitations, contained in the Consent Decree, as to how the money may be spent.

Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) funding construction of treatment and directly related transmission systems that expand the City’s Water Department’s capacity to deliver potable water and (ii) funding work performed by the City’s Water Department to complete construction of the Muscoy Operable Unit extraction system. These capital facility funds may not be used for costs incurred to operate, maintain, repair , or retrofit components of the site extraction of treatment systems constructed by EPA.

In March 2006, the City’s Water Department entered into a Guaranteed Investment Contract (GIC) with AIG Match Funding Corporation. The Department invested $16,482,039 of excess Consent Decree funds into an interest -bearing Escrow Fund investment with an interest rate of 4.95% per annum. These funds were invested to pay costs associated with the water facilities defined in the Consent Decree for years 2035 -2056. An additional $50 million was used to purchase a blended insurance policy to provide a financial vehicle that provides cost cap coverage for the first 30 years of expenses.

The terms of the GIC only provided the Department with the position of a secured creditor with respect to an AIG bankruptcy. As concerns rose regarding AIG ’s financial credibility, in October 2009, the Department negotiated and accepted a “payout” in the amount of $18,661,876, which represented the principal and accrued interest as of that date. These funds are currently invested in a diversified portfolio m anaged by PFM Asset Management. The balance of restricted investments held at June 30, 2023 is $23,565,710.

Note 21 – Jointly Governed Organizations and Joint Ventures

Inland Valley Development Agency

In January 1990, the City entered into a joint powers agreement with the Cities of Colton and Loma Linda and the County of San Bernardino to form the Inland Valley Development Agency (IVDA).

The IVDA adopted a redevelopment plan, and its primary purpose is to promote the redevelopment of the former Nor ton Air Force Base and other areas within its project area. The IVDA board is comprised of three members from the City and two each from the other members. The primary sources of funding are tax increment and lease income. Additional financial information can be obtained by contacting the IVDA at 1601 E. Third Street, San Bernardino, CA 92408.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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Note 21 – Jointly Governed Organizations and Joint Ventures (Continued)

San Bernardino International Airport Authority

In May 1992, the City entered into a joint p owers agreement with the Cities of Colton, Loma Linda, Highland and Redlands and the County of San Bernardino to form the San Bernardino International Airport Authority (SBIAA). SBIAA was created primarily for the purpose of acquiring, operating, repairing, maintaining and administering the aviation related portions of the former Norton Air Force Base property located in San Bernardino. Effective April 19, 1996, the City of Redlands withdrew from its membership in SBIAA. The board is comprised of two member s from the City and one each from the other members. The primary sources of funding are loans, federal grants and lease income. Additional financial information can be obtained by contacting SBIAA at 1601 E.

Third Street, San Bernardino, CA 92408.

San Ber nardino Regional Water Resource Authority

In August 1998, the City entered into a joint powers agreement with the Inland Valley Development Agency (IVDA) and the San Bernardino Valley Municipal Water District (the District) to form the San Bernardino Regional Water Resources Authority (the Authority). The Authority was created primarily for the purpose of conducting a water resource and storage project. The Authority board is comprised of three members from the City, one member from IVDA and two from the District.

The primary sources of funding are loans and grants. Additional financial information can be obtained by contacting the Authority at 201 North “E” Street, Third Floor, San Bernardino, CA 92401.

Colton / San Bernardino Regional Tertiary Treatment and Water Reclamation Authority

On August 2, 1994, the City of San Bernardino, through the Water Department formed a joint powers authority with the City of Colton to construct, operate, use and maintain tertiary wastewater treatment, disposal and water reclamations systems, including the Regional Rapid Infiltration and Extraction Facility (RIX). This authority is governed by a separate board consisting of four members; two appointed by the City through the Water Department's Board of Water Commissioners and two appointed by the City Council of the City of Colton. Construction of RIX was administered by the Santa Ana Watershed Project Authority and was substantially completed during 1996. Administration and operation was turned over at that time. The cities of San Bernardino and Colton each have an undivided interest in the real property and any related debt of the RIX projects based on an 80% / 20% split, respectively. Substantially all of the assets of RIX are in the form of capital assets. RIX has no liabilities. Annual revenues (in the form of contributions from the two member cities) are equal to annual expenses. The Water Department ’s equity interest in this joint venture has been reported as an investment in joint venture in the accompanying statement of net position. The RIX complete financial statements may be obtained at the City of San Bernardino Municipal Water Department at 1350 South E. Street, San Bernardino, CA 92418.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 120 -
Note 21 – Jointly Governed Organizations and Joint Ventures (Continued)

West End Water Development, Treatment and Conservation Joint Powers Authority

On August 15, 1990, the City of San Bernardino joined the West End Water Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water facilities. A three -member board consisting of one representati ve from each agency’s governing body governs the WEJPA. This joint venture was formed to provide a financing vehicle for the three member agencies. This joint venture is currently inactive.

Note 22 – Commitments and Contingencies

A. Litigation

The City is a defendant in numerous lawsuits and is also subject to other claims, including claims for workers’ compensation payments . The City generally uses outside counsel to adjudicate lawsuits. Each claim and case is initially rated by the City’s risk managemen t team and outside Claims Examiner. At that stage, if a claim or case is likely to exceed the City’s self -insured retention of $1 million, the case or claim is reported to the City’s excess insurance carrier(s). In addition, upon the filing of a case and assignment of that case to outside counsel, outside counsel is required to provide the City with a full report identifying the City’s potential exposure and the likely fees and costs to take the case to trial. Such report may be delayed if the case is expected to be resolved relatively quickly.

As of June 30, 2023, the City was involved with ongoing litigation related to a particular case where the likelihood of loss was reasonably possible. Previous attempts to settle the case were unsuccessful, though settlement discussions are ongoing with the Pla intiffs’ counsel. The estimated likely total exposure range as of June 30, 2023 was $450,000-$550,000.

Only cases rated “ probable” for recovery from the City are reported for financial statement purposes. The dollar value reserved for any eventual payout on any said case is based upon the facts of the case, industry standards relative to the type of injury or damage involved, and the experience of the handling attorney. The City used a third -party actuary to perform a workers’ compensation reserve analysis and the general liability claims analysis (estimated loss reserve) as of June 30, 2023. The actuary used a general approach that r elied upon actual loss development patterns for the City of San Bernardino to the extent they are available and is augmented with industry benchmark loss development patterns based on insurance industry sources and patterns to project ultimate losses. While it is not possible to project the outcome of these lawsuits and claims, the City and its legal department have estimated that the liability for all such litigation and claims totaled approximately $ 59.03 million for the primary government as of June 30, 2023 .

These lawsuits and claims may be compromised and/or discharged pursuant to a plan of adjustment confirmed in the Bankruptcy Case.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

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The City’s plan of adjustment became effective on the Effective Date, June 15, 2017, and all transactions necessary to implement the plan of adjustment closed. In the days that followed, the City made all required cash distributions on or shortly after the Effective Date. On September 8, 2022, the U.S. Bankruptcy Court issued an order discharging the City of San Bernardino’s bankruptcy case.

Note 22 – Commitments and Contingencies (Continued)

B. Federal and State Grants

Amounts received or receivable from grantor agencies are subject to audits or adjustments by grantor agencies, principally the federal and state governments. Such audits could lead to disallowed claims under the terms of the grants, including amounts already collected, which may constitute a liability of the City.

Note 23 – Prior Period Adjustments

A. Changes to or within the Reporting Entity

During the fiscal year ended June 30, 2023, the Sewer Collection Utility was combined with the Sewer Utility to be reported as one fund going forward. The effects of that change to the financial reporting entity are shown in the table below.

B. Change in Accounting Principle

For the fiscal year ended June 30, 2023, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription Based Information Technology Arrangements , which updated the recognition and measurement guidance for subscription -based IT arrangements to ali gn recognition and measurement under a single unified model to better meet the needs of the financial statement users. The City reported a restatement to beginnin g net position in the Water Fund in the amount of $148,632 to record the beginning balance of the subscription liability. This restatement was offset by an equal restatement to record the beginning balance of the right -to-use subscription asset. The net effect of these two restatements was $0.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023

- 122 -
C. Adjustments to and Restatements of Beginning Balances

During fiscal year 2023, changes to or within the financial reporting entity and the change in accounting principle resulted in adjustments to and restatements of beginning ne t position and fund net position as follows:

June 30, 2022 June 30, 2022 June 30, 2022
As Previously As Previously As Previously June 30, 2022 Reported Reported Reported As Restated
Water Fund 181,722,634$ -$ -$ 181,722,634$ Sewer Fund 120,104,792 30,193,494 150,298,286 Sewer Collection Fund 30,193,494 (30,193,494) - Total 332,020,920$ -$ -$ 332,020,920$

Note 24 – Subsequent Events

Subsequent events have been evaluated through the date of the auditor’s report , March 29, 2024 which is the date the financial statements were available to be issued.

REQUIRED SUPPLEMENTARY INFORMATION
City of San Bernardino
Required Supplementary Information
Budgetary Information
For the Fiscal Year Ended June 30, 2023

- 123 -
Budgetary Information

The City adopts an operating budget annually during June to be effective July 1 for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council. The legal level of budgetary control is considered to be the department level.

Following approval of the budget by the Mayor and City Council, the following types of budget transfers may be made administratively (without action by the Mayor and City Council):
 Budget transfers, including allocations within the department’s personnel (salary or benefits) budget may made be with the approval of the Budget Division, Position Control, and the Director of Finance.
 Budget transfers between departments within the same fund may be made with the approval of the Director of each Department, the Budget Division, and the Director of Finance.  Budget transfers within a department must not increase the department’s budget.  Budget transfers between departments in the same fund will increase or decrease individual department budgets but shall not increase the fund budget.

For the fiscal year ended June 30, 2023, budgets were legally adopted for all City funds except the following:

Special Revenue Funds
Sewerline Maintenance Fund
Opioid Settlement Fund
Capital Projects Funds
Verdemont Fund
Park Construction Fee Fund
Sewerline Construction Fund
Street Construction Fund
Public Improvements Fund
Prop 1B Local Streets Fund

All budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). At fiscal year- end, operating budget appropriations lapse; however, appropriations for incomplete capital improvements, equipment purchases, and contractual obligations can be carried over to the following fiscal year.

Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used in future years without limitation.

City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – General Fund
For the Fiscal Year Ended June 30, 2023

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Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Current:

General government
Mayor 377,224 377,135 306,227 70,908 City council 931,882 1,054,234 1,015,993 38,241 City clerk 1,486,807 1,954,098 1,300,833 653,265 City attorney 3,176,084 4,278,996 4,559,283 (280,287) City manager 3,541,261 3,625,659 3,959,562 (333,903) Human resources 2,508,177 2,579,408 2,055,421 523,987 Finance 5,336,360 5,281,394 4,546,383 735,011 Nondepartmental 8,804,941 10,420,887 25,592,510 (15,171,623) Total general government 26,162,736 29,571,811 43,336,212 (13,764,401) Public safety
Police 106,395,588 108,628,795 103,518,651 5,110,144 Total public safety 106,395,588 108,628,795 103,518,651 5,110,144 Public works
Public works 23,658,756 61,227,013 30,969,348 30,257,665 Total Public works 23,658,756 61,227,013 30,969,348 30,257,665 Culture and recreation
Park, recreation and community services 3,880,656 4,088,237 3,394,205 694,032 Total culture and recreation 3,880,656 4,088,237 3,394,205 694,032 Community development
Community development 11,698,803 16,155,876 8,903,182 7,252,694 Total community development 11,698,803 16,155,876 8,903,182 7,252,694 Community service
Animal services 3,719,863 4,523,440 3,322,726 1,200,714 Library 6,923,028 14,143,755 7,601,351 6,542,404 Total community service 10,642,891 18,667,195 10,924,077 7,743,118 Debt service:

Principal 988,847 988,847 1,695,078 (706,231) Interest and fiscal charges 1,376,261 1,376,261 1,381,939 (5,678) Total expenditures 184,804,538 240,704,035 204,122,692 36,581,343

REVENUES OVER
(UNDER) EXPENDITURES 7,659,128 (48,987,811) 16,863,595 65,851,406

OTHER FINANCING SOURCES (USES)
Proceeds from capital leases - - 274,653 274,653 Proceeds from sale of capital assets - - 59,565 59,565 Transfers out (150,000) (150,000) (184,353) (34,353) Total other financing sources (uses) (150,000) (150,000) 149,865 299,865 CHANGE IN FUND BALANCE 7,509,128$ (49,137,811)$ 17,013,460 66,151,271$ Fund Balance:

Beginning of year 156,449,095
End of year 173,462,555$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – American Rescue Plan Act Special Revenue Fund For the Fiscal Year Ended June 30, 2023

- 125 -
Variance with
Final Budget
A
ctual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property -$ -$ 912,978$ 912,978$ Intergovernmental - 950,000 1,934,283 984,283 Total revenues - 950,000 2,847,261 1,897,261 EXPENDITURES:

Current:

Public works
Public works - 5,160,000 - 5,160,000 Total Public works - 5,160,000 - 5,160,000 Community development
Community development - 4,995,000 1,278,450 3,716,550 Total community development - 4,995,000 1,278,450 3,716,550 Community service
Other - 48,648,970 655,834 47,993,136 Total community service - 48,648,970 655,834 47,993,136 Total expenditures - 58,803,970 1,934,284 56,869,686

REVENUES OVER
(UNDER) EXPENDITURES - (57,853,970) 912,977 58,766,947 CHANGE IN FUND BALANCE -$ (57,853,970)$ 912,977 58,766,947$ FUND BALANCE:

Beginning of year 162,776
End of year 1,075,753$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – Federal and State Grants Special Revenue Fund For the Fiscal Year Ended June 30, 2023

- 126 -
Variance with
Final Budget
A
ctual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property -$ -$ 149,875$ 149,875$ Intergovernmental 11,232,325 51,279,457 24,149,663 (27,129,794) Other revenues 40,000 40,000 85,462 45,462 Total revenues 11,272,325 51,319,457 24,385,000 (26,934,457) EXPENDITURES:

Current:

General government
City manager 718,913 1,256,633 682,411 574,222 Total general government 718,913 1,256,633 682,411 574,222 Public safety
Police 3,399,500 7,162,971 5,878,985 1,283,986 Total public safety 3,399,500 7,162,971 5,878,985 1,283,986 Public works
Public works 93,029 17,657,769 4,401,037 13,256,732 Total Public works 93,029 17,657,769 4,401,037 13,256,732 Culture and recreation
Park, recreation and community services - 1,317,347 289,868 1,027,479 Total culture and recreation - 1,317,347 289,868 1,027,479 Community development
Community development 4,581,595 12,711,969 6,496,811 6,215,158 Total community development 4,581,595 12,711,969 6,496,811 6,215,158 Community service
Animal services 500,000 2,455,750 918,396 1,537,354 Other 970,678 27,890,649 4,098,682 23,791,967 Total community service 1,470,678 30,346,399 5,017,078 25,329,321 Debt Service:

Principal 624,000 624,000 631,730 (7,730) Interest and fiscal charges 164,803 164,803 164,802 1 Total expenditures 11,052,518 71,241,891 23,562,722 47,679,169

