ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2024
BUY OF SAN RE
THE MUSICAL
City of San Bernardino
290 North D Street
San Bernardino, CA
www.sBCity.org
City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
10 CITY
•
FOUNDED IN 1810
Prepared by the City of San Bernardino Finance Department San Bernardino, California
MADERNARDINOT
CALIFORNIA.
FOUNDED IN 18T0
Table of Contents
INTRODUCTORY SECTION Page
Letter of Transmittal.. ...i
GFOA Certificate of Achievement. ..IX
Organizational Chart ...X
City Officials. ....x1
FINANCIAL SECTION
Independent Auditor's Repor....... ....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..... 120
Budgetary Comparison Schedules:
General Fund.. ..121
American Rescue Plant Act Special Revenue Fund. 122
Federal and State Grants Special Revenue Fund... .123
Schedule of Changes in the Net Pension Liability and Related Ratios... • 124 Schedule of the Successor Agency's Proportionate Share
of the Net Pension Liability and Related Ratios.. ..128 City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Table of Contents (Continued)
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited) (Continued):
Schedule of Contributions - Pension. ..129
Schedule of Changes in Net OPEB Liability and Related Ratios ..132 Schedule of Contributions - OPEB. .133
Combining Financial Statements and Schedules:
Combining Balance Sheet - Non-Major Governmental Funds. ..136 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Governmental Funds.. ...140
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Cable TV Special Revenue Fund... ...144
Asset Seizure Special Revenue Fund ...145
Low and Moderate Income Housing Special Revenue Fund ..146 Alternative Transportation Special Revenue Fund ... 147 RMRA Gas Tax Special Revenue Fund ..148
Special Gas Tax Special Revenue Fund ...149
Traffic Safety Special Revenue Fund... ...150
Measure I Special Revenue Fund ..151
Storm Drain Construction Capital Projects Fund.. ... 152 Special Assessments Capital Projects Fund ...153
Cultural Development Construction Fee Capital Projects Fund ..154 Impact Fees Capital Projects Fund... ....155
Combining Statement of Net Position - Internal Service Funds ...157 Combining Statement of Revenues, Expenses,
and Changes in Net Position - Internal Service Funds... ... 158 Combining Statement of Cash Flows - Internal Service Funds ..159 STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents... .. 161
Financial Trends Schedules
Net Position by Component.. . 162
Changes in Net Position...... 164
Fund Balances of Governmental Funds . 168
Changes in Fund Balances of Governmental Funds ..170
Tax Revenues by Source - Governmental Funds ..172
City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited) (Continued)
Revenue Capacity Schedules
Assessed Valuation and Estimated Actual Value of Property ..173 Taxable Sales by Category.... .. 174
Principal Sales Tax Remitters.... . 176
Direct and Overlapping Property Tax Rates 177
Principal Property Taxpayers... .. 178
Property Tax Levies and Collections... 179
Top 10 Customers - Water and Sewer Treatment.. .. 180
Connections and Revenues by User Type - Water ..181
Water Rate History - Minimum Monthly Charge. .. 182
Sewer Treatment Rate History... .. 183
Debt Capacity Schedules
Ratio of Outstanding Debt by Type... ... 184
Ratio of General Bonded Debt Outstanding.... .. 186
Schedule of Direct and Overlapping Bonded Debt. ... 187 Legal Debt Margin.. .. 188
Debt Service Coverage.. .. 190
Demographic and Economic Information
Demographic and Economic Statistics.. .. 191
Budgeted Full-Time and Part-Time Positions by Function ...192 Operating Information
Capital Asset Statistics ..... ...193
Operating Indicators by Function.. . 194
DERNARDINO
SAN
CITY OF CALIFORNIA
FO FOUNDED IN I8T0
CITY
• •
INDED IN 1810
INTRODUCTORY SECTION
> Letter of Transmittal
• GFOA Certificate of Achievement
» Organizational Chart
• City Officials
MA BERNARDINO
CALIFORNIA
FOUNDED IN I810
City of
San Bernardino
SOUNDED IN 181D
February 28, 2025
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, 2024. 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 (GAP) and audited in accordance 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 controls 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, LIP, 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, 2024 are free of material misstatement. The independent auditor concluded it was reasonable to render an unmodified opinion and that the City's financial statements for the fiscal year ended June 30, 2024, 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: 909-384-5242 | F: 909-384-5043| www.SBCity.org 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 224,000. 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 and 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 City 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 Economic 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 details 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 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 California economy has largely tracked US economic growth in recent years, with these trends persisting in 2024. While job growth has diminished nationwide, job growth has increased in Southern California. The Inland Empire has seen strong job growth, particularly in the transportation, trade, and utilities sectors. The region's labor force has grown steadily, and it has been the state's top job creator for the past four years. Government jobs increased by 9,800 jobs over the past year, majority of the gain being in local government.
Since its opening in August 2022, the San Bernardino International Airport (SBD) now hosts direct flights to San Francisco, Provo, Utah, Hartford, Connecticut, and Phoenix, Arizona. San Bernardino International Airport encompasses three passenger terminals: a domestic terminal served by Breeze Airways, an international terminal with U.S. Customs and Border Protection processing facility, and the Luxivair SBD executive terminal, an airport-owned fixed-base operator. The cargo airport continues to grow including airlines such as FedEx Express, UPS Airlines, Amazon Air and ABX Air.
No recession was forecast in 2024, and economists are not predicting a downturn in 2025. The risk of recession was lower than the year before. The growth in logistics, development of large-scale transportation, healthcare, and energy projects, and increases in tourism will be carried into 2025. This will cause demand for more labor as well as investment in capital equipment, software, and real estate. New restaurants such as Chick-fil-A and Panera Bread on Varsity Avenue, Hung Up on Cane on University Parkway, and Yoshinoya on E. Highland Avenue, have recently opened 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, San Bernardino experienced a slight decrease in sales tax collections, as with other cities in the area. 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 consistent with a slight increase over the course of the coming year. Nevertheless, the City maintains conservative 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 region has been consistent, even with the slowdown in home buying driven by higher interest rates. Post-COVID demand and soaring sale prices spurred production increases in 2021-22. Interest rates, which for much of 2024 were twice as high as they were in 2021, have reduced demand and builder sentiment to start more housing this year. Despite the modest decline in new construction permitting in 2024, new deliveries increased to the highest level since 2018 in the region. 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov 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 is around $505,000; however, it can vary depending on the neighborhood. The median sale price of single-family homes in San Bernardino County increased 15% in the last two years.
Strategic Planning: On November 17, 2021, the Mayor and City Council adopted Resolution 2021-271, establishing key strategic targets and goals for 2021-2025. These initiatives aim to address pressing city challenges and align resources effectively toward achieving the City's vision.
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. i. Implement an enhanced governance framework to ensure clarity and accountability.
ii. Develop and disseminate updated Standard Operating Procedures for all departments.
b. Continue to seek opportunities to secure long-term and short-term revenue sources. i. Aggressively pursue federal, state, and local funding opportunities.
11. Diversity income streams through innovative partnerships and strategic fee studies. c. Implement, maintain, and update a fiscal accountability plan. i. Update spending policies, including purchasing, cash management, and P-Card regulations.
ii. Enhance reporting systems for improved transparency and monitoring. d. Create a framework for spending decisions.
e. Minimize risk and litigation exposure.
f. Create an asset management plan.
i. Focus on real estate optimization, including redevelopment opportunities for underutilized City-owned properties.
ii. Develop sustainable maintenance policies for public infrastructure.
2. Focused, Aligned Leadership and Unified Community
a. Build a culture that attracts, retains, and motivates the highest quality talent. i. Provide robust training programs and clear career advancement pathways. ii. Increase efforts to attract and retain top-tier talent, ensuring diversity and inclusion. b. Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness. i. Finalize and implement the new Enterprise Resource Planning (ERP) system.
Adopt innovative tools to streamline operations and improve service delivery. c. Re-establish City as the Regional Leader / County Seat. d. Develop and implement a community engagement plan.
Launch a multi-platform community engagement plan that prioritizes inclusivity and accessibility.
ii. Expand special events and library programs to increase citizen participation.
3. Improved Quality of Life
a. Reduce the burden of the unsheltered through engagement, collaboration, and partnerships with other entities.
290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov i. Form partnerships with regional entities to create sustainable solutions for unsheltered populations.
ii. Develop a strategic plan to maximize available resources and deliver impactful services.
b. Integrate a customer-service orientation and metrics into all City operations. i. Roll out city-wide applications to track service delivery and satisfaction. ii. Establish a "one-stop shop" model for resident services, particularly in Public Works and Community Development.
c. Constantly evaluate public safety service delivery models to enhance the quality of service. d. Improve the City's appearance, cleanliness, and attractiveness. i. Launch graffiti abatement initiatives and expand park improvement projects. ii. Ensure a consistent focus on safety through strategic investments in law enforcement and infrastructure.
4. Economic Growth and Development
a. Develop a branding and marketing campaign.
i. Initiate a branding and marketing campaign to attract businesses and residents. b. Update the General Plan and Development Code.
i. Update the General Plan and Development Code to align with 21st-century urban planning principles.
c. Roll out a strategy to create a 21st-century urban core. i. Target sectors such as technology, professional services, and hospitality to reduce economic reliance on logistics and government.
ii. Foster relationships with higher education and private sector stakeholders to enhance workforce readiness.
ili. Facilitate development in transit-oriented areas and optimize existing City facilities for economic activity.
iv. Continue to invest in green and resilient infrastructure.
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.
Strategic Initiatives Alignment with Goals: Addressing Current Challenges The City of San Bernardino's strategic initiatives for 2023-2025 are designed to respond dynamically to pressing issues while remaining aligned with the overarching strategic goals established in the 2021-2025 framework. These initiatives address immediate challenges in operational capacity, community needs, and economic growth, ensuring a responsive and resilient approach to governance.
These initiatives were introduced during the June 30, 2023, Special Workshop, where the City Manager's Office, led by Interim City Manager Charles McNeely, presented them to the Mayor and City Council. This workshop built on discussions from the May 2023 Retreat Workshop, where priorities for addressing economic, operational, and community challenges were established. The initiatives were crafted to respond to feedback from Council Members and community stakeholders, addressing gaps in service delivery, fiscal accountability, and economic growth.
290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov
1. Improved Operational and Financial Capacity
a. The City Manager's Office proposed the Infrastructure Master Plans and Position Control initiatives during the Special Workshop to tackle the City's aging infrastructure and staffing inefficiencies. They were introduced as part of a strategy to optimize resource allocation and improve financial sustainability.
b. Strategic Initiative: Infrastructure Master Plans
i. Develop comprehensive plans, such as the ADA Master Plan and Bridge Management Plan, to address aging infrastructure and compliance gaps. ii. Prioritized funding from Capital Contingency Reserves ($1.7 million allocated for FY 2023/24).
c. Strategic Initiative: Position Control and Staffing Efficiency i. Reallocate budgets from vacant positions to fund critical staffing needs, reducing service delivery gaps.
ii. Recruitment for 119 vacant positions to restore workforce capacity.
2. Focused, Aligned Leadership and Unified Community
a. Legislative Advocacy and the Economic Development Department were presented as essential initiatives during the workshop to address leadership gaps and strengthen the City's ability to attract funding and investments. The proposals aimed to align leadership efforts with the community's economic and operational priorities. b. Strategic Initiative: Legislative Advocacy Program
i. Establish a dedicated Legislative and Government Affairs Manager to secure state and federal funding and provide proactive advocacy.
ii. $336,937 allocated from Strategic Reserves for FY 2023/24 to support advocacy efforts.
c. Strategic Initiative: Economic Development Department Creation i. Establish a specialized department to drive investment, marketing, and urban core revitalization.
il. Approved staffing plan includes the addition of three Economic Development Managers and a director, supported by $459,790 in Strategic Reserve funding.
3. Improved Quality of Life
a. Addressing homelessness and improving the City's appearance were highlighted as urgent concerns during the June 2023 discussions. These initiatives were crafted to directly improve residents' day-to-day experiences while tackling systemic issues like homelessness and urban aesthetics.
b. Strategic Initiative: Homelessness and Housing Programs i. Expand interim shelters, mobile services, and outreach initiatives to address the growing homelessness crisis.
ii. Allocated $2 million annually beginning FY 2026/27 for sustaining homeless- related activities; ARPA funds used for immediate interventions like the Navigation c. Strategic Initiative: City Appearance Enhancements
i. Implement graffiti abatement, biohazard cleanup, and a Downtown Trash/Recycle Pilot Program.
ii. $570,000 allocated from the General Fund for FY 2023/24. 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov
4. Economic Growth and Development
a. Initiatives such as the Downtown Revitalization Strategy and One-Stop Shop were proposed to drive sustainable economic growth. These programs were introduced to the Council as transformative measures for creating a vibrant urban core and fostering a business-friendly environment.
b. Strategic Initiative: Downtown Revitalization Strategy i. Roll out a branding and marketing campaign to attract businesses and transform the urban core into a 21st-century hub.
ii. Preliminary steps include a Downtown Economic Impact Study and infrastructure improvements funded through CIP allocations.
c. Strategic Initiative: One-Stop Shop Development
i. Simplify permitting and enhance customer service for residents and developers. ii. $517,055 allocated for design, construction, and staffing, funded from Strategic Reserves and Capital Contingency.
The updated strategic initiatives reaffirm the City of San Bernardino's commitment to its long-term goals while addressing immediate challenges. By aligning these initiatives with the City's strategic framework, leadership ensures that resources are optimally utilized to create a more sustainable, inclusive, and prosperous community. Regular evaluations and transparent reporting will ensure these initiatives adapt to evolving needs while maintaining alignment with the City's vision.
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, 2024, the fund balance of the City's General Fund sits at $202.93 million, which includes the required General Operating Reserve of 25% ($59.36 million). 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov vii
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, 2023. This was the fourth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an casily readable and efficiently organized annual comprehensive financial report. This eport must satisty both generally accepted accounting principles and applicable legal requirements. I ertificate of Achievement is valid for a period of one vear only. We believe that our current annua comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to FOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance and Management Services Department and oversight from the City Manager's Office. We would like to express our appreciation to all members of other department who assisted and contributed to its preparation. We would also like to express our appreciation to the Mayor and City Council for their leadership and support in maintaining the highest standards of professionalism in the management of the City's Finances.
Respectfully submitted,
2 алія в Силе
eannie Fortune
Interim Director of Finance & Management Services
290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov vili
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, 2023
Chustophe P. Movill
Executive Director/CEO
ix
Citizens of San Bernardino
*
Helen Tran Theodore Sandra Ibarra Juan Figueroa
Mayor Sanchez Ward 2 Ward 3
Ward 1
Fred Shorett Ben Reynoso Kimberly Damon
Ward 4 Ward 5 Calvin Alexander
Ward 6 Ward 7
Sonia R. Rochelle
Carvalho Clayton Genoveva
Appointed Acting City Rocha
City Attorney Manager City Clerk
$
Animal Services Community and Finance
Economic Development
Human Resources Information Parks and Recreation
Technology
Police Public Works Library
CITY OF SAN BERNARDINO, CALIFORNIA
CITY OFFICIALS
JUNE 30, 2024
LEGISLATIVE OFFICIALS
Helen Tran... ...Mayor*
Theodore Sanchez Member of City Council - Ward 1*
Sandra Ibarra........ Member of City Council - Ward 2*
Juan Figuer.... 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
Rochelle Clayton... .Acting City Manager
Miguel J. Guerrero General Manager, San Bernardino Municipal Water Department
DEPARTMENT HEADS
Genoveva Rocha ..City Clerk**
Sonia R. Carvalho. ...Appointed City Attorney**
Jeannie Fortune. ..Interim Director of Finance and Management Services Lynn Merrill... ..Director of Public Works
Kristine Watson.. .... Director of Animal Services
Gabriel Elliott... ..... Director of Community Development and Housing Kenneth Chapa ...Director of Economic Development
Andrea E. Russell. Director of Human Resources and Risk Management 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
xi
DERNARDINO
SAN
CITY OF CALIFORNIA
FO FOUNDED IN I8T0
OF
CITY
•
•
FOUNDED IN 1819
FINANCIAL SECTION
> Independent Auditor's Report
> Management's Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
• Combining Financial Statements and Schedules
SA DERNARDIND
CITY OF CALIFURNIA
FOU FOUNDED IN I8T0
RA
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948|
MS
735 E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F Independent Auditor's Report
ramscpa.net
PARTNERS To the Honorable Mayor and Members of the City Council Scott W. Manno, CPA, CGMA City of San Bernardino, California Leena Shanbhag, CPA, MST. CGMA
Bradferd A. Welebir, CPA, MBA. CGMA
Jenny W. Liu, CPA, MST Report on the Audit of the Financial Statements Gardenya Duran, CPA, CGMA
Brianna Schultz, CPA, CGMA
Opinions
Brenda L. Odle, CPA, MST (Partner Emeritus)
Terry P. Shea, CPA (Partner Emeritus)
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of San Bernardino (the City), as of and for the year ended June 30, 2024, and the related notes
MANAGERS / STAFF
to the financial statements, which collectively comprise the City of San Seong-Hyea Lee, CPA. MBA
Bernardino's basic financial statements as listed in the table of Evelyn Morentin-Barcena, CPA
Veronica Hernandez. CPA
Laura Arvizu, CPA
John Maldonado, CPA, MSA In our opinion, based on our audit and report of the other auditors, the Julia Rodriguez Fuentes, CPA, MA accompanying financial statements present fairly, in all material Demi Hite. CPA
respects, the respective financial position of the governmental Jeffrey McKennan. CPA activities, the business-type activities, each major fund, and the Monica Wysocki, CPA
aggregate remaining fund information of the City, as of June 30, 2024, Jacob Weatherbie. CPA, MSA
and the respective changes in financial position, and, where Bolim Han, CPA, MAcc
Anny Gonzalez, CPA applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of
MEMBERS
American Institute of
Certified Public Accountants We did not audit the financial statement of the Water Enterprise Fund and the Sewer Enterprise Fund (major funds), which represent the PCPS The AICPA Alliance
for CPA Firms following percentages of assets, net position, and expenses of the following opinion units:
Governmental Audit
Quality Center
Opinion Unit Assets Net Expenses
California Society of Position
Certified Public Accountants
Business-type Activities 98.82% 93.67% 99.13 %
Major Enterprise Fund:
Water Enterprise 100.00% 100.00% 100.00%
Proud Member of Fund
AlliottGlobalAlliance* Sewer Enterprise 100.00% 100.00% 100.00 % Fund
- 1 -
STABILITY. ACCURACY. TRUST.
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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2024, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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 Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. - 2 -
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, 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 supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the entity's basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional - 3-
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 GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report/annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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 February 28, 2025 on our consideration of City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance.
Rogers, Anderson, Malody e Scott, LLP.
San Bernardino, CA
February 28, 2025
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City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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, 2024.
We encourage readers to consider the information presented here in conjunction 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.
REQUIRED COMPONENTS OF THE
ANNUAL FINANCIAL REPORT
Management's Required
Basic Financial
Discussion and Supplementary
Statements
Analysis Information
Government- Notes to
Fund Financial
wide Financial Financial
Statements
Statements Statements
Summary → Detail
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 these totals reported as net position.
Over time, changes in the net position may serve as a useful indicator of whether the financial position 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 - 5-
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
City include general government, 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), 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 with 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 statements 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. - 6-
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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 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 government- 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 requirec supplementary information concerning the City's annual required contribution to the Defined Benefit Pensior 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. - 7-
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
Financial Highlights
• At June 30, 2024, the City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $557.11 million (net position). Of this amount, $(140.10) million is unrestricted. • City total net position increased $35.48 million during the fiscal year. Governmental activities net position increased $30.75 million compared to prior fiscal year's increase of $23.37 million. Business-type activities net position increased $4.73 million compared to prior fiscal year's increase of $11.30 million. • As of June 30, 2024, the City's governmental funds reported a combined ending fund balance of $326.33 million, an increase of $46.03 million compared to the prior year. The ending fund balance is primarily identified as: $40.81 million (13 percent) Nonspendable, $125.50 million (38 percent) Restricted, $146.65 (45 percent) Committed, and $13.37 million (4 percent) Assigned. • As of June 30, 2024, the City's proprietary funds (excluding internal service funds) reported a combined ending fund balance of $350.30 million. Of this amount, $69.89 million is unrestricted. • At June 30, 2024, the total committed fund balance for the General Fund was $146.65 million or approximately 72 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.
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City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
Governmental Business-Type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Assets
Current and other assets $480,837,287 $442,217,523 $234,720,127 $240,703,942 715,557,414 $ 682,921,465 Capital Assets, net 298,063,862 288,357,656 332,367,618 310,275,958 630,431,480 598,633,614 Total Assets 778,901,149 730,575,179 567,087,745 550,979,900 1,345,988,894 1,281,555,079 Deferred Outflows of Resources
Pension related items 103,070,052 112,294,022 16,777,336 18,993,725 119,847,388 131,287,747 OPE related items 3,140,927 4,455,556 3,140,927 4,455,556 Total Deferred Outflows of
Resources 103,070,052 112,294,022 19,918,263 23,449,281 122,988,315 135,743,303 Liabilities
Other liabilities 127,892,944 138,406,698 30,615,424 7,114,088 158,508,368 145,520,786 Long-term liabilities 540,859,019 516,975,078 194,875,690 207,248,931 735,734,709 724,224,009 Total Liabilities 668,751,963 655,381,776 225,491,114 214,363,019 894,243,077 869,744,795 Deferred Inflows of Resources
Pension related items 1,627,214 6,011,660 79,454 874,001 1,706,668 6,885,661 OPEB related items 7,857,828 10,062,643 7,857,828 10,062,643 Lease related items 3,182,545 3,744,488 3,275,876 3,555,374 6,458,421 7,299,862 Deferred charges on refunding 1,601,946 1,673,144 1,601,946 1,673,144 Total Deferred Inflows of
Resources 6,411,705 11,429,292 11,213,158. 14,492,018 17,624,863 25,921,310 Net Position
Net investment in capital assets 291,299,450 284,096,740 275,842,317 251,609,753 567,141,767 535,706,493 Restricted 125,500,977 108,916,462 4,566,085 2,221,746 130,067,062 111,138,208 Unrestricted (Deficit) (209,992,894) (216,955,069) 69,893,334 91,742,645 (140,099,560) (125,212,424) Total Net Position $206,807,533 $176,058,133 $350,301.736 $345,574,144 $ 557,109,269 $ 521,632,277 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, 2024, assets and deferred outflows exceeded liabilities and deferred inflows by $557.11 million.
Approximately $567.14 million of the City's net position reflects its net investment in capital assets (eg., 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, $130.07 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 $(140.10) 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.
- 9 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
During the fiscal year ended June 30, 2024, the net position of the City increased by $35.48 million to $557.11 million, as summarized in the following condensed statement of activities.
Governmental Business-Type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Revenues
Program Revenues:
Charges for services $ 34,661,344 $ 35,137,585 $ 92,381,163 $ 88,565,656 $ 127,042,507 $123,703,241 Operating grants and contributions 53,995,221 46,587,633 5,566,773 1,684,006 59,561,994 48,271,639 Capital grants and contributions 13,710 7,855,349 8,613,085 7,869,059 8,613,085 General Revenues:
Property tases 25,438,723 24,088,301 : 25,438,723 24,088,301 Sales tases 108,683,581 109,693,092 : 108,683,581 109,693,092 Franchise tases 15,340,794 13,702,461 15,340,794 13,702,461 Utility user tases 28,671,310 31,208,992 28,671,310 31,208,992 Transient occupancy tases 5,826,493 5,491,564 5,826,493 5,491.564 Cannabis tases 3,234,341 2,105,746 3,234,341 2,105,746
Investment eamings 16,523,617 6,118,231 4,431,653 2,459,693 20,955,270 8,577,924 Other revenues 3,591,493 2,400,348 2,739,590 1,967,839 6,331,083 4,368,187 Total Revenues 295,980,627 276,533,953 112,974,528 103,290,279 408,955,155 379,824,232 Expenses
General govemment 31,816,388 46,596,788 31,816,388 46,596,788 Public safety 135,754,111 113,334,846 135,754,111 113,334,846 Public works 53,457,697 53,632,428 53,457,697 53,632,428 Culture and recreation 4,769,490 3,901,250 4,769,490 3,901,250 Community development 14,025,508 17,593,245 14,025,508 17,593,245 Community service 23,880,014 16,582,420 23,880,014 16,582,420 Interest on long-term debt 1,528,019 1,516,651 1,528,019 1,516,651 Water 55,780,411 48,552,751 55,780,411 48,552,751
Sewer 51,526,396
Integrated Waste
Total Expenditures 265,231,227 91,993,735
Excess (deficiency) of Revenues over
(under) expenditures before
extraordinary items 30,749,400 23,376,325 4,727,592 11,296,544 35,476,992 34,672,869 Change in Net Position 30,749,400 23,376,325 11,296,544 34,672,869 Net Position - beginning 176,058,133 345,574,144 334,277,600 486,959,408 Net Position - ending $ 206,807,533 $ 176,058,133 $350,301,736 $345,574,144 $ 557,109,269 _ $521,632,277 'Beginning in the current fiscal year, the City disaggregated items previously presented as "Other Taxes." The effects of the new classifications have also been presented for the previous fiscal year for comparability purposes.
Changes in Net Position - Governmental Activities
Revenues related to the City's Governmental activities totaled $295.98 million for the fiscal year ended June 30, 2024, an increase of $19.45 million, or 7 percent, from the prior year. 'The primary causes for the overall increase were:
• Operating grants and contributions increased $7.41 million, or 16 percent, due to increased grant receipts for public works grants as well as increased revenues recognized associated with allowable uses of the City's American Rescue Plan Act funding during the year. - 10 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
• Investment revenues increased $10.41 million, or 170 percent due to more favorable market conditions and increased interest rates during the year.
Revenues by Source Governmental Activities- Fiscal Year 2024 Other/Misc 7% Charges for Services,
Other Taxes 13%
Franchise Taxes, 5%, Operating Grants anc
Contributions, 18%
Capital Grants and
Contributions, 0%
Property Taxes, 9%
Sales Taxes, 37%
Expenses related to the City's Governmental activities totaled $265.23 million for the fiscal year ended June 30, 2024, an increase of $12.07 million, or 5 percent, from the prior year. The primary causes for the overall increase were:
• General Government expenses decreased $14.78 million, or 32 percent, from the prior year due primarily to a decrease in the City's general claims liability as a result of the settlement of outstanding claims and a decrease in new claims filed during the fiscal year.
