Attachment 1 City of San Bernardino ACFR for the Year Ended June 30, 2025

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

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

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

Table of Contents

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

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

Government-Wide Financial Statements:

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

Budgetary Information .................................................................................................................... 118 Budgetary Comparison Schedules:

General Fund ...................................................................................................................... 119 American Rescue Plan Act Special Revenue Fund ........................................................ 120 Federal and State Grants Special Revenue Fund ........................................................... 121 Schedule of Changes in the Net Pension Liability and Related Ratios .................................... 122 Schedule of the Successor Agency’s Proportionate Share
of the Net Pension Liability and Related Ratios ....................................................................... 126 City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

Table of Contents (Continued)

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

Schedule of Contributions – Pension ............................................................................................ 127 Schedule of Changes in Net OPEB Liability and Related Ratios ............................................. 130 Schedule of Contributions – OPEB .............................................................................................. 131 Combining Financial Statements and Schedules:

Combining Balance Sheet – Non-Major Governmental Funds ................................................ 134 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds ................................................................. 138 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Cable TV Special Revenue Fund ...................................................................................... 142 Asset Seizure Special Revenue Fund ............................................................................... 143 Low and Moderate Income Housing Special Revenue Fund ...................................... 144 Alternative Transportation Special Revenue Fund ........................................................ 145 RMRA Gas Tax Special Revenue Fund .......................................................................... 146 Special Gas Tax Special Revenue Fund ........................................................................... 147 Traffic Safety Special Revenue Fund ............................................................................... 148 Measure I Special Revenue Fund ..................................................................................... 149 Storm Drain Construction Capital Projects Fund ......................................................... 150 Special Assessments Capital Projects Fund .................................................................... 151 Cultural Development Construction Fee Capital Projects Fund................................. 152 Impact Fees Capital Projects Fund .................................................................................. 153 Combining Statement of Net Position – Internal Service Funds ............................................. 155 Combining Statement of Revenues, Expenses,
and Changes in Net Position – Internal Service Funds ........................................................... 156 Combining Statement of Cash Flows – Internal Service Funds ............................................... 157

STATISTICAL SECTION (Unaudited)

Description of Statistical Section Contents ................................................................................................ 159 Financial Trends Schedules
Net Position by Component .......................................................................................................... 160 Changes in Net Position .................................................................................................................. 162 Fund Balances of Governmental Funds ....................................................................................... 166 Changes in Fund Balances of Governmental Funds .................................................................. 168 Tax Revenues by Source – Governmental Funds ....................................................................... 170

City of San Bernardino
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

Table of Contents (Continued)

STATISTICAL SECTION (Unaudited) (Continued)
Revenue Capacity Schedules
Assessed Valuation and Estimated Actual Value of Property ................................................... 171 Taxable Sales by Category ............................................................................................................... 172 Principal Sales Tax Remitters ......................................................................................................... 174 Direct and Overlapping Property Tax Rates ................................................................................ 175 Principal Property Taxpayers .......................................................................................................... 176 Property Tax Levies and Collections ............................................................................................. 177 Top 10 Customers – Water and Sewer Treatment ...................................................................... 178 Connections and Revenues by User Type – Water ..................................................................... 179 Water Rate History – Minimum Monthly Charge ....................................................................... 180 Sewer Treatment Rate History ....................................................................................................... 181 Debt Capacity Schedules
Ratio of Outstanding Debt by Type .............................................................................................. 182 Ratio of General Bonded Debt Outstanding ............................................................................... 184 Schedule of Direct and Overlapping Bonded Debt .................................................................... 185 Legal Debt Margin ........................................................................................................................... 186 Debt Service Coverage .................................................................................................................... 188 Demographic and Economic Information
Demographic and Economic Statistics ......................................................................................... 189 Budgeted Full-Time and Part-Time Positions by Function ....................................................... 190 Operating Information
Capital Asset Statistics ..................................................................................................................... 191 Operating Indicators by Function ................................................................................................. 192

INTRODUCTORY SECTION

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

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

January 14, 2026

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, 202 5. This report is published in accordance with local ordinance and state law requirements that financial statements be presented in conformity with generally accepted accounting principles (GAAP) and audited in 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, LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance the City’s financial statements for the fiscal year ended June 30, 20 25 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, 2025, are fairly presented in conformity with GAAP.

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

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

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

The City of San Bernardino, incorporated as a Charter City in 1854, is located in Southern California, approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City has a land area of approximately 64 square miles and popula tion of over 2 24,000. The City is the County Seat of San Bernardino County, the largest county by land area in the nation. Along with adjacent Rive rside 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 E conomic Development Agency. Therefore, these entities are reported within the City’s financial statements. Additional information regarding these legally separate entities can be found in Note 1 in the notes to the financial statements.

The City’s budget, which is adopted annually, 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.

Section 3.05.010 of the City’s Municipal Code regarding budget transfers authorizes the following: (a) the Director of Finance & Management Services to approve budget transfers within a department’s personnel budget into their operating budget; (b) authorizes the Director of Finance & Management Services to approve department to department budget transfers; (c) establishes that budget transfers will 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iii
not increase or decrease a department’s approved budget, nor will it increase or decrease the approved fund budget without council approval; and (d) states that any cumulative amount of more than $5,000 transferred between departments in a 12-month period must be reported to the Mayor and City Council quarterly. The legal level of budgetary control is at the fund level.

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 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 2025. Job growth continues to grow in the region. The Inland Empire continues to see 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.

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 ai rport-owned fixed-base operator. The cargo airport continues to grow including airlines such as FedEx Express, UPS Airlines, Amazon Air and ABX Air. The airport is in the top 25 cargo airports in the United States.

The economy has remained steady in 2025. The growth in logistics, development of large -scale transportation, healthcare, and energy projects, and increases in tourism will be carried into 2026. This will cause demand for more labor as well as investment in capital equipment, software, and real estate. Some new businesses in the City include Our Brew (the first brewery in the City , Tesla Collision Automotive, and several restaurants on the 5
th Street corridor. Overall, the City has between 20,000 and 21,000 businesses in 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 sales tax collections was relatively flat , as with other citie s 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.

290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov iv
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 and 2025 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, new deliveries increased to the highest level since 2018 in the region.

While housing costs have increased over the last several years, San Bernardino County remains among the most affordable in California, with a median home price just above $500,000, however, it can vary depending on the neighborhood.

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. ii. Diversify 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. ii. 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.
i. Launch a multi -platform community engagement plan that prioritizes inclusivity and accessibility.
ii. Expand special events and library programs to increase citizen participation. 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov v

3. Improved Quality of Life
a. Reduce the burden of the unsheltered through engagement, collaboration, and partnerships with other entities.
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.
iii. 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 were introduced during a Special Workshop on June 30, 2023, and were designed to address operational capacity, community needs, and economic development while remaining aligned with the strat egic goals established under the 2021 –2025 Strategic Framework. These initiatives supported a coordinated approach to addressing service delivery demands, fiscal accountability, and community priorities.

During FY 2024/25, the City continued implementing initiatives aligned with these priorities.

Implementation activities included investment in workforce capacity and position control to support service delivery, alignment of operational structures with strategic objectiv es, continued development of long-range infrastructure and asset management planning, and enhancements to organizational service delivery practices.
290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org | @SBCityGov vi
The City also continued implementation of initiatives launched in FY 2023/24, including the development of the Economic Development Department, the establishment of a Legislative Advocacy function, expansion of homelessness response and housing support programs, and initiatives to improve city cleanliness and public space mainte nance. In addition, the City continued operational scaling associated with regional partnerships for Animal Services, which required additional investment in staffing, facilities, and service capacity consistent with adopted agreements and program needs.

Subsequent to the close of the fiscal year, on December 17, 2025, the Mayor and City Council conducted a Strategic Goal-Setting Retreat to review and update the strategic priorities originally adopted under the 2021–2025 Strategic Framework. This action re affirmed the City’s emphasis on operational capacity, financial sustainability, quality of life, and economic development while refining implementation priorities based on progress achieved through June 30, 2025.

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

The City’s General Fund Reserve Policy, adopted by the City Council on November 21, 2016, requires maintaining the General Fund Operating Reserve at 25% of the adopted budget for the fiscal year, consisting of an Emergency Reserve of 15% of the adopted budget and an Economic Contingency Reserve of 10% of the adopted budget.

As of June 30, 202 5, the City’s General Fund committed fund balance sits at $ 133.05 million or approximately 53% of the total General Fund expenditures.

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, 2024
Executive Director/CEO
viii
ix

Animal Services Community and
Economic Development
Finance

Human Resources Information
Technology
Parks and Recreation

Police Public Works Library
Citizens of San Bernardino

Helen Tran
Mayor

Theodore
Sanchez
Ward 1

Sandra Ibarra
Ward 2

Juan Figueroa
Ward 3

Kimberly
Knaus
Ward 5

Mario Flores
Ward 6

Treasure
Ortiz
Ward 7

Bill Gallardo

Interim
City Manager

Sonia R.

Carvalho
Appointed
City Attorney

Telicia Lopez
Interim City
Clerk

Fred Shorett
Ward 4

CITY OF SAN BERNARDINO, CALIFORNIA

CITY OFFICIALS
JUNE 30, 2025

LEGISLATIVE OFFICIALS

Helen Tran ..................................................................................................................................... Mayor* Theodore Sanchez ....................................................................... Member of City Council – Ward 1* Sandra Ibarra ................................................................................ Member of City Council – Ward 2* Juan Figueroa ................................................................................ Member of City Council – Ward 3* Fred Shorett .................................................................................. Member of City Council – Ward 4* Kimberly Knaus ........................................................................... Member of City Council – Ward 5* Mario Flores .................................................................................. Member of City Council – Ward 6* Treasure Ortiz .............................................................................. Member of City Council – Ward 7*

CHIEF ADMINISTRATIVE OFFICERS

Bill Gallardo ........................................................................................................... Interim City Manager Miguel J. Guerrero ..................... General Manager, San Bernardino Municipal Water Department

DEPARTMENT HEADS

Telicia Lopez ........................................................................................................... Interim 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 Vacant .......................................................................................... Director of Economic Development Andrea E. Russell .......................................... Director of Human Resources and Risk Management Rolland Kornblau ...................................................................... Director of Information Technology Vanessa Carder .................................................................... Acting Director of Parks and Recreation Darren Goodman ............................................................................................................ Chief of Police Edward Erjavek .............................................................................................................. Library Director

*Elected Officials
**Appointed by City Council

FINANCIAL SECTION

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

1 Independent Auditor’s Report

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

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund info rmation of the City of San Bernardino (the City), as of and for the year ended June 30, 2025, and the related not es to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental acti vities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principl es generally accepted in the United States of America.

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

Opinion Unit Assets Net Expenses
Position

Business-type Activities 99.03% 99.46% 99.14%

Major Enterprise Fund:

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

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

2 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 Audito r’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 statem ents during the year ended June 30, 2025, the City adopted new accounting guidance under Governm ental Accounting St andards Board (GASB) Statement No. 101, Compensated Absences and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to these matters.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fa ir presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementati on, 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 statem ents, management is required to evaluate whether there are conditions or events, cons idered in the aggregate, t hat raise substantial doubt about City’s ability to continue as a going concern for tw elve months beyond the financia l 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. Reasonab le assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduct ed 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 fr om fraud is higher than for one resulting from error, as fraud may involve collusion, fo rgery, intentional omissions, misr epresentations, or the override of internal control. Misstatements are considered ma terial if there is a s ubstantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures res ponsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

3  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum stances, 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 account ing policies used and the reasonableness of significant accounting estimates made by m anagement, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there ar e conditions or events, considered in the aggregate, that raise substantial doubt about 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 a ccepted in the United States of Am erica require that the required supplementary information, such as the management’s discussion and analysis and those schedules as listed in the table of c ontents be presented to supplement the basic financial statements. Such information is the responsibilit y of management and, although not a part of the basic financial statements, is required by the Go vernmental Accounting Standards Board who considers it to be an essential part of financial reporti ng for placing the basic financ ial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with G AAS, 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 proc edures 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 form ing opinions on the financ ial statements that collectively comprise the City’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 statement s. Such information is the responsibility of management and was derived from and relates directly to the underlyi ng accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statement s themselves, and other additional procedures in accordance with GAAS. In our opi nion, the accompanying s upplementary 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 t he annual comprehensive financial report. The other information comprises the introduc tory and statistical sections but does not include the basic financial statements and our auditor's repor t thereon. Our opinions on the basic financial statements do not cover the other information, and we do not expr ess an opinion or any form of assurance thereon.

4 In connection with our audit of t he basic financial statement s, our responsibility is to read the other information and consider whether a material inco nsistency 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 January 14, 2026 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisi ons of laws, regulations, contra cts, 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.

San Bernardino, CA
January 14, 2026

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 5 -
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, 20 25.

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.

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

The Statement of Net Position presents information on all of the City ’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the se totals reported as net position.

Over time, changes in the n et position may serve as a useful indicator of whether the financial posit ion of the City is improving or deteriorating.

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

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

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 6 -
City include general governmen t, public safety, public works, culture and recreation, community development, and community services.

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

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

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

Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expen ditures, and C hanges 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.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

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Proprietary Funds
The City maintains various enterprise funds to report the business-type activities of the Water Fund, Sewer Fund, and Integrated Waste Fund. The City also maintains various internal service funds, which are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its self -insurance activities, vehicle fleet operations, and information technology systems.

Because these services benefit governmental functions, they have been included within governmental activities in the government-wide financial statements.

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

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

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

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

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

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

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Financial Highlights

 At June 30, 2025, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $611.36 million (net position). Of this amount, $(177.57) million is unrestricted.

 City total net position increased $57.13 million during the fiscal year. Governmental activities net position increased $28.60 million compared to prior fiscal year’s increase of $30.75 million. Business-type activities net position increased $28.53 million compared to prior fiscal year’s increase of $4.73 million.

 As of June 30, 2025, the City’s governmental funds reported a combined ending fund balance of $330.60 million, an increase of $ 4.27 million compared to the prior year. The ending fund balance is primarily identified as: $52.02 million (16 percent) Nonspendable, $141.82 million (43 percent) Restricted, $133.05 (40 percent) Committed, and $3.71 million (1 percent) Assigned.

 As of June 30, 2025, the City’s proprietary funds (excluding internal service funds) reported a combined ending fund balance of $377.98 million. Of this amount, $52.01 million is unrestricted.

 At June 30, 202 5, the total committed fund balance for the General Fund was $ 133.05 million or approximately 53 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.

Effective July 1, 2024, the City adopted provisions of GASB Statement No. 101, Compensated Absences. As a result of this change in accounting principle, it was not appropriate for the City to restate prior-period information for earlier periods than those presented in the basic financial statements. Therefore, information for the year ended June 30, 2024 was not restated. See Notes 1 and 23 to the financial statements for further information on the change in accounting principle.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 9 -

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, 2025, assets and deferred outflows exceeded liabilities and deferred inflows by $611.36 million.

Approximately $640.70 million of the City’s net position reflects its net investment in capital assets ( e.g., land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress; less any related outstanding debt used to acquire those assets). The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

A portion of the City’s net position, $148.23 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 $( 177.57) 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.

2025 2024 2025 2024 2025 2024
Assets
Current and other assets 484,666,110$ 480,837,287$ 194,280,006$ 234,720,127$ 678,946,116$ 715,557,414$ Capital Assets, net 327,993,236 298,063,862 393,273,996 332,367,618 721,267,232 630,431,480 Total Assets 812,659,346 778,901,149 587,554,002 567,087,745 1,400,213,348 1,345,988,894 Deferred Outflows of Resources
Pension related items 75,723,058 103,070,052 12,857,611 16,777,336 88,580,669 119,847,388 OPEB related items - - 4,089,334 3,140,927 4,089,334 3,140,927 Total Deferred Outflows of
Resources 75,723,058 103,070,052 16,946,945 19,918,263 92,670,003 122,988,315 Liabilities
Other liabilities 115,375,971 127,892,944 27,855,158 30,615,424 143,231,129 158,508,368 Long-term liabilities 535,456,804 540,859,019 188,709,169 194,875,690 724,165,973 735,734,709 Total Liabilities 650,832,775 668,751,963 216,564,327 225,491,114 867,397,102 894,243,077 Deferred Inflows of Resources
Pension related items - 1,627,214 - 79,454 - 1,706,668 OPEB related items - - 6,945,696 7,857,828 6,945,696 7,857,828 Lease related items 2,638,148 3,182,545 3,011,630 3,275,876 5,649,778 6,458,421 Deferred charges on refunding 1,530,748 1,601,946 - - 1,530,748 1,601,946 Total Deferred Inflows of
Resources 4,168,896 6,411,705 9,957,326 11,213,158 14,126,222 17,624,863 Net Position
Net investment in capital assets 321,145,935 291,299,450 319,558,690 275,842,317 640,704,625 567,141,767 Restricted 141,821,013 125,500,977 6,408,725 4,566,085 148,229,738 130,067,062 Unrestricted (Deficit) (229,586,215) (209,992,894) 52,011,879 69,893,334 (177,574,336) (140,099,560) Total Net Position 233,380,733$ 206,807,533$ 377,979,294$ 350,301,736$ 611,360,027$ 557,109,269$ Governmental Business-Type Total
Activities Activities Primary Government
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

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During the fiscal year ended June 30, 202 5, the net position of the City in creased by $57.13 million to $611.36 million, as summarized in the following condensed statement of activities.

Changes in Net Position – Governmental Activities
Revenues related to the City’s Governmental activities totaled $359.86 million for the fiscal year ended June 30, 2025, an increase of $63.88 million, or 22 percent, from the prior year. The primary cause for the overall increase was:

 Operating grants and contributions increased $ 67.48 million, or 125 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.

2025 2024 2025 2024 2025 2024
Revenues
Program Revenues:

Charges for services 28,617,365$ 34,661,344$ 95,174,732$ 92,381,163$ 123,792,097$ 127,042,507$ Operating grants and contributions 121,477,730 53,995,221 9,106,142 5,566,773 130,583,872 59,561,994 Capital grants and contributions - 13,710 11,924,034 7,855,349 11,924,034 7,869,059 General Revenues:

Property taxes 28,841,997 25,438,723 - - 28,841,997 25,438,723 Sales taxes 105,814,604 108,683,581 - - 105,814,604 108,683,581 Franchise taxes 14,730,633 15,340,794 - - 14,730,633 15,340,794 Utility user taxes 29,146,952 28,671,310 - - 29,146,952 28,671,310 Transient occupancy taxes 5,261,841 5,826,493 - - 5,261,841 5,826,493 Cannabis taxes 3,137,504 3,234,341 - - 3,137,504 3,234,341 Investment earnings 18,891,018 16,523,617 4,199,976 4,431,653 23,090,994 20,955,270 Other revenues 3,943,983 3,591,493 4,960,634 2,739,590 8,904,617 6,331,083 Total Revenues 359,863,627 295,980,627 125,365,518 112,974,528 485,229,145 408,955,155 Expenses
General government 43,986,429 31,816,388 - - 43,986,429 31,816,388 Public safety 140,835,321 135,754,111 - - 140,835,321 135,754,111 Public works 71,679,458 53,457,697 - - 71,679,458 53,457,697 Culture and recreation 5,172,671 4,769,490 - - 5,172,671 4,769,490 Community development 49,869,507 14,025,508 - - 49,869,507 14,025,508 Community service 18,141,550 23,880,014 - - 18,141,550 23,880,014 Interest on long-term debt 1,583,337 1,528,019 - - 1,583,337 1,528,019 Water - - 50,596,374 55,780,411 50,596,374 55,780,411 Sewer - - 45,343,082 51,526,396 45,343,082 51,526,396 Integrated Waste - - 892,148 940,129 892,148 940,129 Total Expenditures 331,268,273 265,231,227 96,831,604 108,246,936 428,099,877 373,478,163 Excess (deficiency) of Revenues over
(under) expenditures before extraordinary
items
28,595,354 30,749,400 28,533,914 4,727,592 57,129,268 35,476,992 Change in Net Position 28,595,354 30,749,400 28,533,914 4,727,592 57,129,268 35,476,992 Net Position - beginning 206,807,533 176,058,133 350,301,736 345,574,144 557,109,269 521,632,277 Restatement (2,022,154) - (856,356) - (2,878,510) - Net Position - ending 233,380,733$ 206,807,533$ 377,979,294$ 350,301,736$ 611,360,027$ 557,109,269$ Business-Type
Activities Primary Government
Governmental
Activities
Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 11 -

Expenses related to the City’s Governmental activities totaled $331.27 million for the fiscal year ended June 30, 2025, an increase of $66.04 million, or 25 percent, from the prior year. The primary causes for the overall increase were:

 General Government expenses increased $12.17 million, or 38 percent, from the prior year due primarily to an increase in the City’s general claims liability as a result of the settlement of outstanding claims and an increase in new claims filed during the fiscal year.

 Expenses related to public works increased $18.22 million, or 34 percent, from the prior year primarily due to standard project life cycle. In the prior year, many CIP projects were in early planning and design stages with comparatively low spending. In the current year, these projects moved into construction, where costs accelerate due to contractor activity, materials, and related construction expenses.

 Expenses related to community development increased $35.84 million, or 256 percent, primarily due to expenditures related to Homekey 3.0 grant funding for the development of the San Bernardino Community Wellness Center.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

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

Changes in Net Position – Business -Type Activ ities
Revenues related to the City’s Business-Type activities totaled $125.37 million for the fiscal year ended June 30, 2025, an increase of $12.39 million, or 11 percent, from the prior year, primarily due to:

 Charges for services, which increased $ 2.79 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, 2024.

 Operating and capital grants and contributions, which increased $ 3.54 million and $4.07 million, respectively, from the prior year due to grant receipts from FEMA and other state grants for various projects.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 13 -

 Expenses related to the City’s Business- Type activities totaled $ 96.83 million for the fiscal year ended June 30, 2025, a decrease of $11.42 million, or 11 percent, from the prior year. The primary driver of the overall decrease was due to decreased depreciation expense as well as reduced administration and overhead. The Water fund’s claims liabilities significantly decreased from the prior year and the offset to the entry is grouped in General, administration and overhead.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 14 -
The following chart depicts Business-Type activity program revenues relative to program expenses:

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, 20 25, the City’s governmental funds reported total combined ending fund balances of $ 330.60 million, an increase of $4.27 million from the prior year. Approximately 4 0 percent of the City’s governmental funds’ fund balances, or $133.05 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, $ 197.55 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, 20 25, committed fund balance of the General Fund was $133.05 million, while total fund balance was $178.52 million. As a measure of the G eneral Fund's liquidity, it is useful to compare committed and assigned fund balance to total fund expenditures.

Committed and assigned fund balance represents 55 percent of the total general fund expenditures. The City Council has designated all the committed fund balances for specified purposes.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 15 -
The fund balance of the General Fund de creased by $24.41 million during the current fiscal year, primarily due to the flat performance of tax revenue s, due to the volatility of the economy and overall increase in operation expenditures.

General Fund revenues for the fiscal year ended June 30, 20 25, decreased by $2.97 million, or approximately 1 percent, over the prior year. The overall decrease was due to the following factors:

 Taxes decreased by $ 1.76 million from the prior year, largely due to sales tax performance remaining relatively flat.

 Revenues from license and permits decreased by $ 1.65 million from the prior year, due to reduced plan check fees and subdivision filing fees resulting from reduced construction activity and slower permits approvals compared to the prior year.

2025 2024
Revenues
Taxes 184,085,968$ 185,845,486$
Licenses and permits 14,695,155 16,348,896
Charges for services 6,165,730 6,888,653
Use of money and property 8,276,365 7,677,309 Intergovernmental 7,329,446 7,210,335
Other 7,156,393 6,705,990
Total Revenues 227,709,057 230,676,669
Expenditures
Current:

General government 41,118,065 31,664,321
Public safety 127,726,279 113,912,705
Public works 39,689,044 31,903,357
Culture and recreation 4,371,357 4,285,696
Community development 11,717,874 9,156,040
Community service 23,380,407 11,105,561
Debt Service:

Principal 715,819 681,604
Interest and fiscal charges 1,424,879 1,356,880 Total Expenditures 250,143,724 204,066,164
Excess (Deficiency) of Revenues Over
(Under) Expenditures (22,434,667) 26,610,505
Inception of lease liability 77,244 2,966,323 Net transfers (2,277,278) (114,321)
Sale of capital assets 224,913 500
Net Change in Fund Balances (24,409,788)$ 29,463,007$ City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 16 -
General Fund expenditures for the fiscal year ended June 30, 202 5, increased by $46.08 million, or 23 percent, over the prior year. The overall increase was due to the following factors:

 General Government expenditures in creased $ 9.45 million, or 30 percent from the prior year due primarily to an increase in the City’s general claims liability as a result of increased claims filed against the City during the fiscal year.

 Public safety expenditures increased $ 13.81 million, or 12 percent from the prior year as a result of increased personnel and pension costs.

 Public works expenditures increased $ 7.79 million, or 24 percent from the prior year as a result of an increase in contracted services for street lighting maintenance and street segment repairs.

 Community service expenditures increased $1 2.27 million, or 111 percent from the prior year due to increased activity in the expansion and remodeling of the animal shelter.

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 $2.63 million and the expenditure budget increased by $54.12 million. Major expenditure budget adjustments included:
$13.06 million in operating carryovers, $ 30.15 million in CIP carryovers, $1.35 million for additional animal services enhancements related to the regional partnership , $2.65 million for street segment repairs, and $6. 91 million for other various city-wide projects related to CIP and Homelessness initiatives a pproved 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.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 17 -

Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Taxes 196,873,162$ 196,873,162$ 184,085,968$ (12,787,194)$ Licenses and permits 17,195,440 17,195,440 14,695,155 (2,500,285) Fines and forfeitures 1,627,187 1,627,187 1,300,089 (327,098) Use of money and property 2,244,000 2,244,000 8,276,365 6,032,365 Lease revenue 1,392,083 1,392,083 1,073,573 (318,510) Intergovernmental 4,429,623 6,971,946 7,329,446 357,500 Charges for services 11,418,591 11,418,591 6,165,730 (5,252,861) Other revenues 4,253,173 4,343,751 4,782,731 438,980 Total revenues 239,433,259 242,066,160 227,709,057 (14,357,103) EXPENDITURES:

Current:

General government
Mayor 298,025 318,721 312,597 6,124 Common council 1,156,448 1,156,448 1,144,563 11,885 City clerk 1,942,869 1,922,173 1,610,719 311,454 City attorney 5,181,587 5,932,316 5,821,618 110,698 City administrator 6,325,253 4,262,005 3,830,220 431,785 Personnel 2,784,522 3,198,411 2,579,595 618,816 Finance 6,612,496 6,738,680 5,316,078 1,422,602 Nondepartmental 7,139,348 7,399,621 20,502,675 (13,103,054) Public safety
Police 132,040,580 136,187,713 127,726,279 8,461,434 Public works 32,498,402 63,407,486 39,689,044 23,718,442 Culture and recreation
Park, recreation and community services 4,972,739 5,357,857 4,371,357 986,500 Community development 12,588,780 21,394,887 11,717,874 9,677,013 Community service
Animal services 10,341,916 15,341,416 10,191,061 5,150,355 Library, Other services 14,103,386 19,483,937 13,189,346 6,294,591 Debt service:

Principal 689,000 689,000 715,819 (26,819) Interest and fiscal charges 1,423,050 1,423,050 1,424,879 (1,829) Total expenditures 240,098,401 294,213,721 250,143,724 44,069,997

REVENUES OVER
(UNDER) EXPENDITURES (665,142) (52,147,561) (22,434,667) 29,712,894

OTHER FINANCING SOURCES (USES)
Inception of lease liability - - 77,244 77,244 Proceeds from sale of capital assets - - 224,913 224,913 Net Transfers (150,000) (2,281,625) (2,277,278) 4,347 Total other financing sources (uses) (150,000) (2,281,625) (1,975,121) 306,504 CHANGE IN FUND BALANCE (815,142)$ (54,429,186)$ (24,409,788) 30,019,398$ Fund Balance:

Beginning of year 202,925,562
End of year 178,515,774$
Budgeted Amounts
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

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Revenues, including other financing sources, were $ 14.05 million lower than budgetary estimates as a result of the following:

 Taxes were $12.79 million lower than budget due to sales and use tax, utility user tax, and transient occupancy tax coming in below projections.

 License and permit revenues were $2.50 million lower than budget due to a slowdown in development and construction within the city.

Expenditures, including transfers out, were $ 44.07 million lower than budgetary estimates as a result of the following:

 Nondepartmental expenditures within general government were $13.10 million higher than budget, primarily due to an increase in the City’s general claims liability as a result of increased claims filed against the City during the fiscal year.

 Public safety expenditures were $8.46 million less than budget , a variance of 6 percent, as a result of vehicles and other equipment that was unavailable due to supply chain shortages and other relatively small operational and salary savings.

 Public work s expenditures were $23.72 million less than budget, a variance of 37 percent, due to personnel savings from vacant positions, operations and maintenance savings, and also from carry-over amounts budgeted for capital projects and equipment that went unspent in the current year.

 Community development was $9.68 million less than budget, a variance of 45 percent, primarily due to salary savings from high-level vacancies.

