Governmental Activities
Governmental activities net position increased in total by$12.5 million. The City's governmental activities revenue totaled $73.9 million which is a$11.6 million increase from the prior year. Significant changes are highlighted below:
• Charges for services revenue totaled$13.3 million which is an increase of$2.2 million or 19.8%,primarily related to a $1.6 million increase in development services revenue for building permits and a$0.7 million increase in engineering and public works.
• Operating grants and contributions increased by $2.2 million mostly due to a $1.1 million increase in community services and a $0.9 million increase in general government, primarily due to recognizing ARPA revenue due to expenditures during the year.
• Capital grants and contributions increased by$2.2 million or 44.3%. Most of the increase occurred in the engineering and public works department due to increases in concrete sidewalks and alley repairs with ARPA funds. • Property tax increased by $1.3 million over the previous year, or 6.6%, as current secured tax grew due to increased home values and transfers of ownership.
• Sales tax increased by$2.8 million or 15.2%. Growth was seen specifically in the building and construction and autos and transportation business groups due to strong growth in the construction industry and a new car dealership in town. • Investment income saw an increase of$1.0 million this year as a result of rising interest rates.
Governmental activities expenses totaled $61.4 million this year, which is a $6.6 million or 9.7% decrease over the prior year. General government costs increased$2.1 million;public safety costs decreased$11.3 million due to a change in NPL and related deferred inflows and outflows;public works costs decreased$0.6 million;development services costs increased $1.9 million; community services costs increased$0.9 million; and interest on long-term debt increased$0.4 million.
Governmental Expense
$61.4 Million
Interest on long General Government
term debt 4 97%
1.63%
Community Services Public Safety
o
8.74/0 48.16%
1111
Developmentif
-
Services
13.32%
Engineering&
Public Works
23.18%
General Government • Public Safety Engineering&Public Works ■ Development Services ■ Community Services • Interest on long term debt 8 Page 157 of 330
Business-type Activities
Total resources available during the year to finance Proprietary Fund (Business-type) activities were $177.6 million, an increase of$11.9 million or 7.2%over the net position as of June 30,2022 of$165.7 million.
As shown in the Statement of Activities,the amount paid by users for services was$61.9 million compared to$56.2 million reported in the prior year. The cost of all Proprietary (Business-type) activities decreased $0.1 million this year to $51.5 million compared to $51.6 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 $73.6 million, and its enterprise funds reported combined net position of$177.6 million. Major changes are discussed below:
• The fund balance at year-end for the City's General Fund of$9.8 million is an increase from the prior year of$6.4 million. Revenues and other financing sources increased by $6.0 million from the prior year while expenditures and other financing uses increased by $2.7 million. Sales tax revenue increased $2.8 million which exceeded experts estimates. Investment income increased by $0.6 million due to rising interest rates. General Fund expenditures and other financing sources increased by $2.7 million to $46.8 million. Changes included a decrease of$0.2 million in public safety expenses and increases in all other functions, including: $0.8 million in engineering and public works, $0.6 million in community services, $0.4 million in debt obligations, and $0.3 million in general government and development services. The transfers to other funds increased by$0.5 million,with total funds transferred amounting to $2.6 million. The major component of that funding include a transfer of$1.7 million to the capital improvement project fund with $0.4 million for water system repairs at City Hall and a locker room addition at Public Works, and $1.3 million coming from the infrastructure improvement reserve to provide funding for a cooperative agreement with the County of San Bernardino to resurface several roads in the San Antonio Heights area where some roads have jurisdictional limits along the centerline. , and $0.4 million for water system repairs at City Hall and locker room addition at Public Works. Another portion of the transfers out relates to $0.5 million to the building maintenance and operations fund for park restroom improvements.
• The Housing Fund's fund balance increased$0.6 million or 5.2%over prior year. This minor increase resulted mainly from an increase of$0.23 million in rental income, $0.2 million in investment income, and a decrease in debt service cost of$0.17 million due to the refunding of the housing debt in FY 2021-22. • Total Water Enterprise Fund revenues exceeded total expenses by$12.4 million. Operating revenues increased by$4.0 million due to an increase in water rates. Operating expenses decreased by$3.1 million due to decreased administrative costs of$1.6 million and maintenance and operations costs decreasing by $1.7 million due to less spending on capital assets as the design of larger projects was undertaken in FY 22/23. Non-operating revenue decreased by a net amount of$4 million, which primarily comprises an increase of investment income of$1.8 million due to rising interest rates and a decrease of$6.6 million as a legal settlement that occurred in FY 21/22 did not recur in the current fiscal year. • The Solid Waste Utility Fund net position decreased approximately $0.6 million or 46.8%. Charges for services were up $0.8 million due to a service rate increase. Operating expenses increased$2.3 million,with a$1.0 million increase in administrative costs and a$1.3 million increase for contractual services. • The Sewer Utility Fund net position increased by $.1 million or 0.3%. Operating revenues increased by $1.0 million due primarily to increases in charges for services. Interest income, which is the only nonoperating revenue, increased $0.9 million as a result of rising interest rates and a GASB 31 calculation that forced the balance negative in the previous year. Operating expenses increased overall by$1.8 million due primarily to a maintenance and operations cost increase of$1.6 million due to increased capital projects.Capital contributions decreased by$1.1 million,as there was no capital contribution in the current fiscal year.
9 Page 158 of 330
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 65 of the financial statements. Comparing the Fiscal Year 2022/23 adopted General Fund budget of $48.8 million to the final budget of$48.6 million reflects a decrease of$0.2 million. Actual expenditures for the General Fund of$44.2 million were $4.4 million less than final budgeted amounts. The public safety function actual expenditures were $2.7 million less than the final budgeted amount and was primarily the result of being understaffed and recognizing significant salary savings.
The Fiscal Year 2022/23 adopted revenue budget started at$46.7 million and was increased by$3.9 million to$50.7 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$2.5 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 property taxes, rental income and intergovernmental revenue. Notable increases included: sales tax which exceeded the adjusted budgeted balance by$1.0 million and licenses and permits which exceeded budgeted amounts by$1.0 million. The General Fund's positive results for the year increased fund balance,allowing staff to fund reserves in compliance with the fund balance and pension funding policies approved by City Council. Fund Balance detail can be found in more detail in footnote 14 to the financial statements.
Capital Assets and Debt Administration
Capital Assets
As of June 30, 2023, the city had $381.5 million invested in a broad range of capital assets, including police vehicles, buildings,park facilities,roads, and water and sewer lines. This represents a decrease(net of accumulated depreciation) of $1.3 million from the prior year. This decrease exists because increases in accumulated depreciation exceed construction in progress and new capital assets being depreciated.Governmental activities capital assets decreased by$3.9 and Business- type activities increased by$2.6 million.
Table 3
Capital Assets at Year-End
(Net of Depreciation, in Millions)
Governmental Business-type
Activities Activities Total
2023 2022 2023 2022 2023 2022
Land $ 5.1 $ 5.1 $ 3.0 $ 3.0 $ 8.1 $ 8.1 Rights of way 103.4 103.4 - - 103.4 103.4 Street trees 3.5 3.5 - - 3.5 3.5 Construction in progress 2.5 1.7 17.0 12.9 19.5 14.6 Other capital assets 163.2 167.9 83.8 _ 85.3 247.0 253.2 Totals $ 277.7 $ 281.6 $ 103.8 $ 101.2 $ 381.5 $ 382.8 The City's Fiscal Year 2022/23 capital budget appropriated another $11.4 million for capital projects, principally for 20 projects ranging from as small as $90,000 to $1.5 million. Additional information on the City's capital assets can be found in Note 4 to the financial statements.
10 Page 159 of 330
Long-Term Liabilities
As of June 30,2023,the city had$162.7 million in outstanding debt versus$153.7 million in the prior year. This represents an overall increase of$9.0 million. The increase is primarily due to a $10.6 million increase in a State Water Resources Control Board loan for the construction of a reservoir. The other big changes in debt include the City's net pension liability increasing by$5.8 million as a result of changes in assumptions, which is mostly offset by a $4.5 million reduction in net OPEB liability due to changes in assumptions. Other long-term liabilities changed nominally.
Table 4
Long-Term Debt at Year-End
(In Millions)
Governmental Business-type
Activities Activities Total
2023 2022 2023 2022 2023 2022
Compensated Absences $ 2.3 $ 2.1 $ 0.5 $ 0.4 $ 2.8 $ 2.5 Net OPEB Liability/obligation 7.4 10.9 1.8 2.7 9.2 13.6 Net Pension Liability 91.0 75.2 - 9.9 91.0 85.1 Claims Payable 8.7 9.8 - - 8.7 9.8 Multifamily Housing Rev Bonds 11.7 12.4 - - 11.7 12.4 Energy Efficiency Lease 2.0 2.2 - - 2.0 2.2 CREBS Lease Agreement 4.3 4.4 - - 4.3 4.4 Water Revenue Bonds - - 15.0 15.7 15.0 15.7 Water Refunding Bonds - - 6.5 6.6 6.5 6.6 SAWCO Loan Payable - - 0.3 0.7 0.3 0.7 SWRCB Loan Payable - - 11.2 0.7 11.2 0.7 Totals $ 127.4 $ 117.0 S 35.3 $ 36.7 $ 162.7 $ 153.7 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 2022/23. Real estate assessed values increased from the prior fiscal year by$732 million or a net taxable value increase of 6.8%. 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 December of 2023 was $787,500, a 21.3% increase over 2021's median price of$649,000.
Despite high interest rates, sales prices are expected to continue to be high in Fiscal Year 2024/25 as a result of the low supply of housing inventory. Those higher sales prices should continue to keep property tax revenue strong in the coming year.
Sales tax revenue in Fiscal Year 2022/23 ended a significant 15.2%higher than the prior year as the economy continued to be resilient and the City gained a new car dealership. With the local economy exceeding expectations,the latest projections by HdL predict FY 2023/24 sales tax revenue to exceed Fiscal Year 2022/23's revenue. 11 Page 160 of 330
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. 2 Page 161 of 330
BASIC FINANCIAL STATEMENTS
13 Page 162 of 330
City of Upland
Statement of Net Position
June 30, 2023
Component Units
West End
Consolidated San Antonio
Primary Government Water Company Water Company
Governmental Business-type December 31, December 31, Activities Activities Total 2022 2022
ASSETS
Cash and Investments $ 94,470,120 $ 30,477,400 $ 124,947,520 $ 1,025,627 $ 8,306,184 Receivables:
Accounts,Net 1,197,501 10,887,528 12,085,029 468,352 612,119 Accrued Interest 352,475 - 352,475 - - Notes,Net 9,218,877 - 9,218,877 - 344,000
Leases 6,372,546 - 6,372,546 - -
Accrued Interest on Notes 3,019,759 - 3,019,759 - - Due From Other Governments 7,357,914 192,806 7,550,720 - - Due From Fiduciary Funds - - - - -
Inventory and Prepaid Items 392,205 7,164,237 7,556,442 12,751 180,669 Internal Balances (19,636,746) 19,636,746 - - - Land Held for Resale 1,731,389 - 1,731,389 - - Restricted Assets:
Cash and Investments with Fiscal Agent - 15,500,914 15,500,914 - - Cash and Investments 7,309,835 865,343 8,175,178 - - Investment in Joint Ventures - 31,295,927 31,295,927 - - Capital Assets,Not Being Depreciated: 114,504,931 20,018,243 134,523,174 495,870 2,404,388 Capital Assets,Net of Accumulated Deprecation: 163,182,897 83,821,793 247,004,690 904,719 20,163,761 Total Assets 389,473,703 219,860,937 609,334,640 2,907,319 32,011,121
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 2,131,383 533,845 2,665,228 - - Pension Related Items 52,519,817 1,152,689 53,672,506 - - Total Deferred Outflows of Resources 54,651,200 1,686,534 56,337,734 - -
LIABILITIES
Accounts Payable 3,730,428 6,152,484 9,882,912 333,986 695,363 Accrued Salaries and Benefits 682,251 97,758 780,009 - - Accrued Interest Payable - 95,499 95,499 - Deposits Payable 3,436,329 865,343 4,301,672 1,700 Retention Payable 29,899 89,383 119,282 - Unearned Revenue 10,588,951 119,891 10,708,842 - Noncurrent Liabilities:
Due Within One Year 4,455,079 1,471,632 5,926,711 - 343,060 Due in More Than One Year 122,989,574 33,850,119 156,839,693 - 56,227 Total Liabilities 145,912,511 42,742,109 188,654,620 333,986 1,096,350
DEFERRED INFLOWS OF RESOURCES
Lease Related 6,372,546 - 6,372,546 - - Deferred Gain on Refunding - 353,903 353,903 - - OPEB Related Items 3,233,456 809,880 4,043,336 - - Pension Related Items 30,762,737 42,247 30,804,984 - - Total Deferred Inflows of Resources 40,368,739 1,206,030 41,574,769 - -
NET POSITION
Net Investment in Capital Assets 259,609,120 85,967,254 345,576,374 1,433,042 23,402,846 Restricted for:
Public Safety 2,587,910 - 2,587,910 - - Engineering and Public Works 9,418,747 - 9,418,747 - - Development Services 27,071,211 - 27,071,211 - - Community Services 10,009,238 - 10,009,238 - - Unrestricted (50,852,573) 91,632,078 40,779,505 1,140,291 7,511,925 Total Net Position $ 257,843,653 $ 177,599,332 $ 435,442,985 $ 2,573,333 $ 30,914,771 The accompanying notes are an integral part of this statement. 14 Page 163 of 330
City of Upland
Statement of Activities
Year Ended June 30, 2023
Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:
Governmental Activities:
General Government $ 3,048,383 $ 270,918 $ 1,225,679 $ (120,317) Public Safety 29,552,941 1,219,507 2,837,755 695,655 Engineering and Public Works 14,227,015 1,557,226 641,318 6,496,191 Development Services 8,171,072 9,613,043 1,706,729 - Community Services 5,364,573 590,286 1,206,247 - Interest on Long-Term Debt 1,003,034 - - - Total Governmental Activities 61,367,018 13,250,980 7,617,728 7,071,529 Business-type Activities:
Water Utility 21,432,764 32,893,440 - - Solid Waste Utility 17,899,520 17,450,624 74,253 - Sewer Utility 12,136,617 11,601,219 - - Total Business-type Activities 51,468,901 61,945,283 74,253 - Total Primary Government $ 112,835,919 $ 75,196,263 $ 7,691,981 $ 7,071,529 Component Units:
West End Consolidated Water Company $ 697,025 $ 1,118,724 $ - $ - San Antonio Water Company 4,753,273 5,463,340 - - Total Component Units $ 5,450,298 $ 6,582,064 $ - $ - General Revenues:
Taxes:
Property Taxes
Sales Taxes
Franchise Taxes
Transient Occupancy Taxes
Business License Tax
Other Taxes
Motor Vehicle in-lieu
Miscellaneous Revenues
Gain on Sale of Capital Assets
Investment Income
Transfers In/(Out)
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
The accompanying notes are an integral part of this statement. Net Position Ending 15 Page 164 of 330
Net(Expense) Revenue and Changes in Net Position _ Component Units
West End
Consolidated San Antonic
Primary Government Water Company Water Company
Governmental Business-type December 31, December 31, Activities Activities Total 2022 2022
$ (1,672,103) $ - $ (1,672,103) $ - $ - (24,800,024) - (24,800,024) - -
(5,532,280) - (5,532,280) - -
3,148,700 - 3,148,700 - -
(3,568,040) - (3,568,040) - -
(1,003,034) - (1,003,034) - -
(33,426,781) - (33,426,781) - -
11,460,676 11,460,676 - -
-
(374,643) (374,643) - --
-
(535,398) (535,398) - -
-
10,550,635 10,550,635 - -
(33,426,781) 10,550,635 (22,876,146) - -
421,699 -
- 710,067
421,699 710,067
20,342,692 - 20,342,692 - -
21,274,685 - 21,274,685 - -
1,489,329 - 1,489,329 - -
314,441 - 314,441 - -
1,220,003 - 1,220,003 - -
623,172 - 623,172 - -
81,119 - 81,119 - -
94,269 - 94,269 - -
15,000 - 15,000 - -
478,142 1,336,079 1,814,221 - 110,562
45,932,852 1,336,079 47,268,931 - 110,562 12,506,071 11,886,714 24,392,785 421,699 820,629 245,337,582 165,712,618 411,050,200 2,151,634 30,094,142 $ 257,843,653 $ 177,599,332 $ 435,442,985 $ 2,573,333 $ 30,914,771 16 Page 165 of 330
City of Upland
Balance Sheet
Governmental Funds
June 30, 2023
Special Revenue Non-major
General Housing ARPA Governmental Total
ASSETS
Cash and Investments $ 22,095,628 $ 4,854,304 $ 9,952,182 $ 47,917,422 $ 84,819,536 Restricted Cash 5,078,597 200,191 - 2,031,047 7,309,835 Receivables:
Accounts 1,085,516 11,734 - 64,113 1,161,363 Accrued Interest 352,475 - - - 352,475 Notes, net 21,481 4,923,779 - 4,273,617 9,218,877 Leases 6,372,546 - - - 6,372,546
Accrued Interest on Notes - 1,742,507 - 1,277,252 3,019,759 Due from Other Governments 5,507,555 - - 1,850,359 7,357,914 Due from Other Funds 112,973 - - - 112,973 Due from Fiduciary Funds - - - - - Inventory and Prepaid Items 119,423 - - - 119,423 Land Held for Resale - 1,731,389 - - 1,731,389 Total Assets $ 40,746,194 $ 13,463,904 $ 9,952,182 $ 57,413,810 $ 121,576,090
LIABILITIES
Accounts Payable $ 2,639,454 $ 51,397 $ 155,817 $ 471,946 $ 3,318,614 Accrued Salaries and Benefits 602,564 11,952 2,010 39,259 655,785 Due to Other Funds - - - 112,973 112,973 Deposits Payable 1,201,728 203,554 - 2,031,047 3,436,329 Retentions Payable - - - 29,899 29,899 Advances from Other Funds 19,636,746 - - - 19,636,746 Unearned Revenue - - 10,221,798 367,153 10,588,951 Total Liabilities 24,080,492 266,903 10,379,625 3,052,277 37,779,297
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 523,039 1,742,508 - 1,607,705 3,873,252 Lease Related 6,372,546 - - - 6,372,546 Total Deferred Inflows of Resources 6,895,585 1,742,508 - 1,607,705 10,245,798
FUND BALANCE(DEFICITS)
Nonspendable 140,904 - - - 140,904 Restricted 4,014,932 11,454,493 - 52,447,320 67,916,745 Committed 15,048,573 - - - 15,048,573
Assigned - - - 440,421 440,421 Unassigned (9,434,292) - (427,443) (133,913) (9,995,648) Total Fund Balances(Deficits) 9,770,117 11,454,493 (427,443) 52,753,828 73,550,995 Total Liabilities, Deferred Inflows
and Fund Balances(Deficits) $ 40,746,194 $ 13,463,904 $ 9,952,182 $ 57,413,810 $ 121,576,090 The accompanying notes are an integral part of this statement.