• Expenses related to public safety increased $22.42 million, or 20 percent, from the prior year primarily due to personnel costs associated with the hiring of twenty-six (26) additional officers in the current fiscal year. In addition, the CaPERS adjustment to the Public Safety pension liability increased from the prior year. This liability is adjusted annually based on anticipated returns, the number of retirees, actuarial assumptions, and the number of approved positions. Market conditions, hiring, and other factors influence the liability, which adjusts annually.
• Expenses related to community development decreased $3.57 million, or 20 percent, from the prior year due to reduced activity related to the Emergency Rental Assistance Program (ERAP). In the previous two fiscal years, the program was heavily focused on distributing the allocated funds to beneficiaries through subrecipients, resulting in significant expenses in prior years. The drop in expenses reflects the shift of the program into administrative tasks, including reporting and compliance. - 11 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
• Community service expenses increased $7.30 million, or 44 percent, from the prior yeat 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.
The following chart depicts governmental activity program revenues relative to program expenses:
Governmental Activities Program Revenue and Expense
$160,000.000
$140.000.000
$120,000,000
$100,000,000
$80,000,000
S60,000,000
$40.000.000
$20,000,000
$-
General Government Public Safety Public Works Culture and Community Community Service Recreation Development
• Revenue • Expense
Changes in Net Position - Business-Type Activities
Revenues related to the City's Business-Type activities totaled $112.97 million for the fiscal year ended June 30, 2024, an increase of $9.68 million, or 9 percent, from the prior year, primarily due to:
• Charges for services, which increased $3.82 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, 2023. • Operating grants and contributions, which increased $3.88 million from the prior year due to grant receipts from FEMA for various projects.
• Investment revenues, which increased $1.97 million from the prior year due to more favorable market conditions and increased interest rates during the year. - 12 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
Revenues by Source - Business-Type Activities - Fiscal Year 2024 Capital Grants and Other/Mise
Contributions
Operating Grants and 7%
Contributions
5%
Charges for Services
82%
• Expenses related to the City's Business-Type activities totaled $108.25 million for the fiscal year ended Tune 30. 2024. an increase of $16.25 million, or 18
Dune 30 2024, en inerease of 51 fre milion or 8 percent, ten the prid at Thsprimary drivs, of th accelerated depreciation drastically increasing leading to a sharp increase in depreciation expense.
The following chart depicts Business-Type activity program revenues relative to program expenses:
Business-Type Program Revenues and Expenses
$60,000,000
$50,000,000
$40,000,000
$30.000.000
$20,000,000
$10,000,000
$-
Water Sewer Integrated Waste
• Revenue •Expense
- 13 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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, 2024, the City's governmental funds reported total combined ending fund balances of $326.33 million, an increase of $46.03 million from the prior year. Approximately 45 percent of the City's governmental funds' fund balances, or $146.65 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, $179.68 million, is either assigned, 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, 2024, committed fund balance of the General Fund was $146.65 million, while total fund balance was $202.93 million. As a measure of the General Fund's liquidity, it is useful to compare committed and assigned fund balance to total fund expenditures.
Committed and assigned fund balance represents 78 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 $29.46 million during the current fiscal year, primarily due to the continued strength of tax revenues, particularly franchise tax revenues and cannabis tax collections, as well as significant salary and operational savings due to vacant positions during the year. - 14 -
City of San Bernardino
anagement's Discussion and Analys
or the Fiscal Year Ended Tune 30. 202
2024 2023
Revenues
Tases $ 185,845,486 184,162,626
Licenses and permits 16,348,896 15,878,683
harges for service 6,888,653 2,521,073
Ise of moner and propert 7,677,309 2,828,214
7,210,335 3,077,848
Integorenmental 6,705,990 5,517,843
Total Reventes 230,676,669 220,986,287
Expenditures
Current:
General government 31,664,321 43,336,212
Public safety 113,912,705 103,518,651
Public works 31,903,357 30,969,348
Culture and recreation 4,285,696 3,394,205
Community development 9,156,040 8,903,182
Community service 11,105,561 10,924,077
Debt Service:
Principal 681,604 1,695,078
Interest and fiscal charges 1,356,880 1,381,939
Total Espenditures 204,066,164 204,122,692
Excess (Deficiency) of Revenues Over
(Under) Expenditures 26,610,505 16,863,595
Inception of lease liability 2,966,323 274,653
Net transfers (114,321) (184,353)
Sale of capital assets 500 59,565
Net Change in Fund Balances $ 29,463,007 $ 17,013,460
General Fund revenues for the fiscal year ended June 30, 2024, increased by $9.69 million, or approximately 4 percent, over the prior year. The overall increase was due to the following factors:
• Taxes increased by $1.68 million from the prior year, largely due to increases in collections of utility users taxes and cannabis tax.
shares for services de resed by smilion on the prior ear deeded plan check fees an compared to the prior year.
• Investment earnings associated with the use of money and property increased $4.85 million, primarily the result of the change in the fair value of the City's investments as interest rates increased during the year. • Intergovernmental revenues increased $4.13 million from the prior year due primarily due to reimbursable time for public safety services provided under agreements with surrounding entities that contract for public safety presence. As public safety salaries naturally increase due to COLAs and contract amendments for higher service demands, the amount of reimbursable time also rises, contributing to the overall revenue growth in this category.
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City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
General Fund expenditures for the fiscal year ended June 30, 2024, decreased by $0.05 million, less than 1 percent, under the prior year. The overall decrease was due to the following factors:
• General Government expenditures decreased $11.67 million, or 27 percent from the prior year due to a decrease in the City's general claims liability as a result of the settlement of outstanding claims and a decrease in new claims filed during the fiscal year.
• Public safety expenditures increased $10.39 million, or 10 percent from the prior year as a result of additional positions added as the City continued to restore service levels that had been cut in previous years.
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 increased by $1.11 million and the expenditure budget increased by $60.89 million. Major expenditure budget adjustments included:
$5.66 million in operating carryovers, $27.93 million in CIP carryovers, $1.0 million for additional outside legal services, $2.70 million for Cross Street Bridge emergency repairs, and $6.51 million for various strategic initiatives adopted by the City Council. 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.
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City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes $ 177,807,000 $ 177,807,000 $ 185,845,486 8,038,486 Licenses and permits 12,980,500 12,980,500 16,348,896 3,368,396 Fines and forfeitures 1,454,700 1,454,700 (563,873)
400,000 757,327 7,277,309
Use of money and property 400,000
Lease revenue 740,000 740,000 969,607 229,607
Intergovernmental 1,667,000 3,542,000 7,210,335 3,668,335 Charges for services 9,999,650 9,092,430 6,888,653 (2,203,777) Other revenues 3,726,197 3,869,147 4,845,556 976,409
Total revenues 208,775,047 209,885,777 230,676,669 20,790,892 EXPENDITURES:
Current:
General government
Mayor 305,812 308,962 279,481 29,481
Common council 1,084,346 1,092,321 1,061,509 30,812
City clerk 1,836,829 1,908,667 1,391,383 517,284
City attorney 4,309,583 5,309,583 4,795,033 514,550
City administrator 4,286,070 4,742,896 5,013,188 (270,292) Personnel 2,741.874 3,059,953 2,390,082 669,871
Finance 5,587,998 5,663,903 5,036,403 627,500
Nondepartmental 8,314,255 8,808,451 11,697,24: (2,888,791) Public safety
Police 115,050,227 119,400,630 113,912,705 5,487,925
Public works 27,129,030 65,225,804 31,903,357 33,322,447 Culture and recreation
Park, recreation and community services 4,235,353 4,823,508 4,285,696 537,812 Community development 10,572,325 19,537,200 9,156,040 10,381,160 Community service
Animal services 4,621,705 7,246,058 5,704,194 1,541,864 Library, Other services 7,587,739 11,427,206 5,401,367 6,025,839 Debt service:
Principal 35,000 35,000 681,604 (646,604)
Interest and fiscal charges 1,334,981 1,334,981 1,356,880 (21,899) Total expenditures 199,033,127 259,925,123 204,066,164 55,858,959
REVENUES OVER
(UNDER) EXPENDITURES 2,741,920 (50,039,346) 26,610,505 76,649,851
OTHER FINANCING SOURCES (USES)
Inception of lease liability : 2,966,323 2,966,323
Proceeds from sale of capital asset 500
Net Transfers (150,001) (35,680) (78,641)
(150,001) (35,680) 2312322 2,888,182
Total other financing sources (uses)
CHANGE IN FUND BALANCE § 2,591,912 § (50,075,026) 29,463,007 $ 79,538,033 Fund Balance:
Beginning of year 173,462,555
End of year S 202,925,562
- 17-
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
Revenues, including transfers in, were $20.79 million higher than budgetary estimates as a result of the following:
• Taxes were $8.04 million greater than budget due to the City's conservative revenue projections for the fiscal year. Actual utility user tax collections far exceeded the budget as a result of the increase in the cost of natural gas and other fuels driving the cost of both consumer natural gas and electricity higher. • Intergovernmental revenues were $3.67 million higher than budgeted due to reimbursable time for public safety services provided under agreements with surrounding entities that contract for public safety presence. As public safety salaries naturally increase due to COLAs and contract amendments for higher service demands, the amount of reimbursable time also rises, contributing to the overall revenue growth in this category.
• Use of money and property revenue was $7.28 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 $55.86 million, or 21 percent, lower than budgetary estimates as a result of the following:
• Public safety expenditures were $5.49 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 works expenditures were $33.32 million less than budget, a variance of 51 percent, due to ›ersonnel savings from vacant positions, operations and maintenance savings, and also from amount:
budgeted for to capital projects and equipment that went unspent in the current year. • Community development was $10.38 million less than budget, a variance of 53 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 $7.57 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.
- 18 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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* United States Congress and signed into law on March 11, 2021. Current year revenues totaled $11.98 million and current year expenditures totaled $10.67 million. At June 30, 2024, the fund balance was $2.39 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 $18.35 million and current year expenditures totaled $17.96 million, resulting in an increase in fund balance of $0.39 million for the current year. As of June 30, 2024, the fund balance was $20.06 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, 2024, the City's business-type funds reported total combined ending fund balances of $350.30 million, an increase of $4.73 million from the prior year. Approximately 79 percent of the City's proprietary funds' fund balances, or $275.84 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, 2024, the net position totaled $190.56 million, up from $186.46 million in the prior year. This is due to capital grant revenues increasing from the prior year, largely due the FEMA grant monies being used for projects as intended. Investment income outperformed the prior year due to better market performance resulting in an increase in investment revenue. Water operating revenues also reflect a modest increase due to a rate increase effective July 1, 2023. Total expenses increased 14.9% or $7.2 million. Significant variances were due to increased depreciation expense. The department revised its capital asset categories which accelerated depreciation drastically increasing depreciation expense.
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 $0.70 million to $157.60 million as of June 30, 2024. Total revenues for the Sewer Utility increased 5.7% or $2.8 million, from the prior year, primarily due to a sewer rate increase as approved by the Board effective July 1, 2023. This increase was offset by increased operating expenditures due to increased depreciation expense. The department revised its capital asset categories which accelerated depreciation drastically increasing depreciation expense. - 19 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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, 2024, capital assets totaled $298.06 million for governmental activities anc $332.37 million for business-type activities, net of accumulated depreciation on capital assets, which is recognizec 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 priot fiscal year in the City's capital assets was $31.80 million, or 5 percent.
Governmental Business-Type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Land and easements 104,133,846 $ 104,133,846 23,472,875 $ 23,592,976 $ 127,606,721 $ 127,726,822 Construction in progress 37,843,453 33,406,592 57,146,318 49,357,228 94,989,771 82,763,820 Infrastructure 129,761,896 129,981,793 129,761,896 129,981,793 Buildings and improvements 12,856,815 11,552,629 12,856,815 11,552,629 Machinery, vehicles, and equipment 8,112,577 6,538,777 8,112,577 6,538,777 Purchased software
Right to use leased assets 5,054,777 2,322,274 11,941 59,709 5,066,718 2,381,983 Right to use Subscription IT assets 300,498 421,745 50,811 160,904 351,309 582,649 Water rights, wells, and pumping 52,699,415 51,834,634 52,699,415 51,834,634 Distribution and collection systems 138,552,175 114,329,023 138,552,175 114,329,023 Building, plant, and store yards 53,710,865 37,460,653 53,710,865 37,460,653 Other capital assets 6,723,218 33,480,831 6,723,218 33,480,831 Total Capital Assets, net 298,063,862 $ 282,012,514 332,367,618 $ 310,275.258 $ 630,431,480 § 598,633,614 Major capital asset transactions during the current fiscal year included the following:
• Machinery, vehicles, and equipment additions totaled $3.71 million. • Completed CIP projects for Infrastructure in the City's Governmental Activities totaled $10.08 million, and ongoing construction projects increased by more than $15.11 million. • In the City's Business-Type Activities, the Water Fund capitalized over $19 million in capital projects, including the Reservoir Seismic upgrade project, SBMWD Administration Facility, the Mountain Pressure Zone Main Replacement project, and Sewer Blower Decentralization project.
Additional information on the City's capital assets can be found under Note 6 in the Notes to the Financial Statements.
- 20 -
City of San Bernardino
Tanagement's Discussion and Analysi
or the Fiscal Year Ended Tune 30, 202
As of June 30, 2024, the City had $102.76 million in long-term debt outstanding, a decrease of $0.43 million from the prior year, attributable primarily to the City's annual debt service payments offset by the execution of a new building lease for office space in downtown San Bernardino.
Governmental Business-Type Total
Activities Activities Primary Government
2024 2023 2024 2023 2024 2023
Notes parable 1,922,000 2,776,000 $ $ $ 1,922,000 $ 2,776,000 76422456 78,391,498 76,422,456 78,391,498
Bonds payable
Pension obligation bonds 19,244,388 19,256,916 19,244,388 19,256,916 Lease Liabilities 4,895,228 2,197,868 11,994 59,878 4,907,222 2,257,746 Subscription liabilities 267,238 389,904 122,978 267,238 512,882 Total long term debt $ 26,328,854 $ 24,620,688 $ 76,434,450 $ 78,574,354 $ 102,763,304 _ $ 103,195,042 Additional information on the City's long-term liabilities can be found under Note 7 in the Notes to the Financial Statements.
- 21 -
City of San Bernardino
Management's Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
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 as it continues revitalization efforts after the pandemic. Following a period of steady revenue growth, the City is focusing on restoring and enhancing service levels.
The adopted budgets for fiscal years 2023-24 and 2024-25 reflect 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 operational 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 and expenditures. 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. 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.
The City's local economy has realized steady improvements as its sales and use tax revenues, and its transactions and use tax revenues continued to illustrate growth in the past years. This has provided the City with a solid foundation, with higher than expected reserves.
Fitch Ratings Inc., one of the three nationally recognized statistical rating organizations designated by the U.S.
Securities and Exchange Commission, and is considered as being one of the "Big Three" credit rating agencies," along with Moody's and Standard and Poor's, increase the City's ratings to "At," citing the City's financial resilience which reflects the City's robust reserve built up in recent years.
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.
- 22 -
BASIC FINANCIAL STATEMENTS
CALIFORNIA
•
GOVERNMENT-WIDE FINANCIAL STATEMENTS
City of San Bernardino
Statement of Net Position
June 30, 2024
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 360,556,505 $ 130,112,633 490,669,138 Cash and investments with fiscal agents 41,512 41,512
Receivables:
Accounts, Net 18,019,497 12,138,232 30,157,729
Interest 1,018,314 724,154 1,742,468
Leases - due within one year 524,771 211,681 736,452
Due from other governments 23,819,833 3,528,174 27,348,007 Internal balances 2,986,870 (2,986,870)
Inventory 196,369 1,539,878 1,736,247
Prepaid items 2,264,533 1,009,583 3,274,116
Noncurrent assets:
Lease receivables - due beyond one year 2,836,031 3,266,445 6,102,476 Restricted cash 19,909,149 19,909,149
Restricted investments - Consent Decree (Note 18) 24,448,652 24,448,652 Restricted - other assets 15,753,199 15,753,199
Net OPEB asset 4,566,085 4,566,085
68,573,052 68,573,052
Property held for resale
Investment in joint ventures 20,499,132 20,499,132
Capital assets:
Non-depreciable capital assets 141,977,299 80,619,193 222,596,492 Depreciable capital assets, net 150,731,288 251,685,673 402,416,961 Right to use leased assets, being amortized, net 5,054,777 11,941 5,066,718 Right to use subscription assets, being amortized, net 300,498 50,811 351,309 Total assets 778,901,149 567,087,745 1,345,988,894
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 103,070,052 16,777,336 119,847,388 OPEB-related deferred outflows of resources 3,140.927 3,140,927 Total deferred outflows of resources 103,070,052 19.918,263 122,988,315 - 23 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Net Position (Continued)
June 30, 2024
imary Governme
Governmental usiness-Tyr
Activities Activities Total
LIABILITIES
Accounts payable and accrued liabilities 14,167,152 17,092,248 31,259,400 Payroll and related liabilities 6,724,439 1,340,024 8,064,463 Interest payable 1,312,107 1,423,994
Retentions payable 1,344,202
Unearned revenue 82,682,458 82,682,458
Deposits payable 10,468,702 10,468,702
Noncurrent liabilities:
Due within one year:
Compensated absences 2,956,517 1,704,856 4,661,373
Lease liabilities 1,075,701 11,994 1,087,695
Subscription liabilities 202,495 202,495
Claims payable 7,492,863 7,090,153 14,583,016
Long-term debt 666,528 2,064,042 2,730,570
Due in more than one year:
Deposits payable 3,516,927 3,516,927
Unearned revenue - Consent Decree (Note 18) 40,201,851 40,201,851 Due to Successor Agency 2,232,925 2,232,925
Aggregate net pension liability 470,058,634 72,510,649 542,569,283 Landfill closure liability 3,828,732 3,828,732
Lease liabilities 3,819,527 3,819,527
Subscription liabilities 64,743 64,743
Compensated absences 6,898,541 459,117 7,357,658
Claims payable 37,284,789 37,284,789
Long-term debt 20,499,860 74,358,414 94,858,274
Total liabilities 668,751,963 225,491,114 894,243,077
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 1,627,214 79,454 1,706,668 OPEB-related deferred inflows of resources 7,857,828 7,857,828 Lease-related deferred inflows of resources 3,182,545 3,275,876 6,458,421 Deferred charges on refunding 1,601,946 1,601,946
Total deferred inflows of resources 6,411,705 11,213,158 17,624,863
NET POSITION
Net investment in capital assets 291,299,450 275,842,317 567,141,767 Restricted:
Public safety 2,742,167 2,742,167
Streets and capital projects 30,275,794 30,275,794
Culture and recreation 1,414,688 1,414,688
Grants 2,927,207 2,927,207
Community development 38,991,161 : 38,991,161
Debt service 41,512 41,512
Capital projects 47,029,549 47,029,549
Parks 2,058,062 2,058,062
Opioid Settlement 20,837 20,837
Postemployment benefits 4,566,085 4,566,085
Total restricted 125,500,977 4,566,085 130,067,062
Unrestricted (deficit)
3300350),
Total net position $ 350,301,736
- 24-
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Program Revenues
Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues rimary governmen
overnmental activitie:
General government $ 31,816,387 $ 14,094,038 $ 2,774,534 $ $ 16,868,572 135,754,111 4,422,773 7,551,729 11,974,502
Public works 53,457,697 9,490,376 22,626,117 13,710 32,130,203 Culture and recreation 4,769,490 877,217 80,335 : 957,552 Community development 14,025,508 5,309,603 9,286,713 14,596,316 Community service 23,880,014 467,337 11,675,793 12,143,130 Interest on long-term debt 1,528,019
Total governmental activities 265,231,226 34,661,344 53,995,221 13,710 88,670,275 Business-type activities:
Water 55,780,411 45,656,974 5,566,773 5,130,185 56,353,932 Sewer 51,526,396 46,224,150 2,725,164 48,949,314
Integrated Waste 240,129 500,039 500,039
Total business-type activities 108,246,936 92,381,163 5,566,773 7,855,349 105,803,285 Total primary government $ 373,478,162 $ 127,042,507 $ 59,561,994 $ 7,869,059 $ 194,473,560 - 25 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Net (Expense) Revenue
and Changes in Net Position
Primary Government
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government $ (14,947,816) $ $ (14,947,816)
Public safety (123,779,609) (123,779,609)
Public works (21,327,494) (21,327,494)
Culture and recreation (3,811,938) (3,811,938)
Community development 570,808 570,808
Community service (11,736,884) (11,736,884)
Interest on long-term debt (1,528,019) (1,528,019)
Total governmental activities (176,560,952) (176,560,952) Business-type activities:
Water 573,521 573,521
Sewer (2,577,082) (2,577,082)
Integrated Waste (440,090) (440,090)
Total business-type activities (2,443,651) (2,443,651)
Total primary government (176,560,952) (2,443,651) (179,004,603) General revenues:
Taxes:
Property taxes 25,438,723 25,438,723
Sales taxes 108,683,581 108,683,581
Franchise taxes 15,340,794 15,340,794
Utility user taxes 28,671,310 28,671,310
Transient occupancy taxes 5,826,493 5,826,493
Cannabis taxes 3,234,341 3,234,341
Total taxes 187,195,242 187,195,242
Investment earnings (expense) 16,523,617 4,431,653 20,955,270 Gain (loss) on disposal of assets 5,622 685,022 690,644 Miscellaneous 3,585,871 2,054,568 5,640,439
Subtotal 20,115,110 7,171,243 27,286,353
Total general revenues 207,310,352 7,171,243 214,481,595 Changes in net position 30,749,400 4,727,592 35,476,992 Net Position - beginning of year 176,058,133 345,574,144 521,632,277 Net Position - end of year $ 206,807,533 $ 350,301,736 557,109,269 Thc accupanying nots at an integral part of these inancial salemere.
CITY OF
SAN
•
GOVERNMENTAL FUND FINANCIAL STATEMENTS
City of San Bernardino
Balance Sheet
Governmental Funds
June 30, 2024
Major Funds
American Federal and
Rescue Plan State Grants Gormsal Gonnal
Act Fund
ASSETS
Cash and investments $ 159,369,085 $ 68,036,655 $ 9,640,360 $ 89,088,960 $ 326,135,060 Receivables:
Accounts, Net 13,344,523 3,432,007 1,048,027 17,824,557 292,243 463,762
Interest 18,961 166,984 941,950
Leases 3,360,802 3,360,802
Due from other governments 14,476,694 5946,376 3,396,763 23,819,833 Prepaid items 1,414,229 722,207 83 2,166,519
Due from other funds 3,959,784 3,959,784
Property held for resale 39,362,268 16,784,986 12,425,798 68,573,052 Restricted cash and investments held by fiscal agents 41,512 41,512 Total assets $ 235,651,140 $ 68,500,417 $ 36,544,897 $ 106,126,615 $ 446,823,069
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 11,058,765
Accrued labilities 1,300,290
Payroll and related liabilities 6,485,797
Retentions payable 1,344,202
Due to other funds 972,914
Deposits payable 10,434,133 34,569 10,468,702
Unearned revenue 3,250,884 65,492,855 12,569,689 1,369,030 82,682,458 Due to Successor Agency 2,232,925 2,232.925
Total liabilities 29,389,707 66,111,431 16,479,956 4,564,959 116,546,053 Deferred inflows of resources:
Unavailable revenues 153,326 614,097 767,423
Lease-related deferred inflows of resources 3,182,545 3,182,545 Total deferred inflows of resources 3.335.871 614,097 3,949,968 Fund Balances:
Nonspendable 40.806,497 83 40,806,580
Restricted 2,099,574 2,388,986 20,064,941 100,947,476 125,500,977 Committed 146,649,441 146,649,441
Assigned 13,370,050 13,370,050
Total fund balances 202,925,562 2,388,986 20,064,941 100,947,559 326,327,048 Total liabilities and fund balances $ 235,651,140 $ 68,500,417 $ 36,544,897 $ 106,126,615 $ 446,823,069 - 27 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Reconciliation of the Governmental Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 326,327,048 Amounts 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.
294,066,252
Deferred refunding charges are not available resources and, therefore, are not reported in the funds (1,601,946)
Deferred outflows on pension related items 100,163,644
Deferred inflows on pension related items (1,613,526)
Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds. (111,887)
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 $ (19,750,000)
Notes payable (1,922,000)
Lease liabilities (2,914,845)
Subscription liabilities (108,109)
Bond discount 505,612
Net pension liability (457,567,467)
Compensated absences (9,424,095)
(491,180,904)
Some of the City's receivables for operating and capital grant reimbursements will be ollected after year end, but are not available soon enough to pay for current-perio xpenditures, and therefore, are reported as unavailable revenues in the government funds.
767,423
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 (20,008,571)
Net Position of Governmental Activities $ 206,807,533
- 28 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2024
Major Funds
American Federal and Other Total
General Rescue Plan State Grants Governmental Governmental Fund Act Fund Fund Funds Funds
REVENUES:
Taxes $ 185,845,486 $ 7,404,181 $ 193,249,667
Licenses and permits 16,348,896 396,225 16,745,121
Impact fees 5,050,311 5,050,311
Fines and forfeitures 890,827 1,693,975 2,584,802
Use of money and property 7,677,309 1.662,627 294,416 4,451,672 14,086,024 Lease revenue 969,607 969,607
Intergovernmental 7,210,335 10,321,498 18,054,969 12,589,952 48,176,754 Charges for services 6,888,653 1,988,637 8,877,290
Other revenues 4,845,556 1,951 4,847,507
Total revenues 230,676,669 11,984,125 18,349,385 33,576,904 294,587,083 EXPENDITURES:
Current:
General government 31,664,321 272,971 199,712 32,137,004 Public safety 113,912,705 2,129,060 539,659 116,581,424 Public works 31,903,357 825,889 5,982,440 16,885,258 55,596,944 Culture and recreation 4,285,696 2,560,020 176,900 7,022,616 Community development 9,156,040 1,815,219 1,800,074 306,947 13,078,280 Community service 11,105,561 8,029,784 4,428,293 710,631 24,274,269 Debt service:
Principal 681,604 660,916 1,342,520
Interest and fiscal charges 1,356,880 129,573 1,486,453 Total expenditures 204,066,164 10,670,892 17,963,347 18,819,107 251,519,510
REVENUES OVER
(UNDER) EXPENDITURES 26,610,505 1,313,233 386,038 14,757,797 43.067,573 OTHER FINANCING SOURCES (USES):
Inception of lease liability 2,966,323 2,966,323
Proceeds from sale of capital assets 500 500
Transfers in 114,321 114,321
Transfers out (114,321) (114,321)
Total other financing sources (uses) 2,852,502 114,321 2,966,823 CHANGES IN FUND BALANCES 29,463,007 1,313,233 386,038 14,872,118 46,034,396 FUND BALANCES:
Beginning of year 173,462,555 1,075,753
- 2206201 3 10697550 3 320202653
End of year $ 202,925,562 2,388,986
- 29 -
The accompanying notes are an integral part of these financial statements.