 Community services, which includes Animal S ervices, Library, the violence intervention program, and others were a total of $11.44 million less than budgeted. Animal services variance was principally due to logistical challenges and slower than anticipated delivery of the modular units, the budget for which was rolled over into the next fiscal year. Variances in the Library budget and other services were due primarily to personnel savings from vacant positions as well as savings from professional and contractual services.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 19 -
Other Major Governmental Fund Financial Highlights
The American Rescue Plan Act Fund is used to account for the various projects and expenditures associated with the American Rescue Plan Act, which was passed by the 117 th United States Congress and signed into law on March 11, 2021. Current year revenues and other financing sources totaled $ 41.93 million and current year expenditures totaled $ 39.21 million. At June 30, 2025 , the fund balance was $ 5.11 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 $53.77 million and current year expenditures totaled $47.13 million, resulting in an increase in fund balance of $6.64 million for the current year. As of June 30, 2025, the fund balance was $26.71 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, 20 25, the City ’s business-type funds reported total combined ending fund balances of $ 377.98 million, an increase of $ 28.53 million from the prior year. Approximately 85 percent of the City ’s proprietary funds’ fund balances, or $319.56 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, 20 25, the net position totaled $ 212.88 million, up from $ 190.56 million in the prior year. This is due to capital grant revenues increasing from the prior year, largely due to FEMA grant monies and other state grants being used for projects as intended. Investment income decreas ed due to poor market performance compared to the prior year. Water operating revenues also reflect a modest increase due to a rate increase effective July 1, 202 4. Total operating expenses decreased 9.5% or $5.1 million. Significant variances were due to decreased depreciation expense as well as reduced administration and overhead. The Water fund claims liability significantly decreased from the prior year and the offset to the entry is grouped in a dmin and overhead.

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 $ 5.69 million to $ 163.05 million as of June 30, 202 5. Total revenues for the Sewer Utility declined by 3.8%, or $1.8 million, compared to the previous year. This decrease was mainly because the East Valley Water District began operating its own treatment plant and now processes its own wastewater, whereas pre viously the City handled this treatment. Total operating expenses decreased

12.2% or $6.1 million. Significant variances were due to decreased depreciation expense as well as reduced administration and overhead. The Sewer fund claims liability significantly decreased from the prior year and the offset to the entry is grouped in admin and overhead.

City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 20 -
Capital Assets
Capital assets, including the infrastructure of the City, are those assets that are used in the performance of the City’s functions. A s of June 30, 2025 , capital assets totaled $ 327.99 million for governmental activities and $393.27 million for business-type activities, net of accumulated depreciation on capital assets, which is recognized in the Government -wide Financial Statements. The City’s capital assets include land and easements, infrastructure, buildings and improvements, machinery, vehicles, and equipment, water rights, wells, and pumping equipment, distribution and collection systems, and construction in progress. The net increase over the prior fiscal year in the City’s capital assets was $90.84 million, or 14 percent.

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

 Machinery, vehicles, and equipment additions totaled $2.23 million.

 Completed CIP projects for Infrastructure in the City’s Governmental Activities totaled $15.31 million, and ongoing construction projects increased by more than $21.36 million.

 In the City’s Business- Type Activities, the Water Fund and Sewer Fund capitalized $6.72 million and $10.99 million in capital projects, respectively, including the Reservoir Seismic upgrade project, SBMWD Administration Facility, the Mountain Pressure Zone Main Replacement project, the Advanced Metering Infrastructure project, and the Muscoy Service Line Replacement project.

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

2025 2024 2025 2024 2025 2024
Land and easements 106,783,846$ 104,133,846$ 23,441,376$ 23,472,875$ 130,225,222$ 127,606,721$ Construction in progress 59,202,286 37,843,453 108,928,587 57,146,318 168,130,873 94,989,771 Infrastructure 135,301,546 129,761,896 - - 135,301,546 129,761,896 Buildings and improvements 13,395,130 12,856,815 - - 13,395,130 12,856,815 Machinery, vehicles, and equipment 7,744,003 8,112,577 - - 7,744,003 8,112,577 Purchased software - - - - - - Right to use leased assets 5,263,524 5,054,777 - 11,941 5,263,524 5,066,718 Right to use Subscription IT assets 302,901 300,498 - 50,811 302,901 351,309 Water rights, wells, and pumping - - 49,956,140 52,699,415 49,956,140 52,699,415 Distribution and collection systems - - 141,883,132 138,552,175 141,883,132 138,552,175 Building, plant, and store yards - - 57,753,693 53,710,865 57,753,693 53,710,865 Other capital assets - - 11,311,068 6,723,218 11,311,068 6,723,218 Total Capital Assets, net 327,993,236$ 298,063,862$ 393,273,996$ 332,367,618$ 721,267,232$ 630,431,480$ Activities Activities Primary Government
Governmental Business-Type Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 21 -
Long-Term Liabilities
As of June 30, 2025, the City had $100.17 million in long-term debt outstanding, a decrease of $2.59 million from the prior year, attributable primarily to the City’s annual debt service payments offset by the execution of new vehicle leases during the year.

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

2025 2024 2025 2024 2025 2024
Notes payable 1,268,000$ 1,922,000$ -$ -$ 1,268,000$ 1,922,000$ Bonds payable - - 74,358,414 76,422,456 74,358,414 76,422,456 Pension obligation bonds 19,231,860 19,244,388 - - 19,231,860 19,244,388 Lease liabilities 5,098,277 4,895,228 - 11,994 5,098,277 4,907,222 Subscription liabilities 218,276 267,238 - - 218,276 267,238 Total long term debt 25,816,413$ 26,328,854$ 74,358,414$ 76,434,450$ 100,174,827$ 102,763,304$ Activities Activities Primary Government
Governmental Business-Type Total
City of San Bernardino
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

- 22 -
Economic Factors and Next Year’s Budget and Rates
Following several years of post -pandemic recovery and revenue growth, the City is now operating in a more volatile economic environment marked by declining GDP, persistent inflation, and softening consumer activity.

These emerging conditions have tempered the upward revenue trends experienced in recent years and require a more conservative approach to revenue forecasting and expenditure planning for the coming fiscal year.

The City continues to benefit for a revenue foundation, primarily supported by Measure S, Sales and Use Tax, Utility User Tax, and Property Tax in Lieu of VLF. Recent shifts in consumer spending and investment markets have resulted in slower projected grow th in several major revenue categories and as a result, the FY 2025/26 budget reflects refined projections that balance modest revenue gains as well as some anticipated declines in categories showing much greater volatility.

In response to these changing economic conditions, the City has implemented targeted expenditure controls within the budget, including departmental reductions and a hiring deferral for non- safety positions. These measures, combined with strategic use of one-time fund balance strictly for capital and fleet investments, allowed the City to maintain structural balance without relying on one-time resources to fund ongoing operations. Rising labor, benefit, and pension costs continue to place pressure on the ope rating budget, reinforcing the need for prudent and disciplined financial management.

The City’s long -term fiscal position remains stable, supported by strong reserves and a significant Capital Improvement Program reserve that enables continued investment in critical infrastructure. The FY 2025/26 Adopted Budget includes substantial allocations for streets, public facilities, parks, telecommunications upgrades, fleet replacements, and safety-related equipment. Although inflation, supply-chain constraints, and a backlog of deferred maintenance pose challenges, the City’s multi -year capital pl anning approach provides a pathway to address these needs without incurring new debt.

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 Standar d and Poor’s, increase the City’s ratings to “A+,” 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.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

City of San Bernardino
Statement of Net Position
June 30, 2025
______________________________________________________________________________ - 23 -
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
Activities Activities Total
Cash and investments 366,219,071$ 107,437,637$ 473,656,708$ Cash and investments with fiscal agents 36,678 - 36,678 Receivables:

Accounts, Net 14,089,113 12,458,627 26,547,740 Interest 1,083,689 817,178 1,900,867 Leases - due within one year 535,427 211,681 747,108 Due from other governments 27,364,680 2,658,491 30,023,171 Internal balances 3,612,778 (3,612,778) - Inventory 163,198 1,602,680 1,765,878 Prepaid items 687,822 693,339 1,381,161 Noncurrent assets:

Lease receivables - due beyond one year 2,300,602 3,054,762 5,355,364 Restricted cash - 2,539,884 2,539,884 Restricted investments - Consent Decree (Note 18) - 26,172,408 26,172,408 Restricted - other assets - 14,811,101 14,811,101 Net OPEB asset - 6,408,725 6,408,725 Property held for resale 68,573,052 - 68,573,052 Investment in joint ventures - 19,026,271 19,026,271 Capital assets:

Non-depreciable capital assets 165,986,132 132,369,963 298,356,095 Depreciable capital assets, net 156,440,679 260,904,033 417,344,712 Right to use leased assets, being amortized, net 5,263,524 - 5,263,524 Right to use subscription assets, being amortized, net 302,901 - 302,901 Total assets 812,659,346 587,554,002 1,400,213,348 Pension-related deferred outflows of resources 75,723,058 12,857,611 88,580,669 OPEB-related deferred outflows of resources - 4,089,334 4,089,334 Total deferred outflows of resources 75,723,058 16,946,945 92,670,003 Primary Government

DEFERRED OUTFLOWS OF RESOURCES
ASSETS
City of San Bernardino
Statement of Net Position (Continued)
June 30, 2025
______________________________________________________________________________ - 24 -
The accompanying notes are an integral part of these financial statements.

Governmental Business-Type
Activities A ctivities Total
Accounts payable and accrued liabilities 28,729,778$ 14,046,149$ 42,775,927$ Payroll and related liabilities 7,200,515 1,663,252 8,863,767 Interest payable 85,854 1,271,939 1,357,793 Retentions payable 1,137,129 - 1,137,129 Unearned revenue 46,168,433 - 46,168,433 Deposits payable 11,367,665 - 11,367,665 Noncurrent liabilities:

Due within one year:

Compensated absences 3,819,092 2,708,782 6,527,874 Lease liabilities 1,450,852 - 1,450,852 Subscription liabilities 81,887 - 81,887 Claims payable 14,683,238 6,005,994 20,689,232 Long-term debt 651,528 2,159,042 2,810,570 Due in more than one year:

Deposits payable - 2,449,436 2,449,436 Unearned revenue - Consent Decree (Note 18) - 40,983,509 40,983,509 Due to Successor Agency 2,232,925 - 2,232,925 Aggregate net pension liability 454,709,674 69,031,739 523,741,413 Landfill closure liability - 3,364,034 3,364,034 Lease liabilities 3,647,425 - 3,647,425 Subscription liabilities 136,389 - 136,389 Compensated absences 8,911,210 681,079 9,592,289 Claims payable 45,970,849 - 45,970,849 Long-term debt 19,848,332 72,199,372 92,047,704 Total liabilities 650,832,775 216,564,327 867,397,102 OPEB-related deferred inflows of resources - 6,945,696 6,945,696 Lease-related deferred inflows of resources 2,638,148 3,011,630 5,649,778 Deferred charges on refunding 1,530,748 - 1,530,748 Total deferred inflows of resources 4,168,896 9,957,326 14,126,222 Net investment in capital assets 321,145,935 319,558,690 640,704,625 Restricted:

Public safety 2,979,810 - 2,979,810 Streets and capital projects 45,064,828 - 45,064,828 Culture and recreation 1,412,052 - 1,412,052 Grants 10,215,532 - 10,215,532 Community development 29,365,636 - 29,365,636 Debt service 36,678 - 36,678 Capital projects 50,548,718 - 50,548,718 Parks 2,128,062 - 2,128,062 Opioid Settlement 69,697 - 69,697 Postemployment benefits - 6,408,725 6,408,725 Total restricted 141,821,013 6,408,725 148,229,738 Unrestricted (deficit) (229,586,215) 52,011,879 (177,574,336) Total net position 233,380,733$ 377,979,294$ 611,360,027$

NET POSITION

DEFERRED INFLOWS OF RESOURCES

LIABILITIES
Primary Government
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2025

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

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

Governmental activities:

General government 43,986,429$ 12,603,606$ 1,961,120$ -$ 14,564,726$ Public safety 140,835,321 3,393,905 8,832,242 - 12,226,147 Public works 71,679,458 5,666,625 48,289,977 - 53,956,602 Culture and recreation 5,172,671 1,805,611 17,017 - 1,822,628 Community development 49,869,507 4,796,704 46,860,540 - 51,657,244 Community service 18,141,550 350,914 15,516,834 - 15,867,748 Interest on long-term debt 1,583,337 - - - - Total governmental activities 331,268,273 28,617,365 121,477,730 - 150,095,095 Business-type activities:

Water 50,596,374 50,163,378 9,106,142 8,408,955 67,678,475 Sewer 45,343,082 44,511,354 - 3,515,079 48,026,433 Integrated Waste 892,148 500,000 - - 500,000 Total business-type activities 96,831,604 95,174,732 9,106,142 11,924,034 116,204,908 Total primary government 428,099,877$ 123,792,097$ 130,583,872$ 11,924,034$ 266,300,003$ Program Revenues
City of San Bernardino
Statement of Activities
For the Fiscal Year Ended June 30, 2025

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

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

Governmental activities:

General government (29,421,703)$ -$ (29,421,703)$ Public safety (128,609,174) - (128,609,174) Public works (17,722,856) - (17,722,856) Culture and recreation (3,350,043) - (3,350,043) Community development 1,787,737 - 1,787,737 Community service (2,273,802) - (2,273,802) Interest on long-term debt (1,583,337) - (1,583,337) Total governmental activities (181,173,178) - (181,173,178) Business-type activities:

Water - 17,082,101 17,082,101 Sewer - 2,683,351 2,683,351 Integrated Waste - (392,148) (392,148) Total business-type activities - 19,373,304 19,373,304 Total primary government (181,173,178) 19,373,304 (161,799,874) General revenues:

Taxes:

Property taxes 28,841,997 - 28,841,997 Sales taxes 105,814,604 - 105,814,604 Franchise taxes 14,730,633 - 14,730,633 Utility user taxes 29,146,952 - 29,146,952 Transient occupancy taxes 5,261,841 - 5,261,841 Cannabis taxes 3,137,504 - 3,137,504 Total taxes 186,933,531 - 186,933,531 Investment earnings (expense) 18,891,018 4,199,976 23,090,994 Gain (loss) on disposal of assets 171,098 2,661,528 2,832,626 Miscellaneous 3,772,885 2,299,106 6,071,991 Subtotal 22,835,001 9,160,610 31,995,611 Total general revenues 209,768,532 9,160,610 218,929,142 Changes in net position 28,595,354 28,533,914 57,129,268 Net Position - beginning of year 206,807,533 350,301,736 557,109,269 Restatement (2,022,154) (856,356) (2,878,510) Net Position - beginning of year, as restated 204,785,379 349,445,380 554,230,759 Net Position - end of year 233,380,733$ 377,979,294$ 611,360,027$ Primary Government
and Changes in Net Position
Net (Expense) Revenue

GOVERNMENTAL FUND FINANCIAL STATEMENTS

City of San Bernardino
Balance Sheet
Governmental Funds
June 30, 2025

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

American Federal and Other Total
General Rescue Plan State Grants Governmental Governmental Fund Act Fund Fund Funds Funds
Cash and investments 141,611,990$ 40,510,188$ 20,495,795$ 109,731,978$ 312,349,951$ Receivables:

Accounts, Net 11, 214,224 - 1,795,234 635,326 13,644,784 Interest 329,055 471,302 29,230 180,572 1,010,159 Leases 2,836,029 - - - 2,836,029 Due from other governments 18,605,221 861,673 4,640,416 3,256,504 27,363,814 Prepaid items 231,140 189,750 48,451 2,292 471,633 Due from other funds 4,750,293 - - - 4,750,293 Property held for resale 39,362,268 - 16,784,986 12,425,798 68,573,052 Restricted cash and investments held by fiscal agents 36,678 - - - 36,678 Total assets 218,976,898$ 42,032,913$ 43,794,112$ 126,232,470$ 431,036,393$ Liabilities:

Accounts payable 12,707,238$ 7,613,900$ 2,234,674$ 3,388,296$ 25,944,108$ Accrued liabilities 446,132 376,021 91,946 11,204 925,303 P
ayroll and related liabilities 6,662,358 21,576 169,254 60,149 6,913,337 Retentions payable 321,056 521,812 238,015 56,246 1,137,129 Due to other funds - 269,953 867,562 - 1,137,515 Deposits payable 11,333,096 - - 34,569 11,367,665 Unearned revenue 2,750,884 28,123,934 13,484,080 1,809,535 46,168,433 Due to Successor Agency 2,232,925 - - - 2,232,925 Total liabilities 36,453,689 36,927,196 17,085,531 5,359,999 95,826,415 Deferred inflows of resources:

Unavailable revenues 1,369,287 - - 602,406 1,971,693 Lease-related deferred inflows of resources 2,638,148 - - 2,638,148 Total deferred inflows of resources 4,007,435 - - 602,406 4,609,841 Fund Balances:

Nonspendable 39,593,408 - - 12,428,090 52,021,498 Restricted 2,164,740 5,105,717 26,708,581 107,841,975 141,821,013 Committed 133,053,592 - - - 133,053,592 Assigned 3,704,034 - 3,704,034 Total fund balances 178,515,774 5,105,717 26,708,581 120,270,065 330,600,137 Total liabilities, deferred inflows, and fund balances 218,976,898$ 42,032,913$ 43,794,112$ 126,232,470$ 431,036,393$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES ASSETS
Major Funds
City of San Bernardino
Reconciliation of the Governmental Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025

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

Total Fund Balances - Total Governmental Funds 330,600,137$ 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.
323,367,954
Deferred refunding charges are not available resources and, therefore, are not reported in the funds (1,530,748)
Deferred outflows on pension related items 73,662,471
Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds. (85,854) 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 (19,715,000)$
Notes payable (1,268,000)
Lease liabilities (2,285,281)
Subscription liabilities (218,276)
Bond discount 483,140
Net pension liability (443,443,695)
Compensated absences (12,059,103)
(478,506,215)
Some of the City's receivables for operating and capital grant reimbursements will be collected after year end, but are not available soon enough to pay for current-period expenditures, and therefore, are reported as unavailable revenues in the governmental funds.
1,971,693
Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the Government-Wide Statement of Net Position.
(16,098,705)
Net Position of Governmental Activities 233,380,733$
City of San Bernardino
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2025

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

American Federal and Other T otal
General Rescue Plan State Grants Governmental Governmental Fund Act Fund Fund Funds Funds
REVENUES:

Taxes 184,085,968$ -$ -$ 7,474,275$ 191,560,243$ Licenses and permits 14,695,155 - - 108,154 14,803,309 Impact fees - - - 3,251,233 3,251,233 Fines and forfeitures 1,300,089 - - 859,834 2,159,923 Use of money and property 8,276,365 2,499,862 568,906 4,697,361 16,042,494 Lease revenue 1,073,573 - - - 1,073,573 Intergovernmental 7,329,446 39,288,950 53,204,548 15,994,996 115,817,940 Charges for services 6,165,730 - - 1,000,087 7,165,817 Other revenues 4,782,731 - - - 4,782,731 Total revenues 227,709,057 41,788,812 53,773,454 33,385,940 356,657,263 EXPENDITURES:

Current:

General government 41,118,065 - 404,603 241,230 41,763,898 Public safety 127,726,279 710,133 3,425,872 117,183 131,979,467 Public works 39,689,044 22,895,452 4,042,025 12,485,863 79,112,384 Culture and recreation 4,371,357 - 30,171 - 4,401,528 Community development 11,717,874 3,732,467 34,881,810 1,364,811 51,696,962 Community service 23,380,407 11,825,318 3,591,991 - 38,797,716 Debt service:

Principal 715,819 45,400 661,111 - 1,422,330 Interest and fiscal charges 1,424,879 - 92,231 - 1,517,110 Total expenditures 250,143,724 39,208,770 47,129,814 14,209,087 350,691,395

REVENUES OVER
(UNDER) EXPENDITURES (22,434,667) 2,580,042 6,643,640 19,176,853 5,965,868 OTHER FINANCING SOURCES (USES):

Inception of lease liability 77,244 136,689 - - 213,933 Proceeds from sale of capital assets 224,913 - - - 224,913 Transfers in - - - 145,653 145,653 Transfers out (2,277,278) - - - (2, 277,278) Total other financing sources (uses) (1,975,121) 136,689 - 145,653 (1,692,779) CHANGES IN FUND BALANCES (24,409,788) 2,716,731 6,643,640 19,322,506 4,273,089 FUND BALANCES:

Beginning of year 202,925,562 2,388,986 20,064,941 100,947,559 326,327,048 End of year 178,515,774$ 5,105,717$ 26,708,581$ 120,270,065$ 330,600,137$ Major Funds
City of San Bernardino
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Fiscal Year Ended June 30, 2025

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

Net Change in Fund Balances - Total Governmental Funds 4,273,089$ Amounts reported for governmental activities in the Statement of Activities are different because:

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

Capital asset additions, including right to use leased assets 41,459,016$ Depreciation/amortization expense, including right to use leased assets (12,103,499) 29,355,517 The issuance of long-term debt (i.e. bonds, leases, notes) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds immediately report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Government-Wide Statement of Activities. The net effect of these differences in the treatment of long-term debt and related items is listed below:

Principal payments on long-term debt 689,000$
Principal payments on lease liabilities 629,564
Principal payments on subscription liabilities 103,766
Increase in subscription liabilities (213,933)
Changes in pension related items (10,763,875)
Change in accrued interest payable 26,033
Amortization of bond premium/discount (22,472)
Amortization of deferred gain/loss on refunding of long-term debt 71,198 (9,480,719) 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 (772,575)
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.
1,204,270
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.
4,069,587
Change in Net Position of Governmental Activities 28,595,354$

PROPRIETARY FUND FINANCIAL STATEMENTS

City of San Bernardino
Statement of Net Position
Proprietary Funds
June 30, 2025

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

Water Sewer
ASSETS
Current assets:

Cash and cash equivalents 43,039,858$ 58,697,598$ Accounts receivable, net 7,090,088 5,243,476 Interest receivable 324,990 482,529
Lease receivables 211,681 -
Due from other governments 2,553,620 79,997 Due from other funds - -
Inventories 1,602,680 -
Prepaid items 232,396 460,943
Total current assets 55,055,313 64,964,543
Noncurrent assets:

Lease receivables 3,054,762 -
Restricted assets:

Cash and cash equivalents - capital-related fees 2,531,867 8,017 Investments - Consent Decree 26,172,408 -
Interest receivable - Consent Decree 124,205 - Prepaid insurance - Consent Decree 14,686,896 - Net OPEB asset 3,388,293 3,020,432
Investments in joint ventures - 19,026,271 Non-depreciable capital assets 64,552,944 67,817,019 Depreciable capital assets, net 183,439,031 77,465,002 Total capital assets, net 247,991,975 145,282,021 Total noncurrent assets 297,950,406 167,336,741 Total assets 353,005,719 232,301,284

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 6,594,668 6,262,943 OPEB-related deferred outflows of resources 2,162,031 1,927,303 Total deferred outflows of resources 8,756,699 8,190,246 Major Enterprise Funds
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025

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

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

Cash and cash equivalents 5,700,181$ 107, 437,637$ 53,869,120$ Accounts receivable, net 125,063 12, 458,627 444,329 Interest receivable 9,659 817, 178 73,530 Lease receivables - 211, 681 - Due from other governments 24,874 2, 658,491 866 Due from other funds - - - Inventories - 1, 602,680 163,198 Prepaid items - 693, 339 216,189 Total current assets 5,859,777 125, 879,633 54,767,232 Noncurrent assets:

Lease receivables - 3, 054,762 - Restricted assets:

Cash and cash equivalents - capital-related fees - 2, 539,884 - Investments - Consent Decree - 26, 172,408 - Interest receivable - Consent Decree - 124, 205 - Prepaid insurance - Consent Decree - 14, 686,896 - Net OPEB asset - 6, 408,725 -
Investments in joint ventures - 19, 026,271 - Non-depreciable capital assets - 132, 369,963 - Depreciable capital assets, net - 260, 904,033 4,625,282 Total capital assets, net - 393, 273,996 4,625,282 Total noncurrent assets - 465, 287,147 4,625,282 Total assets 5,859,777 591, 166,780 59,392,514

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources - 12, 857,611 2,060,587 OPEB-related deferred outflows of resources - 4, 089,334 - Total deferred outflows of resources - 16, 946,945 2,060,587 Non-Major
Enterprise
Fund
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025

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

Water Sewer

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 8,190,333$ 5, 420,243$ Payroll and related liabilities 869,175 782, 105 Due to other funds 1,884,399 1, 728,379
Interest payable 799,222 472, 717
Deposits payable - -
Current portion of compensated absences 1,884,180 822, 738 Current portion of claims payable 3,965,089 2, 040,905 Current portion of lease liabilities - - Current portion of long term debt 1,297,638 861, 404 Total current liabilities 18,890,036 12, 128,491 Noncurrent liabilities:

Deposits payable 2,449,436 -
Unearned revenue - Consent Decree 40,983,509 - Aggregate net pension liability 35,406,379 33, 625,360 Landfill closure liability - - Compensated absences 471,045 205, 684
Claims payable - -
Lease liabilities - -
Long-term debt 43,993,643 28, 205,729
Total noncurrent liabilities 123,304,012 62, 036,773 Total liabilities 142,194,048 74, 165,264

DEFERRED INFLOWS OF RESOURCES
OPEB-related deferred inflows of resources 3,672,169 3, 273,527 Lease-related deferred inflows of resources 3,011,630 - Total deferred inflows of resources 6,683,799 3, 273,527

NET POSITION (DEFICIT)
Net investment in capital assets 204,647,326 114, 911,364 Restricted
Postemployment benefits 3,388,293 3, 020,432 Unrestricted (deficit) 4,848,952 45, 120,943 Total net position (deficit) 212,884,571$ 163, 052,739$ Major Enterprise Funds
City of San Bernardino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025

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

Governmental
Activities
Integrated Internal
Waste Total Service Funds

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 435,573$ 14, 046,149$ 1,860,367$ Payroll and related liabilities 11,972 1, 663,252 287,178 Due to other funds - 3, 612,778 - Interest payable - 1, 271,939 - Deposits payable - - - Current portion of compensated absences 1,864 2, 708,782 201,361 Current portion of claims payable - 6, 005,994 14,683,238 Current portion of lease liabilities - - 763,221 Current portion of long term debt - 2, 159,042 - Total current liabilities 449,409 31, 467,936 17,795,365 Noncurrent liabilities:

Deposits payable - 2, 449,436 - Unearned revenue - Consent Decree - 40, 983,509 - Aggregate net pension liability - 69, 031,739 11,265,979 Landfill closure liability 3,364,034 3, 364,034 - Compensated absences 4,350 681, 079 469,838 Claims payable - - 45,970,849 Lease liabilities - - 2,049,775 Long-term debt - 72, 199,372 -
Total noncurrent liabilities 3,368,384 188, 709,169 59,756,441 Total liabilities 3,817,793 220, 177,105 77,551,806

DEFERRED INFLOWS OF RESOURCES
OPEB-related deferred inflows of resources - 6, 945,696 - Lease-related deferred inflows of resources - 3, 011,630 - Total deferred inflows of resources - 9, 957,326 -

NET POSITION (DEFICIT)
Net investment in capital assets - 319, 558,690 1,812,286 Restricted
Postemployment benefits - 6, 408,725 - Unrestricted (deficit) 2,041,984 52, 011,879 (17,910,991) Total net position (deficit) 2,041,984$ 377, 979,294$ (16,098,705)$ Non-Major
Enterprise
Fund
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

Water Sewer
OPERATING REVENUES:

Charges for services 50,163,378$ 44,511,354$ Other operating revenues 379,135 1,084,288 Total operating revenues 50,542,513 45,595,642 OPERATING EXPENSES:

Cost of sales and services - - Administration and customer service 11,080,475 7,905,078 Utility administration 1,714,760 668,811
Sewer collection and lift stations - 2,919,242 Plant operations 10,733,466 14,046,652
Maintenance 3,757,074 5,281,012
Environmental control - 691,159 Distribution 7,132,610 -
Engineering and water quality control 3,494,437 1,849,607 General, administration and overhead 2,228,830 6,248,285 Claims expense - -
Amortization 62,752 -
Depreciation 8,663,739 4,596,972
Total operating expenses 48,868,143 44,206,818 OPERATING INCOME (LOSS) 1,674,370 1,388,824 NONOPERATING REVENUES (EXPENSES):

Investment income 1,990,514 1,914,250
Rental income 353,483 -
Noncapital grants 9,106,142 -
Interest expense and fiscal charges (1,728,231) (1,136,264) Miscellaneous income - -
Gain (loss) on disposal of assets 2,716,329 (54,801) Other 414,711 67,489
Total nonoperating revenues (expenses) 12,852,948 790,674 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 14,527,318 2,179,498

CAPITAL CONTRIBUTIONS
Acquisition fees 1,725,331 -
Capital contributions 4,930,104 1,913,672 Capacity fees 1,753,520 1,601,407
Transfers in - -
Total contributions 8,408,955 3,515,079
CHANGES IN NET POSITION 22,936,273 5,694,577 NET POSITION:

Beginning of year 190,557,355 157,604,293
Restatement (609,057) (246,131)
Beginning of year, as restated 189,948,298 157,358,162 End of year 212,884,571$ 163,052,739$
Major Enterprise Funds
City of San Bernardino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

Governmental
Activities
Integrated Internal
Waste Total Service Funds
OPERATING REVENUES:

Charges for services 500,000$ 95,174,732$ 50,804,661$ Other operating revenues - 1,463,423 94,172 Total operating revenues 500,000 96,638,155 50,898,833 OPERATING EXPENSES:

Cost of sales and services 892,148 892,148 19,271,104 Administration and customer service - 18,985,553 - Utility administration - 2,383,571 - Sewer collection and lift stations - 2,919,242 - Plant operations - 24,780,118 - Maintenance - 9,038,086 - Environmental control - 691,159 - Distribution - 7,132,610 - Engineering and water quality control - 5,344,044 - General, administration and overhead - 8,477,115 - Claims expense - - 29,989,725 Amortization - 62,752 962,445 Depreciation - 13,260,711 427,607 Total operating expenses 892,148 93,967,109 50,650,881 OPERATING INCOME (LOSS) (392,148) 2,671,046 247,952 NONOPERATING REVENUES (EXPENSES):

Investment income (expense) 295,212 4,199,976 1,774,949 Rental income - 353,483 - Noncapital grants - 9,106,142 - Interest expense and fiscal charges - (2,864,495) (140,986) Miscellaneous income - - 56,047 Gain (loss) on disposal of assets - 2,661,528 - Other - 482,200 -
Total nonoperating revenues (expenses) 295,212 13,938,834 1,690,010 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (96,936) 16,609,880 1,937,962

CAPITAL CONTRIBUTIONS
Acquisition fees - 1,725,331 - Capital contributions - 6,843,776 - Capacity fees - 3,354,927 - Transfers in - - 2,131,625 Total contributions - 11,924,034 2,131,625 CHANGES IN NET POSITION (96,936) 28,533,914 4,069,587 NET POSITION:

Beginning of year 2,140,088 350,301,736 (20,008,571) Restatement (1,168) (856,356) (159,721) Beginning of year, as restated 2,138,920 349,445,380 (20,168,292) End of year 2,041,984$ 377,979,294$ (16,098,705)$ Non-Major
Enterprise Fund
City of San Bernardino
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

Water Sewer
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 49,044,226$ 46,204,410$ Cash received from user departments - - Nonoperating miscellaneous revenues (expenses) - - Cash payments to suppliers for goods and services (25,349,127) (29,933,806) Cash payments to employees for services (15,965,112) (13,248,375) Cash payments for claims and insurance - - Cash inflows (outflows) from other activities - - Net cash provided by (used in) operating activities 7,729,987 3,022,229

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets (38,274,229) (29,206,233) Capital fees received 3,478,851 1,601,407 Proceeds from disposal of assets 2,650,000 - Principal paid on long-term debt (1,050,000) (810,000) Principal paid on lease liabilities (11,994) - Principal paid on subscription liabilities - - Interest paid (1,949,163) (1,159,542)
Net cash (used in) capital and related
financing activities (35,156,535) (29,574,368) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Consent Decree insurance drawdowns 1,693,655 - Operating grants and contributions 9,917,043 - Transfers in - -
Net cash provided by (used in) noncapital financing activities 11,610,698 - CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of investments (1,723,756) -
Maturity of investments - 2,091,801 Leasing activities 232,194 -
Investment income 1,544,555 3,154,762
Net cash provided by investing activities 52,993 5,246,563 Net change in cash and cash equivalents (15,762,857) (21,305,576) CASH AND CASH EQUIVALENTS:

Beginning of year 61,334,582 80,011,191
End of year 45,571,725$ 58,705,615$
RECONCILIATION TO STATEMENT OF NET POSITION:

Cash and cash equivalents 43,039,858$ 58,697,598$ Restricted cash and cash equivalents 2,531,867 8,017 Total cash and cash equivalents 45,571,725$ 58,705,615$ Major Enterprise Funds
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

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

Cash received from customers 500,000$ 95,748,636$ -$ Cash received from user departments - - 50,553,477 Nonoperating miscellaneous revenues (expenses) - - 56,047 Cash payments to suppliers for goods and services (1,656,703) (56,939,636) (14,445,502) Cash payments to employees for services - (29,213,487) (5,122,340) Cash payments for claims and insurance - - (14,113,290) Cash inflows (outflows) from other activities (24,874) (24,874) 94,172 Net cash provided by (used in) operating activities (1,181,577) 9,570,639 17,022,564

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets - (67,480,462) (495,839) Capital fees received - 5,080,258 - Proceeds from disposal of assets - 2,650,000 - Principal paid on long-term debt - (1,860,000) - Principal paid on lease liabilities - (11,994) (689,272) Principal paid on subscription liabilities - - (159,129) Interest paid - (3,108,705) (140,986) Net cash (used in) capital and related
financing activities - (64,730,903) (1,485,226) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Consent Decree insurance drawdowns - 1,693,655 - Operating grants and contributions - 9,917,043 - Transfers in - - 2,131,625 Net cash provided by (used in) noncapital financing activities - 11,610,698 2,131,625 CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of investments - (1,723,756) - Maturity of investments - 2,091,801 - Leasing activities - 232,194 - Investment income 297,550 4,996,867 1,778,712 Net cash provided by investing activities 297,550 5,597,106 1,778,712 Net change in cash and cash equivalents (884,027) (37,952,460) 19,447,675 CASH AND CASH EQUIVALENTS:

Beginning of year 6,584,208 147,929,981 34,421,445 End of year 5,700,181$ 109,977,521$ 53,869,120$ RECONCILIATION TO STATEMENT OF NET POSITION:

Cash and cash equivalents 5,700,181$ 107,437,637$ 53,869,120$ Restricted cash and cash equivalents - 2,539,884 - Total cash and cash equivalents 5,700,181$ 109,977,521$ 53,869,120$ Non-Major
Enterprise Fund
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

Water Sewer

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

Operating income (loss) 1,674,370$ 1,388,824$ Nonoperating miscellaneous revenues (expenses) - - Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 8,726,491 4,596,972 Residual nonoperating revenues and expenses 414,711 - Changes in operating assets and liabilities:

Receivables, net (845,507) 608,768
Due from other governments - - Inventories (62,802) -
Prepaid items 167,909 148,335
Pension-related deferred outflows of resources 2,010,428 1,909,297 OPEB-related deferred outflows of resources (501,423) (446,984) Accounts payable and accrued liabilities 1,003,332 (3,856,098) Payroll and related liabilities 186,261 137,572 Due to other funds 516,349 109,559
Deposits payable (1,067,491) 109,559
Landfill closure liability - - Aggregate net pension liability (1,784,333) (1,694,577) OPEB obligation/asset (974,204) (868,436) Compensated absences 810,334 410,745
Claims payable (2,021,440) 937,281
Pension-related deferred inflows of resources (40,752) (38,702) OPEB-related deferred inflows of resources (482,246) (429,886) Total adjustments 6,055,617 1,633,405
Net cash provided by (used in) operating activities 7,729,987$ 3,022,229$

NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 4,930,104$ 1,913,672$ Acquisition of right-to-use leased assets - - Non-cash from capital and related financing activities 4,930,104$ 1,913,672$ Major Enterprise Funds
City of San Bernardino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Fiscal Year Ended June 30, 2025

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

Governmental
Activities
Integrated Internal
Waste Total Service Funds
R

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

Operating income (loss) (392,148)$ 2,671,046$ 247,952$ Nonoperating miscellaneous revenues (expenses) - - 56,047 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization - 13,323,463 1,390,052 Residual nonoperating revenues and expenses - 414,711 - Changes in operating assets and liabilities:

Receivables, net - (236,739) (250,318) Due from other governments (24,874) (24,874) (866) Inventories - (62,802) 33,171 Prepaid items - 316,244 (118,175) Pension-related deferred outflows of resources - 3,919,725 845,821 OPEB-related deferred outflows of resources - (948,407) - Accounts payable and accrued liabilities (302,893) (3,155,659) 52,270 Payroll and related liabilities (605) 323,228 48,536 Due to other funds - 625,908 - Deposits payable - (957,932) - Landfill closure liability (464,698) (464,698) - Aggregate net pension liability - (3,478,910) (1,225,188) OPEB obligation/asset - (1,842,640) - Compensated absences 3,641 1,224,720 80,515 Claims payable - (1,084,159) 15,876,435 Pension-related deferred inflows of resources - (79,454) (13,688) OPEB-related deferred inflows of resources - (912,132) - Total adjustments (789,429) 6,899,593 16,718,565 Net cash provided by (used in) operating activities (1,181,577)$ 9,570,639$ 17,022,564$

NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions -$ 6,843,776$ -$ Acquisition of right-to-use leased assets - - 1,521,885 Non-cash from capital and related financing activities -$ 6,843,776$ 1,521,885$ Non-Major
Enterprise Fund

FIDUCIARY FUND FINANCIAL STATEMENTS

City of San Bernardino
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025

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

Successor Agency
To the Economic
Development
Community Agency
Facilities of San Bernardino
District Private-Purpose
Custodial Fund Trust Fund
ASSETS
Cash and investments 1,812,708$ 4,622,668$
Cash and investments with fiscal agents - 7,392,649 Receivables:

Accounts - 4,000
Interest - 4,320
Due from other governments 23,224 -
Due from City - 2,232,925
Prepaids - 241,593
Total assets 1,835,932 14,498,155

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources - 2,277,939 Deferred loss on refunding of bonds - 484,655 Total deferred outflows of resources - 2,762,594

LIABILITIES
Accounts payable 10,723 -
Deposits payable - 4,532
Interest payable - 96,685
Long-term liabilities:

Due in one year
Current portion of long-term debt - 7,859,185 Due in more than one year
Aggregate net pension liability - 8,162,593 Long-term debt - 6,696,059
Total liabilities 10,723 22,819,054

DEFERRED INFLOWS OF RESOURCES
Pension-related deferred inflows of resources - 524,643 Total deferred inflows of resources - 524,643

NET POSITION (DEFICIT)
Restricted for:

Individuals, organizations, and other governments 1,825,209 - Held in trust for dissolution of EDA - (6,082,948) Total net position (deficit) 1,825,209$ (6,082,948)$ City of San Bernardino
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2025

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

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

Property taxes 1,249,333$ 3,861,153$
Investment income - 519,415
Total additions 1,249,333 4,380,568
DEDUCTIONS:

Administration 154,607 -
Redevelopment - 968,705
Payments to CFD trustee 564,063 -
Debt service - interest and fiscal charges - 705,876 Total deductions 718,670 1,674,581
Changes in Net Position 530,663 2,705,987
NET POSITION (DEFICIT):

Beginning of period 1,294,546 (8,788,935)
End of period 1,825,209$ (6,082,948)$

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, 2025

NOTE DESCRIPTION PAGE
1 Summary of Significant Accounting Policies 43
2 Cash and Investments 59
3 Notes Receivable 64
4 In
terfund Receivables, Payables, and Transfers 65
5 Property Held for Resale 65
6 Capital Assets 66
7 Long-Term Liabilities 68
8 Leases 81
9 Subscription- Based Information Technology Arrangements 84 10 Special Assessment Debt with No City Commitment 84
11 Compensated Absences 85
12 Claims and Judgments Payable 86
13 Pension Plans 88
14 Other Postemployment Benefits 104
15 Other Required Disclosures 110
16 Fund Balance Classification 111
17 Net Investments in Capital Assets 112
18 Landfill Closure Liability 112
19 Successor Agency Trust for Assets of Former Redevelopment Agency 112 20 Consent Decree 113
21 Jointly Governed Organizations and Joint Ventures 114 22 Commitments and Contingencies 116
23 Restatement 117
24 Subsequent Events 117
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 43 -
Note 1 – Summary of Significant Accounting Policies

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

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

A. Financial Reporting Entity

The City was incorporated on April 13, 1854, as a Charter City. The 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

A. Financial Reporting Entity (Continued)

Blended Component Units (Continued)

San Bernardino Joint Powers Financing Authority (Authority)

The San Bernardino Joint Powers Financing Authority (Authority) was formed on August 21, 1989, through a Joint Exercise of Powers Agreement between the City and the EDA. After the EDA’s dissolution in fiscal year 2012, its Successor Agency joined the City as a member of the Authority. The Authority’s purpose is to finance redevelopment activities for the City, the EDA, or other California local agencies, including acquiring, constructing, or installing public capital improvements and purchasing public obligations under the Marks -Roos Act. Authorized by the Marks -Roos Act, the Authority may borrow funds to acquire bonds, notes, or other obligations, or make loans to the City, the EDA, or other agencies for redevelopment financing. The Authority is presented as a blended component unit within the City’s financial statements, as the Authority is governed by a board composed of the City’s elected officials who possess operational responsibility for the Authority and the Authority’s total debt outstanding, including leases, is expected to be repaid entirely with the resources of the primary government. The Authority does not issue separate financial statements.

B. Government-Wide and Fund Financial Statements

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

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

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

The Statement of Activities demonstrates the degree to which the direct expenses of given functions or segments are offset by program revenues. Direct expenses are expenses that are clearly identifiable with a specific program, project, 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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

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

The government-wide, proprietary, custodial fund, and private -purpose trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting . Under the economic resources measurement focus, all assets (current and long-term), deferred outflows of resources, liabilities (current and long-term), and deferred inflows of resources are reported. Under the accrual basis of accounting , revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as 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 period(s) 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 general 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 . B alances between the governmental activities and the business -type activities are presented as internal balances and eliminated in the total primary government column.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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

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

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

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered 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 t o enable the matching of revenue with applicable expenditures. Expenditures generally are recorded when a liability is incurred, under accrual accounting. However, expenditures for debt service and compensated absences are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds.

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

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

The City reports the following major governmental funds:

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

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

Federal and State Grants Fund – This fund is used to report various grants awarded to the City by Federal, State, 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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

The City reports the following major proprietary funds:

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

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

Additionally, the government reports the following fund types:

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

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

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

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

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

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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

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

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

D. Cash, Cash Equivalents, Fiscal Agent Cash, 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.

Fiscal agent cash consists of resources held by external fiscal agents on behalf of the government for the payment of debt service, construction project expenditures, or other legally restricted purposes. These amounts are maintained in separate accounts outside the government’s treasury and are not available for general governmental operations. Fiscal agent cash is reported as an asset of the fund or governmental activity to which the restricted resources relate. Earnings on these accounts accrue to the benefiting fund unless otherwise restricted by bond covenants or contractual agreements.

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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.

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 sal e 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 recorde d 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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 restricted.

K. Leases

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

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

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

K. Leases (Continued)

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.

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 three years.

Infrastructure assets, consisting of certain improvements other than buildings, including pavement, curbs and gutters, streets and sidewalks, drainage systems, traffic control devices, streetlights, and right -of-way corridors within the City , 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 o utlays are recorded as expenditures in the governmental funds and as assets in the government -wide financial statements to the extent the City’s capitalization thresholds are met. Major outlays for capital assets and improvements are capitalized as construction in progress as projects are constructed.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

L. Capital Assets (Continued)

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.

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

Employees of the City earn vacation leave, sick leave, and other compensatory leave benefits based on length of service and position. Under GASB Statement No. 101, the City recognizes a liability for compensated absences when earned and attributable to services already rendered, and when it is probable that the employer will compensate employees for those benefits through paid time off or cash payments.

The liability includes salary -related payments and is measured using the pay rates in effect at the financial statement date. The City’s policy permits employees to accumulate unused vacation and sick leave up to specified limits. Upon separation from service, employees are paid for accumulated vacation and, in certain cases, sick leave.

The City uses a first‑in, first‑out (FIFO) flow assumption in determining which accumulated leave hours are expected to be used or paid. Under this methodology, the earliest earned leave is deemed to be used first when estimating the compensated absences liability.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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.

O. Subscription-Based Information Technology Arrangements

The City is a subscriber for non- cancellable 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, 202 5, 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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.

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

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

R. Other Postemployment Benefits (OPEB)

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

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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

S. Fund Balances (Continued)

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.

On November 21, 2018, t he Mayor and City Council adopted the General Fund Reserve Policy, setting a 1 5% minimum in the Emergency Reserve and 10% in the Economic Contingency Reserve. The Emergency Reserve was established for the purpose of addressing any extremely unusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement or judgment. Utilization of the Emergency Reserve may only occur after the declaration of an emergency by a majority of the City Council. The Economic Contingency Reserve was established for the purpose of providing a mechanism to allow for a measured and thoughtful reduction in expenditures during times of economic downturn. Utilization of the Economic Contingency Reserve requires approval by a majority of the City Council. The reserves committed at June 30, 202 5 were calculated utilizing the fiscal year 2025 -2026 adopted General Fund expenditure budget of $257,521,745.

On October 7, 2020, t he Mayor and City Council adopted the Measure S Expenditure Policy , committing proceeds from the Measure S transaction and use tax effective April 1, 2021 to be used in accordance with the Measure S ballot languag e, the City’s adopted Key Strategic Targets and Goals, and the General Fund Reserve Policy . As part of the annual budget process, the proposed Measure S spending plan is reviewed by the Measure S Citizens Oversight Committee as well as the Mayor and City Council. Utilization of Measure S funds requires approval by a majority of the City Council via the budget adoption and amendment process. The amount committed at June 30, 2025 totaled $68,347,293.

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

T. Net Position

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

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

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

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

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

U. Property Taxes

Under California law, general property taxes are assessed 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 57 -
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 time.

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, 202 5. 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. 10 1, Compensated Absences (GASB 10 1). This Statement establishes a unified model for recognizing and measuring liabilities for compensated absences, such as vacation, sick leave, and other forms of paid leave. Under GASB 101, liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The implementation of GASB 101 resulted in a restatement of beginning net position as disclosed in Note 23.

In December 2023, GASB issued Statement No. 10 2, Certain Risk Disclosures (GASB 102). This Statement requires disclosure of vulnerabilities to risks arising from certain concentrations or constraints that could substantially impact the government’s ability to acquire resources or control spending.

A concentration is defined as a lack of diversity related to a significant inflow or outflow of resources (for example, reliance on a single major employer or industry). A constraint is a limitation imposed by an external party or by formal action of the government’s highest level of decision -making authority (such as voter-approved tax caps or debt limits).

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 58 -
Y. Implementation of New GASB Pronouncements (Continued)

Under GASB 102, disclosure is required only if all of the following criteria are met:

1. The concentration or constraint is known prior to issuance of the financial statements

2. It makes the government vulnerable to the risk of a substantial impact

3. An event associated with the concentration or constraint has occurred, begun to occur, or is more likely than not to occur within 12 months of the financial statement issuance date

For the current fiscal year, management evaluated potential concentrations and constraints and determined that no circumstances met all disclosure criteria; therefore, no additional note disclosure was required. The City will continue to monitor concentrations and constraints and will provide disclosures in future periods if the criteria are met.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 59 -
Note 2 – Cash and Investments
Cash and investments, as of June 30, 2025, are classified in the accompanying financial statements as follows:

Cash and investments, as of June 30, 2025, consist of the following:

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

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

Fiduciary Funds
Governmental B usiness-Type Statement of
Activities Activities Total Net Position Total
Cash and investments 366,219,071$ 107,437,637$ 473,656,708$ 6,435,376$ 480,092,084$ Cash and investments with fiscal agent 36,678 - 36,678 7,392,649 7,429,327 Restricted cash - 2,539,884 2,539,884 - 2,539,884 Restricted investment - Consent Decree (Note 17) - 26,172,408 26,172,408 - 26,172,408 Total cash and investments 366,255,749$ 136,149,929$ 502,405,678$ 13,828,025$ 516,233,703$ Government-Wide Statement of Net Position
Cash:

Cash on hand 11,035$
Deposits with financial institution 25,437,697
Total cash 25,448,732
Investments:

Investments 462,072,679
Investments held by bond trustee 28,712,292
Total investments 490,784,971
Total cash and investments 516,233,703$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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

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

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

B. Investments Authorized by Debt Agreements

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

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

The City monitors the interest rate
risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City has no specific limitations with respect to this metric.

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

Investment Type Total 1 year or fewer 1 to 2 years Over 2 years Local Agency Investment Fund 121,753,911$ 121,753,911$ -$ -$ Money market mutual funds 233,885,873 233,885,873 - - Certificates of deposit 1,182,475 702,479 479,996 - Non-U.S. government and supranational bonds 7,544,556 3,410,432 - 4,134,124 Federal agency securities 45,315,000 27,735,848 15,539,442 2,039,710 U.S. Treasury obligations 40,704,093 971,111 5,714,296 34,018,686 Medium-term corporate notes 30,276,018 16,061,993 6,861,336 7,352,689 Asset backed securities 7,583,161 146,655 2,186,309 5,250,197 Held by bond trustee:

Money market mutual funds 2,539,884 2,539,884 - - Total investments 490,784,971$ 407,208,187$ 30,781,379$ 52,795,406$ Investment Maturities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

D. Disclosures Relating to Credit Risk

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

E. Concentration of Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated in the Government Code. As of June 30, 2025, the City did not have investments in any one issuer that represent 5 percent or more of total City investments.

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.

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 121,753,911$ N/A -$ -$ 121,753,911$ Money market mutual funds 233,885,873 AA+ 233,885,873 - - Certificates of deposit 1,182,475 N/A 702,479 - 479,996 Non-U.S. government and supranational bonds 7,544,556 AA 7,187,287 357,269 - Federal agency securities 45,315,000 AA 45,315,000 - - U.S. Treasury obligations 40,704,093 N/A - - 40,704,093 Medium-term corporate notes 30,276,018 AA- 29,309,628 966,390 - Asset backed securities 7,583,161 AA 7,583,161 - - Held by bond trustee:

Money market mutual funds 2,539,884 AA+ 2,539,884 - - Total investments 490,784,971$ 326,523,313$ 1,323,659$ 162,938,000$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

F. Custodial Credit Risk (Continued)

The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. At June 30, 2025, 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 measurements), 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, 2025:

Investments measured by fair value level: June 30, 2025 Level 1 Level 2 Level 3 Non-U.S. government and supranational bonds 7,544,556$ -$ 7,544,556$ -$ Federal agency securities 45,315,000 - 45,315,000 - U.S. Treasury obligations 40,704,093 12,750,401 27,953,692 - Medium-term corporate notes 30,276,018 - 30,276,018 - Asset backed securities 7,583,161 - 7,583,161 - Total investments by fair value level 131,422,828$ 12,750,401$ 118,672,427$ -$ Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 121,753,911$
Money market mutual funds 236,425,757
Certificates of deposit 1,182,475
Total investments not subject to the fair value hierarchy 359,362,143$ Total investments 490,784,971$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

H. Fair Value Measurements (Continued)

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

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

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

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

Note 3 – Notes Receivable

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

In the financial statements, notes receivable are reported net of an allowance for 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, 202 5, notes receivable consisted of the following:

Allowance for Financial
Notes Receivable Doubtful Accounts Statement
Balance Balance Balance
June 30, 2025 June 30, 2025 June 30, 2025
City:

Federal and State Grants Fund 10,890,935$ (10,890,935)$ -$ Low and Moderate Income Housing Fund 28,877,979 (28,877,979) - Total City 39,768,914 (39,768,914) - Successor Agency:

Successor Agency to the Economic Development
Agency of San Bernardino 3,101,712 (3,101,712) - Total Successor Agency 3,101,712 (3,101,712) - Total 42,870,626$ (42,870,626)$ -$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

A. Due To / From Other Funds

Amounts due to and due from other funds at June 30, 2025, were as follows:

B. Transfers

Interfund transfers during the year ended June 30, 2025, consisted of the following:

Note 5 – Property Held for Resale

Property held for resale represents single -family, multi-family, commercial, and retail real estate acquired by the City in the General Fund, the Low and Moderate Income Housing Fund , and the Federal and State Grant Fund. Property held for resale is 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 5 3 properties ranging in amount from approximately $5,000 to $1.81 million, and total $12.43 million.

Due From Other Funds Due To Other Funds Amount Purpose
A
merican Rescue Plan Act Fund General Fund 269,953$ Overdrawn Cash Federal and State Grants Fund General Fund 867,562 Overdrawn Cash Water Fund General Fund 1,884,399 Right-of-way maintenance Sewer Fund General Fund 1,728,379 Right-of-way maintenance Total 4,750,293$
Transfers In Transfers Out Amount Purpose
Motorpool Internal Service Fund General Fund 2,131,625$ Budgeted Operational Transfer Special Asessments Capital Projects Fund General Fund 145,653 Budgeted Operational Transfer Total 2,277,278$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 66 -
Note 6 – Capital Assets

A. Governmental Activities

Capital asset activity for the year ended June 30, 2025 was as follows:

Depreciation and amortization expense for the year ended June 30, 202 5 were charged to the functions/programs of the primary government as follows:

Balance Balance
J
uly 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land 104,133,846$ 2,650,000$ -$ -$ 106,783,846$ Construction in progress 37,843,453 36,664,048 - (15,305,215) 59,202,286 Total capital assets, not being depreciated 141,977,299 39,314,048 - (15,305,215) 165,986,132 Capital assets, being depreciated:

Infrastructure 526,825,505 - - 12,197,962 539,023,467 Buildings and improvements 88,025,121 - - 3,067,469 91,092,590 Machinery, vehicles, and equipment 56,664,330 2,195,969 (2,640,152) 39,784 56,259,931 Lease asset - buildings and improvements 3,156,414 - - - 3,156,414 Lease asset - machinery, vehicles, and equipment 2,668,800 1,744,790 - - 4,413,590 Right to use Subscription IT Assets 654,113 221,933 (120,887) - 755,159 Subtotal 677,994,283 4,162,692 (2,761,039) 15,305,215 694,701,151 Less accumulated depreciation/amortization
Infrastructure (397,063,609) (6,658,312) - - (403,721,921) Buildings and improvements (75,168,306) (2,529,154) - - (77,697,460) Machinery, vehicles, and equipment (48,551,753) (2,550,512) 2,586,337 - (48,515,928) Lease asset - buildings and improvements (266,345) (713,685) - - (980,030) Lease asset - machinery, vehicles, and equipment (504,092) (822,358) - - (1,326,450) Right to use Subscription IT Assets (353,615) (219,530) 120,887 - (452,258) Subtotal (521,907,720) (13,493,551) 2,707,224 - (532,694,047) Capital assets being depreciated, net 156,086,563 (9,330,859) (53,815) 15,305,215 162,007,104 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 298,063,862$ 29,983,189$ (53,815)$ -$ 327,993,236$ Governmental activities
General government 1,822,447$
Public safety 1,154,186
Public works 7,590,868
Culture and recreation 653,187
Community development 376,468
Community services 506,343
Internal service funds 1,390,052
Total depreciation/amortization expense - Governmental activities 13,493,551$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 67 -
Note 6 – Capital Assets (Continued)

B. Business-Type Activities

Capital asset activity for the year ended June 30, 2025, was as follows:

Depreciation and amortization expense for the year ended June 30, 202 5 was charged to the functions/programs of the primary government as follows:

Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital assets, not being depreciated:

Land and easements 23,472,875$ -$ ( 31,499)$ -$ 23,441,376$ Construction in progress 57,146,318 69,489,722 - (17,707,453) 108,928,587 Total capital assets, not being depreciated 80,619,193 69,489,722 ( 31,499) (17,707,453) 132,369,963 Capital assets, being depreciated:

Water rights, wells, and pumping 109,715,466 239,772 ( 629,210) 114,104 109,440,132 Distribution and collection systems 212,257,761 1,471,111 ( 4,156,846) 7,055,948 216,627,974 Building, plant, and store yards 187,971,696 242,090 ( 1,453,904) 7,161,265 193,921,147 Other capital assets 24,887,604 2,881,543 ( 1,638,133) 3,376,136 29,507,150 Lease asset - buildings and improvements 155,243 - ( 155,243) - - Right to use Subscription IT Assets 246,706 - ( 246,706) - - Subtotal 535,234,476 4,834,516 ( 8,280,042) 17,707,453 549,496,403 Less accumulated depreciation
Water rights, wells, and pumping (57,016,051) (3,097,114) 629, 173 - (59,483,992) Distribution and collection systems (73,705,586) (5,196,102) 4, 156,846 - (74,744,842) Building, plant, and store yards (134,260,831) (3,360,527) 1, 453,904 - (136,167,454) Other capital assets (18,164,386) (1,606,968) 1, 575,272 - (18,196,082) Lease asset - buildings and improvements (143,302) (11,941) 155, 243 - - Right to use Subscription IT Assets (195,895) (50,811) 246, 706 - - Subtotal (283,486,051) (13,323,463) 8, 217,144 - (288,592,370) Total capital assets, being depreciated 251,748,425 (8,488,947) ( 62,898) 17,707,453 260,904,033 Total capital assets, net 332,367,618$ 61,000,775$ ( 94,397)$ -$ 393,273,996$ Business-type activities
Water Enterprise Fund 8,726,491$
Sewer Enterprise Fund 4,596,972
Total depreciation/amortization expense - Business-type activities 13,323,463$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 68 -
Note 7 – Long-Term Liabilities

A. Governmental Activities

The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2025:

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 20 46 in annual installments of $ 15,000 to $ 2,355,000. Interest is due and payable semi - annually at 6.75%. The aggregate debt service payments of the new debt are $308,150 less than the old debt.

