Agenda packet — Upland City Council, April 10, 2023 (part 1 of 2)

Monday, April 10, 2023
Open session begins at 7:00 p.m.

City Council Chamber
City Hall, 460 N. Euclid Avenue
Residents may observe the City Council meetings remotely via livestream on the City website, Spectrum Cable TV Channel 3, or Frontier Cable TV Channel 26.

Pages

1.CALL TO ORDER AND ROLL CALL

2.ADDITIONS-DELETIONS TO AGENDA

3.ORAL COMMUNICATIONS
This is a time for any citizen to comment on item listed on the closed session agenda only. Anyone wishing to address the legislative body is requested to submit a speaker card to the City Clerk at or prior to speaking. The speakers are requested to keep their comments to no more than three (3) minutes. The use of visual aids will be included in the time limit.

CLOSED SESSION BEGINS AT 6:00 p.m.

4.CLOSED SESSION
a.GOVERNMENT CODE SECTION 54956.95 - LIABILITY CLAIMS (WORKER'S COMP)
Claimant: Donald Dodt
Agency: City of Upland
b.CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - EXISTING

LITIGATION
(Paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Case Name: Ching Patterson v. City of Upland
San Bernardino County Superior Court of California Case No.CIVSB2205499 c.CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS

California Government Code Section 54956.8
Property: Approximately 160 feet west of the southwest corner of Washington Boulevard and 6th Avenue in the City of Upland (Assessor Parcel Number, APN:
1046-233-25)
City Negotiators: City Manager Michael Blay, Development Services Director Robert Dalquest, and Economic Development Coordinator Melecio Picazo Negotiating Party: George Gibson
Under Negotiation: Price and Terms

5.INVOCATION
Mark Fields, Retired Pastor, Upland Community Resource Center

6.PLEDGE OF ALLEGIANCE

7.PRESENTATIONS
Presentation of a Certificate of Recognition to Linda Clinton, 41st Assembly District 2023 Woman of Distinction
Presentation of a Certificate of Recognition to Diane Smyers, 2023 Woman of the Year from Assembly District 53
Proclamation declaring April 2023 as Child Abuse Prevention Month, accepted by Interim Children’s Network Officer, Wendy Alvarez
Presentation of a Certificate of Recognition to Neil Gerard for his years of service to Upland Community Emergency Response Team (CERT)
Proclamation declaring April 28, 2023 as National Arbor Day, accepted by Operations Supervisor/City Arborist Brett Lance

8.CITY ATTORNEY

9.ORAL COMMUNICATIONS
This is a time for any citizen to comment on any item listed or not listed on the agenda.

Anyone wishing to address the legislative body is requested to submit a speaker card to the City Clerk at or prior to speaking. The speakers are requested to keep their comments to no more than three (3) minutes. Speakers will be given five (5) minutes during public hearings. The use of visual aids will be included in the time limit. Public comments and questions for the purpose of hearing current matters of concern in our community and to provide citizens a method for the public to hear those concerns in an open venue is encouraged. However, under the provisions of the Brown Act, the City Council is prohibited from discussion of items not listed on the agenda, and therefore, the City Council, City Manager, or City Attorney will take communications under advisement for consideration and appropriate response or discussion at a later time.

Individuals who demonstrate disruptive conduct during City Council meetings that prevent the City Council from conducting its meeting in an orderly manner are guilty of a misdemeanor as stated in PC403, disrupting a public meeting, and are subject to removal from the chamber or arrest.

10.CONSENT CALENDAR

All matters listed under the Consent Calendar are considered to be routine and will be enacted by one roll call vote. There will be no separate discussion of these items unless members of the legislative body request specific items be removed from the Consent Calendar for separate action.

Recommended Action:

Approve the Consent Calendar
a.APPROVAL OF MINUTES 5
Recommended Action:

Approve the Regular Meeting Minutes of March 27, 2023 and the Special Workshop Minutes of April 3, 2023. (Staff Person: Keri Johnson) b.APPROVAL OF A SECOND EXTENSION TO THE AGREEMENT WITH CARL

WARREN AND COMPANY FOR CLAIMS ADMINISTRATION FOR THE CITY'S

SELF INSURANCE PROGRAM
12 CEQA: Not a Project
Recommended Action:

Approve the second extension of the agreement with Carl Warren and Company for claims administration for the City’s self-insurance Program. (Staff Person:

Stephen Parker)
c.CONSIDER APPROVAL OF THE REVISIONS TO THE JOB SPECIFICATIONS

FOR THE UTILITY SYSTEM WORKER SERIES
35 CEQA: Not a Project
Recommended Action:

Approve the revisions to the job specifications for the Utility System Worker series. (Staff Person: Stephen Parker)
d.CONSIDER APPROVAL OF ALLOCATION OF ASSET FORFEITURE FUNDS

AND USE OF FUNDS FOR TRAINING
54 CEQA: Not a Project
Recommended Action:

Approve an appropriation of $5,000 using fund balance in the Asset Forfeiture Fund (220) and approve the use of funding to facilitate training. (Staff Person:

Marcelo Blanco)
e.APPROVE PROFESSIONAL SERVICES AGREEMENTS WITH ARCHITERRA

DESIGN GROUP TO PREPARE CONSTRUCTION PLANS AND WITH MADOLE & ASSOCIATES FOR CIVIL ENGINEERING SERVICES FOR THE TOM

THOMAS MAGNOLIA PLAZA
55 CEQA: Determine to be Exempt
Recommended Action:

Approve Professional Services Agreements with Architerra Design Group in the amount of $140,292.75 to prepare construction plans and with Madole & Associates to provide Civil Engineering Services at no cost and for the City Council to accept this donation valued at $25,000, for the Tom Thomas Magnolia

Plaza on 0.69-acre located between Second Avenue and Third Avenue, adjacent to the Pacific Electric Trail. (Staff Person: Robert Dalquest)

11.PUBLIC HEARINGS

12.COUNCIL COMMITTEE REPORTS
a.COUNCIL REPORTS ON REGIONAL COMMITTEE MEETING, TRAINING, OR

CONFERENCE ATTENDANCE
Councilmembers will provide oral reports on any meetings, trainings, or conferences they attended on behalf of the City. This item is for information only.

13.BUSINESS ITEMS
a.ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND RELATED REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
91 CEQA: Not a Project
Recommended Action:

Receive and file the Annual Comprehensive Financial Report (ACFR), the Single Audit Report on Federal Award Programs, the Auditor’s Communication with Those Charged with Governance, the Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters, and the Independent Accountants’ Report of Agreed-Upon Procedures Applied to Appropriations Limit Worksheets for the Fiscal Year Ended June 30, 2022. (Staff Person: Stephen Parker)

14.COUNCIL COMMUNICATIONS

15.CITY MANAGER

16.ADJOURNMENT
The next regularly scheduled City Council meeting is Monday, April 24, 2023.

NOTE: If you challenge the public hearing(s) or the related environmental determinations in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Upland, at, or prior to, the public hearing.

All Agenda items and back-up materials are available for public review at the Upland Public Library, downstairs reference desk at 450 North Euclid Avenue, the City Clerk's Office at 460 North Euclid Avenue and the City website at www.uplandca.gov .

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, 909-931-4120.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] On April 5, 2023 a true and correct copy of this agenda was posted on the bulletin boards at 450 N. Euclid Avenue (Upland Public Library) and 460 N. Euclid Avenue (Upland City Hall) and the City website at www.uplandca.gov

1 MINUTES OF THE REGULAR MEETING OF THE UPLAND CITY COUNCIL

March 27, 2023
City Council Chamber
City Hall, 460 N. Euclid Avenue

Members Present: Mayor Bill Velto, Councilmember James Breitling, Councilmember Carlos A. Garcia, Councilmember Shannan Maust, Councilmember Rudy Zuniga

Staff Present: City Manager Michael Blay, City Attorney Stephen P. Deitsch, City Clerk Keri Johnson
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The regular meeting of the Upland City Council was called to order by Mayor Bill Velto at 5:33 p.m. in the Council Chamber of the Upland City Hall.

2. ADDITIONS-DELETIONS TO AGENDA
None.

3. ORAL COMMUNICATIONS
Christina Schulz, stated she was concerned about cell towers in San Antonio Park, the aesthetics of the towers, and how it affects the natural habitat of the park.

Natasha Walton, People for Upland Parks, requested that the Council not move forward with item 4B on the agenda and spoke in opposition to park land being used for non- recreational purposes.

4. CLOSED SESSION
At 5:40 p.m. Mayor Velto announced that the City Council would recess to Closed Session pursuant to Government Code
a. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - EXISTING

LITIGATION
(Paragraph (1) of subdivision (d) of California Government Code Section 54956.9)
Case Name: Jeannette Vagnozzi v. City of Upland
San Bernardino County Superior Court of California Case No.CIVSB2122496 b. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS California Government Code Section 54956.8
Property: Approximately 152 square foot area located within the San Antonio Park in the City of Upland

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2 City Negotiators: City Manager Michael Blay, Development Services Director Robert Dalquest, and Economic Development Coordinator Melecio Picazo Negotiating Party: John Jones with MD7
Under Negotiation: Price and Terms
The Council reconvened in open session at 7:01 p.m.

5. INVOCATION
Rabbi Stephen Epstein, Temple Sholom

6. PLEDGE OF ALLEGIANCE
Led by Councilmember Maust

7. PRESENTATIONS
Recognition of Upland Woman's Club for their 120 years of service to the Community

8. CITY ATTORNEY
City Attorney Deitsch announced there was no reportable action on Closed Session Item 4B.

Regarding Closed Session Item 4A, City Attorney Deitsch announced that upon motion by Mayor Velto, seconded by Councilmember Zuniga, and carried unanimously, the City Council waived attorney client privilege and closed session confidentiality solely with respect to the closed session discussion which occurred in Special City Council meetings on March 4 and 17, 2019 and April 29, 2019, and in the Regular City Council meeting on May 13, 2019, and specifically consents to City Council Members disclosing only that information from these closed sessions regarding former City Manager Vagnozzi's job performance and termination.

9. ORAL COMMUNICATIONS
Ralph Cavallo, Upland, stated that Upland National Little League does not charge their participants a fee and the proposed fee update will require the League to pay for light use, and further stated that it is wrong to charge fees to Upland National Little League.

William Martinez, Upland, wanted to appeal his water bill for his rental property and stated the outstanding bill was accumulated by his previous tenants. He also requested the Police Department investigate possible drug activity in the alley near the property.

Steve Crest, Upland, suggested that contractors who dig into the streets should be required to properly repair them after construction work is completed and suggested an inspection fee for staff to inspect the streets after completion to ensure the repairs are done properly.

Mallory Cervantes, Upland, stated that rain led to baseball field closures and parents are unhappy that some leagues played on the closed fields.

10. CONSENT CALENDAR
Councilmember Zuniga removed Consent Calendar Item 10D for separate action.

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3 Moved by: Councilmember Garcia
Seconded by: Councilmember Zuniga
Approve the Consent Calendar
Motion: Carried Unanimously

a. APPROVAL OF MINUTES
Approve the Regular Meeting Minutes of March 13, 2023.
b. 2ND READING OF ORDINANCE NO. 1979 AMENDING CHAPTER 17.37 OF

THE UPLAND MUNICIPAL CODE RELATING TO ACCESSORY DWELLING

UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING

THE ORDINANCE IS EXEMPT FROM CEQA
Hold 2nd reading by title only, waive further reading, and adopt Ordinance No. 1979 amending Chapter 17.37 of the Upland Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units, and determine the Ordinance to be Statutorily Exempt from the California Environmental Quality Act.
c. APPROVE THE ESTABLISHMENT OF THE JOB SPECIFICATIONS AND

SALARY RANGE FOR SHELTER ATTENDANT
Approve the establishment of the job specifications and salary range for a part- time Shelter Attendant.
e. TREASURER’S REPORT FEBRUARY 2023
Receive and file the February 2023 Treasurer’s Report.
f. RESOLUTION TERMINATING THE POLICY AND PLAN AGREEMENT

BETWEEN THE CITY OF UPLAND AND HISTORIC DOWNTOWN UPLAND, INC. REGARDING THE DISTRIBUTION OF PARKING AND BUSINESS

IMPROVEMENT AREA FUNDS
Adopt Resolution No. 6709 terminating the Policy and Plan Agreement between the City of Upland and Historic Downtown Upland, Inc., dated April 22, 2019, regarding the distribution of Parking and Business Improvement Area funds in the Downtown.
g. REVIEW OF THE 2022 HOUSING ELEMENT ANNUAL PROGRESS REPORT

ON IMPLEMENTATION OF THE GENERAL PLAN HOUSING ELEMENT
Receive comments from the public on the 2022 Housing Element Annual Element Progress Report and direct staff to submit it to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development.

h. CONSIDER OPTING INTO SETTLEMENT AGREEMENTS WITH
DISTRIBUTORS OF OPIOIDS, WALGREENS CO., WALMART, INC., AND CVS HEALTH CORPORATION/CVS PHARMACY, INC., AND OPIOID

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4 MANUFACTURERS TEVA PHARMACEUTICAL INDUSTRIES LTD. AND

ALLERGAN FINANCE, LLC/ALLERGAN LIMITED
Adopt Resolution No. 6710 authorizing the City Manager to enter into the settlement agreements with Walgreens Co., Walmart, Inc., CVS Health Corporation/CVS Pharmacy Inc., Teva Pharmaceutical Industrials Ltd., and Allergan Finance LLC/Allergan Limited, agree to the terms of the State- Subdivision Agreements, and authorize entry into the State-Subdivision Agreements with the Attorney General.
d. ATHLETIC FACILITIES POLICY AND PROCEDURE UPDATE
There was discussion regarding the Upland School District's use of the baseball fields, the maintenance of the fields, and the fees charged to the leagues.

City Manager Blay stated that the city would work with Upland High School and Western Christian High school regarding a memorandum of understanding for shared use of the fields.

Councilmember Zuniga requested that the Upland Unified School District be removed from Priority Group Classification One.

Councilmember Maust requested that the reservation packet include a form for the applicant to complete if they propose making any improvements or changes to the fields.

Moved by: Councilmember Garcia
Seconded by: Councilmember Zuniga
Approve the proposed changes to the Athletic Facilities Policy and Procedures Manual (formerly Sports Field Policy Handbook) including the removal of Upland Unified School District from Priority Group One, and adding a form to the reservation packet for the applicant to complete if they propose making any changes or improvements to the fields; and adopt Resolution No. 6711 amending the master fee schedule to establish an additional user group category for the use of athletic facilities.

Motion: Carried Unanimously

11. PUBLIC HEARINGS

12. COUNCIL COMMITTEE REPORTS
a. COUNCIL REPORTS ON REGIONAL COMMITTEE MEETING, TRAINING, OR

CONFERENCE ATTENDANCE
Nothing to report.

13. BUSINESS ITEMS

14. COUNCIL COMMUNICATIONS
Councilmembers announced various activities throughout the community, including events they attended.

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5 15. CITY MANAGER
City Manager Blay, provided information on the City's RAISE-UP Grant Program.

16. ADJOURNMENT
At 7:52 p.m., Mayor Velto adjourned in memory of residents Margaret Mistretta and Bill Landecena. The next regularly scheduled City Council meeting is Monday, April 10, 2023.

Keri Johnson, City Clerk

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1 MINUTES OF THE SPECIAL WORKSHOP OF THE UPLAND CITY COUNCIL

April 3, 2023

SPECIAL WORKSHOP
Council Chamber
City Hall, 460 N Euclid Avenue

Members Present: Mayor Bill Velto, Councilmember James Breitling, Councilmember Carlos A. Garcia, Councilmember Shannan Maust, Councilmember Rudy Zuniga

Staff Present: City Manager Michael Blay, City Attorney Stephen P. Deitsch, City Clerk Keri Johnson
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The special workshop of the Upland City Council was called to order by Mayor Velto at 5:00 p.m.

2. ORAL COMMUNICATIONS
Lois Sicking Dieter, Upland, spoke in support of Sycamore Park being developed as a passive nature park and was opposed to any park land swap.

Natasha Walton, Upland, stated the benefits of a passive nature park and questioned whether any outside agencies have any jurisdiction over the land.

Brian Taylor, Upland, stated that the land needs to be kept for park use, questioned whether Sycamore Park was within the mining reclamation plan, and suggested that the City make part of the area a catch basin to recapture ground water.

Ginger Nehls, Upland, spoke in support of a park being developed and stated there is a need for more green space in the City.

3. AGENDA ITEMS
a. CONSIDER OPTIONS FOR THE FUTURE DEVELOPMENT OF SYCAMORE PARK
Assistant City Manager Parker and Recreation and Community Services Manager Gandara presented the staff report, along with a PowerPoint presentation, which is on file in the City Clerk's office.

Council discussed the options for the park including a land swamp, multi-phase master plan, nature park, or a public/private partnership. There was further discussion regarding and the costs associated with each development option, whether a public/private partnership was a viable option, and community workshops for input from the residents.

Moved by: Mayor Velto
Seconded by: Councilmember Breitling

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2 Direct staff to bring back additional information regarding the public/private partnership and hold another workshop for Council to consider the park options.

Motion: Carried Unanimously

4. ADJOURNMENT
Mayor Velto adjourned the workshop at 6:05 p.m. The next regularly scheduled City Council meeting is Monday, April 10, 2023.

Keri Johnson, City Clerk

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DATE: April 10, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, CPA, ASSISTANT CITY MANAGER

TERRY DOYLE, DEPUTY DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT SUBJECT: APPROVAL OF A SECOND EXTENSION TO THE AGREEMENT WITH CARL WARREN AND COMPANY FOR CLAIMS ADMINISTRATION FOR THE CITY’S SELF INSURANCE

PROGRAM

RECOMMENDED ACTION:

It is recommended that the City Council approve the second extension of the agreement with Carl Warren and Company for claims administration for the City’s self-insurance Program.

GOAL STATEMENT
The proposed action supports the City’s goal of reducing risk exposures, legal fees, and other costs associated with general liability, damage of City property, and employment claims.

BACKGROUND
The City maintains an agreement with a Third-Party Administrator (TPA) to manage general liability, property damage and employment claims, as well as subrogation services on behalf of the Cit y.

Carl Warren and Company has over 45 years of experience providing claims and litigation management services for the public sector and has provided these services to the City since 2004. They work as an extension of the City to assist with claims management, claims resolution, and subrogation recovery, which brings consistency and stability to the City’s Risk Management program.

ISSUES AND ANALYSIS
The original term of the current agreement with Carl Warren was through June 30, 2022, with an additional three (3), one (1) year extensions available upon mutual agreement between the City and Carl Warren. The first extension was approved by City Council on March 14, 2022. This would be the second of the one (1) year extensions under the original agreement.

Carl Warren has been a valued partner with the City for multiple years and because of that partnership Carl Warren was able to assist the City in maintaining pre-pandemic rates for fiscal years 2021-2022 and 2022-2023. This extension will be an increase of 2.5% over the 2021 rates, as the first extension held the rates unchanged from the original agreement. If the City and Carl Warren choose to continue their partnership, the final extension will include an additional 2.5% increase for the 2024-2025 fiscal year.

ENVIRONMENTAL DETERMINATION
Not a project

FISCAL IMPACTS
No additional appropriations are needed as this is a regularly budgeted service.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project

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AMENDMENT NO. 2 TO THE AGREEMENT FOR PROFESSIONAL CLAIMS

ADMINISTRATION SERVICES FOR SELF INSURANCE PROGRAM

WITH CARL WARREN & COMPANY, LLC

This Amendment No. 2 to the Professional Services Agreement for Claims Administration Services is made and entered into as of July 1, 2023 by and between the City of Upland, a municipal corporation (“City”) and Carl Warren & Company, LLC, a limited liability company (“Consultant”). City and Consultant are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

WHEREAS, the City and Consultant have entered into an agreement dated July 1, 2021 for the purpose of providing claims administration services for the City’s self-insurance program (the “Original Agreement”).

WHEREAS, the City and the Consultant entered into Amendment No. 1 to the Original Agreement as of July 1, 2022.

WHEREAS, the current term of the Original Agreement as amened shall expire on June 30, 2023.

WHEREAS, pursuant to Section 5 of the Original Agreement, the Parties may by mutual written consent extend the term of the Original Agreement for three (3), one (1) year additional terms.

WHEREAS, the Parties desire to extend the Original Agreement as amended for the second one year extension and outline payment provisions for the continued performance of services.

NOW, THEREFORE, the Parties agree:

1. The Original Agreement as amended is hereby extended for an additional one (1) year term beginning on July 1, 2023 and ending on June 30, 2024 (“Renewal Term”).

a. City agrees to pay Consultant twelve monthly installments of four thousand sixty- seven dollars and fifty cents ($4,067.50) commencing July 1, 2023, for services rendered under the Original Agreement with a not to exceed amount of forty-eight thousand eight hundred ten dollars ($48,810).

b. If City chooses to elect the third and final one (1) year extension, the not to exceed amount will be increased to forty-eight thousand, eight hundred ten dollars ($48,810) that will be paid out to Consultant in twelve monthly installments of four thousand sixty-seven dollars and fifty cents ($4,067.50).

2. All the remaining terms and conditions of the Original Agreement as amended shall remain unchanged and in full force and effect and shall govern the conduct of the Parties during the Renewal Term.

3. Each person signing this Amendment No. 2 to the Original Agreement on behalf of a Party represents and warrants that he or she has the necessary authority to bind such Party and that this Amendment No. 2 is binding on and enforceable against such Party.

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4. This Amendment No. 2 may be signed in counterparts, each of which shall constitute an original.

IN WITNESS WHEREOF, the City and Consultant have approved this Amendment No. 2 effective on the day and year first above written.

CITY: CONSULTANT:

City of Upland Carl Warren & Company, LLC
460 N. Euclid Ave. 11209 N. Tatum Blvd, Suite 130
Upland CA 91785 Phoenix, AZ 85028

By: By: _________________________________
Michael Blay Richard McAbee
City Manager Chief Marketing Officer

ATTEST:

By:

Keri Johnson
City Clerk

APPROVED AS TO FORM:

By:

Stephen Deitsch
City Attorney

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DATE: April 10, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, CPA, ASSISTANT CITY MANAGER

TERRY DOYLE, DEPUTY DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT SUBJECT: CONSIDER APPROVAL OF THE REVISIONS TO THE JOB SPECIFICATIONS FOR THE

UTILITY SYSTEM WORKER SERIES

RECOMMENDED ACTION:

It is recommended that the City Council approve the revisions to the job specifications for the Utility System Worker series.

GOAL STATEMENT
The proposed action supports the City’s goal to correctly classify employees based on the job duties performed .

BACKGROUND
The City of Upland’s Merit System Rules and Regulations establish the personnel system for the City of Upland and provide for an equitable and uniform procedure for dealing with personnel matters through a department of personnel and provide for employment within the City of Upland on a merit basis, so the best qualified person shall be brought into the service of the City.

In addition to establishing an equitable and uniform procedure for dealing with personnel matters, the Merit System Rules and Regulations establishes a classification plan for personnel. This classification plan provide s a group of jobs by commonality of duties, responsibilities, and functions for each job specification within the plan.

From time-to-time, as may be deemed necessary to carry out the intent and purposes of the City, the Council may revise the classification plan covering all positions in the competitive service.

ISSUES AND ANALYSIS
The revisions to the job specifications for the Utility System Worker series are needed to accurately reflect the duties the position is performing and to revise the minimum qualifications. The attached document shows a redline version of all proposed changes to the specifications for the series.

Although, all job specifications were recently reviewed as part of the Classification and Compensation Study the City is conducting and approved by Council, it was discovered there were a few duties listed on the specifications that these positions do not perform such as repair broken sewer lines, cleans, repairs, and services manholes. In addition, to that clean-up the City, has updated the licenses and certifications section s to reflect the certifications needed to perform the work of this series.

All of these specifications are part of the General Unit and the Upland City Employees Association (UCEA) has been notified of the revisions.

ENVIRONMENTAL DETERMINATION
Not a project.

FISCAL IMPACTS
There is no fiscal impact associated with this action.

ALTERNATIVES
Provide alternative direction to staff.

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CEQA: Not a Project

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November 2022
FLSA: Non-Exempt

UTILITY WORKER TRAINEE - WATER

DEFINITION

Under immediate supervision, performs a variety of duties involved in the maintenance, repair, installation, and construction of the water distribution pipeline system and associated areas; and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED

Receives immediate supervision from assigned supervisory or management personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

This is the trainee -level classification in the Utility Worker - Water series. Initially under close supervision, incumbents learn and perform a variety of duties involved in the maintenance, repair, installation, and construction of the water distribution pipeline system and associated areas.

This training classification is limited to twelvesix (126) months. Employees may have only limited or no directly related work experience and are required to begin the work toward obtaining certifications required for the Utility Worker I/II – Water classification within this twelvesix (126) month trainee period, as well as demonstrate satisfactory performance, to promote to the classification of Utility Worker I - Water.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so qualified employees can perform the essential functions of the job.

Positions perform these duties and responsibilities in a training capacity.

 Installs, renews, and disconnects water and wastewater services; repairs service leaks; installs and repairs mains, laterals, valves, and fittings; installs and repairs hydrants; reads, replaces, repairs, and rebuilds meters; turns on and off main line valves, hydrants, and fire service lines; installs tanker meters to hydrants; exercises valves and hydrants.
 Participates in hydro-jetting excavation for the utilities division; safely excavates around underground utilities; repairs broken sewer lines; cleans, repairs, and services manholes, catch basins, and sewer lines; performs confined space entry as required.
 Raises vault lids and value caps; forms, pours, and finishes concrete around hydrants in alleys and sidewalks and around meter boxes; lays asphalt; installs and repairs fences and gates; installs shoring in ditches.
 Operates a variety of technical, hydraulic, pneumatic, or motorized equipment to maintain or operate utility systems.
 Monitors, analyzes, evaluates, and maintains mechanical operation of equipment used to produce, distribute, collect, or treat potable and recycled water and wastewater.  Cleans and maintains pump and reservoir sites; drains, washes down, and repairs facility coating; chlorinates wells and reservoirs.
 Paints piping, walks, building interiors and exteriors, gates, and other structures; performs welding, fabrication of pipelines, and pipefitting.

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Utility Worker Trainee – Water

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 Observes safety precautions regarding traffic control, confined space, trenching, excavating, and power equipment operation; sets up traffic control equipment; directs traffic in the street during construction processes.
 Drives vehicles to work sites and dumping areas; loads vehicles on trailers and hauls trailers to worksites; loads and unloads material and debris from dump trucks and pickup trucks.  Performs a variety of skilled and semi-skilled tasks in the construction, maintenance, and servicing of City water and storm drain collection systems; performs maintenance and repair activities on sewer and storm drain collection system facilities; flushes sewer mains, removes debris, and repairs and/or replaces damaged pipe.
 Interprets and applies technical information from manuals, drawings, specifications, layouts, blueprints, and schematics; draws maps and records measurements.
 Removes concrete, sets forms, pours, and finishes concrete to repair curbs, gutters, driveways, and sidewalks.
 Removes asphalt and installs temporary asphalt concrete repairs;repairs, sprays emulsion.  Performs landscape duties at pump and reservoir sites.  Answers emergency calls from the public and other agencies; responds to sanitary sewer overflow emergency calls and sewer back-up customer calls and takes appropriate action which may include placing traffic control measures, sandbags, and providing necessary notifications; maintains records and logs; completes reports, as necessary.
 Operates a variety of equipment and vehicles including pickup and dump trucks, tractors, trenchers, loaders, boom sprayers, back hoes, clamp truck, aerial towers and bucket trucks, sewer vactor truck, sewer flush truck, cement grinding, and air pressure equipment; assists with storm drain cleaning and maintenance; performs routine preventive maintenance on equipment and vehicles as assigned.  Utilizes oxygen and acetylene torch to heat up and/or cut piping for removal; solders copper plumbing; occasionally welds fire hydrants and water pipes.
 Utilizes an underground service locator to accurately mark existing potable and reclaimed water utilities.
 Prepares written and oral reports related to activities and incidents; performs computer data entry.  Assists other divisions and/or departments as directed.  Observes and complies with City and mandated safety rules, regulations, and protocols.  Performs other duties as assigned.

QUALIFICATIONS

Positions exercise these knowledge and abilities statements in a training capacity.

Knowledge of:

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Utility Worker Trainee – Water

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 Operational characteristics of specialized water and sewage production and distribution system maintenance and repair.
 Materials, methods, practices, and equipment used in water and sewer production and distribution systems.
 Materials, methods, practices, and equipment used in street maintenance and repair.  Proper placement of cones, barricades, and warning devices and directing traffic flow at job sites.  Safe driving principles and practices; traffic laws, ordinances, and rules involved in truck and heavy equipment operations.
 City and mandated safety rules, regulations, and protocols.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language to effectively perform the work.  Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

Ability to:

 Perform semi-skilled and skilled maintenance, construction, and repair work in the area of work assigned.
 Read, interpret, and apply technical information from manuals, drawings, specifications, layouts , blueprints, and schematics.
 Understand, interpret, apply, explain, and ensure compliance with applicable federal, state, and local laws, regulations, policies and procedures, and departmental policies related to work performed.  Perform simple cement and masonry work; perform minor repairs and adjustments to equipment and tools.
 Operate a variety of vehicles and equipment in a safe and effective manner.  Assist in the training of others in the safe operation of tools and equipment.  Understand and follow oral and written instructions.
 Work safely and adhere to principles of safety when working near traffic, in confined spaces, in trenches, or in other environments.
 Perform accurate mathematical calculations.
 Maintain accurate records.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education:
 Equivalent to completion of the twelfth (12th) grade.

Experience:
 Exposure and/or experience performing construction and/or maintenance work.

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Utility Worker Trainee – Water

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Licenses and Certifications:

 Possession of a valid California Driver’s License, to be maintained throughout employment.

 Successful acquisition within 12 months of employment, a valid Grade I (D-1) Water Distribution Operator Certificate issued by the California State Water Resources Control Board, to be maintained throughout employment.

PHYSICAL DEMANDS

Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, grasp, and make repetitive hand movement in the performance of daily duties; possible entry into confined spaces and the use of confined entry equipment, to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vision to inspect and operate equipment. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, which may include working on live electrical wires. Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 50 pounds or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS

Employees work in the field and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, hazardous physical substances and fumes, dust, and air contaminants. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures.

Department/Division: Public Works
Reports To: Lead Utility Worker
Provides Direction To: N/A
Exemption Status: Non-Exempt
Employment Grouping: General
Date Prepared: November 2022
Date Updated: January 23, 2023

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November 2022
FLSA: Non-Exempt

UTILITY WORKER I/II - WATER

DEFINITION

Under immediate (Utility Worker I - Water) or general (Utility Worker II - Water) supervision, performs a variety of duties involved in the maintenance, repair, installation, and construction of the water distribution pipeline system and associated areas; and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED

Receives immediate (Utility System Worker I - Water) to general (Utility System Worker II - Water) supervision from assigned supervisory or management personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

Utility Worker I - Water: This is the entry-level classification in the Utility Worker - Water series. Initially under close supervision, incumbents learn and perform a variety of duties involved in the maintenance, repair, installation, and construction of the water distribution pipeline system and associated areas. As experience is gained, assignments become more varied, complex, and difficult; close supervision and frequent review of work lessen as an incumbent demonstrates skill to perform the work independently.

Positions at this level usually perform most of the duties required of the positions at the Utility Worker II – Water level but are not expected to function at the same skill level and usually exercise less independent discretion and judgment in matters related to work procedures and methods. Work is usually supervised while in progress and fits an established structure or pattern. Exceptions or changes in procedures are explained in detail as they arise.

Utility Worker II - Water: This is the fully qualified journey-level classification in the Utility Worker - Water series. Positions at this level are distinguished from the Utility Worker I – Water by the performance of the full range of duties as assigned, working independently, and exercising judgment and initiative.

Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit.

Positions in the Utility Worker – Water class series are flexibly staffed; positions at the Utility Worker II – Water level are normally filled by advancement from the Utility Worker I – Water level; progression to the Utility Worker II - Water level is dependent on (i) management affirmation that the position is performing the full range of duties assigned to the classification; (ii) satisfactory work performance; (iii) the incumbent meeting the minimum qualifications for the classification including any licenses and certifications; and (iv) management approval for progression to the Utility Worker II – Water level.

Positions at the Utility Worker I – Water level may perform some of these duties and responsibilities in a learning capacity.

 Installs, renews, and disconnects water services; repairs service leaks; installs and repairs mains, laterals, valves, and fittings; installs and repairs hydrants; reads, replaces, repairs, and rebuilds meters; turns on and off main line valves, hydrants, and fire service lines; installs tanker meters to hydrants; exercises valves and hydrants.