REVENUES OVER
(UNDER) EXPENDITURES 219,807 (19,922,434) 822,278 20,744,712 OTHER FINANCING SOURCES (USES):

Proceeds from capital leases - - 36,587 36,587 Total other financing sources (uses) - - 36,587 36,587 CHANGE IN FUND BALANCE 219,807$ (19,922,434)$ 858,865 20,781,299$ FUND BALANCE:

Beginning of year 18,820,038
End of year 19,678,903$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios For the Fiscal Year Ended June 30, 2023

- 127 -
Measurement Period 2013-14 1
2014-15 2015-16 2016-17 2017-18
Total Pension Liability
Service cost 7,664,862$ 7,442,643$ 7,155,797$ 7,045,162$ 6,941,229$ Interest on total pension liability 35,857,877 36,972,628 37,886,480 38,182,872 38,956,825 Differences between expected and actual
experience - (4,628,505) (6,107,773) (8,734,519) (1,512,789) Changes in assumptions - (8,789,538) - 30,840,588 (2,617,743) Changes in benefit terms - - - - - Benefit payments, including refunds of employee
contributions (24,178,446) (25,414,126) (27,022,461) (29,607,481) (30,834,523) Net change in total pension liability 19,344,293 5,583,102 11,912,043 37,726,622 10,932,999 Total pension liability - beginning 486,361,821 505,706,114 511,289,216 523,201,259 560,927,881 Total pension liability - ending (a) 505,706,114$ 511,289,216$ 523,201,259$ 560,927,881$ 571,860,880$ Plan fiduciary net position
Contributions - employer 10,201,167$ 8,328,349$ 9,535,349$ 9,782,993$ 11,868,160$ Contributions - employee 4,422,413 3,362,371 3,307,239 3,005,285 3,003,123 Investment income (net of admin expenses) 58,763,840 8,671,204 2,060,677 41,369,230 33,535,039 Benefit payments (24,178,446) (25,414,126) (27,022,461) (29,607,481) (30,834,523) Other - (435,431) (230,854) (553,567) (1,808,998) Net change in plan fiduciary net position 49,208,974 (5,487,633) (12,350,050) 23,996,460 15,762,801 Plan fiduciary net position - beginning 342,796,034 392,005,008 386,517,375 374,167,325 398,163,785 Plan fiduciary net position - ending (b) 392,005,008$ 386,517,375$ 374,167,325$ 398,163,785$ 413,926,586$ Net pension liability - ending (a)-(b) 113,701,106$ 124,771,841$ 149,033,934$ 162,764,096$ 157,934,294$ Plan fiduciary net position as a percentage of the
total pension liability 77.52% 75.60% 71.51% 70.98% 72.38% Covered payroll 41,173,517$ 42,405,805$ 41,939,966$ 37,664,590$ 37,507,992$ Net pension liability as a percentage of
covered payroll 276.15% 294.23% 355.35% 432.14% 421.07% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

City Miscellaneous Plan - 53
As of June 30, 2023
City of San Bernardino
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Fiscal Year Ended June 30, 2023

- 128 -

Measurement Period 2018-19 2019-20 2 020-21 2021-22
Total Pension Liability
Service cost 7,264,944$ 7,172,248$ 6,924,948$ 8,097,764$ Interest on total pension liability 40,448,534 41,512,677 42,640,458 43,069,901 Differences between expected and actual
experience 6,286,583 510,761 2,081,221 (4,634,854) Changes in assumptions - - - 18,631,953 Changes in benefit terms - - - - Benefit payments, including refunds of employee
contributions (32,132,357) (34,457,162) (35,281,521) (37,353,487) Net change in total pension liability 21,867,704 14,738,524 16,365,106 27,811,277 Total pension liability - beginning 571,860,880 593,728,584 608,467,108 624,832,214 Total pension liability - ending (a) 593,728,584$ 608,467,108$ 624,832,214$ 652,643,491$ Plan fiduciary net position
Contributions - employer 13,870,437$ 15,690,224$ 17,344,103$ 18,615,559$ Contributions - employee 3,255,149 3,091,604 3,183,832 3,687,197 Investment income (net of admin expenses) 26,959,611 21,097,475 96,431,828 (38,496,139) Benefit payments (32,132,357) (34,457,162) (35,281,521) (37,353,487) Other (294,423) (599,970) (429,951) (303,525) Net change in plan fiduciary net position 11,658,417 4,822,171 81,248,291 (53,850,395) Plan fiduciary net position - beginning 413,926,586 425,585,003 430,407,174 511,655,465 Plan fiduciary net position - ending (b) 425,585,003$ 430,407,174$ 511,655,465$ 457,805,070$ Net pension liability - ending (a)-(b) 168,143,581$ 178,059,934$ 113,176,749$ 194,838,421$ Plan fiduciary net position as a percentage of the
total pension liability 71.68% 70.74% 81.89% 70.15%
Covered payroll 38,879,075$ 40,068,424$ 38,751,808$ 41,935,598$ Net pension liability as a percentage of
covered payroll 432.48% 444.39% 292.06% 464.61%
Notes to Schedule:

As of June 30, 2023
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service C
redit (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: In 2022, the discount rate was reduced from 7.15 percent to 6.90 percent. None in 2019- 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience S
tudy and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

City Miscellaneous Plan - 53
City of San Bernardino
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Fiscal Year Ended June 30, 2023

- 129 -

Measurement Period 2013-14 1
2014-15 2015-16 2016-17 2017-18
Total Pension Liability
Service cost 11,208,178$ 9,902,473$ 9,581,356$ 10,668,244$ 7,839,902$ Interest on total pension liability 48,966,477 50,392,288 52,179,027 53,181,646 54,332,493 Differences between expected and actual
experience - (5,975,828) 104,464 (6,077,710) (652,443) Changes in assumptions - (12,404,993) - 44,897,552 (3,779,819) Changes in benefit terms - - - - - Benefit payments, including refunds of employee
contributions (34,402,815) (36,206,443) (37,558,743) (41,247,705) (42,567,625) Net change in total pension liability 25,771,840 5,707,497 24,306,104 61,422,027 15,172,508 Total pension liability - beginning 664,483,681 690,255,521 695,963,018 720,269,122 781,691,149 Total pension liability - ending (a) 690,255,521$ 695,963,018$ 720,269,122$ 781,691,149$ 796,863,657$ Plan fiduciary net position
Contributions - employer 18,245,106$ 12,378,212$ 13,617,432$ 11,308,879$ 16,518,568$ Contributions - employee 5,184,692 3,351,555 3,539,959 2,363,002 2,505,657 Investment income (net of admin expenses) 78,093,954 11,406,991 2,507,728 54,968,745 43,963,504 Benefit payments (34,402,815) (36,206,443) (37,558,743) (41,247,705) (42,567,625) Other - (579,829) (311,119) (730,424) (2,347,257) Net change in plan fiduciary net position 67,120,937 (9,649,514) (18,204,743) 26,662,497 18,072,847 Plan fiduciary net position - beginning 455,455,761 522,576,698 512,927,184 494,722,441 521,384,938 Plan fiduciary net position - ending (b) 522,576,698$ 512,927,184$ 494,722,441$ 521,384,938$ 539,457,785$ Net pension liability - ending (a)-(b) 167,678,823$ 183,035,834$ 225,546,681$ 260,306,211$ 257,405,872$ Plan fiduciary net position as a percentage of the
total pension liability 75.71% 73.70% 68.69% 66.70% 67.70% Covered payroll 39,718,552$ 36,543,185$ 35,506,229$ 35,443,848$ 25,845,264$ Net pension liability as a percentage of
covered payroll 422.17% 500.88% 635.23% 734.42% 995.95% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

City Safety Plan - 54
As of June 30, 2023
City of San Bernardino
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Fiscal Year Ended June 30, 2023

- 130 -

Measurement Period 2018-19 2019-20 2020-21 2021-22
Total Pension Liability
Service cost 8 ,269,399$ 8,536,838$ 8,436,388$ 9,379,086$ Interest on total pension liability 56,383,004 58,083,732 59,605,320 60,302,761 Differences between expected and actual
experience 10,170,711 5,375,486 3,095,379 (7,429,800) Changes in assumptions - - - 29,470,625 Changes in benefit terms - - - - Benefit payments, including refunds of employee
contributions (45,191,159) (47,559,242) (49,210,313) (51,273,005) Net change in total pension liability 29,631,955 24,436,814 21,926,774 40,449,667 Total pension liability - beginning 796,863,657 826,495,612 850,932,426 872,859,200 Total pension liability - ending (a) 826,495,612$ 850,932,426$ 872,859,200$ 913,308,867$ Plan fiduciary net position
Contributions - employer 19,557,103$ 22,641,381$ 25,180,992$ 27,474,318$ Contributions - employee 2,698,657 3,090,593 3,079,181 3,202,156 Investment income (net of admin expenses) 35,115,561 27,272,832 125,115,793 (49,997,019) Benefit payments (45,191,159) (47,559,242) (49,210,313) (51,273,005) Other (383,710) (777,133) (555,333) (426,056) Net change in plan fiduciary net position 11,796,452 4,668,431 103,610,320 (71,019,606) Plan fiduciary net position - beginning 539,457,785 551,254,237 555,922,668 659,532,988 Plan fiduciary net position - ending (b) 551,254,237$ 555,922,668$ 659,532,988$ 588,513,382$ Net pension liability - ending (a)-(b) 275,241,375$ 295,009,758$ 213,326,212$ 324,795,485$ Plan fiduciary net position as a percentage of the
total pension liability 66.70% 65.33% 75.56% 64.44%
Covered payroll 26,493,446$ 29,086,331$ 29,313,370$ 29,774,877$ Net pension liability as a percentage of
covered payroll 1038.90% 1014.26% 727.74% 1090.84%
Notes to Schedule:

City Safety Plan - 54
As of June 30, 2023
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: In 2022, the discount rate was reduced from 7.15 percent to 6.90 percent. None in 2019- 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

City of San Bernardino
Required Supplementary Information
Schedule of the Successor Agency’s Proportionate Share of the Net Pension Liability and Related Ratios
For the Fiscal Year Ended June 30, 2023

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Measurement period, year ended 6/30/2014 1
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Plan's proportion of the net pension liability 0.061320% 0.0653236% 0.0654569% 0.0645053% 0.0650604% 0.0649982% 0.0644167% 0.2622529% 0.1696069% Plan's proportionate share of the net pension liability 3,815,585$ 4,483,755$ 5,664,045$ 6,397,158$ 6,269,392$ 6,660,396$ 7,008,819$ 4,979,665$ 7,936,290$ Plan's covered payroll 451,000$ 464,530$ 89,988$ 89,988$ 92,688$ 95,468$ 97,975$ 97,618$ -$ Plan's proportionate share of the net pension liability as a percentage of covered payroll 846.03% 965.22% 6294.22% 7108.90% 6764.00% 6976.55% 7153.68% 5101.17% 0.00% Plan's fiduciary net position 17,279,507$ 15,896,118$ 14,686,614$ 15,233,189$ 15,271,896$ 15,077,093$ 14,906,724$ 17,119,144$ 14,298,675$ Plan's fiduciary net position as a percentage of the total pension liability 81.91% 78.00% 72.17% 70.43% 70.90% 69.36% 68.02% 77.47% 64.31% Plan's proportionate share of aggregate employer
contributions 60,842$ 19,656$ 280,440$ 313,887$ 347,304$ 410,556$ 420,125$ 469,389$ 524,033$ Notes to Schedule:
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.

Successor Agency Plan - 1414
For the Year Ended June 30, 2023
City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension
For the Fiscal Year Ended June 30, 2023

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Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 2
(Excess) Payroll Payroll
2013-14 1
10,201,167$ (10,201,167)$ -$ 41,173,517$ 24.78% 2014-15 8,328,349 ( 8,328,349) - 42,405,805 19.64% 2015-16 9,535,349 ( 9,535,349) - 41,939,966 22.74% 2016-17 9,782,993 (9,782,993) - 37,664,590 25.97% 2017-18 11,868,160 (11,868,160) - 37,507,992 31.64% 2018-19 13,870,437 (13,870,437) - 38,879,075 35.68% 2019-20 15,690,224 (15,690,224) - 40,068,424 39.16% 2020-21 17,344,103 (17,344,103) - 38,751,808 44.76% 2021-22 18,615,559 (18,615,559) - 41,935,598 44.39% 2022-23 20,976,002 (20,976,002) - 39,817,483 52.68% Notes to Schedule
Valuation date: 6/30/2021
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2019 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 p
ublished by the Society of Actuaries.

City Miscellaneous Plan - 53
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are a ssumed 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.

As of June 30, 2023
City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension (Continued)
For the Fiscal Year Ended June 30, 2023

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Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 2
(Excess) Payroll Payroll
2013-14 1
18,245,106$ (18,245,106)$ -$ 39,718,552$ 45.94% 2014-15 12,378,212 ( 12,378,212) - 36,543,185 33.87% 2015-16 13,617,432 ( 13,617,432) - 35,506,229 38.35% 2016-17 11,308,879 (11,308,879) - 35,443,848 31.91% 2017-18 16,518,568 (16,518,568) - 25,845,264 63.91% 2018-19 19,557,103 (19,557,103) - 26,493,446 73.82% 2019-20 22,641,381 (22,641,381) - 29,086,331 77.84% 2020-21 25,180,992 (25,180,992) - 29,313,370 85.90% 2021-22 27,474,318 (27,474,318) - 29,774,877 92.27% 2022-23 30,405,142 (30,405,142) - 30,119,488 100.95% Notes to Schedule
Valuation date: 6/30/2021
Methods and assumptions used to determine contribution rates:

Inflation 2.500%
Salary increases Va ries by entry age and service
Payroll growth 2.750%
Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 p
ublished by the Society of Actuaries.

The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.

City Safety Plan - 54
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Employers are a ssumed 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.

As of June 30, 2023
City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension (Continued)
For the Fiscal Year Ended June 30, 2023

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Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution 2
Contribution (Excess) Payroll Payroll
2013-14 1
60,842$ (60,842)$ -$ 451,000$ 13.49% 2014-15 19,656 (19,656) - 464,530 4.23% 2015-16 280,440 (280,440) - 89,988 311.64% 2016-17 313,887 (313,887) - 89,988 348.81% 2017-18 347,304 (347,304) - 92,688 374.70% 2018-19 410,556 (410,556) - 95,468 430.04% 2019-20 420,125 (420,125) - 97,975 428.81% 2020-21 469,389 (469,389) - 97,618 480.84% 2021-22 524,033 (524,033) - - 0.00% 2022-23 589,515 (589,515) - - 0.00% Notes to Schedule
Valuation date: 6/30/2021
Change in Benefit Terms: None
Changes in Assumptions: Changes of Assumptions: In 2022, the discount rate was reduced from 7.15 percent to 6.90 percent. There were no changes in assumptions in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Successor Agency Plan - 1414
As of June 30, 2023
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 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.