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

Balance Debt Debt Balance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Governmental Activities:
2020 Pension Obligation Bonds 19,750,000$ -$ (35,000)$ 19,715,000$ 40,000$ 19,675,000$ Bond discount (505,612) - 22,472 (483,140) (22,472) (460,668) Direct borrowings:

Notes payable
HUD Section 108 - Arden Guthrie 1,922,000 - (654,000) 1,268,000 634,000 634,000 Total notes payable 1,922,000 - (654,000) 1,268,000 634,000 634,000 Lease liabilities (Note 8)
Lease liabilities 4,895,228 1,521,885 (1,318,836) 5,098,277 1,450,852 3,647,425 Total lease liabilities 4,895,228 1,521,885 (1,318,836) 5,098,277 1,450,852 3,647,425 Subscription liabilities (Note 9)
Subscription liabilities 267,238 213,933 (262,895) 218,276 81,887 136,389 Total subscription liabilities 267,238 213,933 (262,895) 218,276 81,887 136,389 Total 26,328,854$ 1,735,818$ (2,248,259)$ 25,816,413$ 2,184,267$ 23,632,146$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

A. Governmental Activities (Continued)

2020 Pension Obligation Bonds (Continued)

The annual debt service requirements of the Pension Obligation Bonds outstanding at June 30, 2025 are as follows:

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

The City of San Bernardino entered into a Contract for Loan Guarantee Assistance, a Master Fiscal Agency Agreement, and executed a promissory note with the United States Department of Housing and Urban Development pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended (Section 108 Loan). The proceeds of the loan were then loaned to the EDA to be used for the Arden-Guthrie Focused Neighborhood Revitalization Project, which affects 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.

Year Ending
June 30, Principal Interest Total
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 200,000 1,292,625 1,492,625
2031-2035 2,205,000 6,139,969 8,344,969
2036-2040 4,535,000 5,063,513 9,598,513
2041-2045 8,755,000 2,971,856 11,726,856
2046-2047 3,505,000 238,444 3,743,444
Total 19,715,000$ 20,986,594$ 40,701,594$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

A. Governmental Activities (Continued)

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

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

The annual debt service requirements for the HUD Section 108 – Arden Guthrie note payable outstanding at June 30, 2025 are as follows:

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, 2025:

Year Ending
June 30, Principal Interest Total
2026 634,000$ 54,778$ 688,778$
2027 634,000 18,291 652,291
Total 1,268,000$ 73,069$ 1,341,069$
Balance Debt Debt Balance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Business-Type Activities:

Bonds payable:
2016 Water Revenue Bonds 42,125,000$ -$ (1,050,000)$ 41,075,000$ 1,100,000$ 39,975,000$ Bond premium 4,413,919 - (197,638) 4,216,281 197,638 4,018,643 2016 Sewer Revenue Bonds 29,740,000 - (810,000) 28,930,000 855,000 28,075,000 Bond premium 143,537 - (6,404) 137,133 6,404 130,729 Total bonds payable 76,422,456 - (2,064,042) 74,358,414 2,159,042 72,199,372 Lease liabilities (Note 8)
Lease liabilities 11,994 - (11,994) - - - Total lease liabilities 11,994 - (11,994) - - - Total 76,434,450$ -$ (2,076,036)$ 74,358,414$ 2,159,042$ 72,199,372$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Business-Type Activities

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 $4,216,281.

The 2016 Water Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through August 2046 . Interest is payable semi -annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2025, $41,075,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year.

The annual debt service requirements for the 2016 Water Revenue Bonds outstanding at June 30, 2025 are as follows:

Year Ending
June 30, P rincipal Interest Total
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 1,345,000 1,646,763 2,991,763
2031-2035 7,600,000 7,358,081 14,958,081
2036-2040 9,505,000 5,451,500 14,956,500
2041-2045 12,155,000 2,797,475 14,952,475
2046-2047 5,715,000 267,635 5,982,635
Total 41,075,000$ 24, 733,381$ 65,808,381$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

B. Business-Type Activities (Continued)

2016 San Bernardino Water Revenue Bonds (Continued)

Pledged Revenues

The City has pledged future net revenues from the Water Fund for the repayment of all of the Revenue Bonds of the Water Fund. For the year ended June 30, 2025, total principal and interest paid was $2,994,388, and net revenues were $ 22,265,711. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $65,808,381.

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, 202 5, at each measurement.

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 $137,133.

The 2016 Sewer Bonds have interest rates ranging from 3.0% to 5.0% per annum and maturities through April 2046. Interest is payable semi -annually on February 1 and August 1. The bonds are secured by revenues pledged for the payment of debt service. In the event of default, the bond trustee may take whatever action, in law or in equity, as may appear necessary or desirable to collect the payments of the debt. At June 30, 2025, $28,930,000 of the bonds were outstanding. The bond reserve requirement was fully funded at the end of the fiscal year.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

B. Business-Type Activities (Continued)

2016 San Bernardino Sewer Revenue Bonds (Continued)

The annual debt service requirements for the 2016 Sewer Revenue Bonds outstanding at June 30, 2025 are as follows:

Pledged Revenues

The City has pledged future net revenues from the Sewer Fund for the repayment of all of the Revenue Bonds of the Sewer Fund. For the year ended June 30, 2025, total principal and interest paid was $1,964,775, and net revenues were $ 7,967,535. The total principal and interest remaining to be paid on the Water Utility Revenue Bonds are $43,266,088.

Debt Covenants

The Sewer Revenue Bonds all require the maintenance of a financial covenant of minimum debt service coverage (DSC) ratio. The minimum DSC ratio for the bonds is 110% of net system revenues, which are pledged for repayment of revenue bonds. The DSC ratio 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, 2025, at each measurement.

Year Ending
June 30, P rincipal Interest Total
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 995,000 972,028 1,967,028
2031-2035 5,590,000 4,290,113 9,880,113
2036-2040 6,685,000 3,096,600 9,781,600
2041-2045 8,230,000 1,605,400 9,835,400
2046-2047 3,780,000 152,500 3,932,500
Total 28,930,000$ 14,336,088$ 43,266,088$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

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, 2025:

Tax Allocation Refunding Bonds, Series 2005A

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

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

Balance Debt Debt B alance Due within Due in More
July 1, 2024 Issued Retired June 30, 2025 One Year Than One Year Fiduciary Activities:

Tax allocation bonds:

Series 2005A, Refunding 4,975,000$ -$ (2,420,000)$ 2,555,000$ 2,555,000$ -$ Series 2005B, Refunding 1,805,000 - (875,000) 930,000 930,000 - Series 2016A, Refunding 7,105,000 - (2,610,000) 4,495,000 2,550,000 1,945,000 Series 2016B, Refunding 3,180,000 - (865,000) 2,315,000 790,000 1,525,000 Series 2021A, Refunding 2,740,000 - (440,000) 2,300,000 445,000 1,855,000 Unamortized discount (16,082) - 4,594 (11,488) (4,594) (6,894) Unamortized premium 2,025,511 - (323,779) 1,701,732 323,779 1,377,953 Total tax allocation bonds 21,814,429 - (7,529,185) 14,285,244 7,589,185 6,696,059 Mortgage revenue bonds:

Highland Senior Housing 1995 275,000 - (130,000) 145,000 145,000 - Casa Ramona Senior Housing 1995 240,000 - (115,000) 125,000 125,000 - Total mortgage revenue bonds 515,000 - (245,000) 270,000 270,000 - Certificates of participation:
1999 Certificates of Participation 610,000 - (610,000) - - - Total certificates of participation 610,000 - (610,000) - - - Total 22,939,429$ -$ (8,384,185)$ 14,555,244$ 7,859,185$ 6,696,059$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2005A (Continued)

A reserve account is required to be maintained in the amount of $ 2,628,456. The balance held in the reserve account as of June 30, 2025 was $3,375,587. At June 30, 2025, $2,555,000 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, 2025 are as follows:

Tax Allocation Revenue Refunding Bonds, Series 2005B

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

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

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

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

Year Ending
June 30, Principal Interest Total
2026 2,555,000$ 73,456$ 2,628,456$
Total 2,555,000$ 73,456$ 2,628,456$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 76 -
Note 7 – Long-Term Liabilities (Continued)
C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Revenue Refunding Bonds, Series 2005B (Continued)

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, 2025 was $1,204,792. At June 30, 2025, $930,000 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, 2025 are as follows:

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.

Year Ending
June 30, Principal Interest Total
2026 930,000$ 26,738$ 956,738$
Total 930,000$ 26,738$ 956,738$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2016A (Continued)

A reserve account is required to be maintained in the amount of $ 2,711,000. As of June 30, 202 5, the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement. At June 30, 2025, $4,495,000 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, 2025 are as follows:

Tax Allocation Refunding Bonds, Series 2016B

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

The Series 2016B bonds consist of $12,015,000 in serial bonds, which 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.

Year Ending
June 30, P rincipal Interest Total
2026 2,550,000$ 161,000$ 2,711,000$
2027 995,000 72,375 1,067,375
2028 135,000 44,125 179,125
2029 140,000 37,250 177,250
2030 145,000 30,125 175,125
2031-2032 530,000 32,000 562,000
Total 4,495,000$ 376,875$ 4,871,875$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2016B (Continued)

A reserve account is required to be maintained in the amount of $ 866,800. As of June 30, 2025, the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement.

At June 30, 2025, $2,315,000 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, 2025 are as follows:

Tax Allocation Refunding Bonds, Series 2021A

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

The Series 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.

Year Ending
June 30, Principal Interest Total
2026 790,000$ 76,800$ 972,738$
2027 805,000 44,900 866,800
2028 720,000 14,400 849,900
Total 2,315,000$ 136,100$ 2,689,438$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Fiduciary Fund Financial Statements (Continued)

Tax Allocation Refunding Bonds, Series 2021A (Continued)

A reserve account is required to be maintained in the amount of $ 482,813. As of June 30, 2025, the reserve requirement was met through the City’s purchase of a Surety policy in -lieu of the cash reserve requirement.

At June 30, 2025, $2,300,000 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, 2025 are as follows:

Highland Senior Housing 1995 Mortgage Revenue Bonds

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

Interest is payable semi-annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bonds (Highland Lutheran Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 2025 are $145,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Highland Senior Housing Mortgage Revenue bonds outstanding at June 30, 2025 are as follows:

Year Ending
June 30, Principal Interest Total
2026 445,000$ 36,030$ 480,791$
2027 450,000 30,031 481,030
2028 460,000 22,813 480,031
2029 470,000 14,345 482,813
2030 475,000 4,916 479,916
Total 2,300,000$ 108,135$ 2,404,581$
Year Ending
June 30, Principal Interest Total
2026 145,000$ 5,528$ 146,013$
Total 145,000$ 5,528$ 146,013$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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

C. Fiduciary Fund Financial Statements (Continued)

Casa Ramona Senior Housing 1995 Mortgage Revenue Bonds

The Multifamily Housing Revenue Bonds 1995 Series (Casa Ramona Senior Housing Complex Project) were issued on June 29, 1995 for $1,500,000. The mortgage revenue bonds are special obligations payable solely from payments made on and secured by a pledge of the acquired mortgage loans and certain reserve funds and other monies in connection therewith, all pledged under the resolution authorizing the issuance of the bonds. The Bonds shall mature on July 1, 2025 and shall bear interest at the rate of 7.875% per annum. Interest is payable semi -annually on July 1 and January 1. The bonds are payable from revenues or assets of the EDA. Multifamily Housing Revenue Bonds (Casa Ramona Senior Housing Project) 1995 Series mortgage revenue bonds outstanding as of June 30, 202 5 are $125,000. In the event of default, the bond trustee may pursue any available remedy, in law or in equity, to enforce the payments of the debt.

The annual debt service requirements for the Casa Ramona Senior Housing 1995 Mortgage Revenue bonds outstanding at June 30, 2025 are as follows:

1999 Certificates of Participation

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

This
obligation was paid off in full during the fiscal year, with no remaining balance outstanding.

Year Ending
June 30, Principal Interest Total
2026 125,000$ 4,922$ 129,372$
Total 125,000$ 4,922$ 129,372$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 81 -
Note 8 – Leases

A. Lease Liabilities and Right to Use Leased Assets

Governmental Activities

The City has entered into eighty-three (83) leases as lessee for the use of buildings, equipment, and vehicles.

The leases have payments that range from $ 4,943 to $681,811 and interest rates that range from 1.415% to

8.01%. As of June 30, 2025, the total value of the lease liabilities was $5,098,277. The total value of the right to use assets as of June 30, 2025 of $ 7,570,004 with total accumulated amortization of $ 2,306,480 is included with the lease class activities in the table found below.

Right to use leased assets include the following at June 30, 2025:

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

Lease Accumulated
A
sset Class Asset Value Amortization
Buildings and improvements 3,156,414$ 980,030$
Machinery, vehicles, and equipment 4,413,590 1,326,450 Total 7,570,004$ 2,306,480$
Governmental Activities
Year Ending
June 30, Principal Interest Total
2026 1,450,852$ 176,605$ 1,627,457$
2027 1,549,018 114,155 1,663,173
2028 1,543,743 48,860 1,592,603
2029 497,347 9,480 506,827
2030 57,317 359 57,676
Total 5,098,277$ 349,459$ 5,447,736$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 82 -
Note 8 – Leases (Continued)

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

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, 202 5, the value of the lease liability was $0, as the final scheduled payment was made during the year.

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, 2025, the value of the lease receivable was $2,705,561 and the value of the deferred inflow of resources was $2,516,825. The City recognized $440,405 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, 2025, the value of the lease receivable was $130,468. 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, 2025 was $121,323, and the City recognized lease revenue of $103,992 during the fiscal year. The lessee has 2 extension options, each for 24 months.

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

Year Ending
June 30, P rincipal Interest Total
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 250,491 7,090 257,581
2031-2035 837,248 16,269 853,517
2036-2039 109,521 894 110,415
Total 2,836,029$ 75,208$ 2,911,237$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 83 -
Note 8 – Leases (Continued)

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

Business-Type Activities

The Water fund leases land to various companies for installation of cellular towers and fiberoptic communications. The terms range from 2 7 months to 268 months as of the contract commencement date.

The Water fund also leases land to Little League International to operate a sports complex. The term is 231 months as of the contract commencement date. Some leases have extension options ranging from 6 months to 20 years. As of June 30, 202 5, the value of the lease receivable was $ 3,266,443 and the value of the deferred inflow of resources was $ 3,011,630. The Water fund recognized $ 264,246 in lease revenue during the year.

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

Year Ending
June 30, Principal Interest Total
2026 211,681$ 49,755$ 261,436$
2027 231,942 46,412 278,354
2028 243,636 42,896 286,532
2029 253,024 39,202 292,226
2030 265,554 35,349 300,903
2031-2035 1,276,248 114,148 1,390,396
2036-2040 579,457 42,011 621,468
2041-2044 204,901 5,372 210,273
Total 3,266,443$ 375,145$ 3,641,588$
Business-type Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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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 $7,730 to $121,666 and interest rates that range from 2. 82% to 4.041%. As of June 30, 2025, the total value of the subscription liabilities was $ 218,276. The total value of the right to use assets , and related accumulated amortization on right to use subscription assets , was $755,159 and $452,258, as of June 30 , 2025, respectively.

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

Note 10 – Special Assessment Debt with No City Commitment

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

In August 2022, the City issued for and on behalf of the Community Facilities District No. 2020 -1 (Rancho Palma) $3,505,000 aggregate principal amount of 2022 Special Tax Bonds to 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, 2025, was $3,400,000.

Year Ending
June 30, Principal Interest Total
2026 81,887$ 7,194$ 89,081$
2027 85,278 4,590 89,868
2028 33,490 1,874 35,364
2029 17,621 612 18,233
Total 218,276$ 14,270$ 232,546$
Governmental Activities
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 85 -
Note 10 – Special Assessment Debt with No City Commitment (Continued)

In November 2022, the City issued for and on behalf of the Community Facilities District No. 2021 -1 (Ferree Street) $2,775,000 aggregate principal amount of 2022 Special Tax Bonds to finance the 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, 2025, was $2,655,000.

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 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, 2025, was $2,910,000.

Noncommittal debt amounts issued and outstanding at June 30, 2025 are as follows:

Original
Amount
Outstanding
Balance
June 30, 2025
CFD No. 2020-1 (Rancho Palma) 3,505,000$ 3,400,000$ CFD No. 2021-1 (Ferree Street) 2,775,000 2,655,000 CFD No. 2018-2 (Verdemont Ranch) 2,945,000 2,910,000

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, accumulate and carry forward, and are more likely than not to be used or paid.

A summary of changes in the compensated absences balances for the primary government for the year ended June 30, 2025 is as follows:

Balance
July 1, 2024, Net Balance Due within Due in More
As Restated Change June 30, 2025 One Year Than One Year Governmental activities 11,877,213$ 853,089$ 12,730,302$ 3,819,092$ 8,911,210$ Business-type activities 3,020,330 369,531 3,389,861$ 2,708,782 681,079 Total 14,897,543$ 1,222,620$ 16,120,163$ 6,527,874$ 9,592,289$ Classification
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 11 – Compensated Absences (Continued)

A. Primary Government (Continued)

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

Note 12 – Claims and Judgments Payable

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

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

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

The City is a member of the Public Risk Innovation, Solutions, and Management (PRISM), formerly known as CSAC Excess Insurance Authority for its workers’ compensation claims. For these claims, the City is self - insured for the first $1 million. Excess 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.

Governmental activities
Governmental Funds 12,059,103$
Workers Compensation 43,782
Liability Insurance 42,069
Motorpool 123,005
Information Systems 462,343
Total - Governmental activities 12,730,302$
Business-type activities
Water Fund 2, 355,225$
Sewer Fund 1,028,422
Integrated Waste Fund 6,214
Total - Business-type activities 3,389,861$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 87 -
Note 12 – Claims and Judgments Payable (Continued)

A. Governmental Activities

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

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

B. Business-Type Activities

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

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

Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
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 2024-2025 23,824,287 42,229,879 (25,956,286) 40,097,880 Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
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 2024-2025 20,953,365 3,636,281 (4,033,439) 20,556,207 Beginning of Claims and Balance at
Fiscal Year Changes in Claims Fiscal Year
Liability Estimates Payments End
2022-2023 4,941,779$ 3,413,898$ -$ 8,355,677$ 2023-2024 8,355,677 (1,265,524) - 7,090,153 2024-2025 7,090,153 (1,084,159) - 6,005,994 City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 88 -
Note 13 – Pension Plans

A. Summary

Net Pension Liability

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

Deferred Outflows of Resources

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

Deferred Inflows of Resources

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

Net Pension
Liability
CalPERS Miscellaneous Plan - City 191,754,830$
CalPERS Safety Plan - City 331,986,583
Subtotal - City 523,741,413
CalPERS Miscellaneous Plan - Successor Agency 8,162,593 Total 531,904,006$
Differences Between
Differences Between Differences Between Employer's Contributions Pension Contributions Changes of Expected and Expected and Actual and Proportionate Share Made after the Assumptions Actual Experience Investment Earnings of Contributions Measurement Date Total CalPERS Miscellaneous Plan - City -$ 3,692,258.00$ 7,356,668$ -$ 24,255,176$ 35,304,102$ CalPERS Safety Plan - City - 8,965,150 9,120,024 - 35,191,393 53,276,567 Subtotal - City - 12,657,408 16,476,692 - 59,446,569 88,580,669 CalPERS Miscellaneous Plan - Successor Agency 209,796 705,731 469,910 37,381 855,121 2,277,939 Total 209,796$ 13,363,139$ 16,946,602$ 37,381$ 60,301,690$ 90,858,608$ Differences Between Employer's Contributions Change in
Expected and and Proportionate Share Employer's
Actual Experience of Contributions Proportion Total
CalPERS Miscellaneous Plan - Successor Agency 27,537$ 41,177$ 455,929$ 524,643$ Total 27,537$ 41,177$ 455,929$ 524,643$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 89 -
Note 13 – Pension Plans (Continued)

A. Summary (Continued)

Pension Expense

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

B. City Plans

Plan Description

Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent multiple -employer defined benefit plans administered by California Public Employees 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 CalPERS employees that do not meet the PEPRA qualifications previously described. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.

Benefits Provided

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

Net Pension
Expense
CalPERS Miscellaneous Plan - City 25,838,009$
CalPERS Safety Plan - City 44,336,618
Subtotal - City 70,174,627
CalPERS Miscellaneous Plan - Successor Agency 1,029,961 Total 71,204,588$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 90 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Benefits Provided (Continued)

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

2.7% of the average final 12 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 survivor(s), or to the retiree’s estate.

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

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 91 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Employees Covered

At June 30, 2024, the measurement date, the following employees were covered by the benefit terms for each Plan:

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a 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 between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2025, the average active miscellaneous and safety employee contribution rates were 7.75 % and 10.94 % of annual pay, respectively, and the employer’s contribution rates were 1 1.68% and 2 0.85% of miscellaneous and safety employee annual payroll, respectively.

Contributions

For the fiscal year ended June 30, 2025, the plan’s contributions made for each Plan was as follows:

Net Pension Liability

The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 20 24, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Miscellaneous Safety
A
ctive employees 796 284
Transferred and terminated employees 1,202 236 Retired employees and beneficiaries 1,591 772 Total 3,589 1,292
Miscellaneous Safety Aggregate Total
Contributions - employer 24,255,176$ 35,191,393$ 59,446,569$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 92 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Actuarial Assumptions

The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

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

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

The mortality table used was developed based on CalPERS -specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP -2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 93 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

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

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

These geometric rates of return are net of administrative expenses.

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

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

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

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 94 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

Changes in the Net Pension Liability

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

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2023 (Valuation Date) 674,064,274$ 472,645,806$ 201,418,468$ Changes in the year:

Service cost 9,625,422 - 9,625,422 Interest on the total pension liabilities 45,887,994 - 45,887,994 Differences between expected and actual experience 5,725,088 - 5,725,088 Benefit payments, including refunds of members contributions (39,117,364) (39,117,364) - Plan to plan resource movement - 535 (535) Contributions - employer - 21,679,752 (21,679,752) Contributions - employee - 4,480,533 (4,480,533) Net investment income - 45,125,915 (45,125,915) Administrative expenses - (384,593) 384,593 Net changes 22,121,140 31,784,778 (9,663,638) Balance at June 30, 2024 (Measurement Date) 696,185,414$ 504,430,584$ 191,754,830$ Miscellaneous Plan
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2023 (Valuation Date) 946,343,060$ 605,192,245$ 341,150,815$ Changes in the year:

Service cost 10,692,054 - 10,692,054 Interest on the total pension liabilities 64,339,772 - 64,339,772 Differences between expected and actual experience 8,605,486 - 8,605,486 Benefit payments, including refunds of members contributions (55,668,240) (55,668,240) - Plan to plan resource movement - (535) 535 Contributions - employer - 31,167,006 (31,167,006) Contributions - employee - 4,104,620 (4,104,620) Net investment income - 58,022,900 (58,022,900) Administrative expenses - (492,447) 492,447 Net changes 27,969,072 37,133,304 (9,164,232) Balance at June 30, 2024 (Measurement Date) 974,312,132$ 642,325,549$ 331,986,583$ Safety Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 95 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

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

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

Pension Plan Fiduciary Net Position

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

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

For the year ended June 30, 202 5, the City recognized pension expense in the amounts of $ 25,838,009 and $44,336,618, for the miscellaneous and safety plans, respectively.

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

The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for the Miscellaneous Plan for the 2023-24 measurement period is 2.3 years, which was obtained by dividing the total service years of 8,078 (the sum of remaining service lifetimes of the active employees) by 3,458 (the total number of participants: active, inactive, and retired). The EARSL for the Safety Plan for the 2023-24 measurement period is 2. 7 years, which was obtained by dividing the total service years of 3,474 (the sum of remaining service lifetimes of the active employees) by 1, 273 (the total number of participants:
active, inactive, and retired).

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan 280,393,046$ 191,754,830$ 118,652,205$ Safety Plan 460,974,104$ 331,986,583$ 226,537,395$ Aggregate Total 741,367,150$ 523,741,413$ 345,189,600$ Plan's Aggregate Net Pension Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 96 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

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

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 24,255,176$ -$
Difference between projected and actual
earning on pension plan investments 7,356,668 - Differences between expected and actual experience 3,692,258 - Total 35,304,102$ -$
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 35,191,393$ -$
Difference between projected and actual
earning on pension plan investments 9,120,024 - Differences between expected and actual experience 8,965,150 - Total 53,276,567$ -$
Deferred outflows Deferred inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 59,446,569$ -$
Difference between projected and actual
earning on pension plan investments 16,476,692 - Differences between expected and actual experience 12,657,408 - Total 88,580,669$ -$
Aggregate Totals
Safety Plan
Miscellaneous Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 97 -
Note 13 – Pension Plans (Continued)

B. City Plans (Continued)

For the Miscellaneous Plan and Safety Plan, $ 24,255,176 and $ 35,191,393, 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, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

C. Successor Agency Plan

Plan Description

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

Benefits Provided

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

Fiscal Year
Ending June 30, Miscellaneous Plan Safety Plan
2026 2,312,699$ 5,736,186$
2027 13,364,688 18,466,805
2028 (2,027,537) (2,714,733)
2029 (2,600,924) (3,403,084)
11,048,926$ 18,085,174$
Deferred Outflows/(Inflows) of Resources
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 98 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Benefits Provided (Continued)

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

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

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

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

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

Employees Covered

At June 30, 2024, 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 68
Total 92
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 99 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost -sharing plans covered by the Miscellaneous risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024 (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, 2025, employer contributions made for the Successor Agency Miscellaneous Cost-sharing Plan were $855,121.

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, 20 24, 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, 2023 rolled forward to June 30, 2024 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, 2024, the City reported net pension liability for its proportionate shares of the net pension liability of the Successor Agency Miscellaneous Plan as follows:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
L
iability Position Liability/(Asset)
Balance at: 6/30/23 (Valuation date) 22,361,990$ 14,166,701$ 8,195,289$ Balance at: 6/30/24 (Measurement date) 21,554,522 13,391,929 8,162,593 Net Changes during 2023-2024 (807,468) (774,772) (32,696) Increase (Decrease)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 100 -
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, 20 23). 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, 20 24). 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, 20 23 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2023-24).

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

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

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

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

The City’s proportionate share of the net pension liability for the Successor Agency Miscellaneous Plan as of June 30, 2023 and 2024 was as follows:

For the year ended June 30, 2025, the City recognized pension expense in the amount of $1,029,961 for the Successor Agency Miscellaneous Plan.

Proportion June 30, 2023 0.16389%
Proportion June 30, 2024 0.16877%
Change - Increase (Decrease) 0.00487%
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 101 -
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 EARSL for PERF C for the measurement date ending June 30, 20 24 is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

For the Successor Agency Miscellaneous Plan, $ 855,121 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, 2026.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions made subsequent
to measurement date 855,121$ -$ Difference between projected and actual earnings on
pension plan investments 469,910 - Adjustment due to differences in proportions - 455,929 Changes in assumptions 209,796 - Difference between actual and expected experience 705,731 27,537 Difference between employer's actual contributions
and proportionate share of contributions 37,381 41,177 Total 2,277,939$ 524,643$
Successor Agency Plan
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 102 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

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

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

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

For the measurement period ended June 30, 20 24 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The total pension liabilit y 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 CalPERS’ Membership Data for all
Funds
Post Retirement Benefit Increase Contract COLA up to 2. 30% until Purchasing Power Protection Allowance Floor on Purchasing
Power applies

Fiscal Year
Ending June 30,
Deferred Outflows/
(Inflows) of
Resources
2026 142,852$
2027 949,779
2028 (33,424)
2029 (161,032)
898,175$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 103 -
Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

Discount Rate

The discount rate used to measure the total pension liability was 6.90 %. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount 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 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 long-term expected rate of return, staff took into account both short -term and long -term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short -term (first 10 years) and the long -term (11-60 years) using a building block approach. Using the expected nominal returns for both short -term and long -term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

These geometric rates of return are net of administrative expenses.

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

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 13 – Pension Plans (Continued)

C. Successor Agency Plan (Continued)

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

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

Pension Plan Fiduciary Net Position

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

Payable to the Pension Plan

At June 30, 2025 , 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, 2025.

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.

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
11,071,168$ 8,162,593$ 5,768,407$ Plan's Aggregate Net Pension Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 14 – Other Postemployment Benefits (Continued)

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

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

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

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

B. Water Department

Plan Description

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

Employees Covered

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

As of the June 30, 2024 measurement date, the following current and former employees were covered by the benefit terms under the OPEB Plan:

Active employees electing medical coverage 212
Active employees waiving medical coverage 28
Retirees electing medical coverage 136
Retirees with only non-medical OPEB coverage 28
Total 404
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

Contributions

The contribution requirements of plan members and the Department are established and may be amended by the Board. The required contribution is based on projected pay -as-you-go financing requirements, with an additional amount to prefund benefits as may be determined annually by the Board. The Department has established an irrevocable trust to which pre -funding contributions are made. For the fiscal year ended June 30, 2025, the Department’s contributions were $ 1,948,530, and the amount of contributions in the form of an implied subsidy were $668,652.

Net OPEB Liability

The Department’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 that was rolled forward to determine the June 30, 20 24 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.75%
Inflation 2.50%
Mortality Rate CalPERS 2021 Experience Study
Healthcare Trend Rate Non-Medicare – 8.6% for 202 5, decreasing to an ultimate rate of 3.9% in 2076 and later.