City of Upland
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Fund balances of governmental funds $ 73,550,995 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 405,058,266
Accumulated Depreciation (128,809,178) 276,249,088 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 3,873,252
Long term liabilities are not due and payable in the current period and are not reported in the funds.
Compensated Absences (2,199,599)
Multifamily Housing Revenue Note (11,746,651) CREBS Lease Payable (4,302,371)
Energy Efficiency Lease Payable (1,974,264) Net Pension Liability (86,660,255)
Net OPEB Liability (6,875,632)
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 51,077,481 Deferred Inflows Related to Pensions (30,709,875) Deferred Outflows Related to OPEB 1,993,857 Deferred Inflows Related to OPEB (3,024,821) 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. (1,407,552)
Net position of governmental activities $ 257,843,653 The accompanying notes are an integral part of this statement. 18 Page 167 of 330
City of Upland
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
Special Revenue Non-major
General Housing ARPA Governmental Total
REVENUES
Taxes $ 45,322,169 $ - $ - $ 1,580,391 $ 46,902,560 Licenses&Permits 2,776,093 - - 1,281,617 4,057,710 Charges for Services 2,909,017 860 - 74,880 2,984,757 Fines and Penalties 640,866 - - - 640,866 Investment Income 287,127 (11,054) (120,317) 24,264 180,020 Rental Income 691,685 4,846,732 - 45,381 5,583,798 Intergovernmental 147,577 - 3,121,595 9,277,653 12,546,825 Other Revenue 377,637 85,014 - 176,446 639,097 Total Revenues 53,152,171 4,921,552 3,001,278 12,460,632 73,535,633
EXPENDITURES
Current:
General Government 3,721,545 - 1,036,526 - 4,758,071 Public Safety 24,473,670 - 813,514 2,086,510 27,373,694 Engineering and Public Works 8,301,412 - 640,002 3,337,716 12,279,130 Development Services 2,489,937 3,329,767 588,353 1,763,015 8,171,072 Community Services 4,304,519 - 43,200 553,228 4,900,947 Debt Service:
Principal 254,794 655,747 - - 910,541 Interest 629,035 373,999 - - 1,003,034 Total Expenditures 44,174,912 4,359,513 3,121,595 7,740,469 59,396,489 Excess(Deficiency)of Revenues
over Expenditures 8,977,259 562,039 (120,317) 4,720,163 14,139,144
OTHER FINANCING SOURCES(USES)
Transfer In - - - 1,747,052 1,747,052
Transfer Out (2,620,802) - - - (2,620,802) Sale of Capital Assets 15,000 - - - 15,000 Total Other Financing Sources(Uses) (2,605,802) - - 1,747,052 (858,750) Net Change in Fund Balances 6,371,457 562,039 (120,317) 6,467,215 13,280,394 Fund Balances, Beginning 3,398,660 10,892,454 (307,126) 46,286,613 60,270,601 Fund Balances, Ending $ 9,770,117 $ 11,454,493 $ (427,443) $ 52,753,828 $ 73,550,995 The accompanying notes are an integral part of this statement. 9 Page 168 of 330
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, 2023
Net change in fund balances-total governmental funds $ 13,280,394 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 3,636,548
Depreciation Expense (7,864,435)
Loss on Disposal (3,390)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 322,457 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 254,794
Principal Paid on 2021 Multifamily Housing Loan 655,747 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 (218,396)
Net Change in Net Pension Liability (13,868,486) Net Change in Net OPEB Liability 3,403,502
Net Change in Deferred Outflows Pension Related Amounts 819,486 Net Change in Deferred Inflows Pension Related Amounts 13,015,427 Net Change in Deferred Outflows OPEB Related Amounts (520,500) Net Change in Deferred Inflows OPEB Related Amounts (2,209,518) 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. 1,802,441
Change in net position of governmental activities $ 12,506,071 The accompanying notes are an integral part of this statement. 20 Page 169 of 330
City of Upland
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Business-type Activities-Enterprise Funds Activities Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds ASSETS
Current Assets:
Cash and Investments $ 21,468,511 $ 250,713 $ 8,758,176 $ 30,477,400 $ 9,650,584 Accounts Receivable, Net 5,896,017 2,448,999 2,542,512 10,887,528 36,138 Due from Other Governments 192,375 186 245 192,806 - Inventory and Prepaid Items 7,164,237 - - 7,164,237 272,782 Total Current Assets 34,721,140 2,699,898 11,300,933 48,721,971 9,959,504 Noncurrent Assets:
Restricted Cash and Investments 826,671 - 38,672 865,343 - Cash with Fiscal Agent 15,500,914 - - 15,500,914 - Advances to Other Funds 14,905,000 - 4,731,746 19,636,746 - Equity Interest 31,295,927 - - 31,295,927 - Capital Assets, Not Being Depreciated:
Land 2,954,861 - - 2,954,861 -
Construction in Progress 16,337,635 13,742 712,005 17,063,382 10,759 Capital Assets, Net of Accumulated Depreciation 64,421,448 54,702 19,345,643 83,821,793 1,427,981 Total Noncurrent Assets 146,242,456 68,444 24,828,066 171,138,966 1,438,740 Total Assets 180,963,596 2,768,342 36,128,999 219,860,937 11,398,244
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 356,341 55,703 121,801 533,845 137,526 Pension Related Items 770,030 115,386 267,273 1,152,689 1,442,336 Total Deferred Outflows of Resources 1,126,371 171,089 389,074 1,686,534 1,579,862
LIABILITIES
Current Liabilities:
Accounts Payable 2,608,975 1,800,270 1,743,239 6,152,484 411,814 Accrued Salaries and Benefits 65,966 8,213 23,579 97,758 26,466 Accrued Interest Payable 95,499 - - 95,499 - Unearned Revenue - 119,891 - 119,891 - Retentions Payable 67,206 - 22,177 89,383 - Deposits Payable 826,671 - 38,672 865,343 - Current Portion of Long-Term Liabilities:
Claims and Judgments Payable - - - - 2,856,713 Compensated Absences 159,986 25,878 51,768 237,632 54,766 Loans Payable 344,000 - - 344,000 - Revenue Bonds Payable 890,000 - - 890,000 - Total Current Liabilities 5,058,303 1,954,252 1,879,435 8,891,990 3,349,759 Noncurrent Liabilities:
Claims and Judgments Payable - - - - 5,861,139 Net OPEB Liability 1,227,726 192,062 419,963 1,839,751 474,181 Net Pension Liability - - - - 4,366,600 Compensated Absences 170,147 21,661 44,905 236,713 72,482 Loans Payable 11,230,655 - - 11,230,655 - Revenue Bonds Payable 20,543,000 - - 20,543,000 - Total Noncurrent Liabilities 33,171,528 213,723 464,868 33,850,119 10,774,402 Total Liabilities 38,229,831 2,167,975 2,344,303 42,742,109 14,124,161
DEFERRED INFLOWS OF RESOURCES
Deferred Gain on Refunding 353,903 - - 353,903 - OPEB Related Items 540,594 84,506 184,780 809,880 208,635 Pension Related Items 28,222 4,229 9,796 42,247 52,862 Total Deferred Outflows of Resources 922,719 88,735 194,576 1,206,030 261,497
NET POSITION
Net Investment in Capital Assets 65,853,300 56,306 20,057,648 85,967,254 1,438,740 Unrestricted 77,084,117 626,415 13,921,546 91,632,078 (2,846,292) Total Net Position $ 142,937,417 $ 682,721 $ 33,979,194 $ 177,599,332 $ (1,407,552) The accompanying notes are an integral part of this statement. 21 Page 170 of 330
City of Upland
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2023
Governmental
Business-type Activities-Enterprise Funds Activities Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds
OPERATING REVENUES
Charges for Services $ 32,570,384 $ 17,450,624 $ 11,360,920 $ 61,381,928 $ 9,715,719 Licenses and Permits 190,870 - 240,299 431,169 - Other 132,186 - - 132,186 140,385
Total Operating Revenue 32,893,440 17,450,624 11,601,219 61,945,283 9,856,104
OPERATING EXPENSES
Administrative Costs 4,380,093 2,213,802 595,848 7,189,743 - Maintenance and Operations 15,358,962 - 3,619,285 18,978,247 5,486,597 Contractual Services 291,241 15,684,602 7,176,549 23,152,392 305,302 Customer Service 128,931 - - 128,931 - Claims Expense - - - - 2,897,707
Depreciation 2,299,491 1,116 756,185 3,056,792 417,476 Total Operating Expenses 22,458,718 17,899,520 12,147,867 52,506,105 9,107,082 Operating Income(Loss) 10,434,722 (448,896) (546,648) 9,439,178 749,022
NONOPERATING REVENUES(EXPENSES)
Investment Income 910,091 38,428 387,560 1,336,079 138,419 Share of Joint Venture Net Income(loss) 1,480,107 - - 1,480,107 - Gain/(Loss)on Disposal of Capital Assets 5,250 - 11,250 16,500 41,250 Interest Expense (459,403) - - (459,403) - Legal Settlement - - - - -
Intergovernmental - 74,253 - 74,253 - Total Nonoperating Revenues(Expenses) 1,936,045 112,681 398,810 2,447,536 179,669 Income Before Contributions and Transfers 12,370,767 (336,215) (147,838) 11,886,714 928,691 Capital Contributions - - - - -
Transfers In - - 265,000 265,000 873,750 Transfers Out - (265,000) - (265,000) -
Change in Net Position 12,370,767 (601,215) 117,162 11,886,714 1,802,441 Total Net Position, Beginning 130,566,650 1,283,936 33,862,032 165,712,618 (3,209,993) Total Net Position, Ending $142,937,417 $ 682,721 $ 33,979,194 $177,599,332 $ (1,407,552) The accompanying notes are an integral part of this statement. 22 Page 171 of 330
City of Upland
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Governmental
Business-type Activities-Enterprise Funds Activities Water Solid Waste Sewer Internal
Utility Utility Utility Totals Service Funds Cash Flows from Operating Activities
Cash Received from Customers $ 33,388,081 $ 17,295,524 $ 11,238,702 $ 61,922,307 $ - Cash Received from User Departments - - - - 9,857,056 Cash Paid to Suppliers for Goods and Services (17,906,888) (17,184,669) (10,369,819) (45,461,376) (8,350,351) Cash Paid to Employees for Services (3,034,140) (99,272) 245,061 (2,888,351) (1,138,549) Net Cash from Operating Activities 12,447,053 11,583 1,113,944 13,572,580 368,156 Cash Flows from Noncapital Financing Activities
Grant Revenue - 74,253 - 74,253 -
Cash Received from Legal Settlement - - - - 873,750 Cash Paid(to)from Other Funds 845,000 (265,000) 533,254 1,113,254 873,750 Net Cash from Noncapital Financing Activities 845,000 (190,747) 533,254 1,187,507 1,747,500 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (4,865,122) (13,254) (848,156) (5,726,532) (703,169) Proceeds from the Sale of Assets 5,250 - 11,250 16,500 41,250 Proceeds from Loans Issued 10,564,028 - - 10,564,028 - Principal Paid on Debt (1,214,000) - - (1,214,000) - Interest Paid on Debt (420,517) - - (420,517) - Net Cash from Capital and Related Financing Activities 4,069,639 (13,254) (836,906) 3,219,479 (661,919) Cash Flows from Investing Activities
Interest on Investments 910,091 38,428 387,560 1,336,079 138,420 Net Cash from Investing Activities 910,091 38,428 387,560 1,336,079 138,420 Net Increase(Decrease)in Cash and Cash Equivalents 18,271,783 (153,990) 1,197,852 19,315,645 1,592,157 Cash and Cash Equivalents,Beginning of Year 19,524,313 404,703 7,598,996 27,528,012 8,932,177 Cash and Cash Equivalents,End of Year $ 37,796,096 $ 250,713 $ 8,796,848 $ 46,843,657 $ 10,524,334 Reconciliation of Operating Income to Net Cash
Provided(Used)by Operating Activities
Operating income(loss) $ 10,434,722 $ (448,896) $ (546,648) $ 9,439,178 $ 749,022 Adjustments to reconcile operating income(loss)to net
cash provided(used)by operating activities:
Depreciation 2,299,491 1,116 756,185 3,056,792 417,476 (Increase)Decrease in Accounts Receivable 390,454 (255,407) (362,604) (227,557) 952 (Increase)Decrease in Due from Other Governments (192,375) 37 87 (192,251) - (Increase)Decrease in Inventory and Prepaid Items (1,060,933) - - (1,060,933) 32,187 (Increase)Decrease in Deferred Outflows-Pensions 9,454,923 1,587,577 4,806,562 15,849,062 (1,012,398) (Increase)Decrease in Deferred Outflows-OPEB 88,095 (2,611) 42,150 127,634 25,757 Increase(Decrease)in Accounts Payable (289,625) 112,754 157,991 (18,880) 249,189 Increase(Decrease)in Accrued Salaries and Benefits 17,130 1,793 9,516 28,439 6,575 Increase(Decrease)in Retention Payable (10,473) - 3,003 (7,470) - Increase(Decrease)in Deposits Payable 296,562 - - 296,562 - Increase(Decrease)in Compensated Absences 50,798 8,655 4,563 64,016 (6,593) Increase(Decrease)in Net Pension Liability (6,456,636) (830,261) (2,656,265) (9,943,162) 1,918,613 Increase(Decrease)in Net OPEB Liability (589,211) (24,987) (250,297) (864,495) (193,347) Increase(Decrease)in Deferred Inflows-Pensions (2,382,351) (305,747) (981,916) (3,670,014) (861,089) Increase(Decrease)in Deferred Inflows-OPEB 396,482 67,290 131,617 595,389 155,689 Increase(Decrease)in Unearned Revenue - 100,270 - 100,270 - Increase(Decrease)in Claims and Judgments - - - - (1,113,877) Net Cash Provided(Used)by Operating Activities $ 12,447,053 $ 11,583 $ 1,113,944 $ 13,572,580 $ 368,156 The accompanying notes are an integral part of this statement. 23 Page 172 of 330
City of Upland
Statement of Net Position
Fiduciary Funds
June 30, 2023
Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds
ASSETS
Cash and Investments $ - $ 968,326 $ 6,017,883 Cash and Investments with Fiscal Agent - 2,256,162 17,726,846 Investments:
Moderate Index PLUS 1,780,155 - - Notes Receivable,Net - 202,383 -
Land Held for Resale 3,358,000 44,653
Total Assets 1,780,155 6,784,871 23,789,382
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 111,497 -
LIABILITIES
Accounts Payable - 2,000 1,469,463
Accrued Salaries and Wages - 308,024 - Deposits Payable - - 4,010,318
Interest Payable - 190,592 -
Bonds Payable - 14,892,673 -
Total Liabilities - 15,393,289 5,479,781
NET POSITION
Restricted for:
OPEB 1,780,155 - -
Successor Agency - (8,496,921) -
Individuals and Organizations - - 18,309,601 $ 1,780,155 $ (8,496,921) $ 18,309,601
The accompanying notes are an integral part of this statement. 24 Page 173 of 330
City of Upland
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2023
Successor
Agency
OPEB Private-purpose Custodial
Trust Fund Trust Fund Funds
ADDITIONS
Contributions:
Taxes and assessments collected for others $ - $ 1,141,529 $ 6,985,909 Contributions from Bondholders - - 4,161,514 Investment Earnings:
Interest Income 133,943 117 7,878
Total Additions 133,943 1,141,646 11,155,301
DEDUCTIONS
General and Administrative - - 6,403,177 Development Services - 202,660 -
Recipient Payments - - 176,173
Distributions to Shareholders - - 3,875,851 Interest Expense - 372,753 -
Other Expenses 9,815 - -
Total Deductions 9,815 575,413 10,455,201 Change in Net Position 124,128 566,233 700,100 Net Position - Beginning of Year 1,656,027 (9,063,154) 17,609,501 Net Position - End of Year $ 1,780,155 $ (8,496,921) $ 18,309,601 The accompanying notes are an integral part of this statement. 25 Page 174 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023, 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. 26 Page 175 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023, 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:
West End Consolidated Water Company San Antonio Water Company 460 N. Euclid Avenue 139 N. Euclid Avenue
Upland, CA 91785 Upland, CA 91786
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. 27 Page 176 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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.
28 Page 177 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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.
29 Page 178 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, West End, 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. 30 Page 179 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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:
Property Tax Calendar County Remittance Dates and Percentages 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
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.
31 Page 180 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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:
Governmental Activities Business-type Activities 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 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. 32 Page 181 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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 (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. 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, 2022 Measurement Date; and July 1, 2021 through June 30, 2022 Measurement Period. 0) 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:
33 Page 182 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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.
34 Page 183 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023 are classified in the accompanying financial statements as follows:
Government-wide
Statement of Net Position
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments $ 94,470,120 $ 30,477,400 $ 6,986,209 $ 131,933,729 Restricted Cash and Investments 7,309,835 865,343 1,780,155 9,955,333 Cash and Investments with Fiscal Agent - 15,500,914 19,983,008 35,483,922 Total Cash and Investments $ 101,779,955 $ 46,843,657 $ 28,749,372 $ 177,372,984 35 Page 184 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS—Continued
Cash and investments as of June 30, 2023 consist of the following:
Cash on Hand $ 12,800
Deposits with Financial Institutions 20,192,293
Investments 157,167,891
Total Cash and Investments $ 177,372,984
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.
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 collateralizec 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 California Asset Management Program (CAMP) N/A None None Local Agency Investment Fund (LAIF) N/A None None Supranational Securities 5 years 30% 10% *Based on state law requirements or investment policy requirements,whichever is more restrictive.