City of San Bernardino
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios For the Fiscal Year Ended June 30, 2023

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Measurement period, year ended: 2016-17 1
2017-18 2018-19 2019-20 2020-21 2021-22
Total OPEB liability
Service cost 1,036,000$ 1,067,080$ 1,312,778$ 1,352,161$ 956,228$ 984,915$ Interest 2,322,000 2,449,681 2,512,269 2,651,878 2,240,570 2,336,141 Changes of benefit terms - (640,849) - - - - Differences between expected and actual experience - 523,834 - (6,747,960) - (3,119,394) Changes of assumptions - (1,065,369) - (1,784,735) - (2,619,432) Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) (1,658,421) (1,654,270) (1,738,412) Net change in total OPEB liability 2,240,000 779,988 2,222,115 (6,187,077) 1,542,528 (4,156,182) Total OPEB liability - beginning 36,665,000 38,905,000 39,684,988 41,907,103 35,720,026 37,262,554 Total OPEB liability - ending (a) 38,905,000$ 39,684,988$ 41,907,103$ 35,720,026$ 37,262,554$ 33,106,372$ OPEB fiduciary net position
Contributions - employer 2,602,000$ 2,673,389$ 2,615,932$ 2,602,421$ 2,737,270$ 1,738,412$ Net investment income 2,204,000 1,848,262 2,036,956 1,564,423 7,886,756 (4,469,586) Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) (1,658,421) (1,654,270) (1,738,412) Administrative expense (7,000) (7,855) (8,061) (8,657) (10,052) (11,068) Net change in plan fiduciary net position 3,681,000 2,959,407 3,041,895 2,499,766 8,959,704 (4,480,654) Plan fiduciary net position - beginning 18,667,000 22,348,000 25,307,407 28,349,302 30,849,068 39,808,772 Plan fiduciary net position - ending (b) 22,348,000 25,307,407 28,349,302 30,849,068 39,808,772 35,328,118 Plan net OPEB liability - ending (a) - (b) 16,557,000$ 14,377,581$ 13,557,801$ 4,870,958$ (2,546,218)$ (2,221,746)$ Plan fiduciary net position as a percentage of the total OPEB liability 57.44% 63.77% 67.65% 86.36% 106.83% 106.71% Covered payroll2
19,132,000$ 16,768,495$ 17,981,957$ 19,691,462$ 21,203,035$ 25,597,944$ Plan net OPEB liability as a percentage of covered payroll 86.54% 85.74% 75.40% 24.74% -12.01% -8.68% 1 Historical information is presented only for measurement periods for which GASB 75 is applicable. 2 Contributions are not based on employee compensation; therefore, covered-employee payroll is used.

Changes in assumptions: Demographic assumptions were updated to CalPERS 2021 Experience Study.

Benefit changes: New hires after July 1, 2019 receive no Department contributions.

City of San Bernardino
Required Supplementary Information
Schedule of Contributions – OPEB
For the Fiscal Year Ended June 30, 2023

- 136 -

Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Percentage of
Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 2
(Excess) Payroll Payroll
2017-18 1
2,592,000$ (2,673,389)$ (81,389)$ 16,768,495$ 15.94% 2018-19 2,760,000 ( 2,615,932) 144,068 17,981,957 14.55% 2019-20 2,728,000 (2,602,421) 125,579 19,691,462 13.22% 2020-21 1,652,000 (2,737,270) (1,085,270) 21,203,035 12.91% 2021-22 1,572,000 (1,738,412) (166,412) 25,597,944 6.79% 2022-23 1,559,000 (2,327,743) (768,743) 28,172,331 8.26% Notes to Schedule
Valuation date: 6/30/2022
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method/period
Asset valuation method Fair value; investment gains/losses recognized over 5-year rolling period Inflation 2.50%
Discount rate 6.25%
Healthcare cost-trend rates
Mortality
Mortality improvement 80% of Scale MP-2020
1 Historical information is presented only for measurement periods for which GASB 75 is applicable. 2 Employers are a ssumed 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.

Level percentage of pay
Non-Medicare - 6.8% for 2023, decreasing to an ultimate rate of 3.9% in 2076; Medicare - 5.4% for 2023, decreasing to an ultimate rate of 3.9% in 2076 CalPERS 2021 Experience Study
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2022-23 were from the June 30, 2022 actuarial valuation.

COMBINING FINANCIAL STATEMENTS AND SCHEDULES
City of San Bernardino
Non-Major Governmental Funds

- 137 -
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Opioid Settlement Fund – This fund is used to account for the federal and state distributions received as part of the National Opioid Settlement. The funds are restricted for use on certain priorities for reducing opioid -related deaths and investing in substance use disorder prevention, treatment, and recovery infrastructure.

Cable TV Fund – This fund is used to account for the regulatory oversight of the City ’s cable companies for franchise compliance, consumer protection, and franchise renewal negotiations, as well as operating two access channels.

Asset Seizure Fund – This fund is used for the investigation, detection, and prosecution of criminal ac tivities. Funding is provided by criminal assets seized under existing state and federal statutes.

Low and Moderate Income Housing Fund – This fund is used for the continued maintenance and operations of low and moderate income housing project activities of the former redevelopment agency. This fund was established on February 1, 2012, when the City elected to become the Housing Successor to the housing related activities of the former redevelopment agency.

Alternative Transportation Fund – This fund is used to account for the receipt and disbursement of funds received per Assembly Bill 2766, which imposed an additional registration fee on motor vehicles. These revenues are to be used to reduce air pollution from mobile sources and for related planning, m onitoring, enforcement, and technical studies necessary for the implementation of the California Clean Air Act of 1988.

RMRA G as Tax Fund – This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California for SB-1. These funds are transferred to the General Fund to partially support maintenance activities and to finance street construction projects as provided by State law.

Special G as Tax Fund – This fund is used to account for the receipt of gasoline tax revenue paid to the City as a subvention from the State of California. These funds are transferred to the General Fund to partially support maintenance activities and to finance street construction projects as provided by State law.

Traffi c Safety Fund – This fund is used for the recording of the City ’s share of California Vehicle Code fines collected by San Bernardino County.

City of San Bernardino
Non-Major Governmental Funds

- 138 -
Special Revenue Funds (Continued)
Measure I Fund – This fund is used to account for the local street improvements as provided for by the San Bernardino County Measure I Sales Tax.

Sewerline Maintenance Fund – This fund is used to account for the cost of maintaining sewer lines as paid for from a portion of sewer revenues.

Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Verdemont Fund – This fund is used to account for development fees collected for improvements in the Verdemont area.

Park Construction Fee Fun d – This fund is used for park land acquisition and development.

Principal revenue sources are parks acquisition and development fees collected from developers and state revenues for park development.

Sewerline Construc tion Fund – This fund is used for construction of sewer collection systems from development revenues.

Storm Drain Construction Fund – This fund is used for construction of storm drain facilities through the City from development revenues.

Special Assess ments Fun d – This fund is used to account for assessment districts related to improvement, construction, and maintenance, including landscape maintenance, sewerline maintenance, and security paid by assessments on properties.

Cultural Development Construc tion Fee Fund – This fund is used for collection of development fees used to pay for cultural improvements and activities.

Impact Fees Fund – This fund is used to account for the specific revenue sources that are legally restricted to fund expenditures from developer impact fees.

Public Improvements Fund – This fund is used for maintenance and construction of improvements around the Indian Bingo Casino located on the reservation.

Prop 1B Local Street Fund – This fund was established to account for monies received from the State through Prop 1B. This proposition provided $19 billion in bond funds for a variety of transportation projects, including $2 billion for cities and counties for maintenance and improvements of local transportation facilities.

City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023

- 139 -

Low and
Moderate
Income
Opioid Asset Housing Alternative
Settlement Cable TV Seizure Fund Transportation
ASSETS
Cash and investments 333,372$ 1,259,386$ 2,753,599$ 6,584,920$ 495,377$ Receivables:

Accounts, Net - 53,992 - 300 - Interest 206 1,627 3,792 8,768 468 Due from other governments - - - - 149,045 Property held for resale - - - 12,425,798 - Total assets 333,578$ 1,315,005$ 2,757,391$ 19,019,786$ 644,890$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable -$ 12,960$ 6,236$ -$ 13,935$ Accrued liabilities - - - - - Payroll and related liabilities - - - - - Deposits payable - - - - - Retentions payable - - - - - Unearned revenue 332,383 - - - - Total liabilities 332,383 12,960 6,236 - 13,935 Deferred inflows of resources:

Unavailable revenues - - - - 73,653 Total deferred inflows of resources - - - - 73,653 Fund Balances:

Restricted
Housing - - - 19,019,786 - Street improvements - - - - - Cable TV - 1,302,045 - - - Law enforcement - - 2,751,155 - - Transportation - - - - 557,302 Sewer - - - - - Capital projects - - - - - Opioid Settlement 1,195
Total fund balances 1,195 1,302,045 2,751,155 19,019,786 557,302 Total liabilities, deferred inflows of
resources, and fund balances 333,578$ 1,315,005$ 2,757,391$ 19,019,786$ 644,890$ Special Revenue
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023

- 140 -

RMRA Special Traffic Measure I Sewerline
Gas Tax Gas Tax Safety Fund Maintenance
ASSETS
Cash and investments 4,360,725$ 2,582,139$ 3,671,625$ 9,561,454$ 23,417$ Receivables:

Accounts, Net - - - - - Interest 5,169 3,867 5,331 15,640 30 Due from other governments 873,825 494,933 210,122 2,049,590 - Property held for resale - - - - - Total assets 5,239,719$ 3,080,939$ 3,887,078$ 11,626,684$ 23,447$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 668,212$ 884,536$ -$ 304,262$ -$ Accrued liabilities - - - 532,535 - Payroll and related liabilities - 25,727 - 500 - Deposits payable - - - - - Retentions payable 258,467 - - 286,648 - Unearned revenue - - - - - Total liabilities 926,679 910,263 - 1,123,945 - Deferred inflows of resources:

Unavailable revenues - - - 505,119 - Total deferred inflows of resources - - - 505,119 - Fund Balances:

Restricted
Housing - - - - - Street improvements 4,313,040 2,170,676 - 9,997,620 - Cable TV - - - - - Law enforcement - - - - - Transportation - - 3,887,078 - - Sewer - - - - 23,447 Capital projects - - - - - Opioid Settlement
Total fund balances 4,313,040 2,170,676 3,887,078 9,997,620 23,447 Total liabilities, deferred inflows of
resources, and fund balances 5,239,719$ 3,080,939$ 3,887,078$ 11,626,684$ 23,447$ Special Revenue
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023

- 141 -

Park Storm
Construction Sewerline Drain Special
Verdemont Fee Construction Construction Assessments
ASSETS
Cash and investments 373,559$ 147,493$ 137,250$ 11,987,260$ 973,122$ Receivables:

Accounts, Net - - - - - Interest 486 192 179 16,123 - Due from other governments - - - - 9,269 Property held for resale - - - - - Total assets 374,045$ 147,685$ 137,429$ 12,003,383$ 982,391$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ -$ 64,642$ Accrued liabilities - - - - - Payroll and related liabilities - - - 227 - Deposits payable - - - - 34,569 Retentions payable - - - 2,000 - Unearned revenue - - - - - Total liabilities - - - 2,227 99,211 Deferred inflows of resources:

Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances:

Restricted
Housing - - - - - Street improvements - - - - - Cable TV - - - - - Law enforcement - - - - - Transportation - - - - - Sewer - - - - - Capital projects 374,045 147,685 137,429 12,001,156 883,180 Opioid Settlement
Total fund balances 374,045 147,685 137,429 12,001,156 883,180 Total liabilities, deferred inflows of
resources, and fund balances 374,045$ 147,685$ 137,429$ 12,003,383$ 982,391$ Capital Projects
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023

- 142 -

Cultural Total
Development Prop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements Street Funds
ASSETS
Cash and investments 5,622,558$ 23,432,081$ 423,408$ 64,940$ 74,787,685$ Receivables:

Accounts, Net - 153,205 - - 207,497 Interest 7,508 30,504 538 84 100,512 Due from other governments - 119,325 - - 3,906,109 Property held for resale - - - - 12,425,798 Total assets 5,630,066$ 23,735,115$ 423,946$ 65,024$ 91,427,601$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 75,505$ 836,983$ -$ -$ 2,867,271$ Accrued liabilities 13,762 - - - 546,297 Payroll and related liabilities - 1,371 - - 27,825 Deposits payable - - - - 34,569 Retentions payable 1,073 416,855 - - 965,043 Unearned revenue - - - - 332,383 Total liabilities 90,340 1,255,209 - - 4,773,388 Deferred inflows of resources:

Unavailable revenues - - - - 578,772 Total deferred inflows of resources - - - - 578,772 Fund Balances:

Restricted
Housing - - - - 19,019,786 Street improvements - - - - 16,481,336 Cable TV - - - - 1,302,045 Law enforcement - - - - 2,751,155 Transportation - - - - 4,444,380 Sewer - - - - 23,447 Capital projects 5,539,726 22,479,906 423,946 65,024 42,052,097 Opioid Settlement 1,195
Total fund balances 5,539,726 22,479,906 423,946 65,024 86,075,441 Total liabilities, deferred inflows of
resources, and fund balances 5,630,066$ 23,735,115$ 423,946$ 65,024$ 91,427,601$ (Concluded)
Capital Projects
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2023

- 143 -

Low and
Moderate
Income
Opioid Asset Housing Alternative
Settlement Cable TV Seizure Fund Transportation
REVENUES:

Taxes -$ 299,573$ -$ -$ -$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 1,195 13,276 16,485 191,412 8,909 Intergovernmental - 1,410 531,025 369,534 218,197 Charges for services - - - - - Total revenues 1,195 314,259 547,510 560,946 227,106 EXPENDITURES:

Current:

General government - 211,241 - - 9,432 Public safety - - 192,723 - - Public works - - - - 12,835 Culture and recreation - - - - - Community development - - - 4,047 - Community service - - - - - Total expenditures - 211,241 192,723 4,047 22,267

REVENUES OVER
(UNDER) EXPENDITURES 1,195 103,018 354,787 556,899 204,839 OTHER FINANCING SOURCES (USES):

Transfers in - - - - 68,357 Total other financing sources (uses) - - - - 68,357 CHANGE IN FUND BALANCES 1,195 103,018 354,787 556,899 273,196 FUND BALANCES (DEFICIT):

Beginning of year - 1,199,027 2,396,368 18,462,887 284,106 End of year 1,195$ 1,302,045$ 2,751,155$ 19,019,786$ 557,302$ Special Revenue
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2023

- 144 -

RMRA Special Traffic Me asure I Sewerline
Gas Tax Gas Tax Safety Fund Maintenance
REVENUES:

Taxes -$ -$ -$ 5,921,861$ -$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - 877,367 - - Use of money and property 21,754 3 ,600 11,667 106,766 248 Intergovernmental 4,986,736 5 ,636,710 8,982 - - Charges for services - - - - - Total revenues 5,008,490 5,640,310 898,016 6,028,627 248 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works 1,481,154 4,571,541 - 7,457,406 - Culture and recreation - - - - - Community development - - - - - Community service - - 101,078 - Total expenditures 1,481,154 4,571,541 - 7,558,484 -

REVENUES OVER
(UNDER) EXPENDITURES 3,527,336 1,068,769 898,016 (1,529,857) 248 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Total other financing sources (uses) - - - - - CHANGES IN FUND BALANCES 3,527,336 1,068,769 898,016 (1,529,857) 248 FUND BALANCES (DEFICIT):