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Utility Worker I/II – Water

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 Participates in hydro-jetting excavation for the utilities division; safely excavates around underground utilities; repairs broken sewer lines; cleans, repairs, and services manholes, catch basins, and sewer lines; performs confined space entry as required.
 Raises vault lids and value caps; forms, pours, and finishes concrete around hydrants in alleys and sidewalks and around meter boxes; lays asphalt; installs and repairs fences and gates; installs shoring in ditches.
 Operates a variety of technical, hydraulic, pneumatic, or motorized equipment to maintain or operate utility systems.
 Paints piping, walks, building interiors and exteriors, gates, and other structures; performs welding, fabrication of pipelines, and pipefitting.
 Observes safety precautions regarding traffic control, confined space, trenching, excavating, and power equipment operation; sets up traffic control equipment; directs traffic in the street during construction processes.
 Drives vehicles to work sites and dumping areas; loads vehicles on trailers and hauls trailers to worksites; loads and unloads material and debris from dump trucks and pickup trucks.  Performs a variety of skilled and semi-skilled tasks in the construction, maintenance, and servicing of City water systems; performs maintenance and repair activities on water distribution system facilities; removes debris, and repairs and/or replaces damaged pipe.  Interprets and applies technical information from manuals, drawings, specifications, layouts, blueprints, and schematics; draws maps and records measurements.
 Removes concrete, sets forms, pours, and finishes concrete to repair curbs, gutters, driveways, and sidewalks.
 Removes asphalt and installs temporary asphalt concrete repairs;repairs, sprays emulsion.  Performs landscape duties at pump and reservoir sites.  Operates a variety of equipment and vehicles including pickup and dump trucks, tractors, trenchers, loaders, boom sprayers, back hoes, clamp truck, aerial towers and bucket trucks, sewer vactor truck, sewer flush truck, cement grinding, and air pressure equipment; assists with storm drain cleaning and maintenance; performs routine preventive maintenance on equipment and vehicles as assigned.  Utilizes oxygen and acetylene torch to heat up and/or cut piping for removal; solders copper plumbing; occasionally welds fire hydrants and water pipes.
 Utilizes an underground service locator to accurately mark existing potable and reclaimed water utilities.
 Prepares written and oral reports related to activities and incidents; performs computer data entry.  Assists other divisions and/or departments as directed.  Observes and complies with City and mandated safety rules, regulations, and protocols.  Performs other duties as assigned.

QUALIFICATIONS

Positions at the Utility Worker I – Water level may exercise some of these knowledge and abilities statements in a learning capacity.

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Utility Worker I/II – Water

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Knowledge of:

 Methods, techniques, tools, and the operational characteristics of light and moderately heavy motorized mechanical equipment.
 Safe work methods and safety regulations pertaining to the type of work being performed.  Policies, procedures, laws, codes, and regulations pertaining to assigned programs and functions.  Occupational hazards in the areas of sewer, storm drain, and water maintenance, repair , and construction.
 Operational characteristics of specialized water and sewage production and distribution system maintenance and repair.
 Materials, methods, practices, and equipment used in water and sewer production and distribution systems.
 Materials, methods, practices, and equipment used in street maintenance and repair.  Proper placement of cones, barricades, and warning devices and directing traffic flow at job sites.  Safe driving principles and practices; traffic laws, ordinances, and rules involved in truck and heavy equipment operations.
 City and mandated safety rules, regulations, and protocols.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language to effectively perform the work.  Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

Ability to:

 Perform semi-skilled and skilled maintenance, construction, and repair work in the area of work assigned.
 Read, interpret, and apply technical information from manuals, drawings, specifications, layouts , blueprints, and schematics.
 Understand, interpret, apply, explain, and ensure compliance with applicable federal, state, and local laws, regulations, policies and procedures, and departmental policies related to work performed.  Perform simple cement and masonry work; perform minor repairs and adjustments to equipment and tools.
 Operate a variety of vehicles and equipment in a safe and effective manner.  Assist in the training of others in the safe operation of tools and equipment.  Understand and follow oral and written instructions.
 Work safely and adhere to principles of safety when working near traffic, in confined spaces, in trenches, or in other environments.
 Perform accurate mathematical calculations.
 Maintain accurate records.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

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Utility Worker I/II – Water

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Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education:
 Utility Worker I/II – Water: Equivalent to completion of the twelfth (12th) grade.

Experience:
 Utility Worker I- Water: One (1) year of experience performing construction and/or maintenance work with a public agency, utility district, or similar organization.  Utility Worker II - Water: Three (3) years of increasingly responsible experience performing construction and/or maintenance work with a public agency, utility district, or similar organization.

Licenses and Certifications:

 Utility Worker I - Water: Possession of a valid California Driver’s License, to be maintained throughout employment.
 Utility Worker I - Water: Possession of, or successful acquisition within 12 months of employment, a valid California Class A or B Driver’s License, to be maintained throughout employment.  Utility Worker I - Water: Possession of, or successful acquisition within twelve (12) months of appointment, a valid Grade I (D-1) Water Distribution Operator Certificate issued by the California State Water Resources Control Board, to be maintained throughout employment.  Utility Worker II - Water: Possession of a valid California Class A or B Driver’s License, to be maintained throughout employment.
 Utility Worker II - Water: Possession of a valid Grade III (D-21) Water Distribution Operator Certificate issued by the California State Water Resources Control Board, to be maintained throughout employment.
 Utility Worker II - Water: Possession of, or successful acquisition within twelve (12) months of appointment, a valid Grade II (D-2) Water Distribution Operator Certificate issued by the California State Water Resources Control Board, to be maintained throughout employment.

PHYSICAL DEMANDS

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS

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Utility Worker I/II – Water

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and procedures.

Department/Division: Public Works Department
Reports To: Utility System Supervisor
Provides Direction To: Not applicable
Exemption Status: Non-exempt
Employment Grouping: General
Date Prepared: November 2022
Date Updated: January 23, 2023

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November 2022
FLSA: Non-Exempt

UTILITY WORKER TRAINEE - SEWER

DEFINITION

Under immediate supervision, performs a variety of skilled, semi-skilled, and unskilled tasks in the construction, maintenance, and servicing of City sewer and storm drain collection systems ; operates a variety of light to heavy duty power-driven equipment as assigned; and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED

Receives immediate supervision from assigned supervisory or management personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

This is the trainee-level classification in the Utility Worker - Sewer series. Initially under close supervision, incumbents learn and perform routine technical duties in support of the City’s sewer and storm drain collection systems.

This training classification is limited to twelvesix (126) months. Employees may have only limited or no directly related work experience and are required to begin the work toward obtaining certifications required for the Utility Worker I/II – Sewer classification within this twelevesix (12 6) month trainee period, as well as demonstrate satisfactory performance, to promote to the classification of Utility Worker I - Sewer.

Positions perform these duties and responsibilities in a training capacity.

 Performs a variety of skilled, semi-skilled, and unskilled tasks in the construction, maintenance, and servicing of City sewer and storm drain collection systems; performs maintenance and repair activities on sewer and storm drain collection system facilities; flushes sewer mains, removes debris, and repairs and/or replaces damaged pipe.
 Interprets and applies technical information from manuals, drawings, specifications, layouts, blueprints, and schematics.
 Removes concrete, sets forms, and pours and finishes concrete to repair curbs, gutters, driveways, and sidewalks; removes asphalt and installs temporary asphalt for repairs; sprays emulsion.  Answers emergency calls from the public and other agencies; responds to sanitary sewer overflow emergency calls and sewer back-up customer calls; takes appropriate action which may include placing traffic control measures, sandbags, and providing necessary notifications.  Operates a variety of equipment and vehicles including pickup and dump trucks, tractors, trenchers, loaders, boom sprayers, back hoes, clamp truck, aerial towers and bucket trucks, sewer vactor truck, sewer flush truck, cement grinding, air pressure, and other maintenance equipment; assists with storm drain cleaning and maintenance; performs routine preventive maintenance on equipment and vehicles.  Participates in the control of traffic; sets up traffic safety control devices, cones, and barricades as necessary; directs traffic at the work site, as required.

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Utility Worker Trainee - Sewer

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 Prepares written and oral reports related to activities and incidents; performs computer data entry.  Assists other divisions and/or departments, as directed.  Observes and complies with City and mandated safety rules, regulations, and protocols.  Performs other duties as assigned.

QUALIFICATIONS

Positions exercise these knowledge and abilities statements in a training capacity.

Knowledge of:

Ability to:

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Utility Worker Trainee - Sewer

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 Use tact, initiative, prudence, and independent judgment within general poli cy and procedural guidelines.
 Organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education:
 Equivalent to completion of the twelfth (12th) grade.

Experience:
 Exposure and/or experience performing a variety of maintenance, repair, construction, and equipment operation work.

Licenses and Certifications:

 Possession of a valid California Driver’s License, to be maintained throughout employment.

 Successful acquisition within twelve (12) months of appointment, a valid California Water Environmental Association (CWEA) Wastewater Collection System Maintenance Grade I (C-1) certification, to be maintained throughout employment.

PHYSICAL DEMANDS

Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, grasp and make repetitive hand movement in the performance of daily duties; possible entry into confined spaces and the use of confined entry equipment, to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vision to inspect and operate equipment. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, which may include working on live electrical wires. Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 60 pounds or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS

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Utility Worker Trainee - Sewer

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November 2022
FLSA: Non-Exempt

UTILITY WORKER I/II - SEWER

DEFINITION

Under immediate (Utility Worker I - Sewer) or general (Utility Worker II - Sewer) supervision, performs a variety of skilled, semi-skilled, and unskilled tasks in the construction, maintenance, and servicing of City sewer and storm drain collection systems, streets, parks, trees, landscaping, park facilities, and equipment; operates a variety of light to heavy duty power-driven equipment; and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED

Receives immediate (Utility Worker I - Sewer) to general (Utility Worker II - Sewer) supervision from assigned supervisory or management personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

Utility Worker I - Sewer: This is the entry-level classification in the Utility Worker - Sewer series. Initially under close supervision, incumbents learn and perform routine technical duties in support of the City’s sewer and storm drain collection systems, utility facilities, and equipment. As experience is gained, assignments become more varied, complex, and difficult; close supervision and frequent review of work lessen as an incumbent demonstrates skill to perform the work independently. Positions at this level usually perform most of the duties required of the positions at the Utility Worker II – Sewer level but are not expected to function at the same skill level and usually exercise less independent discretion and judgment in matters related to work procedures and methods. Work is usually supervised while in progress and fits an established structure or pattern. Exceptions or changes in procedures are explained in detail as they arise.

Utility Worker II - Sewer: This is the fully qualified journey-level classification in the Utility Worker - Sewer series. Positions at this level are distinguished from the Utility Worker I – Sewer by the performance of the full range of duties as assigned, working independently, and exercising judgment and initiative.

Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit. This class is distinguished from the Senior Utility Worker – Sewer in that the latter performs the more complex work assigned to the series and provides technical and functional direction over lower-level staff.

Positions in the Utility Worker – Sewer class series are flexibly staffed; positions at the Utility Worker II – Sewer level are normally filled by advancement from the Utility Worker I – Sewer level; progression to the Utility Worker II - Sewer level is dependent on (i) management affirmation that the position is performing the full range of duties assigned to the classification; (ii) satisfactory work performance; (iii) the incumbent meeting the minimum qualifications for the classification including any licenses and certifications; and (iv) management approval for progression to the Utility Worker II – Sewer level.

Positions at the Utility Worker I – Sewer level may perform some of these duties and responsibilities in a learning capacity.

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Utility Worker I/II - Sewer

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and/or replaces damaged pipe.
 Interprets and applies technical information from manuals, drawings, specifications, layouts, blueprints, and schematics.
 Removes concrete, sets forms, and pours and finishes concrete to repair curbs, gutters, driveways, and sidewalks; removes asphalt and installs temporary asphalt for repairs; sprays emulsion.  Answers emergency calls from the public and other agencies; responds to sanitary sewer overflow emergency calls and sewer back-up customer calls; takes appropriate action which may include placing traffic control measures, sandbags, and providing necessary notifications.  Operates a variety of equipment and vehicles including pickup and dump trucks, tractors, trenchers, loaders, boom sprayers, back hoes, clamp truck, aerial towers and bucket trucks, sewer vactor truck, sewer flush truck, cement grinding, air pressure, and other maintenance equipment; assists with storm drain cleaning and maintenance; performs routine preventive maintenance on equipment and vehicles.  Participates in the control of traffic; sets up traffic safety control devices, cones, and barricades as necessary; directs traffic at the work site, as required.  Prepares written and oral reports related to activities and incidents; performs computer data entry.  Assists other divisions and/or departments, as directed.  Observes and complies with City and mandated safety rules, regulations, and protocols.  Performs other duties as assigned.

QUALIFICATIONS

Positions at the Utility Worker I – Sewer level may exercise some of these knowledge and abilities statements in a learning capacity.

Knowledge of:

 Methods, techniques, tools, and the operational characteristics of light and moderately heavy motorized mechanical equipment.
 Safe work methods and safety regulations pertaining to the type of work being performed.  Policies, procedures, laws, codes, and regulations pertaining to assigned programs and functions.  Occupational hazards in the areas of sewer, storm drain, and water maintenance, repair , and construction.
 Operational characteristics of specialized water and sewage production and distribution system maintenance and repair.
 Materials, methods, practices, and equipment used in water and sewer collectionproduction and distribution systems.
 Materials, methods, practices, and equipment used in street maintenance and repair.  Proper placement of cones, barricades, and warning devices and directing traffic flow at job sites.  Safe driving principles and practices; traffic laws, ordinances, and rules involved in truck and heavy equipment operations.
 City and mandated safety rules, regulations, and protocols.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language to effectively perform the work.  Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

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Utility Worker I/II - Sewer

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Ability to:

 Perform semi-skilled and skilled maintenance, construction, and repair work in the area of work assigned.
 Read, interpret, and apply technical information from manuals, drawings, specifications, layouts , blueprints, and schematics.
 Understand, interpret, apply, explain, and ensure compliance with applicable federal, state, and local laws, regulations, policies and procedures, and departmental policies related to work performed.  Perform simple cement and masonry work; perform minor repairs and adjustments to equipment and tools.
 Operate a variety of vehicles and equipment in a safe and effective manner.  Assist in the training of others in the safe operation of tools and equipment.  Understand and follow oral and written instructions.
 Work safely and adhere to principles of safety when working near traffic, in confined spaces, in trenches, or in other environments.
 Perform accurate mathematical calculations.
 Maintain accurate records.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education:
 Utility Worker I/II – Sewer: Equivalent to completion of the twelfth (12th) grade.

Experience:
 Utility Worker I- Sewer: One (1) year of experience performing a variety of maintenance, repair, construction, and equipment operation work.
 Utility Worker II - Sewer: Three (3) years of increasingly responsible experience performing a variety of maintenance, repair, construction, and equipment operation work in a municipal utility system or similar environment.

Licenses and Certifications:

 Utility Worker I - Sewer: Possession of a valid California Class C Driver’s License, to be maintained throughout employment.
 Utility Worker I - Sewer: Possession of, or successful acquisition within 12 months of appointment, a valid California Class A or B Driver’s License, with tanker endorsement, to be maintained throughout employment.
 Utility Worker I - Sewer: Possession of, or successful acquisition within twelve (12) months of appointment, a valid California Water Environmental Association (CWEA) Wastewater Collection System Maintenance Grade I (C-1) certification, to be maintained throughout employment.

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Utility Worker I/II - Sewer

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 Utility Worker II - Sewer: Possession of a valid California Class A or B Driver’s License, with tanker endorsement, to be maintained throughout employment.
 Utility Worker II - Sewer: Possession of a valid California Water Environmental Association (CWEA) Wastewater Collection System Maintenance Grade III (C-12) certification, to be maintained throughout employment.
 Utility Worker II - Sewer: Possession of, or successful acquisition within twelve (12) months of appointment, a valid California Water Environmental Association (CWEA) Wastewater Collection System Maintenance Grade II (C-2) certification, to be maintained throughout employment.

PHYSICAL DEMANDS

Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, grasp and make repetitive hand movement in the performance of daily duties; possible entry into confined spaces and the use of confined entry equipment, to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vision to inspect and operate equipment. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, which may include working on live electrical wires. Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 60 pounds or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

Employees must wear and use the proper Personal Protective Equipment (PPE).

ENVIRONMENTAL CONDITIONS

DETAILS:

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DATE: April 10, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: MARCELO A. BLANCO, POLICE CHIEF
MAURICE A. DURAN, POLICE LIEUTENANT
SUBJECT: CONSIDER APPROVAL OF ALLOCATION OF ASSET FORFEITURE FUNDS AND USE OF

FUNDS FOR TRAINING

RECOMMENDED ACTION:

It is recommended that the City Council approve an appropriation of $5,000 using fund balance in the Asset Forfeiture Fund (220) and approve the use of funding to facilitate training.

GOAL STATEMENT
The proposed action supports the City’s goal of providing safe and effective law enforcement services for the residents of Upland.

BACKGROUND
The Upland Police Department participates in the Ontario Regional Interdiction of Narcotics task force (ORION).

This task force is designed to interrupt and diminish the flow of drugs and their illicit proceeds in the Inland Southern California region. Through their enforcement actions, the City of Upland receives asset forfeiture funding on both the state and federal levels. Officers who participate in this task force undergo continuous training to stay current with the constantly changing laws and criminal trends. The INIA Drug/Terrorist Interdiction Training Conference provides valuable training for our officers to stay ahead of these changes.

ISSUES AND ANALYSIS
The Asset Forfeiture account allows for expenditures related to training. The allocation of this funding was not requested during the FY 22/23 budgeting process. The allocation of $5,000 will allow the funding to cover the expenses associated with this training.

ENVIRONMENTAL DETERMINATION
None.

FISCAL IMPACTS
There is no fiscal impact to the General Fund. The recommended action will appropriate $5,000 of fund balance in the Asset Forfeiture Fund (Fund 220) and increase the training budget by the same amount.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project

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DATE: April 10, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: ROBERT D. DALQUEST, DEVELOPMENT SERVICES DIRECTOR SUBJECT: APPROVE PROFESSIONAL SERVICES AGREEMENTS WITH ARCHITERRA DESIGN

GROUP TO PREPARE CONSTRUCTION PLANS AND WITH MADOLE & ASSOCIATES

FOR CIVIL ENGINEERING SERVICES FOR THE TOM THOMAS MAGNOLIA PLAZA ON

0.69-ACRE LOCATED BETWEEN SECOND AVENUE AND THIRD AVENUE,

RECOMMENDED ACTION:

It is recommended that the City Council approve Professional Services Agreements with Architerra Design Group in the amount of $140,292.75 to prepare construction plans and with Madole & Associates to provide Civil Engineering Services at no cost and for the City Council to accept this donation valued at $25,000, for the Tom Thomas Magnolia Plaza on 0.69-acre located between Second Avenue and Third Avenue, adjacent to the Pacific Electric Trail (See Exhibits 1 and 2).

GOAL STATEMENT
The proposed action supports the City’s goal of the Historic Downtown Upland Specific Plan by providing public space to improve the visual aesthetics of Downtown and serve as an urban space for residents and visitors to gather and enjoy the Downtown environment and services.

BACKGROUND
On April 25, 2022, the City Council approved a funding plan for the construction of the Tom Thomas Magnolia Plaza (the “Plaza”) in the amount of $1,860,000. The approved funding plan involved the use of $800,000 from the $1 Million Community Project Funding (CPF) grant received from Congressman Pete Aguilar for the “Downtown Upland Main Street Economic Recovery and Revitalization Project”. The remaining amount is obtained from the fund balance in the Plaza’s account which is $253,900, and $806,100 from Par k Quimby Development Funds. The required findings were made by the City Council for use of Park Quimby Development funds pursuant to Section 66477 of the State Government Code (known as the Quimby Act). A summary of the project’s cost is provided below for the City Council’s reference:

Estimated Costs:

Landscape and amenities construction: $976,012
Landscape Planting: $71,360
Irrigation System: $33,387
Maintenance: $3,874

Subtotal: $1,084,633
15% Contingency: $162,695
33% Prevailing Wage Factor: $411,618

Total Estimated Costs: $1,658,946

Preparation of construction plans and specifications (12% of project Costs):
$200,000 (Rounded)

Grand Total: $1,860,000 (Rounded)

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ISSUES AND ANALYSIS
On June 9, 2022, a Request For Proposals (RFP) was sent to six (6) landscape architectural firms to obtain proposals and cost estimates to prepare construction plans for the Tom Thomas Magnolia Plaza project. Staff followed the procurement process to obtain professional services outlined i n Chapter 2.48 (Purchasing) of the Upland Municipal Code, and the City’s Purchasing Policy provided in Administrative Policy and Procedure No. 214.

At the end of a 30-day period to receive proposals, only one firm submitted a proposal which was Architerra Design Group (“Architerra”). The cost estimate submitted by Architerra to prepare construction plans based on the approved design is $140,292.75. This amount is well under the project’s budget which was estimated to be twelve percent (12%) of the project’s costs, or $200,000. Architerra’s proposal does not include the cost for civil engineering services to prepare surveying and staking, grading and drainage plans, water quality management plan, and a storm water pollution and prevention Plan. Mark Berto ne of Madole & Associates, Inc. had previously offered to donate his civil engineering services up to $25,000 for the project after seeing a presentation at the May 2021 Planning Commission meeting. Mr. Bertone estimated that his company (Madole & Associates) could perform the civil engineering services required for the project within the amount of his donated services. City staff would like to acknowledge Mr. Bertone’s generous donation toward the project. On advice of the City Attorney, a professional ser vices agreement has been prepared with Madole & Associates who will be acting as the City’s Civil Engineer on this project and will coordinate the completion and timing of the scope of work (See Exhibit A in the PSA) with Architerra in the completion of th e project’s construction plans.

ENVIRONMENTAL DETERMINATION
On March 28, 2022, the City Council approved the project and determined that it was Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the CEQA Guidelines (Class 3 New Construction or Conversion of Small Structures), and Statutory Exemption pursuant to Section 15061(b)(3) of the CEQA Guidelines. A Notice of Exemption (NOE) was filed with the San Bernardino County Clerk of the Board of Supervisors Office on April 5, 2022, pursuant to Section 15062 of the CEQA Guidelines.

FISCAL IMPACTS
The Tom Thomas Magnolia Plaza project was approved by the City Council to be funded from the FY2022 Community Project Funding Grant (CPF) and Park Quimby Development Fees. No General Fund expenses are anticipated to be expended to design and construct the project.

ALTERNATIVES
The City Council may provide staff with alternative direction.

CEQA: Determine to be Exempt

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1 CITY OF UPLAND

PROFESSIONAL SERVICES AGREEMENT

This Agreement is made and entered into as of April 10, 2023, by and between the City of Upland, a public agency organized and operating under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”), and Architerra, Inc., a California Corporation, with its principal place of business at 10221-A Trademark Street, Rancho Cucamonga, CA 91730 d/b/a Architerra Design Group (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Professional Architectural and Engineering Design Services for the Tom Thomas Magnolia Plaza Project (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $140,292.75. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.

c. The City Manager may approve Additional Work, as further defined in Section 3, up to ten percent (10%) of the amount of the Agreement or fifty thousand dollars ($50,000.00). In no event shall the total sum of the agreement (original compensation amount and Additional Work) exceed fifty thousand dollars ($50,000.00). Any additional work in excess of this amount shall be approved by the City Council.

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DATE: April 10, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, CPA, ASSISTANT CITY MANAGER

LONDA BOCK-HELMS, CPA, FINANCE OFFICER
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND RELATED REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

RECOMMENDED ACTION:

It is recommended that the City Council receive and file the Annual Comprehensive Financial Report (ACFR), the Single Audit Report on Federal Award Programs, the Auditor’s Communication with Those Charged with Governance, the Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters, and the Independent Accountants’ Report of Agreed -Upon Procedures Applied to Appropriations Limit Worksheet s for the Fiscal Year Ended June 30, 2022.

GOAL STATEMENT

The proposed action supports the City’s goal to manage the City’s resources in a fiscally responsible manner.

BACKGROUND
Each year Finance is responsible for the preparation and publication of the City’s Annual Comprehensive Financial Report (ACFR) following an independent audit. The ACFR presents a summary of financial position and financial transactions for the 2021/22 fiscal year.

A municipality is also subject to a Single Audit. Any City receiving federal recipient award funding that has expended $750,000 in any fiscal year is subject to a Single Audit. The City of Upland expended over $750,000 during the year, and was subject to the Single Audit requirement for FY 2021/22.

The ACFR has been prepared by the Administrative Services Department in conformity with generally accepted accounting principles. This report includes all funds and entities that are within the control of the City. The activity of the Successor Agency to the Upland Community Redevelopment Agency is included in the report within a private - purpose trust fund.

ISSUES AND ANALYSIS
The ACFR is organized into three sections: 1) the Introductory Section, which includes the letter of transmittal, the City’s organizational chart and a list of principal officials for the fiscal year ended June 30, 2022; 2) the Financial Section, which includes the independent auditor’s report, management’s discussion and analysis, the basic financial statement and supplementary information; and 3) the Statistical Section which includes information on financial trends, revenue and debt capacity, and demographic, economic and operating information for multiple years. To gain an initial understanding of the report, the reader is directed to the letter of transmittal and management’s discussion and analysis.

The firm of Van Lant & Fankhanel, LLP, Certified Public Accountants, has conducted an independent audit of the financial statements of the City of Upland for the fiscal year ended June 30, 2022 and has issued an “unqualified” opinion thereon. An “unqualified” opinion is the highest rating possible and means that the auditors believe the financial statements of the City fairly present, in all material respects, the financial p osition and changes in financial position and cash flows for the City for the year ended June 30, 2022 in conformance with generally accepted accounting principles. In addition to their report on the City’s financial statements, the independent auditors have also issued three other required reports and letters to the City Council: an auditor communication letter, a Report on

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Internal Controls Over Financial Reporting and On Compliance and Other Matters, and a report on agreed -upon procedures relating to the calculation of the City’s appropriations’ limit for the year ended June 30, 2022.

The Single Audit includes a listing of all federal expenditures the City or its subrecipients spent during 2021/22 fiscal year. The external auditors reviewed those expenditures and the internal controls surrounding them and issue two reports that express opinions in conjunction with the audit and Single Audit.

The first opinion refers to the audit of the City’s financial statements and it indicates that the auditors discovered no deficiencies in internal control over financial reporting and compliance and other matters that they consider to be material weaknesses or significant deficiencies. The second opinion refers to the audit of the Single Audit and it indicates that the Schedule of Expenditures of Federal Awards is fairly stated and that in their review of each major federal program they found no material noncompliance and no deficiencies in internal control over compliance that they consider to be material weaknesses or significant deficiencies.

The next letter is a direct communication between the auditors and the governing body and advi ses the City Council of certain significant matters related to the audit, such as the most sensitive estimates and disclosures included in the financial statements, as well as whether they encountered any difficulties in dealing with management or had any disagreements with management. The auditors noted no such difficulties or disagreements during the course of their audit.

The final item is the Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets for the Year Ended June 30, 2022. The auditors noted no issues in reviewing staff’s calculation of the appropriations limit for fiscal year 2021/22.

ENVIRONMENTAL DETERMINATION
A receive and file of financial-related reports is not a project.

FISCAL IMPACTS
There is no fiscal impact associated with this action.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project

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City of Upland, California
Annual Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2022

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CITY OF UPLAND, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

Year Ended June 30, 2022

Prepared by
Finance Division

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City of Upland
Annual Comprehensive Financial Report
Year Ended June 30, 2022

TABLE OF CONTENTS
Page

INTRODUCTORY SECTION
Letter of Transmittal i - iv
List of City Officials v
Organizational Chart vi
GFOA Certificate of Achievement for Excellence in Financial Reporting vii

FINANCIAL SECTION
Independent Auditor’s Report 1 - 3
Management’s Discussion & Analysis 4 - 13
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 15
Statement of Activities 16 - 17
Fund Financial Statements:

Balance Sheet - Governmental Funds 18
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Statement of Net Position - Proprietary Funds 22
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 23 Statement of Cash Flows - Proprietary Funds 24
Statement of Net Position - Fiduciary Funds 25
Statement of Changes in Net Position - Fiduciary Funds 26 Notes to Financial Statements 27 - 65
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

General Fund 67
Housing Special Revenue Fund 68
Notes to Required Supplementary Information 69
Schedule of Changes in the Net Pension Liability – Miscellaneous Plan 70 - 71 Schedule of Changes in the Net Pension Liability – Safety Plan 72 Schedule of the City’s Proportionate Share of the Net Pension Liability 73 Schedule of Contributions 74 - 75
Schedule of Changes in the Net OPEB Liability and Related Ratios 76 - 77 Supplementary Information
Non-major Governmental Funds: 80 - 81
Combining Balance Sheet 82 - 85
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 86 - 89 Budgetary Comparison Schedules for Non-major Funds:

Gas Tax 90

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City of Upland
Annual Comprehensive Financial Report
Year Ended June 30, 2022

TABLE OF CONTENTS - Continued
Page
Supplementary Information - Continued
Home Program 91
CalHome Program 92
Community Development Block Grant 93
Measure I 94
Air Quality Management District 95
Parking and Business Improvement 96
SB 509 Public Safety Augmentation 97
Asset Forfeiture 98
Public Safety Grants 99
Other Grants 100
CARES Act 101
Park Acquisition and Development 102
General Capital Development 103
Storm Drain Development 104
Street and Traffic Safety Development 105
General Capital Projects 106
Street and Alley Repair 107
Energy Efficiency Improvements 108
Internal Service Funds: 110
Combining Statement of Net Position 111
Combining Statement of Revenues, Expenses, and Changes in Net Position 112 Combining Statement of Cash Flows 113
Custodial Funds: 115 - 116
Combining Statement of Fiduciary Net Position 117 - 119 Combining Statement of Changes in Fiduciary Net Position 120 - 122

STATISTICAL SECTION
Net Position by Component 125 - 126
Changes in Net Position 127 - 130
Fund Balances of Governmental Funds 131 - 132
Changes in Fund Balances of Governmental Funds 133 - 134 Assessed Value and Estimated Actual Value of Taxable Property by Major Type 135 - 136 Water Sales by User Type 137
Direct and Overlapping Property Tax Rates 138 - 139
Principal Property Tax Payers 140
Principal Water Purchasers 141
Property Tax Levies and Collections 142
Ratios of Outstanding Debt by Type 143 - 144
Direct and Overlapping Bond Debt 145
Legal Debt Margin Information 146 - 147
Pledged Revenue Coverage 148 - 149
Demographic and Economic Statistics 150
Principal Employers 151
Full-time Equivalent City Government Employees by Function 152 Capital Asset Statistics by Function 153 - 154
Operating Indicators by Function 155 - 156

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INTRODUCTORY SECTION

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Officials of the City of Upland
Elected Officials
Bill Velto, Mayor
Mayor Pro Tem District 1
Councilmember District 2
Councilmember District 3
Councilmember District 4
Shannan Maust
Janice Elliott
Carlos A. Garcia
Rudy Zuniga
Greg Bradley City Treasurer
Executive Staff
Michael Blay, City Manager
Stephen Parker, CPA
Steven Deitsch
Robert D. Dalquest
Marcelo Blanco
Braden Yu
Assistant City Manager
City Attorney
Development Services Director
Chief of Police (Interim)
Public Works Director
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City of Upland
Organizational
Chart Fiscal Year
2021-22
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Upland
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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FINANCIAL SECTION

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Independent Auditor’s Report

The Honorable City Council
City of Upland, California

Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Upland, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, based on our report and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Upland, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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.

Change in Accounting Principle
As described in Note 1 to the financial statements, in 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.

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

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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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

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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining statements and budgetary schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 30, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

March 30, 2023
Murrieta, CA
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Management’s Discussion and Analysis
Fiscal Year Ended June 30, 2022
The discussion and analysis of the City of Upland’s (the City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. It should be read in conjunction with the basic financial statements and the accompanying notes to the financial statements.

Financial Highlights
 The City’s Total Net Position at the close of the fiscal year is $411 million; this is an increase of $6.9 million or 1.7% in comparison with the prior year.
 The City’s total assets and deferred outflows increased by $44.0 million during the fiscal year. The largest change was an increase in a deferred outflows of resources for pension related items of $47.9 million. This was due to additional discretionary payments made to CalPERS of over $46 million in conjunction with implementing the BLAST pension strategy. Other significant changes include a decrease in entity wide cash and investments of $22.4 million for the payments made to CalPERS, an increase of $15.5 million in business-type activities cash and investments with fiscal agent as the Water Fund issued bonds for $15.5 million to fund future capital projects, and a decrease of $8.0 million in governmental activities restricted cash and investments as the City withdrew $10 million from the Section 115 Pension Trust to make payments to CalPERS as a part of implementing BLAST.  The City’s liabilities and deferred inflows increased by $37 million. Significant changes from prior year balances include an increase of $46.6 million in deferred inflows of resources for pension related items due to the difference between projected and actual earnings on pension plan investments, a $21.5 million decrease in noncurrent liabilities due in more than one year primarily due to a $31.2 million deletion in net pension liability offset partially by the issuance of the 2022 Water Revenue Bonds, a $6.8 million increase in unearned revenue primarily due to unspent American Rescue Plan Act funds, and a $3.8 million increase in lease related deferred inflows of resources due to the implementation of GASB 87.
 As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $60.3 million, a decrease of $25.1 million in comparison with the prior year.  As of the close of the current fiscal year, the City’s enterprise funds reported combined total net position of $165.7 million, an increase of $12.5 million in comparison with the prior year.  At the end of the fiscal year, unassigned fund balance for the General Fund was ($11.9) million. This represents a decrease of $12.1 million from the prior year. Restricted fund balance decreased by $8.0 million to $2.7 million and assigned fund balance decreased by $4.5 to zero as fund balance cannot be assigned if unassigned fund balance is negative. These significant reclassifications are the result of council implementing the BLAST pension strategy.

Additional information can be found in footnote 1 section P and footnote 14.

