Berhardin City Hall
POPULAR ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2024
City of San Bernardino, California
290 North "D" Street
San Bernardino, CA 92401
www.sbcity.gov
SAN
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CITY
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TABLE OF CONTENTS
ABOUT THIS REPORT 1
MAYOR & CITY COUNCIL 2
City Structure 2
City Council Meetings 2
Mayor and City Council 2
ABOUT SAN BERNARDINO _3
City Profile
City Facts
CITY MISSION, VISION, & STRATEGIC GOALS 4
Mission 4
Vision 4
2020-2025 Strategic Targets & Goals
FISCAL YEAR 2024 HIGHLIGHTS
Financial Highlights 5
CITY-WIDE FINANCES 6
City-Wide Financial Overview 6
Statement of Net Position 6
Statement of Activities 8
Revenues 10
Expenses 11
LONG-TERM ASSETS _ 12
Capital Assets -12
LONG-TERM DEBT .13
Debt 13
ABOUT THIS REPORT
Dear Citizens of San Bernardino,
The City of San Bernardino is proud to present the Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2024. The financial information contained within this report is derived from the financial statements that are a part of the City's 2024 Annual Comprehensive Financial Report (ACFR), which is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and audited by an independent firm of certified public accountants, Rogers, Anderson, Malody & Scott, LLP of San Bernardino, CA. The ACR contains additional detailed and extensive information about the City's financial position and is available for public viewing at the Finance department and online at https://sbcity.org/DocumentCenter/Index/451.
The purpose of the PAFR is to convey the information presented in the ACR in a condensed and easily understood format and to better inform the public about the overall financial condition of the City without the heavy use of technical accounting terms or excessive detail. The PAFR represents another indication of the City of San Bernardino's commitment to financial transparency and accountability.
If you have any questions about this report or would like additional information, please contact the Finance Department at 290 North "D" Street San Bernardino, CA 92401 or 909.384.5242.
Sincerely,
Jeannie Fortune
Interim Director of Finance and Management Services
2 MAYOR & CITY COUNCIL
City Structure
The City of San Bernardino is a Charter City in the state of California and has operated under the Council-Manager form of government since 2016. Under this governance plan, the elected Mayor and City Council appoint 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 City Council's direction. The City Council is elected on a non-partisan basis from seven wards, while the Mayor is elected at-large. Each elected official serves a four-year term.
City Council Meetings
City Council meetings are held on the first and third Wednesday of each month at 4:00p.m. at the Feldheym Central Library, located at 555 W 6th Street. City Council meetings are open to the public and citizen input is welcome. Citizens may speak at City Council meetings on agenda and non-agenda items by submitting a speaker slip before the meeting begins.
The agenda for each City Council meeting is available at https://sbcity.org/720/Agendas-Minutes at least 72 hours prior to each meeting. Agendas are also posted at Vanir Tower outside the main entrance.
Mayor and City Council
Helen Theodore Sandra Juan Fred Ben Kimberly Damon L.
Tran Sanchez Ibarra Figueroa Shorett Reynoso Calvin Alexander Council Council Council Council Council Council Council Mayor Member Member Member Member Member Member Member
1st Ward 2nd Ward 3rd Ward 4th Ward 5th Ward 6th Ward 7th Ward 3 ABOUT SAN BERNARDINO
City Profile
Nestled south of the San Bernardino Mountains, and west of the lower desert, the city of San Bernardino has been recognized for its scenic beauty and strategic location. Located approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs, the City is home to an international airport, a passenger rail station, freight rail routes, cross-docking truck centers, and is conveniently surrounded by interstate and state highways, making it an inter-modal logistics hub. With a population of over 220,000, San Bernardino is the largest city in the county and serves as the county seat. Affectionately known by locals as "San Berdoo," it is a community rich in history and cultural diversity.
City Facts
226,541 $63,328 5.9%
Population Median Household Income Unemployment Rate
$210M $432,800
Libraries Annual General Fund Budget Median Home Value
%
Total Land Area Parkland 616
64 Sq. Miles 552 acres Miles of streets
85,086 Combined Utility Connections/Customers
(Water & Sewer)
4 CITY MISSION, VISION, & STRATEGIC INITIATIVES
Mission
The mission of the City of San Bernardino is to create, maintain, and grow economic value in the community.