Beginning of year 785,704 1,101,907 2,989,062 11,527,477 23,199 End of year 4,313,040$ 2,170,676$ 3,887,078$ 9,997,620$ 23,447$ Special Revenue
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2023

- 145 -

Park Storm
Construction S ewerline Drain Special
Verdemont Fee Construction Construction Assessments
REVENUES:

Taxes -$ -$ -$ -$ 1,370,328$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 3,955 1 ,562 1,417 88,921 - Intergovernmental - - - - - Charges for services - - 1,300 1,568,345 - Total revenues 3,955 1,562 2,717 1,657,266 1,370,328 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works - - - 213,381 976,059 Culture and recreation - - - - - Community development - - - - - Community service - - - - - Total expenditures - - - 213,381 976,059

REVENUES OVER
(UNDER) EXPENDITURES 3,955 1,562 2,717 1,443,885 394,269 OTHER FINANCING SOURCES (USES):

Transfers in - - - - 115,996 Total other financing sources (uses) - - - - 115,996 CHANGES IN FUND BALANCES 3,955 1,562 2,717 1,443,885 510,265 FUND BALANCES (DEFICIT):

Beginning of year 370,090 146,123 134,712 10,557,271 372,915 End of year 374,045$ 147,685$ 137,429$ 12,001,156$ 883,180$ Capital Projects
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2023

- 146 -

Cultural Total
Development P rop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements S treet Funds
REVENUES:

Taxes -$ -$ -$ -$ 7,591,762$ Licenses and Permits 564,204 - - - 564,204 Impact fees - 4 ,368,737 - - 4,368,737 Fines and forfeitures - - - - 877,367 Use of money and property 53,117 3 19,546 4,991 687 849,508 Intergovernmental - 1 33,237 - - 11,885,831 Charges for services - - - - 1,569,645 Total revenues 617,321 4,821,520 4,991 687 27,707,054 EXPENDITURES:

Current:

General government 51,283 - - - 271,956 Public safety - - - - 192,723 Public works 128,980 7,478,403 - - 22,319,759 Culture and recreation 3,406 - - - 3,406 Community development 102,891 556,611 - - 663,549 Community service 189,803 - - - 290,881 Total expenditures 476,363 8,035,014 - - 23,742,274

REVENUES OVER
(UNDER) EXPENDITURES 140,958 (3,213,494) 4,991 687 3,964,780 OTHER FINANCING SOURCES (USES):

Transfers in - - - - 184,353 Total other financing sources (uses) - - - - 184,353 CHANGES IN FUND BALANCES 140,958 (3,213,494) 4,991 687 4,149,133 FUND BALANCES (DEFICIT):

Beginning of year 5,398,768 25,693,400 418,955 64,337 81,926,308 End of year 5,539,726$ 22,479,906$ 423,946$ 65,024$ 86,075,441$ (Concluded)
Capital Projects
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cable TV Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 147 -
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes 270,000$ 270,000$ 299,573$ 29,573$
Use of money and property 8,500 8,500 13,276 4,776 Intergovernmental 7,000 7,000 1,410 (5,590) Total revenues 285,500 285,500 314,259 28,759 EXPENDITURES:

Current:

General government
City manager 285,500 312,500 211,241 101,259 Total expenditures 285,500 312,500 211,241 101,259 CHANGE IN FUND BALANCE -$ (27,000)$ 103,018 130,018$ FUND BALANCE:

Beginning of year 1,199,027
End of year 1,302,045$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Asset Seizure Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 148 -

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 7,500$ 7,500$ 16,485$ 8,985$ Intergovernmental - - 531,025 531,025 Total revenues 7,500 7,500 547,510 540,010 EXPENDITURES:

Current:

Public safety
Police 357,800 373,211 192,723 180,488 Total expenditures 357,800 373,211 192,723 180,488

REVENUES OVER
(UNDER) EXPENDITURES (350,300) (365,711) 354,787 720,498 CHANGE IN FUND BALANCE (350,300)$ (365,711)$ 354,787 720,498$ FUND BALANCE:

Beginning of year 2,396,368
End of year 2,751,155$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Low and Moderate Income Housing Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 149 -

Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 510,000$ 510,000$ 191,412$ (318,588)$ Intergovernmental 500,000 1,178,400 369,534 (808,866) Total revenues 1,010,000 1,688,400 560,946 (1,127,454) EXPENDITURES:

Current:

Community development 445,000 445, 000 4,047 440,953 Total expenditures 445,000 445, 000 4,047 440,953

REVENUES OVER
(UNDER) EXPENDITURES 565,000 1,243,400 556,899 (1,568,407) CHANGE IN FUND BALANCE 565,000.00$ 1,243,400$ 556,899 (686,501)$ FUND BALANCE:

Beginning of year 18,462,887
End of year 19,019,786$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Alternative Transportation Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 150 -
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

U
se of money and property 3,500$ 3,500$ 8,909$ 5,409$ Intergovernmental 200,000 200,000 218,197 18,197 Total revenues 203,500 203,500 227,106 23,606 EXPENDITURES:

Current:

General government
City manager 12,400 12,400 9,432 2,968 Public works - 315,500 12,835 302,665 Total expenditures 12,400 327,900 22,267 305,633

REVENUES OVER
(UNDER) EXPENDITURES 191,100 (124,400) 204,839 (282,027) OTHER FINANCING SOURCES (USES):

Transfers in - - 68,357 68,357 Total other financing sources (uses) - - 68,357 68,357 CHANGE IN FUND BALANCE 191,100$ (124,400)$ 273,196 397,596$ FUND BALANCE:

Beginning of year 284,106
End of year 557,302$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual RMRA Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 151 -
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 25,000$ 25,000$ 21,754$ (3,246)$ Intergovernmental 3,775,000 3,775,000 4,986,736 1,211,736 Total revenues 3,800,000 3,800,000 5,008,490 1,208,490 EXPENDITURES:

Current:

Public works - 6,843,892 1,481,154 5,362,738 Total expenditures - 6,843,892 1,481,154 5,362,738

REVENUES OVER
(UNDER) EXPENDITURES 3,800,000 (3,043,892) 3,527,336 6,571,228 CHANGE IN FUND BALANCE 3,800,000$ (3,043,892)$ 3,527,336 6,571,228$ FUND BALANCE:

Beginning of year 785,704
End of year 4,313,040$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 152 -
Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 5,000$ 5,000$ 3,600$ (1,400)$ Intergovernmental 4,995,000 4,995,000 5,636,710 641,710 Total revenues 5,000,000 5,000,000 5,640,310 640,310 EXPENDITURES:

Current:

Public works 4,959,492 5,248,520 4,571,541 676,979 Total expenditures 4,959,492 5,248,520 4,571,541 676,979

REVENUES OVER
(UNDER) EXPENDITURES 40,508 (248,520) 1,068,769 (36,669) CHANGE IN FUND BALANCE 40,508$ (248,520)$ 1,068,769 1,317,289$ FUND BALANCE:

Beginning of year 1,101,907
End of year 2,170,676$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic Safety Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 153 -
Variance with
Final Budget
A
ctual Positive
Original Final Amounts (Negative)
REVENUES:

Fines and forfeitures 750,000$ 750,000$ 877,367$ 127,367$ Use of money and property 10,000 10,000 11,667 1,667 Intergovernmental - - 8,982 8,982 Total revenues 760,000 760,000 898,016 138,016 CHANGE IN FUND BALANCE 760,000$ 760,000$ 898,016 138,016$ FUND BALANCE:

Beginning of year 2,989,062
End of year 3,887,078$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure I Special Revenue Fund
For the Fiscal Year Ended June 30, 2023

- 154 -
Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Taxes 4,772,000$ 4,772,000$ 5,921,861$ 1,149,861$ Use of money and property 28,000 28,000 106,766 78,766 Total revenues 4,800,000 4,800,000 6,028,627 1,228,627 EXPENDITURES:

Current:

Public works - 19,698,638 7,457,406 12,241,232 Community development - 1,000,000 - 1,000,000 Community service - 1,888,270 101,078 1,787,192 Total expenditures - 22,586,908 7,558,484 15,028,424 CHANGE IN FUND BALANCE 4,800,000$ (17,786,908)$ (1,529,857) 16,257,051$ FUND BALANCE:

Beginning of year 11,527,477
End of year 9,997,620$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Storm Drain Construction Capital Projects Fund
For the Fiscal Year Ended June 30, 2023

- 155 -
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 30,000$ 30,000$ 88,921$ 58,921$ Charges for services 1,970,000 1,970,000 1,568,345 (401,655) Total revenues 2,000,000 2,000,000 1,657,266 (342,734) EXPENDITURES:

Current:

Public works - 12,355,714 213,381 12,142,333 Community development - 2,500,000 - 2,500,000 Total expenditures - 14,855,714 213,381 14,642,333 CHANGE IN FUND BALANCE 2,000,000$ (12,855,714)$ 1,443,885 14,299,599$ FUND BALANCE:

Beginning of year 10,557,271
End of year 12,001,156$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Assessments Capital Projects Fund
For the Fiscal Year Ended June 30, 2023

- 156 -
Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Taxes -$ 1,290,445$ 1,370,328$ 79,883$ Total revenues - 1,290,445 1,370,328 79,883 EXPENDITURES:

Current:

Public works 12,850 1,489,751 976,059 513,692 Total expenditures 12,850 1,489,751 976,059 513,692

REVENUES OVER
(UNDER) EXPENDITURES (12,850) (199,306) 394,269 (433,809) OTHER FINANCING SOURCES (USES):

Transfers in - 115,996 115,996 - Total other financing sources (uses) - 115,996 115,996 - CHANGE IN FUND BALANCE (12,850)$ (83,310)$ 510,265 593,575$ FUND BALANCE (DEFICIT):

Beginning of year 372,915
End of year 883,180$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cultural Development Construction Fee Capital Projects Fund For the Fiscal Year Ended June 30, 2023

- 157 -
Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Licenses and Permits 835,000$ 835,000$ 564,204$ (270,796)$ Use of money and property 15,000 15,000 53,117 38,117 Total revenues 850,000 850,000 617,321 (232,679) EXPENDITURES:

Current:

General government
Nondepartmental - 100,000 51,283 48,717 Public works - 129,660 128,980 680 Culture and recreation
Park, recreation, and community services - 253,542 3,406 250,136 Community development - 350, 000 102,891 247,109 Community service - 610, 420 189,803 420,617 Total expenditures - 1,443,622 476,363 967,259 CHANGE IN FUND BALANCE 850,000$ (593,622)$ 140,958 734,580$ FUND BALANCE:

Beginning of year 5,398,768
End of year 5,539,726$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Impact Fees Capital Projects Fund
For the Fiscal Year Ended June 30, 2023

- 158 -
Variance with
Final Budget
Actual P ositive
Original Final Amounts (Negative)
REVENUES:

Impact fees 3,755,000$ 3,755,000$ 4,368,737$ 613,737$ Use of money and property 40,000 40,000 319,546 279,546 Intergovernmental - - 133,237 133,237 Total revenues 3,795,000 3,795,000 4,821,520 1,026,520 EXPENDITURES:

Current:

Public works - 20,119,964 7,478,403 12,641,561 Culture and recreation
Park, recreation, and community services - 5,450 - 5,450 Community development - 2,491,067 556,611 1,934,456 Total expenditures - 22,616,481 8,035,014 14,581,467 CHANGE IN FUND BALANCE 3,795,000$ (18,821,481)$ (3,213,494) 15,607,987$ FUND BALANCE:

Beginning of year 25,693,400
End of year 22,479,906$
Budgeted Amounts

City of San Bernardino
Internal Service Funds

- 159 -
Internal Service Funds

Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis.

The City maintains the following Internal Service Funds for the purposes indicated:

Workers ’ Compensation Fund – This fund is for administration of the City ’s self-insurance for workers’ compensation.

Liability Insurance Fund – This fund is for the administration of the City ’s liability claims, combined self-insurance and umbrella coverage for liability.

Motorpool Fund – This fund is used to account for the maintenance and operating costs for the City’s fleet of vehicles.

Information Systems Fund – This fund is used to account for the acquisition and maintenance of the City’s computer and emergency communications systems.

City of San Bernardino
Combining Statement of Net Position
Internal Service Funds
June 30, 2023

- 160 -
Workers' Liability I nformation
Compensation Insurance Motorpool Systems Total
ASSETS
Current assets:

Cash and cash equivalents 3 ,143,010$ 27,731,391$ -$ 5,208,951$ 36,083,352$ Accounts receivable, net 26,666 18,908 125,000 - 170,574 Interest receivable 2,862 17,957 248 7,615 28,682 Due from other governments - - 372 - 372 Due from other funds - 2,100,522 - - 2,100,522 Inventories - - 205,340 - 205,340 Prepaid items - 200,000 36,403 53,974 290,377 Total current assets 3,172,538 30,068,778 367,363 5,270,540 38,879,219 Noncurrent assets:

Depreciable capital assets, net - - 3,131,144 833,733 3,964,877 Total capital assets, net - - 3,131,144 833,733 3,964,877 Total noncurrent assets - - 3,131,144 833,733 3,964,877 Total assets 3,172,538 30,068,778 3,498,507 6,104,273 42,844,096

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 165,370 175,705 974,993 2,397,862 3,713,930 Total deferred outflows of resources 165,370 175,705 974,993 2,397,862 3,713,930

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 66,581 600,549 249,129 226,612 1,142,871 Payroll and related liabilities 8,814 8,815 45,002 110,039 172,670 Due to other funds - - 2,100,522 - 2,100,522 Interest payable - - 8,064 8,611 16,675 Current portion of compensated absences 434 434 21,215 76,545 98,628 Current portion of lease liabilities - - 280,905 4,835 285,740 Current portion of subscription liabilities - - - 160,666 160,666 Current portion of claims payable 2,968,300 11,211,928 - - 14,180,228 Current portion of long term debt - 200,000 - - 200,000 Total current liabilities 3,044,129 12,021,726 2,704,837 587,308 18,358,000 Noncurrent liabilities:

Aggregate net pension liability 5 98,544 635,953 3,528,913 8,678,883 13,442,293 Compensated absences 1,012 1,012 49,502 178,606 230,132 Lease liabilities - - 1,124,273 15,354 1,139,627 Subscription liabilities - - - 159,129 159,129 Claims payable 17,375,822 19,122,715 - - 36,498,537 Total noncurrent liabilities 17,975,378 19,759,680 4,702,688 9,031,972 51,469,718 Total liabilities 21,019,507 31,781,406 7,407,525 9,619,280 69,827,718

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 7 ,458 7,924 43,972 108,143 167,497 Total deferred inflows of resources 7,458 7,924 43,972 108,143 167,497

NET POSITION (DEFICIT)
Net investment in capital assets - - 3,131,144 833,733 3,964,877 Unrestricted (deficit) (17,689,057) (1,544,847) (6,109,141) (2,059,021) (27,402,066) Total net position (17,689,057)$ (1,544,847)$ (2,977,997)$ (1,225,288)$ (23,437,189)$ City of San Bernardino
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2023

- 161 -

Workers' Liability Information
Compensation Insurance Motorpool Systems Total
OPERATING REVENUES:

Charges for services 6,094,558$ 20,730,140$ 4,948,188$ 7,437,715$ 39,210,601$ Other operating revenues 25,018 44,769 - - 69,787 Total operating revenues 6,119,576 20,774,909 4,948,188 7,437,715 39,280,388 OPERATING EXPENSES:

Cost of sales and services 1,329,210 3,680,342 4,216,600 5,815,165 15,041,317 Claims expense 4,817,371 17,166,392 - - 21,983,763 Amortization - - 131,995 130,882 262,877 Depreciation - - 344,297 86,194 430,491 Total operating expenses 6,146,581 20,846,734 4,692,892 6,032,241 37,718,448 Operating income (loss) (27,005) (71,825) 255,296 1,405,474 1,561,940 NONOPERATING REVENUES (EXPENSES):

Investment income (expense) 23,895 68,520 1,441 (5,688) 88,168 Interest expense and fiscal charges - - (42,603) (9,091) (51,694) Miscellaneous income - - 2,989 - 2,989 Total nonoperating revenues (expenses) 23,895 68,520 (38,173) (14,779) 39,463 Changes in net position (3,110) (3,305) 217,123 1,390,695 1,601,403 NET POSITION (DEFICIT):

Beginning of year (17,685,947) (1,541,542) (3,195,120) (2,615,983) (25,038,592) End of year (17,689,057)$ (1,544,847)$ (2,977,997)$ (1,225,288)$ (23,437,189)$ City of San Bernardino
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2023

- 162 -

Workers' Liability I nformation
Compensation Insurance Motorpool Systems Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from user departments 6,087,740$ 20,855,881$ 4,677,919$ 7,437,715$ 39,059,255$ Nonoperating miscellaneous revenues (expenses) - - 2,989 - 2,989 Cash payments to suppliers for goods and services (1,152,364) (3,816,780) (1,824,118) (2,192,272) (8,985,534) Cash payments to employees for services (192,376) (213,406) (1,178,876) (2,365,974) (3,950,632) Cash payments for claims and insurance (3,833,738) (4,933,782) - - (8,767,520) Cash inflows (outflows) from other activities 25,018 44,769 - - 69,787 Net cash provided by
operating activities 934,280 11,936,682 1,677,914 2,879,469 17,428,345

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets - - (1,636,752) (940,450) (2,577,202) Principal paid on long-term debt - (200,000) - - (200,000) Interest paid - - - (9,091) (9,091) Net cash (used in) capital and
related financing activities - (200,000) (1,636,752) (949,541) (2,786,293)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

I
nterfund borrowing - - (42,603) - (42,603) Net cash (used in) noncapital
financing activities - - (42,603) - (42,603) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (expense) 23,000 59,773 1,441 (10,575) 73,639 Net cash provided by (used in) investing activities 23,000 59,773 1,441 (10,575) 73,639 Net change in cash and cash equivalents 957,280 11,796,455 - 1,919,353 14,673,088 CASH AND CASH EQUIVALENTS:

Beginning of year 2,185,730 15,934,936 - 3,289,598 21,410,264 End of year 3,143,010$ 27,731,391$ -$ 5,208,951$ 36,083,352$

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and cash equivalents 3,143,010$ 27,731,391$ -$ 5,208,951$ 36,083,352$ Total cash and cash equivalents 3,143,010$ 27,731,391$ -$ 5,208,951$ 36,083,352$ City of San Bernardino
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2023

- 163 -

Workers' Liability I nformation
Compensation Insurance Motorpool Systems Total

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

Operating income (loss) (27,005)$ (71,825)$ 255,296$ 1,405,474$ 1,561,940$ Nonoperating miscellaneous revenues - - 2,989 - 2,989 Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization - - 476,292 217,076 693,368 Changes in operating assets and liabilities:

Receivables, net (6,818) (18,908) (125,248) - (150,974) Due from other governments - - (372) (372) Inventories - - (14,807) - (14,807) Prepaid items - (200,000) (36,403) (53,974) (290,377) Due from other funds - 144,649 - - 144,649 Pension-related deferred outflows of resources (96,104) (91,327) (584,588) (1,605,719) (2,377,738) Accounts payable and accrued liabilities 38,784 (14,296) 50,579 165,754 240,821 Payroll and related liabilities 2,795 2,796 13,518 39,049 58,158 Due to other funds - - (144,649) - (144,649) Aggregate net pension liability 200,162 150,651 1,283,486 4,122,840 5,757,139 Compensated absences 810 810 (398) 69,946 71,168 Claims payable 983,633 12,232,610 - - 13,216,243 Lease liabilities - - 1,413,242 28,800 1,442,042 Subscription liabilities - - 319,795 319,795 Pension-related deferred inflows of resources (161,977) (198,478) (911,023) (1,829,572) (3,101,050) Total adjustments 961,285 12,008,507 1,419,629 1,473,995 15,863,416 Net cash provided by operating activities 934,280$ 11,936,682$ 1,677,914$ 2,879,469$ 17,428,345$

STATISTICAL SECTION

- 164 -

Net Position by Component 165
Changes in Net Position 167
Fund Balances of Governmental Funds 171
Changes in Fund Balances of Governmental Funds 173
Tax Revenues by Source - Governmental Funds 175
Assessed Value and Estimated Actual Value of Taxable Property 176 Taxable Sales by Category 177
Principal Sales Tax Remitters 179
Direct and Overlapping Property Tax Rates 180
Principal Property Taxpayers 181
Property Tax Levies and Collections 182
Top 10 Customers - Water and Sewer Treatment 183
Connections and Revenues by User Type - Water 184
Water Rate History - Minimum Monthly Charge 185
Sewer Treatment Rate History 186
Ratio of Outstanding Debt by Type 187
Ratio of General Bonded Debt Outstanding 189
Schedule of Direct and Overlapping Bonded Debt 190
Legal Debt Margin 191
Debt Service Coverage 193
Demographic and Economic Statistics 194
Budgeted Full-Time and Part-Time Positions by Function 195 Capital Asset Statistics 196
Operating Indicators by Function 197
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.

Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments.

Operating Information - These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This section of the City of San Bernardino's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Financial Trends Schedules - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity Schedules - These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes, as well as proprietary revenues for the City's Water, Sewer Treatment, and Sewer Collection services.

Debt Capacity Schedules - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

City of San Bernardino
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 165 -

2014 2015 2016 2017 2018
Governmental activities:

Net investment in capital assets 366,632,191$ 357,760,150$ 346,538,460$ 316,218,375$ 291,168,979$ Restricted 117,670,005 100,668,315 126,717,096 106,923,136 114,629,131 Unrestricted (74,661,663) (384,440,896) (388,600,709) (257,124,872) (306,072,272) Total governmental activities
net position 409,640,533$ 73,987,569$ 84,654,847$ 166,016,639$ 99,725,838$ Business-type activities:

Net investment in capital assets 206,293,601$ 223,104,368$ 235,670,073$ 2 50,399,481$ 248,654,078$ Restricted 61,537,004 60,084,163 58,331,021 7,944,758 8,363,037 Unrestricted 10,563,420 (47,561,359) (39,100,089) 29,139,574 26,485,780 Total primary government
net position 278,394,025$ 235,627,172$ 254,901,005$ 287,483,813$ 283,502,895$ Primary government:

Net investment in capital assets 572,925,792$ 580,864,518$ 582,208,533$ 566,617,856$ 539,823,057$ Restricted 179,207,009 160,752,478 185,048,117 114,867,894 122,992,168 Unrestricted (64,098,243) (432,002,255) (427,700,798) (227,985,298) (279,586,492) Total primary government
net position 688,034,558$ 309,614,741$ 339,555,852$ 453,500,452$ 383,228,733$ Fiscal Year
City of San Bernardino
Net Position by Component (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 166 -

2019 2020 2021 2022 2023
Governmental activities:

Net investment in capital assets 286,878,015$ 282,634,784$ 284,425,516$ 278,068,994$ 284,096,740$ Restricted 98,129,481 101,171,196 97,769,749 103,016,330 108,916,462 Unrestricted (306,956,031) (334,495,248) (305,105,274) (228,403,516) (216,955,069) Total governmental activities
net position 78,051,465$ 49,310,732$ 77,089,991$ 152,681,808$ 176,058,133$ Business-type activities:

Net investment in capital assets 259,671,498$ 255,270,720$ 253,288,732$ 2 50,216,752$ 251,609,753$ Restricted 33,999,584 0 - - 2,221,746.00 Unrestricted 2,566,757 53,071,115 63,930,908 84,060,848 91,742,645 Total business-type activities
net position 296,237,839$ 308,341,835$ 317,219,640$ 334,277,600$ 345,574,144$ Primary government:

Net investment in capital assets 546,549,513$ 537,905,504$ 537,714,248$ 528,285,746$ 535,706,493$ Restricted 132,129,065 101,171,196 97,769,749 103,016,330 111,138,208 Unrestricted (304,389,274) (281,424,133) (241,174,366) (144,342,668) (125,212,424) Total primary government
net position 374,289,304$ 357,652,567$ 394,309,631$ 486,959,408$ 521,632,277$ Fiscal Year
City of San Bernardino
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 167 -

2014 2015 2016 2017 2018
Expenses:

Governmental activities:

General Government 18,045,239$ 23,792,572$ 29,434,611$ 41,953,597$ 29,093,189$ Public Safety 90,844,424 93,758,051 85,867,627 74,606,563 97,710,294 Public Works 28,371,459 29,610,950 32,928,851 32,621,290 33,332,099 Culture and Recreation 8,053,521 10,805,969 7,589,992 6,504,874 8,474,953 Community Development 2,944,616 3,060,294 4,443,029 5,085,625 4,808,376 Community Service 6,062,512 5,684,705 3,261,649 2,233,081 2,723,132 Interest on long-term debt 6,324,491 3,994,357 3,713,051 1,046,882 1,126,611 Total governmental activities
expenses 160,646,262 170,706,898 167,238,810 164,051,912 177,268,654 Business-type activities:

Integrated Waste 20,306,358 19,640,062 15,323,676 1,183,561 1,177,266 Water 36,303,452 35,673,702 34,941,060 40,205,419 36,461,897 Sewer 23,753,540 19,501,609 20,015,296 26,638,434 25,258,155 Sewer Collection - - - 1,054,866 11,667,157 Total business-type activities
expenses 80,363,350 74,815,373 70,280,032 69,082,280 74,564,475 Total primary government
expenses 241,009,612 245,522,271 237,518,842 233,134,192 251,833,129 Program revenues:

Governmental activities:

Charges for services:

General Government 2,496,930 2,459,211 6,877,634 2,563,248 3,069,172 Public Safety 5,921,344 5,242,941 5,759,696 4,089,638 4,806,016 Public works 7,907,263 12,826,107 12,388,167 10,850,828 7,380,078 Culture and Recreation 766,853 1,397,431 2,785,816 892,502 1,003,421 Community Development 4,025,505 579,930 5,404,887 4,839,812 4,944,299 Community Service 56,056 104,608 614,304 33,793 37,200 Operating grants and contributions 14,853,177 17,883,362 11,865,542 7,263,130 21,652,775 Capital grants and contributions 11,141,515 9,801,186 9,031,491 8,230,994 283,942 Total governmental activities
program revenues 47,168,643 50,294,776 54,727,537 38,763,945 43,176,903 (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 168 -

2019 2020 2021 2022 2023
Expenses:

Governmental activities:

General Government 29,494,169$ 28,191,734$ 25,164,625$ 25,398,572$ 46,596,788$ Public Safety 98,603,681 106,626,978 95,644,882 74,651,339 113,334,846 Public Works 44,613,103 46,239,864 42,940,416 49,757,465 53,632,428 Culture and Recreation 3,712,899 5,792,349 5,045,667 3,671,063 3,901,250 Community Development 6,679,568 7,583,733 7,428,010 17,254,790 17,593,245 Community Service 4,195,874 4,098,616 9,912,798 14,646,563 16,582,420 Interest on long-term debt 861,785 1,213,813 1,554,305 1,544,198 1,516,651 Total governmental activities
expenses 188,161,079 199,747,087 187,690,703 186,923,990 253,157,628 Business-type activities:

Integrated Waste 777,167 1,393,739 577,590 676,615 624,476 Water 35,988,661 40,581,468 44,406,988 39,503,371 48,552,751 Sewer 27,787,317 27,475,781 29,749,975 28,044,105 42,816,508 Sewer Collection 8,172,922 7,650,504 7,862,447 7,888,065 - Total business-type activities
expenses 72,726,067 77,101,492 82,597,000 76,112,156 91,993,735 Total primary government
expenses 260,887,146 276,848,579 270,287,703 263,036,146 345,151,363 Program revenues:

Governmental activities:

Charges for services:

General Government 1,057,221 1,121,285 1,011,369 2,157,282 2,039,797 Public Safety 7,770,680 6,646,933 4,459,375 5,658,291 5,280,006 Public works 6,158,572 8,217,713 7,771,186 13,413,518 9,247,569 Culture and Recreation 1,416,584 2,993,167 1,811,127 3,821,239 1,496,546 Community Development 3,941,191 4,110,272 6,839,873 5,413,098 5,963,915 Community Service 45,838 29,190 632,308 337,540 757,580 Operating grants and contributions 24,786,515 24,531,954 34,281,088 45,290,554 46,587,633 Capital grants and contributions 270,819 535,026 1,701,504 719,033 - Total governmental activities
program revenues 45,447,420 48,185,540 58,507,830 76,810,555 71,373,046 (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 169 -

2014 2015 2016 2017 2018
Business-Type activities:

Charges for services:

Integrated Waste 24,911,930$ 25,212,322$ 19,547,672$ 644,710$ 503,657$ Water 35,968,790 32,334,811 29,388,782 32,883,423 37,786,156 Sewer 25,350,989 24,399,415 25,030,569 28,022,259 30,030,737 Sewer Collection - - - 2,860,627 7,679,020 Operating grants and contributions 2,030,066 2,089,637 1,696,219 2,047,946 1,776,883 Capital grants and contributions 7,510,777 4,977,945 4,271,325 3,551,138 4,854,784 Total business-type activities
program revenues 95,772,552 89,014,130 79,934,567 70,010,103 82,631,237 Total primary government
program revenues 142,941,195 139,308,906 134,662,104 108,774,048 125,808,140 Net revenues (expenses):

Governmental activities (113,477,619) (120,412,122) (112,511,273) (125,287,967) (134,091,751) Business-type activities 15,409,202 14,198,757 9,654,535 927,823 8,066,762 Total net revenues (expenses) (98,068,417) (106,213,365) (102,856,738) (124,360,144) (126,024,989) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 30,420,582 31,187,510 36,680,419 43,641,309 43,890,011 Property tax 38,885,226 40,571,180 41,344,972 13,749,684 18,498,848 Other taxes 32,573,029 34,554,151 36,498,187 35,491,197 36,806,979 Franchise tax 3,749,762 3,900,853 4,925,012 10,777,853 10,657,848 Investment income (unrestricted) 892,498 856,229 1,613,925 674,345 1,479,966 Other general revenues 4,731,890 4,324,380 4,157,249 3,678,262 4,957,964 Intergovernmental (unrestricted) 2,105 1,001 - - - Gain (loss) on disposal of assets - - (1,130,211) (446,020) (21,932) Extraordinary item:

Annexation of City Fire Dept by County - - (5,010,868) - - Discontinuance of Solid Waste Ops - - (10,069,000) - - Long-Range Property Mgmt Plan - - - 46,766,207 - Loss on transfer of sewer collection operatio - - - (8,376,366) - Chapter 9 Bankruptcy Settlement - - - 76,034,666 - Notes Receivable adjustment - - - - (24,902,675) Transfers 2,200,000 2,200,000 14,168,866 (27,798,309) 590,005 Total governmental activities 113,455,092 117,595,304 123,178,551 194,192,828 91,957,014 Business-type activities
Investment income (unrestricted) 581,185 635,061 875,707 129,944 534,899 Other revenues 1,884,946 2,348,834 2,072,951 1,567,787 1,696,912 Gain (loss) on disposal of assets (11,798) - - (1,123,192) 52,419 Extraordinary item:

Discontinuance of Solid Waste Ops - - 20,839,506 - - Chapter 9 Bankruptcy Settlement - - - 55,787 - Transfers (2,200,000) (2,200,000) (14,168,866) 31,024,659 - Total business-type activities 254,333 783,895 9,619,298 31,654,985 2,284,230 Total primary government 113,709,425 118,379,199 132,797,849 225,847,813 94,241,244 Changes in net position:

Governmental activities (22,527) (2,816,818) 10,667,278 68,904,861 (42,134,737) Business-type activities 15,663,535 14,982,652 19,273,833 32,582,808 10,350,992 Total primary government 15,641,008$ 12,165,834$ 29,941,111$ 101,487,669$ (31,783,745)$ (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 170 -

2019 2020 2021 2 022 2023
Business-Type activities:

Charges for services:

Integrated Waste 500,242$ 5 55,920$ 1,229,328$ 500,051$ 500,029$ Water 38,819,578 3 9,937,495 42,113,517 42,626,315 43,545,629 Sewer 29,849,642 2 9,703,284 29,587,597 33,347,882 44,519,998 Sewer Collection 7,555,960 7 ,656,675 7,759,318 6,306,843 - Operating grants and contributions 1,832,879 1 ,991,747 2,011,099 1,910,435 1,684,006 Capital grants and contributions 10,121,344 4 ,604,699 6,605,556 8,071,944 8,613,085 Total business-type activities
program revenues 88,679,645 8 4,449,820 89,306,415 92,763,470 98,862,747 Total primary government
program revenues 134,127,065 1 32,635,360 147,814,245 169,574,025 170,235,793 Net revenues (expenses):

Governmental activities (142,713,659) ( 151,561,547) (129,182,873) (110,113,435) (181,784,582) Business-type activities 15,953,578 7 ,348,328 6,709,415 16,651,314 6,869,012 Total net revenues (expenses) (126,760,081) ( 144,213,219) (122,473,458) (93,462,121) (174,915,570) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 49,450,785 4 8,179,314 68,796,708 108,554,989 109,693,092 Property tax 17,101,369 1 8,814,022 19,639,920 23,099,229 24,088,301 Other taxes 36,092,568 3 4,869,343 38,086,423 44,979,332 49,158,474 Franchise tax 11,550,447 1 2,684,556 13,470,312 12,698,934 13,702,461 Investment income (unrestricted) 3,864,707 3 ,958,589 1,467,257 (4,345,864) 6,118,231 Other general revenues 2,920,461 4 ,223,767 15,428,599 3,326,457 2,340,783 Intergovernmental (unrestricted) - - - - - Gain (loss) on disposal of assets 58,949 9 1,223 72,913 (2,607,825) 59,565 Extraordinary item:

Annexation of City Fire Dept by County - - - - - Discontinuance of Solid Waste Ops - - - - - Long-Range Property Mgmt Plan - - - - - Loss on transfer of sewer collection ops - - - - - Chapter 9 Bankruptcy Settlement - - - - - Notes Receivable adjustment - - - - - Transfers - - - - - Total governmental activities 121,039,286 1 22,820,814 156,962,132 185,705,252 205,160,907 Business-type activities
Investment income (unrestricted) 3,112,261 2 ,845,596 50,034 (2,136,524) 2,459,693 Other revenues 2,044,179 1 ,932,163 2,034,674 2,296,732 1,962,980 Gain (loss) on disposal of assets - ( 22,091) 83,682 28,846 4,859 Extraordinary item:

Discontinuance of Solid Waste Ops - - - - - Chapter 9 Bankruptcy Settlement - - - - - Transfers (8,375,074) - - - - Total business-type activities (3,218,634) 4 ,755,668 2,168,390 189,054 4,427,532 Total primary government 117,820,652 127,576,482 159,130,522 185,894,306 209,588,439 Changes in net position:

Governmental activities (21,674,373) ( 28,740,733) 27,779,259 75,591,817 23,376,325 Business-type activities 12,734,944 1 2,103,996 8,877,805 16,840,368 11,296,544 Total primary government (8,939,429)$ ( 16,636,737)$ 36,657,064$ 92,432,185$ 34,672,869$ (Concluded)
Fiscal Year
City of San Bernardino
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 171 -

2014 2015 2016 2017 2018
General fund:

Nonspendable 415,286$ 635,493$ 516,258$ 40,858,145$ 33,023,125$ Restricted 1,208,016 1,226,630 1,270,317 543,011 3,351 Committed 1,439,131 905,724 53,451 133,282 68,387 Assigned - - - - - Unassigned 10,327,070 15,260,350 32,571,653 30,218,397 38,995,689 Total general fund 13,389,503 18,028,197 34,411,679 71,752,835 72,090,552 All other governmental funds:

Nonspendable 77,284,512 65,167,831 44,059 59,093,468 300 Restricted 38,718,920 47,298,125 114,064,965 48,460,477 89,723,105 Committed - - - - - Assigned - - - - - Unassigned (682,322) (906,217) (87,413) (32,806) - Total all other governmental funds 115,321,110$ 111,559,739$ 114,021,611$ 107,521,139$ 89,723,405$ Fiscal Year
City of San Bernardino
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 172 -

2019 2020 2021 2022 2023
General fund:

Nonspendable 32,855,157$ 32,273,054$ 39,492,536$ 40,204,687$ 41,421,536$ Restricted 73,416 1,556,304 2,261,884 2,107,208 2,086,366 Committed 68,387 31,775,137 44,471,970 104,210,082 129,954,653 Assigned - 1,517,842 2,215,990 6,669,342 - Unassigned 31,543,452 597,818 22,300,252 3,257,776 - Total general fund 64,540,412 67,720,155 110,742,632 156,449,095 173,462,555 All other governmental funds:

Nonspendable - - - - - Restricted 97,648,385 99,614,892 95,507,865 100,909,122 106,830,097 Committed - - - - - Assigned - - - - - Unassigned (35,991) (17,380) - - - Total all other governmental funds 97,612,394$ 99,597,512$ 95,507,865$ 100,909,122$ 106,830,097$ Fiscal Year
City of San Bernardino
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 173 -

2014 2015 2016 2 017 2018
Revenues:

Taxes 104,126,781$ 108,248,780$ 116,474,108$ 101,310,156$ 106,751,261$ Licenses and permits 9,706,800 11,226,693 11,515,983 10,646,234 12,021,242 Impact fees 1,761,012 2,915,704 2,409,364 2,690,413 2,494,953 Fines and forfeitures 2,490,649 1,859,659 2,642,998 2,268,213 2,476,338 Investment Income 549,969 808,225 1,528,158 693,247 683,016 Lease 704,726 396,250 569,583 734,853 1,367,014 Intergovernmental 23,691,032 23,211,589 16,672,907 12,581,942 18,615,104 Charges for services 11,408,243 10,432,822 13,124,068 10,536,949 8,653,717 Other 4,613,341 5,851,039 9,843,361 5,311,574 6,150,859 Total revenues 159,052,553 164,950,761 174,780,530 146,773,581 159,213,504 Expenditures:

Current:

General Government 17,285,460 23,028,342 30,023,905 41,208,970 27,143,743 Public Safety 87,314,975 86,113,657 90,994,899 63,871,615 77,574,446 Public Works 18,506,025 16,779,236 20,009,090 19,562,136 21,471,387 Culture and Recreation 7,398,022 10,015,698 7,549,588 6,188,786 8,034,662 Community Development 2,828,621 3,550,617 4,501,617 4,978,005 4,608,360 Community Service 5,682,896 5,109,127 3,204,997 2,586,926 2,302,476 Debt service:

Principal retirement 3,838,738 9,897,441 12,771,410 7,782,077 5,955,768 Interest and fiscal charges 2,559,661 1,488,074 1,009,214 946,770 1,202,292 Total expenditures 145,414,398 155,982,192 170,064,720 147,125,285 148,293,134 Excess (deficiency) of revenues
over (under) expenditures 13,638,155 8 ,968,569 4,715,810 (351,704) 10,920,370 Other financing sources (uses):

Transfers in 6,960,097 3,087,398 15,153,355 7,133,534 590,005 Transfers out (4,757,992) (886,397) (1,023,811) (16,487,965) (229,655) Issuance of debt - - - - 4,414,002 Proceeds from capital leases - - - - - Original issue discount - - - - - Payment to refunded bond escrow agent - - - - - Loss on sale of property held for resale - - - - - Sale of capital assets - - - (254,169) - Total other financing
sources (uses) 2,202,105 2,201,001 14,129,544 (9,608,600) 4,774,352 Extraordinary item:
- - - 38,848,755 - Chapter 9 Bankruptcy Settlement - - - 1,952,233 - Notes Receivable adjustment - - - - (24,902,675) Net change in fund balances 15,840,260$ 11,169,570$ 18,845,354$ 30,840,684$ (9,207,953)$ Expenditures for capitalized assets 5,932,143 5,682,353 3,658,379 3,702,189 5,807,791 Debt service as a percentage of
noncapital expenditures 4.6% 7.6% 8.3% 6.1% 5.0%
LRPMP Transfers from Successor Agency
Fiscal Year
City of San Bernardino
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 174 -

2019 2020 2021 2022 2023
Revenues:

Taxes 111,195,458$ 112,084,820$ 137,935,700$ 185,762,246$ 191,754,388$ Licenses and permits 12,305,689 13,210,675 13,256,934 14,195,177 16,442,887 Impact fees 1,858,064 4,188,573 2,503,324 9,361,021 4,368,737 Fines and forfeitures 2,737,250 2,611,840 1,441,589 1,990,048 2,049,352 Investment Income 3,182,715 3,202,705 796,617 (5,290,134) 4,740,575 Lease 1,099,730 1,193,281 1,125,520 1,273,120 1,289,487 Intergovernmental 21,839,908 21,575,427 31,415,959 41,032,187 41,047,625 Charges for services 8,804,880 7,457,572 10,077,721 12,685,004 11,090,718 Other 3,015,369 4,845,817 12,932,019 3,886,709 3,141,833 Total revenues 166,039,063 170,370,710 211,485,383 264,895,378 275,925,602 Expenditures:

Current:

General Government 23,544,245 24,482,935 23,491,404 27,300,123 44,290,579 Public Safety 84,537,639 83,369,905 85,438,105 95,006,958 109,590,359 Public Works 40,588,569 38,399,067 39,513,013 48,085,969 57,690,144 Culture and Recreation 3,425,100 5,200,611 4,408,800 4,825,874 3,687,479 Community Development 5,756,424 7,002,361 7,405,140 18,134,668 17,341,992 Community Service 3,773,249 3,714,899 10,087,014 15,784,119 16,887,870 Debt service:

Principal retirement 1,971,120 2,334,830 1,849,620 2,551,379 2,326,808 Interest and fiscal charges 872,500 1,200,950 1,546,373 1,626,581 1,546,741 Total expenditures 164,468,846 165,705,558 173,739,469 213,315,671 253,361,972 Excess (deficiency) of revenues
over (under) expenditures 1,570,217 4,665,152 37,745,914 51,579,707 22,563,630 Other financing sources (uses):

Transfers in 1,491,125 1,029,316 1,714,702 138,000 184,353 Transfers out (1,491,125) (1,029,316) (1,714,702) (138,000) (184,353) Issuance of debt - - 19,850,000 - - Proceeds from capital leases - - - 2,135,838 311,240 Original issue discount - - (595,500) - - Payment to refunded bond escrow agent - - (18,171,434) - - Loss on sale of property held for resale - - - (2,610,625) - Sale of capital assets (823,688) 92,029 103,850 2,800 59,565 Total other financing
sources (uses) (823,688) 92,029 1,186,916 (471,987) 370,805 Extraordinary item:
- - - - - Chapter 9 Bankruptcy Settlement - - - - - Notes Receivable adjustment - - - - - Net change in fund balances 746,529$ 4,757,181$ 38,932,830$ 51,107,720$ 22,934,435$ Expenditures for capitalized assets 10,386,763 7,860,472 11,318,921 10,058,911 17,597,954 Debt service as a percentage of
noncapital expenditures 1.8% 2.2% 2.1% 2.1% 1.6%
LRPMP Transfers from Successor Agency
Fiscal Year
City of San Bernardino
Tax Revenues by Source – Governmental Funds
Last Ten Fiscal Years
______________________________________________________________________________ - 175 -

Fiscal Year
Ended Property S ales Franchise Utility User Transient Other June 30 Tax Tax Tax Tax Occupancy Tax Taxes Total
2014 38,885,226$ 30,420,582$ 3,749,762$ 22,498,934$ 2,935,962$ 7,138,133$ 105,628,599$ 2015 40,571,180 31,187,510 3,900,853 23,921,806 3,463,262 7,169,083 110,213,694 2016 41,344,972 36,680,419 4,925,012 23,986,813 4,327,091 8,184,283 119,448,590 2017 13,749,684 43,641,309 10,777,853 23,591,923 4,502,185 7,397,089 103,660,043 2018 18,498,848 43,890,011 10,657,848 23,666,459 4,987,491 8,153,029 109,853,686 2019 17,101,369 49,450,785 11,550,447 22,924,522 4,950,170 8,217,876 114,195,169 2020 18,814,022 48,179,314 12,684,556 22,680,847 4,525,751 7,662,745 114,547,235 2021 19,639,920 68,796,708 13,470,312 23,609,073 5,117,388 9,359,962 139,993,363 2022 23,099,229 108,554,989 12,698,934 26,272,812 5,781,762 12,924,758 189,332,484 2023 24,088,301 109,693,092 13,702,461 31,208,992 5,491,564 12,457,918 196,642,328 Source: City Finance Department
City of San Bernardino
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
______________________________________________________________________________ - 176 -

Fiscal Year Taxable Taxable Total
Ended Less Assessed Less Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2014 5,147,376,701$ 396,277,023$ (133,837,593)$ 5,409,816,131$ 4,564,949,325$ 586,585,698$ -$ 5,151,535,023$ 0.17% 2015 5,473,438,440 346,724,646 (130,541,256) 5,689,621,830 4,786,710,713 691,242,385 - 5,477,953,098 0.17% 2016 5,738,959,843 312,079,238 (128,316,274) 5,922,722,807 5,141,903,516 720,777,168 - 5,862,680,684 0.17% 2017 5,981,441,663 325,997,592 (133,119,032) 6,174,320,223 5,689,891,753 661,264,210 - 6,351,155,963 0.17% 2018 6,304,981,676 348,471,031 (130,446,387) 6,523,006,320 6,058,430,422 675,636,279 - 6,734,066,701 0.01% 2019 6,568,149,924 388,910,383 (127,261,499) 6,829,798,808 6,575,428,405 657,727,943 - 7,233,156,348 0.00% 2020 7,050,367,299 390,466,542 (125,025,813) 7,315,808,028 7,389,747,775 726,738,985 - 8,116,486,760 0.00% 2021 7,371,323,914 395,996,770 (123,028,130) 7,644,292,554 7,894,615,526 753,565,790 - 8,648,181,316 0.00% 2022 7,476,153,460 562,721,228 (121,126,992) 7,917,747,696 9,011,517,516 678,286,265 - 9,689,803,781 0.00% 2023 7,935,543,905 641,290,719 (115,371,712) 8,461,462,912 9,497,783,118 1,023,171,780 - 10,520,954,898 0.00% Note: Estimated value of taxable property not readily available in the State of California. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations of Proposition 13 passed in 1978.