Medicare – 6.3% for 2025, 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 method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class
Assumed
Asset Allocation
Expected Real
Rate of Return
Fixed Income 40% 1.47%
Global Equity 60% 4.82%
Assumed long-term rate of inflation - 2.75%
Expected long-term net rate of return - 6.25%
Total 100.00%
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

Discount Rate

The discount rate used to measure the total OPEB liability was 6. 75 percent. The projection of cash flows used to determine the discount rate assumed that the Department’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current and inactive employees and beneficiaries. Therefore, the long -term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the Net OPEB Liability

The changes in the net OPEB liability/(asset) are as follows:

Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2024 (Measurement Date 6/30/23) 34,351,738$ 38,917,823$ (4,566,085)$ Changes Recognized for the Measurement Period:

Service Cost 833,949 - 833,949 Interest on the total OPEB liability 2,140,288 - 2,140,288 Changes in benefit terms - - - Changes in assumptions 635,216 - 635,216 Differences between expected and actual experience 1,788,888 - 1,788,888 Contributions - employer - 1,882,172 (1,882,172) Net investment income - 5,369,928 (5,369,928) Benefit payments, including refunds of member
contributions (1,882,172) (1,882,172) - Administrative expenses - (11,119) 11,119 Net Changes during July 1, 2023 to June 30, 2024 3,516,169 5,358,809 (1,842,640) Balance at June 30, 2025 (Measurement Date 6/30/24) 37,867,907$ 44,276,632$ (6,408,725)$ Increase (Decrease)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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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, 2024:

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, 2024:

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 earnings on OPEB plan investments are recognized over five years, while all other deferred outflows and inflows are amortized over the average expected remaining service life of plan participants.

Discount Rate - 1% Current Discount D iscount Rate + 1% (5.75%) Rate (6.75%) (7.75%)
(1,536,252)$ (6,408,725)$ (10,461,526)$ Plan's Net OPEB Liability/(Asset)
(7.6% Pre-Medicare (8.6% Pre-Medicare (9.6% Pre-Medicare decreasing to decreasing to decreasing to

5.3% Medicare) 6.3% Medicare) 7.3% Medicare)
(10,747,169)$ (6,408,725)$ (1,091,470)$ Plan's Net OPEB Liability/(Asset)
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 14 – Other Postemployment Benefits (Continued)

B. Water Department (Continued)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 20 25, the Department recognized OPEB income of $1,656,107. As of fiscal year ended June 30, 20 25, the Department reported deferred outflows of resources related to OPEB from the following sources:

The $1,948,530 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows/inflows of resources related to OPEB will be recognized as expense as follows:

C. Successor Agency

The Successor Agency (Agency) administers a single employer defined benefit healthcare plan (the Plan).

The Agency provides medical and dental plan coverage for retirees and their eligible surviving dependents.

At June 30, 2025, a finite group of retirees and surviving spouses numbering fewer than eleven receive a subsidy of $128 per month. Because this is a closed plan with de minimis liability impact, the Successor Agency’s OPEB obligation of $1,583,335 has been reduced to zero and the minor annual costs are being reported on a pay as you go basis.

Deferred outflows Deferred inflows
of Resources of Resources
OPEB contributions made subsequent to the
measurement date 1,948,530$ -$
Differences between expected and actual experience 1,593,446 3,751,103 Changes of assumptions 547,358 2,001,789 Net difference between projected and actual earnings on OPEB plan investments - 1,192,804 4,089,334$ 6,945,696$
Fiscal Year OPEB
E
nding June 30 Expense
2026 (2,222,425)$
2027 (1,035,361)
2028 (1,345,213)
2029 (961,801)
2030 345,224
Thereafter 414,684
(4,804,892)$
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 15 – Other Required Disclosures

A. Expenditures Exceeding Appropriations

For the year ended June 30, 2025, expenditures exceeded appropriations in the below functions of the following funds:

B. Deficit Fund Balances/Net Position

At June 30, 2025 , the Governmental Activities Statement of Net Position had an unrestricted net position deficit of $(229,586,215).

At June 30, 2025, the following proprietary funds, and fiduciary funds have deficits that are anticipated to be funded from future grants, other revenues and operating transfers:

As of June 30, 202 5, 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.

Excess Expenditures
Fund Function over Appropriations
General Fund General government: Nondepartmental (13,103,054)$ General Fund Debt Service: Principal (26,819)
General Fund Debt Service: Interest and fiscal charges (1,829) American Rescue Plan Act
Special Revenue Fund Debt Service: Principal (45,400)
Federal and State Grants
Special Revenue Fund Debt Service: Principal (7,111)
Fund Type Fund Deficit
Internal Service Workers' Compensation Fund (17,405,146)$ Internal Service Liability Insurance Fund (269,545)
Internal Service Motorpool Fund (1,566,981)
Fiduciary Successor Agency to the Economic Development (6,082,948) Agency of San Bernardino Private-purpose
Trust Fund
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 16 – Fund Balance Classification

Fund balances as of June 30, 2025, for the governmental funds were categorized as nonspendable , restricted, committed, assigned, or unassigned for the following purposes:

Federal
American and State Other
General Rescue Plan Grants Governmental
Fund Act Fund Fund Funds Total
Nonspendable
Prepaid expenditures 231,140$ -$ -$ 2,292$ 233,432$ Property held for resale 39,362,268 - - 12,425,798 51,788,066 Total nonspendable 39,593,408 - - 12,428,090 52,021,498 Restricted
Housing - - 21,598,766 7,766,870 29,365,636 Grants - 5,105,717 5,109,815 - 10,215,532 Street improvements - - - 37,223,473 37,223,473 Cable TV - - - 1,412,052 1,412,052 Law enforcement - - - 2,979,810 2,979,810 Transportation - - - 7,815,375 7,815,375 Sewer - - - 25,980 25,980 Debt service 36,678 - - - 36,678 Capital projects - - - 50,548,718 50,548,718 Parks 2,128,062 - - - 2,128,062 Opioid Settlement - - - 69,697 69,697 Total restricted 2,164,740 5,105,717 26,708,581 107,841,975 141,821,013 Committed
General Plan Update 471,515 - - - 471,515 Measure S 68,201,640 - - - 68,201,640 Emergency reserve 38,628,262 - - - 38,628,262 Economic contingency reserve 25,752,175 - - - 25,752,175 Total committed 133,053,592 - - - 133,053,592 Assigned
Continuing appropriations 3,704,034 - - - 3,704,034 Total assigned 3,704,034 - - - 3,704,034 Total fund balances 178,515,774$ 5,105,717$ 26,708,581$ 120,270,065$ 330,600,137$ Major Funds
City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 17 – Net Investment in Capital Assets

The Government-wide Statement of Net Position reports net investment in capital assets as follows:

Note 18 – Landfill Closure Liability

The City operated a 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 $ 3,364,034 at June 30, 2025 , 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.

Governmental Business-type
Activities Activities Total
Total capital assets, net 327,993,236$ 393,273,996$ 721,267,232$ Less related debt:

Bonds payable - (74,358,414) (74,358,414) Lease liabilities (5,098,277) - (5,098,277) Subscription liabilities (218,276) - (218,276) Capital-related accounts payable and retainage payable - (1,896,776) (1,896,776) Less related deferred inflows of resources:

Deferred charge on refunding (1,530,748) - (1,530,748) Unspent bond proceeds - 2,539,884 2,539,884 Net investment in capital assets 321,145,935$ 319,558,690$ 640,704,625$ City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 113 -
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) bi annually 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, 2025, the Successor Agency had a deficit net position of $6,082,948 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 114 -
Note 20 – Consent Decree (Continued)

The Consent Decree provided for a payment of $69 million from the Army to the City for performance of the work outlined in the Consent Decree. Upon acceptance of the Consent Decree, the Department received title to all facilities constructed by the United States Environmental Protection Agency (EPA) of the Site and agreed to operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for operations and maintenance and $10 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 (ii) funding work performed by the City’s Water Department to complete construction of the Muscoy Operable Unit extraction system. These capital facility funds may not be used for costs incurred to operate, maintain, repair , or retrofit components of the site extraction of treatment systems constructed by EPA.

In March 2006, the City’s Water Department entered into a Guaranteed Investment Contract (GIC) with AIG Match Funding Corporation. The Department invested $16,482,039 of excess Consent Decree funds into an interest -bearing Escrow Fund investment with an interest rate of 4.95% per annum. These funds were invested to pay costs associated with the water facilities defined in the Consent Decree for years 2035 -2056. An additional $50 million was used to purchase a blended insurance policy to provide a financial vehicle that provides cost cap coverage for the first 30 years of expenses.

The terms of the GIC only provided the Department with the position of a secured creditor with respect to an AIG bankruptcy. As concerns rose regarding AIG’s financial credibility, in October 2009, the Department negotiated and accepted a “payout” in the amount of $18,661,876, which represented the principal and accrued interest as of that date. These funds are currently invested in a diversified portfolio managed by PFM Asset Management. The balance of restricted investments held at June 30, 2025 is $26,172,408.

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 115 -
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 each from the other members. The primary sources of funding are loans, federal grants and lease income. Additional financial information can be obtained by contacting SBIAA at 1601 E.

Third Street, San Bernardino, CA 92408.

San 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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

- 116 -
Note 21 – Jointly Governed Organizations and Joint Ventures (Continued)

West End Water Development, Treatment and Conservation Joint Powers Authority

On August 15, 1990, the City of San Bernardino joined the West End Water Development, Treatment and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for construction of water facilities. A three -member board consisting of one 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 carrier(s). In addition, upon the filing of a case and assignment of that case to outside counsel, outside counsel is required to provide the City with a full report identifying the City’s potential exposure and the likely fees and costs to take the case to trial. Such report may be delayed if the case is expected to be resolved relatively quickly.

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, 202 5. 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 $ 66.66 million for the primary government as of June 30, 2025 .

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.

City of San Bernardino
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2025

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Note 22 – Commitments and Contingencies (Continued)

B. Federal and State Grants

Amounts received or receivable from grantor agencies are subject to audits or adjustments by grantor agencies, principally the federal and state governments. Such audits could lead to disallowed claims under the terms of the grants, including amounts already collected, which may constitute a liability of the City.

Note 23 – Restatement

Effective July 1, 2024 , the City implemented GASB Statement No. 101, Compensated Absences , which establishes a unified recognition and measurement framework for liabilities related to compensated absences. This change is considered a change in accounting principle under GASB Statement No. 100.

As a result, beginning net position balances were restated to reflect the revised liability measurement.

The impact of the restatement on beginning net position is summarized as follows:

Note 24 – Subsequent Events

Subsequent events have been evaluated through the date of the auditor’s report, January 14, 2026, which is the date the financial statements were available to be issued.

July 1, 2024, Change In
As Previously Accounting July 1, 2024,
Reported Principle As Restated
Government-Wide
Governmental Activities 206,807,533 (2,022,154) 204,785,379 Business-Type Activities 350,301,736 (856,356) 349,445,380 Total Primary Government 557,109,269 (2,878,510) 554,230,759 Proprietary Funds
Water 190,557,355 (609,057) 189,948,298
Sewer 157,604,293 (246,131) 157,358,162
Integrated Waste (Non-Major Enterprise Fund) 2,140,088 (1,168) 2,138,920 Workers' Compensation Internal Service Fund (17,689,057) (7,749) (17,696,806) Liability Insurance Internal Service Fund (260,825) (8,721) (269,546) Motorpool Internal Service Fund (2,977,997) (25,495) (3,003,492) Information Systems Internal Service Fund 919,308 (117,756) 801,552 Total Proprietary Funds 330,293,165 (1,016,077) 329,277,088

REQUIRED SUPPLEMENTARY INFORMATION
City of San Bernardino
Required Supplementary Information
Budgetary Information
For the Fiscal Year Ended June 30, 2025

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Budgetary Information

The City adopts an operating budget annually during June to be effective July 1 for the ensuing fiscal year. Budgeted expenditures are adopted through the passage of a resolution. This resolution constitutes the maximum authorized expenditures for the fiscal year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council. The legal level of budgetary control is considered to be the department level.

Following approval of the budget by the Mayor and City Council, the following types of budget transfers may be made administratively (without action by the Mayor and City Council):
 Budget transfers, including allocations within the department’s personnel (salary or benefits) budget may made be with the approval of the Budget Division, Position Control, and the Director of Finance.
 Budget transfers between departments within the same fund may be made with the approval of the Director of each Department, the Budget Division, and the Director of Finance.  Budget transfers 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, 202 5, 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 fiscal year.

Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used in future years without limitation.

City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – General Fund
For the Fiscal Year Ended June 30, 2025

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Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Current:

General government
Mayor 298,025 318,721 312,597 6,124 City council 1,156,448 1,156,448 1,144,563 11,885 City clerk 1,942,869 1,922,173 1,610,719 311,454 City attorney 5,181,587 5,932,316 5,821,618 110,698 City manager 6,325,253 4,262,005 3,830,220 431,785 Human resources 2,784,522 3,198,411 2,579,595 618,816 Finance 6,612,496 6,738,680 5,316,078 1,422,602 Nondepartmental 7,139,348 7,399,621 20,502,675 (13,103,054) Total general government 31,440,548 30,928,375 41,118,065 (10,189,690) Public safety
Police 132,040,580 136,187,713 127,726,279 8,461,434 Total public safety 132,040,580 136,187,713 127,726,279 8,461,434 Public works
Public works 32,498,402 63,407,486 39,689,044 23,718,442 Total Public works 32,498,402 63,407,486 39,689,044 23,718,442 Culture and recreation
Park, recreation and community services 4,972,739 5,357,857 4,371,357 986,500 Total culture and recreation 4,972,739 5,357,857 4,371,357 986,500 Community development
Community development 12,588,780 21,394,887 11,717,874 9,677,013 Total community development 12,588,780 21,394,887 11,717,874 9,677,013 Community service
Animal services 10,341,916 15,341,416 10,191,061 5,150,355 Library 14,103,386 19,483,937 13,189,346 6,294,591 Total community service 24,445,302 34,825,353 23,380,407 11,444,946 Debt service:

Principal 689,000 689,000 715,819 (26,819) Interest and fiscal charges 1,423,050 1,423,050 1,424,879 (1,829) Total expenditures 240,098,401 294,213,721 250,143,724 44,069,997

REVENUES OVER
(UNDER) EXPENDITURES (665,142) (52,147,561) (22,434,667) 29,712,894

OTHER FINANCING SOURCES (USES)
Inception of lease liability - - 77,244 77,244 Proceeds from sale of capital assets - - 224,913 224,913 Transfers out (150,000) (2,281,625) (2,277,278) 4,347 Total other financing sources (uses) (150,000) (2,281,625) (1,975,121) 306,504 CHANGE IN FUND BALANCE (815,142)$ (54,429,186)$ (24,409,788) 30,019,398$ Fund Balance:

Beginning of year 202,925,562
End of year 178,515,774$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – American Rescue Plan Act Special Revenue Fund For the Fiscal Year Ended June 30, 2025

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Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 2,499,862$ 2,499,862$ Intergovernmental - 5,058,437 39,288,950 34,230,513 Total revenues - 5,058,437 41,788,812 36,730,375 EXPENDITURES:

Current:

Public safety
Public safety - 2,497,500 710,133 1,787,367 Total Public safety - 2,497,500 710,133 1,787,367 Public works
Public works - 44,125,941 22,895,452 21,230,489 Total Public works - 44,125,941 22,895,452 21,230,489 Community development
Community development - 4,756,281 3,732,467 1,023,814 Total community development - 4,756,281 3,732,467 1,023,814 Community service
Other - 20,807,753 11,825,318 8,982,435 Total community service - 20,807,753 11,825,318 8,982,435 Debt service:

Principal - 45,400 (45,400) Total expenditures - 72,187,475 39,208,770 31,236,738

REVENUES OVER
(UNDER) EXPENDITURES - (67,129,038) 2,580,042 67,967,113 OTHER FINANCING SOURCES (USES):

Inception of lease liability - - 136,689 136,689 Total other financing sources (uses) - - 136,689 136,689 CHANGE IN FUND BALANCE -$ (67,129,038)$ 2,716,731 69,845,769$ FUND BALANCE:

Beginning of year 2,388,986
End of year 5,105,717$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Budgetary Comparison Schedule – Federal and State Grants Special Revenue Fund For the Fiscal Year Ended June 30, 2025

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Variance with
Final Budget
Actual Increase
Original Fin al Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 568,906$ 568,906$ Intergovernmental 6,225,337 72,974,327 53,204,548 (19,769,779) Total revenues 6,225,337 72,974,327 53,773,454 (19,200,873) EXPENDITURES:

Current:

General government
City manager - 3,572,942 385,781 3,187,161 Finance - 18,822 18,822 - Total general government - 3,591,764 404,603 3,187,161 Public safety
Police 1,075,416 11,423,774 3,425,872 7,997,902 Total public safety 1,075,416 11,423,774 3,425,872 7,997,902 Public works
Public works - 20,552,230 4,042,025 16,510,205 Total Public works - 20,552,230 4,042,025 16,510,205 Culture and recreation
Park, recreation and community services - 122,387 30,171 92,216 Total culture and recreation - 122,387 30,171 92,216 Community development
Community development 3,925,236 54,611,894 34,881,810 19,730,084 Total community development 3,925,236 54,611,894 34,881,810 19,730,084 Community service
Other 1,184,426 14,344,502 3,591,991 10,752,511 Total community service 1,184,426 14,344,502 3,591,991 10,752,511 Debt Service:

Principal - 654,000 661,111 (7,111) Interest and fiscal charges - 128,759 92,231 36,528 Total expenditures 6,185,078 105,429,310 47,129,814 58,299,496

REVENUES OVER
(UNDER) EXPENDITURES 40,259 (32,454,983) 6,643,640 39,098,623 CHANGE IN FUND BALANCE 40,259$ (32,454,983)$ 6,643,640 39,098,623$ FUND BALANCE:

Beginning of year 20,064,941
End of year 26,708,581$
Budgeted Amounts
City of San Bernardino
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios For the Fiscal Year Ended June 30, 2025

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Measurement Period 2014-15 2015-16 201 6-17 2017-18 2018-19 Total Pension Liability
Service cost 7,442,643$ 7,155,797$ 7,045,162$ 6,941,229$ 7,264,944$ Interest on total pension liability 36,972,628 37,886,480 38,182,872 38,956,825 40,448,534 Differences between expected and actual
experience (4,628,505) (6,107,773) (8,734,519) (1,512,789) 6,286,583 Changes in assumptions (8,789,538) - 30,840,588 (2,617,743) - Changes in benefit terms - - - - - Benefit payments, including refunds of employee
contributions (25,414,126) (27,022,461) (29,607,481) (30,834,523) (32,132,357) Net change in total pension liability 5,583,102 11,912,043 37,726,622 10,932,999 21,867,704 Total pension liability - beginning 505,706,114 511,289,216 523,201,259 560,927,881 571,860,880 Total pension liability - ending (a) 511,289,216$ 523,201,259$ 560,927,881$ 571,860,880$ 593,728,584$ Plan fiduciary net position
Contributions - employer 8,328,349$ 9,535,349$ 9,782,993$ 11,868,160$ 13,870,437$ Contributions - employee 3,362,371 3,307,239 3,005,285 3,003,123 3,255,149 Investment income (net of admin expenses) 8,671,204 2,060,677 41,369,230 33,535,039 26,959,611 Benefit payments (25,414,126) (27,022,461) (29,607,481) (30,834,523) (32,132,357) Other (435,431) (230,854) (553,567) (1,808,998) (294,423) Net change in plan fiduciary net position (5,487,633) (12,350,050) 23,996,460 15,762,801 11,658,417 Plan fiduciary net position - beginning 392,005,008 386,517,375 374,167,325 398,163,785 413,926,586 Plan fiduciary net position - ending (b) 386,517,375$ 374,167,325$ 398,163,785$ 413,926,586$ 425,585,003$ Net pension liability - ending (a)-(b) 124,771,841$ 149,033,934$ 162,764,096$ 157,934,294$ 168,143,581$ Plan fiduciary net position as a percentage of the
total pension liability 75.60% 71.51% 70.98% 72.38% 71.68% Covered payroll 42,405,805$ 41,939,966$ 37,664,590$ 37,507,992$ 38,879,075$ Net pension liability as a percentage of
covered payroll 294.23% 355.35% 432.14% 421.07% 432.48% City Miscellaneous Plan - 53
As of June 30, 2025
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, 2025

- 123 -
Measurement Period 2019-20 2020-21 2021-22 2022-23 2023-24 Total Pension Liability
Service cost 7,172,248$ 6,924,948$ 8,097,764$ 9,004,227$ 9,625,422$ Interest on total pension liability 41,512,677 42,640,458 43,069,901 44,442,513 45,887,994 Differences between expected and actual
experience 510,761 2,081,221 (4,634,854) 5,019,737 5,725,088 Changes in assumptions - - 18,631,953 - - Changes in benefit terms - - - 903,765 - Benefit payments, including refunds of employee
contributions (34,457,162) (35,281,521) (37,353,487) (37,949,459) (39,117,364) Net change in total pension liability 14,738,524 16,365,106 27,811,277 21,420,783 22,121,140 Total pension liability - beginning 593,728,584 608,467,108 624,832,214 652,643,491 674,064,274 Total pension liability - ending (a) 608,467,108$ 624,832,214$ 652,643,491$ 674,064,274$ 696,185,414$ Plan fiduciary net position
Contributions - employer 15,690,224$ 17,344,103$ 18,615,559$ 20,980,767$ 21,679,752$ Contributions - employee 3,091,604 3,183,832 3,687,197 3,922,981 4,480,533 Investment income (net of admin expenses) 21,097,475 96,431,828 (38,496,139) 28,223,095 45,125,915 Benefit payments (34,457,162) (35,281,521) (37,353,487) (37,949,459) (39,117,364) Other (599,970) (429,951) (303,525) (336,648) (384,058) Net change in plan fiduciary net position 4,822,171 81,248,291 (53,850,395) 14,840,736 31,784,778 Plan fiduciary net position - beginning 425,585,003 430,407,174 511,655,465 457,805,070 472,645,806 Plan fiduciary net position - ending (b) 430,407,174$ 511,655,465$ 457,805,070$ 472,645,806$ 504,430,584$ Net pension liability - ending (a)-(b) 178,059,934$ 113,176,749$ 194,838,421$ 201,418,468$ 191,754,830$ Plan fiduciary net position as a percentage of the
total pension liability 70.74% 81.89% 70.15% 70.12% 72.46% Covered payroll 40,068,424$ 38,751,808$ 41,935,598$ 47,440,606$ 52,226,923$ Net pension liability as a percentage of
covered payroll 444.39% 292.06% 464.61% 424.57% 367.16% Notes to Schedule:

City Miscellaneous Plan - 53
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: There were no assumption changes in 2023 or 2024. In 2022, the accounting 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.

As of June 30, 2025
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, 2025

- 124 -

Measurement Period 2014-15 2015-16 2016-17 2017-18 2018-19 Total Pension Liability
Service cost 9,902,473$ 9,581,356$ 10,668,244$ 7,839,902$ 8,269,399$ Interest on total pension liability 50,392,288 52,179,027 53,181,646 54,332,493 56,383,004 Differences between expected and actual
experience (5,975,828) 104,464 (6,077,710) (652,443) 10,170,711 Changes in assumptions (12,404,993) - 44,897,552 (3,779,819) - Changes in benefit terms - - - - - Benefit payments, including refunds of employee
contributions (36,206,443) (37,558,743) (41,247,705) (42,567,625) (45,191,159) Net change in total pension liability 5,707,497 24,306,104 61,422,027 15,172,508 29,631,955 Total pension liability - beginning 690,255,521 695,963,018 720,269,122 781,691,149 796,863,657 Total pension liability - ending (a) 695,963,018$ 720,269,122$ 781,691,149$ 796,863,657$ 826,495,612$ Plan fiduciary net position
Contributions - employer 12,378,212$ 13,617,432$ 11,308,879$ 16,518,568$ 19,557,103$ Contributions - employee 3,351,555 3,539,959 2,363,002 2,505,657 2,698,657 Investment income (net of admin expenses) 11,406,991 2,507,728 54,968,745 43,963,504 35,115,561 Benefit payments (36,206,443) (37,558,743) (41,247,705) (42,567,625) (45,191,159) Other (579,829) (311,119) (730,424) (2,347,257) (383,710) Net change in plan fiduciary net position (9,649,514) (18,204,743) 26,662,497 18,072,847 11,796,452 Plan fiduciary net position - beginning 522,576,698 512,927,184 494,722,441 521,384,938 539,457,785 Plan fiduciary net position - ending (b) 512,927,184$ 494,722,441$ 521,384,938$ 539,457,785$ 551,254,237$ Net pension liability - ending (a)-(b) 183,035,834$ 225,546,681$ 260,306,211$ 257,405,872$ 275,241,375$ Plan fiduciary net position as a percentage of the
total pension liability 73.70% 68.69% 66.70% 67.70% 66.70% Covered payroll 36,543,185$ 35,506,229$ 35,443,848$ 25,845,264$ 26,493,446$ Net pension liability as a percentage of
covered payroll 500.88% 635.23% 734.42% 995.95% 1038.90% As of June 30, 2025
City Safety Plan - 54
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, 2025

- 125 -
Measurement Period 2019-20 2020-21 2021 -22 2022-23 2023-24 Total Pension Liability
Service cost 8,536,838$ 8,436,388$ 9,379,086$ 9,864,774$ 10,692,054$ Interest on total pension liability 58,083,732 59,605,320 60,302,761 62,487,151 64,339,772 Differences between expected and actual
experience 5,375,486 3,095,379 (7,429,800) 13,680,825 8,605,486 Changes in assumptions - - 29,470,625 - - Changes in benefit terms - - - 376,158 - Benefit payments, including refunds of employee
contributions (47,559,242) (49,210,313) (51,273,005) (53,374,715) (55,668,240) Net change in total pension liability 24,436,814 21,926,774 40,449,667 33,034,193 27,969,072 Total pension liability - beginning 826,495,612 850,932,426 872,859,200 913,308,867 946,343,060 Total pension liability - ending (a) 850,932,426$ 872,859,200$ 913,308,867$ 946,343,060$ 974,312,132$ Plan fiduciary net position
Contributions - employer 22,641,381$ 25,180,992$ 27,474,318$ 30,412,551$ 31,167,006$ Contributions - employee 3,090,593 3,079,181 3,202,156 3,616,358 4,104,620 Investment income (net of admin expenses) 27,272,832 125,115,793 (49,997,019) 36,457,434 58,022,900 Benefit payments (47,559,242) (49,210,313) (51,273,005) (53,374,715) (55,668,240) Other (777,133) (555,333) (426,056) (432,765) (492,982) Net change in plan fiduciary net position 4,668,431 103,610,320 (71,019,606) 16,678,863 37,133,304 Plan fiduciary net position - beginning 551,254,237 555,922,668 659,532,988 588,513,382 605,192,245 Plan fiduciary net position - ending (b) 555,922,668$ 659,532,988$ 588,513,382$ 605,192,245$ 642,325,549$ Net pension liability - ending (a)-(b) 295,009,758$ 213,326,212$ 324,795,485$ 341,150,815$ 331,986,583$ Plan fiduciary net position as a percentage of the
total pension liability 65.33% 75.56% 64.44% 63.95% 65.93% Covered payroll 29,086,331$ 29,313,370$ 29,774,877$ 31,791,087$ 34,203,628$ Net pension liability as a percentage of
covered payroll 1014.26% 727.74% 1090.84% 1073.10% 970.62% Notes to Schedule:

Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes t
hat occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: There were no assumption changes in 2023 or 2024. In 2022, the accounting discount rate was reduced from 7.15 percent to 6.90 percent. None in 2019-2021. In 2018, demographic assumptions and inflation rate were c
hanged 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.

As of June 30, 2025
City Safety Plan - 54
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, 2025

- 126 -
Measurement period, year ended 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 6/30/2024 Plan's proportion of the net pension liability 0.0653236% 0.0654569% 0.0645053% 0.0650604% 0.0649982% 0.0644167% 0.2622529% 0.1696069% 0.1638920% 0.1687669% Plan's proportionate share of the net pension liability 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$ 8,162,593$ Plan's covered payroll 464,530$ 89,988$ 89,988$ 92,688$ 95,468$ 97,975$ 97,618$ -$ -$ -$ Plan's proportionate share of the net pension liability as a percentage of covered payroll 965.22% 6294.22% 7108.90% 6764.00% 6976.55% 7153.68% 5101.17% 0.00% 0.00% 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$ 14,298,674$ 14,166,701$ 13,391,929$ Plan's fiduciary net position as a percentage of the total pension liability 78.00% 72.17% 70.43% 70.90% 69.36% 68.02% 77.47% 64.31% 63.35% 62.13% Plan's proportionate share of aggregate employer
contributions 19,656$ 280,440$ 313,887$ 347,304$ 410,556$ 420,125$ 469,389$ 524,033$ 589,515$ 561,529$ For the Year Ended June 30, 2025
Successor Agency Plan - 1414
City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension
For the Fiscal Year Ended June 30, 2025

- 127 -
Contributions in Contributions
R
elation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 1 (Excess) Payroll Payroll 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) - 52,226,923 41.51% 2024-25 24,255,176 (24,255,176) - 53,689,277 45.18% Notes to Schedule
Valuation date: 6/30/2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period For details, see June 30, 2021 Funding Valuation Report Asset valuation method Fair Value of Assets. For details, see June 30, 2021 Funding Valuation Report.

Inflation 2.300%
S
alary increases Varies by entry age and service
Payroll growth 2.800%
Investment rate of return 6.80%, net of pension plan investment and administrative expenses, including inflation Retirement age
Mortality
1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employer may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

As of June 30, 2025
City Miscellaneous Plan - 53
The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mo
rtality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension (Continued)
For the Fiscal Year Ended June 30, 2025

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Contributions in Contributions
R
elation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 1 (Excess) Payroll Payroll 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 31,167,006 (31,167,006) - 34,203,628 91.12% 2024-25 35,191,393 (35,191,393) - 35,161,330 100.09% Notes to Schedule
Valuation date: 6/30/2023
Methods and assumptions used to determine contribution rates:

Inflation 2.300%
S
alary increases Varies by entry age and service
Payroll growth 2.800%
Investment rate of return 6.80%, net of pension plan investment and administrative expenses, including inflation Retirement age
Mortality
1 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.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report.