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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 46,034,396 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Government- Capital asset additions, including right to use leased assets $ 21,193,477 Depreciation/amortization expense, including right to use leased assets (11,392,666) Gain on lease modification 5,121 9,805,932
The issuance of long-term debt (i.c. 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 $ 689,000
Principal payments on lease liabilities 608,245
Principal payments on subscription liabilities 45,275
Increase in lease liabilities (2,883,048)
Increase in subscription liabilities (83,275)
Changes in pension related items (25,703,496)
Change in accrued interest payable 6,330
Amortization of bond premium/discount (22,472)
Amortization of deferred gain/loss on refunding of long-term debt 71,198 (27,272,243) 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 (1,055,203)
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. (192,100)
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. 3,428,618
Change in Net Position of Governmental Activities $ 30,749,400 - 30 -
The accompanying notes are an integral part of these financial statements.
CITY OF
SAN
•
PROPRIETARY FUND FINANCIAL STATEMENTS
City of San Bernardino
Statement of Net Position
Proprietary Funds
June 30, 2024
Major Enterprise Funds
Water Sewer
ASSETS
Current assets:
Cash and cash equivalents $ 48,160,342 75,368,083
Accounts receivable, net 6,244,581 5,768,588
Interest receivable 291,396 420,761
Lease receivables 211,681
3,364,521 163,653
Due from other governments
Due from other funds
Inventories 1,539,878
Prepaid items 400,305 609,278
Total current assets 60,212,704 82,330,363
Noncurrent assets:
Lease receivables 3,266,445 -
Restricted assets:
Cash and cash equivalents - capital-related fees 13,174,240 6,734,909 Investments - Consent Decree 24,448,652
Interest receivable - Consent Decree 154,306
Prepaid insurance - Consent Decree 15,598,893
Net OPEB asset 2,414,089 2,151,996
Investments in joint ventures 20,499,132
Non-depreciable capital assets 31,672,777 48,946,416
Depreciable capital assets, net 181,872,892 69,875,533
Total capital assets, net 213,545,669 118,821,949
Total noncurrent assets 272,602,294 148,207,986
Total assets 332,814,998 230,538,349
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 8,605,096 8,172,240 OPEB-related deferred outflows of resources 1,660,608 1,480,319 Total deferred outflows of resources 10,265,704 2,652,559 - 31 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Non-Major Governmental
Enterprise
Fund Activities
Integrated Internal
Waste Total Service Funds
ASSETS
Current assets:
Cash and cash equivalents $ 6,584,208 $130,112,633 $ 34,421,445 Accounts receivable, net 125,063 12,138,232 194,940
Interest receivable 11,997 724,154 76,364
Lease receivables 211,681
Due from other governments 3,528,174
Due from other funds 1,587,938
Inventories 1,539,878 196,369
Prepaid items 1,009,583 98,014
Total current assets 6,721,268 149,264,335 36,575,070
Noncurrent assets:
Lease receivables 3,266,445
Restricted assets:
Cash and cash equivalents - capital-related fees 19,909,149 Investments - Consent Decree 24,448,652
Interest receivable - Consent Decree 154,306
Prepaid insurance - Consent Decree 15,598,893
Net OPEB asset 4,566,085
Investments in joint ventures 20,499,132
Non-depreciable capital assets 80,619,193
Depreciable capital assets, net 251,748,425 3,997,610
Total capital assets, net 332,367,618 3,997,610
Total noncurrent assets 420,810,280 3,997,610
Total assets 6,721,268 570,074,615 40,572,680
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 16,777,336 2,906,408 OPEB-related deferred outflows of resources 3,140,927
Total deferred outflows of resources 19,918,263 2,906,408 - 32 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Major Enterprise Funds
Water Sewer
LIABILITIES
Current liabilities:
ccounts payable and accrued liabilitie 7,187,001 $ 9,166,781 avroll and related liabilitic 682,914 644,533
Due to other funds 1,368,050 1,618,820
Interest payable 822,516 489,591
Deposits payable
Current portion of compensated absences 1,235,913 468,521 Current portion of claims payable 5,986,529 1,103,624
Current portion of lease liabilities 11,994
Current portion of subscription liabilities
Current portion of long term debt 1,247,638 816,404
Total current liabilities 18,542,555 14,308,274
Noncurrent liabilities:
Deposits payable 3,516,927
Unearned revenue - Consent Decree 40,201,851
Aggregate net pension liability 37,190,712 35,319,937
Landfill closure liability
Compensated absences 308,978 149,156
Claims payable
Lease liabilities
Long-term debt 45,291,281 29,067,133
Total noncurrent liabilities 126,509,749 64,536,226
Total liabilities 145,052,304 78,844,500
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 40,752 38,702 OPEB-related deferred inflows of resources 4,154,415 3,703.413 Lease-related deferred inflows of resources 3,275,876
Total deferred inflows of resources 7,471,043 3,742,115 Net Position (Deficit):
Net investment in capital assets 180,168,996 95,673,321 Restricted
Postemployment benefits 2,414,089 2,151,996
Unrestricted (deficit) 7,974,270 59,778,976
Total net position (deficit) $ 190,557,355 157,604,293
- 33-
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2024
Non-Major Governmental
Enterprise Activities
Fund
Integrated Internal
Waste Total Service Funds
LIABILITIES
Current liabilities:
Iccounts payable and accrued liabilitic $ 738,466 $ 17,092,248 $ 1,808,097 ayroll and related liabilitie 12,577 1,340,024 238,642
Due to other funds 2,986,870 1,587,938
Interest payable 1,312,107
Deposits payable
Current portion of compensated absences 1,704,856 129,288 Current portion of claims payable 7,090,153 7,492,863
Current portion of lease liabilities 11,994 446,137
Current portion of subscription liabilities 159,129
Current portion of long term debt 2,064,042
Total current liabilities 751,465 33,602,294 11,862,094 Noncurrent liabilities:
Deposits payable 3,516,927
Unearned revenue - Consent Decree 40,201,851
Aggregate net pension liability 72,510,649 12,191,167
Landfill closure liability 3,828,732 3,828,732
Compensated absences 983 459,117 301,675
Claims payable 37,284,789
Lease liabilities 1,534,246
Long-term debt 74,358,414
Total noncurrent liabilities 3,829,715 194,875,690 51,611,877 Total liabilities 4,581,180 228,477,984 63,473,971
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 79,454 13,688 OPEB-related deferred inflows of resources 7,857,828
Lease-related deferred inflows of resources 3,275,876
Total deferred inflows of resources 11,213,158 13,688
Net Position (Deficit):
Net investment in capital assets 275,842,317 3,997,610
Restricted
Postemployment benefits 4,566,085
Unrestricted (deficit) 2,140.088 69.893,334 (24.006,181) Total net position (deficit) $ 2,140,088 $350,301,736 $ (20,008,571) - 34 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Major Enterprise Funds
Water Sewer
OPERATING REVENUES:
harges for service 45,656,974 $ 46,224,150
ther opcrating revenuc 328,116 1,161,283
Total operating revenues 45,985,090 47,385,433
OPERATING EXPENSES:
Cost of sales and services
Administration and customer service 9,038,195 6,828,593 Utility administration 1,706,977 670,292
Sewer collection and lift stations 2,827,657
Plant operations 11,385,172 13,804,430
Maintenance 3,330,387 4,845,501
Environmental control 892,576
Distribution 6,444,793
Engineering and water quality control 3,074,606 2,030,808 General, administration and overhead 6,884,987 7,040,440 Claims expense
Amortization 157,861
Depreciation 11,973,602 11,411,059
Total operating expenses 53,996,580 50,351,356
OPERATING INCOME (LOSS) (8,011,490) (2,965,923)
NONOPERATING REVENUES (EXPENSES):
Investment income 2,544,768 1,521,068
Rental income 358,472
Noncapital grants 5,566,773
Interest expense and fiscal charges (1,783,831) (1,175,040) Miscellaneous income
Gain on disposal of assets 85,041 599,981
Other 206,697
Total nonoperating revenues (expenses) 6,977,920 246,009 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (1,033,570) (2,019,914)
CAPITAL CONTRIBUTIONS
Acquisition fees 2,152,064
Capital contributions 914,811 712,553
Capacity fces 2,063,310 2,012,611
EPA grants
Total contributions 5,130,185 2,725,164
CHANGES IN NET POSITION 4,096,615 705,250
NET POSITION:
Beginning of year 186,460,740 156,899,043
End of year 190,557,355 157,604,293
- 35 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Non-Major Governmental
Enterprise Fund Activitie
Integrated Interna
Waste Total Service Funds
OPERATING REVENUES:
Charges for services $ 500,039 $ 92,381,163 $ 29,252,997 Other operating revenues 1,489,399 171,071
Total operating revenues 500,039 93,870,562 29,424,068
OPERATING EXPENSES:
Cost of sales and services 940,129 940,129 17,678,880
Administration and customer service 15,866,788
Utility administration 2,377,269
Sewer collection and lift stations 2,827,657
Plant operations 25,189,602
Maintenance 8,175,888
Environmental control 892,576
Distribution 6,444,793
Engineering and water quality control 5,105,414
General, administration and overhead 13,925,427
Claims expense 8,743,968
Amortization 157,861 614,694
Depreciation 23,384,661 441,306
Total operating expenses 240,129 105,288,065 27,478,848 OPERATING INCOME (LOSS) (440,090) (11,417,503) 1,945,220 NONOPERATING REVENUES (EXPENSES):
Investment income (expense) 365,817 4,431,653 1,467,989 Rental income 358,472
Noncapital grants 5,566,773
Interest expense and fiscal charges (2,958,871) (96,622) Miscellaneous income 112,031
Gain on disposal of assets 685,022
Other 206,697
Total nonoperating revenues (expenses) 365,817 8,289,746 1,483,398 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (74,273) (3,127,757) 3,428,618
CAPITAL CONTRIBUTIONS
Acquisition fees 2,152,064
Capital contributions 1,627,364
Capacity fees 4,075,921
EPA grants
Total contributions 7,855,349
CHANGES IN NET POSITION (74,273) 4,727,592 3,428,618
NET POSITION:
Beginning of year (23,437,189)
2214261 30.0.121
End of year $ * (20,008,571
- 36 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Major Enterprise Funds
Water Sewer
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 46,693,240 $ 47,059,249
Cash received from user departments
Nonoperating miscellaneous revenues (expenses)
Cash payments to suppliers for goods and services (20,293,287) (16,330,373) Cash payments to employees for services (17,119,600) (14,646,995) Cash payments for claims and insurance
Cash inflows (outflows) from other activities
Net cash provided by (used in) operating activities 9,280,353 16,081,881
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (18,211,579) (37,392,635) Capital fees received 4,215,374 2,012,611
Proceeds from disposal of assets 692,452 9,498,161
Principal paid on long-term debt (995,000) (770,000)
Principal paid on lease liabilities (47,884)
Principal paid on subscription liabilities (122,978)
Interest paid (2,002,197) (1,197,491)
Net cash (used in) capital and related
financing activities (16,471,812) (27,849,354)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Consent Decree insurance drawdowns 953,693
Operating grants and contributions 2,178,256
Net cash provided by (used in) noncapital financing activities 3,131,949 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments (882,942)
Leasing activities 281,211
Investment income 2,380,585 2,100,552
Net cash provided by investing activities 1,778,854 2,100,552 Net change in cash and cash equivalents (2,280,656) (9,666,921) CASH AND CASH EQUIVALENTS:
Beginning of year 63,615,238 89,678,112
End of year 61,334,582 $ 80,011,191
RECONCILIATION TO STATEMENT OF NET POSITION:
Cash and cash equivalents $ 48,160,342 $ 75,368,083
Restricted cash and cash equivalents 13,174,240 6,734,909 Less those not meeting the definition of a cash equivalent Note 1) 2,091,801) Total cash and cash equivalents 61,334,582 $ 80,011,191 - 37 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Non Major Governmental
Enterprise Fund Activities
Integrated Internal
Waste Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 500,039 $ 94,252,528
Cash received from user departments 29,229,251
Nonopcrating miscellancous revenues (expenses) 112,031
Cash payments to suppliers for goods and services (623,215) (37,246,875) (12,567,004) Cash payments to employees for services (31,766,595) (4,374,554) Cash payments for claims and insurance (14,645,081)
Cash inflows (outflows) from other activities 29,827 29,827 171,071 Net cash provided by (used in) operating activities (93,349) 25,268,885 (2.074,286)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (55,604,214) (191,041)
Capital fees received 6,227,985
Proceeds from disposal of assets 10,190,613
Principal paid on long-term debt (1,765,000) (200,000)
Principal paid on lease liabilities (47,884) (342,676)
Principal paid on subscription liabilities (122,978) (160,666) Interest paid (3,199,688) (113,297)
Net cash (used in) capital and related
financing activities (44,321,160) (1,007,680)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Consent Decree insurance drawdowns 953,693
Operating grants and contributions 2,178,256
Net cash provided by (used in) noncapital financing activities 3,131,949 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments (882,942)
Leasing activities 281,211
Investment income 361,972 4,843,109 1.420,059
Net cash provided by investing activities 361,972 4,241,378 1,420,059 Net change in cash and cash equivalents 268,623 (11,678,954) (1,661,907) CASH AND CASH EQUIVALENTS:
Beginning of year 6,315,585 159,608,935 36,083,352
End of year 6,584,208 S 147,929,981 $ 34,421,445
RECONCILIATION TO STATEMENT OF NET POSITION:
Cash and cash equivalents 6,584,208 $ 130,112,633 $ 34,421,445 Restricted cash and cash equivalents 19,909,149
Less those not meeting the definition of a cash equivalent (Note 1) (2,091,801) Total cash and cash equivalents 6,584,208 $ 147,929,981 $ 34,421,445 - 38 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Major Fincerprise Funds
Water Sewer
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ (8,011,490) $ (2,965,923)
Nonoperating miscellaneous revenues (expenses)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 12,131,463 11,411,059
Residual nonoperating revenues and expenses 206,697
Changes in operating assets and liabilities:
Receivables, net 550,067 (326,184)
Due from other governments
Inventories (93,455)
Prepaid items (80,281) (69,470)
Pension-related deferred outflows of resources 1,064,609 1,151,780 OPEB-related deferred outflows of resources 650,577 664,052 Accounts payable and accrued liabilities 4,567,058 7,306,454 Payroll and related liabilities 57,523 75,494
Due to other funds 394,048 313,197
Deposits payable (48,614) 415,302
Landfill closure liability
Aggregate net pension liability 1.481,506 887,312
OPEB obligation/asset (1,261,626) (1,082,713)
Compensated absences 206,653 32,025
Claims payable (1,064,922) (200,602)
Pension-related deferred inflows of resources (404,202) (390,345) OPEB-related deferred inflows of resources (1,065,258) (1,139,5572 Total adjustments 17,291,843 19,047,804
Net cash provided by (used in) operating activities $ 2,280,353 $ 16,081,881
NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions $ 914,811 $ 712,553
Acquisition of right-to-use leased assets
Non-cash from capital and related financing activities 914,811 $ 712,553 - 39 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
Non-Major Governmental
Enterprise Fund Activities
Integrated Internal
Waste Total Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ (440,090) $ (11,417,503) $ 1,945,220 Nonoperating miscellaneous revenues (expenses) 112,031
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 23,542,522 1,056,000
: 206,697
Residual nonoperating revenues and expenses
Changes in operating assets and liabilities:
Receivables, net 223,883 (24,118)
Due from other governments 29,827 29,827 372
Inventories (93,455) 8,971
Prepaid items (149,751) (1,463,558)
Pension-related deferred outflows of resources 2,216,389 807,522 OPEB-related deferred outflows of resources 1,314,629
Accounts payable and accrued liabilities 594,793 12,468,305 2,321,147 Payroll and related liabilities 185 133,202 65,972
Due to other funds 707,245
Deposits payable 366,688
Landfill closure liability (271,819) (271,819)
Aggregate net pension liability 2,368,818 (951,126)
OPEB obligation/asset (2,344,339)
Compensated absences (6,245) 232,433 102,203
Claims payable (1,265,524) (5,901,113)
Pension-related deferred inflows of resources (794,547) (153,809) OPEB-related deferred inflows of resources (2,204,815)
Total adjustments 346,741 36,686,388 (4,131,537)
Net cash provided by (used in) operating activities (93,349) $ 25,268,885 (2,074,280)
NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions $ - S 1,627,364 $
Acquisition of right-to-use leased assets 897,622
$ - $ 1,627,364 $ 897,692
- 40 -
The accompanying notes are an integral part of these financial statements.
SAN
CALIFORNIA
•
FOUNDED IN I8IO
FIDUCIARY FUND FINANCIAL STATEMENTS
City of San Bernardino
statement of Fiduciary Net Positiot
Fiduciary Funds
June 30, 2024
uccessor Agenc
o the Economi
Development
Community Agency
Facilities of San Bernardino
District Private-Purpose
Custodial Fund Trust Fund
ASSETS
Cash and investments $ 1,280,611 $ 9,599,237
Cash and investments with fiscal agents 7,643,940
Receivables:
Accounts 4,000
:
Interest 10,618
Due from other governments 17,714
Due from City 2,232,925
Prepaids 434,548
Total assets 1,298,325 19,925,268
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 2,802,294 : 639,813
Deferred loss on refunding of bonds
Total deferred outflows of resources 3,442,107
LIABILITIES
Accounts payable 3,767
Accrued liabilities 4,536
Deposits payable : 4,532
Interest payable 171,062
Due to bondholders
Long-term liabilities:
Due in one year
Current portion of long-term debt 8,065,000
Due in more than one year
Aggregate net pension liability 8,195,289
Long-term debt 14,874,429
Total liabilities 3,779 31,314,848
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 841,462
Total deferred inflows of resources 841,462
NET POSITION (DEFICIT)
Restricted for:
Individuals, organizations, and other governments 1,294,546 Held in trust for dissolution of EDA (8,788,035)
Total net position (deficit) $ 1,294,546 $ (8,788,935)
- 41 -
The accompanying notes are an integral part of these financial statements.
City of San Bernardino
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2024
successor Agenc
to the Economi
Development
Community Agenc
Facilities f San Bernardin
District Private-Purpose
Custodial Fund Trust Fund
ADDITIONS:
Property taxes $ 1,479,320 $ 6,683,599
Investment income 716,134
Total additions 1,479,320 7,399,735
DEDUCTIONS:
Administration 64,548
Redevelopment 826,007
Payments to CFD trustee 609,670
Debt service - interest and fiscal charges 931,356
Total deductions 674,218 1,757,303
Changes in Net Position 805,102 5,642,370
NET POSITION (DEFICIT):
Beginning of period 489,444 (14,431,305)
End of period 1,294,546 (8,788,935)
- 42 -
The accompanying notes are an integral part of these financial statements.
LA DERNARDINO
CITY OF CALIFORNIA
•
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, 2024
NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 43
Cash and Investments 58
3 Notes Receivable 63
4 Interfund Receivables, Payables, and Transfers 64
5 Property Held for Resale 64
6 Capital Assets 65
7 Long-Term Liabilities 67
8 Leases 81
9 Subscription- Based Information Technology Arrangements 85 10 Special Assessment Debt with No City Commitment 86
Compensated Absences 87
12 Claims and Judgments Payable 88
13 Pension Plans 90
14 Other Postemployment Benefits 106
15 Other Required Disclosures 112
16 Fund Balance Classification 113
17 Net Investments in Capital Assets 114
Landfill Closure Liability 114
19 Successor Agency Trust for Assets of Former Redevelopment Agency 114 20 Consent Decree 115
21 Jointly Governed Organizations and Joint Ventures 116 22 Commitments and Contingencies 118
23 Restatement 119
24 Change in Accounting Estimate 119
25 Subsequent Events 119
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 1 - Summary of Significant Accounting Policies
The basic financial statements of the City of San Bernardino, California (City) have been prepared in conformity ith Generally Accepted Accounting Principles of the United States of America (U.S. GAAP) as applied t overnmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standar 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 City 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 organization, 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 purposes 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.
- 43 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 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 making 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 Net 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, function 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 restricted 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 for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 focal st cu meat ancho focus an) deferred oldis destines, ideribs (conomi esources measurement tocus. a
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 revenue 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 separate section for deferred inflows of resources, which represent an acquisition of net position that applies to a future periods) and so will not be recognized as an inflow of resources (revenue) until that time.
Amounts reported as program revenues include: 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 gencral revenues 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. Balances between the governmental activities and the business-type activities are presented as internal balances and eliminated in the total primary government column.
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 available 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 fiscal period. Reimbursements under state and federal grants are accrued if received within 180 days of the end of the fiscal period to 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 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, and 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. - 46 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, opcrations, 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 or 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. - 47 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 estimated 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 available 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. - 48-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 business-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 rehabilitating their homes, and first time buyers assistance loans. Loan repayment terms range from due at the sale of the property to 60 years. A majority of the loans to the developers 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 recorded as prepaid items in both government-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 restricted fund balance when proceeds from the sale must be used for restricted purposes or as nonspendable fund balance when such proceeds are not - 49 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 Icase liabilities with an initial, individual value of t the commencement of a lease, the City initially measures the lease liability at the present value ( ayments expected to be made during the lease term. Subsequently, the lease liability is reduced by tl 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 lease 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. - 50 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 and 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, trattic control devices, streetlights, and right-of-way corridors within the City, are capitalized if the initial individual cost exceeds $200,000. Capital 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 outlays 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 capital 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 government-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. The City has elected to use the Basic Approach for reporting its infrastructure systems.
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 variances. 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 debt 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. - 52 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 city recognizes subscription liabilities with an initial individual value of $50,000 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 subscription 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, 2024, 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 13). 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. - 53 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 Junc 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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 beer 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, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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. - 54 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) S. Fund Balances (Continued)
On November 21, 2018, the Mayor and City Council adopted the General Fund Reserve Policy, setting a 15% 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, 2024 were calculated utilizing the fiscal year 2024-2025 adopted General Fund expenditure budget of $237,453,690.
On October 7, 2020, the 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 language, 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, 2024 totaled $86,734,706.
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 restricted 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. - 55-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 for 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.
- 56 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 1 - Summary of Significant Accounting Policies (Continued) W. 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 X. 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.
Y. 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, 2024. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections (GASB 100). The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes, and addresses corrections of errors in previously issued financial statements. Under this statement, the accounting and financial reporting for each type of accounting change and error corrections are prescribed.
No specified financial line item is affected bv the implementation of this statement. Implementing GASB 100 itself does not require restating beginning balances for cumulative effect. - 57 -
City of San Bernardino
Notes to the Basic Financial Statement
For the Fiscal Year Ended June 30, 202.