Source: HdL, Coren & Cone, San Bernardino County Auditor/Controller (1) Redevelopment Agency was dissolved on February 1, 2012.

City Redevelopment Agency(1)
City of San Bernardino
Taxable Sales by Category
Last Ten Calendar Years (In Thousands of Dollars)
______________________________________________________________________________ - 177 -

2013 2014 2015 2016 2017
Apparel Stores 108,646$ 117,123$ 121,778$ 124,213$ 123,220$ General Merchandise 409,662 419,542 433,719 435,341 450,489 Food Stores 73,363 76,856 79,474 85,633 84,848 Eating and Drinking Places 275,248 296,399 320,304 337,469 362,303 Building Materials 218,617 240,632 249,553 265,323 277,395 Auto Dealers and Supplies 389,457 423,024 454,933 490,109 524,118 Service Stations 343,211 330,727 291,942 268,125 293,393 Other Retail Stores 317,545 317,133 340,705 341,002 340,216 All Other Outlets 753,960 847,943 913,442 999,364 1,064,621 Total 2,889,709$ 3,069,379$ 3,205,850$ 3,346,579$ 3,520,603$ Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Calendar Year
City of San Bernardino
Taxable Sales by Category (Continued)
Last Ten Calendar Years (In Thousands of Dollars)
______________________________________________________________________________ - 178 -

2018 2019 2020 2 021 2022
Apparel Stores 130,457$ 131,743$ 107,714$ 166,720$ 156,349$ General Merchandise 456,565 460,923 446,359 517,197 537,365 Food Stores 91,187 93,708 101,497 101,583 109,578 Eating and Drinking Places 378,339 392,808 350,223 439,817 466,296 Building Materials 294,083 287,929 352,558 384,346 389,998 Auto Dealers and Supplies 490,259 441,114 484,110 666,316 724,459 Service Stations 337,616 333,919 249,686 394,461 520,732 Other Retail Stores 366,959 372,002 399,907 515,906 515,101 All Other Outlets 1,205,531 1,306,306 1,548,181 2,247,738 2,287,781 Total 3,750,996$ 3,820,452$ 4,040,235$ 5,434,084$ 5,707,659$ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Calendar Year
City of San Bernardino
Principal Sales Tax Remitters
Current Year and Nine Years Ago
______________________________________________________________________________ - 179 -

Business Name Business Category Business Name Business Category 76 Service Stations Allstar Kia New Motor Vehicle Dealers Allstar Kia New Motor Vehicle Dealers Best Buy Electronics/Appliance Stores Amazon Fulfillment Center Fullfillment Center Chaparral Motorsports Boats/Motorcycles Amazon MFA Fulfillment Centers Chevron Service Stations Best Buy Electronics/Appliance Stores Costco Discount Dept Stores Chaparral Motorsports Boats/Motorcycles Crest Chevrolet New Motor Vehicle Dealers Chevron Service Stations Fairview Ford New Motor Vehicle Dealers Costco Discount Dept Stores Gerdau Long Steel North America Heavy Industrial Diamond Chevrolet Of San Bernardino New Motor Vehicle Dealers Greenbrier Rail services Transportation-Non-auto Fairview Ford New Motor Vehicle Dealers Home Depot Building Materials HD Supply Building Materials Inland Water Works Supply Heavy Industrial Home Depot Building Materials Interline Brands Plumbing/Electrical Supplies Kohls Distribution Center Fulfillment Centers John Ray Co Building Materials Michelin Trailers/Auto Parts Kohls Distribution Center Fullfillment Centers Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Macys Department Stores Ross Family Apparel Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Sams Club w/ Fuel Discount Dept Stores Nissan of San Bernardino New Motor Vehicle Dealers San Bernardino International Airport Authority Aircraft Sales & Service Ross Family Apparel San Manuel Band Of Mission Indians Leisure/Entertainment Sams Club w/ Fuel Discount Dept Stores Stater Bros Grocery Stores Sears Department Stores
Subaru of San Bernardino New Motor Vehicle Dealers Stater Bros Grocery Stores Target Discount Dept Stores Target Discount Dept Stores Toyota of San Bernardino New Motor Vehicle Dealers Toyota of San Bernardino New Motor Vehicle Dealers Walmart Discount Dept Stores USA Gasoline Service Stations White Cap LP Building Materials Walmart Discount Dept Stores *Firms listed alphabetically
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Fiscal Year 2023 Fiscal Year 2014
City of San Bernardino
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
______________________________________________________________________________ - 180 -

Agency 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Basic Levy(1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Colton Unified School Board 0.11870 0.09730 0.11690 0.14540 0.09390 0.11160 0.10160 0.10310 0.10810 0.06560 Crestline-Lake Arrowhead Water Agency - Bond 0.05600 0.07250 0.07280 0.07280 0.08700 0.08700 0.11900 0.11900 0.11900 0.11900 Redlands Unified School Bond 1993 0.06290 0.05940 0.05670 0.05240 0.04940 0.03240 0.03390 0.03600 0.06620 0.02790 Rialto Unified School Bond 0.07040 0.06550 0.11940 0.09920 0.09570 0.07710 0.08480 0.08050 0.08290 0.07460 San Bernardino Community College Bond 0.04190 0.03930 0.04030 0.03500 0.03760 0.04070 0.05620 0.06510 0.05340 0.04500 San Bernardino Unified School Bond 0.13500 0.10810 0.11820 0.07950 0.10070 0.11260 0.09690 0.10340 0.10890 0.08780 San Bernardino Valley Muni Water 0.16250 0.16250 0.16250 0.16250 0.15250 0.15250 0.14250 0.14250 0.13000 0.13000 Total Direct and Overlapping Rates(2)

1.64740 1.60460 1.68680 1.64680 1.61680 1.61390 1.63490 1.64960 1.66850 1.54990 City's Share of 1% Levy Per Prop 13(3) 0.16897 0.16897 0.16897 0.16897 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Voter Approved City Debt Rate 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Redevelopment Rate(4) 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rates(5) 0.16973 0.16974 0.16975 0.16975 0.00886 0.00000 0.00000 0.00000 0.00000 0.00000 (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute.

RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City preparing the statistical section information and excludes revenues derived from aircraft. Beginning in fiscal year 2013-14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.

Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Fiscal Year
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

City of San Bernardino
Principal Property Taxpayers
Current Year and Ten Years Ago
______________________________________________________________________________ - 181 -

Percent of Percent of
Total City T otal City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer: Value Rank Value Value Rank Value
Stater Bros Markets 388,727,461$ 1 2.03% 334,965,734$ 1 3.13% Amazon Com Services Inc 305,583,256 2 1.60%
BSREP III Central LLC 200,960,603 3 1.05%
CSHV Show Place 215 LLC 188,501,200 4 0.99%
Eastgate Building 1 LLC 150,758,253 5 0.79%
HW Southgate Building LLC 122,153,577 6 0.64% 71,176,411 7 0.67% WM Inland Investors IV LLC 121,935,418 7 0.64% 61,263,499$ 9 0.57% Trader Joe's Company 115,977,054 8 0.61%
IE Logistics Inc 112,443,063 9 0.59% 106,291,690 4 0.99% EXETER 6227 Cajon LLC 102,752,703 10 0.54%
Rancon Realty Fund 142,977,517 2 1.34%
Kohl's Department Stores Inc 109,690,894 3 1.03%
Hewlett Packard Company 92,711,973 5 0.87%
San Bermardino Econcomic Development 78,974,588 6 0.74% Lit Industrial LP 66,128,303 8 0.62%
Opus Real Estate CA VII Northpointe 61,000,000 10 0.57% 1,809,792,588$ 9.48% 1,125,180,609$ 10.53%
Sources: HdL, Coren & Cone
2023 2014
City of San Bernardino
Property Tax Levies and Collections
Last Ten Fiscal Years
______________________________________________________________________________ - 182 -

Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2014 10,139,727$ 9,783,362$ 96.49% 265,648$ 10,049,010$ 99.11% 2015 10,933,170 10,059,145 92.01% 219,257 10,278,402 94.01% 2016 11,030,576 10,593,161 96.03% 208,567 10,801,728 97.93% 2017(1) N/A 95,314 N/A 116,204 211,518 N/A 2018(1) N/A 197,198 N/A 88 197,286 N/A 2019(1) N/A 235,242 N/A 5,550 240,792 N/A 2020(1) N/A 64,212 N/A 3,055 67,267 N/A 2021(1) N/A 93,605 N/A 30,272 123,877 N/A 2022(1) N/A 197,545 N/A 28,985 226,530 N/A 2023(1) N/A 174,874 N/A 26,358 201,232 N/A Note:

The amounts presented include City property taxes only.

Source: County of San Bernardino, Auditor/Controller - Recorder - County Clerk (1)Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District (SBCFPD). To fund this transfer, the City is required to transfer revenue from property taxes and 35 percent of its Vehicle Registration Fees to SBCFPD.

Fiscal Year of Levy
Collected within the
Total Collections to Date
City of San Bernardino
Top 10 Customers – Water and Sewer Treatment
Current Year
______________________________________________________________________________ - 183 -

Percent of Percent of
Total Total Sewer
Customer Water Customer T reatment
Customer: Revenue Rank Revenue Revenue Rank Revenue
City of San Bernardino 1,579,052$ 1 3.63% 156,209$ 6 0.35% San Bernardino City Unified School District 1,419,699 2 3.26% 362,545 2 0.81% California State University, San Bernardino 580,180 3 1.33% County of San Bernardino 355,809 4 0.82% 654,640 1 1.47% Housing Authority 235,197 5 0.54% 215,500 3 0.48%
Cott Beverages 223,457 6 0.51%
W. Dean Weidner 195,108 7 0.45% 146,611 8 0.33%
Rialto School District 193,582 8 0.44% 0.00%
St. Bernardine Hospital 0.00% 195,040 5 0.44%
Lido Condominiums 162,311 9 0.37% 149,099 7 0.33%
Pama Management Co. 0.00% 213,316 4 0.48%
San Bernardino Community College District 162,070 10 0.37% San Bernardino Community Hospital 0.00%
State of California - AOC 140,633 9 0.32%
Broadstone Investors LLC 138,749 10 0.31%
5,106,465$ 11.72% 2,372,342$ 5.32%
Source: City Water Department
Water Sewer Treatment
City of San Bernardino
Connections and Revenues by User Type – Water
Last Ten Fiscal Years
______________________________________________________________________________ - 184 -

User Type Connections Revenue C onnections Revenue Connections Revenue Connections Revenue Single family 36,063 21,652,852$ 35,744 23,761,145$ 35,995 23,875,761$ 36,042 22,909,054$ Multiple family 2,916 5,835,444 2,905 5,562,012 2,908 5,569,436 2,907 5,222,345 Commercial 3,164 8,454,199 3,151 6,976,893 3,154 6,579,373 3,117 6,482,560 Landscape 1,196 6,742,399 1,184 5,515,046 1,192 5,277,114 1,181 4,542,108 Other 2,574 860,736 2,296 811,219 2,241 811,833 2,174 781,428 Total all users 45,913 43,545,630$ 45,280 42,626,315$ 45,490 42,113,517$ 45,421 39,937,495$ Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,006 21,579,693$ 35,824 20,476,866$ 35,825 17,346,414$ 35,729 15,688,749$ Multiple family 2,903 5,157,997 2,904 4,944,978 2,899 4,449,204 2,873 4,225,832 Commercial 3,104 6,320,900 3,111 6,117,493 3,131 5,750,672 3,092 4,913,942 Landscape 1,150 4,256,390 1,159 4,694,704 1,121 3,789,527 1,129 3,203,907 Other 2,056 808,227 2,018 748,141 1,956 557,392 1,905 677,180 Total all users 45,219 38,123,207$ 45,016 36,982,182$ 44,932 31,893,209$ 44,728 28,709,610$ Connections Revenue Connections Revenue
Single family 35,695 16,775,834$ 35,012 18,583,708$ Multiple family 2,869 4,349,601 2,824 4,591,290 Commercial 3,097 6,332,882 3,085 6,566,344 Landscape 1,130 3,079,610 1,140 3,616,135 Other 1,791 679,606 1,703 913,810
Total all users 44,582 31,217,533$ 43,764 34,271,287$ Source: City Water Department
2015 2014
2023 2022 2021 2020
2019 2018 2017 2016
City of San Bernardino
Water Rate History – Minimum Monthly Charge
Last Ten Fiscal Years
______________________________________________________________________________ - 185 -

Effective
Date 1/2" 5 /8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10" 12"
7/1/2014 12.90 1 2.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 * 7/1/2015 12.90 1 2.90 16.15 22.60 38.80 58.20 103.50 168.20 330.00 524.15 750.65 * 10/1/2016 16.09 1 6.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 * 7/1/2017 19.58 1 9.58 24.51 34.30 58.88 88.32 157.06 240.07 500.78 795.40 1,139.12 * 7/1/2018 23.39 2 3.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2019 23.39 2 3.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2020 23.39 2 3.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2021 23.39 2 3.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 4/1/2022 20.49 2 0.49 28.17 43.51 81.87 127.91 388.77 772.38 1,232.72 2,153.40 4,224.92 4,224.92 7/1/2022 21.72 2 1.72 29.87 46.13 86.79 135.59 412.10 818.73 1,306.69 2,282.61 4,478.42 4,478.42 * Information not reported.

Source: City Water Department
Monthly Charge(1)
(1)Effective July 1, 2007 and July 1, 2008, all water usage except municipal will be billed at the rate of $0.94 and $0.97 per 100 cubic feet, respectively, with no minimum allowance.