Using This Annual Report
This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities provide information about the activities of the city as a whole and present a long-term view of the City’s finances. For governmental activities, these statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements report the City’s operations in more detail than the government-wide statements.
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Reporting the City’s Most Significant Funds

An analysis of the City’s major funds begins on page 9. The fund financial statements begin on page 18 and provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law, grant requirements or by bond covenants. The City Council has established many other funds to help it control and manage other monies for specific purposes. The City’s two kinds of funds - governmental and proprietary - use different accounting approaches.

 Governmental funds - Most of the City’s basic services are reported in governmental funds which focus on how money flows into and out of those funds, and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting. This method measures cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources that can be used (in the future) to finance the City’s programs. The difference of results in the governmental fund’s statements to those in the government-wide financial statements are explained in a reconciliation schedule following the governmental funds financial statements.
 Proprietary funds - When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities that are reported in the government-wide statements but provide more detail and additional information, such as cash flows. The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities an example of such is the City’s Self-Insurance fund. The internal service funds are reported with governmental activities in the government-wide financial statements.  Fiduciary Funds – The City is responsible for other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. All the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position on pages 25 and 26 respectively. The City excludes these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring the assets reported in these funds are used for their intended purposes.

Reporting the City as a Whole

The Statement of Net Position and the Statement of Activities include all the assets and liabilities using the accrual basis of accounting, similar to accounting used by most private-sector companies. All the current year’s revenues and expenses are recorded regardless of when cash is received or paid. These two statements report the City’s net position and changes in net position. One can think of the City’s net position as one way to measure the City’s financial health, or financial position.

Over time, increases or decreases in the City’s net position are an indicator of whether its financial health is improving or deteriorating. There are other nonfinancial factors that should be considered to assess the overall health of the City, such as, the condition of the City’s roads,

City of Upland’s Total Net Position

As noted earlier, the City’s combined Total Net Position is $411 million. The City’s net position increased by $6.9 million due to an increase in assets (including deferred outflows of resources) of $44.0 million and liabilities and deferred inflows of resources increased by $37.1 million. Program expenses by function, general revenues by major source, excess and/or deficiency of revenues over expenses, changes in and total net position are presented in the Statement of Activities. The City’s combined Net Position for the fiscal year ended June 30, 2022 was:

5 Page 110 of 281

Table 1
Net Position (In Millions)

Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021

Current and other assets $97.1 $108.6 $94.9 $91.8 $192.0 $200.4 Capital assets 281.6 286.6 101.1 91.8 382.7 378.4
Total assets 378.7 395.2 196.0 183.6 574.7 578.8

Deferred outflows of
resources 53.4 20.8 17.7 2.2 71.1 23.0

Long-term liabilities 112.4 144.3 35.3 24.8 147.7 169.1 Other liabilities 25.1 18.1 8.4 7.6 33.5 25.7
Total liabilities 137.5 162.4 43.7 32.4 181.2 194.8

Deferred inflows of resources 49.3 2.7 4.3 0.2 53.6 2.9

Net position:

Net investment in
capital assets 262.7 267.0 92.6 11.9 355.3 278.9
Restricted 44.5 43.5 --44.5 43.5
Unrestricted (61.9) (59.6)73.1 141.3 11.2 81.7
Total net position $245.3 $250.9 $165.7 $153.2 $411.0 $404.1

The City’s programs for governmental activities include General Government, Public Safety, Public Works and Engineering, Development Services, and Community Services. The programs for business-type activities include Water, Solid Waste, and Sewer operations. A comparison of each program’s revenue and expenses are:

6 Page 111 of 281

Table 2

Change in Net Position
(In Millions)

2022 2021 2022 2021 2022 2021
Revenues
Program Revenues
Charges for services 11.1 13.1 56.2 54.8 67.3 67.9 Operating Contributions/Grants 5.4 4.4 - - 5.4 4.4 Capital Contributions 4.9 7.2 2.6 2.9 7.5 10.1 General Revenues
Taxes
Property Taxes 19.1 18.8 - - 19.1 18.8 Sales Tax 18.4 16.9 - - 18.4 16.9 Franchise Taxes 1.4 1.3 - - 1.4 1.3 Transient Occupancy Taxes 0.2 0.2 - - 0.2 0.2 Business License Taxes 1.2 1.1 - - 1.2 1.1 Other Taxes 0.9 0.3 - - 0.9 0.3 Investment Income (0.6) 0.9 (1.5) 0.1 (2.1) 1.0 Motor Vehicle In Lieu 0.1 0.1 - - 0.1 0.1 Legal Settlement - - 6.8 - 6.8 - Miscellaneous Revenues 0.2 - - - 0.2 - Total Revenues 62.3 64.3 64.1 57.8 126.4 122.1 Expenses
General government 0.9 2.1 - - 0.9 2.1 Public Safety 40.9 31.7 - - 40.9 31.7 Public Works 14.8 14.7 - - 14.8 14.7 Development Services 6.2 5.7 - - 6.2 5.7 Community Services 4.5 3.6 - - 4.5 3.6 Interest on long term debt 0.6 0.8 - - 0.6 0.8 Water - - 25.7 22.5 25.7 22.5 Refuse - - 15.6 14.5 15.6 14.5 Sewer - - 10.3 10.6 10.3 10.6 Total Expenses 67.9 58.6 51.6 47.6 119.5 106.2 Special Items - - - - - - Transfers - - - - - - Change in Net Position (5.6) 5.7 12.5 10.2 6.9 15.9 Net Position at beginning of
year 250.9 245.2 153.2 143.0 404.1 388.2 Net Position end of year 245.3$ 250.9$ 165.7$ 153.2$ 411.0$ 404.1$ Governmental Business-type
Activities Activities Total
7 Page 112 of 281

Governmental Activities

Governmental activities net position decreased in total by $5.5 million. The City’s governmental activities revenue totaled $62.4 million which is a $1.9 million decrease from the prior year. Significant changes are highlighted below:

 Charges for services revenue totaled $11.1 million which is a decrease of $2.0 million or 1.5%, primarily related to a $3.1 million decrease in engineering and public works revenue offset by a $2.0 million increase in development Services revenue from an increase in new development.

 Operating grants and contributions increased by $1.0 million mostly due to an increase in public safety grants. More specifically, the use of American Rescue Plan Act (ARPA) funding by the police department in the current year.

 Capital grants and contributions decreased by $2.3 million or 32%. Most of the decrease occurred in the community services department. Cares Act funding of $1.7 million was received and used in the prior year with zero funding allocated in the current year.

 Property, franchise, business license and other taxes each increased minimally but in total recognized an increase of $1.0 million over the previous year.

 Sales tax increased by $1.6 million or 9.4%. Growth was seen specifically in the building and construction and service stations business groups due to strong growth in the construction industry and rising fuel prices.

 Investment income saw a $1.5 million decrease this year. Despite investible cash balances increasing, the strong rising interst rate environment led to a decreased value in the City’s fixed rate portfolio when caluclating the market value of each asset in accordance with GASB 31.

Governmental activities expenses totaled $67.9 million this year, which is a $9.3 million or 15% increase over the prior year. General government costs decreased $1.3 million; public safety costs increased $9.2 million; public works costs increased $0.1 million; development services costs increased $0.5 million; community services costs increased $0.8 million; and interest on long-term debt decreased $0.2 million.

General Government
Public Safety

60.27%
Engineering & Public
Works
Development
Services

9.17%
Community Services
Interest on long
term debt

0.90%
Governmental Expense
$67.9 Million
General Government Public Safety Engineering & Public Works Development Services Community Services Interest on long term debt 8 Page 113 of 281

Business-type Activities

Total resources available during the year to finance Proprietary Fund (Business-type) activities were $153.2 million. Net Position as of June 30, 2022, were $165.7 million which is an increase of $12.5 million or 8.2%.

As shown in the Statement of Activities, the amount paid by users for services was $56.2 million compared to $54.8 million reported in the prior year. The cost of all Proprietary (Business-type) activities increased $4.1 million this year to $51.7 million compared to $47.6 million reported last year. Significant changes are highlighted below by specific proprietary fund.

The City’s Major Funds

The City’s governmental funds reported a combined fund balance of $60.3 million, and its enterprise funds reported combined net position of $165.7 million. Major changes are discussed below:

 The fund balance at year-end for the City’s General Fund of $3.4 million is a decrease from the prior year of $27.4 million. Revenues and other financing sources increased by $0.9 million from the prior year while expenditures and other financing uses increased by $4.3 million. In addition, a $30.5 million special item was recorded for payments towards the City’s Unfunded Pension Liability. By far the most significant difference relates to the additional discretionary payment made to CalPERS as a part of City Council implementing the BLAST pension strategy.

Unfortunately, as the City obtained funds through an internal lease investment, generally accepted accounting principles require the City to record the expense of paying down the unfunded pension liability without being able to reflect the proceeds of the funds. The result is recording a $30.5 million expense with no revenue to offset it. Had bonds been issued, the proceeds would have been included in the General Fund and the City would be reflecting $23.9 million in fund balance and a positive unassigned fund balance. Sales tax revenue increased $1.6 million which exceeded experts estimates. Investment income decreased by $1.4 million. Despite an increased cash balance, with interest rates rising dramatically the GASB 31 calculation resulted in an investment loss of $0.6 million for the year. General Fund expenditures and other financing sources increased by $4.3 million to $44.1 million. Changes included a decrease in general government expenses of $.9 million and increases in all other functions including: an increase in public safety expenses of $2.4 million related to an increase in internal service fund allocations of self-insurance costs and unfunded pension liability costs; an increase in engineering costs of $1.1 million; an increase in development services costs of $.4 million and; an increase in community services costs of $.8 million as additional activities began coming online as pandemic concerns decreased. Lastly, the General Fund transferred $.5 million more than it had in the previous year to help supplement the information technology fund for purchasing replacement servers, software, and facility security systems.

 The Housing Fund’s fund balance increased $0.6 million or 5.6% over prior year. This minor increase resulted mainly from an increase of $.23 million in rental income and a decrease in debt service cost of $.55 million due to the refunding of the housing debt. Additional activity that varied from the prior year included debt proceeds of $13 million with an offsetting debt service expense of $13.4 million for the refunding.

 Total Water Enterprise Fund revenues exceeded total expenses by $9.1 million and capital contributions of $1.5 million resulted in an overall increase in Water Fund net position of $10.6 million. Operating revenues decreased by $.4 million which is attributable to a decrease in water construction permits. Water usage charges increased this year by $.4 million; however, revenue from the sale of leased water decreased by the same amount so charges for services did not change from last year to this year. Non-operating revenue increased by a net amount of $4 million. The water department received a lawsuit settlement in the amount of $6.8 million but received $1.5 million less of joint venture net income.

Additional reductions of non-operating revenue included a $.3 million downswing from the disposal of capital assets (with a gain recognized in the prior year and a loss recognized in the current year) and $.9 million less in investment income as the GASB 31 calculation led to a large write-down due to a rising interest rate environment. Operating costs increased overall by $1.4 million mostly from an increase in administrative costs of $1.7 million and a decrease in maintenance and operation costs of $.3 million. Administrative costs increased by $1.1 million related to increases in 9 Page 114 of 281

the allocation of the unfunded pension liability and current year pension expenses resulting from application of GASB 68 and a $.3 million increase in the water funds’ administrative charges from the general fund.

 The Solid Waste Utility Fund net position increased approximately $0.8 million or 173.1%. Charges for services were up $2.0 million due to a full years’ effect of a service rate increase effective February 1, 2020, and the increase in service accounts resulting from newly constructed homes. Operating expenses increased $1.1 million, with a decrease of $0.3 in administrative costs and increase of $1.3 million for contractual services which will fluctuate based on the number of bins serviced and disposal cost based on actual waste tonnage. Net position accumulation will be necessary to comply with various state mandated programs required to be implemented soon and has been addressed with a rate increase that took effect on July 1, 2022.

 The Sewer Utility Fund net position increased by $1.1 million or 3.4%. Operating revenues decreased by $0.2 million.

While charges for services increased minimally, a decrease in the number of new construction permits issued, resulted in the overall decrease. Nonoperating revenue decreased $0.6 million from application of the GASB 31 calculation as previously discussed. Operating expenses decreased overall by only $0.3 million which is the net of an administrative cost increase of $.1 million; a decrease in maintenance and operations of $.9 million; and an increase in contractual services totaling $.4 million due to an increase in Inland Empire Utilities Agency’s rate increase. The fund also received a capital contribution of $1.1 million which is $.5 million less than what was received in the previous year.

General Fund Budgetary Highlights

Over the course of the year, the operating budget received several revisions. The budget amendments and supplemental appropriations approved after the beginning of the year are included in the final budget column (net of interagency transactions) on page 69 of the financial statements. Comparing the Fiscal Year 2021/22 adopted General Fund budget of $42.9 million to the final budget of $43.3 million reflects an increase of $.4 million. Actual expenditures for the General

Fund of $41.9 million were $1.4 million less than final budgeted amounts. The public safety function actual expenditures were $2.7million less than the final budgeted amount and was the result of being understaffed and recognizing significant salary savings. The general government variance between final budgeted and actual amounts gives the appearance that this function’s expenses increased this year; however, actual costs remained consistent with the prior year. The discrepancy lies in the final budget amount which included an increase from original budget of a $1.2 million credit representing an allowance for salary savings which was recognized by the police function.

The Fiscal Year 2021/22 adopted revenue budget started at $42.0 million and was increased by $3.5 million to $45.5 million which reflected expected increases in sales tax revenue and charges for services. By the end of the year, actual General Fund revenues exceeded final budgeted revenues by an additional $1.7 million. Most revenue categories exceeded the final amended budget figures which is a good sign that the economy is beginning to bounce back from the devastation of the COVID pandemic. Revenue categories that did not meet their final adjusted expectations included investment income which was affected downward by the application of GASB 31, and rental income which was affected downward because of the application of GASB 87 which resulted in a decrease of $.3 million. Notable increases included: property tax revenue by $.6; sales tax which exceeded the adjusted budgeted balance by $.3 million; and licenses and permits which exceeded budgeted amounts by $.6 million. The General Fund’s positive results for the year (except for the special item) increased fund balance, allowing staff to fund reserves in compliance with the fund balance and pension funding policies approved by council in June of 2021 and reaffirmed in June of 2022. Fund Balance detail can be found in more detail in footnote 14 to the financial statements.

10 Page 115 of 281

Capital Assets and Debt Administration

Capital Assets

As of June 30, 2022, the city had $382.8 million invested in a broad range of capital assets, including police vehicles, buildings, park facilities, roads, and water and sewer lines. This represents an increase (net of accumulated depreciation) of $4.5 million from the prior year. Most of this increase is seen in the Construction in Progress asset category because of a replacement reservoir currently under construction. Governmental activities capital assets decreased by $5.0 million which is the net of an increase in net accumulated depreciation of $7.2 million and a net increase in capital assets of $2.2 million.

Table 3
Capital Assets at Year-End
(Net of Depreciation, in Millions)

The City’s Fiscal Year 2021/22 capital budget appropriated another $13.5 million for capital projects, principally for 23 new projects ranging from as small as $50,000 to $1.7 million. Additional information on the City’s capital assets can be found in Note 4 to the financial statements.

Long-Term Liabilities

As of June 30, 2022, the city had $153.8 million in outstanding debt versus $174.8 million in the prior year. This represents an overall decrease of $21.0 million. The total net pension liability went down $35.3 million because of the updated CalPERS actuarial valuation and the use of $10 million dollars from the Section 118 pension trust account to make a direct payment to CalPERS to reduce the unfunded pension liability (UAL). Bond, loan, and lease debt decreased by $1.5 million for annual debt service payments made in accordance with their applicable amortization schedules. Compensated absences decreased by $0.1 million. This means more leave was taken than was earned. The water fund refunded it’s 2011 Revenue Refunding bonds with 2021 Water Refunding Bonds and issued new 2022 Water Revenue Bonds for a net increase of $15.5 million. The 2022 Water Revenue Bonds will be used to fund new water capital improvement projects.

2022 2021 2022 2021 2022 2021
Land 5.1$ 5.1$ 3.0$ 3.0$ 8.1$ 8.0$ Rights of wa y 103.4 103.4 - - 103.4 103.4 Street trees 3.5 3.5 - - 3.5 3.5 Construction in progress 1.7 1.3 12.9 4.2 14.6 5.5 Other capital assets 167.9 173.3 85.3 84.5 253.2 257.8 Totals 281.6$ 286.6$ 101.2$ 91.7$ 382.8$ 378.3$ Governmental Business-type
Activities Activities Total
11 Page 116 of 281

Table 4
Long-Term Debt at Year-End
(In Millions)

Additional detailed information on long-term debt activity can be found in Note 5 to the financial statements. Claims payable information can be found in Note 9 to the financial statements. Calculations and information related to the OPEB liability can be found in Note 6 to the financial statements and additional Net Pension Liability information can be found in Note 10 to the financial statements.

Economic Condition and Outlook

The City of Upland’s economic growth continued during Fiscal Year 2021/22. Real estate assessed values increased from the prior fiscal year by $435 million or a net taxable value increase of 4.2%. According to HdL, Coren and Cone (HdL), the City’s net taxable value increased another 6.8% for the 2022/23 tax roll, which is less than the increase experienced countywide of 8.5%. The inflation adjustment for 2023/24 will be the full 2.0% allowed by Proposition 13 like was received in the prior year. The median sale price of a detached single family residential home in Upland from January through October of 2022 was $745,000, a 14.6% increase over 2021’s median price of $650,000. Sales of single-family and non- single-family properties through October of 2022 will add $213.5 million to the 2023/24 tax rolls.

A high volume of development activity is expected to continue into Fiscal Year 2023/24 resulting in increases in anticipated building permit revenue and eventually property tax and sales tax revenue.

Sales tax revenue in Fiscal Year 2021/22 ended a significant 9.4% higher than the prior year as the economy continued strong, despite high inflation. With the local economy exceeding expectations, the latest projections by HdL predict FY 2022/23 sales tax revenue to exceed Fiscal Year 2021/22’s revenue by 9.5%, or $1.7 million.

2022 2021 2022 2021 2022 2021
Compensated Absences 2.1$ 2.2$ 0.4$ 0.4$ 2.5$ 2.6$ Net OPEB Liability/obligation 10.9 11.2 2.7 2.4 13.6$ 13.6 Net Pension Liability 75.2 106.4 9.9 14.0 85.1 120.4 Claims Payable 9.8 9.8 - - 9.8 9.8 Multifamily Housing Rev Bonds 12.4 12.8 - - 12.4 12.8 Energy Efficiency Lease 2.2 2.3 - - 2.2 2.3 CREBS Lease Agreement 4.4 4.4 - - 4.4 4.4 Water Revenue Bonds - - 15.7 - 15.7 - Water Refunding Bonds - - 6.6 7.2 6.6 7.2 SAWCO Loan Payable - - 0.7 1.0 0.7 1.0 SWRCB Loan Payable - - 0.7 0.7 0.7 0.7 Totals 117.0$ 149.1$ 36.7$ 25.7$ 153.7$ 174.8$ Governmental Business-type
Activities Activities Total
12 Page 117 of 281

Contacting the City’s Financial Management

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors, with a general overview of the City’s finances. If you have any questions regarding this report or need additional financial information, please contact the Administrative Services Department at 460 North Euclid Avenue, Upland, CA 91785. 13 Page 118 of 281

BASIC FINANCIAL STATEMENTS
14 Page 119 of 281

City of Upland
Statement of Net Position
June 30, 2022
West End
Consolidated San Antoni o
Water Company Water Company
Governmental Business-type December 31, December 31,
Activities Activities Total 2021 2021
ASSETS
Cash and Investments 89,653,724$ 11,438,730$ 101,092,454$ 909,131$ 6,171,407$ Receivables:

Accounts, Net 1,357,379 10,659,971 12,017,350 26,026 1,277,750 Accrued Interest 137,895 - 137,895 - - Notes, Net 9,301,011 - 9,301,011 - 688,000 Leases 3,771,104 - 3,771,104 - - Accrued Interest on Notes 2,824,073 - 2,824,073 - - Due From Other Governments 5,555,471 555 5,556,026 - - Due From Fiduciary Funds 280,911 - 280,911 - - Inventory and Prepaid Items 386,094 6,103,304 6,489,398 12,751 174,548 Internal Balances (20,750,000) 20,750,000 - - - Land Held for Resale 1,731,389 - 1,731,389 - - Restricted Assets:

Cash and Investments with Fiscal Agent - 15,520,501 15,520,501 - - Cash and Investments 2,825,653 568,781 3,394,434 - - Investment in Joint Ventures - 29,815,819 29,815,819 - - Capital Assets, Not Being Depreciated:113,745,129 15,859,446 129,604,575 495,870 3,131,491 Capital Assets, Net of Accumulated Deprecation: 167,888,284 85,310,850 253,199,134 937,172 20,271,355 Total Assets 378,708,117 196,027,957 574,736,074 2,380,950 31,714,551

DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 2,677,640 661,479 3,339,119 - - Pension Related Items 50,687,933 17,001,751 67,689,684 - - Total Deferred Outflows of Resources 53,365,573 17,663,230 71,028,803 - -

LIABILITIES
Accounts Payable 3,947,635 6,171,364 10,118,999 229,316 878,571 Accrued Salaries and Benefits 449,836 69,319 519,155 - - Accrued Interest Payable - 24,439 24,439 - Deposits Payable 1,475,924 568,781 2,044,705 1,700 Retention Payable 96,127 96,853 192,980 - Unearned Revenue 14,420,962 19,621 14,440,583 - Noncurrent Liabilities:

Due Within One Year 4,716,883 1,438,902 6,155,785 - 343,059 Due in More Than One Year 112,350,135 35,276,462 147,626,597 - 397,079 Total Liabilities 137,457,502 43,665,741 181,123,243 229,316 1,620,409

DEFERRED INFLOWS OF RESOURCES
Lease Related 3,771,104 - 3,771,104 - - Deferred Gain on Refunding - 386,076 386,076 - - OPEB Related Items 868,249 214,491 1,082,740 - - Pension Related Items 44,639,253 3,712,261 48,351,514 - - Total Deferred Inflows of Resources 49,278,606 4,312,828 53,591,434 - -

NET POSITION
Net Investment in Capital Assets 262,699,586 92,647,094 355,346,680 1,433,042 23,402,846 Restricted for:

Public Safety 2,118,390 - 2,118,390 - - Engineering and Public Works 8,945,405 - 8,945,405 - - Development Services 23,404,222 - 23,404,222 - - Community Services 10,059,764 - 10,059,764 - - Unrestricted (61,889,785) 73,065,524 11,175,739 718,592 6,691,296 Total Net Position 245,337,582$ 165,712,618$ 411,050,200$ 2,151,634$ 30,094,142$ Primary Government
Component Units
The accompanying notes are an integral part of this statement. 15 Page 120 of 281

City of Upland
Statement of Activities
Year Ended June 30, 2022
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:

Governmental Activities:

General Government 899,152$ 359,602$ 321,031$ (311,868)$ Public Safety 40,906,101 1,296,694 2,670,176 (27,163) Engineering and Public Works 14,788,452 898,698 1,054,635 5,220,823 Development Services 6,223,444 8,031,377 1,274,591 - Community Services 4,449,233 519,862 149,563 - Interest on Long-Term Debt 609,129 - - - Total Governmental Activities 67,875,511 11,106,233 5,469,996 4,881,792 Business-type Activities:

Water Utility 25,757,917 28,937,984 - 1,502,330 Solid Waste Utility 15,591,348 16,686,834 26,198 - Sewer Utility 10,330,964 10,595,087 - 1,120,125 Total Business-type Activities 51,680,229 56,219,905 26,198 2,622,455 Total Primary Government 119,555,740$ 67,326,138$ 5,496,194$ 7,504,247$ Component Units:

West End Consolidated Water Company 620,047$ 247,424$ -$ -$ San Antonio Water Company 4,133,213 5,336,851 - - Total Component Units 4,753,260$ 5,584,275$ -$ -$ General Revenues:

Taxes:

Property Taxes
Sales Taxes
Franchise Taxes
Transient Occupancy Taxes
Business License Tax
Other Taxes
Motor Vehicle in-lieu
Miscellaneous Revenues
Legal Settlement
Investment Income
Transfers In/(Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
Program Revenues
The accompanying notes are an integral part of this statement. 16 Page 121 of 281

West End
Consolidated San Antonio
Water Company Water Company
Governmental Business-type December 31, December 31,
Activities Activities Total 2021 2021
(530,387)$ -$ (530,387)$ -$ -$ (36,966,394) - (36,966,394) - - (7,614,296) - (7,614,296) - - 3,082,524 - 3,082,524 - - (3,779,808) - (3,779,808) - - (609,129) - (609,129) - - (46,417,490) - (46,417,490) - - - 4,682,397 4,682,397 - - - 1,121,684 1,121,684 - - - 1,384,248 1,384,248 - - - 7,188,329 7,188,329 - - (46,417,490) 7,188,329 (39,229,161) - - (372,623) -
- 1,203,638
(372,623) 1,203,638
19,089,687 - 19,089,687 - - 18,469,789 - 18,469,789 - - 1,377,349 - 1,377,349 - - 171,240 - 171,240 - - 1,158,797 - 1,158,797 - - 906,881 - 906,881 - - 90,702 - 90,702 - - 207,045 - 207,045 - - - 6,823,725 6,823,725 - - (564,701) (1,472,061) (2,036,762) - 104,457 - - - - - 40,906,789 5,351,664 46,258,453 - 104,457 (5,510,701) 12,539,993 7,029,292 (372,623) 1,308,095 250,848,283 153,172,625 404,020,908 2,524,257 28,786,047 245,337,582$ 165,712,618$ 411,050,200$ 2,151,634$ 30,094,142$ Primary Government
Net (Expense) Revenue and Changes in Net Position
Component Units
17 Page 122 of 281

City of Upland
Balance Sheet
Governmental Funds
June 30, 2022
Non-major
General Housing ARPA Governmental Total
ASSETS
Cash and Investments 20,079,109$ 4,308,956$ 13,811,768$ 42,521,714$ 80,721,547$ Cash with Fiscal Agent - - - - Restricted Cash 2,616,973 208,680 - - 2,825,653 Receivables:

Accounts 1,228,410 31,482 - 60,397 1,320,289 Accrued Interest 137,895 - - - 137,895 Notes, net 28,761 4,942,502 - 4,329,748 9,301,011 Leases 3,771,104 - - 3,771,104 Accrued Interest on Notes - 1,615,036 - 1,209,037 2,824,073 Due from Other Governments 3,765,275 - - 1,790,196 5,555,471 Due from Other Funds 334,024 - - - 334,024 Due from Fiduciary Funds 280,911 - - - 280,911 Inventory and Prepaid Items 81,125 - - - 81,125 Land Held for Resale - 1,731,389 - - 1,731,389 Total Assets 32,323,587$ 12,838,045$ 13,811,768$ 49,911,092$ 108,884,492$

LIABILITIES
Accounts Payable 2,271,599$ 102,773$ 747,981$ 662,657$ 3,785,010$ Accrued Salaries and Benefits 375,649 8,901 2,345 43,050 429,945 Due to Other Funds 22,047 - - 311,977 334,024 Deposits Payable 1,223,561 221,343 - 31,020 1,475,924 Retentions Payable - - 25,175 70,952 96,127 Advances from Other Funds 20,750,000 - - 20,750,000 Unearned Revenue - - 13,343,393 1,077,569 14,420,962 Total Liabilities 24,642,856 333,017 14,118,894 2,197,225 41,291,992

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 510,967 1,612,574 - 1,427,254 3,550,795 Lease Related 3,771,104 - - - 3,771,104 Total Deferred Inflows of Resources 4,282,071 1,612,574 - 1,427,254 7,321,899

FUND BALANCE (DEFICITS)
Nonspendable 109,886 - - - 109,886 Restricted 2,735,148 10,892,454 - 46,176,199 59,803,801 Committed 12,434,329 - - - 12,434,329 Assigned - - - 191,505 191,505 Unassigned (11,880,703) - (307,126) (81,091) (12,268,920) Total Fund Balances (Deficits)3,398,660 10,892,454 (307,126) 46,286,613 60,270,601 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits)32,323,587$ 12,838,045$ 13,811,768$ 49,911,092$ 108,884,492$ Special Revenue
The accompanying notes are an integral part of this statement. 18 Page 123 of 281

Fund balances of governmental funds 60,270,601$
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Capital Assets 401,879,504
Accumulated Depreciation (121,399,139) 280,480,365
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds.3,550,795
Long term liabilities are not due and payable in the current period and are not reported in the funds.

Compensated Absences (1,981,203)
Multifamily Housing Revenue Note (12,402,398)
CREBS Lease Payable (4,386,028)
Energy Efficiency Lease Payable (2,145,401)
Net Pension Liability (72,791,769)
Net OPEB Liability (10,279,134)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds.

Deferred Outflows Related to Pensions 50,257,995
Deferred Inflows Related to Pensions (43,725,302)
Deferred Outflows Related to OPEB 2,514,357
Deferred Inflows Related to OPEB (815,303)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.

The assets and liabilities of the internal service funds must be added to the statement of net position.(3,209,993)
Net position of governmental activities 245,337,582$
City of Upland
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of this statement. 19 Page 124 of 281

Non-major
General Housing ARPA Governmental Total

REVENUES
Taxes 41,173,743$ -$ -$ 1,441,370$ 42,615,113$ Licenses & Permits 2,064,096 - - 1,242,818 3,306,914 Charges for Services 2,745,996 12,442 - - 2,758,438 Fines and Penalties 600,186 - - - 600,186 Investment Income (604,942) (170,094) (311,867) (1,396,856) (2,483,759) Rental Income 566,426 4,615,124 - 77,606 5,259,156 Intergovernmental 333,425 - 1,870,323 7,702,760 9,906,508 Other Revenue 309,991 - - 390,465 700,456 Total Revenues 47,188,921 4,457,472 1,558,456 9,458,163 62,663,012

EXPENDITURES
Current:

General Government 3,408,612 - - 34,021 3,442,633 Public Safety 24,681,246 - 1,870,323 1,583,391 28,134,960 Engineering and Public Works 7,498,073 - - 4,809,225 12,307,298 Development Services 2,180,613 2,936,195 1,106,636 6,223,444 Community Services 3,683,021 - - 134,235 3,817,256 Debt Service:

Principal 225,857 13,395,418 - - 13,621,275 Interest 245,442 363,687 - - 609,129 Issuance Costs - 167,472 - - 167,472 Total Expenditures 41,922,864 16,862,772 1,870,323 7,667,508 68,323,467 Excess (Deficiency) of Revenues
over Expenditures 5,266,057 (12,405,300) (311,867) 1,790,655 (5,660,455)

OTHER FINANCING SOURCES (USES)
Transfer In - - - 290,000 290,000 Transfer Out (2,158,150) - - - (2,158,150) Issuance of Debt - 12,982,644 - - 12,982,644 Total Other Financing Sources (Uses)(2,158,150) 12,982,644 - 290,000 11,114,494

SPECIAL ITEM
Payment towards Unfunded Pension Liability (30,500,000) - - - (30,500,000) Net Change in Fund Balances (27,392,093) 577,344 (311,867) 2,080,655 (25,045,961) Fund Balances, Beginning 30,790,753 10,315,110 4,741 44,205,958 85,316,562 Fund Balances, Ending 3,398,660$ 10,892,454$ (307,126)$ 46,286,613$ 60,270,601$ Special Revenue
City of Upland
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 20 Page 125 of 281

Net change in fund balances-total governmental funds (25,045,961)$ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.

Capital Expenditures 2,932,884
Depreciation Expense (7,871,724)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. (298,202) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows:

Principal Paid on Capital Leases 225,857
Principal Paid on 2017 Housing Revenue Note 12,815,172
Principal Paid on 2021 Multifamily Housing Loan 580,246 Issuance of 2021 Multifamily Housing Loan (12,982,644)
Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures:

Net Change in Compensated Absences 116,803
Net Change in Net Pension Liability 30,313,597
Net Change in Net OPEB Liability 289,158
Net Change in Deferred Outflows Pension Related Amounts 32,470,490 Net Change in Deferred Inflows Pension Related Amounts (41,992,035) Net Change in Deferred Outflows OPEB Related Amounts 76,332 Net Change in Deferred Inflows OPEB Related Amounts 81,075 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.