Note 2 - Cash and Investments
Cash and investments, as of June 30, 2024, are classified in the accompanying financial statements as follows:
Government-Wide Statement of Net Position Fiduciary Funds Governmental Business-Type Statement of
Activities Total Net Position Total
Cash and investments $ 360,556,505 $ 130,112,633 $ 490,669,138 10,879,848 $ 501,548,986 Cash and investments with fiscal agent 41,512 41,512 7,643,940 7,685,452 Restricted cash 19,909,149 19,909,149 19,909,149
Restricted investment - Consent Decree (Note 17) 24,448,652_ 24,448,652 24,448,652 Total cash and investments $ 360,598,017 $ 174,470,434, $ 535,068,451 18,523,788 $ 553,592,239 Cash and investments, as of June 30, 2024, consist of the following:
Cash:
Cash on hand $ 11,035
Deposits with financial institution 50,101,056
Total cash 50,112,091
Investments:
Investments 459,122,347
Investments held by bond trustee 44,357,801
Total investments 503,480,148
Total cash and investments $ 553,592,239
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 th California Government Code and the City's investment policy. The table also identifies certain provisions o 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. - 58 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 2 - Cash and Investments (Continued)
A. Investments Authorized by the California Government Code and the City's Investment Policy (Continued)
Maximum Maximum Percentage Maximum Investment in
Authorized Investment Types Maturity Of Portfolio One Issuer* United States Treasury Obligations 5 Years None None
United States Federal Agency Securities 5 Years None None Bonds, Notes, or Registered Warrants 5 Years 30% None
Issued by the State of California or Local
Agencies within the State of California
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 agreements, rache hah chelseal providenties the invistmen Governat at al orize for in invesens helicy tha trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum Percentage Maximum Investment
Authorized Investment Types Maturity Allowed in One Issuer United States Treasury Obligations None None N/A
United States Federal Agency Securities None None None
Bonds, Notes, or Registered Warrants 5 Years None None
Issued by the State of California or Local
Agencies within the State of California
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
- 59-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as 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 Maturities
Investment Type Total 1 year or fewer 1to 2 years Over 2 years Local Agency Investment Fund $ 116,158,451 $ 116,158,451 Money market mutual funds 202,825,203 202,825,203
701,307 459,750
Certificates of deposit 1,161,147
Non-U.S. government and supranational bonds 2,979,272 3,905,863 3,256,250 2,817,159 Federal agency securities 78,445,259 30,230,695 28,660,842 19,553,722 U.S. Treasury obligations 34,864,444 4,295,766 30,568,678 Medium-term corporate notes 31,910,522 5,359,887 16,256,889 10,293,746 Asset backed securities 8,226,701 157,901 645,603 7,423,197 Held by bond trustee:
Money market mutual funds 19,909,149 19,909,149
Total investments $ 503,480,148 $ 378,547,149 $ 53,816,747 $ 71,116,252 - 60 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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 -S 116,158,451 N/A $ $ 116,158,451 Money market mutual funds 202,825,203 AA+ 202,825,203
Certificates of deposit 1,161,147 N/A 701,397 459,750
Non-U.S. government and supranational bonds 9,979,272 AA 9,979,272 Federal agency securities 78,445,259 AA 78,445,259
U.S. Treasury obligations 34,864,444 N/A 34,864,414
Medium-term corporate notes 31,910,522 AA- 10,856,565 21,053,957 Asset backed securities 8,226,701 AA 8,226,701
Held by bond trustee:
Money market mutual funds 19,909,149 AA+ 19,909,149
Total investments S 503,480,148 5 330.0943,546 3 21.053,957 3 151.482,645 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:
Reported Percentage
Issuer Investment Type Amount of Portfolio
Federal Home Loan Bank Federal Agency Securities $ 37,919,917 7.53% 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 credit 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. - 61 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024, 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 Local 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 mcasurements), inputs are quoted price of similar assets in active markets (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, 2024:
Investments measured by fair value level: June 30, 2024 Level 1 Level 2 Level 3 Non-U.S. government and supranational bonds $ 9,979,272 $ 9,979,272 $ Federal agency securities 78,445,259 78,445,259
U.S. Treasury obligations 34,864,444 11,453,594 23,410,850 Medium-term corporate notes 31,910,522 31,910,522
Asset backed securities 8,226,701 8,226,701
Total investments by fait value level S 1633426,198 S 11,453,524 $ 151,972,604 $ Investments not subject to the fair value hierarchy:
Local Agency Investment Fund S 116,158,451
Money market mutual funds 222,734,352
Certificates of deposit 1,161,147
Total investments not subject to the fair value hierarchy $ 340,053,950 Total investments $ 503,480,148
- 62 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 doubtful 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, 2024, notes receivable consisted of the following:
Allowance for Financial
Notes Receivable Doubtful Accounts Statement
Balance Balance Balance
June 30, 2024 June 30, 2024 June 30, 2024
-
City:
Federal and State Grants Fund $ 12,762,917 $ (12,762,917) $ Low and Moderate Income Housing Fund 28,339,722 (28,339,722) Total City 41,102,639 (41,102,639)
Successor Agency:
Successor Agency to the Economic Development
Agency of San Bernardino 2,966,868 — (2,966,868)
Total Successor Agency 2,966,868 (2,966,868)
Total $ 44,069,507 (44,069,507) $
- 63-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 4 - Interfund Receivables, Payables, and Transfers A. Due To / From Other Funds
Amounts due to and due from other funds at June 30, 2024, were as follows:
Due From Other Funds Due To Other Funds Purpose
Tiability Insurance Internal Service Fund Motorpool Internal Service Fund Overdrawn Cash Overdrawn Cash
Right-of-way maintenance
Right-of-way maintenance
Total $ 5,547,722
B. Transfers
Interfund transfers during the year ended June 30, 2024, consisted of the following:
Transfers In Transfers Out Amount Purpos
Special Assessments Fund General F'und Budgeted Operational Transf 111,321
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 recorded 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 amount 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 53 properties ranging in amount from approximately $5,000 to $1.81 million, and total $12.43 million. - 64-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 6 - Capital Assets
A. Governmental Activities
Capital asset activity for the year ended June 30, 2024 was as follows:
Balance Balance
July 1, 2023 Additions Deletions Transfers -June 30, 2024 Capital assets, not being depreciated:
Land $ 104,133,846 $ $ - $ $ 104,133,846
Construction in progress 33,406,592 14,521,274. 10,084,413)_ 37,843,453 Capital ces, ringe depr being depreciate 137,540,438 14,521,274 (10,084,413) 141,977,299 Infrastructure 520,332,829 6,492,676 526,825,505
Buildings and improvements 84,433,384 3,591,737 88.025.121 Machinery, vehicles, and equipment 52,985,373 3,705,881 (26,924) 56.664,330 Lease asset - buildings and improvements 1,937,564 2,883,047 (1,664,197) 3,156,414 Lease assct - machinery, vehicles, and equipment 1,712,746 1,088,733 (132,679) 2,668,800 Right to use Subscription IT Assets 570,838 83,275 654,113 Subtotal 661.972.734 7,760,936 (1,823,800) 10.084.413 677,994,283 Less accumulated depreciation/amortization
Infrastructure (390,351,036) (6,712,573) (397,063,609)
Buildings and improvements (72,880,755) (2,287,551) (75,168,306) Machinery, vehicles, and equipment (46,446,599) (2,132,078) 26,924 (48,551,753) Lcase asset - buildings and improvements (1,172,696) (630,510) 1,536,861 (266,345) Lease asset - machinery, vehicles, and equipment (155,340) (481,432) 132,680 (504,092) Right to use Subscription IT Assets (149.093) (204,522) (353,615) Subtotal (511,155,519) (12,448,666) 1,696,465 (521,907,720) Capital assets being depreciated, net 150.817.215 (4,687,730) (127,335) 10.084.413 156.086.563 Intangible assets, being amortized:
Purchased software 5.946,327 5,946,327
Accumulated amortization (5,946,327) (5,946,327)
Subtotal
Total capital assets, net $ 288.357.653 $ 9,833,544 $ (127,335) S $ 298,063,862 Depreciation and amortization expense for the year ended June 30, 2024 were charged to the functions/programs of the primary government as follows:
Governmental activities
General government $ 2,005,755
Public safety 1,098,508
Public works 7,234,735
Culture and recreation 662,973
Community services 390,695
Internal service funds 1,056,000
Total depreciation/amortization expense - Governmental activities $ 12,448,666 - 65 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 6 - Capital Assets (Continued)
B. Business-Type Activities
Capital asset activity for the year ended June 30, 2024, was as follows:
Balance
A 32023, Additions Deletions Transfers June 30, 2024
Capital assets, not being depreciated:
Land and easements $ 23.592,976 $ $ (120,101) S $ 23,472,875 49,357,228 11,357,914 (33,568,824) 57,146,318
Cost cion in poets nor being depreciated = 72,950,204 41,357,914 80,619,193 (120,101) (33,568,824)
pital assets, being depreciate
ater rights, wells, and pumpi 125,105,615 651,756 (16,041,905) 109,715,466 Distribution and collection systems 209,135,664 3,430,284 (5,561,243) 5,253,056 212,257,761 Building, plant, and store yards 160,171,027 7,869,675 (8,384,774) 28,315,768 187,971,696 Other capital assets 32,405,597 3,921,949 (11.439 942' 24,887,604 Lease asset - buildings and improvements 155.243 155,243 Right to use Subscription IT Assets 246.706 246,706
Subtotal 527,219,852 15,873,664 (41,427,864) 33,568,824 535,234,476 Less accumulated depreciation
Water rights, wells, and pumping (57,643,989) 5,197,773 5,825,711 (57,016,051) Distribution and collection systems (72,939,989) 6,316,215 5,550,618 (73,705,586) Building, plant, and store yards (132,595,470) (9,991,005) 8.325.644 (134,260,831) Other capital assets (26,533,314) (1,879,668) 10.248,596 (18,164,386) Lease assct - buildings and improvements (95,534) (47,768) (143,302) Right to use Subscription IT Assets (85,802) (110,093) (195,895) Subtotal (289,894,098) (23,542,522) 29,950,569 (283,486,051) Total capital assets, being depreciated 237,325,754 (7,668,858) (11,477,295) 33,568,824 251,748,425 Total capital assets, net 3 310,275,958 $ 33,689,056 $ (11,597,396) 332,367,618 Depreciation and amortization expense for the year ended June 30, 2024 was charged to the functions/programs of the primary government as follows:
Business-type activities
Water Enterprise Fund $12,131,463
Sewer Enterprise Fund 11,411,059
Total depreciation/amortization expense - Business-type activities $23,542,522 - 66 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024:
Classification
Balance Debt Balance Due in More
July 1, 2023 Retired June 30, 2024 One Year Than One Year Governmental Activities:
2020 Pension Obligation Bonds $ 19,785,000 $ (35,000) $ 19,750,000 $ 35,000 $ 19,715,000 Bond discount (528,084) 22,472 (505,612) (22,472) (483,140) Direct borrowings:
otes payab.
UD Section 108 - Arden Guthr 2,576,000 (654,000) 1,922,000 654,000 1,268,000 :
Tow Services Settlement Agreement 200,000 (200,000)
Total notes payable 2,776,000 (854,000) 1,922,000 654,000 1,268,000 Lease liabilities (Note 8)
Lease liabilities 2,197,868 3,780,740 (1,083,380) 4,895,228 1,075,701 3,819,527 Total lease liabilities 2,197,868 3,780,740 (1,083,380) 4,895,228 1,075,701 3,819,527 Subscription liabilities (Note 9)
Subscription liabilities 83.275 (205,941 267,238 202,495 64.743 Total subscription liabilities (205,941) 64,743
Total $ 24,620,688 3,864,015 $ (2,155,849) $ 26,328,854 - $ 1,944,724 24,384,130 - 67 -
City of San Bernardino
Notes to the Basic Financial Statements
Fot the Fiscal Year Ended June 30, 2024
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 event of default, the principal due on the Bonds is subject to acceleration. The bonds consist of serial bonds maturing from 2021 through 2046 in annual installments of $15,000 to $2,355,000. Interest is due and payable semi- The annual debt service requirements of the Pension Obligation Bonds outstanding at June 30, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
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 190,000 1,305,619 1,495,619
2030-2034 1,825,000 6,269,400 8,094,400
2035-2039 4,000,000 5,342,794 9,342,794
2040-2044 7,720,000 3,510,338 11,230,338
2045-2047 5,655,000 583,875 6,238,875
Total $ 19,750,000 $22,319,214 $ 42,069,214
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 approximately 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.
- 68 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
2025 $ 654,000 91,012 $ 745,612
2026 634,000 54,778 688,778
2027 634,000 18,291 652,291
Total $ 1,922,000 $ 164,681 $ 2,086,681
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" thereafter via a zero interest note payable. This obligation was paid off in full during the fiscal year, with no remaining - 69 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 7 - Long-Term Liabilities (Continued)
B. Business-Type Activities
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2024:
Classification
Balance Balance Due within Due in More
July 1, 2023 Issued Retired . June 30, 2024 One Year Than One Year Business-Type Activities:
Bonds payable:
2016 Water Revenue Bonds $ 43,120,000 $ $ (995,000) $ 42,125,000 $ 1,050,000 $ 41,075,000 Bond premium 4,611,557 (197,638) 4,413,919 197,638 4,216,281 2016 Sewer Revenue Bonds 30,510,000 (770,000) 29,740,000 810,000 28,930,000 Bond premium 149,941 (6,404) 143,537 6,404 137,133
Total bonds payable 78,391,498 (1,969,042) 76,422,456 2,064,042 74,358.414 Lease liabilities (Note 8)
Lease liabilities 59,878 (47,884) 11,994 11,994
Total lease liabilities 59,878 (47,884) 11,994 11,994
Subscription liabilities (Note 9)
Subscription liabilities 122,978 (122,978)
Total subscription liabilities 122,978 (122,978)
Total $78,574,354 $ (2,139,904) $ 76,434,450 $ 2,076,036 74,358,414 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. The 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 $4,413,919. - 70 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 The annual debt service requirements for the 2016 Water Revenue Bonds outstanding at June 30, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
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 1,280,000 1,712,388 2,992,388
2030-2034 7,300,000 7,659,688 14,959,688
2035-2039 2,055,000 5,901,106 14,956,106
2040-2044 11,585,000 3,366,900 14,951,900
2045-2047 8,380,000 593,763 8,973,763
Total $ 42,125,000 $26,077,772 $ 68,802,772
Pledoed 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, 2024, total principal and interest paid was $2,990,513, and net revenues were $12,796,683. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $68,802,772.
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 ended June 30, 2024, at each measurement.
- 71 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 of $143,537.
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 evenues pledged for the payment of debt service. In the event of default, the bond trustee may take hatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2024, $29,740,000 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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
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 965,000 1,003,897 1,968,897
2030-2034 5,345,000 4,488,641 2,833,641
2035-2039 6,470,000 3,360,600 9,830,600
2040-2044 7,905,000 1,928,100 2,833,100
2045-2047 5,560,000 339,600 5,899,600
Total $29,740,000 $15,491,163 $ 45,231,163
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, 2024, total principal and interest paid was $1,964,275, and net revenues were $9.966,201. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $45,231,163.
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 7 - Long-Term Liabilities (Continued)
В. 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 30, 2024, 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, 2024:
Classification
Balance Balance Due within Due in More
July 1, 2023 Issued Retired June 30, 2024 One Year Than One Year Fiduciary Activities:
Tax allocation bonds:
Series 2005A, Refunding $ 7,645,000 $ $ 2,420,000 $ 2,555,000 Series 2005B, Refunding 2,725,000 875,000 930,000
Series 2016A, Refunding 9,530,000 2,610,000 4,495,000
Series 2016B, Refunding 4,015,000 865,000 2,315,000
Series 2021A, Refunding 3,180,000 440,000 2,300,000
Unamortized discount (20,676) (16,082)
Unamortized premium 2,349,290 2,025,511
Total tax allocation bonds 29,423,614 7,609,185) 21,814,429 7,210,000 14,604,429 Mortgage revenue bonds:
Highland Senior Housing 1995 395,000 (120,000) 275,000 130,000 145,000 Casa Ramona Senior Housing 1995 345,000 (105,000) 240,000 115,000 125,000 Total mortgage revenue bonds 740,000 (225,000) 515,000 245,000 270,000 Certificates of participation:
1999 Certificates of Participation 1,190,000 (580,000) 610,000 610,000 Total certificates of participation 1,190,000. (580,000) 610,000 610,000 Total $31,353,614 $ $ (8,414,185) $ 22,939,429 $ 8,065,000 $ 14,874,429 - 73-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 Allocatior Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the 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 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 $2,636,488. The balance held in the reserve account as of June 30, 2024 was $3,323,038. At June 30, 2024, $4,975,000 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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
2025 $ 2,420,000 $ 216,488 $ 2,636,488
2026 2,555,000 73,456 2,628,456
Total $4,975,000 $ 289,944 $ 5,264,944
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 Allocatior Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the An Allocat on lodion Refunding Bond, Sere dia (ed pree inabiticians be removed Frogshe 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 $956,738. The balance held in the reserve account as of June 30, 2024 was $1,150,585. At June 30, 2024, $1,805,000 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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
2025 $ 875,000 $ 78,631 $ 953,631
2026 930,000 26,738 956,738
Total $ 1,805,000 $ 105,309 $ 1,910,369
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 the amount of $2,900,000. As of June 30, 2024, the reserve requirement was met through the City's purchase of a Surety policy in-lieu of the cash reserve requirement. At June 30, 2024, $7,105,000 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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
2025 $ 2,610,000 $ 290,000 $ 2,900,000
2026 2,550,000 161,000 2,711,000
2027 295,000 72,375 1,067,375
2028 135,000 44,125 179,125
2029 140,000 37,250 177,250
2030-2032 675,000 62,125 737,125
Total $ 7,105,000 $ 666,875 $ 7,771,875
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 recan Boods, raing Series 200, to pil 2016, the Cipal Mond De Be So, Scie re and Tax Allocation Bonds,
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 mature 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, 2024, the reserve requirement was met through the City's purchase of a Surety policy in-lieu of the cash reserve requirement.
At June 30, 2024, $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 2016B outstanding at June 30, 2024 are as follows:
Year Ending
June 30, - Principal Interest Total
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 $ 3,180,000 $ 243,838 $ 3,423,838
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 7 - Long-Term Liabilities (Continued)
C. Fiduciary Fund Financial Statements (Continued)
Tax Allocation Refunding Bonds, Series 2021A
account, and to pay certain costs of issuance.
The Series 2021A 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 $484,345. As of June 30, 2024, the reserve requirement was met through the City's purchase of a Surety policy in-lieu of the cash reserve requirement.
At June 30, 2024, $2,740,000 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, 2024 are as follows:
Year Ending
June 30, PrincipalInterest Total
2025 $ 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 470,000 14,345 484,345
2030 475,000 4,916 479,916
Total $ 2,740,000 $ 148,926 $ 2,888,926
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 The annual debt service requirements for the Highland Senior Housing Mortgage Revenue bonds outstanding at June 30, 2024 are as follows:
Year Ending
June 30, Principal
130,000 146,013
Total $ 275,000 21,541 296,541
Casa Ramona Senior Housing 1995 Mortgage Revenue Bonds
The Multifamily Housing Revenuc Bonds 1995 Serics (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 Bonds (Casa Ramona Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2024 are $240,000. 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. - 79 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024 are as follows:
Year Ending
June 30, Principal Interest — Total
2025 $ 115,000 $ 14,372 129,372
2026 125,000 4,922 129,922
Total 240,000 $ 19,294 259,294
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 - 80 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 7 - Long-Term Liabilities (Continued)
C. Fiduciary Fund Financial Statements (Continued)
1999 Certificates of Participation (Continued)
inder the lease agreements.
maden the lease are seric. A lese 0, 2nd is required to bi maintairs 02671 md amule ca Tax Trust Fund, as a result of the dissolution of the redevelopment agency. The Certificates that represen 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, 2024 are as follows:
Year Ending
June 30, Principal Interest Total
2025 $ 610,000 $ 16,775 $ 626,775
Total $ 610,000 $ 16,775 $ 626,775
Note 8 - Leases
A. Lease Liabilities and Right to Use Leased Assets
Governmental Activities
The City has entered into sixty-five (65) leases as lessee for the use of buildings, equipment, and vehicles.
The leases have payments that range from $3,096 to $397,800 and interest rates that range from 0.6450% to
8.01%. As of June 30, 2024, the total value of the lease liabilities was $4,895,228. The total value of the right to use assets as of June 30, 2024 of $5,825,214 with total accumulated amortization of $770,437 is included with the lease class activities in the table found below.
Right to use leased assets include the following at June 30, 2024:
Governmental Activities
Lease Accumulated
Asset Class Asset Value Amortization
Buildings and improvements $ 3,156,414 $ 266,345
Machinery, vehicles, and equipment 2,668,800 504,092
Total $ 5,825,214 $ 770,437
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City of San Bernardino
Votes to the Basic Financial Statement:
For the Fiscal Year Ended Tune 30, 202
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:
Governmental Activities
Year Ending
June 30, Principal Interest Total
2025 $ 1,075,701 $ 188,077 $1,263,778
2026 1,160,324 139,167 1,299,491
2027 1,248,820 86,385 1,335,205
2028 1,233,553 31,082 1,264,635
2029 176,830 2,030 178,860
Total $ 4,895,228 $ 446,741 $5,341,969
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, 2024, the value of the lease liability was $11,994. 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, 2024 of $155,243 rith accumulated depreciation of $143,302 is included with Buildings and Improvements on the Lease Cla ctivities table found below. The Water fund has 3 extension options, each for 12 month Right to use leased assets include the following at June 30, 2024:
Business-type Activities
Lease Accumulated
Asset Class Asset Value Amortization
Buildings and improvements $ 155,243 $ 143,302
Total $ 155,243 $ 143,302
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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:
Business-type Activities
Year Ending
June 30, Principal Interest Total
2025 $ 11,994 $ $ 12,000
Total 11,994 6 $ 12,000
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, 2024, the valuc of the Icase receivable was $3,122,981 and the value of the deferred inflow of resources was $2,957,230. 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, 2024, the value of the lease receivable was $237,821. 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, 2024 was $225,315, and the City recognized lease revenue of $103,991 during the fiscal year. The lessee has 2 extension options, each for 24 months.
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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:
Governmental Activities
Year Ending
June 30, Principal Interest Total
2025 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 297,278 8,988 306,266
2030-2034 970,150 22,378 992,528
2035-2039 227,112 1,875 228,987
Total $ 3,360,802 $ 95,891 $3,456,693
Business-Type Activities
The Water fund leases land to various companies for installation of cellular towers and fiberoptic ommunications. The terms range from 27 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 23 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, 2024, the measurement of the lease receivable was $78,972.
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City of San Bernardino
Votes to the Basic Financial Statement
For the Fiscal Year Ended June 30, 202‹
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:
Business-type Activities
Year Ending
June 30, Principal Interest Total
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 253,024 39,202 292,226
2030-2034 1,384,886 134,768 1,519,654
2035-2039 613,849 52,257 666,106
2040-2044 318,450 2,856 328,306
Total $ 3,478,126 $ 428,088 $3,906,214
Note 9 - Subscription- Based Information Technology Arrangements A. Governmental Activities
The City has entered into five (5) SBITA contracts. The subscriptions have payments that range from Future principal and interest requirements to maturity for the subscription liabilities are as follows:
Governmental Activities
Year Ending
June 30, Principal Interest Total
2025 $ 202,495 $ 2,676 $ 212,171
2026 23,295 2,435 25,730
2027 24,147 1,583 25,730
2028 17,301 699 18,000
Total 267,238 $ 14,393 $ 281,631
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City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 9 - Subscription- Based Information Technology Arrangements (Continued) B. Business-Type Activities
The Water Fund had entered into various subscriptions as the subscriber for the use of software as a service. An initial subscription liability was recorded in the amount of $240,706 during the prior fiscal year.
The terms of the subscriptions ranged from 21 to 33 months. As of June 30, 2024, the total subscription liability was paid in full. The value of the subscription assets as of June 30, 2024 is $246,706, with an accumulated amortization of $195,895.
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, not 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 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 $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, 2024, was $3,465,000.
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City of San Bernardino
Notes to the Basic Financial Statements
Fot the Fiscal Year Ended June 30, 2024
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 tinance the tinance 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, 2024, was $2,700,000.
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, 2024, was $2,935,000.
Noncommittal debt amounts issued and outstanding at June 30, 2024 are as follows:
Outstanding
Original Balance
Amount June 30, 2024
CFD No. 2020-1 (Rancho Palma) $ 3,505,000 $ 3,465,000
CFD No. 2021-1 (Ferree Street) 2,775,000 2,700,000
CFD No. 2018-2 (Verdemont Ranch) 2,945,000 2,935,000
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 probable 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, 2024 is as follows:
Classification
Balance Balance Due within Due in More
July 1, 2023 Additions DeletionsJune 30, 2024 One Year Than One Year Governmental activities $ 8,697,652 S 10,147,586 $ (8,990,180) $ 9,855,058 $2,956,517 6,898,541 Business-type activities 1,931,540 1,285,041 (1,052,608) $ 2,163,973. 1,704,856 459,117 Total $10,629,192 _ $ 11,432,627 S(10,042,788) $12,019,031 $4,661,373 $ 7,357,658 - 87 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 11 - Compensated Absences (Continued)
Compensated absences of the primary government are obligations of the following funds:
Governmental activities
Governmental Funds $ 9,424,095
Workers Compensation 13,285
Liability Insurance 14,271
Motorpool 82,773
Information Systems 320,634
Total - Governmental activities $ 9,855,058
Business-type activities
Water Fund $ 1,544,891
Sewer Fund 617,677
Integrated Waste Fund 1,405
Total - Business-type activities $ 2,163,973
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 coverage 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.
- 88 -
City of San Bernardino
Notes to the Basic Financial Statement
For the Fiscal Year Ended June 30, 202.
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:
Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
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 2023-2024 30,334,643 (2,478,614) (4,031,742) 23,824,287 Changes in the workers' compensation claims liability for the governmental activities for the past three fiscal years are as follows:
Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
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
2023-2024 20,344,122 5,321,469 (4,712,226) 20,953,365
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:
Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
2021-2022 $ 2,591,779 $ 2,350,000 $ $ 4,941,779
:
2022-2023 4,941,779 3,413,898 8,355,677
2023-2024 8,355,677 (1,265,524) - 7,090,153
The City maintains third party insurance coverage for general liability claims in business-type activities. - 89 -
City of San Bernardino
Votes to the Basic Financial Statement:
For the Fiscal Year Ended June 30, 202
Note 13 - Pension Plans
A. Summary
Net Pension Liability
Net Pension Liability is reported in the accompanying statements of net position as follows:
Net Pension
Liability
CaPERS Miscellaneous Plan - City $ 201,418,468
CaPERS Safety Plan - City 341,150,815
Subtotal - City 542,569,283
CaIPERS Miscellaneous Plan - Successor Agency 8,195,289 Total $ 550,764,572
Deferred Outflows of Resources
Deferred Outflows of Resources are reported in the accompanying statements of net position as follows:
Differences Between
Differences Berween Differences Between Employer's Contributions Pension Contributions Changes of Expected and Expected and Actual and Proportionate Share Made after the Assumptions Investment Earnings of Contributions Measurement Date Total CaPERS Miscellancous Plan - Ciry 2,738,038.00 21,456,256 21,679,675 46,771,204 CaPERS Safety Plan - City 5,894,125 8.613,853 27,397,000 31.171.206 73.076,184 Subrotal - City 6,781,360 11,351,891 48,863,256 52,850,881 119,847,388 CaPERS Miscellancous Plan - Successor Apency 494,786 418,660 1.326,891 128. 2.802,294 Total 7,276,1463 11,770,551 50,190,1475 428 53,412,410 3 122,649,682 Deferred Inflows of Resources
Deferred Inflows of Resources are reported in the accompanying statements of net position as follows:
Differences Between
Differences Between Employer's Contribution Change in
Expected and nd Proportionate Shar Employer's
Actual Experience of Contributions Total
CaPERS Miscellaneous Plan - City 220,708 proportion.
$ $ 220,708
CaPERS Safety Plan - City 1,485,960 1,485,960
Subtotal - City 1,706,668 1,706,668
CaPERS Miscellancous Plan - Successor Agency 64,944 138,583 637,935 841,462 Total 1,771,612 $ 138,583 $ 637,935 $ 2,548,130
- 90-
City of San Bernardino
Notes to the Basic Financial Statement
For the Fiscal Year Ended June 30, 202.
Note 13 - Pension Plans (Continued)
A. Summary (Continued)
Pension Expense
Pension expenses are included in the accompanying financial statements as follows:
Net Pension
Expense
CaPERS Miscellaneous Plan - City $ 32,731,972
CaPERS Safety Plan - City 49,327,826
Subtotal - City 82,059,798
CaPERS Miscellaneous Plan - Successor Agency 578,495
Total $ 82,638,293
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 Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State 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 CaPERS employees that do not meet the PEPRA qualifications previously described. CalPERS issues publicly available reports that include a full descripion o no pete calan eine Genes opte cans is annuin and mepbe hip be ominod from the CalPERS Executive Office - 400 P Street, Sacramento, CA 95814.