As of June 30, 2025
City Safety Plan - 54
The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mo
rtality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

City of San Bernardino
Required Supplementary Information
Schedule of Contributions – Pension (Continued)
For the Fiscal Year Ended June 30, 2025

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Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Employer's Percentage of Determined Determined Deficiency Covered Covered
Fiscal Year Contribution 1 Contribution (Excess) Payroll Payroll 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% 2024-25 855,121 (855,121) - - 0.00% Notes to Schedule
Valuation date: 6/30/2023
Change in Benefit Terms: None
As of June 30, 2025
1 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.

Changes in Assumptions: There were no assumption changes in 2023 or 2024. In 2022, the discount rate was reduced from

7.15 percent to 6.90 percent. There were no changes in assumptions in 2019-2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Successor Agency Plan - 1414
City of San Bernardino
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios For the Fiscal Year Ended June 30, 2025

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Measurement period, year ended: 2016-17 1 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Total OPEB liability
Service cost 1, 036,000$ 1,067,080$ 1,312,778$ 1,352,161$ 956,228$ 984,915$ 809,659$ 833,949$ Interest 2,322,000 2,449,681 2,512,269 2,651,878 2,240,570 2,336,141 2,066,543 2,140,288 Changes of benefit terms - (640,849) - - - - - - Differences between expected and actual experience - 523,834 - (6,747,960) - (3,119,394) 71,864 1,788,888 Changes of assumptions - (1,065,369) - (1,784,735) - (2,619,432) - 635,216 Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) (1,658,421) (1,654,270) (1,738,412) (1,702,700) (1,882,172) Net change in total OPEB liability 2,240,000 779,988 2,222,115 (6,187,077) 1,542,528 (4,156,182) 1,245,366 3,516,169 Total OPEB liability - beginning 36,665,000 38,905,000 39,684,988 41,907,103 35,720,026 37,262,554 33,106,372 34,351,738 Total OPEB liability - ending (a) 38,905,000$ 39,684,988$ 41,907,103$ 35,720,026$ 37,262,554$ 33,106,372$ 34,351,738$ 37,867,907$ OPEB fiduciary net position
Contributions - employer 2,602,000$ 2,673,389$ 2,615,932$ 2,602,421$ 2,737,270$ 1,738,412$ 2,331,720$ 1,882,172$ Net investment income 2,204,000 1,848,262 2,036,956 1,564,423 7,886,756 (4,469,586) 2,970,846 5,369,928 Benefit payments, including refunds of member contributions (1,118,000) (1,554,389) (1,602,932) (1,658,421) (1,654,270) (1,738,412) (1,702,700) (1,882,172) Administrative expense (7,000) (7,855) (8,061) (8,657) (10,052) (11,068) (10,161) (11,119) Net change in plan fiduciary net position 3,681,000 2, 959,407 3,041,895 2,499,766 8,959,704 (4,480,654) 3,589,705 5,358,809 Plan fiduciary net position - beginning 18,667,000 22, 348,000 25,307,407 28,349,302 30,849,068 39,808,772 35,328,118 38,917,823 Plan fiduciary net position - ending (b) 22,348,000 25, 307,407 28,349,302 30,849,068 39,808,772 35,328,118 38,917,823 44,276,632 Plan net OPEB liability - ending (a) - (b) 16,557,000$ 14, 377,581$ 13,557,801$ 4,870,958$ (2,546,218)$ (2,221,746)$ (4,566,085)$ (6,408,725)$ 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% 116.92% Covered payroll2 19,132,000$ 16,768,495$ 17,981,957$ 19,691,462$ 21,203,035$ 25,597,944$ 28,172,331$ 26,706,880$ Plan net OPEB liability as a percentage of covered payroll 86.54% 85. 74% 75.40% 24.74% -12.01% -8.68% -16.21% -24.00% 1 Historical information is presented only for measurement periods for which GASB 75 is applicable. 2 Contributions are not based on employee compensation; therefore, covered-employee payroll is used.

Changes in assumptions: In 2025, the accounting discount rate was changed from 6.25 percent to 6.75 percent.

Benefit changes: None
City of San Bernardino
Required Supplementary Information
Schedule of Contributions – OPEB
For the Fiscal Year Ended June 30, 2025

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Contributions in Contributions
Relation to the as a
Actuarially Actuarially Contribution Percentage of
Determined Determined Deficiency Covered Covered
Fiscal Year Contribution Contribution 2
(Excess) Payroll Payroll
2017-18 1
2,592,000$ (2,673,389)$ (81,389)$ 16,768,495$ 15.94% 2018-19 2,760,000 ( 2,615,932) 144,068 17,981,957 14.55% 2019-20 2,728,000 (2,602,421) 125,579 19,691,462 13.22% 2020-21 1,652,000 (2,737,270) (1,085,270) 21,203,035 12.91% 2021-22 1,572,000 (1,738,412) (166,412) 25,597,944 6.79% 2022-23 1,559,000 (2,327,743) (768,743) 28,172,331 8.26% 2023-24 898,426 (1,783,630) (885,204) 26,706,880 6.68% 2024-25 925,317 (1,948,530) (1,023,213) 30,934,538 6.30% Notes to Schedule
Valuation date: 6/30/2024
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method/period
Asset valuation method Fair value; investment gains/losses recognized over 5-year rolling period Inflation 2.50%
Discount rate 6.75%
Healthcare cost-trend rates
Mortality
Mortality improvement 80% of Scale MP-2020
1 Historical information is presented only for measurement periods for which GASB 75 is applicable. 2 Employers are a ssumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.

Level percentage of pay
Non-Medicare - 8.6% for 2025, decreasing to an ultimate rate of 3.9% in 2076; Medicare - 6.3% for 2025, decreasing to an ultimate rate of 3.9% in 2076 CalPERS 2021 Experience Study
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2024-25 were from the June 30, 2024 actuarial valuation.

COMBINING FINANCIAL STATEMENTS AND SCHEDULES
City of San Bernardino
Non-Major Governmental Funds

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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.

City of San Bernardino
Non-Major Governmental Funds

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Special Revenue Funds (Continued)
Measure I Fund – This fund is used to account for the local street improvements as provided for by the San Bernardino County Measure I Sales Tax.

Sewerline Maintenance Fund – This fund is used to account for the cost of maintaining sewer lines as paid for from a portion of sewer revenues.

Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Verdemont Fund – This fund is used to account for development fees collected for improvements in the Verdemont area.

Park Construction Fee Fun d – This fund is used for park land acquisition and development.

Principal revenue sources are parks acquisition and development fees collected from developers and state revenues for park development.

Sewerline 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 Fun d – This fund is used to account for assessment districts related to improvement, construction, and maintenance, including landscape maintenance, sewerline maintenance, and security paid by assessments on properties.

Cultural Development 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.

City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025

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Low and
Moderate
Income
Opioid Asset Housing A lternative
Settlement Cable TV Seizure Fund Transportation
ASSETS
Cash and investments 1,501,583$ 1,380,022$ 2,975,027$ 7,772,217$ 843,819$ Receivables:

Accounts, Net 375,173 36,929 - - - Interest 2,476 2,301 4,928 12,864 1,323 Due from other governments - - - - 78,854 Prepaid items - 1,655 637 - - Property held for resale - - - 12,425,798 - Total assets 1,879,232$ 1,420,907$ 2,980,592$ 20,210,879$ 923,996$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable -$ 7,200$ 145$ 18,211$ 3,363$ Accrued liabilities - - - - - Payroll and related liabilities - - - - - Deposits payable - - - - - Retentions payable - - - - - Unearned revenue 1,809,535 - - - - Total liabilities 1,809,535 7,200 145 18,211 3,363 Deferred inflows of resources:

Unavailable revenues - - - - 78,854 Total deferred inflows of resources - - - - 78,854 Fund Balances:

Nonspendable - 1,655 637 12,425,798 - Restricted
Housing - - - 7,766,870 - Street improvements - - - - - Cable TV - 1,412,052 - - - Law enforcement - - 2,979,810 - - Transportation - - - - 841,779 Sewer - - - - - Capital projects - - - - - O
pioid Settlement 69,697 - - - - Unassigned (deficit) - - - - - Total fund balances 69,697 1,413,707 2,980,447 20,192,668 841,779 Total liabilities, deferred inflows of
resources, and fund balances 1,879,232$ 1,420,907$ 2, 980,592$ 20,210,879$ 923,996$ Special Revenue
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025

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RMRA Special Traffic Measure I Sewerline
Gas Tax Gas Tax Safety Fund Maintenance
ASSETS
Cash and investments 13,191,011$ 5,148,243$ 6,824,495$ 18,113,907$ 25,937$ Receivables:

Accounts, Net - - - - - Interest 21,137 8,347 11,180 29,161 43 Due from other governments 1,089,413 541,051 137,921 1,399,147 - Prepaid items - - - - - Property held for resale - - - - - Total assets 14,301,561$ 5,697,641$ 6,973,596$ 19,542,215$ 25,980$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 952$ 778,494$ -$ 956,253$ -$ Accrued liabilities - - - - - Payroll and related liabilities - 58,693 - - - Deposits payable - - - - - Retentions payable - - - - - Unearned revenue - - - - - Total liabilities 952 837,187 - 956,253 - Deferred inflows of resources:

Unavailable revenues - - - 523,552 - Total deferred inflows of resources - - - 523,552 - Fund Balances:

Nonspendable - - - - - Restricted
Housing - - - - - Street improvements 14,300,609 4,860,454 - 18,062,410 - Cable TV - - - - - Law enforcement - - - - - Transportation - - 6,973,596 - - Sewer - - - - 25,980 Capital projects - - - - - Opioid Settlement - - - - - Unassigned (deficit) - - - - - Total fund balances 14,300,609 4,860,454 6,973,596 18,062,410 25,980 Total liabilities, deferred inflows of
resources, and fund balances 14,301,561$ 5,697,641$ 6,973,596$ 19,542,215$ 25,980$ Special Revenue
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025

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Park Storm
Construction Sewerline Drain Special
Verdemont Fee Construction Construction Assessments
ASSETS
Cash and investments 413,765$ 163,367$ 158,864$ 15,683,234$ 1,622,275$ Receivables:

Accounts, Net - - - 47,896 - Interest 685 270 263 25,917 - Due from other governments - - - - 10,118 Prepaid items - - - - - Property held for resale - - - - - Total assets 414,450$ 163,637$ 159,127$ 15,757,047$ 1,632,393$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ 160,658$ 199,877$ Accrued liabilities - - - - - Payroll and related liabilities - - - 1,456 - Deposits payable - - - - 34,569 Retentions payable - - - 5,397 - Unearned revenue - - - - - Total liabilities - - - 167,511 234,446 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 414,450 163,637 159,127 15,589,536 1,397,947 Opioid Settlement - - - - - Unassigned (deficit) - - - - - Total fund balances 414,450 163,637 159,127 15,589,536 1,397,947 Total liabilities, deferred inflows of
resources, and fund balances 414,450$ 163,637$ 159,127$ 15,757,047$ 1,632,393$ Capital Projects
City of San Bernardino
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025

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Cultural Total
Development Prop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements Street Funds
ASSETS
Cash and investments 5,852,625$ 27,520,679$ 468,979$ 71,929$ 109,731,978$ Receivables:

Accounts, Net - 175,328 - - 635,326 Interest 9,696 49,086 776 119 180,572 Due from other governments - - - - 3,256,504 Prepaid items - - - - 2,292 Property held for resale - - - - 12,425,798 Total assets 5,862,321$ 27,745,093$ 469,755$ 72,048$ 126,232,470$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 140,768$ 1,122,375$ -$ -$ 3,388,296$ Accrued liabilities 11,204 - - - 11,204 Payroll and related liabilities - - - - 60,149 Deposits payable - - - - 34,569 Retentions payable 2,049 48,800 - - 56,246 Unearned revenue - - - - 1,809,535 Total liabilities 154,021 1,171,175 - - 5,359,999 Deferred inflows of resources:

Unavailable revenues - - - - 602,406 Total deferred inflows of resources - - - - 602,406 Fund Balances:

Nonspendable - - - - 12,428,090 Restricted
Housing - - - - 7,766,870 Street improvements - - - - 37,223,473 Cable TV - - - - 1,412,052 Law enforcement - - - - 2,979,810 Transportation - - - - 7,815,375 Sewer - - - - 25,980 Capital projects 5,708,300 26,573,918 469,755 72,048 50,548,718
Opioid Settlement - - - - 69,697 Unassigned (deficit) - - - - - Total fund balances 5,708,300 26,573,918 469,755 72,048 120,270,065 Total liabilities, deferred inflows of
resources, and fund balances 5,862,321$ 27,745,093$ 469,755$ 72,048$ 126,232,470$ (Concluded)
Capital Projects
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025

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Low and
Moderate
Income
O
pioid Asset Housing Alternative
Settlement Cable TV Seizure Fund Transportation
REVENUES:

Taxes -$ 162,724$ -$ -$ -$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 48,860 65, 355 131,002 577,034 29,758 Intergovernmental - 1,460 224,461 210,977 298,331 Charges for services - - - - - Other revenues - - - - - Total revenues 48,860 229,539 355,463 788,011 328,089 EXPENDITURES:

Current:

General government - 230,520 - - 10,710 Public safety - - 117,183 - - Public works - - - - 35,746 Culture and recreation - - - - - Community development - - - 59,784 - Community service - - - - - Total expenditures - 230,520 117,183 59,784 46,456

REVENUES OVER
(UNDER) EXPENDITURES 48,860 (981) 238,280 728,227 281,633 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - CHANGE IN FUND BALANCES 48,860 (981) 238,280 728,227 281,633 FUND BALANCES (DEFICIT):

Beginning of year 20,837 1,414,688 2,742,167 19,464,441 560,146 End of year 69,697$ 1,413,707$ 2,980,447$ 20,192,668$ 841,779$ Special Revenue
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025

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RMRA Special Traffic Measure I Sewerline
Gas Tax Gas Tax Safety Fund Maintenance
REVENUES:

Taxes -$ -$ -$ 5,830,980$ -$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - 859,834 - - Use of money and property 493,759 199,806 282,435 593,919 1,191 Intergovernmental 6,182,100 6,337,111 11,154 2,679,402 - Charges for services - - - - - Other revenues - - - - - Total revenues 6,675,859 6,536,917 1,153,423 9,104,301 1,191 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works 1,976,459 5,354,791 - 1,430,684 - Culture and recreation - - - - - Community development - - - 202,439 - Community service - - - - - Total expenditures 1,976,459 5,354,791 - 1,633,123 -

REVENUES OVER
(UNDER) EXPENDITURES 4,699,400 1,182,126 1,153,423 7,471,178 1,191 OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - CHANGES IN FUND BALANCES 4,699,400 1,182,126 1,153,423 7,471,178 1,191 FUND BALANCES (DEFICIT):

Beginning of year 9,601,209 3,678,328 5,820,173 10,591,232 24,789 End of year 14,300,609$ 4,860,454$ 6,973,596$ 18,062,410$ 25,980$ Special Revenue
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025

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Park Storm
Construction Sewerline Drain Special
Verdemont Fee Construction Construction Assessments
REVENUES:

Taxes -$ -$ -$ -$ 1,480,571$ Licenses and Permits - - - - - Impact fees - - - - - Fines and forfeitures - - - - - Use of money and property 18,994 7,499 7,276 699,118 - Intergovernmental - - - - - Charges for services - - - 1,000,087 - Other revenues - - - - - Total revenues 18,994 7,499 7,276 1,699,205 1,480,571 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works - - - 376,838 1,215,451 Culture and recreation - - - - - Community development - - - - - Community service - - - - - Total expenditures - - - 376,838 1,215,451

REVENUES OVER
(UNDER) EXPENDITURES 18,994 7,499 7,276 1,322,367 265,120 OTHER FINANCING SOURCES (USES):

Transfers in - - - - 145,653 Transfers out - - - - - Total other financing sources (uses) - - - - 145,653 CHANGES IN FUND BALANCES 18,994 7,499 7,276 1,322,367 410,773 FUND BALANCES (DEFICIT):

Beginning of year 395,456 156,138 151,851 14,267,169 987,174 End of year 414,450$ 163,637$ 159,127$ 15,589,536$ 1,397,947$ Capital Projects
City of San Bernardino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025

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Cultural Total
Development Prop 1B Other
Construction Impact Public Local Governmental
Fee Fees Improvements Street Funds
REVENUES:

Taxes -$ -$ -$ -$ 7,474,275$ Licenses and Permits 108,154 - - - 108,154 Impact fees - 3,251,233 - - 3,251,233 Fines and forfeitures - - - - 859,834 Use of money and property 267,539 1,248,973 21,541 3,302 4,697,361 Intergovernmental - 50,000 - - 15,994,996 Charges for services - - - - 1,000,087 Other revenues - - - - - Total revenues 375,693 4,550,206 21,541 3,302 33,385,940 EXPENDITURES:

Current:

General government - - - - 241,230 Public safety - - - - 117,183 Public works 239,351 1,856,543 - - 12,485,863 Culture and recreation - - - - - Community development - 1,102,588 - - 1,364,811 Community service - - - - - Total expenditures 239,351 2,959,131 - - 14,209,087

REVENUES OVER
(UNDER) EXPENDITURES 136,342 1,591,075 21,541 3,302 19,176,853 OTHER FINANCING SOURCES (USES):

Transfers in - - - - 145,653 Transfers out - - - - - Total other financing sources (uses) - - - - 145,653 CHANGES IN FUND BALANCES 136,342 1,591,075 21,541 3,302 19,322,506 FUND BALANCES (DEFICIT):

Beginning of year 5,571,958 24,982,843 448,214 68,746 100,947,559 End of year 5,708,300$ 26,573,918$ 469,755$ 72,048$ 120,270,065$ (Concluded)
Capital Projects
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cable TV Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 142 -
Variance with
Final Budget
Actual I ncrease
Original Final Amounts (Decrease)
REVENUES:

Taxes 278,000$ 278,000$ 162,724$ (115,276)$ Use of money and property - - 65,355 65,355 Intergovernmental 7,000 7,000 1,460 (5,540) Total revenues 285,000 285,000 229,539 (55,461) EXPENDITURES:

Current:

General government
Nondepartmental 285,000 285,000 230,520 54,480 Total expenditures 285,000 285,000 230,520 54,480 CHANGE IN FUND BALANCE -$ -$ (981) (981)$ FUND BALANCE:

Beginning of year 1,414,688
End of year 1,413,707$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Asset Seizure Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

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Variance with
Final Budget
Actual I ncrease
Original Final Amounts (Decrease)
REVENUES:

Use of money and property 7,000$ 7,000$ 131,002$ 124,002$ Intergovernmental 249,000 249,000 224,461 (24,539) Total revenues 256,000 256,000 355,463 99,463 EXPENDITURES:

Current:

Public safety
Police 249,000 249,000 117,183 131,817 Total expenditures 249,000 249,000 117,183 131,817

REVENUES OVER
(UNDER) EXPENDITURES 7,000 7,000 238,280 231,280 CHANGE IN FUND BALANCE 7,000$ 7,000$ 238,280 231,280$ FUND BALANCE:

Beginning of year 2,742,167
End of year 2,980,447$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Low and Moderate Income Housing Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

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Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 577,034$ 577,034$ Intergovernmental 150,000 150,000 210,977 60,977 Total revenues 150,000 150,000 788,011 638,011 EXPENDITURES:

Current:

Community development 122,432 565,932 59,784 506,148 Total expenditures 122,432 565,932 59,784 506,148

REVENUES OVER
(UNDER) EXPENDITURES 27,568 (415,932) 728,227 131,863 CHANGE IN FUND BALANCE 27,568$ (415,932)$ 728,227 1,144,159$ FUND BALANCE:

Beginning of year 19,464,441
End of year 20,192,668$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Alternative Transportation Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 145 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 29,758$ 29,758$ Intergovernmental 291,500 291,500 298,331 6,831 Total revenues 291,500 291,500 328,089 36,589 EXPENDITURES:

Current:

General government
City manager 12,400 12,400 10,710 1,690 Public works 279,100 565,100 35,746 529,354 Total expenditures 291,500 577,500 46,456 531,044

REVENUES OVER
(UNDER) EXPENDITURES - (286,000) 281,633 (494,455) CHANGE IN FUND BALANCE -$ (286,000)$ 281,633 567,633$ FUND BALANCE:

Beginning of year 560,146
End of year 841,779$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual RMRA Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 146 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 493,759$ 493,759$ Intergovernmental 5,000,000 5,000,000 6,182,100 1,182,100 Total revenues 5,000,000 5,000,000 6,675,859 1,675,859 EXPENDITURES:

Current:

Public works - 13,978,324 1,976,459 12,001,865 Total expenditures - 13,978,324 1,976,459 12,001,865

REVENUES OVER
(UNDER) EXPENDITURES 5,000,000 (8,978,324) 4,699,400 13,677,724 CHANGE IN FUND BALANCE 5,000,000$ (8,978,324)$ 4,699,400 13,677,724$ FUND BALANCE:

Beginning of year 9,601,209
End of year 14,300,609$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Gas Tax Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 147 -
Variance with
Final Budget
A
ctual Increase
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 199,806$ 199,806$ Intergovernmental 5,750,000 5,750,000 6,337,111 587,111 Total revenues 5,750,000 5,750,000 6,536,917 786,917 EXPENDITURES:

Current:

Public works 4,302,941 9,531,294 5,354,791 4,176,503 Total expenditures 4,302,941 9,531,294 5,354,791 4,176,503

REVENUES OVER
(UNDER) EXPENDITURES 1,447,059 (3,781,294) 1,182,126 (3,389,586) CHANGE IN FUND BALANCE 1,447,059$ (3,781,294)$ 1,182,126 4,963,420$ FUND BALANCE:

Beginning of year 3,678,328
End of year 4,860,454$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic Safety Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 148 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Fines and forfeitures 750,000$ 750,000$ 859,834$ 109,834$ Use of money and property - - 282,435 282,435 Intergovernmental 3,000 3,000 11,154 8,154 Total revenues 753,000 753,000 1,153,423 400,423 CHANGE IN FUND BALANCE 753,000$ 753,000$ 1,153,423 400,423$ FUND BALANCE:

Beginning of year 5,820,173
End of year 6,973,596$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure I Special Revenue Fund
For the Fiscal Year Ended June 30, 2025

- 149 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Taxes 5,968,975$ 5,968,975$ 5,830,980$ (137,995)$ Use of money and property - - 593,919 593,919 Intergovernmental - - 2,679,402 2,679,402 Total revenues 5,968,975 5,968,975 9,104,301 3,135,326 EXPENDITURES:

Current:

Public works - 10,965,570 1,430,684 9,534,886 Community development - 1,000,000 202,439 797,561 Total expenditures - 11,965,570 1,633,123 10,332,447 CHANGE IN FUND BALANCE 5,968,975$ (5,996,595)$ 7,471,178 13,467,773$ FUND BALANCE:

Beginning of year 10,591,232
End of year 18,062,410$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Storm Drain Construction Capital Projects Fund
For the Fiscal Year Ended June 30, 2025

- 150 -
Variance with
Final Budget
Actual I ncrease
Original Final Amounts (Decrease)
REVENUES:

Use of money and property -$ -$ 699,118$ 699,118$ Charges for services 1,800,000 1,800,000 1,000,087 (799,913) Total revenues 1,800,000 1,800,000 1,699,205 (100,795) EXPENDITURES:

Current:

Public works - 12,885,209 376,838 12,508,371 Community development - 2,500,000 - 2,500,000 Total expenditures - 15,385,209 376,838 15,008,371 CHANGE IN FUND BALANCE 1,800,000$ (13,585,209)$ 1,322,367 14,907,576$ FUND BALANCE:

Beginning of year 14,267,169
End of year 15,589,536$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Assessments Capital Projects Fund
For the Fiscal Year Ended June 30, 2025

- 151 -
Variance with
Final Budget
Actual I ncrease
Original Final Amounts (Decrease)
REVENUES:

Taxes -$ 1,452,989$ 1,480,571$ 27,582$ Total revenues - 1,452,989 1,480,571 27,582 EXPENDITURES:

Current:

Public works 11,441 1,610,083 1,215,451 394,632 Total expenditures 11,441 1,610,083 1,215,451 394,632

REVENUES OVER
(UNDER) EXPENDITURES (11,441) (157,094) 265,120 (367,050) OTHER FINANCING SOURCES (USES):

Transfers in - 145,653 145,653 - Total other financing sources (uses) - 145,653 145,653 - CHANGE IN FUND BALANCE (11,441)$ (11,441)$ 410,773 422,214$ FUND BALANCE (DEFICIT):

Beginning of year 987,174
End of year 1,397,947$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cultural Development Construction Fee Capital Projects Fund For the Fiscal Year Ended June 30, 2025

- 152 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Licenses and Permits 656,000$ 656,000$ 108,154$ (547,846)$ Use of money and property - - 267,539 267,539 Total revenues 656,000 656,000 375,693 (280,307) EXPENDITURES:

Current:

General government
Nondepartmental - 12,635 - 12,635 Public works - 3,674,925 239,351 3,435,574 Community service - 323,172 - 323,172 Total expenditures - 4,010,732 239,351 3,771,381 CHANGE IN FUND BALANCE 656,000$ (3,354,732)$ 136,342 3,491,074$ FUND BALANCE:

Beginning of year 5,571,958
End of year 5,708,300$
Budgeted Amounts
City of San Bernardino
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Impact Fees Capital Projects Fund
For the Fiscal Year Ended June 30, 2025

- 153 -
Variance with
Final Budget
Actual Increase
Original Final Amounts (Decrease)
REVENUES:

Impact fees 4,353,300$ 4,353,300$ 3,251,233$ (1,102,067)$ Use of money and property - - 1,248,973 1,248,973 Intergovernmental - - 50,000 50,000 Other revenues - - - - Total revenues 4,353,300 4,353,300 4,550,206 196,906 EXPENDITURES:

Current:

Public works - 15,255,733 1,856,543 13,399,190 Community development - 3,203,951 1,102,588 2,101,363 Total expenditures - 18,459,684 2,959,131 15,500,553 CHANGE IN FUND BALANCE 4,353,300$ (14,106,384)$ 1,591,075 15,697,459$ FUND BALANCE:

Beginning of year 24,982,843
End of year 26,573,918$
Budgeted Amounts

City of San Bernardino
Internal Service Funds

- 154 -
Internal Service Funds

Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis.

The City maintains the following Internal Service Funds for the purposes indicated:

Workers ’ Compensation Fund – This fund is for administration of the City ’s self-insurance for workers’ compensation.

Liability Insurance Fund – This fund is for the administration of the City ’s liability claims, combined self-insurance and umbrella coverage for liability.

Motorpool Fund – This fund is used to account for the maintenance and operating costs for the City’s fleet of vehicles.

Information Systems Fund – This fund is used to account for the acquisition and maintenance of the City’s computer and emergency communications systems.