Vision
• We envision a world class city which capitalizes on its location, the diversity of its people and its economy to create a broad range of choices for its residents in how they live, work, and play. • We envision a thriving city possessing a sustainable system of high-quality education, community health, public safety, housing, retail, recreation, arts and culture and infrastructure. • We envision a vibrant economy with a skilled workforce that attracts employers who seek the unique opportunities the city has to offer and provide jobs that create citywide prosperity. • We envision a model community which is governed in an open and ethical manner, where all sectors work collaboratively to reach shared goals.
• We envision a city that is recognized as the county's business and government center and a home for those seeking a sense of community and the best life has to offer. 2023-2025 Strategic Initiatives
• Improved Operational and Financial Capacity
• Infrastructure master plans
• Position control and staffing efficiency
• Focused, Aligned Leadership and Unified Community
• Legislative advocacy program
• Economic development department creation
• Improved Quality of Life
• Homelessness and housing programs
• City appearance enhancements
• Economic Growth and Development
• Downtown revitalization strategy
• One-stop shop development
FISCAL YEAR 2024 HIGHLIGHTS
In the current year, the City's economic outlook remained positive, as evidenced by local economic indicators such as increases in median home values, a steady flow of building permits, and steady sales tax revenue. Sales taxes, which represent the single largest source of revenue to the City's General Fund, exceeded $100 million for the third consecutive year. Growth in property tax, steady sales tax, and other revenue sources enabled the City to make several key infrastructure investments, such as multiple park and street improvements along with utility projects to enhance citizen and visitor mobility and provide increased system reliability for the City's utility customers.
Financial Highlights
At June 30, 2024, the City's assets exceeded its liabilities by $557.11 million (net position). • The City's total net position increased by $35.48 million from the prior year. Governmental activities net position increased $30.75 million, while the net position of the City's Business-Type activities increased $4.73 million.
• Property tax revenues increased 5.6% and sales tax revenues decreased 0.9% from the prior year,
6 CITY-WIDE FINANCES
City-Wide Financial Overview
The citywide financial statements are designed to provide readers with a broad overview of the finances of the City in a manner similar to a private-sector business. Activity is separated into two categories: (1) activities that are principally supported by taxes and intergovernmental revenues (governmental activities) and (2) activities that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The total of both categories is referred to as the primary goverment.
Statement of Net Position
The Statement of Net Position presents information about the City's assets, liabilities, deferred outflows (e.g., prepaid items), and deferred inflows (e.g., advance collections). The City's net financial position is the balance of all assets and deferred outflows less all liabilities and deferred inflows. Over time, increases or decreases in the City's net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. For the fiscal year ended June 30, 2024, the City's net position improved by $35.48 million.
See below for a history of the total primary government net position for the last five fiscal years. A summary Statement of Net Position for the last three fiscal years is shown on the following page.