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. 36 Page 185 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS—Continued
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
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:
Remaining Maturity (in Months)
12 Months 13 to 36 37 to 60 More than
Investment Type Total Or Less Months Months 60 Months US Treasury Obligations $ 2,561,857 $ 991,540 $ 1,352,055 $ 218,262 $ U.S. Government Agency Securities 58,931,606 7,585,406 37,470,056 13,876,144 CAMP 25,098,674 25,098,674 - -
Certificates of Deposit 19,841,581 4,361,062 11,544,678 3,935,841 Municipal Obligations 1,532,380 - 1,308,970 223,410 Money Market Mutual Funds 8,751,029 8,751,029 - - Local Agency Investment Fund (LAIF) 4,966,842 4,966,842 - - Mutual Funds 15,500,914 15,500,914 - - Held by Fiscal Agent
Money Market Mutual Funds 19,983,008 19,983,008 - - Total Pooled Investments $ 157,167,891 $ 87,238,475 $ 51,675,759 $ 18,253,657 $ 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. 37 Page 186 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS—Continued
Minimum Exempt from
Investment Type Total Legal Rating Aaa Aaa3-Aa1 Al,A2,A3 Not Rated Rating US Treasury Obligations $ 2,561,857 N/A $ 2,561,857 $ - $ - $ - $ U.S.Government Agency Securities 58,931,606 N/A 58,931,606 - - - CAMP 25,098,674 N/A - - - 25,098,674 Certificates of Deposit 19,841,581 N/A - - - 19,841,581 Municipal Obligations 1,532,380 N/A - 1,532,380 - - Money Market Mutual Funds 8,751,029 A 8,751,029 - - - Local Agency Investment Fund(LAIF) 4,966,842 N/A - - - 4,966,842 Mutual Funds 15,500,914 A 15,500,914 - - - Held by Fiscal Agent
Money Market Mutual Funds 19,983,008 A 19,983,008 - - - Total Pooled Investments $157,167,891 $105,728,414 $ 1,532,380 $ - $49,907,097 $ 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, 2023, the City's investments with each of the following issuers exceed 5% of its total investments.
Reported
Issuer Investment Type Amount Maturity Interest (%) FFCB Federal Agency Securities $ 8,526,364 2023-2026 .280 - 1.17 FHLB Federal Agency Securities 32,753,296 2023-2028 .200 -5.47 FHLMC Federal Agency Securities 13,544,687 2024-2027 .300 -5.40 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.
CAMP
The City also participates in the California Asset Management Program (CAMP), a California Joint Powers 38 Page 187 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
2) CASH AND INVESTMENTS—Continued
Authority(JPA)established in 1989 to provide California public agencies with professional investment services.
The CAMP investment pool is permitted for all local agencies under California Government Code Section 53601(p).
Based upon the fair value measurements described in Note 1, the City held the following investments as of June 30, 2023:
Fair Value Hierarchy
Investment Type Total Level 1 Level 2 Level 3 US Treasury Obligations $ 2,561,857 $ 2,561,857 $ - $ - U.S. Government Agency Securities 58,931,606 - 58,931,606 - Medium-term Notes 25,098,674 - 25,098,674 - Certificates of Deposit 19,841,581 - 19,841,581 Municipal Obligations 1,532,380 - 1,532,380 - Total $107,966,098 $ 2,561,857 $105,404,241 $ - 3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Due to/from - As of June 30, 2023, the General Fund has an outstanding receivable from non-major governmental funds of $112,973 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, 2023 are as follows:
TRANSFERS IN
Nonmajor Internal
Governmental Sewer Utility Service
TRANSFERS OUT Funds Fund Funds Total
General Fund $ 1,747,052 $ - $ 873,750 $2,620,802 Solid Waste Fund - 265,000 - 265,000
$ 1,747,052 $ 265,000 $ 873,750 $2,885,802
The General Fund transferred $1,747,052 to the nonmajor governmental funds to fund projects. In addition, the General Fund transferred $873,750 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 as described in the agreement 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. The amount due to the Water and Sewer Enterprise Funds is $14,905,000 and $4,731,746, respectively, as of June 30, 2023. 39 Page 188 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
4) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023 is as follows:
Beginning Ending
Governmental Activities: Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land $ 5,053,610 $ - $ (160) $ 5,053,450 Rights of Way 103,432,811 - - 103,432,811 Street Trees 3,537,384 - - 3,537,384 Construction in Progress 1,721,324 1,946,465 (1,186,503) 2,481,286 Total Capital Assets, Not
Being Depreciated 113,745,129 1,946,465 (1,186,663) 114,504,931 Capital Assets Being Depreciated:
Building and improvements 43,905,472 551,008 (3,230) 44,453,250 Land Improvements 5,680,955 - - 5,680,955 Park Improvements 12,370,161 - - 12,370,161 Equipment 7,868,259 1,503,895 (301,939) 9,070,215 Vehicles 4,515,731 550,440 (178,789) 4,887,382 Infrastructure - Bridge 4,081,500 - - 4,081,500 Infrastructure- Street System 188,475,969 974,410 - 189,450,379 Infrastructure - Storm Drains 25,287,770 - - 25,287,770 Total Capital Assets Being
Depreciated 292,185,817 3,579,753 (483,958) 295,281,612 Less Accumulated Depreciation:
Building and improvements (15,386,187) (850,976) - (16,237,163) Land Improvements (774,435) (486,726) - (1,261,161) Park Improvements (7,766,567) (396,587) - (8,163,154) Equipment (5,911,364) (757,826) 301,939 (6,367,251) Vehicles (2,938,074) (582,335) 178,789 (3,341,620) Infrastructure - Bridge (163,260) (81,630) (244,890) Infrastructure - Street System (86,183,463) (4,872,952) - (91,056,415) Infrastructure - Storm Drains (5,174,183) (252,878) - (5,427,061) Total Accumulated Depreciation (124,297,533) (8,281,910) 480,728 (132,098,715) Total Capital Assets Being
Depreciated, Net 167,888,284 (4,702,157) (3,230) 163,182,897 Governmental Activities, Capital Assets, Ne $ 281,633,413 $ (2,755,692) $ (1,189,893) $ 277,687,828 Depreciation expense was charged to the following functions for governmental activities in the Statement of Activities:
General Government $ 1,365,642
Public Safety 871,599
Engineering and Public Works 5,581,043
Community Services 463,626
$ 8,281,910
40 Page 189 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
4) CAPITAL ASSETS—Continued
Beginning Ending
Business Type Activities: Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land $ 2,954,861 $ - $ - $ 2,954,861 Construction in Progress 12,904,585 4,698,422 (539,625) 17,063,382 Total Capital Assets, Not
Being Depreciated 15,859,446 4,698,422 (539,625) 20,018,243 Capital Assets Being Depreciated:
Pipelines 69,790,120 - - 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 2,784,068 226,030 (3,000) 3,007,098 Machinery and Equipment 1,752,019 384,366 - 2,136,385 Vehicles 3,093,916 957,339 (45,670) 4,005,585 Total Capital Assets Being
Depreciated 135,312,393 1,567,735 (48,670) 136,831,458 Less Accumulated Depreciation:
Pipelines (19,962,266) (1,406,570) - (21,368,836) Reservoirs (15,241,216) (738,483) - (15,979,699) Land Improvements (3,948) (2,103) - (6,051) Treatment Facilities (7,418,648) (290,999) - (7,709,647) Wells/pumps (1,809,475) (105,253) - (1,914,728) Sewer Manholes (2,187,939) (31,116) 3,000 (2,216,055) Machinery and Equipment (1,298,262) (142,679) - (1,440,941) Vehicles (2,079,789) (339,589) 45,670 (2,373,708) Total Accumulated Depreciation (50,001,543) (3,056,792) 48,670 (53,009,665) Total Capital Assets Being
Depreciated, Net 85,310,850 (1,489,057) - 83,821,793 Business Activities, Capital Assets, Net $ 101,170,296 $ 3,209,365 $ (539,625) $ 103,840,036 Depreciation expense was charged to the following programs for business-type activities in the Statement of Activities:
Water Utility $ 2,299,491
Solid Waste Utility 1,116
Sewer Utility 756,185
$ 3,056,792
41 Page 190 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM LIABILITIES
Changes in long-term liabilities for governmental activities are as follows:
Beginning Ending Due in
Balance Additions Deletions Balance one year
Governmental Activities
Compensated Absences Payable $ 2,115,044 $ 1,434,886 $ 1,223,083 $ 2,326,847 $ 1,125,344 Net OPEB Liability 10,946,662 - 3,596,849 7,349,813 Net Pension Liability 75,239,756 15,787,099 - 91,026,855 - Claims Payable 9,831,729 659,066 1,772,943 8,717,852 2,382,349 Loans from Direct Borrowings:
2021 Multifamily Housing Loan 12,402,398 - 655,747 11,746,651 676,299 Energy Efficiency Lease 2,145,401 - 171,137 1,974,264 172,741 CREBS Lease Agreement 4,386,028 - 83,657 4,302,371 98,346 Total Direct Borrowings 18,933,827 - 910,541 18,023,286 947,386 Total Government Activities $ 117,067,018 $ 17,881,051 $ 7,503,416 $ 127,444,653 $ 4,455,079 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:
42 Page 191 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM LIABILITIES—Continued
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 676,299 $ 353,447 $ 1,029,746 2025 697,495 332,251 1,029,746
2026 719,356 310,390 1,029,746
2027 741,901 287,845 1,029,746
2028 765,153 264,592 1,029,745
2029-2033 4,200,871 947,857 5,148,728
2034-2038 3,945,576 259,221 4,204,797
Totals $ 11,746,651 $ 2,755,603 $ 14,502,254
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, 2023 are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
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 200,307 51,879 252,186
2029-2033 1,049,822 118,318 1,168,140
Totals $ 1,974,264 $ 457,676 $ 2,431,940 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, 2023 are as follows:
43 Page 192 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM LIABILITIES-Continued
Fiscal Year Ending
June 30, Principal Interest Total
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 167,479 130,475 297,954
2029-2033 1,237,704 548,127 1,785,831
2034-2038 2,405,570 218,936 2,624,506
Totals $ 4,302,371 $ 1,466,366 $ 5,768,737
Changes in long-term liabilities for business-type activities are as follows:
Beginning Ending Due in
Balance Additions Deletions Balance one year
Business-type Activities
Compensated absences payable $ 410,329 $ 307,560 $ 243,544 $ 474,345 $ 237,632 Net OPEB Liability 2,704,246 - 864,495 1,839,751 Net Pension Liability 9,943,162 - 9,943,162 - 2022 Water Revenue Bonds 15,750,000 - 845,000 14,905,000 865,000 2021 Water Refunding Bonds 6,553,000 - 25,000 6,528,000 25,000 Loans from Direct Borrowings:
SAWCO Loan 688,000 - 344,000 344,000 344,000 SWRCB Loan 666,627 10,564,028 - 11,230,655 Total Direct Borrowings 1,354,627 10,564,028 344,000 11,574,655 344,000 Total Business-type Activities $ 36,715,364 $ 10,871,588 $ 12,265,201 $ 35,321,751 $ 1,471,632 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. Principal and interest payments on the bonds for the 2022-23 fiscal year totaled $1,141,808. 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:
44 Page 193 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
5) LONG-TERM LIABILITIES-Continued
Fiscal Year Ending
June 30, Principal Interest Total
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 935,000 208,848 1,143,848
2029-2033 4,955,000 765,168 5,720,168
2034-2038 5,455,000 265,872 5,720,872
Totals $ 14,905,000 $ 2,249,520 $ 17,154,520
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.
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. Principal and interest payments on the bonds for the 2022-23 fiscal year totaled $123,108. 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
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 642,000 65,505 707,505
2029-2033 3,348,000 179,280 3,527,280
2034 698,000 5,235 703,235
Totals $ 6,528,000 $ 600,645 $ 7,128,645 45 Page 194 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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:
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 344,000 $ 6,467 $ 350,467
Totals $ 344,000 $ 6,467 $ 350,467
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, 2023, the City has drawn down $11,230,655 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. 46 Page 195 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
6) OTHER POST EMPLOYMENT BENEFITS—Continued
Monthly City Contribution
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
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:
Retirees or spouses of retirees currently receiving benefits 223 Active employees 200
Total 423
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, 2023, the City's pay-as-you-go costs were $873,479. 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, 2022 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:
Valuation Date June 30,2021
Actuarial Cost Method Entry Age Actuarial Cost
Mortality 2017 CaIPERS Experience Study
Age at Retirement Varies,50 to 75
Health Care Trend Rate 5.80% initial,3.9% ultimate
Inflation Rate 2.50%
SalaryChanges 3.00%
Discount Rate 5.60%
Asset Return 5.64%
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, 2023 are summarized in the following table:
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%
47 Page 196 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
6) OTHER POST EMPLOYMENT BENEFITS—Continued
Discount Rate—The discount rate of 5.60% is a blended rate between the rate of return of 5.64% and 3.54%, the resulting rate using the Bond Buyer 20-Bond GO index.
Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2022 (2021 Measurement Date) $ 15,265,518 $ 1,614,610 $ 13,650,908 Changes in the year:
Service cost 212,380 - 212,380
Interest on the total OPEB liability 346,877 - 346,877 Employer contributions - 1,019,544 (1,019,544) Actual investment income - 97,199 (97,199) Differences between expected and actual experience - - - Changes of assumptions (4,186,640) - (4,186,640) Administrative Expense - (9,461) 9,461 Benefit payments, including refunds (792,544) (792,544) - Investment Experience - (273,321) 273,321 Net changes (4,419,927) 41,417 (4,461,344) Balance at June 30, 2023 (2022 Measurement Date) $ 10,845,591 $ 1,656,027 $ 9,189,564 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:
1% Decrease Discount Rate 1% Increase
(4.60%) (5.60%) (6.60%)
Net OPEB liability (asset) $ 10,218,991 $ 9,189,564 $ 8,320,187 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:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Net OPEB liability (asset) $ 8,582,812 $ 9,189,564 $ 9,907,455 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. 48 Page 197 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
6) OTHER POST EMPLOYMENT BENEFITS—Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of$46,622. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date $ 873,479 $ - Changes of Assumptions 1,120,836 3,549,027
Net differences between expected
and actual experience 540,956 494,309
Net differences between projected and actual
earnings on plan investments 129,957 -
Total $ 2,665,228 $ 4,043,336
The $873,479 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Year Ending
June 30,
2024 $ (426,584)
2025 (329,498)
2026 (425,814)
2027 (621,121)
2028 (448,570)
Thereafter -
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. In February of 2016, the City entered into an agreement with a local automobile dealership in order to entice the dealership to remain in the City of Upland and convert vacant property into sales tax generating uses. Enhancing the property for vehicle sales and servicing would require the owner to invest a substantial amount of money. In consideration of the owner's commitment to utilize the property for sales tax generating uses and substantial financial commitment incurred to improve the property, the City will reimburse the owner a maximum of$2,700,000 by way of an annual tax abatement. Seventy-five percent (75%) of annual sales tax revenue exceeding $312,000 will be paid to the owner until reaching the maximum. The total sales tax abated to both companies for the fiscal year ended June 30,2023 was $1,073,170.
49 Page 198 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023 is $66,420,000. 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 $20M in aggregate and $5M per occurrence. MIC provides coverage in excess of the City's self-insured retention of $2M. Excess general liability coverage is also obtained through excess carriers up to $15M in limits. Homesite Insurance Company provides $5M of first layer excess which excludes Law Enforcement Liability. Lexington Insurance Company also provides$5M of first layer excess specific for Law Enforcement Liability. HDI Global Specialty SE provides $5M excess $5M for the second layer of excess over both Homesite and Lexington. Lastly, Illinois Union Insurance Company provides $5M excess $10M for the third layer providing the total of$15M in limits.
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 Company covering up to statutory limits under California Workers' Compensation law. Additionally, the City purchases a buffer layer policy to reduce the$1M retention to $500K covering occupation injuries and employer's liability insurance provided by Response Indemnity Company of CA.
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, 2023, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to$8,717,852.
Changes in the claims and judgments payable amounts in fiscal years ended June 30, 2022 and 2023 for the Self-funded Insurance Fund are as follows:
Claims and
Year Ended Beginning Changes in Claim End
June 30, of Year Estimates Payments of Year
2023 $ 9,831,729 $ 659,066 $ 1,772,943 $ 8,717,852 2022 9,747,449 1,106,860 1,022,580 9,831,729
50 Page 199 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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 (CaIPERS), 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. CaIPERS 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 CaIPERS website: www.calpers.ca.gov Benefits Provided: The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees' Retirement System (CaIPERS). 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, 2021 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 CaIPERS' audited financial statements are publicly available reports that can be obtained at CaIPERS' website.
The Plans' provisions that are in effect at June 30, 2023, are summarized as follows:
Miscellaneous
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 10.96% + $2,711,066 7.25% Employees Covered: At June 30, 2023,the following number of employees were covered by the benefit terms for the Plan:
Miscellaneous
Inactive employees or beneficiaries
currently receiving benfits 432
Inactive employees entitled to but not yet
receiving benefits 283
Active employees 147
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 CaIPERS' 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 51 Page 200 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
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.
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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions: The total pension liabilities in the June 30,2021 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
(1)Depending on age,service and type of employment
(2)Derived using CaIPERS' Membership Data for all Funds.
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.
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, CaIPERS 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 52 Page 201 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
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:
New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity -Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1)An expected inflation of 2.3% used for this period.
(2) Figures are based on the 2021 Asset Liability Management study.
Discount Rate — The discount rate used to measure the total pension liability for PERF C was 6.90%. 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.
Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan are as follows:
Increase(Decrease)
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 $ 141,721,717 $ 113,190,402 $ 28,531,315 Changes in the year:
Service cost 1,851,762 - 1,851,762
Interest on the total pension liability 9,769,936 - 9,769,936 Differences between expected and actual experience (910,990) - (910,990) Changes in assumptions 4,234,238 - 4,234,238 Contributions from the employer - 19,650,167 (19,650,167) Contributions from employees - 830,404 (830,404) Net investment income - (9,064,780) 9,064,780 Benefit payments, including refunds (8,755,121) (8,755,121) - Administrative/other expense - (70,511) 70,511 Net changes 6,189,825 2,590,159 3,599,666 Balance at June 30, 2022 $ 147,911,542 $ 115,780,561 $ 32,130,981 53 Page 202 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
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 6.90 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(5.90 percent) or 1 percentage-point higher(7.90 percent)than the current rate:
Miscellaneous
1% Decrease 5.90%
Net Pension Liability $ 50,992,195
Current Discount Rate 6.90%
Net Pension Liability $ 32,130,981
1% Increase 7.90%
Net Pension Liability $ 16,598,831
Pension Plan Fiduciary Net Position: Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of$5,682,079 for the Miscellaneous Plan. At June 30, 2023, the City reported deferred outflows and deferred inflows for the Miscellaneous Plan from the following sources:
Miscellaneous
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 3,898,487 $ - Differences between actual and expected experience - 431,522 Changes in assumptions 2,005,692 Net differences between projected and actual earnings on plan investments 5,869,989 -
Total $ 11,774,168 $ 431,522
$3,898,487 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, 2024. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Year Ending
June 30, Amount
2024 $ 2,569,666
2025 906,360
2026 514,068
2027 3,454,065
2028 -
Thereafter -
54 Page 203 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
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 (CaIPERS.) 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. CaIPERS 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 CaIPERS 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(CaIPERS).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, 2021 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2021 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CaIPERS' website under Forms and Publications.