Benefits Provided
CaPERS 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. - 91 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 13 - Pension Plans (Continued)
B. City Plans (Continued)
Benefits Provided (Continued)
CaPERS California Public Employees' Pension Reform Act (PEPRA) members become eligible for service retirement upon attainment of age 62 with at least 5 vears of service. The service retirement benefit is a monthly allowance cqual to the product of the bencfit factor, years of servicc, and final compensation. The inal compensation is the monthly average of the member's highest 36 or 12 consecutive months' fulltim quivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% 1
2.7% of the average final 12 months 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. Retirement 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 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 survivors), 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 retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%.
- 92 -
City of San Bernardino
Notes to the Basic Financial Statement
For the Fiscal Year Ended June 30, 202.
Note 13 - Pension Plans (Continued)
B. City Plans (Continued)
Employees Covered
At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for cach Plan:
Miscellaneous Safety
Active employees 718 263
Transferred and terminated employees 1,163 236
Retired employees and beneficiaries 1,577 773
Total 3,458 1,272
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 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 cal he contin me of many between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2024, the average active miscellaneous and safety employee contribution rates were 7.76% and 10.38% of annual pay, respectively, and the employer's contribution rates were 12.00% and 21.90% of miscellaneous and safety employee annual payroll, respectively.
Contributions
For the fiscal year ended June 30, 2024, the plan's contributions made for each Plan was as follows:
Miscellaneous Safety Aggregate Total
Contributions - employer 21,679,675 $ 31,171,206 $ 52,850,881 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.
- 93 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 13 - Pension Plans (Continued)
B. City Plans (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 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 7.15%
Mortality Rate Table Derived using CalPERS' Membership Data for all Funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on
Purchasing Power applies, 2.30% thereafter
All other actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period from 2001 to 2019, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be found on the CaPERS 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 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. - 94-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 celes ed wing the capital make storation plied ro derermine the discount race and asse allocation Assumed Real Return!?
Asset Class Asset Allocation
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 Deb 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
Total 100.00%
'An expected inflation of 2.30% used for this period.
'Figures 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 he municipal bond rate should be used in the calculation of a discount rate for each plan, CaPERS stress ested plans that would most likely result in a discount rate that would be different from the actuariall 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 calculation is not necessary.
The long term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement und (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 - 95-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended Tune 30, 2024
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:
Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2022 (Valuation Date) $ 652,643,491 $ 457,805,070 $ 194,838,421 Changes in the year:
Service cost 9,004,227 2,004,227
Interest on the total pension liabilities 44,442,513 44,442,513 Changes in benefit terms 203,765 903,765
Differences between expected and actual experience 5,019,737 5,019,737 Benefit payments, including refunds of members contributions (37,949,459) (37,949,459) Plan to plan resource movement
Contributions - employer 20,980,767 (20,980,767)
Contributions -employee ... | 3,922,981 (3,922,981)
Net investment income 28,223,095 (28,223,095)
Administrative expenses (336,648) 336,648
Net changes 21,420,783 14,840,736 6,580,047
Balance at June 30, 2023 (Measurement Date) $ 674,064,274 $ 472,645,806 201,418,468 Safety Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2022 (Valuation Date) $ 913,308,867 $ 588,513,382 $ 324,795,485 Changes in the year:
Service cost 9,864,774 9,864,774
62,487,151 : 62,487,151
Interest on the total pension liabilities
Changes in benefit terms 376,158 376,158
Differences between expected and actual experience 13,680,825 13,680,825 Benefit payments, including refunds of members contributions (53,374,715) (53,374,715) Plan to plan resource movement
Contributions - employer : 30,412,551 (30,412,551)
Contributions - employee 3,616,358 (3,016,358)
Net investment income 36,457,434 (36,457,434)
Administrative expenses (432,765) 432,765
Net changes 33,034,193 16,678,863 16,355,330
Balance at June 30, 2023 (Measurement Date) $ 946,343,060 $ 605,192,245 $ 341,150,815 - 96-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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:
Plan's Aggregate Net Pension Liability/ (Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan 287,559,255 $ 201,418,468 $ 130,397,298 Safety Plan $ 467,593,095 $ 341,150,815 $ 237,938,015
Aggregate Total $ 755,152,350 $ 542,569,283 $ 368,335,313 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, 2024, the City recognized pension expense in the amounts of $32,731,972 and $49,327,826, for the miscellaneous and safety plans, respectively.
The amortization period differs depending on the source of the gain or loss. The difference between tojected and actual earnings
priceine overun avengs is peori emainin 5 years strive of al Moles amt as arovind vice 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 2022-23 measurement period is 2.2 vears, which was obtained by dividing the total service years of 7,412 (the sum of remaining service lifetimes of the active employees) by 3,334 (the total number of participants: active, inactive, and retired). The EARSI for the Safety Plan for the 2022-23 measurement period is 2.7 years, which was obtained by dividing the total service years of 3,324 (the sum of remaining service lifetimes of the active employees) by 1,253 (the total number of participants:
active, inactive, and retired).
- 97 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 13 - Pension Plans (Continued)
B. City Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 21,679,675 $
Difference between projected and actual
earning on pension plan investments 21,466,256
Changes in assumptions 887,235
Differences between expected and actual experience_ 2,738,038 Total $ 46,771,204 $ (220,708)
Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 31,171,206 $
Difference between projected and actual
earning on pension plan investments 27,397,000
Changes in assumptions 5,894,125
Differences between expected and actual experience 8,613,853 Total $ 73,076,184 $ (1,485,960)
Aggregate Totals
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 52,850,881 $
Difference between projected and actual
earning on pension plan investments 48,863,256
Changes in assumptions 6,781,360
Differences between expected and actual experience 11,351,891 Total $ 119,847,388 $ (1,706,668)
- 98-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 13 - Pension Plans (Continued)
B. City Plans (Continued)
For the Miscellaneous Plan and Safety Plan, $21,679,675 and $31,171,206, 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, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Fiscal Year Deferred Outflows/ (Inflows) of Resources
Ending June 30, Miscellaneous Plan Safety Plan
2025 $ 6,654,118 14,139,777
2026 2,424,454 5,952,053
2027 15,218,862 19,638,837
2028 573,387 688,351
$ 24,870,821 40,419,018
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 provisions, assumptions and membership information that can be found on the CaPERS website. Copies of the CalPERS annual financial report may be obtained from the CaPERS 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. - 99 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 enereditsd sevice. There is no special to 1 eg eminal The sandard, on indistial disability Tendemi enetit 1s a monthly allowance equ:
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 survivors), or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustments to cach employee's retirement 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, 2023, the measurement date, the following employees were covered by the benefit terms the Plan:
Successor Agency
Active employees
Transferred and terminated employees 24
Retired employees and beneficiaries 69
Total 93
- 100-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 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, 2022 (the measurement date), the active employee and employer contribution rate was 0.00%, as there were no longer any active employees of the Successor Agency.
For the year ended June 30, 2024, employer contributions made for the Successor Agency Miscellaneous Cost-sharing Plan were $561,529.
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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2023, the City reported net pension liability for its proportionate shares of the net pension liability of the Successor Agency Miscellaneous Plan as follows:
Increase (Decrease)
Plan Total Pension Plan Fiduciary Net Plan Net Pension
Liability Position Liability/ (Asset)
Balance at: 6/30/22 (Valuation date) $ 22,234,965 $ 14,298,674 $ 7,936,291 Balance at: 6/30/23 (Measurement date) 22,361,990 14,166,701 8,195,289 Net Changes during 2022-2023 127,025 (131,973) 258,998
- 101 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2022). 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, 2023). 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, 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2022-23).
(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 gencrated in (4). The plan's FNP as of the Measurement Date is cqual to the FNP gencrated 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, 2022 and 2023 was as follows:
Proportion June 30, 2022 0.16961%
Proportion June 30, 2023 0.16389%
Change - Increase (Decrease) 0.00571%
For the year ended June 30, 2024, the City recognized pension expense in the amount of $578,495 for the Successor Agency Miscellaneous Plan.
- 102 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 of loss. The difference between The EARSL for PERF C for the measurement date ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to O. Total future service is based on the members probability of decrementing due to an event other than receiving a cash refund.
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Successor Agency Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date $ 561,529 $ -
Difference between projected and actual earnings on
pension plan investments 1,326,891
Adjustment due to differences in proportions (637,935)
Changes in assumptions 494,786
Difference between actual and expected experience 418,660 (64,944) Difference between employer's actual contributions
and proportionate share of contributions 428 (138,583)
Total $ 2,802,294 $ (841,462)
For the Successor Agency Miscellaneous Plan, $561,529 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, 2025. - 103-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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:
Deferred Outflows/
Fiscal Year (Inflows) of
Ending June 30, Resources
2025 210,852
2026 179,868
2027 970,509
2028 38,074
$ 1,399,303
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2023 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The total pension liability was based on the following actuarial methods and 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 CaPERS' 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
- 104 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 nunicipal bond rate should be used in the calculation of a discount rate for each plan, CaPERS stres ested plans that would most likely result in a discount rate that would be different from the actuariall 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 on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the 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.
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.
Assumed Real Retum!2
Asset Class Asset Allocation
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%
'An expected inflation of 2.30% used for this period.
¿Figures are based on the 2021-22 Asset Liability Management study. - 105 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 s scellaneous ras, calculated using ate discount rare for the Successor d be i i ella eus pet as te discount rate that is one percentage point lower or one percentage point higher than the current rate:
Plan's Aggregate Net Pension Liability/ (Asset)
Discount Rate - 1% Current Discount Discount Rate +1%
(5.90%) Rate (6.90%) (7.90%)
$ 11.219,653 $ 8,195,289 5,705,977
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CaPERS financial reports.
Payable to the Pension Plan
At June 30, 2024, 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, 2024.
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 City'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.
- 106 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 anc 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 bencfit 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, 2023 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
- 107 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 an implied subsidy were $580,575.
Net OPEB Liability
The Department's net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2022 that was rolled forward to determine the June 30, 2023 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 Rate' CaPERS 2021 Experience Study
Healthcare Trend Rate Non-Medicare - 6.8% for 2023, decreasing to an ultimate rate of 3.9% in 2076 and later.
Medicare - 5.4% for 2022, decreasing to an ultimate
rate of 3.9% in 2076 and later.
The long-term expected rate of return on OPEB plan investments was determined using a building-block The bot in em espered race of rene
allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for cach major asset class are summarized in the following table:
Assumed Expected Real
Asset Class Asset Allocation 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 10000%
- 108-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 14 - Other Postemployment Benefits (Continued)
B. Water Department (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 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:
Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/ (Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Measurement Date 6/30/22) $ 33,106,372 $ 35,328,118 $ (2,221,746) Changes Recognized for the Measurement Period:
Service Cost 809,059 809,659
Interest on the total OPEB liability 2,066,543 : 2,066,543 Changes in benefit terms
Changes in assumptions
71.804 71,864
Differences between expected and actual experience
Contributions - employer 2,331,720 (2,331,720)
: 2,970,846 (2,970,846)
Net investment income
Benefit payments, including refunds of member
contributions (1,702,700) (1,702,700)
Administrative expenses (10,161) 10,161
Net Changes during July 1, 2022 to June 30, 2023 1,245,366 3,589,705 (2,344,339) Balance at June 30, 2024 (Mcasurement Datc 6/30/23) $ 34,351,738 $ 38,917,823 $ (4,566,085) - 109-
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2023:
Plan's Net OPEB Liability/ (Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.25%) Rate (6.25%) (7.25%)
(4,566,085) (8,468,502)
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, 2023:
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)
$ (9,044,973) (4,566,085) 1,014,604
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 actual carnings 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.
- 110 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024, the Department recognized OPEB income of $1,446,918. As of fiscal year ended June 30, 2024, the Department reported deferred outflows of resources related to OPEB from the following sources:
Deferred outflows Deferred inflows
of Resources of Resources
OPEB contributions made subsequent to the
measurement date $ 1,783,630 $
Differences between expected and actual experience 94,664 5,156,242 Changes of assumptions 2,701,580
Net difference between projected and actual carnings on OPEB plan investments 1,262,633
$ 3,140,927 $ 7,857,828
The $1,783,030 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:
Fiscal Year OPEB
Ending June 30 Expense
2025 $ (1,957,124)
2026 (1,970,133)
2027 (783,069)
2028 (1,092,921)
2029 (709,508)
Thereafter 12,224
$ (6,500,531)
C. Successor Agency
The Successor Agency (Agency) administers a single employer defined benefit healthcare plan (the Plan).
The Agency provides medical and dental plan coverage for retirees and their eligible surviving dependents. it Tune 30. 2024
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.
- 111 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 15 - Other Required Disclosures
A. Expenditures Exceeding Appropriations
For the year ended June 30, 2024, expenditures exceeded appropriations in the below functions of the following funds:
Excess Expenditures
Fund Function over Appropriations
General Fund General government: City manager $ (270,292) General Fund General government: Nondepartmental (2,888,790) General Fund Debt Service: Principal (646,605)
General Fund Debt Service: Interest and fiscal charges (21,899) Federal and State Grants
Special Revenue Fund Debt Service: Principal (6,916)
Federal and State Grants
Special Revenue Fund Debt Service: Interest and fiscal charges (814) B. Deficit Fund Balances/Net Position
At June 30, 2024, the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(209,992,893).
At June 30, 2024, the following proprietary funds, and fiduciary funds have deficits that are anticipated to be funded from future grants, other revenues and operating transfers:
Fund Type Fund Deficit
Internal Service Workers' Compensation Fund $ (17,689,057) Internal Service Liability Insurance Fund (260,825)
Internal Service Motorpool Fund (2,977,997)
Fiduciary Successor Agency to the Economic Development (8,788,935) Agency of San Bernardino Private-purpose
Trust Fund
As of June 30, 2024, 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 experienced 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.
- 112 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 16 - Fund Balance Classification
Fund balances as of June 30, 2024, for the governmental funds were categorized as nonspendable, restricted, committed, assigned, or unassigned for the following purposes:
Major Funds
Federal
American and State Other
General Rescue Plan Grants Governmental
Fund Act Fund Fund Funds Total
Nonspendable
Prepaid expenditures $ 1,444,229 - s 83 $ 1,444,312
Property held for resale 39,362,268 39,362,268
Total nonspendable 40,806,497 83 40,806,580
Restricted
Housing 19,526,720 19,464,441 38,991,161
Grants 2,388,986 538,221 2,927,207
Street improvements 23,870,686 23,870,686
Cable TV 1,414,688 1,414,688
Law enforcement 2,742,167 2,742,167
Transportation 6,380,319 6,380,319
Sewer 24,789 24,789
Debt service 41,512 41,512
Capital projects 47,029,549 47,029,549
Parks 2,058,062 2,058,062
Opioid Settlement 20,837 20,837
Total restricted 2,099,574 2,388,986 20,064,941 100,947,476 125,500,977 Committed
General Plan Update 551,312 551,312
Measure S 86,734,706 86,734,706
Emergency reserve 35,618,054 35,618,054
Economic contingency reserve 23,745,369 23,745,369
Total committed 146,649,441 146,649,441
Assigned
Continuing appropriations 13,370,050 13,370,050
Total assigned 13,370,050 13,370,050
Total fund balances $202,925,562 $ 2,388,986 $20,064,941 $ 100,947,559 $326,327,048 - 113 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 17 - Net Investment in Capital Assets
The Government-wide Statement of Net Position reports net investment in capital assets as follows:
Governmental Business-type
Activities Activities Total
-
Total capital assets, net $ 298,063,862 $ 332,367,618 $ 630,431,480 Less related debt:
Bonds payable (76,422,456) (76,422,456)
Lease liabilities (4,895,228) (11,994) (4,907,222)
Subscription liabilities (267,238) - (267,238)
Less related deferred inflows of resources:
Deferred charge on refunding (1,601,946) (1,601,946)
Unspent bond proceeds 19,909,149 19,909,149
Net investment in capital assets 291,299,450 $ 275,842,317 $ 567,141,767 Note 18 - Landfill Closure Liability
The City operated a municipal 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 the 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 $3,828,732 at June 30, 2024, 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 "Economic Development Agency" or "EDA") as a blended component unit within the City's financial statements. - 114 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 the 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 governmental 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, 2024, the Successor Agency had a deficit net position of $8,788,935 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 Bernardino 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 consists 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. - 115 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 rotecion Ass (E) of the Sof and years he speat and maintain the genot ste metronion nd treatment svstem tor a period of 50 vears.
operations and maintenance and $10 million 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 (i) 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 managed by PFM Asset Management. The balance of restricted investments held at June 30, 2024 is $24,448,652.
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 Norton 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. - 116 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Note 21 - Jointly Governed Organizations and Joint Ventures (Continued) San Bernardino International Airport Authority
In May 1992, the City entered into a joint powers 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 members from the City and one cach 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 Bernardino 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. - 117 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water facilities. A three-member board consisting of one representative 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 management 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 carriers). 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.
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, 2024. The actuary used a general approach that relied 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 $51.87 million for the primary government as of June 30, 2024.
These lawsuits and claims may be compromised and/or discharged pursuant to a plan of adjustment confirmed in the Bankruptcy Case.
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.
- 118 -
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 dialone him pric the ems othe grand intuing amous send adiced, l ta to constitute a liability of the City.
Note 23 - Restatement
During fiscal year 2024, the City undertook a review of its capital assets and reclassified certain assets from their original categories to more appropriate classifications. The reclassifications were necessary to better reflect the nature and usage of these assets within the City's operations. As a result, adjustments were made to restate these capital assets and the associated accumulated depreciation as of the beginning of the fiscal year. The following is a summary of the effects of the change in the Business-Type Capital Asset Activity schedule:
July 1, 2023,
As Previously Reclassification July 1, 2023,
Reported of Assets As Restated
Capital assets, being depreciated:
Water rights, wells, and pumping 106,804,721 18,300,894 125,105,615 Distribution and collection systems 187,341,632 21,794,032 209,135,664 Building, plant, and store yards 169,276,158 (9,105,131) 160,171,027 Other capital assets 63,395,392 (30,989,795) 32,405,597 Subtotal 526,817,903 526,817,903
Less accumulated depreciation
Water rights, wells, and pumping (55,307,597) (2,336,392) (57,643,989) Distribution and collection systems (72,394,398) (545,591) (72,939,989) Building, plant, and store yards (132,096,206) (499,264) (132,595,470) Other capital assets (29,914,561) 3,381,247 (26,533,314) Subtotal (289,712,762) (289,712,762)
Total capital assets, being depreciated 237,105,141 237,105,141 Note 24 - Change in Accounting Estimate
During the fiscal year 2024, the City changed its estimate of the useful lives of certain capital assets to better reflect the expected service lives of these assets based on updated usage pattens and maintenance practices. The change in estimated useful lives is considered a change in accounting estimate and is accounted for prospectively. The effect of this change on the current year depreciation expense for business-type activities was an increase of $10.8 million between the Water and Sewer funds. This change will also impact depreciation expense in future periods.
Note 25 - Subsequent Events
Subsequent events have been evaluated through the date of the auditor's report, February 28, 2025 which is the date the financial statements were available to be issued. - 119 -
NERNARDINO
SAN
CITY OF CALIFORNIA•
FO FOUNDED IN 1810
REQUIRED SUPPLEMENTARY INFORMATION
City of San Bernardino
Required Supplementary Information
Budgetary Information
For the Fiscal Year Ended June 30, 2024
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 transters, 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, 2024, budgets were legally adopted for all City funds except the following:
Special Revenue Funds
Opioid Settlement Fund
Sewerline Maintenance 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 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. - 120 -
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Fiscal Year Ended June 30, 2024
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule - American Rescue Plan Act Special Revenue Fund For the Fiscal Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Ise of money and propert $ 1,662,627 $ 1,662,627
ntergovernmenta = 8.158,951 10,321,498 4,162,647
Total revenues 6,158,851 11,984,125 5,825,274
EXPENDITURES:
Current:
Public works
Public works 40,208,171 825,889 39,382,282
Total Public works 40,208,171 825,889 39,382,282
Community development
Community development 8,248,702 1,815,219 6,433,483
Total community development 8,248,702 1,815,219 6,433,483 Community service
Other 31,716,148 8.029,784 23,686,364
Total community service 31.716.148 8,029,784 23,686,364 Total expenditures 80,173,021 10,670,892 69.502,129
REVENUES OVER
(UNDER) EXPENDITURES (74,014,170) 1,313,233 75,327,403
CHANGE IN FUND BALANCE § (74,014,170) 1,313,233 $ 75,327,403 FUND BALANCE:
Beginning of year 1,075,753
End of year 2,388,986
- 122 -
City of San Bernardino
Required Supplementary Informatior
Budgetary Comparison Schedule - Federal and State Grants Special Revenue Func For the Fiscal Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property $ $ 294,416 $ 294,416
5.125,247 57,591,337 18,054,969 (39,536,868)
Intergovernmental
Other revenues 4,569,853
Total revenues 9,695,100 57,591,837 18,349,385 (39,242,452) EXPENDITURES:
Current:
General government
City manager 450,000 3,949,795 251,623 3,698,172
Finance 25,748 21,348 4,400
Total general government 450,000 3,975,543 272,971 3,702,572 Public safety
Police 1.821,036 2,720,779 2,129,060 7.591,719
Total public safety 1,821,036 2,720,779 2,129,060 7,591,719 Public works
Public works 1,148,757 21,140,250 5,982,440 15,457,810
Total Public works 1,148,757 21,440,250 5,982,440 15,457,810 Culture and recreation
Park, recreation and community services 2,680,208 2,560,020 120,188 Total culture and recreation 2.680,208 2,560,020 120,188 Community development
Community development 5,208,399 12,152,581 1,800,074 10,352,507 Total community development 5,208,399 12,152,581 1,800,074 10,352,507 Community service
Other 2,427,166 18,635,611 4,428,293 14,207,318
Total community service 2,427,160 18,635,611 4,428,293 14,207,318 Debt Service:
Principal 654,000 654,000 660,916 (6,916)
Interest and fiscal charges 128,759 128,752 129,573 (814) Total expenditures 11,838,117 69,387,731 17,963,347 51,424,384
REVENUES OVER
(UNDER) EXPENDITURES (2,143,017) (11,795,894) 386,038 12,181,932 CHANGE IN FUND BALANCE $ (2,143,017) § (11,795,894) 386,038 $ 12,181,932 FUND BALANCE:
Beginning of year 19678,903
End of year $ 20,064,941
- 123 -
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, 2024
City Miscellaneous Plan - 53
As of June 30, 2024
Measurement Period 2013-14 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
(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 lan fiduciary net position as a percentage of th
otal pension liabili 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% - 124 -
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, 2024
City Miscellaneous Plan - 53
As of June 30, 2024
Measurement Period 2018-19 2019-20 2020-21 2021-22 2022-23 Total Pension Liability
Service cost $ 7,264,944 $ 7,172,248 $ 6,924,948 $ 8,097,764 $ 9,004,227 Interest on total pension liability 40,448,534 41,512,677 42,640,458 43,069,901 44,442,513 Differences between expected and actual
experience 6,286,583 510,761 2,081,221 (4,634,854) 5,019,737 Changes in assumptions 18,631,953
Changes in benefit terms : 903,765
Benefit payments, including refunds of employee
contributions (32,1.32,357) (34,457,162) (35,281,521) (37,353,487) (37,949,459) Net change in total pension liability 21,867,704 14,738,524 16,365,106 27,811,277 21,420,783 Total pension liability - beginning 571,860,880 593,728,584 608,467,108 624,832,214 652,643,491 Total pension liability - ending (a) $593,728,584 $608.467,108 $624,832,214 $652,643,491 $674,064,274 Plan fiduciary net position
Contributions - employer $ 13,870,437 $ 15.690.224 $ 17,344,103 $ 18,615,559 $ 20,980,767 Contributions - employee 3,255,149 3,091,604 3,183,832 3,687,197 3,922,981 Investment income (net of admin expenses) 26,959,611 21,097,475 96,431,828 (38,496,139) 28,223,095 Benefit payments (32,132,357) (34,457,162) (35,281,521) (37,353,487) (37,949,459) Other (294,423) (599,970) (429,951) (303,525) (336,648) Net change in plan fiduciary net position 11,658,417 4,822,171 81,248,291 (53,850,395) 14,840,736 Plan fiduciary net position - beginning 413,926,586 425,585,003 3_430,407,174 511,655,465 457,805,070 Plan fiduciary net position - ending (b) $425,585,003 $430,407,174 $511,655,465 $457,805,070 $472,645,806 Net pension liability - ending (a)-(b) $168,143,581 $178,059,934 $113,176,749 $194,838,421 $201,418,468 Plan fiduciary net position as a percentage of the
total pension liability 71.68% 70.74% 81.89% 70.15% 70.12% Covered payroll $ 38,879,075 $ 40,068,424 $ 38,751,808 $ 41,935,598 $ 47,440,606 Net pension liability as a percentage of
covered payroll 432.48% 444.39% 292.06% 464.61% 424.57% Notes to Schedule:
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. - 125 -
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, 2024
City Safety Plan - 54
As of June 30, 2024
Measurement Period 2013-14 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
(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) (7.30,424) (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% - 126 -
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, 2024
City Safety Plan - 54
As of June 30, 2024
Measurement Period 2018-19 2019-20 2020-21 2021-22 2022-23 Total Pension Liability
Service cost $ 8,269,399 $ 8,536,838 $ 8,436,388 $ 9,379,086 $ 9,864,774 Interest on total pension liability 56,383,004 58,083,732 59,605,320 60,302,761 62,487,151 Differences between expected and actual
experience 10,170,711 5,375,486 3,095,379 (7,429,800) 13,680,825 Changes in assumptions 29,470,625
Changes in benefit terms : : : 376,158
Benefit payments, including refunds of employes
(45,191,159) (47,559,242) (49,210,313) (51,273,005) (53,374,715) Net change in total pension liability 29,631,955 24,436,814 21,926,774 40,449,667 33,034,193 Total pension liability - beginning 796,863,657 826,495,612 850,932,426 872,859,200 913,308,867 Total pension liability - ending (a) $826,495,612 $850,932,426 $872,859,200 $913,308,867 $946,343,060 Plan fiduciary net position
Contributions - employer $ 19,557,103 $ 22,641,381 $ 25,180,992 $ 27,474,318 $ 30,412,551 Contributions - employee 2,698,657 3,090,593 3,079,181 3,202,156 3,616,358 Investment income (net of admin expenses) 35,115,561 27,272,832 125,115,793 (49,997,019) 36,457,434 Benefit payments (45,191,159) (47,559,242) (49,210,313) (51,273,005) (53,374,715) Other (383,710) (777,133) (555,333) (426,056) (432,765) Net change in plan fiduciary net position 11,796,452 4,668,431 103,610,320 (71,019,606) 16,678,863 Plan fiduciary net position - beginning 539,457,785 551,254,237 555,922,668 659,532,988 588,513,382 Plan fiduciary net position - ending (b) $551,254,237 $555.922.668 $659,532,988 $588,513,382 $605,192,245 Net pension liability - ending (a)-(b) $275,241,375 $295,009,758 $213,326,212 $324,795,485 $341,150,815 Plan fiduciary net position as a percentage of the
total pension liability 66.70% 65.33% 75.56% 64.44% 63.95% Covered payroll $ 26,493,446 $ 29,086,331 $ 29,313,370 $ 29,774,877 $ 31,791,087 Net pension liability as a percentage of
covered payroll 1038.90% 1014.26% 727.74% 1090.84% 1073.10% Notes to Schedule:
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 CaPERS 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 - 127 -
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, 2024
For the Year Ended June 30, 202-
Measurement period, year ended 6/30/2014 6/30/2015 6/30/2016 6/30/2017_6/30/2018 6/30/2019 6/30/2020_6/30/2021 _6/30/2022 _6/30/2023 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% 0.1638920% Plan's proportionate share of the net pension bability $ 3,815,585 S 4,483,755 $ 5,664,045 $ 6,397,158 $ 6,269,392 $ 6,660,396 $ 7,008,819 $ 4,979,665 $ 7,936,290 $ 8,195,289 Plan's covered payroll 5404530588826884877597,618 - s
Plan's proportionate share of the net pension lability as a percentage of covered pastoll 6976.55% 7153.68% 0.00%
Plan's fiduciary net position $ 15,896,118 $14,686,614 $15,233,189 $15,271,896 $ 15,077,093 $14,906,724 $17,119,144 $ 14298,674 $ 14,166,701 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% 63.35% Plan's proportionate share of agpregate emplover
contrbuttons 60,842 19,656 $ 280,440 $ 313,887 $ 347,304 $ 410,556 $ 420,125 $ 469,389 $ 524,033 $ 589,515 - 128 -
City of San Bernardino
Required Supplementary Informatior
Schedule of Contributions - Pensior
For the Fiscal Year Ended June 30, 2024
City Miscellaneous Plan - 53
As of June 30, 2024
Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution (Excess) Payroll Payroll 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 20,980,767 (20,980,767) 47,440,606 44.23%
2023-24 21,679,675 (21,679,675) 48,745,223 44.48%
Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers nay choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
Notes to Schedule
Valuation date: 6/30/2022
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2019 funding valuation report.