City of San Bernardino
Combining Statement of Net Position
Internal Service Funds
June 30, 2025

- 155 -
Workers' Liability I nformation
Compensation Insurance Motorpool Systems Total
ASSETS
Current assets:

Cash and cash equivalents 3 ,410,456$ 42,023,298$ 460,517$ 7,974,849$ 53,869,120$ Accounts receivable, net 436,546 7,783 - - 444,329 Interest receivable 5,873 53,968 929 12,760 73,530 Due from other governments 528 - 338 - 866 Inventories - - 163,198 - 163,198 Prepaid items - 3,959 - 212,230 216,189 Total current assets 3,853,403 42,089,008 624,982 8,199,839 54,767,232 Noncurrent assets:

Depreciable capital assets, net - - 4,109,473 515,809 4,625,282 Total capital assets, net - - 4,109,473 515,809 4,625,282 Total noncurrent assets - - 4,109,473 515,809 4,625,282 Total assets 3,853,403 42,089,008 4,734,455 8,715,648 59,392,514

DEFERRED OUTFLOWS OF RESOURCES
Pension-related deferred outflows of resources 118,966 206,508 655,437 1,079,676 2,060,587 Total deferred outflows of resources 118,966 206,508 655,437 1,079,676 2,060,587

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 107,889 1,265,272 300,125 187,081 1,860,367 Payroll and related liabilities 19,205 30,788 72,460 164,725 287,178 Current portion of compensated absences 13,135 12,621 36,902 138,703 201,361 Current portion of lease liabilities - - 758,104 5,117 763,221 Current portion of claims payable 4,713,979 9,969,259 - - 14,683,238 Total current liabilities 4,854,208 11,277,940 1,167,591 495,626 17,795,365 Noncurrent liabilities:

Aggregate net pension liability 6 50,432 1,129,052 3,583,514 5,902,981 11,265,979 Compensated absences 30,647 29,448 86,103 323,640 469,838 Lease liabilities - - 2,044,512 5,263 2,049,775 Claims payable 15,842,228 30,128,621 - - 45,970,849 Total noncurrent liabilities 16,523,307 31,287,121 5,714,129 6,231,884 59,756,441 Total liabilities 21,377,515 42,565,061 6,881,720 6,727,510 77,551,806

NET POSITION (DEFICIT)
Net investment in capital assets - - 1,306,857 505,429 1,812,286 Unrestricted (deficit) (17,405,146) (269,545) (2,798,685) 2,562,385 (17,910,991) Total net position (17,405,146)$ (269,545)$ (1,491,828)$ 3,067,814$ (16,098,705)$ City of San Bernardino
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Fiscal Year Ended June 30, 2025

- 156 -

Workers' Liability Information
Compensation Insurance Motorpool Systems Total
OPERATING REVENUES:

Charges for services 6,026,266$ 30,256,822$ 5,485,055$ 9,036,518$ 50,804,661$ Other operating revenues 31,466 62,706 - - 94,172 Total operating revenues 6,057,732 30,319,528 5,485,055 9,036,518 50,898,833 OPERATING EXPENSES:

Cost of sales and services 1,907,294 5,649,500 4,905,471 7,081,770 19,544,035 Claims expense 4,033,439 25,956,286 - - 29,989,725 Amortization - - 817,344 145,100 962,444 Depreciation - - 325,822 95,114 420,936 Total operating expenses 5,940,733 31,605,786 6,048,637 7,321,984 50,917,140 Operating income (loss) 116,999 (1,286,258) (563,582) 1,714,534 (18,307) NONOPERATING REVENUES (EXPENSES):

Investment income (expense) 174,661 1,286,259 2,152 311,877 1,774,949 Interest expense and fiscal charges - - (134,731) (6,255) (140,986) Miscellaneous income - - 1,047 55,000 56,047 Total nonoperating revenues (expenses) 174,661 1,286,259 (131,532) 360,622 1,690,010 Income (loss) before capital
contributions and transfers 291,660 1 (695,114) 2,075,156 1,671,703 CAPITAL CONTRIBUTIONS AND TRANSFERS:

Transfers in - - 2,131,625 - 2,131,625 Total contributions and transfers - - 2,131,625 - 2,131,625 Changes in net position 291,660 1 1,436,511 2,075,156 3,803,328 NET POSITION (DEFICIT):

Beginning of year (17,689,057) (260,825) (2,977,997) 919,308 (20,008,571) Restatement (7,749) (8,721) (25,495) (117,756) (159,721) Beginning of year, as restated (17,696,806) (269,546) (3,003,492) 801,552 (20,168,292) End of year (17,405,146)$ (269,545)$ (1,566,981)$ 2,876,708$ (16,364,964)$ City of San Bernardino
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended June 30, 202

- 157 -

Workers' Liability Information
Compensation Insurance Motorpool Systems Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from user departments 5,651,702$ 30,270,549$ 5,506,375$ 9,124,851$ 50,553,477$ Nonoperating miscellaneous revenues (expenses) - - 1,047 55,000 56,047 Cash payments to suppliers for goods and services (1,586,482) (4,819,930) (3,790,890) (4,521,134) (14,718,436) Cash payments to employees for services (300,961) (443,374) (1,364,727) (3,013,278) (5,122,340) Cash payments for claims and insurance (4,430,597) (9,682,693) - - (14,113,290) Cash inflows (outflows) from other activities 31,466 62,706 - - 94,172 Net cash provided by
operating activities (634,872) 15,387,258 351,805 1,645,439 16,749,630

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition of capital assets - - (222,905) - (222,905) Principal paid on lease liabilities - - (684,298) (4,974) (689,272) Principal paid on subscription liabilities - - - (159,129) (159,129) Interest paid - - (134,731) (6,255) (140,986) Net cash (used in) capital and
related financing activities - - (1,041,934) (170,358) (1,212,292)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund borrowing - 1,587,938 (1,587,938) - - Transfers in - - 2,131,625 - 2,131,625 Net cash (used in) noncapital
financing activities - 1,587,938 543,687 - 2,131,625 CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (expense) 175,364 1,288,352 2,152 312,844 1,778,712 Net cash provided by (used in) investing activities 175,364 1,288,352 2,152 312,844 1,778,712 Net change in cash and cash equivalents (459,508) 18,263,548 (144,290) 1,787,925 19,447,675 CASH AND CASH EQUIVALENTS:

Beginning of year 3,869,964 23,759,750 604,807 6,186,924 34,421,445 End of year 3,410,456$ 42,023,298$ 460,517$ 7,974,849$ 53,869,120$

RECONCILIATION TO STATEMENT OF
NET POSITION:

Cash and cash equivalents 3,410,456$ 42,023,298$ 460,517$ 7,974,849$ 53,869,120$ Total cash and cash equivalents 3,410,456$ 42,023,298$ 460,517$ 7,974,849$ 53,869,120$ City of San Bernardino
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Fiscal Year Ended June 30, 2025

- 158 -

Workers' Liability Information
Compensation Insurance Motorpool Systems Total

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

Operating income (loss) 116,999$ (1,286,258)$ (563,582)$ 1,714,534$ (18,307)$ Nonoperating miscellaneous revenues - - 1,047 55,000 56,047 Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation and amortization - - 1,143,166 240,214 1,383,380 Changes in operating assets and liabilities:

Receivables, net (374,036) 13,727 21,658 88,333 (250,318) Due from other governments (528) - (338) (866) Inventories - - 33,171 - 33,171 Prepaid items - (3,959) 6,908 (121,124) (118,175) Pension-related deferred outflows of resources 57,998 (20,545) 364,355 444,013 845,821 Accounts payable and accrued liabilities 39,755 49,176 127,155 (163,819) 52,267 Payroll and related liabilities 10,307 13,499 7,683 17,047 48,536 Aggregate net pension liability (110,124) 329,824 (799,352) (645,536) (1,225,188) Compensated absences 22,748 19,077 14,737 23,953 80,515 Claims payable (397,158) 16,273,593 - - 15,876,435 Pension-related deferred inflows of resources (833) (876) (4,803) (7,176) (13,688) Total adjustments (751,871) 16,673,516 914,340 (124,095) 16,711,890 Net cash provided by operating activities (634,872)$ 15,387,258$ 351,805$ 1,645,439$ 16,749,630$

NON-CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of right-to-use leased assets -$ -$ 1,521,885$ -$ 1,521,885$ Non-cash from capital and related financing activities -$ -$ 1,521,885$ -$ 1,521,885$

STATISTICAL SECTION

- 159 -

Net Position by Component 160
Changes in Net Position 162
Fund Balances of Governmental Funds 166
Changes in Fund Balances of Governmental Funds 168
Tax Revenues by Source - Governmental Funds 170
Assessed Value and Estimated Actual Value of Taxable Property 171 Taxable Sales by Category 172
Principal Sales Tax Remitters 174
Direct and Overlapping Property Tax Rates 175
Principal Property Taxpayers 176
Property Tax Levies and Collections 177
Top 10 Customers - Water and Sewer Treatment 178
Connections and Revenues by User Type - Water 179
Water Rate History - Minimum Monthly Charge 180
Sewer Treatment Rate History 181
Ratio of Outstanding Debt by Type 182
Ratio of General Bonded Debt Outstanding 184
Schedule of Direct and Overlapping Bonded Debt 185
Legal Debt Margin 186
Debt Service Coverage 188
Demographic and Economic Statistics 189
Budgeted Full-Time and Part-Time Positions by Function 190 Capital Asset Statistics 191
Operating Indicators by Function 192
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.

Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments.

Operating Information - These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This section of the City of San Bernardino's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Financial Trends Schedules - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity Schedules - These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes, as well as proprietary revenues for the City's Water, Sewer Treatment, and Sewer Collection services.

Debt Capacity Schedules - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

City of San Bernardino
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 160 -

2016 2017 2018 2019 2020
Governmental activities:

Net investment in capital assets 346,538,460$ 316,218,375$ 291,168,979$ 286,878,015$ 282,634,784$ Restricted 126,717,096 106,923,136 114,629,131 98,129,481 101,171,196 Unrestricted (388,600,709) (257,124,872) (306,072,272) (306,956,031) (334,495,248) Total governmental activities
net position 84,654,847$ 166,016,639$ 99,725,838$ 78,051,465$ 49,310,732$ Business-type activities:

Net investment in capital assets 235,670,073$ 250,399,481$ 248,654,078$ 259,671,498$ 255,270,720$ Restricted 58,331,021 7,944,758 8,363,037 33,999,584 0
Unrestricted (39,100,089) 29,139,574 26,485,780 2,566,757 53,071,115 Total primary government
net position 254,901,005$ 287,483,813$ 283,502,895$ 296,237,839$ 308,341,835$ Primary government:

Net investment in capital assets 582,208,533$ 566,617,856$ 539,823,057$ 546,549,513$ 537,905,504$ Restricted 185,048,117 114,867,894 122,992,168 132,129,065 101,171,196 Unrestricted (427,700,798) (227,985,298) (279,586,492) (304,389,274) (281,424,133) Total primary government
net position 339,555,852$ 453,500,452$ 383,228,733$ 374,289,304$ 357,652,567$ Fiscal Year
City of San Bernardino
Net Position by Component (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 161 -

2021 2022 2023 2024 2025
Governmental activities:

Net investment in capital assets 284,425,516$ 278,068,994$ 284,096,740$ 291,299,450$ 321,145,935$ Restricted 97,769,749 103,016,330 108,916,462 125,500,977 141,821,013 Unrestricted (305,105,274) (228,403,516) (216,955,069) (209,992,894) (229,586,215) Total governmental activities
net position 77,089,991$ 152,681,808$ 176,058,133$ 206,807,533$ 233,380,733$ Business-type activities:

Net investment in capital assets 253,288,732$ 250,216,752$ 251,609,753$ 275,842,317$ 319,558,690$ Restricted - - 2,221,746.00 4,566,085 6,408,725 Unrestricted 63,930,908 84,060,848 91,742,645 69,893,334 52,011,879 Total business-type activities
net position 317,219,640$ 334,277,600$ 345,574,144$ 350,301,736$ 377,979,294$ Primary government:

Net investment in capital assets 537,714,248$ 528,285,746$ 535,706,493$ 567,141,767$ 640,704,625$ Restricted 97,769,749 103,016,330 111,138,208 130,067,062 148,229,738 Unrestricted (241,174,366) (144,342,668) (125,212,424) (140,099,560) (177,574,336) Total primary government
net position 394,309,631$ 486,959,408$ 521,632,277$ 557,109,269$ 611,360,027$ Fiscal Year
City of San Bernardino
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 162 -

2016 2017 2018 2019 2020
Expenses:

Governmental activities:

General Government 29,434,611$ 41,953,597$ 29,093,189$ 29,494,169$ 28,191,734$ Public Safety 85,867,627 74,606,563 97,710,294 98,603,681 106,626,978 Public Works 32,928,851 32,621,290 33,332,099 44,613,103 46,239,864 Culture and Recreation 7,589,992 6,504,874 8,474,953 3,712,899 5,792,349 Community Development 4,443,029 5,085,625 4,808,376 6,679,568 7,583,733 Community Service 3,261,649 2,233,081 2,723,132 4,195,874 4,098,616 Interest on long-term debt 3,713,051 1,046,882 1,126,611 861,785 1,213,813 Total governmental activities
expenses 167,238,810 164,051,912 177,268,654 188,161,079 199,747,087 Business-type activities:

Integrated Waste 15,323,676 1,183,561 1,177,266 777,167 1,393,739 Water 34,941,060 40,205,419 36,461,897 35,988,661 40,581,468 Sewer 20,015,296 26,638,434 25,258,155 27,787,317 27,475,781 Sewer Collection - 1,054,866 11,667,157 8,172,922 7,650,504 Total business-type activities
expenses 70,280,032 69,082,280 74,564,475 72,726,067 77,101,492 Total primary government
expenses 237,518,842 233,134,192 251,833,129 260,887,146 276,848,579 Program revenues:

Governmental activities:

Charges for services:

General Government 15,061,917 9,960,337 11,222,201 9,275,097 8,561,611 Public Safety 5,759,696 4,089,638 4,806,016 7,770,680 6,646,933 Public works 12,388,167 10,850,828 7,380,078 6,158,572 8,217,713 Culture and Recreation 2,785,816 892,502 1,003,421 1,416,584 2,993,167 Community Development 5,404,887 4,839,812 4,944,299 3,941,191 4,110,272 Community Service 614,304 33,793 37,200 45,838 29,190 Operating grants and contributions 11,865,542 7,263,130 21,652,775 24,786,515 24,531,954 Capital grants and contributions 9,031,491 8,230,994 283,942 270,819 535,026 Total governmental activities
program revenues 62,911,820 46,161,034 51,329,932 53,665,296 55,625,866 (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 163 -

2021 2022 2023 2024 2025
Expenses:

Governmental activities:

General Government 25,164,625$ 25,398,572$ 46,596,788$ 31,816,388$ 43,986,429$ Public Safety 95,644,882 74,651,339 113,334,846 135,754,111 140,835,321 Public Works 42,940,416 49,757,465 53,632,428 53,457,697 71,679,458 Culture and Recreation 5,045,667 3,671,063 3,901,250 4,769,490 5,172,671 Community Development 7,428,010 17,254,790 17,593,245 14,025,508 49,869,507 Community Service 9,912,798 14,646,563 16,582,420 23,880,014 18,141,550 Interest on long-term debt 1,554,305 1,544,198 1,516,651 1,528,019 1,583,337 Total governmental activities
expenses 187,690,703 186,923,990 253,157,628 265,231,227 331,268,273 Business-type activities:

Integrated Waste 577,590 676,615 624,476 940,129 892,148 Water 44,406,988 39,503,371 48,552,751 55,780,411 50,596,374 Sewer 29,749,975 28,044,105 42,816,508 51,526,396 45,343,082 Sewer Collection 7,862,447 7,888,065 - - - Total business-type activities
expenses 82,597,000 76,112,156 91,993,735 108,246,936 96,831,604 Total primary government
expenses 270,287,703 263,036,146 345,151,363 373,478,163 428,099,877 Program revenues:

Governmental activities:

Charges for services:

General Government 9,095,008 10,431,593 12,391,969 14,094,038 12,603,606 Public Safety 4,459,375 5,658,291 5,280,006 4,422,773 3,393,905 Public works 7,771,186 13,413,518 9,247,569 9,490,376 5,666,625 Culture and Recreation 1,811,127 3,821,239 1,496,546 877,217 1,805,611 Community Development 6,839,873 5,413,098 5,963,915 5,309,603 4,796,704 Community Service 632,308 337,540 757,580 467,337 350,914 Operating grants and contributions 34,281,088 45,290,554 46,587,633 53,995,221 121,477,730 Capital grants and contributions 1,701,504 719,033 - 13,710 - Total governmental activities
program revenues 66,591,469 85,084,866 81,725,218 88,670,275 150,095,095 (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 164 -

2016 2017 2018 2019 2020
Business-Type activities:

Charges for services:

Integrated Waste 19,547,672$ 644,710$ 503,657$ 500,242$ 555,920$ Water 29,388,782 32,883,423 37,786,156 38,819,578 39,937,495 Sewer 25,030,569 28,022,259 30,030,737 29,849,642 29,703,284 Sewer Collection - 2,860,627 7,679,020 7,555,960 7,656,675 Operating grants and contributions 1,696,219 2,047,946 1,776,883 1,832,879 1,991,747 Capital grants and contributions 4,271,325 3,551,138 4,854,784 10,121,344 4,604,699 Total business-type activities
program revenues 79,934,567 70,010,103 82,631,237 88,679,645 84,449,820 Total primary government
program revenues 142,846,387 116,171,137 133,961,169 142,344,941 140,075,686 Net revenues (expenses):

Governmental activities (104,326,990) (117,890,878) (125,938,722) (134,495,783) (144,121,221) Business-type activities 9,654,535 927,823 8,066,762 15,953,578 7,348,328 Total net revenues (expenses) (94,672,455) (116,963,055) (117,871,960) (118,542,205) (136,772,893) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 36,680,419 43,641,309 43,890,011 49,450,785 48,179,314 Property tax 41,344,972 13,749,684 18,498,848 17,101,369 18,814,022 Other taxes 28,313,904 28,094,108 28,653,950 27,874,692 27,429,017 Franchise tax 4,925,012 10,777,853 10,657,848 11,550,447 12,684,556 Investment income (unrestricted) 1,613,925 674,345 1,479,966 3,864,707 3,958,589 Other general revenues 4,157,249 3,678,262 4,957,964 2,920,461 4,223,767 Intergovernmental (unrestricted) - - - - - Gain (loss) on disposal of assets (1,130,211) (446,020) (21,932) 58,949 91,223 Extraordinary item:

Annexation of City Fire Dept by County (5,010,868) - - - - Discontinuance of Solid Waste Ops (10,069,000) - - - - Long-Range Property Mgmt Plan - 46,766,207 - - - Loss on transfer of sewer collection operati - (8,376,366) - - - Chapter 9 Bankruptcy Settlement - 76,034,666 - - - Notes Receivable adjustment - - (24,902,675) - - Transfers 14,168,866 (27,798,309) 590,005 - - Total governmental activities 114,994,268 186,795,739 83,803,985 112,821,410 115,380,488 Business-type activities
Investment income (unrestricted) 875,707 129,944 534,899 3,112,261 2,845,596 Other revenues 2,072,951 1,567,787 1,696,912 2,044,179 1,932,163 Gain (loss) on disposal of assets - (1,123,192) 52,419 - (22,091) Extraordinary item:

Discontinuance of Solid Waste Ops 20,839,506 - - - - Chapter 9 Bankruptcy Settlement - 55,787 - - - Transfers (14,168,866) 31,024,659 - (8,375,074) - Total business-type activities 9,619,298 31,654,985 2,284,230 (3,218,634) 4,755,668 Total primary government 124,613,566 218,450,724 86,088,215 109,602,776 120,136,156 Changes in net position:

Governmental activities 10,667,278 68,904,861 (42,134,737) (21,674,373) (28,740,733) Business-type activities 19,273,833 32,582,808 10,350,992 12,734,944 12,103,996 Total primary government 29,941,111$ 101,487,669$ (31,783,745)$ (8,939,429)$ (16,636,737)$ (Continued)
Fiscal Year
City of San Bernardino
Changes in Net Position (Continued)
Last Ten Fiscal Years (Accrual Basis of Accounting)
______________________________________________________________________________ - 165 -

2021 2022 2023 2024 2025
Business-Type activities:

Charges for services:

Integrated Waste 1,229,328$ 500,051$ 500,029$ 500,039$ 500,000$ Water 42,113,517 42,626,315 43,545,629 45,656,974 50,163,378 Sewer 29,587,597 33,347,882 44,519,998 46,224,150 44,511,354 Sewer Collection 7,759,318 6,306,843 - - - Operating grants and contributions 2,011,099 1,910,435 1,684,006 5,566,773 9,106,142 Capital grants and contributions 6,605,556 8,071,944 8,613,085 7,855,349 11,924,034 Total business-type activities
program revenues 89,306,415 92,763,470 98,862,747 105,803,285 116,204,908 Total primary government
program revenues 155,897,884 177,848,336 180,587,965 194,473,560 266,300,003 Net revenues (expenses):

Governmental activities (121,099,234) (101,839,124) (171,432,410) (176,560,952) (181,173,178) Business-type activities 6,709,415 16,651,314 6,869,012 (2,443,651) 19,373,304 Total net revenues (expenses) (114,389,819) (85,187,810) (164,563,398) (179,004,603) (161,799,874) General revenues and other changes in net position:

Governmental activities:

Taxes:

Sales tax 68,796,708 108,554,989 109,693,092 108,683,581 105,814,604 Property tax 19,639,920 23,099,229 24,088,301 25,438,723 28,841,997 Other taxes 30,002,784 36,705,021 38,806,302 37,732,144 37,546,297 Franchise tax 13,470,312 12,698,934 13,702,461 15,340,794 14,730,633 Investment income (unrestricted) 1,467,257 (4,345,864) 6,118,231 16,523,617 18,891,018 Other general revenues 15,428,599 3,326,457 2,340,783 3,585,871 3,772,885 Intergovernmental (unrestricted) - - - - - Gain (loss) on disposal of assets 72,913 (2,607,825) 59,565 5,622 171,098 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 148,878,493 177,430,941 194,808,735 207,310,352 209,768,532 Business-type activities
Investment income (unrestricted) 50,034 (2,136,524) 2,459,693 4,431,653 4,199,976 Other revenues 2,034,674 2,296,732 1,962,980 2,054,568 2,299,106 Gain (loss) on disposal of assets 83,682 28,846 4,859 685,022 2,661,528 Extraordinary item:

Discontinuance of Solid Waste Ops - - - - - Chapter 9 Bankruptcy Settlement - - - - - Transfers - - - - - Total business-type activities 2,168,390 189,054 4,427,532 7,171,243 9,160,610 Total primary government 151,046,883 177,619,995 199,236,267 214,481,595 218,929,142 Changes in net position:

Governmental activities 27,779,259 75,591,817 23,376,325 30,749,400 28,595,354 Business-type activities 8,877,805 16,840,368 11,296,544 4,727,592 28,533,914 Total primary government 36,657,064$ 92,432,185$ 34,672,869$ 35,476,992$ 57,129,268$ (Concluded)
Fiscal Year
City of San Bernardino
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 166 -

2016 2017 2018 2019 2020
General fund:

Nonspendable 516,258$ 40,858,145$ 33,023,125$ 32,855,157$ 32,273,054$ Restricted 1,270,317 543,011 3,351 73,416 1,556,304 Committed 53,451 133,282 68,387 68,387 31,775,137 Assigned - - - - 1,517,842 Unassigned 32,571,653 30,218,397 38,995,689 31,543,452 597,818 Total general fund 34,411,679 71,752,835 72,090,552 64,540,412 67,720,155 All other governmental funds:

Nonspendable 44,059 59,093,468 300 - - Restricted 114,064,965 48,460,477 89,723,105 97,648,385 99,614,892 Unassigned (87,413) (32,806) - (35,991) (17,380) Total all other governmental funds 114,021,611$ 107,521,139$ 89,723,405$ 97,612,394$ 99,597,512$ Fiscal Year
City of San Bernardino
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 167 -

2021 2022 2023 2024 2025
General fund:

Nonspendable 39,492,536$ 40,204,687$ 41,421,536$ 40,806,497$ 39,593,408$ Restricted 2,261,884 2,107,208 2,086,366 2,099,574 2,164,740 Committed 44,471,970 104,210,082 129,954,653 146,649,441 133,053,592 Assigned 2,215,990 6,669,342 - 13,370,050 3,704,034 Unassigned 22,300,252 3,257,776 - - - Total general fund 110,742,632 156,449,095 173,462,555 202,925,562 178,515,774 All other governmental funds:

Nonspendable - - - 83 12,428,090 Restricted 95,507,865 100,909,122 106,830,097 123,401,403 139,656,273 Unassigned - - - - - Total all other governmental funds 95,507,865$ 100,909,122$ 106,830,097$ 123,401,486$ 152,084,363$ Fiscal Year
City of San Bernardino
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 168 -

2016 2017 2018 2019 2020
Revenues:

Taxes 116,474,108$ 101,310,156$ 106,751,261$ 111,195,458$ 112,084,820$ Licenses and permits 11,515,983 10,646,234 12,021,242 12,305,689 13,210,675 Impact fees 2,409,364 2,690,413 2,494,953 1,858,064 4,188,573 Fines and forfeitures 2,642,998 2,268,213 2,476,338 2,737,250 2,611,840 Investment Income 1,528,158 693,247 683,016 3,182,715 3,202,705 Lease 569,583 734,853 1,367,014 1,099,730 1,193,281 Intergovernmental 16,672,907 12,581,942 18,615,104 21,839,908 21,575,427 Charges for services 13,124,068 10,536,949 8,653,717 8,804,880 7,457,572 Other 9,843,361 5,311,574 6,150,859 3,015,369 4,845,817 Total revenues 174,780,530 146,773,581 159,213,504 166,039,063 170,370,710 Expenditures:

Current:

General Government 30,023,905 41,208,970 27,143,743 23,544,245 24,482,935 Public Safety 90,994,899 63,871,615 77,574,446 84,537,639 83,369,905 Public Works 20,009,090 19,562,136 21,471,387 40,588,569 38,399,067 Culture and Recreation 7,549,588 6,188,786 8,034,662 3,425,100 5,200,611 Community Development 4,501,617 4,978,005 4,608,360 5,756,424 7,002,361 Community Service 3,204,997 2,586,926 2,302,476 3,773,249 3,714,899 Debt service:

Principal retirement 12,771,410 7,782,077 5,955,768 1,971,120 2,334,830 Interest and fiscal charges 1,009,214 946,770 1,202,292 872,500 1,200,950 Total expenditures 170,064,720 147,125,285 148,293,134 164,468,846 165,705,558 Excess (deficiency) of revenues
over (under) expenditures 4,715,810 (351,704) 10,920,370 1,570,217 4,665,152 Other financing sources (uses):

Transfers in 15,153,355 7,133,534 590,005 1,491,125 1,029,316 Transfers out (1,023,811) (16,487,965) (229,655) (1,491,125) (1,029,316) 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) - (823,688) 92,029 Total other financing
sources (uses) 14,129,544 (9,608,600) 4,774,352 (823,688) 92,029 Extraordinary item:
- 38,848,755 - - - Chapter 9 Bankruptcy Settlement - 1,952,233 - - - Notes Receivable adjustment - - (24,902,675) - - Net change in fund balances 18,845,354$ 30,840,684$ (9,207,953)$ 746,529$ 4,757,181$ Expenditures for capitalized assets 3,658,379 3,702,189 5,807,791 10,386,763 7,860,472 Debt service as a percentage of
noncapital expenditures 8.3% 6.1% 5.0% 1.8% 2.2%
LRPMP Transfers from Successor Agency
Fiscal Year
City of San Bernardino
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (Modified Accrual Basis of Accounting) ______________________________________________________________________________ - 169 -

2021 2022 2023 2024 2025
Revenues:

Taxes 137,935,700$ 185,762,246$ 191,754,388$ 193,249,667$ 191,560,243$ Licenses and permits 13,256,934 14,195,177 16,442,887 16,745,121 14,803,309 Impact fees 2,503,324 9,361,021 4,368,737 5,050,311 3,251,233 Fines and forfeitures 1,441,589 1,990,048 2,049,352 2,584,802 2,159,923 Investment Income 796,617 (5,290,134) 4,740,575 14,086,024 16,042,494 Lease 1,125,520 1,273,120 1,289,487 969,607 1,073,573 Intergovernmental 31,415,959 41,032,187 41,047,625 48,176,754 115,817,940 Charges for services 10,077,721 12,685,004 11,090,718 8,877,290 7,165,817 Other 12,932,019 3,886,709 3,141,833 4,847,507 4,782,731 Total revenues 211,485,383 264,895,378 275,925,602 294,587,083 356,657,263 Expenditures:

Current:

General Government 23,491,404 27,300,123 44,290,579 32,137,004 41,763,898 Public Safety 85,438,105 95,006,958 109,590,359 116,581,424 131,979,467 Public Works 39,513,013 48,085,969 57,690,144 55,596,944 79,112,384 Culture and Recreation 4,408,800 4,825,874 3,687,479 7,022,616 4,401,528 Community Development 7,405,140 18,134,668 17,341,992 13,078,280 51,696,962 Community Service 10,087,014 15,784,119 16,887,870 24,274,269 38,797,716 Debt service:

Principal retirement 1,849,620 2,551,379 2,326,808 1,342,520 1,422,330 Interest and fiscal charges 1,546,373 1,626,581 1,546,741 1,486,453 1,517,110 Total expenditures 173,739,469 213,315,671 253,361,972 251,519,510 350,691,395 Excess (deficiency) of revenues
over (under) expenditures 37,745,914 51,579,707 22,563,630 43,067,573 5,965,868 Other financing sources (uses):

Transfers in 1,714,702 138,000 184,353 114,321 2,196,872 Transfers out (1,714,702) (138,000) (184,353) (114,321) (4,328,497) Issuance of debt 19,850,000 - - - - Inception of lease liability - 2,135,838 311,240 2,966,323 213,933 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 103,850 2,800 59,565 500 224,913 Total other financing
sources (uses) 1,186,916 (471,987) 370,805 2,966,823 (1,692,779) Extraordinary item:
- - - - - Chapter 9 Bankruptcy Settlement - - - - - Notes Receivable adjustment - - - - - Net change in fund balances 38,932,830$ 51,107,720$ 22,934,435$ 46,034,396$ 4,273,089$ Expenditures for capitalized assets 11,318,921 10,058,911 17,597,954 21,193,477 41,459,016 Debt service as a percentage of
noncapital expenditures 2.1% 2.1% 1.6% 1.2% 1.0%
LRPMP Transfers from Successor Agency
Fiscal Year
City of San Bernardino
Tax Revenues by Source – Governmental Funds
Last Ten Fiscal Years
______________________________________________________________________________ - 170 -

Fiscal Year
Ended Property Sales Franchise Utility User Transient Cannabis June 30 Tax Tax Tax Tax Occupancy Tax Taxes Total
2016 41,344,972$ 36,680,419$ 4,925,012$ 23,986,813$ 4,327,091$ -$ 111,264,307$ 2017 13,749,684 43,641,309 10,777,853 23,591,923 4,502,185 - 96,262,954 2018 18,498,848 43,890,011 10,657,848 23,666,459 4,987,491 - 101,700,657 2019 17,101,369 49,450,785 11,550,447 22,924,522 4,950,170 - 105,977,293 2020 18,814,022 48,179,314 12,684,556 22,680,847 4,525,751 222,419 107,106,909 2021 19,639,920 68,796,708 13,470,312 23,609,073 5,117,388 1,276,323 131,909,724 2022 23,099,229 108,554,989 12,698,934 26,272,812 5,781,762 4,650,447 181,058,173 2023 24,088,301 109,693,092 13,702,461 31,208,992 5,491,564 2,105,746 186,290,156 2024 25,438,723 108,683,581 15,340,794 28,671,310 5,826,493 3,234,341 187,195,242 2025 28,841,997 105,814,604 14,730,633 29,146,952 5,261,841 3,137,504 186,933,531 City of San Bernardino
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
______________________________________________________________________________ - 171 -

Fiscal Year Taxable Taxable Total
Ended Less Assessed Less Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2016 5,738,959,843$ 312,079,238$ (128,316,274)$ 5,922,722,807$ 5,141,903,516$ 720,777,168$ -$ 5,862,680,684$ 0.17% 2017 5,981,441,663 325,997,592 (133,119,032) 6,174,320,223 5,689,891,753 661,264,210 - 6,351,155,963 0.17% 2018 6,304,981,676 348,471,031 (130,446,387) 6,523,006,320 6,058,430,422 675,636,279 - 6,734,066,701 0.17% 2019 6,568,149,924 388,910,383 (127,261,499) 6,829,798,808 6,575,428,405 657,727,943 - 7,233,156,348 0.01% 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% 2025 8,825,471,385 757,110,067 (112,839,359) 9,469,742,093 11,649,077,365 1,325,633,066 - 12,974,710,431 0.00% Note: Estimated value of taxable property not readily available in the State of California. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations of Proposition 13 passed in 1978.