The rate plan provisions and benefits in effect at June 30, 2023, are summarized as follows:
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 21.03% + $4,075,799 16.81% + $33,035 (1)- Depending on years of service
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 CaIPERS. 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, CaIPERS 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 $4,108,834 in fiscal year 2023. The City's contributions to the Plan for the year ended June 30, 2023 were $5,465,572.
55 Page 204 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a liability of$58,895,874 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, 2022, 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, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension 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, 2022 and 2023 (2021 and 2022 measurement date)was as follows:
Proportion -June 30, 2022 1.61424%
Proportion -June 30, 2023 0.85709%
Change - Increase (Decrease) -0.75715%
For the year ended June 30, 2023, the City recognized pension expense of$16,697,470. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to the Safety pension plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 5,465,572 $ - Differences between actual and expected experience 2,437,486 639,563 Changes in assumptions 5,938,487 -
Change in employer's proportion and differences 7,342 28,439,605 Differences between the employer's contributions and
the employer's proportionate share of contributions 18,748,969 1,294,294 Net differences between projected and actual
earnings on plan investments 9,300,482 -
Total $ 41,898,338 $ 30,373,462 The $5,465,572 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, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending
June 30, Amount
2024 $ 521,840
2025 8,026
2026 (143,975)
2027 5,673,413
2028 -
Thereafter -
56 Page 205 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
Actuarial Assumptions—The total pension liabilities in the June 30,2021 actuarial valuations were determined using the following actuarial assumptions:
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Payroll growth 3.00%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
(1)Depends on entry age,service and type of employment
(2)Derived using CaIPERS' Membership Data for all Funds.
The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website.
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, CaIPERS 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:
57 Page 206 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
10) PENSION PLANS—Continued
New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity -Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21
Leverage -5% -0.59%
(1)An expected inflation of 2.3% used for this period.
(2) Figures are based on the 2021 Asset Liability Management study.
Discount Rate — The discount rate used to measure the total pension liability for PERF C was 6.90%. 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.
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:
1% Decrease 5.90%
Net Pension Liability $ 91,941,006
Current Discount Rate 6.90%
Net Pension Liability $ 58,895,874
1% Increase 7.90%
Net Pension Liability $ 31,888,945
Pension Plan Fiduciary Net Position — Detailed information about the Plan's fiduciary net position is available in the separately issued CaIPERS financial reports.
Payable to the Pension Plan - At June 30, 2023, the City reported no payables to the pension plan, for outstanding contributions required for the year ended June 30, 2023.
The total pension expense for the miscellaneous and safety plan was$22,379,549. 58 Page 207 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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, 2023 and the gain (loss)on the investment for the year then ended:
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% $ 30,914,771 $ 21,853,652 $ 580,102 West End Water Company 91.18% 2,573,333 2,346,365 384,505 Water Facilities Authority 23% 30,851,783 7,095,910 515,500 Total $ 31,295,927 $ 1,480,107
12) SUCCESSOR AGENCY ACTIVITIES
Changes in long-term liabilities for the Successor Agency are as follows:
Beginning Ending Due in
Balance Additions Retirements Balance one year
Fiduciary Fund Long-term Debt
2013 Tax Allocation Bonds $ 4,690,000 $ - $ 2,290,000 $ 2,400,000 $ 2,400,000 2016 Tax Allocation Bonds 11,400,000 - 190,000 11,210,000 205,000 Unamortized Premium 1,574,369 - 291,698 1,282,671 Total Fiduciary Fund Debt $ 17,664,369 $ - $ 2,771,698 $ 14,892,671 $ 2,605,000 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 59 Page 208 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
12)SUCCESSOR AGENCY ACTIVITIES—Continued
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:
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 2,400,000 $ 60,000 $ 2,460,000
Totals $ 2,400,000 $ 60,000 $ 2,460,000 2016 Tax Allocation Refunding Bonds
On September 14, 2016, the Successor Agency of the former Upland Community 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:
Fiscal Year Ending
June 30, Principal Interest Total
2024 $ 205,000 $ 450,787 $ 655,787 2025 2,395,000 386,813 2,781,813
2026 2,530,000 263,888 2,793,888
2027 970,000 181,037 1,151,037
2028 1,015,000 136,263 1,151,263
2029-2033 2,100,000 424,975 2,524,975
2034-2037 1,995,000 111,582 2,106,582
Totals $ 11,210,000 $ 1,955,345 $ 13,165,345 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.
60 Page 209 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
13) CONTINGENT RECEIVABLE -Continued
Revenues are recognized by the City when both eligible expenditures have been incurred and annual funding allocations are approved by SBCTA. At June 30, 2023, 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, 2023. Of this amount, $1,807,920 was received in prior years and $213,810 remained outstanding as of June 30, 2023. Future reimbursements are expected to coincide with annual tax revenue generated under the Measure I program for arterial transportation projects.
14) FUND BALANCE
The City's governmental fund balances at June 30, 2023, are presented below:
Total Non-major Total
General Housing ARPA Governmental Governmental Fund Fund Fund Funds Funds
Nonspendable:
Inventory and Prepaid Items $ 119,423 $ - $ - $ - $ 119,423 Long-term Notes Receivable 21,481 - - - 21,481 Restricted:
Disability Access 138,063 - - - 138,063 Section 115 Pension Trust 3,876,869 - - - 3,876,869 Low and Moderate Income Housing - 11,454,493 - 7,074,962 18,529,455 Public Safety - - - 2,918,821 2,918,821 Street Maintenance - - - 19,383,957 19,383,957 Air Pollution Reduction Measures - - - 290,225 290,225 Downtown Parking& Business Improvement - - - 292,866 292,866 Underground Utilities - - - 2,581,891 2,581,891 Capital Improvements - - - 2,232,339 2,232,339 Park Acquisition and Development - - - 10,045,431 10,045,431 Storm Drain - - - 5,312,308 5,312,308 Street and Traffic Safety - - - 1,309,070 1,309,070 Street and Alley Repair - - - 1,005,450 1,005,450 Committed to:
Economic Uncertainty Reserve 12,400,000 - - - 12,400,000 Emergency Contingency 1,000,000 - - - 1,000,000 General Plan Update 552,395 - - - 552,395 Memorial Park Improvements 140,000 - - - 140,000 Legal/Labor Negotiations 450,000 - - - 450,000 Pensions 403,163 - - - 403,163
OPEB 50,395 - - - 50,395
Continuinng Appropriations 52,620 - - - 52,620 Assigned:
General Capital Improvements - - - 440,421 440,421 Unassigned (9,434,292) - (427,443) (133,913) (9,995,648) Total Fund Balance $ 9,770,117 $ 11,454,493 $ (427,443) $ 52,753,828 $ 73,550,995 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$2,020,872 and Building Maintenance Improvements totaling $1,500,086 but have been eliminated to offset the deficit unassigned fund balance. 61 Page 210 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
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.
The City had approximately$3,622,590 in outstanding construction contract obligations as of June 30, 2023.
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(Yo 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) 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 $95,337. The City recognized $573,804 in lease revenue and $277,216 in interest revenue during the current fiscal year related to the various leases. As of June 30, 2023, the City's receivable for lease payments was $6,372,546. 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, 2023, the balance of the deferred inflow of resources was $6,372,546. 62 Page 211 of 330
City of Upland
Notes to Financial Statements
Year Ended June 30, 2023
18) 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, 2022, 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: 980,494 32,453 - 1,012,947 Net Capital Assets Being Depreciated 937,172 (32,453) - 904,719 West End, Capital Assets, Net $ 1,433,042 $ (32,453) $ - $ 1,400,589 San Antonio Water Company
Capital assets activity for the San Antonio Water Company for the year ended December 31,2022,was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated:
Land and Water Rights $ 920,161 $ - $ - $ 920,161 Construction in Progress 2,211,330 102,519 829,622 1,484,227 Total Capital Assets, Not Depreciated 3,131,491 102,519 829,622 2,404,388 Capital Assets Being Depreciated:
Tunnels and Forebay 1,587,111 - - 1,587,111 Wells, Shafts, Building 4,910,920 - - 4,910,920 Pipelines 18,532,025 696,735 - 19,228,760 Boosters 2,500,593 - - 2,500,593 Reservoirs 3,081,787 - - 3,081,787 All Other 4,755,237 211,322 4,033 4,962,526 Total Capital Assets Being Depreciated 35,367,673 908,057 4,033 36,271,697 Less Accumulated Depreciation: 15,096,318 1,015,651 (4,033) 16,107,936 Net Capital Assets Being Depreciated 20,271,355 (107,594) - 20,163,761 San Antonio, Capital Assets, Net $ 23,402,846 $ (5,075) $ 829,622 $ 22,568,149 63 Page 212 of 330
REQUIRED SUPPLEMENTARY INFORMATION
64 Page 213 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property Taxes $ 19,177,650 $ 20,894,081 $ 20,400,537 $ (493,544) Business License Taxes 1,100,000 1,075,000 1,220,003 145,003 Sales and Use Tax 18,404,120 20,243,730 21,274,685 1,030,955 Franchise Tax 1,284,520 1,284,520 1,489,329 204,809 Other 828,000 864,000 937,615 73,615 Licenses and Permits 1,681,570 1,854,570 2,776,093 921,523 Charges for Services 2,459,510 2,634,590 2,909,017 274,427 Fines and Penalties 565,830 530,330 640,866 110,536 Investment Income 110,000 110,000 287,127 177,127 Rental Income 847,030 850,450 691,685 (158,765) Intergovernmental 128,000 158,000 147,577 (10,423) Other Revenue 146,510 170,960 377,637 206,677 Total Revenues 46,732,740 50,670,231 53,152,171 2,481,940
EXPENDITURES
Current:
General Government 4,362,080 2,935,195 3,721,545 (786,350) Public Safety 26,995,010 27,195,255 24,473,670 2,721,585 Engineering and Public Works 8,649,390 9,152,090 8,301,412 850,678 Development Services 2,603,510 2,780,810 2,489,937 290,873 Community Services 4,069,950 4,410,190 4,304,519 105,671 Debt Service:
Principal 1,368,080 1,368,080 254,794 1,113,286 Interest and Fiscal Charges 759,260 759,260 629,035 130,225 Total Expenditures 48,807,280 48,600,880 44,174,912 4,425,968 Excess (Deficiency)of Revenues
over Expenditures (2,074,540) 2,069,351 8,977,259 6,907,908
OTHER FINANCING SOURCES (USES)
Transfers In 2,444,620 - - -
Transfers Out (240,000) (2,620,802) (2,620,802) - Sale of Capital Assets - - 15,000 15,000 Total Other Financing Sources (Uses) 2,204,620 (2,620,802) (2,605,802) 15,000 Net Change in Fund Balances 130,080 (551,451) 6,371,457 6,922,908 Fund Balances, Beginning 3,398,660 3,398,660 3,398,660 - Fund Balances, Ending $ 3,528,740 $ 2,847,209 $ 9,770,117 $ 6,922,908 65 Page 214 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Housing Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ - $ - $ 860 $ 860 Investment Income 15,000 15,000 (11,054) (26,054) Rental Income 4,600,000 4,600,000 4,846,732 246,732 Other Revenue 198,280 198,280 85,014 (113,266) Total Revenues 4,813,280 4,813,280 4,921,552 108,272
EXPENDITURES
Current:
Development Services 2,952,690 2,952,690 3,329,767 (377,077) Debt Service:
Principal 654,065 654,065 655,747 (1,682) Interest& Fiscal Charges 375,685 375,685 373,999 1,686 Issuance Costs - - -
Total Expenditures 3,982,440 3,982,440 4,359,513 (377,073) Excess (Deficiency)of Revenues
over Expenditures 830,840 830,840 562,039 (268,801)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Issuance of Debt - - - -
Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance 830,840 830,840 562,039 (268,801) Fund Balance, Beginning 10,892,454 10,892,454 10,892,454 - Fund Balance, Ending $ 11,723,294 $ 11,723,294 $ 11,454,493 $ (268,801) 66 Page 215 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual -ARPA Special Revenue Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Income $ 35,000 $ 35,000 $ (120,317) $ (155,317) Intergovernmental 198,280 198,280 3,121,595 2,923,315 Total Revenues 233,280 233,280 3,001,278 2,767,998
EXPENDITURES
Current:
General Government 6,585,830 7,185,741 1,036,526 6,149,215 Public Safety - - 813,514 (813,514) Engineering and Public Works - - 640,002 (640,002) Development Services - - 588,353 (588,353) Community Services - - 43,200 (43,200) Total Expenditures 6,585,830 7,185,741 3,121,595 4,064,146 Excess (Deficiency)of Revenues
over Expenditures (6,352,550) (6,952,461) (120,317) 6,832,144
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Issuance of Debt - - - -
Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance (6,352,550) (6,952,461) (120,317) 6,832,144 Fund Balance, Beginning (307,126) (307,126) (307,126) - Fund Balance, Ending $ (6,659,676) $ (7,259,587) $ (427,443) $ 6,832,144 67 Page 216 of 330
City of Upland
Notes to Required Supplementary Information
Year Ended June 30, 2023
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 decreases 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.
68 Page 217 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
Agent Multiple-employer Plan -Miscellaneous
Measurement Period
Total Pension Liability 2022 2021 2020
Service cost $ 1,851,762 $ 1,692,908 $ 1,461,755 Interest on total pension liability 9,769,936 9,678,380 9,399,565 Changes in assumptions 4,234,238 - - Differences between expected and actual experience (910,990) 1,115,756 532,528 Benefit payments, including refunds (8,755,121) (8,330,169) (8,056,083) Net change in total pension liability 6,189,825 4,156,875 3,337,765 Total pension liability- beginning 141,721,717 137,564,842 134,227,077 Total pension liability-ending (a) $ 147,911,542 $ 141,721,717 $ 137,564,842 Plan Fiduciary Net Position
Contributions-employer $ 19,650,167 $ 4,063,124 $ 4,697,971 Contributions-employee 830,404 633,415 670,433 Net investment income (9,064,780) 21,384,568 4,621,628 Benefit payments (8,755,121) (8,330,169) (8,056,083) Net Plan to Plan Resource Movement - - - Administrative/Other Expense (70,511) (95,434) (132,141) Net change in plan fiduciary net position 2,590,159 17,655,504 1,801,808 Plan fiduciary net position - beginning 113,190,402 95,534,898 93,733,090 Plan fiduciary net position -ending (b) $ 115,780,561 $ 113,190,402 $ 95,534,898 Net pension liability-ending (a)- (b) $ 32,130,981 $ 28,531,315 $ 42,029,944 Plan fiduciary net position as a percentage
of the total pension liability 78.28% 79.87% 69.45% Covered payroll $ 8,467,768 $ 8,066,572 $ 8,343,351 Net pension liability as percentage of
covered payroll 379.45% 353.70% 503.75% 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 2022, the accounting discount rate reduced from 7.15 percent to 6.90 percetn. 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.
69 Page 218 of 330
Measurement Period
2019 2018 2017 2016 2015 2014
$ 1,581,166 $ 1,568,587 $ 1,728,641 $ 1,603,986 $ 1,778,643 $ 2,058,203 9,162,859 8,880,290 8,747,118 8,670,714 8,475,794 8,374,645 - (600,917) 7,056,199 - (2,015,694) - 1,054,267 (675,727) (1,671,546) (1,502,457) (3,437,406) - (7,756,492) (7,358,347) (7,154,726) (6,299,318) (5,934,069) (5,480,303) 4,041,800 1,813,886 8,705,686 2,472,925 (1,132,732) 4,952,545 130,185,277 128,371,391 119,665,705 117,192,780 118,325,512 113,372,967 $ 134,227,077 $ 130,185,277 $ 128,371,391 $ 119,665,705 $ 117,192,780 $ 118,325,512 $ 3,311,285 $ 2,999,453 $ 2,352,967 $ 2,239,207 $ 1,977,651 $ 1,880,762 754,481 655,077 670,114 703,361 703,031 846,655 5,949,555 7,384,991 9,227,177 429,550 1,971,870 13,175,373 (7,756,492) (7,358,347) (7,154,726) (6,299,318) (5,934,069) (5,480,303) 1,301 - - (301) - -
(65,111) (398,906) (122,962) (52,573) (97,096) - 2,195,019 3,282,268 4,972,570 (2,980,074) (1,378,613) 10,422,487 91,538,071 88,255,803 83,283,233 86,263,307 87,641,920 77,219,433 $ 93,733,090 $ 91,538,071 $ 88,255,803 $ 83,283,233 $ 86,263,307 $ 87,641,920 $ 40,493,987 $ 38,647,206 $ 40,115,588 $ 36,382,472 $ 30,929,473 $ 30,683,592
69.83% 70.31% 68.75% 69.60% 73.61% 74.07% $ 8,524,725 $ 8,430,545 $ 9,034,865 $ 9,183,479 $ 10,003,615 $ 11,030,619 475.02% 458.42% 444.01% 396.17% 309.18% 278.17% 70 Page 219 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Changes in the Net Pension Liability
And Related Ratios—Last 10 Years*
Agent Multiple-employer Plan—Safety Plan
Measurement Period
' 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% 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.
71 Page 220 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 Years*
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 Payroll Pension Liability 2022 1.61424% $ 58,895,874 $ 7,777,162 757.29% 75.39% 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% * 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, CaIPERS 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 2022, the accounting discount rate changed from 7.15% to 6.90%. In 2017, the accounting discount rate changed from 7.65%to 7.15%.
72 Page 221 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Agent Multiple-employer Plan—Miscellaneous Plan
Schedule of Plan Contributions
Last 10 Years*
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of Required Determined Deficiency/ Covered Covered Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 $ 3,898,487 $ (3,898,487) $ - $ 11,412,853 34.16% 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% Cost-Sharing Plan—Safety Plan
Schedule of Plan Contributions
Last 10 Years*
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of Required Determined Deficiency/ Covered Covered Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2023 $ 5,465,572 $ (5,465,572) $ - $ 8,058,111 67.83% 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% 73 Page 222 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
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 CaIPERS website at www.calpers.ca.gov .