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.
Inflation 2.500%
Salary increases Varies 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 The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
Retirement age
Mortality The probabilities of mortality are based on the 2017 CaPERS Experience Study for e period from 1997 to 2015. Pre-retirement and Post-retirement mortality rate clude 15 vears of proiected mortality improvement usine 90% of Scale MP-201 published by the Society of Actuaries.
- 129 -
City of San Bernardino
Required Supplementary Information
Schedule of Contributions - Pension (Continued'
For the Fiscal Year Ended June 30, 2024
City Safety Plan - 54
As of June 30, 2024
Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution' (Excess) Payroll Payroll 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 30,412,551 (30,412,551) 31,791,087 95.66%
2023-24 31,171,206 (31,171,206) 32,665,342 95.43%
"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.
Notes to Schedule
Valuation date: 6/30/2022
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2019 funding valuation report.
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.
Inflation 2.500%
Salary increases Varies 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 The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
Retirement age
Mortality The probabilities of mortality are based on the 2017 CaPERS 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 published by the Society of Actuaries.
- 130 -
City of San Bernardino
Required Supplementary Information
Schedule of Contributions - Pension (Continued)
For the Fiscal Year Ended June 30, 2024
Successor Agency Plan - 1414
As of June 30, 2024
Contributions in Contributions
Relation to the
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution' Contribution (Excess) Payroll Payroll 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%
2023-24 561,529 (561,529) 0.00%
' 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.
Notes to Schedule
Valuation date: 6/30/2022
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 anged in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There we › changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7. 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. - 131 -
City of San Bernardino
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios For the Fiscal Year Ended June 30, 2024
Measurement period, year ended: 2016-171 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total OPE liability
Serve Cost 809,659
interest 2,066,543
Changes of benent terms
Ditterences between expected and actual exponence
Changes of assumptions
Benefit payments, including refunds of member contributions (1,554,389) (1.602.932) (1,658,421) (1,654,270) - (1.738,412) (1.702,700) ((.118.000)
Net change in total OPEB liability 2,240,000 2,222,115 (6,187,077) 1,542,528 (4,156, 182) 1,245,366 Total OPEB liability - beginning 36,665,000 38.05,000 39.684.988 41,907.103 35,720,026 — 37.262.554 33.106.372 Total OPEB liability - ending (a) $ 38,905,000 $ 41,907,103 $ 35,720,026 $ 37,262,554 $ 33,106,372 $ 34,351,738 OPEB fiduciary net position
Contributions - employer
Net investment income 2,970,846
Bencfit payments, including refunds of member contributions (1,702,700) Administrative expense (10,161)
Net change in plan fiduciary net position
Plan fiduciary net position - beginning 35.328,118
Plan fiduciary net position - ending (b) 35,328,11838.917,823 Plan net OPEB liability - ending (a) - (b) $ 16,557,000 ≤ 14,377,881 $ 133557,801 3 4,870,958 3(2546,218) ≤ (2,221,746) S (4,566,085) Plan fiduciary net position as a percentage of the total OPEB liability 57.44% 63.77% 67.65% 86.36% 106.83% 106.71% 113.29% Covered payroll S 19,132,000 $ 16,768,495 $ 17,981,957 $ 19,691,462 $ 21,203,035 $ 25,597,944 $ 28,172,331 Plan net OPEB liability as a percentage of covered payroll 24.74% Benefit changes: New hires after July 1, 2019 receive no Department contributions.
Changes in assumptions: Demographic assumptions were updated to CaPERS 2021 Experience Study.
Historical information is presented only for measurement periods for which GASB 75 is applicable. " Contributions are not based on employee compensation; therefore, covered-employee payroll is used. - 132 -
City of San Bernardino
Required Supplementary Information
Schedule of Contributions - OPEB
For the Fiscal Year Ended June 30, 2024
Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Percentage of
Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution? (Excess) Payroll Payroll 2017-181 $ 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% 2023-24 898,426 (1,783,630) (885,204) 26,706,880 6.68%
'Historical information is presented only for measurement periods for which GASB 75 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.
Notes to Schedule
Valuation date: 6/30/2023
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023-24 were from the June 30, 2023 actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method/period Level percentage of pay
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 Non-Medicare - 6.8% for 2024, decreasing to an ultimate rate of 3.9% in 2076; Medicare - 5.4% for 2024, decreasing to an ultimate rate of 3.9% in 2076 Mortality CaPERS 2021 Experience Study
Mortality improvement 80% of Scale MP-2020
- 133 -
SAN L BERNARDINO
CITY OF CALIFORNIA.
FOUNDED IN 18N0
COMBINING FINANCIAL STATEMENTS AND SCHEDULES
City of San Bernardino
Non-Major Governmental Funds
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 activities. 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, monitoring, enforcement, and technical studies necessary for the implementation of the California Clean Air Act of 1988.
RMRA Gas 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 Gas 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.
Traffic Safety Fund - This fund is used for the recording of the City's share of California Vehicle Code fines collected by San Bernardino County.
- 134 -
City of San Bernardino
Non-Major Governmental Funds
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 Fund - 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 Construction 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 Assessments Fund - 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 Construction 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.
- 135 -
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Special Revenue
Low and
Moderate
Income
Opioid Asset Housing Alternative
Settlement Cable TV Seizure Fund Transportation
ASSETS
Cash and investments $ 582,887 $ 1,377,768 2,738,156 7,025,350 559,292 Receivables:
Accounts, Net 805,650 47,362
2,539 5,136 13,293 851
Interest 1,330
Due from other governments 75,102
Prepaid items
Property held for resale 12,425,798
Total assets 3 130807 10700 2783202 1 1946.11 $ 635,248
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ $ 10,514 $ 1,125 $ $
Accrued liabilities
Payroll and related liabilities
Deposits payable
Retentions payable
Unearned revenue 1,369,030
-
Total liabilities 1,369,030 10,514 1,125
Deferred inflows of resources:
Unavailable revenues 2,107 75,102
Total deferred inflows of resources 2,467 75,102
Fund Balances:
Nonspendable
Restricted
Housing 19,464,441
Street improvements
Cable TV 1,414,688
Law enforcement 2,742,167
Transportation 560,146
Sewer
Capital projects
Opioid Settlement
Total fund balances 560,146
Teal laces, and dand ted incess or
$ 1,389,867 1,427,669 $ 2,743,292 $ 19,464,441 635,248
- 136 -
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Special Revenue
RMRA Special Traffic Measure I Sewerline
Gas Tax Gas Tax Safety Fund Maintenance
ASSETS
Cash and investments 9,376,728 $ 4,060,162 $ 5,526,829 $ 10,285,053 24,743 Receivables:
Accounts, Net
19,350 8,154 111,449 19,272
Interest
Due from other governments 1,004,929 526,994 281,895 1,492,956 Prepaid items 83
Property held for resale
Total assets $ 10,401,007 4,595,393 $ 5,820,173 $ 11,797,281 $ 24,789
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ $ 754,235 $ $ 363,863 $
Accrued liabilities 513,501 111,507
Payroll and related liabilities 45,455 1,181
Deposits payable
Retentions payable 286,297 5,868 304,477
Unearned revenue
Total liabilities 799,798 217,065 669,521
Deferred inflows of resources:
Unavailable revenues 536,528
Total deferred inflows of resources 536,528
Fund Balances:
Nonspendable 83
Restricted
Housing
Street improvements 9,601,209 3,678,245 10,591,232
Cable TV
Law enforcement
Transportation 5,820,173
Sewer 24,789
Capital projects
Opioid Settlement
Total fund balances 9,601,209 3,678,328 5,820,173 10,591,232 24,789 Total liabilies, dunered intor» of $ 10.401.007S 4595,393 $ 5,820,173 $ 11,797,281 24,789
- 137 -
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Capital Projects
Park Storm
Construction Sewerline Drain Special
Verdemont Fee Construction Construction Assessments
ASSETS
Cash and investments 394,723 155,849 151,567 $ 14,305,854 1,198,702 Receivables:
Accounts, Net 10,521
Interest 28,328
Due from other governments 14,887
Prepaid items
Property held for resale
Total assets $ 395,456 156,138 151,851 $ 14,344,703 $ 1,213,589
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ $ $ $ 71,559 191,846
Accrued liabilities
Payroll and related liabilities 578
Deposits payable 34,569
Retentions payable 5,397
Unearned revenue
Total liabilities 77,534 226,415
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Nonspendable
Restricted
Housing
Street improvements
Cable TV • . .
Law enforcement
Transportation
Sewer
Capital projects 395,456 156,138 151,851 14.267,169 987,174 Opioid Settlement
Total fund balances 395,456 156,138 151,851 14,267,169 987,174 Total liabilies, dunered intor» of 395,456 ≤ 156,138 151,851 $ 14,344,703 $ 1,213,589 - 138-
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Capital Projects
Cultural Total
Development Prop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements Street Funds
ASSETS
Cash and investments 5,570,944 $ 25,238,338 447,396 68,619 $ 89,088,960 Receivables:
Accounts, Net 184,494 1,048,027
10,131 44,851 166,984
Interest
Due from other governments 3,396,763
Prepaid items 83
Property held for resale 12,425,798
Total assets $ 5,581,075 $ 25,467,683 $ 448,214 $ 68,746 $ 106,126,615
LIABILITTES AND FUND BALANCES
Liabilities:
Accounts payable 9,117 484,840 $ $ 1,887,099
Accrued liabilities 625,008
Payroll and related liabilities 47,214
Deposits payable 34,569
Retentions payable 602,039
Unearned revenue 1,369,030
Total liabilities 2,117 484,840 4,564,959
Deferred inflows of resources:
Unavailable revenues 614,097
Total deferred inflows of resources 614,097
Fund Balances:
Nonspendable 83
Restricted
Housing 19,464,441
Street improvements : 23,870,686
Cable TV 1,414,688
Law enforcement 2,742,167
Transportation 6,380,319
Sewer 24,789
Capital projects 47,029,549
Opioid Settlement 20,837
Total fund balances 100,947,559
$ 5,581,075 $ 25,407,683 448,214 68,746 $ 106,126,615
(Concluded)
- 139-
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, 2024
Special Revenue
Low and
Moderate
Income
Opioid Housing Alternative
Settlement Cable TV. Seizure Transportation
REVENUES:
Taxes $ $ 197,900 $
Licenses and Permits
Fines and forfeitures -
Use of money and propert 19,642 72,658 155,867 396,497 31,164 Intergovernmental 1,310 374,804 49,658 299,152
Charges for services
Other revenues
Total revenues 19,642 271,868 530,671 446,155 330,316
EXPENDITURES:
Current:
General government 159,225 4,405
Public safety 539,659
Public works 323,067
Culture and recreation :
Community development - 1,500
Community service
Total expenditures 159,225 539,659 1,500 327,472
REVENUES OVER
(UNDER) EXPENDITURES 19,642 112,643 (8,988) 444,655 2,844 OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
CHANGE IN FUND BALANCES 19,642 112,643 (8,988) 444,655 2,844 FUND BALANCES (DEFICIT):
Beginning of year 1,195 1,302,045
31302045 2372165 319019786 3 357202
End of year 20,837
- 140-
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, 2024
Special Revenue
RMRA Special Traffic Mesure Sinerine ewerlin
Gas Tax Gas Tax Safety
REVENUES:
Taxes $ $ 5,862,324 $
Licenses and Permits :
1,693,975 650,034
267,381 158,665 222,841 1,342
5,766,233 6.082.516 16,279
Charges for services
Total revenues 6.033,6146,41,1811,933,095 6,512,358 1,342 EXPENDITURES:
Current:
General government
Public safety
Public works 745,445 4,733,529 5,428,746
Culture and recreation
Community development
Community service 190,000
Total expenditures 745,445 4,733,529 5,918,746
REVENUES OVER
(UNDER) EXPENDITURES 5,288,169 1,507,652 1,933,095 593,612 1,342 OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
CHANGES IN FUND BALANCES 5,288,169 1,507,652 1,933,095 593,612 1,342 FUND BALANCES (DEFICIT):
Beginning of year
End of year
- 141 -
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, 2024
Capital Projects
Park
Construction Drain
Verdemont EScuetion Contition Assessments
REVENUES:
Taxes $ $ $ 1,343,957
Licenses and Permits :s
21,411 8.453 7.922 707,772
Charges for services 6,500 1,982,137
Total revenues 21,411 8,153 14,422 2,689,909 1,343,957
EXPENDITURES:
Current:
General government
Public safety
Public works 423,896 1,354,284
Culture and recreation
Community development
Community service
Total expenditures 423,896 1,354,284
REVENUES OVER
(UNDER) EXPENDITURES 21,411 8,453 14,422 2,266,013 (10,327) OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
CHANGES IN FUND BALANCES 21,411 8,453 14,422 2,266,013 103,994 FUND BALANCES (DEFICIT):
Beginning of year 374,045
157685 15780 120-10 383.0
End of year $ 395,456
- 142 -
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, 2024
Capital Projects
Cultural Total
Development Prop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements Street Funds
-
REVENUES:
Ticenses and Permiss $ 396,225 $ $ 7,404,181
396,225
Impact fees 5,050,311 5,050,311
Fines and forfeitures - 1,693,975
Use of money and property 316,729 1,385,304 24,268 4,451,672 Intergovernmental" 12,589,952
Charges for services 1,988,637
Other revenues 1,951 1,951
Total revenues 712,954 6,437,566 24,268 3,722 33,576,904 EXPENDITURES:
Current:
General government 36,082 199,712
Public safety 539,659
Public works 3,876,291 16,885,258
Culture and recreation 176,900 176,900
Community development 247,109 58,338 306,947
Community service 220,631 710,631
Total expenditures 680,722 3,934,629 18,819,107
REVENUES OVER
(UNDER) EXPENDITURES 32,232 2,502,937 24,268 3,722 14,757,797 OTHER FINANCING SOURCES (USES):
Transfers in 114,321
Total other financing sources (uses) 114,321
CHANGES IN FUND BALANCES 32,232 2,502,937 24,268 3,722 14,872,118 FUND BALANCES (DEFICIT):
Beginning of year 5,539,726 22,479,906 423,946 65,024 86,075,441 End of year $ 5,571,958 $24,982,843 $ 448,214 68,746 $ 100,947,559 (Concuded)
- 143 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Taxes $ 270,000 $ 270,000 197,900 (72,100)
Use of money and property 8,500 8,500 72,658 64,158
Intergovernmental 7,000 7,000 1,310 (5,690)
Total revenues 285,500 285,500 271,868 (13,632)
EXPENDITURES:
Current:
General government
City manager 285,500 310,500 159,225 151,275
Total expenditures 285,500 310,500 159,225 151,275
CHANGE IN FUND BALANCE $ =s (25,000) 112,643 $ 137,643
FUND BALANCE:
Beginning of year 1,302,045
End of year $ 1,414,688
- 144 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property 7,500 $ 7,500 $ 155,807 148,367 Intergovernmental 374,804 374,804
Total revenues 7,500 7,500 530,671 523,171
EXPENDITURES:
Current:
Public safety
Police 374,000 840,960 539,659 301,301
Total expenditures 374,000 840,960 539,659 301,301
REVENUES OVER
(UNDER) EXPENDITURES (366,500) (833,460) (8,988) 824,472 CHANGE IN FUND BALANCE $ (366,500) $ (833,460) (8,988) $ 824,472 FUND BALANCE:
Beginning of year 2,751,155
End of year $ 2,742,167
- 145 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property $ - $ $ 396,497 396,497
Intergovernmental 500,000 500,000 49,658 (450,342)
Total revenues 500,000 500,000 446,155 (53,845)
EXPENDITURES:
Current:
Community development 445,000 445,000 1,500 443,500
Total expenditures 445,000 445,000 1,500 443,500
REVENUES OVER
(UNDER) EXPENDITURES 55,000 55,000 444,655 (497,345)
CHANGE IN FUND BALANCE $ 55,000 55,000 444,655 389,655
FUND BALANCE:
Beginning of year 19.019,786
End of year $ 19,404,441
- 146 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property $ 3,500 $ 3,500 31,164 $ 27,664 Intergovernmental 200,000 200,000 299,152 22,152
Total revenues 203,500 203,500 330,316 126,816
EXPENDITURES:
Current:
General government
City manager 12,400 12,400 4,405 7,995
Public works 286,000 612,500 323,067 289,433
Total expenditures 298,400 624,900 327,472 297,428
REVENUES OVER
(UNDER) EXPENDITURES (94,900) (421,400) 2,844 (170,612) CHANGE IN FUND BALANCE $ (94,900) $ (421,400) 2,844 $ 424,244 FUND BALANCE:
Beginning of year 557,302
End of year 560,146
- 147 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property $ 25,000 $ 25,000 $ 267,381 $ 242,381 Intergovernmental 3,803,500 3,803,500 5,766,233 1,962,733 Total revenues 3,828,500 3,828,500 6,033,614 2,205,114
EXPENDITURES:
Current:
Public works 10,885,076 745,445 10,139,631
Total expenditures 10,885,076 745,445 10,139,631
REVENUES OVER
(UNDER) EXPENDITURES 3,828,500 (7,056,576) 5,288,169 12,344,745 CHANGE IN FUND BALANCE $ 3,828,500 (7,056,576) 5,288,169 12,344,745 FUND BALANCE:
Beginning of year 4,313,040
End of year $ 9,601,209
- 148 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property $ 5,000 $ 5,000 $ 158,665 153,665 Intergovernmental 5,032,500 5,032,500 6,082,516 1,050,016 Total revenues 5,037,500 5,037,500 6,241,181 1,203,681
EXPENDITURES:
Current:
Public works 5,648,651 7,363,079 4,733,529 2,629,550
Total expenditures 5,648,651 7,363,079 4,733,529 2,629,550
REVENUES OVER
(UNDER) EXPENDITURES (611,151) (2,325,579) 1,507,652 (1,425,869) CHANGE IN FUND BALANCE $ (611,151) $ (2,325,579) 1,507,652 $ 3,833,231 FUND BALANCE:
Beginning of year 2,170,676
End of year $ 3,678,328
- 149 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Fines and forfeitures $ 750,000 $ 750,000 $ 1,693,975 943,975 Use of money and property 10,000 10,000 222,841 212,841 Intergovernmental 16,279 16,279
Total revenues 760,000 760,000 1,933,095 1,173,095
CHANGE IN FUND BALANCE $ 760,000 $ 760,000 1,933,095 $ 1,173,095 FUND BALANCE:
Beginning of year 3,887,078
End of year $ 5,820,173
- 150 -
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actua Measure I Special Revenue Fund
For the Fiscal Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Taxes 4,808,000 4,808,000 $ 5,862,324 $ 1,054,324
Use of money and property 28,000 28,000 650,034 622,034 Total revenues 4,836,000 4,836,000 6,512,358 1,676,358
EXPENDITURES:
Current:
Public works 17,873,081 5,428,746 12,444,335
Community development 1,000,000 1,000,000
Community service 490,000 490,000
Total expenditures 19,363,081 5,918,746 13,444,335
CHANGE IN FUND BALANCE $ 4,836,000 $ (14,527,081) 593,612 $ 15,120,693 FUND BALANCE:
Beginning of year 2,997,620
End of year $ 10,591,232
- 151 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Use of money and property 30,000 $ 30,000 § 707,772 $ 677,772 Charges for services 1,985,000 1,985,000 1,982,137 (2,803) Total revenues 2,015,000 2,015,000 2,689,909 674,909
EXPENDITURES:
Current:
Public works 12,792,334 423,896 12,368,438
: 2,500,000
Community development 2,500,000
Total expenditures 15,292,334 423,896 14,868,438
CHANGE IN FUND BALANCE $ 2,015,000 § (13,277,334) 2,266,013 $ 15,543,347 FUND BALANCE:
Beginning of year 12,001,156
End of year $ 14,267,169
- 152 -
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, 2024
Variance with
Final Budget
Budgeted Amount Actual Increase
Original Amounts (Decrease)
REVENUES:
Taxes → $ 1,326,351 $ 1,343,957 17,600
Total revenues 1,326,351 1,343,957 17,606
EXPENDITURES:
Current:
Public works 13,085 1,453,757 1,354,284 92,473
Total expenditures 13,085 1,453,757 1,354,284 99,473
REVENUES OVER
(UNDER) EXPENDITURES (13,085) (127,406) (10,327) (81,867) OTHER FINANCING SOURCES (USES):
Transfers in 114,321 114,321
Total other financing sources (uses) 114,321 114,321
CHANGE IN FUND BALANCE (13,085) $ (13,085) 103,994 $ 117,079 FUND BALANCE (DEFICIT):
Beginning of year 883,180
End of year $ 987,174
- 153 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Licenses and Permits $ 841,375 $ 841,375 $ 396,225 $ (445,150) Use of money and property 15,000 15,000 316,729 301,729 Total revenues 856,375 856,375 712,954 (143,421)
EXPENDITURES:
Current:
General government
Nondepartmental 48,717 36,082 12,635
Culture and recreation
Park, recreation, and community services : 246,594 176,900 69,694 Community development 247,109 247,109
Community service 611,815 220,631 391,184
Total expenditures 1,154,235 680,722 473,513
CHANGE IN FUND BALANCE $ 856,375 $ (297,860) 32,232 330,092 FUND BALANCE:
Beginning of year 5,539,726
End of year $ 5,571,958
- 154 -
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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Increase
Original Final Amounts (Decrease)
REVENUES:
Impact fees $ 3,823,463 $ 3,823,463 $ 5,050,311 $ 1,226,848 Use of money and property 40,000 40,000 1,385,304 1,345,304 Intergovernmental
Other revenues 1,951 1,951
Total revenues 3,863,463 3,863,463 6,437,566 2,574,103
EXPENDITURES:
Current:
Public works 15,867,098 3,876,291 11,990,807
Culture and recreation
Park, recreation, and community services 5,450 5,450
Community development 2,752,042 58,338 2,693,704
Total expenditures 18,624,590 3,934,629 14,689,961
CHANGE IN FUND BALANCE $ 3,863,463 § (14,761,127) 2,502,937 $ 17,264,064 FUND BALANCE:
Beginning of year 22,479,906
End of year $ 24,982,843
- 155 -
DERNARDINO
SAN
CITY OF CALIFORNIA
FO FOUNDED IN I8T0
City of San Bernardino
Internal Service Funds
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. - 156 -
City of San Bernardino
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Workers' Liability Information
Compensation Insurance Motorpool Systems Total
ASSETS
Current assets:
Cash and cash equivalents 3,869,964 $ 23,759,750 $ 604,807 $ 6,186,924 $ 34,421,445 Accounts receivable, net 62,510 21,510 22,587 88,333 194,940 Interest receivable 6,576 56,061 13,727 76,364
Due from other governments
Due from other funds 1,587,938 1,587,038
Inventories 196,369
Prepaid items 6,908 11,106 98,014
Total current assets 3,939,050 25,425,259 830,671 6,380,090 36,575,070 Noncurrent assets:
Depreciable capital assets, net 3,432,694 564.916 3.997,610 Total capital assets, net 3,432,694 564,916 3.997,610
Total noncurrent assets 3,432,624 564,916 3,997,610
Total assets 3.939.050 25,425,259 4,263,365 6,945,006 40,572,680
DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 176,964 185,963 1,019,792 1,523,689 2,906,408 Total deferred outflows of resources 176.964 185,963 1,019,792 1,523,689 2,906,408
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 68.134 1,216,096 172,968 350,899 1,808,097 Payroll and related liabilities 8,898 17,289 64,777 147,678 238,642 Due to other funds 1,587,938 1,587,938
Current portion of compensated absences 3,985 4,281 24,832 26,190 129,288 Current portion of lease liabilities 441,163 4,974 446,137 Current portion of subscription liabilities 159,129 159,129 Current portion of claims payable 1,502,086 7,492,863
Current portion of long term debt
Total current liabilities 1,583,103 7,228,443 2,291,678 758,870 11,862,094 Noncurrent liabilities:
Aggregate net pension liability 760,556 799,228 4,382,866 6,548,517 12,491,167 Compensated absences 9,300 9,990 57,941 224,444 301,675 Lease liabilities 1,523,866 10,380 1,534,246
Subscription liabilities
Claims payable 19.451,279 17,833,510 37,284,789
Total noncurrent liabilities 20,221,135 18,642,728 5,964,673 6,783,341 51,611,877 Total liabilities 21,804,238 25,871,171 8,256,351 7,542,211 63,473,971
DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources 833 876 4,803 7,176 13,688 Total deferred inflows of resources 833 876 4,803 7,176 13,688
NET POSITION (DEFICIT)
Net investment in capital assets 3,432,694 564,916 3,997,610 Unrestricted (deficit) (17,689,057) (260,825) (6,410,691) 354,392 (24,006,181) Total net position $ (17,689,057) 3 (260,825) ≤ (2,977,997) 5 919,308 $ (20,008,571) - 157-
City of San Bernardino
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2024
Workers' Liability Information
Compensation Insurance Motorpool Total
OPERATING REVENUES:
Charges for services $ 6,173,453 $ 9,059,129 $ 6,170,835 $ 7,849,580 $ 29,252,997 tre pining ences 165,370 5,701 171,071
6,338,823 2,064,830 6,170,835 7,849,580 29,424,068
OPERATING EXPENSES:
Cost of sales and services 1,770,159 4,773,686 5,313,841 5,821,194 17,678,880 Claims expense 4,712,226 4,031,742 8,743,968
Amortization 444,295 170,399 614,694
Depreciation 342,888 98,418 441.306
33805-28
Total operating expenses 6,482,385 6,101,024 6,090,011 27,478,848 Operating income (loss) (143,562) 259,402 69,811 1,759,569 1,945,220 NONOPERATING REVENUES (EXPENSES):
143,562 1,024,620 (248) 300,055 1,467,989
Invest exp income escal charges (93,262) (3,360) (96,622) Miscellaneous income 23,699 88,332 112,031
Total nonoperating revenues (expenses) 143,562 1,024,620 (69,811) 385,027 1,483,398 Changes in net position 1,284,022 2,144,596 3,428,618
NET POSITION (DEFICIT):
Beginning of year (17,689,057) (1,544,847) (2,977,997) (1,225,288) (23,437,189) End of year $ (17,689,057) (260,825) $ (2,977,997) $ (20,008,571) - 158 -
City of San Bernardino
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 2024
Workers' Liability Information
Compensation Insurance Motorpool Systems Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from user departments 6,137,609 9,056,327 $ 6,273,868 $ 7,761,247 $ 29,229,251 Nonoperating miscellaneous revenues (expenses) 23,699 88,332 112,031 Cash payments to suppliers for goods and services (1,360,843) (3,520,548) (3,335,949) (4,349,664) (12,567,004) Cash payments to employees for services (252,047) (270,323) (1,213,771) (2,638,413) (4,374,554) Cash payments for claims and insurance (4,102,983) (10,542,098) (14,645,081) Cash inflows (outflows) from other activities 165,370 5,701 171,071 Net cash provided by
operating activities 587,106 (5,270,741) 1,747,847 861,502 (2,074,286)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets (191,041) : (191,041)
Principal paid on long-term debt (200,000) (200,000)
Principal paid on lease liabilities (337,841) (4,835) (342,676) Principal paid on subscription liabilities (160,666) (160,666) Interest paid (101,326) (11,971) (113,297)
Not cash used in) capital and
related financing activities (200,000) (630,208) (177,472) (1,007,680)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Interfund borrowing 512,584 (512,584)
Net cash (used in) noncapital
financing activities 512,584 (512,584)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (expense) 139,848 986,516 (248) 293,943 1.420,052 Net cash provided by (used in) investing activities 139,848 986,516 (248) 293,943 1,420,059 Net change in cash and cash equivalents 726,954 (3,971,641) 604,807 977,973 (1,661,907) CASH AND CASH EQUIVALENTS:
Beginning of year 3,143,010 • 27,731,391- 5,208,951. 36,083,352 End of year 3,869,964 $ 23,759,750 3 604,807 6,186,924 $ 34,421,445
RECONCILIATION TO STATEMENT OF
NET POSITION:
Cash and cash equivalents $ 3,869,964 $ 23,759,750 S 604,807 $ 6,186,924 $ 34,421,445 Total cash and cash equivalents $ 3,869,964 $ 23,759,750 604,807 6,186,924 _ $ 34,421,445 - 159 -
City of San Bernardino
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2024
Workers' Liability Information
Compensation Insurance Motorpool Systems Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss) (143,562) 259,402 $ 69,811 $ 1,759,569 1,945,220 Nonoperating miscellaneous revenues 23,699 88,332 112,031 Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation and amortization 787,183 268,817 1,056,000 Changes in operating assets and liabilities:
Receivables, net (35,844) (2,602) 102,661 (88,333) (24,118) Due from other governments 372 372
Inventories 8,971 8,971
Prepaid items (1,455,921) 29,495 (37,132) (1,463,558)
Pension-related deferred outflows of resources (11,594) (10,258) (44,799) 874,173 807,522 Accounts payable and accrued liabilities 1,553 2,271,468 (76,161) 124,287 2,321,147 Payroll and related liabilities 84 8,474 19,775 37,639 65,972 Aggregate net pension liability 162,012 163,275 853,953 (2,130,366) (951,126) Compensated absences 11,839 12,825 12,056 65,483 102,203 Claims payable 609,243 (6,510,356) (5,901,113)
Pension-related deferred inflows of resources (6,625) (7,048) (39,169) (100,967) (153,809) Total adjustments 730,668 (5,530,143) 1,654,337 (986,399) (4,131,537) Net cash provided by operating activities 587,106 § (5,270,741) $ 1,747,847 861,502 $ (2,074,286)
NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of right-to-use leased assets 897,692 $ 897,692 Non-cash from capital and related financing activities 897,692 $ 897,692 - 160 -
SONERVE AND
CALIFORNIA
•
CUT AI THINNOT
SAN
OF
CITY
FINDED IN 1810
STATISTICAL SECTION
DERNARDINO
SAN
CITY OF CALIFORNIA
FO FOUNDED IN I8T0
STATISTICAL SECTION
'his section of the City of San Bernardino's Annual Comprehensive Financial Report presents detailed information as a context fo inderstanding what the information in the financial statements, note disclosures, and required supplementary information says abol 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.