City-Wide Net Position - Last 5 Fiscal Years
$600,000,000
$557,109,269
$550,000,000 $521,632,277
$486,959,408
$500,000,000
$450,000,000 $394,309,631
$400,000,000
$357,652,567
$350,000,000
$300,000,000
$250,000,000
2020 2021 2022 2023 2024
*As restated
7 CITY-WIDE FINANCES
Statement of Net Position
Governmental Activities
2023 2022 2024 Business- T02s Activitios 2022 2024 Total Primary Government 2022 2024
City Assets (What We Own)
Current and other assets 480,837,287 $ 442,217,523 $ 401,777,502 $ 234,720,127 S 240,703,942 $ 235,535,555 $ 715,557,414 S 682,921,465 S 637,313,057 Capital assets, net 298.063.862 288,357,656 332,367.618 310.275.958 308,633.676 630.431,480 598.633.614 590.646,190 Total assets $ 778,901,149 $ 730,575,179 $ 383,790,016 567,087,745 $ 550,979,900 544,169,231 S 1,345,988,894 $ 1,281,555,079 $ 1,227,959,247 Deferred outfles of recources 103,070,052 112,294.022 19.918.263 23.449.281 8.955,165 122.988.315 135.743,303 51.782.834 42,827,669
Total assets and deferred
outflows 881,971.201 $ 842,869,201 726,617,685 s 587,006,008 $574,429,181 553,124,396 $ 1,468,977,209 S 1,417,298,382 $ 1,279,742,081 City Liabilities (What We Owe)
Current liabilities 127,915,416 138,406,698 131,036,633 30,411,382 7,114,088 17,567,029 159,326,798 145,520,786 148.603,662 Long-term liabilities 540.836.547 516,975,078 34,43303 12549.134 207263089 186255986 5 394215,077 S 721.2.005 512070,87 Total liabilities 668,751,963$ 655,381,776 S
6,411,705 11,429,292 99,515,574 11,213,158 14,492,018 32,592,810 17.624,863 25.921,310 132.108.384 Total liabilities and deferred
inflows 573,935,877 $ 236,704,272 $ 228,855,037 $ 218,846,796 911,867,940 $ 95,666,105 $ 792,782,673 City net position 152,681,808 $ 350,301,736 $ 345,574,144 $ 334,277,600 $ 557,109,269 S 521,632,277 $ 486,959,408 Definitions
• Current assets - liquid assets of the City such as cash or receivables; assets that can be liquidated within a short period of time, usually one year
• Capital assets - non-current assets that are used in the operation of the City and have an initial useful life greater than one year. Examples of capital assets are buildings, equipment, vehicles, infrastructure, water/sewer mains, and distribution and collection systems.
Deferred inflows/deferred outflows of resources - like revenues and expenses, deferrals represent flows of resources into and out of a government during the fiscal year. However, unlike revenues and expenses-which are inflows and outflows of resources related to the period in which they occur-deferrals are related to future periods.
• Current liabilities - City debt and obligations that are due within a year such as accounts payable, payroll taxes, interest payable, and deposits.
• Long-term liabilities - debt and obligations that are due in more than one year, such as bonds payable, capital leases, and pension and other post-employment liabilities. • Net position - the excess of total assets and deferred outflows compared to total liabilities and deferred inflows.
8 CITY-WIDE FINANCES
Statement of Activities
The Statement of Activities presents information about the City's revenues and expenses in a format that reflects the financial burden for each of the City's functions. All changes are reported as soon as the underlying event for 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 not result in cash flows until future fiscal periods (e.g., uncollected taxes). In addition to displaying the governmental and business-type activities, the Statement of Activities further organizes activity into the following functions:
General Government
Expenses for offices related to the administration of the City, including the City Council, City Manager, City Secretary, Finance, Human Resources, and Information Technology
Public Safety
• Costs associated with providing police, fire, and animal control services to residents and visitors Public Works
• Expenses associated with the design, construction, maintenance, and operation of streets and other infrastructure within the City Culture and Recreation
• Expenses to enrich the quality of life in the City through recreational and cultural activities Community Development
• Expenses related to the management of residential and commercial development in the City Community Service
• Expenses to support the educational and informational needs of the community Business-Type Activities
• Activity related to providing Water, Sewer, Sewer Treatment, and Integrated Waste servicesto the residents of the City within the City's service territories.
Interest on Long-Term Debt
• Expenses for the interest expenses associated with debt financing Revenues on the Statement of Activities are reported as either Program Revenues or General Revenues in the following categories:
Program Revenues
• Charges for Services - Revenues that arise from charges to customers, applicants, or others who purchase, use, or directly benefit from goods, services, or privileges provided. • Grants and Contributions (Operating or Capital) - Revenues arising from mandatory and non- exchange transactions with other governments, organizations, or individuals that are restricted for use in a particular program.
General Revenues
• Taxes - Categories for each major tax revenue source, sales taxes, property taxes, and the City's
7.75% utility usage tax on telephone, electricity, gas, water, and cable. • Investment Earnings - Revenues arising from the City's investment portfolio. • Miscellaneous - All other various minor revenue sources, such as donations, rebates, and commissions.