The net revenue (expense) of the internal service funds is reported with governmental activities.2,778,251
Change in net position of governmental activities (5,510,701)$ City of Upland
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 21 Page 126 of 281

City of Upland
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
ASSETS
Current Assets:

Cash and Investments 3,473,703$ 404,703$ 7,560,324$ 11,438,730$ 8,932,177$ Accounts Receivable, Net 6,286,471 2,193,592 2,179,908 10,659,971 37,090 Due from Other Governments - 223 332 555 - Inventory and Prepaid Items 6,103,304 - - 6,103,304 304,969 Total Current Assets 15,863,478 2,598,518 9,740,564 28,202,560 9,274,236 Noncurrent Assets:

Restricted Cash and Investments 530,109 - 38,672 568,781 - Cash with Fiscal Agent 15,520,501 - - 15,520,501 - Advances to Other Funds 15,750,000 - 5,000,000 20,750,000 - Equity Interest 29,815,819 - - 29,815,819 - Capital Assets, Not Being Depreciated:

Land 2,954,861 - - 2,954,861 - Construction in Progress 12,239,725 488 664,372 12,904,585 - Capital Assets, Net of Accumulated Depreciation 65,953,727 55,818 19,301,305 85,310,850 1,153,048 Total Noncurrent Assets 142,764,742 56,306 25,004,349 167,825,397 1,153,048 Total Assets 158,628,220 2,654,824 34,744,913 196,027,957 10,427,284

DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 444,436 53,092 163,951 661,479 163,283 Pension Related Items 10,224,953 1,702,963 5,073,835 17,001,751 429,938 Total Deferred Outflows of Resources 10,669,389 1,756,055 5,237,786 17,663,230 593,221

LIABILITIES
Current Liabilities:

Accounts Payable 2,898,600 1,687,516 1,585,248 6,171,364 162,625 Accrued Salaries and Benefits 48,836 6,420 14,063 69,319 19,891 Accrued Interest Payable 24,439 - - 24,439 - Unearned Revenue - 19,621 - 19,621 - Retentions Payable 77,679 - 19,174 96,853 - Deposits Payable 530,109 - 38,672 568,781 - Current Portion of Long-Term Liabilities:

Claims and Judgments Payable - - - - 2,856,713 Compensated Absences 152,644 21,698 50,560 224,902 58,248 Loans Payable 344,000 - - 344,000 - Revenue Bonds Payable 870,000 - - 870,000 - Total Current Liabilities 4,946,307 1,735,255 1,707,717 8,389,279 3,097,477 Noncurrent Liabilities:

Claims and Judgments Payable - - - - 6,975,016 Net OPEB Liability 1,816,937 217,049 670,260 2,704,246 667,528 Net Pension Liability 6,456,636 830,261 2,656,265 9,943,162 2,447,987 Compensated Absences 126,691 17,186 41,550 185,427 75,593 Loans Payable 1,010,627 - - 1,010,627 - Revenue Bonds Payable 21,433,000 - - 21,433,000 - Total Noncurrent Liabilities 30,843,891 1,064,496 3,368,075 35,276,462 10,166,124 Total Liabilities 35,790,198 2,799,751 5,075,792 43,665,741 13,263,601

DEFERRED INFLOWS OF RESOURCES
Deferred Gain on Refunding 386,076 - - 386,076 - OPEB Related Items 144,112 17,216 53,163 214,491 52,946 Pension Related Items 2,410,573 309,976 991,712 3,712,261 913,951 Total Deferred Outflows of Resources 2,940,761 327,192 1,044,875 4,312,828 966,897

NET POSITION
Net Investment in Capital Assets 72,625,111 56,306 19,965,677 92,647,094 1,153,048 Unrestricted 57,941,539 1,227,630 13,896,355 73,065,524 (4,363,041) Total Net Position 130,566,650$ 1,283,936$ 33,862,032$ 165,712,618$ (3,209,993)$ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 22 Page 127 of 281

City of Upland
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2022
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds

OPERATING REVENUES
Charges for Services 28,524,306$ 16,686,834$ 10,415,763$ 55,626,903$ 9,694,820$ Licenses and Permits 235,331 - 179,324 414,655 - Other 178,347 - - 178,347 151,867 Total Operating Revenue 28,937,984 16,686,834 10,595,087 56,219,905 9,846,687

OPERATING EXPENSES
Administrative Costs 5,982,904 1,216,559 599,668 7,799,131 - Maintenance and Operations 17,019,233 - 1,975,063 18,994,296 4,477,377 Contractual Services 238,998 14,374,789 6,940,939 21,554,726 358,742 Customer Service 121,626 - - 121,626 - Claims Expense - - - - 3,798,271 Depreciation 2,214,038 - 815,294 3,029,332 345,959 Total Operating Expenses 25,576,799 15,591,348 10,330,964 51,499,111 8,980,349 Operating Income (Loss) 3,361,185 1,095,486 264,123 4,720,794 866,338

NONOPERATING REVENUES (EXPENSES)
Investment Income (905,019) (42,832) (524,210) (1,472,061) 37,863 Share of Joint Venture Net Income (loss) 444,186 - - 444,186 - Gain/ (Loss) on Disposal of Capital Assets (123,476) - - (123,476) 5,900 Bond Issuane Costs (329,776) - - (329,776) - Interest Expense (172,052) - - (172,052) - Legal Settlement 6,823,725 - - 6,823,725 - Intergovernmental - 26,198 - 26,198 - Total Nonoperating Revenues (Expenses) 5,737,588 (16,634) (524,210) 5,196,744 43,763 Income Before Contributions and Transfers 9,098,773 1,078,852 (260,087) 9,917,538 910,101 Capital Contributions 1,502,330 - 1,120,125 2,622,455 - Transfers In - - 265,000 265,000 1,868,150 Transfers Out - (265,000) - (265,000) - Change in Net Position 10,601,103 813,852 1,125,038 12,539,993 2,778,251 Total Net Position, Beginning 119,965,547 470,084 32,736,994 153,172,625 (5,988,244) Total Net Position, Ending 130,566,650$ 1,283,936$ 33,862,032$ 165,712,618$ (3,209,993)$ Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 23 Page 128 of 281

City of Upland
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
Governmental
Activities
Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
Cash Flows from Operating Activities
Cash Received from Customers 28,303,767$ 16,016,030$ 10,464,007$ 54,783,804$ -$ Cash Received from User Departments - - - - 9,845,426 Cash Paid to Suppliers for Goods and Services (19,596,563) (15,066,975) (8,204,539) (42,868,077) (6,928,681) Cash Paid to Employees for Services (13,466,645) (2,174,251) (6,126,655) (21,767,551) (1,745,534) Net Cash from Operating Activities (4,759,441) (1,225,196) (3,867,187) (9,851,824) 1,171,211 Cash Flows from Noncapital Financing Activities
Grant Revenue - 26,198 - 26,198 - Cash Received from Legal Settlement 6,823,725 - - 6,823,725 1,868,150 Cash Paid for Investment in Joint Ventures (95,068) - - (95,068) - Cash Paid (to) from Other Funds (15,750,000) (265,000) (4,735,000) (20,750,000) 1,868,150 Net Cash from Noncapital Financing Activities (9,021,343) (238,802) (4,735,000) (13,995,145) 3,736,300 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (9,462,455) (824) (512,536) (9,975,815) (305,196) Proceeds from the Sale of Assets 16,500 - - 16,500 5,900 Proceeds from Loans Issued 22,303,000 - - 22,303,000 - Costs Paid on Debt Issuance (329,776) - - (329,776) - Principal Paid on Debt (7,164,000) - - (7,164,000) - Interest Paid on Debt (255,398) - - (255,398) - Net Cash from Capital and Related Financing Activities 5,107,871 (824) (512,536) 4,594,511 (299,296) Cash Flows from Investing Activities
Interest on Investments (905,019) (42,832) (524,194) (1,472,045) 37,864 Net Cash from Investing Activities (905,019) (42,832) (524,194) (1,472,045) 37,864 Net Increase (Decrease) in Cash and Cash Equivalents (9,577,932) (1,507,654) (9,638,917) (20,724,503) 4,646,079 Cash and Cash Equivalents, Beginning of Year 29,102,245 1,912,357 17,237,913 48,252,515 6,154,248 Cash and Cash Equivalents, End of Year 19,524,313$ 404,703$ 7,598,996$ 27,528,012$ 10,800,327$ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating income (loss) 3,361,185$ 1,095,486$ 264,123$ 4,720,794$ 866,338$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 2,214,038 - 815,294 3,029,332 345,959 (Increase) Decrease in Accounts Receivable (711,596) (644,497) (130,916) (1,487,009) (1,261) (Increase) Decrease in Due from Other Governments - (108) (164) (272) - (Increase) Decrease in Inventory and Prepaid Items (983,021) - - (983,021) (40,785) (Increase) Decrease in Deferred Outflows - Pensions (9,233,513) (1,533,145) (4,571,372) (15,338,030) (38,857) (Increase) Decrease in Deferred Outflows - OPEB (58,358) (16,877) (23,816) (99,051) (14,646) Increase (Decrease) in Accounts Payable 30,199 130,322 353,135 513,656 (102,685) Increase (Decrease) in Accrued Salaries and Benefits (123,303) (16,475) (47,013) (186,791) (46,562) Increase (Decrease) in Retention Payable (38,907) - 14,834 (24,073) - Increase (Decrease) in Deposits Payable 77,379 - - 77,379 - Increase (Decrease) in Compensated Absences 35,071 11,090 (25,584) 20,577 26,837 Increase (Decrease) in Net Pension Liability (1,886,308) (598,757) (1,571,947) (4,057,012) (842,958) Increase (Decrease) in Net OPEB Liability 144,956 60,087 62,887 267,930 23,303 Increase (Decrease) in Deferred Inflows - Pensions 2,410,573 309,976 991,712 3,712,261 913,951 Increase (Decrease) in Deferred Inflows - OPEB 2,164 3,901 1,640 7,705 (1,703) Increase (Decrease) in Unearned Revenue - (26,199) - (26,199) - Increase (Decrease) in Claims and Judgments - - - - 84,280 Net Cash Provided (Used) by Operating Activities (4,759,441)$ (1,225,196)$ (3,867,187)$ (9,851,824)$ 1,171,211$ Non Cash Investing, Capital and Financing Activities:

Amortization of Premium on Bonds 145,147$ -$ -$ 145,147$ -$ Contributions of Capital Assets 1,502,330 - 1,120,125 2,622,455 - Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of this statement. 24 Page 129 of 281

Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds
ASSETS
Cash and Investments -$ 3,143,914$ 4,760,741$ Cash and Investments with Fiscal Agent - 2,256,052 17,121,523 Investments:

Moderate Index PLUS 1,656,027 - - Notes Receivable,Net - 202,383 - Land Held for Resale 3,358,000 40,074 Total Assets 1,656,027 8,960,349 21,922,338

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 180,486 -

LIABILITIES
Accounts Payable - 648 34,534 Accrued Salaries and Wages - 307,901 - Deposits Payable - - 3,997,392 Interest Payable - 231,071 - Due to City of Upland - - 280,911 Bonds Payable - 17,664,369 -
Total Liabilities - 18,203,989 4,312,837

NET POSITION
Restricted for:

OPEB 1,656,027 - -
Successor Agency - (9,063,154) - Individuals and Organizations - - 17,609,501 Other Governments - - - 1,656,027$ (9,063,154)$ 17,609,501$
City of Upland
Statement of Net Position
Fiduciary Funds
June 30, 2022
The accompanying notes are an integral part of this statement. 25 Page 130 of 281

Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds

ADDITIONS
Contributions:

Taxes and assessments collected for others -$ 3,111,575$ 5,737,642$ Employer Contributions 277,000 - - Contributions from Bondholders - - 9,528,228 Miscellaneous - - - Investment Earnings:

Interest Income (226,122) 20,212 2,866 Total Additions 50,878 3,131,787 15,268,736

DEDUCTIONS
General and Administrative - - 6,341,556 Development Services - 348,614 - Recipient Payments - - 9,349,103 Distributions to Shareholders - - 7,773,658 Interest Expense - 490,356 - Other Expenses 9,461 - - Total Deductions 9,461 838,970 23,464,317 Change in Net Position 41,417 2,292,817 (8,195,581) Net Position - Beginning of Year 1,614,610 (11,355,971) 25,805,082 Net Position - End of Year 1,656,027$ (9,063,154)$ 17,609,501$ City of Upland
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 26 Page 131 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Upland, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A) Financial Reporting Entity

The City was incorporated on May 15, 1906 under the general laws of the State of California. The City is governed by an elected five-member board.

As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. 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 the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that 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. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable.

Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is both legally and substantively separate from the government.

Blended Component Unit
The City of Upland has two blended component units, the Upland Public Financing Authority and the City of Upland Financing Authority (collectively, Authorities), both of whom are Joint Exercise of Powers Authorities under the Laws of the State of California. Both Authorities are authorized to issue bonds under the Mark- Roos Local Bond Pooling Act of 1985 (Article 1 through 4, Section 6500). The City and the former Community Redevelopment Agency formed the Upland Public Financing Authority in December 1988, by execution of a Joint Exercise of Powers Agreement. The City and the City of Upland Parking Authority formed the City of Upland Financing Authority in January 2022, by execution of a Joint Exercise of Powers Agreement. The purpose of both Authorities is to provide financing to the City for various project purposes. Since the City Council serves as the governing board for both Authorities, they are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported with the data of the primary government. Separate financial statements are not issued for the Authorities.

Discretely Presented Component Units
The West End Consolidated Water Company (Company) is a mutual water company and, in accordance with the Internal Revenue Code Section 501(c)(12), is exempt from Federal income taxes. The Company was formed to provide water services to its shareholders. As of June 30, 2022, the City of Upland owns 91% of the outstanding stock of the Company, representing a majority equity interest. The primary purpose of stock ownership is to secure rights to well water pumped. The Company is governed by a 5 member board, made up of one member appointed from each participating agency.

27 Page 132 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

The San Antonio Water Company is a mutual water company and, in accordance with the Internal Revenue Code Section 501(c)(12), is exempt from Federal income taxes. The Company was formed to develop, distribute, supply and deliver water to its shareholders. As of June 30, 2022, the City of Upland owns 68% of the outstanding stock of the Company, representing a majority equity interest. The primary purpose of stock ownership is to secure rights to well water pumped. The Company is governed by a 7-member board of directors elected annually by the shareholders. One Upland City Council member is also on the board of the Company.

Separately issued financial reports are available for the West End Consolidated Water Company and the San Antonio Water Company. These reports may be obtained by contacting the following offices:

B) Basis of Accounting and Measurement Focus

The basic financial statements of the City are composed of the following:

a) Government-wide financial statements
b) Fund financial statements
c) Notes to the basic financial statements

Government-wide Financial Statements:

Government-wide financial statements display information about the reporting entity as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units), as well as its discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are reported only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government- wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33.

Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.

West End Consolidated Water Company San Antonio Water Company 460 N. Euclid Avenue 139 N. Euclid Avenue
Upland, CA 91785 Upland, CA 91786
28 Page 133 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expense.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in-lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct cost and program revenues reported for the various functions concerned.

Fund Financial Statements

The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds.

Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.

Governmental Funds

The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible 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. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Sales taxes, property taxes, franchise taxes, intergovernmental revenue and rental income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.

Non-current portions of long-term receivables due from governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources,” since they do not represent net current assets.
29 Page 134 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Proprietary and Fiduciary Funds

The City’s enterprise and internal service funds are considered proprietary funds. Proprietary funds and fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. Proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets.

Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expense.

The custodial funds account for monies held for the benefit of other organizations and governments to which the City provides accounting and investing services. The private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.

C) Fund Classifications

The City reports the following major governmental funds:

General Fund - The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund finances the basic services provided to residents including police and recreation.

Housing Fund - This fund accounts for the activities of the City that were previously reported in the low- and moderate-income housing redevelopment agency fund of the former Community Redevelopment Agency.

The primary source of revenue is from rental income.

ARPA Fund - This fund accounts for the monies received and restricted by the American Rescue Plan Act.

The City reports the following major enterprise funds:

Water Utility Fund - This fund accounts for the sale of water to the City’s citizens and businesses and also records expenditures for water operations and capital improvement projects.

Solid Waste Utility Fund - This fund accounts for the refuse pick-up services provided by private contract.

Billing and collection is accomplished by City staff for residential services and by the contracted agency for commercial services. Activities include recycling and green waste programs.

Sewer Utility Fund - This fund records all City sewer service transactions, and also includes the storm drain maintenance and NPDES programs.

30 Page 135 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Additionally, the City reports the following fund types:

Internal Service Funds - These funds are used to account for self-funded insurance, fleet management, information systems, and building maintenance and operations. Departments of the City are charged for the services provided or benefits received from these funds.

OPEB Trust Fund – Used to account for the prefunding of post-employment benefits other than pension.

Private Purpose Trust Fund - Used to account for the activities of the Redevelopment Obligation Retirement Fund, and other Successor Agency activities. Resources are accumulated to retire obligations previously incurred by the former Community Redevelopment Agency.

Custodial Funds - Used to account for monies held for assessment districts and for the Welfare Committee.

D) Cash and Investments

Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.

Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.

The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.

For purposes of the statement of cash flows, cash equivalents are defined as 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, and have an original maturity date of 3 months or less. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.

E) Inventories and Prepaid Items

Inventories held by the General Fund and Water Fund are recorded at cost on a first-in, first-out basis and, for the General Fund, are recorded as expenditures as used (the consumption method). General Fund inventories consist primarily of fuel, office supplies, and small hand tools. Water Fund inventory consists of stored water.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

31 Page 136 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

F) Land Held for Resale

Land held for resale represents land that was acquired for resale in accordance with the objective of the Redevelopment Project Area. These costs will be charged to current year project expenditures when the related land and structures are sold. Land held for resale is valued at the lower of cost or the sales price per contract with the developer.

G) Property Taxes

Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year end. The property tax calendar is as follows:

H) Claims and Judgements

The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to yearend and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities.

I) Employee Leave Benefits

Vacation: The City’s policy permits employees to accumulate earned but unused vacation and similar compensatory leave balances, which are eligible for payment upon separation from City service. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts are recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

Sick Leave: A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in payments upon retirement. This is estimated by including in the liability the unused balances of employees currently entitled to receive a payment upon retirement, as well as those who are expected to become eligible to receive the benefit payout as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

Lien date January 1 December 30% Advance
Levy date July 1 January Collection No. 1
Due date November 1 and February 1 April 10% Advance
Delinquent dates December 11 and April 11 May Collection No. 2 July Collection No. 3
Property Tax Calendar County Remittance Dates and Percentages 32 Page 137 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

J) Capital Assets

Capital assets (including infrastructure) greater than $5,000 are capitalized and recorded at cost or at the estimated fair value of the assets at the time of acquisition where complete historical records have not been maintained. Contributed capital assets are valued at their acquisition value at the date of the contribution.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, curbs and gutters, streets and sidewalks, medians, sewers and storm drains. As allowed by GASB Statement No. 34, certain infrastructure assets that were acquired, reconstructed or significantly improved prior to June 30, 1980 have not been included in the City’s financial statements due to the unavailability of the information. Interest incurred during the construction phase of capital assets of enterprise funds is included as part of the capitalized value of the assets constructed.

Land and construction in progress are not depreciated. The other property, plant, equipment and infrastructure are depreciated using the straight-line method over the following estimated useful lives:

K) Notes and Loans Receivable

The accompanying financial statements report certain loans receivable for loans made to private developers, private homeowners, and other parties. Where applicable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with non- repayment.

L) Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has certain items that qualify for reporting in this category: 1) a deferred charge on refunding resulting from the difference in the carrying value of refunded debt and its reacquisition price, which is deferred and amortized over the shorter of the life of the refunded or refunding debt, and 2) deferred outflows relating to the City’s net pension and OPEB liabilities.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows for certain items under the modified accrual basis of accounting. Accordingly, unavailable revenue is reported only in the governmental funds balance sheet.

The governmental funds report unavailable revenues related to interest earned on loans. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

The City also reports deferred inflows relating to the net pension and OPEB liabilities and leases.

Buildings and Improvements 50 years Pipelines and Reservoirs 50 years Park Improvements 10-50 years Treatment Facilities 50 years Equipment 5-10 years Wells/Pumps 10-50 years
Vehicles 5-10 years Sewer Manholes 50 years
Infrastructure - Street System 30-100 years Equipment and Machinery 5-10 years Infrastructure - Storm Drains 100 years Vehicles 5-10 years Governmental Activities Business-type Activities
33 Page 138 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

M) Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

N) Other Postemployment Benefits (OPEB)

For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: June 30, 2021 Valuation Date; June 30, 2021 Measurement Date; and July 1, 2020 through June 30, 2021 Measurement Period.

O) Net Position Flow Assumption

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.

P) Fund Balance

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

Restricted Fund Balance: this includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, external resource providers, or creditors. City Council- imposed restrictions do not create restricted fund balance unless the legal document that initially authorized the revenue (associated with that portion of fund balance) also included language that specified the limited use for which the authorized revenues were to be expended.

Committed Fund Balance: this includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from the action that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City considers a minute action to constitute a formal action of City Council for the purposes of establishing committed fund balance.

The City’s committed fund balance includes:

34 Page 139 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

 Economic Uncertainty Reserve:

Fund balance in the General Fund has been committed for economic uncertainties. Under the City’s Ordinance, this reserve can be used if an economic impact resulting in a 5% or more decrease in property or sales taxes occurs. The City Council, through resolution, has established the initial Economic Uncertainty Reserve at $10,300,000.

 Emergency Disaster Contingency Reserve:

Fund balance in the General Fund has been committed for emergency contingencies. An emergency shall mean natural disasters, catastrophic events, or any situation requiring the declaration of an emergency as defined by Upland Municipal Code Section 2.20. The City Council, through resolution, has established the Emergency Disaster Contingency Reserve at $1,000,000.

Assigned Fund Balance: this includes amounts that are intended to be used for specific purposes as indicated either by the City Council or by persons to whom the City Council has delegated the authority to assign amounts for specific purposes. The City Manager authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted through an adopted City Council resolution.

Unassigned Fund Balance: this includes the remaining spendable amounts which are not included in one of the other classifications. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Q) Fair Value Measurements

Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements), as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:

 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
35 Page 140 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

R) Use of 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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period.

Actual results could differ from those estimates.

S) Leases

Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund 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 inflow of resources is 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 inflow of resources is recognized as revenue over the life of the lease term.

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.

2) CASH AND INVESTMENTS

Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments 89,653,724$ 11,438,730$ 7,904,655$ 108,997,109$ Restricted Cash and Investments 2,825,653 568,781 1,656,027 5,050,461 Cash and Investments with Fiscal Agent - 15,520,501 19,377,575 34,898,076 Total Cash and Investments 92,479,377$ 27,528,012$ 28,938,257$ 148,945,646$ Government-wide
Statement of Net Position
36 Page 141 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

2) CASH AND INVESTMENTS – Continued

Cash and investments as of June 30, 2022 consist of the following:

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

The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where 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, rather than the general provisions of the California Government Code or the City’s investment policy.

Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Generally, the table below identifies the investment types that are authorized for investments held by bond trustees, subject to certain additional restrictions in the debt agreements. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Cash on Hand 12,800$
Deposits with Financial Institutions 22,105,684
Investments 126,827,162
Total Cash and Investments 148,945,646$
Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity* of Portfolio* One Issuer* Municipal Securities 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Government Agency Issues 5 years 50% 50%
Commercial Paper 270 days 15% 10%
Bankers' Acceptances 180 days 40% 30%
Negotiable Certificates of Deposits 5 years 30% None, if collateralized Medium Term Notes/Corporate Bonds 5 years 30%None
Mutual Funds N/A 20%10%
Money Market Mutual Funds N/A 20%10%
Mortgage Pass-Through Securities 5 years 20%None
Local Agency Investment Fund (LAIF)N/A None None
Supranational Securities 5 years 30%10%
* Based on state law requirements or investment policy requirem ents, whichever is more restrictive. 37 Page 142 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

2) CASH AND INVESTMENTS – Continued

Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates 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 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.

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

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 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.

Maximum
Authorized Investment Type Maturity
U.S. Treasury Obligations None
U.S. Government Agency Issues
(with certain exceptions) None
Banker's Acceptances 30-360 days
Commercial Paper 270 days
Money Market Funds N/A
State and Municipal Obligations None
Investment Agreements None
Repurchase Agreements None
Local Agency Investment Fund None
12 Months 13 to 36 37 to 60 More than
Investment Type Total Or Less Months Months 60 Months
US Treasury Obligations 1,367,055$ -$ -$ 1,367,055$ -$ U.S. Government Agency Securities 54,793,447 4,948,040 6,744,920 43,100,487 - Medium-term Notes 499,365 499,365 - - - Certificates of Deposit 12,831,518 1,998,430 2,915,091 7,917,997 - Municipal Obligations 675,892 - 98,044 577,848 - Money Market Mutual Funds 4,272,999 4,272,999 - - - Local Agency Investment Fund (LAIF) 17,164,338 17,164,338 - - - Mutual Funds 15,844,986 15,844,986 - - - Held by Fiscal Agent
Money Market Mutual Funds 19,377,562 19,377,562 - - - Total Pooled Investments 126,827,162$ 64,105,720$ 9,758,055$ 52,963,387$ -$ Remaining Maturity (in Months)
38 Page 143 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

2) CASH AND INVESTMENTS – Continued

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 by the California Government Code. As of June 30, 2022, the City’s investments with each of the following issuers exceed 5% of its total investments.

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 (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. 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 market value of the pledged securities in the collateral pool must equal at least 110% 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% of the secured public deposits.

Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code 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.

Based upon the fair value measurements described in Note 1, the City held the following investments as of June 30, 2022:

Minimum Exempt from
Investment Type Total Legal Rating Aaa Aaa3 - Aa1 A1, A2, A3 Not RatedRating US Treasury Obligations 1,367,055$ N/A 1,367,055$ -$ -$ -$ -$ U.S. Government Agency Securities 54,793,447 N/A 54,793,447 - - - - Medium-term Notes 499,365 A 499,365 - - - - Certificates of Deposit 12,831,518 N/A - - - 12,831,518 - Municipal Obligations 675,892 N/A - 504,688 - 171,204 - Money Market Mutual Funds 4,272,999 A 4,272,999 - - - - Local Agency Investment Fund (LAIF) 17,164,338 N/A - - - 17,164,338 - Mutual Funds 15,844,986 N/A - - - 15,844,986 - Held by Fiscal Agent
Money Market Mutual Funds 19,377,562 A 19,377,562 - - - - Total Pooled Investments 126,827,162$ 80,310,428$ 504,688$ -$ 46,012,046$ -$ Reported
Issuer Investment Type Amount Maturity Interest (%)
FFCB Federal Agency Securities 13,507,439$ 2022-2026 .160 - 1.66 FHLB Federal Agency Securities 25,975,497 2023-2027 .200 - 2.50 FHLMC Federal Agency Securities 12,460,211 2024-2027 .375 - 3.00 39 Page 144 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

2) CASH AND INVESTMENTS – Continued

3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Due to/from - As of June 30, 2022, the General Fund has an outstanding receivable from non-major governmental funds of $334,024 to cover current year operating deficits. These deficits will be repaid with future revenues and when receivables are collected.

Interfund transfers for the year ended June 30, 2022 are as follows:

The General Fund transferred $290,000 to the nonmajor governmental funds to fund projects. In addition, the General Fund transferred $1,868,150 to the Internal Service Funds for claims liabilities, vehicle replacements, and information systems. The Solid Waste Fund transferred $265,000 to the Sewer Fund to pay for landfill costs.

Advances to/from Other Funds

The Water and Sewer Enterprise Funds advanced $15,750,000 and $5,000,000, respectively, to the General Fund. In order to enable the City to paydown a portion of the General Fund's share of the City's unfunded accrued liability ("UAL") with California Public Employees' Retirement System, the City is leasing the real property dated April 1, 2022. The City of Upland Financing Authority, a joint powers public financing authority promises to pay to the City of Upland Sewer Fund, the amount of $5,000,000 and the City of Upland Water Fund $15,750,000. The principal balance of the note shall bear interest at the rate of 1.92 % per annum, and the final note payments are due and payable on October 1, 2037.

Investment Type Total Level 1 Level 2 Level 3
US Treasury Obligations 1,367,055$ 1,367,055$ -$ -$ U.S. Government Agency Securities 54,793,447 - 54,793,447 - Medium-term Notes 499,365 - 499,365 - Certificates of Deposit 12,831,518 - 12,831,518 - Municipal Obligations 675,892 - 675,892 - Total 70,167,277$ 1,367,055$ 68,800,222$ -$
Fair Value Hierarchy
Nonmajor Internal
Governmental Sewer Utility Service
TRANSFERS OUT Funds Fund Funds Total
General Fund 290,000$ -$ 1,868,150$ 2,158,150$ Solid Waste Fund - 265,000 - 265,000 290,000$ 265,000$ 1,868,150$ 2,423,150$

TRANSFERS IN
40 Page 145 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

4) CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2022 is as follows:

Depreciation expense was charged to the following functions for governmental activities in the Statement of Activities:

Beginning Ending
Governmental Activities:Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:

Land 5,053,610$ -$ -$ 5,053,610$ Rights of Way 103,432,811 - - 103,432,811 Street Trees 3,537,384 - - 3,537,384 Construction in Progress 1,262,869 1,872,422 (1,413,967) 1,721,324 Total Capital Assets, Not
Being Depreciated 113,286,674 1,872,422 (1,413,967) 113,745,129 Capital Assets Being Depreciated:

Building and improvements 43,653,023 264,449 (12,000) 43,905,472 Land Improvements 5,680,955 - - 5,680,955 Park Improvements 12,370,161 - - 12,370,161 Equipment 8,014,699 483,919 (630,359) 7,868,259 Vehicles 4,239,261 307,555 (31,085) 4,515,731 Infrastructure - Bridge 4,081,500 - - 4,081,500 Infrastructure - Street System 187,344,859 1,499,232 (368,122) 188,475,969 Infrastructure - Storm Drains 25,063,300 224,470 - 25,287,770 Total Capital Assets Being
Depreciated 290,447,758 2,779,625 (1,041,566) 292,185,817 Less Accumulated Depreciation:

Building and improvements (14,543,413) (854,774) 12,000 (15,386,187) Land Improvements (287,709) (486,726) - (774,435) Park Improvements (7,368,036) (398,531) - (7,766,567) Equipment (5,778,360) (763,363) 630,359 (5,911,364) Vehicles (2,430,768) (538,391) 31,085 (2,938,074) Infrastructure - Bridge (81,630) (81,630) (163,260) Infrastructure - Street System (81,707,950) (4,843,635) 368,122 (86,183,463) Infrastructure - Storm Drains (4,923,550) (250,633) - (5,174,183) Total Accumulated Depreciation (117,121,416) (8,217,683) 1,041,566 (124,297,533) Total Capital Assets Being
Depreciated, Net 173,326,342 (5,438,058) - 167,888,284 Governmental Activities, Capital Assets, Net 286,613,016$ (3,565,636)$ (1,413,967)$ 281,633,413$ General Government 1,305,382$
Public Safety 935,699
Engineering and Public Works 5,512,097
Community Services 464,505
8,217,683$
41 Page 146 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

4) CAPITAL ASSETS – Continued

Depreciation expense was charged to the following programs for business-type activities in the Statement of Activities:

Beginning Ending
Business Type Activities:Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:

Land 2,954,861$ -$ -$ 2,954,861$ Construction in Progress 4,249,828 9,575,146 (920,389) 12,904,585 Total Capital Assets, Not
Being Depreciated 7,204,689 9,575,146 (920,389) 15,859,446 Capital Assets Being Depreciated:

Pipelines 66,958,606 3,369,885 (538,371) 69,790,120 Reservoirs 37,935,771 - - 37,935,771 Building and improvements - 55,818 - 55,818 Land Improvements 9,870 - - 9,870 Treatment Facilities 14,549,932 - - 14,549,932 Wells/pumps 5,340,879 - - 5,340,879 Sewer Manholes 2,784,068 - - 2,784,068 Machinery and Equipment 1,577,568 174,451 - 1,752,019 Vehicles 2,835,151 343,358 (84,593) 3,093,916 Total Capital Assets Being
Depreciated 131,991,845 3,943,512 (622,964) 135,312,393 Less Accumulated Depreciation:

Pipelines (19,021,489) (1,339,172) 398,395 (19,962,266) Reservoirs (14,502,733) (738,483) - (15,241,216) Land Improvements (2,961) (987) - (3,948) Treatment Facilities (7,127,649) (290,999) - (7,418,648) Wells/pumps (1,704,222) (105,253) - (1,809,475) Sewer Manholes (2,148,842) (39,097) - (2,187,939) Machinery and Equipment (1,188,699) (109,563) - (1,298,262) Vehicles (1,758,604) (405,778) 84,593 (2,079,789) Total Accumulated Depreciation (47,455,199) (3,029,332) 482,988 (50,001,543) Total Capital Assets Being
Depreciated, Net 84,536,646 914,180 (139,976) 85,310,850 Business Activities, Capital Assets, Net 91,741,335$ 10,489,326$ (1,060,365)$ 101,170,296$ Water Utility 2,214,038$
Sewer Utility 815,294
3,029,332$
42 Page 147 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

5) LONG-TERM LIABILITIES

Changes in long-term liabilities for governmental activities are as follows:

The liability for compensated absences, Net OPEB, and Net Pension are generally liquidated by the General Fund and internal service funds.

2021 Multifamily Housing Loan (direct borrowing)

In July 2021, the City entered into a $12.9 million loan agreement with Western Alliance Business Trust (2021 Loan) for the purpose of refunding the 2017 Multifamily Housing Revenue Note (2017 Note). Proceeds from the loan were used to refund in full the 2017 Note, which was issued to refund the 2007 Multifamily Housing Revenue Bonds (2007 Bonds).

The 2007 Bonds were used to finance certain redevelopment projects in the project area of the former Community Redevelopment Agency and to advance refund previous Housing Revenue Bonds. Upon the issuance of the 2021 Loan, the 2017 Note is considered defeased and the liability was removed from these financial statements.

Principal and interest on the 2021 Loan are payable in monthly payments due the first of each month, with the final payment scheduled for August 1, 2037. Payments are secured by a pledge of revenues generated by apartment rentals that have been assigned to the Housing Fund of the City pursuant to Assembly Bills 1x26 and 1484. The loan agreement contains provisions that in an event of default, outstanding amounts may become immediately due if the City is unable to make payment.