Net Position by Component 162
Changes in Net Position 164
Fund Balances of Governmental Funds 168
Changes in Fund Balances of Governmental Funds 170
Tax Revenues by Source - Governmental Funds 172
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 Assessed Value and Estimated Actual Value of Taxable Property 173 Taxable Sales by Category 174
Principal Sales Tax Remitters 176
Direct and Overlapping Property Tax Rates 177
Principal Property Taxpayers 178
Property Tax Levies and Collections 179
Top 10 Customers- Water and Sewer Treatment 180
Connections and Revenues by User Type - Water 181
Water Rate History - Minimum Monthly Charge 182
Sewer Treatment Rate History 183
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.
Ratio of Outstanding Debt by Type 184
Ratio of General Bonded Debt Outstanding 186
Schedule of Direct and Overlapping Bonded Debt 187
Legal Debt Margin 188
Debt Service Coverage 190
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.
Demographic and Economic Statistics 191
Budgeted Full-Time and Part-Time Positions by Function 192 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.
Capital Asset Statistics 193
Operating Indicators by Function 194
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year. - 161 - 1
City of San Bernardino
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
Fiscal Year
2015 2016 2017 2018 2019
Governmental activities:
Net investment in capital assets $ 357,760,150 $ 346,538,460 $ 316,218,375 $ 291,168,979 $ 286,878,015 Restricted 100,668,315 126,717,096 106,923,136 114,629,131 98,129,481 Unrestricte (384,440,896) (388,600,709) (257,124,872) (306,072,272) (306,956,031) Total governmental activiti
net position $ 73,987,569 $ 84,654,847 $ 166,016,639 $ 99,725,838 $ 78,051,465 Business-type activities:
Net investment in capital assets $ 223,104,368 $ 235,670,073 $ 250,399,481 $ 248,654,078 $ 259,671,498 Restricted 60,084,163 58,331,021 7,944,758 8,363,037 33,999,584 Unrestricted (47,561,359) - (39,100,089) 29,139,574 26,485,780 2,566,757 Total primary government
net position $ 235,627,172 $ 254,901,005 $ 287,483,813 $ 283,502,895 $ 296,237,839 Primary government:
Net investment in capital assets $ 580,864,518 $ 582,208,533 $ 566,617,856 $ 539,823,057 $ 546,549,513 Restricted 160,752,478 114,867,894 122,992,168 132,129,065 Unrestricted (432,002,255) (427,700,798) (227,985,298) (279,586,492) (304,389,274) Total primary government
net position $ 309,614,741 $ 339,555,852 $ 453,500,452 $ 383,228,733 $ 374,289,304 - 162 -
City of San Bernardino
Net Position by Component (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
Fiscal Year
2020 2021 2022 2023 2024
Governmental activities:
Net investment in capital assets $ 282,634,784 $ 284,425,516 $ 278,068,994 $ 284,096,740 $ 291,299,450 Restricted 101,171,196 97,769,749 103,016,330 108,916,462 125,500,977 Unrestricter (334,495,248) (305,105,274) (228,403,516) (216,955,069) (209,992,894) Total governmental activitie
net position 49,310,732 ≤ 77,089,991 $ 152,681,808 $ 176,058,133 $ 206,807,533 Business-type activities:
Net investment in capital assets $ 255,270,720 $ 253,288,732 $ 250,216,752 $ 251,609,753 $ 275,842,317 Restricted 2,221,746 4,566,085
Unrestricted 53,071,115 63,930,908 84,060,848 91,742,645 69,893,334 Total business-type activities
net position $ 308,341,835 $ 317,219,640 $ 334,277,600 $ 345,574,144 $ 350,301,736 Primary government:
Net investment in capital assets $ 537,905,504 $ 537,714,248 $ 528,285,746 $ 535,706,493 $ 567,141,767 Restricted 101,171,196 97,769,749 103,016,330 111,138,208 130,067,062 Unrestricted (281,424,133) - (241,174,360) (144,342,668) (125,212,424) (140,099,560) Total primary government
net position $ 357,652,567 $ 394,309,631 $ 486,959,408 $ 521,632,277 $ 557,109,269 - 163-
City of San Bernardino
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
Fiscal Year
2015 2016 2017 2018 2019
Expenses:
Governmental activities:
General Government $ 23,792,572 $ 29,434,611 $ 41,953,597 $ 29,093,189 $ 29,494,169 Public Safety 93,758,051 85,867,627 74,606,563 97,710,294 98,603,681 Public Works 29.610.950 32,928,851 32,621,290 33,332,099 44,613,103 Culture and Recreation 10,805,969 7,589,992 6,504,874 8,474,953 3,712,899 Community Development 3,060,294 4,443,029 5,085,625 4,808,376 6,679,568 Community Service 5,684,705 3,261,649 2,233,081 2,723,132 4,195,874 Interest on long-term debt 3,994,357 3,713,051 1,046,882 1,126,611 861,785 Total governmental activities
170.706.898 167,238,810 164.051.912177.268.654 188.161.079 Business-type activities:
Integrated Waste 19,640,062 15,323,676 1,183,561 1,177,266 777,167 Water 35,673,702 34,941,060 40,205,419 36,461,897 35,988,661 Sewer 19,501,609 20,015,296 26,638,434 25,258,155 27,787,317 Sewer Collection 1,054,866 11,667,157 8,172,922
Total business-tvpe activities
expenses 74.815.373 70,280.032 69.082.280 74.564.475 72.726.067 Total primary government
expenses 245.522.271237.518.842 233,134.192251.833.129 260.887,146 Program revenues:
Governmental activities:
Charges for services:
General Government 9,628,294 15,061,917 9,960,337 11,222,201 9,275,097 Public Safety 5,242,941 5,759,696 4,089,638 4,806,016 7,770,680 Public works 12,826,107 12,388,167 10,850,828 7,380,078 6,158,572 Culture and Recreation 1,397,431 2,785,816 892,502 1,003,421 1,416,584 Community Development 579,930 5,404,887 4,839,812 4,944,299 3,941,191 Community Service 104,608 614,304 33,793 37,200 45,838
Operating grants and contributions 17,883,362 11,865,542 7,263,130 21,652,775 24,786,515 Capital grants and contributions 9,801,186 9,031,491 8,230,994 283,942 270,819 Total governmental activities
program revenues 57,463,859 62,911,820 46,161,034 51,329,932 53,665,296 (Continued)
- 164 -
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
Fiscal Year
2020 2021 2022 2023 2024
Expenses:
Governmental activities:
General Government $ 28,191,734 $ 25,164,625 $ 25,398,572 $ 46,596,788 $ 31,816,388 Public Safety 106,626,978 95.644.882 74,651,339 113,334,846 135,754,111 Public Works 46,239,864 42.940) 416 49,757,465 53,632,428 53,457,697 Culture and Recreation 5,792,349 5.045.007 3,671,063 3,901,250 4,769,490 Community Development 7,583,733 7,428,010 17,254,790 17,593,245 14,025,508 Community Service 4,098,616 9,912,798 14,646,563 16,582,420 23,880,014 Interest on long-term debt 1,213,813 1,554,305 1,544,198 1,516,651 1,528,019 Total governmental activities
expenses 199.747.087 187.690.703 186.923,990 253.157.628 265,231,227 Business-type activities:
Integrated Waste 1,393,739 577,590 676,615 624,476 940,129 Water 40,581,468 44,406,988 39,503,371 48,552,751 55,780,411 Sewer 27,475,781 29,749,975 28,044,105 42,816,508 51,526,396 Sewer Collection 7,650,504 7,862,447. 7,888,065
Total business-tvoe activities
expenses 77.101.492 82.597.000- 76,112,156 91.993,735 108.246.936 Total primary government
expenses 276.848.579 270.287.703_ 263.036.146 345.151.363 373.478.163 Program revenues:
Governmental activities:
Charges for services:
General Government 8,561,611 9,095,008 10,431,593 12,391,969 14,094,038 Public Safety 6,646,933 4,459,375 5,658,291 5,280,006 4,422,773 Public works 8.217,713 7,771,186 13,413,518 9,247,569 9,490,376 Culture and Recreation 2,993,167 1,811,127 3,821,239 1,496,546 877,217 Community Development 4,110,272 6,839,873 5,413,098 5,963,915 5,309,603 Community Service 29,190 632,308 337,540 757,580 467,337 Operating grants and contributions 24.531,954 34,281,088 45,290,554 46,587,633 53,995,221 Capital grants and contributions 535,026 1,701,504 719,033 13,710 Total governmental activities
program revenues 55,625,866 66,591,469 85,084,866 81,725,218 S8,670,275 (Continued)
- 165 -
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
Fiscal Year
2020 2021 2022 2023 2024
Business-Type activities:
Charges for services:
Integrated Waste $ 555,920 1,229,328 $ 500,051 500,029 500,039 Water 39,937,495 42,113,517 42,626,315 43,545,629 45,656,974 Sewer 29,703,284 29,587.597 33,347,882 44,519,998 46,224,150 Sewer Collection 7,656,675 7,759,318 6,306,843
Operating grants and contributions 1.991.747 2,011,099 1,910,435 5,566,773 capital grants and contributions 4,604,699 6,605,556 8,071,944 7,855,349 Total business-type activities
program revenues 84.449.820 89.306.415 92,763,470 98.862,747 105.803.285 Total primary government
program revenues 140.075,686 155.897.884 - 177.848,336 180.587,965 194.473.560 Net revenues (expenses):
Governmental activities (144,121,221) (121,099,234) (101,839,124) (171,432,410) (176,560,952) Business-type activities 7,348,328 6,709,415 16,651,314 6,869,012 (2143,651) Total net revenues (expenses) (136,772,893) (114,389,819) (85,187,810) (164,563,398) (179,004,603) General revenues and other changes in net position:
Governmental activities:
Taxes:
Sales tax 48,179,314 68,796,708 108,554,989 109,693,092 108,683,581 Property tax 18,814.022 19.639 920 23,099,229 24,088,301 25,438,723 Other taxes 27,429,017 30,002,784 36,705,021 38,806,302 37,732,144 Franchise tax 12,684,556 13,470,312 12,698,934 13,702,461 15,340,794 Investment income (unrestricted) 3.958.589 1,467,257 (4,345,864) 6,118,231 16,523,617 Other general revenues 4,223,767 15,428,599 3,326,457 2,340,783 3,585,871 Intergovernmental (unrestricted)
Gain (loss) on disposal of assets 91,223 72,913 (2,607,825) 59,565 5,622 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 115,380,488 148,878,493 177,430,941 194,808,735 207,310,352 Business-type activities
Investment income (unrestricted) 2,845,596 50,034 (2,136,524) 2,459,693 4,431,653 Other revenues 1,932,163 2.034.674 2,296,732 1,962,980 2,054,568 Gain (loss) on disposal of assets (22,091) 83,682 28,846 4,859 685,022 Extraordinary item:
Discontinuance of Solid Waste Ops :
Chapter 9 Bankruptcy Settlement
Transfers
Total business-type activities 4,755,668 2,168,390 182,054 4,427,532 7,171,243 Total primary government 120,136,156 151,046,883 177,619,995 199,236,267 214,481,595 Changes in net position
Governmental activities (28,740,733) 27,779,259 75,591,817 23,376,325 30,749,400 Business-type activities 12,103,996 8,877,805 16,840,368 11,296,544 4,727,592 Total primary government S (16,636,737) $ 36,657,064 $ 92,432,185 $ 34,672,869 $ 35,476,992 (Concluded)
- 167 -
City of San Bernardino
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year
2015 2016 2017 2018 2019
General fund:
Nonspendable $ 40,858,145 $ 33,023,125 $ 32,855,157
Restricted 1,226,630 1,270,317
Committed 53,451 133,282
Assigned
Unassigned 15,260,350 32,571,653 30,218,397 38,995,689 31,543,452 Total general fund 18,028,197 34,411,679 71,752,835 72,090,552 64,540,412 All other governmental funds:
Nonspendable 65,167,831 44,059 59,093,468 300
Restricted 47,298,125 114,064,965 48,460,477 89,723,105 97,648,385 Committed
Assigned
Unassigned (906,217) (87,413) (32,806) (35,991)
$ 114021,611 S 107.521.139
Total all other governmental funds $ 111,559,739 89.723.405 97,612,394 - 168-
City of San Bernardino
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year
2020 2021 2022 2023 2024
General fund:
Nonspendable 32,273,054 39,492,536 $ 40,204,687 $ 41,421,536 40,806,497 Restricted 1,556,304 2,261,884 2,107,208 2,086,366 2,099,574 Committed 31,775,137 44,471,970 104,210,082 129,954,653 146,649,441 Assigned 1,517,842 2,215,990 6,669,342 13,370,050
Unassigned 597,818 22,300,252 3,257,776
Total general fund 67,720,155 110,742,632 156,449,095 173,462,555 202,925,562 All other governmental funds:
Nonspendable 83
Restricted 99,614,892 95,507,865 100,909,122 106,830,097 123,401,403 Committed
Assigned
Unassigned
99597,512 5 95,507,865 $ 100,909,122 $ 106,830,097
Total all other governmental funds $ 123,401,486
- 169 -
City of San Bernardino
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year
2015 2016 2017 2018 2019
Revenues:
Taxes $ 108,248,780 $ 116,474,108 $ 101,310,156 $ 106,751,261 $ 111,195,458 Licenses and permits 11,226,693 11,515,983 10,646,234 12,021,242 12,305,689 Impact fees 2,915,704 2,409,364 2,690,413 2,494,953 1,858,064 Fines and forfeitures 1,859,659 2,642,998 2,268,213 2,476,338 2,737,250 Investment Income 808,225 1,528,158 693,247 683,016 3,182,715 Lease 396,250 569,583 734,853 1,367,014 1,099,730
Intergovernmental 23,211,589 16,672,907 12,581,942 18,615,104 21,839,908 Charges for services 10,432,822 13,124,068 10,536,949 8,653,717 8,804,880 5,851,039 9 843 361 5,311,574 6,150,859 3.015,369
Total revenues 164,950,761 174,780,530 146,773,581 159,213,504 166.039,063 Expenditures:
Current:
General Government 23,028,342 30,023,905 41,208,970 27,143,743 23,544,245 Public Safety 86,113,657 90,994,899 63,871,615 77,574,446 84,537,639 Public Works 16,779,236 20,009,090 19,562,136 21,471,387 40,588,569 Culture and Recreation 10,015,698 7,549,588 6,188,786 8,034,662 3,425,100 Community Development 3,550,617 4,501,617 4,978,005 4,608,360 5,756,424 Community Service 5,109,127 3,204,997 2,586,926 2,302,476 3,773,249 Debt service:
Principal retirement 9,897,441 12,771,410 7,782,077 5,955,768 1,971,120 Interest and fiscal charges 1,488,074 1,009,214 946,770 1,202,292 872,500 Total expenditures 155,982,192 170,064,720 147,125,285 148,293,134 164,468,846 Excess (deficiency) of revenues
over (under) expenditures 8,968,569 4,715,810 (351,704) 10,920,370 1,570,217 Other financing sources (uses):
Transfers in 3,087,398 15,153,355 7,133,534 590,005 1,491,125 Transfers out (886,397) (1,023,811) (16,487,965) (229,655) (1,491,125) Issuance of debt 4,414,002
Inception of lease liability
Original issue discount :
Payment to refunded bond escrow agent
Loss on sale of property held for resale
Sale of capital assets (254,169) (8235688)
- -
Total other financing
sources (uses) 2,201,001 14,129,544 (9,608,600) 4,774,352 (823,688) Extraordinary item:
IRPMP Transfers from Successor Agency 38,848,755
Chapter 9 Bankruptcy Settlement 1,952,233 :
Notes Receivable adjustment (24,902,675)
Net change in fund balances 11,169,570 $ 18,845,354 I S 30,840,684 $ (9,207,953) 746,529 Expenditures for capitalized assets 5,682,353 3,658,379 3,702,189 5,807,791 10,386,763 Debt service as a percentage of
noncapital expenditures 7.6% 8.3% 6.1% 5.0% 1.8%
- 170 -
City of San Bernardino
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year
2020 2021 2022 2023 2024
Revenues:
Taxes $ 112,084,820 $ 137,935,700 $ 185,762,246 $ 191,754,388 $ 193,249,667 Licenses and permits 13,210,675 13,256,934 14,195,177 16,442,887 16,745,121 Impact fees 4,188,573 2,503,324 9,361,021 4,368,737 5,050,311 Fines and forfeitures 2,611,840 1,441,589 1,990,048 2,049,352 2,584,802 Investment Income 3,202,705 796.617 (5,290,134) 4,740,575 14,086,024 Lease 1,193,281 1,125,520 1,273,120 1,289,487 969,607
Intergovernmental 21,575,427 31,415,959 41,032,187 41,047,625 48,176,754 Charges for services 7,457,572 10,077,721 12,685,004 11,090,718 8,877,290 Other 4,845,817 12,932,019 3,886,709 3,141,833 4,847,507 Total revenues 170,370,710 211,485,383 264,895,378 275,925,602 294,587,083 Expenditures:
Current:
General Government 24,482,935 23,491,404 27,300,123 44,290,579 32,137,004 Public Safety 83,369,905 85,438,105 95,006,958 109,590,359 116,581,424 Public Works 38,399,067 39,513,013 48,085,969 57,690,144 55,596,944 Culture and Recreation 5,200,611 4,408,800 4,825,874 3,687,479 7,022,616 Community Development 7,002,361 7,405,140 18,134,668 17,341,992 13,078,280 Community Service 3,714,899 10,087,014 15,784,119 16,887,870 24,274,269 Debt service:
Principal retirement 2,334,830 1,849,620 2,551,379 2,326,808 1,342,520 Interest and fiscal charges 1,200,950 1,546,373 1,626,581 1,546,741 1,486,453 Total expenditures 165,705,558 173,739,469 213,315,671 253,361,972 251,519,510 Excess (deficiency) of revenues
over (under) expenditures 4,665,152 37,745,914 51,579,707 22,563,630 43,067,573 Other financing sources (uses):
Transfers in 1,029,316 1,714,702 138,000 184,353 114,321 Transfers out (1,029,316) (1,714,702) (138,000) (184,353) (114,321) Issuance of debt 19,850,000
Inception of lease liability 2,135,838 311,240 2,966,323 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 22,029 103,850 2,800 59,565 500
-.
Total other financing
sources (uses) 22,029 1,186,916 (471,987) 370,805 2,966,823 Extraordinary item:
IRPMP Transfers from Successor Agency
:
Chapter 9 Bankruptcy Settlement
Notes Receivable adjustment
Net change in fund balances $ 4,757,181 $ 38,932,830 $ 51,107,720 $ 22,934,435 $ 46,034,396 Expenditures for capitalized assets 7,860,472 11,318,921 10,058,911 17,597,954 21,193,477 Debt service as a percentage of
noncapital expenditures 2.2% 2.1% 2.1% 1.6% 1.2%
- 171 -
City of San Bernardino
Tax Revenues by Source - Governmental Funds
Last Ten Fiscal Years
Fiscal Year
Ended Property Sales Franchise Utility User Transient Cannabis June 30 Tax Occupancy Tax Taxes Total
2015 $ 40,571,180 $ 31,187,510 $ 3,900,853 $ 23,921,806 $ 3,463,262 s $ 110,213,694 2016 41,344,972 36,680,419 4,925,012 23,986,813 4,327,091 119,448,590 2017 13,749,684 43,641,309 10,777,853 23,591,923 4,502,185 103,660,043 2018 18,498,848 43,890,011 10,657,848 23,666,459 4,987,491 109,853,686 2019 17,101,369 49,450,785 11,550,447 22,924,522 4,950,170 114,195,169 2020 18,814,022 48,179,314 12,684,556 22,680,847 4,525,751 222,419 114,547,235 2021 19,639,920 68,796,708 13,470,312 23,609,073 5,117,388 1,276,323 139,993,363 2022 23,099,229 108,554,989 12,698,934 26,272,812 5,781,762 4,650,447 189,332,484 2023 24,088,301 109,693,092 13,702,461 31,208,992 5,491,564 2,105,746 196,642,328 2024 25,438,723 108,683,581 15,340,794 28,671,310 5,826,493 3,234,341 187,195,242 - 172 -
City of San Bernardino
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
City Redevelopment Agency"
Fiscal Year Taxable Taxable Total
Ended Less Assessed Less Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 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 5,802,680,684 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 7,233,150,348 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% 2024 8,460,707,900 696,851,997 (113,410,434) 9,044,149,463 10,674,439,441 1,145,412,788 11,819,852,229 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. (' Redevelopment Agency was dissolved on February 1, 2012.