9 CITY-WIDE FINANCES
Statement of Activities
Governmental Activities 2024 Business- Type Activities 2024 otal Primary Governmont 2024 2023 2022 2022
Revenues
Program revenues:
Charges for services $ 34,661,344 $ 35,137,585 $ 30,800,968 $ 92,381,163 $ 88,565,656 S 82,781,091 127.042,507 $ 123.703,241 $ 113.582,059 Operating grants and
contributions 53,995,221 46.587.633 45,290,554 5,566,773 1,684,006 1,910,435 59,561,994 48,271,639 47,200,989 Capital grants and
contributions 13,710 719,033 7,855,349 8,613,085 8.071,944 7,869,059 8,613,085 8,790,977 General revenues:
Property taxes 25,438,723 24,088,301 23,099,229 25,438,723 24,088,301 23,099,229 Sales taxes 108,683,581 109,693,092 108,554,989 108,683,581 109,693,092 108,554,989 Franchise taxes 15,340,794 13,702,461 12,698,934 : 15,340,794 13,702,461 12,698,934 Utility user taxes 28,671,310 31,208,992 26,272,812 28,671,310 31,208,992 26.272,812 Transient occupancy
taxes 326,4 5,781,762 : 5,826,49: 5,491,564 5,781,76
Other taxes 234,30 2.101-4 12,924,758 : : 3,234,34 2, 105,74€ 12.924,75 Investment earnings
16,523,617 6,118,231 (4,345,864) 4,431,653 2,459,693 20,955,270 8,577,924 (6,482,388) I on revenues $ 29958027 $ 27233,948 $ 26271832 S 12974528 $ 103292279 $ 0232,528 $ 6.331,083 4,368,187 3,044,210 Total revenues 408,955,155 $ 379,824,232 $ 355,468,331
Expenses
General government 31,816,382 46,596,788 25,398,572 : 31,816,388 46,596,788 25,398,572 Public safety 35,754,11 113,334,846 74,651,339 135,754,111 113.334,846 74.651,339 Public works 53,457,697 53,632,428 49,757,465 53,457,697 53,632,428 49,757,465 Culture and recreation 4,769,490 3,901,250 3,671,063 4,769,490 3,901,250 3,671,063 Commuity development 14,025,508 17,593,245 17,254,790 14,025,508 17.593,245 17,254,790 Commuity service 23.880,014 16,582,420 14,646,563 23,880,014 16,582,420 14,646,563 Water 55.780.411 48,552,751 39,503,371 55,780,411 48,552,751 39,503,371 Sewer 51,526,396 42,816,508 28,044,105 51,526,396 42,816,508 28.044,105 Sewer Collection 7,888,065 7,888,065
Integrated Waste 940,129 624,476 676,615 940,129 624,476 676,615 erest on long-term de 1.528,019 1,516,651 1,544,198 5 108,246,936 $ 91993735 5 76.112156 7 373428069 $ 345169363 $ 263036,148 1.516,651 tal expens $ 265,231,227 $ 253,157,628 $ 186,923,990
Increase (decrease)
in net position $ 30,749,400 $ 23,376,325 $ 75,591,817 $ 4,727,592 $ 11,296,544 $ 16,840,368 S 35,476,992 $ 34,672,869 $ 92,432,185 Note: In the previous year, activity related to the former Sewer Collection fund was consolidated with the Sewer Treatment fund and presented as one integrated Sewer fund.
10 CITY-WIDE FINANCES
Revenues
The largest and most important recurring revenue sources for the City are charges for governmental and utility services, sales taxes, utility user taxes, and property taxes. These vital fees and taxes represent a relatively stable source of revenue for the City, which enables it to effectively manage and provide for critical public services. In the current year, City-wide revenues increased by $29.13 million from the prior due primarily to an additional $12.38 million in investment earnings and $11.29 in operating grants and contributions.