The following represents the future annual debt service requirements:

Beginning Ending Due in
Balance Additions Deletions Balance one year
Governmental Activities
Compensated Absences Payable 2,205,010$ 1,350,677$ 1,440,643$ 2,115,044$ 1,005,051$ Net OPEB Liability 11,212,517 - 265,855 10,946,662 - Net Pension Liability 106,396,311 - 31,156,555 75,239,756 - Claims Payable 9,747,449 1,106,860 1,022,580 9,831,729 2,856,713 Loans from Direct Borrowings:
2021 Multifamily Housing Loan - 12,982,644 580,246 12,402,398 600,325 2017 Multifamily Housing Rev. Note 12,815,172 - 12,815,172 - - Energy Efficiency Lease 2,315,655 - 170,254 2,145,401 171,137 CREBS Lease Agreement 4,441,631 - 55,603 4,386,028 83,657 Total Direct Borrowings 19,572,458 12,982,644 13,621,275 18,933,827 855,119 Total Government Activities 149,133,745$ 15,440,181$ 47,506,908$ 117,067,018$ 4,716,883$ 43 Page 148 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

5) LONG-TERM LIABILITIES – Continued

Energy Efficiency Lease Agreement (direct borrowing)

In August 2017, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment including lighting and HVAC (non-solar) with an aggregate principal borrowing of $2,797,094. The proceeds were to be used to pay for energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.60% and are due and payable semi-annually on February 24th and August 24th each year, maturing on August 24, 2032. The General Fund will generally be responsible for making the debt service payments annually.

The annual debt service requirements for the lease agreement as of June 30, 2022 are as follows:

CREBS Lease Agreement (direct borrowing)

In August 2017, the City entered into a lease-purchase agreement for the acquisition, construction and installation of certain energy conservation equipment and improvements (solar) with an aggregate principal borrowing of $4,548,393. The proceeds were to be used to pay for certain issuance costs and energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.46% and are due and payable semi-annually, on February 24th and August 24th each year, maturing on August 24, 2037.

The General Fund will generally be responsible for making the debt service payments annually.

The annual debt service requirements for the lease agreement as of June 30, 2022 are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2023 600,325$ 53,608$ 653,933$
2024 674,562 355,184 1,029,746
2025 695,704 334,042 1,029,746
2026 717,508 312,238 1,029,746
2027 739,996 289,750 1,029,746
2028-2032 4,062,750 1,085,979 5,148,729
2033-2037 4,740,589 408,139 5,148,728
2038 170,964 661 171,625
Totals 12,402,398$ 2,839,601$ 15,241,999$
Fiscal Year Ending
June 30, Principal Interest Total
2023 171,137$ 90,646$ 261,783$
2024 172,741 83,285 256,026
2025 176,862 75,825 252,687
2026 183,160 68,162 251,322
2027 191,372 60,207 251,579
2028-2032 1,122,976 213,569 1,336,545
2033 127,153 16,835 143,988
Totals 2,145,401$ 608,529$ 2,753,930$
44 Page 149 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

5) LONG-TERM LIABILITIES – Continued

Changes in long-term liabilities for business-type activities are as follows:

2022 Water Revenue Bonds

In March 2022, the City issued $15,750,000 of Water Revenue Bonds to finance capital improvements to the City’s water system. The interest rate on the 2022 Bonds is 1.92%, payable semi-annually on April 1 and October 1 of each year until maturity on October 1, 2037. The City has purchased bond insurance to satisfy the reserve requirements for these Bonds.

The Bonds are secured by a pledge of net revenues of the water system. The City is required to set rates, fees, and charges for each fiscal year so as to yield system net revenues during each fiscal year equal to 125% of the annual debt service (including parity debt, if any).

All system net revenues, which approximate $7.5 million annually, are irrevocably pledged to the payment of the installment payments. There were no principal and interest payments due on the bonds for 2021-22 fiscal year. The Bond indenture contains a provision that in an event of default, outstanding amounts may become immediately due if the City is unable to make payment. The future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2023 83,657$ 151,088$ 234,745$
2024 98,346 148,070 246,416
2025 114,018 144,535 258,553
2026 130,727 140,448 271,175
2027 148,527 135,775 284,302
2028-2032 1,050,497 585,412 1,635,909
2033-2037 2,452,069 306,794 2,758,863
2038 308,187 5,332 313,519
Totals 4,386,028$ 1,617,454$ 6,003,482$
Beginning Ending Due in
Balance Additions Deletions Balance one year
Business-type Activities
Compensated absences payable 389,752$ 315,477$ 294,900$ 410,329$ 224,902$ Net OPEB Liability 2,436,316 267,930 - 2,704,246 - Net Pension Liability 14,000,174 - 4,057,012 9,943,162 - 2022 Water Revenue Bonds - 15,750,000 - 15,750,000 845,000 2021 Water Refunding Bonds - 6,553,000 - 6,553,000 25,000 2011 Revenue Refunding Bonds 6,820,000 - 6,820,000 - - Unamortized premium 412,147 - 412,147 - - Loans from Direct Borrowings:

SAWCO Loan 1,032,000 - 344,000 688,000 344,000 SWRCB Loan 666,627 - - 666,627 - Total Direct Borrowings 1,698,627 - 344,000 1,354,627 344,000 Total Business-type Activities 25,757,016$ 22,886,407$ 11,928,059$ 36,715,364$ 1,438,902$ 45 Page 150 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

5) LONG-TERM LIABILITIES – Continued

2021 Water Refunding Bonds

In October 2021, the City issued $6,553,000 of 2021 Water Revenue Refunding Bonds to provide for the current refunding of the remaining portion of the City’s 2011 Revenue Refunding Bonds. The interest rate on the 2021 Bonds is 1.5%, payable semi-annually on April 1 and October 1 of each year until maturity on October 1, 2033.

The City has purchased bond insurance to satisfy the reserve requirements for these Bonds.

The City refunded the 2011 Revenue Refunding Bonds to decrease total debt service payments by approximately $1.36 million and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $1.33 million.

All system net revenues, which approximate $7.5 million annually, are irrevocably pledged to the payment of the installment payments. Principal and interest payments on the bonds for the 2021-22 fiscal year totaled $45,597. The Bond indenture contains a provision that in an event of default, outstanding amounts may become immediately due if the City is unable to make payment. The future debt service requirements are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2023 845,000$ 296,808$ 1,141,808$
2024 865,000 277,872 1,142,872
2025 880,000 261,120 1,141,120
2026 900,000 244,032 1,144,032
2027 915,000 226,608 1,141,608
2028-2032 4,860,000 859,392 5,719,392
2033-2037 5,350,000 369,600 5,719,600
2038 1,135,000 10,896 1,145,896
Totals 15,750,000$ 2,546,328$ 18,296,328$
Fiscal Year Ending
June 30, Principal Interest Total
2023 25,000$ 98,108$ 123,108$
2024 25,000 97,732 122,732
2025 560,000 93,345 653,345
2026 622,000 84,480 706,480
2027 633,000 75,068 708,068
2028-2032 3,303,000 229,163 3,532,163
2033-2034 1,385,000 20,857 1,405,857
Totals 6,553,000$ 698,753$ 7,251,753$
46 Page 151 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

5) LONG-TERM LIABILITIES – Continued

SAWCO Loan Payable (direct borrowing)

In March 2019, the City entered into an agreement with the San Antonio Water Company (SAWCO) to purchase land valued at $1,720,000. The transaction was executed in September of 2019. SAWCO sold the land in exchange for a promissory note for $1,720,000. The loan is payable from the City in equal installments of $344,000 bearing an interest rate of 1.88%. The principal and interest payments are due on December 10, of each year with the final payment maturing on December 10, 2023.

The future debt service requirements are as follows:

SWRCB Loan Payable (direct borrowing)

The City has entered into a Construction Installment Sale Agreement with the California State Water Resources Control Board (State), to finance the replacement of a 7.5 MG reservoir (Project). The State has agreed to provide Project funds not to exceed $16.5 million. As of June 30, 2022, the City has drawn down $666,627 under the agreement.

Interest is accrued on the loan at 1.9% per annum, beginning with each drawdown. The City must pay interest annually during Project construction. Principal payments are not required until Project completion, with a final payment date of April 1, 2052. Upon completion of the Project, the City will be required to make annual payments of both principal and interest, based on a final payment schedule to be provided by the State at that time. Future debt service requirements will be disclosed for this loan upon Project completion.

The loan is secured by a lien on and pledge of net revenues in the City’s Water Fund. The City is required to establish and maintain a reserve fund prior to Project completion, in an amount equal to one year’s debt service on the loan.

6) OTHER POST EMPLOYMENT BENEFITS

General Information About the OPEB Plan

Plan Description – The City administers a single-employer defined benefit healthcare plan (“the Plan”) which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. After age 65, Medicare automatically becomes the primary provider of health coverage. The City’s defined benefit plan becomes the secondary provider. Eligible retirees will have no noticeable change in health benefits or plan administration; however, there is a reduction in the City’s cost of health coverage as the secondary provider. The City’s defined benefit plan administrator establishes the cost of secondary provider rates annually. There is no separate audited benefit plan report available. The City will pay a portion of the eligible retirees’ health coverage depending on their years of service.

Benefits Provided – Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 10 years of service, and are eligible for a PERS pension.

Fiscal Year Ending
June 30, Principal Interest Total
2023 344,000$ 12,934$ 356,934$
2024 344,000 6,467 350,467
Totals 688,000$ 19,401$ 707,401$
47 Page 152 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

6) OTHER POST EMPLOYMENT BENEFITS – Continued

Employees Covered by Benefit Terms – As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:

Contributions – The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contributions to the Plan are based on the costs to provide the benefits as described above on a pay as you go basis. For the fiscal year ended June 30, 2022, the City’s pay-as-you-go costs were $792,544. In addition, as the City’s budget allows, the City will make additional contributions to the OPEB Trust Account, administered by the Public Agency Retirement Systems (PARS).

Net OPEB Liability - The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:

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 weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2022 are summarized in the following table:

City Service Retiree Spouse
10 - 14 years 72.57$ 45.00$
15 - 19 years 96.81 45.00
20 - 24 years 121.05 45.00
25 or more years 145.14 45.00
Monthly City Contribution
Retirees or spouses of retirees currently receiving benefits 223 Active employees 200
Total 423
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Actuarial Cost
Mortality 2017 CalPERS Experience Study
Age at Retirement Varies, 55 to 75
Health Care Trend Rate 5.40% initial, 4.0% ultimate
Inflation Rate 2.50%
Salary Changes 3.00%
Discount Rate 2.30
Asset Return 5.64%
Target Long-Term
Asset Class Allocation Rate of Return
Fixed Income 35% 6.80%
Equities 60% 3.90%
Cash 5% 2.40%
Total 100.00%
48 Page 153 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

6) OTHER POST EMPLOYMENT BENEFITS – Continued

Discount Rate – The discount rate of 2.30% is a blended rate between the rate of return of 5.64% and 2.16%, the resulting rate using the Bond Buyer 20-Bond GO index.

Changes in the Net OPEB Liability

Sensitivity of the Net OPEB Liability to changes in the Discount Rate - The following presents the net OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:

Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the net OPEB liability of the City, as well as what the City’s Net OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:

OPEB Plan Fiduciary Net Position

PARS issues a publicly available financial report that may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave., Newport Beach, CA 92660.

Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2021 (2020 Measurement Date) 14,813,883$ 1,165,050$ 13,648,833$ Changes in the year:

Service cost 226,606 - 226,606 Interest on the total OPEB liability 326,794 - 326,794 Employer contributions - 997,138 (997,138) Actual investment income - 75,298 (75,298) Differences between expected and actual experience 841,486 - 841,486 Changes of assumptions (171,113) - (171,113) Administrative Expense - (6,956) 6,956 Benefit payments, including refunds (772,138) (772,138) - Investment Experience - 156,218 (156,218) Net changes 451,635 449,560 2,075 Balance at June 30, 2022 (2021 Measurement Date) 15,265,518$ 1,614,610$ 13,650,908$ Increase (Decrease)
1% Decrease Discount Rate 1% Increase
(1.30%) (2.30%) (3.30%)
Net OPEB liability (asset) 15,548,405$ 13,650,908$ 12,066,075$ Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Net OPEB liability (asset) 12,796,885$ 13,650,908$ 14,661,362$ 49 Page 154 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

6) OTHER POST EMPLOYMENT BENEFITS – Continued

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

For the year ended June 30, 2022, the City recognized OPEB expense of $756,517. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

The $1,019,544 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

7) TAX ABATEMENT

The City enters into various tax abatement agreements for the purpose of attracting or retaining businesses within the City’s jurisdiction. In July 2021, a fifteen-year agreement was entered into with a commercial concrete and asphalt company. As an incentive to continue to operate within the City, for each fiscal year in which the company produces sales tax revenues to the City of Upland in excess of $400,000, the City will pay the company 40% of sales tax revenue. The amount of sales tax abated to that company for the fiscal year ended June 30, 2022 was $874,702.

8) DEBT WITHOUT GOVERNMENT COMMITMENT

The City has various outstanding bond issues which are not reflected in these financial statements. These bond issues are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Successor Agency to UCRA, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. No legal obligation on the part of the City exists to make payments on the bonds from any source other than the revenues or assets pledged therefore. The programs are completely administered by trustees, and the total outstanding balance at June 30, 2022 is $54,525,000.

Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date 1,019,544$ -$ Changes of Assumptions 1,628,354 140,557
Net differences between expected
and actual experience 691,221 826,061
Net differences between projected and actual
earnings on plan investments - 116,122 Total 3,339,119$ 1,082,740$
Year Ending
June 30,
2023 268,053$
2024 266,366
2025 363,452
2026 267,136
2027 71,828
Thereafter -
50 Page 155 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

9) CLAIMS AND JUDGEMENTS

The City is exposed to various risks of loss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City’s Self-funded Insurance Internal Service Fund is used to account for and finance its uninsured risks of loss. The City purchases coverage from Municipal Insurance Cooperative (MIC) for general liability coverage, with a limit up to $10M. MIC provides coverage in excess of the City’s self-insured retention of $400,000. Excess general liability coverage is also obtained through excess carriers up to $20M in limits. Starstone National Insurance provides $10M excess and Markel Insurance Company provides the second layer of excess coverage.

The City is self-insured for workers’ compensation through its membership with the Municipal Insurance Cooperative Joint Powers Authority, covering occupation injuries and employer’s liability insurance. Through its participation in this program, the City has retained a limit of $1M per occurrence purchased through Arch Insurance Group covering up to statutory limits under California workers’ compensation law. Additionally, the City purchases a buffer layer policy to reduce the $1M retention to $500,000 covering occupation injuries and employer’s liability insurance provided by Great American E&S Insurance Company.

In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage.

The claims and judgments liability reported in the Self-funded Insurance Internal Service Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims and judgments be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. As of June 30, 2022, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $9,831,729.

Changes in the claims and judgments payable amounts in fiscal years ended June 30, 2021 and 2022 for the Self-funded Insurance Fund are as follows:

10) PENSION PLANS

General Information about the Pension Plans - Miscellaneous

Plan Descriptions: All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and Local Government resolution. 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: www.calpers.ca.gov

Claims and
Year Ended Beginning Changes in Claim End
June 30, of Year Estimates Payments of Year
2022 9,747,449$ 1,106,860$ 1,022,580$ 9,831,729$
2021 10,504,707 3,068,055 3,825,313 9,747,449 51 Page 156 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Benefits Provided: The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plan’s June 30, 2020 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.

The Plans’ provisions that are in effect at June 30, 2022, are summarized as follows:

Employees Covered: At June 30, 2022, the following number of employees were covered by the benefit terms for the 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. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.

Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 52
Monthly benefits, as a % of eligible compensation (1)(1) Required employee contribution rates 8%7.25%
Required employer contribution rates 10.42% + $3,463,248 7.25% (1) - Depending on years of service
Miscellaneous
Miscellaneous
Inactive employees or beneficiaries
currently receiving benfits 422
Inactive employees entitled to but not yet
receiving benefits 280
Active employees 150
52 Page 157 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Net Pension Liability
The City’s net pension liability for the Plan 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, 2020, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions: The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

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. Using historical returns of all the funds’ asset classes, expected compound 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

Miscellaneous
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 7.15%
Inflation 2.75%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. 53 Page 158 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Discount Rate – The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events – On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Global Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 54 Page 159 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage- point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Pension Plan Fiduciary Net Position: Detailed information about the 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, 2022, the City recognized pension expense of $1,594,028 for the Miscellaneous Plan. At June 30, 2022, the City reported deferred outflows and deferred inflows for the Miscellaneous Plan from the following sources:

Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 137,564,842$ 95,534,898$ 42,029,944$ Changes in the year:

Service cost 1,692,908 - 1,692,908 Interest on the total pension liability 9,678,380 - 9,678,380 Changes of benefit terms - - - Differences between expected and actual experience 1,115,756 - 1,115,756 Changes in assumptions - - - Net Plan to Plan Resource Movement - - - Contributions from the employer - 4,063,124 (4,063,124) Contributions from employees - 633,415 (633,415) Net investment income - 21,384,568 (21,384,568) Benefit payments, including refunds (8,330,169) (8,330,169) - Administrative/other expense - (95,434) 95,434 Net changes 4,156,875 17,655,504 (13,498,629) Balance at June 30, 2021 141,721,717$ 113,190,402$ 28,531,315$ Increase (Decrease)
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 46,052,095$
Current Discount Rate 7.15%
Net Pension Liability 28,531,315$
1% Increase 8.15%
Net Pension Liability 14,031,751$
55 Page 160 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

$19,737,848 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

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

General Information about the Pension Plans – Safety

Plan Description – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-sharing Multiple-employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire). Plan assets may be used to pay benefits for any employer rate plan of the safety pool. Accordingly, rate plans within the safety pool are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the safety pool. The City sponsors five rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website: www.calpers.ca.gov

Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2020 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2020 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 19,737,848$ -$ Differences between actual and expected experience 528,516 - Changes in assumptions - -
Net differences between projected and actual
earnings on plan investments - 10,652,111 Total 20,266,364$ 10,652,111$
Miscellaneous
Year Ending
June 30, Amount
2023 (2,177,318)$
2024 (2,458,571)
2025 (2,547,707)
2026 (2,939,999)
2027 -
Thereafter -
56 Page 161 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued
The rate plan provisions and benefits in effect at June 30, 2022, are summarized as follows:

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law 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. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $6,151,366 in fiscal year 2022. The City’s contributions to the Plan for the year ended June 30, 2022 were $37,727,924.

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

As of June 30, 2022, the City reported a liability of $56,651,603 for its proportionate share of the net pension liability. The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 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 plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the Plan’s net pension liability as of June 30, 2020 and 2021 was as follows:

For the year ended June 30, 2022, the City recognized pension expense of $19,956,730. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Safety pension plan from the following sources:

Safety
Safety PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 55
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52
Monthly benefits, as a % of eligible compensation (1) (1) Required employee contribution rates 9% 12.25%
Required employer contribution rates 20.09% + $6,105,312 18.19% + $46,054 (1) - Depending on years of service
Proportion - June 30, 2020 0.72025%
Proportion - June 30, 2021 1.04750%
Change - Increase (Decrease)0.32725%
57 Page 162 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

The $37,727,924 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

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

Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 37,727,924$ -$ Differences between actual and expected experience 9,678,877 - Changes in assumptions - -
Change in employer's proportion and differences 16,519 1,518,636 Differences between the employer's contributions and
the employer's proportionate share of contributions - 2,462,173 Net differences between projected and actual
earnings on plan investments - 33,718,594 Total 47,423,320$ 37,699,403$
Year Ending
June 30, Amount
2023 (5,127,050)$
2024 (6,042,161)
2025 (7,555,909)
2026 (9,278,887)
2027 -
Thereafter -
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 7.15%
Inflation 2.50%
Payroll growth 3.00%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depends on entry age, service and type of employment (2) Derived using CalPERS’ Membership Data for all Funds. 58 Page 163 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Long-term Expected Rate of Return - 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, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound 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 rounded 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 equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:

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 Plan, calculated using the discount rate for the 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 1-percentage point lower or 1-percentage point higher than the current rate:

New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 59 Page 164 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

10) PENSION PLANS – Continued

Pension Plan Fiduciary Net Position – Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan - At June 30, 2022, the City reported no payables to the pension plan, for outstanding contributions required for the year ended June 30, 2022.

The total pension expense for the miscellaneous and safety plan was $21,550,758.

11) EQUITY INTERESTS

The City has ownership in the San Antonio and West End water companies based upon the number of stock shares owned. To protect the water rights for the citizens of Upland, the City’s water utility has followed the practice of purchasing shares of stock in the water companies as they become available. The City’s primary motivation for owning shares in the water companies is to secure rights to well water pumped by the two companies. One Upland City Council member is also on the Board of San Antonio Water Company. As development takes place within the City, the City requires developers to contribute 1.5 shares for each acre developed. The City’s equity interests in the water companies has been recorded using the equity method of accounting and is reflected as an equity interest in the accompanying financial statements.

On February 19, 1980, the Water Facilities Authority was created under a joint exercise of powers agreement for the acquisition and construction of facilities to supply water to the inhabitants within the boundaries of its members. The Authority’s Board of Directors consists of one member appointed from each participating agency.

The City’s investment in the Authority has been recorded using the equity method of accounting and is reflected as an equity interest in the accompanying financial statements.

Separate financial statements may be obtained for the San Antonio Water Company and Liquidation Trust at 139 North Euclid Avenue, Upland, California; for the West End Consolidated Water Company at 460 N. Euclid Avenue, Upland, California; and for the Water Facilities Authority at 1775 North Benson Avenue, Upland, California. The following schedule summarizes the City’s investment in joint ventures at June 30, 2022 and the gain (loss) on the investment for the year then ended:

1% Decrease 6.15%
Net Pension Liability 87,596,911$
Current Discount Rate 7.15%
Net Pension Liability 56,651,603$
1% Increase 8.15%
Net Pension Liability 31,233,855$
60 Page 165 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

11) EQUITY INTERESTS - Continued

12) SUCCESSOR AGENCY ACTIVITIES

Changes in long-term liabilities for the Successor Agency are as follows:

2013 Tax Allocation Refunding Bonds

On May 9, 2013, the Successor Agency of the former Upland Community Redevelopment Agency issued tax allocation refunding bonds in the amount of $22,090,000 to refund the outstanding aggregate principal amount of the 1998 and 2003 Tax Allocation Bonds. Interest rates on the bonds range from 2.00% to 5.00% and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues of the Merged Project Area. Term Bonds maturing September 1, 2018 and September 1, 2023 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2015 and September 1, 2019, respectively, and on each September 1 thereafter at a price equal to the principal amount thereof plus accrued interest. There are certain limitations regarding the issuance of parity debt as further described in the official statement.

The future debt service requirements for the bonds are as follows:

City's Share of
Percentage Total Joint City's Equity Joint Venture Net
Water Company Ownership Venture Equity Interest Income (Loss) San Antonio Water Company 70.69% 30,094,142$ 21,273,549$ 835,862$ West End Water Company 91.18% 2,151,634 1,961,860 (339,758) Water Facilities Authority 23% 28,610,480 6,580,410 (51,918) Total 29,815,819$ 444,186$
Beginning Ending Due in
Balance Additions Retirements Balance one year
Fiduciary Fund Long-term Debt
2013 Tax Allocation Bonds 6,890,000$ -$ 2,200,000$ 4,690,000$ 2,290,000$ 2016 Tax Allocation Bonds 11,585,000 - 185,000 11,400,000 190,000 Unamortized Premium 1,866,067 - 291,698 1,574,369 - Total Fiduciary Fund Debt 20,341,067$ -$ 2,676,698$ 17,664,369$ 2,480,000$ Fiscal Year Ending
June 30, Principal Interest Total
2023 2,290,000$ 177,250$ 2,467,250$
2024 2,400,000 60,000 2,460,000
Totals 4,690,000$ 237,250$ 4,927,250$
61 Page 166 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

12) SUCCESSOR AGENCY ACTIVITIES – Continued

2016 Tax Allocation Refunding Bonds

On September 14, 2016, the Successor Agency of the former Redevelopment Agency issued tax allocation refunding bonds in the amount of $12,275,000 to refund the outstanding aggregate principal amount of the 2006 Tax Allocation Bonds. Interest rates on the 2016 Bonds range from 2.00% to 5.00%, and payments are due semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable from pledged tax increment revenues of the Merged Project Area. Term Bonds maturing September 1, 2036 are subject to mandatory sinking fund redemption, in part by lot, on September 1, 2029, and on each September 1 thereafter at a price equal to the principal amount thereof, plus accrued interest.

The future debt service requirements for the bonds are as follows:

13) CONTINGENT RECEIVABLE

Measure I is the half-cent sales tax collected throughout San Bernardino County for transportation improvements. San Bernardino County Transportation Authority (SBCTA), the regional transportation authority, administers Measure I revenue and is responsible for determining which projects receive Measure I funding, and ensuring that transportation projects are implemented. In June of 2012, the City and SBCTA entered into a Jurisdiction Master Agreement. Per the terms of the Agreement, SBCTA will reimburse the City for the public share of eligible project expenditures with Measure I funds in an amount determined by SBCTA. SBCTA is to annually adopt a funding allocation and project list and will notify the City of the Measure I allocation and the list of eligible projects for reimbursement. The City will prepare and submit to SBCTA invoices for reimbursement of those eligible expenditures.

Revenues are recognized by the City when both eligible expenditures have been incurred and annual funding allocations are approved by SBCTA. At June 30, 2022, prior expenditures related to the Foothill Boulevard Widening Project, which total over $3.5 million are included in the Measure I projects eligible for reimbursement.

However, due to limited program tax revenue accruals from 2010, only $2,590,094 of project costs have been approved for disbursements by SBCTA and recorded as revenue as of June 30, 2022. Of this amount, $1,807,920 was received in prior years and $213,810 remained outstanding as of June 30, 2022. Future reimbursements are expected to coincide with annual tax revenue generated under the Measure I program for arterial transportation projects.

Fiscal Year Ending
June 30, Principal Interest Total
2023 190,000$ 458,687$ 648,687$
2024 205,000 450,787 655,787
2025 2,395,000 386,813 2,781,813
2026 2,530,000 263,688 2,793,688
2027 970,000 181,037 1,151,037
2028-2032 2,650,000 499,982 3,149,982
2033-2037 2,460,000 172,838 2,632,838
Totals 11,400,000$ 2,413,832$ 13,813,832$
62 Page 167 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

14) FUND BALANCE

The City’s governmental fund balances at June 30, 2022, are presented below:

The deficit unassigned fund balance in the Major governmental funds will be repaid when receivables are collected and from future revenues. In accordance with the City’s General Fund reserve policy, balances were categorized as assigned for Infrastructure Improvements totaling $3,011,000 and Building Maintenance Improvements totaling $1,480,000 but have been eliminated to offset the deficit unassigned fund balance.

The Self-funded Internal Service Fund has a deficit of $7,324,666 as a result of claims liabilities exceeding assets.

15) COMMITMENTS AND CONTINGENCIES

The City has been named as a defendant in certain other claims and litigation matters. In the opinion of City management, the outcome of such litigation is not expected to result in a material adverse effect to the financial condition of the City beyond that accrued in the City’s Self-funded Insurance Fund.

The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.

Total Non-major Total
General Housing ARPA Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable:

Inventory and Prepaid Items 81,125$ -$ -$ -$ 81,125$ Long-term Notes Receivable 28,761 - - - 28,761 Restricted:

Disability Access 118,175 - - - 118,175 Section 115 Pension Trust 2,616,973 - - - 2,616,973 Low and Moderate Income Housing - 10,892,454 - 7,028,757 17,921,211 Public Safety - - - 2,480,098 2,480,098 Street Maintenance - - - 15,917,276 15,917,276 Air Pollution Reduction Measures - - - 233,200 233,200 Downtown Parking & Business Improvement - - - 224,989 224,989 Capital Improvements - - - 3,258,487 3,258,487 Park Acquisition and Development - - - 10,089,764 10,089,764 Storm Drain - - - 4,952,856 4,952,856 Street and Traffic Safety - - - 1,303,664 1,303,664 Street and Alley Repair - - - 687,108 687,108 Committed to:

Economic Uncertainty Reserve 10,300,000 - - - 10,300,000 Emergency Contingency 1,000,000 - - - 1,000,000 General Plan Update 502,000 - - - 502,000 Memorial Park Improvements 140,000 - - - 140,000 Legal/Labor Negotiations 450,000 - - - 450,000 Continuinng Appropriations 42,329 - - - 42,329 Assigned:

General Capital Improvements - - - 191,505 191,505 Unassigned (11,880,703) - (307,126) (81,091) (12,268,920) Total Fund Balance 3,398,660$ 10,892,454$ (307,126)$ 46,286,613$ 60,270,601$ 63 Page 168 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

15) COMMITMENTS AND CONTINGENCIES

The City had approximately $254,224 in outstanding construction contract obligations as of June 30, 2022.

State Water Resource Control Board Loans

On November 25, 2019, the City entered into a construction financing agreement (State Revolving Fund (SRF) loan) with the California State Water Resources Control Board for the construction of a replacement 7.5 MG water reservoir (project). Pursuant to the financing agreement, the state loan will finance planning, design, and construction of the reservoir in an amount not to exceed $16.5 million with an interest rate of 1.9% for a 30-year term. Per the financing agreement, the loan will be repaid from the pledge of net water revenues of the City’s Water System and its Water Enterprise Fund. After construction is completed, the project loan schedule will be adjusted to reflect the actual project expenditures.

The project was awarded on November 23, 2020 with construction to commence in the beginning of 2021. The City will make progress payment requests to the State for reimbursement of payments made for eligible project expenses. The first reimbursement for eligible costs was received from the State on September 23, 2020.

16) IMPLEMENTATION OF GASB PRONOUNCEMENTS

The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:

GASB 96 – Subscription-Based Information Technology Arrangements: The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023.

17) LEASES

Lease Receivable - In prior fiscal years, the City entered into various land lease agreements with third parties to lease pieces of land owned by the City. The initial lease terms ranged from 4 to 44 years. The City currently receives monthly payments from all leases of $67,111. The City recognized $540,571 in lease revenue and $264,756 in interest revenue during the current fiscal year related to the various leases. As of June 30, 2022, the City’s receivable for lease payments was $3,771,104. Also, the City has a deferred inflow of resources associated with leases that will be recognized as revenue over the lease terms. As of June 30, 2022, the balance of the deferred inflow of resources was $3,771,104.