Mortality: The mortality table used was developed using CaIPERS'specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries'Scale 2016. 74 Page 223 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
Last 10 Years*
Measurement Period
2022 2021 2020
Total OPEB Liability
Service cost $ 212,380 $ 226,606 $ 166,888 Interest on total OPEB liability 346,877 326,794 448,931 Changes in assumptions (4,186,640) (171,113) 2,001,839 Changes in benefits - - -
Differences between expected and actual experience - 841,486 - Benefit payments, including refunds (792,544) (772,138) (853,875) Net change in total OPEB liability (4,419,927) 451,635 1,763,783 Total OPEB liability- beginning 15,265,518 14,813,883 13,050,100 Total OPEB liability-ending (a) $ 10,845,591 $ 15,265,518 $ 14,813,883 Plan Fiduciary Net Position
Contributions-employer $ 1,019,544 $ 997,138 $ 853,875 Net Investment Income (176,122) 231,516 51,511 Benefit payments (792,544) (772,138) (853,875) Administrative Expense (9,461) (6,956) (5,696) Net change in plan fiduciary net position 41,417 449,560 45,815 Plan fiduciary net position - beginning 1,614,610 1,165,050 1,119,235 Plan fiduciary net position -ending (b) $ 1,656,027 $ 1,614,610 $ 1,165,050 Net OPEB liability-ending (a)- (b) $ 9,189,564 $ 13,650,908 $ 13,648,833 Plan fiduciary net position as a percentage
of the total OPEB liability 15.3% 10.6% 7.9%
Covered -employee payroll 19,439,899 19,086,465 16,470,676 Net OPEB liability as a percentage of
covered-employee payroll 47.27% 71.52% 82.87% 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.
75 Page 224 of 330
City of Upland
Required Supplementary Information
Year Ended June 30, 2023
Measurement Period
2019 2018 2017
$ 390,159 $ 557,634 $ 538,257
573,095 562,756 547,618
784,435 (1,049,491) -
(1,080,543) -
(1,821,317) - -
(591,246) (699,692) (669,865)
(664,874) (1,709,336) 416,010
13,714,974 15,424,310 15,008,300
$ 13,050,100 $ 13,714,974 $ 15,424,310
$ 591,246 $ 699,692 $ 1,669,865
69,490 54,034 966
(591,246) (699,692) (669,865)
(2,660) (2,595) -
66,830 51,439 1,000,966
1,052,405 1,000,966 -
$ 1,119,235 $ 1,052,405 $ 1,000,966
$ 11,930,865 $ 12,662,569 $ 14,423,344
8.6% 7.7% 6.5%
15,729,836 16,282,462 20,253,855
75.85% 77.77% 71.21%
76 Page 225 of 330
SUPPLEMENTARY INFORMATION
77 Page 226 of 330
NON-MAJOR GOVERNMENTAL FUNDS
78 Page 227 of 330
City of Upland
Non-Major Governmental Funds
Year Ended June 30, 2023
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.
CaIHOME 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 and 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 other than public safety.
79 Page 228 of 330
City of Upland
Non-Major Governmental Funds
Year Ended June 30, 2023
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 Projects 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.
80 Page 229 of 330
City of Upland
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2023
Special Revenue
Community
Gas HOME CaIHOME Development
Tax Program Program Block Grant
ASSETS
Cash and Investments $ 10,506,528 $ 2,097,456 $ 718,636 $ - Restricted Cash - - - -
Receivables:
Accounts - - - -
Notes, net - 2,759,427 1,514,190 -
Accrued Interest on Notes - 915,028 362,224 - Due from Other Governments 485,040 - - 310,044 Total Assets $ 10,991,568 $ 5,771,911 $ 2,595,050 $ 310,044
LIABILITIES
Accounts Payable $ 73,398 $ 10,278 $ - $ 204,010 Accrued Salaries and Benefits 4,442 - - 1,488 Due to Other Funds - - - 31,982
Deposits Payable - - - -
Retentions Payable 9,436 - - 13,786 Unearned Revenue - - 4,469 -
Total Liabilities 87,276 10,278 4,469 251,266
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 915,028 362,224 7,070 Total Deferred Inflows of Resources - 915,028 362,224 7,070
FUND BALANCE (DEFICITS)
Restricted 10,904,292 4,846,605 2,228,357 51,708 Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 10,904,292 4,846,605 2,228,357 51,708 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 10,991,568 $ 5,771,911 $ 2,595,050 $ 310,044 81 Page 230 of 330
Special Revenue
Air Quality Parking and SB 509 Public
Management Business Public Safety Asset Safety Other Measure I District Improvement Augmentation Forfeiture Grants Grants $ 8,100,204 $ 265,574 $ 231,909 $ - $ 1,441,812 $ 1,122,376 $ 205,387 - - - - 62,956 - -
- - 9,249 - - - -
509,924 26,394 - 110,535 - 253,959 154,463 $ 8,610,128 $ 291,968 $ 241,158 $ 110,535 $ 1,504,768 $ 1,376,335 $ 359,850 $ 122,756 $ 34 $ - $ - $ 877 $ 29,438 $ 6,851 1,246 1,709 - 28,899 - - 767
- - - 80,991 - - -
- - - - 62,956 - -
6,461 - - - - - -
- - - - - 31,002 331,682
130,463 1,743 - 109,890 63,833 60,440 339,300 - - - - - 168,920 154,463
- - - - - 168,920 154,463
8,479,665 290,225 241,158 645 1,440,935 1,146,975 - - - - - - - (133,913)
8,479,665 290,225 241,158 645 1,440,935 1,146,975 (133,913) $ 8,610,128 $ 291,968 $ 241,158 $ 110,535 $ 1,504,768 $ 1,376,335 $ 359,850 Continued
82 Page 231 of 330
City of Upland
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2023
Special
Revenue Capital Projects
Park General Storm
CARES Acquistion & Capital Drain
ACT Development Development Development
ASSETS
Cash and Investments $ 29,201 $ 10,033,730 $ 2,232,339 $ 5,311,685 Restricted Cash - 1,257,934 223,711 321,184 Receivables:
Accounts - - - 635
Notes, net - - - -
Accrued Interest on Notes - - - - Due from Other Governments - - - - Total Assets $ 29,201 $ 11,291,664 $ 2,456,050 $ 5,633,504
LIABILITIES
Accounts Payable $ - $ 24,304 $ - $ - Accrued Salaries and Benefits - 188 - 11
Due to Other Funds - - - -
Deposits Payable - 1,257,934 223,711 321,184 Retentions Payable - - - -
Unearned Revenue - - - -
Total Liabilities - 1,282,426 223,711 321,195
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCE (DEFICITS)
Restricted 29,201 10,009,238 1,791,918 5,312,309 Assigned - - 440,421 -
Unassigned - - - -
Total Fund Balances (Deficits) 29,201 10,009,238 2,232,339 5,312,309 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 29,201 $ 11,291,664 $ 2,456,050 $ 5,633,504 83 Page 232 of 330
Capital Projects
Street and General Street& Energy
Traffic Safety Capital Alley Efficiency
Development Projects Repair Improvements Total $ 1,309,159 $ 3,359,569 $ 951,857 $ - $ 47,917,422 165,262 - - - 2,031,047
- - 54,229 - 64,113
- - - - 4,273,617
- - - - 1,277,252
- - - - 1,850,359
$ 1,474,421 $ 3,359,569 $ 1,006,086 $ - $ 57,413,810 $ - $ - $ - $ - $ 471,946 89 - 420 - 39,259
- - - - 112,973
165,262 - - - 2,031,047
- 216 - 29,899
- - - - 367,153
165,351 - 636 - 3,052,277
- - - - 1,607,705
- - - - 1,607,705
1,309,070 3,359,569 1,005,450 - 52,447,320
- - - - 440,421
- - - - (133,913)
1,309,070 3,359,569 1,005,450 - 52,753,828
$ 1,474,421 $ 3,359,569 $ 1,006,086 $ - $ 57,413,810 84 Page 233 of 330
City of Upland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2023
Special Revenue
Community
Gas HOME CaIHOME Development
Tax Program Program Block Grant
REVENUES
Taxes $ - $ - $ - $ - Licenses and Permits - - - -
Charges for Services - - - -
Investment Income (20,375) 31,789 11,535 - Rental Income - - - -
Intergovernmental 3,769,635 - - 1,062,529 Other Revenue - 35,436 - -
Total Revenues 3,749,260 67,225 11,535 1,062,529
EXPENDITURES
Current:
General Government - - - -
Public Safety - - - -
Engineering and Public Works 1,788,455 - - - Development Services - - 32,555 1,069,599 Community Services - - - -
Debt Service:
Principal - - - -
Interest and Fiscal Charges - - - - Total Expenditures 1,788,455 - 32,555 1,069,599 Excess (Deficiency)of Revenues
Over Expenditures 1,960,805 67,225 (21,020) (7,070)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,960,805 67,225 (21,020) (7,070) Fund Balances- Beginning 8,943,487 4,779,380 2,249,377 58,778 Fund Balances- Ending $ 10,904,292 $ 4,846,605 $ 2,228,357 $ 51,708 85 Page 234 of 330
Special Revenue
Air Quality Parking and SB 509 Public
Management Business Public Safety Asset Safety Other Measure I District Improvement Augmentation Forfeiture Grants Grants $ - $ - $ 101,840 $ 1,478,551 $ - $ - $ - (34,345) 3,971 3,010 1,373 16,954 21,176 7,376 2,094,460 130,290 - - 680,494 357,483 1,134,927 2,060,115 134,261 104,850 1,479,924 697,448 378,659 1,142,303 - - - 1,479,923 1,896 604,691 -
554,239 77,236 59,455 - - - -
- - - - - - 660,861
- - - - - - 553,228
554,239 77,236 59,455 1,479,923 1,896 604,691 1,214,089 1,505,876 57,025 45,395 1 695,552 (226,032) (71,786) - - 29,552 - - - -
- - 29,552 - - - -
1,505,876 57,025 74,947 1 695,552 (226,032) (71,786) 6,973,789 233,200 166,211 644 745,383 1,373,007 (62,127) $ 8,479,665 $ 290,225 $ 241,158 $ 645 $ 1,440,935 $ 1,146,975 $ (133,913) Continued
86 Page 235 of 330
City of Upland
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2023
Special
Revenue Capital Projects
Park General Storm
CARES Acquistion & Capital Drain
ACT Development Development Development
REVENUES
Taxes $ - $ - $ - $ - Licenses and Permits - 310,255 48,287 381,495 Charges for Services - - - -
Investment Income 330 (18,550) (3,216) (7,319) Rental Income - - - 45,381
Intergovernmental 47,835 - - -
Other Revenue - - - -
Total Revenues 48,165 291,705 45,071 419,557
EXPENDITURES
Current:
General Government - - - -
Public Safety - - - -
Engineering and Public Works - 342,231 344 60,104 Development Services - - - -
Community Services - - - -
Debt Service:
Principal - - - -
Interest and Fiscal Charges - - - - Total Expenditures - 342,231 344 60,104 Excess (Deficiency)of Revenues
Over Expenditures 48,165 (50,526) 44,727 359,453
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 48,165 (50,526) 44,727 359,453 Fund Balances- Beginning (18,964) 10,059,764 2,187,612 4,952,856 Fund Balances- Ending $ 29,201 $ 10,009,238 $ 2,232,339 $ 5,312,309 87 Page 236 of 330
Capital Projects
Street and General Street& Energy
Traffic Safety Capital Alley Efficiency
Development Projects Repair Improvements Total $ - $ - $ - $ - $ 1,580,391 191,580 - 350,000 - 1,281,617
- 74,880 - - 74,880
12,638 - (2,083) - 24,264
- - - - 45,381
- - - - 9,277,653
- 141,010 - - 176,446
204,218 215,890 347,917 - 12,460,632
- - - - 2,086,510
198,812 221,595 29,575 5,670 3,337,716
- - - - 1,763,015
- - - - 553,228
198,812 221,595 29,575 5,670 7,740,469
5,406 (5,705) 318,342 (5,670) 4,720,163
- 1,717,500 - - 1,747,052
- 1,717,500 - - 1,747,052
5,406 1,711,795 318,342 (5,670) 6,467,215
1,303,664 1,647,774 687,108 5,670 46,286,613 $ 1,309,070 $ 3,359,569 $ 1,005,450 $ - $ 52,753,828 88 Page 237 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Gas Tax Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income (20,375) (20,375)
Intergovernmental 4,079,220 3,769,635 (309,585) Other Revenue - - -
Total Revenues 4,079,220 3,749,260 (329,960)
EXPENDITURES
Current:
Engineering and Public Works 10,588,115 1,788,455 8,799,660 Total Expenditures 10,588,115 1,788,455 8,799,660 Excess (Deficiency)of Revenues
over Expenditures (6,508,895) 1,960,805 8,469,700
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (6,508,895) 1,960,805 8,469,700 Fund Balance, Beginning 8,943,487 8,943,487 - Fund Balance, Ending $ 2,434,592 $10,904,292 $ 8,469,700 89 Page 238 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - HOME Program Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income 800 31,789 30,989
Intergovernmental - - -
Other Revenue 47,500 35,436 (12,064) Total Revenues 48,300 67,225 18,925
EXPENDITURES
Current:
Development Services 355,000 - 355,000
Total Expenditures 355,000 - 355,000
Excess (Deficiency)of Revenues
over Expenditures (306,700) 67,225 373,925
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - -
Net Change in Fund Balances (306,700) 67,225 373,925 Fund Balance, Beginning 4,779,380 4,779,380 - Fund Balance, Ending $ 4,472,680 $ 4,846,605 $ 373,925 90 Page 239 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CaIHOME Program Special Revenue Fund Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income 200 11,535 11,335
Intergovernmental - - -
Other Revenue 35,000 (35,000)
Total Revenues 35,200 11,535 (23,665)
EXPENDITURES
Current:
Development Services 675,000 32,555 642,445 Total Expenditures 675,000 32,555 642,445
Excess (Deficiency)of Revenues
over Expenditures (639,800) (21,020) 618,780
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - -
Net Change in Fund Balances (639,800) (21,020) 618,780 Fund Balance, Beginning 2,249,377 2,249,377 - Fund Balance, Ending $ 1,609,577 $ 2,228,357 $ 618,780 91 Page 240 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CDBG Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 1,628,210 $ 1,062,529 $ (565,681) Other Revenue - - -
Total Revenues 1,628,210 1,062,529 (565,681)
EXPENDITURES
Current:
Development Services 1,629,730 1,069,599 560,131 Total Expenditures 1,629,730 1,069,599 560,131 Excess (Deficiency)of Revenues
over Expenditures (1,520) (7,070) (5,550)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - -
Net Change in Fund Balances (1,520) (7,070) (5,550) Fund Balance, Beginning 58,778 58,778 - Fund Balance, Ending $ 57,258 $ 51,708 $ (5,550) 92 Page 241 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure I Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income (34,345) (34,345)
Intergovernmental 1,623,180 2,094,460 471,280 Other Revenue - - -
Total Revenues 1,623,180 2,060,115 436,935
EXPENDITURES
Current:
Engineering and Public Works 2,583,240 554,239 2,029,001 Total Expenditures 2,583,240 554,239 2,029,001 Excess (Deficiency)of Revenues
over Expenditures (960,060) 1,505,876 2,465,936
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - -
Net Change in Fund Balances (960,060) 1,505,876 2,465,936 Fund Balance, Beginning 6,973,789 6,973,789 - Fund Balance, Ending $ 6,013,729 $ 8,479,665 $ 2,465,936 93 Page 242 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income 3,971 3,971
Intergovernmental 99,400 130,290 30,890
Other Revenue - - -
Total Revenues 99,400 134,261 34,861
EXPENDITURES
Current:
Engineering and Public Works 322,680 77,236 245,444 Total Expenditures 322,680 77,236 245,444
Excess (Deficiency)of Revenues
over Expenditures (223,280) 57,025 280,305
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (223,280) 57,025 280,305 Fund Balance, Beginning 233,200 233,200 -
Fund Balance, Ending $ 9,920 $ 290,225 $ 280,305 94 Page 243 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 58,500 $ 101,840 $ 43,340 Investment Income 100 3,010 2,910
Total Revenues 58,600 104,850 46,250
EXPENDITURES
Current:
Engineering and Public Works 205,831 59,455 146,376 Total Expenditures 205,831 59,455 146,376
Excess (Deficiency)of Revenues
over Expenditures (147,231) 45,395 192,626
OTHER FINANCING SOURCES (USES)
Transfers In 29,552 29,552 -
Transfers Out - - -
Total Other Financing
Sources (Uses) 29,552 29,552 -
Net Change in Fund Balances (117,679) 74,947 192,626 Fund Balance, Beginning 166,211 166,211 - Fund Balance, Ending $ 48,532 $ 241,158 $ 192,626 95 Page 244 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 1,422,700 $ 1,478,551 $ 55,851 Investment Income 1,373 1,373
Intergovernmental - - -
Other Revenue - - -
Total Revenues 1,422,700 1,479,924 57,224
EXPENDITURES
Current:
Public Safety 1,512,900 1,479,923 32,977 Total Expenditures 1,512,900 1,479,923 32,977 Excess (Deficiency)of Revenues
over Expenditures (90,200) 1 90,201
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (90,200) 1 90,201 Fund Balance, Beginning 644 644 -
Fund Balance, Ending $ (89,556) $ 645 $ 90,201 96 Page 245 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Asset Forfeiture Special Revenue Fund Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income $ - $ 16,954 $ 16,954 Fines and Forfeitures - - -
Intergovernmental - 680,494 680,494
Total Revenues - 697,448 697,448
EXPENDITURES
Current:
Public Safety 5,000 1,896 3,104 Total Expenditures 5,000 1,896 3,104
Excess (Deficiency)of Revenues
over Expenditures (5,000) 695,552 700,552
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (5,000) 695,552 700,552 Fund Balance, Beginning 745,383 745,383 -
Fund Balance, Ending $ 740,383 $ 1,440,935 $ 700,552 97 Page 246 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income 21,176 21,176
Intergovernmental 694,785 357,483 (337,302)
Other Revenue - - -
Total Revenues 694,785 378,659 (316,126)
EXPENDITURES
Current:
Public Safety 2,087,545 604,691 1,482,854
Total Expenditures 2,087,545 604,691 1,482,854 Excess (Deficiency)of Revenues
over Expenditures (1,392,760) (226,032) 1,166,728
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (1,392,760) (226,032) 1,166,728 Fund Balance, Beginning 1,373,007 1,373,007 - Fund Balance, Ending $ (19,753) $ 1,146,975 $ 1,166,728 98 Page 247 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Other Grants Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ - $ -
Investment Income - 7,376 7,376
Intergovernmental 2,006,537 1,134,927 (871,610) Other Revenue 225,070 - (225,070)
Total Revenues 2,231,607 1,142,303 (1,089,304)
EXPENDITURES
Current:
Development Services 1,303,910 660,861 643,049 Community Services 775,501 553,228 222,273
Total Expenditures 2,079,411 1,214,089 865,322 Excess (Deficiency)of Revenues
over Expenditures 152,196 (71,786) (223,982)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 152,196 (71,786) (223,982) Fund Balance, Beginning (62,127) (62,127) - Fund Balance, Ending $ 90,069 $ (133,913) $ (223,982) 99 Page 248 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CARES ACT Special Revenue Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income $ - $ 330 $ 330 Intergovernmental - 47,835 47,835
Total Revenues - 48,165 48,165
EXPENDITURES
Current:
General Government - -
Public Safety - - -
Engineering and Public Works - - -
Development Services - - -
Community Services - - -
Total Expenditures - - -
Excess (Deficiency)of Revenues
over Expenditures - 48,165 48,165
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - 48,165 48,165 Fund Balance, Beginning (18,964) (18,964)
Fund Balance, Ending $ (18,964) $ 29,201 $ 48,165 100 Page 249 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ 800,000 $ 310,255 $ (489,745) Investment Income - (18,550) (18,550)
Intergovernmental - - -
Other Revenue - - -
Total Revenues 800,000 291,705 (508,295)
EXPENDITURES
Current:
Engineering and Public Works 1,418,045 342,231 1,075,814 Community Services - - -
Total Expenditures 1,418,045 342,231 1,075,814 Excess (Deficiency)of Revenues
over Expenditures (618,045) (50,526) 567,519
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (618,045) (50,526) 567,519 Fund Balance, Beginning 10,059,764 10,059,764 - Fund Balance, Ending $ 9,441,719 $10,009,238 $ 567,519 101 Page 250 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ 195,000 $ 48,287 $ (146,713) Investment Income - (3,216) (3,216)
Intergovernmental - - -
Other Revenue - - -
Total Revenues 195,000 45,071 (149,929)
EXPENDITURES
Current:
Engineering and Public Works 109,112 344 108,768 Community Services - - -
Total Expenditures 109,112 344 108,768
Excess (Deficiency)of Revenues
over Expenditures 85,888 44,727 (41,161)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 85,888 44,727 (41,161) Fund Balance, Beginning 2,187,612 2,187,612 - Fund Balance, Ending $ 2,273,500 $ 2,232,339 $ (41,161) 102 Page 251 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ 290,000 $ 381,495 $ 91,495 Investment Income - (7,319) (7,319)
Rental Income 76,200 45,381 (30,819) Total Revenues 366,200 419,557 53,357
EXPENDITURES
Current:
Engineering and Public Works 2,068,621 60,104 2,008,517 Community Services - - -
Total Expenditures 2,068,621 60,104 2,008,517 Excess (Deficiency)of Revenues
over Expenditures (1,702,421) 359,453 2,061,874
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (1,702,421) 359,453 2,061,874 Fund Balance, Beginning 4,952,856 4,952,856 - Fund Balance, Ending $ 3,250,435 $ 5,312,309 $ 2,061,874 103 Page 252 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ 370,000 $ 191,580 $ (178,420) Investment Income 16,000 12,638 (3,362) Intergovernmental - - -
Other Revenue - - -
Total Revenues 386,000 204,218 (181,782)
EXPENDITURES
Current:
Engineering and Public Works 545,777 198,812 346,965 Community Services - - -
Total Expenditures 545,777 198,812 346,965 Excess (Deficiency)of Revenues
over Expenditures (159,777) 5,406 165,183
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Issuance of Debt - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (159,777) 5,406 165,183 Fund Balance, Beginning 1,303,664 1,303,664 - Fund Balance, Ending $ 1,143,887 $ 1,309,070 $ 165,183 104 Page 253 of 330
City of Upland
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Capital Projects Fund
Year Ended June 30, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ - $ - $ - Investment Income - - -
Charges for Services - 74,880 74,880
Other Revenue 77,485 141,010 63,525
Total Revenues 77,485 215,890 138,405
EXPENDITURES
Current:
Engineering and Public Works 1,051,711 221,595 830,116 Community Services - - -
Total Expenditures 1,051,711 221,595 830,116 Excess (Deficiency)of Revenues
over Expenditures (974,226) (5,705) 968,521
OTHER FINANCING SOURCES (USES)
Transfers In 1,717,500 1,717,500 -
Transfers Out - - -
Issuance of Debt - - -
Total Other Financing
Sources (Uses) 1,717,500 1,717,500 -
Net Change in Fund Balances 743,274 1,711,795 968,521 Fund Balance, Beginning 1,647,774 1,647,774 - Fund Balance, Ending $ 2,391,048 $ 3,359,569 $ 968,521 105 Page 254 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ 240,000 $ 350,000 $ 110,000 Investment Income - (2,083) (2,083)
Intergovernmental - - -
Other Revenue - - -
Total Revenues 240,000 347,917 107,917
EXPENDITURES
Current:
Engineering and Public Works 891,096 29,575 861,521 Community Services - - -
Total Expenditures 891,096 29,575 861,521
Excess (Deficiency)of Revenues
over Expenditures (651,096) 318,342 969,438
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Issuance of Debt - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (651,096) 318,342 969,438 Fund Balance, Beginning 687,108 687,108 -
Fund Balance, Ending $ 36,012 $ 1,005,450 $ 969,438 106 Page 255 of 330
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, 2023
Variance-
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Licenses and Permits $ - $ - $ - Investment Income - - -
Intergovernmental - - -
Other Revenue - - -
Total Revenues - - -
EXPENDITURES
Current:
Engineering and Public Works 5,670 (5,670) Community Services - - -
Total Expenditures - 5,670 (5,670)
Excess (Deficiency)of Revenues
over Expenditures - (5,670) (5,670)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Issuance of Debt - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - (5,670) (5,670) Fund Balance, Beginning 5,670 5,670 - Fund Balance, Ending $ 5,670 $ - $ (5,670) 107 Page 256 of 330
INTERNAL SERVICE FUNDS
108 Page 257 of 330
City of Upland
Internal Service Funds
Year Ended June 30, 2023
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.