FY2024 REVENUE
Other Taxes &
General Revenues,
$51,687,981, 13%
Charges for Services
$127,042,507, 31%
Grantsand
Contributions,
$67,431,053, 16%
Utility User Taxes,
$28,671,310, 7%
Property Taxes, Sales Taxes
$25,438,723, 6% 108,683,581, 279
Revenue Category Amount
Government Services* $ 34,661,344
Water Service* $ 45,656,974
Sewer Service* $ 46,224,150
Integrated Waste Service* 500,039
Grants and Contributions 67,431,053
Property Taxes $ 25,438,723
Sales Taxes $ 108,683,581
Utility User Taxes $ 28,671,310
Other Taxes & General Revenues $ 51,687,981
Total Revenues $ 408,955,155
*Included in "Charges for Services" in the chart above
11 CITY-WIDE FINANCES
Expenses
Total City expenses increased from the prior year by $28.33 million, due mainly to an increase in public safety personnel, an increase in the Public Safety pension liability, and additional spending on community service programs. Additionally, there was a revision in the Water and Sewer fund capital asset categories causing an increase in depreciation expense. The tables below summarize the five- year expense history for the City's governmental and business-type activities, respectively.
Five-Year Expense History - Governmental Activities
$150,000,000
$125,000,000
$100,000,000
$75,000,000
$50,000,000
$25,000,000
$-
Public Safety Public Works Community Service Interest on Long-Term Debt • 2020 2021 2022 • 2023 •2024
Five-Year Expense History - Business-Type Activities
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
Water Sewer Sewer Collection Integrated Waste
• 2020 = 2021 • 2022 2023 2024
12 LONG-TERM ASSETS
Capital Assets
Capital assets, including the infrastructure of the City, are those assets that are used in the performance of the City's functions. 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 chart below reflects the Capital Assets, net of the corresponding depreciation recognized to reflect the "wear and tear" on the asset with use, for each category as of June 30, 2024.
CAPITAL ASSETS, NET OF DEPRECIATION
Building, Plant, &
Store Yards, Land &
$53,710,865, 9% Easements,
$127,606,721.
20%
Distribution and
Collection
Systems Assets, induting
138,552,175
22%
Equent and
$33,110,637,5%
Water Rights, Construction in
W92,599415, 8% Progress,
$94,989,771,
15%
Infrastructure
$129.761,896
21%
During the fiscal year ended June 30, 2024, major capital improvements included $12.23 million in ongoing construction projects for Infrastructure additions for streets, sidewalks, and water improvements/renovations. Additionally, the City purchased $1.57 million in various Machinery, vehicles, and equipment, and over $2.68 million in right to use leased assets. 13 LONG-TERM DEBT
Debt
Local governments issue debt (bonds) to pay for large, expensive, and long-lived capital projects, including roads and essential utility infrastructure. Without issuing debt, these important needs would be unmet. While local governments can sometimes pay for capital investments with current revenues, borrowing allows them to spread the costs across multiple generations due to their long-term benefit.
As of June 30, 2024, the City had outstanding debt totaling $93.54 million. Please note that the totals below do not include debt that is not a financial obligation of the City, such as the former Economic Development Agency debt. A graph of the total City outstanding debt for the last five fiscal years is shown below.
City-Wide Debt Outstanding
Last Five Fiscal Years
$120,000,000
$106,132,510
$103,149,719
$99,688,847
$100,000,000 $96,156,000
$93,537,000
$80,000,000
2020 2021 2022 2023 2024
The following table summarizes the City's outstanding debt by type, along with the average annual debt service payments (principal and interest) and final maturity.
Debt Issuance Type Principal Outstanding Avg. Annual Debt Final June 30, 2024 Payments Maturity
2016 Revenue Bonds Utility (Water) $42,125,000 $2,925,134 August 2046 2016 Revenue Bonds Utility (Sewer) $29,740,000 $1,922,530 August 2046 2020 Pension Obligation Bonds Governmental $19,750,000 $1,479,730 December 2046 Arden Guthrie Note Payable Governmental $1,922,000 $717,360 August 2026 CALIFO
CITY
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EDINDED TN I819
City of San Bernardino
290 North "D" Street
San Bernardino, CA 92401
SBCity.org