18) SPECIAL ITEM

The City made additional contributions to the unfunded pension liabilities of CalPERS Safety and Miscellaneous Plans totaling $45,755,448 using General Fund reserves and Water and Sewer Fund reserves. The Special Item in the Statement of Revenues, Expenditures, and Changes in Fund Balances of $30,500,000 represents the amounts paid from Governmental Funds.
64 Page 169 of 281

City of Upland
Notes to Financial Statements
Year Ended June 30, 2022

19) DISCRETELY PRESENTED COMPONENT UNITS

West End Consolidated Water Company

Capital assets activity for the West End Consolidated Water Company for the year ended December 31, 2021, was as follows:

San Antonio Water Company

Capital assets activity for the San Antonio Water Company for the year ended December 31, 2021, was as follows:

Beginning Ending
Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated:

Land 8,574$ -$ -$ 8,574$ Water Rights 487,296 - - 487,296 Total Capital Assets, Not Depreciated 495,870 - - 495,870 Capital Assets Being Depreciated:

Facility and Fencing Improvements 22,810 - - 22,810 Boosters 26,374 - - 26,374 Wells 1,280,137 - - 1,280,137 Reservoirs 59,528 - - 59,528 Pipelines 259,772 - - 259,772 Pumps and Equipment 269,045 - - 269,045 Total Capital Assets Being Depreciated 1,917,666 - - 1,917,666 Less Accumulated Depreciation:941,012 39,482 - 980,494 Net Capital Assets Being Depreciated 976,654 (39,482) - 937,172 West End, Capital Assets, Net 1,472,524$ (39,482)$ -$ 1,433,042$ Beginning Ending
Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated:

Land and Water Rights 920,161$ -$ -$ 920,161$ Construction in Progress 1,133,239 3,265,472 2,187,381 2,211,330 Total Capital Assets, Not Depreciated 2,053,400 3,265,472 2,187,381 3,131,491 Capital Assets Being Depreciated:

Tunnels and Forebay 1,587,111 - - 1,587,111 Wells, Shafts, Building 4,887,027 23,893 - 4,910,920 Pipelines 16,435,128 2,102,977 6,080 18,532,025 Boosters 2,448,690 51,903 - 2,500,593 Reservoirs 3,081,787 - - 3,081,787 All Other 4,512,253 242,984 - 4,755,237 Total Capital Assets Being Depreciated 32,951,996 2,421,757 6,080 35,367,673 Less Accumulated Depreciation:14,154,404 947,994 (6,080) 15,096,318 Net Capital Assets Being Depreciated 18,797,592 1,473,763 - 20,271,355 San Antonio, Capital Assets, Net 20,850,992$ 4,739,235$ 2,187,381$ 23,402,846$ 65 Page 170 of 281

REQUIRED SUPPLEMENTARY INFORMATION
66 Page 171 of 281

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

REVENUES
Taxes:

Property Taxes 18,528,410$ 18,468,940$ 19,089,687$ 620,747$ Business License Taxes 1,080,000 1,080,000 1,158,797 78,797 Sales and Use Tax 14,789,060 18,153,630 18,469,789 316,159 Franchise Tax 1,252,060 1,252,060 1,377,349 125,289 Other 764,000 764,000 1,078,121 314,121 Licenses and Permits 1,886,520 1,478,330 2,064,096 585,766 Charges for Services 2,014,600 2,547,689 2,745,996 198,307 Fines and Penalties 497,160 590,160 600,186 10,026 Investment Income 60,000 60,000 (604,942) (664,942) Rental Income 839,070 829,070 566,426 (262,644) Intergovernmental 194,250 164,760 333,425 168,665 Other Revenue 144,440 141,016 309,991 168,975 Total Revenues 42,049,570 45,529,655 47,188,921 1,659,266

EXPENDITURES
Current:

General Government 2,665,050 1,697,513 3,408,612 (1,711,099) Public Safety 27,152,410 27,420,017 24,681,246 2,738,771 Engineering and Public Works 7,191,290 7,624,755 7,498,073 126,682 Development Services 2,287,750 2,478,778 2,180,613 298,165 Community Services 3,153,710 3,626,896 3,683,021 (56,125) Debt Service:

Principal 220,080 220,080 225,857 (5,777) Interest and Fiscal Charges 251,250 251,250 245,442 5,808 Total Expenditures 42,921,540 43,319,289 41,922,864 1,396,425 Excess (Deficiency) of Revenues
over Expenditures (871,970) 2,210,366 5,266,057 3,055,691

OTHER FINANCING SOURCES (USES)
Transfers In 1,077,340 - - -
Transfers Out (200,000) (2,283,150) (2,158,150) 125,000 Total Other Financing Sources (Uses)877,340 (2,283,150) (2,158,150) 125,000

SPECIAL ITEM
Payment towards Unfunded Pension Liability - (30,500,000) (30,500,000) - Net Change in Fund Balances 5,370 (30,572,784) (27,392,093) 3,180,691 Fund Balances, Beginning 30,790,753 30,790,753 30,790,753 - Fund Balances, Ending 30,796,123$ 217,969$ 3,398,660$ 3,180,691$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2022
Budgeted Amounts
67 Page 172 of 281

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

REVENUES
Charges for Services -$ -$ 12,442$ 12,442$ Investment Income 23,000 23,000 (170,094) (193,094) Rental Income 4,400,000 4,200,000 4,615,124 415,124 Other Revenue 209,780 209,470 (209,470) Total Revenues 4,632,780 4,432,470 4,457,472 25,002

EXPENDITURES
Current:

Development Services 2,859,990 2,873,289 2,936,195 (62,906) Debt Service:

Principal 581,770 581,770 13,395,418 (12,813,648) Interest & Fiscal Charges 500,150 500,150 363,687 136,463 Issuance Costs - - 167,472 (167,472) Total Expenditures 3,941,910 3,955,209 16,862,772 (12,907,563) Excess (Deficiency) of Revenues
over Expenditures 690,870 477,261 (12,405,300) (12,882,561)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Issuance of Debt - - 12,982,644 12,982,644 Total Other Financing Sources (Uses) - - 12,982,644 12,982,644 Net Change in Fund Balance 690,870 477,261 577,344 100,083 Fund Balance, Beginning 10,315,110 10,315,110 10,315,110 - Fund Balance, Ending 11,005,980$ 10,792,371$ 10,892,454$ 100,083$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Special Revenue Fund
Year Ended June 30, 2022
Budgeted Amounts
68 Page 173 of 281

City of Upland
Notes to Required Supplementary Information
Year Ended June 30, 2022

BUDGETS AND BUDGETARY ACCOUNTING
The following procedures are used in establishing the budgetary data reflected in the financial statements:

The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the fiscal year.

Public hearings are conducted prior to the adoption by City Council. Appropriations for each fund may only be increased or decreased by the City Council. During the year, there were budgetary appropriation increases amounting to $30,830,529. The City Manager has authority to adjust the amounts appropriated between the departments and activities of a fund, provided, however, that the total appropriations for each fund may not exceed the amounts provided in the budget resolution. The level on which expenditures may not legally exceed appropriations is the fund level. The City Manager is also authorized to approve continuing appropriations at year- end for capital improvement projects and other expenditures previously approved by the City Council. City Council approval is required for an increase in total appropriations greater than $20,000.

Budgets for the various funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Annual appropriated budgets are legally adopted for the general, special revenue, capital projects, and debt service fund types, except for the American Rescue Plan Act (ARPA) Special Revenue Fund and the Public Financing Authority Debt Service funds for which no budget is legally adopted and therefore no budget comparison schedule will be presented.
69 Page 174 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
Agent Multiple-employer Plan - Miscellaneous
Total Pension Liability 2021 2020 2019
Service cost 1,692,908$ 1,461,755$ 1,581,166$ Interest on total pension liability 9,678,380 9,399,565 9,162,859 Changes in assumptions - - - Differences between expected and actual experience 1,115,756 532,528 1,054,267 Benefit payments, including refunds (8,330,169) (8,056,083) (7,756,492) Net change in total pension liability 4,156,875 3,337,765 4,041,800 Total pension liability - beginning 137,564,842 134,227,077 130,185,277 Total pension liability - ending (a) 141,721,717$ 137,564,842$ 134,227,077$ Plan Fiduciary Net Position
Contributions - employer 4,063,124$ 4,697,971$ 3,311,285$ Contributions - employee 633,415 670,433 754,481 Net investment income 21,384,568 4,621,628 5,949,555 Benefit payments (8,330,169) (8,056,083) (7,756,492) Net Plan to Plan Resource Movement - - 1,301 Administrative/Other Expense (95,434) (132,141) (65,111) Net change in plan fiduciary net position 17,655,504 1,801,808 2,195,019 Plan fiduciary net position - beginning 95,534,898 93,733,090 91,538,071 Plan fiduciary net position - ending (b) 113,190,402$ 95,534,898$ 93,733,090$ Net pension liability - ending (a) - (b) 28,531,315$ 42,029,944$ 40,493,987$ Plan fiduciary net position as a percentage
of the total pension liability 79.87% 69.45% 69.83%
Covered payroll 8,066,572$ 8,343,351$ 8,524,725$ Net pension liability as percentage of
covered payroll 353.70% 503.75% 475.02%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent.

In 2016, there were no changes. In 2015, amounts reported reflected 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. * Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
70 Page 175 of 281

2018 2017 2016 2015 2014
1,568,587$ 1,728,641$ 1,603,986$ 1,778,643$ 2,058,203$ 8,880,290 8,747,118 8,670,714 8,475,794 8,374,645 (600,917) 7,056,199 - (2,015,694) - (675,727) (1,671,546) (1,502,457) (3,437,406) - (7,358,347) (7,154,726) (6,299,318) (5,934,069) (5,480,303) 1,813,886 8,705,686 2,472,925 (1,132,732) 4,952,545 128,371,391 119,665,705 117,192,780 118,325,512 113,372,967 130,185,277$ 128,371,391$ 119,665,705$ 117,192,780$ 118,325,512$ 2,999,453$ 2,352,967$ 2,239,207$ 1,977,651$ 1,880,762$ 655,077 670,114 703,361 703,031 846,655 7,384,991 9,227,177 429,550 1,971,870 13,175,373 (7,358,347) (7,154,726) (6,299,318) (5,934,069) (5,480,303) - - (301) - - (398,906) (122,962) (52,573) (97,096) - 3,282,268 4,972,570 (2,980,074) (1,378,613) 10,422,487 88,255,803 83,283,233 86,263,307 87,641,920 77,219,433 91,538,071$ 88,255,803$ 83,283,233$ 86,263,307$ 87,641,920$ 38,647,206$ 40,115,588$ 36,382,472$ 30,929,473$ 30,683,592$

70.31%68.75%69.60%73.61%74.07%
8,430,545$ 9,034,865$ 9,183,479$ 10,003,615$ 11,030,619$ 458.42% 444.01% 396.17% 309.18% 278.17%
Measurement Period
71 Page 176 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022

Schedule of Changes in the Net Pension Liability
And Related Ratios – Last 10 Years*
Agent Multiple-employer Plan – Safety Plan

Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected 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.

* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available. In addition, this plan was converted to a cost-sharing multiple employer plan for the financial reporting period ended June 30, 2020.

`2018 2017 2016 2015 2014
Total Pension Liability
Service cost 3,120,107$ 3,353,845$ 2,840,973$ 2,955,272$ 3,190,547$ Interest on total pension liability 14,424,159 13,994,358 13,738,636 13,154,006 12,955,418 Changes in benefits - - - - - Changes in assumptions (482,151) 11,831,388 - (3,292,952) - Differences between expected and actual experience 146,880 (2,387,269) 987,863 (4,793,043) - Benefit payments, including refunds (11,174,227) (10,595,503) (9,694,252) (9,101,311) (8,365,575) Net change in total pension liability 6,034,768 16,196,819 7,873,220 (1,078,028) 7,780,390 Total pension liability - beginning 206,098,820 189,902,001 182,028,781 183,106,809 175,326,419 Total pension liability - ending (a)212,133,588$ 206,098,820$ 189,902,001$ 182,028,781$ 183,106,809$ Plan Fiduciary Net Position
Contributions - employer 4,816,496$ 4,870,870$ 4,265,372$ 3,611,390$ 3,380,630$ Contributions - employee 668,922 1,085,857 1,166,670 1,183,942 1,342,231 Net investment income 11,191,173 13,839,363 673,474 2,937,028 19,584,973 Benefit payments (11,174,227) (10,595,503) (9,694,252) (9,101,311) (8,365,575) Net Plan to Plan Resource Movement - - 301 - - Administrative/Other Expense (606,455) (184,789) (78,513) (144,969) - Net change in plan fiduciary net position 4,895,909 9,015,798 (3,666,948) (1,513,920) 15,942,259 Plan fiduciary net position - beginning 134,174,733 125,158,935 128,825,883 130,339,803 114,397,544 Plan fiduciary net position - ending (b)139,070,642$ 134,174,733$ 125,158,935$ 128,825,883$ 130,339,803$ Net pension liability - ending (a) - (b)73,062,946$ 71,924,087$ 64,743,066$ 53,202,898$ 52,767,006$ Plan fiduciary net position as a percentage
of the total pension liability 65.56% 65.10% 65.91% 70.77% 71.18% Covered payroll 7,851,917$ 11,286,708$ 10,755,149$ 11,241,479$ 11,699,414$ Net pension liability as percentage of
covered payroll 930.51% 637.25% 601.97% 473.27% 451.02% Measurement Period
72 Page 177 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022

* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available; in addition, for the 2019 measurement period, CalPERS moved the City’s Safety plan from an agent-multiple employer plan to a cost-sharing plan. Therefore, not all 10 years of information is presented.

Notes to the Schedule of the City’s Proportionate Share of the Net Pension Liability

Benefit Changes: None

Changes in Assumptions: In 2017, the accounting discount rate changed from 7.65% to 7.15%.

Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Covered Pension Liability a % of the Total Measurement Date Liability Pension Liability Payroll as a % of Payr oll Pension Liability 2021 1.04750% 56,651,603$ 7,767,343$ 729.36% 75.36% 2020 0.72025% 78,366,541 7,473,800 1048.55% 64.98% 2019 0.71858% 73,633,282 6,845,982 1075.57% 66.40% Schedule of the Cit y's Proportionate Share of the Net Pension Liabilit y Last 10 Years*
73 Page 178 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022

Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan – Miscellaneous Plan

Schedule of Contributions – Last 10 Years*
Cost-Sharing Plan – Safety Plan

Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 4,482,400$ (19,737,848)$ (15,255,448)$ 8,437,768$ 53.12% 2021 4,088,720 (4,088,720) - 8,066,572 50.69% 2020 3,734,440 (4,734,440) (1,000,000) 8,343,351 44.76% 2019 3,335,368 (3,335,368) - 8,524,725 39.13% 2018 2,999,453 (2,999,453) - 8,430,545 35.58% 2017 2,352,967 (2,352,967) - 9,034,865 26.04% 2016 2,239,207 (2,239,207) - 9,183,479 24.38% 2015 1,977,651 (1,977,651) - 10,003,615 19.77% 2014 1,880,762 (1,880,762) - 11,030,619 17.05% Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 7,227,924$ (37,727,924)$ (30,500,000)$ 7,777,162$ 92.94% 2021 7,041,790 (7,041,790) - 7,767,343 90.66% 2020 6,210,535 (6,210,535) - 7,473,800 83.10% 2019 5,322,942 (5,322,942) - 6,845,982 77.75% 2018 4,816,496 (4,816,496) - 7,851,917 61.34% 2017 4,870,870 (4,870,870) - 11,286,708 43.16% 2016 4,265,372 (4,265,372) - 10,755,149 39.66% 2015 3,611,390 (3,611,390) - 11,241,479 32.13% 2014 3,380,630 (3,380,630) - 11,699,414 28.90% 74 Page 179 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022

Schedule of Contributions - Continued

Notes to Schedule of Plan Contributions:

Valuation Date: June 30, 2020
Actuarial cost method: Entry age normal
Amortization method: Level percentage of payroll, closed Assets valuation method: Direct rate smoothing
Inflation: 2.50%
Salary Increases: Varies by entry age and service
Payroll Growth: 2.85%
Investment rate of return: 7.15% net of pension investment and administrative expenses, including inflation Retirement Age: All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015. Including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov .

Mortality: The mortality table used was developed using CalPERS’ specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries’ Scale 2016. 75 Page 180 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022
2021 2020 2019
Total OPEB Liability
Service cost 226,606$ 166,888$ 390,159$ Interest on total OPEB liability 326,794 448,931 573,095 Changes in assumptions (171,113) 2,001,839 784,435 Changes in benefits - - - Differences between expected and actual experience 841,486 - (1,821,317) Benefit payments, including refunds (772,138) (853,875) (591,246) Net change in total OPEB liability 451,635 1,763,783 (664,874) Total OPEB liability - beginning 14,813,883 13,050,100 13,714,974 Total OPEB liability - ending (a)15,265,518$ 14,813,883$ 13,050,100$ Plan Fiduciary Net Position
Contributions - employer 997,138$ 853,875$ 591,246$ Net Investment Income 231,516 51,511 69,490 Benefit payments (772,138) (853,875) (591,246) Administrative Expense (6,956) (5,696) (2,660) Net change in plan fiduciary net position 449,560 45,815 66,830 Plan fiduciary net position - beginning 1,165,050 1,119,235 1,052,405 Plan fiduciary net position - ending (b)1,614,610$ 1,165,050$ 1,119,235$ Net OPEB liability - ending (a) - (b)13,650,908$ 13,648,833$ 11,930,865$ Plan fiduciary net position as a percentage
of the total OPEB liability 10.6%7.9%8.6%
Covered - employee payroll 19,086,465 16,470,676 15,729,836 Net OPEB liability as a percentage of
covered-employee payroll 71.52%82.87%75.85%
Notes to Schedule of Changes
The discount rate from the 2019 Actuarial Valuation to the 2021 Actuarial Valuation changed from 5.91% of 5.64%
*OPEB schedules are intended to show information for ten years, additional years' information will be displayed as it becomes available.

Measurement Period
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
Last 10 Years*
76 Page 181 of 281

City of Upland
Required Supplementary Information
Year Ended June 30, 2022
2018 2017
557,634$ 538,257$
562,756 547,618
(1,049,491) -
(1,080,543) -
- -
(699,692) (669,865)
(1,709,336) 416,010
15,424,310 15,008,300
13,714,974$ 15,424,310$
699,692$ 1,669,865$
54,034 966
(699,692) (669,865)
(2,595) -
51,439 1,000,966
1,000,966 -
1,052,405$ 1,000,966$
12,662,569$ 14,423,344$

7.7%6.5%
16,282,462 20,253,855

77.77%71.21%
Measurement Period
77 Page 182 of 281

SUPPLEMENTARY INFORMATION

78 Page 183 of 281

NON-MAJOR GOVERNMENTAL FUNDS
79 Page 184 of 281

City of Upland
Non-Major Governmental Funds
Year Ended June 30, 2022

SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Gas Tax Fund
To account for State gasoline taxes received by the City. These funds may be used for street maintenance, right-of-way acquisition, and street construction. Gas Tax funds are used for capital projects established within the Gas Tax Fund.

HOME Program Fund
This fund accounts for housing rehab loans/grants from the California Department of Housing and Community Development. These loans/grants are provided for single-family rehabilitation, neighborhood restoration, first- time homebuyers, tenant based assistance and rental rehabilitation programs.

CalHOME Program Fund
This fund accounts for housing rehab loans/grants from the CalHome program. These loans/grants are provided for single-family rehabilitation, neighborhood restoration, first-time homebuyers, tenant based assistance and rental rehabilitation programs.

Community Development Block Grant Fund
To account for receipt and disbursement of the Upland Community Development Block Grant Program of the United States Department of Housing and Urban Development.

Measure I Fund
To account for revenues which were approved by the San Bernardino County voters in a General Election authorizing a one-half percent (1/2%) sales tax on all retail transactions within the incorporated and unincorporated territory of the County of San Bernardino through 2040, proceeds of which are to be solely for county-wide transportation improvements and traffic management programs.

Air Quality Management District Fund
To account for the receipt and disbursement of funds generated by Assembly Bill 2766 which sets forth requirements for reduction of air pollution from mobile sources as promulgated by the South Coast Air Quality Management District.

Parking Business Improvement Area Fund
To account for revenues received from an additional levy of the general business license tax imposed on businesses in the downtown area to be used for the acquisition, construction and maintenance of parking facilities and improvements for the benefit of the downtown area.

SB509 Public Safety Augmentation Fund
To account for revenue and expenditures related to the half-cent sales tax enacted by Proposition 172 and SB509. Funds are used to cover operational expenditures of the Police Department.

Asset Forfeiture Fund
To account for revenue received for the City’s various deposits for asset forfeiture restricted for public safety.

Public Safety Grants Fund
To account for revenue and expenditures related to grants restricted to be used for public safety.

Other Grants Fund
To account for revenue and expenditures related to grants restricted for specific purposes.

80 Page 185 of 281

City of Upland
Non-Major Governmental Funds
Year Ended June 30, 2022

SPECIAL REVENUE FUNDS - Continued

CARES Act Fund
To account for revenue and expenditures related to The Coronavirus Aid, Relief, and Economic Security Act.

CAPITAL PROJECT FUNDS

Capital Projects Funds are used to account for the purchase or construction of major capital facilities which are not financed by Proprietary Funds or Trust Funds. Capital Projects Funds are ordinarily not used to account for the acquisition of furniture, fixtures, machinery, equipment and other relatively minor or short-lived capital assets.

Park Acquisition and Development Fund
To account for revenue from the Dwelling Unit Construction Tax which must be used for the acquisition and development of park facilities within the City.

General Capital Development Fund
To account revenues received for fees from various building permits to be used for certain general government and police facilities.

Storm Drain Development Fund
To account for the revenues received from the fees on various building permits to be used for the creation of a storm drain system in cooperation with other governmental entities in the area.

Street and Traffic Safety Development Fund
To account for the revenues received from fees on various building permits to be used for improved street and traffic facilities.

General Capital Fund
To account for projects of a general nature which are supported by available General Funds and Special Revenue Funds.

Street and Alley Repair Fund
To account for the revenues received from fees on various permits to be used for improved street and alley repairs.

Energy Efficiency Improvements
To account for the proceeds from leases and bonds issued that are restricted for the acquisition, construction, and installation of energy efficient improvements.
81 Page 186 of 281

Community
Gas HOME CalHOME Development
Tax Program Program Block Grant
ASSETS
Cash and Investments 9,053,039$ 2,000,730$ 720,264$ -$ Cash with Fiscal Agent - - - - Receivables:

Accounts - - - - Notes, net - 2,795,167 1,534,581 - Accrued Interest on Notes - 873,713 335,324 - Due from Other Governments 422,866 - - 334,682 Total Assets 9,475,905$ 5,669,610$ 2,590,169$ 334,682$

LIABILITIES
Accounts Payable 488,336$ 10,378$ -$ 72,344$ Accrued Salaries and Benefits 2,745 - - 648 Due to Other Funds - - - 196,494 Deposits Payable - - - - Retentions Payable 41,337 - - 6,418 Unearned Revenue - - 4,469 - Total Liabilities 532,418 10,378 4,469 275,904

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 879,852 336,323 - Total Deferred Inflows of Resources - 879,852 336,323 -

FUND BALANCE (DEFICITS)
Restricted 8,943,487 4,779,380 2,249,377 58,778 Assigned - - - - Unassigned - - - - Total Fund Balances (Deficits) 8,943,487 4,779,380 2,249,377 58,778 Total Liabilities, Deferred Inflows
9,475,905$ 5,669,610$ 2,590,169$ 334,682$ and Fund Balances (Deficits) June 30, 2022
Special Revenue
City of Upland
Combining Balance Sheet
Non-major Governmental Funds
82 Page 187 of 281

Air Quality Parking and SB 509 Public
Management Business Public Safety Asset Safety Other
Measure I District Improvement Augmentation Forfeiture Grants Grants 6,306,346$ 233,299$ 193,171$ -$ 776,403$ 1,410,742$ 982,491$ - - - - - - - - - 17,351 - - - - - - - - - - - - - - - - - - 681,390 25,823 - 116,563 - 85,736 75,301 6,987,736$ 259,122$ 210,522$ 116,563$ 776,403$ 1,496,478$ 1,057,792$ 5,227$ 34$ 44,311$ -$ -$ 23,615$ 7,050$ 1,195 65 - 19,400 - 402 1,802 - - - 96,519 - - - - - - - 31,020 - - 7,525 - - - - - - - - - - - 37,334 1,035,766 13,947 99 44,311 115,919 31,020 61,351 1,044,618 - 25,823 - - - 62,120 75,301 - 25,823 - - - 62,120 75,301 6,973,789 233,200 166,211 644 745,383 1,373,007 - - - - - - - - - - - - - - (62,127) 6,973,789 233,200 166,211 644 745,383 1,373,007 (62,127) 6,987,736$ 259,122$ 210,522$ 116,563$ 776,403$ 1,496,478$ 1,057,792$ Continued
Special Revenue
83 Page 188 of 281

Special
Revenue
Park General Storm
CARES Acquistion & Capital Drain
ACT Development Development Development
ASSETS
Cash and Investments -$ 10,062,496$ 2,187,612$ 4,923,898$ Cash with Fiscal Agent - - - - Receivables:

Accounts - - - 28,958 Notes, net - - - - Accrued Interest on Notes - - - - Due from Other Governments 47,835 - - - Total Assets 47,835$ 10,062,496$ 2,187,612$ 4,952,856$

LIABILITIES
Accounts Payable -$ 2,560$ -$ -$ Accrued Salaries and Benefits - 172 - - Due to Other Funds 18,964 - - - Deposits Payable - - - - Retentions Payable - - - - Unearned Revenue - - - - Total Liabilities 18,964 2,732 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 47,835 - - - Total Deferred Inflows of Resources 47,835 - - -

FUND BALANCE (DEFICITS)
Restricted - 10,059,764 1,996,107 4,952,856 Assigned - - 191,505 - Unassigned (18,964) - - - Total Fund Balances (Deficits)(18,964) 10,059,764 2,187,612 4,952,856 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits)47,835$ 10,062,496$ 2,187,612$ 4,952,856$ June 30, 2022
Capital Projects
City of Upland
Combining Balance Sheet
Non-major Governmental Funds - Continued
84 Page 189 of 281

Street and General Street & Energy
Traffic Safety Capital Alley Efficiency
Development Projects Repair Improvements Total
1,320,101$ 1,663,893$ 681,559$ 5,670$ 42,521,714$ - - - - - - - 14,088 - 60,397 - - - - 4,329,748 - - - - 1,209,037 - - - - 1,790,196 1,320,101$ 1,663,893$ 695,647$ 5,670$ 49,911,092$ -$ 8,802$ -$ -$ 662,657$ 16,437 - 184 - 43,050 - - - - 311,977 - - - - 31,020 - 7,317 8,355 - 70,952 - - - - 1,077,569 16,437 16,119 8,539 - 2,197,225 - - - - 1,427,254 - - - - 1,427,254 1,303,664 1,647,774 687,108 5,670 46,176,199 - - - - 191,505 - - - - (81,091) 1,303,664 1,647,774 687,108 5,670 46,286,613 1,320,101$ 1,663,893$ 695,647$ 5,670$ 49,911,092$ Capital Projects
85 Page 190 of 281

Community
Gas HOME CalHOME Development
Tax Program Program Block Grant

REVENUES
Taxes -$ -$ -$ -$ Licenses and Permits - - - - Fines and Forfeitures - - - - Investment Income (369,767) 10,078 3,669 - Rental Income - - - - Intergovernmental 3,448,042 - - 1,463,112 Other Revenue - 146,808 45,035 - Total Revenues 3,078,275 156,886 48,704 1,463,112

EXPENDITURES
Current:

General Government - - - - Public Safety - - - - Engineering and Public Works 2,528,102 - - - Development Services - - - 956,173 Community Services - - - - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 2,528,102 - - 956,173 Excess (Deficiency) of Revenues
Over Expenditures 550,173 156,886 48,704 506,939

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses)- - - - Net Change in Fund Balances 550,173 156,886 48,704 506,939 Fund Balances - Beginning 8,393,314 4,622,494 2,200,673 (448,161) Fund Balances - Ending 8,943,487$ 4,779,380$ 2,249,377$ 58,778$ City of Upland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2022
Special Revenue
86 Page 191 of 281

Air Quality Parking and SB 509 Public
Management Business Public Safety Asset Safety Other
Measure I District Improvement Augmentation Forfeiture Grants Grants -$ -$ 66,874$ 1,374,496$ -$ -$ -$ - - - - - - - - - - - - - - (260,948) 1,153 1,137 823 4,454 8,122 922 - - - - - - - 2,053,676 75,343 - - - 408,263 254,324 - - - - - - 1,000 1,792,728 76,496 68,011 1,375,319 4,454 416,385 256,246 - - - - - - - - - - 1,374,957 6,500 201,934 - 1,389,134 28,537 94,944 - - - - - - - - - - 150,463 - - - - - - 121,857 - - - - - - - - - - - - - - 1,389,134 28,537 94,944 1,374,957 6,500 201,934 272,320 403,594 47,959 (26,933) 362 (2,046) 214,451 (16,074) - - - - - - - - - - - - - - - - - - - - - 403,594 47,959 (26,933) 362 (2,046) 214,451 (16,074) 6,570,195 185,241 193,144 282 747,429 1,158,556 (46,053) 6,973,789$ 233,200$ 166,211$ 644$ 745,383$ 1,373,007$ (62,127)$ Continued
Special Revenue
87 Page 192 of 281

Special
Revenue
Park General Storm
CARES Acquistion & Capital Drain
ACT Development Development Development

REVENUES
Taxes -$ -$ -$ -$ Licenses and Permits - 515,026 112,367 201,427 Fines and Forfeitures - - - - Investment Income - (408,586) (89,229) (200,611) Rental Income - - - 77,606 Intergovernmental - - - - Other Revenue - - - - Total Revenues - 106,440 23,138 78,422

EXPENDITURES
Current:

General Government 34,021 - - - Public Safety - - - - Engineering and Public Works - 17,908 4,383 7,268 Development Services - - - - Community Services 12,378 - - - Debt Service:

Principal - - - - Interest and Fiscal Charges - - - - Total Expenditures 46,399 17,908 4,383 7,268 Excess (Deficiency) of Revenues
Over Expenditures (46,399) 88,532 18,755 71,154

OTHER FINANCING SOURCES (USES)
Transfers In - - - - Transfers Out - - - - Total Other Financing Sources (Uses)- - - - Net Change in Fund Balances (46,399) 88,532 18,755 71,154 Fund Balances - Beginning 27,435 9,971,232 2,168,857 4,881,702 Fund Balances - Ending (18,964)$ 10,059,764$ 2,187,612$ 4,952,856$ City of Upland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2022
Capital Projects
88 Page 193 of 281

Street and General Street & Energy
Traffic Safety Capital Alley Efficiency
Development Projects Repair Improvements Total
-$ -$ -$ -$ 1,441,370$ 172,730 22,000 219,268 - 1,242,818 - - - - - (67,426) - (30,647) - (1,396,856) - - - - 77,606 - - - - 7,702,760 - - - 197,622 390,465 105,304 22,000 188,621 197,622 9,458,163 - - - - 34,021 - - - - 1,583,391 383,699 151,127 202,223 1,900 4,809,225 - - - - 1,106,636 - - - - 134,235 - - - - - - - - - - 383,699 151,127 202,223 1,900 7,667,508 (278,395) (129,127) (13,602) 195,722 1,790,655 - 290,000 - - 290,000 - - - - - - 290,000 - - 290,000 (278,395) 160,873 (13,602) 195,722 2,080,655 1,582,059 1,486,901 700,710 (190,052) 44,205,958 1,303,664$ 1,647,774$ 687,108$ 5,670$ 46,286,613$ Capital Projects
89 Page 194 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 50,000 (369,767) (419,767)
Intergovernmental 3,536,420 3,448,042 (88,378)
Other Revenue - - - Total Revenues 3,586,420 3,078,275 (508,145)

EXPENDITURES
Current:

Engineering and Public Works 10,507,835 2,528,102 7,979,733 Total Expenditures 10,507,835 2,528,102 7,979,733
Excess (Deficiency) of Revenues
over Expenditures (6,921,415) 550,173 7,471,588

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (6,921,415) 550,173 7,471,588 Fund Balance, Beginning 8,393,314 8,393,314 -
Fund Balance, Ending 1,471,899$ 8,943,487$ 7,471,588$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2022
90 Page 195 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 800 10,078 9,278
Intergovernmental - - - Other Revenue 75,000 146,808 71,808
Total Revenues 75,800 156,886 81,086

EXPENDITURES
Current:

Development Services 760,000 - 760,000 Total Expenditures 760,000 - 760,000
Excess (Deficiency) of Revenues
over Expenditures (684,200) 156,886 841,086

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (684,200) 156,886 841,086
Fund Balance, Beginning 4,622,494 4,622,494 -
Fund Balance, Ending 3,938,294$ 4,779,380$ 841,086$
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - HOME Program Special Revenue Fund
Year Ended June 30, 2022
91 Page 196 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 200 3,669 3,469
Intergovernmental - - - Other Revenue 30,000 45,035 15,035
Total Revenues 30,200 48,704 18,504

EXPENDITURES
Current:

Development Services 295,000 - 295,000 Total Expenditures 295,000 - 295,000
Excess (Deficiency) of Revenues
over Expenditures (264,800) 48,704 313,504

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (264,800) 48,704 313,504
Fund Balance, Beginning 2,200,673 2,200,673 -
Fund Balance, Ending 1,935,873$ 2,249,377$ 313,504$
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CalHOME Program Special Revenue Fund Year Ended June 30, 2022
92 Page 197 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Intergovernmental 1,965,194$ 1,463,112$ (502,082)$
Other Revenue - - - Total Revenues 1,965,194 1,463,112 (502,082)

EXPENDITURES
Current:

Development Services 1,975,195 956,173 1,019,022 Total Expenditures 1,975,195 956,173 1,019,022
Excess (Deficiency) of Revenues
over Expenditures (10,001) 506,939 516,940

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (10,001) 506,939 516,940 Fund Balance, Beginning (448,161) (448,161) -
Fund Balance, Ending (458,162)$ 58,778$ 516,940$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Special Revenue Fund
Year Ended June 30, 2022
93 Page 198 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 45,000 (260,948) (305,948) Intergovernmental 1,364,270 2,053,676 689,406
Other Revenue - - - Total Revenues 1,409,270 1,792,728 383,458

EXPENDITURES
Current:

Engineering and Public Works 6,660,864 1,389,134 5,271,730 Total Expenditures 6,660,864 1,389,134 5,271,730
Excess (Deficiency) of Revenues
over Expenditures (5,251,594) 403,594 5,655,188

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (5,251,594) 403,594 5,655,188 Fund Balance, Beginning 6,570,195 6,570,195 -
Fund Balance, Ending 1,318,601$ 6,973,789$ 5,655,188$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure I Special Revenue Fund
Year Ended June 30, 2022
94 Page 199 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 1,153 1,153 Intergovernmental 99,400 75,343 (24,057) Other Revenue - - - Total Revenues 99,400 76,496 (22,904)

EXPENDITURES
Current:

Engineering and Public Works 194,570 28,537 166,033 Total Expenditures 194,570 28,537 166,033
Excess (Deficiency) of Revenues
over Expenditures (95,170) 47,959 143,129

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (95,170) 47,959 143,129 Fund Balance, Beginning 185,241 185,241 -
Fund Balance, Ending 90,071$ 233,200$ 143,129$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Air Quality Management District Special Revenue Fund Year Ended June 30, 2022
95 Page 200 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 58,500$ 66,874$ 8,374$
Investment Income 500 1,137 637 Total Revenues 59,000 68,011 9,011

EXPENDITURES
Current:

Engineering and Public Works 213,555 94,944 118,611 Total Expenditures 213,555 94,944 118,611
Excess (Deficiency) of Revenues
over Expenditures (154,555) (26,933) 127,622

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (154,555) (26,933) 127,622 Fund Balance, Beginning 193,144 193,144 -
Fund Balance, Ending 38,589$ 166,211$ 127,622$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Parking & Business Improvement Special Revenue Fund Year Ended June 30, 2022
96 Page 201 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,339,880$ 1,374,496$ 34,616$
Investment Income 823 823 Intergovernmental - - - Other Revenue - - - Total Revenues 1,339,880 1,375,319 35,439