109 Page 258 of 330
City of Upland
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals ASSETS
Current Assets:
Cash and Investments $ 3,603,937 $ 1,430,597 $ 3,037,687 $ 1,578,363 $ 9,650,584 Accounts Receivable-Net 2,888 - 33,250 - 36,138 Inventory and Prepaid Items 130,074 131,583 11,125 - 272,782 Total Current Assets 3,736,899 1,562,180 3,082,062 1,578,363 9,959,504 Noncurrent Assets:
Capital Assets, Not Being Depreciated
Construction In Progress - - 10,759 - 10,759 Capital Assets, Depreciable, Net - 363,545 1,064,436 - 1,427,981 Total Noncurrent Assets - 363,545 1,075,195 - 1,438,740 Total Assets 3,736,899 1,925,725 4,157,257 1,578,363 11,398,244
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 27,985 22,654 44,243 42,644 137,526 Pension Related Items 248,435 271,983 476,854 445,064 1,442,336 Total Deferred Outflows of Resources 276,420 294,637 521,097 487,708 1,579,862
LIABILITIES
Current Liabilities:
Accounts Payable 29,991 146,684 125,215 109,924 411,814 Accrued Salaries and Wages 4,924 5,382 7,557 8,603 26,466 Current Portion of Long-Term Liabilities:
Claims and Judgments Payable 2,856,713 - - - 2,856,713 Compensated Absences 9,645 4,602 19,775 20,744 54,766 Total Current Liabilities 2,901,273 156,668 152,547 139,271 3,349,759 Noncurrent Liabilities:
Claims and Judgments Payable 5,861,139 - - - 5,861,139 Net OPEB Liability 96,490 78,111 152,547 147,033 474,181 Net Pension Liability 751,865 825,766 1,442,681 1,346,288 4,366,600 Compensated Absences 3,697 2,812 45,824 20,149 72,482 Total Noncurrent Liabilities 6,713,191 906,689 1,641,052 1,513,470 10,774,402 Total Liabilities 9,614,464 1,063,357 1,793,599 1,652,741 14,124,161
DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 42,455 34,368 67,119 64,693 208,635 Pension Related Items 9,105 9,968 17,477 16,312 52,862 Total Deferred Inflows of Resources 51,560 44,336 84,596 81,005 261,497
NET POSITION
Net Investment in Capital Assets - 363,545 1,075,195 - 1,438,740 Unrestricted (5,652,705) 749,124 1,724,964 332,325 (2,846,292) Total Net Position $ (5,652,705) $ 1,112,669 $ 2,800,159 $ 332,325 $ (1,407,552) 110 Page 259 of 330
City of Upland
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2023
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals
OPERATING REVENUES
Charges for Services $ 5,275,683 $ 746,160 $ 2,698,512 $ 995,364 $ 9,715,719 Other Operating Revenues 140 - 140,245 - 140,385 Total Operating Revenues 5,275,823 746,160 2,838,757 995,364 9,856,104
OPERATING EXPENSES
Maintenance and Operations 443,740 947,084 2,845,978 1,249,795 5,486,597 Contractual Services 305,302 - - - 305,302 Claims Expense 2,897,707 - - - 2,897,707 Depreciation - 133,538 283,938 - 417,476 Total Operating Expenses 3,646,749 1,080,622 3,129,916 1,249,795 9,107,082 Operating Income(Loss) 1,629,074 (334,462) (291,159) (254,431) 749,022
NONOPERATING REVENUES(EXPENSES)
Interest Income 42,887 23,334 50,419 21,779 138,419 Gain/(Loss)on Disposal of Capital Assets - 41,250 - - 41,250 Total Nonoperating Revenues(Expenses) 42,887 64,584 50,419 21,779 179,669 Income(Loss)Before Operating Transfers 1,671,961 (269,878) (240,740) (232,652) 928,691 Capital Contributions - - - - -
Transfers In - 150,000 250,000 473,750 873,750 Transfers Out - - - - -
Change in Net Position 1,671,961 (119,878) 9,260 241,098 1,802,441 Net Position-Beginning of Year (7,324,666) 1,232,547 2,790,899 91,227 (3,209,993) Net Position-End of Year $ (5,652,705) $ 1,112,669 $ 2,800,159 $ 332,325 $ (1,407,552) 111 Page 260 of 330
City of Upland
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2023
Self-funded Vehicle Information Building
Insurance Replacement Systems Maintenance Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments $ 5,273,170 $ 746,160 $ 2,842,362 $ 995,364 $ 9,857,056 Cash Paid to Suppliers for Goods and Services (4,634,669) (672,447) (2,325,454) (717,781) (8,350,351) Cash Paid to Employees for Services (33,869) (290,612) (268,277) (545,791) (1,138,549) Net Cash from Operating Activities 604,632 (216,899) 248,631 (268,208) 368,156
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Cash Paid(to)from Other Funds - 150,000 250,000 473,750 873,750 Advances Paid(to)from Other Funds - - - - - Net Cash from Noncapital and
Related Financing Activities - 150,000 250,000 473,750 873,750
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Cash Received from Sale of Capital Assets - 41,250 - - 41,250 Acquisition and Construction of Capital Assets - (52,243) (650,926) - (703,169) Net Cash from Capital and
Related Financing Activities - (10,993) (650,926) - (661,919)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 42,887 23,335 50,419 21,779 138,420 Net Cash from Investing Activities 42,887 23,335 50,419 21,779 138,420 Net Increase(Decrease)in Cash and Cash Equivalents 647,519 (54,557) (101,876) 227,321 718,407 Cash and Cash Equivalents, Beginning of the Year 2,956,418 1,485,154 3,139,563 1,351,042 8,932,177 Cash and Cash Equivalents, End of the Year $ 3,603,937 $ 1,430,597 $ 3,037,687 $ 1,578,363 $ 9,650,584 Reconciliation of Operating Income(Loss)to
Net Cash from Operating Activities:
Operating Income(Loss) $ 1,629,074 $ (334,462) $ (291,159) $ (254,431) $ 749,022 Adjustments to Reconcile Operating Income(Loss)to
Net Cash Provided (Used)by Operating Activities:
Depreciation - 133,538 283,938 - 417,476 Changes in Operating Assets and Liabilities:
(Increase)Decrease in Accounts Receivable (2,653) - 3,605 - 952 (Increase)Decrease in Due from Other Governments - - - - - (Increase)Decrease in Inventory and Prepaid Items 62,437 (46,366) 16,116 - 32,187 (Increase)Decrease in Deferred Outflows-Pensions (177,280) (180,784) (353,585) (300,749) (1,012,398) (Increase)Decrease in Deferred Outflows-OPEB 1,733 8,400 5,176 10,448 25,757 Increase(Decrease)in Accounts Payable (8,589) 106,713 85,935 65,130 249,189 Increase(Decrease)in Accrued Salaries and Benefits 639 2,201 1,501 2,234 6,575 Increase(Decrease)in Compensated Absences 767 (4,192) (750) (2,418) (6,593) Increase(Decrease)in Net Pension Liability 346,720 306,496 740,811 524,586 1,918,613 Increase(Decrease)in Net OPEB Liability (25,003) (48,842) (49,486) (70,016) (193,347) Increase(Decrease)in Deferred Inflows-Pensions (142,155) (183,900) (244,565) (290,469) (861,089) Increase(Decrease)in Deferred Inflows-OPEB 32,819 24,299 51,094 47,477 155,689 Increase(Decrease)in Claims Payable (1,113,877) - - - (1,113,877) Net Cash from Operating Activities $ 604,632 $ (216,899) $ 248,631 $ (268,208) $ 368,156 112 Page 261 of 330
CUSTODIAL FUNDS
113 Page 262 of 330
City of Upland
Custodial Funds
Year Ended June 30, 2023
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 fees collected on behalf of IEUA to expand the region's sanitary sewage facilities to accommodate current and future growth.
Welfare Committee Fund
To account for voluntary employee contributions used to provide future financial assistance to employees in the event of a personal financial emergency, as determined by the committee.
West End Consolidated Water Company(Water Company)
To account for monies held on behalf of the Water Company. 114 Page 263 of 330
City of Upland
Custodial Funds
Year Ended June 30, 2023
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.