Source: HdL, Coren & Cone, San Bernardino County Auditor/Controller - 173-
City of San Bernardino
Taxable Sales by Category
Last Ten Calendar Years (In Thousands of Dollars)
Calendar Year
2014 2015 2016 2017 2018
Apparel Stores $ 117,123 $ 121,778 $ 124,213 $ 123,220 $ 130,457 General Merchandise 419,542 433,719 435,341 450,489 456,565 Food Stores 76,856 79,474 85,633 84,848 91,187
Eating and Drinking Places 296,399 320,304 337,469 362,303 378,339 Building Materials 240,632 249,553 265,323 277,395 294,083 Auto Dealers and Supplies 423,024 454,933 490,109 524,118 490,259 Service Stations 330,727 291,942 268,125 293,393 337,616 Other Retail Stores 317,133 340,705 341,002 340,216 366,959 All Other Outlets 847,943 913,442 999,364 1,064,621 1,205,531 Total $ 3,069,379 3,205,850 3,346,579 $ 3,520,603 $ 3,750,996 Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Vote: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented ar ntended to provide alternative information regarding the sources of the City's revenue - 174 -
City of San Bernardino
Taxable Sales by Category (Continued)
Last Ten Calendar Years (In Thousands of Dollars)
Calendar Year
2019 2020 2021 2022 2023
Apparel Stores $ 131,743 $ 107,714 $ 166,720 $ 156,349 $ 152,016 General Merchandise 460,923 446,359 517,197 537,365 546,306 Food Stores 93,708 101,497 101,583 109,578 115,446
Eating and Drinking Places 392,808 350,223 439,817 466,296 484,070 Building Materials 287,929 352,558 384,346 389,998 400,738 Auto Dealers and Supplies 441,114 484,110 666,316 724,459 682,925 Service Stations 333,919 249,686 394,461 520,732 454,582 Other Retail Stores 372,002 399,907 515,906 515,101 489,247 All Other Outlets 1,306,306 1,548,181 2,247,738 2,287,781 2,143,895 Total $ 3,820,452 $ 4,040,235 5,434,084 $ 5,707,659 $ 5,469,225 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. - 175 -
City of San Bernardino
Principal Sales Tax Remitters
Current Year and Nine Years Ago
Fiscal Year 2024 Fiscal Year 2015
Business Name Business Category Business Name Business Category 7 Eleven Service Stations Allied Building Products Building Materials Allstar Kia New Motor Vehicle Dealers Allstar Kia New Motor Vehicle Dealers Amazon Fulfillment Center Fullfillment Center Best Buy Electronics/ Appliance Stores Amazon MFA Fulfillment Centers Chaparral Motorsports Boats/Motorcycles Best Buy Electronics/ Appliance Stores Chevron Service Stations Chaparral Motorsports Boats/Motorcycles Costco Discount Dept Stores Chevron Service Stations Crest Chevrolet New Motor Vehicle Dealers Costco Discount Dept Stores Fairview Ford New Motor Vehicle Dealers Diamond Chevrolet Of San Bernardino New Motor Vchicle Dealers Gerdau Long Steel North America Heavy Industrial Fairview Ford New Motor Vehicle Dealers Greenbrier Rail services Transportation-Non-auto HD Supply Building Materials Home Depot Building Materials Home Depot Building Materials Inland Water Works Supply Heavy Industrial Kohls Distribution Center Fulfillment Centers Interline Brands Plumbing/Electrical Supplies Michelin Trailers/Auto Parts Kohls Distribution Center Fullfillment Centers Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vchicle Dealers Macys Department Stores Nissan of San Bernardino New Motor Vehicle Dealers Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Ross Family Apparel Nissan of San Bernardino New Motor Vehicle Dealers Sams Club w/ Fuel Discount Dept Stores Ross Family Apparel San Bernardino International Airport Authority Aircraft Sales & Service Sams Club w/ Fuel Discount Dept Stores Stater Bros Grocery Stores Scars Department Stores
Subaru of San Bernardino New Motor Vehicle Dealers Stater Bros Grocery Stores Toyota of San Bernardino New Motor Vehicle Dealers Target Discount Dept Stores Walmart Discount Dept Stores Toyota of San Bernardino New Motor Vchicle Dcalers White Cap LP Building Materials USA Gasoline Service Stations Yaamava Resort And Casino At San Manuel Leisure/Entertainment Walmart Discount Dept Stores *Firms listed alphabetically
Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HaL Companies
- 176 -
City of San Bernardino
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal Year
Agency 2015 2016 2017 2018 2019 2020 20201— 2022 2023 2024 - - - -
Basic Levy" 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Colton Unified School Board 0.09730 0.11690 0.14540 0.09390 0.11160 0.10160 0.10310 0.10810 0.06560 0.06870 Crestline-Lake Arrowhead Water Agency - Bond 0.07250 0.07280 0.07280 0.08700 0.08700 0.11900 0.11900 0.11900 0.11900 0.11900 Redlands Unified School Bond 1993 0.05940 0.05670 0.05240 0.04940 0.03240 0.03390 0.03600 0.06620 0.02790 0.03160 Rialto Unified School Bond 0.06550 0.11940 0.09920 0.09570 0.07710 0.08480 0.08050 0.08290 0.07460 0.15560 San Bernardino Community College Bond 0.03930 0.04030 0.03500 0.03760 0.04070 0.05620 0.06510 0.05340 0.04500 0.04520 San Bernardino Unified School Bond 0.10810 0.11820 0.07950 0.10070 0.11260 0.09690 0.10340 0.10890 0.08780 0.06880 San Bernardino Valley Muni Water 0.16250 0.16250 0.16250 0.15250 0.15250 0.14250 0.14250 0.13000 0.13000 0.12000 Total Direct and Overlapping Rates®) 1.60460 1.68680 1.64680 1.61680 1.61390 1.63490 1.64960 1.66850 1.54990 1.60890 City's Share of 1% Levy Per Prop 13(* 0.16897 0.16897 0.16897 0.00000 0.00000 0.00000 0.00000 0.00000 0.000000.00000 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 0.00000 0.00000 0.000000.00000 0.00000 0.00000 0.000000.00000 0.00000 0.00000 Total Direct Rates(5) 0.16974 0.16975 0.16975 0.00886 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 (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.
* 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. (* 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. - 177 -
City of San Bernardino
Principal Property Taxpayers
Current Year and Ten Years Ago
2024 2015
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer: Value Rank Value Value Rank Value
Stater Bros Markets $ 416,817,454 1 1.99% 327,815,168 1 2.90% Amazon Com Services Inc 362,967,485 2 1.73%
BSREP III Central L.L.C 204,979,816 3 0.98%
CSHV Show Place 215 LL.C 192,341,921 4 0.92%
Eastgate Building 1 LL.C 153,773,418 0.73%
HW Southgate Building LLC 124,596,649 6 0.59%
WM Inland Investors IV LLC 121,809,831 0.58% 61,541,635 10 0.54% IE Logistics Inc 114,691,925 8 0.55% 97,339,927 5 0.86% EXETER 6227 Cajon LIC 104,807,757 0.50%
Gear 6207 Cajon Propco LIC 104,040,000 10 0.50%
Golden State FC LLC 125,896,421 1.11%
Tri City Owner LLC 113,942,294 3 1.01%
Kohl's Department Stores Inc 106,853,022 4 0.95%
Teachers Insur And Annuity Assn 72,000,000 6 0.64%
HW Southgate LP 71,499,552 0.63%
Lit Industrial LP 66,128,303 8 0.59%
Westgate No 1 LP 62,908,526 9 0.56%
$ 1,900,826,256 2.07% $ 1,105,924,848 9.79%
Sources: HdL, Coren & Cone
- 178 -
City of San Bernardino
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 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% 20171) N/A 95,314 N/A 116,204 211,518 N/A
2018) N/A 197,198 N/A 88 197,286 N/A
2019(1) N/A 235,242 N/A 5,550 240,792
2020( N/A 64,212 N/A 3,055 67,267
2021(") N/A 93,605 N/A 30,272 123,877
2022(") N/A 197,545 N/A 28,985 226,530 N/A
2023( N/A 174,874 N/A 26,358 201,232 N/A
2024(") N/A 40,541 N/A 28,718 69,259 N/A
Note:
The amounts presented include City property taxes only. ("'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.
Source: County of San Bernardino, Auditor/Controller - Recorder - County Clerk - 179 -
City of San Bernardino
Top 10 Customers - Water and Sewer Treatment
Current Year
Water Sewer Treatment
-
Percent of Percent of
Total Total Sewer
Customer Water Customer Treatment
Customer: Revenue Rank Revenue Revenue Rank Revenue
San Bernardino City Unified School District $ 1,540,033 1 3.35% $ 405,431 2 0.88% City of San Bernardino 1,500,629 3.26% 223,242 4 0.48%
City of San Bernardino Water 757,326 3 1.65%
California State University, San Bernardino 630,755 4 1.37% County of San Bernardino 348,665 5 0.76% 635,350 1 1.37% Housing Authority 253,118 6 0.55% 240,935 3 0.52%
Cott Beverages 247,890 7 0.54%
Rialto School District 223,154 8 0.49%
W. Dean Weidner 203,151 0.44% 159,828 8 0.35%
Crest Haven Apartments 175,580 10 0.38%
Lido Condominiums 159,764 9 0.35%
Pama Management Co. 201,931 6 0.44%
St. Bernardine Hospital 204,446 5 0.44%
San Bernardino Community Hospital 170,538 7 0.37%
Broadstone Investors LLC 143,384 10 0.31%
S 5,880,301 12.79% $ 2,544,849 5.51%
Source: City Water Department
- 180 -
City of San Bernardino
Connections and Revenues by User Type - Water
Last Ten Fiscal Years
2024 2023 2022 2021
User Type _Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,140 $ 22,210,799 36,063 $ 21,652,852 35,744 $ 23,761,145 35,995 $ 23,875,761 Multiple family 2,932 6,148,207 2,916 5,835,444 2,905 5,562,012 2,908 5,569,436 Commercial 3,158 8,976,290 3,164 8,454,199 3,151 6,976,893 3,154 6,579,373 Landscape 1,189 6,957,544 1,196 6,742,399 1,184 5,515,046 1,192 5,277,114 Other 2,671 1,692,251 2,574 860,736 2,296 811,219 2,241 811,833 Total all users 46,090 $ 45,985,091 45,913 $ 43,545,630 45,280 $ 42,626,315 45,490 $ 42,113,517 2020 2019 2018 2017
Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,042 $ 22,909,054 36,006 $ 21,579,693 35,824 $ 20,476,866 35,825 $ 17,346,414 Multiple family 2,907 5,222,345 2,903 5,157,997 2,904 4,944,978 2,899 4,449,204 Commercial 3,117 6,482,560 3,104 6,320,900 3,111 6,117,493 3,131 5,750,672 Landscape 1,181 4,542,108 1,150 4,256,390 1,159 4,694,704 1,121 3,789,527 Other 2,174 781,428 2,056 808,227 2,018 748,141 1,956 557,392 Total all users 45,421 $ 39,937,495 45,219 $ 38,123,207 45,016 $ 36,982,182 44,932 $ 31,893,209 2016 2015
Connections Revenue Connections Revenue
Single family 35,729 $ 15,688,749 35,695 $ 16,775,834
Multiple family 2,873 4,225,832 2,869 4,349,601
Commercial 3,092 4,913,942 3,097 6,332,882
Landscape 1,129 3,203,907 1,130 3,079,610
Other 1,905 677,180 1,791 679,606
Total all users 44,728 $ 28,709,610 44,582 $ 31,217,533 Source: City Water Department
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City of San Bernardino
Water Rate History - Minimum Monthly Charge
Last Ten Fiscal Years
Monthly Charge
Effective
Date 3" 4" 6" 8" 10" 12"
7/1/2015 103.50 168.20 330.00 524.15 750.65
10/1/2016 129.12 197.36 411.68 653.88 936.44 *
7/1/2017 157.06 240.07 500.78 795.40 1,139.12 *
7/1/2018 187.66 286.63 598.33 950.34 1,361.01
7/1/2019 187.66 286.63 598.33 250.34 1,361.01 *
7/1/2020 187.66 286.63 598.33 950.34 1,361.01
7/1/2021 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 4/1/2022 20.49 20.49 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 21.72 29.87 46.13 86.79 135.59 412.10 818.73 1,306.69 2,282.61 4,478.42 4,478.42 7/1/2023 22.59 22.59 31.07 47.98 90.27 141.02 428.59 851.48 1,358.96 2,373.92 4,657.50 4,657.56 7/1/2024 23.27 23.27 32.01 49.42 92.98 145.26 441.45 877.03 1,399.73 2,445.14 4,797.29 4,797.29 '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.
* Information not reported.
Source: City Water Department
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City of San Bernardino
Sewer Treatment Rate History
Last Ten Fiscal Years
Fiscal Year
10/1/20157/1/20163/1/20173/1/20183/1/20123/1/2020 3/1/2021 1/1/2022 1/1/2022" 7/1/2023"9 7/1/2024 Residential (monthly per DID 20.65 22.38 23.10 23.10 23.10 23.10 23.10 37.83 41.99 45.35 48.98 Commercial:
Commodicy Charge (per HCF):
Multi-family, mobile home parks 1.36
Retail, commercial, light industrial 228
Auto repair, car wash 1.41
Offices, motels (w/o restaurants) 1.63
Restaurants, hotels 2.93
Laundromats 1.63
Hospitals, convalescent homes 1.46
Schools, churches, nursery schools 1.19
Industrial:
Discharge Flow (per million gallons) 1,060.00 1,094.00 1,094.00 1,094.00 1,094.00 1,420.83 1,577.12 1,703.29 1,839.55 Biological Osygen demand (per 1,000 Ibs) 438.00 719.59 777.16 839.32 Suspended Solids (per 1,000 Ibs) 694.00 753.00 778.00 778.00 778.00 778.00 778.00 648.50 719.84 777.42 839.62 'The Sewer Collection rate was combined with the Sewer Treatment rate to become the sewer rate that was effective 04/01/22.
Source: City Water Department
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City of San Bernardino
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019
Governmental Activities:
Lease revenue bonds 6,315,000 5,670,000 4,985,000 4,414,002 3,598,360 Certificates of participation) 3,735,000 3,445,000
Pension obligation bonds"") 52,924,744 53,608,476
Notes payable 13,658,117 11,014,753 29,724,658 28,286,305 26,649,629 Lease liabilities 4,577,523 1,204,912 658,888 534,311 406,234 Subscription liabilities
Total governmental activities 81,210,384 74,943,141 35,368,546 33,234,618 30.654.223 Business-type Activities:
Financed purchase 2,652,586
Notes payable 22,826,237 20,568,662 200,000 600,000 300,000 Certificates of participation 6,346,308
Water bonds 88,655,746 87,091,704 85,482,663
Lease liabilities :
Subscription liabilities
Total business-type activities 31,825,131 20,568,662 89,555,746 87,691,704 85,782,663 Total Primary Government $ 113,035,515 $ 95,511,803 $ 124,924,292 $ 120,926,322 $ 116,436,886 Percentage of Personal Income®) 1.48% 1.20% 1.48% 1.42% 1.37% Debt per Capita®) $ 528 $ 443 $ 576 $ 547 $ 531
("' 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.
1) Based on most current data available.
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City of San Bernardino
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Fiscal Year
2020 2021 2022 2023 2024
Governmental Activities:
Lease revenue bonds $ 2,751,781 $ 1,871,537 $ 953,847 $ - Certificates of participation ("
Pension obligation bonds") 19,276,972 19,269,444 19,256,915 19,244,387 Notes payable 24,666,171 4,374,000 3,600,000 2,776,000 1,922,000 Lease liabilities 274,558 139,182 1,245,331 2,197,866 4,895,227 Subscription liabilities 389,904 267,238
Total governmental activities 27,692,510 25,661,691 25,068,622 24,620,685 26,328,852 Business-type Activities:
Financed purchase : : : :
Notes payable
Certificates of participation -
Water bonds 83,813,621 82,084,580 80,280,539 78,391,498 76,422,456 Lease liabilities 107,614 59,878 11,994
Subscription liabilities 122,978
Total business-type activities 83,813,621 82,084,580 80,388,153 78,574,354 76,434,450 Total Primary Government $ 111,506,131 $ 107,746,271 $ 105,456,775 $ 103,195,039 $ 102,763,302 Percentage of Personal Income ®) 1.37% 1.40% 2.29% 2.24% 1.98% Debt per Capital®) $ 512 498 478 $ 462 $ 454
(* 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.
® Based on most current data available.
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City of San Bernardino
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years (In Thousands, except Per Capita) Fiscal Pension Lease Percent of
Year Ended Obligation Revenue Assessed Per
June 30 Bonds'") Bonds Total Value Capita
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
:
2024 19,244 19,244 0.09% 85
Source: City Finance Department
" 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. - 186 _
City of San Bernardino
Schedule of Direct and Overlapping Bonded Debt
Current Fiscal Year
2023-24 Assessed Valuation: $ 20,977,412,126
Total Debt Applicable City's Share of
6/30/2024 (1) Debt 6/30/24
OVERLAPPING TAX AND ASSESSMENT DEBT:
San Bernardino Community College District 205,105,266 20.724% $187,574,015 Colton Joint Unified School District 211,632,220 14,729,603 Redlands Unified School District 48,943,512 2,343,415
Rialto Unified School District 153,447,728 9,915,792
San Bernardino City Unified School District 315,584,428 241,150,685 Colton Joint Unified School District Community Facilities District No. 2 2,975,000 1,221,327 City of San Bernardina Community Facilities District No. 2018-2 2,935,000 2,935,000 City of San Bernardina Community Facilities District No. 2020-1 2,465,000 3,405,000 City of San Bernardina Community Facilities District No. 2021-1 2,700,000 2,700,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 466,034,837
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Bernardino County General Fund Obligations 131,565,000 6.585% S 8,663,555 San Bernardino County Flood Control District General Fund Obligations 37,295,000 6.585% 2,455,876 Colton Joint Unified School District General Fund Obligation 5,715,443 6.960% 397,795 Redlands Unified School District Certificates of Participation 21,210,000 4.788% 1,015,535 Rialto Unified School District Certificates of Participation 6,599,537 6.462% 426,462 San Bernardino City Unified School District Certificates of Participation 56,025,000 76.414% 42,810,944 City of San Bernardino Pension Obligation Bonds 19,750,000 100% 19,750,000 HUD Section 108 Note Payable 1,922,000 100% 1,922,000
Lease Liabilities 4,895,228 100% 4,895,228
Subscription Liabilities 267,238 100% 267,238
Unamortized Bond Discount (505,612) 100% (505,612)
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 77,442,167 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):
San Bernardino County Inland Valley Project Tax Allocation Bonds 209,565,000 66.574% $ 139,515,803 City of San Bernardino Tax Allocation Bonds $ 19,805,000 100% 19,805,000 City of San Bernardino Certificates of Participation 605,000 100%_ 605,000 TOTAL OVERLAPPING TAX INCREMENT DEBT $ 159,925,803
TOTAL DIRECT DEBT 26,328,854
TOTAL OVERLAPPING DEBT 681,730,807
COMBINED TOTAL DEBT 708,059,661
(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, and mortgage revenue liability obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios to 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.22%
Total Direct Debt ($26,328,852) 0.13%
Combined Total Debt 3.38%
Ratios to Redevelopment Successor Agency Incremental Valuation $ 11,819,852,229 Total Overlapping Tax Increment Debt 1.35%
Source: California Municipal Statistics, Inc.
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City of San Bernardino
Legal Debt Margin
Last Ten Fiscal Years (In Thousands)
Fiscal Year
2015 2016 2017 2018 2019
Assessed valuation $ 11,298,116 $ 11,913,720 12,658,595 $ 13,387,519 $ 14,190,217 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed value 2,824,529 - 2,978,430 3,346,880 3,547,554 3,164,649
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 423,679 446,764 474,697 502,032 532,133
Total net debt applicable to limit:
General obligation bonds 67,830 67,198 9,060 8,069 6,813 Legal debt margir 355,850$ 379,566 465,637 493,965 525,320 Total debt applicable to the limit =
as a percentage of debt limit 16.0% 15.0% 1.9% 1.6% 1.3% 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.
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City of San Bernardino
Legal Debt Margin (Continued)
Last Ten Fiscal Years (In Thousands)
Fiscal Year
2020 2021 2022 2023 2024
Assessed valuation $ 15,557,321 $ 16,415,502 $ 17,728,678 $ 19,097,790 $ 20,977,412 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed value 3,889,330 4,103,876 4,432,170 4,774,447 5,244,353 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 583,400 615,581 664,825 716,167 786,653
Total net debt applicable to limit:
General obligation bonds 5,497 23,977 22,509 20,975 20,360 Legal debt margin 577,903 5 591,605 642,31T 695,192 766,295 Total debt applicable to the limit
as a percentage of debt limit 0.9% 3.9% 3.4% 2.9% 2.6%
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.
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City of San Bernardino
Debt Service Coverage
Last Ten Fiscal Years (In Thousands)
Water Utility
Fiscal Operating Net Non- Net
Year Ended Operating Expenses Operating Operating Available Debt Service June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 33,121 30,139 $ 2,982 $ $ 570 2.45
30,002 29,025 977 523 1.39
33,359 30,597 2,762 219 11.47
38,280 27,874 10,406 2,224 4.53
39,100 27,482 11,618 2,196 5.16
40,267 31,062 9,205 2,164 4.29
42,758 34,642 8,116 2,130 3.60
43,150 32,373 10,777 2,090 4.38
44,092 39,413 4,679 2,044 2.64
45,985 41,865 4,120 1,996 4.28
Sewer Utility
Fiscal Operating Net Non- Net
Year Ended Operating Expenses Operating Operating Available Debt Service June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 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
2024 47,385 38,940 8,445 1,521 9,966 770 1,194 5.07
Source: City department's annual reports
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City of San Bernardino
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita
Calendar Income Personal Unemployment
Year Population" (in thousands) (2) Income 3(4) Rate (
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%
219,233 8,509,748 38,816 4.10%
217,671 8,159,289 37,485 11.30%
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%
2024 226,541 5,179,860 22,865 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
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City of San Bernardino
Budgeted Full-Time and Part-Time Positions by Function
Last Ten Fiscal Years
Fiscal Year
Function 2015 2016 2017 2018 2019 - 2020 2021 2022 2023 2024 General Government 146 148 147 117 107 92 91 81 20 129
Public Safety 611 607 470 474 468 427 402 413 413 508
Public Works 270 254 185 138 131 129 136 139 139 160
Culture & Recreation 101 103 104 111 110 111 127 129 129 138 Community Development 35 37 39 38 33 26 40 46 60 70
Community Service 32 33 34 38 37 33 41 69 70 95
Enterprise 258 258 272 300 292 299 299 296 299 302
Total 1,453 1,440 1,251 1,216 1,185 1,117 1,136 1,173 1,200 1,402 Source: Budgeted positions for full and part time employees - 192 -
City of San Bernardino
Capital Asset Statistics
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pubic Safety:
Police stations 1 1 1 1 1 1 1
Fire stations * * * * * * *
Public Works:
Miles of streets 629 629 629 616 616
Street lights (City maintained) ** 7,400 7,400 6,706 6,706 Street lights (SCE maintained) ** 7,500 7,500 7,111 7,384 Street traffic controllers (signals) 289 308 295 295 297 Street traffic controllers (ped-xing) 19 308 *** ***
Parks and Recreation:
Parks 37 37 37 37 36 36 36 36 36 36
Park acreage 545 545 545 545 530 507 507 507 552 552
Water:
Water mains (miles) 603 608 608 609 612 729 729 729 701 701 Sewer:
Sanitary sewers (miles) 510 510 510 510 510 478 478 478 481 477 Source: Various City departments
Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.
** Information not available
Included in above number
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City of San Bernardino
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
2015 2016 2017 2018 2019
Police:
Arrests 10,590 8,930 10,256 11,295 12,100
Parking citations issued 14,692 14,781 21,711 21,480 16,359 Traffic citations issued 4,338 3,062 3,848 3,108 9,055
Fire:
Number of emergency calls * ** ** **
Inspections * * ** ** **
Public Works/Public Services:
Street resurfacing (lane miles) * * * *
Parks and Recreation:
Number of recreation classes 432 525 494 514 509
Number of facility rentals 220 290 277 345 321
Water:
Total connections 44,582 44,728 44,932 45,016 45,220
Sewer:
Total connections 63,377 64,342 63,274 63,525 61,253
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.
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City of San Bernardino
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Fiscal Year
2020 2021 2022 2023 2024
Police:
Arrests 11,137 10,357 7,792 8,336 10,157
Parking citations issued 12,334 13,110 11,332 10,496 13,739 Traffic citations issued 9,276 1,628 5,473 6,679 6,406
Fire:
Number of emergency calls ** ** ** ** **
** ** ** ** **
Inspections
Public Works/Public Services:
Street resurfacing (lane miles) * * * *
Parks and Recreation:
Number of recreation classes 63 63 321 547 517
Number of facility rentals 208 208 248 182 207
Water:
Total connections 45,421 45,490 45,280 45,913 46,090
Sewer:
Total connections 59,719 60,777 61,746 61,805 38,996
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.
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DERNARDINO
SAN
CITY OF CALIFORNIA
FO FOUNDED IN I8T0