EXPENDITURES
Current:

Public Safety 1,339,880 1,374,957 (35,077)
Total Expenditures 1,339,880 1,374,957 (35,077)
Excess (Deficiency) of Revenues
over Expenditures - 362 362

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances - 362 362 Fund Balance, Beginning 282 282 - Fund Balance, Ending 282$ 644$ 362$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - SB 509 Public Safety Augmentation Special Revenue Fund Year Ended June 30, 2022
97 Page 202 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income -$ 4,454$ 4,454$ Fines and Forfeitures - - - Intergovernmental - - - Total Revenues - 4,454 4,454

EXPENDITURES
Current:

Public Safety 6,500 (6,500) Total Expenditures - 6,500 (6,500) Excess (Deficiency) of Revenues
over Expenditures - (2,046) (2,046)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances - (2,046) (2,046) Fund Balance, Beginning 747,429 747,429 - Fund Balance, Ending 747,429$ 745,383$ (2,046)$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Asset Forfeiture Special Revenue Fund Year Ended June 30, 2022
98 Page 203 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income 900 8,122 7,222 Intergovernmental 603,280 408,263 (195,017) Other Revenue - - - Total Revenues 604,180 416,385 (187,795)

EXPENDITURES
Current:

Public Safety 1,643,730 201,934 1,441,796
Total Expenditures 1,643,730 201,934 1,441,796
Excess (Deficiency) of Revenues
over Expenditures (1,039,550) 214,451 1,254,001

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (1,039,550) 214,451 1,254,001 Fund Balance, Beginning 1,158,556 1,158,556 -
Fund Balance, Ending 119,006$ 1,373,007$ 1,254,001$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Public Safety Grants Special Revenue Fund Year Ended June 30, 2022
99 Page 204 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes -$ -$ -$
Investment Income - 922 922 Intergovernmental 1,202,692 254,324 (948,368) Other Revenue 266,980 1,000 (265,980) Total Revenues 1,469,672 256,246 (1,213,426)

EXPENDITURES
Current:

Development Services 1,220,470 150,463 1,070,007 Community Services 585,000 121,857 463,143 Total Expenditures 1,805,470 272,320 1,533,150
Excess (Deficiency) of Revenues
over Expenditures (335,798) (16,074) 319,724

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (335,798) (16,074) 319,724 Fund Balance, Beginning (46,053) (46,053) - Fund Balance, Ending (381,851)$ (62,127)$ 319,724$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Other Grants Special Revenue Fund
Year Ended June 30, 2022
100 Page 205 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income -$ -$ -$ Intergovernmental - - - Total Revenues - - -

EXPENDITURES
Current:

General Government 34,022 34,021 1
Public Safety - - - Engineering and Public Works - - - Development Services - - - Community Services - 12,378 (12,378) Total Expenditures 34,022 46,399 (12,377)
Excess (Deficiency) of Revenues
over Expenditures (34,022) (46,399) (12,377)

OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (34,022) (46,399) (12,377) Fund Balance, Beginning 27,435 27,435
Fund Balance, Ending (6,587)$ (18,964)$ (12,377)$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CARES Act Special Revenue Fund
Year Ended June 30, 2022
101 Page 206 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits 1,192,920$ 515,026$ (677,894)$ Investment Income 50,000 (408,586) (458,586) Intergovernmental - - - Other Revenue - - - Total Revenues 1,242,920 106,440 (1,136,480)

EXPENDITURES
Current:

Engineering and Public Works 650,189 17,908 632,281 Community Services - - - Total Expenditures 650,189 17,908 632,281
Excess (Deficiency) of Revenues
over Expenditures 592,731 88,532 (504,199)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances 592,731 88,532 (504,199) Fund Balance, Beginning 9,971,232 9,971,232 -
Fund Balance, Ending 10,563,963$10,059,764$(504,199)$
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Park Acquisition & Development Capital Projects Fund Year Ended June 30, 2022
102 Page 207 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits 267,000$ 112,367$ (154,633)$ Investment Income 12,000 (89,229) (101,229) Intergovernmental - - - Other Revenue - - - Total Revenues 279,000 23,138 (255,862)

EXPENDITURES
Current:

Engineering and Public Works 592,761 4,383 588,378 Community Services - - - Total Expenditures 592,761 4,383 588,378
Excess (Deficiency) of Revenues
over Expenditures (313,761) 18,755 332,516

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (313,761) 18,755 332,516 Fund Balance, Beginning 2,168,857 2,168,857 -
Fund Balance, Ending 1,855,096$ 2,187,612$ 332,516$
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Capital Development Capital Projects Fund Year Ended June 30, 2022
103 Page 208 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits 310,500$ 201,427$ (109,073)$ Investment Income 26,000 (200,611) (226,611) Rental Income 74,210 77,606 3,396
Total Revenues 410,710 78,422 (332,288)

EXPENDITURES
Current:

Engineering and Public Works 3,600,890 7,268 3,593,622 Community Services - - - Total Expenditures 3,600,890 7,268 3,593,622 Excess (Deficiency) of Revenues
over Expenditures (3,190,180) 71,154 3,261,334

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (3,190,180) 71,154 3,261,334 Fund Balance, Beginning 4,881,702 4,881,702 -
Fund Balance, Ending 1,691,522$ 4,952,856$ 3,261,334$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Storm Drain Development Capital Projects Fund Year Ended June 30, 2022
104 Page 209 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits 185,000$ 172,730$ (12,270)$ Investment Income 16,000 (67,426) (83,426) Intergovernmental - - - Other Revenue - - - Total Revenues 201,000 105,304 (95,696)

EXPENDITURES
Current:

Engineering and Public Works 1,428,507 383,699 1,044,808 Community Services - - - Total Expenditures 1,428,507 383,699 1,044,808
Excess (Deficiency) of Revenues
over Expenditures (1,227,507) (278,395) 949,112

OTHER FINANCING SOURCES (USES)
Transfers In - - - Transfers Out - - - Issuance of Debt - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (1,227,507) (278,395) 949,112 Fund Balance, Beginning 1,582,059 1,582,059 - Fund Balance, Ending 354,552$ 1,303,664$ 949,112$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street & Traffic Safety Development Capital Projects Fund Year Ended June 30, 2022
105 Page 210 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits -$ 22,000$ 22,000$ Investment Income - - - Intergovernmental - - - Other Revenue - - - Total Revenues - 22,000 22,000

EXPENDITURES
Current:

Engineering and Public Works 1,423,353 151,127 1,272,226 Community Services - - - Total Expenditures 1,423,353 151,127 1,272,226
Excess (Deficiency) of Revenues
over Expenditures (1,423,353) (129,127) 1,294,226

OTHER FINANCING SOURCES (USES)
Transfers In 290,000 290,000 -
Transfers Out - - - Issuance of Debt - - - Total Other Financing
Sources (Uses) 290,000 290,000 -
Net Change in Fund Balances (1,133,353) 160,873 1,294,226 Fund Balance, Beginning 1,486,901 1,486,901 - Fund Balance, Ending 353,548$ 1,647,774$ 1,294,226$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Capital Projects Fund
Year Ended June 30, 2022
106 Page 211 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits 220,680$ 219,268$ (1,412)$ Investment Income - (30,647) (30,647) Intergovernmental - - - Other Revenue - - - Total Revenues 220,680 188,621 (32,059)

EXPENDITURES
Current:

Engineering and Public Works 572,125 202,223 369,902 Community Services - - - Total Expenditures 572,125 202,223 369,902
Excess (Deficiency) of Revenues
over Expenditures (351,445) (13,602) 337,843

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Issuance of Debt - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances (351,445) (13,602) 337,843 Fund Balance, Beginning 700,710 700,710 - Fund Balance, Ending 349,265$ 687,108$ 337,843$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Street & Alley Repair Capital Projects Fund Year Ended June 30, 2022
107 Page 212 of 281

Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Licenses and Permits -$ -$ -$ Investment Income - - - Intergovernmental - - - Other Revenue - 197,622 197,622 Total Revenues - 197,622 197,622

EXPENDITURES
Current:

Engineering and Public Works 1,900 (1,900) Community Services - - - Total Expenditures - 1,900 (1,900) Excess (Deficiency) of Revenues
over Expenditures - 195,722 195,722

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - - Issuance of Debt - - - Total Other Financing
Sources (Uses) - - - Net Change in Fund Balances - 195,722 195,722 Fund Balance, Beginning (190,052) (190,052) - Fund Balance, Ending (190,052)$ 5,670$ 195,722$ City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Energy Efficiency Improvements Capital Projects Fund Year Ended June 30, 2022
108 Page 213 of 281

INTERNAL SERVICE FUNDS
109 Page 214 of 281

City of Upland
Internal Service Funds
Year Ended June 30, 2022

INTERNAL SERVICE FUNDS

The internal service funds are used to account for goods and services provided by one City department to other City departments on a cost reimbursement basis.

Self-funded Insurance Fund
To account for the accumulation and allocation of costs associated with the City’s Workers’ Compensation and General Liability Self-Insurance Program.

Vehicle Replacement Fund
To account for the accumulation and allocation of costs associated with the acquisition, repair, and maintenance of City vehicles.

Information Systems Fund
To account for the operations of the City’s information systems division, including maintenance of copiers, voice systems, and the City’s computer network and hardware infrastructure.

Building Maintenance Fund
To provide for the operation of the City’s building maintenance and operations division which maintains the City’s facilities.

110 Page 215 of 281

City of Upland
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals
ASSETS
Current Assets:

Cash and Investments 2,956,418$ 1,485,154$ 3,139,563$ 1,351,042$ 8,932,177$ Accounts Receivable - Net 235 - 36,855 - 37,090 Inventory and Prepaid Items 192,511 85,217 27,241 - 304,969 Total Current Assets 3,149,164 1,570,371 3,203,659 1,351,042 9,274,236 Noncurrent Assets:

Capital Assets, Not Being Depreciated
Construction In Progress - - - - - Capital Assets, Depreciable, Net - 444,841 708,207 - 1,153,048 Total Noncurrent Assets - 444,841 708,207 - 1,153,048 Total Assets 3,149,164 2,015,212 3,911,866 1,351,042 10,427,284

DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 29,718 31,054 49,419 53,092 163,283
Pension Related Items 71,155 91,199 123,269 144,315 429,938 Total Deferred Outflows of Resources 100,873 122,253 172,688 197,407 593,221

LIABILITIES
Current Liabilities:

Accounts Payable 38,580 39,971 39,280 44,794 162,625 Accrued Salaries and Wages 4,285 3,181 6,056 6,369 19,891 Current Portion of Long-Term Liabilities:

Claims and Judgments Payable 2,856,713 - - - 2,856,713 Compensated Absences 8,742 7,300 21,566 20,640 58,248 Total Current Liabilities 2,908,320 50,452 66,902 71,803 3,097,477 Noncurrent Liabilities:

Claims and Judgments Payable 6,975,016 - - - 6,975,016 Net OPEB Liability 121,493 126,953 202,033 217,049 667,528 Net Pension Liability 405,145 519,270 701,870 821,702 2,447,987 Compensated Absences 3,833 4,306 44,783 22,671 75,593 Total Noncurrent Liabilities 7,505,487 650,529 948,686 1,061,422 10,166,124 Total Liabilities 10,413,807 700,981 1,015,588 1,133,225 13,263,601

DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 9,636 10,069 16,025 17,216 52,946 Pension Related Items 151,260 193,868 262,042 306,781 913,951 Total Deferred Inflows of Resources 160,896 203,937 278,067 323,997 966,897

NET POSITION
Net Investment in Capital Assets - 444,841 708,207 - 1,153,048 Unrestricted (7,324,666) 787,706 2,082,692 91,227 (4,363,041) Total Net Position (7,324,666)$ 1,232,547$ 2,790,899$ 91,227$ (3,209,993)$ 111 Page 216 of 281

City of Upland
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2022
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals

OPERATING REVENUES
Charges for Services 4,818,350$ 1,376,390$ 2,372,860$ 1,127,220$ 9,694,820$ Other Operating Revenues 3,425 - 148,442 - 151,867 Total Operating Revenues 4,821,775 1,376,390 2,521,302 1,127,220 9,846,687

OPERATING EXPENSES
Maintenance and Operations 302,313 895,352 2,062,688 1,217,024 4,477,377 Contractual Services 358,742 - - - 358,742 Claims Expense 3,798,271 - - - 3,798,271 Depreciation - 133,538 212,421 - 345,959 Total Operating Expenses 4,459,326 1,028,890 2,275,109 1,217,024 8,980,349 Operating Income (Loss)362,449 347,500 246,193 (89,804) 866,338

NONOPERATING REVENUES (EXPENSES)
Interest Income 10,369 5,021 14,712 7,761 37,863 Gain/(Loss) on Disposal of Capital Assets - 5,900 - - 5,900 Total Nonoperating Revenues (Expenses) 10,369 10,921 14,712 7,761 43,763 Income (Loss) Before Operating Transfers 372,818 358,421 260,905 (82,043) 910,101 Capital Contributions - - - - - Transfers In 550,000 578,150 740,000 - 1,868,150 Transfers Out - - - - - Change in Net Position 922,818 936,571 1,000,905 (82,043) 2,778,251 Net Position - Beginning of Year (8,247,484) 295,976 1,789,994 173,270 (5,988,244) Net Position - End of Year (7,324,666)$ 1,232,547$ 2,790,899$ 91,227$ (3,209,993)$ 112 Page 217 of 281

City of Upland
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2022
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments 4,821,540$ 1,376,390$ 2,520,276$ 1,127,220$ 9,845,426$ Cash Paid to Suppliers for Goods and Services (4,097,526) (627,220) (1,622,439) (581,496) (6,928,681) Cash Paid to Employees for Services (380,550) (326,529) (479,331) (559,124) (1,745,534) Net Cash from Operating Activities 343,464 422,641 418,506 (13,400) 1,171,211

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash Paid (to) from Other Funds 550,000 578,150 740,000 - 1,868,150 Advances Paid (to) from Other Funds - - - - - Net Cash from Noncapital and
Related Financing Activities 550,000 578,150 740,000 - 1,868,150

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Cash Received from Sale of Capital Assets - 5,900 - - 5,900 Acquisition and Construction of Capital Assets - - (305,196) - (305,196) Net Cash from Capital and
Related Financing Activities - 5,900 (305,196) - (299,296)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 10,369 5,022 14,712 7,761 37,864 Net Cash from Investing Activities 10,369 5,022 14,712 7,761 37,864 Net Increase (Decrease) in Cash and Cash Equivalents 903,833 1,011,713 868,022 (5,639) 2,777,929 Cash and Cash Equivalents, Beginning of the Year 2,052,585 473,441 2,271,541 1,356,681 6,154,248 Cash and Cash Equivalents, End of the Year 2,956,418$ 1,485,154$ 3,139,563$ 1,351,042$ 8,932,177$ Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:

Operating Income (Loss)362,449$ 347,500$ 246,193$ (89,804)$ 866,338$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation - 133,538 212,421 - 345,959 Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (235) - (1,026) - (1,261) (Increase) Decrease in Due from Other Governments - - - - - (Increase) Decrease in Inventory and Prepaid Items (18,835) (6,227) (15,723) - (40,785) (Increase) Decrease in Deferred Outflows - Pensions 11,257 (5,291) (4,896) (39,927) (38,857) (Increase) Decrease in Deferred Outflows - OPEB (15,547) 5,475 (10,370) 5,796 (14,646) Increase (Decrease) in Accounts Payable 2,901 (1,265) (22,997) (81,324) (102,685) Increase (Decrease) in Accrued Salaries and Benefits (10,200) (6,050) (14,178) (16,134) (46,562) Increase (Decrease) in Compensated Absences (16) (527) 26,825 555 26,837 Increase (Decrease) in Net Pension Liability (288,349) (203,645) (294,240) (56,724) (842,958) Increase (Decrease) in Net OPEB Liability 60,073 (31,373) 32,787 (38,184) 23,303 Increase (Decrease) in Deferred Inflows - Pensions 151,260 193,868 262,042 306,781 913,951 Increase (Decrease) in Deferred Inflows - OPEB 4,426 (3,362) 1,668 (4,435) (1,703) Increase (Decrease) in Claims Payable 84,280 - - - 84,280 Net Cash from Operating Activities 343,464$ 422,641$ 418,506$ (13,400)$ 1,171,211$ 113 Page 218 of 281

CUSTODIAL FUNDS
114 Page 219 of 281

City of Upland
Custodial Funds
Year Ended June 30, 2022

CUSTODIAL FUNDS

Custodial Funds are used to account for assets held by a government in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds.

Community Facilities District 2003-2 Area 1 Fund
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Colonies development.

Community Facilities District 2003-2 Area 2 Fund
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Colonies development.

Community Facilities District 2015-1 Area 1 Fund
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Sycamore Hills development.

Community Facilities District 2016-1 Area 1 Fund
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Harvest at Upland development.

Community Facilities District 2016-2 Maintenance Fund
To account for revenues received from property holders for the payment of maintenance services including median landscaping, channel landscaping, storm drain clean outs, and asphalt slurry every 5 years within the Harvest at Upland development.

Community Facilities District 2017-1 Maintenance Fund
To account for revenues received from property holders for the payment of maintenance services including median landscaping, channel landscaping, storm drain clean outs, and asphalt slurry every 5 years within the Sycamore Hills development.

Community Facilities District 2016-1 Area 2 Fund
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Harvest at Upland development.

Assessment District 84-1 Fund
To account for the district formed to provide street sweeping, landscape irrigation, and street light services.

Sanitary Sewer Facility Development Fund
To account for revenue collected to expand both the City’s and the region’s sanitary sewage facilities to accommodate current and future growth.

Welfare Committee Fund
To account for employee contributions to provide future financial assistance to employees in the event of a personal financial emergency.

West End Consolidated Water Company (Water Company)
To account for the Water Company’s financial transactions and balances. 115 Page 220 of 281

City of Upland
Custodial Funds
Year Ended June 30, 2022

CUSTODIAL FUNDS - Continued

Community Facilities District 2003-1
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvement in the Upland 54 development.

Community Facilities District 2022-1
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvement in the Enclave development.

Community Facilities District 2015-1 Area 2
To account for revenues received from property holders for the payment of debt issued to finance the acquisition of certain public rights of way and construction of certain public improvements in the Sycamore Hills development.

116 Page 221 of 281

City of Upland
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
Community Community Community Community Community
Facilities District Facilities District Facilities District Facilities District Facilities 2003-2 Area 1 2003-2 Area 2 2015-1 Area 1 2016-1 Area 1 District 2016-2 ASSETS
Cash and Investments 18,936$ 16,896$ -$ 17,646$ 194,632$ Cash with Fiscal Agent 298,240 2,623,992 1,363,528 873,824 - Accounts Receivable 23,213 - 6,650 6,352 838 Total Assets 340,389 2,640,888 1,370,178 897,822 195,470

LIABILITIES
Deposits Payable - - 27,829 150,500 15,784 Due to City of Upland - - 280,911 - - Accounts Payable 240 131 4,131 194 1,831 Total Liabilities 240 131 312,871 150,694 17,615

NET POSITION
Restricted for:

Organizations and Individuals 340,149 2,640,757 1,057,307 747,128 177,855 Other Governments - - - - - Total Net Position 340,149$ 2,640,757$ 1,057,307$ 747,128$ 177,855$ 117 Page 222 of 281

Community Community Sanitary Sewer West End Community
Facilities Facilities District Assessment Facility Welfare Consolidated Facilities District 2017-1 2016-1 Area 2 District 84-1 Development Committee Water Co. District 2003-1 20,087$ 16,250$ 2,752$ 3,472,281$ 29,009$ 499,807$ 17,646$ - 2,698,500 - - - - 265,530 46 2,975 - - - - - 20,133 2,717,725 2,752 3,472,281 29,009 499,807 283,176 - 164,308 - 3,472,281 - - - - - - - - - - 1,481 225 - - - - 147 1,481 164,533 - 3,472,281 - - 147 18,652 2,553,192 2,752 - 29,009 499,807 283,029 - - - - - - - 18,652$ 2,553,192$ 2,752$ -$ 29,009$ 499,807$ 283,029$ Continued
118 Page 223 of 281

City of Upland
Combining Statement of Fiduciary Net Position - Continued Custodial Funds
June 30, 2022
Community Community
Facilities Facilities District
District 2022-1 2015-1 Area 2 Total
ASSETS
Cash and Investments 5,676$ 449,123$ 4,760,741$ Cash with Fiscal Agent - 8,997,909 17,121,523 Accounts Receivable - - 40,074 Total Assets 5,676 9,447,032 21,922,338

LIABILITIES
Deposits Payable 8,690 158,000 3,997,392
Due to City of Upland - - 280,911 Accounts Payable 26,023 131 34,534
Total Liabilities 34,713 158,131 4,312,837

NET POSITION
Restricted for:

Organizations and Individuals (29,037) 9,288,901 17,609,501 Other Governments - - - Total Net Position (29,037)$ 9,288,901$17,609,501$
119 Page 224 of 281

City of Upland
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2022
Community Community Community Community Community
Facilities District Facilities District Facilities District Facilities District Facilities 2003-2 Area 1 2003-2 Area 2 2015-1 Area 1 2016-1 Area 1 District 2016-2

ADDITIONS
Contributions:

Taxes and assessments collected for others 1,590,475$ 1,324,690$ 515,085$ 527,861$ 106,062$ Contributions from Bondholders 298,228 - - - - Investment Earnings:

Interest Income - - - - - Total Additions 1,888,703 1,324,690 515,085 527,861 106,062

DEDUCTIONS
General and Administrative 21,469 18,709 3,765,553 15,453 27,190 Recipient Payments - - - - - Distribution to Shareholders 4,988,687 1,312,219 522,044 512,000 - Total Deductions 5,010,156 1,330,928 4,287,597 527,453 27,190 Net Increase (decrease) in fiduciary net position (3,121,453) (6,238) (3,772,512) 408 78,872 Net Position, beginning of the year 3,461,602 2,646,995 4,829,819 746,720 98,983 Net Position, end of the year 340,149$ 2,640,757$ 1,057,307$ 747,128$ 177,855$ 120 Page 225 of 281

Community Community Sanitary Sewer West End Community
Facilities Facilities District Assessment Facility Welfare Consolidated Facilities District 2017-1 2016-1 Area 2 District 84-1 Development Committee Water Co. District 2003-1 7,560$ 569,598$ 3,571$ 659,910$ 123$ -$ 137,650$ - - - - - - - - - - - - 2,866 - 7,560 569,598 3,571 659,910 123 2,866 137,650 23,653 10,699 - 2,404,203 6,191 - 15,383 - 6,180,876 - 2,936,087 - - - - 314,028 - - - - 124,680 23,653 6,505,603 - 5,340,290 6,191 - 140,063 (16,093) (5,936,005) 3,571 (4,680,380) (6,068) 2,866 (2,413) 34,745 8,489,197 (819) 4,680,380 35,077 496,941 285,442 18,652$ 2,553,192$ 2,752$ -$ 29,009$ 499,807$ 283,029$ Continued
121 Page 226 of 281

City of Upland
Combining Statement of Changes in Fiduciary Net Position - Continued Custodial Funds
For the Year Ended June 30, 2022
Community Community
Facilities Facilities District
District 2022-1 2015-1 Area 2 Total

ADDITIONS
Contributions:

Taxes and assessments collected for others -$ 295,057$ 5,737,642$ Contributions from Bondholders - 9,230,000 9,528,228 Investment Earnings:

Interest Income - - 2,866 Total Additions - 9,525,057 15,268,736

DEDUCTIONS
General and Administrative 29,037 4,016 6,341,556 Recipient Payments - 232,140 9,349,103 Distribution to Shareholders - - 7,773,658 Total Deductions 29,037 236,156 23,464,317 Net Increase (decrease) in fiduciary net position (29,037) 9,288,901 (8,195,581) Net Position, beginning of the year - - 25,805,082 Net Position, end of the year (29,037)$ 9,288,901$ 17,609,501$ 122 Page 227 of 281

STATISTICAL SECTION
123 Page 228 of 281

City of Upland
Description of Statistical Section Contents
June 30, 2022

This part of the City of Upland'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 say about the government's overall financial health.

Contents: Pages

Financial Trends theses schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

125

Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

135

Debt Capacity 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.

143

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.

150

Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

152

124 Page 229 of 281

CITY OF UPLAND
2013 2014 2015 2016
Governmental activities
Invested in capital assets, net of related debt 281,184,806$ 272,320,453$ 274,795,930$ 269,132,382$ Restricted 22,177,079 18,336,004 14,482,775 25,659,378 Unrestricted (19,386,237) (253,534) (62,716,819) (64,259,153) Total governmental activities net position 283,975,648$ 290,402,923$ 226,561,886$ 230,532,607$ Business-type activities
Invested in capital assets, net of related debt 76,050,669$ 75,114,852$ 68,450,050$ 67,891,850$ Restricted - - - - Unrestricted 37,241,528 36,705,400 27,528,096 34,916,716 Total business-type activities net position 113,292,197$ 111,820,252$ 95,978,146$ 102,808,566$ Primary government
Invested in capital assets, net of related debt 357,235,475$ 347,435,305$ 343,245,980$ 337,024,232$ Restricted 22,177,079 18,336,004 14,482,775 25,659,378 Unrestricted 17,855,291 36,451,866 (35,188,723) (29,342,437) Total primary government net position 397,267,845$ 402,223,175$ 322,540,032$ 333,341,173$

Source: Finance Division, City of Upland

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS ( ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year Ended June 30,
125 Page 230 of 281

2017 2018 2019 2020 2021 2022
267,791,299$ 262,318,491$ 262,465,719$ 266,996,077$ 267,040,558$ 262,699,586$ 40,844,504 42,616,153 44,877,724 52,227,409 43,407,782 44,713,616 (74,170,029) (83,164,838) (80,859,640) (74,070,557) (59,600,057) (62,075,620) 234,465,774$ 221,769,806$ 226,483,803$ 245,152,929$ 250,848,283$ 245,337,582$ 68,761,226$ 69,511,985$ 70,481,398$ 80,694,523$ 11,916,179$ 92,647,094$ - - - - - - 39,989,572 48,033,153 54,825,737 62,335,721 141,256,446 73,065,524 108,750,798$ 117,545,138$ 125,307,135$ 143,030,244$ 153,172,625$ 165,712,618$ 336,552,525$ 331,830,476$ 332,947,117$ 347,690,600$ 278,956,737$ 355,346,680$ 40,844,504 42,616,153 44,877,724 52,227,409 43,407,782 44,713,616 (34,180,457) (35,131,685) (26,033,903) (11,734,836) 81,656,389 10,989,904 343,216,572$ 339,314,944$ 351,790,938$ 388,183,173$ 404,020,908$ 411,050,200$ Fiscal Year Ended June 30,
126 Page 231 of 281

LAST TEN FISCAL YEARS ( ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016
Expenses
Governmental activities:

General government 4,113,605$ 4,709,996$ 3,050,233$ 5,626,905$ Public safety 29,009,795 24,047,934 27,468,131 27,178,673 Engineering and public works 7,868,067 9,879,986 9,281,467 11,049,238 Development services 4,967,335 3,174,496 5,447,239 5,214,410 Community services 6,100,981 4,057,338 5,073,673 4,308,397 Interest expense 310,478 286,492 284,269 281,359 Total governmental activities expenses 52,370,261 46,156,242 50,605,012 53,658,982 Business-type activities:

Water utility 17,019,949 19,565,979 20,124,035 16,121,912 Solid waste utility 9,246,343 9,322,648 9,872,451 9,602,172 Sewer utility 5,813,597 6,278,008 7,457,367 7,063,779 Animal services 1,082,162 1,020,821 - - Total business-type activities expenses 33,162,051 36,187,456 37,453,853 32,787,863 Total primary government expenses 85,532,312$ 82,343,698$ 88,058,865$ 86,446,845$ Program Revenues
Governmental activities:

Charges for services:

General government 1,416,615$ 1,508,984$ 1,658,124$ 1,124,713$ Public safety 2,526,925 2,930,767 3,593,175 3,789,627 Engineering and public works 411,595 579,582 660,583 246,341 Development services 3,881,798 4,541,765 4,612,643 4,933,961 Community services 611,995 1,058,570 1,097,518 1,072,754 Operating grants and contributions 6,554,132 6,234,320 7,014,790 5,120,131 Capital grants and contributions 2,614,837 1,636,573 2,712,801 3,926,465 Total governmental activities
program revenues 18,017,897 18,490,561 21,349,634 20,213,992 Business-type activities
Charges for services:

Water utility 17,324,491 18,184,343 22,713,562 18,601,289 Solid waste utility 9,535,127 9,592,364 10,355,699 10,544,776 Sewer utility 6,294,532 6,432,824 7,233,341 8,068,428 Animal services 567,329 384,674 - - Operating grants and contributions - 23,220 21,672 15,519 Capital grants and contributions - - - - Total business-type activities
program revenues 33,721,479 34,617,425 40,324,274 37,230,012 Total primary government
program revenues 51,739,376$ 53,107,986$ 61,673,908$ 57,444,004$ Net (expenses)/revenue
Governmental activities (34,352,364)$ (27,665,681)$ (29,255,378)$ (33,444,990)$ Business-type activities 559,428 (1,570,031) 2,870,421 4,442,149 Total net revenues (expense)(33,792,936)$ (29,235,712)$ (26,384,957)$ (29,002,841)$ Fiscal Year Ended June 30,

CITY OF UPLAND

CHANGES IN NET POSITION
127 Page 232 of 281

2017 2018 2019 2020 2021 2022
3,080,619$ 4,539,492$ 4,033,829$ 3,740,648$ 2,148,712$ 899,152$ 32,174,086 27,927,892 27,265,506 23,786,129 31,674,977 40,906,101 9,819,952 11,468,377 12,092,590 3,524,461 14,653,574 14,788,452 5,407,099 6,624,913 6,059,857 5,931,597 5,682,894 6,223,444 3,691,035 3,370,656 4,255,538 3,910,878 3,642,911 4,449,233 358,679 715,062 840,116 817,235 783,846 609,129 54,531,470 54,646,392 54,547,436 41,710,948 58,586,914 67,875,511 18,483,205 19,989,900 21,525,637 20,513,809 22,480,852 25,757,917 10,051,229 11,042,468 12,316,577 13,787,098 14,487,585 15,591,348 7,818,112 9,285,699 9,387,370 9,946,531 10,663,464 10,330,964 - - - - - - 36,352,546 40,318,067 43,229,584 44,247,438 47,631,901 51,680,229 90,884,016$ 94,964,459$ 97,777,020$ 85,958,386$ 106,218,815$ 119,555,740$ 305,373$ 382,010$ 1,187,018$ 583,514$ 795,356$ 359,602$ 3,541,745 1,827,271 1,866,761 1,644,528 1,223,941 1,296,694 776,173 4,207,550 2,991,516 5,038,970 4,002,120 898,698 5,461,323 5,245,335 5,876,464 6,038,238 6,066,211 8,031,377 495,702 546,702 581,989 395,733 934,551 519,862 5,933,967 2,066,407 2,340,876 2,518,963 4,433,802 5,469,996 4,337,377 6,604,091 7,305,417 8,229,671 7,219,514 4,881,792 20,851,660 20,879,366 22,150,041 24,449,617 24,675,495 21,458,021 21,299,753 28,076,336 26,203,575 27,703,940 29,333,341 28,937,984 11,103,446 11,687,415 12,677,799 13,772,383 14,643,704 16,686,834 9,705,668 10,144,832 10,573,571 10,606,800 10,818,913 10,595,087 - - - - - - 63,207 70,598 57,708 - 23,630 26,198 - - 1,544,529 9,882,981 2,903,615 2,622,455 42,172,074 49,979,181 51,057,182 61,966,104 57,723,203 58,868,558 63,023,734$ 70,858,547$ 73,207,223$ 86,415,721$ 82,398,698$ 80,326,579$ (33,679,810)$ (33,767,026)$ (32,397,395)$ (17,261,331)$ (33,911,419)$ (46,417,490)$ 5,819,528 9,661,114 7,827,598 17,718,666 10,091,302 7,188,329 (27,860,282)$ (24,105,912)$ (24,569,797)$ 457,335$ (23,820,117)$ (39,229,161)$ Fiscal Year Ended June 30,
128 Page 233 of 281

LAST TEN FISCAL YEARS ( ACCRUAL BASIS OF ACCOUNTING)
2013 2014 2015 2016
General Revenues and Other
Changes in Net Position
Governmental activities:

Taxes
Property taxes 17,207,416$ 17,656,767$ 18,376,071$ 19,309,037$ Sales taxes 10,167,479 11,282,830 12,477,307 13,909,909 Other taxes 1,603,147 1,744,459 1,890,562 1,778,356 Investment income 26,819 61,284 93,147 216,843 Motor vehicle in lieu 190,258 217,444 852,384 429,308 Gain on sale of assets - 51,530 14,151 32,589 Miscellaneous revenue 583,147 3,494,568 4,238,903 394,567 Extraordinary gain (note 21)- - - - Special Item (note 16)- - - - Transfers 5,922,919 (69,537) 122,245 (3,000) Total governmental activities 35,701,185 34,439,345 38,064,770 36,067,609 Business-type activities:

Investment income 53,563 28,549 99,832 148,205 Share of joint venture net income - - - - Gain on sale of assets - - - - Legal Settlement - - - - Miscellaneous revenue - - - - Transfers (1,058,593) 69,537 (122,245) 3,000 Total business-type activities (1,005,030) 98,086 (22,413) 151,205 Total primary government 34,696,155$ 34,537,431$ 38,042,357$ 36,218,814$ Changes in Net Position
Governmental activities 1,348,821$ 6,773,664$ 8,809,392$ 2,622,619$ Business-type activities (445,602) (1,471,945) 2,848,008 4,593,354 Total primary government 903,219$ 5,301,719$ 11,657,400$ 7,215,973$ Source: Finance Division, City of Upland
Fiscal Year Ended June 30,

CITY OF UPLAND

CHANGES IN NET POSITION
129 Page 234 of 281

2017 2018 2019 2020 2021 2022
20,482,854$ 16,343,119$ 16,831,839$ 18,055,721$ 18,818,701$ 19,089,687$ 13,293,304 13,673,539 14,507,927 13,579,780 16,876,712 18,469,789 2,740,447 2,696,807 2,692,051 2,819,493 2,895,754 3,614,267 326,531 (90,335) 1,012,981 1,232,765 927,392 (564,701) 223,315 40,421 36,969 62,114 57,805 90,702 4,180 - 132,623 - - - 355,677 321,564 271,298 180,584 30,374 207,045 - - - - - - - (5,562,967) - - - - 67,000 - 814,669 - - - 37,493,308 27,422,148 36,300,357 35,930,457 39,606,738 40,906,789 189,704 415,529 761,947 1,187,036 51,079 (1,472,061) - - - - - - - - (12,879) - - - - - - - - 6,823,725 - - - - - - (67,000) - (814,669) - - - 122,704 415,529 (65,601) 1,187,036 51,079 5,351,664 37,616,012$ 27,837,677$ 36,234,756$ 37,117,493$ 39,657,817$ 46,258,453$ 3,813,498$ (6,344,878)$ 3,902,962$ 18,669,126$ 5,695,319$ (5,510,701)$ 5,942,232 10,076,643 7,761,997 18,905,702 10,142,381 12,539,993 9,755,730$ 3,731,765$ 11,664,959$ 37,574,828$ 15,837,700$ 7,029,292$ Fiscal Year Ended June 30,
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2013 2014 2015 2016 2017
General Fund
Nonspendable 139,164$ 158,323$ 110,709$ 63,831$ 75,325$ Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned 721,275 3,841,677 10,284,958 14,478,664 15,254,150 Total General Fund 860,439$ 4,000,000$ 10,395,667$ 14,542,495$ 15,329,475$ Other governmental funds
Nonspendable -$ -$ -$ -$ -$ Restricted 15,078,398 18,683,199 34,769,384 38,524,248 39,563,384 Committed - - - - - Assigned - - - - - Unassigned (1,525,535) (112,511) (20,372) (254,428) (4,088) Total Other Governmental Funds 13,552,863$ 18,570,688$ 34,749,012$ 38,269,820$ 39,559,296$ Source: Finance Division, City of Upland

CITY OF UPLAND

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Ended June 30,
131 Page 236 of 281

2018 2019 2020 2021 2022
64,869$ 73,803$ 68,061$ 178,650$ 109,886$ 18,473 18,473 53,073 10,733,983 2,735,148 4,670,418 4,670,418 7,750,840 15,137,875 12,434,329 - - - 4,491,000 - 9,479,082 18,538,881 16,404,123 249,245 (11,880,703) 14,232,842$ 23,301,575$ 24,276,097$ 30,790,753$ 3,398,660$ -$ -$ -$ -$ -$ 42,616,153 44,979,990 53,645,011 55,210,075 57,068,653 - - - - - 7,531 - - - 191,505 (296) - (246,676) (684,266) (388,217) 42,623,388$ 44,979,990$ 53,398,335$ 54,525,809$ 56,871,941$ Fiscal Year Ended June 30,
132 Page 237 of 281

LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2013 2014 2015 2016
Revenues
Taxes 30,756,478$ 32,593,211$ 35,655,141$ 37,799,228$ Licenses and permits 987,862 1,041,388 1,794,686 1,875,032 Charges for services 4,362,451 5,230,294 5,606,821 5,392,160 Fines and penalties 500,389 533,282 604,509 594,417 Investment income 27,704 57,147 92,100 187,819 Rental income 3,318,077 3,787,894 3,860,094 4,013,904 Intergovernmental 7,221,745 6,806,235 7,655,572 5,435,521 y Other 1,254,136 4,659,040 5,317,007 1,273,394 Total revenues 48,428,842 54,708,491 60,585,930 56,571,475 Expenditures
General government 4,805,137 5,138,890 3,420,069 3,658,673 Public safety 26,530,316 25,998,626 26,462,312 28,178,150 Engineering and public works 10,362,812 4,870,786 5,698,034 7,874,070 Development services 4,857,256 4,612,547 5,274,072 5,262,923 Community services 4,145,232 3,908,447 4,506,490 4,216,350 Debt service:

Principal 210,000 220,000 235,000 258,368 Interest 317,068 293,657 282,901 296,236 Issuance Costs - - - - Fiscal charges 3,300 3,300 6,659 2,258 Total expenditures 51,231,121 45,046,253 45,885,537 49,747,028 Excess (deficiency) of revenues
over (under) expenditures (2,802,279) 9,662,238 14,700,393 6,824,447 Other financing sources (uses)
Transfers in 6,808,907 2,761,375 273,409 1,208,553 Transfers out (870,049) (3,919,838) (2,478,470) (1,525,154) Extraordinary gain (loss) (note 21)- - - - Proceeds from sale of capital assets - - - 1,600 Issuance of capital leases - - - 200,524 Payments to bond escrow - - - - Issuance of bonds/debt - - - - Total other financing sources(uses)5,938,858 (1,158,463) (2,205,061) (114,477) Special Item
Payment to Unfunded Pension Liability - - - - Net change in fund balances 3,136,579$ 8,503,775$ 12,495,332$ 6,709,970$ Debt service as a percentage of
noncapital expenditures*1.2%1.2%1.1%1.1%
* This percentage is computed as: Debt Service divided by Non-Capital Expenditures Fiscal Year Ended June 30,

CITY OF UPLAND

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
133 Page 238 of 281

2017 2018 2019 2020 2021 2022
38,830,352$ 32,719,390$ 36,119,214$ 35,505,234$ 39,675,488$ 42,615,113$ 3,009,862 5,164,222 4,354,120 6,164,957 5,955,190 3,306,914 5,857,984 2,785,383 3,055,102 2,843,447 2,384,400 2,758,438 619,646 646,874 989,437 893,964 542,604 600,186 86,173 38,881 1,813,945 1,679,486 829,306 (2,483,759) 4,191,730 4,738,192 5,003,949 5,156,573 5,259,555 5,259,156 5,798,858 5,579,860 5,518,173 6,812,160 8,241,316 9,906,508 1,742,663 934,735 1,727,759 550,605 627,760 700,456 60,137,268 52,607,537 58,581,699 59,606,426 63,515,619 62,663,012 4,950,630 2,154,855 1,918,770 1,956,329 2,255,746 3,442,633 31,733,042 23,950,547 23,653,097 25,977,681 27,381,746 28,134,960 9,380,001 15,361,147 12,907,584 9,842,367 14,744,656 12,307,298 5,446,549 6,366,818 5,343,038 5,735,938 5,683,606 6,223,444 3,518,510 3,170,399 3,279,498 3,240,983 3,193,155 3,817,256 288,319 18,677,299 674,583 695,406 739,578 13,621,275 360,854 715,062 840,116 817,235 783,846 609,129 - - - - - 167,472 3,575 - - - - - 55,681,480 70,396,127 48,616,686 48,265,939 54,782,333 68,323,467 4,455,788 (17,788,590) 9,965,013 11,340,487 8,733,286 (5,660,455) 517,960 224,081 1,035,556 1,725,996 593,000 290,000 (2,164,720) (3,693,295) (518,892) (3,673,616) (1,715,374) (2,158,150) - - - - - - - - 132,623 - 31,218 - - - - - - - - - - - - - - 22,210,487 - - - 12,982,644 (1,646,760) 18,741,273 649,287 (1,947,620) (1,091,156) 11,114,494 - - - - - (30,500,000) 2,809,028$ 952,683$ 10,614,300$ 9,392,867$ 7,642,130$ (25,045,961)$

1.3%31.7%3.6%4.1%3.1%21.8%
Fiscal Year Ended June 30,
134 Page 239 of 281

CITY OF UPLAND

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (IN THOUSANDS OF DOLLARS)

LAST TEN FISCAL YEARS
2012/13 2013/14 2014/15 2015/16 2016/17
Residential 5,498,151 5,680,385 6,068,414 6,401,935 6,697,951 Commercial 823,190 849,188 873,943 875,269 908,646 Industrial 306,113 314,762 318,293 342,277 350,443 Dry Farm 4,029 4,184 4,186 470 477 Govt. Owned 960 979 983 1,003 1,018 Institutional 12,982 14,288 10,334 9,826 13,908 Irrigated 1,928 1,967 1,976 2,015 1,640 Miscellaneous 76,292 78,275 78,792 80,400 103,978 Recreational 18,041 14,322 14,353 14,804 14,162 Vacant 68,364 74,268 65,657 84,782 91,043 SBE Nonunitary 69 69 70 70 70 Unsecured 265,091 262,039 259,893 268,858 249,241 TOTALS 7,075,211 7,294,725 7,696,894 8,081,709 8,432,577 Total Direct Rate 0.29337% 0.17491% 0.17491% 0.17492% 0.17492% Source: San Bernardino County Assessor 2012/13 - 2021/22 Combined Tax Rolls; HdL Coren & Cone
Note: The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local overrides. These values are considered to be full market values.

Fiscal Year
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2017/18 2018/19 2019/20 2020/21 2021/22
7,059,507 7,440,680 7,822,956 8,303,185 8,718,266 991,548 1,059,249 1,092,437 1,146,927 1,190,138 377,242 401,508 405,874 436,283 452,734 487 497 507 621 627 1,039 1,060 1,554 1,585 1,965 11,982 12,730 8,269 8,177 9,108 1,673 1,707 1,741 1,775 430 76,233 78,464 84,498 95,151 92,426 13,758 13,812 14,875 14,940 15,410 132,223 127,536 150,349 132,343 94,275 70 69 180 180 180 230,214 246,034 251,133 239,443 240,310 8,895,976 9,383,344 9,834,373 10,380,611 10,815,869

0.17492% 0.08257% 0.09093% 0.09079% 0.09099%
Fiscal Year
136 Page 241 of 281

Fiscal Gallons % of Gallons % of Gallons % of Gallons % of Year Consumed Total Consumed Total Consumed Total Consumed Total 2013 4,825,517,048 73.7% 733,835,124 11.2% 241,184,372 3.7% 750,007,632 11.4% 2014 4,930,872,848 72.8% 729,473,536 10.8% 218,617,212 3.2% 895,623,036 13.2% 2015 4,456,746,316 71.4% 718,672,416 11.5% 210,080,288 3.4% 860,493,216 13.8% 2016 3,566,689,896 70.7% 650,598,432 12.9% 176,596,816 3.5% 649,350,020 12.9% 2017 3,848,856,440 71.0% 680,205,768 12.5% 177,463,748 3.3% 717,650,648 13.2% 2018 4,243,225,976 70.1% 717,147,992 11.8% 186,568,404 3.1% 909,118,452 15.0% 2019 3,804,467,128 69.4% 659,586,400 12.0% 165,040,216 3.0% 852,306,356 15.5% 2020 3,940,665,212 71.5% 592,244,708 10.7% 167,931,236 3.0% 813,682,628 14.8% 2021 4,359,818,232 71.5% 593,676,380 9.7% 212,988,512 3.5% 934,994,764 15.3% 2022 4,124,359,800 71.6% 561,967,164 9.8% 180,236,584 3.1% 889,946,464 15.5% Source: Finance Division, City of Upland

CITY OF UPLAND

WATER SALES BY USER TYPE

LAST TEN FISCAL YEARS
Residential Commercial Public Agency Irrigation
137 Page 242 of 281

CITY OF UPLAND

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)

LAST TEN FISCAL YEARS
Agency 2012/13 2013/14 2014/15 2015/16
Basic Levy1 1.00000 1.00000 1.00000 1.00000
Alta Loma Elementary Bond 0.04580 0.04500 0.04370 0.04170 Central Elementary Bond 0.07270 0.07110 0.06600 0.06500 Chaffey Community College Bond 0.01110 0.01570 0.01090 0.01130 Chaffey High School Bond 0.01010 0.03710 0.02940 0.04090 Metropolitan Water Agency 0.00350 0.00350 0.00350 0.00350 Ontario-Montclair Elementary Bond 0.02740 0.02940 0.02600 0.02680 Upland Unified School Bond 0.05240 0.04840 0.04620 0.05250 Total Direct & Overlapping2 Tax Rates 1.22300 1.25020 1.22570 1.24170 City Share of 1% levy per Prop 133 0.17482 0.17482 0.17482 0.17482 Redevelopment Rate4 n/a n/a n/a n/a
Total Direct Rate5 0.29337 0.17491 0.17491 0.17492
Notes:

Source: San Bernardino County Assessor 2012/13 - 2021/22 Tax Rate Table; HdL Coren & Cone 5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 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 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency 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.
2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlappping rates apply to all city 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.
138 Page 243 of 281

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.04080 0.05640 0.06800 0.06530 0.04570 0.07300

0.06880 0.06700 0.04650 0.05020 0.04890 0.06140

0.01160 0.00880 0.01530 0.02410 0.01110 0.01770

0.03190 0.02790 0.04020 0.03750 0.03520 0.03710

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.02640 0.05570 0.05550 0.04280 0.04580 0.04550

0.06070 0.05510 0.05870 0.05600 0.05150 0.06340

1.24370 1.27440 1.28770 1.27940 1.24170 1.30160

0.17482 0.17482 0.08042 0.09353 0.09353 0.09353
n/a n/a n/a n/a n/a n/a

0.17492 0.17492 0.08257 0.09330 0.09079 0.09099
Fiscal Year
139 Page 244 of 281

CITY OF UPLAND
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
Taxpayer
Taxable
Assessed
Value Rank
Percentage of
Total Taxable
Assessed Value
Taxable
Assessed
Value Rank
Percentage of
Total Taxable
Assessed Value
Colonies-Pacific LLC 166,876,323 1 1.54% 88,401,764$ 1 1.25% College Park Apartment Homes LP 62,515,737 2 0.58% 57,451,172 2 0.81% Benson Owner LLC 50,394,737 3 0.47%
Lucas Upland LLC 49,724,867 4 0.46%
MG Stoneridge Village Grove LLC 47,565,361 5 0.44% Rancho Monte Vista Apartment Homes 46,126,123 6 0.43% 40,015,514 4 0.57% CT Retail Properties Finance II LLC 44,339,086 7 0.41% 38,210,074 5 0.54% WNG Mountain Springs GP 40,562,688 8 0.38% 34,955,689 6 0.49% College Business Park LLC 37,949,121 9 0.35% Dee Matreyek-Kurth Non Exempt Trust 37,537,476 10 0.35% Granite Sr Woodlane LLC 42,918,879 3 0.61% Koll Per College Business Park, LLC 34,726,001 7 0.49% Bill and Mary Matreyek Trust 31,446,614 8 0.44% NU-168 Apartments LLC 31,204,116 9 0.44%
Holliday Rock Company Inc 30,790,476 10 0.44% Totals 583,591,519$ 5.40% 430,120,299$ 6.08% Source: San Bernardino County Assessor 2021/22 Combined Tax Roll and the SBE Non Unitary Tax Roll 2022 2013
140 Page 245 of 281

Percentage of Percentage of
Gallons Total Gallons Gallons Total Gallons
Water Purchaser Consumed Rank Consumed Consumed Rank Consumed City of Upland 337,561 1 4.4% 239,155,048 1 3.7% Upland Unified School District 139,770 2 1.8% 116,817,404 2 1.2% Upland Development LLC 139,405 3 1.8% 57,628,164 4 1.2% Mountain View Land Co 67,547 4 0.9% 27,220,468 10 0.5% Wetrustin Investment Inc 64,589 5 0.8%
San Antonio Community Hospital 64,410 6 0.8% 50,650,072 6 0.8% Upland Hills CC COA 52,641 7 0.7% 38,896,748 8 0.6% ST of California Dept of Trans 52,535 8 0.7% Upland Hills Estates HOA 51,139 9 0.7% 51,159,460 5 0.8% Upland Cascade 43,050 10 0.6%
State of California 78,400,124 3 1.8%
Orchard Lane Condos 48,961,836 7 0.8%
Upland Meadows Management 33,879,164 9 0.6%
Totals 1,012,647 13.2% 742,768,488 11.9%
Source: Finance Division, City of Upland

CITY OF UPLAND

PRINCIPAL WATER PURCHASERS

CURRENT YEAR AND TEN YEARS AGO
2022 2013
141 Page 246 of 281

Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30, Fiscal Year Amount of Levy Years (1) Amount of Levy 2013 9,881,310 9,452,806 95.66% N/A 9,452,806 95.66% 2014 10,195,064 9,902,877 97.13% N/A 9,902,877 97.13% 2015 10,792,671 10,512,265 97.40% N/A 10,512,265 97.40% 2016 11,319,306 11,049,460 97.62% N/A 11,049,460 97.62% 2017 11,883,283 11,615,501 97.75% N/A 11,615,501 97.75% 2018 12,310,682 12,120,710 98.46% N/A 12,120,710 98.46% 2019 1 6,032,861 5,900,839 97.81% N/A 5,900,839 97.81% 2020 7,326,803 7,162,370 97.76% N/A 7,162,370 97.76% 2021 7,730,056 7,623,675 98.62% N/A 7,623,675 98.62% 2022 8,029,078 7,904,847 98.45% N/A 7,904,847 98.45% Notes:
1 Change from prior years due to City's Annexation with San Bernadino County for Fire Services.

CITY OF UPLAND

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
Collected within the
Fiscal Year of Levy Total Collections to Date
Source: Data provided by the San Bernardino County Assessor's Office for collection of prior years taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above shcedule.
142 Page 247 of 281

CITY OF UPLAND

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Fiscal Lease Total
Year Ended Revenue Housing Capital Clean Renewable Governmental June 30, Bonds Bonds Leases Energy Bonds Activities
2013 950,000 18,000,000 - - 18,950,000 2014 730,000 18,000,000 - - 18,730,000 2015 495,000 18,000,000 - - 18,495,000 2016 250,000 18,000,000 187,156 - 18,437,156 2017 - 18,000,000 148,837 - 18,148,837 2018 - 14,420,150 2,736,044 4,525,832 21,682,026 2019 - 13,905,615 2,607,411 4,494,189 21,007,215 2020 - 13,372,270 2,467,202 4,472,265 20,311,737 2021 - 12,815,345 2,315,651 4,441,631 19,572,628 2022 - 12,402,398 2,145,397 4,386,028 18,933,823 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (a) This ratio is calculated using personal income and population for the prior calendar year.

Source: Notes to the Financial Statements, Long Term Debt Section Governmental
Activities
143 Page 248 of 281

Water Total Percentage Debt Fiscal
Lease Revenue Direct Primary of Personal Per Year Ended Bonds Borrowings Government Income (a)Capita (a) June 30, 11,958,964 30,908,964 1.41% 412.63 2013 11,282,566 30,012,566 1.38% 399.38 2014 10,483,221 28,978,221 1.36% 386.00 2015 9,658,875 28,096,031 1.29% 370.79 2016 8,809,529 26,958,366 1.21% 351.07 2017 8,435,184 30,117,210 1.32% 391.05 2018 8,045,838 29,053,053 1.20% 370.19 2019 7,646,493 1,376,000 29,334,230 1.17% 372.20 2020 7,232,147 1,698,627 28,503,402 1.05% 363.04 2021 22,570,000 1,354,627 42,858,450 1.56% 541.56 2022 Business-type Activities
144 Page 249 of 281

2021-22 Assessed Valuation:$10,805,740,392
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2022 % Applicable (1)Debt 6/30/22 Metropolitan Water District $20,175,000 0.32% $64,358
Chaffey Community College District 302,930,000 7.971 24,146,550 Upland Unified School District 86,283,463 92.743 80,021,872 Chaffey Union High School District 513,636,737 0.783 4,021,776 Alta Loma School District 57,397,978 0.521 299,043
Central School District 67,594,835 1.913 1,293,089
Ontario-Montclair School District 105,895,015 2.673 2,830,574 Upland Unified School District Community Facilities District No. 99-1 1,058,000 100 1,058,000 Upland Unified School District Community Facilities District No. 01-1 1,481,000 100 1,481,000 City of Upland Community Facilities District No. 2003-1 1,125,000 100 1,125,000 City of Upland Community Facilities District No. 2003-2, I.A. Nos. 1 & 2 28,660,000 100 28,660,000 City of Upland Community Facilities District No. 2015-1, I.A. No. 1 9,015,000 100 9,015,000 City of Upland Community Facilities District No. 2015-1, I.A. No. 2 9,230,000 100 9,230,000 City of Upland Community Facilities District No. 2016-1, I.A. No. 1 8,035,000 100 8,035,000 City of Upland Community Facilities District No. 2016-1, I.A. No. 2 8,495,000 100 8,495,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $179,776,262
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

San Bernardino County General Fund Obligations $188,035,000 4.06% $7,632,341 San Bernardino County Pension Obligation Bonds 119,835,000 4.059 4,864,103 San Bernardino County Flood Control District General Fund Obligations 44,780,000 4.059 1,817,620 Chaffey Community College District General Fund Obligations 27,675,000 7.971 2,205,974 City of Upland Equipment Lease Obligations 6,537,217 100 6,537,217 City of Upland Housing Revenue Bonds 12,402,398 100 12,402,398 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $35,459,653 Less: City of Upland Housing Revenue Bonds (100% supported from housing related revenues)12,402,398 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $23,057,255 OVERLAPPING TAX INCREMENT DEBT (Successor Agency):$16,090,000 100.00% $16,090,000 TOTAL GROSS DIRECT DEBT $18,939,615
TOTAL NET DIRECT DEBT $6,537,217
TOTAL OVERLAPPING DEBT $212,386,300
GROSS COMBINED TOTAL DEBT $231,325,915 (2)
NET COMBINED TOTAL DEBT $218,923,517
Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.66%
Total Gross Direct Debt ($20,311,914)0.18%
Total Net Direct Debt ($6,939,762)0.06%
Gross Combined Total Debt 2.14%
Net Combined Total Debt 2.03%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,982,673,344):

Total Overlapping Tax Increment Debt 0.81%
Source: California Municipal Statistics, Inc., Avenu Insights & Analytics (2) Excludes tax and revenue anticipation notes, enterprise JUNE 30, 2022

CITY OF UPLAND

DIRECT AND OVERLAPPING BOND DEBT
(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. 145 Page 250 of 281

2013 2014 2015 2016
Debt Limit 1,058,579,687$ 1,091,662,967$ 1,152,315,001$ 1,210,072,895$ Total Net Debt Applicable to Limit - - - - Legal Debt Margin 1,058,579,687$ 1,091,662,967$ 1,152,315,001$ 1,210,072,895$ Total Net Debt Applicable to The Limit
As a Percentage of Debt Limit 0.00%0.00%0.00%0.00%
Legal Debt Margin Calculation for Fiscal Year 2022:

Assessed Valuation
Debt Limit (15% of Assessed Value)
Debt Applicable to Limit:

General Obligation Bonds
Legal Debt Margin
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.
1 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, total assessed value for the City is no longer reduced by the incremental value of the redevelopment project areas.

CITY OF UPLAND

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal Year Ended June 30,
146 Page 251 of 281

2017 2018 2019 2020 2021 2022
1,263,218,981$ 1,332,692,325$ 1,405,592,832$ 1,473,057,903$ 1,555,306,986$ 1,620,861,059$ 1 - - - - - - 1,263,218,981$ 1,332,692,325$ 1,405,592,832$ 1,473,057,903$ 1,555,306,986$ 1,620,861,059$

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
10,805,740,392$
1,620,861,059
-
1,620,861,059$
Fiscal Year Ended June 30,
147 Page 252 of 281

Water Bonds
Fiscal Water Less: Net
Year Ended Charges Operating Available Debt Service
June 30, and Other Expenses Revenue Principal Interest Coverage 2013 17,122,606 15,146,422 1,976,184 760,000 407,969 1.69 2014 18,184,342 16,532,719 1,651,623 750,000 463,325 1.36 2015 22,713,561 17,673,638 5,039,923 765,000 442,475 4.17 2016 18,601,416 13,367,187 5,234,229 760,000 419,150 4.44 2017 21,436,735 17,418,778 4,017,957 815,000 361,406 3.42 2018 28,076,336 18,979,818 9,096,518 340,000 340,868 13.36 2019 26,203,575 19,636,043 6,567,532 355,000 327,673 9.62 2020 35,276,713 19,764,310 15,512,403 365,000 313,174 22.87 2021 31,669,481 22,037,035 9,632,446 380,000 336,250 13.45 2022 29,738,329 23,362,761 6,375,568 395,000 235,995 10.10 Note: Water Charges and Other includes total revenues (including investment earnings).

Operating Expenses are exclusive of depreciation.

Source: Finance Division, City of Upland

CITY OF UPLAND

PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS
148 Page 253 of 281

Special Assessment Bonds
Special
Assessment Debt Service
Collections Principal Interest Coverage
3,022,803 520,000 2,356,637 1.05
2,935,287 700,000 2,107,620 1.05
2,973,637 820,000 2,080,248 1.03
2,731,961 1,305,000 1,441,090 0.99
2,863,814 1,160,000 1,635,846 1.02
2,822,587 1,250,000 1,598,954 0.99
3,384,728 1,330,000 1,666,350 1.13
3,946,683 1,631,434 1,996,055 1.09
4,093,614 1,640,000 2,200,853 1.07
5,035,779 1,890,000 2,443,621 1.16
149 Page 254 of 281

Personal Per
Income Capita
Calendar (in thousands Personal School Unemployment
Year Population of dollars)Income Enrollment Rate
2012 74,907 2,192,004$ 29,263$ 11,908 6.5%
2013 75,147 2,182,720$ 29,046$ 11,665 5.6%
2014 75,074 2,130,600$ 28,380$ 11,380 5.9%
2015 75,774 2,182,404$ 28,801$ 11,138 4.8%
2016 76,790 2,226,460$ 28,994$ 11,028 4.2%
2017 77,017 2,274,591$ 29,533$ 10,913 2.5%
2018 78,481 2,417,412$ 30,802$ 10,702 3.3%
2019 78,814 2,503,598$ 31,765$ 10,580 3.1%
2020 78,513 2,702,987$ 34,427$ 10,228 8.7%
2021 79,139 2,755,435$ 34,817$ 10,210 6.4%

CITY OF UPLAND

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Sources: HdL, Coren & Cone and the California Department of Education 150 Page 255 of 281

CITY OF UPLAND

PRINCIPAL EMPLOYERS

CURRENT YEAR AND TEN YEARS AGO
2022 2013 *
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment San Antonio Regional Hospital 2,178 1 5.8% 1,942 1 5.2% Upland Unified School District 1,037 2 2.8% 1,500 2 4.0% Home Depot 350 3 0.9%374 4 1.0% Lewis Group 350 4 0.9%300 8 0.8% WalMart 315 5 0.8%324 5 0.9%
Upland Rehabilitation & Care Center 291 6 0.8%300 9 0.8% Target 265 7 0.7%313 6 0.8%
City of Upland 255 8 0.7%398 3 1.1% Holliday Rock Co. Inc 250 9 0.7%
VCI Construction 227 10 0.6%
Laidlaw Transit 312 7 0.8%
Kohl's Department Store 215 10 0.6%
Totals 5,518 14.6% 5,978 15.9%
*Source: Upland Chamber of Commerce, Finance Division & Development Services 151 Page 256 of 281

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government 75.50 78.25 78.00 64.00 58.00 58.00 57.00 67.00 68.00 69.00 Public safety
Police
Officers 70.00 70.00 70.00 74.00 75.00 75.00 75.00 75.00 75.00 78.00 Civilians 22.50 22.50 22.50 26.00 30.00 31.00 37.00 30.00 31.00 31.00 Fire
Firefighters and officers 41.00 40.00 40.00 40.00 40.00 - - - - - 1 Civilians 9.00 9.00 9.00 9.00 9.00 - - - - - 1 Highways and streets
Engineering 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 Operations 23.00 23.00 22.00 23.50 23.50 23.50 23.50 23.50 24.50 25.00 Recreation 7.50 7.50 7.50 6.00 6.00 5.00 5.00 5.00 5.00 5.00 Water 24.00 24.00 24.00 24.00 24.00 24.00 27.00 31.00 31.00 33.00 Solid Waste Utility - - - - - - - 1.00 1.00 1.00 Environmental Quality 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 Total 279.50 281.25 280.00 273.50 272.50 223.50 231.50 238.50 242.50 251.00 Source: Finance Division, City of Upland

CITY OF UPLAND

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
1 Decrease due to annexation of the Fire Department to San Bernardino County as of July 22, 2017. 152 Page 257 of 281

2013 2014 2015 2016 2017
Function
Fire
Stations 55555
Police
Patrol Units 23 23 22 22 22
Motorcycles 54554
Library
Facilities 11111
Recreation
Buildings 44444
Parks 13 13 13 13 13
Soccer fields (lighted)66666
Baseball fields (lighted)88888
Softball fields (lighted)33333
Public Works
Miles of City Streets 208.90 208.90 208.90 209.20 209.25 Miles of State Highways 6.70 6.70 6.70 6.70 6.20
Miles of City Alleys 37.50 37.50 37.50 37.50 37.50
Water
Miles of Water Mains 240.26 240.26 240.88 243.70 255.60 Sewer
Miles of Sewer Lines 228.00 228.00 228.00 228.00 222.00 Source: Various Departments, City of Upland

CITY OF UPLAND

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year Ended June 30,
1 Decrease due to annexation of the Fire Department to San Bernardino County as of July 22, 2017.
2 Amount differs from prior year due to a typo (224.08 vs 224.008). 153 Page 258 of 281

2018 2019 2020 2021 2022
111111
24 24 25 24 24
45444
11111
44444
13 13 13 13 13
66666
88888
33333
209.85 2 210.01 210.01 210.01 210.01

6.20 6.20 6.20 6.20 6.20

37.50 37.50 37.50 37.50 37.50
245.71 247.08 247.08 247.09 247.09
222.00 224.01 224.06 224.06 224.06
Fiscal Year Ended June 30,
154 Page 259 of 281

LAST TEN FISCAL YEARS
2013 2014 2015 2016
Function
General government
Building permits issued 1,120 1,408 2,007 1,176
Police
Physical arrests 3,104 4,272 3,532 3,013
Traffic collisions 634 667 690 814
Fire
Emergency responses 7,865 9,482 8,855 9,607
Public Works
Miles of street sweeping 14,484 14,484 13,009 14,600
Potholes repaired 831 910 2,400 318
Number of trees pruned 5,405 5,671 5,015 2,378
Parks and recreation
Community center admissions 9,093 9,406 9,450 8,868
Library
Volumes in collection 157,769 117,295 113,146 111,548
Current Periodical & Serial Subscriptions 73 340 83 97
Audio-visual items 7,464 5,911 5,947 5,695
Water
New meter installations 550 1,056 981 894
Average daily consumption 21,087 20,690 17,848 14,209
(thousands of gallons)
Number of linear feet of new water pipelines 3,859 - 1,531 3,668 Refuse collection
Refuse collected (tons per day)130 144 140 158
Recyclables collected (tons per day)65 72 64 68
Environmental Quality
Number of sewer inspections conducted 207 210 201 208
Number of permitted dischargers/active permits 192 194 197 193 Source: Various Departments, City of Upland
1Last date of service for the City of Upland Fire Department was 07/22/2017. 2We transitioned from physical magazines to electronic due to COVID and will continue to keep our holdings electronically and not paper copies. 3Physical DVDs and audiobooks on CD, does not include downloadable films and audiobooks.

CITY OF UPLAND

OPERATING INDICATORS BY FUNCTION
Fiscal Year Ended June 30,
155 Page 260 of 281

2017 2018 2019 2020 2021 2022
1,095 2,040 2,327 1,365 3,126 3,374
4,377 3,477 3,670 2,198 2,283 2,908
867 724 607 535 350 421
9,64740400001
15,000 10,800 11,600
11,000 14,600 11,200
720 550 650
700 3,250 825
2,273 4,288 5,850
5,200 6,280 6,300
6,864 6,703 7,208 4,372 541 4,577
107,760 82,577 103,466 73,092 116,755 116,838
42 466 40 760 7,002 7,501
2 5,154 4,302 2,916 5,340 5,006 4,736
3 1,233 1,500 153 210 158 189
15,572 17,276 15,650 15,732 16,027 16,438
1,627 18,091 6,581 - 78 - 151 165 158 162 161 162
65 76 68 77 82 74
211 148 145 5 173 184
195 191 193 193 195 187
Fiscal Year Ended June 30,
156 Page 261 of 281

CITY OF UPLAND

Single Audit Report on
Federal Award Programs

June 30, 2022

Page 262 of 281 ends

Upland City CouncilApril 10, 2023

Upland City Council
April 10, 2023