115 Page 264 of 330
City of Upland
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
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 $ 26,162 $ 20,000 $ 20,000 $ 20,000 $ 232,229 Cash with Fiscal Agent 1,640,517 2,615,776 1,076,848 893,973 - Accounts Receivable 9,015 - 8,080 6,361 778 Total Assets 1,675,694 2,635,776 1,104,928 920,334 233,007
LIABILITIES
Deposits Payable - - 27,829 150,500 15,784 Due to City of Upland - - - - -
Accounts Payable 1,750 - - - 232 Total Liabilities 1,750 - 27,829 150,500 16,016
NET POSITION
Restricted for:
Organizations and Individuals 1,673,944 2,635,776 1,077,099 769,834 216,991 Other Governments - - - - -
Total Net Position $ 1,673,944 $ 2,635,776 $ 1,077,099 $ 769,834 $ 216,991 116 Page 265 of 330
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 $ 7,177 $ 24,369 $ - $ 4,938,855 $ 29,009 $ 507,685 $ 20,000 - 2,695,089 - - - - 261,003
207 4,913 - - - - 3,713
7,384 2,724,371 - 4,938,855 29,009 507,685 284,716 - 164,308 - 3,472,281 - - -
907 - - 1,466,574 - - -
907 164,308 - 4,938,855 - - -
6,477 2,560,063 - - 29,009 507,685 284,716 $ 6,477 $ 2,560,063 $ - $ - $ 29,009 $ 507,685 $ 284,716 Continued
117 Page 266 of 330
City of Upland
Combining Statement of Fiduciary Net Position - Continued Custodial Funds
June 30, 2023
Community Community
Facilities Facilities District
District 2022-1 2015-1 Area 2 Total
ASSETS
Cash and Investments $ 148,828 $ 23,569 $ 6,017,883 Cash with Fiscal Agent 3,998,701 4,544,939 17,726,846 Accounts Receivable - 11,586 44,653
Total Assets 4,147,529 4,580,094 23,789,382
LIABILITIES
Deposits Payable 177,866 1,750 4,010,318
Due to City of Upland - - -
Accounts Payable - - 1,469,463
Total Liabilities 177,866 1,750 5,479,781
NET POSITION
Restricted for:
Organizations and Individuals 3,969,663 4,578,344 18,309,601 Other Governments - - -
Total Net Position $3,969,663 $4,578,344 $18,309,601 118 Page 267 of 330
City of Upland
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
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 $ 1,658,324 $ 1,329,554 $ 547,411 $ 531,251 $ 57,873 Contributions from Bondholders - - - 2,037 - Investment Earnings:
Interest Income - - - - -
Total Additions 1,658,324 1,329,554 547,411 533,288 57,873
DEDUCTIONS
General and Administrative 26,311 19,441 16,200 - 18,737 Recipient Payments - - - - -
Distribution to Shareholders 298,218 1,315,094 511,419 510,582 - Total Deductions 324,529 1,334,535 527,619 510,582 18,737 Net Increase(decrease)in fiduciary net position 1,333,795 (4,981) 19,792 22,706 39,136 Net Position, beginning of the year 340,149 2,640,757 1,057,307 747,128 177,855 Net Position,end of the year $ 1,673,944 $ 2,635,776 $ 1,077,099 $ 769,834 $ 216,991 119 Page 268 of 330
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 $ 11,450 $ 577,823 $ - $ 1,469,948 $ - $ - $ 139,396 - -
- - - 7,878 -
11,450 577,823 - 1,469,948 - 7,878 139,396 23,625 15,697 2,752 1,466,574 - - 16,389 - - - 3,374 - - -
- 555,255 - - - - 121,320
23,625 570,952 2,752 1,469,948 - - 137,709 (12,175) 6,871 (2,752) - - 7,878 1,687
18,652 2,553,192 2,752 - 29,009 499,807 283,029 $ 6,477 $ 2,560,063 $ - $ - $ 29,009 $ 507,685 $ 284,716 Continued
120 Page 269 of 330
City of Upland
Combining Statement of Changes in Fiduciary Net Position - Continued Custodial Funds
For the Year Ended June 30, 2023
Community Community
Facilities Facilities District
District 2022-1 2015-1 Area 2 Total
ADDITIONS
Contributions:
Taxes and assessments collected for others $ - $ 662,879 $ 6,985,909 Contributions from Bondholders 4,159,477 - 4,161,514 Investment Earnings:
Interest Income - - 7,878
Total Additions 4,159,477 662,879 11,155,301
DEDUCTIONS
General and Administrative 2,701 4,794,750 6,403,177 Recipient Payments 158,076 14,723 176,173 Distribution to Shareholders - 563,963 3,875,851 Total Deductions 160,777 5,373,436 10,455,201 Net Increase(decrease)in fiduciary net position 3,998,700 (4,710,557) 700,100 Net Position, beginning of the year (29,037) 9,288,901 17,609,501 Net Position,end of the year $ 3,969,663 $ 4,578,344 $ 18,309,601 121 Page 270 of 330
STATISTICAL SECTION
22 Page 271 of 330
City of Upland
Description of Statistical Section Contents
June 30, 2023
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. 124
Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 134 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. 142 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. 149 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. 151 123 Page 272 of 330
CITY OF UPLAND
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year Ended June 30,
2014 2015 2016 2017
Governmental activities
Net investment in capital assets $ 272,320,453 $ 274,795,930 $ 269,132,382 $ 267,791,299 Restricted 18,336,004 14,482,775 25,659,378 40,844,504 Unrestricted (253,534) (62,716,819) (64,259,153) (74,170,029) Total governmental activities net position $ 290,402,923 $ 226,561,886 $ 230,532,607 $ 234,465,774 Business-type activities
Net investment in capital assets $ 75,114,852 $ 68,450,050 $ 67,891,850 $ 68,761,226 Restricted - - - -
Unrestricted 36,705,400 27,528,096 34,916,716 39,989,572 Total business-type activities net position $ 111,820,252 $ 95,978,146 $ 102,808,566 $ 108,750,798 Primary government
Net investment in capital assets $ 347,435,305 $ 343,245,980 $ 337,024,232 $ 336,552,525 Restricted 18,336,004 14,482,775 25,659,378 40,844,504 Unrestricted 36,451,866 (35,188,723) (29,342,437) (34,180,457) Total primary government net position $ 402,223,175 $ 322,540,032 $ 333,341,173 $ 343,216,572 Source: Finance Division, City of Upland
124 Page 273 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023 $ 262,318,491 $ 262,465,719 $ 266,996,077 $ 267,040,558 $ 262,699,586 $ 259,609,120 42,616,153 44,877,724 52,227,409 43,407,782 44,713,616 49,087,106 (83,164,838) (80,859,640) (74,070,557) (59,600,057) (62,075,620) (50,852,573) $ 221,769,806 $ 226,483,803 $ 245,152,929 $ 250,848,283 $ 245,337,582 $ 257,843,653 $ 69,511,985 $ 70,481,398 $ 80,694,523 $ 11,916,179 $ 92,647,094 $ 85,967,254 48,033,153 54,825,737 62,335,721 141,256,446 73,065,524 91,632,078 $ 117,545,138 $ 125,307,135 $ 143,030,244 $ 153,172,625 $ 165,712,618 $ 177,599,332 $ 331,830,476 $ 332,947,117 $ 347,690,600 $ 278,956,737 $ 355,346,680 $ 345,576,374 42,616,153 44,877,724 52,227,409 43,407,782 44,713,616 49,087,106 (35,131,685) (26,033,903) (11,734,836) 81,656,389 10,989,904 40,779,505 $ 339,314,944 $ 351,790,938 $ 388,183,173 $ 404,020,908 $ 411,050,200 $ 435,442,985 125 Page 274 of 330
CITY OF UPLAND
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year Ended June 30,
2014 _ 2015 2016 2017
Expenses
Governmental activities:
General government $ 4,709,996 $ 3,050,233 $ 5,626,905 $ 3,080,619 Public safety 24,047,934 27,468,131 27,178,673 32,174,086 Engineering and public works 9,879,986 9,281,467 11,049,238 9,819,952 Development services 3,174,496 5,447,239 5,214,410 5,407,099 Community services 4,057,338 5,073,673 4,308,397 3,691,035 Interest expense 286,492 284,269 281,359 358,679 Total governmental activities expenses 46,156,242 50,605,012 53,658,982 54,531,470 Business-type activities:
Water utility 19,565,979 20,124,035 16,121,912 18,483,205 Solid waste utility 9,322,648 9,872,451 9,602,172 10,051,229 Sewer utility 6,278,008 7,457,367 7,063,779 7,818,112 Animal services 1,020,821 - - -
Total business-type activities expenses 36,187,456 37,453,853 32,787,863 36,352,546 Total primary government expenses $ 82,343,698 $ 88,058,865 $ 86,446,845 $ 90,884,016 Program Revenues
Governmental activities:
Charges for services:
General government $ 1,508,984 $ 1,658,124 $ 1,124,713 $ 305,373 Public safety 2,930,767 3,593,175 3,789,627 3,541,745 Engineering and public works 579,582 660,583 246,341 776,173 Development services 4,541,765 4,612,643 4,933,961 5,461,323 Community services 1,058,570 1,097,518 1,072,754 495,702 Operating grants and contributions 6,234,320 7,014,790 5,120,131 5,933,967 Capital grants and contributions 1,636,573 2,712,801 3,926,465 4,337,377 Total governmental activities
program revenues 18,490,561 21,349,634 20,213,992 20,851,660 Business-type activities
Charges for services:
Water utility 18,184,343 22,713,562 18,601,289 21,299,753 Solid waste utility 9,592,364 10,355,699 10,544,776 11,103,446 Sewer utility 6,432,824 7,233,341 8,068,428 9,705,668 Animal services 384,674 - - -
Operating grants and contributions 23,220 21,672 15,519 63,207 Capital grants and contributions - - - - Total business-type activities
program revenues 34,617,425 40,324,274 37,230,012 42,172,074 Total primary government
program revenues $ 53,107,986 $ 61,673,908 $ 57,444,004 $ 63,023,734 Net(expenses)/revenue
Governmental activities $ (27,665,681) $ (29,255,378) $ (33,444,990) $ (33,679,810) Business-type activities (1,570,031) 2,870,421 4,442,149 5,819,528 Total net revenues(expense) $ (29,235,712) $ (26,384,957) $ (29,002,841) $ (27,860,282) 126 Page 275 of 330
CITY OF UPLAND
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year Ended June 30,
2014 2015 2016 2017
General Revenues and Other
Changes in Net Position
Governmental activities:
Taxes
Property taxes $ 17,656,767 $ 18,376,071 $ 19,309,037 $ 20,482,854 Sales taxes 11,282,830 12,477,307 13,909,909 13,293,304 Other taxes 1,744,459 1,890,562 1,778,356 2,740,447 Investment income 61,284 93,147 216,843 326,531 Motor vehicle in lieu 217,444 852,384 429,308 223,315 Gain on sale of assets 51,530 14,151 32,589 4,180 Miscellaneous revenue 3,494,568 4,238,903 394,567 355,677 Extraordinary gain (note 21) - - - - Special Item (note 16) - - - -
Transfers (69,537) 122,245 (3,000) 67,000 Total governmental activities 34,439,345 38,064,770 36,067,609 37,493,308 Business-type activities:
Investment income 28,549 99,832 148,205 189,704 Share of joint venture net income - - - - Gain on sale of assets - - - -
Legal Settlement - - - -
Miscellaneous revenue - - - -
Transfers 69,537 (122,245) 3,000 (67,000) Total business-type activities 98,086 (22,413) 151,205 122,704 Total primary government $ 34,537,431 $ 38,042,357 $ 36,218,814 $ 37,616,012 Changes in Net Position
Governmental activities $ 6,773,664 $ 8,809,392 $ 2,622,619 $ 3,813,498 Business-type activities (1,471,945) 2,848,008 4,593,354 5,942,232 Total primary government $ 5,301,719 $ 11,657,400 $ 7,215,973 $ 9,755,730 Source: Finance Division, City of Upland
27 Page 276 of 330
Fiscal Year Ended June 30,
2018 2019 2020 _ 2021 2022 2023
$ 4,539,492 $ 4,033,829 $ 3,740,648 $ 2,148,712 $ 899,152 $ 3,048,383 27,927,892 27,265,506 23,786,129 31,674,977 40,906,101 29,552,941 11,468,377 12,092,590 3,524,461 14,653,574 14,788,452 14,227,015 6,624,913 6,059,857 5,931,597 5,682,894 6,223,444 8,171,072 3,370,656 4,255,538 3,910,878 3,642,911 4,449,233 5,364,573 715,062 840,116 817,235 783,846 609,129 1,003,034 54,646,392 54,547,436 41,710,948 58,586,914 67,875,511 61,367,018 19,989,900 21,525,637 20,513,809 22,480,852 25,757,917 21,432,764 11,042,468 12,316,577 13,787,098 14,487,585 15,591,348 17,899,520 9,285,699 9,387,370 9,946,531 10,663,464 10,330,964 12,136,617 40,318,067 43,229,584 44,247,438 47,631,901 51,680,229 51,468,901 $ 94,964,459 $ 97,777,020 $ 85,958,386 $ 106,218,815 $ 119,555,740 $ 112,835,919 $ 382,010 $ 1,187,018 $ 583,514 $ 795,356 $ 359,602 $ 270,918 1,827,271 1,866,761 1,644,528 1,223,941 1,296,694 1,219,507 4,207,550 2,991,516 5,038,970 4,002,120 898,698 1,557,226 5,245,335 5,876,464 6,038,238 6,066,211 8,031,377 9,613,043 546,702 581,989 395,733 934,551 519,862 590,286 2,066,407 2,340,876 2,518,963 4,433,802 5,469,996 7,617,728 6,604,091 7,305,417 8,229,671 7,219,514 4,881,792 7,071,529 20,879,366 22,150,041 24,449,617 24,675,495 21,458,021 27,940,237 28,076,336 26,203,575 27,703,940 29,333,341 28,937,984 32,893,440 11,687,415 12,677,799 13,772,383 14,643,704 16,686,834 17,450,624 10,144,832 10,573,571 10,606,800 10,818,913 10,595,087 11,601,219 70,598 57,708 - 23,630 26,198 74,253 1,544,529 9,882,981 2,903,615 2,622,455 -
49,979,181 51,057,182 61,966,104 57,723,203 58,868,558 62,019,536 $ 70,858,547 $ 73,207,223 $ 86,415,721 $ 82,398,698 $ 80,326,579 $ 89,959,773 $ (33,767,026) $ (32,397,395) $ (17,261,331) $ (33,911,419) $ (46,417,490) $ (33,426,781) 9,661,114 7,827,598 17,718,666 10,091,302 7,188,329 10,550,635 $ (24,105,912) $ (24,569,797) $ 457,335 $ (23,820,117) $ (39,229,161) $ (22,876,146) 28 Page 277 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
$ 16,343,119 $ 16,831,839 $ 18,055,721 $ 18,818,701 $ 19,089,687 $ 20,342,692 13,673,539 14,507,927 13,579,780 16,876,712 18,469,789 21,274,685 2,696,807 2,692,051 2,819,493 2,895,754 3,614,267 3,646,945 (90,335) 1,012,981 1,232,765 927,392 (564,701) 478,142 40,421 36,969 62,114 57,805 90,702 81,119 132,623 - - - 15,000
321,564 271,298 180,584 30,374 207,045 94,269 (5,562,967) - - - - -
814,669 - - - -
27,422,148 36,300,357 35,930,457 39,606,738 40,906,789 45,932,852 415,529 761,947 1,187,036 51,079 (1,472,061) 1,336,079 (12,879) - - - -
- - - 6,823,725 -
(814,669) -
415,529 (65,601) 1,187,036 51,079 5,351,664 1,336,079 $ 27,837,677 $ 36,234,756 $ 37,117,493 $ 39,657,817 $ 46,258,453 $ 47,268,931 $ (6,344,878) $ 3,902,962 $ 18,669,126 $ 5,695,319 $ (5,510,701) $ 12,506,071 10,076,643 7,761,997 18,905,702 10,142,381 12,539,993 11,886,714 $ 3,731,765 $ 11,664,959 $ 37,574,828 $ 15,837,700 $ 7,029,292 $ 24,392,785 29 Page 278 of 330
CITY OF UPLAND
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Ended June 30,
2014 2015 2016 2017
General Fund
Nonspendable $ 158,323 $ 110,709 $ 63,831 $ 75,325 Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned 3,841,677 10,284,958 14,478,664 15,254,150 Total General Fund $ 4,000,000 $ 10,395,667 $ 14,542,495 $ 15,329,475 Other governmental funds
Nonspendable $ - $ - $ - $ - Restricted 18,683,199 34,769,384 38,524,248 39,563,384 Committed - - - -
Assigned - - - -
Unassigned (112,511) (20,372) (254,428) (4,088) Total Other Governmental Funds $ 18,570,688 $ 34,749,012 $ 38,269,820 $ 39,559,296 Source: Finance Division, City of Upland
130 Page 279 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023 $ 64,869 $ 73,803 $ 68,061 $ 178,650 $ 109,886 $ 140,904 18,473 18,473 53,073 10,733,983 2,735,148 4,014,932 4,670,418 4,670,418 7,750,840 15,137,875 12,434,329 15,048,573 - - - 4,491,000 - -
9,479,082 18,538,881 16,404,123 249,245 (11,880,703) (9,434,292) $ 14,232,842 $ 23,301,575 $ 24,276,097 $ 30,790,753 $ 3,398,660 $ 9,770,117 $ - $ - $ - $ - $ - $ - 42,616,153 44,979,990 53,645,011 55,210,075 57,068,653 63,901,813 7,531 - - - 191,505 440,421
(296) - (246,676) (684,266) (388,217) (561,356)
$ 42,623,388 $ 44,979,990 $ 53,398,335 $ 54,525,809 $ 56,871,941 $ 63,780,878 131 Page 280 of 330
CITY OF UPLAND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Ended June 30,
2014 2015 2016 2017
Revenues
Taxes $ 32,593,211 $ 35,655,141 $ 37,799,228 $ 38,830,352 Licenses and permits 1,041,388 1,794,686 1,875,032 3,009,862 Charges for services 5,230,294 5,606,821 5,392,160 5,857,984 Fines and penalties 533,282 604,509 594,417 619,646 Investment income 57,147 92,100 187,819 86,173 Rental income 3,787,894 3,860,094 4,013,904 4,191,730 Intergovernmental 6,806,235 7,655,572 5,435,521 5,798,858 Other 4,659,040 5,317,007 1,273,394 1,742,663 Total revenues 54,708,491 60,585,930 56,571,475 60,137,268 Expenditures
General government 5,138,890 3,420,069 3,658,673 4,950,630 Public safety 25,998,626 26,462,312 28,178,150 31,733,042 Engineering and public works 4,870,786 5,698,034 7,874,070 9,380,001 Development services 4,612,547 5,274,072 5,262,923 5,446,549 Community services 3,908,447 4,506,490 4,216,350 3,518,510 Debt service:
Principal 220,000 235,000 258,368 288,319
Interest 293,657 282,901 296,236 360,854
Issuance Costs - - - -
Fiscal charges 3,300 6,659 2,258 3,575 Total expenditures 45,046,253 45,885,537 49,747,028 55,681,480 Excess(deficiency)of revenues
over(under)expenditures 9,662,238 14,700,393 6,824,447 4,455,788 Other financing sources(uses)
Transfers in 2,761,375 273,409 1,208,553 517,960 Transfers out (3,919,838) (2,478,470) (1,525,154) (2,164,720) Extraordinary gain(loss)(note 21) - - - -
Proceeds from sale of capital assets - - 1,600 - Issuance of capital leases - - 200,524 - Issuance of bonds/debt - - - -
Total other financing sources(uses) (1,158,463) (2,205,061) (114,477) (1,646,760) Special Item
Payment to Unfunded Pension Liability - - - - Net change in fund balances $ 8,503,775 $ 12,495,332 $ 6,709,970 $ 2,809,028 Debt service as a percentage of
noncapital expenditures* 1.2% 1.1% 1.1% 1.3% This percentage is computed as: Debt Service divided by Non-Capital Expenditures 132 Page 281 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
$ 32,719,390 $ 36,119,214 $ 35,505,234 $ 39,675,488 $ 42,615,113 $ 46,902,560 5,164,222 4,354,120 6,164,957 5,955,190 3,306,914 4,057,710 2,785,383 3,055,102 2,843,447 2,384,400 2,758,438 2,984,757 646,874 989,437 893,964 542,604 600,186 640,866
38,881 1,813,945 1,679,486 829,306 (2,483,759) 180,020 4,738,192 5,003,949 5,156,573 5,259,555 5,259,156 5,583,798 5,579,860 5,518,173 6,812,160 8,241,316 9,906,508 12,546,825 934,735 1,727,759 550,605 627,760 700,456 639,097
52,607,537 58,581,699 59,606,426 63,515,619 62,663,012 73,535,633 2,154,855 1,918,770 1,956,329 2,255,746 3,442,633 4,758,071 23,950,547 23,653,097 25,977,681 27,381,746 28,134,960 27,373,694 15,361,147 12,907,584 9,842,367 14,744,656 12,307,298 12,279,130 6,366,818 5,343,038 5,735,938 5,683,606 6,223,444 8,171,072 3,170,399 3,279,498 3,240,983 3,193,155 3,817,256 4,900,947 18,677,299 674,583 695,406 739,578 13,621,275 910,541 715,062 840,116 817,235 783,846 609,129 1,003,034 - - - 167,472
70,396,127 48,616,686 48,265,939 54,782,333 68,323,467 59,396,489 (17,788,590) 9,965,013 11,340,487 8,733,286 (5,660,455) 14,139,144 224,081 1,035,556 1,725,996 593,000 290,000 1,747,052 (3,693,295) (518,892) (3,673,616) (1,715,374) (2,158,150) (2,620,802) 132,623 - 31,218 - 15,000
22,210,487 - - - 12,982,644 -
18,741,273 649,287 (1,947,620) (1,091,156) 11,114,494 (858,750) - - - - (30,500,000) -
$ 952,683 $ 10,614,300 $ 9,392,867 $ 7,642,130 $ (25,045,961) $ 13,280,394
31.7% 3.6% 4.1% 3.1% 21.8% 3.4%
133 Page 282 of 330
CITY OF UPLAND
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (IN THOUSANDS OF DOLLARS)
LAST TEN FISCAL YEARS
Fiscal Year
2013/14 2014/15 2015/16 2016/17
Residential 5,680,385 6,068,414 6,401,935 6,697,951 Commercial 849,188 873,943 875,269 908,646
Industrial 314,762 318,293 342,277 350,443 Dry Farm 4,184 4,186 470 477
Govt. Owned 979 983 1,003 1,018 Institutional 14,288 10,334 9,826 13,908 Irrigated 1,967 1,976 2,015 1,640
Miscellaneous 78,275 78,792 80,400 103,978
Recreational 14,322 14,353 14,804 14,162 Vacant 74,268 65,657 84,782 91,043
SBE Nonunitary 69 70 70 70
Unsecured 262,039 259,893 268,858 249,241
TOTALS 7,294,725 7,696,894 8,081,709 8,432,577 Total Direct Rate 0.17491% 0.17491% 0.17492% 0.17492% 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.