City of San Bernardino
Sewer Treatment Rate History
Last Ten Fiscal Years
______________________________________________________________________________ - 186 -

1/1/2014 10/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022 7/1/2022(1) Residential (monthly per EDU) 18.50 20.65 22.38 23.10 23.10 23.10 23.10 23.10 37.83 41.99 Commercial:

Commodity Charge (per HCF):

Multi-family, mobile home parks 1.25 1.36 1.48 1.53 1.53 1.53 1.53 1.53 2.71 3.01 Retail, commercial, light industrial 2.10 2.28 2.47 2.55 2.55 2.55 2 .55 2.55 2.71 3.01 Auto repair, car wash 1.30 1.41 1.53 1.58 1.58 1.58 1.58 1.58 2.71 3.01 Offices, motels (w/o restaurants) 1.50 1.63 1.77 1.83 1.83 1.83 1.83 1.83 2.71 3.01 Restaurants, hotels 2.70 2.93 3.18 3.28 3.28 3.28 3.28 3.28 6.42 7.13 Laundromats 1.50 1.63 1.77 1.83 1.83 1.83 1.83 1.83 2.15 2.39 Hospitals, convalescent homes 1.35 1.46 1.58 1.63 1.63 1.63 1.63 1.63 2.71 3.01 Schools, churches, nursery schools 1.10 1.19 1.29 1.33 1.33 1.33 1.33 1.33 2.15 2.39 Industrial:

Discharge Flow (per million gallons) 900.00 977.00 1,060.00 1,094.00 1,094.00 1,094.00 1,094.00 1,094.00 1,420.83 1,577.12 Biological Oxygen demand (per 1,000 lbs) 360.00 391.00 424.00 438.00 438.00 438.00 438.00 4 38.00 648.28 719.59 Suspended Solids (per 1,000 lbs) 640.00 694.00 753.00 778.00 778.00 778.00 778.00 778.00 648.50 719.84 (1)The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 07/01/22.

Source: City Water Department
Fiscal Year
City of San Bernardino
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
______________________________________________________________________________ - 187 -

2014 2015 2016 2017 2018
Governmental Activities:

Lease revenue bonds 6,925,000$ 6,315,000$ 5,670,000$ 4,985,000$ 4,414,002$ Certificates of participation(1) 4,010,000 3,735,000 3,445,000 - - Pension obligation bonds(1) 52,202,499 52,924,744 53,608,476 - - Other 21,351,657 18,235,640 12,219,665 30,383,546 28,820,616 Total governmental activities 84,489,156 81,210,384 74,943,141 35,368,546 33,234,618 Business-type Activities:

Capital leases 4,792,949 2,652,586 - - - Notes payable 26,174,480 22,826,237 20,568,662 900,000 600,000 Certificates of participation 9,292,368 6,346,308 - - - Water bonds - - - 88,655,746 87,091,704 Other - - - - - Total business-type activities 40,259,797 31,825,131 20,568,662 89,555,746 87,691,704 Total Primary Government 124,748,953$ 113,035,515$ 95,511,803$ 124,924,292$ 120,926,322$ Percentage of Personal Income(2) 1.76% 1.48% 1.20% 1.48% 1.42% Debt per Capita(2) 587$ 528$ 443$ 576$ 547$ (2) Based on most current data available.
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

Fiscal Year
City of San Bernardino
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
______________________________________________________________________________ - 188 -

2019 2020 2021 2 022 2023
Governmental Activities:

Lease revenue bonds 3,598,360$ 2,751,781$ 1,871,537$ 953,847$ -$ Certificates of participation(1) - - - - - Pension obligation bonds(1) - - 19,276,972 19,269,444 19,256,916 Other 27,055,863 2 4,940,729 4,513,182 4,845,331 5,363,772 Total governmental activities 30,654,223 27,692,510 25,661,691 25,068,622 24,620,688 Business-type Activities:

Capital leases - - - - - Notes payable 300,000 - - - - Certificates of participation - - - - - Water bonds 85,482,663 83,813,621 82,084,580 80,280,539 78,391,498 Other - - - 107,614 182,856 Total business-type activities 85,782,663 83,813,621 82,084,580 80,388,153 78,574,354 Total Primary Government 116,436,886$ 111,506,131$ 107,746,271$ 105,456,775$ 103,195,042$ Percentage of Personal Income(2) 1.37% 1.37% 1.40% 2.29% 2.24% Debt per Capita(2) 531$ 512$ 498$ 478$ 462$ (2) Based on most current data available.
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

Fiscal Year
City of San Bernardino
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years (In Thousands, except Per Capita) ______________________________________________________________________________ - 189 -

Fiscal Pension Lease Percent of
Year Ended Obligation Revenue Assessed Per
June 30 Bonds(1) Bonds Total Value Capita
2014 52,202$ 6,925$ 59,127$ 0.56% 278$ 2015 52,925 6,315 59,240 0.53% 277 2016 53,608 5,670 59,278 0.50% 275 2017 - 4,985 4,985 0.04% 23 2018 - 4,414 4,414 0.03% 20 2019 - 3,598 3,598 0.03% 16 2020 - 2,752 2,752 0.02% 13 2021 19,277 1,872 21,149 0.13% 98 2022 19,269 954 20,223 0.11% 92 2023 19,257 - 19,257 0.10% 86 Source: City Finance Department
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

City of San Bernardino
Schedule of Direct and Overlapping Bonded Debt
Current Fiscal Year
______________________________________________________________________________ - 190 -

2022-23 Assessed Valuation: 19,097,789,522$
Total Debt
6/30/2023
%
Applicable
(1
)
City's Share of
Debt 6/30/23
OVERLAPPING TAX AND ASSESSMENT DEBT:

San Bernardino Community College District 7 08,007,978$ 20.660% 146,274,448$ Colton Joint Unified School District 181,552,661 6.968% 12,650,589 Redlands Unified School District 54,383,512 4.509% 2,452,153 Rialto Unified School District 85,586,514 7.232% 6,189,617 San Bernardino City Unified School District 262,865,410 76.880% 202,090,927 Colton Joint Unified School District Community Facilities District No. 2 3,165,000 41.053% 1,299,327 City of San Bernardina Community Facilities District No. 2018-2 2,945,000 100% 2,945,000 City of San Bernardina Community Facilities District No. 2020-1 3,505,000 100% 3,505,000 City of San Bernardina Community Facilities District No. 2021-1 2,775,000 100% 2,775,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 380,182,061$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations 160,860,000$ 6.574% 10,574,936$ San Bernardino County Pension Obligations 62,960,000 6.574% 4,138,990 San Bernardino County Flood Control District General Fund Obligations 41,065,000 6.574% 2,699,613 Colton Joint Unified School District General Fund Obligation 5,979,738 6.968% 416,668 Rialto Unified School District Certificates of Participation 7,329,915 7.232% 530,099 San Bernardino City Unified School District Certificates of Participation 76,370,000 76.880% 58,713,256 City of San Bernardino Pension Obligation Bonds 19,785,000 100% 19,785,000 HUD Section 108 Note Payable 2,576,000 100% 2,576,000 Tow Services Settlement Agreement Note Payable 200,000 100% 200,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 99,634,562$ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):

San Bernardino County Inland Valley Project Tax Allocation Bonds 215,135,000$ 65.082% 140,014,161$ City of San Bernardino Tax Allocation Bonds 28,048,455$ 100% 28,048,455 City of San Bernardino Certificates of Participation 1,190,000$ 100% 1,190,000 TOTAL OVERLAPPING TAX INCREMENT DEBT 169,252,616$
TOTAL DIRECT DEBT 22,561,000$
TOTAL OVERLAPPING DEBT 626,508,239$
COMBINED TOTAL DEBT 649,069,239$
Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.99%
Total Direct Debt ($24,373,847) 0.12%
Combined Total Debt 3.40%
Ratios to Redevelopment Successor Agency Incremental Valuation 10,520,954,898$ Total Overlapping Tax Increment Debt 1.61%
Source: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

City of San Bernardino
Legal Debt Margin
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 191 -

2014 2015 2016 2 017 2018
Assessed valuation 10,695,189$ 1 1,298,116$ 11,913,720$ 12,658,595$ 13,387,519$ Conversion percentage 25% 25% 2 5% 25% 25%
Adjusted assessed value 2,673,797 2 ,824,529 2,978,430 3,164,649 3,346,880 Debt limit percentage 15% 15% 1 5% 15% 15%
Debt limit 401,070 4 23,679 446,764 474,697 502,032 Total net debt applicable to limit:

General obligation bonds 68,352 67,830 6 7,198 9,060 8,069 Legal debt margin 332,717$ 3 55,850$ 379,566$ 465,637$ 493,963$ Total debt applicable to the limit
as a percentage of debt limit 17.0% 16.0% 1 5.0% 1.9% 1.6% Fiscal Year
Note:

The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

City of San Bernardino
Legal Debt Margin (Continued)
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 192 -

2019 2020 2021 2 022 2023
Assessed valuation 14,190,217$ 1 5,557,321$ 16,415,502$ 17,728,678$ 19,097,790$ Conversion percentage 25% 25% 2 5% 25% 25%
Adjusted assessed value 3,547,554 3 ,889,330 4,103,876 4,432,170 4,774,447 Debt limit percentage 15% 15% 1 5% 15% 15%
Debt limit 532,133 5 83,400 615,581 664,825 716,167 Total net debt applicable to limit:

General obligation bonds 6,813 5,497 2 3,977 22,509 20,975 Legal debt margin 525,320$ 5 77,903$ 591,605$ 642,317$ 695,192$ Total debt applicable to the limit
as a percentage of debt limit 1.3% 0.9% 3 .9% 3.4% 2.9% Fiscal Year
Note:

City of San Bernardino
Debt Service Coverage
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 193 -

Water Utility
Fiscal O perating Net Non- Net
Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2014 36,672 $ 30,070$ 6,602$ 2,505$ 9,107$ 1,658$ 661$ 4$ 2015 33,121 30,139 2,982 2,703 5,685 1,748 570 2.45
2016 30,002 29,025 977 2,283 3,260 1,814 523 1.39
2017 33,359 30,597 2,762 2,584 5,346 247 219 11.47
2018 38,280 27,874 10,406 3,168 13,574 770 2,224 4.53
2019 39,100 27,482 11,618 3,810 15,428 795 2,196 5.16
2020 40,267 31,062 9,205 3,636 12,841 830 2,164 4.29
2021 42,758 34,642 8,116 2,634 10,750 860 2,130 3.60
2022 43,150 32,373 10,777 2,332 13,109 900 2,090 4.38
2023 44,092 39,413 4,679 3,218 7,897 950 2,044 2.64 Sewer Utility
Fiscal Operating Net Non- Net
Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2014 24,734 $ 16,750$ 7,984$ (1,129)$ 6,855$ 4,424$ 747$ 1.33 2015 25,411 16,750 8,661 1,099 9,760 4,629 569 1.88 2016 25,411 17,439 7,972 (224) 7,748 300 - 25.83 2017 28,612 20,037 8,575 39 8,614 300 133 19.89 2018 30,733 18,540 12,193 (721) 11,472 890 1,383 5.05 2019 30,546 20,554 9,992 1,362 11,354 910 1,356 5.01
2020 30,397 20,051 10,346 1,322 11,668 935 1,331 5.15
2021 30,361 22,479 7,882 19 7,901 665 1,302 4.02
2022 34,171 22,465 11,706 (1,022) 10,684 700 1,268 5.43 2023 45,544 36,237 9,307 1,252 10,559 735 1,232 5.37 Source: City department's annual reports
Debt Service
Debt Service
City of San Bernardino
Demographic and Economic Statistics
Last Ten Calendar Years
______________________________________________________________________________ - 194 -

Personal Per Capita
Calendar Income Personal Unemployment
Year Population(1) (in thousands) (2) Income(2)(4) Rate(3) 2014 212,584 7,070,119$ 33,258$ 10.10% 2015 213,933 7,645,879 35,740 6.80% 2016 215,491 7,931,577 36,807 6.30% 2017 216,972 8,459,304 38,988 5.50% 2018 221,130 8,523,677 38,546 5.70% 2019 219,233 8,509,748 38,816 4.10% 2020 217,671 8,159,289 37,485 11.30% 2021 216,291 7,723,319 35,708 8.10% 2022 220,840 4,596,122 20,812 4.80% 2023 223,230 4,608,807 20,646 6.30% (1) California Department of Finance
(2) U.S. Department of Commerce, Bureau of Economic Analysis for Riverside-San Bernardino-Ontario MSA (3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept (4) Data from 2021 is from US Census
City of San Bernardino
Budgeted Full-Time and Part-Time Positions by Function
Last Ten Fiscal Years
______________________________________________________________________________ - 195 -

Fiscal Year
Function 2014 2 015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 131 146 148 147 117 107 92 91 81 90
Public Safety 615 611 607 470 474 468 427 402 413 413
Public Works 221 270 254 185 138 131 129 136 139 139
Culture & Recreation 106 101 103 104 111 110 111 127 129 129 Community Development 26 35 37 39 38 33 26 40 46 60
Community Service 42 32 33 34 38 37 33 41 69 70
Enterprise 256 258 258 272 300 299 299 299 296 299
Total 1,397 1,453 1,440 1,251 1,216 1,185 1,117 1,136 1,173 1,200 Source: Budgeted positions for full and part time employees City of San Bernardino
Capital Asset Statistics
Last Ten Fiscal Years
______________________________________________________________________________ - 196 -

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Pubic Safety:

Police stations 1 1 1 1 1 1 1 1 2 2 Fire stations 12 12 12 * * * * * * *
Public Works:

Miles of streets ** ** ** ** ** 629 629 629 629 616 Street lights (City maintained) ** ** ** ** ** ** ** 7,400 7,400 6,706 Street lights (SCE maintained) ** ** ** ** ** ** ** 7,500 7,500 7,111 Street traffic controllers (signals) ** ** ** ** ** 289 289 308 295 295 Street traffic controllers (ped-xing) ** ** ** ** ** 19 19 308 *** *** Parks and Recreation:

Parks 37 37 37 37 37 36 36 36 36 36 Park acreage 545 545 545 545 545 530 507 507 507 552 Water:

Water mains (miles) 602 603 608 608 609 612 729 729 729 701 Sewer:

Sanitary sewers (miles) 510 510 510 510 510 510 478 478 478 481 Source: Various City departments
*
** Information not available
*** Included in above number
Fiscal Year
Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

City of San Bernardino
Operating Indicators by Function
Last Ten Fiscal Years
______________________________________________________________________________ - 197 -

Fiscal Year
2014 2015 2016 2017 2018
Police:

Arrests 11,386 10,590 8,930 10,256 11,295 Parking citations issued 19,531 14,692 14,781 21,711 21,480 Traffic citations issued 6,842 4,338 3,062 3,848 3,108 Fire:

Number of emergency calls * * * ** **
Inspections * * * ** **
Public Works/Public Services:

Street resurfacing (lane miles) * * * * *
Parks and Recreation:

Number of recreation classes 450 432 525 494 514 Number of facility rentals 235 220 290 277 345 Water:

Total connections 43,764 44,582 44,728 44,932 45,016 Sewer:

Total connections 62,714 63,377 64,342 63,274 63,525 Source: Various City departments
* Information not available
** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

City of San Bernardino
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
______________________________________________________________________________ - 198 -

Fiscal Year
2019 2020 2021 2022 2023
Police:

Arrests 12,100 11,137 10,357 7,792 8,336 Parking citations issued 16,359 12,334 13,110 11,332 10,496 Traffic citations issued 9,055 9,276 1,628 5,473 6,679 Fire:

Number of emergency calls ** ** ** ** **
Inspections ** ** ** ** **
Public Works/Public Services:

Street resurfacing (lane miles) * * * * *
Parks and Recreation:

Number of recreation classes 509 63 63 321 547 Number of facility rentals 321 208 208 248 182 Water:

Total connections 45,220 45,421 45,490 45,280 45,913 Sewer:

Total connections 61,253 59,719 60,777 61,746 61,805 Source: Various City departments
* Information not available
** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

Mayor and City CouncilMay 1, 2024

Mayor and City Council
May 1, 2024