Source: HdL, Coren & Cone, San Bernardino County Auditor/Controller (1) Redevelopment Agency was dissolved on February 1, 2012.

City Redevelopment Agency(1)
City of San Bernardino
Taxable Sales by Category
Last Ten Calendar Years (In Thousands of Dollars)
______________________________________________________________________________ - 172 -

2015 2016 2017 2018 2019
Apparel Stores 122,775$ 123,805$ 122,010$ 130,260$ 131,766$ General Merchandise 434,869 437,472 453,685 458,167 462,959 Food Stores 79,474 85,508 85,097 91,081 91,305 Eating and Drinking Places 313,780 333,096 360,281 377,162 396,021 Building Materials 263,531 278,724 295,474 324,217 309,043 Auto Dealers and Supplies 458,743 492,790 529,264 494,427 462,437 Service Stations 292,747 268,998 293,682 339,418 347,044 Other Retail Stores 339,081 338,889 338,271 368,716 378,775 All Other Outlets 894,024 978,018 1,024,441 1,205,411 1,301,458 Total 3,199,024$ 3,337,300$ 3,502,205$ 3,788,859$ 3,880,808$ Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Calendar Year
City of San Bernardino
Taxable Sales by Category (Continued)
Last Ten Calendar Years (In Thousands of Dollars)
______________________________________________________________________________ - 173 -

2020 2021 2022 2023 2024
Apparel Stores 108,398$ 168,432$ 156,023$ 152,260$ 149,214$ General Merchandise 447,172 518,213 538,326 546,345 544,522 Food Stores 102,050 102,853 109,289 113,935 116,966 Eating and Drinking Places 354,438 442,627 469,914 489,831 502,010 Building Materials 373,333 373,494 392,077 402,471 388,351 Auto Dealers and Supplies 490,443 667,296 721,715 686,642 660,349 Service Stations 271,371 395,903 513,720 452,210 432,900 Other Retail Stores 405,898 525,791 515,601 491,926 448,085 All Other Outlets 1,731,494 2,241,993 2,353,992 2,160,224 2,052,817 Total 4,284,597$ 5,436,602$ 5,770,657$ 5,495,844$ 5,295,214$ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

Calendar Year
City of San Bernardino
Principal Sales Tax Remitters
Current Year and Nine Years Ago
______________________________________________________________________________ - 174 -

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 Curacao Discount Dept Stores Diamond Chevrolet Of San Bernardino New Motor Vehicle Dealers Fairview Ford New Motor Vehicle Dealers Eastern Aviation Fuels Petroleum Prod/Equipment Gerdau Long Steel North America Heavy Industrial Fairview Ford New Motor Vehicle Dealers Greenbrier Rail services Transportation-Non-auto Home Depot Building Materials Home Depot Building Materials Kohls Distribution Center Fulfillment Centers Inland Water Works Supply Heavy Industrial Michelin Tire Trailers/Auto Parts Interline Brands Plumbing/Electrical Supplies Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Kohls Distribution Center Fullfillment Centers Nissan of San Bernardino New Motor Vehicle Dealers Macys Department Stores Ross Family Apparel Moss Bros Chrysler Dodge Jeep Ram Fiat New Motor Vehicle Dealers Sams Club w/ Fuel Discount Dept Stores Nissan of San Bernardino New Motor Vehicle Dealers Stater Bros Grocery Stores Ross Family Apparel
Subaru of San Bernardino New Motor Vehicle Dealers Sams Club w/ Fuel Discount Dept Stores Target Discount Dept Stores 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 Vehicle Dealers 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 HdL Companies
Fiscal Year 2025 Fiscal Year 2016
City of San Bernardino
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
______________________________________________________________________________ - 175 -

Agency 2016 2017 2018 2019 2020 20201 2022 2023 2024 2025 Basic Levy(1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Colton Unified School Board 0.11690 0.14540 0.09390 0.11160 0.10160 0.10310 0.10810 0.06560 0.06870 0.05930 Crestline-Lake Arrowhead Water Agency - Bond 0.07280 0.07280 0.08700 0.08700 0.11900 0.11900 0.11900 0.11900 0.11900 0.12090 Redlands Unified School Bond 1993 0.05670 0.05240 0.04940 0.03240 0.03390 0.03600 0.06620 0.02790 0.03160 0.02770 Rialto Unified School Bond 0.11940 0.09920 0.09570 0.07710 0.08480 0.08050 0.08290 0.07460 0.15560 0.06590 San Bernardino Community College Bond 0.04030 0.03500 0.03760 0.04070 0.05620 0.06510 0.05340 0.04500 0.04520 0.03700 San Bernardino Unified School Bond 0.11820 0.07950 0.10070 0.11260 0.09690 0.10340 0.10890 0.08780 0.06880 0.09360 San Bernardino Valley Muni Water 0.16250 0.16250 0.15250 0.15250 0.14250 0.14250 0.13000 0.13000 0.12000 0.11000 Total Direct and Overlapping Rates(2)

1.68680 1.64680 1.61680 1.61390 1.63490 1.64960 1.66850 1.54990 1.60890 1.51440 City's Share of 1% Levy Per Prop 13(3) 0.16897 0.16897 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Voter Approved City Debt Rate 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Redevelopment Rate(4) 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rates(5) 0.16975 0.16975 0.00886 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners.
(3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute.

RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. (5) Total Direct Rate is the weighted average of all individual direct rates applied by the City preparing the statistical section information and excludes revenues derived from aircraft. Beginning in fiscal year 2013-14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.

Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Fiscal Year
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

City of San Bernardino
Principal Property Taxpayers
Current Year and Ten Years Ago
______________________________________________________________________________ - 176 -

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 473,201,152$ 1 2.09% 330,207,759$ 1 2.77% Amazon Com Services Inc 380,211,164 2 1.68%
GWS Development LLC 256,255,544 3 1.13%
SBABP II LLC 220,744,996 4 0.98%
BSREP III Central LLC 209,079,413 5 0.93%
CSHV Show Place 215 LLC 197,377,369 6 0.87%
Eastgate Building 1 LLC 156,848,886 7 0.69%
HW Southgate Building LLC 127,088,583 8 0.56%
WM Inland Investors IV LLC 123,700,228 9 0.55% 62,771,236 10 0.53% Central Avenue Property Owner LLC 123,500,660 10 0.55% IE Logistics Inc 99,284,779 6 0.83%
Golden State FC LLC 128,071,479 2 1.07%
Tri City Owner LLC 115,047,438 3 0.96%
Kohl's Department Stores Inc 112,657,928 4 0.94%
Teachers Insur And Annuity Assn 73,438,560 7 0.62%
HW Southgate LP 107,947,232 5 0.91%
Lit Industrial LP 66,128,303 8 0.55%
Westgate No 1 LP 64,165,438 9 0.54%
2,268,007,995$ 10.03% 1,159,720,152$ 9.72%
Sources: HdL, Coren & Cone
2025 2016
City of San Bernardino
Property Tax Levies and Collections
Last Ten Fiscal Years
______________________________________________________________________________ - 177 -

Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2016 11,030,576$ 10,593,161$ 96.03% 208,567$ 10,801,728$ 97.93% 2017(1) N/A 95,314 N/A 116,204 211,518 N/A 2018(1) N/A 197,198 N/A 88 197,286 N/A 2019(1) N/A 235,242 N/A 5,550 240,792 N/A 2020(1) N/A 64,212 N/A 3,055 67,267 N/A 2021(1) N/A 93,605 N/A 30,272 123,877 N/A 2022(1) N/A 197,545 N/A 28,985 226,530 N/A 2023(1) N/A 174,874 N/A 26,358 201,232 N/A 2024(1) N/A 40,541 N/A 28,718 69,259 N/A 2025(1) N/A - N/A - - N/A Note:

The amounts presented include City property taxes only.

Source: County of San Bernardino, Auditor/Controller - Recorder - County Clerk (1)Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District (SBCFPD). To fund this transfer, the City is required to transfer revenue from property taxes and 35 percent of its Vehicle Registration Fees to SBCFPD.

Fiscal Year of Levy
Collected within the
Total Collections to Date
City of San Bernardino
Top 10 Customers – Water and Sewer Treatment
Current Year
______________________________________________________________________________ - 178 -

Percent of Percent of
Total Total Sewer
Customer Water Customer Treatment
Customer: Revenue Rank Revenue Revenue Rank Revenue
City of San Bernardino 1,839,579$ 1 3.64% 358,313$ 3 0.79% San Bernardino City Unified School District 1,728,622 2 3.42% 464,791 2 1.02% California State University, San Bernardino 696,121 3 1.38% County of San Bernardino 364,937 4 0.72% 494,620 1 1.08% Housing Authority 280,338 5 0.55% 263,247 4 0.58%
Cott Beverages 274,607 6 0.54%
Rialto School District 262,661 7 0.52%
W. Dean Weidner 221,102 8 0.44% 165,966 10 0.36%
SB Community Hospital Site #373 193,671 9 0.38% 195,820 7 0.43% Crest Haven Apartments 193,445 10 0.38%
Pama Management Co. 220,700 5 0.48%
St. Bernardine Hospital 201,491 6 0.44%
Broadstone Investors LLC 193,081 8 0.42%
Lido Condominiums 169,237 9 0.37%
6,055,083$ 11.97% 2,727,266$ 5.97%
Source: City Water Department
Water Sewer Treatment
City of San Bernardino
Connections and Revenues by User Type – Water
Last Ten Fiscal Years
______________________________________________________________________________ - 179 -

User Type Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 36,170 23,557,581$ 36,140 22,210,799$ 36,063 21,652,852$ 35,744 23,761,145$ Multiple family 2,953 6,352,591 2,932 6,148,207 2,916 5,835,444 2,905 5,562,012 Commercial 3,128 9,044,456 3,158 8,976,290 3,164 8,454,199 3,151 6,976,893 Landscape 1,192 7,922,591 1,189 6,957,544 1,196 6,742,399 1,184 5,515,046 Other 2,859 3,665,294 2,671 1,692,251 2,574 860,736 2,296 811,219 Total all users 46,302 50,542,513$ 46,090 45,985,091$ 45,913 43,545,630$ 45,280 42,626,315$ Connections Revenue Connections Revenue Connections Revenue Connections Revenue Single family 35,995 23,875,761$ 36,042 22,909,054$ 36,006 21,579,693$ 35,824 20,476,866$ Multiple family 2,908 5,569,436 2,907 5,222,345 2,903 5,157,997 2,904 4,944,978 Commercial 3,154 6,579,373 3,117 6,482,560 3,104 6,320,900 3,111 6,117,493 Landscape 1,192 5,277,114 1,181 4,542,108 1,150 4,256,390 1,159 4,694,704 Other 2,241 811,833 2,174 781,428 2,056 808,227 2,018 748,141 Total all users 45,490 42,113,517$ 45,421 39,937,495$ 45,219 38,123,207$ 45,016 36,982,182$ Connections Revenue Connections Revenue
Single family 35,729 15,688,749$ 35,729 15,688,749$ Multiple family 2,873 4,225,832 2,873 4,225,832 Commercial 3,092 4,913,942 3,092 4,913,942 Landscape 1,129 3,203,907 1,129 3,203,907 Other 1,905 677,180 1,905 677,180 Total all users 44,728 28,709,610$ 44,728 28,709,610$ Source: City Water Department
2017 2016
2025 2024 2023 2022
2021 2020 2019 2018
City of San Bernardino
Water Rate History – Minimum Monthly Charge
Last Ten Fiscal Years
______________________________________________________________________________ - 180 -

Effective
Date 1/2" 5/8" 3/4" 1" 1-1/2" 2" 3" 4" 6" 8" 10" 12"
10/1/2016 16.09 16.09 20.15 28.19 48.40 72.60 129.12 197.36 411.68 653.88 936.44 * 7/1/2017 19.58 19.58 24.51 34.30 58.88 88.32 157.06 240.07 500.78 795.40 1,139.12 * 7/1/2018 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2019 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2020 23.39 23.39 29.28 40.98 70.35 105.52 187.66 286.63 598.33 950.34 1,361.01 * 7/1/2021 23.39 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 4,657.56 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 7/1/2025 23.97 23.97 32.98 50.91 95.77 149.62 454.70 903.35 1,441.73 2,518.50 4,941.21 4,941.21 * Information not reported.

Source: City Water Department
Monthly Charge
City of San Bernardino
Sewer Treatment Rate History
Last Ten Fiscal Years
______________________________________________________________________________ - 181 -

7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 4/1/2022(1) 7/1/2022(1) 7/1/2023(1) 7/1/2024(1) 7/1/2025(1) Residential (monthly per EDU) 22.38 23.10 23.10 23.10 23.10 23.10 37.83 41.99 45.35 48.98 52.90 Commercial:

Commodity Charge (per HCF):

Multi-family, mobile home parks 1.48 1.53 1.53 1.53 1.53 1.53 2.71 3.01 3.25 3.51 3.79 Retail, commercial, light industrial 2.47 2.55 2.55 2.55 2.55 2.55 2.71 3.01 3.25 3.51 3.79 Auto repair, car wash 1.53 1.58 1.58 1.58 1.58 1.58 2.71 3.01 3.25 3.51 3.79 Offices, motels (w/o restaurants) 1.77 1.83 1.83 1.83 1.83 1.83 2.71 3.01 3.25 3.51 3.79 Restaurants, hotels 3.18 3.28 3.28 3.28 3.28 3.28 6.42 7.13 7.70 8.31 8.98 Laundromats 1.77 1.83 1.83 1.83 1.83 1.83 2.15 2.39 2.58 2.78 3.01 Hospitals, convalescent homes 1.58 1.63 1.63 1.63 1.63 1.63 2.71 3.01 3.25 3.51 3.79 Schools, churches, nursery schools 1.29 1.33 1.33 1.33 1.33 1.33 2.15 2.39 2.58 2.78 3.01 Industrial:

Discharge Flow (per million gallons) 1,060.00 1,094.00 1,094.00 1,094.00 1,094.00 1,094.00 1,420.83 1,577.12 1,703.29 1,839.55 1,986.72 Biological Oxygen demand (per 1,000 lbs) 424.00 438.00 438.00 438.00 438.00 438.00 648.28 719.59 777.16 839.32 906.48 Suspended Solids (per 1,000 lbs) 753.00 778.00 778.00 778.00 778.00 778.00 648.50 719.84 777.42 839.62 906.78 (1)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
Fiscal Year
City of San Bernardino
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
______________________________________________________________________________ - 182 -

2016 2017 2018 2019 2020
Governmental Activities:

Lease revenue bonds 5,670,000$ 4,985,000$ 4,414,002$ 3,598,360$ 2,751,781$ Certificates of participation(1) 3,445,000 - - - - Pension obligation bonds(1) 53,608,476 - - - - Notes payable 11,014,753 29,724,658 28,286,305 26,649,629 24,666,171 Lease liabilities 1,204,912 658,888 534,311 406,234 274,558 Subscription liabilities - - - - - Total governmental activities 74,943,141 35,368,546 33,234,618 30,654,223 27,692,510 Business-type Activities:

Financed purchase - - - - - Notes payable 20,568,662 900,000 600,000 300,000 - Certificates of participation - - - - - Water bonds - 88,655,746 87,091,704 85,482,663 83,813,621 Lease liabilities - - - - - Subscription liabilities - - - - - Total business-type activities 20,568,662 89,555,746 87,691,704 85,782,663 83,813,621 Total Primary Government 95,511,803$ 124,924,292$ 120,926,322$ 116,436,886$ 111,506,131$ Percentage of Personal Income(2) 1.20% 1.48% 1.42% 1.37% 1.37% Debt per Capita(2) 443$ 576$ 547$ 531$ 512$ (2) Based on most current data available.
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

Fiscal Year
City of San Bernardino
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
______________________________________________________________________________ - 183 -

2021 2022 2023 2024 2025
Governmental Activities:

Lease revenue bonds 1,871,537$ 953,847$ -$ -$ -$ Certificates of participation(1) - - - - - Pension obligation bonds(1) 19,276,972 19,269,444 19,256,915 19,244,387 19,231,860 Notes payable 4,374,000 3,600,000 2,776,000 1,922,000 1,268,000 Lease liabilities 139,182 1,245,331 2,197,866 4,895,227 5,098,277 Subscription liabilities - - 389,904 267,238 218,276 Total governmental activities 25,661,691 25,068,622 24,620,685 26,328,852 25,816,413 Business-type Activities:

Financed purchase - - - - - Notes payable - - - - - Certificates of participation - - - - - Water bonds 82,084,580 80,280,539 78,391,498 76,422,456 74,358,414 Lease liabilities - 107,614 59,878 11,994 - Subscription liabilities - - 122,978 - - Total business-type activities 82,084,580 80,388,153 78,574,354 76,434,450 74,358,414 Total Primary Government 107,746,271$ 105,456,775$ 103,195,039$ 102,763,302$ 100,174,827$ Percentage of Personal Income(2) 1.40% 2.29% 2.24% 1.98% 1.75% Debt per Capita(2) 498$ 478$ 462$ 454$ 450$ (2) Based on most current data available.
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

Fiscal Year
City of San Bernardino
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years (In Thousands, except Per Capita) ______________________________________________________________________________ - 184 -

Fiscal Pension Lease Percent of
Year Ended Obligation Revenue Assessed Per
June 30 Bonds(1) Bonds Total Value Capita
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 2025 19,232 - 19,232 0.09% 86 Source: City Finance Department
(1) Upon approval of the City's Plan of Adjustment by the U.S. Bankruptcy Court on June 15, 2017, certain long-term liabilities of the City were reduced or eliminated.

City of San Bernardino
Schedule of Direct and Overlapping Bonded Debt
Current Fiscal Year
______________________________________________________________________________ - 185 -

2024-25 Assessed Valuation: 22,557,291,883$
Total Debt
6/30/2025
%
Applicable
(1)
City's Share of
Debt 6/30/25
OVERLAPPING TAX AND ASSESSMENT DEBT:

San Bernardino Community College District 880,363,439$ 20.742% 182,604,985$ Colton Joint Unified School District 202,937,994 6.656% 13,507,553 Redlands Unified School District 142,943,512 4.769% 6,816,976 Rialto Unified School District 137,835,197 6.396% 8,815,939 San Bernardino City Unified School District 299,021,967 76.367% 228,354,106 Colton Joint Unified School District Community Facilities District No. 2 2,765,000 41.210% 1,139,457 City of San Bernardina Community Facilities District No. 2018-2 2,910,000 100% 2,910,000 City of San Bernardina Community Facilities District No. 2020-1 3,400,000 100% 3,400,000 City of San Bernardina Community Facilities District No. 2021-1 2,655,000 100% 2,655,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 450,204,015$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations 100,765,000$ 6.602% 6,652,505$ San Bernardino County Flood Control District General Fund Obligations 37,295,000 6.602% 2,462,216 Colton Joint Unified School District General Fund Obligation 5,437,904 6.656% 361,947 Redlands Unified School District Certificates of Participation 21,210,000 4.769% 1,011,505 Rialto Unified School District Certificates of Participation 50,214,439 6.396% 3,211,716 San Bernardino City Unified School District Certificates of Participation 149,245,000 76.367% 113,973,929 City of San Bernardino Pension Obligation Bonds 19,715,000 100% 19,715,000 HUD Section 108 Note Payable 1,268,000 100% 1,268,000 Lease Liabilities 5,098,277 100% 5,098,277
Subscription Liabilities 218,276 100% 218,276 Unamortized Bond Discount (483,140) 100% (483,140) TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 153,490,231$ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):

San Bernardino County Inland Valley Project Tax Allocation Bonds 203,740,000$ 65.952% 134,370,605$ City of San Bernardino Tax Allocation Bonds 12,595,000$ 100% 12,595,000 TOTAL OVERLAPPING TAX INCREMENT DEBT 146,965,605$
TOTAL DIRECT DEBT 25,816,413$
TOTAL OVERLAPPING DEBT 724,843,437$
COMBINED TOTAL DEBT 750,659,850$ (2)
Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.00%
Total Direct Debt ($25,816,413) 0.11%
Combined Total Debt 3.33%
Ratios to Redevelopment Successor Agency Incremental Valuation 12,974,710,431$ Total Overlapping Tax Increment Debt 1.13%
Source: California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue liability obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

City of San Bernardino
Legal Debt Margin
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 186 -

2016 2017 2018 2019 2020
Assessed valuation 11,913,720$ 12,658,595$ 13,387,519$ 14,190,217$ 15,557,321$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed value 2,978,430 3,164,649 3,346,880 3,547,554 3,889,330 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 446,764 474,697 502,032 532,133 583,400 Total net debt applicable to limit:

General obligation bonds 67,198 9,060 8,069 6,813 5,497 Legal debt margin 379,566$ 465,637$ 493,963$ 525,320$ 577,903$ Total debt applicable to the limit
as a percentage of debt limit 15.0% 1.9% 1.6% 1.3% 0.9% Fiscal Year
Note:

The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

City of San Bernardino
Legal Debt Margin (Continued)
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 187 -

2021 2022 2023 2024 2025
Assessed valuation 16,415,502$ 17,728,678$ 19,097,790$ 20,977,412$ 22,557,292$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed value 4,103,876 4,432,170 4,774,447 5,244,353 5,639,323 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 615,581 664,825 716,167 786,653 845,898 Total net debt applicable to limit:

General obligation bonds 23,977 22,509 20,975 20,360 19,715 Legal debt margin 591,605$ 642,317$ 695,192$ 766,293$ 826,183$ Total debt applicable to the limit
as a percentage of debt limit 3.9% 3.4% 2.9% 2.6% 2.3%
Fiscal Year
Note:

City of San Bernardino
Debt Service Coverage
Last Ten Fiscal Years (In Thousands)
______________________________________________________________________________ - 188 -

Water Utility
Fiscal Operating Net Non- Net
Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2016 30,002$ 29,025$ 977$ 2,283$ 3,260$ 1,814$ 523$ 1.39 2017 33,359 30,597 2,762 2,584 5,346 247 219 11.47
2018 38,280 27,874 10,406 3,168 13,574 770 2,224 4.53
2019 39,100 27,482 11,618 3,810 15,428 795 2,196 5.16
2020 40,267 31,062 9,205 3,636 12,841 830 2,164 4.29
2021 42,758 34,642 8,116 2,634 10,750 860 2,130 3.60
2022 43,150 32,373 10,777 2,332 13,109 900 2,090 4.38
2023 44,092 39,413 4,679 3,218 7,897 950 2,044 2.64
2024 45,985 41,865 4,120 8,677 12,797 995 1,996 4.28 2025 50,543 40,142 10,401 11,865 22,266 1,050 1,944 7.44 Sewer Utility
Fiscal Operating Net Non- Net
Year Ended Operating Expenses Operating Operating Available June 30 Revenue (Excl. Depr.) Income Income (Expense) Revenue Principal Interest Coverage 2016 25,411$ 17,439$ 7,972$ (224)$ 7,748$ 300$ -$ 25.83 2017 28,612 20,037 8,575 39 8,614 300 133.00 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 2025 45,596 39,610 5,986 1,982 7,968 810 1,155 4.05 Source: City department's annual reports
Debt Service
Debt Service
City of San Bernardino
Demographic and Economic Statistics
Last Ten Calendar Years
______________________________________________________________________________ - 189 -

Personal Per Capita
Calendar Income Personal Unemployment
Year Population(1) (in thousands) (2) Income(2)(4) Rate(3) 2016 215,491 7,931,577 36,807 6.30% 2017 216,972 8,459,304 38,988 5.50% 2018 221,130 8,523,677 38,546 5.70% 2019 219,233 8,509,748 38,816 4.10% 2020 217,671 8,159,289 37,485 11.30% 2021 216,291 7,723,319 35,708 8.10% 2022 220,840 4,596,122 20,812 4.80% 2023 223,230 4,608,807 20,646 6.30% 2024 226,541 5,179,860 22,865 6.30% 2025 222,727 5,727,648 25,716 6.60% (1) California Department of Finance
(2) U.S. Department of Commerce, Bureau of Economic Analysis for Riverside-San Bernardino-Ontario MSA (3) State of California, Economic Development Department; City of San Bernardino Economic Development Dept (4) Data from 2021 is from US Census
City of San Bernardino
Budgeted Full-Time and Part-Time Positions by Function
Last Ten Fiscal Years
______________________________________________________________________________ - 190 -

Fiscal Year
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General Government 148 147 117 107 92 91 81 90 129 140
Public Safety 607 470 474 468 427 402 413 413 508 522
Public Works 254 185 138 131 129 136 139 139 160 171
Culture & Recreation 103 104 111 110 111 127 129 129 138 145 Community Development 37 39 38 33 26 40 46 60 70 95
Community Service 33 34 38 37 33 41 69 70 95 145
Enterprise 258 272 300 299 299 299 296 299 302 304
Total 1,440 1,251 1,216 1,185 1,117 1,136 1,173 1,200 1,402 1,522 Source: Budgeted positions for full and part time employees City of San Bernardino
Capital Asset Statistics
Last Ten Fiscal Years
______________________________________________________________________________ - 191 -

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Pubic Safety:

Police stations 1 1 1 1 1 1 1 1 1 1 Fire stations 12 * * * * * * * * *
Public Works:

Miles of streets ** ** ** 629 629 629 629 616 616 620 Street lights (City maintained) ** ** ** ** ** 7,400 7,400 6,706 6,706 6,684 Street lights (SCE maintained) ** ** ** ** ** 7,500 7,500 7,111 7,384 7,233 Street traffic controllers (signals) ** ** ** 289 289 308 295 295 297 297 Street traffic controllers (ped-xing) ** ** ** 19 19 308 *** *** 5 5 Parks and Recreation:

Parks 37 37 37 36 36 36 36 36 36 36 Park acreage 545 545 545 530 507 507 507 552 552 552 Water:

Water mains (miles) 608 608 609 612 729 729 729 701 701 726 Sewer:

Sanitary sewers (miles) 510 510 510 510 478 478 478 481 477 483 Source: Various City departments
*
** Information not available
*** Included in above number
Fiscal Year
Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

City of San Bernardino
Operating Indicators by Function
Last Ten Fiscal Years
______________________________________________________________________________ - 192 -

Fiscal Year
2016 2017 2018 2019 2020
Police:

Arrests 8,930 10,256 11,295 12,100 11,137 Parking citations issued 14,781 21,711 21,480 16,359 12,334 Traffic citations issued 3,062 3,848 3,108 9,055 9,276 Fire:

Number of emergency calls * ** ** ** **
Inspections * ** ** ** **
Public Works/Public Services:

Street resurfacing (lane miles) * * * * *
Parks and Recreation:

Number of recreation classes 525 494 514 509 63 Number of facility rentals 290 277 345 321 208 Water:

Total connections 44,728 44,932 45,016 45,220 45,421 Sewer:

Total connections 64,342 63,274 63,525 61,253 59,719 Source: Various City departments
* Information not available
** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

City of San Bernardino
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
______________________________________________________________________________ - 193 -

Fiscal Year
2021 2022 2023 2024 2025
Police:

Arrests 10,357 7,792 8,336 10,157 10,035 Parking citations issued 13,110 11,332 10,496 13,739 13,136 Traffic citations issued 1,628 5,473 6,679 6,406 7,434 Fire:

Number of emergency calls ** ** ** ** **
Inspections ** ** ** ** **
Public Works/Public Services:

Street resurfacing (lane miles) * * * * 8
Parks and Recreation:

Number of recreation classes 63 321 547 517 782 Number of facility rentals 208 248 182 207 170 Water:

Total connections 45,490 45,280 45,913 46,090 46,302 Sewer:

Total connections 60,777 61,746 61,805 38,996 41,209 Source: Various City departments
* Information not available
** Effective, July 1, 2016, fire protection and emergency medical response services were transferred to the San Bernardino County Fire Protection District.

Mayor and City CouncilFebruary 4, 2026

Mayor and City Council
February 4, 2026