Source: San Bernardino County Assessor 2013/14-2022/23 Combined Tax Rolls; HdL Coren &Cone
134 Page 283 of 330
Fiscal Year
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 7,059,507 7,440,680 7,822,956 8,303,185 8,718,266 9,343,041 991,548 1,059,249 1,092,437 1,146,927 1,190,138 1,233,308 377,242 401,508 405,874 436,283 452,734 492,890 487 497 507 621 627 640
1,039 1,060 1,554 1,585 1,965 1,136 11,982 12,730 8,269 8,177 9,108 7,515 1,673 1,707 1,741 1,775 430 438
76,233 78,464 84,498 95,151 92,426 93,673 13,758 13,812 14,875 14,940 15,410 16,897 132,223 127,536 150,349 132,343 94,275 104,706 70 69 180 180 180 180
230,214 246,034 251,133 239,443 240,310 253,506 8,895,976 9,383,344 9,834,373 10,380,611 10,815,869 11,547,930
0.17492% 0.08257% 0.09093% 0.09079% 0.09099% 0.09141% 135 Page 284 of 330
CITY OF UPLAND
WATER SALES BY USER TYPE
LAST TEN FISCAL YEARS
Residential Commercial Public Agency Irrigation Fiscal Gallons %of Gallons %of Gallons %of Gallons %of Year Consumed Total Consumed Total Consumed Total Consumed Total 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% 2023 3,265,848,784 71.8% 512,313,428 11.3% 138,144,380 3.0% 633,130,388 13.9% Source: Finance Division, City of Upland
136 Page 285 of 330
CITY OF UPLAND
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER$100 OF TAXABLE VALUE)
LAST TEN FISCAL YEARS
Fiscal Year
Agency 2013/14 2014/15 2015/16 2016/17
Basic Levy' 1.00000 1.00000 1.00000 1.00000 Alta Loma Elementary Bond 0.04500 0.04370 0.04170 0.04080 Central Elementary Bond 0.07110 0.06600 0.06500 0.06880 Chaffey Community College Bond 0.01570 0.01090 0.01130 0.01160 Chaffey High School Bond 0.03710 0.02940 0.04090 0.03190 Metropolitan Water Agency 0.00350 0.00350 0.00350 0.00350 Ontario-Montclair Elementary Bond 0.02940 0.02600 0.02680 0.02640 Upland Unified School Bond 0.04840 0.04620 0.05250 0.06070 Total Direct&Overlapping2 Tax Rates 1.25020 1.22570 1.24170 1.24370 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 Rates 0.17491 0.17491 0.17492 0.17492 Notes:
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 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s)from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values.The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/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.
Source: San Bernardino County Assessor 2013/14-2022/23 Tax Rate Table; HdL Coren&Cone 137 Page 286 of 330
Fiscal Year
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.05640 0.06800 0.06530 0.04570 0.07300 0.06280
0.06700 0.04650 0.05020 0.04890 0.06140 0.05120
0.00880 0.01530 0.02410 0.01110 0.01770 0.01370
0.02790 0.04020 0.03750 0.03520 0.03710 0.02940
0.00350 0.00350 0.00350 0.00350 0.00350 0.00350
0.05570 0.05550 0.04280 0.04580 0.04550 0.04220
0.05510 0.05870 0.05600 0.05150 0.06340 0.04630
1.27440 1.28770 1.27940 1.24170 1.30160 1.24910
0.17482 0.08042 0.09353 0.09353 0.09353 0.09353 n/a n/a n/a n/a n/a n/a
0.17492 0.08257 0.09330 0.09079 0.09099 0.09141 138 Page 287 of 330
CITY OF UPLAND
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
2023 2014
Taxable Percentage of Taxable Percentage of
Assessed Total Taxable Assessed Total Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value Colonies-Pacific LLC 175,236,100 1 1.52% $ 115,831,334 1 1.59% College Park Apartment Homes LP 55,502,558 2 0.48% 57,522,638 2 0.79% Benson Owner LLC 51,402,631 3 0.45%
Lucas Upland LLC 50,719,365 4 0.44%
Upland Evergreen SPE LLC 50,140,169 5 0.43% MG Stoneridge Village Grove LLC 48,516,668 6 0.42% 39,000,000 4 0.53% Rancho Monte Vista Apartment Homes 47,032,696 7 0.41% 40,760,651 3 0.56% CT Retail Properties Finance II LLC 45,225,867 8 0.39% 38,974,275 5 0.53% WNG Mountain Spring GP 41,373,942 9 0.36% 35,654,802 6 0.49% College Business Park LLC 38,708,103 10 0.34% Koll Per College Buisness Park LLC 34,726,001 7 0.48% Holliday Rock Company Inc. 33,255,154 8 0.46% Dee Matreyek Kurth Non Exempt Trust 32,790,672 9 0.45% NU-168 Apartments LLC 31,828,198 10 0.44% Totals $ 603,858,099 5.23% $ 460,343,725 6.31% Source:San Bernardino County Assessor 2022/23 Combined Tax Roll and the SBE Non Unitary Tax Roll 139 Page 288 of 330
CITY OF UPLAND
PRINCIPAL WATER PURCHASERS
CURRENT YEAR AND TEN YEARS AGO
2023 2014
Percentage of Percentage of
Gallons Total Gallons Gallons Total Gallons
Water Purchaser Consumed Rank Consumed Consumed Rank Consumed City of Upland 178,853,532 1 3.9% 240,632,348 1 3.6% Wetrustin Invenstment Inc. 112,284,524 2 2.5% Upland Unified School District 78,609,564 3 1.7% 113,365,384 3 1.7% Mountain View Land Co. 59,826,536 4 1.3% 85,217,396 5 1.3% San Antonio Community Hospital 45,930,192 5 1.0% 46,891,372 7 0.7% Upland Hills Estates HOA 29,679,892 6 0.7% 53,953,240 6 0.8% Upland Cascade 27,620,648 7 0.6% 25,912,964 10 0.4% Upland Hills CC COA 27,558,564 8 0.6% 41,877,528 8 0.6% College Park Apartment Homes 25,681,832 9 0.6%
Upland Meadows Management CO. 23,237,368 10 0.5% 33,196,240 9 0.5% Upland Development,LLC 137,942,420 2 2.0% State of California Dept of Transportation 89,189,276 4 1.3% Totals 609,282,652 13.4% 868,178,168 12.8% Source: Finance Division, City of Upland
140 Page 289 of 330
CITY OF UPLAND
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent
June 30, Fiscal Year Amount of Levy Years (1) Amount of Levy 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% 2023 8,585,254 8,425,740 98.14% N/A 8,425,740 98.14% Notes:
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.
1Change from prior years due to City's Annexation with San Bernadino County for Fire Services. 141 Page 290 of 330
CITY OF UPLAND
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental
Activities
Fiscal Lease Total
Year Ended Revenue Housing Capital Clean Renewable Governmental June 30, Bonds Bonds Leases Energy Bonds Activities 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 2023 - 11,746,651 1,974,260 4,302,372 18,023,282 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 142 Page 291 of 330
Business-type Activities
Water Total Percentage Debt Fiscal
Lease Revenue Direct Primary of Personal Per Year Ended Bonds Borrowings Government Income(a) Capita(a) June 30, 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 21,786,903 11,574,655 51,384,840 1.70% 655.62 2023 143 Page 292 of 330
CITY OF UPLAND
DIRECT AND OVERLAPPING BOND DEBT
JUNE 30,2023
2022-23 Assessed Valuation: $11,532,952,948 Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 %Applicable(1) Debt 6/30/23 Metropolitan Water District $19,215,000 0.32% $60,912 Chaffey Community College District 290,030,000 7.778 22,558,533 Upland Unified School District 81,880,003 92.729 75,926,508 Chaffey Union High School District 600,532,563 0.768 4,612,090 Alta Loma School District 55,603,304 0.511 284,133 Central School District 73,572,479 1.907 1,403,027 Ontario-Montclair School District 102,180,015 2.625 2,682,225 Upland Unified School District Community Facilities District No.99-1 944,000 100 944,000 Upland Unified School District Community Facilities District No.01-1 1,372,000 100 1,372,000 City of Upland Community Facilities District No.2003-1 1,065,000 100 1,065,000 City of Upland Community Facilities District No.2003-2,I.A.Nos.1&2 27,030,000 100 27,030,000 City of Upland Community Facilities District No.2015-1,I.A.No.1 8,875,000 100 8,875,000 City of Upland Community Facilities District No.2015-1,I.A.No.2 9,020,000 100 9,020,000 City of Upland Community Facilities District No.2016-1,I.A.No.1 7,880,000 100 7,880,000 City of Upland Community Facilities District No.2016-1,I.A.No.2 8,245,000 100 8,245,000 City of Upland Community Facilities District No.2022-1 4,305,000 100 4,305,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $176,263,428 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Bernardino County General Fund Obligations $160,860,000 3.97% $6,386,142 San Bernardino County Pension Obligation Bonds 62,960,000 3.97 2,499,512 San Bernardino County Flood Control District General Fund Obligations 41,065,000 3.97 1,630,281 Chaffey Community College District General Fund Obligations 25,815,000 7.778 2,007,891 City of Upland Equipment Lease Obligations 6,282,423 100 6,282,423 City of Upland Housing Revenue Bonds 11,802,073 100 11,802,073 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $30,608,322 Less: City of Upland Housing Revenue Bonds(100%supported from housing related revenues) 11,802,073 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $18,806,249 OVERLAPPING TAX INCREMENT DEBT(Successor Agency): 13,610,000 100.00% $13,610,000 TOTAL GROSS DIRECT DEBT $18,084,496
TOTAL NET DIRECT DEBT $6,282,423
TOTAL OVERLAPPING DEBT $202,397,254
GROSS COMBINED TOTAL DEBT $220,481,750(2)
NET COMBINED TOTAL DEBT $208,679,677
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.53% Total Gross Direct Debt($18,084,496) 0.16%
Total Net Direct Debt($6,282,423) 0.05%
Gross Combined Total Debt 1.91%
Net Combined Total Debt 1.81%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,141,765,540):
Total Overlapping Tax Increment Debt 0.64%
Source:California Municipal Statistics,Inc.,Avenu Insights&Analytics (1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2)Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease obligations. 144 Page 293 of 330
CITY OF UPLAND
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30,
2014 2015 2016 2017
Debt Limit $ 1,091,662,967 $ 1,152,315,001 $ 1,210,072,895 $ 1,263,218,981 Total Net Debt Applicable to Limit - - - Legal Debt Margin $ 1,091,662,967 $ 1,152,315,001 $ 1,210,072,895 $ 1,263,218,981 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 2023:
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.
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 145 Page 294 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
$ 1,332,692,325 $ 1,405,592,832 $ 1,473,057,903 $ 1,555,306,986 $ 1,620,861,059 $ 1,729,942,942 ' $ 1,332,692,325 $ 1,405,592,832 $ 1,473,057,903 $ 1,555,306,986 $ 1,620,861,059 $ 1,729,942,942
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% $ 11,532,952,948
1,729,942,942
$ 1,729,942,942
146 Page 295 of 330
CITY OF UPLAND
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Water Bonds
Fiscal Water Less: Net
Year Ended Charges Operating Available Debt Service June 30, and Other Expenses Revenue Principal Interest Coverage 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 2023 34,865,688 20,159,227 14,706,461 25,000 98,108 119.46 Note: Water Charges and Other includes total revenues (including investment earnings).
Operating Expenses are exclusive of depreciation.
Source: Finance Division, City of Upland
147 Page 296 of 330
Special Assessment Bonds
Special
Assessment Debt Service
Collections Principal Interest Coverage
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
4,853,097 1,430,000 1,878,042 1.47
148 Page 297 of 330
CITY OF UPLAND
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Personal Per
Income Capita
Calendar (in thousands Personal School Unemployment Year Population of dollars) Income Enrollment Rate 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% 2022 78,376 $ 3,030,619 $ 38,667 10,079 3.4% Sources: HdL, Goren & Cone and the California Department of Education 149 Page 298 of 330
CITY OF UPLAND
PRINCIPAL EMPLOYERS
CURRENT YEAR AND TEN YEARS AGC
2023 2014
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment San Antonio Regional Hospital 2,250 1 6.0% 1,998 1 5.3% Upland Unified School District 1,272 2 3.4% 1,200 2 3.2% VCI Construction 518 3 1.4%
Holliday Rock Co. Inc 350 4 0.9% 181 9 0.5% Upland Rehabilitation &Care Center 349 5 0.9% 300 5 0.8% Home Depot 328 6 0.9% 141 10 0.4%
WalMart 315 7 0.8% 310 4 0.8%
City of Upland 261 8 0.7% 373 3 1.0% Target 253 9 0.7% 220 6 0.6%
Lewis Group 252 10 0.7% 200 7 0.5% Kohl's Department Store 195 8 0.5%
Totals 6,148 16.3% 5,118 13.5%
*Source: Upland Chamber of Commerce, Finance Division&Development Services 150 Page 299 of 330
CITY OF UPLAND
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General government 78.25 78.00 64.00 58.00 58.00 57.00 67.00 68.00 69.00 74.00 Public safety
Police
Officers 70.00 70.00 74.00 75.00 75.00 75.00 75.00 75.00 78.00 78.00 Civilians 22.50 22.50 26.00 30.00 31.00 37.00 30.00 31.00 31.00 33.00 Fire
Firefighters and officers 40.00 40.00 40.00 40.00 - - - - - - Civilians 9.00 9.00 9.00 9.00 - - - - - - Highways and streets
Engineering 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00 Operations 23.00 22.00 23.50 23.50 23.50 23.50 23.50 24.50 25.00 26.00 Recreation 7.50 7.50 6.00 6.00 5.00 5.00 5.00 5.00 5.00 6.00 Water 24.00 24.00 24.00 24.00 24.00 27.00 31.00 31.00 33.00 36.00 Solid Waste Utility - - - - - - 1.00 1.00 1.00 1.00 Environmental Quality 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 Total 281.25 280.00 273.50 272.50 223.50 231.50 238.50 242.50 251.00 263.00 Source: Finance Division,City of Upland
1 Decrease due to annexation of the Fire Department to San Bernardino County as of July 22,2017.
151 Page 300 of 330
CITY OF UPLAND
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018
Function
Fire
Stations 5 5 5 5 1
Police
Patrol Units 23 22 22 22 24
Motorcycles 4 5 5 4 4
Library
Facilities 1 1 1 1 1
Recreation
Buildings 4 4 4 4 4
Parks 13 13 13 13 13
Soccer fields (lighted) 6 6 6 6 6 Baseball fields (lighted) 8 8 8 8 8 Softball fields (lighted) 3 3 3 3 3 Public Works
Miles of City Streets 208.90 208.90 209.20 209.25 209.85 Miles of State Highways 6.70 6.70 6.70 6.20 6.20 Miles of City Alleys 37.50 37.50 37.50 37.50 37.50 Water
Miles of Water Mains 240.26 240.88 243.70 255.60 245.71 Sewer
Miles of Sewer Lines 228.00 228.00 228.00 222.00 222.00 Source: Various Departments, City of Upland
1 Decrease due to annexation of the Fire Department to San Bernardino County as of July 22, 2017.
152 Page 301 of 330
Fiscal Year Ended June 30,
2019 2020 2021 2022 2023
1 1 1 1 1 1
24 25 24 24 25
5 4 4 4 4
1 1 1 1 1
4 4 4 4 4
13 13 13 13 13
6 6 6 6 6
8 8 8 8 8
3 3 3 3 3
210.01 210.01 210.01 210.01 210.01
6.20 6.20 6.20 6.20 6.20
37.50 37.50 37.50 37.50 37.50
247.08 247.08 247.09 247.09 247.09
224.01 224.06 224.06 224.06 224.06
153 Page 302 of 330
CITY OF UPLAND
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30,
2014 2015 2016 2017
Function
General government
Building permits issued 1,408 2,007 1,176 1,095 Police
Physical arrests 4,272 3,532 3,013 4,377
Traffic collisions 667 690 814 867
Fire
Emergency responses 9,482 8,855 9,607 9,647 Public Works
Miles of street sweeping 14,484 13,009 14,600 15,000 Potholes repaired 910 2,400 318 720
Number of trees pruned 5,671 5,015 2,378 2,273 Parks and recreation
Community center admissions 9,406 9,450 8,868 6,864 Library
Volumes in collection 117,295 113,146 111,548 107,760 Current Periodical & Serial Subscriptions 340 83 97 42 Audio-visual items 5,911 5,947 5,695 5,154
Water
New meter installations 1,056 981 894 1,233 Average daily consumption 20,690 17,848 14,209 15,572 (thousands of gallons)
Number of linear feet of new water pipelines - 1,531 3,668 1,627 Refuse collection
Refuse collected (tons per day) 144 140 158 151 Recyclables collected (tons per day) 72 64 68 65 Environmental Quality
Number of sewer inspections conducted 210 201 208 211 Number of permitted dischargers/active permits 194 197 193 195 Source: Various Departments, City of Upland
Last date of service for the City of Upland Fire Department was 07/22/2017. 2 City 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. 154 Page 303 of 330
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
2,040 2,327 1,365 3,126 3,374 3,451
3,477 3,670 2,198 2,283 2,908 2,576
724 607 535 350 421 452
404 - - - - -
10,800 11,600 11,000 14,600 11,200 11,350 550 650 700 3,250 825 2,700
4,288 5,850 5,200 6,280 6,300 5,025
6,703 7,208 4,372 541 4,577 4,532
82,577 103,466 73,092 116,755 116,838 124,225 466 40 760 7,002 7,501 7,501 2
4,302 2,916 5,340 5,006 4,736 4,925 3
1,500 153 210 158 189 92
17,276 15,650 15,732 16,027 16,438 12,967 18,091 6,581 - 78 - -
165 158 162 161 162 165
76 68 77 82 74 72
148 145 5 173 184 201
191 193 193 195 187 206
155 Page 304 of 330
Van Lant &
Fankhanel LLP
Certified Public Accountants (-
January 31, 2024
City Council
City of Upland
Upland, CA
We have audited the 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 for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated July 10, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.
No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.
Van Lant&Fankhanel,LLP
29970 Technology Drive. Suite 105 A
hv1urrieta. CA 92563
909.856.6879 1 Page 305 of 330
Management's estimate of capital assets depreciation is based on historical estimates of each capitalized item's useful life. We evaluated key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.
Management's estimate of the net pension and net OPEB liabilities are based on actuarial information provided by the California Public Employee Retirement System's (CaIPERS) actuarial office, and other sources. We evaluated the key factors and assumptions used to develop these liabilities in determining that the estimated liabilities are reasonable in relation to the financial statements as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements were:
The disclosure of the fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuation.
The disclosure of accumulated depreciation in Note 4 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.
The disclosures for the net OPEB and net pension liabilities in Notes 6 and 10 to the financial statements are based on assumptions for discount rates, etc., which could differ from actual experience. The notes disclose the differences in these liabilities if different assumptions are used in estimating these liabilities.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
2 Page 306 of 330
Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 31, 2024.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restrictions on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
/Ci--1.• 4" Yomid4raif iif
3 Page 307 of 330
Van Lant &
Fankhanel LLP
Certified Public Accountants E-
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of Upland
Upland, California
We have audited, in accordance with the 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, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Upland (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 31, 2024.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Van Lant&Fankhanel,LLP
29970 Technology Drive. Suite 105 A
hv1urrieta. CA 92563
909.856.6879 Page 308 of 330
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 1C1- 4,t YelMA4071-11 lif
January 31, 2024